INTERNSHIP REPORT

Impact of Product Mix in Customer Retention at Volkswagen

Submitted by
Vipul Sharma
A0102214039

MBA (M&S) Class of 2016

Under the Supervision of
Mr. Rajeev Gupta
Department of IT and Operation

In Partial Fulfillment of the Requirements for the Degree of

Master of Business Administration (Marketing & Sales)

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

Appendix B to Annexure II

DECLARATION

The title of Project Report is Impact of Product Mix in Customer Retention at Volkswagen
I declare that: (a) the work presented for the task in this Internship Report is my original work
that it has not previously been presented for any other assessment and that my arrears have been
appropriately acknowledged; (b) work conforms to the guidelines laid by the University.

Date:

Vipul Sharma

A0102214039
MBA M&S (Class of 2016)

Appendix C to Annexure II

CERTIFICATE

This is to certify that Vipul Sharma student of Masters of Business Administration M&S at
Amity Business School, Amity University Uttar Pradesh has completed the Internship Report
on Impact of Product Mix in Customer Retention at Volkswagen in Partial Fulfillment of the
Requirements for the Degree of Master of Business Administration Marketing & Sales under
my guidance.
The report has been checked for the plagiarism and it is acceptable.

Mr. Rajeev Gupta

Department of IT and Operation

Appendix D to Annexure II

TABLE OF CONTENT
CONTENT

PAGE NO.

a. Acknowledgement ..............
1. Introduction
1.1.

Marketing mix

1.1.1. Product
1.1.2. Price
1.1.3. Place
1.1.4. Promotion
2. Company Profile
3. Literature review
4. Research Methodology .
4.1.1. Data interpretation and analysis
5. Conclusion

LVI

6. Suggestions

LV11

7. References ..

LVIII

ACKNOWLEDGEMENT

I thank Almighty for being with me for completing the project work. It is great pleasure
to express my sincere gratitude to all those contribution in this project work.
Success shall be crowned to the people who made it a reality but the people whose
constant guidance and encouragement made it possible will be crowned first on the eve of
success.
This acknowledgment does the transcending of reality of the formality when we would
like to express deep gratitude and respect to all those people behind the screen who guided,
inspired and helped me for the completion of our project work.
I consider myself lucky enough to get such a good project. The project will add as an
asset to my academic profile.
I would like to express my gratitude towards my faculty guide Mr. Rajeev Gupta for his
kind co-operation and encouragement which helped me in completion of this project.
Finally, I Vipul Sharma would like to thank everyone who helped me in completion of
this project directly or indirectly.

Thanking you
Yours sincerely
Vipul Sharma

MBA (Marketing & Sales)

2014-2016

Executive Summary
Marketing mix plays a main part in a corporate. Marketing is often seen to be the front face of a
unit representing itself and the product. Good marketing have proven to give good result in terms
of sales, recognition and creation of value in the minds of the audience.
Customer retention is what every industry in todays scenario looks up to. The rise in the
competition and provision of a reasonable benefit, over choice and the merchandise to the client
has made manufactures and sellers to find ways to prove them best among the rest.
There is a strong connection between the marketing mix and the retention of customers. The
project is created on the automobile sector, very precisely to Volkswagen at Allahabad, U.P. The
study is based on how marketing mix has an impact in customer retention at Volkswagen.
Lot many factors have been deeply studied to understand how each element of marketing mix
i.e product, price, place and promotion has an impact on its customers to be associated with the
brand/ the dealer. Volkswagen has a very established name in the market over years. This name
has lot of strategies and elements of marketing mix, which has maintained in recalling its brand
assessment and clients over a period of time.

Chapter 1: Introduction
What is customer retention?
Customer retention is the process which maintains the relationships with customers.
Customer retention is defined as: the number of customers doing business with a firm at the end
of a financial year expressed as percentage of those who were active customers at the beginning
of the year.

What type of customers should retain?

