Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Introduction
Branding
The concept of branding in market is related to the production of brand and in the views of
Hankinson & Cowking (1993) that branding is tagline that used to differentiate product from
other competitors in market.
Branding is defined as identity of a specific product, service or business. A brand can take
many forms, including a name, sign, symbol or slogan. The world brand began simply as a way
to tell one persons cattle from another by means of a hot iron stamp. The word brand began
has continued to evolve to encompass identity- in effect the personality of o product, company
or service.
Importance of Branding
http://www.ukessays.com/essays/marketing/brand-strategy-adopted-by-an-automobile-company-volkswagen-marketing-essay.php
1/7
2014/12/10
The branding is the face of the product that company offers to its customers hence every
company has to toss their branding strategy effectively. Since this is beneficial in making the
impression of product or services in the mind of customers. An effective and impressive brand
name always attracts the customers and keeps the position and image of the company in their
minds. This even gains to make the customers think and moved towards the use of another
product of same company to which they are not familiar.
A good quality brand image in business matters a lot; the brand of the company is always seen
as in differential part of the company which shows its value and quality. With an effective and
strong brand the image of the company goes rise.
Strong brand of business facilitateStruggling
other brands
to link
with each other
to meet
your
different products of
the company. The brand name of deadline?
company used for the different products of the company for
effective selling in market. (SourceAvoid
- Hankinson
& Cowking, 1997 pp- 156)
disappointment.
Company Introduction
2/7
2014/12/10
In the views of Porter (1993), for successful administration of a company there must be an
identified strategy that itself serve as a position and must be able to handle competition
through brand strategy of the company and is primarily differentiate into three parts as. Cost
leadership strategy, differentiation strategy and focus strategy.
Brand strategy of Volkswagen is well maintained. As India is important market for the strategic
marketing especially in automotive industry. There are good opportunities for future growth as
a result of outstanding conditions of demands. But the noticeable condition is that there is very
high competition full with challenges of conditions of market, different lifestyle, and behaviour
of consumers.
Branding is key success factor for Volkswagen in order to gain good market position and
competitive advantages therefore it become very successful in the Indian Automobiles of
market. As branding plays a vital part for the Volkswagen and make it differentiate from other
competitors in market. Kotler has viewed his comment on the leadership that a cost
leadership is not possible, differentiate is their competitive strategy (Kotler, 2008, p.468). Also
Varey considered brand as unique and for selling the proposition in the emerging markets.
http://www.ukessays.com/essays/marketing/brand-strategy-adopted-by-an-automobile-company-volkswagen-marketing-essay.php
3/7
2014/12/10
Brand Positioning
In the view of Armstrong (2002), brand positioning zeroes in on customers and gives them a
reason to buy a product in preference to others; it differentiates a product from other products
based on attributes. Walter (1997) also states that position of brand is perception among target
customers. The Volkswagen group of India as came back into market after the period of ten
years it has going to position its brand again in the minds of their customers and in market.
The company has positioned its brand bracketed to set of above middle classed customers
whose income is above average and have the thrill to show off as and where compared to
brand Audi which is expensive and very showing type is designed for those types of consumers
that are sporty and want to show off more with expensive expenditure. On contrary the
Volkswagen brand is suitable for the average persons and also full the desire to show off. The
company has managed them with a separate position in market. According to a statement
given by the director of VW passengers cars Mr. Neeraj Garg that the company will take some
time for making its position and there is a slow process to gain position into the minds of
customers of India.
Segmentation
In India most driving factor is recognised affordability, due to this the market of domestic cars
is segmented on to accordance with their prices. There is price based competition in Indian
market therefore the car is segmented as below:
Multi Segmentation
Geographical segmentation
Demographical segmentation
Social Class
Marketing Strategy
Marketing Strategy adopted by Volkswagen brand after its launch in India in 2007 in relation to
marketing Mix
Marketing Mix
Marketing mix of Volkswagen Brand
Source: Kotler, P & Armstrong, G (2004)
For brand strategy of Volkswagen there is involvement of first P according to marketing mix is
Product as described in model. The product in this model is defined as that combination of
services and goods sell to the customers by the company or organisation in target market
(Armstrong & Kotler, 2005). From analysis it is found that product is also a part of Brand name.
Design and quality are the main product features that possess variety in them. Here an
example can be quoted for a brand of Volkswagen Touareg that has been sold in India
comprises of a package of seating, engine, breaks and engine etc. (Volkswagen India, 2009).
http://www.ukessays.com/essays/marketing/brand-strategy-adopted-by-an-automobile-company-volkswagen-marketing-essay.php
4/7
2014/12/10
Hence for product strategy the company is equipped with variety and design in their products
including warrant for them which in turn results in good response from the customers and
make them satisfied and bring loyalty in them.
