...the exclusive use of L. Jobard, 2015. IMB 443 SEEMA GUPTA VOLKSWAGEN IN INDIA In just 4 years since Volkswagen (VW) set up its India operations, it had captured a 3.6% market share – something the Detroit giants had not been able to do after more than a decade in the country (Exhibit 1). VW was the flagship brand of the Volkswagen group, which also owned Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and Skoda. In India, the group was present with Skoda, Audi, and VW. 1 Maik Stephan, Managing Director, Volkswagen Group Sales India said: While three brands give us the collective power, we have to be careful to market them uniquely so that we are not chasing the same customer. i In 2011, the group’s worldwide revenues and net profit were Euro 159 billion and 15.8 billion, respectively. Headquartered in Wolfsburg, Germany, the group operated more than 60 plants around the world. It was the second largest automaker behind General Motors. It had a market share of 12.3% in 2011. Its core markets were Germany and China. It was the market leader in Europe with a 20% market share. It aimed to become the world’s largest automaker by 2018. With a growth of 30% in the Indian automobile industry, India was to play an important role in realizing the group’s global ambitions. ii VW targeted to increase the market share of its flagship brand in India from 3.6% to 5% by 2015. Neeraj Garg, Director, VW Group Sales India said: We have to transition from launch stage to growth stage of the life...
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...INTRODUCTION In December 2009, Japan’s Suzuki Motor Corp. and Germany’s Volkswagen AG (VW) signed a comprehensive alliance agreement. This agreement was a symbol of the common goal shared by both automobile giants – to create one of the top automobile groups in the world. Under their agreement, Volkswagen acquired a 19.9 percent stake in the Japanese carmaker. Suzuki sold its shares to Volkswagen for a staggering 223 billion Yen. Almost half of this money was spent by Suzuki to buy a 1.49 percent stake in Volkswagen. At that point of time, Toyota was the world’s leading manufacturer of automobiles and Volkswagen had been struggling to get to the top for quite some time. Volkswagen's Chairman Martin Winterkorn said at a press conference in Tokyo – “We want to be the world's No.1 automaker by 2018 and Suzuki's cooperation will accelerate the achievement of our goal". Suzuki’s latent ambition was to become the prime automaker in Japan. It intended to rely on Volkswagen to develop eco-friendly hi-tech vehicles like electric cars and gasoline electric hybrids – an area in which it was lacking technical know-how. Suzuki had also envisaged designing & developing diesel engines in partnership with Volkswagen. They agreed to share technologies and cooperate with each other in a number of critical areas. VW agreed to provide its larger-vehicle technologies to Suzuki and in turn the latter agreed to provide VW access to its small-displacement motors. While the future partnership goals generated...
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...about 336,000 takers. By 1946, the Wolfsburg factory was producing close to 1000 cars a month, a remarkable feat in those times. Post the 2nd World War, Volkswagen served as an icon for the resurrection of West Germany, and showed signs of international expansion by selling its first model in the United States of America in 1949, and its sales services were standardized there by 1955. The Golf Type-I model, was given the title “Beetle” by the quirky, hugely popular advertisement campaigns run in the U.S. then, and was officially adopted by Volkswagen only in 1998. By 1961, VW expanded its production line to include Type-III and Type-IV models, and in 1964, VW bought over the Auto Union and the NSU, successfully creating a merger between the two companies creating the modern day firm Audi, while providing technical expertise to VW. Fig: Time-line of VW models from 1940 to 1975 Between 1974 and 1990, VW began to expand its range of cars, and almost mirrored those of the giant German auto manufacturers such as BMW and so on. Expansion plans included moving to Spain, via the purchase of SEAT, a Spanish automobile...
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...elevated Volkswagen’s brand awareness of eight per cent in 2009 to 44 per cent in 2011. Various ad campaigns of VW are: print campaigns including the first roadblock, the talking newspaper, the Polo hole, painting the newspapers blue for Think Blue or the Silver Jacket for Jetta. The talking newspaper was the star in all of these campaigns. INNOVATIVE TV COMMERCIALS: As part of the campaign, an interesting TVC (TV Commercial) was launched which soon caught the attention of the public, portraying Volkswagen engineers and designers putting a lot of effort into building a Vento, pampering it at every stage and breaking down into tears as the car finally leaves the factory. A complimentary TVC named ‘Flyboy’ was advertised, which portrayed a young hero with wings, doing heroic needs, deciding to forgo his wings and stature as a hero to enjoy the thrill of driving a Jetta. INNOVATIVE NEWSPAPER ADS Times of India and Volkswagen (Print): Volkswagen tied up with Times of India to make a Volkswagen edition on 11th November 2009. Advertisements of Volkswagen brands such as Beetle, Jetta and others dominated the complete newspaper from cover to cover for the day. The front page had a Volkswagen cutout in the form of a car. As per industry estimates, Volkswagen spent around Rs. 100 million for the one-day roadblock. On the 21st of September 2010, readers of ‘Times of India’ in Mumbai, Delhi, Bangalore, Pune and Chennai were taken by surprise when their newspapers ‘talked’ to them about...
