Volvo Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Volvo analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Volvo marketing mix, help the brand succeed in the market. Let us start the Volvo Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Volvo Product Strategy:
The product strategy and mix in Volvo marketing strategy can be explained as follows:
Volvo is one of the largest automobile companies based out of Europe but having a strong business spread across the world. The Volvo Group’s product portfolio in its marketing mix are broadly spread across six major business areas: Trucks, Construction Equipment, Buses, Volvo Penta, Governmental Sales and Volvo Financial Services. However, over the years Volvo has been majorly known as a manufacturer of cars reputed for their safety standards and classic style quotients. The most popular segment in which it operates is the Sedan class in the SUV segment.
On the face of it, Volvo is associated with the idea of big boxes on wheels. The company has several variants in the cars its offers i.e. Volvo S-series are the sedan, Volvo V-series are the estate cars and Volvo XC series are the SUVs offered by the company.
Image: Wikimedia
Volvo Price/Pricing Strategy:
Below is the pricing strategy in Volvo marketing strategy:
Volvo engages in the use of optimal pricing as a marketing mix strategy for pricing its products. It differentiates the market with clear segmentation according to the varied customer base.
Volvo produces a wide range of brands and categories of products, owing to which it has the potential to charge a wide range of prices. In the emerging economies, Volvo is known to charge especially high but on an average most of its cars are priced in a range between $25,450 and $40,800. It is capable of commanding this sort of a price point owing to its reputation for quality, safety as well as the technology that it comes up with.
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Volvo Place & Distribution Strategy:
Following is the distribution strategy in the Volvo marketing mix:
Volvo is one of the leaders in the worldwide market in many of the segments that it operates in, especially when it comes to the commercial trucks segment. In most of the developed countries, Volvo has a high market share- close to about 20%. Concentrating on the car sector, the company even though headquartered in Sweden has a number of branches in several countries across Europe and the States. The main Sweden office manages the global strategy of the group, but the day-to-day operational decisions are handled by the local and regional directors and managers. Volvo has over 2,300 local dealers all over the globe. These are spread across 100 plus countries through the over 100 national sales companies. When it comes to the largest consumers of the Volvo cars, China tops the list followed by The USA and other European countries.
When it comes to the markets that have been performing the best over the years, Russia witnessed an increase of 54% in sales, followed by China at a 36% increase in sales, closely followed by Belgium at a 35% increase.
Volvo Promotion & Advertising Strategy:
The promotional and advertising strategy in the Volvo marketing strategy is as follows:
Volvo has promoted itself with a human-centric brand strategy “Designed around you” that illustrates the future direction of the company’s brand development. The most important aspect of Volvo’s promotion has been its prowess in the production of machines which possess world class standards of safety. Volvo positions itself and carries out promotional activities to reinforce its position as the company that launched the first car with a safety cage, the first car with front and rear crumple zones, the first one to offer safety-door-locks and a world-class Side Impact Protection System. The company has mobile applications offered across three categories- Product Apps, Owner’s App and Campaign Apps. They have promotional videos on television, YouTube and Bill-Boards to name a few. The Volvo Spirit magazine- a Construction Equipment magazine printed by the company makes its readers aware of Volvo related news and business updates. There is also a Volvo driver’s magazine which is an exclusive piece for members that contains information about club meetings, technical information and advice along with articles by members and staff. Volvo also promotes itself through advertisements and articles in top automobile magazines – TopGear, AutoExpress and AutoCar to name a few. The company has a promotional strategy which has been dubbed as the ‘Volvo Way to Market’, and has its focus on the areas of digital leadership, marketing tools, service and dealership. Volvo also pays significant attention to key international car shows in The US, Europe and Asia. Besides this, it pays heavy importance to the in-store experience for its customers. The ‘Volvo Personal Service’ concept is an example of a concept which provides a personal technician who takes every new customer through introduction and car ownership experience. Hence, this concludes the Volvo marketing mix.
About Volvo:
The Volvo brand, Latin meaning ‘I roll’ is one of the most recognizable brands across the world and identified with a promise of superior performance and reliability. Volvo, the parent brand of Volvo is a world renowned company headquartered in Sweden with operations spread across Europe, America, Africa, Asia and Australia. It manufactures and sells Volvo trucks, cars, construction equipment, buses etc. Volvo expanded itself when it introduced financing solutions to its countries of operation.
The Volvo brand, established in Sweden was formed in 1927. More than 90,000+ people are employed with the brand across the world.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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