You are on page 1of 19

Group No:

06

ISPE SEMINAR REPORT ON VOLKSWAGEN MARKETING STRATERGY IN INDIA Submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION 2010-11 Under The Guidance of Dr. T.V.G.Sarma M.A; M.Phil; Ph.D (Eco) Mr. P.Naresh Kumar M.Sc (Quan.Eco); M.Sc (Stat); M.Phil Submitted by

Sr. No. 1 2 3

Name SWETA . GAIKWAD PRIYANKA P. PATIL SURAJ S. PATIL

Roll. No

Exam. No

177

Chh. Shahu Institute of Business Education & Research University Road, Kolhapur-416 004

CONTENTS

1. INTRODUCTION 2. HISTORY OF COMPANY 3. CHAKAN PLANT OF VOLKSWAGEN 4. MARKETING STRATERGY IN INDIA

5. FINANCIAL HIGHLIGHT 6. PROMOTION, AIMS & CHALLENGES 7. MODELS OF VOLKSWAGEN 8. INNOVATION 9. AWARDS IN INDIA 10. CONCLUSION

INTRODUCTION
The world headquarters of Volkswagen are located in its home country in Wolfsburg, Germany. Volkswagen is currently Europe's largest automaker. Volkswagen is now largest car manufacturing company in Europes which is one of the proud feeling to company. Volkswagen has had a market share over 20 percent. It means if total car market produced 100 car in that 20 car produced by Volkswagen company. Volkswagen officially ranks as the 3rd largest manufacturer as measured by OICA in 2009. (Organisation Internationale des Constructeurs d 'Automobiles) In 2010, Volkswagen posted record sales of 6.29 million vehicles, with its global market share at 11.4%.that means Volkswagen held 11.4% global market share of total market share.

HISTORY OF COMPANY

In 1930 Ferdinand Porsche made his company. The word "Volkswagen" means "people's car. It means all type of people can use Volkswagen company car because it have all levels of car for different level like middle level, high level people thats why it called as people car.

Before the 1930's, there had been much effort to create simple cars that everyone could afford, but none met with profound success.

After the end of the Second World War, in mid June 1945, responsibility for Volkswagenwerk is placed in the hands of the British Military Government. mass production of the Volkswagen Beetle is started.

In 1952 dealership opened doors in England which was the first there. In 1951 deluxe version of the Beetle was exported. In 1952 the American deluxe Beetles got hydraulic brakes.

One special thing about beetle car is use by Alfred Hitler in second world war thats why it got very important as compare to other car.

On March 8th, 1953 the Type 2 goes into production. The Volkswagen Bus, still today known to many as the "VW Bully

EXPERT OPINION ABOUT VOLKSWAGEN IN INDIA


 We are fairly new in Indian market. The brand awareness of Volkswagen is low. We have to raise awareness, create and improved the brand (Lutz Kothe, Chief General Manager, Marketing and Public Relations, Volkswagen India) He is saying that Volkswagen company new in Indian car market there is not much awareness in brand they are want to improve brand awareness by various way

 Volkswagen is committed to the Indian market, the proof of which is constant investment and growth that we provide through various project. India is one of our key markets and we know that the future harbors a huge potential. (Jochem Heizmann, member of the management board, Volkswagen India) He is saying that Volkswagen company make more efforts and Indian car market committed for that , the proof of which is constant investment in in various project. India is one of the key market , which help to improve of our brand not only in India but all over world.

JOINT VENTURE

Volkswagen entered the Indian passenger car market in 2001 by launching its car brand koda. the Skoda brand is launch Octavia car in Indian car market. In 2007, two of its other brands AUDI & VOKSWOGEN launch in India. Volkswagen group India emphasized on all aspect of marketing mix including 4P 1. Product- That concept which may be sold.
The word product qualifies a marketing concept. A product is more than a person, place or thing. Nothing is more important to a marketing strategy than the "product concept".

y y

2. Price- To sell in a market


A market price has nothing to do with you or your company. Its incredible how few people fail to appreciate this simple truth

3. place - A gathering where people buy and sell


Place can mean geographic and demographic, or in others words, where and who. It can also be the way you take your product to the market (distribution).

4. promotion. - The process of trading in a market


Ultimately, you will be ready to promote your product: to find new prospects and draw them in. The types of promotion that are available to the strategic marketer have not changed much since the invention of the telephone (telemarketing).

Volkswagen group mainly catered to the luxury segment of Indian car market.