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...world. The main aim of the company is to become the first automobile manufacturer by 2018 and India became one of the key “element” in this strategy, since India the second fastest growing automobile market. Volkswagen India operates since 2001 when they presented Skoda brand to the Indian car market. Methodology For the following research was implemented realism philosophy, which means that both positivism and interpretivism approaches were used. The main tool, which was used in this particular research, was secondary data, as India country was chosen as a research area, so collecting primary data was impossible. Mainly the annual reports, journal articles and in some cases books were used. As India was chosen for the research, there was no ability to conduct the survey and use primary data. Situation analysis A. The internal environment Review of marketing goals and objectives * 15% annual growth rate for the next five years * To bring new technologies in car market of India * To increase market share twice, to 7% by 2018 * To explore India car market with new dealerships * Raise brand awareness of the company in India It should be mentioned that in order to increase quantity of customers and prove that Volkswagen is company Indian people could trust, Volkswagen introduces Polo GT TDI in 13 September 2013 with remark “German quality made in India ”. This model is segmented mainly for the families with middle income, still stay very mobile...
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...the effects it had on Germany and its economy, Volkswagen survived and soon became a symbol of hope for the German future. In 1969, Volkswagen merged with what is now called Audi, to grow and expand the company. As Volkswagen grew and became more profitable they continued to expand globally and acquire new companies becoming the Volkswagen Group. The Volkswagen Group consists of Volkswagen, Audi, Bentley, Lamborghini, Bugatti, Ducati, Porsche, Suzuki, Skoda, SEAT, Scania, and MAN. This once small German car company for the people is now comprised of several companies, making Volkswagen one of the most global, highest producing, and most profitable automobile manufacturers amongst its competition. Compared to the industry growth of 8.6%, VW is growing at 9.1% and has plans to keep expanding. Because of their larger growth, they will be able to capture more of the market share. Volkswagen has recently become significantly more profitable,...
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...(Toyota) targets the same customer base which makes it important for VW to find new ways of reaching new customers while at the same time maintaining their loyal customer base. The company is currently at a cross road. They are currently facing the worst crisis in its history. Solutions will need to be made in regards to lowering CO2 emission levels in their engines (Gardner, 2015). These solutions will be a huge financial investment by the company. Initially, this investment will set them back as a company. But, if done correctly, it will allow the company to flourish over the next 50 years with the new expansion opportunities in India and Brazil. Three Things That I Did Not Know About Volkswagen Over the course of this ten week Business class, I have learned so much in regards to Volkswagen. The three specific topics that I was not aware of before completing research are as follows: * Over the years, Volkswagen has shown to have a very aggressive promotional campaign. This has been attained by image based advertising. They have found that when customers see the “VW” logo, it signifies character and reliability. Because of this, Volkswagen has developed a strong customer loyalty base, which has been one of the main reasons that the company has grown so much over the last 100 years (Murphy, 2015). * Currently, Volkswagen’s main focus is for a new, expanding place of production is India. India has the fastest growing population and economy in the world. It is...
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...Destinations briefings. As you do, fill out the chart on the next page, and answer the two questions on this page. 1. Based on reading all the briefings, what country should VW of NA choose as a destination for an outsourced IT help desk service? This should NOT be the country that you researched (e.g., it might actually be your second choice). Why did you conclude that this country is a desirable offshore destination for the IT help desk? Jordan offers all the essential elements that would be important to VW of NA’s outsourced IT help desk. The country is positioned to provide low labor costs, a qualified workforce, and a modern infrastructure. Cost effectiveness is particularly important to VW, and hourly labor expenses are only $1.50 in Jordan. Such an IT intensive function requires both communication skills and technical expertise. Jordan’s workforce is one of the most qualified and competitive in the region, benefiting from a high literacy rate and an understanding of the English language. The labor force benefits from one of the most prestigious university in the Arab world, located in Jordan, with an IT department considered the best in the Middle East. Infrastructure is modern and competitive in both the mobile and internet markets, as Jordan’s network readiness ranks only two below India. Jordan was recently ranked number nine in the Global Services Location Index, another indication that the country would be effective in providing IT services from abroad. ...
