CHAPTER 1

INTRODUCTION
Brand awareness is a marketing concept that measures consumers' knowledge of
a brand's existence. At the aggregate brand level, it refers to the proportion of
consumers who know of the brand.
Brand awareness means the extent to which a brand associated with a particular
product is documented by potential and existing customers either positively or
negatively. Creation of brand awareness is the primary goal of advertising at the
beginning of any product's life cycle in target markets. In fact, brand awareness has
influence on buying behaviour of a buyer. All of these calculations are, at best,
approximations. A more complete understanding of the brand can occur if multiple
measures are used. Brand awareness can be measured by showing a consumer the brand
and asking whether or not they knew of it beforehand.
Brand promotion is a strategy that is commonly used in marketing in order to
increase customer loyalty, awareness of products, and sales. Instead of focusing on a
specific product or products, a company instead tries to focus on the promotion of its
brand. This strategy has been proven to be very effective in marketing, and many
companies currently employ it. Typically, companies rely on repetition in advertising in
order to familiarize customers with the brand.
Brand promotion also leads to increases in sales in many cases. Businesses hope
that by utilizing brand promotion, they can increase the number of units that are sold
and increase profitability as a result. While brand promotion does not always succeed,
businesses that do it effectively are often much more successful than their competitors.
Volkswagen Group (sometimes abbreviated VOLKSWAGEN Group and
previously known as VAG) is a German automobile manufacturing group. As of 2008,
Volkswagen was ranked as the worlds third largest motor vehicle manufacturer and
Europe's largest.

PROBLEMS FACED BY VOLKSWAGEN

Implementation of the North American Free Trade Agreement (NAFTA). Has
had a dramatic impact on the automobile industry in North America. The provisions of
the NAFTA have led to significant changes in the nature of automobile production and
purchasing within Canada, the United States, and Mexico.
IMPACT OF NAFTA ON VOLKSWAGEN
The Threat of Competition
Possibly the largest challenge facing Volkswagen as a result of the NAFTA is the
reality of increased competition in Mexico from North American competitorsnamely
General Motors, Ford, Chrysler, and Nissan. For the first eight years of the NAFTA
(until 2002), firms that do not assemble cars in Mexico were prevented from importing,
leaving these five firms to battle for market share in Mexico.
Volkswagen's market share has recovered somewhat since, amounting to 23.1%
in 1997, second only to General Motors at 26.7%. However, competition in Mexico
from firms that prior to NAFTA had not placed much emphasis on the Mexican market
remains a significant threat to the success of Volkswagen in North America.
Domestic Content Requirements
Another challenge confronting Volkswagen deals with the issue of parts
sourcing. Presently, only automobiles that meet a standard of 56% North American
content under the NAFTA rules of origin may be shipped duty free, and this standard
will be increased in another four years to a permanent level of 62.5%. Although
Volkswagen did not have a great deal of trouble meeting the initial standard of 50%
North American content largely because it already faced a 36% Mexican content
requirement prior to NAFTA, complying with the higher 56 and 62.5% standards has
and will continue to affect the firm. This requirement has forced Volkswagen to adjust
its sourcing practices, causing it to rely more heavily on parts suppliers within the U.S.
and Canada, rather than on the German sources that have historically supplied the
largest portion of parts to the Puebla plant. If Volkswagen is unable to meet the stronger

domestic content requirements, then it will face the significant competitive disadvantage
of having to pay a 2.5% duty on exports to the U.S.
Labour Issues
The impact of NAFTA provisions pertaining to labour was particularly bad,
these measures had an impact on Volkswagens operations in Mexico. The Puebla plant
had already experienced its share of labour difficulties, suffering through a major strike
that crippled production for a time in 1993. Despite the NAFTA Labour Commissions
lack of direct authority, public pressure brought to bear within Mexico in turn
influenced the Mexican government and Volkswagens standards for the treatment of
workers.
North American Opportunities
While it was facing the difficulties presented by the NAFTA, Volkswagen also
confronted opportunities for increased exports of its vehicles from Mexico to the U.S.
and Canada. The elimination of tariffs under NAFTA did allow Volkswagen to increase
its exports to the U.S. and Canada. And in fact exports did increased since NAFTA was
implemented. It is difficult to say, however, how much of this increase was due to
NAFTA, and how much was due simply to the peso crisis and to the strength of the U.S.
and Canadian economies.
It can also be argued that NAFTA has played a role in Volkswagens recent
decision to locate a new plant in North America. While there are many factors involved
in where to locate a new plant and the non-existence of tariffs make Mexico or certain
parts of the U.S. look more appealing as potential sites. It is not possible to say that this
plant would not have been proposed if it werent for NAFTA, but the fact remains that
NAFTA gave the U.S. and Mexico an additional edge in the search for possible plant
locations.

CHAPTER 2
RESEARCH METHODOLOGY
INTRODUCTION
The information has been collected by carrying out a detailed study on the topic
and comprises of the following research:

DATA COLLECTION

PRIMARY DATA
COLLECTION

SECONDARY DATA
COLLECTION

QUESTIONNAIRE

INTERVIEW

MAGAZINE

INTERNE

JOURNAL

BOOK

A research process consists of stages or steps that guide the project from its conception
through the final analysis, recommendations and ultimate actions. The research process provides
a systematic, planned approach to the research project and ensures that all aspects of the
research project are consistent with each other. Research studies evolve through a series of
steps, each representing the answer to a key question.
This chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research. The techniques and concepts

used during primary research in order to arrive at findings; which are also dealt with and lead to
a logical deduction towards the analysis and results.

OBJECTIVES OF STUDY
To study the impact of Volkswagen Group
To know the customer profile.
To know the consumer behaviour regarding cars on following parameter:
To analyse the factors that influences the customer before buying a car.

LIMITATIONS:
Generally, the respondents were busy in their work and were not interested in
responding.
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.

DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data collection. The
common factor in all varieties of the questionnaire method is this reliance on verbal responses
to questions, written or oral. Attempt was made to ensure that questionnaire was easy
to read and understand to all spectrums of people in the sample. It was also important
as researcher to respect the samples time and energy hence the questionnaire was designed in
such a way, that its administration would not exceed 4-5 mins. These questionnaires were
personally administered.

The study is conducted empirically using both primary and secondary data:

a) Primary data collection:

-

Meaning: It is an information/ data directly collected from respondents. It is collected

form of information.

Purpose: To get first hand and direct information from the original source.

Sources: Company (personal interview), customers (questionnaire).

Primary Data is collected with the help of well-structured questionnaire. Around
50 potential customers were surveyed to understand the brand awareness and promotion
level of VOLKSWAGEN group in an around Navi-Mumbai. All the persons interviewed
were in the age group above 20 years. It has been deliberately decoded to conduct the
survey among this age group because they are the people who are generally looking
ahead for the purchase of four-wheelers. Many of these persons interested are either
businessman or professionals; few of them are corporate managers also.

b) Secondary data collection:

-

Meaning: It is a data collected from published and recorded sources. It is created form
of information.

Purpose: To get additional information this will support primary data.

Sources: Books, newspapers, magazines, internet.

