VW Loves Their iPhones
Volkswagen recently announced that they will be launching the all new GTI using only an iPhone app. The application was unveiled in Manhattan last night and features a racing game being licensed from the Australian developer firm Firemint. In addition to the game, the application features a virtual showroom for the GTI as well as a 6-car giveaway for participants. Experts estimate that VW’s marketing expenses will only be around $500,000, a significant savings over the $60 million they spent on launching the GTI in 2006.
Is this a good idea? While the iPhone is definitely in line with the GTI’s target demographic, VW is taking a risk by targeting such a narrow segment. There are really a couple of BIG assumptions here: 1, due to the enthusiast nature of the car, the target segment will already know about the launch despite marketing efforts, and 2, those that VW would be conquesting are heavy social media aficionados, own an iPhone, and are in to gaming. That’s a fairly tall order. Obviously VW is not focusing on conquesting customers with this strategy.
While I agree with VW’s focus on alternative platforms as launch mediums, I’m not sure that this one will be as impactful as executives hope. The application will be branded VW and will really only appeal to the already VW faithful or industry insiders who are curious about the strategy. Volkswagen may have had more success leveraging a third-party application or speaking to enthusiasts where they reside online rather than betting the farm on them downloading a branded app. PR implications aside, this will be an interesting test for the automaker and their newly announced agency of record, Deutsch LA.
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Having recently downloaded and played this GTI racing game, I would add another challenge. The game is not just a marketing tool, it is a sales tool as well. But not for the GTI. It is a sales tool for Firemint’s “Real Racing” game.
Although the VW app is free, it is a limited/scaled down version of the full game which is on sale for $6.99. Throughout the app, you are reminded that you can “download” the full version of the game at any time. This type of sales tactic, is outside of anything that VW is trying to accomplish as it takes away from the authenticity and fun of their free app.
It will be interesting to see what effect this tactic has on the GTI launch as well as the VW brand. It will be even more interesting to see how it helps Firemint’s sales.
Comment by Kass Dawson — October 26, 2009 @ 12:00 pm