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CHAPTER I

Introduction: Market analysis

Market analysis is a necessary part of planning a profitable business. Invest time in this crucial step now

and reap the rewards of a successful business. Before investing any money in our business, we must

gather information about our potential customers and the demand for of service. This information, or

market analysis, is a necessary part of planning a profitable business. Invest time in this crucial step

now and reap the rewards of a successful business.

Benefits of market analysis

1) Faster Cash Flow

Knowing who our customer is, what we need, and where to find them is vitally important. Targeting the

right people is crucial for generating cash flow in the shortest time possible.

2) Greater Market Share

An examination of current market conditions tells us who our competitors are, the size and location of

the market, current competitor pricing and promotional strategies, and types of market niches which are

underdeveloped.

Positioning our product for greatest exposure, while creating an image of quality and value for our

product, allow us to become a serious player.

3) Reduced Expenses

A leading cause of business failure is lack of capital - the business runs out of start-up funds before

becoming profitable. It's important to make every penny count. We reduce expenditures by trying to

predict outcomes before taking action. There is always a certain amount of risk with any business

venture; however, analyzing the market reduces that risk.


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0361914308 Perception of Middle Class consumer Regarding the Volkswagen Beetle

Conduct a Market Analysis

Overview

Whether we are starting a new business or launching a new product, conducting a marketing analysis is

the first step in determining if there is a need or audience for your idea. Knowing the market's needs and

how it is currently serviced provides us with key information that is essential in developing our

product/service and marketing plan. Too often, businesses spend thousands of rupees launching a "new"

idea with a limited market because of competition. The owner is forced to reevaluate his strategy and

determine if there is room for another player. Although the quality of the product is critical, our

development of the best product on the market will not necessarily correlate with the most sales. Up to

50 percent of a product's price can be for marketing. The company who wins the marketing game

generally will capture the larger share of the market.

The marketing analysis process can be broken down into six steps:

1. Defining the problem.

2. Analysis of the situation.

3. Obtaining data that is specific to the problem.

4. Analysis and interpreting the data.

5. Fostering ideas and problem solving.

6. Designing a plan.

1. Defining The Problem

Defining the problem is crucial to conducting a successful marketing analysis. This may require a great

deal of time but it is well worth the time and energy expended. Defining the objectives is crucial to a

successful marketing campaign. Many individuals waste valuable time performing good research on the

wrong problem.

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Many companies fail to understand the nature of the problem before trying to solve problems related to

sales. A classic example occurred in the soft drink industry when Coke and Pepsi, the two top soft drink

rivals increased the intensity of marketing efforts to battle for higher sales. At the same time, Dr

Pepper's revenues began to decline, a problem that was attributed to a weak promotional campaign.

Subsequently, the "Be a Pepper" slogan was instituted. Although the ads were a hit, revenues continued

to decrease. The marketing managers had to reanalyze their problem.

2. Analysis of The Situation

An analysis of the situation is an informal survey of what information is available in the problem area.

The analysis will help define the problem and ascertain the need for additional information. This

process entails informal talks with informed people. Informed individuals can be others in the company

or outsiders with knowledge about the industry or product. In some instances, customers are contacted

to provide information.

When the marketing manager is unfamiliar with the situation, the analysis step is of primary

importance. It is important to understand the problem area - including the nature of the target market,

competition, the marketing mix and the external environment. Without this knowledge, costly mistakes

may result. An example of this problem would be a retailer who wants to survey his customers. A

research firm is hired to do in-store interviews. However, as an example, the contracted firm is not

aware that many of the stores are in the process of being renovated. As a result, the information

collected reveals the customer's focus on the appearance, noise level and difficulty finding items due to

construction. The information would be of no value.

The analysis should focus on both primary and secondary research.

Primary research is research that is proactively created for a specific purpose. Primary research may

include focus groups, qualitative surveys and phone interviews. This is information we collect our self.

