INTRODUCTION
Volkswagen (VW) is one of the world’s leading automobile manufacturers and the largest carmaker in Europe
Volkswagen in German language means people’s car
Founded - 28 May 1937 (75 years)
Founder(s) - Ferdinand Porsche
Headquarters - Wolfsburg, Germany
Slogan - Das Auto ("The Car")
Area served - 153 countries
Subsidiaries - Audi, Bugatti, Bentley, Lamborghini, Porsche, SEAT, Skoda, Volkswagen and Scania CV
2024 TOP 10 most fuel-efficient vehicles according to the US agency
Volkswagen's Marketing Strategy in India
1.
2. Introduction - Volkswagen (VW) is one of the world’s leading
automobile manufacturers and the largest carmaker in Europe
Volkswagen in German language means people’s car
Founded - 28 May 1937 (75 years)
Founder(s) - Ferdinand Porsche
Headquarters - Wolfsburg, Germany
Slogan - Das Auto ("The Car")
Area served - 153 countries
Subsidiaries - Audi, Bugatti, Bentley, Lamborghini, Porsche, SEAT,
Skoda, Volkswagen and Scania CV
3. Volkswagen entered the Indian passenger car market in 2001 by
launching its car brand - Skoda. In 2007, two of its other brands Audi
and Volkswagen, were also launched in India.
Volkswagen Group India emphasized on all aspects of marketing mix
including product, price, place and promotion.
The company offered three brands including Audi(10), Skoda(4) and
Volkswagen(7) that together comprised of 21 different models as of
May-2013.
Volkswagen Group India mainly catered to the luxury segment of the
Indian car market.
The company had established presence in India through separate
distribution channels for each of its brands.
4. 70% of passenger cars are small cars in India.
The pricing needs to be within the competition.
Need for changing its market strategy for India.
Majority of Indians did not know anything about Volkswagen, not
even the pronunciation.
Brand awareness was 4% as compared to 70% which competition
enjoyed.
India is an important market for Automobile manufacturers.
Indian automobile market is growing market.
Easy Financing Options are available.
Expertise in Premium cars Priority to performance Skewed
towards compact cars Priority to economy.
Challenges for VW in India -
5. Worlds first talking newspaper
Volkswagen took advertising to a new level with an innovative audio
advertisement in newspaper.
On Tuesday September 21, 2010 as readers opened the newspaper a
lightsensitive chip attached to the page announced the arrival of “a
perfectly engineered car” – the Vento.
25 lakh readers of The Times of India and The Hindu were taken by
surprise.
It cost VW 5 crore rupees.
Social media
VW India’s FB fan page has more than 1.5 million likes and Twitter
page has more than 11,000 followers.
Official YouTube channel for VW 57 million subscribers worldwide
Broadcast numerous videos for promotion and brand awareness.
6.
7. Product
21 different models under 3 brands.
Produced at Chakan Plant, near Pune.
More assembly plans in India – competitive advantage.
Price
Targeted mainly for the luxury segment in the Indian
market.
Plan to capture bigger market by launching many new
cars priced sub-10 lakh rupees .
Place
Significant presence – Currently, the company has
around 200 dealerships and outlets across major cities.
By 2015, it would double the number of dealerships.
Well, increasing the proximity of the dealerships for
the customers will be surely a successful move.
8. Promotion
Launched Integrated Marketing campaign in November, 2009.
Collaboration with DDB Mudra.
Evoke consumer awareness of VW as a brand.
Innovative promotional campaigns – OOH, print ads, TVCs.
Print media – Communicating benefits.
Television Commercials – Brand building.
Purpose
Building brand image through innovative promotional campaigns.
Earlier example – “think small” for Beetle in 50s.
Core focus on luxury segments.
Low cost VW Polo for targeting masses.
Achieve significant awareness of VW as a brand before launch of Polo.
Showcase German engineering coupled with “Made in India” promise.