The very first important part is the customers who have the large part of the value to your
company and they are the main aspirants for retention exertions. Should keep in mind that there
may be a significant value of customer retention. The very most important customers are likely
those who are attracted by the competitors.
The commitment between attracted customer and a company would result to decide to choose the
customers to retain. If the customer is too loyal, that is, resistant to the appeals in the market of
competitors, there is no need to invest in the retention process. However, if there are customers
with high significant which are not committed with the company, then there would be a valuable
amount to be invested for the retention.

Strategies to retain the customers

Positive and negative strategies to retain the customers
An important differentiation could be made between strategies and locking the customer in by
castigating the exit part of a strategies and relationships to reward the customers to retain in the
long-term relationship with the company.

Meet and exceed expectations

It is really a very difficult task to make or build a long-term relationship with the customers. It is
a fundamental concept and the process which identifies to understand the customers need and
their value demands. Then in this process should organize resources and then acquire to make
sure the satisfaction of the customers and their retention.
Customers who are not served in a proper manner by the company are taken with the extra care
by the competitors. In this world it does not necessarily mean being world-class or high class.
Company should satisfy the customer and also surprise to retain. However, if you wont
understand the customers expectations and their need of demand then there would be no use of
strategies and fundamental concepts.

Additional values to customers

Companies could identify ways to establish additional values for customers. Without investing
any extra value by the company, additional value offers could be implemented for customers
which does not affect the financial status of the companies.

Loyalty schemes
As much the customer invests the higher the reward would be from the company .Reward
schemes for loyalty customers for their investment.

Volkswagen Group in India

Volkswagen is a car manufacturing company whose title Volkswagen, a German name, means
Peoples Car. The founder, Ferdinand Porsche originated the business in the 1930s when he
started planning reasonable cars that could be bought even by the general people. The earlier
sample car named KdF-Wagen arose in 1936. Ever then, the business has prolonged its processes
and is now a worldwide car manufacturer with fanciful products, one of the most well-known
being Volkswagen beetle.

Volkswagen Group India touches its Indian Journey back in 2001 when it launched its first car
product called Skoda. Six years later in 2007, it announced two other brands called Volkswagen
and Audi in India. In 2009, Volkswagen India Group had fifteen Volkswagen models and the

company was separated into two groups Volkswagen Group India and its sub division of
business, Volkswagen India Private Limited. Volkswagen Group India highlights on all features
of marketing mix just to retain its brand in demand and cost-effective.

Marketing Mix (of Volkswagen):

Product mix of Volkswagen

The absolute measurement of Volkswagen Group India is approximately that donates to the
growth of the business. In terms of merchandises, the business suggests diverse cars to retain the
clients pleased, and to encounter their potentials depending on the diverse wants. Thus, the
business deals a varied choice of products which contain the following: Polo, Vento, Beetle,
Passat, etc.
Various features of Volkswagen products are as follows

Extraordinary value cars with a brand name to upkeep

Better service delivery with very little amplified complaints

Awesome supply for the products.

Promotions mix of Volkswagen

The company used a lot of ATL media like TVCs and print media in its initial year in India to
promote its brand and merchandises. But since that India started undergoing a rush in car market
struggle, the business had no choice but to accept additional marketing plans like digital, BTL
and out of home media in accumulation to the ATL media. The corporation is also consuming
social media stand to marketplace its products. In a bid to support brand image, the business
jumped up to combine in marketing strategy in 2009. The business also promotes many car
events as well as other business events.
As a way of accomplishment for a broader client base, the business permits clients to purchase
their cars by leasing as well. This means that clients dont have to compensate for the entire
amount in directive to buy the car.

Place mix of Volkswagen

Each of Volkswagen car is mass-produced and spread in important places for planned motives so
that the network can effortlessly access the cars and can acquire the delivery on time. There are
numerous car suppliers all over the country who dispense the cars manufactured by the business.
The goal of the business is to penetrate the car marketplace in India as it visions India as one of
the major marketplaces in the world. The corporations market plans are geared to marketing 300
units of its iconic car Beetle. The corporation may be fresh in the Indian Marketplace but it has
prepared a lot of progresses.

