Volkswagen's Marketing Strategy in India

Abstract:

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 in India. 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 of India'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.

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 India.

» Study the future prospects of Volkswagen Group India.

Contents:

	Page No.
Introduction	1
About Volkswagen	2
Marketing Strategy in India	3
Promotion	5
The Road Ahead	9
Exhibits	11

Keywords:

Volkswagen Group India, Volkswagen India Private Limited, Indian Passenger Car Industry, Marketing Mix, Brand Awareness, Beetle, Skoda, Audi, Product Positioning, Promotional Campaigns, Volkswagen Group Sales India Private Limited, Skoda Auto India Private Limited, Pricing, Print Ad Campaign, Television Commercials, Corporate Branding Strategy, Integrated Marketing Campaign, Roadblock, Iconic Brand Campaigns, Out Of the Home Campaign, Curves are Back

Introduction Contd...

Raj Sawant, Business Head of Automark Motors, a Volkswagen dealer in Ahmedabad, Gujarat, India, said, "There are already over 170 advance bookings across India, and we have started delivering the cars as well. Going by the initial euphoria, we expect to sell around 300 Beetles in 2010."3  Volkswagen Group India, the Indian subsidiary of leading automobile manufacturer, Volkswagen AG (Volkswagen), based in Wolfsburg, Germany, had 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 in India.

Over the years, Volkswagen Group India not only launched several products, but also ensured that its brands were well known among the Indian consumers. Although, the company had had a presence in the Indian car market since 2001 and the Skoda and Audi branded cars were well known among consumers, the Volkswagen brand was not well recognized in the country.

Therefore, in November 2009, the company launched an integrated marketing campaign to build its brand image. It also launched a marketing campaign for its iconic model, the Beetle. Volkswagen India expected that with its brand building exercise, it would be able to increase its sales and capture a significant market share in the Indian car market...

                         

  Kraft Foods' Mobile Marketing Strategy

Abstract:

This case is about US-based Consumer Packaged Goods (CPG) Company Kraft Foods' (Kraft) mobile marketing strategy. Due to a reduction in consumer spending on packaged goods, Kraft decided to tap the mobile channel to promote its products as this channel had the capacity to enable value-added marketing. The company's mobile marketing campaigns were designed to meet the needs of customers and to help them integrate the company's brands into their everyday lives. The case discusses the mobile marketing campaigns launched by Kraft Foods and their objectives. In 2008, Kraft launched a mobile campaign in Germany to promote the launch of its new instant coffee brand called Jacobs 2in1.

It was the first large-scale European product launch which used a mobile sampling campaign to enhance brand awareness. The campaign was integrated with traditional media and allowed customers to request samples and order products from their mobile phones. This was followed by the launch of a mobile cooking application for iPhone users called the iFood Assistant in December 2008. The application allowed customers to search for and download recipes, manage their shopping lists, and locate local stores thereby delivering value to the customer while at the same time promoting the company's products. The case also talks about the mobile website created by Kraft to facilitate consumer engagement on mobile devices, and how Kraft was taking its mobile marketing initiative further in countries such as Germany and the UK.

The case discusses whether the campaigns were successful in enhancing brand awareness and consumer involvement. It concludes by providing the reactions of analysts to Kraft Foods' mobile marketing campaigns. Analysts were of the view that the mobile marketing initiatives adopted by Kraft would serve the purpose of establishing a direct dialogue with customers as the mobile phone was a powerful communications device with respect to mobility, reach, and immediacy. Marketers should take advantage of the mobile medium and adopt it as part of their channel mix to gain a competitive edge, they said.

Issues:

» Study the mobile marketing strategy of Kraft Foods
» Understand the issues and challenges in creating and rolling out a mobile advertising campaign.
» Analyze the mobile marketing campaigns launched by Kraft Foods.
» Discuss and debate whether the mobile marketing campaigns of Kraft Foods would be able to achieve their objectives.
» Explore ways in which the company could make its mobile marketing campaigns more effective.

Introduction Contd...

Based in Northfield, Illinois, Kraft is the largest food company in North America with sales in more than 150 countries worldwide.  Some of its well-known brands are Kraft cheeses and dressings, Maxwell House coffees, Oscar Mayer meats, Philadelphia cream cheeses, Nabisco cookies and crackers, Toblerone and Milka chocolates, and Tang powdered beverages.  For the year 2008, the company reported US$ 42 billion in annual revenues. Since the early 2000s, marketing through mobile phones had gained in popularity because of the value it delivered to the end consumers.

