This survey is a depiction of the brand strategy adopted by an automobile company Volkswagen. This generally protects the brand management by the company including the critical analysis of the brand strategy followed with context to its brand value, brand image and brand positioning. The report provides the reader to acquire critical evaluation of the brand management and by the end of the statement a conclusion is drawn on the basis of analysis in the body of the statement. In main part of the report there exists VIP analysis implemented Boston matrix and product life circuit for the comprehensive explanation of subject. Various brand strategies followed by the company are also handled in this area of the report. The conclusion is accompanied by some suitable suggestion of the brand strategy management of the company.
Introduction
Branding
The concept of branding in market is related to the creation of brand and in the views of Hankinson & Cowking (1993) that branding is tagline that used to differentiate product from other opponents in market.
Branding is thought as "personal information of a specific product, service or business. A brand can take many forms, including a name, signal, mark or slogan. The globe brand started out simply as a way to notify one person's cattle from another by means of a hot iron stamp. The term brand started has sustained to develop to encompass identification- in effect the personality of o product, company or service. "
In the views of Johnson and Scholes (2002, pp. 140) "branding can be an important feature for saturated market and then for the poor growing markets".
The brand provides identification and allows adding value, image and position to the company. A highly effective brand strategy is very useful for the success and future expansion of company. Branding can be used to promote the merchandise of the business in an easier and effective way. It builds up identity and for communicating the storyline of brand as with India the idea of storytelling is popular tool for advertising.
Importance of Branding
The branding is the face of the product that company offers to its customers hence every company must toss their branding strategy effectively. Since this is effective to make the impression of product or services in your brain of customers. An effective and impressive brand always attracts the clients and keeps the position and image of the company in their brains. This even profits to help make the customers think and moved towards the utilization of another product of same company to that they aren't familiar.
A good quality brand image running a business matters a whole lot; the brand of the company is often viewed as in differential area of the company which ultimately shows its value and quality. With a powerful and strong brand the image of the business goes surge.
Strong brand of business facilitate other brands to web page link with the other person different products of the company. The brand name of company used for the several products of the company for effective offering in market. (Source - Hankinson & Cowking, 1997 pp- 156)
Company Introduction
"VOLKSWAGEN DAS AUTOS"
The auto company established fact for its services and higher satisfaction amongst their customers. Volkswagen group of India is subsidiary of worldwide famous Volkswagen AG. It switches to brand of Volkswagen in addition to two other been around brands of Skoda and Audi in Indian market. These brands possess its own persona manoeuvres in an autonomous manner. The establishment of this subsidiary is at season 2007. In Indian autos market the brand image is highlighted by the size of vehicle, solutions of driving and various features like Washboard abs, EPS and air handbags and galvanized physiques of automobiles.
Multi branding v/s Commercial Branding
There are two main concepts taken corporate and business branding and multi branding that are explained as followed by the company:
Multi Branding: Idea of multi branding in the business mainly based on the objective to become most innovative manufactured size complies with best quality product specifically considering medium to long-term classless. With theme and slogan "Vorsprungdurch Technik" of Audi brand in considered as solid brand in automotive premium segment. Furthermore make of Skoda is a combination of intelligent principles in using space and technical innovation also covering the design and good money value (Kapfere, 2009, pp 276).
Corporate Branding: Volkswagen carries three main brands insurance agencies communications of "sensible" "innovation" and "providing Enduring Value". The car under the organization brand there exists passenger cars communicate reliability and quality and executive of German skills at the global level. This facilitate in becoming the first choice in millions of the customers when buying a car.
Critical Analysis of Brand Strategy of VGI
In the views of Porter (1993), for successful administration of a company there has to be an recognized strategy that itself provide as a posture and must be able to take care of competition through brand strategy of the business and is primarily differentiate into three parts as. Cost command strategy, differentiation strategy and concentration strategy.
Brand strategy of Volkswagen is well looked after. As India is important market for the proper marketing especially in automotive industry. You will find good opportunities for future progress as a result of excellent conditions of demands. But the noticeable condition is that there is very high competition full with problems of conditions of market, different lifestyle, and behavior of consumers.
Branding is key success factor for Volkswagen to be able to get good market position and competitive advantages so that it become very successful in the Indian Cars of market. As branding takes on a essential part for the Volkswagen and make it differentiate from other competition in market. Kotler has seen his touch upon the leadership that "a cost leadership is extremely hard, differentiate is their competitive strategy" (Kotler, 2008, p. 468). Also Varey considered brand as unique and then for offering the proposition in the appearing markets.