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In contrast, secondary research is research that has already been conducted for other purposes. From it

valuable information can be taken. Secondary research can be found in libraries, online, through

periodicals, books, etc. The easiest and most efficient way of accessing this type of data is on the

Internet.

3. Obtaining Data Specific to The Problem

The next step requires gathering primary research and performing a formal research project. Many

approaches can be used to collect primary data. The purpose is for the research to identify what

customers think about some topic or behavior patterns. Research can be done in person or through a

survey. Questioning can be qualitative or quantitative. Another research option is to use observation of

customers and their purchases or utilization of a product or service.

Qualitative research utilizes open-ended questions to obtain in-depth answers. Closed-ended questions

requiring yes or no answers are avoided. The idea is to have people share their thoughts on a topic

without giving them extensive directions or guidelines.

Quantitative research differs from qualitative in that it gathers parametric statistical information, i.e.,

information with a number to it. Sample sizes are generally larger and more representative of the

market. From the statistics or data generated, conclusions can be drawn. Survey research is usually

quantitative in nature. It seeks structured responses, which can be summarized in numbers, like

percentages, averages or other usable statistics.

4. Data Analysis and Interpretation

Data analysis and interpretation is critical in analyzing the market. What does this information mean?

Can one use the data in a constructive way to define the problem and then establish a plan? In

quantitative research, this step most often involves statistics. In the marketplace one can find many

statistical packages (computer-based) to analyze the data.

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It is impossible to collect data on every person in a select population; therefore samples are necessary.

A sample population is a part of the relevant population. How well the sample reflects the relevant

population dictates its validity. Results from a sample that is not representative will negatively impact

your marketing.

In addition to sampling and validity issues, marketing managers must make sure the data supports the

conclusions drawn. This is the interpretation step. Despite use of the correct statistical tool and accurate

calculations, the interpretation could be wrong. Example of Data Misinterpretation: In a survey, parents

were asked to rank five infant car seats for ease of use. They were to rank the seats in order from "most

preferred" to "least preferred." One car seat was ranked first by slightly more respondents than any

other car seat. The researchers reported that it was the most liked car seat by parents with infants. They

failed to report that 70 percent of the respondents preferred that particular car seat least. So, the first-

ranked car seat was most preferred by only 30 percent of the parents.

5. Fostering Ideas and Problem Solving

In this step, the research results are used to make marketing decisions. The findings should be applied in

marketing planning. If the research doesn't provide the information necessary to make these decisions,

the company, whether small or large, has wasted its time, money and manpower on unnecessary data.

The final step must be anticipated throughout the entire process.

6.Marketing Plan

This six-step process of market analysis is critical in designing a marketing plan that is tailored to your

specific product or service. The process can be extremely helpful in disclosing a significant but

previously unrecognized problem. By finding and focusing on the real problem, the researcher and

business owner can move quickly to a useful solution.

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A marketing plan shows the specifics of how you will market or attempt to sell your product or service.

To reiterate the purpose of this discussion, the marketing plan is to provide us with guidance in

analyzing your market. Various resources and software packages are available to enhance our marketing

efforts. Software packages are numerous and include:

Automotive industry

The automotive industry designs, develops, manufactures, markets, and sells the world's motor

vehicles. The automotive industry is one of the most important economic sectors by revenue.

The term automotive industry usually does not include industries dedicated to automobiles after

delivery to the customer, such as repair shops and motor fuelfilling stations.

Automobile industry in India

The Automobile industry in the Republic of India is the seventh largest in the world with an annual

production of over 11 million vehicles and exports of about 1.5 million. In 2009, India emerged as

Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the

country is expected to top the world in car volumes with approximately 611 million vehicles on the

nation's roads. A major chunk of India's car manufacturing industry is based in and around the city of

Chennai and hence it is known as "Detroit of India". Chennai accounts for 60 per cent of the country's

automotive exports.

