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Volkswagen Skoda
International Marketing Plan
Henrie&a	An&onen	
Kristyna	Feldova	
Patricia	Garber	
Mar8na	Porubcova	
Nathalie	Weber	
BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	 1
1.  PROFILE	OF	THE	COMPANY	
2.  SITUATION	ANALYSIS	
3.  OPTIONS	
4.  IMPLEMENTATION	
5.  CONCLUSION	
6.  REFERENCES	
7.  APPENDICES
1. Introduction
Situation
3	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen
1. Introduction
Existing Markets
4	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Skoda’s	main	markets:		
▷  Western	Europe	
▷  Central	Europe	
▷  China	
Context
key	success	factors	
	
	
excellent	price	value	ra8o	
unique	knowledge	&	skill	pool	for	
employees	
value	for	money	
8ming	&	speed	
customiza8on	of	cars
1. Introduction
Decision	tree	on	expansion	of	SKODA	abroad:	
Decisions to take
5	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
HOW
Produc8on	
Plant	
Philippines	
WHERE
South	
Africa	
Brazil	
Who
Lower	
income	
Middle	
income	
Upper	
income	
Problem
to	expand	
	
2	key	decision:		
•  what	entry	mode	
&	
•  where
1.  PROFILE	OF	THE	COMPANY	
2.  SITUATION	ANALYSIS	
3.  OPTIONS	
4.  IMPLEMENTATION	
5.  CONCLUSION	
6.  REFERENCES	
7.  APPENDICES
2. Situation Analysis
Target Markets
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2. Situation Analysis
Target Markets – CAGE Analysis
8	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen
2. Situation Analysis
Target Markets – CAGE Analysis
9	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
language	 German	 Portuguese	
11	official	languages	
(Afrikaans,	English,	
Ndebele	etc.)	
Filipino	
household	
size	
2.0	 3.2	 3.9	 4.25	
consumer	
behaviour	
technology	industry,	
internet	shopping,	
price	&	quality	most	
important,compare	
prices.	
automobiles,	brand	
loyal	consumers,	aher	
sales	service,	na8onal	
pride,	demanding	and	
wants	quality	
automobiles,	very	brand	
conscious,	sophis8cated	
goods,	middle	class,	
aher	sales	service	vital,	
well-informed	consumer	
take-away,	does	not	
like	ostenta8ous	
expenditure,	priority	is	
the	family,	are	seen	as	
having	a	bad	taste	
ethnic	
influence	
81%	Germans	
07%	other	EU	
04%	Turks	
47.7%	White	
43.1%	Mul8racial	
07.6%	Black	
80.0%	Black	
08.8%	Coloured	
08.4%	White	
33.8%	Visayan	
27.7%	Tagalog	
09.8%	Ilocano	
religions	
61%	Chris8ans	
05%	Islam	
64.6%,	Roman	Catholic	
tradi8onal	Protestan	
08.0%	no	religion	
06.8%	other	Chris8an	
79.8%	Chris8anity		
01.5%	Islam		
01.2%	Hinduism	
	
80.6%	Roman	Catholic		
05.6%	Islam	
02.7%	Protestants	
Germany	C
2. Situation Analysis
Target Markets – CAGE Analysis
10	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
corrup8on	 81/100	 38/100	 44/100	 35/100	
road	tax	 road	tax	 n.a.	 no	road	tax	 n.a.	
vehicle	
inspec8on	
every	2nd	year	
mandatory	once	a	year	
for	diesel	vehicles	
only	once	when	you	buy	
a	used	car	
n.a.	
emission	
regula8on	
tax	free	un8l	110gms/
km	à	20e	per	10gms/
km	
n.a.	 n.a.	 n.a.	
driving	
license	
age	
18	 18	 18	 17	
Germany	A
2. Situation Analysis
Target Markets – CAGE Analysis
11	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
level	of	
public	
transport	
high	 low	and	too	expensive	 high	 underdeveloped	
distance	to	
produc8on	
plant	
Germany	 Brazil	 South	Africa	 Taiwan	
infra-
structure	
level	index	
6.2	 3.92	 4.12	 3.43	
Germany	G
2. Situation Analysis
Target Markets – CAGE Analysis
12	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
income/
capita	
USD	47.821,9	 USD	11.384,4	 USD	6.482,8	 USD	2.872,5	
economic	
cycle/	GDP	
growth	
1.6%	 0.1%	 1.5%	 6.1%	
amount	of	
cars/	1000	
566,1/1000	 158,1/1000	 107,8/1000	 10,67/1000	
price	of	
fuel	
USD/l	1.38	 USD/l	0.8	 USD/l	0.78	 USD/l	0.78	
unem-
ployment	
rate	
4.3%	 6.8%	 23.5%	 6%	
labour	
costs	
109	 98.7	 143.8	 n.a.	
Germany	E
1.  PROFILE	OF	THE	COMPANY	
2.  SITUATION	ANALYSIS	
3.  OPTIONS	
4.  IMPLEMENTATION	
5.  CONCLUSION	
6.  REFERENCES	
7.  APPENDICES
3. Evaluation of Expansions Alternatives
Evaluating Options: [+] & [-] of each Alternative
14	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
[+]	
•  automobile	industry	growing	
•  VW	plant	in	Brazil	
•  poor	public	transport	net	
•  highest	income	per	capita	=	
strongest	purchase	power	
•  lower	labor	cost	
•  government	has	iden8fied	
the	automo8ve	industry	as	a	
key	growth	sector	
•  VW	produc8on	plant	in	ZA	
•  the	automo8ve	and	
components	industry	is	well	
placed	for	investment	
opportuni8es	
•  strong	economic	growth	
•  significant	growth	of	
automo8ve	industry	
[–]	
•  slow	economic	growth	
•  different	cultural	orienta8on	
(e.g.	task/rela8onship)	
•  rise	of	tax	on	Industrial	
produc8on	from	3	to	7%	
•  high	unemployment	rate	
•  automo8ve	industry	
stagna8on	(number	of	cars	
sold)	
•  strong	corrup8on	
•  too	divers	ethnics	base	
•  low	amount	of	cars	per	
1000	people	
•  no	VW	plant	in	Philippines	
•  unsuitable	spending	habits		
(prefer	spending	money	on	
family	and	people,	not	on	
assets)
3. Evaluation of Expansions Alternatives
Evaluating Options: Decision Matrix
15	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
AUracVveness	&	knowledge	of	foreign	
market		
40%	
Purchasing	power	 5	 3	 2	
Produc8on	plant	 5	 5	 3	
Automo8ve	industry	development	 3	 1	 5	
Cultural	differences	 3	 2	 2	
Compe88on	 4	 4	 3	
CAGE	distances		 20%	
Results	from	CAGE	analysis	 4	 3	 3	
Sociographic	Factors	 15%	
Ethnic	fragmenta8on	 4	 2	 1	
Consumer	behaviour	trends	 3	 3	 2	
PotenVal	risks	&	costs	 25%	
Corrup8on	 2	 3	 2	
Unemployment	rate	 3	 1	 3	
Taxes	 1	 1	 3	
Labor	costs	 4	 2	 1	
Economic	growth	value	 2	 2	 4	
Infrastructure	 3	 3	 1	
Total	 100	 13.60	 10.75	 10.55	
Germany	 %
3. Evaluation of Expansions Alternatives
Decision	tree	on	expansion	of	SKODA	abroad:	
Decisions to take
16	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
HOW
Produc8on	
Plant	
Phillipines	
WHERE
South	
Africa	
Brazil	
Who
Lower	
class	
Middle	
class	
Upper	
class	
Problem
to	expand	
	
