PROJECT REPORT
ON
MARKETING MIX OF AUTOMOBILE SECTOR
With special reference to Skoda
Submitted in the partial fulfilment o...
GUIDE CERTIFICATE
It is certified hereby that the project Titled “Marketing Mix of
Automobile Sector” Has been completed b...
DECLARATION
I hereby declare that this project report, titled “Marketing mix
of automobile sector in Patna District with S...
ACKNOWLEDGMENT
It is really a matter of pleasure for me to get an opportunity to thank
all the Persons who contributed dir...
OBJECTIVE OF THIS STUDY
This study is done in keeping following objectives in view:
 To find out the present status of th...
S.NO. PARTICULARS
PAGE
NO.
1 OVERVIEW OF AUTOMOBILE SECTOR 8
2
AUTOMOBILE INDUSTRY IN INDIA
 Factor that will drive growt...
OVERVIEW OF AUTOMOBILE SECTOR
utomobile Industry is a dynamic industry. The automotive industry is a wide range of
compani...
AUTOMOBILE INDUSTRY IN INDIA
utomobile Industry The automobile industry is one of the key drivers of economic growth of
th...
The Government recognizes the impact of the sector on the nation’s economy, and consequently, the
Automotive Mission Plan ...
the upturn. Evolving models of collaborative innovation and regulatory reforms can give them the
necessary push to advance...
Commercial Vehicles, as an exports hub. This operation will export locally assembled trucks from the
conglomerate’s Mitsub...
COMPANY OVERVIEW
Škoda Auto, more commonly known as Škoda, is an automobile manufacturer based in the Czech
Republic. Škod...
(Škoda Auto India Private Limited)
Škoda Auto India Private Limited has been operating in India since November 2001 as a s...
Skoda Present Technology
ŠKODA cars offer continuous new innovations and technologies that make driving easier, more
comfo...
Year Awards
2006 Best Target Achievement.
2007 Best Marketing performance.
2008 Best Dealer of the year.
2009 Highest Sale...
PRODUCT OVERVIEW
This is the face lifted Skoda Superb sedan that will be showcased at the 2014 New Delhi Auto Expo
next mo...
Mechanically, nothing has changed under the skin. It will continue to be offered with either the 158bhp,
1.8-litre TSI pet...
Chrome cover for headlight washers
Sportive Flair
Rear deck lid spoiler
Polished twin exhaust tailpipes
Interior Chrome Pa...
AFS (Adaptive Front light System) - •
Light Assistant - automatic headlight system with light sensor • •
Retractable headl...
ESC (Electronic Stability Control) - •
Park Distance Control
Parktronic sensors at rear • •
Parktronic sensors at front - ...
Under body protective cover • •
Rough road package • •
More
Acoustic warning signal for overrun speed • •
Fuel supply cut-...
Technical Specifications
Variant
Ambition /
Elegance
Elegance
Ambition /
Elegance
Engine TSI TSI (A) TDI CR (A)
Engine typ...
Braking system
hydraulic dual-diagonal circuit braking system vacuum
assisted with Dual Rate system
Brake – front
disc bra...
Turning circle diameter [m] 10.8
NEW MODEL
1. Octavia
2. Skoda Vision C
Skoda has revealed pictures of the Vision C Concep...
SKODA FUTURE PLAN
Skoda plans to offer a new or revised model every six months on average until 2016 to contribute to
its ...
MARKETING RESEARCH
Marketing research often refers to either primary or secondary research. Secondary research
involves a ...
THE MARKETING ENVIRONMENT
Marketing environment consists of the actors and forces outside marketing that affect marketing
...
THE TECHNOLOGICAL ENVIRONMENT
The fastest growing of information technology helps this product to be at it best. Its desig...
SEGMENTATION
A market segment consists of a group of customers who shares as similar set of wants.
The marketer does not c...
BASED ON THE LENGTH OF THE CAR
BASED ON THE USER SEGMENT
Segmentation of automobile sector is also based on the user of th...
NICHE MARKET
A niche is a more narrowly defined group seeking a distinctive mix of benefits. Marketers usually
identify ni...
MARKETING MIX
A marketing mix is the division of groups to make a particular product by pricing, product, branding,
place ...
PRODUCT MIX
SKODA OCTAVIA – German technology ‘simply clever’
The ŠKODA Octavia has always offered that little bit extra, ...
Rational benefits: Young modern, premium, city companion/ extension of life style.
PRODUCT
Product is anything that can be...
PRODUCT CLASSIFICATIONS
GM STUXX
From the 4 product classifications, convenience, shopping, specialty and unsought, the ST...
BRAND STRATEGY
A study of international brand names was done into groups. International brand naming trends and
strategies...
PRODUCT MIX (Product line decisions)
When it comes to product line decisions, and product mix to be exact; we will find th...
Sales Promotion and advertisement
Sales Promotion meaning
Sales promotion means to increase the quantity of goods or servi...
Advertisement
Advertising is paid form of non-personal communication about an organisation or its product or
services.
Act...
COMMUNICATION
MASSMEDIA SPEAKING PUBLIC
SPEAKING
 TELEVISION 1. SPEAKING 1. PRESS CONFERRENCE
 RADIO
 NEWSPAPER
 MAGAZ...
Radio
Radio is the medium with the widest coverage. Studio has recently shown high levels of exposure to
radio broadcastin...
Workshops and Seminars
Workshops and seminars are held in college and big corporate to make people aware about the
compani...
Personal Selling
Personal selling largely takes place at the Dealers’ End. The way the customer is attended depended
depen...
All three get promoted by Skoda by different kind of advertising because all three have different
target groups. All three...
Exhibitions
Exhibitions are organized to promote a new / existing product/service. Skoda is also on several
exhibitions be...
feature of almost all the Ads is that in every Advertisement, the fact that is the World’s Largest Selling
Car and its pre...
SCORPIO
Brand Promise: 'Luxury of a car. Thrill of an SUV'
This brand positioning addresses the key consumer Insight and t...
PHYSICAL EVIDENCE
Physical Evidence is created by displaying physically the product. A long with that creating an atmosphe...
PROCESS
The various process involved in getting available the product from the manufacturer to the end
consumer are to be ...
SWOT ANALYSIS IN ACTION AT SKODA
Introduction
In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Kleme...
detailed questionnaires. Skoda has been in the top five manufacturers in this survey for the past 13
years.
In Top Gear's ...
check' in 2006 showed that Skoda still had a weak and neutral image in the mid-market range
it occupies, compared to other...
Threats
Threats come from outside of a business. These involve for example, a competitor launching cheaper
products. A car...
 The brand was no longer seen as a poorer version of competitors' cars.
However:
 The brand was still very much within a...
Conclusion
Skoda is a global brand offering a range of products in a highly competitive and fragmented market.
The company...
CONSUMER SATISFACT
Customer satisfaction is a term frequently used in marketing. It is a measure of how products and
servi...
PRODUCT LIFE CYCLE
Product life cycle is a business analysis that attempts to identify a set of common stages in the life
...
RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM
or the customers of new cars, a customer gathers information first from non-...
The interviews with the customers were analyzed and summarized with questionnaire consisting
related issues. Similarly the...
QUESTIONNAIRE FOR THE SURVEY
1. PERSONAL INFORMATION:-
Name _______________________________________
Address ______________...
2. Details Regarding Motor Car:-
a. When did you purchase your motor car?
……………………………………….. Model ……………………………
b. Per day r...
A. Which of the brand did you consider before this purchase:-
Mahindra ( ) Model ………………
Skoda ( ) Model ……………….
Tata Motor...
D. Colour:-
Black ( )
Metallic Grey ( )
White ( )
Silver ( )
Other ( )
E. Payment Mode:-
Cash ( )
Retail Finance ( )
F. Wh...
If Yes: - Category: - …………………………………………….
Model name: - …………………………………………..
Name: - ……………………………………………….....
Contact No: - ……...
BIBILIOGRAPHY
www.skoda-auto.co.in
https://www.google.co.in
http://en.wikipedia.org/wiki/%C5%A0koda_Auto
http://willembloe...
M a r k e t i n g m e a n s c r e a t i n g a
r e l a t i o n b e t w e e n t w o b o d i e s ,
i n t h e s e n s e o f f ...
R k Raushan- Marketing Mix of Automobile sector with special referrence to SKODA Auto
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R k Raushan- Marketing Mix of Automobile sector with special referrence to SKODA Auto

  1. 1. PROJECT REPORT ON MARKETING MIX OF AUTOMOBILE SECTOR With special reference to Skoda Submitted in the partial fulfilment of the requirement For the award of degree of BATCHLOR OF BUSINESS MANAGEMENT To INSTITUTE OF TECHNOLOGY MANAGEMENT AND RESEARCH Affiliated to Magadh University Near Panch Shiv Mandir, Kankarbagh, Patna SUPERVISED BY: SUBMITTED BY:
  2. 2. GUIDE CERTIFICATE It is certified hereby that the project Titled “Marketing Mix of Automobile Sector” Has been completed by: RAKESH KUMAR RAUSHAN BBM Part II from I.T.M.R College (M.U), Patna, 800001 It has been also certified that this project work has not been submitted earlier for Examination by the candidates to the best of my knowledge and belief. (Prof. Rajesh Kumar Gupta)
  3. 3. DECLARATION I hereby declare that this project report, titled “Marketing mix of automobile sector in Patna District with Special Reference to SKODA AUTO” Is the result of my work at SINGH MOTOR CARS, dealer of SKODA India Limited as part of my Summer Internship Programme. To the best of my knowledge and belief, this report is original, and has not been submitted to any educational institution for the award of any degree or diploma. Date: (RAKESH KUMAR RAUSHAN) Place:
  4. 4. ACKNOWLEDGMENT It is really a matter of pleasure for me to get an opportunity to thank all the Persons who contributed directly or indirectly for the successful completion of the project report, “Marketing Mix of Automobile Sector”. First of all I am extremely thankful to my college Institute of Technology Management And Research for providing me with this opportunity and for all its cooperation and contribution. I also express my gratitude to my Project mentor and guide. Prof. Rajesh Kumar Gupta. I am highly thankful to our respected project guide for giving me the encouragement and freedom to conduct my project. I also grateful to all my faculty members for their valuable guidance and suggestions for my entire study. I would also like to thank the SKODA team for extending their valuable time and Cooperation.