Price mix of Volkswagen

Depending on the size, level of exceptionality, choices and control of the engine, Volkswagen car
values sort from reasonable to expensive and that is what occurs with numerous other cars.
However, Volkswagen arrogances itself as a car manufacturer which produces cars that the
normal individual can give.
However, in contrast with the further brands inside the Volkswagen portfolio, the values are
marginally reasonable 0f course, it is substantial to annotation that each commodities line of a
precise model has numerous choices for the extent of engine, which marks the performance and
the charge

Volkswagen in India with rich feature subcompact

Germany's Volkswagen AG, Europe's major automaker, is betting that the introduction of a
feature-rich subcompact in India following year will form on its ordinary 2 percent marketplace
share and drive growth in the quick-growing developing marketplace.
The new car will descent in the minor but burgeoning section for vehicles smaller than 4 metres,
to take benefit of tax disruptions, and come with perks usually kept for high-end models, such as
dual airbags and instinctive gear shift.
The car will spot a late entrance into a section prevalent with a mounting middle class seeking
high-spec yet reasonable vehicles. Market front Maruti Suzuki India Limited, Hyundai Motor
Company and Honda Motor Company already sell sub-4 meter sedan models.
.
Absence of such compressed and competitively priced cars has put Volkswagen on a pathetic
footing in India. That associated with a market upsurge of 5 percent, information from the
Culture of Indian Automobile Manufacturers presented.
Volkswagen expects the different model, custom-made for India and constructed locally, will
opposite the decay.

Company Profile
Volkswagen India Pvt Ltd is a partition of the Volkswagen Group India, created in 2007.
Volkswagen Group India has capitalized over INR 4,000 crores for situation of the state-of-the-art
industrial talent in Chakan, Maharashtra

Volkswagen India Pvt Ltd

Type

Division of Volkswagen Group India

Industry

Automotive

Founded

2007

Key people

Mahesh Kodumudi
(President and Managing Director)

Products

Automobiles

Slogan

Das Auto

Website

www.volkswagen.co.in

Manufacturing Facilities
Volkswagen India Pvt. Ltd. functions an engineering plant in Chakan, Maharashtra which is
skilled of creating 200,000 vehicles per annum. Along with the engineering of Volkswagen Polo
and Volkswagen Vento, the plant is also united by koda Auto India Private Limited for
manufacturing the koda Rapid.

Volkswagen installs its new engine assembly facility in Chakan, Maharashtra, India. Set-up at a
cost of about Rs. 240 crores (Euro 710 million) the original plant is an extension lead to its
current car engineering plant in the same region.

Sales and Service Network

Volkswagen India Private Limiteds major emphasis is to creation excellence products at its
Chakan Plant. It retails its goods to a group business viz. Volkswagen Group Sales India Pvt.
Ltd., which is founded out of Mumbai. Volkswagen Group Sales India Pvt. Ltd. has a big dealer
linkage in India for trade of products mass-produced by Volkswagen India Pvt. Ltd.

Chapter 2: Literature review

Author: PM ET on Jun. 18, 2015: Volkswagen ranks the second largest automaker in the
world after Toyota Motor with the sales of 10.14 million units, last year. From the huge

market and with diversification, India occupies a very small position. In 2014 the sales of
Volkswagen in India was 70,656 vehicles, which counts only 1% of its overall sales.

Author: Hormazd Sorabjee on May 31, 2015: The Volkswagen group, rather than its
other brands such as Skoda, Audi, etc. that also sells cars are concerned about Indian
market which has proven a challenging and prompted to scale down its forecasted 2018
market share which targets of 20% to only 7-8%.

Author: Faye Sunderland on Feb 15, 2010: Volkswagen, the very first automaker to
start tagging its greenest motors/vehicles varriants with its own special sub-brand tag.
By which it started was the modest Polo Blue-motion in 2007, which was the part of its fourth
evolution in its model. Blue-motion name tag used by Volkswagen was to denote the very
new and the freshest variant in the Polo range.