2	key	decision:		
•  where	&	
•  who
3. Evaluation of Expansions Alternatives
Evaluating Options: SWOT Analysis of Brazil
17	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Strengths Weakness
Opportunities Threats
•  market	size	
•  poli8cally	&	economically	stable	
•  investment-grade	debt	
•  op8mis8c	growth	projec8ons	in	numerous	
industries	
•  increasing	global	influence	
•  large	bureaucracy	
•  complex	regula8ons	and	tax	code	
•  restric8ve	labour	laws	
•  import	taxes	and	protec8onism	
•  shortage	of	qualified	personnel	for	some	
industries	
•  growing	economic	8es	to	China,	US,	Europe	&	
La8n	America	
•  large	investments	being	made	in	infrastructure	
•  major	oil	discoveries	
•  growing	middle	class	with	increasing	purchasing	
power	
•  prolonged	downturn	in	the	global	economy	
•  fall	in	commodity	prices	
•  weakening	of	the	currency	affec8ng	corporate	
profits	
•  government	inac8on	in	tackling	na8onal	
economic	imbalances
3. Evaluation of Expansions Alternatives
Consumer profile
18	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Evaluating Options: Targeting Group in Brazil
Young	professionals	
Young	families	with	one	or	two	
children	
Age range: 20 to 34
1.  PROFILE	OF	THE	COMPANY	
2.  SITUATION	ANALYSIS	
3.  OPTIONS	
4.  IMPLEMENTATION	
5.  CONCLUSION	
6.  REFERENCES	
7.  APPENDICES
4. Recommendations for Implementations
Place: Brazil
	
	
20	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Degree of Adaption – Standardization of the Marketing Mix
4. Recommendations for Implementations
Place: Brazil, Taubate
	
	
21	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Degree of Adaption – Standardization of the Marketing Mix
4. Recommendations for Implementations
Product
	
22	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Degree of Adaption – Standardization of the Marketing Mix
models:	Skoda	Fabia,	Octavia,	Ye8		
Flexible-fuel	
cars	
Combina8on	of	
diesel	or	petrol	
and	biomass	fuel	 Affordable	
For	middle	
income	
class	
Wide	range	
of	possible	
equipment
4. Recommendations for Implementations
Price	
Car	price	range	according	to	model	and	accessories	(4x4,	fuel	consump8on,	emissions	etc.)	
	
	
	
	
	
23	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Degree of Adaption – Standardization of the Marketing Mix
8	000	–	15	000	$	 16	000	–	32	000	$	 14	000	–	30	000	$
4. Recommendations for Implementations
Promotion
Our	goal:	Posi8on	affordable	cars	as	trendy	&	luxury	in	customers	minds.	
Simply Clever .
24	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Degree of Adaption – Standardization of the Marketing Mix
4. Recommendations for Implementations
Distribution
25	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Degree of Adaption – Standardization of the Marketing Mix
Produc8on	
plant	
Authorised	
VW	dealers	
Final	
customers	
Aher	sales	service	and	maintenance	
-	arranged	by	dealers	
Standardized	model	of	Skoda	showrooms	
-	in	compliance	with	brand	iden8ty
4. Recommendations for Implementations
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Timeline
building	of	extra	assembly	lines	 		 		
employing	more	employees	 		 		
raw	materials	 		
expansion	of	contracts	with	suppliers	 		 		 		
expansion	of	contracts	with	distributors	 		 		 		
find	shops	and	cer8fy	car	service	 		 		 		
redesigning	the	body	of	Skoda	 		 		 		 		
produc8on	of	the	first	cars	 		 		
quality	control	 		 		
crash	tes8ng	 		
marke8ng	 		 		 		
normal	produc8on	 		 		 		
2	months	 4	months	 6	months	 8	months	 10	months	 12	months
4. Recommendations for Implementations
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Financials
4. Recommendations for Implementations
28	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Financials
1.  PROFILE	OF	THE	COMPANY	
2.  SITUATION	ANALYSIS	
3.  OPTIONS	
4.  IMPLEMENTATION	
5.  CONCLUSION	
6.  REFERENCES	
7.  APPENDICES	
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5. Conclusion
30	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
CHOICE : BRAZIL
•  growing	market	
•  growing	middle	class	
•  increasing	global	influence	
•  high	consuming	culture	
•  well	developed	infrastructure	
compared	to	South	Africa	and	
Philippines	
	
