VOLKSWAGEN IN INDIA

ROHIT PATIL,PGDM-A,60

Q1. Do you agree with VW brand positioning?

 Yes. Volkswagen India have projected themselves as a “premium, innovative brand”. VW has
been positioning itself as a brand that offers value to people and tells them how its technology
can change their lives.Even though the market share for premium category was less,VW
positioned itself in the premium segment because the european mindset of premium was
perceived in India as luxury. Three motives viz, to display a status symbol, utility and personal
space were kept in mind while positioning VW in India. Volkswagen faces tough competition
from Maruti Suzuki and Hyundai which together own around 55% share in Indian market.The
Indian market is divided into four markets, luxury market, premium, lower premium and budget
market. The lower premium and Budget market together own around 91% market share.In
spite of this Volkswagen targeted the premium market for its brand positioning which
constituted 8% market share. With Skoda already ruling the Premium segment, Audi the luxury
market, Volkswagen should consider entering the lower and budget market to provide the
Indian customers value for money cars with high quality.

Q2.Explain the relative positioning of VW,Audi and Skoda.

 Volkswagen,Audi and Skoda,all belonged to the Volkswagen group but still they had
different positioning in India. Volkswagen was positioned as more premium compared to
Honda and Toyota while Audi was positioned in the luxury segment at par with the likes of
Mercedes and BMW. Skoda was perceived as more up-market label than Volkswagen in
India. Volkswagen sells seven brands in India - hatchback Polo, sedans Vento, Jetta, Passat and
Phaeton long with SUV Touareg and the iconic Beetle. Its brands are range from 4.6 lakhs to 6.2
lakhs in petrol version and 5.7 lakhs to 77.1 lakhs in diesel version thus covering the car
segment from B+ to E including luxury SUVs segment. Skoda, however sells five models —Fabia
in the hatchback segment, Rapid, Laura, Octavia and Superb in the sedan segment. These
models have a price range of 4.5 lakhs to 27.2 lakhs in petrol version and 5.6 lakhs to 23.2 lakhs
in diesel version thus covering car segment B+, Lower D, Upper D. Audi, on the other hand is
positioned in luxury segment. It covers the Upper D, E and luxury SUV segment of cars with
price ranging from 15 Lakhs to 100 lakhs.
Q3.Do you agree with VW segmentation strategy?

 After considerable research and survey VW finalized its focus on 5 segments based on status
and value orientation which had a market share of around 46%. The right adaptations for the
Indian market enabled VW to differentiate itself from domestic and international competitors
and generate growth.VW India’s strategy was to present a region-specific approach focused on
vehicle safety, fuel efficiency, and environmentally friendly vehicles.”German Engineering,Made
in India” promise. Depending on social status and value orientation, Volkswagen segmented the
customer into following 5 sections: new middle class, new business builders, the young
progressives, modern urban elite, metropolitan smart.Its prime target was B+ and C segment
which was rapidly growing. It targeted on modern, educated, high-tech and individualistic
customers which comprises the metropolitan smart segment. From this segmentation we can
conclude that Volkswagen caters to the car needs of all the variety of people in the society,
from 2 wheeler upgraders to image conscious customers. It has its presence felt among various
types of customers. VW is yet to target the budget car segment (segment A or segment B).By
targeting this segment it will have its reach among all the types of customers and across all the
car segments