STRATEGY AT VOLKSWAGEN GROUP INDIA

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Contents
Volkswagen The Group Volkswagen Group India Corporate Strategy

Mark 18 Plus Strategy

Business Strategy

Skoda Audi Volkswagen India

Functional Strategy
Brand Equity
Communication, Pricing AND Distribution

Volkswagen Group
Volkswagen Group is a German Automobile

Manufacturing Group.
3rd largest automobile manufacturer Parent Company- Volkswagen AG

Product range extends from low-consumption small

cars to luxury class vehicles and trucks.

Cont..
Group operates 60 production plants around the

world.
Volkswagen AG, is globally represented by 9 brands-

Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen Passenger Cars.

Volkswagen Group India

Volkswagen Group India, the Indian subsidiary is a part

of Volkswagen AG.

It has its headquarters in Pune, Maharashtra (India).

Volkswagen Group is represented by three brands in

India: Volkswagen, Audi and Skoda.

Volkswagen Group is completing 10 years of its India

journey which began with the entry of the Skoda brand in 2001, Audi brand and Volkswagen brand in 2007.

Cont
It currently has 16 models in the Indian market. Volkswagen Group are setting up dealerships spanning

the entire country with Volkswagen, Skoda and Audi having in total around 70 dealerships in 56 cities across 18 states and 2 union territories of India.
Volkswagen Group have together sold around 19,000

vehicles in India in 2009, an increase of 1.4% over 2008 in a year marked by recession in the auto industry.

Cont.
Total sum invested of around INR 3,800 crore (580

million Euros) is the biggest investment of a German company realized in India so far.
The plant, one of the most modern in the

Volkswagen Group has a high level of vertical integration.

Annual capacity of around 110,000 cars.

Corporate Strategy
Global challenges such as climate change and scarce

resources demand sustainable solutions.

Volkswagen Group has been employing various

methods to envisage the future and thereby enhance its competitive position.
Volkswagen Group has charted a clear course with

our 18plus strategy.

MACH 18PLUS STRATEGY

 Focus lies on becoming an economic and

environmental leader in the global automotive industry.

Strive for success in terms of profitability, customer

satisfaction and quality, accessing new markets and increasing production output, and attractiveness as an employer.

The plus element stands for more entrepreneurial

thinking, more synergies and more ecology.

Cont
Volkswagen will harness the strengths of the Group

and its nine brands with an environmentallyoriented model range .

Volkswagen has set its sights on new environmental

benchmarks.

The company has earmarked annual expenditure for

development and investments in new models and technologies in excess of 8 billion over the next few years.

Cont
Boost the sales volume from present 6.5 million to

more than 10 million cars.

The incremental volume aimed for will more or less

come from Brazil, Russia, China and India.

Indias Contribution in 18plus Strategy

Indian car market is the 10th largest car market with

annual sales of around 1.4 million cars.

The market size is expected to increase to 4 million

cars by 2015.
Volkswagen aims to increase its market share from a

meager 1% presently to 10 % in next 5 years.

 VW picked up 19.9 per cent stake in the Suzuki

Motor Corp (SMC) for USD 2.5 billion last year.

Maruti Suzuki India is the crown jewel of the

Japanese car maker.

Volkswagen is open to jointly developing products

with Maruti Suzuki India, as part of its efforts to achieve synergy with Suzuki Motor Corp at the global level.

Case Study
VOLKSWAGEN IN INDIA(CASE STUDY).PDF

VOLKSWAGEN INDIA Volkswagen is the highest volume brand of VW Group.

Volkswagen presents itself in a variety of segments

as a premium manufacturer of high-volume models.

As a first step, the Volkswagen brand launched the

globally successful Passat in 2007.

Cont
To expand its portfolio and cater to the mid segment,

Volkswagen launched one of the brands bestselling models, the Jetta, in India in July 2008.
introduced in December 2009.

Iconic New Beetle and the high-end SUV Touareg were

Also available is the high-end automobile Phaeton. From December 12, 2009 the new Pune plant has started

rolling-out the hatchback version of the Volkswagen Polo.

Cont.
After Polo, Vento is VW's second car targeting the mass

market.

VW positioned at the upper-end of the country's mid-

sized sedan segment.

Volkswagen India has adopted a top-down strategy to

arrive at competitive pricing.

It is directly pitted against market leader Honda City,

Marutis SX4, Ford Fiesta etc.

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.

Ansoff Growth Strategy Matrix

PRODUCTS Current New

New

Market Penetration

Product Development

MARKET S Current

Market Development

Diversification

Functional Strategy
MARKETING STRATEGY OF VW INDIA China is the 2nd largest market for VW Group after Europe.
Volkswagen plans to use its learning in China in India. Aggressive price tags and high-decibel advertisements. Volkswagens strength lies in the mass market. Its name,

after all, means peoples car in German.

Brand Positioning
Emotional Value

Prestige

Rational

Cont
When VW started out in 2007, low brand awareness

was one of the key concerns.

Thus Volkswagen came out with 13 advertisements

in a leading English newspaper.

It told readers all they ever wanted to know about

Volkswagen how the name came about, its product line and so on.

Front Page Full Page

Cont
By the time the campaign ended, Volkswagen had

used 18,000 television spots, 144 insertions in broadsheet dailies, 50 insertions in magazines, 280 out-of-home sites and 23 digital portals.
To improve brand recall, the next campaign showed

all Volkswagen cars: The Beetle, Passat, Jetta and Touareg.

Customer based brand equity

The Volkswagen customer based brand equity is equally

strong on the left and right hand sides.

It is also strong from bottom to top, enjoying the highest

brand awareness of a carmaker as well as high repeat purchase rates and customer loyalty.

To a certain extent Volkswagen has successfully focused

on both the superior product attributes and the imagery associated with owning and driving a Volkswagen.

Communication @ VW
Most of the Volkswagen communication takes place

through print media in magazines and newspapers.

advertisements and point of sales promotion.

This is supported by communication through TV

Now a days a good company has a state of the art web

portal ,Volkswagen websites are highly informative, interactive and a pleasure to watch.

One can get any amount of detailed information

regarding the prices, features, retailers, and support services etc.

PRICING AND DISTRIBUTION

Volkswagen India Private Limited currently has more than 70

dealerships in 56 cities across 18 states and 2 union territories of India.

There are company specified retailers and distributors through

out the world who are in constant touch with the parent and comply implicitly.

Dealers also have round the clock servicing and repair. Volkswagen also has a used car portal where one can choose and

buy his/her appropriate model.

Mr. Lutz Kothe, Head of Marketing said

Volkswagen was the first company in India to use

LinkedIn Recommendation Ads, and the campaign was a success.

We went in with a goal of inspiring 500

recommendations among current and prospective car buyers.

In less than 30 days, over 2,700 Volkswagen fans had

stepped forward to recommend their favorite cars and share these recommendations with their professional networks.

Unique Advertiseg Strategy