A project on

“A STUDY ON BRAND MANAGEMENT OF VOLKSWAGEN GROUP OF

COMPANIES”

A project submitted to

University of Mumbai for partial completion of the degree of

Bachelor’s in Management Studies

Under the faculty of commerce

By

DAS DEEPAK KEDARPRASAD

Under the guidance of

PROF. RIDDHI ASWANI

VEDANTA COLLEGE

(Vithalwadi Station Road,

Vithalwadi West, 421003)

March 2024

1
 A project on

“A STUDY ON BRAND MANAGEMENT OF VOLKSWAGEN GROUP OF

COMPANIES”

A project submitted to

University of Mumbai for partial completion of the degree of

Bachelor’s in Management Studies

Under the faculty of commerce

By

DAS DEEPAK KEDARPRASAD

Under the guidance of

PROF. RIDDHI ASWANI

VEDANTA COLLEGE

(Vithalwadi Station Road,

Vithalwadi West, 421003)

March 2024

2
 Certificate

This is to certify that Miss/Mr. DAS DEEPAK KEDARPRASAD has worked and duly completed her/his
Project Work for the degree of Bachelor’s in Management Studies under the Faculty of Commerce in the
subject of PROJECT WORK IN MANAGEMENT STUDIES and her/his project is entitled, “(A
STUDY ON BRAND MANAGEMENT OF VOLKSWAGEN GROUP OF COMPANIES)” under My
Supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any Degree or Diploma of any University.

It is her/ his own work and facts reported by her/his personal findings and investigations.

Name and Signature of

Guiding Teacher

Seal of the
College

Date of submission:

3
 Declaration by learner

I the undersigned Miss/Mr. DAS DEEPAK KEDARPRASAD here by, declare that the work
embodied in this project work titled “A STUDY ON BRAND MANAGEMENT OF
VOLKSWAGEN GROUP OF COMPANIES”, forms my own contribution to the research work
carried out under the guidance of PROF. RIDDHI ASWANI is a result of my own research work
and has not been previously submitted to any other University for any other Degree/ Diploma to this
or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

DAS DEEPAK KEDARPRASAD

Name and Signature of the learner

CERTIFIED BY
PROF. RIDDHI ASWANI

Name and signature of the Guiding Teacher

4
 Acknowledgment

To list who all have helped me is difficult because they are so numerous, and the depth is
so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Dr Sangeeta Kohli for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Vice Principal, Dr Kiran Menghani, for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide PROF. RIDDHI
ASWANI whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially My Parents and Peers who supported me
throughout my project.

5
 INDEX

CHAPTER PARTICULAR PAGE NO.

1 INTRODUCTION 7-52

2 REVIEW OF 53-58
LITERATURE

3 RESSEARCH 59-60
METHODOLOGY

4 DATA ANALYSIS 61-72

5 CONCLUSION 72-73

6 APPENDIX 74-75

7 BIBLOGRAPHY 76

6
A STUDY ON BRAND MANAGEMENT OF VOLKSWAGEN GROUP OF
COMPANIES

7
 CHAPTER NO.1. INTRODUCTION

1.1 OVERVIEW OF VOLKSWAGEN

Volkswagen Group, major German automobile manufacturer, founded by the German government in
1937 to mass-produce a low-priced “people’s car.” Headquarters are in Wolfsburg, Germany.
The company was originally operated by the German Labour Front (Deutsche Arbeitsfront), a Nazi
organization. The Austrian automotive engineer Ferdinand Porsche, who was responsible for the
original design of the car, was hired by the German Labour Front in 1934, and ground was broken for
a new factory in the state of Lower Saxony in 1938. The outbreak of World War II in 1939 occurred
before mass production could begin, and the factory was repurposed to produce military equipment and
vehicles. Volkswagen’s military involvement made its factory a target for Allied bombers, and by the
end of the war the factory was in ruins. It was rebuilt under British supervision, and mass production of
the Volkswagen began in 1946. Control of the company was transferred in 1949 to the West German
government and the state of Lower Saxony. By that time, more than half of the passenger cars produced
in the country were Volkswagens.
Volkswagen production expanded rapidly in the 1950s. The company introduced the Transporter van
in 1950 and the Karmann Ghia coupe in 1955. Sales abroad were generally strong in most countries of
export, but, because of the car’s small size, unusual rounded appearance, and historical connection to
Nazi Germany, sales in the United States were initially sluggish. The car began to gain acceptance there
as the 1950s progressed, however, and Volkswagen of America was established in 1955. The American
advertising agency Doyle Dane Bernbach was hired to represent the brand in 1959, and the result was
a landmark advertising campaign that helped to popularize the car as the “Beetle” and promoted its size
and unconventional design as an advantage to the consumer. The campaign was very successful, and
the Beetle was for many years the most-popular imported automobile in the United States. Although
Volkswagen made many detail changes to the Beetle, the basic rear-engine design and rounded shape
remained the same. The company developed other rear-engine models with more-modern styling and
improved engineering, but none were as successful as the Beetle.
Competition from small cars with more-modern designs and the company’s increasingly troubled
finances eventually dictated a change in corporate philosophy toward developing more-contemporary
and sportier car models. As a result, Volkswagen began phasing out its rear-engine cars in the 1970s,
replacing them with front-engine front-wheel-drive designs. The first of those new cars was the short-
lived K70 in 1970, followed by the Passat in 1973. Most significant, however, was the Golf, initially
called the Rabbit in the United States, which was introduced in 1974. The Golf was an instant sales
success, effectively replacing the Beetle in the company’s lineup and ultimately becoming
Volkswagen’s best-selling model worldwide.

8
 Joint ownership of Volkswagen by the West German government and the state of Lower Saxony
continued until 1960, when the company was mostly denationalized with the sale of 60 percent of its
stock to the public. Since the 1950s Volkswagen has operated plants throughout much of the world,
including in Mexico, Brazil, China, and the United States. In addition to passenger cars, the company
also produces vans and commercial vehicles. Volkswagen owns several other automotive companies,
including Audi and Porsche in Germany, SEAT (Sociedad Española de Automóviles de Tourism) in
Spain, Skoda in the Czech Republic, Bentley in the United Kingdom, Lamborghini in Italy, and Bugatti
in France.
In mid-2015 Volkswagen briefly held the distinction of being the world’s largest car manufacturer by
volume after surpassing Toyota Motor Corporation. However, shortly thereafter Volkswagen faced a
public relations crisis when the U.S. Environmental Protection Agency (EPA) determined that the
manufacturer’s diesel-powered cars contained software that altered the vehicle’s performance in order
to pass emissions tests. Volkswagen admitted to installing the “defeat device,” and it recalled more than
10 million automobiles worldwide. In the United States alone, the carmaker faced fines of more than
$4 billion, and several Volkswagen officials later were found guilty of various crimes. Despite the
scandal, Volkswagen sales worldwide.

1.2. OVERVIEW OF VOLKSWAGEN GROUP (INDIA)

❖ Indian Spirit Meets German Excellence
Headquartered in Pune, Maharashtra, the Volkswagen Group in India is represented by five brands:
SKODA, Volkswagen, Audi, Porsche and Lamborghini. The Indian journey began with the launch of
SKODA in 2001. Audi and Volkswagen entered in 2007, while Lamborghini and Porsche were
introduced in 2012. Today, the Group upholds its mantle of superior engineering, with plants in Pune
and Aurangabad working seamlessly to manufacture the world's most loved cars.
❖ 10 years of Polo: - The Volkswagen Polo has been winning hearts and accolades across India. It’s fun-
to-drive, powerful character coupled with timeless design made it the hottest hatch on the streets, even
touting a 4-star NCPA safety rating. With over 14 million units being sold the world over, the Polo
enjoys universal acclaim even today and is considered a beacon of German Engineering. Volkswagen
India celebrated 10 years of this beloved hatchback in India in 2019.

9
❖ The Volkswagen Pune Plant: - The Volkswagen plant in Chakan occupies a total area of over 2.3
million square meters (572 acres), with buildings covering about 1,15,000 square metres.A workforce
of over 3,500 people was engaged in building it during its peak construction stages. The plant was built
in a record time of 17 months.

❖ Production: - The plant has a production capacity of up to 200,000 vehicles a year in a full three shift
system. The Honorable Governor of Maharashtra, His Excellency Shri. S. C. Jamir and Prof. Dr. Jochem
Heizmann, officially inaugurated the new plant on March 31, 2009, in the presence of nearly 500
international guests. The facility is the only production plant operated by a German automaker in India
that covers the entire production process, from press shop through body shop and paint shop to final
assembly.
❖ Production Introduced In India by Volkswagen Company
• 2007: Volkswagen India launched in India with the iconic Passat.
• 2008: Launch of the Jetta
• 2009: Volkswagen brought in two of its globally popular vehicles - the New Beetle and the high-end
SUV Touareg.
• 2010: Launch of Vento and the distinctly luxurious car Phaeton.
• 2011: Re-introduced the all new Passat and the Volkswagen Jetta.
• 2015: Launch of the 21st century Beetle.
• 2016: Introduction of the Volkswagen Ameo and the Polo GTI
• 2017: Re-launch of the Passat and introduction of the Volkswagen Tiguan
• 2020- Launch of the Volkswagen Tiguan Allspace
• 2020- World premiere of the Volkswagen Taigun
• 2020- Launch of the Volkswagen T-Roc
• 2021- Launch of the Volkswagen Taigun.
• 2022- Launch of the Volkswagen Virtus

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1.3. WHAT IS BRAND MANAGEMENT?
Branding is essential for businesses because it involves creating a unique identity for a company's
products and services. It can also help build customer loyalty and emotionally connect with the
company. Branding can be complex, but it is essential to understand the basics before starting a brand
strategy.
Brand management, also known as marketing, is responsible for the overall management of a brand.
This includes everything from product development and marketing to advertising and public relations.
All of these aspects work together to create a particular image or reputation for a brand. The goal of
brand management is to create a robust and positive reputation for a brand that will result in increased
sales and market share.
This process helps companies create a unique identity for their products or services in the marketplace.
A successful brand management strategy can build customer loyalty and increase market share.
Companies need to understand the different aspects of brand management to create a strong brand
identity.
Brand associations refers to a set of information nodes held in memory that form a network of
associations and are linked to a key variable. For example, variables such as brand image, brand
personality, brand attitude, brand preference are nodes within a network that describes the sources of
brand-self congruity. In another example, the variables brand recognition and brand recall form a linked
network that describes the consumer's brand awareness or brand knowledge.
Brand attitude refers to the "buyer's overall evaluation of a brand with respect to its perceived ability to
meet a currently relevant motivation”. Brand Trust refers to whether customers expect the brand to do
what is right. 81% of consumers from different markets identified this as a deciding factor in their
purchases.
Brand awareness refers to the extent to which consumers can identify a brand under various conditions.
Marketers typically identify two distinct types of brand awareness; namely brand recognition and brand
recall. Brand Recognition refers to how easily the consumers can associate a brand based on the
company's logo, slogan, color scheme, or other visual element, without seeing the company's name.
Brand equity within the literature, it is possible to identify two distinct definitions of brand equity.
Firstly an accounting definition suggests that brand equity is a measure of the financial value of a brand
and attempts to measure the net additional inflows as a result of the brand or the value of the intangible
asset of the brand. A different definition comes from marketing where brand equity is treated as a
measure of the strength of consumers' attachment to a brand; a description of the associations and beliefs
the consumer has about the brand.
Brand image refers to an image an organization wants to project; a psychological meaning or meaning
profile associated with a brand. Brand loyalty refers to the feelings of attachment a consumer forms
with a brand. It is a tendency of consumers to purchase repeatedly from a specific brand. Brand
11
personality refers to "the set of human personality traits that are both applicable to and relevant for
brands".
Self-brand congruity draws on the notion that consumers prefer brands with personalities that are
congruent with their own; consumers tend to form strong attachments with brands where the brand
personality matches their own. Brand preference refers to "consumers' predisposition towards certain
brands that summarize their cognitive information processing towards brand stimuli".
Brand orientation refers to "the degree to which the organization values brands and its practices are
oriented towards building brand capabilities". It is a deliberate approach to working with brands, both
internally and externally. The most important driving force behind this increased interest in strong
brands is the accelerating pace of globalization. This has resulted in an ever-tougher competitive
situation on many markets. A product's superiority is in itself no longer sufficient to guarantee its
success. The fast pace of technological development and the increased speed with which imitations turn
up on the market have dramatically shortened product lifecycles. The consequence is that product-
related competitive advantages soon risk being transformed into competitive prerequisites. For this
reason, increasing numbers of companies are looking for other, more enduring, competitive tools – such
as brands. Brand management aims to create an emotional connection between products, companies and
their customers and constituents. Brand managers & Marketing managers may try to control the brand
image. Brand managers create strategies to convert a suspect to prospect, prospect to buyer, buyer to
customer, and customer to brand advocates.
Brands with heritage are not simply associated with antiquated organizations; rather, they actively extol
values and position themselves in relation to their heritage. Brands offer multiple benefits to
organizations at various market levels, reflecting the entire experiential process afforded to consumers.
In the case of voluntary organizations if they can unlock their brand heritage and it will improve
volunteer engagement, to the extent that organizations 'with a long history, core values, positive track
record, and use of symbols possess, whether consciously or not, an inherent advantage in an increasingly
competitive landscape’. In the luxury literature, heritage is distinctly recognized as an integral
component of a luxury brand's identity. In the context of tourism preconceived notions of brand heritage
stimulate the increased experience of existential authenticity, increasing satisfaction with the visitor
experience. For consumer goods the communication of continuity of the brand promise can increase
perceived brand authenticity. Heritage brands are characterized by their distinctive capacity to
seamlessly integrate past, present, and future temporal dimensions.

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1.4. Why Is Brand Management Important?
Differentiation: - In a crowded marketplace with numerous competitors offering similar products or
services, a strong brand helps a company stand out. It allows consumers to distinguish your offerings
from those of your competitors and helps you create a unique position in the minds of customers.