CPG companies embraced mobile marketing and employed elements such as SMS alerts, mobile banner ads on targeted sites, mobile coupons, and mobile loyalty programs to promote their products. 

At Kraft, the strategy was to demonstrate the values and attributes of Kraft's brands in an interactive way and provide consumers with relevant information such as recipes and nutrition information. The motive behind mobile marketing was to involve consumers and help them integrate the company's brands into their everyday lives.

In 2008, to respond to a reduction in consumer spending on packaged goods, Kraft adopted interactive marketing and decided to get onto the mobile Web by launching a mobile campaign in Germany in January 2008, to promote the launch of its new instant coffee brand called Jacobs 2in1. This was the first large-scale European product launch to use a mobile sampling campaign. The campaign was integrated with traditional media and allowed customers to request for samples and order products through their mobile phones...

Scorpio - Marketing an Automobile Brand

Abstract:

The case examines the marketing strategies adopted by Mahindra & Mahindra (M&M), leading Indian automobile manufacturer, for its newly launched sports utility vehicle 'Scorpio' in the early 21st century. It traces M&M's evolution from being just another Mahindra Group company into a major Indian business conglomerate. The reasons for the decision to develop the Scorpio are explained and details on the efforts that went into the creation of the vehicle are provided. Thereafter, the case discusses the marketing strategies (positioning, advertising, pricing and promotion) adopted by M&M for Scorpio. The case not only examines M&M's strategies for popularizing Scorpio, it also explores the increasing competition in the Indian SUV market.

Issues:

• Understand how changing market dynamics can force an industry leader to restructure its strategies (in terms of modifying the product mix and entering new segments)

Scorpio - Charging Ahead

In June 2003, 'Scorpio,' a sports utility vehicle (SUV3) from Mahindra and Mahindra Ltd. (M&M), a leading Indian automobile company, celebrated the first anniversary of its launch. This one year journey had been quite fruitful for Scorpio, which had impressed many industry observers and customers. A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000 customers to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order bookings. According to company sources, by the time it completed its first birthday, Scorpio had sold 15,000 units across India.

Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely positive reports. With demand for the vehicle growing steadily, M&M even had to increase its production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and 2,500 per month by late 2003.

Thanks to the high decibel advertising support, Scorpio had acquired high brand recall among consumers. In fact, it was said to be one of the very few automobile brands in India that successfully boosted the image of their parent companies (in this case M&M) as well. Since its launch, Scorpio had won many prestigious awards, such as 'Car of the Year 2003' from Business Standard Motoring, BBC World Wheels and CNBC Autocar. Besides improving M&M's image as an automobile company, Scorpio was reported to have played a major part in increasing the company's revenues for the financial year 2002-03.

The company's automotive segment witnessed a 37% increase in revenues, up from Rs 18.28 billion in 2001-2002 to Rs 25.11 billion in 2002-2003.

Also, M&M's automobile sales increased by 16% in 2002-2003 (68,852 units) over the previous year's sales (55,920 units).

The most important aspect of Scorpio's growing popularity was the impact it seemed to be having on the country's automobile market.

Scorpio had made other automotive manufacturers look afresh at the utility vehicles segment, which till now was believed to have little scope for growth in India.

Business Strategy Matrix

Description of the Model The General Electric Company, with the aid of the Boston Consulting Group and McKinsey and Company, pioneered the nine cell strategic business screen illustrated here. The circle on the matrix represents your enterprise. Both axes are divided into three segments, yielding nine cells. The nine cells are grouped into three zones: The Green Zone consists of the three cells in the upper left corner. If your enterprise falls in this zone you are in a favorable position with relatively attractive growth opportunities. This indicates a "green light" to invest in this product/service. The Yellow Zone consists of the three diagonal cells from the lower left to the upper right. A position in the yellow zone is viewed as having medium attractiveness. Management must therefore exercise caution when making additional investments in this product/service. The suggested strategy is to seek to maintain share rather than growing or reducing share. The Red Zone consists of the three cells in the lower right corner. A position in the red zone is not attractive. The suggested strategy is that management should begin to make plans to exit the industry.

