1. POST GRADUATE PROGRAM
FOR RETAIL MANAGEMEMT

2. P R E S E N T E D B Y
M O H D A R S A L A N
P R O F F : S H A I L E S H K A L E
STRATEGY AT VOLKSWAGEN
GROUP INDIA

3. Contents
 Volkswagen –The Group
 Volkswagen Group India
 Corporate Strategy
 Mark 18 Plus Strategy
 Business Strategy
 Skoda
 Audi
 Volkswagen India
 Functional Strategy
 Brand Equity
 Communication, Pricing AND Distribution

4. Volkswagen Group
• Volkswagen Group is a German Automobile
Manufacturing Group.
• 3rd largest automobile manufacturer
• Parent Company- Volkswagen AG
• Product range extends from low-consumption small
cars to luxury class vehicles and trucks.

5. Cont…..
 Group operates 60 production plants around the
world.
 Volkswagen AG, is globally represented by 9 brands-
Audi, Bentley, Bugatti, Lamborghini, Scania, Seat,
Skoda, Volkswagen Commercial Vehicles
(Volkswagen Nutzfahrzeuge) and Volkswagen
Passenger Cars.

7. Volkswagen Group India
 Volkswagen Group India, the Indian subsidiary is a part
of Volkswagen AG.
 It has its headquarters in Pune, Maharashtra (India).
 Volkswagen Group is represented by three brands in
India: Volkswagen, Audi and Skoda.
 Volkswagen Group is completing 10 years of its India
journey which began with the entry of the Skoda brand in
2001, Audi brand and Volkswagen brand in 2007.

8. Cont…
 It currently has 16 models in the Indian market.
 Volkswagen Group are setting up dealerships spanning
the entire country with Volkswagen, Skoda and Audi
having in total around 70 dealerships in 56 cities across
18 states and 2 union territories of India.
 Volkswagen Group have together sold around 19,000
vehicles in India in 2009, an increase of 1.4% over 2008
in a year marked by recession in the auto industry.

9. Cont….
 Skoda entered the Indian market in 2001.
 Its plant in Aurangabad, assembles a total of eight
models including the Audi A6 and Audi A4 as well as
the Volkswagen Passat and Volkswagen Jetta.
 Group’s production facility near Pune in the Chakan
Industrial Park is a key element in Volkswagen’s
India strategy to establish a long term presence.

10. Cont….
 Total sum invested of around INR 3,800 crore (580
million Euros) is the biggest investment of a German
company realized in India so far.
 The plant, one of the most modern in the
Volkswagen Group has a high level of vertical
integration.
 Annual capacity of around 110,000 cars.

11. Corporate Strategy
 Global challenges such as climate change and scarce
resources demand sustainable solutions.
 Volkswagen Group has been employing various
methods to envisage the future and thereby enhance
its competitive position.
 Volkswagen Group has charted a clear course with
our “18plus” strategy.

12. MACH 18PLUS STRATEGY

13.  Focus lies on becoming an economic and
environmental leader in the global automotive
industry.
 Strive for success in terms of profitability, customer
satisfaction and quality, accessing new markets and
increasing production output, and attractiveness as
an employer.
 The “plus” element stands for more entrepreneurial
thinking, more synergies and more ecology.

14. Cont…
 Volkswagen will harness the strengths of the Group
and its nine brands with an environmentally-
oriented model range .
 Volkswagen has set its sights on new environmental
benchmarks.
 The company has earmarked annual expenditure for
development and investments in new models and
technologies in excess of €8 billion over the next few
years.

15. Cont…
 Boost the sales volume from present 6.5 million to
more than 10 million cars.
 The incremental volume aimed for will more or less
come from Brazil, Russia, China and India.

16. India’s Contribution in 18plus Strategy
 Indian car market is the 10th largest car market with
annual sales of around 1.4 million cars.
 The market size is expected to increase to 4 million
cars by 2015.
 Volkswagen aims to increase its market share from a
meager 1% presently to 10 % in next 5 years.

17.  VW picked up 19.9 per cent stake in the Suzuki
Motor Corp (SMC) for USD 2.5 billion last year.
 Maruti Suzuki India is the crown jewel of the
Japanese car maker.
 Volkswagen is open to jointly developing products
with Maruti Suzuki India, as part of its efforts to
achieve synergy with Suzuki Motor Corp at the global
level.

18. Business Strategy
SKODA AUTO INDIA
• Launched its first product, the OCTAVIA, in India in
2001.
• Was the only possible step to enter India.
• Skoda adopted a Focus Strategy approach relying on
differentiation as a luxury car maker.

19.  It now plans to come up with a new Fabia which will
be more competitively priced and another small car
priced between 3-5 lacs(by 2012).