Trust and Credibility: - A well-managed brand conveys trust and credibility to consumers. When
people recognize and trust a brand, they are more likely to choose it over unfamiliar or less reputable
alternatives. Trust is especially crucial for high-involvement purchases and long-term customer
relationships.

Customer Loyalty: - Effective brand management builds customer loyalty. When customers have
positive experiences with a brand and consistently receive what they expect, they are more likely to
become repeat buyers and advocates for the brand. Loyal customers can also help with word-of-mouth
marketing.

Price Premium: - Strong brands often command premium prices. Customers are often willing to pay
more for products or services associated with a brand they trust and perceive as high-quality. This
pricing power can contribute to increased profitability.

Emotional Connection: - Brands have the power to create emotional connections with consumers. A
well-managed brand can evoke positive emotions, making consumers feel a sense of belonging,
nostalgia, or aspiration. Emotional connections can be a potent driver of brand loyalty.

Competitive Advantage: - A strong brand image can be a sustainable competitive advantage.

Competitors may find it challenging to replicate the emotional bonds, customer loyalty, and trust that a
well-managed brand has developed over time.

Long-Term Value: - Brands can have significant long-term value. When a brand is well-managed, it
can become an intangible asset that contributes to the overall value of a company. Strong brand image
can also attract investors and partnerships.

13
1.5. Components of Brand Management
Brand management involves various components that collectively shape how a brand is perceived by
consumers and how it influences their buying decisions. Four crucial components of brand management
are brand identity, brand image, brand culture, and brand personality.

Brand Identity: - At the heart of effective product and brand management lies brand identity, which
serves as the brand’s essence and visual representation. It encompasses elements such as the brand’s
name, logo, visual design, messaging, and tone of voice. These components collectively create a unique
and recognizable identity that distinguishes the brand from its competitors. A well-defined brand
identity provides clarity and consistency in how the brand presents itself to the world, ensuring that
consumers can easily identify and remember the brand.

Brand Image: - Brand image is the perception consumer’s hold of a brand based on their interactions,
experiences, and associations with it. It is shaped by product quality, customer experiences, reputation,
and marketing efforts. A positive brand image is a valuable asset, fostering trust and loyalty among
customers. Brands must actively manage and influence their image by consistently delivering on
promises, providing exceptional experiences, and monitoring how consumers perceive them in the
marketplace.

Brand Culture: - Brand culture refers to the internal values, beliefs, and behaviours within an
organization that align with the brand’s identity and mission. This component plays a critical role in
brand management as it influences how employees represent the brand and engage with customers. A
strong brand culture instils a sense of purpose, unity, and commitment among employees, making them
brand ambassadors who embody the brand’s values. An organization that nurtures a positive brand
culture is more likely to provide consistent, authentic, and exceptional brand experiences.

Brand Personality: - Brand personality humanizes the brand by attributing human traits,
characteristics, and values to it. These traits define how consumers perceive and connect with the brand
on an emotional level. For example, a brand may be seen as sincere, exciting, competent, sophisticated,
or rugged. Brand personality helps to create relatable and memorable associations, guiding marketing
strategies and communication efforts. A brand with a well-defined personality can establish deeper
connections with its target audience, resonating with consumers on a personal level and shaping their
loyalty and preferences.

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1.6. How does Brand Management Work?
Brand management is a multifaceted process that involves strategically overseeing and cultivating a
brand’s image to resonate positively with consumers. At its core, it centers on creating and maintaining
a consistent and favorable brand identity, reputation, and equity. Let’s delve deeper and understand how
brand management functions
Firstly, brand identity development is foundational. This entails defining the brand’s mission, values,
and personality, alongside crafting distinctive brand elements like a name, logo, and visual identity.
Establishing clear brand guidelines is crucial to ensure uniformity across all brand touchpoints. Brand
positioning follows, where the brand’s target audience is identified, and their preferences and needs are
understood. Setting the brand apart from competitors through the highlighting of unique selling points
is imperative which ultimately leads to the creation of a compelling brand positioning statement.
Subsequently, a comprehensive brand strategy is developed. This strategy outlines long-term goals and
objectives, incorporates pricing strategies, distribution channels, and marketing tactics, and provides
guidelines for brand messaging and positioning. Brand communication is the active dissemination of
the brand’s message to its target audience. The role of branding in marketing and advertising is to create
campaigns that have a uniform message. Various communication channels such as social media, print
media, television, and online advertising are utilized to convey consistent brand messages and values.
To ensure the brand’s continued resonance, brand monitoring and research are ongoing activities.
Gathering feedback from customers, stakeholders, and market research helps in understanding market
sentiment and evolving consumer preferences, allowing for the adaptation and refinement of the brand
strategy. Brand protection is also critical. Legal measures such as trademarking brand elements are taken
to prevent infringement, and vigilance is maintained to detect potential trademark violations or
counterfeit products.
For long-term sustainability, brand extension and innovation are considered. Brands may expand into
related product or service categories while staying true to their core values and principles, adapting to
evolving consumer trends and market dynamics. Crisis in brand management can occur,so having a
crisis management plan is essential. In times of crisis, transparency and prompt actions help to rebuild
trust and mitigate damage to the brand’s reputation. Building strong brand equity involves consistently
delivering quality products or services while fostering emotional connections with customers through
storytelling and experiences.
Performance measurement is vital to gauge the effectiveness of brand management efforts. Key
performance indicators (KPIs) such as brand awareness, customer loyalty, market share, and revenue
growth are tracked and analyzed. So, brands may need to evolve over time to remain relevant. This can
involve rebranding or refreshing brand elements while preserving the core values and identity that
consumers have come to associate with the brand.

15
1.7. Principles of Brand Management
Brand management is guided by several key principles that help build and maintain a strong
brand. These principles serve as a foundation for effective brand management strategies and
activities. Here are some of the fundamental principles of brand management:

Consistency
Consistency is one of the most critical principles in brand management. It involves ensuring that all
brand elements, messaging, and experiences are uniform across all touchpoints. Consistency helps
consumers recognize and remember the brand more easily, reinforcing brand identity and trust.

Clarity
A clear and well-defined brand identity is essential. Brands should have a clear purpose, mission, values,
and personality that are easily understood by both internal and external stakeholders. A muddled or
ambiguous brand identity can confuse consumers and dilute the brand’s impact.

Differentiation
Brands must differentiate themselves from competitors to stand out in the market. Identifying and
highlighting unique selling points (USPs) or distinctive qualities that set the brand apart from others is
crucial for creating a competitive advantage.

Relevance
Brands should strive to remain relevant to their target audience. This involves staying attuned to
evolving consumer preferences, market trends, and cultural shifts. Remember, a brand that remains
relevant is more likely to maintain its appeal over time.

Authenticity
Authenticity is about being true to the brand’s core values and promises. Brands should avoid appearing
fake or insincere, as authenticity fosters trust and credibility with consumers and is particularly
important in building emotional connections with customers.

Quality
The consistent delivery of high-quality products, services, and customer experiences is a fundamental
principle of brand management, as quality is a key driver of brand loyalty and positive word-of-mouth.

16
Measurement and Evaluation
Brand management should be data-driven. Involving key performance indicators (KPIs), regularly
measuring and evaluating brand performance is essential for tracking progress, identifying areas for
improvement, and making informed decisions.
The above-mentioned principles provide a framework for developing effective brand management
strategies. By adhering to these principles, organizations can create and maintain a powerful brand that
resonates with consumers and contributes to business success.

1.8. Brand Management Strategies

Brand management strategies are crucial for creating, maintaining, and enhancing a brand’s
identity, reputation, and equity. Effective brand management can lead to increased brand
awareness, customer loyalty, and competitive advantage. Here are several key brand management
strategies:

Consistent Branding
Maintain consistency in all aspects of branding, such as logo, colour scheme, typography, messaging,
and tone of voice across all marketing channels and touchpoints as the role of branding in marketing is
to help increase brand’s recognition and reinforce its identity.

Customer-Centric Approach
Put the customer at the center of all brand-related decisions. Understand your target audience, their
needs, preferences, and pain points, and tailor your branding efforts to resonate with them.

Market Research
Regularly conduct market research to stay informed about industry trends, consumer behaviour, and
competitive landscape. Use consumer data to adapt and refine your brand strategy as and when required.

Brand Positioning
Clearly define your brand’s unique value proposition and positioning in the market. Highlight what sets
your brand apart from competitors and why customers should choose your products or services.

Brand Messaging
Craft compelling and consistent brand messages that communicate your brand’s story, values, and
benefits. Ensure that these messages resonate with your target audience and address their specific needs
and aspirations.
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Brand Extensions
Strategically consider brand extensions or diversification into related product or service categories.
Ensure that these extensions align with the core values and identity of the brand.

Crisis Management
Develop a robust crisis management plan to address potential brand crises promptly and effectively.
Transparency and swift action are essential to maintaining a brand reputation during challenging times.

1.9. Benefits of Brand Management

Brand management offers a wide range of benefits for businesses and organisations. Effectively
managing a brand can have a significant positive impact on the company’s bottom line and long-term
success.

Increase Brand Recognition

Effective brand management creates a strong and consistent brand identity, making it easier for
consumers to recognize and remember your brand. This recognition can lead to increased brand recall
and awareness in the market.

Enhance Brand Loyalty

Brands that consistently deliver quality products or services and positive customer experiences, tend to
build strong brand loyalty. Loyal customers are more likely to repeat purchases and become advocates
for the brand by promoting it to others.

Increase Market Share

A positive brand image can lead to increased market share as more consumers choose your brand over
competitors. It can also help attract new customers to the brand.

Attracts Top Talent

A reputable and well-managed brand can attract top talent to the organization as candidates are often
drawn to work for companies with strong brand equity and a positive image.

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Aids in Global Expansion
Strong brands have the potential to expand into international markets more easily, as their reputation
and recognition can transcend borders.

Boost Investor’s Confidence

A strong brand can boost investor confidence and attract investment, which is essential for business
growth and expansion.
So, product and brand management is not just about logos and marketing—it’s a strategic investment
that can yield numerous benefits. It helps build customer loyalty, trust, and differentiation in the market
which ultimately contributes to the overall success and growth of a business or organization.

1.10. Origin and Evolution of the Brand

One of the world's biggest automaker, Volkswagen Group is celebrating its 84th anniversary today, i.e.
May 28.On this day in 1937, the predecessor to the current company, "Gesellschaft zur Vorbereitung
des Deutschen Volkswagens mbH," was established in Berlin. Over the decades, it has turned into a
juggernaut with multiple brands, over 6.2 lakh employees, and 120 production sites on four continents.

Origins
The Beetle marked Volkswagen's entry in the automotive sector In 1934, under the aegis of the National
Socialist regime in Germany, the Reich Automotive Industry Association ordered Ferdinand Porsche to
design a "German people's car."
This vehicle was production-ready in 1938. Known as the 'Beetle,' it laid the foundation for the
Volkswagen Group. More than 21.5 million units were produced and it became the most successful car
of its time.

Stepping stone
Global operations started in 1947
Volkswagen began its global operations in 1947 when five Beetles were exported to the Netherlands.
British influence on the company is undeniable. They transformed it into a civilian concern and handed
it over to the German government in 1949.Besides the Beetle, Transporter van also paved way for the
brand's expansion. High demand for both the models led to the construction of new factories.

19
Information
The company was privatized in 1960
Volkswagen set up foreign sales divisions in Canada and Brazil (Volkswagen do Brasil Ltd.) in 1952
and 1953, respectively. In 1960, the company was privatized and changed into a stock corporation. At
that time, it built 88,500 vehicles every year and had 64,100 employees.

Mergers
Transition into a multi-brand group started in 1965
In 1965, Volkswagen acquired Auto Union GmbH to become a multi-brand group. It merged with NSU
Motorenwerke Aktiengesellschaft in 1969 to form Audi AG.

From the mid-1980s, several brands such as SEAT, Porsche, MAN, Ducati, SKODA, Bugatti, Bentley,
Lamborghini, and Scania, were consolidated under one roof. In2016, Volkswagen has also launched a
new company called MOIA which deals with mobility services.

