Volkswagen India- Marketing Strategy in India

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CASE FACTS
 Entered Indian market in 2001 with launch of Skoda.
 Audi and Volkswagen brands launched in 2007.
 Two group companies – Volkswagen India & VGSIPL.
 Volkswagen India – Volkswagen branded cars.
 VGSIPL – Audi and Skoda.
 Marketing strategy in India – Product, Place, Price, Promotion.

ISSUES
 Caters mainly to luxury segment.
 Higher price range – except Skoda Fabia.
 Lack of brand awareness among Indian consumers.
Lack of aggressive marketing in earlier phases.
Lesser sales than BMW, Mercedez, etc (SIAM).
 Lack of consumer knowledge – what Volkswagen stands for.  Perceived value v/s Perceived price – value line.

4 Ps OF MARKETING
 Product
15 different models under 3 brands.
Plant at Chakan, near Pune.
More assembly plans in India – competitive advantage.
Awards last year.

 Price
Targeted mainly for the luxury segment in the Indian market. Plan to capture bigger market through the VW Polo.

 Place
Significant presence – number of dealerships and outlets across major cities.

 Promotion
Launched Integrated Marketing campaign in November, 2009.
Collaboration with DDB Mudra.
Evoke consumer awareness of VW as a brand.
Innovative promotional campaigns – OOH, print ads,TVCs.
Print media – Communicating benefits.
Television Commercials – Brand building.

PLANS
 Building brand image through innovative promotional campaigns.  Earlier example – “think small” for Beetle in 50s.
 Core focus on luxury segments.
 Low cost VW Polo for targeting masses.
 Achieve significant awareness of VW as a brand before launch of Polo.  Showcase German engineering coupled with “Made in India” promise.

AD CAMPAIGNS
 Highlights the technical qualities it ensures.
 “… tested by our engineers. So you don’t need to.”  Highlights Volkswagen as a composite brand.
 Cars for different stages of life and career.

SHOULD
 Continue with its innovative brand awareness exercise – clutter-free.  An...
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