Volkswagen India

Volkswagen India Private Limited is a subsidiary of Volkswagen Group Sales India Private Limited

that assembles, manufactures and distributes Volkswagen vehicles in India. It was established in 2007.

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http://en.wikipedia.org/wiki/Motor_vehiclehttp://en.wikipedia.org/wiki/Motor_vehiclehttp://en.wikipedia.org/wiki/Economic_sectorhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Automobile_repair_shophttp://en.wikipedia.org/wiki/Motor_fuelhttp://en.wikipedia.org/wiki/Filling_stationshttp://en.wikipedia.org/wiki/Republic_of_Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Indian_Road_Networkhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Volkswagen_Group_Sales_Indiahttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Motor_vehiclehttp://en.wikipedia.org/wiki/Motor_vehiclehttp://en.wikipedia.org/wiki/Economic_sectorhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Automobile_repair_shophttp://en.wikipedia.org/wiki/Motor_fuelhttp://en.wikipedia.org/wiki/Filling_stationshttp://en.wikipedia.org/wiki/Republic_of_Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Indian_Road_Networkhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Volkswagen_Group_Sales_Indiahttp://en.wikipedia.org/wiki/Volkswagen


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Manufacturing Facilities

Volkswagen India Private Limited operates a manufacturing plant in Chakan which is capable of

producing 110,000 vehicles per annum. The plant is also shared by Skoda Auto India Private Limited

for assembling the Skoda Fabia.

Manufactured/Assembled Locally

Volkswagen Polo

Volkswagen Jetta

Volkswagen Passat

Volkswagen Vento

Imported

Volkswagen Beetle

Volkswagen Phaeton

Volkswagen Touareg

Volkswagen, one of the largest car manufacturers in Europe, is betting big on India with its small car

portfolio. Though India contributes a mere 0.3% to the global sales of Volkswagen group, the company

is planning to increase its market share in the country by 8 to 10% in the next four-to-six years.

Volkswagen Beetle

The Volkswagen Beetle, also known as the Volkswagen Type 1, was an economy carproduced by the

German auto makerVolkswagen (VW) from 1938 until 2003 with over 21 million manufactured in its

air-cooled, rear-engine, rear wheel drive configuration. Its platform ultimately gave rise to successful

variants, including the Volkswagen Karmann Ghia and the Volkswagen Type 2 van.

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http://en.wikipedia.org/wiki/List_of_Volkswagen_Group_factorieshttp://en.wikipedia.org/wiki/Chakan,_Maharashtrahttp://en.wikipedia.org/wiki/%C5%A0koda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/%C5%A0koda_Fabiahttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_Jettahttp://en.wikipedia.org/wiki/Volkswagen_Passathttp://en.wikipedia.org/wiki/Volkswagen_Ventohttp://en.wikipedia.org/wiki/Volkswagen_Beetlehttp://en.wikipedia.org/wiki/Volkswagen_Phaetonhttp://en.wikipedia.org/wiki/Volkswagen_Touareghttp://en.wikipedia.org/wiki/Economy_carhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Air-cooled_enginehttp://en.wikipedia.org/wiki/Rear_wheel_drivehttp://en.wikipedia.org/wiki/Volkswagen_Karmann_Ghiahttp://en.wikipedia.org/wiki/Volkswagen_Type_2http://en.wikipedia.org/wiki/List_of_Volkswagen_Group_factorieshttp://en.wikipedia.org/wiki/Chakan,_Maharashtrahttp://en.wikipedia.org/wiki/%C5%A0koda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/%C5%A0koda_Fabiahttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_Jettahttp://en.wikipedia.org/wiki/Volkswagen_Passathttp://en.wikipedia.org/wiki/Volkswagen_Ventohttp://en.wikipedia.org/wiki/Volkswagen_Beetlehttp://en.wikipedia.org/wiki/Volkswagen_Phaetonhttp://en.wikipedia.org/wiki/Volkswagen_Touareghttp://en.wikipedia.org/wiki/Economy_carhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Air-cooled_enginehttp://en.wikipedia.org/wiki/Rear_wheel_drivehttp://en.wikipedia.org/wiki/Volkswagen_Karmann_Ghiahttp://en.wikipedia.org/wiki/Volkswagen_Type_2