Innovation
Switching from air-cooler to water-cooled engines marked a technological shiftThe biggest
technological milestone in the brand's history happened in the early 1970s when it switched from air-
cooled to water-cooled engines and rear-wheel to front-wheel drive.
It was around this time that the Golf model rose to prominence. With an entire category of cars named
after it and over 33 million units sold to date, it quickly became the spiritual successor to the Beetle.
New vision
Project Trinity is Volkswagen's vision for the future
Volkswagen has decided to become a market leader in sustainable mobility. Consequently, it has
introduced promising hybrid and battery-powered vehicles, and is working on Project Trinity - an
electric car capable of Level 4 autonomous driving and ultra-fast charging.
Other goals of the project include turning the vehicle into a software-based product, reduce barriers to
individual mobility, and generate extra revenue from software-based operations.
20
 1.11. Key Events of Volkswagen Group 2022
• Diesel issue
On September 18, 2015, the US Environmental Protection Agency (EPA) publicly announced in a
“Notice of Violation” that irregularities in relation to nitrogen oxide (NOx) emissions had been
discovered in emissions tests on certain Volkswagen Group vehicles with 2.0 l diesel engines in the
USA. In this context, Volkswagen AG announced that noticeable discrepancies between the figures
recorded in testing and those measured in actual road use had been identified in type EA 189 diesel
engines and that this engine type had been installed in roughly eleven million vehicles worldwide. On
November 2, 2015, the EPA issued a “Notice of Violation” alleging that irregularities had also been
discovered in the software installed in US vehicles with type V6 3.0 l diesel engines.
The so-called diesel issue is rooted in a modification of parts of the software of the relevant engine
control units – which, according to Volkswagen AG’s legal position, is only unlawful under US law –
for the type EA 189 diesel engines that Volkswagen AG was developing at that time. This software
function was developed and implemented from 2006 on without knowledge at the level of the Board of
Management. Members of the Board of Management did not learn of the development and
implementation of this software function until the summer of 2015.
There are furthermore no findings that, following the publication in May 2014 of the study by the
International Council on Clean Transportation, an unlawful “defeat device” under US law was disclosed
to the persons responsible for preparing the 2014 annual and consolidated financial statements as the
cause of the high NOx emissions in certain US vehicles with 2.0 l type EA 189 diesel engines. Rather,
at the time the 2014 annual and consolidated financial statements were being prepared, the persons
responsible for preparing these financial statements remained under the impression that the issue could
be resolved with comparatively little expense.
In the course of the summer of 2015, however, it became progressively apparent to individual members
of Volkswagen AG’s Board of Management that the cause of the discrepancies in the USA was a
modification of parts of the software of the engine control unit that was later identified as an unlawful
“defeat device” as defined by US law. This culminated in Volkswagen’s disclosure of a “defeat device”
to the EPA and the California Air Resources Board (CARB), a department of the Environmental
Protection Agency of the State of California, on September 3, 2015. According to the assessment at the
time by the responsible persons dealing with the matter, the magnitude of the costs expected to result
for the Volkswagen Group (recall costs, retrofitting costs, and financial penalties) was not
fundamentally dissimilar to that in previous cases involving other vehicle manufacturers. It therefore
appeared to be manageable overall considering the business activities of the Volkswagen Group. This
assessment by Volkswagen AG was based, among other things, on the advice of a law firm engaged in
the USA for regulatory approval issues, according to which similar cases had in the past been amicably
21
resolved with the US authorities. The EPA’s publication of the “Notice of Violation” on September 18,
2015, which the Board of Management had not expected, especially at that time, then presented the
situation in an entirely different light.
In fiscal year 2022, special items in connection with the diesel issue amounted to €399.1 million
(previous year: €750.8 million); they were mainly recognized in the other operating result. These special
items were attributable to additional expenses primarily for legal risks.
Further information on the litigation in connection with the diesel issue can be found in the “Litigation”
section.

Antitrust investigations
In 2011, the European Commission conducted searches at European truck manufacturers for suspected
unlawful exchange of information during the period from 1997 to 2011; in November 2014, the
Commission issued a statement of objections to MAN, Scania, and the other truck manufacturers
concerned. In its settlement decision of July 2016, the European Commission assessed fines against five
European truck manufacturers. MAN’s fine was waived in full as the company had informed the
European Commission about the irregularities as a key witness. In September 2017, the European
Commission fined Scania €0.88 billion. Scania appealed to the European Court of Justice in
Luxembourg and mounted a comprehensive defense. In a judgment rendered in February 2022, the
European General Court (Court of First Instance) rejected in its entirety the appeal filed by Scania in
this connection. Scania appealed this judgment to the European Court of Justice in April 2022. Scania
had already recognized a provision of €0.4 billion in 2016 and increased this provision to approximately
€0.9 billion in 2021.
Furthermore, antitrust lawsuits seeking damages have been received from customers. As is the case in
any antitrust proceedings, this may result in further lawsuits for damages. No provisions have been
recognized or contingent liabilities disclosed for these cases as most of them are still in an early stage
and currently cannot be assessed for this reason. In other cases, the chance of a decision by a court of
last resort awarding antitrust damages against MAN or Scania currently appears remote.
In July 2021, the European Commission assessed a fine totaling roughly €502 million against
Volkswagen AG, AUDI AG, and Dr. Ing. H.c. F. Porsche AG pursuant to a settlement decision. This
amount was recognized under other operating expenses in the previous year. Volkswagen declined to
file an appeal, hence the decision became final in 2021. The subject matter scope of the decision is
limited to the cooperation of German automobile manufacturers on individual technical questions in
connection with the development and introduction of SCR (selective catalytic reduction) systems for
passenger cars that were sold in the European Economic Area. The manufacturers are not charged with
any other misconduct such as price fixing or allocating markets and customers.

22
 The Korean competition authority KFTC is analyzing potential violations based on the facts of the EU
case. The final report of the appointed KFTC case handler was issued in November 2021. Volkswagen,
Audi, and Porsche have replied to this report. In February 2023, the KFTC published a press release
stating that an administrative fine decision would be issued against four automobile manufacturers in
the SCR context. According to the press release, no fine is to be imposed on Volkswagen AG and the
decision would not affect Porsche AG. However, an administrative fine decision would be issued
against AUDI AG in the SCR matter. The competition authority’s final decision and the grounds thereof
have not yet been served; service is currently expected in the first half of 2023. The Turkish competition
authorities, who investigated similar matters, issued a final decision in January 2022 in which they
determined anticompetitive behavior to allegedly exist, but found that it had no effect on Turkey, for
which reason they refrained from imposing fines on the German automakers. Volkswagen, Audi, and
Porsche are currently considering whether to file an appeal. Based on comparable matters, the Chinese
competition authority has instituted proceedings against Volkswagen, Audi, and Porsche, among others,
and issued requests for information.

• Russia-Ukraine conflict / Covid-19 pandemic / semiconductor shortages

The start of the Russia-Ukraine conflict in February 2022 led not only to a humanitarian crisis but also
brought market upheaval around the world. There have been substantial price rises, particularly on the
energy and commodity markets, and significant increases in interest and inflation rates have been
observed internationally.
In addition, the parts supply shortages intensified in this context directly after the start of the conflict.
In the Volkswagen Group, this particularly affected the supply of cable harnesses from Ukraine.
Volkswagen took immediate action to clear these supply bottlenecks from Ukraine, with the result that
there are no material bottlenecks in this regard at present.
Moreover, different sanctions have been imposed on Russia as a result of the conflict, especially by the
EU and the USA. They restrict economic transactions with Russia and have an impact on the Russian
companies and plants of the Volkswagen Group and on sales of vehicles to Russia. The sanctions also
affect the new financial services business in Russia and lead to impairment risks to existing lease assets
and financial receivables. Against the backdrop of the Russia-Ukraine conflict and the resulting
consequences, Volkswagen has decided to suspend vehicle production in Russia until further notice.
Vehicle exports to Russia have also been halted. In addition, the respective sanction requirements are
also being complied with in relation to parts supplies and the provision of technical information. In
addition, Russia itself, in its role as an energy exporter, has restricted gas deliveries to Europe. The
resulting increase in commodity prices and intensified supply shortages are reinforcing the threat of
persistently high inflation.

23
Russia’s partial mobilization on September 21, 2022 and the ensuing tightening of sanctions led to
adjustments to the risk assessment in relation to the situation in Russia in the third quarter and to the
potential future development of the Group’s business activities in Russia.
Since there was no noticeable easing in the Russia-Ukraine conflict in the fourth quarter, the
discontinuation of business activities in Russia took concrete shape in the Volkswagen Group. In this
context, some companies were sold already and further sale negotiations were initiated (see the “IFRS
5 – Noncurrent assets held for sale” section). Overall, comprehensive impairment losses on assets of
production facilities and financial services companies as well as risk provisions, especially for third-
party expenses expected from the discontinuation of activities in Russia, were recognized in the fiscal
year.
Overall, total expenses of around €2 billion were recognized in the fiscal year as a direct result of the
Russia-Ukraine conflict, which are reported in cost of sales and in the other operating result. Of this
amount, €1.5 billion was attributable to the Automotive Division and €0.5 billion to the Financial
Services Division.
In connection with inflation rate trends, the weighted average cost of capital (WACC) used in testing
the different cash-generating units for impairment were also subject to significant change. Please refer
to the “Accounting policies” section.
In addition, as a result of the turbulence on the commodity and capital markets, gains totaling €3.7
billion had to be recognized in the other operating result, primarily from the fair value measurement and
realization of derivatives to which hedge accounting is not applied (especially commodity, currency and
interest rate hedges).
During 2022, the restrictive measures put in place to protect the population from the SARS-CoV-2 virus
were lifted to a large extent in many countries. The progress made in administering vaccines to the
public had a positive effect, while the emergence of the new Omicron variant and its sub variants led to
a renewed sharp rise in infections on a national scale, mostly causing milder symptoms but increased
rates of sick leave. In China particularly, local outbreaks of infection in the course of 2022 led to tight
restrictions under the zero-Covid strategy being pursued there, resulting in economic constraints and
disruption to international supply chains. The departure from this strategy led to a rapid increase in
infection rates in China at the end of the year.
In addition to the uncertainty and measures being taken around the world to deal with the Covid-19
pandemic, persistent semiconductor shortages and the resulting limited availability of Group models
meant that demand could not be adequately met in some regions.
Please also refer to the comments in the 2022 group management report, specifically in the chapters
entitled Business Development, Results of Operations, Financial Position and Net Assets, Report on
Expected Developments and Report on Risks and Opportunities.

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1.12. Brand Management Strategies
Brand Positioning
Introduction
Volkswagen has long been a leader in the automotive industry, and its success can be attributed to its
effective positioning and differentiation strategies. In this blog post, we will discuss how Volkswagen
has managed to stand out from the competition while maintaining a strong market position. We will
also explore the importance of differentiation and positioning for any brand seeking a competitive
advantage.

Linking Differentiation and Positioning

Differentiation is about offering something unique to consumers, making your brand memorable when
they make purchasing decisions. And Volkswagen is among the best when it comes to differentiation,
regardless of your age, if someone asks you to mention an iconic European car, the first car that comes
to mind is a VW beetle, if not the beetle, then the camper, not only for the characters that those cars
hold, but also for the better engineering, cutting edge technology that those two cars had at that time, in
addition to the practicality. To date, you will find some still driving them many places in the world. On
the other hand, it's about placing your brand in a distinct spot within consumers’ minds based on their
perceptions of your product category. Both concepts are linked because being different results in
occupying a unique position in consumers’ minds that guides their purchasing choices.

Steps in the Positioning Process:

Understand the context: It’s crucial to analyze competitors, their messaging, market conditions, and
consumer perceptions of VW brand compared to others. Not only did VW understand the context, they
set new standards in the industry and the market. By looking, for example, at the VW Golf, one of the
top selling cars on earth , they are selling 2000 vehicles a day of a model that was first introduced in the
early 70`s and is still doing great.

VW Golf, another successful story

They know what makes their brand different: because differentiating factor should not be easily
replicated by competitors, till date this car the highest in sales in it segment despite all those years. Be
legitimate: Ensure that you can support your claims with evidence. The evidence is the figures, the
numbers, and the people's love for this product. Communicate the difference: it’s conveyed consistently,
this makes the VW brand special across all facets of the business.

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 Volkswagen’s Success in Positioning and Differentiation
Volkswagen has successfully positioned itself as an innovative, reliable, and environmentally conscious
automaker by focusing on cutting-edge technology and fuel efficiency without compromising
performance or comfort. Its well-known “Das Auto” campaign emphasized these qualities while
appealing to a wide range of customers.

Positioning strategies
Aim to convince consumers that a brand is unique and different from its competitors. Temporal
(2002:37–49) and Sengupta (2005:76–107) list the following positioning strategies and their
implications:
• Corporate identity: Volkswagen’s corporate identity is centered around German engineering excellence,
reliable performance, and innovative technology, helping build brand recognition and loyalty.
• Brand endorsement: Volkswagen has partnered with famous personalities and events, such as soccer
player Neymar Jr. or the International Ski Federation, to enhance its image and credibility.
• Category-related: Volkswagen has positioned itself as a leader in producing fuel-efficient and eco-
friendly vehicles, with models like the e-Golf and ID. Series reinforcing this image.
• Benefit-related: Volkswagen focuses on providing benefits such as safety, dependability, and long-
lasting performance, appealing to consumers who value these attributes in their vehicle choices.
• Emotion: Volkswagen’s “Think Blue” campaign connects with customers on an emotional level by
highlighting the brand’s commitment to environmental sustainability and social responsibility.
• Price and quality: Volkswagen positions itself as a brand that offers high-quality vehicles with
competitive pricing, balancing affordability and performance for consumers.
• Usage, time, and application: Volkswagen appeals to various customer segments by offering vehicles
for different purposes and occasions, such as family cars (Tiguan), city cars (Polo), or adventure
vehicles (Amarok).
• Competitor: Volkswagen distinguishes itself from competitors like Toyota or Ford by emphasizing its
German engineering expertise, cutting-edge technology, and commitment to sustainability.
• Target user: Volkswagen targets a diverse audience, including families, young professionals, and
environmentally-conscious consumers, tailoring its messaging and offerings accordingly.
• Aspiration: Volkswagen’s luxury car brand, Audi, offers premium vehicles that cater to consumers with
a desire for status, luxury, and high-performance driving experiences.
By effectively utilizing these positioning strategies, Volkswagen has created an image that sets it apart
from competitors and resonates with its target audience, ultimately driving customer preference and
loyalty.

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1.13. Outcomes of Successful Positioning and Differentiation for Volkswagen:
Increased Market Share: By offering unique features such as efficient engines or advanced safety
systems, Volkswagen has attracted new customers and increased its market share. In 2016, it was the
world’s largest automaker by sales, and it kept this title in 2017, 2018, and 2019, selling 10.9 million
vehicles. It has maintained the largest market share in Europe for over two decades.

Enhanced Brand Image: The Company’s focus on sustainability initiatives like electric vehicles has
improved its brand image and resonated with environmentally conscious consumers. Volkswagen
Group was the best-performing brand by volume, with 349,200 EVs registered across Europe in 2022,
which makes VW number one in Europe in EV.

Customer Loyalty: Volkswagen’s commitment to quality and innovation has resulted in customer
loyalty, leading to repeat purchases and referrals. Even outside of Europe, a research done in Australia
revealed that 61.5% of VW owners would be willing to buy the same brand when they needed a new
car.

