Abstract
This case study focuses on effective marketing communication activities in a post-crisis period. The phenomenon underpinning the investigation is image repair theory which provides effective communication strategies to overcome these events. The case in point was the emission scandal faced by Volkswagen (VW) in 2015. By implementing a qualitative approach to data collection and analysis, the results showed some correlations between effective public relation activities and the company’s share price. Nevertheless, sales figures showed a negative attribute due to the unstable position of the company in the post scandal period. Results also showed a positive pattern when VW responded to the emission scandal in the early days, providing some strategies to stakeholders such as, mortification, reducing offensiveness and corrective action. However, it can be said that this study is an initial step which provides some indications for future research concerning the effective implementation of marketing communication in a post-scandal period.
Highlights
Volkswagen (VW)—the German car manufacturer—had an unfortunate time due to its diesel car emission test failure in September, 2015
By implementing a qualitative approach to data collection and analysis, the results showed some correlations between effective public relation activities and the company’s share price
The aim of this study is to evaluate the effectiveness of the marketing communication strategy which was used by VW throughout the post-emission scandal period based on the image repair theory
Summary
Volkswagen (VW)—the German car manufacturer—had an unfortunate time due to its diesel car emission test failure in September, 2015. The company is home to 12 well-known car brands, such as, Audi, Seat, Porsche, Skoda and Volkswagen. On September the 22nd the company admitted that there were 11 million cars worldwide which had been fitted with a defective part. In June 2016, the authority decision in the USA was made and the amount was forecast to increase to $15 billion. As a result, this had a noticeable impact on the company’s share price as well as sales. According to Bloomberg.com (2015), the share price of VW fell sharply by almost 23% in the day after the emission scandal broke. Sales reports showed at least a 5.4% drop in the month following the scandal (Kottasova, 2015)
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