Question

Volkswagen achieved spectacular success in the late 1990s by targeting the nostalgia segment, 35- to 54-year-old baby boomers, with its stylish and technology-laden New Beetle. Which of Porter's generic business strategies did Volkswagen use to launch the New Beetle? Group of answer choices marketing focus cost leadership cost focus differentiation differentiation focus

Answer 1

Answer: Differentiation focus

Explanation:

Marketing focus is not an actual marketing term. Cost leadership strategy's main focus is on the reduction of expenses which in turn, lowers prices of product while targeting a wide array of market segments.

In this question, Volkswagen is not reducing costs, or targeting large market segments. Differentiation strategy” require products to possess significant points of difference in brand image, product offerings, higher quality, advanced technology, and superior service to command a higher price while also targeting a wide array of market segments. For this question, these factors are not explaineded as targeting a broad market segments.

Differentiation focus strategy requires the products to have significant points of difference that is vital to target one or only a few market segments. For this question, Volkswagen uses a specific and unique factor to appeal to a specific group of people. So differentiation focus is the answer.