Effectiveness of Marketing Strategyby Sagar

A STUDY
ON
“EFFECTIVENESS OF MARKETING
STRATEGIES OF VOLKSWAGEN, SURAT”
(Conducting on behalf of Navjivan auto square Pvt.Ltd, Surat)
(From 5th January, 2010 to 5th March, 2010)
A Project Report Submitted in partial Fulfillment of the

requirement for the
Award of degree of
BACHELOR OF BUSINESS
ADMINISTRATION TO
VEER NARMAD SOUTH GUJARAT
UNIVERSITY, SURAT
-:Submitted By:-
CHOPADA MANISH V.
T.Y.B.B.A. (SEM – VI)
Roll No.204
-:Under the guidance of:-

Ms.SUDHADHARA SAMAL
-:Submitted To:-
Principal I/c
PROF. V.B. SHAH INSTITUTE OF MANAGEMENT
R. V. PATEL COLLEGE OF COMMERCE (Eng med.)
V. L. SHAH COLLEGE OF COMMERCE (Guj med.)
&R. K. SHAH WOMEN’S ART COLLEGE.
AMROLI (SURAT)
March 2009-10
Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 1

PROF.V.B.SHAH INSTITUTE OF MANAGEMNET
R.V.PATEL COLLEGE OF COMMERCE (ENG. MED.)
V.L.SHAH COLLEGE OF COMMERCE (GUJ. MED.)&
R.K.SHAH WOMEN’S ARTS COLLEGE, AMROLI
CERTIFICATE OF THE FACULTY GUIDE
This is certifying that the project report entitled “A STUDY ON

EFFECTIVENESS OF MARKETING STRATEGY OF VOLKSWAGEN
IN GUJARAT” (Conducted on behalf of VOLKSWAGEN.DAS AUTO.
SURAT Navjivan auto square Pvt.ltd.Surat.)Submitted in partial fulfillment of
the requirement for the award of the degree of BACHELOR OF BUSINESS
ADMINISTRATION to VEER NARMAD SOUTH GUJARAT
UNIVERSITY, SURAT is record of bonafide research work carried out by
Manish Chopada V. under my supervision and guidance.
(Ms.Sudhadhara Samal) (Ms. Shehnaz R. Sheikh)

Lecture in Management Principal I/c

DECLARATION
I, Chopada Manish V, hereby declare that the project report

entitled “A STUDY ON EFFECTIVENESS OF MARKETING
STRATEGIES OF VOLKSWEGAN.” Under the guidance of
Ms.SUDHADHARA SAMAL submitted in partial fulfillment of the
requirements for the award of the degree of Bachelor of Business
Administration to Veer Narmad South Gujarat University, Surat is my
original work- research study – carried out during 5th January, 2010 to 5th
March, 2010 and not submitted for the award of any other
degree/diploma/fellowship or other similar titles or prizes to any other
institution/organization or university by any other person.
Place: AMROLI Signature

Date:
(Manish Chopada V.)

T.Y.B.B.A(Sem VI)
Roll No:-204

ACKNOWLEDGEMENT
I am very happy to express my sincere thanks to Veer Narmad

South Gujarat University, Surat to providing me such a great opportunity.
I would also like to express my sincere thanks to My College for
exposing me to such field experience. I would also thanks Ms.Shehnaz R.
Sheikh(Principal I/c) for giving me this opportunity for project work.
I am very happy to express my sincere thanks to my project
guideMs. Sudhadhara Samal , for supporting and guiding me during the tenure
of my project work and sparing her valuable time for me.
I also express my gratitude to Mr.Amar Anajwala and
Mr.Bhumin Shroff of Volkswagen, Surat, and other staff members for providing
me all necessary guidance and information pertaining to my project.
Lastly, I thank all the faculty members and friends who directly or
indirectly helped me in completion of my project work.
Date: Thanking you

Place:
Chopada Manish V.
T.Y.B.B.A. (Sem-VI)
Roll No:-204

-:PREFACE:-
I undertake writing this report of the specialization report because we all
are of the few students who are presently undertaking education in the spare of
bachelor of business administration which covers total business activities.
As a student of management, I must be encouraged by the growth and
rapid development taken place in the Automobile sector. In India, management is
growing body. Keeping in mind the ever development field of management and
great demand for marketing in our country, the university has arranged specialized
programs in many fields of management. Thus this is our moral and obligatory
duty to take this part of our studies with great enthusiasm and seriousness and give
it a due importance.
The report gives information about Effectiveness of marketing strategies
of Volkswagen in Surat. The report contains graphical representing &
interpretations with each graph and charts. For the preparation of this report I have
used simple random sampling method for our survey. This training proved to be
an experience which is required to become a true student of business
administration.
I hope this report will help both the evaluator as well as readers.
Chopada Manish V.

