MARKETING STRATEGIES OF VOLKSWAGON

Marketing Strategy?

• A process allowing organizations to concentrate limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

• Customer satisfaction –> Essence of marketing strategy.

INFLUENCING FACTORS

VOLKSWAGEN AG....Intro!

• Leading Car manufacturer based in Wolfsburg, Germany from 1937.

• VOLKSWAGEN means People’s car.

• Parent Co. of leading

car brands like Skoda,

Audi, Lamborghini .

VOLKSWAGEN GROUP INDIA

Indian subsidiary of Volkswagen AG.

Entered Indian market in 2001 with brand – Skoda Octavia.

Parent Co. of Volkswagen India Private Limited (Volkswagen India) and Volkswagen Group Sales India Private Limited (VGSIPL).

Launched Audi and Volkswagen brand in 2007.

PRODUCT PORTFOLIO…

Offered 15 different models under brand names Skoda, Audi and Volkswagen, as of late 2009.

2007 - Passat2008 - Jetta2009 - Beetle2009 - Touareg2010 - Polo2010 - Phaeton

PROBLEMS FACED…

Low brand awareness.Too narrowed niche marketing(2% of

sales).Stiff competition.High priced portfolio.

MARKETING STRATEGIES.. PAST

Previous tagline - “Aus Liebe zum Automobil” - For the love of the automobile.

Primarily used print media to promote its products.

Contd…

Catered premium and upper premium segment

Product range started from around Rs. 25,00,000.

Separate distribution channels for each of its brands.

PRESENT SCENARIO….

In Nov. 2009, VW launched an integrated 360

o communication

campaign, conceptualized by DDB Mudra.

Rs 8-10 crore for print, Rs 10 crore for outdoor and digital and Rs 20 crore for TV ads.

Tagline “Das Auto,” German for “The Car” and “German Engineering, Made for India”

OBJECTIVES..

• To raise brand awareness.

• To cater masses along with classes.

• To increase sales volume & overtake competitors.

• To promote as a brand offering people different cars at different stages of their lives.

ADVERTISING MEDIUMS..

17,692 television spots across 47 channels in 16 genres.

144 insertions in leading dailies. 50 insertions in magazines.280 sites as

‘out of home’ medium. Booked 23 websites.

A young boy in a VW showroom deciding on the cars that he wants to 'book in advance' at various stages of his life.

Today kids are bold enough to ask for what they want.

TV ADVERTISEMENT..

ADVERTISEMENT EVALUATION

Meant to drive brand awareness rather than "purely sales driven”.

Emphasis on the brand as a whole, not on the individual cars.

Highly competitive

advertisement expenditure

BRAND POSITIONING..

Each brand addresses different audiences and has a different brand positioning.

Passat Overwhelming comfortJetta For dynamic performersBeetle Recreating legendsTouareg Road dominatingPolo Made in IndiaPhaeton Handcrafted luxury

OTHER UPCOMING STRATEGIES

Planning to enter country’s pre-owned car segment by 2012 after BMW.

Co-presenting sponsor for the ICC T20 World Cup 2010 for Rs12-13 crore.

Promised 200 seconds of ads per match @ Rs.3lac/10sec.

DEALERSHIP NETWORK

Operates Franchises in Delhi, Mumbai, Bangalore and now adds Chandigarh, Ludhiana, Hyderabad, Gurgaon etc.

Intense training to dealers in management of sales, service, spare parts and business systems to increase customer satisfaction.

CONCLUSION..

• VW known globally for its iconic brand campaigns.

• Challenge is to transfer that greatness in India as well.

• Car not only the soul of German engineering, but also about the democratization of innovation.

THANKSTHANKS