Skoda-Building brand Equity
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Building Brand EquityA Skoda Case Study
1Some PointsHow do you double the value of a Skoda? *Fill the gas tank What do you call a Skoda convertible? *A dumpsterWhat do you call a Skoda with twin exhaust pipes? *A wheelbarrowWhy does a Skoda have a double rear window heater? *To keep your hands warm, while you push itA guy goes into his local garage and asks "Do you have a windshield wiper for my Skoda??? *"Sounds like a fair swap" replied the man in the garage.
OverviewA Brief Story Of SkodaExisting Mission and Vision External AnalysisStrategic SelectionStrength /WeaknessConclusion
History1895 Vaclav Laurin and Vaclav Klemnet form bicycle company1891 laurin and Kelemnt start making motorcycles 1905 The first car, called the Voiturette A, leaves the factory gates and thanks to its quality and attractive appearance soon gains a stable position in the emerging international automobile markets. 1907 Laurin & Klement set up a joint-stock company that goes on to export cars to markets the world over.1989 Czech republic formed 1991 April 16 marks the beginning of a new chapter in the Companys history, when it is acquired by the strategic partner Volkswagen. koda becomes the Volkswagen Groups fourth brand.1996 Production commences of another milestone car model for the Company the koda Octavia.
Skoda Mission Statement Three basic values of the Skoda brand
Intelligence We continuously seek technical solutions and new ways in which to care for and approach the customers that are the most important for us. Our conduct towards the customers is aboveboard, and we respect their desires and needsAttractivesness We develop automobiles that are aesthetically and technically of high standard and always constitute and attractive offer for our customers not only in terms of design or technical parameters but also the wide range of offered servicesDedication We are following the steps of the founders of our company; Messrs. Laurin and Klement. We are enthusiastically working on the further development of our vehicles; we identify ourselves with out product
7Strengths100-year history as a vehicle manufacturer.Capital infusions from Volkswagen.Strength of Volkswagens reputation.Highly-skilled work force available in the Czech Republic.Relatively low wages in Czech Republic.Largest employer in the Czech Republic.Synergy with other Volkswagen products.
WeaknessesLocation in a country that must deal with outdated infrastructure.Perception from the past that Skoda produces a low-quality product.Growing unrest of Skodas employees in seeking higher wages which decrease profit margins.
RecommendationsNext 3 years Move Manufacturing to low-cost labor countries with high demand for value priced automobiles (China and India) Next 5 to 7 years Develop an alterative fuel car for global marketplaceContinuing Leverage Volkswagen Auto Groups brand to create a global market for Skoda Cars
Annual Objectives Year oneGet plants up and running in China and IndiaYear two Increase Production& Sales~ 100,000 units in China, 25% export~ 30,000 units in India, 0% exportYear threeIncrease Production& Sales> 150,000 units in China, 35% export~ 45,000 units in India, 10% export
ConclusionIn today's modern motor industry, a cars brand is vitally important. It is more than just a marque - it represents product features, image, customer service and servicing. Todays customers want authentic, individual products with integrity. Skoda has seized a unique opportunity - emphasising its values and creating a strong identity which has become the brand story of the decade.