Entry Mode &
Implementation :
•  exis8ng	produc8on	plant	
•  3	models	(Fabia,	Octavia,	Ye8)	
•  biomass	fuel	(sugarcane)	
•  affordable	price	
•  celebri8es	&	social	media	
promo8on	
•  plant	à	dealers	à	customers	
FINANCIALS	
•  ROI	:	5	to	10y
1.  PROFILE	OF	THE	COMPANY	
2.  SITUATION	ANALYSIS	
3.  OPTIONS	
4.  IMPLEMENTATION	
5.  CONCLUSION	
5.  REFERENCES	
6.  APPENDICES
6. References
	
32	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
•  h&p://www.volkswagenag.com/content/vwcorp/content/en/the_group/strategy.html	
•  h&p://www.strategy-business.com/ar8cle/05306?gko=e07fe	
•  h&p://www.skoda-auto.com/SiteCollec8onDocuments/experience/120-years/120-years-skoda-mobil.pdf	
•  h&p://skoda-auto.cm/en/company	
•  h&p://www.strategy-business.com/ar8cle/05306?gko=e07fe	
•  h&p://www.skoda.com.au/about-skoda/skoda-history	
•  h&ps://www.imd.org/research/challenges/upload/from_industry_joke_to_serious_compe8tor.pdf	
h&p://automo8velogis8cs.media/intelligence/skoda-simply-clever-logis8cs	
•  h&p://www.strategyand.pwc.com/perspec8ves/2015-auto-trends	
•  h&p://www.skoda-auto.com/en/company/investors/sales-results/	
•  h&ps://www.rolandberger.com/media/pdf/Roland_Berger_Automo8ve_market_perspec8ves_Brazil_2014_2018_20141027.pdf	
•  h&p://www.havasmedia.com/documents_library/insights/hd_automo8vebrazil_genericsept11.pdf	
•  h&p://www.sustainableci8escollec8ve.com/global-site-plans-grid/259241/use-public-transporta8on-brazil-dropped-25-past-15-
years	
•  h&p://www.bloomberg.com/news/ar8cles/2015-12-14/how-bad-is-brazil-car-market-drop-equals-all-of-mexico-s-sales	
•  h&p://www.lightstoneauto.co.za/news/Vehicle_and_home_buying_pa&erns_changing.pdf	
•  h&p://www.cars.co.za/motoring_news/new-vehicle-sales-south-africa-december-2014/28054/#.VsFRt86dJlJ	
•  h&p://www.sta8sta.com/sta8s8cs/388260/adver8sing-expenditures-share-by-medium-south-africa/	
•  h&p://www.campiauto.org	
•  h&ps://www.sta8sta.com/outlook/220/123/social-media-adver8sing/philippines#market-revenue	
•  h&p://www.reportlinker.com/p0487890/Consumer-Lifestyles-in-the-Philippines.html	
•  h&p://www.philippines.hvu.nl/transport1.htm	
•  h&p://www.topgear.com.ph/news/industry-news/if-you-re-interested-volkswagen-ph-now-has-a-leasing-program	
•  h&p://www.apexbrasil.com.br/strategic-priority-sectors	
Sitographie
6. References
	
33	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
•  h&ps://www.volkswagen-media-services.com/documents/10541/2074387/Uitenhage_March+2015_en.pdf	
•  h&p://www.forbes.com/sites/kenrapoza/2015/01/03/brazils-automarket-faces-headwinds-ford-expects-sales-to-flatline/
#169fa35f20e4		
•  h&p://bernersconsul8ng.com/de/assets/files/Berners-Consul8ng_Brochure_BR-EU-implementa8on.pdf	
•  h&p://la8nlink.usmediaconsul8ng.com/2012/08/the-top-10-trends-in-brazilian-marke8ng-and-media/	
Sitographie
1.  PROFILE	OF	THE	COMPANY	
2.  SITUATION	ANALYSIS	
3.  OPTIONS	
4.  IMPLEMENTATION	
5.  CONCLUSION	
5.  REFERENCES	
6.  APPENDICES
2. Situation Analysis
Company	
Existing Markets
35	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
	
General	descrip8on:	Skoda	
•  Produced:	1,06	million	units	in	
2014	
•  Employed	26	000	employees	in	
2015	
•  Revenue	of	12,37	billion	USD	
(2014)		
•  Headquarter	in	Mlada	Boleslav	
(Czech	Republic)	
•  Produc8on	plants	in:	Czech	
Republic,	India,	China,	Russia	
and	Slovakia;	contract	partners	
in	Kazakhstan	&	Ukraine	
	
	
Business	philosophy	and	
mission:	
•  Mission:	To	provide	cars	
that	are	affordable	yet	of	
high	quality	and	reliability		
•  Philosophy:	Responsibility	
toward	the	enviroment	
not	only	by	crea8ng	
greener	cars	but	also	
minimizing	the	pollu8ons	
from	produc8on.	
	
1895	 1925	 1930	 1945	 1960	 1989	1980	 1991	 1994	 2004	 2008	 2011	
Skoda	started	from	bicycles	in	year	1895	
aher	that	they	build	a	motorcycle	and	
because	of	this	success	they	built	the	first	
car	around	1925	in	Czech.	
In	1930,	the	first	assembly	line	in	Czech	
and	gains	14%	market	share	
During	the	german	occupa8on	of	Czech	Skoda	
was	a	part	of	Reichswerke	Hermann	Göring	
In	1945	a	part	of	the	communist	planned	
economy,	lost	contact	with	other	non-
communist	countries.		
Between	1960	–	1980	Skoda	
managed	to	export	to	non-
communist	countries	during	
this	8me	but	the	brand	was	
not	popular	in	west	because	
of	bad	quality.	
	