CHAKAN PLAN PUNE

The Volkswagen plant in Chakan occupies a total area of over 2.3million square meters (575 Acres), Chakan is one of the biggest car plant of Volkswagen in India which occupy large area of land near in Pune

The plant has a production capacity of 1, 10,000 vehicles a year. In this plant every year produced 1,10,000 vehicles .

. The plant was built with an investment commitment of INR 3800 Cores. this plant invested very big amount which is approximate three thousand eight hundred cores rupee.

Skoda Fabia & VW Polo made in this plant.

OWNERSHIP
Volkswagen is a publicly traded company, which issued 1. Ordinary shares - Ordinary shares are the most common kind of shares. An ordinary share gives the holder voting rights in the company and entitles the person to all dividend distributions as a part-owner of the company.

2. Preference shares- Preference shares allow holders to be paid dividends before ordinary shareholders and they also have priority over asset claims if the company goes bust. The downside is that preference shareholders have a fixed dividend and only limited voting rights with respect to company affairs The ownership structure is complex. The following table shows the current shareholder structure

Shares
50.76% as of 30 Jan 2009 2.37% as of 30 Jan 2009 20.26% as of 16 Feb 2009 17% as of 18. Dec 2009 9.61%

Held by
Porsche Automobile Holding Porsche Holding GmbH State of Lower Saxony Emirate of Qatar widely held

VOLKSWAGEN MARKETING STRTERGY IN INDIA

Volkswagen entered the Indian market in 2001Volkswagen entered the Indian passenger car market in 2001 by launching its car brand Skoda. The Skoda brand is launch Octavia car in Indian car market.

Volkswagen group India had two group companies: 1. Volkswagen India- Volkswagen Group India is a part of Volkswagen AG, which is globally represented by 9 brands- Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen Passenger Cars. The product range extends from low-consumption small cars to luxury class vehicles and trucks. The Group operates 60 production plants around the world. In total more than 370,000 employees produce more than 26,600 vehicles or are involved in vehicle-related services each working day.
2.

VGSIPL- Volkswagen Group Sales India Private Limited operates a manufacturing plant at Chakan, near Pune, Maharashtra with a annual capacity of 110,000 vehicles for production of Volkswagen branded vehicles and also operates a manufacturing/assembly plant in Aurangabad, Maharashtra which is also shared by koda Auto India Private Limited for production of Audi branded vehicles. The new plant at Chakan will also be used by SAIPL to assemble the koda Fabia.

MEANING MARKETING STRATGY

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable 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. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Volkswagen group India emphasized on all aspect of marketing mix including 4P 1. Product- That concept which may be sold. The word product qualifies a marketing concept. A product is more than a person, place or thing. Nothing is more important to a marketing strategy than the "product concept". 2. Price- To sell in a market A market price has nothing to do with you or your company. Its incredible how few people fail to appreciate this simple truth 3. place - A gathering where people buy and sell Place can mean geographic and demographic, or in others words, where and who. It can also be the way you take your product to the market (distribution). 4. Promotion. - The process of trading in a market Ultimately, you will be ready to promote your product: to find new prospects and draw them in. The types of promotion that are available to the strategic marketer have not changed much since the invention of the telephone (telemarketing).

PRODUCT LAUNCH
y Skoda auto India entered Indian car market in 2001 by setting up a plant at Shendra. KODA AUTO INDIA PRIVATE LIMITED, more commonly referred to as SKODA AUTO INDIA, established November 2001, is a fully owned subsidiary of the Czech automotive manufacturer Skoda Auto y In March 2007, AUDI INDIA was set up as division of VGSIPL. AUDI INDIA is the wholly owned subsidiary of German automobile manufacturer Audi. Audi's main competitors in the Luxury vehicles segment in the Indian Automobile Industry are Mercedes-Benz, BMW, Jaguar, Bentley and Volvo. Audi has been selling Luxury cars in India since 2004, however the Audi India was established in March 2007 as a division of Volkswagen Group Sales India Audi India uses KODA AUTO INDIA PRIVATE LIMITED manufacturing facilities in Aurangabad, Maharashtra to assemble the Audi A4 and Audi A6 models locally.  In March 2009, VOLKSWAGEN INDIA & SKODA AUTO INDIA started a joint manufacturing plant at Chakan, near Pune.   In mid 2009, Audi India assembled only two model A4 & A6 in India In late 2009, Volkswagen Group India was marketing three different brands including : Audi, Skoda & Volkswagen.

