A PROJECT REPORT ON MARKETING STRATEGIES OF VOLKSWAGEN INDIA, VISAKHAPATNAM

Data provided here is not absolute….its only for

reference

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CHAPTER – 1 1.1 Introduction

1.2 Need For The Study

1.3 Objectives Of The Study

1.4 Scope of the study

1.5 Methodology Of The Study

1.5 Limitations Of The Study

CHAPTER - 2 VOLKSWAGEN INDUSTRY PROFILE

CHAPTER – 3 VOLKSWAGEN COMANY PROFILE

CHAPTER – 4

THEORITICAL FRAMEWORK OF

MARKETING STRATEGIES

CHAPTER – 5 ANALYSIS & INTERPRETATION

CHAPTER – 6 6.1. FINDINGS 6.2. SUGGETIONS6.3. SUMMARY 6.4 CONCLUSION

ANNEXTURE –

Questionnaire

BIBLIOGRAPHY

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CHAPTER I

1.1 Introduction

1.2 Need For The Study

1.3 Objectives Of The Study

1.4 Scope of the study

1.5 Methodology Of The Study

1.6 Limitations Of The Study

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1.1 INTRODUCTION TO THE PROJECT

The project title is “MARKETING STRATEGIES” serve as the

fundamental underpinning of marketing plans designed to fill market needs

and reach marketing objectives.

This industrial training makes the management students under go

practically which they know theoretically. M.B.A. student can imagine the

problems with the theoretical knowledge he has, but he can only solve it

when he has practical experience or knowledge.

So, it is a compulsion for all MBA students to undergo the month’s

practical training in their concerned subjects in any industry or company.

After that we are required to submit a project report on the practical

experience we have acquired.

So, I undergone to the practical training in one of the leading Automobiles in

Andhra Pradesh i.e. VOLKSWAGEN ATR CARS PVT LTD, which is situated on

N.H.-5, opp BHPV,Visakhapatnam.

Marketing strategy is also known as geographical market analysis and it is

the Easiest Way to Identify Where Your Customers Come From and Who They

Are. This project focus on to know the profile and from which geographical

part of visakhapatnam the potential customer of Volkswagen cars can be and

what is the consumer behavior of various users of cars like how many cars

do they have and after how much do they like to change their cars . The

whole survey has been done in various parts of Visakhapatnam city like Focal

Point, Industrial Area.

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1.2. NEED OF THE STUDY

The modern world emphasizes on purposeful learning experiences under

natural condition to meet the cutthroat competition existing in the world. So,

under such circumstances a project can be defines is “a purposeful

dedicated effort in social environment to earn and nourish in the present

world.” So, the summer training undergone is of immense benefit to us. The

training undergone gives lot of practical exposure and the real working

environment.

After knowledge of management theories and practices it becomes very

essential to recognize the practical implementation of everything learned. So

in order to meet the challenges, we marched towards common goal. The

training enabled is a real platform of life to implement the knowledge in the

natural and practical working conditions of a corporate house.

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1.3. OBJECTIVES OF THE STUDY

The study has been under taken to analyze the customer profile and

mapping to understand the consumer behavior regarding automobile sector.

Objectives:

The main objective was to study the marketing strategies with special

reference to Volkswagen in the city of Visakhapatnam.

To know the customer profile.

To analyze the exact segregation of the industry of India

To know at which geographical segment the potential customer exist.

To know the consumer behavior regarding cars on following

parameter.

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1.4. SCOPE OF THE STUDY

The scope of study “The Marketing Strategies of Volkswagen car market with

reference to ATR CARS Pvt ltd, Visakhapatnam authorized dealer for selling

the Volkswagen cars, has been chosen to study the marketing strategies.

The study was undertaken to study the marketing strategy of Volkswagen.

This included the study of various factors effecting the market, comparison

of the various brands available in the market, different media used by the

company to advertise the Brand, that is the various strategies implemented

in the market.

This study enables the company to look into various factors effecting the

purchase from the consumer point of view. This in turn will help the

company to deliver their products to maximum satisfaction of the consumer

and it will also enable the company to make the consumers aware about its

products in clear and better way.

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1.5. METHODOLOGY

we collected the data from various sources. They are:

Primary data

Secondary data

Primary data:

Data was collected through the administration of a questionnaire

prepared for the purpose of the study. The questionnaire involved 50 number

of questions enquiring about, brand preferences for their purchase,

conditions considered to make particular purchase, which media created

awareness etc…

Secondary data:

The data collected by researcher which is available through records,

reports, websites, news papers, magazines

Internet

Magazines

Broachers

Other references

1.6. LIMITATIONS OF THE STUDY

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The research study suffers from following limitations:

The Visakhapatnam market was too vast and it was not possible to

cover each and every customer in the available short span of time.

Generally, the respondents were busy in their work and were not

interested in responding.

Respondents were reluctant to disclose complete and correct

information about themselves and their organization..

Most respondents were reluctant to provide exact information as in

why they preferred particular company’s car.

The research was conducted in present prevailing conditions. There

can be some fluctuations in the market, which can offset the findings.

The project is carried out for the period of 45 days only.

Measurement of customer satisfaction is complex subjects, which uses

non-objectives method, which is not reliable.

Some of the employees would not respond due to lack of time.

The sample unit was also 250 respondents

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CHAPTER 2

INDUSTRY PROFILE

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INTRODUCTION OF AUTOMOBILE INDUSTRY

The automobile industry has changed the way people live and work. The

earliest of modern cars was manufactured in the year 1895. Shortly the first

appearance of the car followed in India. As the century turned, three cars

were imported in Mumbai (India). Within decade there were total of 1025

cars in the city.

The dawn of automobile actually goes back to 4000 years when the first

wheel was used for transportation in India. In the beginning of 15th century,

Portuguese arrived in China and the interaction of the two cultures led to a

variety of new technologies, including the creation of a wheel that turned

under its own power. By 1600s small steam-powered engine models was

developed, but it took another century before a full-sized engine-powered

vehicle was created. Brothers Charles and Frank Duryea introduced the

actual horseless carriage in the year 1893. It was the first internal-

combustion motor car of America, and it was followed by Henry Ford’s first

experimental car that same year.