In	1989	Czech	government	started	to	look	for	someone	to	acquire	
Skoda	and	save	its	reputa8on.	By	1991	a	deal	was	signed	with	
Volkswagen	(at	that	8me	Skoda	had	35%	market	share	in	the	
communis8c	bloc)	
1994	Felicia	model	improves	sales	in	Europe	and	Great	Britain.	The	
following	models	were	also	built	at	VWs	plants	which	helped	their	
way	into	European	Union	market.	
In	2004	the	Company	exercises	an	
aggressive	entry	mode	for	Ukraine,	Serbia	
and	Russia,	by	2008	it	entered	China	by	
licensing	andexpanded	in	2011	to	India.
2. Situation Analysis
Target Markets
36	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
major	compe8tors	
Fiat	
Ford	
Toyota	
Mitsubishi	
Toyota	
KIA	
Hyundai	
compe88ve	
advantage	 •  South	America’s	
largest	consumer	
market	
•  s8ll-bustling	
economy	
•  few	poten8al	
consumers	
•  South	African	
government	has	
provided	substan8al	
support	for	the	
automo8ve	industry	
in	the	past	20	years	
and	is	s8ll	iden8fying	
it	as	a	key	growth	
sector	
•  globally	among	top	
10	countries	having	
the	highest	
inten8on	to	
acquire	a	car	within	
the	following	two	
years
2. Situation Analysis
Competition in Brazil (2014)
It	is	the	right	Moment	to	establish	market	share	in	Brazil	since	it	is	less	complex	than	in	Argen8na.	
Target Markets
37	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Volkswagen	
Group	
Fiat	Chrysler	 Ford	Group	
Renault	
Nissan	
Honda	
Group	
Mercedes	 GM	Group	 BMW	
Toyota	
Group	
Peugeot	
Citroen	
Hyundai	
Group	
Datenreihe1	 16,12%	 18,63%	 14,88%	 9,28%	 8,22%	 7,43%	 7,36%	 5,66%	 4,71%	 4,29%	 3,42%	
0,00%	
2,00%	
4,00%	
6,00%	
8,00%	
10,00%	
12,00%	
14,00%	
16,00%	
18,00%	
20,00%
2. Situation Analysis
Value Chain in the Industry	
Existing Markets
38	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen
2. Situation Analysis
Target Markets – CAGE Analysis
39	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
language	 German	 Portuguese	
11	official	languages	
(Afrikaans,	English,	
Ndebele	etc.)	
Filipino	
household	
size	
2.0	 3.2	 3.9	 4.25	
consumer	
behaviour	
technology	industry,	
internet	shopping,	
price	&	quality	most	
important,compare	
prices.	
automobiles,	brand	
loyal	consumers,	aher	
sales	service,	na8onal	
pride,	demanding	and	
wants	quality	
automobiles,	very	brand	
conscious,	sophis8cated	
goods,	middle	class,	
aher	sales	service	vital,	
well-informed	consumer	
take-away,	does	not	
like	ostenta8ous	
expenditure,	priority	is	
the	family,	are	seen	as	
having	a	bad	taste	
ethnic	
influence	
81%	Germans	
07%	other	EU	
04%	Turks	
47.7%	White	
43.1%	Mul8racial	
07.6%	Black	
80.0%	Black	
08.8%	Coloured	
08.4%	White	
33.8%	Visayan	
27.7%	Tagalog	
09.8%	Ilocano	
religions	
61%	Chris8ans	
05%	Islam	
64.6%,	Roman	Catholic	
tradi8onal	Protestan	
08.0%	no	religion	
06.8%	other	Chris8an	
79.8%	Chris8anity		
01.5%	Islam		
01.2%	Hinduism	
	
80.6%	Roman	Catholic		
05.6%	Islam	
02.7%	Protestants	
Germany	C
2. Situation Analysis
Target Markets – CAGE Analysis
40	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
corrup8on	 81/100	 38/100	 44/100	 35/100	
road	tax	 road	tax	 n.a.	 no	road	tax	 n.a.	
vehicle	
inspec8on	
every	2nd	year	
mandatory	once	a	year	
for	diesel	vehicles	
only	once	when	you	buy	
a	used	car	
n.a.	
emission	
regula8on	
tax	free	un8l	110gms/
km	à	20e	per	10gms/
km	
n.a.	 n.a.	 n.a.	
driving	
license	
age	
18	 18	 18	 17	
Germany	A
2. Situation Analysis
Target Markets – CAGE Analysis
41	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
level	of	
public	
transport	
high	 low	and	too	expensive	 high	 underdeveloped	
distance	to	
produc8on	
plant	
Germany	 Brazil	 South	Africa	 Taiwan	
infra-
structure	
level	index	
6.2	 3.92	 4.12	 3.43	
Germany	G
2. Situation Analysis
Target Markets – CAGE Analysis
42	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
income/
capita	
USD	47.821,9	 USD	11.384,4	 USD	6.482,8	 USD	2.872,5	
economic	
cycle/	GDP	
growth	
1.6%	 0.1%	 1.5%	 6.1%	
amount	of	
cars/	1000	
566,1/1000	 158,1/1000	 107,8/1000	 10,67/1000	
price	of	
fuel	
USD/l	1.38	 USD/l	0.8	 USD/l	0.78	 USD/l	0.78	
unem-
ployment	
rate	
4.3%	 6.8%	 23.5%	 6%	
labour	
costs	
109	 98.7	 143.8	 n.a.	
Germany	E
3. Evaluation of Expansions Alternatives
Evaluating Options: [+] & [-] of each Alternative
43	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
[+]	
•  automobile	industry	growing	
•  VW	plant	in	Brazil	
•  poor	public	transport	net	
•  highest	income	per	capita	=	
strongest	purchase	power	
•  lower	labor	cost	
•  government	has	iden8fied	
the	automo8ve	industry	as	a	
key	growth	sector	
•  VW	produc8on	plant	in	ZA	
•  the	automo8ve	and	
components	industry	is	well	
placed	for	investment	
opportuni8es	
•  strong	economic	growth	
•  significant	growth	of	
automo8ve	industry	
[–]	
•  slow	economic	growth	
•  different	cultural	orienta8on	
(e.g.	task/rela8onship)	
•  rise	of	tax	on	Industrial	
produc8on	from	3	to	7%	
•  high	unemployment	rate	
•  automo8ve	industry	
stagna8on	(number	of	cars	
sold)	
•  strong	corrup8on	
•  too	divers	ethnics	base	
•  low	amount	of	cars	per	
1000	people	
•  no	VW	plant	in	Philippines	
•  unsuitable	spending	habits		
(prefer	spending	money	on	
family	and	people,	not	on	
assets)
3. Evaluation of Expansions Alternatives
Evaluating Options: Decision Matrix
44	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Brazil	 South	Africa	 Philippines	
AUracVveness	&	knowledge	of	foreign	market	–	40%	
Purchasing	power	 5	 3	 2	
Produc8on	plant	 5	 5	 3	
Automo8ve	industry	development	 3	 1	 5	
Cultural	differences	 3	 2	 2	
Compe88on	 4	 4	 3	
CAGE	distances	–	20%	
Results	from	CAGE	analysis	 4	 3	 3	
Sociographic	Factors	–	15%	
Ethnic	fragmenta8on	 4	 2	 1	
Consumer	behaviour	trends	 3	 3	 2	
PotenVal	risks	&	costs	–	25%	
Corrup8on	 2	 3	 2	
Unemployment	rate	 3	 1	 3	
Taxes	 1	 1	 3	
Labor	costs	 4	 2	 1	
Economic	growth	value	 2	 2	 4	
Infrastructure	 3	 3	 1	
Total	 100	 13.60	 10.75	 10.55	
Germany	 %
3. Evaluation of Expansions Alternatives
Evaluating Options: SWOT Analysis of Brazil
45	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
Strengths Weakness
Opportunities Threats
•  market	size	
•  poli8cally	&	economically	stable	
•  investment-grade	debt	
•  op8mis8c	growth	projec8ons	in	numerous	
industries	
•  Increasing	global	influence	
•  large	bureaucracy	
•  complex	regula8ons	and	tax	code	
•  restric8ve	labour	laws	
•  import	taxes	and	protec8onism	
•  shortage	of	qualified	personnel	for	some	
industries	
•  growing	economic	8es	to	China,	US,	Europe	&	
La8n	America	
•  large	investments	being	made	in	infrastructure	
•  major	oil	discoveries	
•  growing	middle	class	with	increasing	purchasing	
power	
•  prolonged	downturn	in	the	global	economy	
•  fall	in	commodity	prices	
•  weakening	of	the	currency	affec8ng	corporate	
profits	
•  government	inac8on	in	tackling	na8onal	
economic	imbalances
4. Recommendations for Implementations
Realisation
Degree of Adaption – Standardization of the Marketing Mix
46	BAA	2-204-08	HIV2016	–	Interna8onal	Marke8ng	–	Group	#1	Volkswagen	
	