-: Contents :-
Sr. Particular Page

No. No.
1. Introduction 1-6
2. Theoretical Back ground 7-13
3. Problem Identification 14-16
4. Research Methodology 17-22
5. Data Analysis 23-30
6. Testing of Hypothesis 31
7. Findings 32-33
8. Suggestion 34
Reference Material 35-37

-: List of Tables & Charts :-
TA Particular Page
BLE No.
No.
1. Company’s Marketing strategies are being 23
Prepared by Whom?
2. Is Marketing strategies effective in market? 24
3. Any commitment from the customer about 25

marketing strategies?
4. Would company like to improve marketing 26

strategy after getting comments from customers?
5. Increment in selling of product by Appling 27

marketing strategy?
6. Type of marketing strategy applied by company? 28
7. After Appling marketing strategy, how much 29

inquiry company gets?
8. Any schemes from dealer, company or Ratio 30

{both}?

AUTOMOBILE INDUSTRY
The automobile industry in India—the tenth largest in the world

with an annual production of approximately 2 million units—is
expected to become one of the major global automotive industries in
the coming years. A number of domestic companies produce
automobiles in India and the growing presence of multinational
investment, too, has led to an increase in overall growth. Following
the economic reforms of 1991 the Indian automotive industry has
demonstrated sustained growth as a result of increased
competitiveness and relaxed restrictions. The monthly sales of
passenger cars in India exceed 100,000 units. Tata Motors launches its
first truck in collaboration with Mercedes-Benz.
History of Automobile Industry:
In 1953, the government of India and the Indian private sector

initiated manufacturing processes to help develop the automobile
industry, which had emerged by the 1940s in a nascent form. Between
1970 to the economic liberalization of 1991, the automobile industry
continued to grow at a slow pace due to the many government
restrictions. A number of Indian manufactures appeared between
1970-1980.Japanese manufacturers entered the Indian market
ultimately leading to the establishment of Maruti Udyog. A number of
foreign firms initiated joint ventures with Indian companies.
Challenges faced by Indian Automotive Industry in the new age:
The Indian automotive industry has been facing new challenges

due to the rapid changes taking place during the last decade. This
article discusses those challenges and initiatives taken by the
government to overcome them. The Indian auto industry is changing
rapidly. During the last decade, many international auto

manufacturers, either by themselves or in partnership with Indian
companies, have started manufacturing activities in India. The
ancillary industries have also grown in tandem. The quality of
production in small- and medium-scale industries has improved to
such an extent that they started exporting products to international
manufacturers. The major breakthrough of recent years is the
unveiling of "Nano" by Tata Motors during the auto expo 2007. This
has received worldwide attention and proved that India can not only
design an automobile of international standards but also execute the
project at a much lower cost through innovative choice of
components, materials, engine design etc. These developments in the
auto sector have given new confidence to everyone related to the auto
industry and specifically to the government which resulted in the
announcement of the Auto Policy 2006-2016 by the Ministry of Heavy
Industries. According to the Auto Policy, the Indian auto sector is
expected to grow to US$ 216 billion by 2016 and add 2.5 million new
jobs to the economy. Every year two to three million people are
expected to purchase new vehicles. Several million vehicles and
components are expected to be exported to both developed and
developing nations. To achieve these goals, it is important that the
present GDP growth rate, which is more than 8 per cent, continues to
remain at the same level for the next 8-10 years. The government is
also giving some concessions to the auto industry. To realize the
above growth predictions, it is important to overcome various
challenges the industry is facing currently. Two of the foremost
challenges are the spiraling cost of fuel and the paucity of highly
skilled manpower.
Rising oil price:

International price of crude oil is rising at an alarming rate. The
skyrocketing crude oil price rise will affect the economic growth of
most of the nations of the world including India. The prospects of
India and China of becoming economic superpower will be seriously
affected. Also, the rise in oil prices will impact the growth of global
automotive industry. Unless the use of alternative fuels increases, it is
very unlikely that the situation will change for the better. This
necessarily means that more and more investments should be directed
towards R&D, establishing mechanisms to translate R&D results into
products and their efficient manufacturing. This will also require
radical redesigning of engines.

Human resources:
The second major challenge is the creation of highly skilled
human resource required for the auto industry. Auto industry, like
many other industries is facing severe shortage of skilled technical as
well as managerial manpower. This challenge becomes all the more
daunting because faults lie at a more fundamental level of training
infrastructure and the social perception.
Summary:
The growth of auto industry in India will be contingent not just
on domestic demand, but also equally on exports. Therefore, the
present projections will become a reality if thrust is given to original
research that will yield breakthrough results. These results help in
addressing the current global concerns such as environment, fuel
efficiency, need for alternate and renewable fuels and materials etc.
This can happen only through a consortium approach where various
auto companies and academic institutions work together as in the case
of IT hardware industry. The consortium approach should be extended
to address the trained human resource shortage as well. The
government should act as a facilitator by bringing about necessary
changes in the current laws that will encourage private participation.
Finally, there should be mechanisms in place that will ensure that
there is a balance in the pool of human resources comprising research
scientists, managers, engineers, designers, technicians, and skilled and
semiskilled workers.