  5. 5. OBJECTIVE OF THIS STUDY This study is done in keeping following objectives in view:  To find out the present status of the automobile industries in India.  To study the market research of the automobile industries.  To study the distribution and marketing strategy adopt by automobile industries.  To enhance our analytical skills in the field of practical application of marketing. “The marketer’s watchwords are quality, service and value.” PHILIP KOTLER
  6. 6. S.NO. PARTICULARS PAGE NO. 1 OVERVIEW OF AUTOMOBILE SECTOR 8 2 AUTOMOBILE INDUSTRY IN INDIA  Factor that will drive growth in the sector  Upcoming trends and opportunity  Job opportunities in automobile sector  Leading player and segment in which they operate 9-12 10 10 10 12 3 COMPANY OVERVIEW  An eventful company overview  Skoda auto India private limited  Skoda present technology  Skoda future technology  Award and Achievement 13-16 13 14 15 15 16 4 PRODUCT OVERVIEW  New model  Skoda future plan 17-27 25 26 5 MARKETING RESEARCH 27 6 MARKETING ENVIRONMENT 28-29 7 SEGMENTATION  Target Market  Niche Market 30-32 31 32 8 MARKETING MIX 33 9 PRODUCT MIX  Product  Product Classification  Product Line Decision  Price 34-38 35 36 38 38 10 SALES PROMOTION AND ADVERTISMENT 39-48 11 PHYSICAL EVIDANCE 49 12 PROCESS 50 13 SWOT ANALYSIS IN ACTION AT SKODA 51-56 14 CONCLUSION 57 15 CONSUMER SATISFACTION 58 16 PRODUCT LIFE CYCLE 59 17 RESEARCH METHODOLOGY STATEMENT OF PROBLEM 60-61 18 QUESTIONNAIRE FOR THE SURVEY 62-66 19 BIBILIOGRAPHY 67
  7. 7. OVERVIEW OF AUTOMOBILE SECTOR utomobile Industry is a dynamic industry. The automotive industry is a wide range of companies and organizations involved in the design, development and manufacture, marketing, and selling of motor vehicles. It is one of the world's most important economic sectors by revenue. The automotive industry does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as automobile repair shops and motor fuel filling stations. From the last few years competition has been increased and customer spending for buying commodity or consumer buying pattern has also increased. Many and new modern giants has come and previous leaders obsolete. Thought that came to the maker’s mind was to develop a engine The development of engine was a result of discovering new energy carrying mediums, such as steam in the 1700s, and new fuels, such as gas and gasoline in the 1800s. The first automobile petrol enginewas made byKarl Benzin 1885 inMannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and started the first production in 1888. For many decades, the United States led the world in total automobile production. In 1929 before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons. After World War II, the U.S. produced about 75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. With 19.3 million units manufactured in 2012, China almost doubled the U.S. production, with 10.3 million units, while Japan was in third place with 9.9 million units. In 2013, auto manufacturers are seeing and will continue to see an increase in new car sales, with projected revenue growth of 8.6% for the year. Auto parts supplier growth is highly correlated to demand for new vehicles, as 95% of their sales are derived from OEMs. Consequently, higher demand for new vehicles drives growth for auto parts suppliers. Profit margins are expected to broaden, as sales growth outpaces input costs. This profitability and optimism will likely attract many companies that cut their auto business lines during the recession and exited the sector. However, their re-entry will cause little change to the current industry environment. A
  8. 8. AUTOMOBILE INDUSTRY IN INDIA utomobile Industry The automobile industry is one of the key drivers of economic growth of the nation. Automobile Industry is a dynamic industry. From the last few years competition has been increased and customer spending for buying commodity or consumer buying pattern has also increased. The sector reported a robust growth rate of 26 percent in the period 2010-2012 and employs 787, 7702 people. The automobiles sector is divided into four segments – two-wheelers (mopeds, scooters, motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles, multi-purpose vehicles), commercial vehicles (light and medium-heavy vehicles), and three wheelers (passenger carriers and good carriers). The industry is one of the key drivers of economic growth of the nation. Since the delicensing of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector has come a long way. Today, almost every global auto major has set up facilities in the country. The world standings for the Indian automobile sector, as per the Confederation of Indian Industry, are as follows:  Largest three-wheeler market  Second largest two-wheeler market  Tenth largest passenger car market  Fourth largest tractor market  Fifth largest commercial vehicle market  Fifth largest bus and truck segment The auto sector reported a robust growth rate of 26 percent in the last two years (2010-2012). However, the sector has shown a sluggish growth of 12 percent in 2012. The trend is likely to stay with a 10 percent growth outlined for 2013 citing high ownership costs (fuel costs, cost of registration, excise duty, road tax) and slow rural income growth. Solid but cautious growth is expected over the next few years. However, from a long-term perspective, rising incomes, improved affordability and untapped markets present promising opportunities for automobile manufactures in India. According to Macquaire equities research, sale of passenger vehicles is expected to double in the next four years and growth anticipated is higher than the 16 percent achieved in the past 10 years. Two-wheeler vehicle segment is expected to show slow growth of 10 percent CAGR over the period of 2012-2016, suggests the report. A
  9. 9. The Government recognizes the impact of the sector on the nation’s economy, and consequently, the Automotive Mission Plan 2016 launched by it seeks to grow the industry to a size of US $145bn by 2016 and make it contribute 10 percent to the nation’s GDP. Factors that will drive growth in the sector  Rising incomes among Indian population will lead to increased affordability, increasing domestic demand for vehicles, especially in the small car segment.  Fuel economy and demand for greater fuel efficiency is a major factor that affects consumer purchase decision that will bring leading companies across two-wheeler and four-wheeler segment to focus on delivering performance-oriented products.  Product innovation and market segmentation will channelize growth. Vehicles based on alternative fuels will be an area of interest for both consumers and auto makers.  Focus on establishing India as auto-manufacturing hub is reigning in policy support in form of Government’s technology modernisation fund.  Industry will seek to augment sales by tapping into rural markets, youth, women and luxury segments. Upcoming trends & opportunity India is emerging as a strong automotive R&D hub with foreign players like ŠKODA, Mercedes-Benz Hyundai, Suzuki, BMW, MARCRISE General Motors setting up base in India. This move is further enhanced by Government’s support towards setting up centres for development and innovation. Tata Nano’s successful entry in the Indian market has steamed up the opportunities of growth available in alternative segments like electric cars, vehicles run on natural gas, etc. Job opportunities in automobile sector According to the Confederation of Indian Industry, auto sector currently employs 787, 7702 people, 58 percent of who are in the passenger car segment. However, there is an increasing demand for skilled professionals in the domain of effective service delivery, spares management and support functions. ITIs and Polytechnics provide 530,000 graduates every year, but there is an urgent need for updating courses to keep up with changing trends in technology, manufacturing, and processes. PRESENT AUTOMOBILE SCENARIO Sector outlook Despite the macroeconomic and business challenges confronting India, Inc., high performers across industries are deciphering future trends and opportunities to grow their businesses profitably. Whether they are expanding their footprint across new geographies, product segments and categories; investing in R&D; or embracing digital technologies, these companies are getting ready for
  10. 10. the upturn. Evolving models of collaborative innovation and regulatory reforms can give them the necessary push to advance into the next phase of growth. Automotive Sales could grow but margins to remain under pressure The Society of Indian Automobile Manufacturers (SIAM) expects total sales of all vehicles in the country during FY2014 to grow by 6-8 percent, with contributions from almost all market segments. This growth will be driven primarily by utility-vehicle sales, which will likely increase by 11-13 percent in FY2014.24 However, a slowdown in sales paired with capacity underutilization by automotive companies will keep pressure on margins in 2014. According to the financial solutions services provider Resurgent India Ltd., capacity utilization in the Indian automobile industry has declined by about 50 percent in the passenger-vehicle segment, putting further pressure on auto companies’ margins.25 Electric vehicles to get a push from subsidies To provide a much-needed push to the slowing automobile industry, the Indian government plans to roll out subsidies for electric vehicles (EVs). For instance, the Ministry of Heavy Industries intends to initiate subsidies for such vehicles under the National Electric Mobility Mission Plan by April 2014. The government expects to save US$6.4 billion worth of fuel if the EV market takes off. The ministry aims to get all cabinet approvals before April 1 so that the incentives can start flowing to EV makers as soon as possible.26 Companies taking action to improve quality and efficiency Automobile companies operating in India are taking advantage of the current downturn to improve the quality of their models. For instance, Volvo Car Corporation has signed an agreement with IT company Tech Mahindra, wherein the latter will provide Volvo with services for maintaining and developing a range of applications that can boost efficiency and reduce manufacturing costs.27 Meanwhile, Maruti Suzuki India is working on establishing an integrated R&D center in Rohtak. The test tracks at the center will be longer and more technologically sophisticated than the tracks at Suzuki Motor Corporation’s facility in Japan.28 Automakers to expand presence in other emerging markets Numerous Indian automobile companies are looking to expand their presence in other emerging markets to offset declining sales in India. Tata Motors, for instance, plans to expand its range of passenger-car vehicles in South Africa early in 2014.29 TVS Motor Company intends to set up a two- wheeler assembly line in Uganda and launch two motorcycle models there in the first half of 2014.30 India to be a global production and export hub Multinational automobile companies are actively working to make India their global production and export hub. Take Ford Motor Company, which has decided to make India its compact-car global production base with the founding of its Sanand plant in Gujarat in 2014.31 at the same time, German automobile giant Daimler is developing its Indian commercial-vehicle operation, Daimler India
  11. 11. Commercial Vehicles, as an exports hub. This operation will export locally assembled trucks from the conglomerate’s Mitsubishi Fuso range to 15 markets in Asia and Africa, including Indonesia, Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles.32 Leading Players & Segment In Which They Operate MANUFACTURAR SEGMENTS ASHOK LEYLAND LCVs, M&HCVs, Buses ASIAN MOTOR WORKS M& HCVs ATUL AUTO Three Wheelers BAJAJ AUTO Two & Three Wheelers BMW INDIA Cars & MUVs DAIMLER CHRYSLER Cars EITCHER MOTORS LCVs, M&HCVs, Buses ELECTROTHERM INDIA ELECTRIC Two Wheelers FIAT INDIA Cars FORCE MOTORS Three Wheelers, MUVs & LCVs FORD INDIA Cars & MUVs GENERAL MOTORS INDIA Cars & MUVs HERO MOTORS Two Wheelers HINDUSTAN MOTORS Cars, MUVs & LCVs HONDA Two Wheelers, Cars & MUVs HYUNDAI Cars & MUVs KINETIC MOTOR Two Wheelers MAHINDRA & MAHINDRA Three Wheelers, Cars, MUVs & LCVs MAJESTIC AUTO Three Wheelers MARUTI SUZUKI Cars & MUVs PIAGGIO Three Wheelers, LCVs REVA ELECTRIC CAR CO. Electric Cars ROYAL ENFIELD MOTORS Two Wheelers SCOOTER INDIA Two Wheelers SKODA AUTO INDIA Cars SUZUKI Three Wheelers, Cars SWARAJ MAZDA Ltd. LCVs, M&HCVs, Buses TATA MOTORS Cars, MUVs, LCVs, M&HCVs, Buses TOYOTA KIRLOSKAR Cars, MUVs TVS MOTOR Two Wheelers VOLVO INDIA M&HCVs, Buses YAMHA MOTOR INDIA Two Wheelers
  12. 12. COMPANY OVERVIEW Škoda Auto, more commonly known as Škoda, is an automobile manufacturer based in the Czech Republic. Škoda became a wholly owned subsidiary of the Volkswagen Group in 2000, positioned as the entry brand to the group. Its total global sales reached 939,200 cars in 2012. An eventful company history ŠKODA is one of the most tradition-rich automobile makers in the world. 117 ago, founders Václav Laurin and Václav Klement set up their business in the city Jungbunzlau, Bohemia, present-day Mladá Boleslav. It all began in 1894, when Václav Klement, a bookseller by trade, saw reason to complain about shoddy workmanship with his new bicycle. The fairly rude response of the producer prompted Klement to repair bicycles himself, teaming up with cycle mechanic Václav Laurin, since December 1895. In the first years, Laurin & Klement build and repair bicycles under the Slavia brand name. Four years later they started to build bicycles with an auxiliary engine, the so-called Motocyclette. These motorcycles soon became very popular and won several awards in racing competitions. It was in the year 1905, when the company presented its first automobile, called “Voiturette A”. The success of the first car provided a stable position in the rapidly growing international car market. In 1925, fusion with the Škodaworks Pilsen was accomplished, marking the end of the Laurin & Klement Company. Since then the company lived an eventful history which after the political and economical changes of that times led to the integration into the Volkswagen Group in 1991. Today, ŠKODA is one of the most successful automobile brands, offeringnine model lines and having established a presence in more than 100 countries worldwide.