	
	
	
	
	
	
	
	
Water	71%	
Sugar	15%	
Fibres	13%	
Non-Sugars	1%	
	
	
	
	
	
	
	
	
	
Density	0,795kg/l	
Energy	content	26,8	MJ/kg	
Purity	99,7%	
Water	content	0,3%	
Milling	of	sugarcane	
stems	&	separa8on	of	
juice	and	bagasse	
FermentaVon	
Conversion	of	sugars	into	
alcohol	–	produc8on	of	
ethanol	at	8-10%	
DisVllaVon	
Separa8on	of	alcohol	and	
s8llage	–	produc8on	of	
hydrated	ethanol	at	95%	
DehydraVon	
Alcohol	rec8fica8on

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International Marketing Plan of Skoda

  • 1. Volkswagen Skoda International Marketing Plan Henrie&a An&onen Kristyna Feldova Patricia Garber Mar8na Porubcova Nathalie Weber BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen 1
  • 2. 1.  PROFILE OF THE COMPANY 2.  SITUATION ANALYSIS 3.  OPTIONS 4.  IMPLEMENTATION 5.  CONCLUSION 6.  REFERENCES 7.  APPENDICES
  • 4. 1. Introduction Existing Markets 4 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Skoda’s main markets: ▷  Western Europe ▷  Central Europe ▷  China Context key success factors excellent price value ra8o unique knowledge & skill pool for employees value for money 8ming & speed customiza8on of cars
  • 5. 1. Introduction Decision tree on expansion of SKODA abroad: Decisions to take 5 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen HOW Produc8on Plant Philippines WHERE South Africa Brazil Who Lower income Middle income Upper income Problem to expand 2 key decision: •  what entry mode & •  where
  • 6. 1.  PROFILE OF THE COMPANY 2.  SITUATION ANALYSIS 3.  OPTIONS 4.  IMPLEMENTATION 5.  CONCLUSION 6.  REFERENCES 7.  APPENDICES
  • 7. 2. Situation Analysis Target Markets 7 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen
  • 8. 2. Situation Analysis Target Markets – CAGE Analysis 8 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen
  • 9. 2. Situation Analysis Target Markets – CAGE Analysis 9 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines language German Portuguese 11 official languages (Afrikaans, English, Ndebele etc.) Filipino household size 2.0 3.2 3.9 4.25 consumer behaviour technology industry, internet shopping, price & quality most important,compare prices. automobiles, brand loyal consumers, aher sales service, na8onal pride, demanding and wants quality automobiles, very brand conscious, sophis8cated goods, middle class, aher sales service vital, well-informed consumer take-away, does not like ostenta8ous expenditure, priority is the family, are seen as having a bad taste ethnic influence 81% Germans 07% other EU 04% Turks 47.7% White 43.1% Mul8racial 07.6% Black 80.0% Black 08.8% Coloured 08.4% White 33.8% Visayan 27.7% Tagalog 09.8% Ilocano religions 61% Chris8ans 05% Islam 64.6%, Roman Catholic tradi8onal Protestan 08.0% no religion 06.8% other Chris8an 79.8% Chris8anity 01.5% Islam 01.2% Hinduism 80.6% Roman Catholic 05.6% Islam 02.7% Protestants Germany C
  • 10. 2. Situation Analysis Target Markets – CAGE Analysis 10 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines corrup8on 81/100 38/100 44/100 35/100 road tax road tax n.a. no road tax n.a. vehicle inspec8on every 2nd year mandatory once a year for diesel vehicles only once when you buy a used car n.a. emission regula8on tax free un8l 110gms/ km à 20e per 10gms/ km n.a. n.a. n.a. driving license age 18 18 18 17 Germany A
  • 11. 2. Situation Analysis Target Markets – CAGE Analysis 11 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines level of public transport high low and too expensive high underdeveloped distance to produc8on plant Germany Brazil South Africa Taiwan infra- structure level index 6.2 3.92 4.12 3.43 Germany G
  • 12. 2. Situation Analysis Target Markets – CAGE Analysis 12 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines income/ capita USD 47.821,9 USD 11.384,4 USD 6.482,8 USD 2.872,5 economic cycle/ GDP growth 1.6% 0.1% 1.5% 6.1% amount of cars/ 1000 566,1/1000 158,1/1000 107,8/1000 10,67/1000 price of fuel USD/l 1.38 USD/l 0.8 USD/l 0.78 USD/l 0.78 unem- ployment rate 4.3% 6.8% 23.5% 6% labour costs 109 98.7 143.8 n.a. Germany E
  • 13. 1.  PROFILE OF THE COMPANY 2.  SITUATION ANALYSIS 3.  OPTIONS 4.  IMPLEMENTATION 5.  CONCLUSION 6.  REFERENCES 7.  APPENDICES
  • 14. 3. Evaluation of Expansions Alternatives Evaluating Options: [+] & [-] of each Alternative 14 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines [+] •  automobile industry growing •  VW plant in Brazil •  poor public transport net •  highest income per capita = strongest purchase power •  lower labor cost •  government has iden8fied the automo8ve industry as a key growth sector •  VW produc8on plant in ZA •  the automo8ve and components industry is well placed for investment opportuni8es •  strong economic growth •  significant growth of automo8ve industry [–] •  slow economic growth •  different cultural orienta8on (e.g. task/rela8onship) •  rise of tax on Industrial produc8on from 3 to 7% •  high unemployment rate •  automo8ve industry stagna8on (number of cars sold) •  strong corrup8on •  too divers ethnics base •  low amount of cars per 1000 people •  no VW plant in Philippines •  unsuitable spending habits (prefer spending money on family and people, not on assets)