1.14.Brand Architecture:-

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 1.15. S.W.O.T. Analysis
❖ Strengths
1. The widest brand portfolio among all automotive companies. Volkswagen’s brand portfolio is the
largest among all automotive companies. The company sells its vehicles under 12 different brands
Company’s cars are sold under Volkswagen, Audi, Seat, Skoda, Bentley, Bugatti, Lamborghini and
Porsche brands. Ducati is Volkswagen’s motorcycle brand. The company’s buses, heavy trucks and
other commercial vehicles are sold under Scania, Man and Volkswagen’ Commercial Vehicles brands.
No other Volkswagen’s rival has so many brands under its management. General Motors, which is the
3rd largest automaker in the world, only has 10 different brands and Toyota currently sells its vehicles
only under 4 different brands.

2. New “TOGETHER – 2025” strategy

In the wake of their emission scandal and the external market pressures Volkswagen has introduced a
new strategy plan that will focus on delivering key goals by 2025.

The company’s key objectives are:

• Introduce 30 new electric vehicles by 2025. Volkswagen calls this objective as the ‘major company’s
electrification’. Up until now, the company was reluctant to engage in costly race for electric vehicles.
• Develop new competence in battery technology, digitalization and autonomous driving.
• Increase research and development (R&D) spending to double-digit billion range.

Volkswagen’s further objectives outlined in the plan are to increase company’s efficiency and
profitability. The new strategy will focus company’s efforts on some of the most important areas and
will provide a clear direction, which is something many automotive companies lack right now.

3. Diversification strategy
Volkswagen’s revenue is much more spread across different brands, types of products and geographic
areas than its rivals’ revenues.
The company’s wide brand portfolio allows to target different consumer segments and satisfy their
diverse needs better.
Moreover, Volkswagen offers many types of automotive and maritime products and financial services,
which further diversify company’s sources of income.
Only 74.5% of Volkswagen’s income come from the main ‘Passengers Cars’ segment. [1] ‘Commercial
Vehicles’, ‘Power Engineering’ and ‘Financial Services’ generate the rest 12.4%, 1.9% and 11.2% of
the revenue, accordingly.
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 No single market generates over 20% of Volkswagen’s revenue, which is by far the best geographically
diversified income among all automotive companies.

4. Synergy between brands

Synergy between the brands is one of the key Volkswagen’s strengths. Many of Volkswagen’s brands,
including Skoda, SEAT and Volkswagen, or Bugatti, Lamborghini and Porsche, share their R&D
spending, build technology, access to different markets and customer knowledge to increase sales and
decrease costs. At the same time, they are able to cater for different consumer groups. Synergy would
not be possible between only a few brands.

5. Joint ventures with local Chinese automakers

China is the world’s largest automotive market share and the largest Volkswagen’s market in terms of
the number of vehicles sold. Volkswagen operates in China through two joint ventures: SAIC
Volkswagen and FAW-Volkswagen. Through both partnerships, the company offers over 150 different
models for the market and sells over 3.5 million units a year. This allows Volkswagen to capture 14.6%
market share and to become the second largest automaker in China behind General Motors.

❖ WEAKNESS
1. Negative publicity weakening the whole Volkswagen brand.
‘Diesel gate’ scandal. In 2015, the company was found to install software code into its diesel vehicles,
which would control different emission levels during the vehicle testing in a laboratory when compared
to the real world emission levels. The company was investigated and found guilty in many countries,
which fined the company. The fines, damages and other losses from the scandal totaled €16.2 billion
for Volkswagen. Vehicle recalls. Over the last few years, Volkswagen had to recall millions of vehicles
worldwide and has received lots of criticism for that.
Negative publicity has hit hard Volkswagen Group. The company’s sales declined in 2015 and will
likely decline in 2016. The company experience billions of losses, many current and potential
customers. Company’s brand image has been severely affected and it will take lots of time to recover
it. Negative publicity is one of the worst weaknesses Volkswagen has brought upon itself.

2. The highest recall rate in the U.S. market

Volkswagen’s massed produced vehicles have the highest recall rate in the U.S. market among all the
automakers. A study published by iSeeCars.com has revealed that Volkswagen Group has a recall rate
of 1805 vehicles per 1000 vehicles produced.

29
 This means that Volkswagen Group has recalled each of its vehicle nearly twice. A high recall rate
results in additional costs, disappointed customers and negative publicity. Volkswagen should
implement better quality control procedures to minimize this weakness.

3. Low market share in the U.S. automotive market

United States is the second largest automotive market in the world with over 18 million vehicles sold.
Moreover, it is the largest automotive market in the world in terms of value. A high market share in the
U.S. automotive market would guarantee huge earnings as in the case of General Motors and Ford, both
relying on the U.S. to generate 55.5% and 62.3% of their revenue, accordingly.
At the moment Volkswagen’s share in the U.S. automotive market is at best weak. The company sold
less than 850,000 thousand vehicles in the U.S. and captured less than 5% market share, despite being
the largest automaker in the world.

❖ Opportunities
1. Fuel prices are expected to rise in the near future
Fuel prices have been low for the last few years and are expected to rise in the near future due to the
changes in the supply. Low fuel prices have increased the demand for large vehicles such as pickup
trucks and SUVs. Many companies, including General Motors, Ford, and Chrysler have benefited from
the low fuel prices, because of their strong SUVs and pickup trucks offerings.
On the other hand, Volkswagen didn’t invest much into growing its line of light trucks and has opted to
compete in the smaller vehicle range. The demand for small vehicles always rises when the fuel prices
30
 are high. Volkswagen could also push its plans to introduce the first competitive electric vehicle earlier
than 2020 and benefit for the growing demand for them.

2. Acquire skills and competences through acquisitions

In order to fulfill its goals outlined in the new strategy plan, Volkswagen will have to develop new
competence in battery technology, digitalization and autonomous driving. The fastest and least costly
way to do that is by acquiring smaller startups, which have already developed the skills and the
technology needed for Volkswagen. Usually, acquisitions are costly, but the current interest rates are
the lowest in history, so capital can be acquired cheaply.

3. Demand for autonomous vehicles

Currently, nearly 33 companies are working on autonomous vehicles.[4] Few of them, including Google,
Ford and Tesla, are testing their autonomous vehicles on the roads and none of them are selling these
cars to the general public. It is hard to estimate the exact demand or the market value (it is expected to
be worth US$45 billion by 2025) for the autonomous vehicles, but according to the efforts of all the
major automakers, it seems that autonomous vehicles is the next ‘big thing’ for the industry.
Volkswagen is in plans to introduce its autonomous vehicles by 2025. The company should introduce
its autonomous vehicles earlier to gain higher market share and increase sales.
4. Weakening euro exchange rate
The majority of Volkswagen’s revenue come from Eurozone countries, where euro is the only currency.
Therefore, the changes in euro exchange rate have little effect on the company’s revenue and profits.
Nevertheless, exchange rates still affect exports to other countries and this is where weak euro exchange
rate against other currencies, benefits the company.
Lower euro exchange rate against the U.S. dollar makes Volkswagen’s vehicles cheaper for the U.S.
citizens. The company could push its exports to the U.S. or other countries for as long as the euro
exchange rate is low against other currencies.

5. Focus on significantly improving sustainability policies to remedy damaged brand reputation

Volkswagen’s reputation as the environmentally friendly company has been severely damaged by its
emissions scandal. The company is no longer trusted as the business, which protects the environment
and is concerned about the communities around it.The company identifies this as the key damage done
by its emission issue. If Volkswagen wants to regain the trust of its stakeholders, the company should
increase its efforts in sustainability significantly.

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❖ THREATS
1. Intense competition
Volkswagen is faced with an ever increased competition from the traditional automotive companies, the
new players and saturation of its main markets. In China, one of the key company’s markets, new home
based Chinese manufacturers are competing by offering lower prices, but similar quality build vehicles.
New companies, such as Tesla with its electric cars will make it very hard for Volkswagen to compete
in the electric cars segment. In addition, Google, which tries to build self-driving cars is also threatening
the traditional automotive industry. The competition is further fueled by the fact that the global
automotive production capacity far exceeds the demand. In 2015, there was an estimated global excess
production capacity of 31 million units.

2. Further fines and damages that will have to be paid

Volkswagen’s emission scandal has already resulted in damaged brand reputation, lost consumer
confidence and €16.2 billion in damages and fines. This though, is not the end of it.The company is still
involved in many lawsuits all over the world, which seek to convict Volkswagen for cheating on their
emission data. The company will have to pay billions in additional fines and damages, decreasing its
profits for the next few years.

3. Increasing government regulations

Many governments around the world are committed to reducing the greenhouse gas emissions and are
encouraging fuel efficiency initiatives. There is always a risk that such environmental initiatives may
increase production costs for the car manufacturers and that these costs won’t be able to be recouped in
such a highly competitive and price-sensitive market.

1.16. INTRODUCTION OF SUB-COMPANIES UNDER VOLKSWAGEN

AUDI COMPANY
Audi is one of the best-selling luxury automobile manufacturers in the world. However, the origins of
the German brand are complex and colorful, to say the least.
Behind the name of every car company, there’s a story. Sometimes it’s as simple as the name of the
family who founded it (Bentley, for example), sometimes it’s an acronym for a phrase people don’t
seem to remember. The story behind Audi, however, is that little bit more interesting. OSV takes a look
at the rich history of the German brand in our Audi history.

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How did Audi get their name?
Audi was technically founded way back in 1885 when the Wanderer Company was established, later
becoming a branch of Audi.
But it was in 1899 that August Horch established A. Horch & Cie in Cologne, then went on to form the
August Horch & Cie. Motowagenwerke AG in 1904.However, this didn’t last for very long and Horch
left Motowagenwerke in 1909, founding his own company August Horch Authomobilewerke GmbH.
You may have noticed that all these company names sound very similar because his old company
definitely did. They sued Horch for trademark infringement and the Supreme Court agreed. Horch then
had to come up with a new name for his company. So, how did he get to Audi? Well, Horch in Latin is
Audi, which means ‘to listen’. And thus, Audi was born. In April 1910 Audi Automobilwerke GmbH
Zwickau was officially created.
From 1915, it was named Audiwerke AG Zwickau. Zwickau was of course where the company was
located, which is in the state of Saxony.

When did Audi start making cars?

Audi as we now know it launched their first car in 1910 and was the Audi Type A Sport-Phaeton. Its
successor, the Type B was also launched that year. Both were successes, particularly in sporting events.
Horch had led his team to three straight victories in the Austrian Alpine Run. It was in 1920 that Horch
left Audi to take up a high position in the ministry of transport but in his short time at the manufacturer,
he had made the brand internationally known. Shortly after he left, Audi became the first German car
brand to produce a car that was left-hand drive, the Audi Type K. This became dominant in the 1920s
due to the fact it gave drivers a better view of oncoming traffic. This, in turn, made it easier and safer
to overtake.

How did Audi get their logo?

The Audi logo came about after a merger of four companies. In 1928, engineer Jorgen Rasmussen
acquired majority shares in Audi. Soon, the company merged with Rasmussen’s DKW, Wanderer and
Audi’s old competitor Horch to form the Auto Union in 1932. The merger led to the creation of the four
interlocking rings. Funnily enough, this emblem was also similar to the Olympic Rings (which you’ve
also probably noticed). So much so that the Olympic Committee eventually took them to court in 1995.
The result was as you’d expect, the court ruled that the Audi rings had nothing to do with the Olympic
rings. And so the two logos live in harmony.

What happened to Audi during World War Two?

With the new partnership in place, technology became the focal point for Audi, something that has since
remained central to the company’s corporate identity. In the early days of the Auto Union era, Audi
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became the first European car company to offer a six-cylinder-engine, front wheel drive model. This
was the Audi Front.
However, it wasn’t before long that concentration turned to the German war effort. The firm began
producing armored cars for the military. Of course, this made them prime targets for Allied bombing
and this took its toll on production. After the war, Audi found their Zwickau factory deep inside the
Soviet-influenced GDR and the Auto Union no longer a functioning entity. The factories were
dismantled as part of the war reparations, under the orders of the Soviet military. In August 1948, Auto
Union AG was deleted from the commercial register which essentially liquidated Germany’s Auto
Union. Of course, that wasn’t the end. The Auto Union executives looked at relocating what they had
left of the company to West Germany, where they set up a spare parts operation in Bavaria.
Interestingly, the factory in Zwickau restarted assembly in 1949 and created cars for East Germany. It
was in this factory that the Trabant was created. The Trabant was considered the symbol of East
Germany and the fall of the Eastern Bloc. It was uncomfortable, noisy, slow, and extremely desirable
in East Germany. The waiting time for the Trabant was more than a decade. Over three million of these
were produced in total.
When were Audi bought by Daimler-Benz?
The reformed company was launched in 1949 with the help of aid from the Marshall Plan. They
continued to produce front-wheel drive vehicles. However, there was no plant suitable to mass produce
automobiles and they had to rent their space elsewhere. It was only ten years later when an investor had
the funds to construct a major car plant. Daimler-Benz took an 87% holding in the Auto Union and
increased this to 100% in 1959. But, small two-stroke cars weren’t in their interests and the company’s
ageing range didn’t benefit from the boom of the 1960s the same way their competitors did. So, they
disposed of it.But by this time the Auto Union had a huge factory and were ready to produce four-stroke
engines and therefore ready for a period of growth. The Audi name was resurrected after 25 years in
1965.

When were Audi bought by VW?

In 1964 VW had a 50% holding in the company. They then bought the brand new factory eighteen
months later and used it to assemble additional Volkswagen Beetles.
Initially Volkswagen was hesitant to the idea of Auto Union producing their own models, having bought
the plant with the intention of increasing production of their cars. However, the Auto Union engineers
developed the first Audi 100 in secret. Luckily for them, Heinz Nordhoff (the VW chair) was impressed
and called for the production of the car. The first generation Audi 80 was launched in 1972 and the
resurrection of the Audi name was officially complete. What followed was the succession of four-stroke
models 60, 75, 80 and Super 90.

