Volkswagen's Iroc Concept: Reviving the Scirocco to Target A Niche Market

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Case Details:

Case Code : MKTG153
Case Length : 16 Pages
Period : 2000-2006
Organization : Volkswagen AG
Pub Date : 2006
Teaching Note : Available
Countries : USA, Europe
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

A Drive Down Memory Lane

With Iroc, Volkswagen intended to reclaim its share of the sports coupé market. Scirocco enthusiasts were keenly awaiting the new Scirocco. “The Scirocco is a legendary vehicle in its own right, earning itself a cult-like following among the race-ready segment of Volkswagen owners. We've been eagerly anticipating the re-birth of the hot hatch,” wrote Michael Kwan, a car enthusiast.

Analysts said the new Scirocco would fulfill Volkswagen's need for more emotional brands. The move was also viewed as a strategy by Volkswagen to increase sales by taking advantage of the emotional attachment its popular yesteryear models had among a niche segment of car buyers...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies


Analysts said that the Iroc would give a more sporting image to Volkswagen, that was in danger of becoming increasingly mainstream. It was viewed as a return of Volkswagen to its core image of a provider of “affordable performance” cars. While Scirocco enthusiasts were eagerly awaiting the production version, Volkswagen was not very forthcoming about when the production of the Iroc would commence. Volkswagen's CEO, Bernhard, said, “At the moment it is still a study. It has not yet been decided if and when it will go into production.” But sources from the company hinted that the Scirocco would hit the market by 2008. It was one of 20 vehicles Volkswagen planned to bring to the market by 2011, to expand into new niches...


Exhibit I: A List of Volkswagen Models: 1970 - 2006
Exhibit II: World Motor Vehicle Production by Manufacturer World Ranking 2005
Exhibit III: Key Figures for Volkswagen Group and Volkswagen AG: 2003-2005
Exhibit IV: Volkswagen Logo
Exhibit V: Scirocco: A Timeline
Exhibit VI: A 1977 AD for Scirocco
Exhibit VII: An Ad for Second Generation Scirocco
Exhibit VIII: Volkswagen Iroc Concept -Iroc Logo
Exhibit IX: The Iroc Concept Car
Exhibit X: The Volkswagen Press Release
Exhibit XI: Some Earlier Scirocco Models
Exhibit XII: Iroc's Interiors

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