...By splitting its target group by car range specific email communications, Volvo is consistently achieving extremely high response rates. In addition, the awareness of customers and prospects of the existence of Volvo’s newsletter is exceptional with up to 8 out of 10 recipients actually reading the newsletter on a regular basis. For almost 80 years, Swedish car manufacturer Volvo has committed itself to reach the highest security and safety standards which are then packaged into high quality, attractive Scandinavian design. Many new and exciting car models shape the face of the Volvo brand this year so it’s hardly surprising that Volvo is also pursuing new, innovative and successful ways of communication. Ë Efficiently Complementing Existing Marketing Tools with Email With the use of email marketing, Volvo are complementing its existing marketing mix, not only alongside traditional dialogue marketing campaigns but also to amplify its other online marketing methods – with the key objective being to measurably increase the response rates of all advertising tools. According to Oliver Engling, Head of Advertising and CRM at Volvo Cars (Germany) it’s clear that Volvo customers and prospects gather information and research online and therefore the most natural means of communication is via email. “This is why a continuous communication with our customers is vital for us and we place a high value on close personal...
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...expand its business into high-end market of luxury vehicles through building up Volvo into a successful luxury brand. However, although the market position of Volvo is clear and both Geely and Volvo are full of confidence, the prospective seems very tough. Firstly, long positioned in luxury vehicle market, Volvo has a share in Chinese luxury vehicle market, but compared to other big brands, it is too small and growing very slowly. In 2010, Audi sold 225,580 cars, enjoying an increasing rate of 43.5% comparing to last year; Bens reached sales of 147,670 cars and an amazing growth rate of 115%; the sales of BMW was 169,000 cars which increased by 87%. Volvo, however, only sold 31,000 and increased by 36.2%. These figures are not only inferior to the three competitors, but also disappointing to the target of Volvo, which is to reach 200,000 sedans sales in 2015 with an annual increasing rate of 50%. Besides the low growth rate which is far behind market average, Volvo is also the one with the largest discount rate of selling prices. Although Volvo is quite ambitious to challenge Bens and BMW which Volvo sees as competitors, the image building and brand value of Volvo in Chinese luxury vehicle market are far inferior to the competing brands. Secondly, Volvo’s capacity is not large enough to support such an ambitious target of production. Currently, China market is only the fourth largest market of Volvo and the manufacturing has been outsourced. Volvo’s productivity is very limited...
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...Case Study 2.2: The Failed Merger between Renault and Volvo In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set. Cooperation between the two firms had begun in 1990 when Renault took a 25 per cent share in Volvo cars and a 45 per cent share in their truck division. Volvo, for its part, took a 20 per cent share in Renault. The early collaboration took the form of an exchange of engines, the joint purchasing of components and joint developments in quality control. The cooperative arrangements between the two companies were a constant source of internal criticism, which focused on the highly bureaucratic procedures that had been established. In this sense, a full merger was seen by both parties as the more favourable option. The strategic fit between Renault and Volvo seemed ripe for merger. Volvo had strengths in the large car market, where Renault had consistently failed to make an impact. Renault’s strengths lay in the manufacture of small cars and in diesel technology. In terms of market, Volvo was stronger in Northern Europe and especially North America and Renault had a larger market share in Southern Europe and South America. Both companies were probably too small to survive in a globally competitive volume car market. In Europe and the USA, merger was a route for survival, particularly in the face of increasing...
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...submit our term-paper on “Volvo - an overview”. In developing the report we have followed the format and instructions given by you. In every sphere of our report, we have tried our level best to make a good combination of learning from the Integrated Marketing Communication Course. We also tried to match our theoretical knowledge and the direct experience gathered during the preparation of our term-paper. In this report, we have tried to be as descriptive as possible for the convenience for the reader. Any clarification required & query needed regarding our report will be gratefully acknowledged. Yours obediently Mudassar Mahmood Khan Md. Matiul Islam Md. Abdur Rahman Bhuiyan Md. Ehsanul Haque ID No. 41018003 ID No: 40609063 ID No: 40610059 ID No: 41018044 18th Batch 9th Batch 10th Batch 18th Batch EMBA EMBA EMBA EMBA Dept. of Marketing Dept. of Marketing Dept. of Marketing Dept. of Marketing University of Dhaka University of Dhaka University of Dhaka University of Dhaka Executive Summary: Volvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group. Volvo was originally formed...
