ma ppt
TRANSCRIPT
Case Study
Skoda
Monopoly in Czechoslovakia upto 1989 30% Skoda bought by Volkswagen 1991 100% Skoda controlled by Volkswagen 2001 Felicia 1994 Octavia 1998
Rise in costs/price Tag of Cheap brand
PRODUCT, PLACE , PRICE, PROMOTION
It refers to tangible object or intangible service. Tangible object here in case the Motor Car
Place represents the location where a product can be purchased It is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/ services are moved from the manufacturer/service provider to the user or consumer. It can include any physical store as well as virtual stores on the Internet.
Skoda's 1st VW backed Model Launched in UK with 10 Million Launched gets failure with only 6154 cars gets sold
Hit launched 11000 cars gets sold
In the narrowest sense, price is the amount of money charged for a product. More broadly, it is the sum of all the values involved in a product. Price is the only element in an organizations marketing functions that produces revenue Price is also one of the most flexible elements of the marketing functions
While launching OCTAVIA the cost of the improved VW car structure pushed up Skoda prices Skoda needed to convince customer that the price was worth paying Their aim was from being a cheap brand to being a value for money brand
Promotion is any communication that helps make a sale and build customer relationships ExamplesBrochures Newspaper ads Providing product samples
OCTAVIA was Skodas highest ever spend marketing campaign Skoda FABIA launched with much smaller marketing campaign and advertising message It include Television campaign for 4 and half week print and poster ads for 2 weeks PR push targeted consumer press and attempted to get positive eye Direct mail tried to built loyalty levels Auto express magazine carried a competition to win a Skoda car
Skoda
Demographic Gender, Age, Family life cycle, Race/Ethnic group, Social class, Education, Income, Occupation, Family size, Religion, Home ownership
Geographic Country, Region, Urban/Suburban/Rural, Population density, City size, Climate
Potential MarketPsychographic Segmentation Activities, Interests, Opinions, Attitudes & Values
Behavioural actual behaviour toward product itself. A good starting point for segmentation
Benefits sought, Usage rate, Brand loyalty, User status, Readiness to buy, Occasions
Skoda
Five basic strategies for target market selection: (1) Single Segment Targeting (2) Selective Targeting (3) Mass Market Targeting (4) Product Specialization (5) Market Specialization
Cheap brand to value for money brand. Positioning of Skoda within VM Group. Initially during the launch of Skoda Octavia more emphasis was given on single segment targeting. During the launch of Fabia Skoda adopted strategy of Market specialization.
Cheap brand to value for money brand. Positioning of Skoda within VM Group. Initially during the launch of Skoda Octavia more emphasis was given on single segment targeting. During the launch of Fabia Skoda adopted strategy of Market specialization.
Skoda
Relative perception Process of creating favorable relative position:1. Identification of target market 2. Determination of needs, wants, preferences and benefits desired 3. Examination of competitors characteristics and positioning
4. Comparison of product offerings with competitors 5. Identification of unique position 6. Development of a marketing program 7. Continual reassessment
Strategies
Product Descriptors Product features
Advantages Benefits
Customer Support Services Image
Strengthen the Current Position Repositioning
Skoda Rational/Pragmatic Stylish/Smart Individual/Different Made for you by people like you
Description
Target Market
Selected Segment By using Differentiation variables
Differentiation
Positioning Strategy
Value for money Car Proposal for target
Cheap to Value for money Position within the group Create identity separate from Volkswagen Only 20% buyers under 45 years of age 1/3rd Already owned Skoda Old, unfashionable and out of sync image
Product Performance Conformance
Personnel
Image
Channel Performance Expertise
CompetenceCourtesy Credibility Communication Reliability Responsiveness
SymbolsAtmosphere
Design DurabilityReliability Reparability
MediaEvents
Coverage
Style Features
By the end of 2000 Fabia was hit launched Octavia sales raised by 29% Skoda had waiting lists for cars UK customers see Skoda as cut price VW
Group O N E