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The automotive sector is one of the key segments of the economy having extensive forward and backward linkages with other key segments of the economy. It contributes about 4 per cent in India's Gross Domestic Product(GDP) and 5 per cent in India's industrial production. This sector has generated about 4.5 lakh of direct employment and about one crore of indirect employment Volkswagen AG
India holds huge potential in the automobile sector including the automobile component sector owing to its technological, cost and manpower advantage. India has a well developed, globally competitive Auto Ancillary Industry and established automobile testing and R&D centers.
Volkswagen AG
MAJOR COMPETITORS
Volkswagen AG
Volkswagen AG
VOLKSWAGEN INDIA
Volkswagen AG
VOLKSWAGEN-AN INTRODUCTION
Founded in 1937 by Nazi trade union.
Product range extends from low-consumption small cars to luxury class vehicles and trucks
Volkswagen AG
VOLKSWAGEN IN INDIA
Entered Indian Market in 2001.
The company offered three brands including Audi, Skoda and Volkswagen.
As of 2009, Volkswagen Group India has two group companies - Volkswagen India Private Limited (Volkswagen India) and Volkswagen Group Sales India Private Limited (VGSIPL)
Volkswagen AG
MARKET SITUATION
Volkswagen Group is aiming to increase its market share in India to 20 per cent as it plans to expand dealerships in tier 2 and tier 3 cities In the beginning of 2009 they had 14 dealerships in India and in the beginning of 2011 they have 70 dealerships in 57 major cities They have plan to expand in the eastern part of the country. They have dealerships in Bhubaneshwar, Kolkata, Guwahati. look forward for four or five new dealerships. Siliguri, Asansol, Patna are cities with potential Volkswagen AG
COMPETITIVE SITUATION
General Motors, Nissan and Toyota have cut into Volkswagen s market share Volkswagen once held a 50% market share in China, it s now around 20% China and India both serving as key manufacturing locations with major players
Volkswagen AG
CORPORATE OVERVIEW HQ: Germany Europe s #1 automobile manufacturer Annual production: Approx. 5M vehicles Annual sales: 126.88 billion Euro Employees: 400,000 worldwide
Volkswagen AG
SWOT ANALYSIS
Strengths STRONG BRAND IMAGE BETTER FUEL EFFICIENCY ROBUST PRODUCTION CAPABILITES STRONG FOCUS ON R&D OPPORTUNITIES GROWTH POTENTIAL IN INDIA AND CHINA INCREASING DEMAND OF ELECTRIC HYBRID CAR WEAKNESSES EXPENSIVE SPARE PARTS PETROL VERSIONS NOT A SUCCESS BAD AFTER SALES SERVICE RELATIVELY LOW EMPLOYEE PRODUCTIVITY SLUGGISH PERFORMANCE IN FEW GEOGRAPHICAL AREAS THREATS NEW CARS & COMPANIES GLOBAL RECESSION IN 2009 ENVIRONMENTAL PROTECTION REGULATION Volkswagen AG
Volkswagen AG
Development of
each nameplate Complete product range Mostly standardized products with minor adaptations
Volkswagen AG
1940s 1930s Factory opened in Production of first Wolfsburg, Germany Volkswagen Company turned over to German government
Key Milestones
1950s VW begin building foreign plants Launched Beetle in US market Developed Microbus 1990s Built Chinas largest auto plant Integrate Skoda Acquires RollsRoyce and Bugatti Launched New Beetle in US
1960s Sold stock to the German public Purchased Auto Union (AUDI) US Beetle sales took off 2000s Spent 3.1B to modernize factories The final Beetle ended a 70-year run Invested 1.7B in China (Asia/Pacific) Bernd Pischetsrieder joined company Volkswagen AG
1980s Begin car venture in China Purchased SEAT Formed Autolatin in Brazil
POLO (SUPER-MINI)
Price Rs 4,42,000* - Rs 6,82,500* Petrol/Diesel 1.2 litre Polo - 1.6 litre Polo Mileage 13.96 kmpl - 17.2kmpl Engine 1198 cc - 1598 cc Competitors Maruti Swift Maruti Ritz Fiat Punto Hyundai i10 Hyundai i20
Spacious, Value , High engine performance High Maintenance
Volkswagen AG
Volkswagen AG
VENTO(PEOPLES CAR)
Price Rs 7,02,883* - Rs 9,28,631* Petrol/Diesel 1.6 L Mileage 13.5 kmpl Petrol - 16 kmpl diesel Engine 1598 cc Competitors Honda City Maruti Swift Desire Maruti SX4 Hyundai Verna Fiat Linea
Volkswagen AG
VOLKSWAGEN SALES
September 2010 Polo Vento Jetta Passat Beetle Touareg Phaeton 2891 1364 254 107 38 0 10 October 2010 2344 1615 281 59 44 0 0 November 2010 1975 2413 191 0 30 0 3
Volkswagen AG
COMPETITORS SALES
September 2010 Polo Maruti Swift Maruti Ritz Fiat Punto Hyundai I-10 Hyundai I-20 2891 11913 6408 902 October 2010 2344 12948 6928 1300 15103 7642 November 2010 1975 12918 6377 699 14617 7228 Volkswagen AG
14434 7680
Honda City
6164
4316
3003
Maruti SX4
1965
1977
1365
Hyundai Verna
1818
1928
1455
Fiat Linea
728
700
301
Volkswagen AG
SALES TARGET
Volkswagen India in Numbers VW has sold a total of 3,037 units in the country in 2009, of which 58 were Beetles, 25 Touaregs, 2,342 Jettas and 613 Passats. This is a 95 per cent increase in sales since 2008 when they sold 1,566 cars. Volkswagen India sold 2,597 cars in July 2010. Since its launch in February, Volkswagen has sold 1,599 Polos so far. There are already 10 units of the Phaeton (priced @75 lacs) in the Indian market. 50 confirmed orders for the Beetle, with a four-month waiting period. 50 confirmed orders for the Touareg.
Volkswagen AG
B2B
B2C
VOLKSWAGEN TO CUSTOMER
Showroom to customers
Volkswagen AG
Value conscience
Aspirational value
Volkswagen AG
VOLKSWAGEN ADVERTISING
|SO DO WE} CAMPAIGN in which they showed their innovation for cars for all class of people. You value things that never go out of style(BEETLE) So Do We You look out for the ones you care about(VENTO) So Do We You value saving up(NEW POLO) So Do We You inspire us to constantly innovate.
Volkswagen AG
Aim : Create Brand Awareness and to enter into all segments in the coming years Media hype this sort of advertisement would generate online and offline Mass Marketing
So it wasnt just the ad that did the talking but got its readers talking about it too! Volkswagen AG
Web Promotion
Results
During the first 12 months MSN achieved more than 130 million page impressions User figures for the Volkswagen website doubled in just six months Within the first six months, 50,000 new users Volkswagen AG registered on the Mobile Services portal
PERSONAL SELLING
Sales people have many names
16-32
Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing representatives Account Development Representatives
Volkswagen AG
Volkswagen AG
COMPARISON
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PRESENTED BY
AARTI KALE (41) MAYURI KHANNA (37) TEJASWINI INGOLE (48) SANDEEP KAUR (28) DIPESH BORICHA (11)
Volkswagen AG
Volkswagen AG