3/17/2018 IMC Project on

“Think Small “campaign Of Beetle

PRASHANT S OJHA (UEMF17017)

RAVEEN RACHIT (UEMF17020)
EMBA (2017-2018)
XIMB, XAVIER UNIVERSITY, BHUBANESWAR
 CONTENT
 INTRODUCTION
 BACKGROUND
 AUTOMOBILE ADVERTISING THEN
 HISTORY OF VOLKSWAGEN BEETLE
 BUSINESS PLAN: THE CHALLENGE
 VOLKSWAGEN (BEETLE): THE MAKING BEHING THE AD
 MARKETING STRATEGY
 “THINK SMALL”
 CAMPAIGN DESIGN: INNOVATION AND RADICALNESS
 NEXT STEP
 COMMERCIALISATION IMPACT- POTENTIAL-BENEFITS
 CONCLUSION
 CRITICAL APPRECIATION
 REFERENCES
Introduction
The process of proposing a brand-new product or service into the market called commercialization.
For successful commercialization process, a combination of innovation and targeting the need in the
market is crucial. In other words, in order to convert an innovative idea into a business opportunity
you have to identify if there is a place in the market for your product before moving to
commercialization. However, according to Gourvile, (2006) sometimes the commercialization process
falls due to several reasons. First of all, usually most customers are reluctant to adopt their behavior to
a new product or technology and they also, tend to evaluate new products relative to products they
already use to do a job. More importantly, sometimes businesses have a tendency to overestimate the
potential benefits of their novel products. Those are the most important reasons why sometimes a
commercialization process fails.
Throughout history many products became famous due to their highly successful commercialization
process. One of those products was Volkswagen beetle. Volkswagen, managed to create an amazing
business plan and a really impressive marketing strategy for this particular car in order to enter into an
entirely new market for them.
Of course, no discussion of the greatest ad campaign is complete without mention of some truly great
ones throughout the past 10 decades.
There's Nike's "Just do it," Marlboro's Marlboro Man, the U.S. Army's "Be all that you can be," Apple
Computer's "1984," Campbell Soup's "Mmm mmm good!", the Jolly Green Giant. The list goes on
and on.
However, one campaign did much more than boost sales and build a lifetime of brand loyalty. It's the
1960s ad campaign for the Volkswagen Beetle. It, and the work of the ad agency behind it, changed
the very nature of advertising, from the way it's created to what you see as a consumer today. Ads
before it were either information-based and lacking in persuasion, more fantasy than reality, or reliant
on the medium's ability to deliver repeated exposure. Some call it the changing face of advertisement,
while some believe that it is thinking strange. Some feel that it has seamless ‘campaignability’ and
others think that it is an unexpected revolution. However, nobody can deny that no car has ever been
so admired and no advertisement has ever been so loved. It’s the tale of the German giant
Volkswagen’s, (popularly known as people’s car) innovation in creativity that preaches the formula of
hitting once hard to create awareness and then going very selective.

Background
Competing automakers were building ever bigger cars for growing families with baby boomer
children. Given that World War II had ended only 15 years earlier, it's easy to envision a public
relations nightmare. When the US consumers were obsessed with idea of ‘thinking big’ by having
powerful cars, the classic ‘Think small’ campaign by Doyle Dane Bernbach introduced Americans to
the advantages of a small car and made everyone live the American dream through radical
advertisements.
Automobile Advertising Then
So, what was then happening with the automobile advertising scene in the 1950s? The ongoing concept
for automobile advertisements was to show people, proud owners and passengers evoking great joy
and satisfaction about these new shiny big acquisitions. Commercial photography was then in its
infancy and was not preferred when it came to capturing the ‘essence’ of the automobile; a great deal
of automotive images was multiple illustrated artwork featuring all the exciting features of the vehicle.
The advertisements were visually colorful; you can’t miss them with their hand-lettered headlines, big
illustrations and large logotypes. The inherent message sent out was: “This is the American Dream,
Live it!” – the underlying statement was the definition of those successful individuals who possessed
the ability to afford a big house and a nice car for a quality lifestyle. As mentioned above, during 50s
in USA, big cars were associated with speed and luxury. People use to feel the cars as fashion
statements and testosterone boosters and nor as just a way to get the kids to school. While USA
consumers, literally, they were being urged to “think big”, the “think small” ad came and urged the
consumers to think the opposite (thinkingouttabox, 2009). American cars’ ads were moving along the
same lines, designed with visually bright colors, big headlines and large logos. On the other hand,
beetle’s ad had lots of white space, the car was tiny, the headline was inadequate in terms of
information and worse of all… it was in black and white! (Life in CMYK, 2011)
Figure 1: 1950 Hudson Custom ad