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In the 1950s, it was more comfortable and powerful than most European small cars, having been

designed for sustained high speed on the Autobahn, and ultimately became the longest-running and

most-produced automobile of a single design. It remained a top seller in the US, even as rear-wheel

drive conventional subcompacts were refined, and eventually replaced by front-wheel drive models

owing much of its success to high build quality and innovative advertising.

New Beetle

In 1994, Volkswagen unveiled the Concept One, a "retro"-themed

concept car with a resemblance to the original Beetle. Designed

by J Mays and Freeman Thomas at the company's California

design studio, the concept car was based on the platform of the Volkswagen Polo. Strong public

reaction convinced the company to develop a production version which was launched as the New Beetle

in 1998, based on the Golf IV's larger platform.

New Beetles are manufactured at Volkswagen Group's Puebla, Mexico assembly plant where the last

lines of factory-built air-cooled Beetles were removed from production.

A classic

Volkswagens are famed for their traditional quality and the New Beetle is naturally no exception all

materials used is carefully tested and has outstanding workmanship. The body is galvanized giving

reliable protection against rust. The high-strength panels on the New Beetle are given additional

stability at specific points which achieves a very high level of torsional rigidity. The precision fit of

body parts results in picture-perfect dimensions.

Self assured

Yes, we know its a small car. But when it comes to safety, the New Beetle gives you a feeling of

security the moment you are seated inside. With ESP, ABS and other safety features in tow, the New

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http://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Autobahnhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Rear-wheel_drivehttp://en.wikipedia.org/wiki/Rear-wheel_drivehttp://en.wikipedia.org/wiki/Front-wheel_drivehttp://en.wikipedia.org/wiki/Volkswagen_New_Beetle#Concept_1http://en.wikipedia.org/wiki/Concept_carhttp://en.wikipedia.org/wiki/Concept_carhttp://en.wikipedia.org/wiki/J_Mayshttp://en.wikipedia.org/wiki/Freeman_Thomashttp://en.wikipedia.org/wiki/Freeman_Thomashttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_New_Beetlehttp://en.wikipedia.org/wiki/Volkswagen_Golf_Mk4http://en.wikipedia.org/wiki/Volkswagen_Golf_Mk4http://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Autobahnhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Rear-wheel_drivehttp://en.wikipedia.org/wiki/Rear-wheel_drivehttp://en.wikipedia.org/wiki/Front-wheel_drivehttp://en.wikipedia.org/wiki/Volkswagen_New_Beetle#Concept_1http://en.wikipedia.org/wiki/Concept_carhttp://en.wikipedia.org/wiki/J_Mayshttp://en.wikipedia.org/wiki/Freeman_Thomashttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_New_Beetlehttp://en.wikipedia.org/wiki/Volkswagen_Golf_Mk4http://en.wikipedia.org/wiki/Volkswagen_Group


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Beetle comprises of a comprehensive active safety package, making it one of the safest vehicles in its

class. We have also equipped the New Beetle with a passive safety package that gives you the greatest

possible protection. The carefully matched restraint system, consisting of four airbags and a 3-point

inertia reel seat belt system at front and rear, is also part of the standard equipment. Go ahead and enjoy

the drive.

Comfort and convenience

In a New Beetle, you enjoy the comfort and convenience afforded by an exclusive standard

specification. Right from the 116PS (85 KW) engine version, it includes electrically adjustable and

heated door mirrors, power steering, colour-keyed door mirror housings, door handles and bumpers and,

of course, the legendary flower vase.

RATIONALE OF THE STUDY

As Indian automotive industry is one of the major growing Industries in the world. With the

impact of globalization, there are many new players in the Indian auto industry. As the Volkswagen

launched its Beetle in India, which is mid-sized luxury car priced quite high. So the research was

carried out to have a market analysis regarding the new Beetle in Indian Market.

