Dashboard 🚗 Introduction to Volkswagen 🚗 Environment 🚗 Place/ Pricing/ Promotion 🚗 Failures 🚗 Take Aways
Introduction Volkswagen 🚗 "Volkswagen” the word means "peoples car.” 🚗 Headquarters in Wolfsburg. 🚗 The Volkswagen Groups models are sold in more than 150 countries
Environment FACTORS DRIVING THIS INDUSTRY 🚗 The population figures 🚗 Rising incomes 🚗 Lifestyle and preferences of people 🚗 Increase in demand 🚗 Demand for greater fuel efficiency 🚗 Product innovation and Market segmentation
Environment 🚗 Government support. 🚗 Technology relating to automobile designs. 🚗 Technology of automobile manufacture. 🚗 State infrastructure such as roads for driving vehicles. 🚗 Auto sector currently employs 7,877,702 people. 🚗 Increasing demand for skilled professionals.
Porters Five forces New Entrance Competitive Suppliers Buyers Rivalry Substitutes
Volkswagen Vento 🚗 Launched in July 2010. 🚗 Vento sales numbers has gone over 50000 cars. 🚗 Packed with best in class features. 🚗 Vento is priced in the range of 7-10 lakh. 🚗 VW has been a tough competition to Honda city and Hyundai Verna, Maruti SX4 and other mid segment cars. 🚗 Won several awards like Saloon car of the year, Automobile of the year , Premium compact sedan of the year
Marketing Mix- Place 🚗 Where do buyers look for your product or service? 🚗 If they look in a store, what kind? 🚗 How can you access the right distribution channels? 🚗 Do you need to use a sales force? Or attend trade fairs?
Supply Chain Suppliers Production Plant Warehousing Dealers Customer
Supply Chain - Production 🚗 Pune, India Inauguration: March 2009 Total workforce: 3915 Production Capacity: 110,000 vehicles p.a. 🚗 Products: Skoda Fabia, Skoda Rapid Volkswagen Polo Volkswagen Vento
Supply Chain-Warehousing North Gurgaon West Mumbai East Kolkata South Bangalore
Supply Chain-Dealers 163 dealership across country
Promotion 🚗 Advertising – very creative in reaching customers through ads. They have spent about 5-7 crores each in the below campaigns. • Talking newspaper • Silver Newspaper • Vibrating newspaper - ‘Do you feel the shiver’. 🚗 Sales Promotion • Free vento through luck draw • VW finance private limited offer financing for their VW, Audi and skoda cars as well. 🚗 Sponsorship • Co-sponsor for IPL 2012 where they displayed the Vento model throughout the series.a
Promotion 🚗 VW auctioned a special VW Vento at the closing ceremony of DLF IPL 2012 signed by captain of IPL teams and the auction proceedings were donated to world wildlife fund (WWF). 🚗 VW has tailored messages like ‘Vento and Polo will bring you back to life’ and VW cars speak for themselves’ that will bring them a mass appeal. 🚗 Social networking medias like Linkedin to promote the product. Currently there are 4400 members in their Recommendation Ads group.
Pricing StrategiesPricing Strategies PRICE High High Medium Medium Low Low High Premium High Value Penetration Q High Premium High Value Penetration U Phaeton Touareg Passat Phaeton Touareg Passat A Medium Medium Over Charging Over Charging Medium Value Medium Value Good Value Good Value L I Yeti Jetta Vento Yeti Jetta Vento T Low Rip Off Low Rip Off False Economy False Economy Economy Economy Y Beetle Beetle Fabia Fabia Polo Polo
Failures of pricing, promotionand product 🚗 Failure of pricing Volkswagen dumps its premium pricing strategy to take on Japanese competitors (26th Aug 2010) 🚗 Failure of promotion TATA promoting the NANO as the next upgrade for a family of four with a two wheeler. Promoting the NANO in the tier 2 cities with bad roads that had little or no inclination to move things along. 🚗 Failure of Product CHEVROLET FORESTER MARUTI VERSA
Take Aways 🚗 India is an important market for Automobile manufacturers. 🚗 Indian automobile market is growing market. 🚗 Easy Financing Options are available.