Presentation for Marketing

8/2/2019 Presentation for Marketing

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P R E S E N T E D B Y

STRATEGYAT VOLKSWAGEN

GROUP INDIA


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Contents

Volkswagen The Group

Volkswagen Group India

Corporate Strategy Mark 18 Plus Strategy

Business Strategy Skoda

Audi

Volkswagen India

Functional Strategy Brand Equity

Communication, Pricing AND Distribution


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Volkswagen Group

Volkswagen Group is a German AutomobileManufacturing Group.

3rd largest automobile manufacturer

Parent Company- Volkswagen AG

Product range extends from low-consumption smallcars to luxury class vehicles and trucks.


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Cont..

Group operates 60 production plants around theworld.

Volkswagen AG, is globally represented by 9 brands-Audi, Bentley, Bugatti, Lamborghini, Scania, Seat,Skoda, Volkswagen Commercial Vehicles(Volkswagen Nutzfahrzeuge) and Volkswagen

Passenger Cars.


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Volkswagen Group India

Volkswagen Group India, the Indian subsidiary is a partof Volkswagen AG.

It has its headquarters in Pune, Maharashtra (India).

Volkswagen Group is represented by three brands inIndia: Volkswagen, Audi and Skoda.

Volkswagen Group is completing 10 years of its Indiajourney which began with the entry of the Skoda brand in2001, Audi brand and Volkswagen brand in 2007.


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Cont

It currently has 16 models in the Indian market.

Volkswagen Group are setting up dealerships spanning

the entire country with Volkswagen, Skoda and Audihaving in total around 70 dealerships in 56 cities across18 states and 2 union territories of India.

Volkswagen Group have together sold around 19,000vehicles in India in 2009, an increase of 1.4% over 2008in a year marked by recession in the auto industry.
http://en.wikipedia.org/wiki/States_of_Indiahttp://en.wikipedia.org/wiki/Union_territorieshttp://en.wikipedia.org/wiki/Union_territorieshttp://en.wikipedia.org/wiki/States_of_India


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Cont.

Total sum invested of around INR 3,800 crore (580million Euros) is the biggest investment of a Germancompany realized in India so far.

The plant, one of the most modern in theVolkswagen Group has a high level of verticalintegration.

Annual capacity of around 110,000 cars.


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Corporate Strategy

Global challenges such as climate change and scarceresources demand sustainable solutions.

Volkswagen Group has been employing variousmethods to envisage the future and thereby enhanceits competitive position.

Volkswagen Group has charted a clear course withour 18plus strategy.


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MACH 18PLUS STRATEGY


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Focus lies on becoming an economic andenvironmental leader in the global automotiveindustry.

Strive for success in terms of profitability, customersatisfaction and quality, accessing new markets andincreasing production output, and attractiveness asan employer.

The plus element stands for more entrepreneurialthinking, more synergies and more ecology.


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Cont

Volkswagen will harness the strengths of the Groupand its nine brands with an environmentally-oriented model range .

Volkswagen has set its sights on new environmentalbenchmarks.

The company has earmarked annual expenditure fordevelopment and investments in new models andtechnologies in excess of8 billion over the next few

years.


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Cont

Boost the sales volume from present 6.5 million tomore than 10 million cars.

The incremental volume aimed for will more or lesscome from Brazil, Russia, China and India.


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Indias Contribution in 18plus Strategy

Indian car market is the 10th largest car market withannual sales of around 1.4 million cars.

The market size is expected to increase to 4 millioncars by 2015.

Volkswagen aims to increase its market share from ameager 1% presently to 10 % in next 5 years.


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VW picked up 19.9 per cent stake in the SuzukiMotor Corp (SMC) for USD 2.5 billion last year.

Maruti Suzuki India is the crown jewel of theJapanese car maker.

Volkswagen is open to jointly developing productswith Maruti Suzuki India, as part of its efforts toachieve synergy with Suzuki Motor Corp at the globallevel.


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V O L K S W A G E N I N I N D I A ( C A S E S T U D Y ) . P D F

Case Study


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VOLKSWAGEN INDIA

Volkswagen is the highest volume brand of VWGroup.

Volkswagen presents itself in a variety of segmentsas a premium manufacturer of high-volume models.

As a first step, the Volkswagen brand launched theglobally successful Passat in 2007.