Branding Value of Volkswagen
The brand value can be an important aspect of a brand. This is illustrate as the clients are usually inclined to spent or pay more to the product that relates to any known brand, they preferred brand that the product. The brand value is hence thought as "that extra cash made by an organization or can be produced from the offering of its products in solely way only because of the name of its brand". For example For Volkswagen group India there may be late access of the Volkswagen group of India in the market as compared to other competitor rivals. For this reason company has lack to get the first mover benefits in market and therefore less gain in the brand value. For further development the company to be able to improve its brand value it follow the strategy by making corporate declaration "innovation for everyone".
While marketing any product, notably in India, the most crucial factor is quality and price of product as India is at a halt an unhealthy country.
Brand Image for Volkswagen
Brand image is specified as those qualities that happen to be related to the relationship to customers with this brand. It is indicated as the individuals behavior and their wants and desires, but not enough it also affiliates with the situational use, price and quality of the brand. Here example can be studied as the Mercedes Benz which owns a string brand image because of its product quality and features and their price, this came to make an image of brand in the thoughts of customers about that particular product. The brand image is no inherent personality for an organization brand though this can be achieved through the advertising and promotions.
Brand image is id of the merchandise in market and is a symbol of the business that produce its impression and image in the intellects of customers. The Volkswagen with its new brand "Das Car" along using its vision, the company is going to create new image by adjoining closeness and convenience via affordable innovations. The Volkswagens brands of Skoda and Audi handled in such a way that curved their position in stiff ad competitive automobile market and creating their baton of brand image in consciously delicate market segments like India.
Brand Positioning
In the view of Armstrong (2002), "brand positioning zeroes in on customers and gives them grounds to buy something in preference to others; it differentiates a product from other products based on capabilities. Walter (1997) also says that position of brand is perception among focus on customers. The Volkswagen band of India as came back into market following the period of ten years it has going to put its brand again in the heads of their customers and in market. The business has located its brand bracketed to set of above middle classed customers whose income is above average and have the thrill showing off as and where in comparison to brand Audi which is expensive and very displaying type is made for those types of people that are sporty and want to show off more with expensive expenditure. On in contrast the Volkswagen brand is suitable for the average individuals and also full the desire to show off. The company has handled them with a separate position in market. Corresponding to a statement given by the director of VW individuals autos Mr. Neeraj Garg that the business will take time for making its position and there's a slow process to gain position in to the heads of customers of India.
Segmentation
In India most travelling factor is recognised affordability, because of this the marketplace of domestic automobiles is segmented on to accordance with the prices. There is price based competition in Indian market which means car is segmented as below:
Multi Segmentation
Geographical segmentation
Demographical segmentation
Social Class
Marketing Strategy
Marketing Strategy adopted by Volkswagen brand after its unveiling in India in 2007 in relation to marketing Mix
Marketing Mix
Marketing mixture of Volkswagen Brand
Source: Kotler, P & Armstrong, G (2004)
For brand strategy of Volkswagen there is certainly involvement of first P regarding to marketing combination is Product as described in model. The merchandise in this model is defined as that combo of services and goods sell to the customers by the business or organisation in target market (Armstrong & Kotler, 2005). From examination it is found that product is also an integral part of Brand. Design and quality are the main product features that have variety in them. Here an example can be quoted for a brand of Volkswagen Touareg that has been sold in India consists of a package of seating, engine motor, breaks and engine unit etc. (Volkswagen India, 2009). Hence for product strategy the business is equipped with variety and design in their products including warrant for them which in turn ends up with good response from the customers and make them satisfied and bring devotion in them.
The second P in this model if marketing blend is price. Price is of a product or service is defined as that amount which is paid by customer to the company or company for buying their products or services offered to them (Armstrong & Kotler, 2005). While speaking about the purchase price strategy it's been found that there are 61 dealership offers high charges for the products to market in India as compared to their competitors like Honda city and Ford, but you can find variation that the business charge interest rate by 4. 5 - 5. 0 % rather than other rivals make with 8% or even more as a lending options given by banking companies or building societies of other rival car producers. This service is attributed by the Volkswagen financial Services that aided to support the sales of the business with their customers.
