Case facts Entered Indian market in 2001 with launch of Skoda. Audi and Volkswagen brands launched in 2007. Two group companies – Volkswagen India & VGSIPL. Volkswagen India – Volkswagen branded cars. VGSIPL – Audi and Skoda. Marketing strategy in India – Product, Place, Price, Promotion.
ISSUES Caters mainly to luxury segment. Higher price range – except Skoda Fabia. Lack of brand awareness among Indian consumers. Lack of aggressive marketing in earlier phases. Lesser sales than BMW, Mercedez, etc (SIAM). Lack of consumer knowledge – what Volkswagen stands for. Perceived value v/s Perceived price – value line.
4 Ps OF MARKETING Product 15 different models under 3 brands. Plant at Chakan, near Pune. More assembly plans in India – competitive advantage. Awards last year.
Price Targeted mainly for the luxury segment in the Indian market. Plan to capture bigger market through the VW Polo.
Place Significant presence – number of dealerships and outlets across major cities.
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.
PLANS 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.
AD CAMPAIGNS Highlights the technical qualities it ensures. “… tested by our engineers. So you don’t need to.” Highlights Volkswagen as a composite brand. Cars for different stages of life and career.
SHOULD Continue with its innovative brand awareness exercise – clutter-free. An aspirational brand available at lower costs evokes consumer interests (Polo). Promotional activities should generate more perceived values for brand success. Romp up production facilities for Polo Economies of scale achieved. Since launch received 7,300 confirmed bookings.
Delivered 1,599 units till April. Backlogs of 3-4 months to be tackled effectively. Yet technical superiority should not be compromised.
FUTURE Aggressive plans of mustering 8% market share. Polo going to be a key driver in Indian market. Plans for cheaper car – the UP! Opportunities for SUV – Touareg. Potential product cannibalization of Skoda Fabia. Opportunities generated with global association with Suzuki.
CONCLUSION Relatively newer to the Indian market. Aggressively plans to enhance market share. Volkswagen – people’s car – for all sections of people at different stages of life. German engineering with Indian adaptation.