Swot analysis of volkswagen company

SWOT Analysis

Volkswagen Background

Established 1937 in Wolfsburg, Germany

Largest Automaker in Europe

Volkswagen in German means “People’s car”

Core markets are Germany and China

Goal: the world’s largest automaker by 2018

Valued engineering excellence, quality, innovations available to the masses

Volkswagen in India

Entered in 2007

3.6% market share

Goal: grow to 5% by 2015

Positioned as more premium than Honda and Toyota

Launched initially in Upper D and Lower D segments

Communicated universal trust, strong heritage, and German engineering

“German engineering, Made for India.”

Industry & Consumer Insights

Buying motives:

Show success to peers and parents

Utility

Personal space

Car market is divided into 10 segments

VW had products in all segments except the lower two

9 consumer segments based on income and value orientation

VW focused on 5 segments (46% of the total market)

SWOT Analysis

Internal

Strengths

Strong creative advertising history

Strong growth in majority of car segments

Diverse product portfolio

Brand favorability score increased by .6, largest of any competitor

Positioned itself as an aspiration brand

Strong global presence

Corporate brand image rankings; innovation, design and technologically advanced.

Awards

Weaknesses

3.6% market share, smaller than competition

Male oriented advertisements

Lack of robust dealer network, only 83 cities

Low brand loyalty

- Ranked among the highest in innovative and technically advanced category under corporate brand image

VW is not the first choice for Indian Consumers

Skoda has a higher premium perception comparatively to VW

Strengths

Strong creative advertising history globally

Strong growth in majority of car segments

Diverse product portfolio

Brand favorability score increased by .6, largest of any competitor

Positioned itself as an aspiration brand

Strong global presence

Corporate brand image in, innovation, design and technologically advanced rankings are higher than competitions, with the technologically advanced category higher than all of its competitors.

Awards

37% brand awareness

Weaknesses

3.6% market share, smaller than competition

Male oriented advertisements

External

Opportunities

Growth in multiple segments

Interest building in automatic transmissions

Growing Indian Middle Class

Threats

Premium perception from consumers

Skoda brand considered more premium than VW

Strong cultural values hard for VW to connect with

VW not the first choice for consumer

Cluttered car advertising space

Honda and Toyota being perceived positively as being their rivals

”objective of the campaign was to double the brand awareness from 9% to 18% within a year and fill the capacity in the new factory in Pune while increasing the sales of the imported models” (FALLS UNDER OBSTACLE THEY FACE)

Research revealed that consumers did not think that VW made cars suitable for Indian conditions, or offered value for money, or offered good customer services.

Opportunities

Growth in multiple segments

Interest building in automatic transmissions

Growing Indian Middle Class

Threats

Premium perception from consumers

Skoda brand considered more premium than VW

Strong cultural values hard for VW to connect with

VW not the first choice for consumer

Research revealed that consumers did not think that VW made cars suitable for Indian conditions, or offered value for money, or offered good customer services.

Cluttered car advertising space

Honda and Toyota being perceived positively as being their rivals

”objective of the campaign was to double the brand awareness from 9% to 18% within a year and fill the capacity in the new factory in Pune while increasing the sales of the imported models” (FALLS UNDER OBSTACLE THEY FACE)