One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce

Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding

windscreens and hood, and an aluminum body. Chauffeurs usually drove it

and emphasis was on comfort and style rather than speed. During the 1920s,

the cars exhibited design refinements such as balloon tires, pressed steel

wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured

an 8-cylinder engine and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back

door that suited more to the needs of families. In 1930s, vehicles were less

boxy and more streamlined than their predecessor was.

The 1940s saw features like automatic transmission, sealed-beam

headlights, and tubeless tires.

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The year 1957 brought powerful high-performance cars such as Mercedes-

Benz 300SL. It was built on compact and stylized lines, and was capable of

230 kmph (144 mph).This was the Indian automobile history, and today

modern cars are generally light, aerodynamically shaped, and compact.

Facts & Figures

The automobile industry in India is on an investment overdrive. Be it

passenger car or two wheeler manufacturers, commercial vehicle makers or

three-wheeler companies – everyone appears to be in a scramble to hike

production capacities. The country is expected to witness over Rs

30,000crore of investment by 2010.

Hyundai will also be unmasking the Verna and a brand new diesel car.

General Motors will be launching a mini and may be a compact car.

Most of the companies have made their intentions clear. Maruti Udyog has

set up the second car plant with a manufacturing capacity of 2.5lakh units

per annum for an investment of Rs 6,500 Crore (Rs 3,200 Crore for diesel

engines and Rs 2,718 Crore for the car plant itself). Hyundai and Tata Motors

have announced plans for investing a similar amount over the next 3 years.

Hyundai will bring in more than Rs 3,800 Crore to India. Tata Motors will be

investing Rs 2,000 Crore in its small car project.General Motors will be

investing Rs 100 Crore, Ford about Rs 350 Crore and Toyota announced

modest expansion plans even as Honda Siel has earmarked Rs 3,000Crore

over the next decade for India - a sizeable chunk of this should come by

2010 since the company is also looking to enter the lucrative small car

segment. .Talking about the commercial vehicle segment, Ashok Leyland and

Tata Motors have each announced well over Rs 1,000 Crore of investment.

Mahindra & Mahindra’s joint venture with International Trucks is expected to

see an infusion of at least Rs 500 Crore. Industry performance in 2008-09

The Indian automotive market managed to stand up to the vagaries of the

economic meltdown to show slightly growth during fiscal 2008-09. Overall

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vehicle sales at 97.23lakh grew 0.71 percent from 96.54lakh units in 2007-

08.

When major automotive markets reported a 30-40 per cent decline, only a

handful of countries managed to show growth. A few months ago, India was

looking at negative growth but has turned around. It is actually better than

expected.

Passenger vehicle sales at 15.51lakh registered flat growth while commercial

vehicle sales showed a 21 per cent drop.

SIAM has a positive outlook for the current financial year. While it foresees a

7-8 per cent growth for the commercial vehicle segment, the industry body

predicts a 3-5 per cent growth for passenger vehicles.The passenger vehicle

market has weathered the downturn largely due to market leader Maruti

Suzuki which holds 48 per cent of the market. The compact car giant clocked

7.22lakh units for2008-09. Closest rival Hyundai Motor India sold 2.44lakh

cars, a growth of 13 per cent.

Most premium carmakers saw volumes shrink last fiscal.

Toyota Kirloskar Motor’s numbers fell 15 per cent to 46,892 units while Ford

India’s sales were down 17 per cent to 27,976 units.

Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while

General Motors India was down 8 per cent to 61,526 units.

Among commercial vehicle makers, all major players saw substantial fall in

volumes. Market leader Tata Motors with a 60 per cent plus share, showed

22 per cent drop in numbers at 2.34 lakh units while Ashok Leyland showed

37 per cent drop at 47,632.

Either’s sales volume fell 37 per cent at 17,341 units and Force Motors was

down 28 per cent at 7,819 units. “The freight movement is unlikely to

improve this fiscal which will impact truck Bsales.

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Worldwide location of various Volkswagen plants

Operations

Volkswagen has become a large international corporation from where it

started and expanded to different worldwide markets and countries. The

world headquarters of Volkswagen are located in its home country in

Wolfsburg, Germany. Volkswagen AG, owned by the Volkswagen

Group, is situated with other car manufacturers including Audi, SEAT,

Lamborghini, Bentley, Bugatti, Scania, and Skoda. Volkswagen is

currently Europe's largest automaker. For a long time, Volkswagen has

had a market share over 20 percent. Worldwide, Volkswagen officially

ranks as the 3rd largest manufacturer behind Toyota and GM as

measured by OICA in 2009. In 2010, Volkswagen, posted record sales of

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6.29 million vehicles, with its global market share at 11.4%. Volkswagens

core markets include Germany and China. After overtaking Ford in 2008,

Volkswagen became the third largest automaker in the world.

Volkswagen has aimed to double its US market share from 2% to 4% for

the year 2014, and is aiming to become, sustainably, the world's largest

car maker by 2018.

Ownership

Volkswagen is a publicly traded company, which issued ordinary shares

and preferred shares. The ownership structure is complex. The following

table shows the current shareholder structure. Note that neither the

Porsche Automobil Holding nor the Porsche GmbH are identical with the

Dr. Ing. h.c. F. Porsche AG, which is responsible for the production of

Porsche sports cars. The Porsche Automobil Holding is owned by the

Porsche family, the Emirate of Qatar, 49.9% are owned by the

Volkswagen AG. The Porsche GmbH was sold to the Volkswagen AG.

Shares Held by

50.76% as of 30 Jan

2009

Porsche Automobile

Holding

2.37% as of 30 Jan

2009Porsche Holding GmbH

20.26% as of 16 Feb

2008State of Lower Saxony

17% as of 18. Dec

2009Emirate of Qatar

9.61% widely held

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Worldwide presence

Volkswagen has factories in many parts of the world, manufacturing or

assembling vehicles for local markets. Volkswagen has manufacturing or

assembly plants in Germany, China, India, Russia, Brazil, Argentina,

Portugal, Spain, Poland, Mexico, Bosnia and Herzegovina, and South

Africa. Volkswagen also has a new plant in the United States. In 2011, it

was named in the top 25 largest companies in the world by the Forbes

Global 2000.

