STRATEGY AT

VOLKSWAGEN GROUP
INDIA

P R ES EN T E D BY :
NIKHIL RASTOGI(4132025)
PARGAT SINGH VIRK(4132013)

Volkswagen Group
Volkswagen 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.

Cont..
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.

Das Auto

Volkswagen Group India

Volkswagen 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.

Cont
It 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
18 states and 2 union territories of 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 Strategy
Global 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 Strategy
SKODA AUTO INDIA
Launched 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.

AUDI INDIA
Audi 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 INDIA
Volkswagen 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.

Cont
To 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.

Functional Strategy
MARKETING STRATEGY OF VW INDIA
China 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.

Emotional

Brand Positioning

Prestige

Rational

Value

Cont
When 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.

Cont
By 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 DISTRIBUTION

Volkswagen India Private Limited currently has more than 70

dealerships in 56 cities across 18 states and 2 union territories of

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.

THANK
YOU..

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YOU