Volkswagen Marketing Management

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Information about Volkswagen Marketing Management

Published on March 24, 2014

Author: mahendraprabhuk7



Examples of Brand and Product portfolio extension of Volkswagen Group at International and Indain Markets

Marketing Analyst Keywords: Product portfolio extension, Service portfolio extension, new business development, lead marketing executive, diversification, Customerisation concept and Demographic segmentation

Weight of Volkswagen Group: Influence of a automobile giant on rest of the world  The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. In 2013, the Group increased the number of vehicles delivered to customers to 9.731 million (2012: 9.276 million), corresponding to a 12.8 percent share of the world passenger car market.  In Western Europe, almost one in four new cars (24.8 percent) is made by the Volkswagen Group. Group sales revenue in 2013 totaled €197 billion (2012: €193 billion), while profit after tax amounted to €9.3 billion (2012: €21.9 billion).

VW Business portfolio: Ownership of multiple brands  The Group compromises of twelve brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN.  Each brand has its own character and operates as an independent entity on the market. The product spectrum ranges from motorcycles to low-consumption small cars and luxury vehicles. In the commercial vehicle sector, the products include ranges from pick- ups, buses and heavy trucks.

VW diversification of Product and Service line: Wide range of commercial offerings is a part of their Growth Strategy and Business Operations  The Volkswagen Group is also active in other fields of business, manufacturing large-bore diesel engines for marine and stationary applications (turnkey power plants), turbochargers, turbomachinery (steam and gas turbines), compressors and chemical reactors. It also produces vehicle transmissions, special gear units for wind turbines, slide bearings and couplings as well as testing systems for the mobility sector.  In addition, the Volkswagen Group offers a wide range of financial services, including dealer and customer financing, leasing, banking and insurance activities, and fleet management.

VW transnational corporate culture: Large and Global automobile MNC based in Germany has Robust Business Operations and Visible Market Influence around the world The Group operates 106 production plants in 19 European countries and a further eight countries in the Americas, Asia and Africa. Every weekday, 572,800 employees worldwide produce some 39,350 vehicles, and work in vehicle-related services or other fields of business. The Volkswagen Group sells its vehicles in 153 countries.

VW organisational Ambitions, Goals and Targets: (traditional and popular) (company, organisation and brand) has stronghold of latest technology, conceptual corporate culture, innovative management talent and intelligent human capital continues to be successful in the contemporary world The Group’s goal is to offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class. Shaping the future is a fascinating challenge for industry and society. Our automotive future is formed by social conditions and trends. It is our task to anticipate the future needs of our customers and to convert these needs into innovative technologies. Highlights of Annual Report 2013 • Volkswagen Group continues success story in fiscal year 2013 • CEO Winterkorn: "There is a good chance that we will already exceed the ten million deliveries mark this year.“ • Healthy start to 2014 with a 4.7 percent increase in deliveries in the first two months • Even stronger focus on qualitative growth going forward

Volkswagen Financial Services: Brand Extension

Volkswagen Financial Services: Brand Extension Volkswagen Financial Services AG is a 100%-owned subsidiary of Volkswagen AG and has its headquarters in Braunschweig, Germany. We are responsible for coordinating the worldwide financial services activities of the Volkswagen Group. In Europe, Asia-Pacific, North America and South America we manage the financial services operations directly via subsidiaries. With our comprehensive range of financial services products we make a significant contribution to the promotion and securing of Volkswagen Group sales and strengthen the link between our customers and the Group brands. Metaphorically speaking our innovative financial services open our customers the door to their dream car - Volkswagen Financial Services: The key to mobility. Volkswagen Financial Services AG is the largest automobile financial services provider in Europe. Total Assets on 30 June, 2013 reached more than 87,6 billion euros. At the reporting date Volkswagen Financial Services AG had 9,147 employees worldwide, 5,136 of them work in Germany.

Volkswagen India to launch Taigun in 2014: Product Extension

VW at India Auto Expo 2014, New Delhi: Volkswagen Taigun concept unveiled  German car maker, Volkswagen, unveiled a vital car model which could soon be part of their India line-up. The rapidly growing demand for compact SUVs in India has tempted VW to consider to introduce a small SUV in our country. At the busy first day of the Auto Expo 2014, VW showcased the new Taigun SUV concept which has strong chances of coming to our shores in the next one year. The concept comes fitted with a puny but efficient 1.0-litre TSI turbocharged petrol engine which can produce 108 PS and 175 Nm.  Though the official statement still suggest the VW is considering to launch the Taigun in India, but sources close to the project has confirmed that the compact SUV will surely be launched within the next one year. Pricing of the VW compact SUV would be competitive and well under Rs 10-lakh.

Volkswagen has its eyes set on competing against the Subaru Outback with an all-wheel-drive, Golf-based Jetta SportWagen due in the U.S. in late 2014.  The German automaker has approved the model, with sources saying that it will be similar to the Alltrack concept shown at the 2012 New York Auto Show, meaning the all-wheel-drive model will have higher ground clearance and body cladding.  Volkswagen, which currently sells a Passat Alltrack in Australia, is looking to steal away some of the Outback’s market share, which is Subaru’s best-selling model in the U.S. If the German automaker can keep costs down on the all- wheel-drive variant, it could compete with the Subaru Outback, which is priced from $23,495 including destination. Currently, the Volkswagen Jetta SportWagen in front-wheel-drive form is priced at $21,390.

VW Global Product Extension: Alltrack is a completely new car model designed on upscale stationwagen platform to cater upper middle class in developed countries. Volkswagen has plans to launch Alltrack in the US market by late 2014.

VW Market Segmentation: Global recognition, Affluent status, Dynamic attitude, Innovative product and Aspirational plans  Indifferent mix of Macromarketing and Micromarketing  Demographic segmentation: Income and Social Class  Behavioural Segmentation: Decision roles: Decider, Buyer and User  Behavioural Segmentation: Behavioural variables: User status, Buyer readiness and Attitude  Pattern of Target Market Selection: Market Specialisation at India level and Full Market Coverage at International level

 VW International strategy: Volkswagen Group Chairman Prof. Dr. Martin Winterkorn announced that the Group will now focus even more strongly on qualitative growth, with a particular emphasis on earnings quality, quality in development and people quality.  Thank You

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