Source: http://www.plan59.com/cars/cars390.htm

As can be seen from figure 1, the ordinary ads were visually colorful in order to attract the reader.
You couldn’t just slide over them as their hand-lettered headlines attracted your eyesight.
By observing more different car ads, figure 2, we could see that in order to advertise a car during 50s,
they used a variety of techniques to attract potential customers. They introduced for example, beautiful
girls with colorful and attractive gowns, provided magnificent landscapes and attractive models along
with jewels. In addition, each automobile ad had a slogan which generally had the same meaning for
all of them. For example, slogans like: “You’ve got to drive it to believe it!”, “Filled with grace and
great new things” and “You can make your ‘someday’ come true now”, had the same main words like:
“New, Shiny, Big and Great Features!” (Life in CMYK, 2011). An article in thinkingouttabox (2009)
mentioning accurately that: “The inherent message sent out was: “This is the American Dream, Live
it!”
Figure 2: Chevrolet, Mercury and Cadillac ads in 1950
Source: http://galleryhip.com/1950s-car-advertisements.html

HISTORY OF BEETLE
The Volkswagen beetle first produced in 1936 and it was known as the peoples’ car. With only 3 years
in production, beetle’s factory became the largest motor factory in Europe capable of producing
150,000 cars per year, and then by 1942 the production rose to 1.5 million cars per year
(Volkswest.co.uk, n.d.). Beetle had dominated the European and African market amazingly fast. By
the end of 1950, Volkswagen decided to do a controversial move. They decided to enter the USA
market. Why controversial? Beetle wasn’t just a simple foreign car. Everyone knew beetle as a car
which developed by Hitler, a Nazi car (Johnson, 2014). Although, beetle became surprisingly
successful car in USA and the reason was its impressive commercialization strategy.

The Volkswagen which in German means “People car”, was a assurance by Adolf Hitler to the
Germans for getting their goodwill in 1930s. Before Hitler’s era, German was suffering the effects of
The Great Depression. The situation was awful, every industry was suffering. The situation was such
that the price of a car was more than the annual earnings of the people. Cars were a sign of royalty and
luxury. So, to gain popularity after he became the Chancellor in 1933, he announced the idea of making
a car which would be small and could be affordable for common people. For this Hitler met the
automotive designer Ferdinand Porsche and this is how Porsche designed Volkswagen was born.
After WW2 United States had become a Superpower. America was geared to achieve heights in
economy. Cars began to be built for the growing economy and growing families with Baby Boomer
children. Americans were fascinated with muscle cars. Big cars were a symbol of achievement. So,
the ongoing trend for car advertisements were to show proud owners, happiness and pride oozing from
the car owners etc. The ads were visually very colorful and gave the message that it could bring colors
and pride to your life. Most of them had the inherent message-‘This is the American dream-Live it’.
Every automobile ad then began saying the same thing: Oldsmobile proudly proclaimed, “You’ve got
to drive it to believe it!” Chevrolet, expounded “Filled with grace and great new things,” while Buick
promised, “You can make your ‘someday’ come true now.” The catch words were: “New, Shiny, Big
and Great Features!”