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...automatically 2. GPS system which help and guide consumer in reaching new location. 3. The interior of the car should be more flexible and should flexible to remove it and use it according to the consumer need. 4. The car should run on the solar energy without compromising on speed and performance.(environmental friendly and save petrol) 5. Mood tracking system which would enable consumer to select the mood he/she is in and the system would adjust the lightning and music accordingly. 5. If you were a marketing executive at another car manufacturer, how would you respond to the Volvo YCC? If I were the marketing executive of another car manufacturer, I will gather all the research information of the Volvo YCC. Then, doing an anonymous questionnaire research to public including male and female car user about the enhancement stated in Volvo YCC. After that, I will gather the feedback of the public and come out with the statistic. Next, I will having few meeting with the designer expert and engineer expert in my company to discuss about the outcome of the questionnaire. The meeting is to find out which enhancement can bring most profit and less cost. Besides, we will also discuss about which enhancement is most reasonable to apply. After meeting, proposal will send to management level to apply the enhancement to improve existing car's product quality or to apply the enhancement to coming soon car product as its highlight. Last but not least, I will...
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...Volvo came onto the scene in 1927 on the island of Hisingen, Goteborg. Over the years, Volvo enhanced and developed a line of vehicles which is known for its quality and performance. “Volvo’s vision is to become the world’s leader in sustainable transport solution by the following: 1.) pioneering products and services for transport and infrastructure, 2.) driving quality and environmental care, and many other attributes. While technology is playing an aggressive role in society, Volvo branches off and showed its independence by adapting Cloud Computing. By implementing Cloud Computing, it haves it benefits such as “offering a way to get services that are very attractive to build the company, and take the IT resources and put them on things that are differentiators for the Volvo car company. Another benefit is that once it is put in place, it has no place to go but up and “continue to improve with time”. Volvo Car Corporation transform data into knowledge by creating vehicles with hundreds of sensors and CPU’s embedded throughout the car. “Besides vehicle data gathered by sensors in and on the vehicle, we also collect visual information from four cameras. This gives us a good view of what happened in the car and on the road at any given point in time”. An example of the data transformation is when the central locking information is being taken for the use of the vehicle and then conveyed via the cloud back to Volvo. “Through the cloud Volvo is massing large amount of rich...
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...Case 2, Volvo YCC (Your Concept Car) According to the case study of the Volvo YCC (Your Concept Car), the design elements are most valuable to female consumers, which are the smart storage solutions, for drivers that using back seat more often for groceries, gym bags, and laptop computers than for passenger, YCC’s back seat designed like a movie theater seats that fold upright until needed for passenger, freeing room on the back floor for loading and unloading. By moving the gear lever and handbrake, the center console has shallow compartment keys, mobile phones, and so forth, with a sliding back compartment capable of storing a purse out of sight. There is also a space for notebook computer, a “cool box”, and a wastepaper basket. With the statement, “If you meet expectations of women, you’ll exceed the expectations of men.” So that the men will also enjoy the design elements since the design is just more concentrate for women, not totally dedicate to women only. Nowadays, men will also carry many staff especially business men, so they can full use the smart storage they YCC provided. Mostly of the men would like to have a comfortable position when driving, and so the personalized driving position will become something that men most enjoy. In the future models, the cars can provide an auto-driving mode on the highway and also auto-parking mode. If the drivers feel asleep when driving on the highway, he or she can have a nap in the car with the auto-driving mode. And for the...
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...Strategic Management 1 Seminar 5 Volvo and Greely With the acquisition of Volvo, Greely Holding gained access to a global dealership network, sophisticated automotive technology, and management know-how. A successful integration of Volvo could help Greely Holding improve its own line of cars for global market and position Greely as a unique brand in the fiercely competitive automobile industry. What would you recommend to Li Shu Fu as Volvo strategy in China? Maintain a independence of Volvo from Greely Volvo has established international reputation, Volvo cars became known for quality, safety, and somewhat quirky Swedish style, whereas Greely is a volume and low-cost brand. I would recommend maintain separate brand identities while Greely management takes seats or board. Offer large, luxury Volvo models I would recommend shift Volvo's brand image into luxury for Chinese market. Introduce new large model in china where luxury goods are desired as status symbol. Whit Volvo Greely has the opportunity to capture the demand for luxury cars. Also the experience and well established sale network of Greely in China is a strength that could help Volvo in this market. In addition, build a Volvo's plant in China is a good option that could help avoid tariffs. Improve Greely's Brand Image I would recommend imitate Volvo's methods for safety, upgrade their technical knowledge base from Volvo's experiences. Also, apply Volvo's products development process. Besides, I recommend...
