Volkswagen in China, Marketing Assignment
1.0. Introduction.
Marketing nowadays is the essential element of successful organizations (Kotler, 1999). And of course all products that are produced by companies are made to be sold and provide the profit for producers in this light marketing is the most important tool because it effects profitability and sales dramatically and provide the healthy turnover for the company. According to Kotler marketing is “the process that satisfies needs and wants through an exchange process” (1999). The Chartered Institute of Marketing enhances this definition to 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably '. Marketing is based on several marketing concepts (Appendix 1).
This paper will describe the marketing strategies on the example of Volkswagen Group China (VGC) , automotive industry. 2.0. Organisation back-ground.
VGC is an affiliate of Volkswagen AG. Volkswagen has been in China automotive market since 1984. Volkswagen opened its headquarter in Beijing, China (www.vw.com.cn ) . During this period of time VGC demonstrates sustainable growth and profitability, for example in financial statements (2010) its sales revenue was shown as €126.9 billion, with 20.6% in difference from the previous year profit, with 1.9m sold cars in total (Appendix 2). Net liquidity of the Automotive Division has increased to €18.6 billion in 2010 (Appendix 3). The quantity of employees reached amount of 53,000 in 2010. Current President of the VGC is Dr. Karl-Thomas Neumann (CEO). The VGC is operating through 2 joint-ventures: Shanghai Volkswagen Automotive and FAW-Volkswagen Automotive Company . 3.0 Industry analysis Pest.
3.1. Economic Impacts.
There are 2 main events that have changed the economy of China cardinally. The first is the open policy from the 1970s and the second its WTO membership in 2001, according to which China’s economic system became more market-oriented. In January 2004
Marketing nowadays is the essential element of successful organizations (Kotler, 1999). And of course all products that are produced by companies are made to be sold and provide the profit for producers in this light marketing is the most important tool because it effects profitability and sales dramatically and provide the healthy turnover for the company. According to Kotler marketing is “the process that satisfies needs and wants through an exchange process” (1999). The Chartered Institute of Marketing enhances this definition to 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably '. Marketing is based on several marketing concepts (Appendix 1).
This paper will describe the marketing strategies on the example of Volkswagen Group China (VGC) , automotive industry. 2.0. Organisation back-ground.
VGC is an affiliate of Volkswagen AG. Volkswagen has been in China automotive market since 1984. Volkswagen opened its headquarter in Beijing, China (www.vw.com.cn ) . During this period of time VGC demonstrates sustainable growth and profitability, for example in financial statements (2010) its sales revenue was shown as €126.9 billion, with 20.6% in difference from the previous year profit, with 1.9m sold cars in total (Appendix 2). Net liquidity of the Automotive Division has increased to €18.6 billion in 2010 (Appendix 3). The quantity of employees reached amount of 53,000 in 2010. Current President of the VGC is Dr. Karl-Thomas Neumann (CEO). The VGC is operating through 2 joint-ventures: Shanghai Volkswagen Automotive and FAW-Volkswagen Automotive Company . 3.0 Industry analysis Pest.
3.1. Economic Impacts.
There are 2 main events that have changed the economy of China cardinally. The first is the open policy from the 1970s and the second its WTO membership in 2001, according to which China’s economic system became more market-oriented. In January 2004