OBJECTIVE OF THE STUDY

1. To conduct the market analysis of Volkswagen New Beetle.

2. To conduct the SWOT analysis of the car.

3. To know the consumer perceptions when they purchase a car.

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CHAPTER IV

RESEARCH METHODOLOGY

Research Problem

Market Analysis of Volkswagen New Beetle

Research Design

Research Design is exploratory and descriptive which helps me to explore and describe the

market potential and market factors to be considered for New Beetle by Volkswagen.

Sampling Design

The study aimed to survey 15 samples from Delhi. Samples consist of the customer or prospects.

The respondents were selected on the basis of convenience sampling.

Data Collection:

Both primary and secondary data have been collected for meeting the objectives of the current

study.

For the purpose of the collection of the primary data, personal interview of the respondents

was conducted. An unbiased, undisguised structured questionnaire was prepared which was

administered to the respondent for the purpose of getting the information. With the reference of certain

previously carried studies, certain statements for getting out the customer perception were formulated

and these were clubbed together to formulate the questionnaire.

For the purpose of secondary data, secondary sources of information like magazines, newspapers,

journals; studies conducted in past etc. have been referred. The main sources of secondary data in the

study

1. Magazines

2. Websites

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Analysis Techniques

The questionnaire is having the alternative choices. Questions having alternative choices have

been analyzed by taking percentages.

Scope of the study

The scope of the study is limited to the customers visiting to the Maruti & Tata Showroom in

Delhi.

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CHAPTER V

Data Analysis and Interpretation

5.1 Car brand being used currently

Analysis and Interpretation: Majority of the respondents are using the brand Maruti Suzuki followed

by Hundai. Data shows that majority of customers prefer to buy cars of Maruti Suzuki, because it is the

most popular, famous brand in Indian Automobile Industry. The interpretation can be made that most of

the customer prefer the small and mid segment cars.

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5.2 Type of car segment preferred

Analysis and Interpretation: Results shows that mostly the customers prefer the B segment cars

followed by A segment. This shows the demand structure and preference of Indian car buyer which is

also related to his income level.

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5.3 Affordable money for purchasing a car

Analysis and Interpretation: The customer can afford 5-10 lac for buying a car, which is mostly for

the B segment cars. So interpretation can be made that the mid segment cars are mostly preferred as

compared to luxury or small segment.

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5.4 Factor influence while purchasing a car

Analysis and Interpretation: Efficiency is the most important factor that is considered while

purchasing a car. Next important factor is comfort. As India is a developing country, mostly people

prefer to purchase fuel efficient cars. Thats why Diesel cars are preferred in Indian market.

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5.5 Preference of Foreign Brand

Analysis and Interpretation: Majority of the respondents prefer to buy foreign car brands. Reason

may be interpreted as the availability of the foreign car manufactures in India. There is no doubt that

mostly the car brands belong to abroad, but now they manufacture and assemble their product according

to Indian customers preference.

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5.6 Consumer know about Volkswagen Beetel

Analysis and Interpretation: Majority of the respondents know about the Volkswagen Beetle. Reason

behind that Volkswagen is global brand and the goodwill of that brand is very high in market.

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5.7 Like to purchase Volkswagen Beetle

Analysis and Interpretation: Majority of the respondents Least interested to purchase Volkswagen

Beetel.Major reason behind that, In Indian market; it stands in B segment while the cost of Beetle

stands in D segment. The cost of Beetle is very high in context to Indian market.

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CHAPTER VI

SWOT ANALYSIS

Strengths

It stands apart from all other cars on the road - Volkswagen Chairman Ferdinand Piece is even

amazed at the cars appeal. It is different, and it makes you feel different, he said. Its like a

magnet. Its curved outline, rounded fenders and oversized lights separate it from the other vehicles on

the road. The biggest-selling car design in history gets even better - Its cute and trendy, more

comfortable than its predecessor and there are a whole lot more luxuries and new technologies crammed

into this nostalgic Beetle. The New Beetles safety surpasses the rest - The 1998 model of the New

Beetle is the safest small car that has been tested by the Insurance Institute for Highway Safety.