Secondary data is collected from VOLKSWAGEN groups website and by going
through their corporate records; brochures and annual reports of the company along
with their newsletters were used to substantiate the information.
SAMPLING
TARGET POPULATION
The target population is the population I want to make conclude an ideal situation; the
sampling frames to matches the target population. Specific resources see that is the object or
target of investigation. The audience defined in age, background, ability, and preferences,
among other things, for which a given course of instruction is intended.
6

SAMPLE SIZE:
This involves figuring out how many samples one need.
The numbers of samples you need are affected by the following factors:
How you plan to analyze your data
How variable your data are or are likely to be
How precisely you want to measure change or trend
The number of years over which you want to detect a trend
How many times a year you will sample each point.

CHAPTER 3
CONCEPTUAL FRAMEWORK
MEANING OF BRAND AWARENESS:
The prerequisite of fame and fortune is acknowledgement. Similarly, the first
step towards becoming a powerful brand is a high level of awareness among current and
potential customers. Brands like Tata, Gillette, Dettol, Coca-Cola etc. enjoy a high level
of awareness among consumers. However, the true measure of brand awareness is not
just knowing the brand name but also recognizing the entire gamut of products and
services that the brand covers. Brand awareness is defined as the ability of a potential
buyer to recognize or recall that a brand is a member of a certain product category.
Thus, a brand name without awareness is virtually a non-existent brand, as its purchase
decision process is similar to that of a unbranded or commoditized product. Since
awareness is a prerequisite for both potential profitability and brand equity its study is
of great significance for all interested in brands and branding.
CREATING BRAND AWARNESS:
Establishing the desired level of brand awareness and recognition is a primary
goal of brand strategist. A major challenge faced while building awareness is that the
customers not only recall the brand name, but should also be able to establish a link
between the brand name and respective product category. Some of the techniques for
creating and ebhancing brand awareness are as follows:
IMPORTANCE OF BUILDING BRAND AWARNESS:
Awareness is the first step towards genuine brand building. A strong brand cannot
be built unless consumers are aware of its presence in the market and the range of
product and services it carries. Brand awareness provides the following benefits for a
company:

Basis for building brand equity:

Brand awareness is one of the constituents of brand equity. A highly recognised
brand name adds value to the brand. Customers directly relate fame to value, quality and
performance. A well-known brand name signals prestige while premium global brand is
a status symbol. Thus, more than actual utility it is the symbolism, attached to high
awareness levels, that underline its importance. Exposure to repetitive communication
messages, makes the consumers acknowledge brand presence.
Consumers use the brand name as a tag to informational chunk, which allows
them to store and retrieve brand related information. During this phase of brand life
cycle, the objective of entire brand communication effort is to create awareness. It is
only since when people are aware of the brand that they become receptive to brand
messages communication product benefits and superiors values and can be persuaded to
purchase the brand.

DEVELOPING PROMOTIONAL STRATEGY

Deciding on a marketing communications strategy is one of the primary roles of
the marketing manager and this process involves some key decisions about how who the
customer is, how to contact the consumer them, and what the message should be. These
questions can be answered using a three stage process, which is equally relevant for all
elements of the marketing mix:
1. SEGMENTATION:
Dividing potential customers into discrete groups is vital to increase the success
rate of any communications message. If one dont know who you are talking to, its
unlikely you will get much of a response. Who are the potential customers? How many
sub-groups should you divide them into? How do these groups differ? Hopefully, most
of this information will be readily available from your market research.
What are their media consumption habits? What are their expectations and
aspirations? What are their priorities? How much disposable income do they have?
9

What are their buying habits? Are they likely to have children? How many holidays to
they take a year? How much money do they give to charity? How can you help them?
This information can be obtained in a variety of ways, from commissioning a specialist
market research agency, to examining sales patterns or social media interactions.
Commonly used market research methods include:
-

Sales analysis and buying patterns

Questionnaires
Desk research
Website statistics, especially social media
Focus groups
Face-to-face interviews
Specialist market research companies
Once built up an accurate picture of the customer, it's time to get their attention.

2. TARGETING
For the purposes of advertising, targeting is the process of communicating with the right
segment(s) and ensuring the best possible response rate. The methods use to target the
audience must relate to the marketing plan objectives try to generate awareness of a new
product, or attract business away from a competitor
METHODS OF MARKETING COMMUNICATIONS
Advertising is just one element of the marketing communication arsenal, which can be
divided into the following areas:
Advertising a mass media approach to promotion
Outdoor
Business directories
Magazines / newspapers
TV / cinema
Radio
Newsagent windows
10

 Sales promotion - price / money related communications

Coupons
Discounts
Competitions
Loyalty incentives
Public relations - using the press to your advantage
Press launches
PR events
Press releases
Personal selling one to one communication with a potential buyer
Salesmen
Experiential marketing
Dealer or showroom sales activities
Exhibitions
Trade shows
Direct marketing - taking the message directly to the consumer
Mail order catalogues
Bulk mail
Personalised letters
Email
Telemarketing
Packaging design
11

 Digital marketing new channels are emerging constantly

Company websites
Social media applications such as Facebook or Twitter
Blogging
YouTube
Mobile phone promotions using technology such as bluetooth
E-commerce.

12

CHAPTER 4
COMPANY PROFILE
ABOUT VOLKSWAGEN (AG) GROUP:
Volkswagen Group (sometimes abbreviated to VOLKSWAGEN Group) is a
German automobile manufacturing group. As of 2010, Volkswagen was ranked as the
worlds third largest motor vehicle manufacturer and Europe's largest.
The Group's parent company Volkswagen, usually abbreviated to Volkswagen
AG, develops vehicles and components for all marques of the whole group, and also
manufactures complete vehicles for the Volkswagen Passenger Cars and Volkswagen
Commercial Vehicles marques. Volkswagen Group is divided into two primary
divisions: the Automotive Division, and the Financial Services Division. The Group
consists of 342 Group companies, which are involved in either vehicle production or
other related automotive services. VOLKSWAGEN passenger cars is Volkswagen
Group's original marque, and the Group's other major subsidiaries include passenger car
marques such as Volkswagen, Skoda, Audi, Bentley Lamborghini and Porsche.
Volkswagen AG also has operations in commercial vehicles, owning
Volkswagen Commercial Vehicles, along with a controlling stake in the Swedish truck
and diesel engine manufacturer Scania AB, and a 55.9% stake in MAN SE. Volkswagen
AG and Porsche SE reached an agreement in August 2009 that the merger of Porsche
SE with Volkswagen would be completed in the course of 2011. Rooted in Europe, the
Volkswagen Group operates worldwide. In 2010, Volkswagen Group's largest single
country market was China with 1,924,649 units delivered, followed by Germany with
1,038,596 units. Divided by regions, Western Europe is the largest market of the
Volkswagen Group with 2,902,948 units in 2010, followed by Asia-Pacific with
2,145,787 units and South America with 907,778 units delivered in 2010.

