Volvo is one of the leading automobile manufacturers with a global presence. The company makes and sells a large range of products including cars, buses, trucks, SUVs, and crossovers. Its focus on technological innovation and product quality has helped the band grow its popularity faster around the globe. It has maintained its global presence through its industry-leading network of dealers and distributors. Volvo sells its products in 190 countries around the world. It has its headquarters in Sweden. Apart from vehicles, the Volvo Group also makes and sells construction equipment as well as marine and industrial engines. 2019 proved to be a great year in terms of performance for the Volvo group. The company enjoyed stronger sales compared to the previous year and its net revenue grew by 11%. The automobile industry has grown highly competitive and the Volvo Group has maintained its focus on catering to customer needs better through a modern and efficient product mix.
Target Market & Positioning:
Volvo has positioned itself as a safe, reliable, customer-friendly, and innovative mobility brand with a distinctive, classy appeal. To distinguish itself from the other brands, Volvo has focused on creating the identity of a modern and stylish brand that caters to the taste of modern, tech-savvy, and easy-going consumers. Apart from style and innovation, as well as passenger safety, the focus of the company is an outstanding and classy riding experience.
The target market of Volvo cars is the modern consumer that includes an entire class of highly educated, higher wage-earning professionals, and business owners. Its customers mainly lie in the 25-45 age group. These are affluent and tech-savvy people with modern taste and education and appreciate a safe and comfortable, as well as environment-friendly riding experience. Volvo builds luxury cars and targets the higher-end segment of the market. Volvo cars are popular among both male and female riders.
Volvo also targets businesses in the transportation, logistics, manufacturing, construction, and some more sectors. Government agencies and organizations are also a significant target market for Volvo products.
Read about the business of Volvo Group in this marketing mix including product, place, price, and promotion.
Marketing Mix of Volvo Group
Volvo is a global automobile brand that enjoys heavy popularity. Its range of automobiles includes cars, SUVs, buses, trucks, and crossovers. The company has brought a competitive range of products and apart from its range of automobiles, it also sells construction equipment as well as industrial and marine engines. It has a large brand portfolio. The Volvo Group’s brand portfolio consists of Volvo, Volvo Penta, UD Trucks, Terex Trucks, Renault Trucks, Prevost, Nova Bus, Mack and Arquus. The brand has also entered into alliances and joint ventures with the SDLG, Eicher, and Dongfeng brands.
Volvo has its headquarters in Gothenburg, Sweden. The company was founded in 1927. Now, it is a global brand with sales and operations across several countries in the world. Volvo has established its production facilities in 18 countries and sells its products across 190 countries. The company enjoys a strong market share in the global heavy duty truck market. In Europe, its market share in the heavy duty truck segment is 24.2%, whereas in North America it is 16.2%. Volvo Buses sell in 85 countries and a global service network with more than 1,500 dealerships and workshops. Its production facilities are located in Europe, North America, South America, and Asia (Volvo Annual Report 2019).
With regards to pricing, the Volvo Group has followed a premium pricing strategy. However, it also makes premium products and targets mainly the higher end segment of consumers. Volvo offers a large range of cars, SUVs and crossovers which target the premium segment. Most of the Volvo cars and SUVS sold in the United States fall within the $33,000 and $55,000 price range. The pricing strategy of Volvo cars also supports its premium image.
Volvo is a well-established brand and the company has built a strong brand image