The second P in this model if marketing mix is price. Price is of a product or service is defined
as that amount which is paid by customer to the organisation or company for buying their
products or services offered to them (Armstrong & Kotler, 2005). While discussing the price
strategy it has been found that there are 61 dealership offers high prices for the products to
sell in India as compared to their rivals like Honda city and Ford, but there is variation that the
company charge interest rate by 4.5 5.0 % instead of other rivals make with 8% or more as a
loans given by banks or building societies of other rival car makers. This facility is attributed by
the Volkswagen financial Services that aided to support the sales of the company to their
customers.
There is next P for the marketing mix is Place that is also very crucial in Brand management.
The place usually referred to that place where there is availability of products of company to
their customers. As in concerned to Volkswagen the company involved in using dealers and
distributors for the purpose of the sales of their products. There are two modes for the dealers
to get authorised either through franchised or direct ownership of company. For the company
their network related to their dealers is very important and is maintained in a proper way
because the product of the company are introduced through them to the customers, hence it is
very important. In the views of Kotler 2005 the company usually share their losses and profits
both with their dealers for purpose to maintain the quality of cost leadership. At present the
Volkswagen has fine relationship with their dealers in India and also involve in the dealing of
their products with Skoda with 61 leaders (Top News, 2010).
The last and fourth one P is Promotion. The promotion has variance in their objectives that has
to be achieved in market. The promotion is usually handled with the tool of advertisement. The
promotions for customers are added through the advertisement that results in the excitement
among them. The aim of promotion is to pull in target consumers. These promotions are based
on the scheme of non profit but in turn results in the profit for the company (Bradley, 1993). For
example the Volkswagen Company in year 2009 has launched a promotion named Pre
Monsoon campaign published by Motor beam, 2009. This promotion is for the purpose to
establish the brand of company India. In India the company offered a variety of range of
services to their customers and fro this company is getting profit from the promotions of the
company brand.
Pricing strategy
Pricing strategy of Volkswagen: In the vies of Lowe and Doole (et al 2006), for any company at
the initial stage of launch in market introduced with two adopted strategies for pricing, one is
marketing skimming price strategy and other one is market penetration pricing. The company
Volkswagen has choose the strategy of market penetration pricing. In this strategy previously
the prices were set high so that there can be coverage of initial investment this is so because
the company had invested a lot of money in the business to set up the unit in Pune,
Maharastra.
Ansoff Growth Matrix Model for Strategy
Source: Kotler, P & Armstrong, G (2004)
http://www.ukessays.com/essays/marketing/brand-strategy-adopted-by-an-automobile-company-volkswagen-marketing-essay.php
5/7
2014/12/10
For further analysis there is discussion in accordance with the given model of Ansoff Growth
Matrix for Volkswagen. This model usually depicts the different areas of market development of
the product of the company. This development is in relation with company and that aspect that
are very important for the diversification of market. The thing is that this company has been
diversified as it enters into new market.
Market development
According to Reiziger (et al, 2003) when a company took entrance into a new market and
launch themselves by introducing existing products this is came to know as the development of
market, and the main aim of the company is to lure the customers from the their existing
competitors in that exiting market i.e. new market. The company Volkswagen has got the entry
into Indian market in 2007 by launching their product Jetta, then after two years in 2009 the
company has launched two new cars in market with their existing brand using the brand value
in market these cars are ionic beetle and the Touarge sedans (Volkswagen India, 2010).
Diversification
Again in the views of Reizger (2003) this is the entrance of any new company with having the
launch of their new product under its own brand is termed to be diversification. This strategy
is commonly recognised as most risky one as there is introduction of two new entities one is
market and other one is product. For the Volkswagen diversification is not so risky, as it has
already successfully launched a variety of cars in the market with its own brand and in
accordance with its brand image and with every brand it has inched higher and created sense
of the demand in the market on every launch of new products. Most currently the company has
as innovation there are four new car that has gone to be launched in 2012 and these new
coming products are SUVW, Couple, Up and Blue Sport (Volkswagen, 2010).
6/7
2014/12/10
criticised here because this strategy will create hindrance in the brand development and
prosperity of the company. The factor of Cannibalization can be seen as it can pay an
important role for the Volkswagen approach for the branding i.e. multi branding approach and
hence resulting in the brand that are new take the business away from that which are already
established in market.
There are some suggestions that the company can adopt for the effective brand management
are to drive the response of the customers as they are the key link for the success of the
company and there must be online and offline programmes of marketing.
The company has to be involved in the Build Brand Engagement process to learn how the
consumer wants to link up with the brand of product. They must continue to attempt at
increasing the customer loyalty.
To order your own custom written Essay, Dissertation or Coursework, call UK Essays on:
www.ukessays.com
Copyright 2003 - 2014 - UK Essays is a trading name of All Answers Ltd, a company registered
in England and Wales. Company Registration No: 4964706. VAT Registration No: 842417633.
Registered Data Controller No: Z1821391. Registered office: Venture House, Cross Street,
Arnold, Nottingham, Nottinghamshire, NG5 7PJ.
http://www.ukessays.com/essays/marketing/brand-strategy-adopted-by-an-automobile-company-volkswagen-marketing-essay.php
7/7