Team InternationalKimmy O’Reilly, Rose Quach,

Hyunji Choi, Anna Valera, Jason Benchimol

Outline Company Profile Article Summary Key Points Economic Environment Marketing Implications Conclusion Discussion

Article SummarySell Beetle in IndiaGet into a niche marketHefty Price Tag-high import dutiesLeverage Brand Value-intro of Polo

hatchback

Company HistoryOn May 28th, 1937 the "Gesellschaft zur Vorbereitung des

Deutschen Volkswagens mbH" company is founded.On February 17th, 1972 Volkswagen breaks the world car

production record. In 2003 production of the fifth-generation Golf is started,

embodying a new dynamism in its design and engineering. Volkswagen in Wolfsburg produced the 25 millionth Golf on

March 23, 2007 February 20, 2008 - Volkswagen Tiguan is voted SUV of the

year by "OFF ROAD" magazine readers

VW owns 9.8 % share of the world passenger car market.

Sales rose in 2007 to 108.9 billion euros and profits amounted to 4.12 billion euros

Nine brands: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, Scania and Volkswagen Commercial Vehicles.

Each brand has its own character and operates as an independent

entity on the market. The product range extends from low-consumption small cars to luxury class vehicles. In the commercial vehicle sector, the product offering spans pick ups, busses and heavy trucks.

Operates 48 production plants in thirteen European countries.

360,000 employees produce 25,400 vehicles. The Volkswagen Group sells its vehicles in more than 150 countries.

It is the goal of the Group to offer attractive, safe and environmentally sound vehicles which are competitive on an increasingly tough market and which set world standards in their respective classes.

Company overview

India’s Economic EnvironmentIndia's population is estimated at more than

1.1 billion and is growing at 1.3% a year. World's 12th largest economy--and the third

largest in Asia behind Japan and China. 2007 year-end exchange rate of 39.5 rupees

to the U.S. dollar 700 million Indians live on $2 per day or less, Large and growing middle class of more than

50 million Indians.

India’s Economic Environment ContinuedDisposable income ranging from 200,000 to

1,000,000 rupees per year ($4166-$20,833). Estimates are that the middle class will grow

ten-fold by 2025.The United States is India's largest trading

partner.8.3% Inflation Rate as of 2008

VW Beetle

Current Competitors in Luxury Car Segment in IndiaHonda Accord, Toyota Camry, Skoda Superb and Mercedes Benz C Class

Upcoming luxury vehicle launch in 2010: BMW Mini

Automobile industry in Indiathe ninth largest in the world with an annual

production of over 2.3 million units in 2008In 2009, India emerged as Asia's fourth

largest exporter of automobiles, behind Japan, South Korea and Thailand

Cars sold in India as CBU (Completely Built Units)

-Audi, Bentley, BMW, Chevrolet, Fiat, Honda, Hyundai, Jaguar, Lamborghini, Land Rover, Maybach, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Rolls Royce, Škoda, Suzuki, Toyota, Volkswagen, Volvo

Market Implications• Segmentation

– Demographic: Fun and “loving” attitude– Relatively high income– Well educated

• Targeting• Concentrated global segment

• Positioning-Product and Design– Feature

• 1.9-litre TDI diesel engine • 5-speed manual transmission• Rain sensors and cruise control• Acoustic rear parking-fit into small spaces• Safety Control-ABS, traction control, anti-skid and

standard airbags

Question 1In what country is VW launching the beetle?

1) Japan2) India3) Brazil4) U.S.A.

Answer2)India

Question 2What type of segmentation strategy is VW

using?

1) Benefits sought2) Psychographics3) Behavioral characteristics4) Demographics

Answer4) Demographics

Question 3Which of the following is a target market

strategy VW is using:

1) standardized global marketing2) concentrated global marketing3) differentiated global marketing4) psychographic global marketing

Answer2) concentrated global marketing