Introduction of Volkswagen
Company Overview
Volkswagen currently produces everything from cheap small

cars to super high-end luxury automobiles, also boasting an impressive
commercial wing that produces everything from pick-up trucks and
buses to heavy trucks. In addition to factories in twelve European
countries, Volkswagen currently has production plants in North
America, South America, Africa, and Asia. Volkswagen finances the
purchase and lease of its vehicles through a successful financial
services division. Volkswagen's business focus continues to be largely
European and the country has traditionally struggled in the US.
Volkswagen’s North American operations are more of a struggle for
the company, with the exception of the Audi brand. The VW brand
has limited North American product offerings that are expensive
compared to similar products from Japanese automakers, partially
because of the currency effects of importing cars from Europe. The
company's offerings also largely ignore the small SUV, truck, and
minivan segments. Conversely, the company's offerings match
consumer expectations much better in Europe, where the company
continues to be highly successful.

History of Volkswagen
In the early 1930s German auto industry was still largely

composed of luxury models, and the average German rarely could
afford something more than a motorcycle. Seeking a potential new
market, some auto industries begun independent projects o(people's
automobile) - Mercedes' 170H, Adler's AutoBahn, Steyr 55, Hanomag
1,3L, among others. The trend was not new, as Béla Barényi is
credited with having conceived the basic design in the middle 1920's.
Josef Ganz developed the Standard Superior (going as far as
advertising it as the "German Volkswagen"). Also, in Czechoslovakia,
the Hans Ledwinka's penned Tatra 77, a very popular car amongst the
German elite, was becoming smaller and more affordable at each
revision. In 1933, with many of the above projects still in development
or early stages of production, Adolf Hitler declared his intentions for a
state-sponsored "Volkswagen" program. Hitler required a basic
vehicle capable of transporting two adults and three children at
100 km/h (62 mph). The "People's Car" would be available to citizens
of the Third Reich through a savings scheme at 990 Reichsmark, about
the price of a small motorcycle (an average income being around
32RM a week).
Despite heavy lobbying in favor of one of the existing projects,

Hitler choose to sponsor an all new, state owned factory. The engineer
chosen for the task was Ferdinand Porsche. By then an already famed
engineer, Porsche was the designer of the Mercedes 170H, and worked
at Steyr for quite some time in the late 1920s. When he opened his
own design studio he landed two separate "Auto für Jedermann" (car
for everybody) projects with NSU and Zündapp, both motorcycle
manufacturers. Neither project come to fruition, stalling at prototype
phase, but the basic concept remained in Porsche's mind time enough,
so on 22 June 1934, Dr. Ferdinand Porsche agreed to create the
"People's Car" for Hitler.
Changes included better fuel efficiency, reliability, ease of use,

and economically efficient repairs and parts. The intention was that
ordinary Europeans would buy the car by means of a savings scheme
("Fünf Mark die Woche musst Du sparen, willst Du im eigenen
Wagen fahren" — "Save five Marks a week, if you want to drive your
own car"), which around 336,000 people eventually paid into.
Volkswagen honored its savings agreements in West Germany (but
not in East Germany) after World War II. Prototypes of the car called
the "KdF-Wagen" (German: Kraft durch Freude — "strength through
joy"), appeared from 1936 onwards (the first cars had been produced
in Stuttgart). The car already had its distinctive round shape and air-
cooled, flat-four, rear-mounted engine. The VW car was just one of
many KdF programs which included things such as tours and outings.
The prefix Volks— ("People's") was not just applied to cars, but also
to other products in Europe; the "Volksempfänger" radio receiver for
instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des
Deutschen Volkswagens mbH was established by the Deutsche
Arbeitsfront. It was later renamed "Volkswagenwerk GmbH" on 16
September 1938.
Erwin Komenda, the longstanding Auto Union chief designer,

developed the car body of the prototype, which was recognizably the
Beetle known today. It was one of the first to be evolved with the aid
of a wind tunnel, in use in Germany since the early 1920s.
The building of the new factory started 26 May 1938 in the new
town of KdF-Stadt, now called Wolfsburg, which had been purpose-
built for the factory workers. This factory had only produced a handful
of cars by the time war started in 1939. None was actually delivered to
any holder of the completed saving stamp books, though one Type 1
Cabriolet was presented to Hitler on 20 April 1938 (his 49th birthday).
War meant production changed to military vehicles, the Type

82 Kübelwagen ("Bucket car") utility vehicle (VW's most common
wartime model), and the amphibious Schwimmwagen which were
used to equip the German forces..

