A PROJECT REPORT ON MARKETING STRATEGIES

OF VOLKSWAGEN INDIA, VISAKHAPATNAM

Data provided here is not absolute.its only for

reference

CHAPTER 1
1.1 Introduction
1.2

Need For The Study

1.3

Objectives Of The Study

1.4
1.5

Scope of the study

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. SUGGETIONS
6.3. SUMMARY
6.4 CONCLUSION
ANNEXTURE
Questionnaire
BIBLIOGRAPHY

CHAPTER I

1.1
1.2
1.3
1.4
1.5
1.6

Introduction
Need For The Study
Objectives Of The Study
Scope of the study
Methodology Of The Study
Limitations Of The Study

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 months
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.

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.

1.3. OBJECTIVES OF THE STUDY

5

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.

1.4. SCOPE OF THE STUDY

6

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.

1.5. METHODOLOGY
we collected the data from various sources. They are:

Primary data
Secondary data

Primary data:
7

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

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.
8

 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 companys 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

CHAPTER 2
INDUSTRY PROFILE

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 internalcombustion motor car of America, and it was followed by Henry Fords 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.

10

The year 1957 brought powerful high-performance cars such as MercedesBenz 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 & Mahindras 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
11

vehicle sales at 97.23lakh grew 0.71 percent from 96.54lakh units in 200708.
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 Motors numbers fell 15 per cent to 46,892 units while Ford
Indias 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.
Eithers 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.

12

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
13

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 Porsche

2009
2.37% as of 30 Jan
2009
20.26% as of 16 Feb
2008
17% as of 18. Dec
2009
9.61%

Automobile

Holding
Porsche Holding GmbH

State of Lower Saxony

Emirate of Qatar
widely held

14

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

Golf Plus

Passat CC

Eos

Sharan

Polo

Beetle

Scirocco

Jetta

Touareg

Golf

Passat

Tiguan

Touran

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.
15

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 driversnames 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 firstgeneration Golf, and Sweden's Per Eklund, Frenchman Jean-Luc
Thrier, 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.

16

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 backto-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.

17

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.

18

CHAPTER 3
VOLKSWAGEN COMPANY PROFILE

19

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

20

Hindustan Motors

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 Bangalore -

Elite Motors Pvt.Ltd

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

21

 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:

22

INTRODUCTION TO VOLKSWAGEN VISAKHAPATNAM ATR CARS PVT

LTD

23

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.
24

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 employees 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
25

 Volkswagen to increase market share to 20 per cent by 2018

Patel slides off in the wet Volkswagen Scirocco R-Cup
The product line of Volkswagen :
Polo
Vento
Jetta

Eos
Fox
Caddy

Beetle

Golf

Passat

Sharan

Passatcc

Tiguen

Golf

Multivan

GtiScirrico
TouregPhaeton
AUDI:

26

CHAPTER 4

THEORITICAL FRAMEWORK OF MARKETING STRATEGY

27

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 Ps OF MARKETING:
Marketing decisions generally fall into the following four controllable
categories:

Product

Price

Place (distribution)

28

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:
29

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:

30

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:

31

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

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.
32

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.

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:

Leader

Challenger

Follower

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 firms 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 Focusbroad or narrow.

Product differentiation (broad)

Cost leadership (broad)

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

33

There are three types:

Pioneers

Close followers

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

Vertical integration

Diversification

Intensification

34

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)

35

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. ,
36

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
37

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...

38

...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.

39

CHAPTER 5

ANALYSIS & INTERPRETATION

40

ANALYSIS:

ANALYSIS HAS BEEN DONE BY TWO METHODS

1. GRAPHICAL METHOD
2. PERCENTAGE METHOD

Location of industries
41

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

Location

Ind.

Focal

Sunder Nagar

Area

point

No. of

140

90

20

respondents
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?
Total no. of respondents-250
42

Type of

Cycle

Manfg.