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...VCC is recognized as a technological innovator & leader. It has bolstered its reputation for safety with such innovations as pedestrian airbags and traffic start-stop while accounting for the future with next-generation technologies like road-trains & car-to-car communications. Judge how VCC (Volvo Car Corp.) integrated the Cloud Infrastructure into its networks Volvo Car Corporation (VCC) integrated the Cloud Computing Infrastructure into its networks. VCC entered into a technological partnership with another reputed company, Ericsson, which specializes in, inter-alia, third-party outsourcing with reference to ICT (Information & Communication Technology). VCC seeks to leverage Ericsson's ICT experience in integrating the Connected Vehicle Cloud into its vehicle line. Future VCC cars will be able to access the cloud for infotainment, apps & communications. Neither VCC nor Ericsson has furnished any details of what features the system will incorporate. However, a look at similar systems adopted by competitors suggests that navigation, informational applications (such as point of interest locators) and Internet radio services are likely attributes. Lex Kersemakers, Sr. VP (Product Strategy & Vehicle Line Management) at VCC said, ‘Cloud infrastructure is a strategy input in VCCs’ investments for the future where we intend to take a leading position.’ Moreover, recent economic circumstances have prompted businesses to rethink and question if a third-party...
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...Case Name: GEELY’s ACQUISITION of VOLVO 1. INTRODUCTION INDUSTRY | AUTOMOTIVE INDUSTRY | TIME OF CASE | 2010 | ISSUE ON HAND | ACQUISITION OF “VOLVO” BY “GEELY” | KEY PLAYERS | “VOLVO” AND “GEELY” | COMPANY COUNTRY | CHINA | FOUNDER OF THE COMPANY | LI SHUFU | PRODUCT | LUXURY CARS | 2. SITUATIONAL ANALYSIS Li Shufu was born in China in 1963, the son of a small business owner. He started the business from making photographs of tourists, then he shifted to making refrigerators and refrigerator parts, and from there he diversified again to motorcycle production business. At the age of 35, in 1998, he started the business of producing cars. The name “Geely” came to him in a dream. Geely was a privately owned firm, which was involved in producing non-luxury cars for its local market of China. For the acquisition of Volvo, Li obtained financing from state-owned banks and governments in China and this acquisition made Geely able to enter in the new market of luxury cars by following a “related diversification” strategy. Now Geely is heading towards lowering the costs and making Volvo more profitable in the industry and following a growth strategy in its business 3. DEEP LIST ANALYSIS Demographics Volvo was a Swedish company; Geely was planning to produce luxury cars at Volvo plants and offering these cars to local Chinese, who desire to drive these luxury cars. This strategy enabled the Geely to target a new market segment in the country...
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...Summary “Volvo’s Heart will remain in Sweden” * Volvo is a brand of premium cars and well known as a safe and trusted cars in United States and Europe. * This Swedish brand is rarely been compared by its predator – at least until now. * Volvo’s new owner is Li Shufu, the chairman of Geely (Chinese Car). * Li Shufu thinks of Volvo as a tiger penned in the zoo and it needs to be loose and liberated in the broader world. * Li Shufu bought Volvo from the previous owner Ford Motor, making Volvo a China’s first purchanse of a premium western car marque. * Mr. Li told the reporter that the Volvo tiger’s ‘heart’ would remain in Sweden, where it has two plants, and in Belgium, where it has one. * Volvo’s manufacturing footprint will be kept in Europe. * Volvo sits in the ‘near-luxury’ or ‘only-just-upscale’ part of the car market, alongside with the rival Swedish brand Saab and Fiat’s loss making Alfa Rome. * Volvo is a subsection of the premium market under attack from luxury leaders BMW, Mercedez-Benz, and Audi since the car industry’s crisis began in 2008. * The German brands’ superior sales and higher prices have allowed them to outspend Volvo on research and development, and ride out the crisis in fitter shape. * Volvo’s signature contribution to car industry history is the three-point seatbelt which it claims has saved more than 1 million lives, make other cars to follow suit. * Even at their 50th year, their have a solid reputation...