Theoretical Background
Marketing Strategy:
The marketing concept of building an organization around the
profitable satisfaction of customer needs has helped firms to achieve
success in high-growth, moderately competitive markets. However, to
be successful in markets in which economic growth has leveled and in
which there exist many competitors who follow the marketing
concept, a well-developed marketing strategy is required. Such a
strategy considers a portfolio of products and takes into account the
anticipated moves of competitors in the market.
The Case of Barco:

In late 1989, Barco N.V.'s projection systems division was
faced with Sony's surprise introduction of a better graphics projector.
Barco had been perceived as a leader, introducing high quality
products first and targeting a niche market that was willing to pay a
higher price. Being a smaller company, Barco could not compete on
price, so it traditionally pursued a skimming strategy in the graphics
projector market, where it had a 55% market share of the small
market. Barco's overall market share for all types of projectors was
only 4%.
Even though Barco's market was mainly in graphics projectors,

the company had not introduced a new graphics projector in over two
years. Instead, it was spending a large portion of its R&D budget on
video projector products. However, video projectors were not Barco's
market.
Barco's engineers had been working long hours on their new

projector that would not be as good as Sony's. Some people thought
they should not stop work on that product since the engineers' morale
would suffer after being told how important it was to work hard to get
the product out. However, even considering the morale of the product
team, it would not have been a good idea to introduce a product that
was inferior to that of Sony. Barco wisely stopped working on the
inferior product and put a major effort in developing a projector that
outperformed Sony's.

The Barco case illustrates several marketing strategy concepts:
Price / Selling Effort Strategies: A firm that follows a skimming

strategy seeks to be the first to introduce a product with very
good performance, selling it to the innovator market segment
and charging a premium price for it. It makes as much profit as
possible, then moves on when the competition arrives. The price
is likely to fall over time as competition is encountered. Such a
skimming strategy contrasts with a penetrating strategy, which
seeks to gain market share by sacrificing short-term profits, and
increasing the price over time as market share is gained.
Competitors have certain strengths and abilities. To succeed, a
firm must leverage its own unique abilities.
A firm should prepare defensive strategies before potential
threats arrive. If the competition surprises a firm with the
introduction of a vastly superior product, the firm should resist
the temptation to proceed with its mediocre product. A firm
never should introduce a product that is obsolete when it hits the
market.
The competition's probable response to a firm's actions should
be considered carefully.
Marketing Research for Strategic Decision Making:

The two most common uses of marketing research are for
diagnostic analysis to understand the market and the firm's current
performance, and opportunity analysis to define any unexploited
opportunities for growth. Marketing research studies include consumer
studies, distribution studies, semantic scaling, multidimensional
scaling, intelligence studies, projections, and conjoint analysis. A few
of these are outlined below.
Semantic scaling: a very simple rating of how consumers

perceive the physical attributes of a product, and what the ideal
values of those attributes would be. Semantic scaling is not very
accurate since the consumers are polled according to an ordinal
ranking so mathematical averaging is not possible. For example,
8 is not necessarily twice as much as 4 in an ordinal ranking
system. Furthermore, each person uses the scale differently.
Multidimensional scaling (MDS) addresses the problems
associated with semantic scaling by polling the consumer for
pair-wise comparisons between products or between one
product and the ideal. The assumption is that while people
cannot report reliably which attributes drive their choices, they
can report perceptions of similarities between brands. However,
MDS analyses do not indicate the relative importance between
attributes.
Conjoint analysis infers the relative importance of attributes by
presenting consumers with a set of features of two hypothetical
products and asking them which product they prefer. This
question is repeated over several sets of attribute values. The
results allow one to predict which attributes are the more
important, the combination of attribute values that is the most
preferred. From this information, the expected market share of a
given design can be estimated.
Marketing strategy is a method of focusing an organization's

energies and resources on a course of action which can lead to
increased sales and dominance of a targeted market niche. A
marketing strategy combines product development, promotion,
distribution, pricing, relationship management and other elements;
identifies the firm's marketing goals, and explains how they will be
achieved, ideally within a stated timeframe. Marketing strategy
determines the choice of target market segments, positioning,
Marketing mix, and allocation of resources. It is most effective when
it is an integral component of overall firm strategy, defining how the
organization will successfully engage customers, prospects, and
competitors in the market arena. Corporate strategies, corporate
missions, and corporate goals. As the customer constitutes the source
of a company's revenue, marketing strategy is closely linked with
sales. A key component of marketing strategy is often to keep
marketing in line with a company's overarching mission statement.
Basic theory:
1. Target Audience
2. Proposition/Key Element
3. Implementation