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...world. It is first destination for Inward FDI among developing countries (WTO, 2012). China has developed second world’s largest car market after U.S.A. and has been the largest car producer in the world since 2008. German company Volkswagen (hereafter VW) is the world’s second largest motor vehicle manufacturer after Toyota Motor (CNN, 2012) and the biggest manufacturer in Europe. VW is one of the earliest investors and the biggest foreign car maker in China with 15% of market shares. This report, by applying relevant theories, such as Dunning’s eclectic paradigm or Hymer’s internationalization theory, will explain why VW Company decided to invest in China through joint venture rather than acquisition or Greenfield investment. Introduction Chinese car industry, as well as many other branches, is very young, although dynamic and fast growing. In 1978 Chinese government introduced policy of open doors which allowed foreign companies to invest and operate in China. Since then car sector has developed rapidly from an infant to a mature industry. Moreover, Chinese government provides various incentives in order to attract foreign firms invest in Chinese car market, which the cause for industry dramatic development. VW entered Chinese market in 1984 setting up joint venture with the Shanghai Shanghai Auto Works which created Volkswagen Automotive Company Ltd. This was shortly followed by the Volkswagen Automotive Company Ltd in Changchun in 1990. Simultaneously European...
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...The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. In 2011, the Group increased the number of vehicles delivered to customers to 8.265 million (2010: 7.203 million), corresponding to a 12.3 percent share of the world passenger car market. In Western Europe over one in five new cars (23.0 percent) comes from the Volkswagen Group. Group sales revenue in 2011 totalled €159 billion (2010: €126.9 billion). Profit after tax in the 2011 financial year amounted to €15.8 billion (2010: €7.2 billion). The Group is made up of ten brands* from seven European countries: Volkswagen, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Volkswagen Commercial Vehicles, Scania and MAN. Each brand has its own character and operates as an independent entity on the market. The product spectrum extends from low-consumption small cars to luxury class vehicles. In the commercial vehicle sector, the product offering ranges from pick-ups to buses and heavy trucks. The Volkswagen Group is also active in other fields of business, manufacturing large-bore diesel engines for marine and stationary applications (turnkey power plants), turbochargers, turbo-machinery (steam and gas turbines), compressors and chemical reactors, and also producing vehicle transmissions, special gear units for wind turbines, slide bearings and couplings as well as testing systems for the mobility sector. The Group operates 94...
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...SWOT analysis SWOT & TOWS Analysis Table of Contents SWOT & TOWS AnalysisTable of Contents 1 Table of Contents 2 Understanding SWOT Analysis 3 Why use the tool? 3 How to use tool: 3 Strengths: 3 Weaknesses: 3 Opportunities: 3 Threats: 3 Example: 4 Strengths: 4 Weaknesses: 4 Opportunities: 4 Threats: 4 Key points: 4 Case Study-SWOT Analysis Wal-Mart 5 Strengths 5 Weaknesses 5 Opportunities 5 Threats 5 Case Study-SWOT Analysis Starbucks 6 Strengths 6 Weaknesses 6 Opportunities 6 Threats 6 Case Study- SWOT Analysis AT&T 7 Understanding TOWS Matrix 8 Why use the tool? 8 How to use tool: 8 Strengths/Opportunities: 8 Strength/Threats: 8 Weaknesses/Opportunities: 8 Weaknesses/Threats: 8 Case Study- Application of the TOWS Matrix to Volkswagen 9 Weaknesses and Threats (WT) 9 Weaknesses and Opportunities (WO) 9 Strengths and Threats (ST) 9 Strengths and Opportunities (SO) 10 Understanding SWOT Analysis Why use the tool? SWOT Analysis is an effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. How to use tool: To carry out a SWOT Analysis, write down answers to the following questions. Where appropriate, use similar questions: Strengths: • What advantages do you have? • What do you do well? • What relevant resources do you have access to? • What do other people see as your strengths? Consider this from your own...