BUSINESS PLAN:THE CHALLENGE

Before Volkswagen decided to introduce the beetle into USA market they had built an exceptional and
risky at the same time, business plan. To structure their plan, they used a similar framework as the
NABC (needs, approach, benefits, competition). As a first stage, they identified who were the
customers, what they were looking for and how big was the market. They observed that the automotive
industry was really huge and the cars, back to those years, had generally the same specifications and
style. They found that big cars were the norm (Fowler, 2011). As for the customers, they needed the
cars to be fast, big and stylish. They also identified that it was hardly to find cars in the market with
the same specifications as beetle had. The reason was simple. No one wanted a small car in USA and
especially a car produced by Nazis. The decision to enter into a USA market contained a number of
risks which Volkswagen had to deal with it.
As second stage, they examined the competition manufacturers. The two main automotive
manufacturers were Cadillac and General Motors. Both manufactures primary market was USA and
they were specializing to produce luxury and fast cars. On the other hand, beetle was small, slow and
somehow ugly (Johnson, 2014)! It was exactly the opposite. Undoubtedly, enter a market with those
specific features contained considerable risks. The major risk was that, everyone was driving a big fast
car and almost no one wanted to drive a small ugly and slow car. However, due to this risk Volkswagen
identified that in USA very few people knew the benefits to owe a small car. This small but essential
detail would play significant role in the subsequence beetle’s course. Therefore, they should find an
alternative approach in order to target the appropriate audience. At the beginning they decided to focus
on individuals and especially paterfamilias, presenting to them the car’s benefits in comparison with
its competitors. They selected to present the car as the safest and most advanced car, in terms of the
engine, in order to attract them. How they did it? With fantastic marketing strategy. They designed a
series of amazing advertisements (ads) which eventually changed the history of advertisement (ad).

Beetle- The making behind the Ad

The Volkswagen was beginning to sell extensively throughout Europe during the 1950s as laws
regulating exports from Germany were relaxed. The car was becoming popular. Through word of
mouth advertising, the Volkswagen was even selling in America to those who weren’t convinced by
the stylish and expensive offerings from Chevrolet and Oldsmobile. With sales of 100,000
Volkswagens in 1958, the major manufacturers could no longer ignore the market for small cars and
were gearing up to release their own. To tackle this incoming threat Volkswagen sent a man named
Carl Hahn to America. His job was to do something that Volkswagen hadn’t really done before —
 advertise.
Carl Hahn visited many agencies on Madison Avenue and was disappointed with most of what they
were showing him. The majority of companies, eager to impress, had done plenty of spec work
showing an illustration of the car on a beautiful driveway with a nice family standing admiringly
around it. Hahn was less than impressed with the mediocrity the agencies were showing him. Through
a contact, he ended up at the offices of DDB and got a pitch from Bill Bernbach. Bernbach hadn’t done
any mockups, drawings and had no concept for the ads he would run, his argument being that he didn’t
know the product very well. Instead, he took Hahn through DDB’s portfolio of past works. What struck
Hahn most about Bernbach was his honesty. At last, he felt he had found an agency capable of handling
the car. The contracts were signed; Volkswagen would pay DDB $600,000, a minuscule figure
compared to the ad spend of the other major manufacturers. In 1956, Chevrolet alone was spending
$30.4 million on advertising, with Ford following at $25 million. A really good campaign was needed
to compete.
Carl Hahn immediately invited the DDB team over to Germany to see the factory in action. Bernbach
was very impressed with what he saw, especially with the pride the workers took in their craft. He
remarked to another DDB man named Helmut Krone that this was an “honest car”.

Marketing Strategy
Throughout the years, Volkswagen managed to build a strong brand name in Europe. Although the
high fame that they had in Europe, in USA Volkswagen was almost unknown. In addition, the WWII
had just finished, and as everyone know USA fight against Germans during the war. As is understood,
under those circumstances, to enter a car to USA market was too risky. In addition, the thing that
aggravated the situation more was that beetle was a car whose development was tied to Adolf Hitler
himself. In other words, was a Nazis’ car. Having this in mind, Volkswagen had to find a way to
promote the car successfully. And they did it!