13

COMPANIES OPERATED BY/ FUNCTIONING UNDER VOLKSWAGEN

GROUP:

VOLKSWAGEN

Volkswagen means "people's car" in German. Its current tagline or slogan is Das
Auto Volkswagen was originally founded in 1937 by the Nazi trade union, the German
Labour Front In the early 1930s German auto industry was still largely composed of
luxury models, and the average German rarely could afford anything more than a
motorcycle. Seeking a potential new market, some car makers began independent
"peoples' car" projects Mercedes' 170H, Adler's AutoBahn, Steyr 55, Hanomag 1,3L,
among others. The trend was not new, as Bla Barnyi is credited with having
conceived the basic design in the middle 1920s. Josef Ganz developed the Standard
Superior (going as far as advertising it as the "German Volkswagen").Also, in
Czechoslovakia, the Hans Ledwinka's penned Tatra T77, a very popular car amongst the
German elite, was becoming smaller and more affordable at each revision. In 1933, with
many of the above projects still in development or early stages of production, Adolf
Hitler declared his intentions for a state-sponsored "Volkswagen" program. Hitler
required a basic vehicle capable of transporting two adults and three children at
100 km/h (62 mph). The "People's Car" would be available to citizens of the Third
Reich through a savings scheme at 990 Reich mark, about the price of a small
motorcycle (an average income being around 32RM a week).
Despite heavy lobbying in favour of one of the existing projects, Hitler chose to
sponsor an all-new, state-owned factory. The engineer chosen for the task was
Ferdinand Porsche. Then an already famed engineer, Porsche was the designer of the
14

Mercedes 170H, and worked at Steyr for quite some time in the late 1920s. When he
opened his own design studio he landed two separate "Auto fur Jedermann" (car for
everybody) projects with NSU and Zundapp, both motorcycle manufacturers. Neither
project come to fruition, stalling at prototype phase, but the basic concept remained in
Porsche's mind time enough, so on 22 June 1934, Dr. Ferdinand Porsche agreed to
create the "People's Car" for Hitler.
Changes included better fuel efficiency, reliability, ease of use, and
economically efficient repairs and parts. The intention was that ordinary Germans
would buy the car by means of a savings scheme which around 336,000 people
eventually paid into. Prototypes of the car called the "KdF-Wagen appeared from 1936
onwards (the first cars had been produced in Stuttgart). The car already had its
distinctive round shape and air-cooled, flat-four, rear-mounted engine. The
VOLKSWAGEN car was just one of many KdF programs which included things such
as tours and outings. The prefix Volks ("People's") was not just applied to cars, but
also to other products in Europe; the "Volksempfnger" radio receiver for instance. On
28 May 1937, the was established by the Deutsche Arbeitsfront. It was later renamed
"Volkswagen work GmbH" on 16 September 1938.
Volkswagen was in serious trouble by 1973.The Type 3 and Type 4 models had
sold in much smaller numbers than the Beetle and the NSU-based K70 also failed to
woo buyers. Beetle sales had started to decline rapidly in European and North American
markets. The company knew that Beetle production had to end one day, but the
conundrum of replacing it had been a never-ending nightmare. VOLKSWAGEN's
ownership of Audi / Auto Union proved to be the key to the solution with its expertise
in front-wheel drive, and water-cooled engines which Volkswagen so desperately
needed to produce a credible Beetle successor. Audi influences paved the way for this
new generation of Volkswagens, known as the Passat, Scirocco, Golf and Polo.
First in the series was the Volkswagen Passat (Dasher in the U.S.), introduced in
1973, a fastback version of the Audi 80, using many identical body and mechanical
parts. Estate/wagon versions were available in many markets. In Europe, the
estate/wagon version dominated in market share for many years.

15

In spring 1974, the Scirocco followed. The coupe was designed by Giorgetto
Giugiaro. Based on the platform of the not yet released Golf, it was built at Karmann
due to capacity constraints at Volkswagen.
The pivotal model emerged as the Volkswagen Golf in 1974, marketed in the
United States and Canada as the Rabbit for the 1st generation (19751985) and 5th
generation (20062009). Its angular styling was designed by the Italian Giorgetto
Giugiaro). Its design followed trends for small family cars set by the 1959 Mini the
Golf had a transversely mounted, water-cooled engine in the front, driving the front
wheels, and had a hatchback, a format that has dominated the market segment ever
since. Beetle production at Wolfsburg ended upon the Golf's introduction. It continued
in smaller numbers at other German factories (Hanover and Emden) until 1978, but
mainstream production shifted to Brazil and Mexico.
In 1975, the Volkswagen Polo followed. It was a re-badged Audi 50, which was
soon discontinued in 1978. The Polo became the base of the Volkswagen Derby, which
was introduced 1977. The Derby was for all intents and purposes a three-box design of
the Polo. After a second model generation, the Derby was discontinued in 1985. Passat,
Sirocco, Golf and Polo shared many character defining features, as well as parts and
engines. They built the basis for Volkswagen's turn-around.
SWOT ANALYSIS
Internal Environment Analysis (strengths/weaknesses Analysis)
This is one thing to decide attractive opportunities and another to have the
competencies to succeed in these opportunities. Each business needs to evaluate its
internal strengths and weaknesses periodically. It can do so by using a form like the one
shown in the marketing Memo Checklist for Performing Strength/Weaknesses
Analysis. Managementor an outside consultantreviews marketing, financial,
manufacturing and organizational competencies and rates each factor as a major
strength, minor strength, neutral factor, minor weakness, or major weakness.
Clearly, the business does not have to correct all its weakness, nor should it gloat
about all its strengths. The big question is whether the business should limit itself to
those opportunities where it might have to acquire or develop certain strengths. For
16

example, managers at Texas Instruments (TI) split between those who want TI to stick
to industrial electronics (where it has clear strength) and those who want the company to
continue introducing consumer electronic products (where it lacks some required
marketing strength).
Sometimes a business does poorly not because its departments lack the required
strengths but because they do not work together as a team. In one major electronics
company, the engineers look down on the salespeople as engineers who couldnt make
it, and the salespeople look down on the service people as salespeople who couldnt
make it. It is therefore critically important to assess interdepartmental working
relationships as part of the internal environmental audit
Strengths
1) VOLKSWAGEN has boosted quality more than any other carmaker in the past five
years, cutting defects by 60%.
2) Their "family culture", no leading brand.
3) The VOLKSWAGEN group has the flagship of some of the biggest and most
trustworthy brands in the automobile industry.
4) Strong Procurement department with Sustainability in Supplier Relationships.
5) Strong CSR activities bringing together wealth creation and value orientation.
Weaknesses
1) VOLKSWAGEN still trails Toyota, Mercedes, Nissan, and Honda in overall quality.
2) VOLKSWAGEN's cost of capital is relatively higher than Daimler's.
3) VOLKSWAGEN bungled its communications with investors.
4) It was late in inculcating the policies of Lean and JIT approach that Toyota was using
for many years.
5) Bad publicity due to being sued by GM.

17

Opportunities
1) Growth potential in the American and Asian markets.
2) Due to its very good results on the stock exchange, VOLKSWAGEN may expect to
attract numerous new investors
3) Potential decrease in Cost with their Production Strategy.
Threats
1) A softening in auto sales in Europe and South America.
2) Risk of self-cannibalization between VOLKSWAGEN's brands, like top of the line
VOLKSWAGEN's models and bottom of the line Audi's.
3) Risk of brand dilution owing to confusion between the VOLKSWAGEN Passat and
the Audi A4.
4) Ever increasing fuel costs.
MARKETING MIX:
1. PRODUCT
VOLKSWAGEN product mix constitutes a wide range of products that appeal
primarily to worldwide car lovers. Products have a decided approach towards Indian
environment like Indian roads and respectively same towards other countries. Most of
the cars designs have been adapted to such situation of undeveloped roadways. Their
merchandising includes stuff like car accessories and so on.
2. PRICE
Considering that VOLKSWAGEN knows it major customer lies in the bracket of
20-55, it has tried to derive a policy whereby it can satisfy all its customers. From the
time it first started its operations, there has been only minor changes in the pricing
policy of VOLKSWAGEN. The changes have been more due to the government taxes
than anything else.
3. PLACE
18

The strategy VOLKSWAGEN has adopted is to place a vehicle in every possible

location where some business can be generated. This is a prime factor in determining
the success of a retail chain. VOLKSWAGEN looks to cater to their target market with
strategically located outlets. Their outlets are generally located in High Street, SUPPLY
stations, etc.