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Unintended Acceleration Allegations
In 1986 an episode of 60 Minutes aired in the United States featuring six people who had sued Audi
after their Audi 5000 was suffering from unintended acceleration. This unintended acceleration had
been linked to six deaths and 700 accidents between the years of 1982 and 1987.Interestingly, a
subsequent investigation into the 60 Minutes broadcast found that they had actually engineered the
failure themselves. Another investigation by the National Highway Traffic Safety Administration found
that a majority of the unintended acceleration cases were caused by driver error. While there was a mild
defect found in the idle-stabilizer system, it caused only a minor acceleration. This, in turn, caused the
driver to panic which contributed to the severity of the incident.

Audi’s Modern Era

Audi’s modern era has proven to be as technologically innovative as ever, starting with the 1980s
turbocharged Quattro, the world’s first four-wheel drive sports coupe. The company’s official name was
shortened to Audi AG, and this was the start of the shift towards the luxury market. In 1987 the Audi
put forward the Audi 90, the much more elegant and superior follow up from the Audi 80 which was
developing a ‘grandfather’s car’ image. The release of the Audi V8 was Audi’s debut into the upscale
market, competing with the likes of Mercedes-Benz and BMW.

Audi Today
Sales grew strongly during the 2000s and this continued into this decade. Audi saw record sales in May
2011 and produce vehicles in seven countries across the world.
That pretty much brings us to the present day. Audi is internationally known as a prestige brand, on par
with its German counterparts, Mercedes and BMW. The firm has continued to develop innovations such
as diesel technology, aluminium bodies, the “multitronic” Continuously Variable Transmission (CVT),
and unique SUVs. This innovation has contributed to a resurgence in the American market and success
on the racetrack, including seven world records. It’s been announced recently that Audi SUVs are set
to make up half of overall Audi sales and they are due to launch their flagship SUV, the Audi Q8 next
year. If you are interested in any of the current Audi’s you can search for them in the search function
below.

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SKODA COMPANY
Founded in 1895 by Vaclav Laurin and Vaclav Klement, ŠKODA is one of the world’s oldest car
manufacturers, and proudly celebrates over 100 years of production. Based in Mladá Boleslav in the
Czech Republic, ŠKODA is now available in over 100 countries.
Head office is in the Czech Republic where ŠKODA has grown to be one of the largest companies and
a key player in the economy. ŠKODA employ over 23,500 people, working with a further 265
subcontractors. This makes up 7.5% of all exports out of the Czech Republic. The dynamic development
of ŠKODA and its successful worldwide expansion is a result of our ongoing commitment to quality
and innovation. Over 100 years ago, ŠKODA’s founders Laurin and Klement claimed "…only the best
we can do is good enough for our customers", a motto which is more true today than ever.
Skoda India is a subsidiary of the Czech automobile manufacturer Skoda Auto and was established in
2001. However, Skoda has had a presence in India since the 1950s, when it first started exporting its
cars to the country.
In the 1960s, Skoda collaborated with Hindustan Motors to produce the Octavia and the superb models
in India. While these models were well-received, Skoda's operations in India were limited due to
restrictions on foreign companies during that time.
In 2001, Skoda re-entered the Indian market as a wholly owned subsidiary of Volkswagen Group India.
Its first locally manufactured model was the Skoda Octavia, launched in 2002. This was followed by
the launch of Skoda Fabia in 2007 and the Skoda Laura (re-badged Octavia) in 2011.
Skoda India saw a significant increase in sales and market share during this period, thanks to its quality
products and competitive pricing. In 2010, Skoda India opened its own production facility in
Aurangabad, Maharashtra, with a capacity of 40,000 vehicles per year.
In recent years, Skoda India has focused on expanding its product portfolio and strengthening its
presence in the Indian market. It launched the Skoda Rapid in 2011, followed by the Skoda Yeti in 2012
and the Skoda Superb in 2013. In 2017, Skoda launched the Kodiaq, its first full-size SUV in India.
However, Skoda's journey in India has not been without its challenges. The brand has faced criticism
for its after-sales service and high maintenance costs. It has also faced tough competition from other
foreign and domestic car manufacturers in the Indian market.
In 2018, Skoda India announced its 'India 2.0' project, through which it plans to invest 1 billion euros
in the country to develop new products and increase its market share. As part of this project, Skoda
India will also be responsible for developing and manufacturing Volkswagen Group cars in India.
The Volkswagen Group with its head office in Wolfsburg (Germany) is one of the world’s leading
automobile manufacturers and the largest carmaker in Europe.
The Group is made up of twelve brands from seven European countries: Volkswagen Passenger Cars,
Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial
Vehicles, Scania and
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SIGNING OF THE JOINT VENTURE AGREEMENT BETWEEN VOLKSWAGEN AND ŜKODA
The interest expressed by Volkswagen met with a very positive response from the government in
Prague, which took a liberal economic line, having already begun the process to privatize state-owned
companies in 1990. The government was also looking for a strategic partner for Czech industry’s
flagship and one of the country’s largest foreign exchange earners. So a self-confident Czech
government began negotiations with interested car-makers, calling for a clear commitment to the
continued existence and further development of Skoda. Volkswagen was happy to comply with this
concern, since it coincided with the company’s own plans for the future positioning of the new brand.
At the same time, Wolfsburg indicated its willingness to make major investment. A total of nine billion
Deutschmarks was earmarked over a five-year period for modernising production facilities and
expanding capacity to an annual 400,000 units.

BENTLEY MOTORS
Bentley Motors, a British luxury car manufacturer, has a rich history dating back to its founding in 1919
by W. O. Bentley in Cricklewood, North London. Let’s delve into the fascinating story of Bentley:
Walter Owen Bentley established Bentley Motors in London on January 20, 1919. Six months later, the
company was wound up in the course of a financial restructuring and refounded under the same name.
Bentley had a passion for engines and speed. He had established a reputation as a fine engineer by
developing two aircraft engines in World War I before his 3-litre Bentley prototype attracted attention
at the London Motor Show in November 1919. The remarkably uncomplicated vehicle’s handling,
performance and braking qualities were ground-breaking, and it featured a newly designed 4-cylinder
engine which could take the car to the then magical speed of 100 miles per hour. The first mass
production vehicle, delivered to its owner in September 1921, was made in a small factory established
by Bentley at Cricklewood in North London. Almost 150 cars had been assembled there by 1922, while
production costs multiplied as sales grew. At this point it became apparent that the engineering expertise
of Bentley, the visionary, was not matched by his business acumen. In 1924, despite financial

37
difficulties, he began to develop a 6.5 litre model intended as his masterpiece. Two years later, the
luxurious model was ready for production but the company was bankrupt. The millionaire businessman
and car enthusiast Woolf Barnato came to the rescue and took over the company, with W.O. Bentley
retained as Managing Director. Following a brief revival – which, in 1929, saw Bentley Motors record
its first and only profit – the Great Depression, poor cost awareness on the part of management and the
development of the 8-litre Bentley once again drove the company to bankruptcy in July 1931.
The Bentley brand had been the driving force in the growth of Rolls Royce Motor Cars for a decade
when the Vickers Group put the chronically underfunded producer of luxury automobiles up for sale in
October 1997. The royal carmaker was ideal for the development of a luxury segment under the
Volkswagen Group umbrella: Bentley supplied the sporty and luxurious model range and Rolls Royce
the illustrious name. In March 1998, it became clear that Volkswagen could not have both. On July 3,
1998 the Wolfsburg manufacturer acquired the Bentley brand, the factory in Crewe and the right to use
the Rolls Royce brand name until the end of 2002. Volkswagen’s brand policy had been mainly focused
on Bentley cars from the outset. By its acquisition, the Volkswagen Group made a successful entry into
the luxury segment. Rolls Royce and Bentley once again went their separate ways after 2003, resuming
the tradition started in the early days of their history, when the two companies had been competitors.
By 2009, sales had fallen back to 4,616 units. The recovery began in 2010 with the launch of the new
Mulsanne`. The new flagship embodied an exemplary combination of supreme luxury with the
outstanding performance of the 12-cylinder engines. The new-generation Continental GT, featuring
more distinct contours, extra interior space and additional driver assistance and information systems,
delivered a sportily elegant and luxurious facelift to the model, enabling the brand to achieve turnaround
in 2011. Bentley returned to profit after three loss-making years. Having delivered 8,510 vehicles to
customers in 2012, sales had risen to 11,020 units by 2014, thanks in part to the eight cylinder Flying
Spur. This enabled Bentley to build further on its leadership position in the luxury car segment.
Increased unit sales generated an operating profit of EUR 170 million. Key drivers of growth were the
new V8 engines in the Continental GT and GTC as well as the launch of the new Continental GT Speed,
which with a top speed of 330 kilometers per hour (205 mph) became the fastest road legal Bentley
ever.

BUGATTI COMPANY
The Bugatti Atlantic, one of the most stunning cars ever made. Ph. Flickr / SOCIAL is BETTER
The funder:
Ettore Bugatti was born on September 15, 1881, in Milan. He study at Milan’s Academy of Art. Then,
he did an apprentice with the Prinetti & Stucci bicycle factory. He was bewitched by mechanics and

38
technology. In fact, automobiles were starting to take over the industry. In 1897, he raced his first
vehicle, a bicycle.
By 1901, Ettore had created his first automobile with the help of the Gulinelli brothers. He introduced
it in Milan at the International Exhibition. And he won the T2 prize for the construction.
Bugatti approached the de Dietrich Company and asked them to produce his vehicle. Finally, the license
was granted. Since Bugatti was still a minor, his father signed the contract. In the next few years, he
produced five more vehicles for Cologne’s Deutz Company.
The Mathias Contract
Ettore Bugatti spent a great deal of time developing and building racecars. But the de Dietrich Company
preferred developing a series production. Since Bugatti didn’t oblige, his contract was terminated. Then,
he looked for work at Emi Mathias. He designed a new automobile and installed a 4-cylinder engine.
Within two years, problems ensued. Again, the contract was terminated.
Bugatti Forges Ahead
Ettore didn’t give up. In fact, his goal was to design race cars. He developed an automobile that had a
50hp engine in 1906. Deutz obtained a license to produce it. And Bugatti led the production department.
During his free time, Ettore worked in the basement of his apartment in Cologne, creating automobile
designs. Here, he developed the Model 10.

Main Plant
In early 1909, he opened his first business in the town of Molsheim, Germany. At the beginning, he
built five aircraft and ten automobiles.

Success
In January 1910, the factory delivered the first machines. Five cars were built that year. All five sold.
The same year, Bugatti’s assistant, Ernest Fredrich drove Bugatti automobiles in races. This was the
beginning of the legendary success for Bugatti cars on the racing circuit.
Bugatti experienced several wins on the track in 1911. That year, he signed contract with Peugeot.
Hence, the Babe Peugeot with a Model 19 engine was born.

Aircraft Engines
Between 1914 and 1918, the Italian manufacturer developed and produced aircraft engines. Even after
the war ended. Bugatti increased production and hired more employees.

39
Racing history
In 1921, Bugatti’s race team took first, second, third and fourth place in Brescia at the Voiturettes Grand
Prix. The wins immortalized the Bugatti Model 13. From that time forward, every 16-valve engine was
stamped Brescia in honor of the race site.
In the following years, he designed various successful and innovative models. Like the model 29/30
with hydraulic brakes and a chassis in the shape of a cigar. Or the model 32, with a blade-shaped chassis,
known as the “Tank.” Then the model 35 with sport aluminum spoke wheels and a 2-liter 8-cylinder
engine. Unfortunately, the luck didn’t last forever, in fact, by the 1930s, the company entered a crisis.

Sun Among the Clouds

The years of 1932 to 1934 were very difficult for Bugatti. However, Ettore was able to find a glimmer
of sun among the clouds. He won a contract with the French government to build a new, high-speed
train. Railcars were built at the Bugatti plant and the technically superior Royale engines were used.
The French government was delighted with the result. This contract put Bugatti back on solid financial
ground. The train was the exclusive design of Ettore himself. The only car being produced at this time
was the Model 57. Approximately 750 of these sedans were built and sold.
Strike!
Bugatti’s world was changed forever in 1936. His employees wanted better working conditions and an
increase in pay. Ettore had always treated his workforce fairly, providing good social benefits and above
average earnings. This caused him to take the strike demands personally. Though he had always had a
close relationship with his employees, he now withdrew to his office in Paris. The strike caused a rift in
the Molsheim plant that never healed.

Le Mans Victory
In 1937, drivers Robert Benoist and Pierre Wimille were victorious at Le Mans. They drove a Model
G57 Tank.
As the decade of the 1930s came to a close, Ettore Bugatti once again found himself and his company
in financial upheaval. Jean, his son, encouraged him to enter a team to race at Le Mans. Drivers Pierre
Wimille and Pierre Veyron shared a Bugatti car with a 57 series chassis that had a compressor. The two
brought in an important win. This was the last big victory for the Company. Bugatti’s son, Jean, was
killed during a test drive on August 11, 1939. Within a few days, WWII broke out.

Post War
When WWII ended, a few weak attempts were made to revive production at the Molsheim factory.
Because of financial problems, Bugatti was unable to produce any new automobiles.

40
Ettore Bugatti Dies
Ettore Bugatti contacted a lung infection and died in a Paris military hospital on August 21, 1947.
During the time that he led the Company, approximately 7,900 automobiles were produced. Many of
them have survived to present day, which attests to Ettore’s genius and skill. He left behind a legacy of
great contributions in the history of the automobile. A history that is difficult to ignore.

LAMBORGINI COMPANY:-
Foundation by Ferruccio Lamborghini (1963):
Founded by Ferruccio Lamborghini, an Italian industrialist and entrepreneur. Initially, Lamborghini was
established as a manufacturer of high-performance sports cars to rival established brands like Ferrari.

Introduction of the 350GT (1964):

Lamborghini's first production car, the 350GT, was unveiled at the Geneva Motor Show in 1964.It
featured a V12 engine designed by Giotto Bizzarrini, and it set the stage for Lamborghini's reputation
for high-performance and luxury.