  • 15. 3. Evaluation of Expansions Alternatives Evaluating Options: Decision Matrix 15 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines AUracVveness & knowledge of foreign market 40% Purchasing power 5 3 2 Produc8on plant 5 5 3 Automo8ve industry development 3 1 5 Cultural differences 3 2 2 Compe88on 4 4 3 CAGE distances 20% Results from CAGE analysis 4 3 3 Sociographic Factors 15% Ethnic fragmenta8on 4 2 1 Consumer behaviour trends 3 3 2 PotenVal risks & costs 25% Corrup8on 2 3 2 Unemployment rate 3 1 3 Taxes 1 1 3 Labor costs 4 2 1 Economic growth value 2 2 4 Infrastructure 3 3 1 Total 100 13.60 10.75 10.55 Germany %
  • 16. 3. Evaluation of Expansions Alternatives Decision tree on expansion of SKODA abroad: Decisions to take 16 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen HOW Produc8on Plant Phillipines WHERE South Africa Brazil Who Lower class Middle class Upper class Problem to expand 2 key decision: •  where & •  who
  • 17. 3. Evaluation of Expansions Alternatives Evaluating Options: SWOT Analysis of Brazil 17 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Strengths Weakness Opportunities Threats •  market size •  poli8cally & economically stable •  investment-grade debt •  op8mis8c growth projec8ons in numerous industries •  increasing global influence •  large bureaucracy •  complex regula8ons and tax code •  restric8ve labour laws •  import taxes and protec8onism •  shortage of qualified personnel for some industries •  growing economic 8es to China, US, Europe & La8n America •  large investments being made in infrastructure •  major oil discoveries •  growing middle class with increasing purchasing power •  prolonged downturn in the global economy •  fall in commodity prices •  weakening of the currency affec8ng corporate profits •  government inac8on in tackling na8onal economic imbalances
  • 18. 3. Evaluation of Expansions Alternatives Consumer profile 18 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Evaluating Options: Targeting Group in Brazil Young professionals Young families with one or two children Age range: 20 to 34
  • 19. 1.  PROFILE OF THE COMPANY 2.  SITUATION ANALYSIS 3.  OPTIONS 4.  IMPLEMENTATION 5.  CONCLUSION 6.  REFERENCES 7.  APPENDICES
  • 20. 4. Recommendations for Implementations Place: Brazil 20 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Degree of Adaption – Standardization of the Marketing Mix
  • 21. 4. Recommendations for Implementations Place: Brazil, Taubate 21 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Degree of Adaption – Standardization of the Marketing Mix
  • 22. 4. Recommendations for Implementations Product 22 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Degree of Adaption – Standardization of the Marketing Mix models: Skoda Fabia, Octavia, Ye8 Flexible-fuel cars Combina8on of diesel or petrol and biomass fuel Affordable For middle income class Wide range of possible equipment
  • 23. 4. Recommendations for Implementations Price Car price range according to model and accessories (4x4, fuel consump8on, emissions etc.) 23 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Degree of Adaption – Standardization of the Marketing Mix 8 000 – 15 000 $ 16 000 – 32 000 $ 14 000 – 30 000 $
  • 24. 4. Recommendations for Implementations Promotion Our goal: Posi8on affordable cars as trendy & luxury in customers minds. Simply Clever . 24 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Degree of Adaption – Standardization of the Marketing Mix
  • 25. 4. Recommendations for Implementations Distribution 25 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Degree of Adaption – Standardization of the Marketing Mix Produc8on plant Authorised VW dealers Final customers Aher sales service and maintenance - arranged by dealers Standardized model of Skoda showrooms - in compliance with brand iden8ty
  • 26. 4. Recommendations for Implementations 26 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Timeline building of extra assembly lines employing more employees raw materials expansion of contracts with suppliers expansion of contracts with distributors find shops and cer8fy car service redesigning the body of Skoda produc8on of the first cars quality control crash tes8ng marke8ng normal produc8on 2 months 4 months 6 months 8 months 10 months 12 months
  • 27. 4. Recommendations for Implementations 27 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Financials
  • 28. 4. Recommendations for Implementations 28 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Financials
  • 29. 1.  PROFILE OF THE COMPANY 2.  SITUATION ANALYSIS 3.  OPTIONS 4.  IMPLEMENTATION 5.  CONCLUSION 6.  REFERENCES 7.  APPENDICES 29 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen
  • 30. 5. Conclusion 30 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen CHOICE : BRAZIL •  growing market •  growing middle class •  increasing global influence •  high consuming culture •  well developed infrastructure compared to South Africa and Philippines Entry Mode & Implementation : •  exis8ng produc8on plant •  3 models (Fabia, Octavia, Ye8) •  biomass fuel (sugarcane) •  affordable price •  celebri8es & social media promo8on •  plant à dealers à customers FINANCIALS •  ROI : 5 to 10y
  • 31. 1.  PROFILE OF THE COMPANY 2.  SITUATION ANALYSIS 3.  OPTIONS 4.  IMPLEMENTATION 5.  CONCLUSION 5.  REFERENCES 6.  APPENDICES