Weaknesses

Its not an SUV - Americans are showing a strong trend toward purchasing Sport Utility vehicles

rather than conventional sedans. A Gallup Pole recently asked 1,003 adults: Which of the following best

describes the type of vehicle you most recently purchased or leased?

Although recent purchase trends put sedans in the lead, projected trends are saying that Americans are

leaning toward SUVs. The survey showed that 51 percent of people planning on purchasing within the

next year are more likely to purchase and SUV compared to 39 percent purchasing a new vehicle more

than a year from now. Also an indicator, three out of four SUV owners say their next vehicle will also

be an SUV4. The Volkswagen New Beetle is termed a small sedan. Looking at its competing models

(which will be discussed later) I would tend to put the New Beetle in the small car category which

shows very little market favor. Brand loyalties favor American vehicles - The preference for American

vehicles is more than three times higher than that of European vehicles. 78 percent of people surveyed

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in a Gallup Pole said that they would definitely or probably consider buying an American vehicle while

only 25 percent said that of a European brand, such as Volkswagen.

Opportunities

The New Beetle has a global appeal - Americans arent the only ones who love this car. There is much

opportunity for growth internationally. Japan is predicted to have the Potential to be the second-largest

New Beetle market. There is also hope that Beetle mania will spread across all of Asia.

Capitalize on nostalgic cravings - The old Bug was the biggest-selling car design in History. Baby

boomers loved their groovy cars as young adults and todays young adults are looking to rediscover the

age that passed. As we approach the next millennium there has never been a better time to capitalize on

the nostalgia Americans are craving. The Beetle is a strong representation of the past and may find itself

setting trends for the Future.

Threats

Can trendy stay alive? - Will the New Beetle survive as long as its predecessor? We see many trends

come and go. Does the New Beetle have what it takes to survive?

Can the Beetle be duplicated? - Would another car company trying to duplicate succeed? If the

success of the New Beetle continues there will be other car makers wanting to hop a ride on the

bandwagon. Could the New Beetle survive if another company could produce more cars of similar

attributes faster?

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Will history deter some drivers? - The first Beetles were manufactured in Wolfsburg, Germany, at a

plant built by the Nazis. Although the war is long since over, there are still many people who will treat

the Volkswagen Beetle with the same prejudice and distaste they feel for the actions of the Nazis.

Market Segmentation

The New Beetle is unique from other cars in that its market is huge. The range of interest for the

automobiles is from 16-year-olds to 65-year-olds.The car appeals to drivers of many social classes.

From college students to CEOs the Beetle has found its way into garages of all classes. What do all of

these consumers have in common? Simple, theyre tired of driving the same old pod-like cars and the

nostalgia the Beetle gives off is comforting and energizing.

Target Markets

Volkswagen executives refuse to be pinned down on the New Beetles target market saying only that it

is designed for optimists. Yet its clearly aiming wide. While many of the ads sport jokes targeted at

the previous Beetle generation, others are aimed squarely at Gen-X. Edmunds web page on automobile

reviews identifies the target buyer as men, women, young people or people who are simply young at

heart. The New Beetle is marketed as classic, classy, unique, and economical. Its for the kind of

person who likes to have fun, appear fun, and stand apart from a crowd.

Competitor Analysis

Volkswagens top competitors (as a company) are Ford, General Motors and Toyota. All of these

companies are very successful in the American market and provide strong competition for VW which

has been struggling in this marketplace in past years. The primary competitors for the Volkswagen New

Beetle are the Honda Civic, Fiat, Hyundai. All are included in the same approximate price range and are

comparable for size, safety features and options. Different tests rate one above another on many aspects

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but tend to vary depending on the researchers. The safety of the New Beetle does consistently rate

higher than the competing models. Volkswagen competes with a lot of worthy contenders in the

automobile industry. Everyone has their own spin on value, style and economy and changes in the

market refuse to slow down.

