BRAND POSITIONING & DIFFERENTIATION STRATEGY OF VOLKSWAGEN IN INDIA

Synopsis

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I" #a$tia% u% i%me"t o POST GRAD&ATE DIPLO'A IN 'ANAGE'ENT A(ademi( Se))io": *+,* - *+,.

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ERA Bu)i"e)) S(!oo% P%ot No/ 0AF1,2 Se(to$132 D4a$5a2 Ne4 De%!i - ,,++66 Dated: No7embe$ **2 *+,8

INTROD&9TION
A brand is the symbolic embodiment of all the information connected with a product or service. It encompasses the set of expectations associated with a product or service, which typically arise in the minds of "people" (consumers, buyers, or other target audiences). A brand typically includes a name ("brand name"), logo, and other visual elements such as images, fonts, color schemes, or symbols. In other contexts, the term "brand" may be used where the legal term trademark is more appropriate. ne of the most important yet least understood assets of a company is its brand. In a world besieged with competition and rising consumer expectations, a good product or service has become the cost of entry. !reat companies transcend tangible and functional benefits by creating positive emotional ties that can easily outlast any individual product or service. A strong brand builds relationships with customers, which guarantees business for the future. "he most valuable property a company ac#uires over time is its reputation, its goodwill, and its brand name. "he word brand is derived from ld $nglish

meaning, %burning stick&. "he ancient $gyptians used livestock branding as early as '()) *+ as a theft deterrent, as stolen animals could then be readily identifiable. Around the ,)th century merchants marked simple linear designs to prove ownership of goods that were missing due to shipwrecks, pirates, or other mishaps. "hey were also useful for the tracking of goods by people who were illiterate. According to the American -arketing Association (A-A), a

brand is a "name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.& "hus, whenever a marketer creates a new name, logo, or symbol for a new product, he or she has created a brand.

SIGNIFI9AN9E OF T0E ST&DY

"he strategy of unbundling certain advertising services, such as media planning and buying, is being employed by . /012A!$3 I34IA. . /012A!$3 has expressed a commitment to its dealers that they will continue to grow the . /012A!$3 brand in India. "his strategy is one step they are taking in that direction. "he strategy will significantly increase their market share in India while at the same time lowering the overall costs.

REVIEW OF LITERAT&RE
-any people think business strategy and brand strategy are the same. "his mistake is often made by many people in business. *usiness strategy is an all encompassing one consisting of what business one is to be in, what brands or products or services are to be marketed, what is the marketing strategy, what products or brands to focus on, what is the manufacturing strategy, what is the #uality strategy, what is the pricing strategy, what are the ways of reaching the customer, what is the 564 strategy, the kind of people and training re#uired, what are the risks involved and finally, what is the financial strategy, so that the entire organi7ation remains a profitable and healthy enterprise. *rand 1trategy is either building a new brand or developing an existing brand. *randing is all about uni#ueness of a product or service. "he word branding is derived from the ld $nglish, meaning a 8burning stick8. As early as '()) *+, the $gyptians used livestock branding as a deterrent to theft. *rand 1trategy has developed a lot in sophistication today and for some companies it is at the centre stage of corporate and business strategy. *randing is now a very important part of a business. 2hether the business is a bank or a small retailer, the brand development and strategy to a large extent dictates whether it will succeed or not in the long run. *rand 4ifferentiation techni#ues "he following strategies are available for brand development9 :uality ;rice "ransient 4ifferentiation +ircumstantial 4ifferentiation 1trategic 4ifferentiation

If properly designed, brands should promise relevant differentiated benefits to their target customers. +arefully choosing the most powerful benefits will not only result in brand preference, but brand insistence. "hat is, the brand will be perceived to be the only viable solution for the customer<s need. ;ut another way, the customer will not pursue substitutes if the brand is not available. "he brand establishes a consideration set of one.

OB:E9TIVE OF T0E ST&DY

Ob;e(ti7e o t!e Study "o become aware with the brand positioning and differentiation strategies adopted by . /012A!$3 in India to gain competitive edge over its competitors. "o analy7e how these strategies have helped . /012A!$3 I34IA to develop greater customer loyalty.

Re)ea$(! 'et!odo%o<y
P$ima$y Data: #uestionnaires. Se(o"da$y Data: 1econdary data that is already available and published .it could be internal and external source of data. Internal source9 which originates from the specific field or area where research is carried out e.g. publish broachers, official reports etc. $xternal source9 "his originates outside the field of study like books, periodicals, =ournals, newspapers and the Internet. 4ata which is collected through direct interviews and by raising

DATA 9OLLE9TION P$ima$y Data: +ollected through structured #uestionnaires, personal interviews> discussions with focus on his> her choice before availing for the service. Sample Design Sampling unit: Officials of Volkswagen India

Sample size: Research Location: Sam#%i"< P$o(edu$e

100 New Delhi, India

6espondents are chosen through cluster sampling.

DATA 9OLLE9TION Sou$(e) o data: ,) ;rimary 4ata which included the input received from directly the residents through Interview. ') 1econdary data from the Industry manual, policy manuals, books and internet etc. 'et!od o (o%%e(ti"< data: Interview method

BIBLIOGRAP0Y
Ne4) Pa#e$) "imes of India 5industan times 4eccan herald 'a<a=i"e) "he 1unday Indian *usiness and economy India today *usiness outlook

Web %i"5) www.volkswagen.de www.vw.com www.vw.ro http9>>people.westminstercollege.edu>staff>bknorr>html>links.htm www.vwmaga7ine.com>history>bughist.html