Author: Candace on April 1, 2010:

The award was given to Volkswagen for its blue-motion technology which was presented
on the three Volkswagen model: Golf, Polo and Passat, on Thursday morning at the 2010
New York International Auto
Volkswagen cars added technology, efficacy to a models engine, transmission,
suspension, fuel, braking system, etc. Though which gives Volkswagen cars, the bluemotion brand tag. With the help of such combinations it helps in creating the lowest CO2
emitting version of cars.

Chapter 3: Research Methodology

Objectives:

Analyze the different elements of marketing mix (product, price, place, promotion)
Establishment of Volkswagen in India to retain the customer.
Fundamental concepts and strategies followed by Volkswagen to develop in the market as
well to retain the customer

Research problem:

Conducted survey was through Google forms, however sampling was convenient

sampling.
Total 50 respondents responded and was a pretty limited account for conducting a

research on such a vast topic.

Only one view point was not enough to study the topic, though the study must be

conducted all over the regin.

Selection of the customer for the retention.

Research Design:
The research design selected in the summer internship project report is a mix of both exploratory
and descriptive research designs. The exploratory research is escorted by use of different
concepts like brainstorming to express possible number of issues and elements that how the
result of marketing mix helped Volkswagen to retain customers. Though it was unfeasible to
check all of these factors, descriptive research was executed to define the characteristic of
different aspects and norms that Volkswagen has set and abide by it.
Research Questions:

Research questions defines the various features of marketing mix including product, price,
place & promotion and how efficiently it wishes to be developed to retain its customers. The
questionnaire analyzes about the pertinence of marketing mix could be in leaving a strong impact
on its customers in retaining them.
Participants:
Sample size: - It refers to the number of elements of the population which are selected in the
sample drawn from it. In our project the sample size is 50 respondents, which includes all
respondents who were interviewed through internet.
Instruments used:
Questionnaires method is used in this project report.

Chapter 4: Data Interpretation and Analysis

1- Name :
Hemant aman Jyoti annav Harsh akhil aditi Dharmendra nishu soumya thyagirajan Naina Sakshi
Jai twinky Purvika Harini Preshtha Abhayansh udayan fGovind Gupta shagun Sushil tushar
shubham Deepti simranjeet Singh soumya agarwal Sneha Panchannavar Sugandha mehak ritvik
PROF. SANDEEP K. Rathore Kavita Sharma pragti anushka Kushal amisha sunil sharma
Bipasha Singh sahil bajaj karishma SATYA chirag ranka rohan bajaj Ayushi Agrawal Swagat
saikia Vaibhav Bablu sharma Megha sharma

2- Age
18 20

10 (21%)

21 30

31 (66%)

31 40

(4%)

41 50

(4%)

51 & Above 2

(4%)

This analyses describes that the most of the people made the decision to purchase a car fall in the
age group 21-30. Therefore it seems that today trend is changing. The purchase decision taken to

buy a car in the family is taken by the mature kids and not by the head of the family. Because of
the advance technology which is seen in the new upcoming generation.

3 Gender

Male

27 (54%)

Female

23 (46%)

The above pie chart shows that till today Indian society dominated by men, and this shows
the division of men (54%) and female (46%).

The questionnaire which is filled are

maximum number of males which gives a mirror that they are more aware of the content of
cars and its technology than the females.

4 What is your occupation?

Business

(4%)

Employee

12 (24%)

Agriculture

Student

31 (62%)

Other

(4%)

(6%)

The result of marketing mix is more founded in the students than any other occupation. This
pie chart shows that the maximum per cent carried are by the students (62%). The main
information about the awareness is more in the students which also seen the age factor
between 21-30.

5 Do you think whether the brand Volkswagen created a strong brand image in
retaining its customer so far or not?

The above pie chart shows the response which was maximum by 86% people which was
stated by the brand image of Volkswagen which is created so highly intense bond that it tends
to retain its customers. This result

shows that Volkswagen made a

great efforts to create its brand and Yes

43 (86%)

has great impact of marketing mix in

name to exist in the market and

retention of the customers.