Social Responsibility/Ethics/Legal/Political Environment

There are a lot of cars on the road these days and increasing numbers of accidents so safety is important

as a social responsibility for auto makers. The New Beetle is keeping up to todays standards and far

surpasses its predecessor on safety features. Energy-absorbing crush zones, pre-tensioning safety belts,

daytime running lights, antilock breaks, dual airbags, and optional side airbags for front-seat passengers

top the list of safety features. The Beetle also scores excellent in the bumper crash-test. New for 2000

are a brake-wear indicator, improved theft protection, and an optional cold-weather package. The New

Beetle also does its part for our society by being economical and efficient. Volkswagen offers a Turbo

Direct Injection diesel engine that gets 48 miles per gallon on the highway. On the environmental side,

the New Beetle is equipped with a CFC-free air-conditioning system. Legally, the Volkswagen is

responsible for doing its part to meet legal requirements in different states.

Distribution/Place Characteristics

The automobile industry is unique from other industries in that many people chose to order vehicles to

their specifications and are willing to wait months for them to arrive. This has been stretched even

farther with the New Beetle. During, and even before, the introduction of the Beetle people put their

names on waiting lists to purchase the car. Some dealerships had waiting lists of over 100 names long

even before the cars were released on the market. People who wanted a silver one would take blue just

to get one. Since then availability has increased although their limited output and the constant demand

keep this distribution channel interesting.

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Promotion Characteristics

Historically the Volkswagen Beetle has had one of the greatest ad campaigns in history. The November

12, 1999 issue of the Portland Business Journalstates that The ad, and the work of the ad agency

behind it, changed the very nature of advertising from the way its created to what you see as a

consumer today. The truth behind the Bug was that it was never meant to be a massive seller. The

company hoped to sell 50,000 New Beetles in 1998 but ended up selling about 74,000. They put the car

on the market to draw attention to the entire line of automobiles that Volkswagen offers. It certainly

appears to be doing its job. Volkswagen has experienced

a 59 percent increase in sales since the New Beetles arrival. People are drawn into the show room to

look at the beetle and stop to take a look at the other models. The excitement the Beetle created spread

among the brand. Volkswagen is using nostalgia to market the New Beetle. The company is investing

$560 million in the advertising campaign for the car putting the spark back into the life of their

company. The new advertisements, much like the old, are very simple. One ad from the 1060s featured

a small picture of the car with the headline Think small. Text highlighted the advantages of driving

the small Beetle versus a big car. Overall their ads conveyed a message of frugality and sensibility.

Todays ads maintain the same simple format but incorporate some more modern techniques such as

original music that is created just for the Volkswagen ads. Lance Mike. Jensen of Arnold

Communications, the advertising firm responsible for the New Beetles latest campaign, explains

People like to feel theyre not of the herd. If a song comes on the air that they know but other people

may not know, that makes them feel good.

Price Characteristics

The New Beetle is the most expensive small sedan in America today, but Volkswagen expects a

new generation to discover the bug and be willing to pay for it. The company can still afford this higher

price due to the demand for the vehicle.

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International Marketing Opportunities

The New Beetles are manufactured in Mexico in a plant that has a 100,000 a - year capacity

for output of the popular car.

The car was introduced in Europe but didnt catch on as well as it did in the United States. In

Europe the Volkswagen Golf is still preferred over the New Beetle although one source stated that the

company may try to introduce a less expensive model of the New Beetle to the European market to see

if it will do better.

Volkswagen Group Japan KK began accepting orders for the Volkswagen new Beetle in June of

1999. The Japanese unit of Volkswagen (originally based out of Germany) is based in Toyohashi, Aichi

Prefecture. This manufacturing group offers two models of the New Beetle with left-hand-drive.

