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Volkswagen's Marketing Strategy in India
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Volkswagen's Marketing Strategy in India


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Volkswagen (VW) is one of the world’s leading automobile manufacturers and the largest carmaker in Europe
Volkswagen in German language means people’s car

Founded - 28 May 1937 (75 years)
Founder(s) - Ferdinand Porsche
Headquarters - Wolfsburg, Germany
Slogan - Das Auto ("The Car")
Area served - 153 countries
Subsidiaries - Audi, Bugatti, Bentley, Lamborghini, Porsche, SEAT, Skoda, Volkswagen and Scania CV

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  • 1. Introduction - Volkswagen (VW) is one of the world’s leading automobile manufacturers and the largest carmaker in Europe Volkswagen in German language means people’s car Founded - 28 May 1937 (75 years) Founder(s) - Ferdinand Porsche Headquarters - Wolfsburg, Germany Slogan - Das Auto ("The Car") Area served - 153 countries Subsidiaries - Audi, Bugatti, Bentley, Lamborghini, Porsche, SEAT, Skoda, Volkswagen and Scania CV
  • 2. Volkswagen entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India. Volkswagen Group India emphasized on all aspects of marketing mix including product, price, place and promotion. The company offered three brands including Audi(10), Skoda(4) and Volkswagen(7) that together comprised of 21 different models as of May-2013. Volkswagen Group India mainly catered to the luxury segment of the Indian car market. The company had established presence in India through separate distribution channels for each of its brands.
  • 3. 70% of passenger cars are small cars in India. The pricing needs to be within the competition. Need for changing its market strategy for India.  Majority of Indians did not know anything about Volkswagen, not even the pronunciation. Brand awareness was 4% as compared to 70% which competition enjoyed. India is an important market for Automobile manufacturers. Indian automobile market is growing market. Easy Financing Options are available. Expertise in Premium cars Priority to performance Skewed towards compact cars Priority to economy. Challenges for VW in India -
  • 4. Worlds first talking newspaper Volkswagen took advertising to a new level with an innovative audio advertisement in newspaper. On Tuesday September 21, 2010 as readers opened the newspaper a lightsensitive chip attached to the page announced the arrival of “a perfectly engineered car” – the Vento. 25 lakh readers of The Times of India and The Hindu were taken by surprise. It cost VW 5 crore rupees. Social media VW India’s FB fan page has more than 1.5 million likes and Twitter page has more than 11,000 followers. Official YouTube channel for VW 57 million subscribers worldwide Broadcast numerous videos for promotion and brand awareness.
  • 5. Product 21 different models under 3 brands. Produced at Chakan Plant, near Pune. More assembly plans in India – competitive advantage. Price Targeted mainly for the luxury segment in the Indian market. Plan to capture bigger market by launching many new cars priced sub-10 lakh rupees . Place Significant presence – Currently, the company has around 200 dealerships and outlets across major cities. By 2015, it would double the number of dealerships. Well, increasing the proximity of the dealerships for the customers will be surely a successful move.
  • 6. 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. Purpose 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.
  • 7. Any questions? THANK YOU!