VOLKSWAGEN INDIA

INDRANIL BANERJEE - 5
SRI  HARSHA JETTI - 18
CHIRAG VERMA - 37
SHARMISTHA SAHOO - 38
SONAL CHANDRA - 41
 Contents

Introduction
Pricing & Features
Competitors
Positioning
Target market & Expectations
Integrated Marketing Communication
Customer Experience
Distribution & Sales
Suggestions
 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
 VW SKODA AUDI LAMBORGHINI BENTLEY BUGATTI
POLO
FABIA GALLARDO CONTINENTAL GRAND SPORT
COUPE

VENTO
LAURA GALLARDO SPYDER
SEDAN AZURE

BEETLE

ARNAGE

SUPERB SPORT MURCIELAGO

PASSAT

MULSANNE
JETTA SUV
YETI

BROOKLAND
TOUAREG
 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)

Vento is the 18th model from the Volkswagen Group in India.

Volkswagen-India
 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
 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, unmatched
comfort and safety features
Expensive car, maintenance a bit higher
 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
 VENTO(People’s 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 Dzire Maruti SX4
Hyundai Verna Fiat Linea Spacious, Sporty
and Stylish look

Differentiator
 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

 PHAETON (Premium Class)

Price Rs 76,29,128*
Diesel/Petrol 3.0L/6.0L
Mileage 10 kmpl
Engine 3600 cc
 Competitors

Luxuries, Power and Acceleration

Hefty Price tag

 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
 Brand Positioning

Emotional
Value Prestige

Rational
 Positioning

When VW started out in 2007, low brand awareness

was one of the key concerns
 It told readers all they ever wanted to know about
Volkswagen — how the name came about, its product
line and so on
Volkswagen cars are positioned as products of
German engineering
To position itself as a luxury car
VW’s Ad agency DDB Mudra claims that the brand
recall is now in double digits
MACH 18PLUS STRATEGY
Focus lies on becoming an economic and environmental
leader in the global automotive industry.

Strive for success in terms of profitability, customer

satisfaction and quality, accessing new markets and
increasing production output, and attractiveness as an
employer.

The “plus” element stands for more entrepreneurial

thinking, more synergies and more ecology.
India’s Contribution in 18plus Strategy
Indian car market is the 10th largest car market with
annual sales of around 1.4 million cars.

The market size is expected to increase to 4 million

cars by 2015.

Volkswagen aims to increase its market share from a

meager 1% presently to 10 % in next 5 years.
 Diversification growth
(CONCENTRIC DIVERSIFICATION)

Integrative growth
Sales ( Rs. Millions)

(BACKWARD INTEGRATION)

Intensive growth
(MARKET PENETRATION)

Time (years)

STRATEGIC PLANNING
 SWOT
STRENGHTS WEAKNESS
STRONG BRAND IMAGE EXPENSIVE SPARE PARTS

BETTER FUEL EFFICIENCY PETROL VERSIONS NOT A SUCCESS

SUPERIOR BUILT QUALITY BAD AFTER SALES SERVICE

OPPORTUNITIES THREATS
SUPER HATCHBACK SEGMENT=17-
18% TOTAL PASSENGER SPACE. NEW CARS & COMPANIES

PPP

TAX INCENTIVE TO SMALL INTERNAL THREAT FROM VW

CARS
 Target Market

Fill “lucrative market niches”

Volkswagen Group are setting up dealerships spanning
the entire country with Volkswagen, Skoda and Audi
having in total around 120 dealerships across the
country today
It has identified and targeted a narrow segment in terms
of market and customer
It is a conscious VW strategy to keep the prices of its cars
in India on the higher side
Lately, its focus is also moving towards the small car
segment which requires cost leadership
 Target Market

Volks
Audi Skoda wagen
●
Luxurious car. ●
Mass
●
Priced above 5 ●
Luxury and
million. Segmentation
affordability.
●
High end ●
People’s car.
customer.
●
Priced above ●
Ex- Polo,
●
Audi A6, A8 and 1.2 million. Vento.
Q7.
 Market segmentation

Cost ●
At lower price.
Adverse Effect.
Leadership
●

●
Launched Polo to compete with Honda.
Strategy Can not adopt this for Skoda and Audi
●

Focus Priority to market segmentation

●

●
Effectively used by VGI
VGI caters market through three
Strategy
●

different brands.
 IMC Tools

Corporate
Advertising

Outdoor Ads Public

and Print Ads Relations
 Volkswagen Corporate 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.

‡ Create Better Value
‡ And be responsible.
Volkswagen Outdoor Advertising

First such campaign by any Automobile Manufacturer

 Volkswagen Talking Newspaper

 Tuesday September 21, 2010 edition of The Times of India and The Hindu d

 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)

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 wasn’t just the ad that did the talking but got its readers talking
about it too!
 Volkswagen Public Relations

They maintain public relations by:

 Organizing sports events

Volkswagen-JK Tyre Polo Cup India Alliance With Neo Sports

 CSR Activities

Volkswagen India celebrated the World Environment Day through a tree

plantation ceremony at its manufacturing facility at Chakan, Pune.
 Customer Service

Although Volkswagen India is spending much on its

IMC and is successful in bringing customers to its
showroom but the after sales service is not upto the mark.

Customer Feedback:

 Delayed delivery of cars

 Late Response by customer care services to reply to their problem.
 The attitude of their Customer Service Executives is one of complete
indifference to the customers queries.
 Standard replies include "We shall get back to you in 24/48 hours" 

Acting on these complaints, Volkswagen introduced a secured call-back

service –after not more than 10 minutes
Volkswagen Distribution

The Distribution
Network

Doubling of
Distribution

The Castrol Effect

 Volkswagen Sales

September October 2010 November 2010

2010
Polo 2891 2344 1975
Vento 1364 1615 2413
Jetta 254 281 191
Passat 107 59 0
Beetle 38 44 30
Touareg 0 0 0
Phaeton 10 0 3
 Competitors Sales

September October 2010 November 2010

2010
Polo 2891 2344 1975

Maruti Swift 11913 12948 12918

Maruti Ritz 6408 6928 6377

Fiat Punto 902 1300 699

Hyundai I-10 14434 15103 14617

Hyundai I-20 7680 7642 7228

 Competitor’s Sales Contd.

September October 2010 November 2010

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

 Suggestions

Opening of more distribution centers

Opening of more manufacturing plants in India

Increase Production

Create latent demand

Enter into small car segment

queries???