“Think Small”
The Volkswagen knew that they should found an alternative and innovative way to promote the car to
the potential customers. The way they chose, was to advertise the beetle with a totally novel way. In
order to do that, they collaborated with Doyle Dane Bernbach (DDB) agency. Thus, the DDB team
built a print campaign in 1959 that highlighted beetle’s benefits against its competitors. The campaign
mainly focused on beetle’s frame, which was smaller than most of the cars been sold at the time
(Kabourek, 2014). They designed ads that included a small image of beetle with a lot of whitespace
around it. With this way, they wanted to show the contradiction with the existing traditional cars which
were mainly associated with luxury. Their principal objective was to attract the attention to beetle, by
converting the smallness of beetle into strength instead of a weakness (Fowler, 2011). As for the name
of the campaign, should had been a name that reflected beetle design and at the same time been
attractive. DDB teams came up with the “Think small” as a name/slogan. They tried to find a name
which was meant to emphasize beetle simplicity and minimalism in order to shift people’s perspective
of small cars.

Campaign Design: Innovation and Radicalness

The biggest question is how they managed to promote so successful a funny looking car, known for
being slow and manufactured in factories built by Nazis, without the help of current technology
(Johnson, 2014). The answer lies on innovation. Each product has his unique lifecycle and different

types of innovation give profitability at different point in the life cycle (Moore, 2004, pp. 86--92). As
the beetle was at marketing point, they came up with brilliant and innovative marketing strategy, which
eventually led beetle’s sales to unpredictable numbers. Particularly, Doyle Dane Bernbach (DDB)
team and Volkswagen decided to completely destroy the status quo for automobile ads with the “Think
Small” campaign (Johnson, 2014).Unlike with the trend of those times, Beetle ad had a simple concept.
Just a small picture of the car with the headline "Think small". At the bottom, there was a text listed
the advantages of driving a small car versus a big car (Kabourek, 2014).
Figure 3: Volkswagen Beetle first ad.
Source: http://0-six-5-eight.blogspot.co.uk/2010/09/pink-gk-jersey.html
Figure 3 illustrates the first two ads of Volkswagen beetle in USA. Unlike other cars’ ads which mainly
focused on providing as much information as possible to the reader, beetle’s ads were breathtakingly
simple (Odgen, 2014). Then, how did they manage to attract the consumers? The answer is brilliant
from a marketing perspective. They forced reader’s eyes to focus on the car using an empty white
background trick. With this way, they wanted from reader to see the car from the designers view and
not as an ugly different car in a sea of American beauties. They aimed to show beetle uniqueness in
terms of design and style. Literally, they wanted to confuse the reader. “If you woke up to find this ad
in your newspaper in the 1960s, you were thoroughly confused and just had to read it. At this point,
they’ve already won”, Johnson (2014) said.
Nevertheless, beetle’s ad still seemed to lags behind other ads. However, the biggest secret of ad
success was into the text at the bottom of the poster.

Figure 4: Beetle's ad, below text

As you read on figure 4, a part of text was:

“So, you can easily break almost any speed low in the country in a VW. And you can also cruise right
past gas stations, repair shops and tire stores. The VW engine may not be the fastest, but it’s among
the most advanced.” As we can observe, they are extremely honest and at one point it seems they insult
their product. What’s the point behind that? They use the logical fallacy situation trick. They created
the “ideal” car and then they tell you that beetle wasn’t anything like it. At the end, by using the “straw
man” argument, they tell you how this is a good thing. The beetle is slow, so it implies it doesn’t burn
much fuel, it breaks easily and doesn’t need frequent repairs. Actually, it sounds nice and reliable. It’s
not fast so it’s safe. It’s suitable for everyday use.
Beetle’s ads were reality based, and somehow were connected with consumers on an emotional level
as they were conveyed car’s advantages in a way that consumers could fully understand. For instance,
apart from “Think small”, DDB team used slogans like: “Live below your means”, “Impossible” and
“most engines still aren’t in back?” which, in conjunction with smart pictures, were highlighting car’s
unique specifications in each poster.
One of the most stunning posters illustrated below.