Product Line

Cars

Further information: List of Volkswagen passenger cars

Volkswagen sells a number of cars under its namesake brand, including

sedans, MPVs, trucks, SUVs, and coupes. Their product range extends

from the supermini Polo, to compact Golf, to mid-size Jetta and Passat,

and full-size Phaeton. SUVs include the Tiguan and Touareg.

Volkswagens current model range:

Fox

Polo

Golf

Golf Plus

Beetle

Passat

Passat CC

Scirocco

Tiguan

Eos

Jetta

Touran

Sharan

Touareg

Phaeton

Environmental record

Volkswagen first implemented its seven environmental goals in Technical

Development in 1996. The plan contains themes involving climate

protection, resource conservation, and healthcare, through objectives

such as reducing greenhouse emissions and fuel consumption, enabling

the use of alternative fuels, and avoiding the use of hazardous materials.

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The original 1996 goals have since been revised in 2002 and 2007.

Volkswagen was the first car manufacturer to apply ISO 14000, during its

drafting stage and was re-certified under the standards in September

2005.

Motorsport

In 1963, Formula Vee circuit racing, with cars built from easily

available Beetle parts, started in the United States. It quickly spread to

Europe and other parts of the world. It proved very popular as a low-

cost route into formula racing.

In 1971, Volkswagen of America started the more powerful Formula

Super Vee, which became famous for hothousing new talent. In the 11

years it ran, until 1982, it produced a stable of world-famous Formula

One drivers—names like Niki Lauda, Jochen Mass, Nelson Piquet,

Jochen Rindt and Keke Rosberg. Volkswagen also notched up several

victories, and the championship in Formula Three.

In 1976, Volkswagen entered the under-2000-cc Trans-Am Series, with

the Scirocco, and they won their class outright.

In 1981, now based in Hanover, and renamed Volkswagen Motorsport,

VW took a new direction into rallying, with the launch of the first-

generation Golf, and Sweden's Per Eklund, Frenchman Jean-Luc

Thérier, and the Finn Pentti Airikkala. The final chapters in Volkswagen

Racing UK's rallying story were the 'one-make' Castrol Polo Challenge,

and the Polo GTI 'Super 1600' in 2001.

In 2000, Volkswagen started a one-make racing cup with the newly

released to Europe New Beetle called the ADAC New Beetle Cup.

Beside that, the ADAC Volkswagen Lupo Cup, founded in 1998, is

continued to support young talents on the way to the top.

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In 2001, the department was renamed Volkswagen Racing, and since

then has concentrated all its efforts on developing its circuit racing

championship, the Volkswagen Racing Cup.

In 2003, VW replaced the ADAC Volkswagen Lupo Cup with the newly released Polo, to become the ADAC Volkswagen Polo Cup.

In 2004, Volkswagen Commercial Vehicles entered the European Truck

Racing series with the Volkswagen Titan series truck – it became back-

to-back champions for the 2004 and 2005 series.

In 2011 Volkswagen Motorsport entered two Skoda Fabia S2000s into

the World Rally Championship for round 8 in Finland. The drivers were

Andreas Mikkelsen and Joonas Lindroos.

In 2018, Volkswagen is considering a move in to Formula One

according to VW's head of motorsport.

Achievements of Volkswagen

In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audi

developed Iltis, placing 1st, 2nd, 4th and 9th overall.

Volkswagen enlists Dakar Champion Jutta Kleinschmidt, the first

woman to win the Dakar rally in 2001, to help design and compete a

Dakar Racer.

In 2003, the Hanover based team starts with a 2WD buggy named

Tarek. It placed 6th outright but took 1st in the 2WD and Diesel class.

In 2004, VW enters the newly developed Race-Touareg T2, finishing

6th overall and 2nd in the Diesel class.

In 2005, an updated Race-Touareg with slightly more power is entered,

with driver Bruno Saby, finishing in 3rd overall and 1st in the Diesel

class.

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In 2006, Volkswagen released the most powerful Race-Touareg yet: the

Race-Touareg 2. Five vehicles entered, with driver Giniel de Villiers

finishing in 2nd place overall, and 1st in the Diesel class.

In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina and

Chile. Race Touareg 2 finished 1st and 2nd.

In 2010, Volkswagen won the 2010 Dakar Rally held in Argentina and

Chile. Race Touareg 2

defends 2009 victory with first three places.

In 2011, Volkswagen won the 2011 Dakar Rally held in Argentina

and Chile. Race Touareg 3 defends 2010 victory with first three

places.

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CHAPTER 3

VOLKSWAGEN COMPANY PROFILE

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The Indian automobile industry seems to come a long way since the first car

that was manufactured in Mumbai in 1898. The automobile sector today is

one of the skey sectors of the country contributing majorly to the economy

of India. It directly and indirectly provides employment to over 10 million

people in the country. The Indian automobile industry has a well established

name globally being the second largest two wheeler market in the world,

fourth largest commercial vehicle market in the world, and eleventh largest

passenger car market in the world and expected to become the third largest

automobile market .

The growth of the Indian middleclass along with the growth of the economy

over the last few years has resulted in a host of global auto giants setting

their foot inside the Indian Territory. Moreover India also provides trained

manpower at competitive costs making the country a manufacturing hub for

many foreign automobile

Indian Automobile Export market

India is a very favorable market for small cars be it production, sales or

export. Since the Indian automobile industry is the largest manufacturer of

small cars companies like Hyundai and Nissan Motors export about 2,40,000

and 2,50,000 annually. India emerged as Asia's fourth largest exporter of

automobiles, behind Japan, South Korea and Thailand. The Indian automobile

exports registered a 22.30 percent growth in the year 2009.

Key automobile manufactures in India

MarutiUdyog

General Motors

Ford India Limiteds

Eicher Motors

Bajaj Auto

Daewoo Motors india

Hero Motors

Hindustan Motors

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Hyundai Motors India Limited

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Limited

Volkswagen.

Current Existing Dealers in India

Visakhapatnam- Volkswagen Visakhapatnam

ATR CARS pvt. ltd

Ludhiana - Prestige Motors, Lally Motors India Private

Limited

· Ahmedabad - Volkswagen Ahmedabad

Automark Motors Pvt.Ltd

· Bangalore - Elite Motors Pvt.Ltd

· Bangalore - Volkswagen Palace Cross

· Chandigarh - Genuss Motors, Swami Automotives Pvt.Ltd.