Miura: The Iconic Supercar (1966):

The Lamborghini Miura, introduced in 1966, became a symbol of automotive excellence and design
innovation. With its mid-engine layout and striking design by Marcello Gandini, the Miura redefined
the concept of a supercar.

Expansion and Diversification:

In the late 1960s and early 1970s, Lamborghini expanded its lineup with models like the Espada, Islero,
and Jarama, catering to different segments of the luxury sports car market.

Financial Struggles and Acquisition:

Despite critical acclaim for its cars, Lamborghini faced financial difficulties in the 1970s.In 1974, the
company was sold to Swiss businessman Georges-Henri Rossetti and later passed through several
ownership changes.

Evolution under Audi Ownership:

Audi AG, a subsidiary of Volkswagen Group, acquired Lamborghini in 1998.Under Audi's ownership,
Lamborghini experienced a revitalization, with increased investment in research, development, and
production facilities.

41
Launch of Modern Icons:
Lamborghini launched several iconic models in the late 20th and early 21st centuries, including the
Diablo, Murciélago, Gallardo, and Aventador.These cars continued Lamborghini's tradition of
combining cutting-edge technology with striking design and exhilarating performance.

Introduction of SUVs:
In 2018, Lamborghini entered the SUV market with the Urus, combining the brand's performance
heritage with the practicality and versatility of an SUV.

Focus on Innovation and Sustainability:

Lamborghini has increasingly focused on innovation and sustainability, with concepts like hybrid
powertrains and alternative materials being explored to meet evolving market demands and
environmental regulations.

Continued Legacy and Future Prospects:

Today, Lamborghini remains a symbol of luxury, performance, and exclusivity, with a global presence
and a dedicated enthusiast following. The company continues to innovate and push boundaries in the
automotive industry, ensuring its place among the elite brands of the world.

PORSCHE COMPANY
Dr. Ing. H.c. F. Porsche AG, usually shortened to Porsche is a German automobile manufacturer
specializing in high-performance sports cars, SUVs and sedans, headquartered in Stuttgart, Baden-
Württemberg, Germany. The company is owned by Volkswagen AG, a controlling stake of which is
owned by Porsche Automobil Holding SE. Porsche's current lineup includes the 718, 911, Panamera,
Macan, Cayenne and Taycan. The origins of the company date to the 1930s when Czech-German
automotive engineer Ferdinand Porsche founded Porsche[4] with Adolf Rosenberger, a keystone figure
in the creation of German automotive manufacturer and Audi precursor Auto
Union, and Austrian businessman Anton Piëch, who was, at the time, also Ferdinand Porsche's son in
law. In its early days, it was contracted by the German government to create a vehicle for the masses,
which later became the Volkswagen Beetle. After World War II, when Ferdinand would be arrested
for war crimes, his son Ferry Porsche began building his own car, which would result in the Porsche
356.
In 2009, Porsche entered an agreement with Volkswagen to create an 'integrated working group' by
merging the two companies' car manufacturing operations. By 2015, Porsche SE, the holding company

42
spun off from the original Porsche firm, had a controlling interest in the Volkswagen Group, which
included Audi and Lamborghini as subsidiaries.

Founding by Ferdinand Porsche (1931):

The Porsche Company was founded in 1931 by Ferdinand Porsche, an Austrian automotive engineer.
Initially, the company operated as a consulting firm, offering engineering and design services to other
automotive manufacturers.

Volkswagen Beetle and the Porsche 64 (1930s):

In the 1930s, Ferdinand Porsche designed the Volkswagen Beetle for the German government. The
Porsche 64, a prototype sports car based on the Beetle's platform, was developed as a race car. It laid
the foundation for Porsche's future sports car designs

The Birth of the Porsche 356 (1948):

The first car to bear the Porsche name, the Porsche 356, was introduced in 1948.Designed by Ferdinand
Porsche's son, Ferry Porsche, the 356 was a lightweight, rear-engine sports car that gained popularity
for its performance and handling.

Success in Motorsports:
Throughout the 1950s and 1960s, Porsche achieved success in motorsports, particularly in endurance
racing events like the 24 Hours of Le Mans.Iconic models like the Porsche 550 Spyder and the Porsche
917 cemented Porsche's reputation as a dominant force in motorsports.

Introduction of the Porsche 911 (1963):

The Porsche 911, introduced in 1963, became one of the most iconic sports cars of all time. Featuring
a rear-engine layout and timeless design by Ferdinand "Butzi" Porsche, the 911 offered exhilarating
performance and handling characteristics.

Expansion of Product Lineup:

In addition to the 911, Porsche expanded its product lineup with models like the 914, 924, 944, and 928,
catering to different market segments and preferences.

43
Financial Challenges and Acquisition by Volkswagen:
In the late 1980s and early 1990s, Porsche faced financial challenges due to economic downturns and
overexpansion. In 2012, Volkswagen AG acquired the majority stake in Porsche, forming the
Volkswagen Group.

Modern Era and Innovation:

In recent years, Porsche has continued to innovate with models like the Cayenne SUV, Panamera sedan,
and electric Taycan. The company has embraced hybrid and electric technologies while maintaining the
performance and driving dynamics that define the Porsche brand.

Legacy and Global Presence:

Today, Porsche remains one of the most renowned and respected automotive brands globally, known
for its engineering excellence, performance heritage, and dedication to driving enthusiasts. With a
diverse product lineup and a commitment to innovation, Porsche continues to shape the future of
automotive engineering and design.

SCANIA COMPANY
Founding and Early Years (1891):
Scania was founded in 1891 in Sweden as Svenska Aktiebolaget Vagnfabriks Aktiebolaget i Södertälje
(Vabis) to manufacture bicycles. In 1900, Vabis produced its first automobile, marking the beginning
of its journey in the automotive industry.

Merger with Scania (1911):

Scania, another Swedish company specializing in manufacturing trucks and buses, merged with Vabis
in 1911 to form Scania-Vabis. The merger consolidated their expertise in automotive manufacturing
and established the foundation for Scania's future growth.

Growth and Expansion (Early to Mid-20th Century):

Scania-Vabis experienced steady growth and expanded its product lineup to include trucks, buses, and
diesel engines. The company gained a reputation for producing reliable and durable vehicles,
establishing a strong presence in the Scandinavian and European markets.

44
Technological Advancements:
Throughout the mid-20th century, Scania-Vabis made significant advancements in automotive
technology, including the development of turbocharged diesel engines. These innovations enhanced the
performance, fuel efficiency, and reliability of Scania's vehicles, further solidifying its position in the
commercial vehicle market.

International Expansion:
In the latter half of the 20th century, Scania-Vabis expanded its operations internationally, establishing
subsidiaries and production facilities in various countries. The company focused on developing tailored
solutions for different markets and industries, catering to the specific needs of customers worldwide.

Acquisition by Volkswagen Group (2008):

In 2008, Volkswagen Group acquired a majority stake in Scania, strengthening its position as one of the
world's leading commercial vehicle manufacturers. The acquisition provided Scania with access to
Volkswagen's resources and technologies, facilitating further growth and innovation.

Focus on Sustainability and Innovation:

In recent years, Scania has placed a strong emphasis on sustainability and innovation, introducing hybrid
and electric vehicles, as well as alternative fuel solutions. The company is committed to reducing its
environmental impact and promoting sustainable transportation solutions for the future.

Modern Era and Continued Success:

Today, Scania is recognized as a global leader in the commercial vehicle industry, known for its high-
quality products, advanced technology, and commitment to sustainability. With a diverse range of
trucks, buses, and engines, Scania continues to meet the evolving needs of customers’ worldwide,
driving progress in transportation and logistics. Scania was listed on the NASDAQ OMX
Stockholm stock exchange from 1996 to 2014.The Company is a subsidiary of Traton, part of
the Volkswagen Group.

MAN COMPANY
St. Antony
MAN SE, a German mechanical engineering company, was founded in 1758 in Nuremberg, Germany.
Initially, it specialized in producing steam engines and heavy machinery. Over the years, MAN
expanded its operations to include the manufacturing of trucks, buses, diesel engines, and industrial
equipment.

45
Volkswagen's Acquisition (2011):
In 2011, Volkswagen AG acquired a majority stake in MAN SE, marking a significant milestone in the
company's history. Volkswagen’s acquisition aimed to strengthen its position in the commercial vehicle
market and enhance synergies among its various brands.

Integration into Volkswagen Group:

Following the acquisition, MAN SE became part of Volkswagen Truck & Bus GmbH, a subsidiary of
Volkswagen AG focused on commercial vehicles. The integration allowed MAN to leverage
Volkswagen's resources, technology, and global presence to drive growth and innovation.

Collaboration with Scania:

As part of the Volkswagen Truck & Bus group, MAN collaborated closely with Scania, another
commercial vehicle manufacturer owned by Volkswagen.
The collaboration aimed to achieve synergies in product development, production, and distribution,
while maintaining the distinct identities of both brands.

Expansion and Diversification:

Under Volkswagen's ownership, MAN continued to expand its product lineup and global footprint,
introducing new models and entering emerging markets.
The company focused on developing innovative solutions for transportation and logistics, including
hybrid and electric vehicles, as well as digitalization initiatives.

Focus on Sustainability:
MAN placed a strong emphasis on sustainability, developing eco-friendly technologies and alternative
fuel solutions to reduce carbon emissions and environmental impact. The company invested in research
and development to drive progress in sustainable transportation and support the transition to cleaner
energy sources.

Challenges and Opportunities:

Like other automotive manufacturers, MAN faced challenges such as economic fluctuations, regulatory
changes, and market competition. However, Volkswagen's ownership provided MAN with stability and
support to navigate these challenges and capitalize on opportunities for growth.

46
Continued Success and Outlook:
Today, MAN remains a leading manufacturer of commercial vehicles, known for its quality, reliability,
and innovative solutions.
With Volkswagen's backing, MAN is well-positioned to continue its legacy of excellence and contribute
to the future of transportation and mobility.

A Takeover by Volkswagen
In July 2011, Volkswagen AG acquired a 55.9% voting stake and 53.7% of the share capital in MAN
SE. Pending regulatory approval, Volkswagen planned to merge MAN and Scania AB to create Europe's
largest truck maker. The combined trucks group is planned to save about 400 million euros per year,
mainly by bundling procurement. Regulatory approval was granted, and the takeover was completed in
November 2011.
In April 2012, MAN SE announced that Volkswagen had increased its interest to a 73.0% voting stake
and 71.08% of the share capital.
On 6 June 2012, Volkswagen AG announced that it had increased its share of voting rights in MAN SE
to 75.03%, paving the way for a domination agreement to be put in place.
From January 2019, MAN's Power Engineering division, made up of MAN Energy Solutions (formerly
MAN Diesel and Turbo) and MAN SE's 76% stake in RENK AG were sold to the Volkswagen Group,
leaving MAN SE as the holding company for commercial vehicle units, MAN Truck & Bus, and MAN
Latin America, under the responsibility of Volkswagen's subsidiary, Traton SE.
In March 2019, MAN SE announced that 94.36% of its shares were held by Traton.
In February 2020, Traton announced that it intends to merge MAN SE with Traton to simplify the latter's
overall structure. As a result of the merger, MAN Truck & Bus, Scania AB, and Volkswagen Caminhões
e Ônibus will become wholly owned, direct subsidiaries of Traton.
In September 2020, the company announced that it will be cutting over 9,500 job positions at its MAN
Truck & Bus division, as a result of the COVID-19 pandemic economic effects. The company made the
move to generate €1.8 billion of cost savings by 2023.

S.E.A.T. COMPANY
History
Establishment
Spain is the world's eighth-largest manufacturer of automobiles. Its car market stands among the largest
in Europe. However, this has not always been the case; in the first half of the 20th century, Spain's
economy was relatively underdeveloped compared to most other Western European countries and had
47
a limited automobile market. In this period, car production was limited, with only a few low-volume
local manufacturers catering mainly to the luxury end of the market, of which Hispano-Suiza was the
most successful. Spain's limited market for mass-produced vehicles was taken over by foreign
companies operating through subsidiaries that either imported cars or assembled cars from imported
parts, depriving the country of the technological know-how and large investments needed for mass
production. The situation greatly deteriorated with the Spanish Civil War of 1936 to 1939. Car demand
collapsed not only due to the greatly reduced purchasing power of Spaniards caused by war devastation
but also because the multinational subsidiaries either ceased operations or were severely stricken by the
war and its aftermath.

SEAT's first emblem

SEAT under its current name was founded on May 9, 1950, under the denomination 'Sociedad Española
de Automóviles de Turismo, S.A.' (S.E.A.T.) by the Instituto Nacional de Industria (INI) with a starting
capital of 600 million pesetas – equivalent today of almost 3.6 million euros – in the form of 600,000
shares of 1000 pesetas each, and in a time when the country needed remodeling the fundamental
structures in its national economy, just after the end of World War II. The birth of SEAT came almost
a year and a half after the Spanish government and six Spanish banks ('Banco Urquijo', 'Banco Español
de Crédito (Banesto)', 'Banco de Bilbao', 'Banco de Vizcaya', 'Banco Hispano-Americano', and 'Banco
Central') had signed on October 26, 1948, an alliance contract with the Italian car manufacturer Fiat to
form a partnership with a foreign ally to bring to life Spain's major car manufacturer. The favoured
bidders were Germany's Volkswagen and Italy's Fiat. Fiat's bid won for several reasons, including Fiat's
prominence in Spain and the fact that the company established the short-lived 'Fiat Hispania' plant in
Guadalajara, which was destroyed in the Spanish Civil War. Fiat's collaboration with the French
company Simca proved Fiat's ability to manage complex international projects. Fiat's experience in the
semiprotected car market in Italy was seen as the most easily transferable to the one in Spain, both of

which had, at the time, customers of low incomes and limited markets for cars, as well as similar road
conditions. In Italy, Fiat dominated the market for vehicles under 12 horsepower, which would initially
be the main market segment in Spain. The relative economic isolation of World War II damaged Italy
and made Fiat interested in opportunities outside Italy, meaning that the negotiations with the Italian
48
manufacturer could prosper more easily in favour of Spanish interests than those from other countries.