Figure 5: Lemon Ad

In this ad depicted a black and white picture of Beetle with the word “Lemon” in bold font. At the
bottom the text starts: “This Volkswagen missed the boat. The chrome strip on the glove compartment
is blemished and must be replaced”. As the text goes on, describes the beetle inspection process. At
some point in the text, mentioned that there are more inspectors in Volkswagen factory than cars.
Continuing, it reports that each car runs through 189 check points, and one beetle out of fifty rejected.
At the end it says: “This preoccupation with detail means the VW lasts longer and requires less
maintenance, by and large, than other cars” and concluding with the astonishing phrase “We pluck the
lemons; you get the plums.” The way the composed the text it’s amazing. The reader’s first impression
is to questioning why Volkswagen calling their own car a lemon. Automatically reader becomes
curious and wants to read further to see eventually that it is about the strict inspection process that
beetle goes through (Coleman, 2009).
In addition, except the radical and innovative ads Volkswagen proceeded to another innovative
movement. They changed their own name for the sake of better promotion. Beetle is usually referred
as “VW” instead of a Volkswagen. Volkswagen doesn’t sound American. On the other hand, VW is
cool, fresh, simple and friendly (Johnson, 2014).
Next Steps
After beetle’s ad success, on 1965, DDB team and Volkswagen decided to advertise the car on
television. And guess what? The Beetle ad campaign stood out for its use of television. The beetle
commercial highlighted the emotional relationship between car and consumer. The content was quite
pioneering. The commercial presented a funeral procession as the voice of the deceased bequeaths his
fortune. He decided to leaves nothing to his wife and sons and especially to business partners who
were wasteful with money. But to the tearful young man in a VW Beetle at the end of line, he says:
"To my nephew, Harold, who of times said `A penny saved is a penny earned ... and it sure pays to
own a Volkswagen' ... I leave my entire fortune of one hundred billion dollars", (Heath, 2012). They
literally planted beetle in consumers’ head without even realizing it!

COMMERCIALISATION IMPACT – POTENTIAL – BENEFITS

Beetle campaign had immediate impact on car’s sales. Volkswagen sales rose by 25% two years after
campaign lunched. When beetle firstly appeared on USA market was playing as an underdog, but
eventually Volkswagen outsold the other car dealers such as Cadillac and General Motors. Particularly,
Volkswagen sold one million Beetles in 1963, up over the 150,601 sold in 1958, one year before the
“Think Small” campaign (Prell, 2011). Furthermore, many young consumers became attracted to the
beetle due to DDB and Volkswagen commercial emotional approach. This approach was more
talkative to consumers and made Volkswagen to seem more like a person than a company. Volkswagen
managed to build an automotive manufacturing empire through their culture turn. The most incredible
thing that BBD team managed do is to get people talking for the beetle.
In addition, Volkswagen, through beetle ads, managed to build their unique brand personality in a
crowded marketplace. After ads launched, everyone could recognize the beetle in the streets. In other
words, due to this campaign Volkswagen built a lifetime of brand loyalty and became a household
brand and a global icon (Odgen, 2014).
The Volkswagen beetle campaign did much more than boosts sales. It was ranked as the best
advertising campaign of the twentieth century by Ad Age. “The campaign has been considered so
successful and the work of the ad agency behind it, changed the very nature of advertising—from the
way it's created to what you see as a consumer today", Odgen said. After beetle successful slogans,
many ads introduced similar trick, with more recent slogans including "Drivers Wanted" and "Das
Auto" (Fowler, 2011). Eventually, DDB team changed the way we make ads… (Life in CMYK, 2011)
Conclusion
DDB and Volkswagen managed to meet the challenge of selling Nazi car in a Jewish town (Kattan,
2014). They sold a strange-looking car to Americans, at the time when USA market consisted only of
big and luxury cars (Kabourek, 2014). With brilliant written ads, the campaign generated huge
publicity which transformed to extremely high beetle sales (Life in CMYK, 2011).
Of course, in order to meet this particular challenge apart from the ads, Volkswagen firstly built an
amazing business plan which followed precisely throughout the years. They identified the US
consumer needs, and they approached the new marketplace opportunity with an exceptional plan. They
knew beetle advantages against its competitors and the managed to emerge them through their
marketing strategy. Furthermore, Volkswagen handled ably any risk which emerged during the whole
process.
VW announced the end of beetle’s production in June 2003, due to reduced demand. The VW sold
21,529,464 Beetle from 1938 until 2003 (Wikipedia, n.d.), which is a really huge number for a car.
Thinking Small is the remarkable idea. Due to this idea Volkswagen competed equally with the USA
automotive giants and managed to survive with just a simple concept. Beetle wasn’t just a car, it
became a symbol of individuality and personal mobility, and even today it is one of the most
recognizable cars in the world. Hiott (2012) aptly stated: “Sometimes achieving big things requires the
ability to think small…”

