Volvo, an automaker based in Sweden, has officially announced its new marketing strategy. The company is dubbing this strategy as the ‘Volvo Way to Market’ strategy and it will be the way the company is going to sell its vehicles in the future.
This Sweden automaker – which now belongs to the Chinese automaker, Geely – is going to spend more of its cash on online sales in the future rather than field sales. The company is bound to allocate more budgets to help it make a stance in the digital world. Yet, if you think that the company will no longer have any land-based dealerships in the future, you are totally mistaken.
As Alain Visser, the sales chief at Volvo, points out to Reuters, there is no way a car distribution network can work without any dealerships, at least in the foreseeable future. So, this means that customers can still go directly to the nearest Volvo dealership in their area to have a look and purchase the Volvo model they are interested in.
So, what this new ‘Volvo Way to Market’ strategy is about is that the company will start holding back from attending automotive exhibition events, which often cost a lot of money anyway. The company has officially confirmed that it will attend no more than these three huge auto shows: the Geneva Auto Show in Geneva, Switzerland, the NAIAS event in Detroit, US and the Beijing/Shanghai event in China. For the latter, the company will attend the event alternatingly.
Additionally, the automaker also expects to have its very own exhibition event at which it is going to feature its newly developed vehicles.
To cut costs even further, the company will stop sponsoring a number of events as well. However, for the Ocean Race event, Volvo is making it an exception. In this case, the automaker is committed to funding the event even more than before.
