Volkswagen's Iroc Concept: Reviving the Scirocco to Target A Niche Market

            
 
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Case Details:

Case Code : MKTG153
Case Length : 16 Pages
Period : 2000-2006
Organization : Volkswagen AG
Pub Date : 2006
Teaching Note : Available
Countries : USA, Europe
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

The Scirocco Story

In the early 1970s, Volkswagen felt the need to replace its aging sports coupé, Karmann Ghia, with a model more relevant to the times.Thus work on the Scirocco began. It was internally designated as Type 53. The Scirocco was designed by Giorgetto Giugiaro of Italdesign-Giugiaro SpA, and was built for Volkswagen by Onsabrueck, Germany-based coachbuilder, Wilhelm Karmann GmbH (Karmann). Karmann had also built Volkswagen's Karmann Ghia. The Scirocco debuted at the 1973 international Motor Show in Geneva, where it was widely appreciated.

Scirocco is an Italian word referring to the strong warm wind in the Mediterranean that originates from the North African region.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Gap in Volkswagen's Product Line

When the production of the Coraddo was stopped in 1995, Volkswagen needed to find an alternative to fill the gap in its product line (Refer to Table II for Volkswagen Group's product line). For over a decade, Volkswagen failed to come out with a sports coupé that was also affordable. The sports coupé, Audi TT, was the closest that came to cater to the market left vacant by the demise of Coraddo. Though the Volkswagen Group sold sports cars under brands such as SEAT, Bentley, and Lamborghini, there was no sports coupé in the Volkswagen passenger car line...

The Iroc Concept

Scirocco enthusiasts had for long been waiting for a new model of the Scirocco. There were endless rumours about the possible launch of a new Scirocco, ever since its production was stopped in 1992. There was also much discussion in active online communities about the design, pricing, etc., if VW decided to develop a new Scirocco.

On August 24, 2006, the Iroc concept (Iroc) was unveiled at a function in Berlin, Germany. Subsequently, it was presented at the Mondial de l'Automobile 2006. The name Iroc came from the middle letters of Scirocco (ScIROCco)...

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