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...business sector qualities are declining as a consequence of high capacity, abnormal amounts of imports and business immersion. Ladies are still much more probable than men to live in family units with no car, despite the fact that the example is much more equivalent among more youthful men and ladies. Ladies' increased earning power and rising their financial, thus make them one of the developing significance in growing car producers' debilitated deals targets. (Kaplan, 2015) For Volvo company, they have done a research indicates that in the United states, women purchase about 65 percent of cars and influence 80 percent of all car sales (Walter, 2012). Therefore, Volvo find out the woman preferred car by forming a group of all female team project manager and automobile designer, thus they found out that female customer in the premium segment demand for everything that men wanted in term of the performance, prestige and style. (Carscoops, 2015) In my opinion, other research method that Volvo can use is the Online research methods. The Internet now reaches the great majority of households in the world, and thus, online research provides new opportunity and has increased in use. One of the benefit of online surveys is the use of conditional branching. Conditional branching allows the computer to skip directly to the appropriate...
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...Running Head: Volvo Page 1 Volvo Case Study Assignment 2 Dr. Clifton G. Howell Sheryl Tumey CIS 500 27 October 2013 Volvo Page 2 Volvo is known for making quality cars that set a standard for safety and reliability, five of its 2013 models are ranked in the top 10 for quality, safety and reliability (USNEWS) Since it separated from Ford in 2010 they have made vast improvements in technology. Judge how Volvo Car Corporation integrated the cloud infrastructure into its networks. Volvo has taken innovation to a new level by integrating selling cars with the technology of Microsoft‘s Business Productivity Suite beginning right after the change in ownership. By using the cloud they are able to use the IT staff to focus on the car instead of building a program. They have successfully linked over one thousand supplier’s world wide since its inception. Volvo has also been able to link employees in sales, design and tech support, making problem solving a non issue. They have recently signed with Ericsson’s “Connected vehicle cloud platform” which will power in car applications and infotainment (Gigom.com). Explain how Volvo Car Corporation transforms data into knowledge...
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...The Big Data Case Study By John Jones CIS 500 Dr. Sharon K. Rose October 24, 2014 How Volvo Integrated the Cloud Infrastructure Volvo collects terabytes and terabytes of data from embedded sensors strategically placed in their automobiles. These sensors also monitor information from their customer relationship management (CRM) systems, dealerships, and from their own factory floors. With all of this data coming in, Volvo had to figure out a way to manage and make use of it. They needed to be able to collect and analyze from all from all of these sources and act quickly on the results. Utilizing the cloud enabled them to integrate product configuration, warranty and vehicle diagnostic data in a manageable timeframe. The use of this data has transformed decision-making processes within the organization, leading to benefits in quality, warranty costs, customer satisfaction, and bottom line profitability. How does Volvo Transform Data into Knowledge Every new Volvo car is equipped with sensors and onboard computers that perform a wide range of control, monitoring and diagnostic functions in everything from the engine, braking, climate control, and more. Each of these systems generates a diagnostic trouble code (DTC) when it detects some type of fault. The faults are typically stored in the engine control unit (ECU) until the vehicle goes to a dealership for maintenance. During the vehicle maintenance a service technician connects an analyzer to the vehicle and...
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...Case Study 2.2: The Failed Merger between Renault and Volvo In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set. Cooperation between the two firms had begun in 1990 when Renault took a 25 per cent share in Volvo cars and a 45 per cent share in their truck division. Volvo, for its part, took a 20 per cent share in Renault. The early collaboration took the form of an exchange of engines, the joint purchasing of components and joint developments in quality control. The cooperative arrangements between the two companies were a constant source of internal criticism, which focused on the highly bureaucratic procedures that had been established. In this sense, a full merger was seen by both parties as the more favourable option. The strategic fit between Renault and Volvo seemed ripe for merger. Volvo had strengths in the large car market, where Renault had consistently failed to make an impact. Renault’s strengths lay in the manufacture of small cars and in diesel technology. In terms of market, Volvo was stronger in Northern Europe and especially North America and Renault had a larger market share in Southern Europe and South America. Both companies were probably too small to survive in a globally competitive volume car market. In Europe and the USA, merger was a route for survival, particularly in the face of increasing...
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