4. PROMOTION
VOLKSWAGEN is involved in all the areas of serious consumer passion like:
Tie- ups: Besides that many of VOLKSWAGEN also tie up lot of the young brands. So
they have a contest going on with Levis, another one with Scotty, Liril, latest one with
Airtel Friends.
Association with movies: Many of Volkswagens can be seen in movies like
Bodyguard and many more.
Sales

Promotion:

VOLKSWAGEN

uses

special

program,

for

rewarding

VOLKSWAGENs customers. It is a loyalty program to gain new customers and retain

the existing ones.
5. PROCESS
The ordering and delivery process in VOLKSWAGEN is made ease currently as
compared to prior. It is made from companys part rather than customers.
6. PHYSICAL EVIDENCE
Logo, Image, Brand: VOLKSWAGEN has used steel silver colour in its logo. It stands
for leadership, vitality, passion. The STEEL SILVER implies its involvement. Cars is
noticeable larger in the logo to denote that VOLKSWAGEN pioneered the car concept
in all world way back in 1996. The font looks as though the letters have congealed.
HISTORY

19

Adolf Hitler had a keen interest in cars even though he did not like to drive. In
1933, shortly after taking over as leader of Germany, he teamed up with Ferdinand
Porsche to make changes to Porsche's original 1931 design to make it more suited for
the working man. Hans Ledwinka discussed his ideas with Ferdinand Porsche, who
used many Tatra design features in the 1938 "KdF-Wagen", later known as the
VOLKSWAGEN Kferor Volkswagen Beetle. When Chrysler brought out the 1934
DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the
Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for
Hitler's mother.
After some time, they planned to change some features regarding various
aspects. These changes included better fuel efficiency, reliability, ease-of-use, and
economically efficient repairs and parts. The intention was that ordinary Europeans
would buy the car by means of a savings scheme "Save five Marks a week, if you want
to drive your own car", which around 336,000 people eventually paid into. The
VOLKSWAGEN car was just one of many KdF programmes which included things
such as tours and outings. The prefix "Volks" ("People's") was not just applied to cars,
but also to other products in Europe; the "Volksempfnger" radio receiver for instance.
On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was
established by the Deutsche Arbeitsfront. It was later renamed "Volkswagen werk" on
16 September 1938.
Erwin Komenda, the longstanding Auto Union chief designer, developed the car
body of the prototype, which was recognizably the Beetle we know today. It was one of
the first to be evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it
would be a success. The building of the new factory started 26 May 1938 in the new
town of KdF-Stadt, now called Wolfsburg, which had been purposely built for the
factory workers. This factory only produced a handful of cars by the time war started in
1939. None were actually delivered to any holder of the completed saving stamp books,
though one Type 1 Cabriolet was presented to Hitler on 20 April 1938 (his 49th
birthday).
At the times of 1st world War, Volkswagen War meant production changed to
military

vehicles,

the

Type

82

Kbelwagen

"Bucket

car"

utility

vehicle

VOLKSWAGEN's most common wartime model, and the amphibious Schwimmwagen

20

which were used to equip the German forces. By 1946 the factory was producing 1,000
cars a month, a remarkable feat considering it was still in disrepair. Due to roof and
window damage, rain stopped production and steel to make the cars had to be bartered
for new vehicles.
Volkswagens were first exhibited and sold in the United States in 1949, but only
sold two units in America that first year. On its entry to the U.S. market, the
VOLKSWAGEN was briefly sold as a "Victory Wagon". Volkswagen of America was
formed in April 1955 to standardize sales and service in the United States. Production of
the Type 1 Volkswagen Beetle increased dramatically over the years, the total reaching
one million in 1955.
Sales soared due in part to the famous advertising campaigns by New York
advertising agency Doyle, Dane Bernbach. Led by art director Helmut Krone, and
copywriters Julian Koenig and Bob Levinson, Volkswagen ads became as popular as the
car, using crisp layouts and witty copy to lure the younger, sophisticated consumers
with whom the car became associated. Despite the fact it was almost universally known
as the Beetle (or the Bug), it was never officially labeled as such by the manufacturer,
instead referred to as the Type 1. The first reference to the name Beetle occurred in U.S.
advertising in 1968, but not until 1998 and the Golf-based New Beetle would the name
be adopted by Volkswagen.
Volkswagen was in serious trouble by 1973. VOLKSWAGEN's ownership of
Audi / Auto Union proved to be the key to the problem - with its expertise in frontwheel drive, and water-cooled engines which Volkswagen so desperately needed to
produce a credible Beetle successor. Audi influences paved the way for this new
generation of Volkswagens, known as the Polo, Golf and Passat.

SKODA:

21

Skodas Logo
Skoda Auto is one of the largest car manufacturers in Central Europe. In 2010,
762,500 cars were sold worldwide, a record for the company. Skoda Auto, more
commonly known as Skoda, is an automobile manufacturer based in the
Czech Republic. Skoda became a wholly owned subsidiary of the Volkswagen
Group in 2000 positioned as the entry brand to the group. Its total global
sales reached 684,226 cars in 2009 and 85,000 for the month of March
2011.

Skoda Works was established as an arms manufacturer in 1859. The origins of

what became Skoda Auto go back to the early 1890s where, like many long-established
car manufacturers, a company started out manufacturing bicycles. It was 1894, and 26year old Vclav Klement, who was a bookseller in Mlad Boleslav, in today's Czech
Republic, which was then part of Austria-Hungary, was unable to obtain spare parts to
repair his German bicycle. Klement returned his bicycle to the manufacturers, Seidel
and Neumann, with a letter, in Czech, asking them to carry out repairs, only to receive a
reply, in German, stating: "If you would like an answer to your inquiry, you should try
writing in a language we can understand".
A disgusted Klement, despite not having technical experience, decided to start a
bicycle repair shop, which he and Vclav Laurin opened in 1895 in Mlada Boleslav.
Before going into business partnership with Klement, Laurin was established as a
bicycle manufacturer in the nearby town of Turnover. In 1898, after moving to their
newly-built factory, the pair bought a Werner "motorcyclist", which was produced by
French manufacturer Werner Brothers. Laurin & Klement's first motorcyclist, powered
by an engine mounted on the handlebars driving the front wheels, proved dangerous and
unreliablean early incident on it cost Laurin a front tooth. To design a safer machine
22

with its structure around the engine, the pair wrote to German ignition specialist Robert
Bosch for advice on a different electromagnetic system. The pair's new Salvia
motorcycle made its debut in 1899.
The perception of Skoda in Western Europe has changed completely since the
takeover by VOLKSWAGEN, in stark comparison to the reputation of the cars
throughout the 1980soften described as 'the laughing stock' of the automotive world.
As technical development progressed and attractive new models were brought to
market, Skodas image was initially slow to improve. In the UK, a major turnabout was
achieved with the ironic "It is a Skoda, honest" campaign, which was started in the early
2000s. In a 2003 advertisement on British television, a new employee on the production
line is fitting Skoda badges on the car bonnets. When some attractive looking cars come
along he stands back, not fitting the badge, since they look so good they cannot be
Skodas.
This market campaign worked by confronting Skodas image problem head-on
a tactic which marketing professionals regard as high risk. Before the advertising
campaign, it was common to hear tour guides in Bratislava making jokes about the
Skoda, saying "How do you double the value of a Skoda? Fill up the gas tank!" If the
Fabia and Octavia had been anything less than excellent cars the campaign might have
backfired badly. By 2005 Skoda was selling over 30,000 cars a year in the UK, a market
share of over 1%. For the first time in its UK history, a waiting list developed for
deliveries by Skoda. Skoda owners in the UK have consistently ranked the brand at or
near the top of the J.D. Power customer satisfaction survey during the 2000s.

