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Volkswagen AG

The automotive sector is one of the key segments of the economy having extensive forward and backward linkages with other key segments of the economy. It contributes about 4 per cent in India's Gross Domestic Product(GDP) and 5 per cent in India's industrial production. This sector has generated about 4.5 lakh of direct employment and about one crore of indirect employment Volkswagen AG

India holds huge potential in the automobile sector including the automobile component sector owing to its technological, cost and manpower advantage. India has a well developed, globally competitive Auto Ancillary Industry and established automobile testing and R&D centers.

Volkswagen AG

AUTOMOBILE INDUSTRY IN INDIA


9th largest automobile industry . 2nd largest two-wheeler market 11Th largest Passenger Cars producers 4th largest in Heavy Trucks 2nd largest tractor manufacturer annual production of over 2.3million units. The monthly sales of passengercars in India exceed 100,000units.
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MAJOR COMPETITORS

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GLOBAL COMPETITIVE OVERVIEW

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VOLKSWAGEN INDIA
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VOLKSWAGEN-AN INTRODUCTION
Founded in 1937 by Nazi trade union.

Means people s car in German

Headquartered in Wolfsburg, Germany.

3rd largest automobile manufacturer

Product range extends from low-consumption small cars to luxury class vehicles and trucks

Volkswagen AG

VOLKSWAGEN IN INDIA
Entered Indian Market in 2001.

The company offered three brands including Audi, Skoda and Volkswagen.

It has its headquarters in Pune, Maharashtra (India)

As of 2009, Volkswagen Group India has two group companies - Volkswagen India Private Limited (Volkswagen India) and Volkswagen Group Sales India Private Limited (VGSIPL)
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MARKET SITUATION
Volkswagen Group is aiming to increase its market share in India to 20 per cent as it plans to expand dealerships in tier 2 and tier 3 cities In the beginning of 2009 they had 14 dealerships in India and in the beginning of 2011 they have 70 dealerships in 57 major cities They have plan to expand in the eastern part of the country. They have dealerships in Bhubaneshwar, Kolkata, Guwahati. look forward for four or five new dealerships. Siliguri, Asansol, Patna are cities with potential Volkswagen AG

COMPETITIVE SITUATION
General Motors, Nissan and Toyota have cut into Volkswagen s market share Volkswagen once held a 50% market share in China, it s now around 20% China and India both serving as key manufacturing locations with major players

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CORPORATE OVERVIEW HQ: Germany Europe s #1 automobile manufacturer Annual production: Approx. 5M vehicles Annual sales: 126.88 billion Euro Employees: 400,000 worldwide

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SWOT ANALYSIS
Strengths STRONG BRAND IMAGE BETTER FUEL EFFICIENCY ROBUST PRODUCTION CAPABILITES STRONG FOCUS ON R&D OPPORTUNITIES GROWTH POTENTIAL IN INDIA AND CHINA INCREASING DEMAND OF ELECTRIC HYBRID CAR WEAKNESSES EXPENSIVE SPARE PARTS PETROL VERSIONS NOT A SUCCESS BAD AFTER SALES SERVICE RELATIVELY LOW EMPLOYEE PRODUCTIVITY SLUGGISH PERFORMANCE IN FEW GEOGRAPHICAL AREAS THREATS NEW CARS & COMPANIES GLOBAL RECESSION IN 2009 ENVIRONMENTAL PROTECTION REGULATION Volkswagen AG

FIVE FORCE ANALYSIS

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VOLKSWAGEN GLOBAL MARKETING MIX


 Brand portfolio
 Volkswagen  Audi  Seat  koda  Bugatti  Bentley  Lamborghini  Commercial vehicles

 Unique brand identity for

 Development of

each nameplate  Complete product range  Mostly standardized products with minor adaptations

distribution partners  Separated distribution channels for each brand

 Setting prices with regard to

Global Marketing Mix


4

 Localized communication  Emphasis on the European

competitors  Price discrimination across regions  Strict cost controlling

market  Brand advertising

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1940s 1930s  Factory opened in  Production of first Wolfsburg, Germany Volkswagen  Company turned over to German government

Key Milestones

1950s  VW begin building foreign plants  Launched Beetle in US market  Developed Microbus 1990s Built Chinas largest auto plant Integrate Skoda  Acquires RollsRoyce and Bugatti  Launched New Beetle in US

1960s  Sold stock to the German public  Purchased Auto Union (AUDI)  US Beetle sales took off 2000s Spent 3.1B to modernize factories The final Beetle ended a 70-year run Invested 1.7B in China (Asia/Pacific) Bernd Pischetsrieder joined company Volkswagen AG

1970s  Beetle discontinued in every country except Mexico

1980s  Begin car venture in China  Purchased SEAT  Formed Autolatin in Brazil

POLO (SUPER-MINI)
Price Rs 4,42,000* - Rs 6,82,500* Petrol/Diesel 1.2 litre Polo - 1.6 litre Polo Mileage 13.96 kmpl - 17.2kmpl Engine 1198 cc - 1598 cc Competitors Maruti Swift Maruti Ritz Fiat Punto Hyundai i10 Hyundai i20
Spacious, Value , High engine performance High Maintenance
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JETTA (SMALL FAMILY CAR)