Pending the success of its introduction in Japan, the company plans to branch across Asia.

Internet Opportunities

Volkswagen has the opportunity to follow other car manufacturers in providing its customers the

ability to research vehicle options and order a personalized car over the Internet. Personalizing service

is always good for a company and the more ways for consumers to buy, the better.

Volkswagen does have several web sites that give information about the New Beetle. Everything

from pricing and dealership locations to customer testimonials are available through the web. Due to its

popularity it also receives mention on numerous other sites and I have found it involved in numerous

promotions as the prize for drawings.

GM and Ford recently announced their plans to greatly increase the amount of business activity

they conduct on the Internet. It appears that this strategy will help to increase their efficiency and

profitability as well as cutting down their costs by working online with suppliers instead of using face-

to-face encounters. If their strategy works as planned, Volkswagen would do well to follow suite in

capitalizing on the services of the Internet for bettering their business to business activities.

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Findings of the study

1. Maruti Suzuki is the most preferred brand among Indian customers.

2. People prefer to buy B segment cars.

3. People can spend 5-10 lacs for purchasing a car.

4. Efficiency of the car is the most important factor when purchase is made.

5. People prefer the foreign car brands because their availability in Indian market.

6. According to analysis most of the consumer know about the Beetle.

7. Because of the higher price people least interested to purchase Beetle.

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Conclusion

The research was carried out regarding the analysis to know the perception of middle class consumer

regarding Volkswagen Beetle in the Indian market. Both the primary and secondary data was collected

for this purpose. By going with the primary data analysis and the SWOT analysis, It can be concluded

that though the Beetle is having its own USPs but it can not do well in the Indian market. First of all the

prize factor is the reason for it. A customer can have a D segment car by paying the same amount as he

is supposed to pay for Beetle. Though it is attractive in nature, but being small sized and lack of inner

space make it lower as we compare it to other cars in this price. So these factors must be kept in mind

by the Volkswagen while launching it in Indian Market.

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Bibliography

Articles

1. Odgen, Mike. Top ad campaign of century? VW Beetle, of course. Portland Business Journal

12 Nov. 1999:8, v.16, i.38.

2. Cisterna, Fred. Driving music: Volkswagen uses a mix of existing and original tunes to get

drivers going. Shoot 13 Aug. 1999: 26, v.40, i.32.

Websites

1. http://www.volkswagen.co.in/in/en/products/Beetle.html

2. http://www.netmba.com/marketing/market/analysis/

3. www.angelfire.com/.../New%20 Beetle %20 Market %20 Analysis .pdf

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http://www.volkswagen.co.in/in/en/products/Beetle.htmlhttp://www.netmba.com/marketing/market/analysis/http://www.angelfire.com/.../New%20Beetle%20Market%20Analysis.pdfhttp://www.volkswagen.co.in/in/en/products/Beetle.htmlhttp://www.netmba.com/marketing/market/analysis/http://www.angelfire.com/.../New%20Beetle%20Market%20Analysis.pdf


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ANNEXURE

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QUESTIONNAIRE

Dear Sir / Mam, this data collected is just for the research purpose and would not be used forany other purpose.

Name ..

Age .

Gender: Male Female

Occupation.

1) Which car brand you are currently using?

Maruti Suzuki TATA Motors

Hyundai Any other

If any other, please specify

2) Which car segment do you prefer?

A segment B segment

C segment D segment

3) How much money you can afford to buy a car?

2- 5 Lacs 5- 10 Lacs

10- 15 Lacs More than 15 Lacs

4) What factor influence you most when you buy a car?

Safety Efficiency

Comfort Brand

5) Do you prefer foreign brands?

Yes No

Cant say

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6) Have you heard about Volkswagen Beetle?

Yes No

7)Would you like to purchase Volkswagen Beetle?

Yes No

amit minor prjct 1

Documents