  13. 13. (Škoda Auto India Private Limited) Škoda Auto India Private Limited has been operating in India since November 2001 as a subsidiary of Škoda Auto a. s. Czech Republic (Volkswagen Group), one of the fastest growing car manufacturers in Europe. It has set up a state-of-the-art manufacturing facility in Shendra near Aurangabad, Maharashtra. The facility is spread across 300,000 sq. mt. Škoda Auto India has 5 models on sale in India – Superb, Laura, Fabia, Yeti and the recently launched Rapid. Škoda Auto India has a network of 106 outlets across the country. The company sold 30,005 units in 2011, which represented an increase of 50% over the preceding year. History Introduced to the market early in 2002, the Octavia was the first domestically built Škoda to be launched in India. Targeted at the Indian premium segment, its handling, fuel efficiency, and low initial price (compared to other products then available in the Indian market) made the Octavia an instant hit with the Indian car user. Its Turbocharged Direct Injection (TDI) diesel engined version, in particular, delivered a high level of fuel efficiency and (for the Indian market) power and torque, resulting in higher level of drive ability when compared to existing products available in the Indian market. Manufacturing facilities Škoda Auto India Private Limited has its manufacturing plant located at Shendra on the outskirts of Aurangabad which has an annual capacity of 40,000 vehicles .This Aurangabad plant is also shared by Audi India to manufacture the Audi A4 and Audi A6 models. It also uses the Volkswagen India Private Limited plant at Chakan, Maharashtra to manufacture the Škoda Fabia and Škoda Rapid. Skoda Plans Fresh Cars Every Six Months in Push for Sales Growth Skoda Auto AS, the Czech division of Volkswagen AG (VOW), plans to offer a new or revised model every six months on average until 2016 to contribute to its parent company’s target of dominating global auto-industry sales. Deliveries in December rose 5.8 percent from a year earlier to 70,000 vehicles, boosted by a 52 percent surge for the Octavia line-up, Mlada Boleslav-based Skoda said today in a statement. That marked the fourth consecutive monthly gain. Full-year sales fell 2 percent to 920,800 cars, hurt by a shrinking regional market and a production switch to new models in the first half. “Our attractive model range, good flow of incoming orders and increasingly bright future on the European automotive markets make us confident for 2014,” Skoda Chief Executive Officer Winfried Vahland said in the statement.
  14. 14. Skoda Present Technology ŠKODA cars offer continuous new innovations and technologies that make driving easier, more comfortable, safer and more economical. Since 1991, all ŠKODA vehicles have been powered by VW engines and feature groundbreaking Volkswagen Group technology throughout. 7-speed DSG (Direct Shift Gearbox), TSI Engines (excellent fuel economy and low emissions), TDI Engines (burn fuel more efficiently & produce more power), MQB (MQB enables cars to be spacious, lighter, safer, more fuel- efficient while producing lowered CO2 emissions) and so on. Green Line Tech. (Skoda Future Technology) The Green Line models represent the perfect choice for drivers who put frugality and environmental friendliness on the first place. With economic engines and whole range of modern space saving technologies, like brake energy recuperation, start-stop system or low rolling resistance tyres represent the way to help both your wallet and environment.
  15. 15. Year Awards 2006 Best Target Achievement. 2007 Best Marketing performance. 2008 Best Dealer of the year. 2009 Highest Sales achievement. 2010 Highest Retail Sales 2011 Driver Power Customer Satisfaction Award 2012 Most Affordable Automobile Got 1st Place On Metropolis Imported suv(Yeti) 2013 Best Car Of The Year 1st (Yeti), 2nd (Superb) 2014 Starting Of This Year Skoda Auto Achieve More Award For Octavia Midsize saloon of the year – Zigwheels Best premium sedan of the Year – Motor Vikatan Midsize sedan of the Year – NDTV Car & Bike Awards Executive sedan of the year – Car India Sedan of the year – Golden Steering Wheel - Auto Bild Saloon of the year – BBC Top Gear
  16. 16. PRODUCT OVERVIEW This is the face lifted Skoda Superb sedan that will be showcased at the 2014 New Delhi Auto Expo next month. Skoda's flagship saloon has received a refresh comprising mainly of revised front and rear styling and a bit more equipment, and we’ve just driven it from Mumbai to the neighbouring hill station of Lonavala, to assess the improvements. First, a look at what’s new on the outside. The Skoda Superb facelift’s front end has been adequately redesigned for you to tell it apart from its predecessor. The most noticeable changes are an all-new ‘butterfly’ grille with the new, two-tone Skoda logo, reshaped head- and fog lamps, and a re-profiled bumper and bonnet. Keeping with the contemporary trend, Skoda has introduced bi-xenon headlights with integrated LED daytime running lights on the face lifted Superb which, on the top Elegance trim, get power washers. Further, the turn indicator is now a C-shaped strip of seven LED segments and looks quite sharp. Move to the rear and the tweaks are a little more significant. You’ll immediately notice the new part- LED tail-lamps that seem to have borrowed cues from the Audi School of design. The rear bumper, spoiler and boot lid have all been tweaked to look more angular and the number plate has now been moved to the boot lid from the bumper. The boot lid also has the revised Skoda badge, and the ‘Superb’ badge, which uses the new company typeface, has now moved from the centre to the bottom right of the lid. While this new rear end is neat and modern looking, it’s no longer as unique and immediately identifiable as before. Another obvious change is the new set of ‘Helix’ alloys. The 10-spoke design looks a bit like the blades of a turbine and adds dynamism to the car’s profile. Step inside, and the changes are limited. The tweaks are pretty much limited to a revised, three- spoke design steering wheel. What’s good though is that now, even in the base Ambition trim, you get the better ‘Bolero’ audio player with a CD changer and Bluetooth telephony.
  17. 17. Mechanically, nothing has changed under the skin. It will continue to be offered with either the 158bhp, 1.8-litre TSI petrol engine or the 140bhp, 2.0-litre TDI diesel engine, but the four-wheel-drive, 3.6-litre V6 petrol version has been discontinued. The TSI motor comes with the option of a six-speed manual gearbox or a seven-speed DSG automatic, while the TDI is available with a six-speed DSG only. As you might expect on a car that has had no mechanical changes made to it, the Skoda Superb facelift drives exactly as the car it replaces. It retains that excellent combination of good body control in corners and unflappable poise at high speed, and the steering offers great feedback too. What’s more, we did feel that the ride was actually a tad plusher than before, which is a welcome improvement. Overall, the face lifted Skoda Superb holds all the merits of the car it replaces and wraps them in a neater, more modern looking package. The restyling touches work well together and help mask the age of a design that was starting to show its age. Buyers will also appreciate that extra bit of kit that has been added to the base Ambition trim. The Skoda Superb has always been a spacious car, especially for the chauffeur driven and you’d still be hard pressed to come across a package that offers a similar blend of luxury, space, comfort and performance at this price point. Prices for the face lifted car are likely to be a bit higher than the outgoing car and will be officially announced in February. As Skoda introduces this face lifted Superb to the Indian market, work on an all-new next generation Superb has already begun at Skoda’s global HQ. The next-gen car will be based on the VW Group’s MQB platform and will share as much as 50 percent of its parts with the upcoming next-gen Volkswagen Pass at, which is also under development. While the new Superb won’t be introduced before 2015, this facelift does a good job of injecting some pizzazz into what is already a very capable luxury saloon in the meantime. Design Wheels Alloy wheels 16inch, Helix Exterior Chrome Package Chrome surround for radiator grille Chrome smile around lower air dam in front bumper Chrome protective side door strips Chrome side window frames Chrome trim on the boot lid
  18. 18. Chrome cover for headlight washers Sportive Flair Rear deck lid spoiler Polished twin exhaust tailpipes Interior Chrome Package Chrome front and rear door sill trims with 'Superb' inscription Chrome frame on air conditioning vents, radio, air conditioning controls, gear-shift console, headlight switch, reading lamps, and information display screen on rear centre console Chrome interior door handles Chrome ring on instrument cluster dials Chrome trim on steering wheel and chrome upper bridge on the instrument cluster Wood Design Décor Interior wood design decor on front upper dashboard and door panels Leather Ivory leather upholstery, Nappa Colour Coding Bumpers, external mirrors, door handles, roof trim strips painted in the colour of the vehicle More Turn indicator in external mirrors Safety Ambition Elegance Illumination Bi-Xenon headlights with dynamic levelling - • Halogen projector headlights with manual levelling • -
  19. 19. AFS (Adaptive Front light System) - • Light Assistant - automatic headlight system with light sensor • • Retractable headlight washers - • Front fog lights • • Corner function with front fog lights • • LED Daytime Running Lights - • LED taillights • • Warning indicators on all doors • • Rear fog light • • Visibility Automatically dimming interior and external rear view mirror • • External mirror defogger with timer • • Rear windscreen defogger with timer • • Braking HHC (Hill Hold Control) - • ABS (Anti-lock Braking System) • • EBD (Electronic Brakeforce Distribution) • • MBA (Mechanical Brake Assistant) • - HBA (Hydraulic Brake Assistant) - • Traction ASR (Anti Slip Regulation) • • EDL (Electronic Differential Lock) - • TCS (Traction Control System) • • Stability
  20. 20. ESC (Electronic Stability Control) - • Park Distance Control Parktronic sensors at rear • • Parktronic sensors at front - • Parktronic speaker at rear • • Parktronic speaker at front - • Parktronic display on central infotainment system • • Airbags Dual front airbags • • Side airbags at front • • Side airbags at rear • • Curtain airbags at front and rear • • Occupant Restraint Seatbelt pre-tensioners for front seats • • Seatbelt pre-tensioners for outer rear seats • • Active front head restraints • • Occupant detection system for front passenger seat with seatbelt warning light • • Driver seatbelt warning light • • Height-adjustable three-point seatbelts at front • • Three three-point seatbelts at rear • • Height adjustable head restraints at front • • Three height adjustable head restraints at rear • • Two Isofix child-seat preparations on outer rear seats • • Undercarriage Protection
  21. 21. Under body protective cover • • Rough road package • • More Acoustic warning signal for overrun speed • • Fuel supply cut-off in a crash • • Pedestrian protection • • Side door protective strips • • Door-open indicator • • Dual-tone warning horn • • Child-proof rear window and door locking • • High level third brake light • • Emergency triangle in the luggage compartment • • Convenience Ambition Elegance Twindoor Twindoor - variable fifth door opening • • Softtouch - automatic closure of boot lid • • Telephone Pre-Installation GSM telephone preparation with Bluetooth • • Telephone controls on multi-function steering wheel • • Bluetooth audio streaming • • Simultaneous operation of Hands Free Profile (HFP) and Advanced Audio Distribution Profile (A2DP) • • Gear-shift Operation Gear-shift controls on steering wheel (for automatic transmission) • •