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Cont

To expand its portfolio and cater to the mid segment,Volkswagen launched one of the brands bestsellingmodels, the Jetta, in India in July 2008.

Iconic New Beetle and the high-end SUV Touareg wereintroduced in December 2009.

Also available is the high-end automobile Phaeton.

From December 12, 2009 the new Pune plant has startedrolling-out the hatchback version of the VolkswagenPolo.


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Cont.

After Polo, Vento is VW's second car targeting the massmarket.

VW positioned at the upper-end of the country's mid-

sized sedan segment.

Volkswagen India has adopted a top-down strategy toarrive at competitive pricing.

It is directly pitted against market leader Honda City,Marutis SX4, Ford Fiesta etc.


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Volkswagen India in Numbers VW has sold a total of 3,037 units in the country in 2009, of which 58 were

Beetles, 25 Touaregs, 2,342 Jettas and 613 Passats. This is a 95 per centincrease in sales since 2008 when they sold 1,566 cars.

Volkswagen India sold 2,597 cars in July 2010.

Since its launch in February, Volkswagen has sold 1,599 Polos so far.

There are already 10 units of the Phaeton (priced @75 lacs) in the Indianmarket.

50 confirmed orders for the Beetle, with a four-month waiting period.

50 confirmed orders for the Touareg.


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Ansoff Growth Strategy Matrix

MarketPenetration ProductDevelopment

MarketDevelopment

Diversification

MARKETS

Current

New

PRODUCTSCurrent New


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Functional Strategy

MARKETING STRATEGYOF VW INDIA

China is the 2nd largest market for VW Group afterEurope.

Volkswagen plans to use its learning in China in India.

Aggressive price tags and high-decibel advertisements.

Volkswagens strength lies in the mass market. Its name,after all, means peoples car in German.


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Brand Positioning

Value

Rational

Emotional


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Cont

When VW started out in 2007, low brand awarenesswas one of the key concerns.

Thus Volkswagen came out with 13 advertisementsin a leading English newspaper.

It told readers all they ever wanted to know about

Volkswagen how the name came about, its productline and so on.


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Front Page Full Page


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Cont

By the time the campaign ended, Volkswagen hadused 18,000 television spots, 144 insertions in

broadsheet dailies, 50 insertions in magazines, 280out-of-home sites and 23 digital portals.

To improve brand recall, the next campaign showedall Volkswagen cars: The Beetle, Passat, Jetta and

Touareg.


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Customer based brand equity

The Volkswagen customer based brand equity is equallystrong on the left and right hand sides.

It is also strong from bottom to top, enjoying the highest

brand awareness of a carmaker as well as high repeatpurchase rates and customer loyalty.

To a certain extent Volkswagen has successfully focusedon both the superior product attributes and the imageryassociated with owning and driving a Volkswagen.


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Communication @ VW

Most of the Volkswagen communication takes placethrough print media in magazines and newspapers.

This is supported by communication through TVadvertisements and point of sales promotion.

Now a days a good company has a state of the art webportal ,Volkswagen websites are highly informative,interactive and a pleasure to watch.

One can get any amount of detailed informationregarding the prices, features, retailers, and supportservices etc.


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PRICING AND DISTRIBUTION

Volkswagen India Private Limitedcurrently has more than 70dealerships in 56 cities across 18 states and 2 union territories ofIndia.

There are company specified retailers and distributors throughout the world who are in constant touch with the parent andcomply implicitly.

Dealers also have round the clock servicing and repair.

Volkswagen also has a used car portal where one can choose andbuy his/her appropriate model.
http://en.wikipedia.org/wiki/States_of_Indiahttp://en.wikipedia.org/wiki/Union_territorieshttp://en.wikipedia.org/wiki/Union_territorieshttp://en.wikipedia.org/wiki/States_of_India


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Mr. Lutz Kothe, Head of Marketing said

Volkswagen was the first company in India to useLinkedIn Recommendation Ads, and the campaign was asuccess.

We went in with a goal of inspiring 500recommendations among current and prospective car

buyers.

In less than 30 days, over 2,700 Volkswagen fans hadstepped forward to recommend their favorite cars andshare these recommendations with their professionalnetworks.


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UniqueAdvertiseg Strategy


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Presentation for Marketing