Simply Clever

• Slavia – the first name of the company

• Early 1890s – started manufacturing bicycles

• 1895 Vaclav Klement and Vaclav Laurin started bicycle repair shop

• In 1900 - press credited them as makers of the first motorcycle.

• After World War I “The LAURIN-KLEMENT COMPANY” began producing trucks

• In 1924 - acquired by Skoda works, an arms manufacturer, industrial enterprise in

“Czechoslovakia”.

• Later production under the Skoda name.

• Skoda Auto India Pvt Ltd. has been operating in India since November 2001, It has set

up a modern manufacturing facility in Shendra near Aurangabad, Maharashtra.

SKODA

• After the Second World War, when it first came under Nazi control and was later nationalized by the Czechoslovakian government.

• By the 1980s, Skoda cars had lost track of the technological advancements in the West, and were widely derided for their poor quality and unreliability.

• In 1991, VW acquired a stake in Skoda. Following this, VW went about systematically transforming Skoda's image and establishing it as a reliable mass market car brand.

MISSION AND VISION

Skoda 973 Babeta (1949)Skoda 1100 Type 968 (1958)Skoda F3 (1964)Skoda 720 (1967-1972)Skoda 1100 Gt (1968)Skoda 110 Super Sport Ferat (1971)783 Favorit Coupé (1987)Felicia Golden Prague (1998)Ahoj (2002)

Fabia Paris Edition (2002)Tudor (2002)Roomster (2003)Yeti Ii (2006)Joyster (2006)Fabia Super (2007)Vision D (2011)Skoda Rapid etc.,

PRODUCTS

Competitors

1. Toyota2. Honda3. Hyundai Motors4. Ford5. Nissan Motors6. Maruthi suzuki 7. Tata

Porter´s 5 Forces AnalysisThreat of New

Entrants (very high)

Competitive Rivalry(high)

Threat of Substitution

(medium)

Power of Suppliers

(low)

Power of Buyers(high)

Michael E. Porter

• Strengths - the internal elements of the business that contribute to improvement and growth

• Weaknesses - the attributes that will hinder a business or make it vulnerable to failure

• Opportunities - the external conditions that could enable future growth

• Threats - the external factors which could negatively affect the business.

Strengths• It asked customers directly for their opinions about its cars.• Skoda knows that 98% of its drivers would

recommend Skoda to a friend.• Skoda adopted a strategy focused on building

cars that their owners would enjoy.• The brand is associated with a quality product

and happy customers.

WEAKNESS Missing models of large MPVs and SUVs

In some markets perception of brand image is poor

Opportunities

• Extension of existing capacity • Growing market dynamics • Extending the sales network • Extending the product portfolio • Addressing other target groups

Threats

• Competitor launching cheaper products.• Decline in demand • Changing trends

Outcomes and benefits of SWOT analysis

• Skoda UK's SWOT analysis answered some key questions. It discovered that: 1) Skoda car owners were happy about

owning a Skoda 2) The brand was no longer seen as a

poorer version of competitors' cars.

• However: the brand was still very much within a

niche market a change in public perception was vital for

Skoda to compete and increase its market share of the mainstream car market.

Unique selling proposition

• Skoda UK has responded with a new marketing strategy based on the confident slogan,

- 'the manufacturer of happy drivers‘- the 'Fabia Cake' TV advert. This showed

that the car was 'full of lovely stuff‘ etc.,- 'experience the happiness of Skoda

online'

Conclusion

• Skoda is a global brand offering a range of products in a highly competitive and fragmented market.

• SWOT highlights the key internal weaknesses in a business, it focuses on strengths and it alerts managers to opportunities and threats.

• In this case study shows how Skoda transformed its brand image in the eyes of potential customers and build its competitive edge over rivals.

• By developing a marketing strategy playing on clearly identified strengths of customer happiness, Skoda was able to overcome weaknesses.

• Improved sales show that Skoda new strategy has delivered benefits.

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