Characterize Your Enterprise The vertical axis represents the industry attractiveness. The expert system will position your enterprise on the chart based upon your description of: bargaining power of the buyers bargaining power of the suppliers internal rivalry the threat of new entrants the threat of substitutes The horizontal axis represents the firm's competitive strength or ability to compete in the industry. It includes an analysis of: the value and quality of the offering market share staying power experience You can trace through the supporting analysis and its conclusions, adjusting your input until you are satisfied your description accurately characterizes your enterprise.

Analysis of Your Enterprise Position
High Attractiveness Strong Competitive Position The strategy advice for this cell is to invest for growth. Consider the following strategies: provide maximum investment diversify consolidate your position to focus your resources accept moderate near-term profits to build share	High Attractiveness Average Competitive Position The strategy advice for this cell is to invest for growth. Consider the following strategies: build selectively on strength define the implications of challenging for market leadership fill weaknesses to avoid vulnerability	High Attractiveness Weak Competitive Position The strategy advice for this cell is to opportunistically invest for earnings. However, if you can't strengthen your enterprise you should exit the market. Consider the following strategies: ride with the market growth seek niches or specialization seek an opportunity to increase strength through acquisition
Medium Attractiveness Strong Competitive Position The strategy advice for this cell is to selectively invest for growth. Consider the following strategies: invest heavily in selected segments, establish a ceiling for the market share you wish to achieve seek attractive new segments to apply strengths	Medium Attractiveness Average Competitive Position The strategy advice for this cell is to selectively invest for earnings. Consider the following strategies: segment the market to find a more attractive position make contingency plans to protect your vulnerable position	Medium Attractiveness Weak Competitive Position The strategy advice for this cell is to preserve for harvest. Consider the following strategies: act to preserve or boost cash flow as you exit the business seek an opportunistic sale seek a way to increase your strengths
Low Attractiveness Strong Competitive Position The strategy advice for this cell is to selectively invest for earnings. Consider the following strategies: defend strengths shift resources to attractive segments examine ways to revitalize the industry time your exit by monitoring for harvest or divestment timing	Low Attractiveness Average Competitive Position The strategy advice for this cell is to restructure, harvest or divest. Consider the following strategies: make only essential commitments prepare to divest shift resources to a more attractive segment	Low Attractiveness Weak Competitive Position The advice for this cell is to harvest or divest. You should exit the market or prune the product line.

---

---

Ansoff's Matrix - Planning for Growth

This well known marketing tool was first published in the Harvard Business Review (1957) in an article called 'Strategies for Diversification'. It is used by marketers who have objectives for growth. Ansoff's matrix offers strategic choices to achieve the objectives. There are four main categories for selection.

Ansoff's Product/Market Matrix

Market Penetration

Here we market our existing products to our existing customers. This means increasing our revenue by, for example, promoting the product, repositioning the brand, and so on. However, the product is not altered and we do not seek any new customers.

Market Development

Here we market our existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new region, are examples of market development.

Product Development

This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers.

Diversification

This is where we market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that we remain in a market or industry with which we are familiar. For example, a soup manufacturer diversifies into cake manufacture (i.e. the food industry). Unrelated diversification is where we have no previous industry nor market experience. For example a soup manufacturer invests in the rail business.
Ansoff's matrix is one of the most well know frameworks for deciding upon strategies for growth.

---

---

LEARNING DISABILITY

                         Learning Disabilities :-

LEARNING DISABILITY:-

Learning disability is an unexpected & unexplained condition occurring in a child of average or above average intelligence characterized by significant delays in one or more areas of learning.

Children with learning disabilities exhibit a wide range of symptoms. These include problems with reading, mathematics, comprehension, writing, spoken language, or reasoning abilities. Hyperactivity, inattention and perceptual coordination may also be associated with learning disabilities but are not learning disabilities themselves. The primary characteristic of a learning disability is a significant difference between a child's achievement in some areas and his or her overall intelligence.

Among the symptoms commonly related to learning disabilities are:

1.                Any delay in language development

2.                Any speech disorder

3.                Coordination disorders

4.                Attention deficits & hyperactivity

5.                Undetermined hand preference

6.                Carrying out more than one instruction at a time

7.                Poor writing reversals

8.                Remembering sequences

When considering these symptoms, it is important to remain mindful of the following:

• No one will have all these symptoms. 
• The number of symptoms seen in a particular child does not give an indication as to whether the disability is mild or severe. It is important to consider if the behaviors are chronic and appear in clusters.