Auto parts

Parts

Hosiery &

Forging

Others

dyeing

Industry
No. of

80

50

45

30

45

industries
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?
Total no. of respondents-250

43

Preferred

Maruti

Hyundai

Honda

Tata

Toyota

Others

Brand
No. of

97

35

38

30

20

30

cars
Percenta

39%

14%

15%

12%

8%

12%

ge

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%).
4.Price wise Distribution of cars
In Volkswagen which Price wise Distribution of cars would you prefer?
Total no. of respondents-250
44

Price range

3-7lakhs

7-12lakhs

12-20lakhs

20-30lakhs

30+lakhs

120
48%

95
38%

20
9%

5
2%

7
3%

of
Cars
No. of cars
Percentage

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
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

45

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

Total no. of respondents-250

Mode of Purchase
No. of respondents
Percentage

Cash
58
23%

Finance
192
77%

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

46

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
No. of

ICICI

HDFC

Nationalized

Any other

77

48

73

52

31%

19%

29%

21%

respondents
Percentage

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

47

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

polo

Vento

passat

New beetle

90

54

81

25

36%

21%

32%

10%

vehicle
No.of
respondents
No.of
percentage

Interpretation:
From this analysis it came to know 36% of people prefer polo car, 21% of
people vento, 32% of people prefer passat and 10% of people
48

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

No.of

Quality
24

Outlook
15

Interior
55

Safety
71

22

28

All
85

respondent
s
No.of

10

34

percentage

Interpretation:

49

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

No. of respondents
percentage

look
170
68%

safety
80
32%

Interpretation:

50

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

No. of respondents
percentage

Yes
160
64%

No
90
36%

Interpretation:

51

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 doesnt 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

No. of respondents
percentage

Yes
85
34%

No
165
66%

Interpretation:

52

From this analysis it came to know 66% of people given 60:40 split rear seat
of Volkswagen company doesnt present in all other models of in this class
and 34% of People doesnt 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

No. of respondents
percentage

Yes
96
38%

No
154
62%

Interpretation:

53

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

No. of respondents
percentage

Yes
173
69%

No
77
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 doesnt agree with others.

54

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

65

93

92

26%

37%

37%

No. of
respondents
Percentage

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.

55

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

14

Low level

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

56

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

57

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

16

others

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%

58

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

C entral locking

Pinch guards

navigators

All the above

50

100

Total 50

100

Interpretation:The above analysis show that out of 50

respondents,100% of people said that the Volkswagen consitsts all the
safety features which are mentioned in the options.

59

19 .What is the sellingprocess yourCars?

a)Direct personal sale
though channels
d)Show room sales

b)Direct onlinesal

c)Indirect

e)Telemarketing

Particulars

No.of Respondents

Percentage(%)

Direct personal selling

23

46

Direct online sale

10

Indirect through
channels

12

Show room sales

11

22

Tele marketing

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
Indirect through channels 22% members were responded for Show room
sales and rest of people were responded for telemarketing.

60

CHAPTER 6
6.1. FINDINGS
6.2. SUGGETIONS
6.3. SUMMERY
6.4.CONCLUSION

61

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

3.

its

models

consists

more

of

safety features

than

of

rest

comparatively.
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 its 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
are favorable for a European nameplate but they do not rival Hondas,
Hyundais, and Toyotas.

9.

The decision to build cars in America represents another questionable

decision. The quality of the last American produced VW was really bad.
62

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

production? Can VW learn to build a quality car that exceeds Hondas,
Hyundais and Toyotas?

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.

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

more focused on customer conversion.

63

 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.
ISSUES:
Understand the dynamics of the Indian passenger car market.
Examine the growth strategies of Volkswagen Group India over the years.

64

 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 37lakhs (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.

65

ANNEXTURE

66

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.

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?

67

(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?
(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.
68

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?

a)Direct personal sale

b)Direct onlinesale

c)Indirect though

channels
d)Show room sales

e)Telemarketing

69

BIBLIOGRAPHY

BOOKS REFERRED :
70

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

Data provided here is not absolute.its only for

reference

71