In 1947, the Banco Urquijo group revived the S.I.A.T. project. In the next year, the talks ended
successfully with the signing of a three-part contract, with the understanding that the INI would hold a
51% controlling interest, as well as a ruling act in the new company preserving a focused approach of
the enterprise in the 'national interest'. The Banco Urquijo group, although a minority shareholder,
looked forward to assuming a leading role in the future as soon as the company was privatised. Partner
carmaker Fiat was offered a 7% share in exchange for its technical assistance. This way, SEAT would
not only be able to reinitiate the country's economic recovery as the largest employer in the 1960s and
'70s but would also contribute to the industrialization of a largely rural economy.
SEAT's Barcelona Zona Franca site and laboratories
In 2006, the new SEAT corporate head office was opened in Martorell and the Martorell SEAT Design
Centre superseded the Volkswagen Group Design Centre Europe at Sitges, which previously hosted the
design facility jointly owned by SEAT, Volkswagen, and Audi, as on February 23 of the same year, an
agreement over the transfer of the installations of the latter to the City of Sitges was closed, with the
Martorell's Design Centre official opening eventually taking place on December 30, 2007.
On January 12, 2007, the inauguration of the building of the SEAT Service Centre next to the southern
entrance of the Martorell factory was held, the department focused on technical support, after-sales and
marketing purposes, and covering the feedback and the relationship of the brand with the customers and
its worldwide network. In January 2007, the operation of the SEAT Prototypes Centre of Development
located in the heart of the Martorell industrial complex began, a facility inaugurated on July 16 of the
same year, bringing together activities related to the virtual and physical preproduction processes of
new models (prototyping, modelling, pilot product development, and series analysis), thus shortening
development times for prototypes and preproduction vehicles, as well as saving costs with the use of
modern technologies such as virtual simulation.

49
In September 2023, it was announced that the SEAT brand would be eliminated on passenger cars by
2030 once the current models reach the end of their respective lifespans as a result of poor sales, with
resources shifted to the stronger selling Cupra brand. However, Volkswagen did not completely rule
out using the SEAT brand for another automotive role.
SEAT, Sociedad Española de Automóviles de Turismo, S.A., is a Spanish automobile manufacturer
founded on May 9, 1950, by the Instituto Nacional de Industria (INI), a state-owned industrial holding
company in Spain. Here's a brief history of SEAT under Volkswagen's ownership:

Foundation and Early Years (1950s-1970s):

SEAT was established with the aim of promoting industrialization and economic development in Spain.
In the early years, SEAT produced licensed models of Fiat cars under agreements with Fiat, including
the SEAT 1400 and SEAT 600, which became popular in Spain. SEAT gradually expanded its model
lineup and production capacity, becoming a significant player in the Spanish automotive market.

Acquisition by Volkswagen (1986):

In 1986, Volkswagen AG acquired a majority stake in SEAT, marking a new chapter in the company's
history. Volkswagen’s acquisition brought new investment, technology, and management expertise to
SEAT, revitalizing the brand and enabling it to compete more effectively in the global market.

Integration into Volkswagen Group:

SEAT became a wholly-owned subsidiary of Volkswagen Group, joining a portfolio of automotive
brands that includes Volkswagen, Audi, Porsche, and others. The integration into Volkswagen Group
provided SEAT with access to Volkswagen's resources, platforms, and technology, enabling it to
develop new models and expand its presence in international markets.

Product Development and Expansion:

Under Volkswagen's ownership, SEAT focused on developing distinctive models that appealed to a
wide range of customers. SEAT introduced new models, such as the Ibiza, Leon, and Ateca, which
received critical acclaim for their design, performance, and value proposition. The company expanded
its product lineup to include compact cars, SUVs, and electric vehicles, catering to changing consumer
preferences and market trends.

50
Globalization and Market Presence:
SEAT expanded its presence beyond Spain and Europe, exporting its vehicles to markets around the
world. The company strengthened its position in key markets, such as Germany, the UK, and Latin
America, establishing a reputation for quality, reliability, and affordability.

Focus on Innovation and Sustainability:

SEAT embraced innovation and sustainability, investing in research and development to develop
advanced technologies and eco-friendly solutions. The company introduced hybrid and electric vehicles,
as well as initiatives to reduce carbon emissions and promote sustainable manufacturing practices.

Continued Success and Outlook:

Today, SEAT is a key player in the automotive industry, known for its stylish designs, dynamic
performance, and innovative features. With Volkswagen's support and guidance, SEAT is well-
positioned to continue its growth trajectory, adapt to changing market conditions, and drive progress in
mobility and transportation.

CUPRA COMPANY
In 2018, the previous range-topping Cupra trim was launched as a stand-alone brand, alongside SEAT,
and at the same time, SEAT Sport became Cupra Racing. Cupra describes itself as 'an unconventional
challenger brand, based on stimulating style and contemporary performance that inspires the world from
Barcelona with progressive cars and experiences. Cupra has its corporate headquarters in Martorell,
Spain, and a network of specialized points of sale around the world.
CUPRA is a Spanish automotive brand that started as SEAT's performance division before becoming a
standalone brand under the Volkswagen Group.
SEAT Sport: SEAT, a Spanish automaker, established its motorsport division, SEAT Sport, in 1985.
This division was responsible for developing high-performance versions of SEAT cars for motorsport
purposes.

CUPRA as a Trim Level: In 1996, SEAT introduced the CUPRA (CUP Racing) trim level on its Ibiza
model, denoting high-performance variants of its cars. These models were known for their sportier
design elements and enhanced performance.

51
Expansion of CUPRA Lineup: Over the years, SEAT expanded the CUPRA lineup to include
performance versions of various models such as the Leon and the Ateca, catering to enthusiasts seeking
more dynamic driving experiences.

Autonomous Brand: In 2018, SEAT announced that CUPRA would become a separate brand focusing
exclusively on high-performance vehicles. This move aimed to elevate CUPRA's status and differentiate
it from the mainstream SEAT brand.

CUPRA as a Standalone Brand: In 2019, CUPRA officially became a standalone brand under the
Volkswagen Group umbrella, similar to Audi or Porsche. This transition allowed CUPRA to have
greater autonomy in its operations and branding.

New Models and Technologies: As a standalone brand, CUPRA has continued to develop high-
performance vehicles, incorporating advanced technologies such as hybrid and electric powertrains. The
brand has also expanded its lineup with models like the For mentor, a compact SUV, and the el-Born,
an electric hatchback.

Global Expansion: CUPRA has focused on expanding its presence globally, targeting markets beyond
Europe. This includes efforts to establish a foothold in regions such as Asia and Latin America,
capitalizing on the growing demand for high-performance vehicles.

52
 CHAPTER NO.2. REVIEW OF LITERATURE

TOPIC NAME :- The role of novel instruments of brand communication and brand image in building
consumers’ brand preference and intention to visit wineries
AUTHOR NAME: - Mar Gómez-Rico ◽ Arturo Molina-Collado ◽ Maria Leticia Santos-Vijande ◽
Maria Victoria Molina-Collado ◽ Brian Imhoff
This research aims to analyze brand communication and brand image as specific drivers of wine brand
preference and their influence on wine consumers’ intention to visit associated wineries. Specifically,
this paper enhances the understanding of the roles of advertising-promotion, sponsorship-public
relations, corporate social responsibility, and social media in brand communication, as well as
functional, emotional and reputation components in brand image development in the context of wine
tourism industry. Data was collected through a structured and self-administered questionnaire from 486
visitors to wineries in Spain. Partial least squares regression was used to evaluate the measurement
model and the hypotheses. The empirical analysis shows that brand communication and brand image
have similar positive effects on brand preference, and that brand image mediates the relationship
between brand communication and brand preference. This research suggests implications for theory and
practice relative to brand management in terms of communication and image; and it proposes insights
into novel communication tools and marketing activities for the winery tourism industry. Firms should
employ a holistic evaluation of brand communication to involve the whole organization, which would
enhance the strategic role that brand communication plays.

TOPIC NAME: - Internal brand management, brand understanding, employee brand commitment, and
brand citizenship behavior: a meta-analysis
AUTHOR NAME: - Mona Afshardoost ◽ Mohammad Sadegh Eshaghi ◽ Jana Lay-Hwa Bowden
This paper attempts to provide an understanding of employee behavior among gen Y known as
millennial workers in banking industry. This study provides insights into how internal brand
management, brand commitment, job satisfaction shape brand trust, brand citizenship behavior, and
intention to stay. Data were collected from 635 employees of public banking in Indonesia. Structural
equation modeling (SEM) was used to test the model and the hypotheses. Findings reveal that internal
brand management has a significant effect on brand commitment and job satisfaction. This study also
found that brand commitment has strong impact on brand trust and brand citizenship behavior. Then,
job satisfaction has significant effect on brand citizenship behavior intention to stay. The distinct of this
study is the integration of brand commitment and job satisfaction for its effect on brand trust, brand
citizenship behavior, and intention to stay of employees as well providing empirical support for their
relationship within the context of banking industry.
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TOPIC NAME: - Information Control for Creator Brand Management in Subscription-Based
Crowdfunding
AUTHOR NAME: - Yu-Kai Lin ◽ Arun Rai ◽ Yukun Yang
Digital content creators, such as podcasters, musicians, writers, and YouTubers, are increasingly using
subscription-based crowdfunding (SBC) platforms to attract backers and obtain recurring funding from
them. Unlike conventional crowdfunding, a hallmark of SBC is the recurring funding scheme structured
as a creator-centered freemium model. Empowering creators to build their person brands, SBC
platforms are providing creators with novel features to control the information that they share with their
backers or fans or conceal from them. Based on a large-scale study on Patreon, an SBC platform, we
show how creators can effectively leverage two types of information controls—earnings concealment
and private postings—to build their person brands and thereby develop their backer base and fan
engagement. Interestingly, we also find a reinforcing relationship in which the increases in backer base
and fan engagement further stimulate creators to leverage information controls in their SBC campaigns
to grow their person brands. In sum, although information controls are effective in aggregate to build
person brands on SBCs, creators need to dynamically adjust the extent of use of information controls
based on changes in their backer base and fan engagement.

TOPIC NAME: - BRAND MANAGEMENT IN STRATEGIC ENTERPRISE MANAGEMENT

AUTHOR NAME: - Natalia Shmatko ◽Mykhailo Panteleev ◽Maryna Karminska-Belobrova
◽Tatyana Myroshnyk
Branding is an integral part of an enterprise's marketing activities and can be analyzed in various aspects.
Brand management – is the process of creating and managing a brand that is based primarily on the sale
of goods. The main components in this process are brand ideas, market analysis, strategy development,
organization of an advertising company. In addition, to date, branding policy is one of the elements of
marketing, it determines the positions of other types of policy, because today the role of brand for the
enterprise is a determining factor of competitiveness and survival of the enterprise in the market. When
forming a brand, it is necessary to formulate problems related to needs, supply and demand, as they
fully reflect the specifics of the functioning of the product market. The process of brand management is
differentiated into blocks; methods for determining the brand value of an enterprise are proposed. The
prerequisites for changing brand management are related to the processes and cycles that occur in the
economy such as: globalization of business, development of scientific and technological progress,
changes in the external environment and society, and even the expansion of market boundaries, so a
comparison of the dynamics of brand- enterprise management; brand management concepts are
compared. The strategic brand management process is important for creating and maintaining brand
equity. Developing a strategy that successfully supports or enhances brand awareness, strengthens brand
associations, emphasizes brand quality and use, is part of brand management. In today's world, in order
54
to maintain a competitive position, every leader must first and foremost consider the value of his or her
brand in developing its strategy and pay attention to branding and find key points for winning the
position.

TOPIC NAME: - Brand love in emerging market: A qualitative investigation

AUTHOR NAME: - Abhigyan Sarkar (Institute of Management Technology | IMT · Department of
Marketing Management PhD)
The purpose of this article to explore the nature of brand love, the antecedents and consequences of
brand love and the obstacles to brand love in the context of Asian market. Brand love is an emerging
concept in the domain of consumer psychology. It has been regarded as the motivating force behind
contemporary hedonic consumption. Yet little qualitative exploration has been done to understand brand
love especially in the context of emerging Asian market. Design/methodology/approach – This article
is grounded in consumers’ everyday experiences of loving particular brands. Semi-structured depth
interviews have been conducted. Findings – Based on the findings of the depth interviews, a conceptual
framework has been developed showing the antecedents and consequences of brand love. This study
also throws light on the specific psychological phenomenon of the emerging market consumers. The
findings form the basis for a discussion of the theoretical and practical implications of brand love in the
context of emerging economy. Originality/value – Value of this article lies in developing a grounded
theory of brand love in the context of emerging Asian market.

TOPIC NAME: - New challenges in brand management

AUTHOR NAME: - 1). Cleopatra Veloutsou (University of Glasgow | UofG · Adam Smith Business
School MA, MBA, PhD)
2). Elena Delgado Ballester (University of Murcia | UM · Faculty of Economics and Business)
This paper aims to help in the development of a better understanding of key brand-related terms and
discuss the key challenges and trends in brand management. Design/methodology/approach this is an
editorial based mainly on an extensive and broad literature review on brand management. Findings First,
this work defines some key brand management terms and presents brand-related issues and concerns
that remain unchanged over time. Then it discusses some of the brand management-related matters that
are changing since the past few years. Challenges for the management of brands from the side of the
companies that have introduced them are then presented. It finally provides a glimpse of the five papers
selected for this special issue and then identifies avenues for further research. Originality/value this
work and the whole special issue together help in the understanding of the dynamic nature of the
management of brands over time with implications to the management and the academic engagement
with brands.