Tactics and actions:
A marketing strategy can serve as the foundation of a marketing

plan. A marketing plan contains a set of specific actions required to
successfully implement a marketing strategy. For example: "Use a low
cost product to attract consumers. Once our organization, via our low
cost product, has established a relationship with consumers, our
organization will sell additional, higher-margin products and services
that enhance the consumer's interaction with the low-cost product or
service."
A strategy consists of a well thought out series of tactics to

make a marketing plan more effective. Marketing strategies serve as
the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are
generally tested for measurable results.
A marketing strategy often integrates an organization's

marketing goals, policies, and action sequences (tactics) into a
cohesive whole. Similarly, the various strands of the strategy , which
might include advertising, channel marketing, internet marketing,
promotion and public relations can be orchestrated. Many companies
cascade a strategy throughout an organization, by creating strategy
tactics that then become strategy goals for the next level or group.
Each one group is expected to take that strategy goal and develop a set
of tactics to achieve that goal. This is why it is important to make each
strategy goal measurable.
Marketing strategies are dynamic and interactive. They are

partially planned and partially unplanned

Types of strategies:
Marketing strategies may differ depending on the unique
situation of the individual business. However there are a number of
ways of categorizing some generic strategies. A brief description of
the most common categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms

are classified based on their market share or dominance of an
industry. Typically there are four types of market dominance
strategies:
o Leader
o Challenger
o Follower
o Nicher
Porter generic strategy - strategy on the dimensions of strategic
scope and strategic strength. Strategic scope refers to the market
penetration while strategic strength refers to the firm’s
sustainable competitive advantage. The generic strategy
framework (porter 1984) comprises two alternatives each with
two alternative scopes. These are Differentiation and low-cost
leadership each with a dimension of Focus-broad or narrow.
o Product differentiation (broad)
o Cost leadership (broad)
o Market segmentation (narrow)
Innovation strategies - This deals with the firm's rate of the new
product development and business model innovation. It asks
whether the company is on the cutting edge of technology and
business innovation. There are three types:
o Pioneers
o Close followers
o Late followers
Growth strategies - In this scheme we ask the question, ―How
should the firm grow?‖ There are a number of different ways of
answering that question, but the most common gives four
answers:
o Horizontal integration
o Vertical integration
o Diversification
o Intensification

A more detailed scheme uses the categories:
Prospector
Analyzer
Defender
Reactor
Selling effort strategies(Price effort strategies):

There are total four classic price/selling effort strategies:
Selling Price
Effort Low High
Classic Skim Strategy

Low Necessity Goods
Vulnerable to new entrants
Classic Penetration Luxury Goods

High Strategy
In general, products are clustered in the low-low or high-high

categories. If a product is in a mixed category, after introduction it will
tend to move to the low-low or high-high one.
Increasing the breadth of the product line as several advantages.

A firm can better serve multiple segments, it can occupy more of the
distributors' shelf space, it offers customers a more complete selection,
and it preempts competition. While a wider range of products will
cause a firm to cannibalize some of its own sales, it is better to do so
oneself rather than let the competition do so.

The drawbacks of broad product lines are reduced volume for
each brand (cannibalization), greater manufacturing complexity,
increased inventory, more management resources required, more
advertising (or less per brand), clutter and confusion in advertising for
both customers and distributors.
To increase profits from existing brands, a firm can improve its

production efficiency, increase the demand through more users, more
uses, and more usage. A firm also can defend its existing base through
line extensions (expand on a current brand), flanker brands (new
brands in an existing product area), and brand extensions.

Problem Identification
CONCEPT OF PROBLEM:-
The first step in research is formulating a research
problem. It is most important stage in applied research as poorly
defined problems will not yield useful results. It is rightly said that ―a
problem is the half-solved‖.
It is difficult to lay down any concise prescription
for recognizing problem. A person with an inquisive nature and the
necessary background would recognize a problem or an opportunity in
less time than another who lacks these qualities. Once the researcher
has identified two or more than two problems or opportunity, the next
question he should be concerned with is—which of the problem is to
be selected?
―A research problem, in general, refers to some
difficulty which a researcher experiences in the context of either a
theoretical or practical situation and wants to obtain a solution for the
same.‖
We can, state the components of the research
problem as under:
[1] There must be an individual or a group which
has some difficulty or the problem.

[2] There must be some objectives to be attained at.
If one wants nothing, one cannot have a problem.
[3] There must be alternative means (or the courses
of action) for obtaining the objective one wish to attain. This means
that there must be at least two means available to a researcher for if he
has no choice of means, he cannot have a problem.
SCOPE OF THE STUDY:-
For the study I went to Volkswagen car dealer in Surat

city.
I have selected the subject entitle ―A study on effectiveness
of marketing strategies of Volkswagen.‖ And my scope is limited only
to the Gujarat state and has not considered the entire Gujarat state due
to the time limitation of two months. For the study we are going to
Volkswagen car dealer.
OBJECTIVE OF THE STUDY:-
I selected the particular topic a study on effectiveness of

marketing strategies of Volkswagen Company. In order to identify
effectiveness of marketing strategies.
On the basis of this study the Company can make
improvement in current marketing strategies where it needed and
company can identify and create more need which helps in increase
growth of company and improve image of company.
Objectives:-
To identify effectiveness of company’s marketing strategies.
To improve marketing strategy of company.

