PT. Garuda Mataram Motor (Indomobil Group) Volkswagen Rejuvenation in Indonesia The re-branding of VolkswagenSyndicate 4 : Rafael, Rieke, Pramadona, Rachmi, Joseph, Yunus
The Issues The re-branding of Volkswagen’s brand faces the challenges of preposition from brand which literally as people’s car brand to luxury car brand The competition between others luxury’s car competitors such as: Toyota, Mercedes Benz, BMW Consumer perceptions associate VW cars with smaller and less prestigious vehicles
Status Quo Analysis Volkswagen (VW) VW is Europe’s biggest automotive business The third largest car manufacturer after Toyota and General Motors VW sells its vehicle in more than 150 countries Has larger share of the passenger car market in South Africa, America and China
Years Descriptions of VW in Indonesia Entered Indonesia through PT. Piola (first promoted VW Beetle and VW1960 Kombi Dakota) There was mismanagement in the company, VW was not fit enough to1970 maintain their success. Soeharto’s government established PT. Garuda Mataram Motor (GMM) to maintain VW in Indonesia Gained incredible popularity, still can’t maintain its accomplishment.1980 Resulting VW to stop importing cars to Indonesia1999 A regulation which allows imports of cars in completely Bulit Up form (CBU). PT. GMM began importing VW passengers car in CBU form. PT. GMM2001 launched Golf, New Beetle, Passat, New Beetle Cabriolet, Golf Plus, New Golf Mk V, The New Polo, Golf GTI, New Touareg.
Premium Car Market in Indoesia Provide not only driving comfort but also prestige The products adapted to suit the local market emission standards, steering wheel position, creating a less expensive version. The sales of premium cars worth over 500 million rupiahs per unit are not declining. Remium cars continue survive in their market
Premium Car Competition in Indonesia European automobiles seem to remain the favourites. They offer superiority of technology and respect to passenger safety Japanese car (Toyota Camry) also considered in the premium car market. In 2007: Big players like Mercedes-Benz and BMW dominates the market with 50% and 30%
Product Concerns After New Golf GTI’s intoduced VW experienced 40% increased in sales People put their names on waiting lists to purchase the car Price Concerns Some people can’t afford to buy a new one because the price jump in the last 20 years VW’s price ranges from 250 million rupiahs to 1,5 billion rupiahs depending on the model and added features Distribution Characteristics About 60% sales targeted in Jabodetabek area Have 10 VW dealerships in the Indonesia
Promotions Characteristic Involved in numerous promotions as the prize for drawings Sponsored events (music concerts, golf tournament, Olympic event) Special driving course people experience the capability of the car Community marketing: VW Water cooled society VW Classic Nu Volks Community Volkswagen Fanzine Internet websites to give informations about products, VW communities, events, etc.
Brand Service Process•Usually known by • VW has 10 dealership •Producing CBU formthe VW loyalists 60s , 60% located in which still importinggeneration. Jabodetabek from Europe•Only some of young • VW develop •Offer highpeople known this dealership and technology, comfortbrand which are young aftersales network in and safety forpeople with high levels big cities (Bandung, passengerof wealth and good Semarang, Surabaya,knowledge of Medan, Banjarmasinautomotive and Makasar)
Segmentation Targeting Positioning•Can be found in • Jabodetabek , province •CBU formJabodetabek, province capital and other big •The product’s beencapital and other big cities altered. Suited withcities •Loyality of the 60’s local market generation •Premium class with •Young people with premium price. For a high ability to buy society that consider •Addressed for prestige community market, •Prioritize in comfort VW community and passengers safety •Fully equipped by high technology features. Just like other prestige cars (Mercedes Benz, BMW)
Product Price Place Promotion•Reliable and powerful ca • Premium class •Put the •Keep itsrs with better quality ma with range of products in promotion styleterials price above 500 Jabodetabek •Avoid mass•The products suited million rupiahs area, province promotion to addwith local market •Need product’s capital and prestige•CBU form diversification, other big cities value/impression•Add some high that can hold •Since thetechnology features just under premium premiumlike others prestige cars class . With range product,•Launched a new variant of price 250-500 reinforced it byfor young people (sporty million rupiahs styling location,version) location with•New variant with lower high populationprice density and high ability to buy