No

(14%)

6 What do you think Volkswagen is more highlighted about in the term of USP?

Product

21 (42%)

Price

23 (46%)

Place

3 (6%)

Promotion 3 (6%)

India which is known for the price sensitiveness that is reflected in the above pie chart which
states 46% people (Price is the USP of Volkswagen), 42% (about the product), 6% (for
place), and 6% (promotion). The maximum part which is considered by the people is about
the product is its USP and Price. This phenomena shows that Volkswagen has managed in
sustaining its customers in term of pricing and quality product.

7 What are the afctors which made Volkswagen survive in the market?

Brand Loyalty

22

(44%
)

Brand Name

12

(24%
)

Product

3 (6%)

Price

(12%
)

Place ( availability)

(10%
)

Promotional
activities

2 (4%)

Others

0 (0%)

To survive in the market the most important aspect is the brand loyalty by the customers.
Therefore the above pie chart reflects about the brand loyalty which is made by the Volkswagen
(44%). Volkswagen has created a good name, reputation and also people trusted in so far which
could be a major reason for the survival.

8 Do you think Volkswagen is competitive enough than other brands?

It is true that Volkswagen is been famous for its brand name and its services but the most
important factor which made to
and competitive enough for other

sustain this brand for so long

Yes

28 (56%)

states that 56% of people think that

enough. Well Volkswagen has

Volkswagen is competitive
No

14 (28%)

customization for the customers and

services.

brands. The above pie chart

affordable price with good
to provide them with better

Don't Know 8 (16%)

9 How would you rate the pre- sales follow up of Volkswagen?

Excellent

1 (2%)

Good

34 (68%)

Average

14 (28%)

Below Average 1 (2%)

The above pie chart shows that the pre-sales value up Volkswagen which is 68%. This report
shows that Volkswagen maintained its image and existence in the market and survived for so far
and also gives attention to its customers with good quality of services.

10 How would you rate the post- sales follow up of Volkswagen?

Excellent

3 (6%)

Good

30 (60%)

Average

14 (28%)

Below
Average

3 (6%)

The source founded that the post-sales of Volkswagen has the positive attribute towards it which
shows the result of 60%. This key image shows that Volkswagen taken care of after sales service
and helped their customers timely to avoid any kind of complaints.

11 What do you think that Volkswagen has been technique competent in the
Automobile Sector?

Yes

28 (56%)

No

12 (24%)

Don't
know

10 (20%)

If we see todays scenario its all about the technology which is demanded by the society. The
above pie chart shows that 56% people are agree with this fact. This kind of efforts by
Volkswagen shows that it tries to retain their customers and survive in the market with its
technology.

12 How would you rate your experience with Volkswagen?

Excellent 8 (16%)

Good

33 (66%)

Average

7 (14%)

Bad

2 (4%)

To understand the real position of the company or the brand in the market, the major aspect is
the customers experience. 66% of the respondents had god experience with the Volkswagen
and 16% had excellent experience. The main objective of the company or the aim which it
targets is to satisfy its each and every customer but there are some aspects which are left
unattained and this leads to unsatisfied customers.

Chapter 5: Conclusion

In the competitive scenario survival has become the toughest task. Marketers are on their toes
day and night finding out , what best could be the reason a customer could stick to its and brand
and the new customer gets attracted to it simultaneously. Both the type of customers is distinct in
nature and needs to be handled in different ways. The management of both teaches a marketer
how competitive is he in the market.
Marketing mix plays a major role, though the concept of marketing mix is a wider concept of
understanding. Yet the presence of it is seen to be utilized and categorized by almost every
organization and its marketers sometime directly and sometimes indirectly.
The growth in the automobile sector has seen to be drastically improving day by day. The
demand of cars has seen to have a rise every second in the changing scenario. This growth has
put forward a lot of challenging factors for the brands and companies to understand and evaluate
the needs and demand of its customer and meet it on time so that their existing customers are
retained and the new customers are also attracted.
Volkswagen though has an established brand name over years yet it is dicey to say how far it has
been competitive to compete in the market. The luxury brand market and the foreign companies
have started entering the market and are also been preferred.

