final volkswagen

8/2/2019 Final Volkswagen

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P R E S E N T E D B Y

STRATEGY A T V OLKSWAGEN GROUP I NDIA


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Contents

Volkswagen The Group Volkswagen Group IndiaCorporate Strategy

Mark 18 Plus Strategy

Business Strategy Skoda Audi Volkswagen India

Functional Strategy Brand Equity Communication, Pricing AND Distribution


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Das Auto


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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 the world.

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 India journey 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 19,000 vehicles 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.

Skoda entered the Indian market in 2001.

Its plant in Aurangabad, assembles a total of eight

models including the Audi A6 and Audi A4 as well asthe Volkswagen Passat and Volkswagen Jetta.

Groups production facility near Pune in the ChakanIndustrial Park is a key element in VolkswagensIndia strategy to establish a long term presence.


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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 the Volkswagen 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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M ACH 18P LUS 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 environmental benchmarks.

The company has earmarked annual expenditure fordevelopment and investments in new models andtechnologies in excess of 8 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 10 th 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 products with Maruti Suzuki India, as part of its efforts toachieve synergy with Suzuki Motor Corp at the globallevel.


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Business Strategy

SKODA A UTO INDIA Launched its first product, the OCTAVIA, in India in

2001.

Was the only possible step to enter India.

Skoda adopted a Focus Strategy approach relying ondifferentiation as a luxury car maker.


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It now plans to come up with a new Fabia which will be more competitively priced and another small carpriced between 3-5 lacs(by 2012).


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A UDI INDIA Audi is one of the worlds leading premium brands.

Basis of its success comprises pioneering concepts inthe domains of advanced technology and design.

Audi has been selling its products in Indian marketsince 2004.


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For this Audi AG has earmarked investments of up to 30 million (Rs174 crore) by 2015 in its localoperations.

Also Audi India plans to come up with a car incorporate entry level i.e. Toyota Camry following thelead of BMW.


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V OLKSWAGEN INDIA Volkswagen is the highest volume brand of VW

Group.

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.

It will be positioned at the upper-end of the country'smid-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

M A R K E T S

C u r r e n t

N e w

P RODUCTS Current New


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Functional Strategy

M ARKETING STRATEGY OF VW INDIA China is the 2 nd largest market for VW Group after

Europe.

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

R a t

i o n a l

E m o t

i o n a l


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Cont

When VW started out in 2007, low brand awareness was 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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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 equally strong 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 imagery associated 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 TV advertisements 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 Limited currently has more than 70dealerships in 56 cities across 18 states and 2 union territories of India.

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 and buy 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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Unique Advertiseg Strategy


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