· Cochin - Volkswagen Cochin

EVM Motors & Vehicles India Pvt Ltd

· Chennai - Volkswagen Chennai

ABRA Motors Private Limited

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· Coimbatore - Volkswagen Coimbatore

Ramani Cars Private Limited

· Delhi - DD Autoworld Private Limited

· Delhi - Kashyap Vehicle Works Private Limited

· Delhi West - Volkswagen Delhi West

World class Automobiles Pvt. Ltd.

· Goa - Volkswagen Goa

Caculo Automotive Pvt. Ltd

· Hyderabad - Orion Motors

· Jaipur - Volkswagen Jaipur

Tanya Cars Pvt Ltd

· Kolkata - Volkswagen Kolkata

OSL Exclusive Pvt Ltd

· Mumbai - Volkswagen Downtown Mumbai

· Pune - Volkswagen Pune

Vidyut Motors Pvt. Ltd

· Surat - Volkswagen Surat Navjivan Auto Square Pvt. Ltd

Various positions of Volkswagen Dealers in India:

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INTRODUCTION TO VOLKSWAGEN VISAKHAPATNAM ATR CARS PVT

LTD

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Volkswagen Dealers in Visakhapatnam - Location, Contact Info of

Volkswagen Visakhapatnam Dealer

Volkswagen Car Dealers in Visakhapatnam.

Given below is the contact details, email and telephone number of

Volkswagen Visakhapatnam dealer. For all your queries relating to

Volkswagen Visakhapatnam service and Volkswagen Visakhapatnam price,

you may contact the Volkswagen Visakhapatnam dealer.

Number of Volkswagen Dealers in Visakhapatnam : 1

Number of Volkswagen Dealers in Andhra Pradesh : 4

 

Volkswagen Dealers in Visakhapatnam

Volkswagen Visakhapatnam Address :

Survey No 62/1 & 65/1c,, Mindi Village, Opp Bhpv, Beside Chowhan Exports,

Gajuwaka, Visakhapatnam - 530012

 

Phone : 0891-2511000, 99668-30001

 Email :

Info@Vw-Atrcars.co.in

Mission:

The strategic intent is to be the premier partner in the Indian automotive

market, providing

products and service that exceed the current standards.

Strategy:

A long-term strategy is being the leading benchmark company in the Indian

automotive

market by constant investments in our people and facilities.

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Quality Policy:

Prestige Motors are fully committed towards total customer satisfaction. We

believe in

continual professional improvement. Hence we keep updating our systems

and facilities to

offer the very best for:

· Total Commitment to customer satisfaction.

· Focus on employee’s involvement and improve retention.

· Work professionally and honestly.

Motors Sales:

· Highly qualified Sales Team is ready to advise customers on any specific

want and

need that would require and will assist in making the right choices.

Volkswagen to launch new Jetta variant mid-2011:

German automobile maker Volkswagen will launch new car model in India

sometime in mid-2011 once it completes deliveries on its order book.

• Volkswagen launches Passat's next generation model

• Volkswagen granted non-banking finance licence

• Volkswagen eyeing 20 percent market share by 2018

• Volkswagen given top marks by US highway safety institute

• Volkswagen buys major European car seller from Porsche

• Volkswagen India signs MoU with Rayat Bahra group

• Volkswagen to increase market share to 20 per cent by 2018

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• Patel slides off in the wet Volkswagen Scirocco R-Cup

The product line of Volkswagen :

Polo Eos

Vento Fox

Jetta Caddy

Beetle Golf

Passat Sharan

Passatcc Tiguen

Golf Multivan

GtiScirrico

TouregPhaeton

AUDI:

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CHAPTER 4

THEORITICAL FRAMEWORK OF MARKETING STRATEGY

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Marketing is the process by which companies determine what products or

services may be of interest to customers, and the strategy to use in sales,

communications and business development. It generates the strategy that

underlies sales techniques, business communication, and business

developments. It is an integrated process through which companies build

strong customer relationships and create value for their customers and for

themselves.

Marketing is used to identify the customer, satisfy the customer, and keep

the customer. With the customer as the focus of its activities, it can be

concludedthat marketing management is one of the major components of

business management. Marketing evolved to meet the stasis in developing

new markets caused by mature markets and overcapacities in the last 2-3

centuries. The adoption of marketing strategies requires businesses to shift

their focus from production to the perceived needs and wants of their

customers as the means of staying profitable

The term marketing concept holds that achieving organ izational goals

depends on knowing the needs and wants of target marketsand delivering

the desired satisfactions. It proposes that in order to satisfy its consumers

and satisfy these more effectively than competitors. organizational

objectives, an organization should anticipate the needs and wants of

THE 4 P’s OF MARKETING:

Marketing decisions generally fall into the following four controllable

categories:

Product

Price

Place (distribution)

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Promotion

The term "marketing mix" became popularized after Neil H. Borden

published his 1964 article, The Concept of the Marketing Mix. Borden began

using the term in his teaching in the late 1940's after James Culliton had

described the marketing manager as a "mixer of ingredients". The

ingredients in Borden's marketing mix included product planning, pricing,

branding, distribution channels, personal selling, advertising, promotions,

packaging, display, servicing, physical handling, and fact finding and

analysis. E. Jerome McCarthy later grouped these ingredients into the four

categories that today are known as the 4 P's of marketing, depicted below:

These four P's are the parameters that the marketing manager can control,

subject to the internal and external constraints of the marketing

environment. The goal is to make decisions that center the four P's on the

customers in the target market in order to create perceived value and

generate a positive response.

Product Decisions

The term "product" refers to tangible, physical products as well as services.

Here are some examples of the product decisions to be made:

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Brand name

Functionality

Styling

Quality

Safety

Packaging

Repairs and Support

Warranty

Price Decisions

Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc.)

Suggested retail price

Volume discounts and wholesale pricing

Cash and early payment discounts

Seasonal pricing

Bundling

Price flexibility

Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of

distribution decisions include:

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Distribution channels

Market coverage (inclusive, selective, or exclusive distribution)

Specific channel members

Inventory management

Warehousing

Distribution centers

Order processing

Transportation

Reverse logistics

Promotion Decisions

In the context of the marketing mix, promotion represents the various

aspects of marketing communication, that is, the communication of

information about the product with the goal of generating a positive

customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.)