AUDI LIMITED:
23

Audis Logo
Audi AG is a German automobile manufacturer, from supermini to crossover
SUVs in various body styles and price ranges that are marketed under the Audi brand
positioned as the premium brand within the Volkswagen Group.
The company is headquartered in Ingolstadt, Germany, and has been a wholly
owned 99.55% subsidiary of Volkswagen AG since 1966, following a phased purchase
of its predecessor, Auto Union, from its former owner, Daimler-Benz. Volkswagen
relaunched the Audi brand with the 1965 introduction of the Audi F103 series.
The company name is based on the surname of the founder August Horch, his
surname meaning listen in Germanwhich, when translated into Latin, becomes Audi.
The four rings each represent individual car companies that banded together to create
the union.

Audi AG today
Audi plant in Aurangabad, India

24

Audi's sales grew strongly in the 2000s, with deliveries to customers increasing
from 653,000 in 2000 to 1,003,000 in 2008. The largest sales increases came from
Eastern Europe (+19.3%), Africa (+17.2%) and the Middle East (+58.5%). China in
particular has become a key market, representing 108,000 out of 705,000 cars delivered
in the first three quarters of 2009.
One factor for its popularity in China is that Audis have become the car of choice
for purchase by the Chinese government for officials, and purchases by the government
are responsible for 20% of its sales in China. As of late 2009, Audi's operating profit of
1.17-billion ($1.85-billion) made it the biggest contributor to parent Volkswagen
Group's nine-month operating profit of 1.5-billion, while the other marques in Group
such as Bentley and Seat had suffered considerable losses.
Audi has 7 manufacturing plants around the world: Ingolstadt, Germany since
1969, Neckarsulm, Germany since 1969, Bratislava, Slovakia since 2005, Gyor,
Hungary, Changchun, China since 1995, Brussels, Belgium since 2007, and
Aurangabad, India since 2006. In 1986, as the Passat-based Audi 80 was beginning to
develop a kind of "grandfather's car" image, the type 89 was introduced.
This completely new development sold extremely well. However, its modern and
dynamic exterior belied the low performance of its base engine, and its base package
was quite spartan (even the passenger-side mirror was an option.) In 1987, Audi put
forward a new and very elegant Audi 90, which had a much superior set of standard
features. In the early 1990s, sales began to slump for the Audi 80 series, and some basic
construction problems started to surface.

Audi R8

25

In the early part of the 21st century, Audi set forth on a German racetrack to
claim and maintain several world records, such as top speed endurance. This effort was
in-line with the company's heritage from the 1930s racing era Silver Arrows.
Through the early 1990s, Audi began to shift its target market upscale to
compete against German automakers Mercedes-Benz and BMW. This began with the
release of the Audi V8 in 1990. It was essentially a new engine fitted to the Audi
100/200, but with noticeable bodywork differences. Most obvious was the new grille
that was now incorporated in the bonnet.
By 1991, Audi had the four-cylinder Audi 80, the 5-cylinder Audi 90 and Audi
100, the turbocharged Audi 200 and the Audi V8. There was also a coupe version of the
80/90 with both 4- and 5-cylinder engines.
Although the five-cylinder engine was a successful and robust powerplant, it
was still a little too different for the target market. With the introduction of an all-new
Audi 100 in 1992, Audi introduced a 2.8L V6 engine. This engine was also fitted to a
face-lifted Audi 80 (all 80 and 90 models were now badged 80 except for the USA),
giving this model a choice of four-, five-, and six-cylinder engines, in Saloon, Coup
and Cabriolet body styles.
The five-cylinder was soon dropped as a major engine choice; however, a
turbocharged 230 hp (169 kW) version remained. The engine, initially fitted to the 200
quattro 20V of 1991, was a derivative of the engine fitted to the Sport Quattro. It was
fitted to the Audi Coup, and named the S2 and also to the Audi 100 body, and named
the S4. These two models were the beginning of the mass-produced S series of
performance cars.
Audi contended, prior to findings by outside investigators that the problems
were caused by driver error, specifically pedal misapplication. Subsequently, the
National Highway Traffic Safety Administration (NHTSA) concluded that the majority
of unintended acceleration cases, including all the ones that prompted the 60 Minutes
report, were caused by driver error such as confusion of pedals. CBS did not
acknowledge the test results of involved government agencies, but did acknowledge the
similar results of another study. With the series of recall campaigns, Audi made several
26

modifications; the first adjusted the distance between the brake and accelerator pedal on
automatic-transmission models. Later repairs, of 250,000 cars dating back to 1978,
added a device requiring the driver to press the brake pedal before shifting out of park.
A legacy of the Audi 5000 and other reported cases of sudden unintended acceleration
are intricate gear stick patterns and brake interlock mechanisms to prevent inadvertent
shifting into forward or reverse.

BENTLEY MOTORS LIMITED:

Bentley's winged "B" badge and bonnet (hood) ornament

Bentley Motors Limited is a British manufacturer of automobiles founded on 18
January 1919 by Walter Owen Bentley known as W.O. Bentley or just "W O". Bentley
had been previously known for his range of rotary aero-engines in World War I, the
most famous being the Bentley BR1 as used in later versions of the Sop with Camel.
After the war W. O. Bentley designed and made production cars that won the 24 hours
of Le Mans in 1924 and following models which repeated those successes each June
1927, 1928, 1929 and 1930.
Purchased by Rolls-Royce in 1931, when production was moved from London
to Derby and later to Crewe, this business has been owned by the Volkswagen Group of
Germany since 1998. The business is still based in Crewe, Cheshire, England with their
Central Production Facilities there.
A group of wealthy British motorists known as the "Bentley Boys"Woolf
Barnato, Sir Henry "Tim" Birkin, steeplechaser George Duller, aviator Glen Kids ton,
automotive journalist S.C.H. "Sammy" Davis, and Dr Dudley Benfield among them
kept the marque's reputation for high performance alive.

