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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
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