  22. 22. Technical Specifications Variant Ambition / Elegance Elegance Ambition / Elegance Engine TSI TSI (A) TDI CR (A) Engine type turbocharged petrol engine, in-line, liquid cooling system, direct injection, 16V DOHC, transverse in front turbocharged diesel engine, turbocharger with self-aligning blades, in-line, liquid cooling system, high- pressure direct injection system, 16V DOHC, transverse in front Cylinders 4 4 Displacement [cm]3 1798 1968 Max. power/revs [kW(PS) at rpm] 118(160)/4500–6200 103(140)/4200 Max. torque/revs [Nm at rpm] 250/1500–4500 320/1750–2500 Fuel consumption - rule 115 of CMVR [kmpl] 13.1 13.7 17.2 Transmission Wheel drive front wheel drive Transmission manual 6-speed fully synchronized automatic 7- speed, DSG, with Tiptronic manual gear changing automatic 6- speed, DSG, with Tiptronic manual gear changing Chassis Front axle McPherson suspension with lower triangular links and torsion stabiliser Rear axle multi-element axle, with one longitudinal and three transverse links, with torsion stabiliser
  23. 23. Braking system hydraulic dual-diagonal circuit braking system vacuum assisted with Dual Rate system Brake – front disc brakes with inner cooling, with single/piston floating calliper Brake – rear disc brakes Steering system direct rack and pinion steering with electro mechanic power steering Wheels 7J×16 Tyres 205/55 R16 Outside dimensions Length [mm] 4833 Width [mm] 1817 Height [mm] 1482 Wheel base [mm] 2761 Ground clearance [mm] 159 Inside dimensions Storage capacity [l] 565 Storage capacity with rear seatback folded down [l] 1700 Weights Kerb weight [kg] 1586 1598 1644 Gross weight [kg] 2074 2091 2124 Liquids Tank capacity [l] 60 Performance
  24. 24. Turning circle diameter [m] 10.8 NEW MODEL 1. Octavia 2. Skoda Vision C Skoda has revealed pictures of the Vision C Concept that’s headed for the 2014 Geneva Motor Show. The Czech brand is visibly aiming to move more upmarket with the Vision C concept.
  25. 25. SKODA FUTURE PLAN Skoda plans to offer a new or revised model every six months on average until 2016 to contribute to its parent company Volkswagen Group's target of dominating global auto-industry sales. Full-year sales at the Czech unit fell 2 percent to 920,800 cars, Skoda said today in a statement, as the company was hit by a shrinking European market and a production switch to new models in the first half. Deliveries in December rose 6 percent from a year earlier to 70,000 vehicles, boosted by a 52 percent surge for the Octavia compact lineup, Skoda said. That marked the fourth consecutive monthly gain for the brand. With sales picking up in the second half, Skoda said earlier this week it was on target to sell 1 million cars for the first time in 2014, a step towards its goal to reach annual sales of 1.5 million by 2018. "Our attractive model ranges, good flow of incoming orders and increasingly bright future on the European automotive markets make us confident for 2014," Skoda CEO Winfried Vahland said in the statement. Skoda is pushing into China, which has become the brand's biggest national market, and other developing economies to make up for a drop in industry wide sales in Europe. The company's growth plan is part of Volkswagen's target of overtaking General Motors Co. and Toyota Motor Corp. as the world's biggest carmaker by 2018. New versions of the Octavia, which started entering showrooms in November 2012, helped Skoda's full-year western European sales rise 3 percent. Deliveries increased 3 percent in Germany, the region's biggest auto market, and surged 24 percent in the UK. Sales fell 9 percent in eastern Europe last year, with a 12 percent decline in Russia, and dropped 4 percent in China, Skoda said. The new Octavia was rolled out in Russia in the second half of 2013, and is scheduled to enter Chinese showrooms early this year, the automaker said. The Rapid compact sedan will start sales in Russia in the first six months of 2014, the carmaker added.
  26. 26. MARKETING RESEARCH Marketing research often refers to either primary or secondary research. Secondary research involves a company using information compiled from various qualitative researches (such as focus groups or one-on-one interviews) and quantative research (such as surveys) as well as field tests or observations conducted for or tailored specifically to that product. Primary research, which is also called field research or original research, is useful for finding new information and getting customer’s views on product. Having defined the competitive framework, the next task undertaken was that of analysing the consumer. Consumer segment of B and C category car buyers were analyzed in term of their expectation from a car, their perceptions about cars and their relationship. Proprietary techniques of research, of the advertising agency interface communications, like Mind and Mood, ICON and VIP were used to understand this consumer. The findings were:  Size matters- big size stands for status  Consumers seek latest technology  Imaginary but at affordable prices  The sheer thrill and passion of driving an SUV  Power of a vehicle makes a statement  But along with the other, luxury was a very important parameter  International vehicles define imagery SUVs like Yeti, Pajero, Land Crusier, Bloro, Scorpio, Toyota Fortuner are seen as urban vehicles for the rich and famous consumers aspire to own these vehicle as the imagery of these vehicles has become very desirable. Now SUVs become a part of leader’s choice that’s why politicians used SUVs instead of Ambassador. “Consumers want to consume premium imagery at prices affordable to them” Market research Price analysis Target market analysis Location analysis report compatitive analysis Domestic/ international competitors Swat analysis report Marketing plans Identify trends Marketing research analysis
  27. 27. THE MARKETING ENVIRONMENT Marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers. The marketing environment offers both opportunities and threats. The environment continues to change rapidly. The marketing environment is made up of micro-environment. The Micro-environment consists of the actors are: company suppliers, marketing intermediaries, customer markets, competitors and publics. The Macro-environment consists of the larger society forces that affect the microenvironment. These forces are: demography, economic, natural, technological, political, and cultural forces. The demographic environment The demographic position will be on the United States. Since, the target market is for the middle class, it will provide a boost for the 32% of the total population. This product will produce a superior value to customers to who always value the brand. Also, it will keep the popularity of the product at their trend. In this case, more and more customers will be able to keep this product if it satisfies their condition. Additionally, the middle class group will be loyal to this product brand and as generation goes by this product will be there forever. On the other hand, this product is also designed for students, and working class people. This is due to the fancy and environmental design. Students will be so grateful to have fancy car while the working class people will tend to afford such an affordable environmental car design. NATURAL ENVIRONMENT This product is basically designed to reduce the carbon emission from fuel and help to preserve our environment. It is very important to design such car to help decreases the rate of carbon dioxide from air and provide a better condition to tackle global warming. This car will provide a boost to the environment itself. In this case, more and more people will tend to buy such car to protect the environment by reducing the carbon emission to the air. THE ECONOMICAL ENVIRONMENT The world is facing a shortage of fuel and it has become an economical crisis to every country. This is evidence as the price of fuel is increasing and the probability of the price of a barrel to increase at any day is very high. Therefore, this product will help customer to save money because it consume less fuel. The fuel consumption is one of the best criteria based on the product. On the other hand, customers will be able to satisfy with this kind of product because it is not too expensive and everybody has the privilege to afford one. This product will satisfy the superior value of all different customers since it has a very good design to solve to fuel shortage, less expensive, and can be affordable to anyone.
  28. 28. THE TECHNOLOGICAL ENVIRONMENT The fastest growing of information technology helps this product to be at it best. Its design is basically provided with the help of information technology. Looking at its design, this product benefits a lot from the technological sector. This proves that this product is favourable to the environment. Also this product can be modified or even upgraded to the standard where it will be suitable at any environmental condition. The information technology is very effective in letting this product to be very efficient. In this case, it helps customers to satisfy this kind of product in this technological environment. THE SOCIAL AND CULTURAL ENVIRONMENT It is believed that protecting the environment is a great concern. Therefore, this product is purposely designed to be environmentally friendly. As a result, most people in the United States and elsewhere are willing to offer such kind of product to save the environment. If more and more people keen to buy such kind of product then the environment would be safe at any cost. ECO-TECH
  29. 29. SEGMENTATION A market segment consists of a group of customers who shares as similar set of wants. The marketer does not create the segments; the marketer’s task it to identify the segment and decide which one(s) to target. Segment marketing offers several benefits over mass marketing. The company can create a more fine-tuned product or service offering and price it appropriately for the target segment. The company can more easily select the best distribution and communication channels, and it will also have a clearer picture of its competitors, which are the companies going after the same segment. In the context of automotive sector, we would be classifying it in the following ways:-  BASED ON THE PRICE OF THE CAR  BASED ON THE LENGTH OF THE CAR  BASED ON THE USER SEGMENT BASED ON THE PRICE OF THE CAR On the basis of price of car we can segment the car in following ways:-  Economy Segment The economy segment of car ranges from Rs 1 lacks to Rs 8 lacks. The products in the segment are Skoda Fabia, Maruti 800, Honda Eon, Alto and the newly launched product of TATA motors i.e. NANO.  Mid-Size Segment The mid-size segment of car ranges from 8 lacks to 14 lacks. It includes the products like Skoda Rapid, Hyundai santro, Maruti Zen, Toyota Camry, Volkswagen Vento, Hoda City,Fiat Linea , Tata Indica etc. Luxury car segment The luxury segment of car ranges from 14 lacks to 21 lacks, It includes the products like Skoda Octavia, Nissan Micra, Mahindra Scorpio, Hyundai Xcent, Ford Fiesta, Hyundai i20, Skoda Yeti, Chevrolet Sail, Tata Vista etc.  Super Luxury Segment The super luxury segment of car range above 25 lacks. These segments satisfy the elite class of society. It includes the product like Skoda superb, BMW, Mercedes, Audi, Lamborgani, Porsche, Jaguar, Ferrari etc.