27

Bentley, located at Cricklewood, north London, was noted for its four
consecutive victories at the 24 hours of Le Mans from 1927 to 1930.In March 1930,
during the Blue Train Races, Woolf Barnato raised the stakes on Rover and its Rover
Light Six, having raced and beat for the first time, to better that record with his 6-litre
Bentley Speed Six on a bet of 100.
He drove against the train from Cannes to Calais, then by ferry to Dover, and
finally London, travelling on public highways, and won; the H.J. Mulliner-bodied
formal saloon he drove during the race as well as a streamlined fastback "Sportsman
Coup" by Gurney Nuttinghe took delivery of on 21 May 1930became known as
the "Blue Train Bentleys"; the latter is regularly mistaken for or erroneously referred to
as being the car that raced the Blue Train, while in fact Barnato named it in memory of
his race.
In 2002, Bentley presented Queen Elizabeth II with an official State Limousine
to celebrate her Golden Jubilee. In 2003, Bentley's 2-door convertible, the Bentley
Azure, ceased production, and Bentley introduced a second line, Bentley Continental
GT, a large luxury coup powered by a W12 engine built in Crewe. Demand had been
so great that the factory at Crewe was unable to meet orders despite an installed
capacity of approximately 9,500 vehicles per year; there was a waiting list of over a
year for new cars to be delivered. Consequently, part of the production of the new
Flying Spur, a four-door version of the Continental GT, was assigned to the Transparent
Factory Germany, where the Volkswagen Phaeton luxury car is also assembled. This
arrangement ceased at the end of 2006 after around 1,000 cars, with all car production
reverting to the Crewe plant. In April 2005, Bentley confirmed plans to produce a four
seat convertible modelthe Azure, derived from the Arnage Drophead Coup prototype
at Crewe beginning in 2006.
The Continental GTC, was also presented. These two models were successfully
launched in late 2006. A limited run of a Zagato modified GT was also announced in
March 2008, dubbed "GTZ". A new version of the Bentley Continental was introduced
at the 2009 Geneva Auto Show: The Continental Supersports. This new Bentley is a
supercar combining extreme power with environmentally friendly FlexFuel technology,
capable of using petrol gasoline and biofuel E85 ethanol.Bentley sales continued to
increase, and in 2005 8,627 were sold worldwide, 3,654 in the United States.
28

In 2007 the 10,000 cars-per-year threshold was broken for the first time with
sales of 10,014. For 2007, a record profit of 155 million was also announced. Bentley
reported a sale of about 7,600 units in 2008. However, its global sales plunged 50 per
cent to 4,616 vehicles in 2009 with the U.S. deliveries dropped 49% to 1,433 vehicles
and it suffered an operating loss of 194 million, compared with a profit of 10 million
in 2008. Vehicle sales in 2011 rose 37% to 7,003 vehicles, with the new Continental GT
accounted for over one-third of total sales. The current workforce is about 4,000 people.
The business is expected to announce a profit in 2011 for the first time since 2008.

AUTOMOBILI LAMBORGHINI

Automobili Lamborghini commonly referred to as Lamborghini is an Italian car

manufacturer. The company was founded by manufacturing magnate Ferruccio
Lamborghini in 1963, with the objective of producing a refined grand touring car to
compete with established offerings from marques like Ferrari.
The company's first models were released in the mid-1960s, and were noted for
their refinement, power and comfort. Lamborghini gained wide acclaim in 1966 for the
Miura sports coup, which established mid-engine design as the standard layout for
high-performance cars of the era. After a decade of rapid growth, hard times befell the
company in the mid-1970s, as sales plunged in the wake of the 1973 world financial
downturn and oil crisis. After going through bankruptcy and three changes in
ownership, Lamborghini came under the corporate umbrella of the Chrysler Corporation
29

in 1987. The American company failed to return the automaker to profitability and sold
it to Indonesian interests in 1994. Lamborghini's lack of success continued through the
1990s, until the company was sold in 1998 to Audi, a subsidiary of the Volkswagen
Group a German automotive concern.
Audi's ownership marked the beginning of a period of stability and increased
productivity for Lamborghini, with sales increasing nearly tenfold over the course of the
2000s, peaking in record sales in 2007 and 2008. The world financial crisis in the late
2000s negatively affected luxury car makers worldwide, and saw Lamborghini's sales
drop back to pre-2006 levels.
Assembly of Lamborghini cars continues to take place at the automaker's
ancestral home in Sant'Agata Bolognese, where engine and automobile production lines
run side-by-side at the company's single factory. Fewer than 3,000 cars roll off the
production line each year. The flagship V12-powered Murcilago coup and roadster
were discontinued at the end of 2010. Its successor, the Lamborghini Aventador, was
released on 28 February 2011.
Automobili Lamborghini was founded by Ferruccio Lamborghini, the child of
viticulturists from the township of Renazzo di Cento, Province of Ferrara, in the EmiliaRomagna region of Northern Italy. After serving as a mechanic in the Regia
Aeronautical during World War II, Lamborghini went into business building tractors out
of leftover military hardware from the war effort. By the mid-1950s, Lamborghini's
tractor company, Lamborghini Trattori S.p.A., had become one of the largest
agricultural equipment manufacturers in the country. He was also the owner of a
successful gas heater and air conditioning manufacturer.
Lamborghini's wealth allowed him to cultivate a childhood interest in cars,
owning a number of luxury automobiles including Alfa Romeos, Lancias, Maseratis,
and a Mercedes Benz. He purchased his first Ferrari, a 250GT, in 1958, and went on to
own several more. Lamborghini was fond of the Ferraris, but considered them too noisy
and rough to be proper road cars, likening them to repurposed track cars. Lamborghini
decided to pursue an automobile manufacturing venture, with the goal of bringing to life
his vision of a perfect grand tourer.

30

Prior to founding his company, Lamborghini had commissioned the engineering

firm Societ Autostar to design a V12 engine for use in his new cars. Lamborghini
wanted the engine to have a similar displacement to Ferrari's 3-litre V12; however, he
wanted the engine to be designed purely for road use, in contrast to the modified racing
engines used by Ferrari in its road cars. Autostar was led by Giotto Bizzarrini, a member
of the "Gang of Five" of Ferrari engineers, who had been responsible for creating the
famous Ferrari 250 GTO, but left the company in 1961 after founder Enzo Ferrari
announced his intention to reorganize the engineering staff.
The engine Bizzarrini designed for Lamborghini had a displacement of 3.5 litres,
a 9.5:1 compression ratio, and a maximum output of 360 bhp at 9800 rpm. Lamborghini
was displeased with the engine's high revolutions and dry-sump lubrication system, both
characteristic of the racing engines he specifically did not wish to use; when Bizzarrini
refused to change the engine's design to make it more "well-mannered", Lamborghini
refused to pay the agreed-upon fee of 4.5 million Italian lire (plus a bonus for every unit
of brake horsepower the engine could produce over the equivalent Ferrari engine).
Lamborghini did not fully compensate the designer until ordered to do so by the courts.
The first Lamborghini chassis design was created by Italian chassis engineer
Gian Paolo Dallara of Ferrari and Maserati fame, together with a team that included
Paolo Stanzani (then a recent college graduate) and Bob Wallace (a New Zealander who
was known at Maserati for his keen sense of chassis handling and excellent feedback
and developmental skills). The body was styled by the then-relatively unknown designer
Franco Scaglione, who was selected by Ferruccio Lamborghini after passing over highly
regarded names including Vignale, Ghia, Bertone, and Pininfarina. Lamborghini was
unimpressed with the quality of the 350GTV, and ordered a complete redesign for the
firm's first production car.
The Lamborghini 350GTV was designed and built in only four months, in time
for an October unveiling at the 1963 Turin Motor Show. Due to the ongoing
disagreement with engine designer Giotto Bizzarrini, a working powerplant was not
available for the prototype car in time for the show. The car went on display in Turin
without an engine under its hood; according to lore, Ferruccio Lamborghini had the
engine bay filled with bricks so that the car would sit at an appropriate height above the