Volkswagen Financial Highlights (2007-09) (in Rupee)

2009 Sales revenue Operating profit Profit before tax Profit after tax Net cash flow Net liquidity on Dec 31 1,13,808 6,333 6,608 4,688 -2,679 8,039

2008 1,08,897 6,151 6,543 4,122 7,109 13,478

2007 1,04,875 2,009 1,793 1,955 5,631 7,133

Volkswagen Third Quartile Results (in millions)

Q3 2009 Sales Revenue Operating Profit Profit before tax Profit after tax Net cash flow Net liquidity on Sept 30 25,956 278 262 161 791 13,391

Q3 2008 28,932 1,485 1,481 1,161 -2,408 11,767

% change -10.3 -81.3 -82.3 -86.1 + 13.8

PRICE
LUXURY SEGMENT- Luxury vehicle is a marketing term for a vehicle that provides luxury pleasant or desirable features beyond strict necessityat increased expense. The term suggests a vehicle with greater equipment, performance, construction precision, comfort, design ingenuity, technological innovation, or features that convey brand image, cachet, status, or prestigeor any other discretionary feature or combination of features.

CARS
POLO VENTO JETTA

PRICE RANGE
4.57 to 7.06 lacks 6.99 to 9.24 lacks 12.99 to 15.92 lacks 19.21 lacks 21.23 lacks

PASSAT BEETLE

AIMS & CHALLENGES

AIMS - Our aim has been to break away from the communication clutter by being innovative &
refreshing with the way we narrate our brand story to the customer. Volkswagen, one of the largest car manufacturers in Europe, is betting big on India with its small car portfolio. Though India contributes a mere 0.3% to the global sales of Volkswagen group, the company is planning to increase its market share in the country by 8 to 10% in the next four-to-six years from 1.35% now on the back of its highest selling Skoda Fabia and soon to be launched Polo. Volkswagen Group is banking on India in a big way for their growth in the future. Experts predict a huge increase in the overall demand for cars in India from 1.4 million units in 2009 to more than 2 million cars per year by 2014. As a part of the market development Volkswagen Group aims to increase their market share by 8-10% within the next four to six years, Kurt Rippholz, spokesperson, Volkswagen group said. German auto maker said that it aims to sell one lakh units in the Indian market by 2014, largely on the back of mass-market model Polo which it plans to launch next year. The company said the launch of Polo in both hatchback and sedan models in 2010 will help it move beyond the narrow confines of being viewed as a brand catering exclusively for the upper segment. Polo will be manufactured in the companys Chakan plant near Pune and the company is now undertaking pre-production testing, Garg said. The Rs 3,800 Crore Chakan plant, which opened in March this year, has an annual capacity of 1.10 lakh units. Volkswagen had sold 1,566 units in India during 2008. The company currently sells its sedan Jetta and Passat in the country, both assembled at the Chakan plant.

CHALLENGES
Preparing for global challenges
Today more than ever, global challenges such as climate change and scarce resources demand sustainable solutions from industry and society that go beyond the usual boundaries of sectors and segments. As a globally active Group, Volkswagen is addressing these challenges with a commitment to using them as an opportunity to develop convincing solutions and use the findings in its strategic positioning For many years now the Volkswagen Group has been employing various methods to envisage the future and thereby enhance its competitive position. These include early warning systems, trend research and future research, as well as drawing up scenarios and forecasts. The timely identification of impending challenges and the assessment of risks and opportunities provide the basis for strategic decision-making. In all of this, the Volkswagen Group brings to the table a corporate culture that has evolved and been proven over decades: a culture marked by sustainability, responsibility and far-sighted strategic management, as currently reflected in the recently modified Group strategy "18plus".

The financial and structural crisis Particularly at a time like this, in the midst of an unparalleled global financial and economic crisis, commercial success can only be achieved through a far-sighted approach coupled with far-reaching solutions. In our view, the dramatic developments unfolding worldwide are first and foremost a crisis of trust, which leaves the auto industry as a whole facing the greatest challenge in its history. The Volkswagen Group has adapted its "Strategy 2018" to the current circumstances and believes it has every chance of emerging from the crisis stronger than ever. To this end we will be driving forward our strategic measures with the aim of further improving our competitive position at brand, regional and divisional levels. The key to this lies in the core topic of the future: "Green Mobility". And by investing in state-of-the-art green technologies, the Volkswagen Group will become the most environmentally friendly automaker in the world.