Critical Appreciation
It was not a big car, it was not a car that boasted about the great “American Dream”, it was not a car
that people would have wanted to get associated with, it was not a car whose advertisement appeared
colorful and flashy, it was a car whose ad did not figure any female characters in them, it was a car
that was originally inspired by a leader whom the entire world loathed and it was not the most
opportune time to launch a car that was so loud in recalling the name of the leader who inflicted
bountiful of painful memories on people from almost across the globe.
Am sure by this time any logical and rational car maker as well as ad maker would have given up. But
that was not the case with the manufacturers of the most popular car Beetle by Volkswagen and the
makers of the most impressive ad campaign, “Think Small” by Doyle Dane Bernbach (DDB). The
odds were heavily stacked against not only the car makers but also the ad makers. Beetle was a car that
could be termed as the most offbeat car of that era (1950s) when the notion of the American Dream
had engulfed practically most of the US citizens. Their possessions were making them proud or their
pride erupted from their possessions was a question, the answer to which even Hercules would find
difficult to provide. Beetle was small, somewhat ugly and yes, slow too – all the features that an
American could possibly abhor. Volkswagen, at that time, took a risk which by any standards could
not be termed as calculative or thoughtful. It was a complete foreign territory on which VW had
decided to tread.
Ditto applies for the numerous ads that appeared for the Beetle. It was, in essence trying to transform
the “think big” Americans to “think small” ones. The agency DDB initially flatly refused to advertise
a campaign for the Beetle because they had not done anything like that before. Beetle was positioned
to cater to a handful of people in USA who knew the benefits of owning a small car. This changed the
entire approach. The marketing strategy it employed was simply amazing. They designed a series of
amazing ads targeting entire public in general. They harped on the safety and engine excellence of the
car. The car ads prior to that era were mostly featuring all the exciting features, they were visually
colorful, and involved girls too in ads. Ads before it were either information-based and lacking in
persuasion, more fantasy than reality, or relied on the medium's ability to deliver repeated exposure.
Beetle ads, though, connected with consumers on an emotional level, yet also conveyed a product
benefit in a way in which consumers could relate to. Text highlighted the advantages of driving the
small Beetle versus a big car. The ads were mostly in black and white and almost 1/3rd of the ad space
in newspapers were selectively left blank in order to attract attention. Very soon the ad campaign was
able to build a supreme emotional connect. Year after year, the VW Beetle ad campaign conveyed its
message of frugality and sensibility with a clarity and emotion the ad world had never seen before.
The emotional connect soon reflected in numbers and the sales figures skyrocketed.
DDB had pioneered the concept of art directors and copywriters working together through this ad
campaign. Many great ad campaigns have come along since 1900. However, none made a greater
lasting impact than the Beetle ad campaign. The industry trade publication, Advertising Age, named
it No. 1.
This ad campaign did much more than a boost in sales, it built a lifetime of brand loyalty and became
a household brand and a global icon.
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