Advertising

Personal selling & sales force

Sales promotions

Public relations & publicity

Marketing communications budget

Marketing Strategy:

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Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to increase

sales and achieve a sustainable competitive advantage.

Marketing strategies serve as the fundamental underpinning of marketing

plans designed to fill market needs and reach marketing objectives. Plans

and objectives are generally tested for measurable results. Commonly,

marketing strategies are developed as multi-year plans, with a tactical plan

detailing specific actions to be accomplished in the current year. Time

horizons covered by the marketing plan vary by company, by industry, and

by nation, however, time horizons are becoming shorter as the speed of

change in the environment increases. Marketing strategies are dynamic and

interactive. They are partially planned and partially unplanned.

Marketing strategy involves careful scanning of the internal and external

environments which are summarized in a SWOT analysis. Internal

environmental factors include the marketing mix, plus performance analysis

and strategic constraints. External environmental factors include customer

analysis, competitor analysis, target market analysis, as well as evaluation of

any elements of the technological, economic, cultural or political/legal

environment likely to impact success. A key component of marketing

strategy is often to keep marketing in line with a company's overarching

mission statement.Besides SWOT analysis, portfolio analyses such as the

GE/McKinsey matrix or COPE analysis can be performed to determine the

strategic focus.

Once a thorough environmental scan is complete, a strategic plan can be

constructed to identify business alternatives, establish challenging goals,

determine the optimal marketing mix to attain these goals, and detail

implementation. A final step in developing a marketing strategy is to create

a plan to monitor progress and a set of contingencies if problems arise in the

implementation of the plan.

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Marketing strategies may differ depending on the unique situation of the

individual business. However there are a number of ways of categorizing

some generic strategies. A brief description of the most common

categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry.

Typically there are four types of market dominance strategies:

o Leader

o Challenger

o Follower

o Nicher

Porter generic strategies - strategy on the dimensions of strategic

scope and strategic strength. Strategic scope refers to the market

penetration while strategic strength refers to the firm’s sustainable

competitive advantage. The generic strategy framework (porter 1984)

comprises two alternatives each with two alternative scopes. These are

Differentiation and low-cost leadership each with a dimension of Focus-

broad or narrow.

o Product differentiation (broad)

o Cost leadership (broad)

o Market segmentation (narrow)

Innovation strategies - This deals with the firm's rate of the new

product development and business model innovation. It asks whether

the company is on the cutting edge of technology and business

innovati

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There are three types:

o Pioneers

o Close followers

o Late followers

Growth strategies - In this scheme we ask the question, “How should

the firm grow?”. There are a number of different ways of answering

that question, but the most common gives four answers:

o Horizontal integration

o Vertical integration

o Diversification

o Intensification

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Types of marketing strategies:

The types of marketing strategies available to you as a business owner today

are unlimited. Still, marketing itself is hardly a new concept - people and

businesses have been engaged in marketing for centuries.

But with the passing of time, the best marketers recognize and accept the

fact that marketing is as much psychology as it is technique. Combining

these two elements effectively can yield your business fantastic marketing

results.

Generally speaking, there are three broad types of marketing strategies:

1. Offline (or traditional forms of) marketing

2. Online marketing (with the arrival and development of the internet)

3. Word-of-Mouth marketing (which is the oldest and arguably the most

effective still today)

Offline Marketing:

The term offline market is a term that acknowledges the fact that the

Internet has radically altered the way the world relates and communicates.

Offline marketing refers to those types of marketing strategies which have

long been accepted because of their proven and consistent results.

Offline marketing can be split into three categories:

Print - like newspapers, magazines, yellow pages, ads, flyers, coupons,

etc.

Television and radio

Word of mouth (which is important enough to talk about separately)

36

Other examples of offline marketing include billboards, posters, newspapers

and mailers. Also common are the more direct methods of press releases

and conferences, and seminars. Product samples and demos are yet another

way to promote a brand.

Offline marketing can be cheap or expensive, but if done correctly, is still

highly effective. In fact, despite the introduction of the internet as a powerful

marketing tool, offline marketing still prevails as the main form of advertising

for many large organizations.

In many ways, offline marketing can target audiences based on behaviors

and usage. For example, TV advertising can target channels watched, times

of day or even certain days in a month. Radio ads can be targeted similarly.

Newspapers also have the ability to target certain types of readers by

selecting a certain newspaper or even a section of a newspaper based on

who reads it. Flyers and mailers can be distributed by postal area

Online Marketing:

The Internet has revolutionized the way we work, live and also spend

money! Today, the Internet is a goldmine for businesses because of the

ability to reach and service customers globally while reducing operating

costs significantly. Online marketing offers businesses opportunities which

would be insanely expensive in the offline world - at a fraction of the cost.

Imagine wanting to broadcast an advertisement globally on TV for a new

product - how much would that cost you?

With the Internet, you can accomplish that same goal at a relatively low cost.

Still, much of what is done online in terms of marketing and sales mimics the

offline world of marketing. Online, howeveryou have the ability to target your

audience more finely - and more quickly. ,

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There are several types of marketing strategies online. Examples include...

Performance marketing - marketing by ad placement based on

search engine queries, where the advertiser only pays for advertising

when someone clicks on the ad. Google has become the leader in

performance/search marketing - because of its powerful search engine

and data resources.

Banner marketing - once the main form of online marketing during

the tech bubble, has lost favor to performance marketing. The once

high cost of banner placements did not necessarily translate into sales

conversions. Banners are now for the most part, considered as

supplemental advertising, except when the banner is itself a form of

contextual or performance marketing.

Email marketing and press releases - considered by many today to

be the "king" of marketing online. You can commonly hear marketers

say stuff like "the money is in the list" when referring to email

marketing. Beware though that there are acceptable and unacceptable

forms of email marketing. Be careful not to become a SPAM artist!

Social Networking and Social Bookmarking - This type of

marketing has quickly gained favor with the explosion of social

networks like MySpace, Twitter and Facebook. They are such powerful

promotional tools that not only businesses are tapping into them - so

are politicians, musicians and celebrities. It's phenomenal how quickly

you can get the word out about something and have it travel the world

within minutes.