Globalisation and safeguarding local production The dense web of international links that characterises globalised economic and trading relations leaves the Volkswagen Group facing particularly demanding challenges, above all in times of global financial and economic crisis. But while our presence in all of the world's main involve a higher level of risk, it also offers better prospects for Health and safety The topic of health and safety has been on the corporate social responsibility agenda of automakers since well before the climate debate began. For decades now, Volkswagen has been a role model of active safety in terms of both occupational and road safety. But as a manufacturer, the Group has only a limited influence on issues such as infrastructure, regulations and road conditions. What we can do, however, is step up our efforts to enhance both the active and passive safety of our vehicles. Measures here extend from vehicle-related safety systems that help to avoid accidents, all the way to effective means of mitigating the consequences of an accident not least through the targeted use of bodywork deformation or airbag systems. No less challenging and essential is the global deployment of occupational safety standards that we are progressively tightening up at our plants in the various regions. Demographic change and employment Then there is the global challenge of demographic change: while birth rates continue to rise in threshold and developing countries, the proportion of older and elderly people in industrialised nations is growing, while birth rates are falling. This has far-reaching consequences for the economic and social development of these countries from consumer behaviour patterns, via the available pool of labour and the training of younger generations, all the way to provision for old age and social security systems growth. marketplaces does

TECHNIQUES
Electronic injection system.Fuel injection is a system for mixing fuel with air in an internal combustion engine. It has become the primary fuel delivery system used in automotive petrol engines, having almost completely replaced carburetors in the late 1980s.A fuel injection system is designed and calibrated specifically for the type(s) of fuel it will handle. Most fuel injection systems are for gasoline or diesel applications. With the advent of electronic fuel injection (EFI), the diesel and gasoline hardware has become similar. EFI's programmable firmware has permitted common hardware to be used with different fuels.Carburetors were the predominant method used to meter fuel on gasoline engines before the widespread use of fuel injection. A variety of injection systems have existed since the earliest usage of the internal combustion engine. Multipoint fuel injection system (MPFI). Multi point fuel injection or MPFI uses several injectors, normally respective to the number of engine cylinders and placed in the inlet port of each cylinders.It is to be noted that fuel spaying is taking place out side of the cylinder at the correct time according to the piston position inside the cylinder.There will be electronic control unit or ECU which will be receiving feed back from several sensors like engine speed sensor, fly wheel position sensor, vehicle speed sensor, atmospheric temp. sensor, accelerator pedal position sensor intake airflow sensor. This ECU will control the correct amount of fuel to be injected and the proper time at which the fuel will be injected at any speed and load condition. This will ensure maximum power output at minimum fuel. Electronic control system. In automotive electronics, electronic control unit (ECU) is a generic term for any embedded system that controls one or more of the electrical systems or subsystems in a motor vehicle.Other terms for ECU include electronic control module (ECM), central control module (CCM), control unit, or control module. Taken together, these systems are sometimes referred to as the car's computer. (Technically there is no single computer but multiple ones.)Some modern motor vehicles have up to 80 ECUs. Embedded software in ECUs continue to increase in line count, complexity, and sophistication. Managing the increasing complexity and number of ECUs in a vehicle has become a key challenge for original equipment manufacturers (OEMs).

Common rail fuel injection system. Common rail direct fuel injection is a modern variant of direct fuel injection system for petrol and diesel engines Common rail fuel injector On diesel engines, it features a high-pressure (over 1,000 bar/15,000 psi) fuel rail feeding individual solenoid valves, as opposed to low-pressure fuel pump feeding unit injectors (Pumpe/Dse or pump nozzles). Third-generation common rail diesels now feature piezoelectric injectors for increased precision, with fuel pressures up to 1,800 bar/26,000 psi.

Engine management system.


The Engine Management System (EMS) is responsible for controlling the amount of fuel being injected and for adjusting the ignition timing. Optimum functioning of the EMS assures maximum engine power, with the lowest amount of exhaust emissions and the lowest fuel consumption. The Omnitek EMS offers self diagnostic capabilities (OBD) and CAN communication. The EMS is comprised of sensors for intake air and coolant temperature, intake manifold absolute pressure (MAP) and throttle position (TPS), as well as sensors for engine speed and signals for the required injection and ignition spark events, and a sensor for information about the oxygen content in the exhaust (4-Wire Oxygen Sensor or Wideband UEGO Sensor). Furthermore, there is an idle speed motor for adjusting and stabilizing the idle speed, or an electronic throttle body and finally a fuel pressure regulator and fuel injector(s). The supplied high-energy ignition coils are controlled by the integrated ignition module. For alternative fuel applications fuel rail pressure and temperature sensors are also utilized. The ECU calculates the correct amount of fuel and ignition timing by "reading" the information supplied by various sensors and compares these values with the appropriate points in fuel and ignition-map of the ECU.

You might also like