Pestel Analysis Essay Paper on Volkswagen Beetle

Volkswagen Beetle

Place Analysis

Distribution Channels

Volkswagen does not sell the Beetle directly to customers. The middlemen and other dealers either purchase the brand directly or use a bank to get the brand from the company, and sell it to customers (Clayton et al., 2011). The risks that accompany the dealerships have prompted Volkswagen to put in place strict rules and guidelines that the middlemen and dealers have to follow in their bid to distribute the brand to customers.

After manufacture, the Volkswagen Beetle is shipped to various countries worldwide. During shipping, the product is packaged properly, and this plays an integral role in preventing its damage during transportation (Clayton et al., 2011). The product enjoys a wide consumer base in Asia, Europe, America, as well as Africa.

Price Analysis

Previously, Volkswagen concentrated more on a premium strategy. This meant that the prices of products, such as Volkswagen Beetle were on an average of ten percent higher than similar products from rival companies. However, there has been a significant change on the company’s pricing strategy. In the recent years, Volkswagen Beetle has been selling at five percent higher than products of competitive companies (Baumann, 2010). The company has continued to lower its prices even further to accommodate every consumer. The change in the pricing strategy is owed to the fact that the company was losing a large market share to rival companies. The current pricing system in place for the Volkswagen Beetle is competition-based. This is attributed to the fact that company aims at attracting more customers and having a large market share as compared to competitor brands. Volkswagen’s new pricing strategy also involves the provision of a three-year program of maintenance to customers.


Baumann, C. (2010). International Marketing plan for Volkswagen. München: GRIN Verlag GmbH.

Clayton, A., Charles, B., Ferrell, B., & Wilcher, W. (2011). Volkswagen Group: Marketing Strategy Analysis and Profile. Marketing, 1009, 38.