  30. 30. BASED ON THE LENGTH OF THE CAR BASED ON THE USER SEGMENT Segmentation of automobile sector is also based on the user of the product. Like the example of TATA Motors, when it is observed that their product ‘INDICA’ is used extensively by the taxi operators. Skoda new model ‘OCTAVIA’ used by the individual buyers.  Taxi Operators  Individual Buyers  Government/non-government institutions TARGET MARKETS The segment that gives the greatest opportunity to the marker is called target marketing. Skoda Auto SKODA After discontinuing the small car Fabia from the Indian in 2013. Czech carmaker Skoda Auto India is re-considering the entry of the small car, as it prepares a new strategy for the company to make a transition from a niche player to a volume player in India in the mid-term. VOLVO Volvo Motors develops its cars for buyer to whom automobile safety is a major concern. Volvo therefore positions it’s as a safest a customer can buy. HYUNDAI MOTORS Hyundai marketing strategy is differentiated marketing. Its primary consumer target is middle to upper income professional who need true value for their money and comfortable ride in city condition. Its primary consumer target is business corporate, managers. Secondary target consumers are college students who need style and speed.
  31. 31. NICHE MARKET A niche is a more narrowly defined group seeking a distinctive mix of benefits. Marketers usually identify niche by dividing a segment into sub segment. BMW is targeting high class people but it is mainly targeting the young people who earn a lot of money up to the range of 30-40 years and want to have a stylish saloon. Mercedes is also targeting high class people but it is mainly targeting the CEO’s, Chairmen etc of age group 40-60 years. Audi prefers those consumer which have richer tastes – and deeper pockets – will look to the six-cylinder, four-wheel-drive models, which have continent-crushing pace and composure. Porsche 911s sell mainly to those who have the money for the cars: successful men and women with the intelligence to value real performance as opposed to "name recognition" alone. Bugatti prefer mainly belongs to a real estate magnate who is known for his car collection while another has been delivered to a business. A third car is known to be on order. Aston Martin target women consumers With a view to attract more women buyers for luxury car market and also to strengthen bonds with the existing female owners, Aston Martin has recently announced that they would be taking social focus on the new priority lists.Works customization division of Aston Martin held “ladies day” on September 20, 2012. 30 potential female buyers together with their guests were invited to drive Aston’s range of vehicles. From the V8 Vantage to the four doors Rapide, guests got to enjoy the cars alongside specialists from the Aston Martin performance driving team, which showed them the true potential of the cars and also Targeted towards the elite class of affluent customers.
  32. 32. MARKETING MIX A marketing mix is the division of groups to make a particular product by pricing, product, branding, place and quality. Although some day 1 day marketers have added other P’s such as personnel, packaging and physical evidence, the fundamentals of marketing typically identifies the four P’s of the marketing mix as referring to: “Marketing Mix” is set of correlated tools that work together to achieve company’s objective, they are: product, price, promotion, and place. The set of controllable tactical marketing tools, product, price, place and promotion – that the firm blends to produce the response it wants in the target market:  Product -A tangible object or an intangible service that is mass produced or manufactured on a large scale with a scale with a specific volume of units. Intangible products are often service based like the tourism industry and the hotel industry. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system.  Price –The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material coasts, product identity and the customer’s perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.  Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.  Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has for distinct elements – advertising, Public relations, Word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts thought print media and billboards. One of the most notable means of promotion today is the Promotional Products, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars of trade fairs and events. Word of mouth is any apparently informal customers of people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations.
  33. 33. PRODUCT MIX SKODA OCTAVIA – German technology ‘simply clever’ The ŠKODA Octavia has always offered that little bit extra, and with class-leading boot space, innovative safety and comfort systems, and a wide range of ‘Simply Clever‘ solutions the third generation Octavia is no exception. The Octavia is more luxurious than its predecessor and is full of clever technology to provide the most dynamic driving experience yet. On the inside, the Octavia is even more comfortable and spacious, with more headroom, legroom and luggage-room. On the outside, its sharp, precise lines and bold new design will make you look good on the road too. MARUTI SWIFT – European styling, Japanese engineering, dream-like handling The new swift is a generation different from Suzuki design. Styled with a clear sense of muscularity, its one and a half box, aggressive form makes for a look of stability, a sense that it is packed with energy and ready to deliver a dynamic drive. You get lower road noise and a greater feeling of stability as you sail over our roads with feather touch ease. HONDA CITY – Classic style sedan by Honda, Japanese technology Honda has unveiled the next-generation City in India. World premiered here, the City for the first time will get a diesel engine too, the same unit from the Honda Amaze while the petrol mill will carry forward to the new City. The design is an evolution over the outgoing model but looks more premium. The car hasn't grown much in size but the increased wheelbase on the new Honda City promises more space on the inside. MAHINDRA SCORPIO Rational benefits: world class vehicles, good looks, car like comfort, great value Emotional benefits: Ownership experience of thrill, excitement and power
  34. 34. Rational benefits: Young modern, premium, city companion/ extension of life style. PRODUCT Product is anything that can be offered to a market of attention, acquisition, use or consumption that might satisfy a want or need. Product includes more than just tangible goods. Broadly defined, products include physical objects, services, events, persons, places, organizations, ideas or mixes of these entities. Services are a form of product that consists of activities, benefits or satisfaction offered for sale that is essentially intangible and do not result in the ownership of anything. Example: banking, hotel and airline. Products, services and experiences: Today, companies are creating and managing customer experiences with their products. Labels of products and services: Product planners need to think on three levels: A. Core Benefit: This addresses the question “What that buyer is really buying?”. At this level, marketers must define the core: problem-solving benefits or services that consumer seeks. Core product is problem solving services or benefits that consumers purchase the product for, and by applying this concept to RAPID you can state that the core product is speed, transportation and, freedom to go anywhere, easy travelling, and convenience. B. Actual Product: At this level, the core benefits must be turned into actual products. Product planners need to develop product and services features, design, quality level, brand name and packaging. Actual product meaning the product’s parts, quality, features, design, brand name and other attributes received. Now, if we use these things and combine it with RAPID we can state that the actual product is: RAPID, as the brand name, it matters little about the name, because SKODA is very famous already, people will recognize the brand in an instance, and features such as the fact that the car is fully customized German tech. car, A well-built European car, Better package than the Vento at a lower VFM price, Superb diesel engine; good driveability and 250 Nm of torque, Mature ride & handling setup, Confidence inspiring dynamics, brakes and chassis with ABS system, Easy to drive Automatic transmission. Different modes to suit your style of driving available in five royal colours And of course the quality, the car will be regular SKODA standard, meaning quality will be the same as for any other car made by SKODA, which is high quality. C. Augmented product: Finally at this level, the product planners must bundle the products with services. They must build an augmented product by offering additional consumer services and benefits built around the core and actual product, as well as add value and differentiate the product from its competition. The augmented product for RAPID is after sale services such as free yearly check up, free installation of additional features when you customize your car,and help with car insurance and quick repair services.
  35. 35. PRODUCT CLASSIFICATIONS GM STUXX From the 4 product classifications, convenience, shopping, specialty and unsought, the STUXX is classified as specialty good, since specialty goods are purchased infrequently, and most of the times, buyers make special purchasing effort. By listing some of the characteristics for specialty products we can say that substitutes are not accepted, and that the product is infrequently purchased, and since our STUXX is a GM we know that there are some brand loyalty as well. And if we look at the strategy, we can note distribution and consumers “might” seek our product regardless of location. STAGES IN DEVELOPING PRODUCT AND SERVICES ATTRIBUTES PRODUCT ATTRIBUTES Product attributes consist of several categories, such as product quality, product features, product style and design. For Stuxx product quality is the performance quality, because it can be used a lot and still last for a long time (Durability). And as for product style we know that Stuxx offers many colours and many styles used to attract attention from trendy consumers, and general consumers, the style however does not contribute to better performance. For Product design, the car has a very special chassis that allows many changes, making this a fully customizable car, where you are free to alters many changes, making this a fully customizable car, where you are free to alter appearance, features, construction, such as adding items on the back of the car, lowering the car making it look more stylish like a race car. BRANDING There are several advantages for buyers when talking about branding, first of all product recognition, everyone known GM, then they know Stuxx as well. Quality on Stuxx is same standard as the of GM’s car. There are. But not only buyers have advantages, no, sellers as well. Here are a few examples, basis for product’s quality, provides legal protection, helps to segment the markets.
  36. 36. BRAND STRATEGY A study of international brand names was done into groups. International brand naming trends and strategies were analyzed. New names were generated. These brand names were researched massively first by qualitative techniques and then by quantitative techniques. There name that emerged as most popular, and which was also the most liked name internally at Skoda is Octavia, Mahindra’s SUV popular model was Scorpio, two wheeler famous company was Hero Honda. BRAND ENDORSEMENT STRATEGY Volkswagen faced some important decisions concerning the Skoda brand. Using the Skoda brand name to launch a new product, through the strategy of brand extension, enabled Volkswagen to enter new market segments. The development of the Octavia highlights Volkswagen’s confidence in the Skoda brand. Skoda and Volkswagen decided that the brand needed a broader product base and that Skoda’s movement into another product category would provide instant recognition and market acceptance - simultaneously improving market share. PACKAGING Since product is a car, packaging might not be much importance. Cars usually don’t come in a box. However, since Santro is made for student and older, they have decided to make a big box, free of all charges, if the car is gift for someone’s birthday. Santro is a good choice as a “first” car; parents can easily buy it as a gift for their young teenagers/students. LABELING No labelling, however for curious users, there will be a small brochure about the “ingredients” car parts, so they can see how exactly the car works, and what and where the different parts are from. PRODUCT SUPPORT SERVICES As for product support services, there are three things to know: Assess the value of current services and obtain ideas for new services. SKODA Auto India announces its 24 x 7 SKODA Roadside Assistance program. The program will assist customer and occupants in case of breakdown eventualities no matter where the customer is located i.e. at home, on the roadside, on a highway or in a parking lot; he requires an immediate assistance and this program will meet the need to the utmost satisfaction of the customer’s expectations. Customer would be delighted about those extra services, and might tell friends about them and in the end make more profit for company.
