Skoda UK Market Analysis

Background History * Skoda Auto is the third oldest car manufacturer (among others: Mercedes-Benz, Peugeot…) * The First Skoda car appeared in 1926. It’s an elegant and luxury car * The Skoda 860 in 1929 – the audience are presidents, archdukes and aristocrats * The Skoda Superb of 1930s was a sleek, powerful car

* In the second Word War – Skoda produced military vehicles * After the war Skoda ran out of money to develop new models, began churning out cheap, humble cars for the masses and exported a few to Western Europe. Acquisition by Volkswagen

* VW guaranteed to preserve the independence and self-reliance of the factory, preserve the Skoda brand, this proved to be the deciding factors in accepting the proposal in 1989. * Sales after the acquisition in April 1991: 120,000 were sold in the former Czechoslovakia, 50,000 were exported to 30 countries (10,000 to central Europe, 20,000 to Western Europe, 20,000 to various other countries) * VW increased its investment in Skoda to 60% in 1994, to 70% in 1997, and by 100% in the year 2000. Skoda became based on VW designs and model platform to ensure quality standards.

Target Customer * Mid-class, who are interested in vehicle technical and engineering * Staying in west Europe and expanding UK market share * Enter the Asian market (China and India) with special attention to local perception, expectations and equirements. Price * Don’t change prices * Want to remain affordable and attainable for consumers * Matching consumers pricing points (special attention for new Asian market) Promotion Slogan: New Skoda, New Experience / Free Running TV advertisement * Advertisement will focus on the YOUNG, SMART, pro-SPORTS, ECONOMICAL, PRACTICAL, STYLISH * Based on our product’s quality and price features * AD will play in Sports and fashion channels * Try to reach our target customers efficiently * Invite sports stars as the image spokesperson, he must be young and energetic new star. Use TV and Movie celebrities to play in our adds and use the car as a stylish and convenient vehicle. * The spokesperson should meet our new brand image

Magazine/Website advertising * Put advertising in the famous sports car magazines * Way to attract eyeball, very wide coverage. * The readers of sports car magazines should be our prospective customers based on our positioning. * List specific data to demonstrate our premium quality compare to our price * Premium quality is always the point we want to emphasis * Using the dynamic advertising on the popular car website * Also good way to attract eyeball

Out door advertisement * Skoda advertising in big international airports and highways * Airports and highways are full of our prospective customers, therefore a good place for us to advertise our cars. * Just very simple picture of our car, our spokesperson and our slogan.

Increase Human Touch Points (Extremely important one) * Continue sponsorships to sports game and films * Show our energy and increase exposure to our target customers, who are young and energetic * Passing the keys events. * Skoda actually has very good quality but few people know it. So we try to promote our quality features through this event. A research was conducted and 98% of customers who bought Skodas recommended them to their friends. So in this special event, conducted in all authorized Skoda retailer, we will offer people the possibility to try a Skoda for 24 hours for free. We believe in doing so, we will let more people have access to our cars and have more feel to them and that will change their perception about our brand. * Club Skoda

* We would like to build a club for our clients and prospective clients. Club Skoda is the place where they can share their driving experiences and we will also deliver some lectures (about driving and maintenance skills and know-hows) and organize some outdoor activities (invite our club members to go camping, driving their Skoda and inviting some prospective customers to join us) * We will offer some discount for our club members for the after-sales service, such as the maintenance and repairmen at our 4S store. Good deal with car renting company

* Also a way to promote our cars by trail * Make deals with rental companies. Offer them discounted prices on all models and agree on renewing cars every year. This will help Skoda be even more visible to a larger public. When people rent a car, they are more flexible and open, comparing to when they buy a car. When the car rental company help us recommend a Skoda, many may want to have a try. And they will feel our quality after the trail.