Price Rs 12,99,332* - Rs 16,38,252* Petrol 1.6 L - 1.9 L Mileage 12.5 kmpl - 13.8 kmpl Engine 1595 cc - 1896 cc Competitors Chevrolet Cruze Toyota Corolla Altis Honda Civic
Highly Powerful, Excellent look, spacious, comfort and safety features Expensive car, maintenance a bit higher unmatched

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PASSAT (LARGE FAMILY CAR)


Price Rs 19,20,777* Petrol 1.8L Mileage 12.2 kmpl Engine 1798 cc Competitors BMW 3 Series Honda New Accord
Classy look, Spacious, Powerful Expensive
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VENTO(PEOPLES CAR)
Price Rs 7,02,883* - Rs 9,28,631* Petrol/Diesel 1.6 L Mileage 13.5 kmpl Petrol - 16 kmpl diesel Engine 1598 cc Competitors Honda City Maruti Swift Desire Maruti SX4 Hyundai Verna Fiat Linea

Spacious, Sporty and Stylish look Differentiator

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BEETLE (ECONOMY CAR)


Price Rs 21,34,385* Petrol 2.0L Mileage 11 kmpl Engine 1984 cc Competitors Nissan Micra
Stylish, Cute looking, Luxurious Less Interior Space, Hefty Price Tag
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TOUAREG (MID-SIZE CROSSOVER SUV)


Price Rs 51,85,000* Diesel 3.0L Mileage 16 kmpl Engine 2967 cc Competitors Toyota Land Cruiser Prado Toyota Fortuner BMW X5 Mercedes-Benz M-Class

Acceleration, Sporty looks High Price


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VOLKSWAGEN SALES
September 2010 Polo Vento Jetta Passat Beetle Touareg Phaeton 2891 1364 254 107 38 0 10 October 2010 2344 1615 281 59 44 0 0 November 2010 1975 2413 191 0 30 0 3

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COMPETITORS SALES
September 2010 Polo Maruti Swift Maruti Ritz Fiat Punto Hyundai I-10 Hyundai I-20 2891 11913 6408 902 October 2010 2344 12948 6928 1300 15103 7642 November 2010 1975 12918 6377 699 14617 7228 Volkswagen AG

14434 7680

COMPETITORS SALES CONTD.


September 2010 October 2010 November 2010 Vento 1364 1615 2413

Honda City

6164

4316

3003

Maruti SX4

1965

1977

1365

Hyundai Verna

1818

1928

1455

Fiat Linea

728

700

301

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SALES TARGET
Volkswagen India in Numbers VW has sold a total of 3,037 units in the country in 2009, of which 58 were Beetles, 25 Touaregs, 2,342 Jettas and 613 Passats. This is a 95 per cent increase in sales since 2008 when they sold 1,566 cars. Volkswagen India sold 2,597 cars in July 2010. Since its launch in February, Volkswagen has sold 1,599 Polos so far. There are already 10 units of the Phaeton (priced @75 lacs) in the Indian market. 50 confirmed orders for the Beetle, with a four-month waiting period. 50 confirmed orders for the Touareg.
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B2B

B2C

VOLKWAGEN TO MRF TYRES VOLKWAGEN TO BOSCH

VOLKSWAGEN TO CUSTOMER

Showroom to customers

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THE TARGET CUSTOMER


Young Female Age 19-32 College-Educated Parents
Global Reach USA, France Spain, UK Germany Italy, China

Value conscience

Aspirational value

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VOLKSWAGEN ADVERTISING
|SO DO WE} CAMPAIGN in which they showed their innovation for cars for all class of people. You value things that never go out of style(BEETLE) So Do We You look out for the ones you care about(VENTO) So Do We You value saving up(NEW POLO) So Do We You inspire us to constantly innovate.
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VOLKSWAGEN TALKING NEWSPAPER


Tuesday September 21, 2010 edition of The Times of India and The Hindu A voice-recorded device was used to reach readers in Delhi, Mumbai, Bangalore, Pune and Chennai Announced the arrival of a perfectly engineered car Vento Volkswagen is believed to have spent Rs 50 million (US$1.1mn)
d

Aim : Create Brand Awareness and to enter into all segments in the coming years Media hype this sort of advertisement would generate online and offline Mass Marketing

So it wasnt just the ad that did the talking but got its readers talking about it too! Volkswagen AG

Web Promotion

Anytime, anywhere: Mobile Services


the campaign was designed to position Volkswagen as a provider of innovative mobile services The portal was intensively advertised in a marketing campaign within the MSN network

Results
During the first 12 months MSN achieved more than 130 million page impressions User figures for the Volkswagen website doubled in just six months Within the first six months, 50,000 new users Volkswagen AG registered on the Mobile Services portal

PERSONAL SELLING
Sales people have many names

16-32

Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing representatives Account Development Representatives

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TRAINING AND MOTIVATION


Volkswagen Group Service has begun associations with technical training institutes across the country to create employable talent for the industry The Manpower Development Program known as VG-TAP [Volkswagen Group Technical Education Program] has recently been launched
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EMPLOYEE INCENTIVE PROGRAM


This exclusive program enables employees to obtain the best possible offer on a lease or purchase of a Volkswagen vehicle or the possibility of servicing at Volkswagen des Sources if they are currently a Volkswagen driver.

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COMPARISON

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PRESENTED BY
AARTI KALE (41) MAYURI KHANNA (37) TEJASWINI INGOLE (48) SANDEEP KAUR (28) DIPESH BORICHA (11)

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