Abstract

In August 2006, Europe’s largest automaker Volkswagen AG (Volkswagen), unveiled the Iroc concept (Iroc) at a special event in Berlin, Germany. The Iroc was a prototype of the third generation model of the Scirocco, a sports coupé launched by Volkswagen in the 1970s that became a cult car in the US and Europe. The Iroc, which was expected to hit the market in 2008, was seen as an attempt by Volkswagen to fill the gap in its product line and target a niche market of Scirocco enthusiasts. Analysts opined that the Iroc would help bolster the image of Volkswagen, which had of late been catering predominently to the mass market, and had few niche products. They also felt that Volkswagen had few emotional brands targeted at customers in the US, and the new Scirocco would help fill that void.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the rationale behind the development of the Iroc by Volkswagen Appreciate the importance of niche markets and emotional brands for automobile manufacturers in the US and Europe.

Keywords

Volkswagen AG, Iroc Concept Car, Scirocco Sports Coupé, New Beetle, Product Line, Mass Market, Emotional Brands, Scirocco Fan and Enthusiast Clubs, Retro Models, Product Management , Niche Marketing, Brand Management, New Product Development, Competition, Automobile Manufacturing