There is next P for the marketing combine is Place that is also very vital in Brand management. The area usually referred to that place where there is option of products of company with their customers. As in worried to Volkswagen the company involved in using dealers and distributors for the purpose of the sales of the products. There are two modes for the traders to get authorised either through franchised or immediate ownership of company. For the company their network related with their dealers is very important and is preserved in a proper way because the merchandise of the company are presented through those to the clients, hence it is very important. Within the views of Kotler 2005 the company usually show their deficits and earnings both with their dealers for goal to maintain the quality of cost leadership. At the moment the Volkswagen has fine romantic relationship with their sellers in India and also require in the dealing with their products with Skoda with 61 leaders (Top Reports, 2010).
The last and fourth one P is Advertising. The campaign has variance in their objectives that must be achieved in market. The advertising is usually treated with the tool of ad. The deals for customers are added through the advert that results in the thrills among them. The purpose of campaign is to move in focus on consumers. These special offers derive from the program of non income but in change leads to the earnings for the company (Bradley, 1993). Including the Volkswagen Company in time 2009 has launched a promotion called "Pre Monsoon plan" publicized by Motor beam, 2009. This promotion is with the objective to establish the brand of company India. In India the business offered a variety of selection of services with their customers and fro this company is getting profit from the special offers of the company brand.
Pricing strategy
Pricing strategy of Volkswagen: Inside the vies of Lowe and Doole (et al 2006), for any company at the original stage of kick off in market presented with two followed strategies for costs, some may be marketing skimming price strategy and other you are market penetration rates. The company Volkswagen has choose the strategy of market penetration charges. In this strategy previously the costs were established high so that there can be coverage of primary investment this is so because the business had invested big money available to create the machine in Pune, Maharastra.
Ansoff Development Matrix Model for Strategy
Source: Kotler, P & Armstrong, G (2004)
For further examination there is conversation in accordance with the given style of Ansoff Development Matrix for Volkswagen. This model usually depicts the different regions of market development of the product of the business. This development is at relationship with company and that aspect that are extremely important for the diversification of market. The thing is the corporation has been varied as it enters into new market.
Market development
According to Reiziger (et al, 2003) "when a company took entry into a new market and unveiling themselves by producing existing products this is came up to learn as the introduction of market, and the main aim of the company is to lure the clients from the their existing competitors for the reason that exiting market i. e. new market". The company Volkswagen has got the entry into Indian market in 2007 by releasing their product Jetta, then after two years in '09 2009 the business has launched two new cars in market with the existing brand using the brand value in market these vehicles 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 brand is termed to be diversification. This strategy is commonly recognized as most high-risk one as you can find advantages 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 on the market using its own brand and relative to its brand image and with every brand it has inched higher and created sense of the demand on the market on every launch of new products. Most the company has as creativity there are four new car that has truly gone to be launched in 2012 and these new approaching products are SUVW, Couple, Up and Blue Sport (Volkswagen, 2010).
As from above conversation it is concluded that Volkswagen has got a highly effective branding strategy but there are some factors that should be taken into account for the business to make its brand VIP. In India this company is represented by three brands i. e. Audi, Skoda and Volkswagen and posses their own identification and features and an independent manner in market. The brand of Volkswagen along with Audi and Skoda provide good degree of consistency and superiority in the market within the existing value, image and position of its brand in target market of automobiles. It has additionally been figured the company adopted brand leveraging strategy. The product launched by the company are good from all aspects and given for strengthen the brand image and identification in market. Having discussion over the marketing blend all the areas of the marketing combine by the Volkswagen are taken care of in an effective way, company cover every area of price, advertising, place and product well but there may be some need to pay emphasis over the campaign and price aspect of the brand technique to get the good response in market. It is also concluded that there exists lack of commitment element in Indian market of Auto brands as compared to the other market segments. The business Volkswagen is new on the market and hence there is certainly low brand knowing of the business in market. There should be raise of recognition among all the mandatory areas of market. There must bring up some improvements and creation of the brands. Such as Indian market which is basically driven by the purchase price and prerequisites, company Volkswagen keep on its brand with the product quality factor only. That is criticised here because this strategy will generate hindrance in the brand development and wealth of the business. The factor of Cannibalization is seen as it could pay an important role for the Volkswagen way for the branding i. e. multi branding strategy and hence resulting in the brand that are new take the business away from whatever are already founded in market.
There are some ideas that the business can adopt for the effective brand management are to drive the response of the customers as they are the key hyperlink for the success of the company and there should be online and offline programmes of marketing.
The company should be involved in the Build Brand Proposal process to understand how the consumer wants to web page link up with the make of product. They must continue to look at at increasing the client loyalty.