  37. 37. PRODUCT MIX (Product line decisions) When it comes to product line decisions, and product mix to be exact; we will find that there are three types, namely width, length and depth. As for Stuxx, it is definitely width, because Stuxx is a different product line for GM. PRICE Maruti swift After Launching cars for the masses since so many years, India’s largest automobile manufacturer is now targeting the premium segment with their latest model from the Suzuki’s stable. Pricing of this premium hatch back is start from Rs.4 lacks. This price range would practically rip apart Hyundai’s offering in Getz, which is priced at a much higher tag of Rs.4.5 lacks. Both the companies are known for their value based offerings and Maruti with their extensive service network and brand reputation for making reliable cars should get the customer’s over their competition. Tata Indica Tata motors adopted a competitive pricing strategy for Indica in the global market. Prices were fixed on the basis of the norms prevailing in the international market. Also the prices offered by their competitors like Toyota, Ford, Fiat were kept in mind while deciding the prices. Skoda Yeti Skoda Yeti Globally launched in 2009, SKODA Auto India recently launched the Yeti amongst much anticipation. Ever since the first showcase of the Yeti at the Auto Expo early this year, the SKODA Yeti has captured the imagination of auto enthusiasts and customers alike with its inimitable style, great build quality and robust features. The smartly priced SKODA Yeti (21 lacks) will attract India’s young and increasingly auto-enthusiastic consumers by offering additional technology and multi-role capability. Skoda is known as top branded automotive company, Skoda Yeti ranked 5th in world SUV car.
  38. 38. Sales Promotion and advertisement Sales Promotion meaning Sales promotion means to increase the quantity of goods or services which is sold in the market per unit time. The basic objective of sales promotion is to generate extra revenue from the market for the operation of industry and sales and to increase the profit of an organisation. Purpose of sales promotion Sales promotion is the process ofpersuading a potential customerto buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. Some sales promotions are aimed at consumers. Others are targeted at intermediaries and at the firm’s sales force. Purposes of sales promotion are as follows:-  To insure better profit for the owner  to insure better wages and salary to the employees produces those goods and services  To insure smooth and continuous supply of quality goods and services to the consumer  To insure better shares and dividend to the share holders  To support research and development activity for the production of innovative and new quality products for the future generation PROMOTION Event organised by Skoda Puja Gupta at a fashion show 'Spring Summer Surprise' organised by Skoda Auto in Mumbai. It's the month for spring cleaning and experimenting with new styles. Keeping in tune with the fashion spirit of the month, Skoda Autobahn, in association with Standard Chartered Bank, hosted "Spring Summer Surprise", a Spring/Summer fashion show by FCUK.
  39. 39. Advertisement Advertising is paid form of non-personal communication about an organisation or its product or services. Actually advertisement is an art to communicate product in brilliant way. M. B E N Z SHOW TATAMOTORSEXPO FORD NEW MODEL ENDEAVOUR LAUNCH IN EXPO
  40. 40. COMMUNICATION MASSMEDIA SPEAKING PUBLIC SPEAKING  TELEVISION 1. SPEAKING 1. PRESS CONFERRENCE  RADIO  NEWSPAPER  MAGAZINE  INTERNET  HOARDING  BANNER  POSTER TV Commercial by different automotive company Advertisements to promote products are shown on leading television channels. Major music and sports channels promote and they reach out of the youth will be promoted through Star, Zee, Sony, V channel, Discovery etc. media barriers decode understan ding feedback sender encoding
  41. 41. Radio Radio is the medium with the widest coverage. Studio has recently shown high levels of exposure to radio broadcasting both within urban and rural areas, whether or not listeners actually own a set. Many people listen to other people’s radios or hear them in public places. So radio announcements are made and advertisements are announced on the radio about the product features and price, qualities, etc. Print Ads Daily advertisements in leading newspapers and magazines are used to promote the product. Leaflets at the initial stage are distributed at railway stations, malls, college areas and various other locations.
  42. 42. Workshops and Seminars Workshops and seminars are held in college and big corporate to make people aware about the companies past performance and product features, its affordability and usage, vast distribution network. Banners, neon signs Hoardings, banners, neon signs are displayed at clubs, discs, outside theatres, retail battery outlets etc for the customer to read. These booklets provide information about its company; the products offered which suits the customers need accordingly. INTERNET Online advertising, also called Internet advertising, uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. v
  43. 43. Personal Selling Personal selling largely takes place at the Dealers’ End. The way the customer is attended depended depends mainly on the Dealer as he acts as an interface between the company and Consumer. The various cases in which Personal Selling takes place is Individual Sales the Customer goes to the showroom and takes a look at the product. There he is attended to by the Sales Personnel of the Dealership. Sometimes the Senior Sales Executive has to make Sales Presentation to Corporate Buyers. Personal selling is also practiced at Trade Fairs and Auto Shows where in The Company appointed Sales Personnel attend prospective customers and also book their orders. DIRECT MARKETING In the case of Direct Marketing the Company Officials directly contact the Prospective buyers with the information available through various sources. For example in case of Road Shows, Trade, Fairs, Auto shows etc. Sometimes the existing example in case of Road Shows, Fairs, and Auto shows etc. Sometimes the existing customers also provide references buyers such as their friends or relatives. Opel carnivals, Opel Autobahn newsletter, chauffeur training programmes, mobile road – show caravan, car exchange programme for Opel customers, OK 5 – Star used car programme, There is two –year and four –year warranty schemes, 2 year service holiday etc. Such programmes have helped GM in building its brand equity and developing a loyal customer base. Promotion mix Škoda’s Octavia Advertising A company can promote their products or services by different sources. One source is also advertising. Advertising can be done by different kind of media. Such as : Newspapers, Magazines, Direct mail letters, Radio, Television, Billboards, Signs, Posters, Internet. The advertise needs to have a specific target group and should get the attention of the potential customers. In the end you want with advertising the customers attention and create the desire of the customer to buy the product instead they buy the product of the competitor. Skoda developed a line of car the Skoda’s Octavia. There are three different lines of the car. 1. Basic 2. Business 3.Specials
  44. 44. All three get promoted by Skoda by different kind of advertising because all three have different target groups. All three get promoted on the website of Skoda. You can see of the website that they give the features of all the cars. Only if Skoda is promoting the business line they put it in a magazine which especially business people read. The basic line of Skoda promotes it on television because everybody is watching television and not only business man. So with television their target group is wider. In one of the television commercial of Skoda you can see some of the unique selling points. Like speed, design, where you can buy it. In the commercial you also see a beautiful landscape with this they also try to link that the car is better for the environment than other cars. Publicity and public relations Publicity is an activity which happens in the media. When I say media you can think about television, newspaper, magazines, reviews, radio, etc. Companies can make use of this media only there is also a bad side of it. If journalists write something about Skoda can this work in two ways. A positive way and negative way. If it is in a negative way can this lead to lose for Skoda? The other way is rather positive because they do not need to pay for the publicity and it is positive as well which will result into profit for Skoda. Skoda had a time that they had bad publicity because in the newspapers they said the car was rusty, bad for the environment, and that the cars were having bad quality. Now is Skoda take over by Volkswagen en they erased the bad image which Skoda had. The Skoda Octavia line even could compete with the best Western cars. Sponsorship Sponsorship can also work into two ways. If a football team is doing good, and they are sponsored by Skoda. They automatically think that Skoda is agood brand as well. It also could be the other way around that the football team is not doing well, than the people think the cars are also not so good. Skoda is sponsoring all ready for years the IIHF World Championship (ice hockey) and the Tour the France as you can see in the picture below. Sales promotions Examples of sales promotions can be that you can get discount on product/service. Skoda is also doing sales promotion by giving discount until a certain date is finished. If you look at the website as well you can see that you can see the cars in 3D. By this the customers gets a good view of the car. You also can on some parts of the car to get information about those parts. You also can pay the car off in 35 months instead of paying the whole amount at once.
  45. 45. Exhibitions Exhibitions are organized to promote a new / existing product/service. Skoda is also on several exhibitions because they want to promote their cars and generate profit and brand awareness in the end. The customers can experience the car with their own eyes and see the car from inside. They also promote their cars to do test drives with their cars on the exhibitions. Direct marketing Skoda is using direct marketing in the way that they send e-mail. Sometimes they do this on random people. A big disadvantage of this that they the people probably not all fit in the target group. They need to be all above 18 for example, if you send e-mail to people who are under 18 years old. It doesn’t have a lot of effect because they cannot buy a car. Which is much better that people can register their name and their e-mail address that they would like to receive advertisings and for example the week letter about new facts and new cars. Corporate image Companies are mostly trying to create an image so that their products/services sell automatically. Skoda was having a bad image, now it is taking by Volkswagen their cars can compete with the best western cars. They do exist all ready for more than over 100 years. This is something they promote on their website. That people automatically link this that it has to be good quality cars because why else do they exist for so long. They also want the image that their cars are environmental friendly. They are even experimenting with new kind of fuel (electricity for example) They try to promote these environmental cars because nowadays people think moreover the environment and are more sensitive to buy a car which is better for the environment. Skoda wants to have the image of a brand that has one of the best experiences in the car business. Skoda wants their customers to know that they have almost 100 years of experience with cars. Also Skoda wants to have the image of environment friendly. ‘Green’ cars are the future. ‘We invest in experimentalpropulsiontechnology andalternativefuels.’ A term they like to use to let customers know that the car the buy thinks environment friendly. The image Skoda Octavia wants to have, is that they are driving economical friendly. Promotion mix TOYOTA COROLLA The Promotion for Toyota Corolla consists of a blend of activities making its Promotion used for any other product. Some of the major elements of Promotion Mix of Toyota Corolla are listed as under: Advertising It uses many different techniques of Advertisement as a part of its Advertising Strategy. Most of the Print Ads of Toyota Corolla are individually targeted at one of these factors such as Comfort, Performance, Styling Power, Leg Rom, Design, and Driving Pleasure. One most common
  46. 46. feature of almost all the Ads is that in every Advertisement, the fact that is the World’s Largest Selling Car and its presence across 160 countries is present. This is done too because the company wants to differentiate the product in terms of its Reliability that it is an entrusted brand of 30 Million people across the globe. The fact that it is present in 160 countries proves that is a Global Car. There are 3 TV Commercials of this Car in India. The Commercials show that this Car is targeted mainly at the Indian youth Executive. It has been positioned as a little sportier which is the main reason that is for young people and is also like by them too. The Brochures, PostersLeaflets are designed that shows that Corolla is a car for people who demand Performance, Style, Power and Sheer Driving Pleasure. The car being a perfect combination of these factors makes it a huge success across its segment. The Other Sources of Advertisement include Bill Boards, Display Signs, POP, Displays, and Symbol/Logo. The company does the Advertising of Corolla by displaying Bill Boards and Display Signs at various target places where is feels that prospective Bill Board and Display Signs at various target places where it feels that prospective buyer will come across it. At the showroom also, there are huge amount of Point Of Purchase Displays and also Symbols/Logo. The company does the Advertising of Corolla by displaying Bill Boards and Display Sings at various target places where if feels that prospective buyer will come across it At the showroom also, there if feels that prospective buyer will come across it. At the showroom also, there if feels that prospective buyer will come across it. At the showroom also, there are huge amount of Point Of Purchase Displays and also Symbols/Logo which add to it. One of the major Sources of Sales Promotion is Trade Fairs like AUTOEXPO, MOTOR SHOW etc. The company used to take part in these types of fairs and used it for its Sales Promotion. But now the trend is shifting because the company thinks that if they want to launch a launch a product on a National Level, then there is no need for such kind of shows as now there are various other powerful sources of media available to them. Moreover the cost spent on these kinds of fairs was not justified. So therefore the company is now keeping away from fairs. In 1999 Toyota last time participant at the RAC rally in Britain. Some other sales promotion technique used by company is the festival season offers it introduces in the market at the time of, Diwali, New Year, Christmas, Navratri etc to boost term sales. Public Relation and Community Building Exercise • Contribution to Tsunami • Organizing Drawing/Painting Competition on ‘Me and my Environment’ for kids from government school. • Toyota Kirloskar Motor wins Best Ornamental Garden award for its landscape • Toyota Kirloskar signs MoU with Bangalore University for promotion of Japanese Language • Toyota observes earth day supporting local schools
  47. 47. SCORPIO Brand Promise: 'Luxury of a car. Thrill of an SUV' This brand positioning addresses the key consumer Insight and the product delivers the promise. The position is also a unique proposition, which will help the brand have a distinct have image in the consumers' mind. 'Baseline -"Nothing Else will do" The baseline captures the essence of the brand, which is superiority and uncompromising attitude. It also summarises the spirit behind the making of the Scorpio. Media strategy  Dramatic and high impact launch  High visibility  Push brand image even by the media vehicle Building impact through multiple -media PR, Mass media, Direct Marketing, Events Public Relations Pre-launched excitement and buzz was created by a full blown PR programme. Media coverage on the IDAM process, the people behind the Scorpio, the obsession, the world class technology etc set the tone for the hyped up launch was massive. It got four cover stories. Mass Media While the mass media targets would be achieved through the right selection of the media mix, the Scorpio media posture was to insure that Scorpio was present on the decided media but ‘With a difference’. Scorpio would use media innovations to create differentiation on the traditional media and do things in a ‘bigger and better’ manner. Customer Relationship Management (CRM) CRM as a tool was used to create positive word-of-mouth, to monitor customer experiences and generate referrals. A series of CRM activities were implemented with regular direct communication, events and customer research. The CRM plan included a welcome pack on filling up Scorpio Club(Top Gear) from, Satisfaction Surveys, Events, Festive offers, Rewards, Programme etc. TATA INDICA ‘More car per car’ is the famous tagline of the product. The Indica’s positioning has remained consistent with the brand’s offering in an increasingly competitive market. The Indica is now synonymous with the word ‘More, A promotion strategy for Indica v2 in the international market is more or less same as that of the Indian market. Media innovation has been a key to success of the Indica.
