Lime 4 Case Study Volkswagen

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IIM-C AUTO VOLKSWAGEN

VOLKSWAGEN CASE STUDY


Total Market Last Three Years (YTD):
Year 2010 2011 2012* *Forecasted Passenger Vehicles 599,432 726,478 976,699 Utility Vehicles 98,170 112,845 191,663

Industry Market Share (YTD) in Percentage*:


Maruti Suzuki -37.8 Hyundai - 15.1 Tata Motors -12.5 M&M 8.7 Toyota -7 Chevy -3.6 (GM) Ford -3.4 Honda-3.3 Volkswagen -2.7 Nissan -2 Skoda- 1.5 Fiat - .06 Rest 1.8 *As on June 2012

Volkswagen Global Vision:


The World's most innovative high-volume brand

Brand Positioning
Lower Premium Skoda Upper Premium Volkswagen Luxury Audi Super Luxury Porsche, Lamborghini

About Volkswagen Brand:


Europe's leading car manufacturing brand Sells from the up! to the Phaeton in more than 150 countries worldwide Commenced sales in India in 2007 with the Passat NSC based in Mumbai, manufacturing facility in Chakan and assembly in Aurangabad Offers Polo, Vento, Jetta, Passat, New Beetle, Touareg and the Phaeton in India Has a network reach of 108 dealerships in 87 cities across India

VOLKSWAGEN CASE STUDY


Volkswagen Offer Matrix:

Volkswagen Fact Sheet:


Polo & Vento - Plant Location: Chakan, Pune Jetta & Passat Plant Location: Aurangabad New Beetle, Touareg& Phaeton FBU Dealerships in India 2008- 14 2009-40 2010-70 2011-100 2012-108(June 2012) Sales of Volkswagen Passenger Cars 2009- 2039 2010-32627 2011-78408 2012- 41, 547(Jan -Jul 2012) Investment 580 million Euros

Competitive Context:
Polo: Core competition: Hyundai i20, Suzuki Swift, Chevrolet UVA Extended competition: Nissan Micra,ToyotaEtiosLiva, Skoda Fabia, Suzuki Ritz, Ford Figo

VOLKSWAGEN CASE STUDY


Vento: Core competition: Honda City, Hyundai Verna, Ford Fiesta, Suzuki SX4 Extended Competition: Toyota Etios, Suzuki Dzire, Fiat Linea Jetta: Core competition: Chevrolet Cruz, Toyota Altis, Honda Civic Extended competition: Renault Fluence, Skoda Laura Passat: Core competition: Toyota Camry, Honda Accord Extended competition: Skoda Superb, Audi A4, BMW 3 Series, Mercedes C class Core volume segment referred to here are the Polo and the Vento segment

Volkswagen India Sales:

Volkswagen Brand Communication Strategy:


Vision: Volkswagen is the world's most innovative high volume brand Brand Guidelines: Innovative Valuable Responsible Communicative Focus: Innovative Democratization of Innovations with clear customer benefits Valuable Price, Quality, Accessibility, Service, Maintenance, Running costs Responsible: BlueMotion Technologies, Think Blue campaigns The above is basis brand value and product positioning. Product positioning: Polo: German Engineering. Made in India. Vento: German Engineering. Best in Class. Jetta: German Engineering. For Dynamic Performers. Passat: German Engineering. For Premium Needs.

VOLKSWAGEN CASE STUDY


Volkswagen VoxPopuli
Premium brand, German technology, portrays snob value for the Volkswagen badge, decent reach but need to expand more especially since the brand sells cars like the Polo and the Vento, expensive cars as compared to the competition in respective segments, very good build quality cars, great drivability, can do with more features.

Challenge Background
- Volkswagen Brand is positioned as a 'premium' brand in the volume segment - In each segment the Brand has its presence, its pricing clearly reflects the Brand positioning - However in volume segments customers are price sensitive and the brand still wants to increase sales significantly

The Challenge
Considering the background: - Work out a strategy to overcome this challenge without compromising on the Brand positioning or Brand value - Define and recommend the communication path to achieve the critical objective without compromising on the Brand Positioning and the Brand Value

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