Volkswagen & Suzuki Alliance Case Study Analysis

Only available on StudyMode
  • Download(s) : 855
  • Published : January 27, 2011
Open Document
Text Preview
Running head: VOLKSWAGEN & SUZUKI ALLIANCE CASE STUDY ANALYSIS

Volkswagen & Suzuki Alliance Case Study Analysis

MKT 523- Marketing Management
Due Date: 12/11/2009

TABLE OF CONTENTS
I. Abstract…..…………………………………………………………………..3 II. Introduction…………………………………………………………………..4 III. General Analysis
i. Volkswagen current marketing management trends…………………5 ii. Key information delivered in the article……………………………..5 IV. Critical/Comparative analysis
i. Article evaluation & comparison to others…………………………..5 ii. Volkswagen’s marketing philosophy for now and the future………..6 V. Management Application
i. Volkswagen marketing management scenario……………………….7 VI. Summary/Conclusion…………………………………………………………7 VII. References…………………………………………………………………….8

Abstract
Volkswagen is eager to purchase a 20% stake in Suzuki in order to cooperate on future small cars for emerging markets. In its home market of Japan, Suzuki is the second-largest automaker behind Toyota and dominates the tiny Kei car market alongside Toyota-owned Daihatsu. These miniature 660cc vehicles are extremely popular in Japan's dense urban settings and Volkswagen reportedly believes this class of automobile holds great promise for emerging markets. In India, for example, Tata motors have seen a great deal of success with its diminutive Nano, which is billed as the cheapest car in the world. Suzuki already enjoys a measure of success in Tata's home turf, where its Maruti Suzuki subsidiary offers the Alto, which has been the best-selling automobile in India since 2004. Key words: Volkswagen, Suzuki, Automakers, Suzuki deal, Compact cars, Double marketing Introduction

Volkswagen (VW) leads the Continent as Europe's #1 carmaker. Along with Golf (referring to the Gulf Stream) and the New Beetle, VW's annual production of 6 million cars, trucks, and vans includes such models as Passat (trade wind), Jetta (jet stream), Rabbit, and Fox. VW also owns a garage full of luxury carmakers -- AUDI, Lamborghini, Bentley, and Bugatti. Other makes include SEAT (family cars, Spain) and SKODA (family cars, the Czech Republic). Late in 2009 VW acquired a 49.9% stake in Porsche for about E3.9 billion (about $5.79 billion) as the first step in combining the two into an integrated car company. Suzuki Motor Corporation is a leading Japanese carmaker and the world's #3 motorcycle manufacturer behind Honda and Yamaha. Suzuki's automobile models include the Alto, Grand Vitara, Swift, Splash, and SX4. Its motorcycle products include cruiser, motocross, off-road, scooter, street, and touring models, as well as ATVs. Suzuki Motor's non-vehicle products include outboard motors for boats and motorized wheelchairs. The company operates in more than 190 countries. Although General Motors sold off its equity ownership in Suzuki, the two companies still work together on various technologies, including hybrid vehicles. Suzuki also builds cars through numerous subsidiaries and joint ventures overseas. This article clearly demonstrates, very important aspects of marketing management. The move by Volkswagen to purchase 20% stake is Suzuki to produce low cost efficient cars and penetrate new markets is a very good example that illustrates how marketing and management tools can shape the direction of a company. General Analysis

Volkswagen current marketing management trends
Following on from the sharp downturn in macroeconomic trends of recent months, Volkswagen is nevertheless reaffirming its targets. “During this year lunched around 60 new models, product enhancements and successors with highly-efficient, low-consumption engines. With this model roll-out, they are very confident that they can, as planned, perform significantly better than the Volkswagen is using Double Marketing to push its core messages, even when they happen to conflict.  In doing so, VW doesn't have...
tracking img