To Identify and create need.
SIGNIFICANCE OF THE STUDY:-
It helps to company to know whether their current marketing

strategies are effective or not.
This study plays important role for the company to undertake
development task.
This survey makes products progressive for the company.
LIMITATION OF THE STUDY:-
During my entire projects study I tried my best to

make my research study and my report qualitative but during my
project work the following limitations were faced by me:
1. Time period allowed for the study i.e. two months were very
short.
2. It may happen that some respondent gave careless response.
3. Within two months, it is hard to cover large area.
4. Sample unit is limited.

Research Methodology
Meaning of Research:-
Research in common parlance refers to a search for
knowledge. One can also define research as a scientific and systematic
search for pertinent information on a specific topic. In fact, research is
an art of scientific investigation. The advanced learner’s dictionary of
Current English lays down thy meaning of the research as:
―A careful investigation or inquiry especially
through search for new facts in any branch of knowledge‖
Redman and Mory define the research as ―A
systematized effort to gain new knowledge‖
―Research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting,
organizing, evaluating date; making deductions and researching
conclusions.‖
MARKETING RESEARCH:-
―Marketing Research is the function which links the

consumer, customer and the public to the marketer through
information—information used to identify and define the marketing
opportunities and problems; generate, refine and evaluate marketing
actions; monitor marketing performance; and improve understanding
of market as a process.‖

Marketing research specifies the information
required to address these issues; designs the method for collecting
information; manages and implements the data collection process;
analyses the results; and communicates the findings and their
implications. My marketing Research is on Brand awareness.
However, there are also some limitations of
marketing research like it is not exact science and is too faulty and
superficial in industry.
THE RESEARCH PROCESS:-
The Marketing research process involves a number

of interrelated activities which don’t rigidly follow a particular
sequence. Followings are the various steps in the research
methodology process:
[1] Formulating the research problem.

[2] Choice of research design.
[3] Determining sources of data.
[4] Designing data collection forms.
[5] Determining sampling design and sampling size.
[6] Organizing and conducting the field survey.
[7] Processing and analyzing the collected data.
[8] Preparing the research report.

RESEARCH DESIGN:-
―Research design is the plan, structure and strategy

of investigation conceived so as to obtain answers to research
questions and to control variance.‖
The definition consists of three important terms—
plan, structure and strategy. The plan is an outline of the research but
structure of the research is a more specific outline and the strategy
shows how the research will be carried out.
TYPES OF RESEARCH DESIGN:-
Research design can be grouped in three board

categories:
[1] Exploratory Research:-
In the case of exploratory research, the focus is on

the discovery of ideas. In a business where sales have been declining
for the past few months, the management may conduct exploratory
research to find the most likely cause. An exploratory study is
generally based on the secondary data that are readily available since
the objective of the research is to generate new ideas, respondents
should be given sufficient freedom to express themselves.
[2] Descriptive studies:-
Descriptive studies are undertaken in many

circumstances. When the researcher is interested in knowing the

characteristics of certain groups such as age, sex, occupation then a
descriptive study may be necessary in other use, when researcher is
interested in knowing the proportion of the people in a given
population who have behaved in a particular manner. The descriptive
studies are factual and very simple. It is also well structured.
Descriptive studies can be divided into two categories—cross
sectional and longitudinal. Cross sectional study is concerned with a
sample of elements i.e. field studies and surveys while longitudinal
studies are based on panel data and panel methods which is a sample
of respondents who are reinterviewed from time to time.
[3] Causal Designs:-
A causal design investigates the cause and effect

relationship between two or more variables. The design of causal
research is based on reasoning along well tested lines. The method of
agreement and the method of differences are use in causal research
formulated by john mill.
TYPES OF DATA COLLECTION:-
There are mainly two types of data collection method:
[1] Primary data:-
Data which are collected at first hand is primary

data for collecting primary data, There are four methods i.e.
observation method, laboratory experiment method, field experiment
method and survey method. From that I select survey method. For

survey, Questionnaire is necessary which consists the various
questions relating with the research. The questionnaire should be
designed well so the study become easy. Questionnaire survey can be
done through personal interview, telephonic interview and mail
questionnaire method.
[2] Secondary data:-
Any data which have been gathered earlier for

some other purpose are secondary data in the hands of the data in the
hands of the marketing researcher. Thus, primary data collected by
one person may become the secondary data for another. Secondary
data saves the time, cost and resources of the researcher. But
secondary data should not be outdated. The sources of the secondary
data are accounting records, sales force reports, internal experts, other
responds of company and government publications, none—
government and organizations publications etc.
SAMPLING PLAN & METHOD:-
I) Sampling unit:-
The target population is everyone in the

population has equal chance of sampling. The survey was conducted
in Gujarat state & is done in four of city.