  48. 48. PHYSICAL EVIDENCE Physical Evidence is created by displaying physically the product. A long with that creating an atmosphere for the customer where as they feel the presence of product. It seems that cars aren’t the only things that get upgrades and facelifts but their dealer networks as well. This is the case of Skoda and the brand’s new dealership that will soon incorporate, in 2015, a fresh, modern and minimalistic design. The new face of Skoda dealership will be more dynamic, with a modernized customer friendly layout, something to fit their stylish vehicles. This decision was made as part of the 2018 Skoda Growth Strategy, that of increasing their sales to at least 1.5 million cars per year. The reorganization will be present worldwide, in all of the 5,300 dealerships, the emphasis being put on modern architecture , new communication areas as well as attractive salesroom design. “We are building our position as a strong international brand with the most comprehensive model campaign in corporate history,” says Werner Eichhorn, Skoda Board Member for Sales and Marketing. “In recent years we have invested heavily in modernizing and expanding our model range. Now our sales partners’ new appearance provides the ideal backdrop for the presentation of our vehicles to the customer,” he went on to say. Thus, it seems that they are keen on proving Skoda’s brand promise - “Simply Clever – clever engineering with a human touch.” The key features of the dealership’s new exterior are:  The green entrance set in front of a glass wall, utilizing daylight  The large communications wall next to the entrance to the dealership  The logo wall with the new ŠKODA logo on the side of the building  A white frame, running along the sides and top of the building façade  Dark-grey cladding  New pylons (with brand logo and dealership name) and flags
  49. 49. PROCESS The various process involved in getting available the product from the manufacturer to the end consumer are to be efficiently performed by the company. The process starts when the customer is contacted by the sales personnel of the dealership or the customer contact the dealership if he is interested to buy a Skoda car. The data regarding the various customers can be had from various sources of data available through different agencies which specialized in providing data. After the call is made, an appointment is fixed. The sales executive prepares for the meet. He collects all the possible information which would be needed for the meeting i.e. data about the customer, details about the car, maximum possible discount structure, finance option, delivery terms, free accessories which will be provided to customer. The sales personnel will find out that what is the present vehicle used by the customer, his present buying power, satisfaction level, seriousness in buying etc. Along with he will also find out exact needs, desired level of satisfaction, lifestyle pattern etc. Sales personnel also ask certain questions through which he comes to known about the various factors he want to know. He asked both open as well as close ended questions. With the help of these questions, he can come to know the various reasons due to which he is buying the car. These can be Performance, Safety, Comfort, Driving pleasure, Appearance etc. DEALING WITH COMPETITION “Poor firms ignore their competitors; average firms copy their competitors; winning firms lead their competitors” General attack strategy Frontal attack: the attacker matches its opponent’s, price and distribution. “Skoda is not a joke any more- Felons spot for the Czech car maker was the public’s favourite” -Campaign “Skoda doubles sales as ad campaign shake off old image -Sunday times
  50. 50. SWOT ANALYSIS IN ACTION AT SKODA Introduction In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and produced their own bicycle. Their business became Skoda in 1925. Skoda went on to manufacture cycles, cars, farm ploughs and airplanes in Eastern Europe. Skoda overcame hard times over the next 65 years. These included war, economic depression and political change. By 1990 the Czech management of Skoda was looking for a strong foreign partner. Volkswagen AG (VAG) was chosen because of its reputation for strength, quality and reliability. It is the largest car manufacturer in Europe providing an average of more than five million cars a year giving it a 12% share of the world car market. Volkswagen AG comprises the Volkswagen, Audi, Skoda, SEAT, Volkswagen Commercial Vehicles, Lamborghini, Bentley and Bugatti brands. Each brand has its own specific character and is independent in the market. Skoda UK sells Skoda cars through its network of independent franchised dealers. To improve its performance in the competitive car market, Skoda UK”s management needed to assess its brand positioning. Brand positioning means establishing a distinctive image for the brand compared to competing brands. Only then could it grow from being a small player. To aid its decision- making, Skoda UK obtained market research data from internal and external strategic audits. This enabled it to take advantage of new opportunities and respond to threats. The audit provided a summary of the business's overall strategic position by using a SWOT analysis. SWOT is an acronym which stands for:  Strengths - the internal elements of the business that contribute to improvement and growth  Weaknesses - the attributes that will hinder a business or make it vulnerable to failure  Opportunities - the external conditions that could enable future growth  Threats - the external factors which could negatively affect the business. This case study focuses on how Skoda UK's management built on all the areas of the strategic audit. The outcome of the SWOT analysis was a strategy for effective competition in the car industry. Strengths To identify its strengths, Skoda UK carried out research. It asked customers directly for their opinions about its cars. It also used reliable independent surveys that tested customers' feelings. For example, the annual JD Power customer satisfaction survey asks owners what they feel about cars they have owned for at least six months. JD Power surveys almost 20,000 car owners using
  51. 51. detailed questionnaires. Skoda has been in the top five manufacturers in this survey for the past 13 years. In Top Gear's 2007 customer satisfaction survey, 56,000 viewers gave their opinions on 152 models and voted Skoda the 'number 1 car maker'. Skoda's Octavia model has also won the 2008 Auto Express Driver Power 'Best Car'. Skoda attributes these results to the business concentrating on owner experience rather than on sales. It has considered 'the human touch' from design through to sale. Skoda knows that 98% of its drivers would recommend Skoda to a friend. This is a clearly identifiable and quantifiable strength. Skoda uses this to guide its future strategic development and marketing of its brand image. Strategic management guides a business so that it can compete and grow in its market. Skoda adopted a strategy focused on building cars that their owners would enjoy. This is different from simply maximising sales of a product. As a result, Skoda's biggest strength was the satisfaction of its customers. This means the brand is associated with a quality product and happy customers. Weaknesses A SWOT analysis identifies areas of weakness inside the business. Skoda UK's analysis showed that in order to grow it needed to address key questions about the brand position. Skoda has only 1.7% market share. This made it a very small player in the market for cars. The main issue it needed to address was: how did Skoda fit into this highly competitive, fragmented market? Perceptions of the brand This weakness was partly due to out-dated perceptions of the brand. These related to Skoda's eastern European origins. In the past the cars had an image of poor vehicle quality, design, assembly and materials. Crucially, this poor perception also affected Skoda owners. For many people, car ownership is all about image. If you are a Skoda driver, what do other people think? From 1999 onwards, under Volkswagen AG ownership, Skoda changed this negative image. Skoda cars were no longer seen as low-budget or low quality. However, a brand 'health
  52. 52. check' in 2006 showed that Skoda still had a weak and neutral image in the mid-market range it occupies, compared to other players in this area, for example, Ford, Peugeot and Renault. This meant that, whilst the brand no longer had a poor image, it did not have a strong appeal either. Change of direction This understanding showed Skoda in which direction it needed to go. It needed to stop being defensive in promotional campaigns. The company had sought to correct old perceptions and demonstrate what Skoda cars were not. It realized it was now time to say what the brand does stand for. The marketing message for the change was simple: Skoda owners were known to be happy and contented with their cars. The car-buying public and the car industry as a whole needed convincing that Skoda cars were greats to own and drive. Opportunities and threats Opportunities Opportunities occur in the external environment of a business. These include for example, gaps in the market for new products or services. In analyzing the external market, Skoda noted that its competitors' marketing approaches focused on the product itself. Many brands place emphasis on the machine and the driving experience:  Audi emphasises the technology through its strap line, 'Vorsprung Durch Technik' ('advantage through technology').  BMW promotes 'the ultimate driving machine'. Skoda UK discovered that its customers loved their cars more than owners of competitor brands, such as Renault or Ford. Differentiation Information from the SWOT analysis helped Skoda to differentiate its product range. Having a complete understanding of the brand's weaknesses allowed it to develop a strategy to strengthen the brand and take advantage of the opportunities in the market. It focused on its existing strengths and provided cars focused on the customer experience. The focus on 'happy Skoda customers' is an opportunity. It enables Skoda to differentiate the Skoda brand to make it stand out from the competition. This is Skoda's unique selling proposition (USP) in the motor industry.
