Volkswagen group India, the Indian subsidiary is a part of Volkswagen AG. It has its headquarters in Pune, Maharashtra. The VW group is represented by three brands in India : Volkswagen, Audi and Skoda. VW has done a lot to increase its brand name, which gives it the flexibility to sell higher-priced cars.
Budgeted car segment (1-3 lakh) Compact car segment(3-5 lakh) Mid size segment (5-10 lakh) Premium car segment(10-25 lakh) Luxury car segment (25+ lakh)
• Volkswagen offers car models in Luxury segment, Midsize segment, compact car segment in India.• Following are the models which are available 1. Volkswagen Polo- ( compact car segment) 2. Volkswagen Vento,Jetta - ( midsize segment) 3. Other cars such as Beetle, Passat, Touareg, Phaeton come under luxury and premier segment.
• Car users looking for sedan, SUV, hatchback are the market segments which they are focusing.• They Present themselves in various segments as the premier manufacturer of high volume vehicles.• Launched globally successful Passat in 2007.• It was Targeted mainly for the luxury segment in the Indian market.• They launched their bestseller brand Jetta in India in July 2008 to expand their portfolio and cater to the mid segment.
New Beetle and high end SUV Touareg were introduced in December 2009 in the high-end segment. December 2009 they started manufacturing the hatchback version of Polo to target a huge segment of small car buyers. Plan to capture bigger market with Polo. Vento was the next car which was targeting the mass market.
Currently Volkswagen India offers a car in every segment except budget car’s segment. Volkswagen also has plans to target the ultra- low-cost hatchback segment in India. Volkswagen India has hoped to bring the one and only low-cost car Volkswagen Up! priced in the range of Rs 3-4 lakh.
Young executives, businessmen and urban families. Now have started targeting the mass market. Some of the cars like Volkswagen Phaeton is placed in a niche market to target niche audience in India. The company had outlets in all the major cities but is now targeting semi-metro cities like Lucknow, Bhopal and Vijayawada in order to expand its market and availability.
Volkswagen India wanted to target the working professionals . They wanted to build loyalty and aspiration and Influence decision-making. Volkswagen used LinkedIn’s broad reach (100 million members worldwide, 9 million in India) and precise targeting capabilities to connect with professionals who matched the buyer profiles for their different models. They launched a series of Recommendation Ads, and invited the community to recommend their favorite Volkswagen model. 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. Thus , Precise targeting by seniority and geography ensured match with affordability criteria and dealership locations.
It is focusing on a large market, but is targeting the upper-middle class and higher class. Volkswagen has a 18 plus strategy to make it the most eco-friendly automaker in the world. Their focus is to become an economic and environmental leader in the automotive industry. Strive for success in terms of customer satisfaction and exploring new markets.
Audi offers top-quality, technically brilliant cars with an exclusive flair in the relevant luxury segments Around the world Audi has always been number 3 when compared to the more well known German brands of Mercedes and BMW. However, that is changing in India partly because Audi was able to capitalize on the new designs featuring the “LED eyelids” that are now copied by every other car company.
Volkswagen India’s strategy is to present a region-specific approach focused on vehicle safety, fuel efficiency, and environmentally friendly vehicles. The right adaptations for the Indian market will enable Volkswagen to differentiate itself from domestic and international competitors and generate growth. Showcase German engineering coupled with “Made in India” promise.
An example of differentiation by Volkswagen India was introduction of BLUEMOTION Technologies incorporated in their cars. ThinkBlue mindset is combining mobility with sustainability for people who care about the environment but do not want to ignore the economical aspect and the fun of driving. BlueMotion Technologies is a range of innovations and refinements that represent the cleanest, most energy efficient cars in the Volkswagen range. It stands for the interaction of a number of technologies, for example recuperation, the start-stop system, optimized aerodynamics etc. They all work together to make a Volkswagen more economical and reduce emissions. Customers can recognize the most efficient models by the name BlueMotion Technologies.
Volkswagen has positioned itself as the safety leader that also offers lower operating costs and eco-friendly driving. They have also projected themselves as a “premium, innovative brand”. Volkswagen positioned itself as a premium brand in Indian market, but it is now trying to reduce costs and increase profit by removing many of its premium traits and also by building local manufacturing plants and selling smaller cars. Positioned as the biggest automobile giants.
Audi is in the luxury segment. Skoda, however, has taken a more premium positioning compared to the Volkswagen brand, contrary to the groups global practice. Reposition its brands available in the country so as to bring in more alignment with its global image. Competition for Volkswagen India is tough as people have the notion that it sells mainly upper segment cars and think of it as a very pricey brand. Also, Brand recall is very low.
Example of Experiential positioning by Volkswagen : Experiential positioning is the strategic process of understanding consumer desires, creating and delivering a particular form of experience, and communicating the firm’s proposed experience to consumers in a way that differentiates the brand from competitors in the consumer’s mind. The world’s first ‘talking newspaper’, which used light-sensitive chips to speak to readers about Volkswagen as they turned the pages of their morning newspaper. The talking newspaper ad created a sensation in India, and garnered worldwide attention for taking print advertising to a new level. In one year, brand awareness more than quadrupled, increasing from 8 percent to a high of 37 percent.