New Volvo Models and Change of Market Strategy
Volvo will redesign its complete range by 2018. The first model which got a new look is the Volvo XC90 SUV. It’s the first vehicle which is underpinned by the new SPA platform. This architecture (SPA stands for Scalable Product Architecture), will be used for various new models, thanks to its versatility. After the full-size SUV, the Scandinavian manufacturer will release the Volvo S90, a full-size sedan which will be used as a halo car for the rest of the upcoming lineup. In spite of the fact that the XC90 and the S90 aren’t so similar, they will actually have a lot of structural elements in common. In fact the SPA platform will be used for the S90 sedan, too. The plan is to make the Volvo S90 a really serious rival to the upscale luxury sedans.
Aside from the sedan new model, the new S90 will also have two additional iterations. There will be a more upscale version, with somewhat longer wheelbase, which will be made for more demanding markets. We expect it in the U.S.
Besides this, the automaker will also release a station wagon version which will be named the Volvo V90. This is deeply embedded in Volvo’s tradition. They just love wagons.
The recent automaker’s announcement revealed that the new lineup won’t be the only change regarding this brand. They won’t participate in numerous auto shows as before. Instead of auto-show presence around the world, Volvo will focus on completely different marketing approach called the “Volvo Way to Market”. The new Volvo models will be introduced on three international auto shows – Detroit in the U.S., Geneva in Europe and Shanghai/Beijing in China. There will also be an automaker’s annual presentation of new models.
A significant part of the new marketing strategy will be online sales. Also, they decided to increase their marketing budget, but they won’t keep sponsoring various events.
They will be oriented on digital advertising. However, they will keep the Volvo Ocean Race, since it epitomizes Volvo values. Mr. Alain Visser, Volvo Cars’ Senior Vice President Marketing, Sales and Customer Service said:
“With the Volvo Way to Market, we don’t want to throw all existing marketing concepts overboard. Many of them exist for a good reason. We also don’t want to have the arrogance to say that we are better than all the rest. But we do have the self-confidence to say that we are different. So our way to market needs to be different as well.”
The new model range and a completely unconventional marketing approach might be a revolution in the automotive industry. The risk might be too high, but Volvo, as Mr. Visser said, has self-confidence to experiment and try to make something extraordinary.