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Presented by:NIKHIL RASTOGI(4132025)PARGAT SINGH VIRK(4132013)Strategy At Volkswagen Group India

Volkswagen GroupVolkswagen Group is a German Automobile Manufacturing Group.

3rd largest automobile manufacturer

Parent Company- Volkswagen AG

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

Established in 1937; Trails Toyota and GM2Cont..Group operates 60 production plants around the world.

Volkswagen AG, is globally represented by 9 brands- Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen Passenger Cars.

Europe is its largest market followed by China (VGC)VW Golf is the 3rd best selling automobile.In 2009, 6.31 million passenger car sold~11 % worldwide share3Das Auto

Volkswagen Group IndiaVolkswagen Group India, the Indian subsidiary is a part of Volkswagen AG.

It has its headquarters in Pune, Maharashtra (India).

Volkswagen Group is represented by three brands in India: Volkswagen, Audi and Skoda.

Volkswagen Group is completing 10 years of its India journey which began with the entry of the Skoda brand in 2001, Audi brand and Volkswagen brand in 2007.

ContIt currently has 16 models in the Indian market.

Volkswagen Group are setting up dealerships spanning the entire country with Volkswagen, Skoda and Audi having in total around 70 dealerships in 56 cities across 18statesand 2union territoriesof India.

Volkswagen Group have together sold around 19,000 vehicles in India in 2009, an increase of 1.4% over 2008 in a year marked by recession in the auto industry.

Cont.Skoda entered the Indian market in 2001.

Its plant in Aurangabad, assembles a total of eight models including the Audi A6 and Audi A4 as well as the Volkswagen Passat and Volkswagen Jetta.

Groups production facility near Pune in the Chakan Industrial Park is a key element in Volkswagens India strategy to establish a long term presence.

Cont.Total sum invested of around INR 3,800 crore (580 million Euros) is the biggest investment of a German company realized in India so far.

The plant, one of the most modern in the Volkswagen Group has a high level of vertical integration.

Annual capacity of around 110,000 cars.

Corporate StrategyGlobal challenges such as climate change and scarce resources demand sustainable solutions.

Volkswagen Group has been employing various methods to envisage the future and thereby enhance its competitive position.

Volkswagen Group has charted a clear course with our 18plus strategy.

Mach 18Plus Strategy

Business StrategySkoda Auto IndiaLaunched its first product, the OCTAVIA, in India in 2001.

Was the only possible step to enter India.

Skoda adopted a Focus Strategy approach relying on differentiation as a luxury car maker.

Not targeting mass segmentUnique Value proposition of quality to customers, who can spend a bit more

12Audi IndiaAudi is one of the worlds leading premium brands.

Basis of its success comprises pioneering concepts in the domains of advanced technology and design.

Audi has been selling its products in Indian market since 2004.

For this Audi AG has earmarked investments of up to 30 million (Rs174 crore) by 2015 in its local operations.

Also Audi India plans to come up with a car in corporate entry level i.e. Toyota Camry following the lead of BMW.

Volkswagen IndiaVolkswagen is the highest volume brand of VW Group.

Volkswagen presents itself in a variety of segments as a premium manufacturer of high-volume models.

As a first step, the Volkswagen brand launched the globally successful Passat in 2007.

ContTo expand its portfolio and cater to the mid segment, Volkswagen launched one of the brands bestselling models, the Jetta, in India in July 2008.

Iconic New Beetle and the high-end SUV Touareg were introduced in December 2009.

Also available is the high-end automobile Phaeton.

From December 12, 2009 the new Pune plant has started rolling-out the hatchback version of the Volkswagen Polo.

Cont.After Polo, Vento is VW's second car targeting the mass market.

It will be positioned at the upper-end of the country's mid-sized sedan segment.

Volkswagen India has adopted a top-down strategy to arrive at competitive pricing.

It is directly pitted against market leader Honda City, Marutis SX4, Ford Fiesta etc.

Priced at 6.99-9.23 lacs; Both petrol and diesel version.18Functional Strategy Marketing Strategy of VW IndiaChina is the 2nd largest market for VW Group after Europe.

Volkswagen plans to use its learning in China in India.

Aggressive price tags and high-decibel advertisements.

Volkswagens strength lies in the mass market. Its name, after all, means peoples car in German.

Brand Positioning

Value PrestigeRational Emotional

ContWhen VW started out in 2007, low brand awareness was one of the key concerns.

Thus Volkswagen came out with 13 advertisements in a leading English newspaper.

It told readers all they ever wanted to know about Volkswagen how the name came about, its product line and so on.

ContBy the time the campaign ended, Volkswagen had used 18,000 television spots, 144 insertions in broadsheet dailies, 50 insertions in magazines, 280 out-of-home sites and 23 digital portals.

To improve brand recall, the next campaign showed all Volkswagen cars: The Beetle, Passat, Jetta and Touareg.

Customer based brand equity The Volkswagen customer based brand equity is equally strong on the left and right hand sides.

It is also strong from bottom to top, enjoying the highest brand awareness of a carmaker as well as high repeat purchase rates and customer loyalty.

To a certain extent Volkswagen has successfully focused on both the superior product attributes and the imagery associated with owning and driving a Volkswagen.PRICING AND DISTRIBUTIONVolkswagen India Private Limitedcurrently has more than 70 dealerships in 56 cities across 18statesand 2union territoriesof India.

There are company specified retailers and distributors through out the world who are in constant touch with the parent and comply implicitly.

Dealers also have round the clock servicing and repair.

Volkswagen also has a used car portal where one can choose and buy his/her appropriate model.

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