  • 32. 6. References 32 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen •  h&p://www.volkswagenag.com/content/vwcorp/content/en/the_group/strategy.html •  h&p://www.strategy-business.com/ar8cle/05306?gko=e07fe •  h&p://www.skoda-auto.com/SiteCollec8onDocuments/experience/120-years/120-years-skoda-mobil.pdf •  h&p://skoda-auto.cm/en/company •  h&p://www.strategy-business.com/ar8cle/05306?gko=e07fe •  h&p://www.skoda.com.au/about-skoda/skoda-history •  h&ps://www.imd.org/research/challenges/upload/from_industry_joke_to_serious_compe8tor.pdf h&p://automo8velogis8cs.media/intelligence/skoda-simply-clever-logis8cs •  h&p://www.strategyand.pwc.com/perspec8ves/2015-auto-trends •  h&p://www.skoda-auto.com/en/company/investors/sales-results/ •  h&ps://www.rolandberger.com/media/pdf/Roland_Berger_Automo8ve_market_perspec8ves_Brazil_2014_2018_20141027.pdf •  h&p://www.havasmedia.com/documents_library/insights/hd_automo8vebrazil_genericsept11.pdf •  h&p://www.sustainableci8escollec8ve.com/global-site-plans-grid/259241/use-public-transporta8on-brazil-dropped-25-past-15- years •  h&p://www.bloomberg.com/news/ar8cles/2015-12-14/how-bad-is-brazil-car-market-drop-equals-all-of-mexico-s-sales •  h&p://www.lightstoneauto.co.za/news/Vehicle_and_home_buying_pa&erns_changing.pdf •  h&p://www.cars.co.za/motoring_news/new-vehicle-sales-south-africa-december-2014/28054/#.VsFRt86dJlJ •  h&p://www.sta8sta.com/sta8s8cs/388260/adver8sing-expenditures-share-by-medium-south-africa/ •  h&p://www.campiauto.org •  h&ps://www.sta8sta.com/outlook/220/123/social-media-adver8sing/philippines#market-revenue •  h&p://www.reportlinker.com/p0487890/Consumer-Lifestyles-in-the-Philippines.html •  h&p://www.philippines.hvu.nl/transport1.htm •  h&p://www.topgear.com.ph/news/industry-news/if-you-re-interested-volkswagen-ph-now-has-a-leasing-program •  h&p://www.apexbrasil.com.br/strategic-priority-sectors Sitographie
  • 33. 6. References 33 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen •  h&ps://www.volkswagen-media-services.com/documents/10541/2074387/Uitenhage_March+2015_en.pdf •  h&p://www.forbes.com/sites/kenrapoza/2015/01/03/brazils-automarket-faces-headwinds-ford-expects-sales-to-flatline/ #169fa35f20e4 •  h&p://bernersconsul8ng.com/de/assets/files/Berners-Consul8ng_Brochure_BR-EU-implementa8on.pdf •  h&p://la8nlink.usmediaconsul8ng.com/2012/08/the-top-10-trends-in-brazilian-marke8ng-and-media/ Sitographie
  • 34. 1.  PROFILE OF THE COMPANY 2.  SITUATION ANALYSIS 3.  OPTIONS 4.  IMPLEMENTATION 5.  CONCLUSION 5.  REFERENCES 6.  APPENDICES
  • 35. 2. Situation Analysis Company Existing Markets 35 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen General descrip8on: Skoda •  Produced: 1,06 million units in 2014 •  Employed 26 000 employees in 2015 •  Revenue of 12,37 billion USD (2014) •  Headquarter in Mlada Boleslav (Czech Republic) •  Produc8on plants in: Czech Republic, India, China, Russia and Slovakia; contract partners in Kazakhstan & Ukraine Business philosophy and mission: •  Mission: To provide cars that are affordable yet of high quality and reliability •  Philosophy: Responsibility toward the enviroment not only by crea8ng greener cars but also minimizing the pollu8ons from produc8on. 1895 1925 1930 1945 1960 1989 1980 1991 1994 2004 2008 2011 Skoda started from bicycles in year 1895 aher that they build a motorcycle and because of this success they built the first car around 1925 in Czech. In 1930, the first assembly line in Czech and gains 14% market share During the german occupa8on of Czech Skoda was a part of Reichswerke Hermann Göring In 1945 a part of the communist planned economy, lost contact with other non- communist countries. Between 1960 – 1980 Skoda managed to export to non- communist countries during this 8me but the brand was not popular in west because of bad quality. In 1989 Czech government started to look for someone to acquire Skoda and save its reputa8on. By 1991 a deal was signed with Volkswagen (at that 8me Skoda had 35% market share in the communis8c bloc) 1994 Felicia model improves sales in Europe and Great Britain. The following models were also built at VWs plants which helped their way into European Union market. In 2004 the Company exercises an aggressive entry mode for Ukraine, Serbia and Russia, by 2008 it entered China by licensing andexpanded in 2011 to India.
  • 36. 2. Situation Analysis Target Markets 36 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines major compe8tors Fiat Ford Toyota Mitsubishi Toyota KIA Hyundai compe88ve advantage •  South America’s largest consumer market •  s8ll-bustling economy •  few poten8al consumers •  South African government has provided substan8al support for the automo8ve industry in the past 20 years and is s8ll iden8fying it as a key growth sector •  globally among top 10 countries having the highest inten8on to acquire a car within the following two years
  • 37. 2. Situation Analysis Competition in Brazil (2014) It is the right Moment to establish market share in Brazil since it is less complex than in Argen8na. Target Markets 37 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Volkswagen Group Fiat Chrysler Ford Group Renault Nissan Honda Group Mercedes GM Group BMW Toyota Group Peugeot Citroen Hyundai Group Datenreihe1 16,12% 18,63% 14,88% 9,28% 8,22% 7,43% 7,36% 5,66% 4,71% 4,29% 3,42% 0,00% 2,00% 4,00% 6,00% 8,00% 10,00% 12,00% 14,00% 16,00% 18,00% 20,00%
  • 38. 2. Situation Analysis Value Chain in the Industry Existing Markets 38 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen
  • 39. 2. Situation Analysis Target Markets – CAGE Analysis 39 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines language German Portuguese 11 official languages (Afrikaans, English, Ndebele etc.) Filipino household size 2.0 3.2 3.9 4.25 consumer behaviour technology industry, internet shopping, price & quality most important,compare prices. automobiles, brand loyal consumers, aher sales service, na8onal pride, demanding and wants quality automobiles, very brand conscious, sophis8cated goods, middle class, aher sales service vital, well-informed consumer take-away, does not like ostenta8ous expenditure, priority is the family, are seen as having a bad taste ethnic influence 81% Germans 07% other EU 04% Turks 47.7% White 43.1% Mul8racial 07.6% Black 80.0% Black 08.8% Coloured 08.4% White 33.8% Visayan 27.7% Tagalog 09.8% Ilocano religions 61% Chris8ans 05% Islam 64.6%, Roman Catholic tradi8onal Protestan 08.0% no religion 06.8% other Chris8an 79.8% Chris8anity 01.5% Islam 01.2% Hinduism 80.6% Roman Catholic 05.6% Islam 02.7% Protestants Germany C
  • 40. 2. Situation Analysis Target Markets – CAGE Analysis 40 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines corrup8on 81/100 38/100 44/100 35/100 road tax road tax n.a. no road tax n.a. vehicle inspec8on every 2nd year mandatory once a year for diesel vehicles only once when you buy a used car n.a. emission regula8on tax free un8l 110gms/ km à 20e per 10gms/ km n.a. n.a. n.a. driving license age 18 18 18 17 Germany A
  • 41. 2. Situation Analysis Target Markets – CAGE Analysis 41 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines level of public transport high low and too expensive high underdeveloped distance to produc8on plant Germany Brazil South Africa Taiwan infra- structure level index 6.2 3.92 4.12 3.43 Germany G
  • 42. 2. Situation Analysis Target Markets – CAGE Analysis 42 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines income/ capita USD 47.821,9 USD 11.384,4 USD 6.482,8 USD 2.872,5 economic cycle/ GDP growth 1.6% 0.1% 1.5% 6.1% amount of cars/ 1000 566,1/1000 158,1/1000 107,8/1000 10,67/1000 price of fuel USD/l 1.38 USD/l 0.8 USD/l 0.78 USD/l 0.78 unem- ployment rate 4.3% 6.8% 23.5% 6% labour costs 109 98.7 143.8 n.a. Germany E
  • 43. 3. Evaluation of Expansions Alternatives Evaluating Options: [+] & [-] of each Alternative 43 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines [+] •  automobile industry growing •  VW plant in Brazil •  poor public transport net •  highest income per capita = strongest purchase power •  lower labor cost •  government has iden8fied the automo8ve industry as a key growth sector •  VW produc8on plant in ZA •  the automo8ve and components industry is well placed for investment opportuni8es •  strong economic growth •  significant growth of automo8ve industry [–] •  slow economic growth •  different cultural orienta8on (e.g. task/rela8onship) •  rise of tax on Industrial produc8on from 3 to 7% •  high unemployment rate •  automo8ve industry stagna8on (number of cars sold) •  strong corrup8on •  too divers ethnics base •  low amount of cars per 1000 people •  no VW plant in Philippines •  unsuitable spending habits (prefer spending money on family and people, not on assets)
  • 44. 3. Evaluation of Expansions Alternatives Evaluating Options: Decision Matrix 44 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Brazil South Africa Philippines AUracVveness & knowledge of foreign market – 40% Purchasing power 5 3 2 Produc8on plant 5 5 3 Automo8ve industry development 3 1 5 Cultural differences 3 2 2 Compe88on 4 4 3 CAGE distances – 20% Results from CAGE analysis 4 3 3 Sociographic Factors – 15% Ethnic fragmenta8on 4 2 1 Consumer behaviour trends 3 3 2 PotenVal risks & costs – 25% Corrup8on 2 3 2 Unemployment rate 3 1 3 Taxes 1 1 3 Labor costs 4 2 1 Economic growth value 2 2 4 Infrastructure 3 3 1 Total 100 13.60 10.75 10.55 Germany %
  • 45. 3. Evaluation of Expansions Alternatives Evaluating Options: SWOT Analysis of Brazil 45 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Strengths Weakness Opportunities Threats •  market size •  poli8cally & economically stable •  investment-grade debt •  op8mis8c growth projec8ons in numerous industries •  Increasing global influence •  large bureaucracy •  complex regula8ons and tax code •  restric8ve labour laws •  import taxes and protec8onism •  shortage of qualified personnel for some industries •  growing economic 8es to China, US, Europe & La8n America •  large investments being made in infrastructure •  major oil discoveries •  growing middle class with increasing purchasing power •  prolonged downturn in the global economy •  fall in commodity prices •  weakening of the currency affec8ng corporate profits •  government inac8on in tackling na8onal economic imbalances
  • 46. 4. Recommendations for Implementations Realisation Degree of Adaption – Standardization of the Marketing Mix 46 BAA 2-204-08 HIV2016 – Interna8onal Marke8ng – Group #1 Volkswagen Water 71% Sugar 15% Fibres 13% Non-Sugars 1% Density 0,795kg/l Energy content 26,8 MJ/kg Purity 99,7% Water content 0,3% Milling of sugarcane stems & separa8on of juice and bagasse FermentaVon Conversion of sugars into alcohol – produc8on of ethanol at 8-10% DisVllaVon Separa8on of alcohol and s8llage – produc8on of hydrated ethanol at 95% DehydraVon Alcohol rec8fica8on