31

ground, and made sure that the bonnet stayed closed to hide the missing engine. The
motoring press gave the 350GTV a warm response.
The Automobili Lamborghini was officially incorporated on 30 October 1963.
Ferruccio Lamborghini purchased a 46,000 square metres (500,000 sq ft) property at
Via Modena, 12, in the township of Sant'Agata Bolognese, less than 30 kilometres
(19 mi) from Cento; deep in the cradle of Italy's automobile industry, the location
provided easy access to skilled labour and facilities. The township was chosen as the
location for the factory due to a favorable financial agreement with the city's communist
leadership, who promised Lamborghini a 19% interest rate on the company's profits
when deposited in the bank, in addition to charging zero tax on the profits. As part of
the agreement, the factory would be required to unionize its workers.
The car's rolling chassis, featuring an unusual-for-Lamborghini transversely
mounted mid-engine layout, was displayed at the Turin Salon in 1965, impressing
showgoers. A version with bodywork styled by Bertone was finished only days before
its debut at the 1966 Geneva motor show. As had happened three years earlier at the
debut of the 350GTV, an ill-fitting engine meant the prototype's engine bay was filled
with ballast, and the hood kept locked. The favorable reaction to the P400 at Geneva led
Lamborghini to slate the car for production by 1967, under the name Miura. The Miura's
layout and styling would become the standard for mid-engine two-seat highperformance sports cars, a trend that continues today.
Lamborghini now had an offering that positioned the fledgling automaker as a
leader in the world of supercars, while the 400GT was the sophisticated road car that
Ferruccio Lamborghini had long desired to build. By end of 1966, the workforce at the
Sant'Agata factory had expanded to 300, and enough deposits were made by prospective
buyers to begin final development on the Miura in 1967. The first four cars produced
were kept at the factory, where Bob Wallace continued to improve and refine the car. By
December, 108 cars had been delivered.

32

 PORSCHE AUTOMOBILE HOLDING:

Porsche Automobile Holding SE, usually shortened to Porsche SE is a German

holding company with investments in the automotive industry. Porsche SE is
headquartered in Zuffenhausen, a city district of Stuttgart, Baden-Wrttemberg and is
owned by the Piece and Porsche families, and Qatar Holdings, through the Qatar
Investment Authority (10%). Through its investment in Porsche Zwischenholding
GmbH, it owns 50.1% of Dr. Ing. h.c. F. Porsche AG, which is the manufacturer of a
range of sports cars and SUVs, and 50.7% of Volkswagen AG.
The company was founded as Dr. Ing. h. c. F. Porsche GmbH in 1931 by
Ferdinand Porsche an Austrian engineer born in Maffersdorf, during the time of the
Austro-Hungarian Empire, and Porsche's son-in-law Anton Piece, an Austrian lawyer.
Corporate structure
Porsche SE was spun out of Dr. Ing. h.c. F. Porsche AG (Porsche AG) in June
2007 and became a holding company for its stake in Porsche Zwischenholding GmbH
(50.1%) (which in turn holds 100% of Porsche AG) and Volkswagen AG (50.7%). Since
December 2009, Porsche SE lost control Porsche Zwischenholding GmbH, which as a
result is now a joint venture between Porsche SE and Volkswagen AG. In August 2009,
Porsche SE and Volkswagen AG reached an agreement that the two companies would
merge in 2011, to form an "Integrated Automotive Group".
Dr. Ing. h.c. F. Porsche AG, is responsible for the actual production and
manufacture of the Porsche automobile line. The company currently produces Carrera
(997), Boxster and Cayman sports cars, the Cayenne sport utility vehicle and the fourdoor Panamera. There are future models currently being developed by Porsche in
Stuttgart, Germany.
33

Subsidiaries
Other subsidiaries and operating divisions include Porsche Consulting, Porsche
Engineering, Porsche Design Group, Mieschke Hoffman (81.1%) and Bertrandt (25%).
Porsche Engineering Group (PEG) has for many years offered consultancy services to
various other car manufacturers. Audi, Mercedes, Opel, Studebaker, SEAT, Daewoo,
Subaru, Zastava Automobiles and others have consulted Porsche Engineering Group for
their cars or engines.
The Lada Samara was partly developed by Porsche in 1984. Porsche
Engineering Group also helped Harley-Davidson design the Revolution 60-degree vtwin water-cooled engine and gearbox that is used in their V-Rod motorcycle.
History
Professor Ferdinand Porsche founded the company called "Dr. Ing. h. c. F.
Porsche GmbH" in 1931, with main offices at Kronenstrae 24 in the centre of Stuttgart.
Initially, the company offered motor vehicle development work and consulting, but did
not build any cars under its own name. One of the first assignments the new company
received was from the German government to design a car for the people, a German:
Volkswagen. This resulted in the Volkswagen Beetle, one of the most successful car
designs of all time. The Porsche 64 was developed in 1939 using many components
from the Beetle.
During World War II, Volkswagen production turned to the military version of
the Volkswagen Beetle, the Kbelwagen, 52,000 produced, and Schwimmwagen, 14,000
produced. Porsche produced several designs for heavy tanks during the war, losing out
to Henschel & Son in both contracts that ultimately led to the Tiger I and the Tiger II.
However, not all this work was wasted, as the chassis Porsche designed for the Tiger I
was used as the base for the Elefant tank destroyer. Porsche also developed the Maus
super-heavy tank in the closing stages of the war, producing two prototypes.
At the end of WW2 in 1945, the Volkswagen factory at KdF-Stadt fell to the
British. Ferdinand lost his position as Chairman of the Board of Management of
Volkswagen, and a British Army Major Ivan Hirst was put in charge of the factory.

34

In Wolfsburg, the Volkswagen company magazine dubbed him "The British

Major who saved Volkswagen." On 15 December of that year, Ferdinand was arrested
for war crimes, but not tried. During his 20-month imprisonment, Ferdinand Porsche's
son, Ferry Porsche, decided to build his own car because he could not find an existing
one that he wanted to buy. He also had to steer the company through some of its most
difficult days until his father's release in August 1947.
The first models of what was to become the 356 were built in a small sawmill in
Gmund, Austria. The prototype car was shown to German auto dealers, and when preorders reached a set threshold, production was begun. Many regard the 356 as the first
Porsche simply because it was the first model sold by the fledgling company. Porsche
commissioned a Zuffenhausen-based company, Reutter Karosserie, which had
previously collaborated with the firm on Volkswagen Beetle prototypes, to produce the
356's steel body. In 1952, Porsche constructed an assembly plant (Werk 2) across the
street from Reutter Karosserie; the main road in front of Werk 1, the oldest Porsche
building, is now known as Porschestrasse.

The 356 was road certified in 1948.Porsche's company logo was based on the
coat of arms of Free People's State of Wrttemberg of former Weimar Germany, which
had Stuttgart as its capital and became part of Baden-Wrttemberg after the political
consolidation of West Germany in 1949. Not long afterwards, on 30 January 1951,
Ferdinand Porsche died from complications following a stroke. In post-war Germany,
parts were generally in short supply, so the 356 automobile used components from the
Volkswagen Beetle including its internal combustion engine, transmission, and
suspension. The 356, however, had several evolutionary stages, A, B, and C, while in
production, and many Volkswagen parts were replaced by Porsche-made parts.
The last 356s were powered by entirely Porsche-designed engines. The sleek
bodywork was designed by Erwin Komenda who also had designed the body of the
Beetle. Porsche's signature designs have, from the beginning, featured air-cooled rearengine configurations (like the Beetle), rare for other car manufacturers, but producing
automobiles that are very well balanced.