20. AUDI INDIA
• Audi is one of the world’s leading premium brands.
• Basis of its success comprises pioneering concepts in
the domains of advanced technology and design.
• Audi has been selling its products in Indian market
since 2004.

21.  For this Audi AG has earmarked investments of up to
€30 million (Rs174 crore) by 2015 in its local
operations.
 Also Audi India plans to come up with a car in
corporate entry level i.e. Toyota Camry following the
lead of BMW.

23. VOLKSWAGEN INDIA
• Volkswagen is the highest volume brand of VW
Group.
• Volkswagen presents itself in a variety of segments
as a premium manufacturer of high-volume models.
• As a first step, the Volkswagen brand launched the
globally successful Passat in 2007.

24. Cont…
 To expand its portfolio and cater to the mid segment,
Volkswagen launched one of the brand’s bestselling
models, the Jetta, in India in July 2008.
 Iconic New Beetle and the high-end SUV Touareg were
introduced in December 2009.
 Also available is the high-end automobile Phaeton.
 From December 12, 2009 the new Pune plant has started
rolling-out the hatchback version of the Volkswagen
Polo.

25. Cont….
 After Polo, Vento is VW's second car targeting the mass
market.
 It will be positioned at the upper-end of the country's
mid-sized sedan segment.
 Volkswagen India has adopted a top-down strategy to
arrive at competitive pricing.
 It is directly pitted against market leader Honda City,
Maruti’s SX4, Ford Fiesta etc.

26. Volkswagen India in Numbers
• VW has sold a total of 3,037 units in the country in 2009, of which 58 were
Beetles, 25 Touaregs, 2,342 Jettas and 613 Passats. This is a 95 per cent
increase in sales since 2008 when they sold 1,566 cars.
• Volkswagen India sold 2,597 cars in July 2010.
• Since its launch in February, Volkswagen has sold 1,599 Polos so far.
• There are already 10 units of the Phaeton (priced @75 lacs) in the Indian
market.
• 50 confirmed orders for the Beetle, with a four-month waiting period.
• 50 confirmed orders for the Touareg.

27. Ansoff Growth Strategy Matrix
Market
Penetration
Product
Development
Market
Development
Diversification
MARKETS
CurrentNew
PRODUCTS
Current New

28. Functional Strategy
MARKETING STRATEGY OF VW INDIA
• China is the 2nd largest market for VW Group after
Europe.
• Volkswagen plans to use its learning in China in India.
• Aggressive price tags and high-decibel advertisements.
• Volkswagen’s strength lies in the mass market. Its name,
after all, means people’s car in German.

29. Brand Positioning
Value Prestige
RationalEmotional

30. Cont…
 When VW started out in 2007, low brand awareness
was one of the key concerns.
 Thus Volkswagen came out with 13 advertisements
in a leading English newspaper.
 It told readers all they ever wanted to know about
Volkswagen — how the name came about, its product
line and so on.

31. Cont…
 By the time the campaign ended, Volkswagen had
used 18,000 television spots, 144 insertions in
broadsheet dailies, 50 insertions in magazines, 280
out-of-home sites and 23 digital portals.
 To improve brand recall, the next campaign showed
all Volkswagen cars: The Beetle, Passat, Jetta and
Touareg.

32. Customer based brand equity
 The Volkswagen customer based brand equity is equally
strong on the left and right hand sides.
 It is also strong from bottom to top, enjoying the highest
brand awareness of a carmaker as well as high repeat
purchase rates and customer loyalty.
 To a certain extent Volkswagen has successfully focused
on both the superior product attributes and the imagery
associated with owning and driving a Volkswagen.

33. Communication @ VW
 Most of the Volkswagen communication takes place
through print media in magazines and newspapers.
 This is supported by communication through TV
advertisements and point of sales promotion.
 Now a days a good company has a state of the art web
portal ,Volkswagen websites are highly informative,
interactive and a pleasure to watch.
 One can get any amount of detailed information
regarding the prices, features, retailers, and support
services etc.

34. PRICING AND DISTRIBUTION
 Volkswagen India Private Limited currently has more than 70
dealerships in 56 cities across 18 states and 2 union territories of
India.
 There are company specified retailers and distributors through
out the world who are in constant touch with the parent and
comply implicitly.
 Dealers also have round the clock servicing and repair.
 Volkswagen also has a used car portal where one can choose and
buy his/her appropriate model.

35. Mr. Lutz Kothe, Head of Marketing said…
 Volkswagen was the first company in India to use
LinkedIn Recommendation Ads, and the campaign was a
success.
 We went in with a goal of inspiring 500
recommendations among current and prospective car
buyers.
 In less than 30 days, over 2,700 Volkswagen fans had
stepped forward to recommend their favorite cars and
share these recommendations with their professional
networks.

36. Unique Advertise’g Strategy

37. THANK
YOU