II) Sampling size:-
P= 0.80, q =0.20
e =0.05
Hypothesis =100UNITS
III) Sampling Method:-

It indicates how the sample units are selected. Here I have
select dealer of Volkswagen car to know effectiveness of marketing
strategies of company and I have to do survey to with the help of
dealer. So we used random sampling method.

Q.1: Company’s Marketing strategies are being prepared by
Whom?
Table No: 1
Answers Internal External Total
body body
Respondent 68 32 100
Percentage 68 32 100
Chart No:1
Comment : -
In above chart 75% respondent says that the their

marketing strategies prepared by Internal body and other 25%
respondent says that their marketing strategies prepared by external
body.

Q.2 : Is Marketing strategies effective in market?
Table No: 2
Answers Yes No Total
Chart No:2
Comment : -
In above chart 89% respondent says that their
marketing strategies are effective in market and other 11%
respondents says that their marketing strategies are not effective
in market.

Q.3: Any commitment from the customer about marketing
strategies ?
Table No: 3
Chart No:3
Comment : -
In above chart 21% respondent says that they are
getting comments from customer on their marketing strategies and
other 79% respondents says that they are not getting comments on
their marketing strategies from customer.

Q.4: Would company like to improve marketing strategy
after getting comments from customers?
Table No: 4
Respondent 16 5 20
Percentage 76.19 23.81 100
Chart No:4
Comment : -
In above chart 76% respondent from who getting
comments from customer believe that their company would like to
improve their marketing strategies then other 24% respondent from
who getting comments from customer believe that their company
would not like to improve their marketing strategies.

Q.5:Increment in selling of product by Appling marketing
strategy?
Table No: 5
Answers High Medium Low Total
Respondent 47 42 11 100
Percentage 47 42 11 100
Chart No:5
Comment : -
In above chart 47% respondent accept that they get
high increment in selling of product after applying marketing
strategies ,42% respondent accept that they get medium increment in
selling of product after applying marketing strategies and other 11%
respondent accept that they get low increment in selling of product
after applying marketing strategies.

Q.6: Type of marketing strategy applied by company?
Table No: 6
Answers Rapid Low Rapid Low Total
skimming skimming penetration penetration
Respondent 50 25 25 0 100
Percentage 50 25 25 0 100
Chart No:6
Comment : -
In above chart 50% respondent says that their
company applied Rapid skimming strategy, 25% respondent says that
their company applied Low skimming strategy, 25% respondent says
that their company applied Rapid penetration strategy.

Q.7: After Appling marketing strategy, how much
inquiry company gets?
Table No: 7
Answers High Medium Low Total
Chart No:7
Comment : -
In above chart 78% respondent believe that they
get high number of inquiry from customer after applying marketing
strategies, 16% respondent believe that they get medium number of
inquiry from customer after applying marketing strategies and 6%
respondent believe that they get low number of inquiry from customer
after applying marketing.

Q.8: Any schemes from dealer, company or Ratio {both}?
Table No: 8
Answers All from All from Ratio Total
company dealer
Chart No:8
Comment : -
In above chart 25% respondent says that all scheme
provide by their dealer and 75% respondent says that scheme
introduce by ratio (dealer and company).

Testing of Hypothesis
I have taken 10 samples before survey for Pilot study in

which I knew through 8 respondents that Marketing strategy of
Volkswagen is effective and through 2 respondents that Marketing
strategy of Volkswagen is not effective.
P = 0.80
Q = 0.20
I have taken 100 sample sizes for survey; I have known

through 89 respondents that ―Marketing strategies of Volkswagen is
effective‖.
n = 100
p = x/n
= 89/100
= 0.89
Statement for Hypothesis Testing :
H0 = Marketing strategies of company is 80% effectiveness.
H1 = Marketing strategies of company is 20% not effectiveness.
Z cal. = | p-P |
PQ/n
= |0.89-0.80|
0.80 X 0.20/100
= 0.09/0.0
Z cal. = 2.25
Z cal.> 1.96 so, we do not accepted null hypothesis.

Findings
75% respondent says that the their marketing strategies

prepared by Internal body and other 25% respondent says that
their marketing strategies prepared by external body.
89% respondent says that their marketing strategies are

effective in market and other 11% respondents says that their
marketing strategies are not effective in market.
21% respondent says that they are getting comments from

customer on their marketing strategies and other 79%
respondents says that they are not getting comments on their
marketing strategies from customer.
76% respondent from who getting comments from customer

believe that their company would like to improve their
marketing strategies then other 24% respondent from who
getting comments from customer believe that their company
would not like to improve their marketing strategies.
47% respondent accept that they get high increment in selling of

product after applying marketing strategies ,42% respondent
accept that they get medium increment in selling of product
after applying marketing strategies and other 11% respondent
accept that they get low increment in selling of product after
applying marketing strategies.