Areas of learning involve

• Basic academic areas 
Reading , writing, spelling, arithmetic, language expression & comprehension, ability to focus attention, visual perception.

• Non verbal areas 
Persistence, organization, impulse control, social competence, coordination of movements, flexibility.

Specific Learning Disability

1.                Spelling- Dysorthographia

2.                Handwriting- Dysgraphia

3.                Arithmetic-Dyscalculia

4.                Comprehension- Dyssymbolia

5.                Speech- Dysphasia

6.                Reading- Dyslexia

Abnormal brain structure or function causes learning disabilities. These neurological abnormalities in the brain can result from:

• Genetics 
• Factors before Birth or During Delivery 
• Factors in Early Childhood 
• Brain Trauma or Tumors

The specialist will assess the child's strengths and weaknesses by administering tests. Some of the tests are written tests, and some are oral questions. In addition, the specialist will interview the parent about the history and details of the problems that are encountered.

The specialist who can do testing and make a diagnosis can be a:

• Clinical Psychologist 
• School Psychologist 
• Educational Psychologist 
• Neuropsychologist 
• Psychometrist 
• Occupational Therapist 
• Speech and Language Therapist

Early diagnosis of learning disabilities is very important. The earlier you catch the problem, the more available it is for correction. Some types of learning disabilities, if caught early, have very good prognoses.

A learning disability affects a person in all facets of life:

• School/Work 
• Social/ Personal Relationships. 
• Emotions 
• Free time, etc 

Both the person with the learning disability and other people around the individual must adjust to the challenges that the learning disability presents.

The student with learning disabilities often feels like a failure in school when compared to other students in some skill areas. Peers may ridicule the student with learning disabilities. Teachers may misunderstand the reason for the student's poor performance and tell the student to try harder. Siblings may be resentful or jealous of the attention given to the child with the learning disability

In addition, the learning-disabled individual may have social problems in the workplace, school, and home that result from poor self-esteem or from an inability to read social cues and thus show poor social skills and inability to initiate and maintain relationships.

The good news is that with proper help, most LD children can make excellent progress. There are many successful adults such as attorneys, business executives, physicians, teachers, etc. who had learning disabilities but overcame them and became successful.

Some tips for managing learning difficulties in the classroom:

• Seat the child near the teacher, away from the door and windows to minimize distraction. 
• Use simple, brief, single-concept directions. 
• Give instructions in a logical, sequential manner, using words that make the sequence clear (e.g. first, next, finally). 
• Use visual aids or demonstrations to reinforce verbal instructions. 
• When the child fails to understand an instruction, do not merely repeat it. Rephrase and simplify the    instruction. 
• Do not demand that the child write and listen at the same time. 
• Use the strategy of 'over learning' with the child. Insist on recapitulation of previously learnt concepts     before starting a new topic. 
• Use colored chalk to color code questions from answers while writing on the blackboard. 
• Allow the use of a table chart or calculator.

Implementation planning

After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing: Product management, Pricing (at what price slot do you position your product, for e-g low, medium or high price), Place (the place/area where you are going to be selling your products, it could be local, regional, country wide or International) (i.e. sales and distribution channels), and People. Now a new P has been added making it a total of 5P's. The 5th P is Politics which affects marketing in a significant way.

Taken together, the company's implementation choices across the 4(5)Ps are often described as the marketing mix, meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equityamong target customers, and achieves the firm's marketing and financial objectives.

In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, but commonly includes:

• An executive summary
• Situation analysis to summarize facts and insights gained from market research and marketing analysis
• The company's mission statement or long-term strategic vision
• A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives
• The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved
• Implementation choices for each element of the marketing mix (the 4(5)Ps)

Marketing strategy

"The company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a Marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share, long-term profitability, or other goals.

To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as targets because they score highly on two dimensions: 1) The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors; and 2) The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably.^[3] In fact, a commonly cited definition of marketing is simply "meeting needs profitably." 

Marketing Management

Check out this SlideShare Presentation:

Marketing Management

View more presentations from Yodhia Antariksa.

Marketing: 'Marketing is not about providing products or serv...

Marketing: 'Marketing is not about providing products or serv...: "'Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands..."