Affiliate Marketing - a bit slower to develop than other types of

marketing strategies online, affiliate marketing has now become a

multi-billion dollar industry. The concept of affiliate marketing is to let

website owners promote your products or services and give them a

commission for every sale or lead they generate for you. It's a very

38

efficient form of marketing because the cost to set up and implement

is relatively low, and you let the "real" experts promote your brand for

you - on a performance basis.

Word of Mouth Marketing

By far the most powerful form of marketing is and will always be word of

mouth. People trust their friends and family and other users more than they

trust banners or ads. The power of word of mouth should not be

underestimated.

Word of mouth advertising transcends beyond all other forms of marketing

because it can fit into any one of them. Take for example, the logo on a can

of Coke. Someone drinks a Coke and leaves the can on the table. That in

itself is powerful marketing. Even though there technically was no word of

mouth, the mere fact someone drank a Coke and left the can behind for

someone else to see it ... get my drift?

Same thing with online marketing strategies like affiliate marketing - which is

essentially word of mouth. Someone recommends a product or service on

their website and the word gets out.

Multilevel Marketing (MLM) is entirely based on word of mouth advertising -

the idea that one user introduces other users to try and use a product, in the

hopes of converting some of those users into promoters as well - is a

powerful one.

Marketing isn't just about creating awareness...

39

...it's also about creating loyalty. By creating a consistent presence in the

mind of target users, businesses also create a sense of permanence and thus

encourage users to become loyal to a brand.

Successful businesses don't just market to introduce new products or

capture new users. They also market after-sales to upgrade or up-sell

existing users.

Some types of marketing strategies are known as loss-leaders. This basically

means he marketing efforts are done at a loss rather than profit - in order to

first build up awareness and build up a user base. Once you have that user

base, you can up-sell them to more expensive products or full-scale services.

For example, you may have received a free one month subscription for a

newspaper. Once you've become used to getting and reading the paper, you

may then sign up for a one year paid subscription. Similarly, you might have

downloaded a trial version of software, which after the trial period, you didn't

want to stop using. The free trial period was enough of an offer to get you on

board as a paid user.

If conducted properly, loss leader marketing can become profitable in the

longer term and should be considered as one of the types of marketing

strategies if it suits your product or service.

Depending on your business model and business plan - you will want to

explore which of these types of marketing strategies best fit into your sales

and marketing plan.

40

CHAPTER 5

ANALYSIS & INTERPRETATION

41

ANALYSIS:

ANALYSIS HAS BEEN DONE BY TWO METHODS

1. GRAPHICAL METHOD

2. PERCENTAGE METHOD

Location of industries

42

1. Most of the industry of Volkswagen is concentrated around?

Location Ind.

Area

Focal

point

Sunder Nagar

No. of

respondents

140 90 20

Percentage 56% 36% 8%

Interpretation

From this analysis it came to know that most of the industry of Volkswagen is

concentrated around focal point area (36%) and industrial area (56%) and

the then sunder nagar (8%).

2.Type of manufacturing industry

In vizag what types of business are playing the major role?

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Total no. of respondents-250

Type of

Manfg.

Industry

Cycle

Parts

Auto parts Hosiery &

dyeing

Forging Others

No. of

industries

80 50 45 30 45

Percentage 32% 20% 18% 12% 18%

Interpretation

From this analysis it came to know that in Vizag the 32% industry is cycle

industry and then followed by Auto parts industry (20%), Hosiery(18%) and

rest

by others industries.

3.Percentage of various car companies

Other than the Volkswagen , the domestic car market is owned by?

44

Total no. of respondents-250

Preferred

Brand

Maruti Hyundai Honda Tata Toyota Others

No. of

cars

97 35 38 30 20 30

Percenta

ge

39% 14% 15% 12% 8% 12%

Interpretation

From this analysis it came to know that 39% of the domestic car market is

owned

by maruti and then followed by Honda(15%) , Hyundai(14%), Tata(12%),

Toyota(8%) and others(12%).

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4.Price wise Distribution of cars

In Volkswagen which Price wise Distribution of cars would you prefer?

Total no. of respondents-250

Price range

of

Cars

3-7lakhs 7-12lakhs 12-20lakhs 20-30lakhs 30+lakhs

No. of cars 120 95 20 5 7

Percentage 48% 38% 9% 2% 3%

Interpretation

From this analysis it came to know that the cars with range 3-7lakhs holds

48% of

the market while the cars with range 7-12lakhs holds 38% of the market and

rest of

46

the market is holed by other range of cars. Which means most of the market

is hold

by 3-7lakhs and 7-12lakhs cars.

5.Mode of Purchase

What Mode of Purchase would you like for purchasing a car?

Total no. of respondents-250

Mode of Purchase Cash Finance

No. of respondents 58 192

Percentage 23% 77%

Interpretation

From this analysis it came to know 77% of customer prefers to purchase cars

on

47

finance due to various reasons. And this ratio also show the purchasing

power of the customer.

6.Preferred Bank for Finance

Total no. of respondents-250

Which Bank Would you Prefer for Finance?

Preferred

Bank

ICICI HDFC Nationalized Any other

No. of

respondents

77 48 73 52

Percentage 31% 19% 29% 21%

Interpretation

From this analysis it came to know 31% of people prefer ICICI bank, 29% of

people Nationalized bank, 19% of people prefer HDFC bank and 21% of

people

48

prefer others bank for financing the cars. Hence ICICI is the prior option

chosen by

the customers to finance their cars.

7. In Volkswagen which type of vehicle would you like?

Total No. of respondents-250

Type of

vehicle

polo Vento passat New beetle

No.of

respondents

90 54 81 25

No.of

percentage

36% 21% 32% 10%

Interpretation:

From this analysis it came to know 36% of people prefer polo car, 21% of

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people vento, 32% of people prefer passat and 10% of people

prefer onew beetle cars. Hence polo is the prior option chosen by

the customers.

8: If Volkswagen is going to reposition its cars in an attempt to compete

against others, then VW must improve its

(a)Quality (b)Outlook (c)Interior (d)Safety (e)All of these.