50% respondent says that their company applied Rapid
skimming strategy, 25% respondent says that their company
applied Low skimming strategy, 25% respondent says that their
company applied Rapid penetration strategy.
78% respondent believe that they get high number of inquiry

from customer after applying marketing strategies, 16%
respondent believe that they get medium number of inquiry
from customer after applying marketing strategies and 6%
respondent believe that they get low number of inquiry from
customer after applying marketing.
25% respondent says that all scheme provide by their dealer and
75% respondent says that scheme introduce by ratio (dealer and
company).

Suggestions
I think Company should take following actions to make

more effective Marketing strategies as compare to the earlier one.
1. Volkswagen should do more Advertisement in Gujarat state

and company should recruit more sales executive.
2. Company introduce its new car ―polo‖ like this it should

make more new car model with low price and good quality.
3. Company should open maximum showroom in possible city

so that its car can be available in maximum city of Gujarat
and so that it can get fast growth.

A)Bibliography
Websites:
- www.google.com
- www.wikipedia.org
Company informations:
- www.volkswagen.co.in

B) Annexure
QUESTIONNAIRE
NAME: __________________________________
AREA: ________________
AGE: _________________
Gender: ___________________
E-mail ID: _____________________________
Dealer: _________________________________
Please tick [√] the option, which you find

appropriate.
(This survey is regarding to effectiveness of marketing strategy of
Volkswagen)
1. By whom your company’s marketing strategies are being

prepared?
[ ] Internal body
[ ] Expert body (External)
2. Is your marketing strategy effective in market?

[ ] Yes
[ ] No
3. Is there any commitment from the customer about

marketing strategy?
[ ] Yes
[ ] No
4. If yes, then would you like to make improvement in your

marketing strategy as per customer view ?
[ ] Yes
[ ] No
5. How much increment in selling of product by applying

marketing strategies?
[ ] High
[ ] Medium
[ ] Low
6. Which type of marketing strategy company applied?

[ ] Rapid skimming
[ ] Low skimming
[ ] Rapid penetration
[ ] Low penetration
7. How much inquiry do you get after applying above

strategy?
[ ] High
[ ] Medium
[ ] Low
8. Is there any scheme from dealer side or all from company

side?
[ ] All from company
[ ] All from dealer
[ ] Ratio
9. Suggestions for marketing strategy (If any?).
_______________________________________________
_______________________________________________
_______________________________________________
Thank You!

Effectiveness of Marketing Strategyby Sagar

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A STUDY

A Project Report Submitted in partial Fulfillment of the

-:Under the guidance of:-

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 1

CERTIFICATE OF THE FACULTY GUIDE

This is certifying that the project report entitled “A STUDY ON

(Ms.Sudhadhara Samal) (Ms. Shehnaz R. Sheikh)

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 2

I, Chopada Manish V, hereby declare that the project report

Place: AMROLI Signature

(Manish Chopada V.)

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 3

I am very happy to express my sincere thanks to Veer Narmad

Date: Thanking you

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 4

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 5

Sr. Particular Page

2. Theoretical Back ground 7-13

3. Problem Identification 14-16

4. Research Methodology 17-22

5. Data Analysis 23-30

Reference Material 35-37

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 6

2. Is Marketing strategies effective in market? 24

3. Any commitment from the customer about 25

4. Would company like to improve marketing 26

5. Increment in selling of product by Appling 27

6. Type of marketing strategy applied by company? 28

7. After Appling marketing strategy, how much 29

8. Any schemes from dealer, company or Ratio 30

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 7

The automobile industry in India—the tenth largest in the world

History of Automobile Industry:

In 1953, the government of India and the Indian private sector

Challenges faced by Indian Automotive Industry in the new age:

The Indian automotive industry has been facing new challenges

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 9

Rising oil price:

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 10

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 11

Volkswagen currently produces everything from cheap small

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 12

In the early 1930s German auto industry was still largely

Despite heavy lobbying in favor of one of the existing projects,

Changes included better fuel efficiency, reliability, ease of use,

Erwin Komenda, the longstanding Auto Union chief designer,

War meant production changed to military vehicles, the Type

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 14

The Case of Barco:

Even though Barco's market was mainly in graphics projectors,

Barco's engineers had been working long hours on their new

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 16

Price / Selling Effort Strategies: A firm that follows a skimming

Marketing Research for Strategic Decision Making:

Semantic scaling: a very simple rating of how consumers

Marketing strategy is a method of focusing an organization's

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 18

A marketing strategy can serve as the foundation of a marketing

A strategy consists of a well thought out series of tactics to

A marketing strategy often integrates an organization's

Marketing strategies are dynamic and interactive. They are

Volkswagen.Das Auto. (Navjivan auto square pvt.ltd, surat) Page 19