4. Dashboard
🚗 Introduction to Volkswagen
🚗 Environment
🚗 Place/ Pricing/ Promotion
🚗 Failures
🚗 Take Aways
5. Introduction Volkswagen
🚗 "Volkswagen” the word means "people's car.”
🚗 Headquarters in Wolfsburg.
🚗 The Volkswagen Group's models are sold in
more than 150 countries
6.
7. 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
8. 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.
9. Porters Five forces
New
Entrance
Competitive
Suppliers Buyers
Rivalry
Substitutes
11. 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
13. 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?
14. Supply Chain
Suppliers
Production Plant
Warehousing
Dealers
Customer
16. 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
20. 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
21. 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.
22. Pricing Strategies
Pricing 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
23. Failures of pricing, promotion
and 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
24. Take Aways
🚗 India is an important market for Automobile
manufacturers.
🚗 Indian automobile market is growing
market.
🚗 Easy Financing Options are available.