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Automotive

Industry -
Volkswagen
CIA - 1
Team Members

Ganga Sahil Ishaan Shahid Sheetal


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• Business-to-business (B2B) refers to
internet business interactions between
companies. In the automotive
business, automakers must purchase
materials from suppliers and sell
automobiles to dealers. In the car
sector, this is a typical B to B
Introduction transaction.
• The automobile industry's objective is
to establish a standardised system that
any manufacturer and its partners may
use.
• The automobile industry's ability to
connect the B2B marketplace with
Enterprise
The rise of e- Staying
cutting edge
commerce
Growing
Automotive businesses that take use
of ecommerce technologies may gain Customer
significant benefits. Selling online not
only allows firms to access a global
Base
audience, but it can also increase
brand awareness and the whole Creating
buying experience for B2B customers.
Irresistible
Cutting costs customer
experience
B2B marketing techniques Volkswagen has unveiled a

Marketing were primitive until a few


years ago: there was a lack of
• Mobile to
partnership-focused brand
promise that reflects the

Strategy understanding of the target


omnichannel company's customer-centric
• Data driven marketing approach.
audience, and a tendency to
approach the broader public
culture adam&eveDDB produced the
• Personalisation multi-channel campaign, which
in a conventional manner.
• AR and VR will run across OOH, print,
Everything has changed
today due to digitalisation. radio, point-of-sale, direct mail,
and social media.
• Most of Ford's primary suppliers operate on a
worldwide scale, allowing the automaker to
offset production losses in North America with
increases elsewhere.
• Due to geographical disparities that cannot be
prevented, Ford does not rely only on
worldwide sources for its parts. Nonetheless,
Ford's "Aligned Business Framework to "create

Buying a sustainable business model to achieve mutual


profitability and technical progress," is based

Strategies
on the notion of a global supplier base.
• When worldwide suppliers used to have to
interact with various Ford employees all around

of Ford the world, they now communicate with one of


the matched pairs, which streamlines their
business planning, enhances communication,
and allows for the development of personal ties.
GM buys and obtains a variety of materials, freight,
transportation, supplies, and components from a
variety of industry players. Lead, steel, copper,
resins, and aluminium are among the raw materials
purchased by the company from Monczka,
Handfield, Giunipero, Patterson, and Waters.

Buying Three step procurement process

Strategies 1st Stage : Pre-contract is the initial stage of the


process.

of General 2nd Stage : This is referred to as "post-contract,"


and it concentrates on the special challenges of

Motors supply chain management.

3rd Stage : The third stage focuses on the majority


of supply chain and procurement-related tasks.
• Toyota's buying approach is conservative,
relying on a partnership model with a tight-knit
Japanese supplier network to support the
carmaker's expansion both inside and beyond
Japan, as well as its technological and quality

Buying needs.
• Toyota's attitude toward its supply base

Strategies extended among suppliers attempting to win


business from the company, despite the fact that

of Toyota
there were few meaningful chances due to
Toyota's stringent supplier selection procedure
and, in certain circumstances, the limited
number of programmes available.
Target customer and characteristics
Customers
Volkswagen Group sells traveler vehicles under the Audi, Bentley, Bugatti, Lamborghini, Porsche,
SEAT, Skoda and Volkswagen marques; cruisers under the Ducati brand; and business vehicles
under the MAN, Scania, Neoplan and Volkswagen Commercial Vehicles marques.

It has around 340 auxiliary organizations. The organization has tasks in roughly 150 nations and
works 100 creation offices across 27 nations.

Characteristics
• Magna partakes in a tight relationship with Volkswagen. They regularly are inserted in the
advancement cycle of another vehicle.
• Providers know Volkswagen's long term arrangement is not too far off. This truly intends that by
assisting Opel with specific advancements, the organization's deals could be helped and
simultaneously impact Volkswagen's own activities.
• The principle goals of online arrangements were to lessen process duration, exchange intricacy
and interaction cost; to further develop market straightforwardness for both VW and the
providers; and to follow up on an overall premise.
Future B2B
stategies
• VW is changing its B2B showcasing system New
industrial facilities in India, Russia and China will play a
critical capacity in this venture.
• Major obtaining areas to VW plants worldwide while
meeting nearby prerequisites.
• Program called C3 Sourcing (Cost Competitive
Countries Sourcing) - to assist VW with spreading the
expense benefits of minimal expense areas to European
and other global projects and creation offices
• Neighbourhood acquisition exercises permit to recognise
cost benefits
• Providers at these areas might end up being a minimal
expense supply hotspot for different locales too.
The Volkswagen Emission Scandal
The emission scandal and
repositioning of the brand
• Volkswagen had cheated in emission tests by making its cars appear far less
polluting than they are.
• The US Environmental Protection Agency discovered that 482,000 VW
diesel cars on American roads were emitting up to 40 times more toxic
fumes than permitted - and VW has since admitted the cheat affects 11m
cars worldwide.
• Volkswagen attempted to transform the company since the emissions
scandal.
• The brand’s “no filter” digital-first approach was developed by 19 internal
design and marketing teams, and 17 external agencies.
• The car marque also introduced a sound logo.
• The work to get the VW brand back to where it was, in terms of consumer
perception, appears to be working. In the immediate aftermath of the
scandal, VW halted advertising, then in December ran a series of print ads
apologising and reassuring customers.
Value Proposition
It is out of the question, that the scandal damaged its reputation. Therefore, improving its brand position was the main goal
of the whole project. The brand values that the Volkswagen brand wanted to capture in their brand image were:

Responsible Equitable
Innovative

Valuable Trustworthy Reliable


Unique
Volkswagen is the group of companies that owned and operated several other
automotive arms such as Audi (the luxury brand) including Lamborghini, with
competitions like BMW and Mercedes Benz Cars, Scandia (heavy trucks and

selling buses), Seat (Spanish Stylish compact cars), Skoda (entry-level vehicles such as
sedan, hatchbacks),

proposition Volkswagen commercial vehicles for transportation of goods and Volkswagen


Passengers cars (entry-mid level vehicles).
THANK
YOU!

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