55
TOPIC NAME: - Brand management to protect brand equity: A conceptual model
AUTHOR NAME: - Simon David Munyaradzi M'zungu
Corporate and product brands are increasingly accepted as valuable intangible assets of organizations, evidence of
which is apparent in the reported financial value that strong brands fetch when traded in the mergers and acquisitions
markets. However, while much attention is paid to conceptualizing brand equity, less is paid to how brands should be
managed and delivered in order to create and safeguard brand equity. In this article we develop a conceptual model of
corporate brand management for creating and safeguarding brand equity. We argue that while legal protection of the
brand is important, by itself it is insufficient to protect brand equity in the long term. We suggest that brand
management ought to play an important role in safeguarding brand equity and propose a three-stage conceptual model
for building and sustaining brand equity comprising: (1) adopting a brand- orientation mindset, (2) developing internal
branding capabilities, and (3) consistent delivery of the brand. We put forward propositions, which, taken together,
form a theory of brand management for building and safeguarding brand equity. We illustrate the theory using 14 cases
of award-winning service companies. Their use serves as a demonstration of how our model applies to brand
management practice

TOPIC NAME: - Brand management research in family firms: A structured review and suggestions for
further research
AUTHOR NAME: - Susanne Beck (Copenhagen Business School · Open Innovation in Science Center
(LBG OIS Center)
The purpose of this paper is to highlight the relevance of conducting brand management research in a
family firm context and to identify future research directions by reviewing and structuring the existing
literature. Design/methodology/approach – The potential consequences of being a family firm on
internal organizational processes and stakeholders’ external perception are depicted. Afterwards the
literature considering brand management research in family firms is reviewed systematically (n¼41)
and structured by applying the Organizational Viewpoint Framework. Relevant research questions are
derived based on the findings and their practical relevance is tested. Findings – The contributions are
threefold. First, depicting the effects of being a family firm on the organization and its stakeholders
highlights the relevance of conducting brand management research in family firms. Second, structuring
the literature regarding the effects of being a family firm on organizational identity, intended brand
image, construed brand image, and reputation helps derive research questions of theoretical and
practical relevance that will serve the field as a guide for future research directions. Third, by extending
the Organizational Viewpoint Framework originating from brand management research with the
element of being a family firm, a further attempt at bridging both research fields is undertaken.
Originality/value – This paper represents an important next step in the development of this research
field by highlighting the importance of conducting brand management research in a family firm context
and by structuring existent research to depict future research opportunities with theoretical and practical

56
relevance. Keywords: Family business, Literature review, Brand image, Reputation, Brand identity,
Brand management, Organizational Viewpoint Framework Paper.

TOPIC NAME ;- Mapping Critical Factors in Brand Management Contributing to Innovation Mapping
Critical Factors in Brand Management Contributing to Innovation
AUTHOR NAME:-1). Maarit Vuorinen (Kajaani University of Applied Sciences · School of Business,
School of Tourism)
2). Outi Uusitalo (University of Jyväskylä | JYU · Marketing Department Professor in Marketing)
3). Marita Vos (Ex- University of Jyväskylä Prof.dr.ir.)
The purpose of this paper is to analyses how branding contributes to innovation, by identifying different
ways of connecting with changing markets and emerging consumer needs. This is clarified by strategic
approaches found in the marketing management literature. While orientation to customer needs has
always been crucial in marketing communication more attention is paid nowadays to customer and
market intelligence in detecting relevant trends. A focus on the company’s own distinctive vision is
advocated, as the choices to be made need to fit the strengths and capabilities of the company. Co-
creation of value needs an intensive dialogue with customers about the brand as community property.

TOPIC NAME: - Brand Management in the Era of Social Media: Social Visibility of Consumption and
Customer Brand Identification
AUTHOR NAME: - Kevin Kam Fung So (Oklahoma State University - Stillwater | Oklahoma State ·
School of Hospitality and Tourism Management)
Despite consumers’ increasing use of social media channels to make their travel experiences more
visible to people around them, brand management research in the tourism literature lacks a clear
understanding of how social visibility of consumption affects consumer perceptions of their
relationships with the brand. Drawing upon social identity theory and the theory of conspicuous
consumption, this study extends the current brand management literature by investigating the role of
consumption’s social visibility in the formation of customer brand identification in the era of social
media. Using the airline industry as the study context, this study suggests that social visibility of
consumption leads to cognitive, affective, and evaluative identifications. The results also indicate that
the three components of customer brand identification interact with each other in realizing positive word
of mouth communication.

57
TOPIC NAME: - Brand Management in Small to Medium-Sized Enterprises
AUTHOR NAME: - Julie Napoli (Curtin University · School of Marketing)
Although an impressive body of literature has emerged focusing on the critical activities involved in
brand management for larger organizations with well-established brands and substantial marketing
budgets, no research has been undertaken to examine branding within small to medium-sized enterprises
(SMEs). The present study therefore seeks to assess the nature and scope of brand management within
an SME context. Findings show significant differences between small and large organizations along 9
of the 10 brand management dimensions reported in Keller&apos's brand report card. Moreover,
different brand management practices are associated with business performance in SMEs. Implications
of the study are highlighted, limitations noted, and directions for future research outlined.

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 CHAPTER NO.3.RESEARCH METHODOLOGY

3.1. OBJECTIVE OF THE STUDY

"To comprehensively analyze the brand management strategies employed by Volkswagen, exploring
their effectiveness in shaping consumer perception, fostering brand loyalty, and sustaining competitive
advantage in the automotive industry. Through a systematic investigation, this black book aims to
elucidate the key elements of Volkswagen's brand management approach, evaluate its alignment with
organizational goals, and propose actionable insights for enhancing brand equity and market
positioning."

3.2. SCOPE OF THE STUDY

1. Overview of Volkswagen: Provide a brief history and background of Volkswagen, including its
evolution as a brand and its position in the global automotive market.

2. Brand Identity and Image: Analyze Volkswagen's brand identity and image, examining elements
such as brand values, personality, and visual identity. Explore how these aspects contribute to shaping
consumer perceptions and differentiate Volkswagen from its competitors.

3. Brand Communication Strategies: Investigate Volkswagen's brand communication strategies across

various channels, including advertising, digital marketing, social media, and public relations. Evaluate
the effectiveness of these strategies in conveying brand messages and engaging target audiences.

4. Brand Extension and Portfolio Management: Examine Volkswagen's approach to brand extension
and portfolio management, including the introduction of new models, product lines, and brand
collaborations. Assess the impact of these initiatives on brand equity and market share.

5. Brand Loyalty and Customer Engagement: Explore Volkswagen's efforts to build and maintain
brand loyalty among customers. Analyze customer engagement programs, loyalty rewards, and
customer relationship management strategies implemented by Volkswagen.

6. Crisis Management and Brand Reputation: Investigate how Volkswagen has managed brand-related
crises and controversies in the past, such as the emissions scandal. Assess the effectiveness of crisis
management strategies in safeguarding brand reputation and rebuilding trust with consumers.

59
7. Comparative Analysis: Compare Volkswagen's brand management practices with those of key
competitors in the automotive industry. Identify areas of strength and weakness, as well as
opportunities for improvement.

8. Future Outlook and Recommendations: Provide insights into the future trajectory of Volkswagen's
brand management strategies. Offer recommendations for enhancing brand equity, strengthening
competitive positioning, and fostering sustainable growth in the dynamic automotive market landscape.

3.3. Data Collection:-

Market Research Requires Two Kind Of Data That Is Primary Data And Secondary Data.
a) Primary Data:-
Primary Data Is Collected Using A Well- Structured Questionnaire, Survey.Etc.Survey Is Carried In 2
Steps.
1) First Visit
2) Appointment And Personal Interview

b) Secondary Data:-
Secondary Data Is Data Collected Someone Other Than The User. Common Sources Of Secondary Data
Include Organizational Records And Qualitative Methodologies Or Qualitative Research.Tha Data For
Study Has Been Collected Through Various Sources:
1. Books
2. Internal Sources
3. Online Websites
4. Reference
5. Catalogue

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 CHAPTER 4. DATA ANALYSIS

TABLE NO.1 AGE

AGE PERCENTAGE
18-25 100 %
25-35 0%
35-45 0%
ABOVE 45 0%

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TABLE NO .2 GENDER

GENDERT PERCENTAGE
MALE 40.9 %
FEMALE 59.1 %

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TABLE NO. 3 EDUCATION LEVEL

EDUCATION LEVEL PERCENTAGE

HIGH SCHOOL OR BELOW 9.1 %
BACHELOR’S DEGREE 81.8 %
MASTER’S DEGREE 9.1 %
DOCTORATE OR OTHER 0%

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TABLE NO. 4 EMPLOYMENT STATUS

EMPLOYMENT STATUS PERCENTAGE

Employed Full-Time 13.6 %
Employed Part Time 13.6 %
Self Employed 4.5 %
Student 63.6 %
Unemployed 4.5 %
Retired 0%

64
TABLE NO.5 On a scale of 1 to 10, how would you rate your overall perception of the Volkswagen
brand?

65
TABLE NO.6. What characteristics or attributes come to mind when you think of Volkswagen?

CHARACTERISTICS PERCENTAGE
Reliability 50 %
Innovation 31.8 %
Performance 45.5 %
Design 40.9 %
Safety 40.9 %
Environmental Friendiness 9.1 %
Prestige 13.6 %
Affordability 13.6 %

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TABLE NO. 7. Have you ever owned or currently own a Volkswagen vehicle?

YES 45.5 %
NO 54.5 %

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TABLE NO.8. How likely are you to consider purchasing another Volkswagen vehicle in the future?

Very Likely 18.2 %

Likely 36.4 %
Neutral 40.9 %
Unlikely 4.5 %
Very Unlikely 0%

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TABLE NO.9. How frequently do you encounter Volkswagen advertisements or marketing campaigns?

Daily 9.1 %
Weekly 13.6 %
Monthly 31.8 %
Rarely 40.9 %
Never 4.5 %

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TABLE NO.10. In your opinion, how effective are Volkswagen's advertising and marketing efforts in
promoting the brand?

VERY EFFECTIVE 9.1 %

EFFECTIVE 63.6 %
NEUTRAL 18.2 %
INEFFECTIVE 9.1 %
VERY INEFFECTIVE 0%

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TABLE NO. 11. Have you ever interacted with Volkswagen customer service or support?

YES 63.6 %
NO 36.4 %

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TABLE NO.12. How would you rate Volkswagen's reputation compared to its competitors in the
automotive industry?

MUCH BETTER 59.1 %

SOMEWHAT BETTER 22.7 %
ABOUT THE SAME 27.3 %
SOMEWHAT WORSE 4.5 %
MUCH WORSE 0%

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 CHAPTER 5. CONCLUSION

The Volkswagen Group, a multinational automotive manufacturer, has a rich history of brand
management that has played a significant role in its success and growth. This study has investigated
various aspects of the Volkswagen Group's brand management strategy, including brand architecture,
brand positioning, brand communication, and brand experience.
Brand Architecture: The Volkswagen Group has a complex brand architecture, consisting of multiple
brands such as Volkswagen, Audi, ŠKODA, SEAT, and Porsche. Each brand has its unique identity,
target market, and product offerings. This study has analyzed the Volkswagen Group's brand
architecture and how it helps the company cater to different customer segments and maintain a
competitive edge in the global automotive market.
Brand Positioning: The Volkswagen Group has positioned its brands in a way that appeals to different
customer segments. For example, Volkswagen is positioned as a reliable and affordable brand, while
Audi is positioned as a luxury brand. This study has investigated the Volkswagen Group's brand
positioning strategies and how they help the company differentiate its brands from competitors and
create a strong brand image.
Brand Communication: The Volkswagen Group has a strong focus on brand communication, utilizing
various channels such as advertising, social media, and public relations to engage with customers and
promote its brands. This study has analyzed the Volkswagen Group's brand communication strategies
and how they help the company build brand awareness, create brand associations, and establish an
emotional connection with customers.
Brand Experience: The Volkswagen Group has invested heavily in creating a consistent and memorable
brand experience across all touchpoints, including dealerships, service centers, and digital platforms.
This study has investigated the Volkswagen Group's brand experience strategies and how they help the
company build brand loyalty, enhance customer satisfaction, and drive sales.
In conclusion, the Volkswagen Group's brand management strategy has been instrumental in its success
and growth. By adopting a multi-brand approach, positioning its brands effectively, communicating its
brand values consistently, and delivering a memorable brand experience, the Volkswagen Group has
been able to establish a strong brand image and maintain a competitive edge in the global automotive
market. As the automotive industry continues to evolve, it will be crucial for the Volkswagen Group to
adapt its brand management strategies to meet changing customer needs and preferences, while
maintaining its core brand values and identity.

73
 CHAPTER NO.6.APPENDIX
QUESTIONNAIRE
What characteristics or attributes come to mind when you think of Volkswagen? (Check all that apply)
a) Reliability
b) Innovation
c) Performance
d) Design
e) Safety
f) Environmental friendliness
g) Prestige
h) Affordability
i) Other (please specify)

Have you ever owned or currently own a Volkswagen vehicle?

a) Yes
b) No

How likely are you to consider purchasing another Volkswagen vehicle in the future?
a) Very likely
b) Likely
c) Neutral
d) Unlikely
e) Very unlikely
How frequently do you encounter Volkswagen advertisements or marketing campaigns?
a) Daily
b) Weekly
c) Monthly
d) Rarely
e) Never
In your opinion, how effective are Volkswagen's advertising and marketing efforts in promoting the brand?
a) Very effective
b) Effective
c) Neutral
d) Ineffective
e) Very ineffective

Have you ever interacted with Volkswagen customer service or support?

a) Yes
b) No

74
How would you rate Volkswagen's reputation compared to its competitors in the automotive industry?
a) Much better
b) Somewhat better
c) About the same
d) Somewhat worse
e) Much worse

75
 CHAPTER 7.BIBLOGRAPHY

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