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...Term Paper Of Research Methodology (A Perspective on the Future of Small Cars in India) Submitted to: Submitted by: Ms. Kanika Jhamb Naveen Bangwal Roll no. - 05 Section – A17B2 Reg. no. -7470070078 B-Tech (h) - MBA (IT) Table of contents Abstract introduction objectives and scope of the study RESEARCH methodology literature review tata’s nano conclusion recommendations bibliography abstract A strong car brand can create significant value in the automotive industry. The price consumers expect to pay for otherwise identical luxury vehicles can vary as much as $4,000, depending on the car's brand. For mass-market cars, brand helps determine which products a consumer considers buying. Furthermore, superior brands extend their halo across every model of vehicle within the brand. It's no surprise that most auto manufacturers make brand positioning and development a key item on their marketing agenda. Because of the prominent role that brand positioning and development play in many auto manufacturers' business strategies, this research has been conducted under extensive research and analysis to better understand how consumers think about car brands. The study analyzes the set of factors which provide valuable insights into consumer brand perceptions. The...
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...Subcultures 4. Consumer Expectations 5. Consumer Motivations 6. Brand Loyalty 7. Creative Recommendation PART 1 1/ Company Background History of VW Volkswagen AG is a Germany-based automobile manufacturer. The Company develops vehicles and components, and also produces and sells vehicles, in particular Volkswagen brand passenger cars and commercial vehicles. The Company consists of two divisions: Automotive and Financial Services division. The Automotive division is responsible for the development of vehicles and engines, the production and sale of passenger cars, commercial vehicles, trucks and buses, and the genuine parts business. The Financial services division's portfolio of services includes dealer and customer services in the field of financing, leasing, direct bank, insurance and fleet business. The Company's brands include Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, Scania and Volkswagen Commercial Vehicles and each brand offers a product range from low-consumption small cars to luxury class vehicles, as well as pick ups, busses and heavy trucks in the commercial vehicle sector. History of VW in Malaysia The establishment of VW Group Malaysia is the fourth time that the VW brand has had an official distributor, and this time it is VW itself. VWs first appeared here in the 1950s when Champion Motors began importing the Beetle and the first showroom was in Sungei Besi, Kuala Lumpur. In 1967, local assembly started at...
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...no. Chapter 1 01-06 Includes INTRODUCTION TO THE STUDY.............................................. 02 EXECUTIVE SUMMERY............................................................ 03 INTRODUCTION TO AUTOMOBILE INDUSTORY....................... 04 Chapter 2 Includes 07-34 LITRATURE REVIEW................................................................ 09 INTRDUCTION ABOUT VOLKSWAGEN GROUP........................ 16 DIFFERENT SUBSIDERIES OF VOLKSWAGEN.......................... 18 HISTORY OF VOLKSWAGEN GROUP........................................ 19 INTRODUCTION ABOUT BRAND VOLKSWAGEN...................... 21 HISTORY ABOUT BRAND VOLKSWAGEN................................. 22 INTRODUCTION ABOUT VOLKSWAGEN INDIA......................... 29 ABOUT THE DEALER - BHARAT MOTORS................................. 33 Chapter 3 35-70 Includes OBJECTIVE OF STUDY............................................................. 36 RESEARCH METHODOLOGY.................................................... 37 SCOPE OF THE STUDY............................................................. 39 AREA COVERED...................................................................... 40 ANALYSIS............................................................................ .... Chapter 4 71-78 42 Includes CONCLUSION /...
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...environmentally friendly products and solutions. We believe in making innovative cars consistent with sustainable future.. And the time is now. Advertisement Campaign:- Volkswagen took out two full-page advertisements in the Nav Bharat Timesdated 28th September 2013. The national print campaign featured a small light-sensitive box that vibrated when the reader was on the page, but would automatically turn off when the page is flipped. The ad asked the reader if they could “feel the shiver of excitement??” In the study below I have compared the innovation rich culture of Volkswagen with its “feel the shiver?? Ad campaign. I Tried to find out how effectively it can capture consumer perception by going out of the way to promote POLO and VENTO in India. The Objectives for the advertisement were: First, to create awareness for the brand. Second, is to support sales and bring roughly new cars to the road. Third, if you open the jacket, it's a double spread. Brand Target: The brand basically wants to target upper middle class and rich consumers. * How does the communication capture consumer perception and attention as well as foster learning and memory of the intended interpretation? For a brand like Volkswagen, which is innovation oriented the advertising should also be innovative and this ad campaign completely justifies the company’s technical superiority over other car manufacturers. 25 lakh readers across six metros are expected to have woken up to not just the news, but also...
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