Chapter 6: Suggestions

The Volkswagen has to look on to bigger car segments to be competitive enough in the

market.
The luxury brand market has seen to be very flourishing over time, Volkswagen needs to
upgrade to reach the level of competition and compete in equality with its rivals in the

automobile sector.
The Hyundai and Maruti Suzuki are its competitor in market has seen eroding its share in
small car segments drastically; Volkswagen will have to keep a watch on it in order to sustain

its small car market which is the most preferred one.

It also needs to give extra attention to its sales in order to maintain its position and raise its

sale in the market.

There needs to be a better promotional strategy as to remind customers of its existence with
time, as its already an established brand in the market, yet its presence has been seen to
move towards decline. Hence to avoid such alarming situation, it needs to improvise.

References

I.

(http://www.Volkswagen.com/) with reference to the variants and other details of

II.

Volkswagens profile. Dated 16/05/2015.

(http://www.Volkswagen.com/company-at-a-glance.aspx) with reference to

III.

what exactly Volkswagen tells about itself. Dated 19/05/2015.

(http://www.carwale.com/Volkswagen-cars/) with reference to price list, and

IV.

different car models. Dated - 20/05/2015.

(http://economictimes.indiatimes.com/Volkswagen-indialtd/stocks/companyid-11890.cms) with reference to share and the rise and fall of

V.

the same, to study the market position. Dated 22/05/2015.

(http://www.zigwheels.com/newcars/Volkswagen) with reference to, the comparison of

VI.

rates and availability of car from different sources. Dated 23/05/2015.

(http://www.chimc.in/volume3No1/ResearchPaper-2.pdf) research paper MARKET RESEARCH ON FACTORS AFFECTING CUSTOMER SATISFACTION

VII.

Ankit Shah. Dated 26/05/2015

(http://www.imrbint.com/index.php?
option=com_content&view=article&Itemid=7&id=21:customersatisfaction-research) study on research of customer satisfaction and retention.

VIII.

Dated - 29/05/2015.
(http://www.zenithresearch.org.in/images/stories/pdf/2012/JUNE/ZIJMR/
8_ZIJMR_VOL2_ISSUE6_JUNE2012.pdf) International Journal of Multidisciplinary
Research Vol. 2 Issue 6 June 2012, ISSN 2231 5780 CUSTOMER SATISFACTION IN
AUTOMOBILE INDUSTRY AN INDIAN ONLINE BUYERS PERSPECTIVE OF

IX.
X.
XI.

CAR MANUFACTURERS
Study of the SOS of the company given at the showroom.
Study of the Induction of employee provided at the showroom
News paper dated from 16/05/2015 to 12/06/2015 of dainik jagran and amar ujala .

ANNEXURE

Questionnaire: (Impact of Marketing Mix in Customer Retention at Volkswagen)

Name *

Age *

18 - 20

21 - 30

31 - 40

41 - 50

51 & Above

Gender *

Male

Female

What is your occupation ? *

Business

Employee

Agriculture

Student

Other

Do you think whether the brand Volkswagen has created a strong brand image in retaining its
customers so far? *

Yes

No

What do you think Volkswagen is highlighted more about in the terms of USP? *

Product

Price

Place

Promotion

What are the factors do you think has made Volkswagen survive in the market? *

Brand Loyalty

Brand Name

Product

Price

Place ( availability)

Promotional activities

Others

Do you think Volkswagen is still competitive enough than other brands? *

Yes

No

Don't Know

How would you rate the pre - sales Follow up of Volkswagen? *

Excellent

Good

Average

Below Average

How would you rate the post - sales follow up of Volkswagen? *

Excellent

Good

Average

Below Average

What do you think that Volkswagen has been Techniquely competent in the Automobile sector?

Yes

No

Don't know

How would you rate your experience with Volkswagen? *

Excellent

Good

Average

Bad