35

CHAPTER 5
DATA ANALYSIS& INTERPRETATION:

1. Attributes associate with Volkswagen Group.

PROPORTION

NO. OF RESPONDENTS

PERCENTAGE (%)

Comfort

20

20

Affordable

10

10

Modern

20

20

Stylish

10

10

Luxury

25

25

Popular

15

15

TOTAL

100

100 %

30
25

25
20

20 20
15

15
10

10 10

5
0

comfort affordable modern

stylish

luxury

comfort

affordable

modern

stylish

luxury

popular

popular

(Source Primary Data)

36

2. Where have you seen advertisements for Volkswagen Group?

PROPORTION

NO. OF RESPONDENTS PERCENTAGE (%)

Newspapers

10

10

Magazines

20

20

T.V.

35

35

Hoardings

20

20

Online

25

25

TOTAL

100

100 %

40
35

35
30

25

25
20

20

20

15
10

10

5
0

Newspaper Magazines

T.V.

Hoardings

Online

MODE OF ADVERTISIEMENT

(Source Primary Data)

Interpretation:
37

From the above analysis it is studied that the most effective mode of advertisement is
electronic media and mass media. Customers get easy approach as well as these modes
are proven to be effective to reach upgrading informations upto them properly.
Maximum priority is given to TV, hoardings and online mode of advertisement.

3. Do you wish to purchase any car within Volkswagen Group

PROPORTION

NO. OF RESPONDENTS PERCENTAGE (%)

YES

68

68

NO

12

12

NOT SURE

20

20

TOTAL

100

100%

80
70

68

60
50
40
30
20

20
12

10
0

YES

NO
YES

NO

NOT SURE

NOT SURE

(Source Primary Data)

Interpretation:
From the above analysis it is studied that approach in making purchase towards
VOLKSWAGEN group is maximum i.e. 68% are totally agreed. This is due to effective
awareness and promotion made by VOLKSWAGEN group keeping in mind the factors
like latest trend, likes, luxury and comfort.

38

4. Are the automobiles manufactured by VOLKSWAGEN popular at specific level?

PROPORTION NO. OF RESPONDENTS PERCENTAGE (%)

Yes

55

55

No

29

29

Dont know

16

16

TOTAL

100

100 %

60

55

50
40
30

29

20

16

10
0

YES

NO
YES

NO

DONT KNOW

DONT KNOW

(Source Primary Data)

39

Interpretation:
When asked respondents, whether products and services of VOLKSWAGEN are
popular or capable, 55% and 29% respondents answered Yes and No respectively,
whereas 16% didnt had any idea about popularity of VOLKSWAGEN.

5. Business activity that makes it more popular and profitable.

PROPORTION

NO RESPONDENTS

PERCENTAGE (%)

Mgnt Decision

Research

PR

24

24

Marketing

54

54

Financial Condition

14

14

TOTAL

100

100

40

60%

54%

50%
40%
30%
20%

24%
14%

10%

5%

3%

0%

BUSINESS ACTIVITY

(Source Primary Data)

Interpretation:
When surveyors were asked which business activity contribute maximum in
popularity and profitability business, 5% and 3% thinks management decisions and
research activity are responsible respectively, 14% thinks its affected by financial
position of the firm, 24% answered Public relation is much important and maximum
54% respondents feels its marketing strategy of a business that gives its pride and profit.

6. Which is the first company that comes to mind when you think of cars?
Preference
VOLKSWAGEN
MERCEDES
TOYOTA
TOTAL

Frequency
48
14
38
100

%
48%
14%
38%
100

41

60
50

48
38

40
30
20

14

10
0

VW

MERCEDES

TOYOTA

PREFERENCE

(Source Primary Data)

Interpretation:
From the above analysis it is resulted that VOLKSWAGEN has a maximum impression
on customers mind due to which the very first VOLKSWAGEN comes as first
preference in their mind. While Toyota and Mercedes prove a late impression on 38% &
14% respectively.

7. Which bank do you prefer for finance?

Total no. of respondents-290

Preferred Bank

ICICI

HDFC

Nationalized

Any other

No. of respondents

90

55

84

61

Percentage

31%

19%

29%

21%

42

100
90
80
70
60
50
40
30
20
10
0

90

84
61

55
31

29
19

ICICI

HDFC
No. of respondents

Nationalised

21

Any other

Percentage

(Source Primary Data)

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 prefer others
bank for financing the cars. Hence ICICI is the prior option chosen by the customers to
finance their cars.

CHAPTER 6
CONCLUSION
Accomplishing this project on brand awareness and promotion was an excellent and
knowledge gaining experience for me. Despite normal. size for questionnaire this
project helped me to know the view of customers and common people towards the
brand awareness and promotion of VOLKSWAGEN Group .
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Brands are now central feature of consumer marketing. They are important in building
long term relationships with the customers irrespective of type of market. Their
importance is now also being recognized in other markets including service and
industrial. Investing in a brand build consumer confidence and loyalty and allows for
brand stretching. It requires a consistent and long term strategy. Only a few brands have
emerged as truly global.
From the overall point of view it was interpreted that brand VOLKSWAGEN group is
quite known to people. VOLKSWAGEN Group has built its brand awareness among a
relatively large number of people in an around Navi Mumbai. The customers are aware
largely of the product with help of the Televisions and Hoardings and products still has
a way to increase its advertising channels to reach the relatively large number of people.
The products advertising in Navi Mumbai is relatively less and also its awareness.

CHAPTER 7
SUGESSIONS

VOLKSWAGEN should focus on its internal branding structure.

VOLKSWAGEN should aim at not competing among its own brands and rather
focus on its rivals.
There are still efforts are needed to make people aware about VOLKSWAGEN
cars.
VOLKSWAGEN Company must provide after sale service to their customers.
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 Companies shall introduce or increase the range of their product in respect of

price so that a lower middle class people may also afford to have
VOLKSWAGEN cars.

RECOMMENDATION
Volkswagen should increase their service stations.
Facilities regarding after sales services should be increase.
People were not aware about VOLKSWAGEN brand, there should be more brand
awareness in the market.
They should increase advertisement activities.
People didnt recognize difference between prestige motors & Prestige Honda that
should be rectified.

APPENDICES
QUESTIONNAIRE
Annexure.1
Name:
Age:
Gender:
Occupation:
Attributes associate with Volkswagen Group.
a) Comfort
b) Affordable
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c)
d)
e)
f)

Modern
Stylish
Luxury
Popular

Where have you seen advertisements for Volkswagen Group?

a) Newspapers
b) Magazines
c) T.V.
d) Hoardings
e) Online

Do you wish to purchase any car within Volkswagen Group

a) YES
b) NO
c) NOT SURE

Are the automobiles manufactured by VOLKSWAGEN popular at specific level?

a) Yes
b) No
c) Dont know

Business activity that makes it more popular and profitable.

a) Management Decision
b) Research
c) Public Relation
d) Marketing
e) Financial Condition

Which is the first company that comes to mind when you think of cars?
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a) Volkswagen
b) Mercedes
c) Toyota
Which bank do you prefer for finance?

a)
b)
c)
d)

ICICI
HDFC
Nationalized
Any Other

CHAPTER 8

BIBLIOGRAPHY:
Marketing Management - Philip Kotler
Research Methodology - C.R.Kothari
Marketing Research Dr. D.D.Sharma
Fundamental of Marketing William J.Stanson, Michael J. Etzd

MAGAZINES:
Autocar
OverDrive
WEBLIOGRAPHY:
WEBSITES:http:// www.volkswagen.co.in
http:// www.prestigemotors.co.in

47

http:// www.automobile.com

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