1. 7/16/2011
MARKET PLANNING PROJECT
SHASHANK GUPTA 11P166
SHAURYA VERMA 11P167
SHIVANI KHANDELWAL 11P168
SHOVIK KAR 11P169
SUMIT GUPTA 11P170

2. Marketing Planning Project
Phase I: Introduction
Company name: Volkswagen
Theme of Topic: Internet Marketing
Purpose:
To Analyze the Usage of Internet Marketing Tools for Entry of Volkswagen Polo in Indian Market: A
Study in NCR
Objective:
To study the online presence of Volkswagen
Effectiveness of Search Engine Optimization technique currently being used
Studying the use of Search Engine Marketing being used by Volkswagen
Analyzing the ORM (Online reputation Management) of Volkswagen
Planning strategy for increased online presence and internet marketing
Significance:
1. Business Point of View:
Enhancing the visibility of Volkswagen
It gives us the idea of current market penetration
2. Student Point of View:
Academic expedition into Automobile Sector
Insight to the world of Internet Marketing
Role of market research in satisfying customers’ needs and expectations
3. How managers can use this?
Improving the earlier business strategies

3. Justification:
Social media and internet is the emerging marketing tool. Young generation forms the new segment
which Volkswagen is targeting which is the net savvy generation. Focus on Internet Marketing can
tremendously increase the visibility and improve the sales of Volkswagen. The benefits of improved
internet marketing will be –
Improved Search Engine Optimization will increase the visibility of Volkswagen on Internet.
Dealers can enhance their presence using Search Engine Marketing.
ORM (Online Reputation Management) will help in building a more positive brand image.
Improved internet presence will finally contribute to increased product awareness.
Outline:
1. Research:
Introduction to the company
Competitors in Market place
SWOT Analysis
2. Systemized Data Analysis
Data Collection through Internet Marketing Tools
SEO ( Search Engine Optimization )
It is the process of improving the visibility or ranking of a website or a web
page insearch engines through keyword approaches and other procedures.
SEM ( Search Engine Marketing )
It promotes websites by increasing their visibility in search engine result pages
(SERPs) through the use of pay per click.
Google Insight
It provides insights into the search terms people have been entering into the
Google search engine and provides a visual representation of regional interest on
a country's map. It displays top searches and rising searches that may help
with keyword research. Results can be narrowed down with categories that are
displayed for each search terms.

4. Google AdSense
It is an ad serving application where website owners can enroll in this program to
enable text, image, and video advertisements on their websites. These
advertisements are administered, sorted, and maintained by Google, and they can
generate revenue on either a per-click or per-impression basis.
Google AdWords
It is a service that helps create and run ads quickly and simply for business. These
ads are displayed along with search results when someone searches Google using
one of our keywords.
3. Strategy Development
Creating Internet Marketing Strategies
Improving Segmentation
Prioritize Web Marketing Tactics

5. Research:
Introduction to the company:
Volkswagen Group is a German manufacturing group. As of 2008, Volkswagen was ranked as the
world’s third largest motor vehicle manufacturer and Europe's largest.
The Group's parent company is Volkswagen AG, which develops vehicles and components for
all marques of the whole group, and also manufactures complete vehicles for the Volkswagen
Passenger Cars andVolkswagen Commercial Vehicles.Volkswagen Group is divided into two
primary divisions: the Automotive Division, and the Financial Services Division. The Group consists of
342 Group companies.
Volkswagen Passenger Cars is Volkswagen Group's original marque, and the Group's other
major subsidiaries includes Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and Skoda. Volkswagen
AG also has operations in commercial vehicles, owning Volkswagen Commercial Vehicles. Volkswagen
Group rooted in Europe, operates worldwide.
The Volkswagen Golf is the third bestselling automobile in the world, with over 26 million units sold
throughout 2008. In 2009, according to data published by all three top automakers, Volkswagen was
the third biggest motor vehicle manufacturer by volume, with 6.29 million units
delivered after Toyota with 7.23 million unitsand General Motors with 6.503 million units. In 2010,
Volkswagen Group sold 7.28 million vehicles, claiming 11.4% of the world's passenger car
market. Volkswagen Group's largest market outside Germany is in China, where it sold more than one
million vehicles in 2008.
Competitors in Market place:
Volkswagen, the German car maker that is selling cars at a furious pace in India despite being among
the late entrants, is rapidly building its presence in the country.
As it is highly banking on its popular Polo and Vento models for gaining a significant market share, the
company is adding dealerships while lining up new models. In hatchback segment, Volkswagen holds
around 8% market share, while in mid-sedan segment, where its Vento competes with cars like Hyundai
Verna, Fiat Linea, Honda City, Maruti SX4, the company has around 23-24% market share.
In 2010 the company sold around 32,000 cars, which was against 3,000 cars sold in 2008-2009, while in
the first few months of 2011 Volkswagen has sold in excess of 32,000.
As far as dealers are concerned, the company has been adding 25-26 dealerships on an annual basis. The
German car maker which started with four dealers in 2008 now has 71 dealers across India.Currently
sPolo and Vento are being manufactured in company's Chakan plant near Pune. The installed capacity of

6. the plant is 110,000units. The company had recently increased the prices of its diesel Vento, while
prices of petrol Vento remained unchanged.
SWOT Analysis:
STRENGTHS
VW's strengths are cars based on advanced-design technology. VW uses its technological capabilities
not only to improve its engines (through the use of fuel injection, for example), but also to develop the
very fuel-efficient Diesel engine. Also the cars of VW offer robust performance and designs are
futuristic. In Indian Markets, VW has introduced its cars in every consumer segment thus providing
customers with more choices.

7. WEAKNESSES:
VW did not have a presence in India and due to the late entry in the Indian market where a number of
well established brands are present it has to face a tough competition to make its presence felt. VW has
at present only 120 dealers as compared to its rivals so it could not offer the same after sales service as
its competitors.
OPPORTUNITIES:
Due to the growing economy a large Indian population has high disposable income making them the
target customers for VW. Also due to the increasing automobile demand in India VW has a very large
scope to capitalize its growing demand.The growing affluence of customers has resulted in 'trading up'
to more luxurious cars.
THREATS:
Due to rise of raw material prices the manufacturing cost has gone up which gets passed on to the
consumer, and acts as a deterrent to the potential Indian buyer who has high price sensitivity. Also, since
the import duty on the cars manufactured outside India is high,VW’s ability to offer competitive pricing
to the consumer gets hampered. A lot of foreign competitors are also trying to breach into the Indian
markets, capturing the market share will become more difficult for VW.

8. References
1. http://www.volswagen.co.inat 9 pm, 12th July.
2. http://en.wikipedia.org at 8:20 pm,13th July.
3. http://www.google.com/insights/search/at 9 pm,13th July.
4. http://adwords.google.co.in/ at 11 pm,15th July.