  53. 53. Threats Threats come from outside of a business. These involve for example, a competitor launching cheaper products. A careful analysis of the nature, source and likelihood of these threats is a key part of the SWOT process. The UK car market includes 50 different car makers selling 200 models. Within these there are over 2,000 model derivatives. Skoda UK needed to ensure that its messages were powerful enough for customers to hear within such a crowded and competitive environment. If not, potential buyers would overlook Skoda. This posed the threat of a further loss of market share. Skoda needed a strong product range to compete in the UK and globally. In the UK the Skoda brand is represented by seven different cars. Each one is designed to appeal to different market segments. For example:  The Skoda Fabia is sold as a basic but quality 'city car'  The Skoda Superb offers a more luxurious, 'up-market' appeal  The Skoda Octavia Estate provides a family with a fun drive but also a great big boot. Pricing reflects the competitive nature of Skoda's market. Each model range is priced to appeal to different groups within the mainstream car market. The combination of a clear range with competitive pricing has overcome the threat of the crowded market. Environmental constraints The following example illustrates how Skoda responded to another of its threats, namely, the need to respond to EU legal and environmental regulations. Skoda responded by designing products that are environmentally friendly at every stage of their life cycle. For example:-  Recycling as much as possible. Skoda parts are marked for quick and easy identification when the car is taken apart.  Using the latest, most environmentally-friendly manufacturing technologies and facilities available. For instance, painting areas to protect against corrosion use lead-free, water based colours.  Designing processes to cut fuel consumption and emissions in petrol and diesel engines. These use lighter parts making vehicles as aerodynamic as possible to use less energy.  Using technology to design cars with lower noise levels and improved sound quality. Outcomes and benefits of SWOT analysis Skoda UK's SWOT analysis answered some key questions. It discovered that:  Skoda car owners were happy about owning a Skoda
  54. 54.  The brand was no longer seen as a poorer version of competitors' cars. However:  The brand was still very much within a niche market  A change in public perception was vital for Skoda to compete and increase its market share of the mainstream car market. The challenge was how to build on this and develop the brand so that it was viewed positively. It required a whole new marketing strategy. Unique selling proposition Skoda UK has responded with a new marketing strategy based on the confident slogan, 'the manufacturer of happy drivers'. The campaign's promotional activities support the new brand position. The key messages for the campaign focus on the 'happy' customer experience and appeal at an emotional rather than a practical level. The campaign includes:  The 'Fabia Cake' TV adverts. This showed that the car was 'full of lovely stuff' with the happy music ('Favourite things') in the background.  An improved and redesigned website which is easy and fun to use. This is to appeal to a young audience. It embodies the message 'experience the happiness of Skoda online'. Customers are able to book test drives and order brochures online. The result is that potential customers will feel a Skoda is not only a reliable and sensible car to own, it is also 'lovely' to own. Analyzing the external opportunities and threats allows Skoda UK to pinpoint precisely how it should target its marketing messages. No other market player has 'driver happiness' as its USP. By building on the understanding derived from the SWOT, Skoda UK has given new impetus to its campaign. At the same time, the campaign has addressed the threat of external competition by setting Skoda apart from its rivals.
  55. 55. Conclusion Skoda is a global brand offering a range of products in a highly competitive and fragmented market. The company must respond positively to internal and external issues to avoid losing sales and market share. A SWOT analysis brings order and structure to otherwise random information. The SWOT model helps managers to look internally as well as externally. The information derived from the analysis gives direction to the strategy. It highlights the key internal weaknesses in a business, it focuses on strengths and it alerts managers to opportunities and threats. Skoda was able to identify where it had strengths to compete. The structured review of internal and external factors helped transform Skoda UK's strategic direction. The case study shows how Skoda UK transformed its brand image in the eyes of potential customers and build its competitive edge over rivals. By developing a marketing strategy playing on clearly identified strengths of customer happiness, Skoda was able to overcome weaknesses. It turned its previously defensive position of the brand to a positive customer-focused experience. The various awards Skoda has won demonstrate how its communications are reaching customers. Improved sales show that Skoda UK's new strategy has delivered benefits.
  56. 56. CONSUMER SATISFACT Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
  57. 57. PRODUCT LIFE CYCLE Product life cycle is a business analysis that attempts to identify a set of common stages in the life of commercial products. In other words the 'Product Life cycle' PLC is used to map the lifespan of the product such as the stages through which a product goes during its lifespan. The product life cycle is an important concept in marketing. It includes stages that a product goes through from when it was first thought of until it is eliminated from the industry. Not all products reach this final stage. Some continue to grow and others rise and fall. Stages Development Saturation Introduction Decline Growth Maturity
  58. 58. RESEARCH METHODOLOGY STATEMENT OF THE PROBLEM or the customers of new cars, a customer gathers information first from non-commercial sources closer to him like family, friends, and colleagues. He then gathers information from third party commercial sources like product reviews on TV, magazines, news papers, websites. This strategy has the changed the company’s fortune in India. Therefore, the Statement of the Problem of the SIP study can be stated as follows: To understand the buying motives of customers & their satisfaction level regarding service quality, with particular emphasis on competitors of Hyundai in the EON car market. RESEARCH METHODOLOGY 1. RESEARCH TYPE The research type was Exploratory in nature. Scope of the Study: The study was limited to the geographical area of the city of Howrah in the Indian state of West Bengal. The market segment was restricted to sub-B segment. 2. DATA TYPE A. Secondary Data: For secondary data source we have extensively analyzed publications on automobile industry. B. Primary data: The data collection method used in this study was interaction with different customers, and a structured questionnaire. 3. DATA COLLECTION TOOL: Questionnaire 4. SAMPLE A. Sampling Type: Random Sampling B. Sampling size: 100 prospects. C. Place: Howrah 5. ANALYSIS PROCEDURE: F
  59. 59. The interviews with the customers were analyzed and summarized with questionnaire consisting related issues. Similarly the observations was analyzed and summarized. Suitable statistical tools were used to analyze the data from the sample survey. LIMITATION OF THE STUDY: The study suffered from the following limitations: A. Since Howrah is not a very big car market so it was difficult to collect data about some of the competitors. B. Many pieces of information were unavailable due to the company’s policy of confidentiality of some business practices. The tenure of the project was of two months, so we were unable to do an in depth study of the company and its practices.
  60. 60. QUESTIONNAIRE FOR THE SURVEY 1. PERSONAL INFORMATION:- Name _______________________________________ Address ______________________________________ Contact No._________________________ Age 18-22 years [] 23-27 years [] 28-32 years [] above 32 years [] Occupation: - 1. Govt. Service ( ) 2. Pvt. Service ( ) 3. Self Employee ( ) 4. Any Other ( ) Qualification:- 1. Inter ( ) 2. Graduate ( ) 3. P.G. ( ) 4. Others ( ) Monthly Income:- 1. Below 50000 ( ) 2. RS.50000-100000 ( ) 3. Rs. 100000-150000 ( ) 4. Above 150000 ( ) Vehicle Reg. No: - ………………………………………………
  61. 61. 2. Details Regarding Motor Car:- a. When did you purchase your motor car? ……………………………………….. Model …………………………… b. Per day running (approx) km …………………………………… 3. Purpose of keeping the vehicle? Status symbol ( ) For pleasure ( ) Transportation ( ) Any other ( ) 4. A Study customer preference of cubic capacity vis-à-vis motor car mileage:- a. What is the cubic capacity of engine of your motor car? 1000 cc - 1400 cc ( ) Above 1400 cc ( ) b. What is the mileage of your car per liter on city riding? Below 10 km ( ) 10-15 km ( ) 15-20 km ( ) Above 20 km ( ) 5. Buying Process:-
  62. 62. A. Which of the brand did you consider before this purchase:- Mahindra ( ) Model ……………… Skoda ( ) Model ………………. Tata Motors ( ) Model …………….. Honda ( ) Model ……………. Any other ( ) Model ……………… B. Reason(s) for deciding against it:- Brand image ( ) Resale value ( ) Price ( ) Low maintenance ( ) Fuel consumption ( ) Others ( ) C. Which motor car would you buy if required:- a. Brand: - ……………………….. b. Model: - ………………………..
  63. 63. D. Colour:- Black ( ) Metallic Grey ( ) White ( ) Silver ( ) Other ( ) E. Payment Mode:- Cash ( ) Retail Finance ( ) F. Who influenced you most to purchase this motor car? Family ( ) Dealer ( ) Magazine ( ) T.V. add ( ) Friend ( ) Personal Decision ( ) Mechanic ( ) News paper ( ) Banner ( ) Relative ( ) 6. Would you like to recommend anyone from your circle of influence to buy car of Skoda? YES/NO
  64. 64. If Yes: - Category: - ……………………………………………. Model name: - ………………………………………….. Name: - ………………………………………………..... Contact No: - ……………………………………………. 7. If you have any suggestion for our brand improvement in future? Please share with our company. ………………………………………………………………………………… ………………………………………………………………………………… Thanking you for Co-operation Place: - Signature:- Date:-
  65. 65. BIBILIOGRAPHY www.skoda-auto.co.in https://www.google.co.in http://en.wikipedia.org/wiki/%C5%A0koda_Auto http://willembloem-unit9-ibs-rocmn.blogspot.in/2011/03/promotion-mix-skodas-ctavia.html http://motoroids.com/wp-content/uploads/2013/09/New-Skoda-Octavia-Brochure-5.jpg http://www.autocarindia.com/auto-reviews/skoda-superb-facelift-review-test-drive 369491,0.aspx http://overdrive.in/reviews/2014-skoda-superb-india-first-drive/ http://www.team-bhp.com/forum/technical-stuff/104901-skoda-superb-technical- specifications-feature-list.html http://www.auto-data.net/en/?f=showSubModel&modeli_id=1557 http://www.carwale.com/skoda-cars/superb20092014/elegance18tsiat20092014- specifications-1512.html http://www.zigwheels.com/newcars/Skoda http://en.wikipedia.org/wiki/Automotive_industry_in_India http://businesscasestudies.co.uk/skoda/swot-analysis-in-action/opportunities-and- threats.html https://www.facebook.com http://en.wikipedia.org/wiki/%C5%A0koda_Auto http://www.businessweek.com/stories/2007-09-30/skoda-means-quality-dot-really http://www.theautochannel.com/news/2009/03/31/455194.html
  66. 66. M a r k e t i n g m e a n s c r e a t i n g a r e l a t i o n b e t w e e n t w o b o d i e s , i n t h e s e n s e o f f u l f i l m e n t o f t h e i r n e e d s b y t r a n s f e r o f t i t l e - R. K. RAUSHAN

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