Total No. of respondents-250

Quality Outlook Interior Safety All

No.of

respondent

s

24 15 55 71 85

No.of

percentage

10 6 22 28 34

Interpretation:

50

From this analysis it came to know 10% of people given vw must improve

Quality, 6% of People out look,22% of people interior,28% of safety and 34%

of people

People suggested that vw can improve above all .

9:Does the Volkswagen brand cars are popularized for their look or safety?

(a) Look (b) Safety.

Total No. of respondents-250

look safety

No. of respondents 170 80

percentage 68% 32%

51

Interpretation:

From this analysis it came to know 68% of people given vw brand cars

popularized for their look and 32% of People like these cars for their safety.

10. Does the hatchback model in this company competes with other

company models of

this class?

(a)Yes (b)No.

Total No. of respondents-250

Yes No

No. of respondents 160 90

percentage 64% 36%

Interpretation:

52

From this analysis it came to know 64% of people given hatchbach model of

Volkswagen company competes with other company models of in this class

and 32% of People doesn’t agree with the statement.

11:Is the 60:40 split rear seat present in all other companies of its class?

(a)Yes (b)No.

Total No. of respondents-250

Yes No

No. of respondents 85 165

percentage 34% 66%

Interpretation:

53

From this analysis it came to know 66% of people given 60:40 split rear seat

of Volkswagen company doesn’t present in all other models of in this class

and 34% of People doesn’t agree with the statement

12.Does any other company offers similar features as for price , as

Volkswagen is offering?

(a)Yes (b)No.

Total No. of respondents-250

Yes No

No. of respondents 96 154

percentage 38% 62%

Interpretation:

54

From this analysis it came to know 62% of people given that no other

company offers similar features as for price, as Volkswagen offering and 38%

of people agree with the statement

13:Deos the marketing strategy being followed by Volkswagen is effectively

used in other local automobile companies?

(a)Yes (b)No.

Total No. of respondents-250

Yes No

No. of respondents 173 77

percentage 69% 31%

Interpretation:

From this analysis it came to know 69%of people given that the marketing

strategy being followed by Volkswagen is effectively used in other local

automobile companies and 31% of people doesn’t agree with others.

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14.Volkswagen which type of vehicle would you prefer according to their

features?

(a)Trend line (b)Comfort line (c)High line.

No.of respondents:250

Trend line Comfort line Highline

No. of

respondents

65 93 92

Percentage 26% 37% 37%

Interpretation:

From this analysis it came to know 26% of people prefer trend line of

Volkswagen according their features and 37% of people equally preferred

comfort line and high line.

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Questionnaire for Employees:

15. Whois your target group based on economic status

a)High level b)middle level c)Above middle level d) low level

Particulars No. ofRespondents Percentage(%)

High level 17 34

Above middle level 13 26

Middle level 7 14

Low level 3 6

Total 50 100

Interpretation:The above analysis show that out of 50 respondents 34% of

people were responded to High level, 26% of people were responded to

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Above middle level, 14% were responded for its Middle level and rest of 6%

members were responded for Low level.

16.Which marketing strategy mostly followed by Volkswagen?

a)Offline marketing b)On line marketing c)Word of mouth

Particulars No.of Respondents Percentage(%)

Offline marketing 125 50

Online marketing 50 20

Word of mouth 75 30

Total 250 100

Interpretation:

The above analysis show that out of 250 respondents 50% of people were

responded for off line marketingstrategy, 20% of people were for responded

58

On line marketing Strategy, 30% of people were responded forWord of

mouth

17.What are the various promotional techniques of Volkswagen that are attracting customers?

a) Advertisements b) Demos c) Posters

d)Others

Particulars No.ofRespondents Percentage(%)

Advertisements 17 34

Demos 22 44

Posters 8 16

others 3 6

Total 50 100

Interpretation:

The above analysis show that out of 50 respondents 34% of people were

attracted toAdvertisements, 44% of people were attracted to Demos, 16%

59

of people were attracted to its print media like posters and the 6% people

were attracted to promotional techniques 3 got attracted.

18.What are the safety features consists by the Volkswagen?

a)Air bags b)central locking c)Pinchguards d)navigators e)All the above

Particulars No.ofRespondents Percentage(%)

Airbags 0 0

C entral locking 0 0

Pinch guards 0 0

navigators 0 0

All the above 50 100

Total 50 100

Interpretation:The above analysis show that out of 50

60

respondents,100% of people said that the Volkswagen consitsts all the

safety features which are mentioned in the options.

19 .What is the sellingprocess yourCars?

a)Direct personal sale b)Direct onlinesal c)Indirect though channels

d)Show room sales e)Telemarketing

Particulars No.of Respondents Percentage(%)

Direct personal selling 23 46

Direct online sale 5 10

Indirect through channels

6 12

Show room sales 11 22

Tele marketing 5 10

Total 50 100

Interpretation:The above analysis show that out of 50 respondents 46% of

people were responded to Direct personal selling, 10% of people were

responded to Direct online selling, 12% of people were responded to its

61

Indirect through channels 22% members were responded for Show room

sales and rest of people were responded for telemarketing.

CHAPTER 6

6.1. FINDINGS

6.2. SUGGETIONS

6.3. SUMMERY

6.4.CONCLUSION

62

6.1. FINDINGS

1. Volkswagen is one of the oldest and popular automobile company in

the world.Most of the people does not purchase the volkswagen cars.

2. Volkswagen gives importance to safety than looks. That is the reason,

all its models consists more of safety features than of rest

comparatively.

3. The price of the car is little bit higher than the ordinary ones as it is an

international brand.

4. Volkswagen is offering up highly advanced technology in its class

segment, which are being offered by companies like BMW and

Mercedes Benz.

5. There is a centralized governing structure implemented in Volkswagen,

so that the results would be more effective and efficient.

6. Marketing strategies serve as the fundamental underpinning of

marketing plans designed to fill market needs and reach marketing

objectives.

7. . From my viewpoint, VW has lost it’s competitive advantage as a

european automaker and has tried to shift to a mainstream competitor.

Perhaps, as you noted, in order to gain more market share in the US.

Their CC was poorly reviewed and accepted and the $100,000 W12 did

not fit in with any strategy former or latter. Am a current supporter of

German engineering. Their shift to the mainstream may prove to be

the source of future competitive disadvantage by not providing a

heterogeneous product at an affordable price.

8. If VW is going to reposition its cars in an attempt to compete against

Toyota, then VW must improve its quality. Their initial quality ratings

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are favorable for a European nameplate but they do not rival Honda’s,

Hyundai’s, and Toyota’s.

9. The decision to build cars in America represents another questionable

decision. The quality of the last American produced VW was really bad.

Has VW learned anything from its previous foray into American-based

production? Can VW learn to build a quality car that exceeds Honda’s,

Hyundai’s and Toyota’s?

SUGGETIONS

Volkswagen should increase their service stations.

Facilities regarding after sales services should be increase.

People were not aware about VW brand, there should be more brand

awareness in the market.

The distributor in Visakhapatnam is located in Gajuwaka. It would be

better if it is located in other high class area.

They should increase advertisement activities.

They should promote more road shows in the respective areas.

The company should promote about the entire feature offered by it.

64

Introduce Percentage on each car sale so that sales executives will be

more focused on customer conversion.

The servicing costs and the costs of spares should be decreased if not

that might be one of the reason for reduction of sales

SUMMERY

Volkswagen's Marketing Strategy in   India:

The case examines the marketing strategies of Volkswagen Group India, the

Indian subsidiary of German automobile manufacturer, Volkswagen AG

(Volkswagen). Volkswagen entered the Indian passenger car market in 2001

by launching its car brand - Skoda. In 2007, two of its other brands Audi and

Volkswagen, were also launched inIndia. Volkswagen Group India

emphasized on all aspects of marketing mix including product, price, place

and promotion. The company offered three brands including Audi, Skoda and

Volkswagen that together comprised of 15 different models as of late 2009.

Volkswagen Group India mainly catered to the luxury segment of the Indian

car market. The company had established presence in India through

separate distribution channels for each of its brands.In its initial years,

Volkswagen Group India primarily used the print media to promote its

products. However, considering the growth potential ofIndia's automobile

market, the company started using electronic, digital and out of home media

along with print media. In November 2009, the company launched an

integrated marketing campaign to strengthen its brand image. The case

describes the marketing campaign and ends with a discussion on the growth

prospects of the company in future.

65

ISSUES:

» Understand the dynamics of the Indian passenger car market.

» Examine the growth strategies of Volkswagen Group India over the years.

» Analyze the marketing strategies of Volkswagen Group Indi

» Study the future prospects of Volkswagen Group India.

.CONCLUSION

The above study shows that volkswagen industry is manufacturing industry

and most of the industry resides in focal point and industrial area. In

manufacturing industry cycle industry, auto parts industry and hosiery

industry are major industries. And among car companies maruti holds the

major part of the market followed by Hyundai, Honda, Tata and then other

companies. And most number of cars hold by customers are in the range 3-

7lakhs (35%) and then 7-12lakhs

range. Most of the customers (77%) prefer to purchase cars on finance. Most

customers change their cars after 3-4 year interval.

As this result may not be suitable to all the regions of the country because of

the culture, standard of living and volume of the market. The research

concludes that Volkswagen have great opportunity to penetrate in the

market.

66

ANNEXTURE

67

QUESTIONNAIRE FOR THE MARKETING STRATEGIES

Name:

Age :

Occupation:

1: Most of the industry of Volkswagen is concentrated around

(a)Focal point (b)Industrial area (c) Other place.

2. In vizag what types of business are playing the major role?

a)cycle parts b)Auto parts c)Hosiery&dyeing d)Fording e) Others

3:Other than the Volkswagen , the domestic car market is owned by

(a)Maruti (b) Honda (c) Hyundai (d)Tata (e)Toyota (f) Others.

4:In Volkswagen which Price wise Distribution of cars would you prefer?

(a)3-7lakhs (b)7-12lakhs (c) 12-20lakhs (d)20-30lakhs

(f)30+lakhs.

5: What Mode of Purchase would you like for purchasing a car?

(a)Cash (b)Finance (c)Other.

68

6: Which Bank Would you Prefer for Finance?

(a)ICICI (b)HDFC (c) Nationalized (d)Any other.

7:In Volkswagen which type of vehicle would you like?

(a)Polo (b)Vento (c)Passat (d)New beetle.

8: If Volkswagen is going to reposition its cars in an attempt to compete

against others, then VW must improve its

(a)Quality (b)Outlook (c)Interior (d)Safety (e)All of these.

9: Does the Volkswagen brand cars are popularized for their look or safety?

(a) Look (b) Safety

10: Does the hatchback model in this company competes with other

company models of this class?

(a)Yes (b)No.

11.Is the 60:40 split rear seat present in all other companies of its class?

(a)Yes (b)No.

12..Does any other company offers similar features as for price , as

Volkswagen is offering?

(a)Yes (b)No.

13.Does the marketing strategy being followed by Volkswagen is effectively

used in other local automobile companies?

69

(a)Yes (b)No.

14.In Volkswagen which type of vehicle would you prefer according to their

features?

(a)Trend line (b)Comfort line (c)High line.

Questionnaire for Employees:

15. Whois your target group based on economic status

a)High level b)middle level c)Above middle level d) low level

16.Which marketing strategy mostly followed by Volkswagen?

a)Offline marketing b)On line marketing c)Word of

mouth

17.What are the various promotional techniques of Volkswagen that are

attracting customers?

a) Advertisements b) Demos c) Posters

d)Others

18.What are the safety features consists by the Volkswagen?

a)Air bags b)central locking

c)Pinchguards

d)navigators e)All the above

19 .What is the selling process your Cars?

70

a)Direct personal sale b)Direct onlinesale c)Indirect though

channels

d)Show room sales e)Telemarketing

BIBLIOGRAPHY

71

BOOKS REFERRED :

Internal records of the VOLKSWAGEN.

Research methodology – C.R. kothari.

Marketing management: Philip Kottler

Marketing management: Ramaswamy & Ramakumari

Principles and application: D.D. Sharma

WEBSITES:-

http:// www.volkswagen.co.in

http:// www. Info@Vw-Atrcars.co.in

http:// www.automobile.com\

http:// www.google.com

Magazines

Autocar

OverDrive

Staff of ATR CARS PVT.LTD

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Data provided here is not absolute….its only for

reference

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