A STUDY ON MARKETING STRATEGY OF EVM

VOLKSWAGEN, KOCHI
Project Report Submitted to MAHATMA GANDHI UNIVERSITY, Kottayam

In partial fulfillment of the requirement for the award of the

Degree of Bachelor of Commerce

2015-2018

Submitted by

Sarah Mohammed Illyas (Reg No. 150021005721)

Shamila S. (Reg No. 150021005722)

Smrithi S. (Reg No. 150021005723)

Under the guidance of

Mrs. Linda Shiffy

M.Com, MBA, M.Phil., SET, PGDCA

DEPARTMENT OF COMMERCE

SIENA COLLEGE OF PROFESSIONAL STUDIES

EDAKOCHI, COCHIN-682006

MARCH 2018
 SIENA COLLEGE OF PROFESSIONAL STUDIES

EDAKOCHI

COCHIN-682006

CERTIFICATE

This is to certify that project work titled “A STUDY ON MARKETING

STRATEGY OF EVM VOLKSWAGEN, KOCHI” submitted to Mahatma Gandhi
University in partial fulfillment of the requirement for the award of the Degree of
Bachelor of Commerce, Finance and Taxation Model 1, is a record of the original
work done by Sarah Mohammed Illyas, Shamila S. and Smrithi S. under my
supervision.

Mrs. Linda Shiffy K. A., M.Com, MBA, M.Phil., SET, PGDCA

Project Guide

Mrs. K. J. Philominal, PGDTM, M.Com, M.Phil.

Head of Department (Commerce Dept.)

Principal

Dr. Jose P. Abraham

MSc, M.Phil., Ph.D.

College seal

Viva as on date:
 Declaration

We do hereby declare that the project work titled, “A study on marketing strategy of
EVM Volkswagen, Kochi” is a bonafide work done by us under supervision of
Mrs. K. J. Philominal, Head of Commerce Department and Mrs. Linda Shiffy K.A.,
project guide. This study was undertaken in partial fulfillment of the requirement for
the award of degree B.Com, Finance and Taxation Model 1, of Mahatma Gandhi
University, Kottayam.

Sarah Mohammed Illyas

Shamila S.

Smrithi S.

PLACE:

DATE:
 Acknowledgement

We hereby wish to show our gratitude to the almighty for giving us the strength and
ability to successfully complete this project on time.

We have great pleasure in expressing our heartiest thanks to the principal Dr. Jose P.
Abraham for his good gesture of approval.

We also express our heartfelt thanks to our respected guide Mrs. Linda Shiffy and
Mrs. K. J. Philominal, Head of Commerce Department, for their valuable guidance
and assistance in our project work.

Our sincere thanks to Mr. Akhil Mohan and the staff of EVM Volkswagen, Kochi for
their kind cooperation and support for the completion of this project.

Lastly, we thank all persons who directly and indirectly helped us in completing this
study.

Sarah Mohammed Illyas

Shamila S.

Smrithi S.
 Contents

Chapter No. Title Page No.

1 Introduction 1

2 Review of Literature 6

3 Theoretical Background 12

4 Data Analysis and Interpretation 27

5 Findings, Suggestion and Conclusion 49

6 Annexure

7 Bibliography
 List of Tables

Table No. Title Page No.

4.1 How did you hear about Volkswagen? 27

What are the satisfaction levels with the
promotion activities carried out by the
4.2 Volkswagen? 28
How much is Volkswagen affected by the
4.3 competition in the industry? 29
Which medium is best to be adopted for
4.4 advertising purpose and to increase demand? 30
How would you rate the advertising and
promotional strategies adopted by
4.5 Volkswagen? 31
Mark the factors that attract customers to
4.6 Volkswagen. 32
On a scale of 1-10, how likely would you
4.7 prefer another car brand over Volkswagen? 33
Do you consider promotional schemes while
4.8 purchasing from Volkswagen? 34
Which is the fastest moving model of
4.9 Volkswagen? 35
Does celebrity endorsement help in increasing
4.10 demand? 36

4.11 Are spare parts easily available? 37

4.12 Does advertising help in customer awareness? 38

Do you agree Volkswagen has maintained a
4.13 consistent brand image and good reputation? 39
What makes Volkswagen different from other
4.14 brands? 40
Do you trust Volkswagen as a brand in terms
4.15 of loyalty? 41
Which promotional offer is likely to attract
4.16 customers the most? 42
Would you purchase a Volkswagen car if your
4.17 favorite celebrity is endorsing it? 43
 Would you consider recommending
4.18 Volkswagen to friends/family? 44
On which occasion do you prefer to make use
4.19 of Volkswagen promotions? 45
Do you believe Volkswagen mainly target
4.20 male? 46
How do you get updated information about
4.21 Volkswagen promotions? 47
Rate the effectiveness of marketing strategies
4.22 adopted by Volkswagen 48
 List of Figures

Figure No. Title Page No.

4.1 How did you hear about Volkswagen? 27

What are the satisfaction levels with the
promotion activities carried out by the
4.2 Volkswagen? 28
How much is Volkswagen affected by the
4.3 competition in the industry? 29
Which medium is best to be adopted for
4.4 advertising purpose and to increase demand? 30
How would you rate the advertising and
promotional strategies adopted by
4.5 Volkswagen? 31
Mark the factors that attract customers to
4.6 Volkswagen. 32
On a scale of 1-10, how likely would you
4.7 prefer another car brand over Volkswagen? 33
Do you consider promotional schemes while
4.8 purchasing from Volkswagen? 34
Which is the fastest moving model of
4.9 Volkswagen? 35
Does celebrity endorsement help in increasing
4.10 demand? 36

4.11 Are spare parts easily available? 37

4.12 Does advertising help in customer awareness? 38

Do you agree Volkswagen has maintained a
4.13 consistent brand image and good reputation? 39
What makes Volkswagen different from other
4.14 brands? 40
Do you trust Volkswagen as a brand in terms
4.15 of loyalty? 41
Which promotional offer is likely to attract
4.16 customers the most? 42
Would you purchase a Volkswagen car if your
4.17 favorite celebrity is endorsing it? 43
 Would you consider recommending
4.18 Volkswagen to friends/family? 44
On which occasion do you prefer to make use
4.19 of Volkswagen promotions? 45
Do you believe Volkswagen mainly target
4.20 male? 46
How do you get updated information about
4.21 Volkswagen promotions? 47
Rate the effectiveness of marketing strategies
4.22 adopted by Volkswagen 48
 Chapter 1
Introduction
 INTRODUCTION

A marketing strategy is the overall game plan of a business for reaching people
and turning them into customers of the product or service that the business provides. It
covers the big picture of what the business offers – the value proposition and related
brand messaging. It focuses on what you want to achieve for your business and
marketing efforts.

The marketing concept of building an organization around the profitable

satisfaction of customer needs has helped firms to achieve success in high-growth,
moderately competitive markets. However, to be successful in markets in which
economic growth has leveled and in which there exist many competitors who follow
the marketing concept, a well-developed marketing strategy is required. Such a strategy
considers a portfolio of products and takes into account the anticipated moves of
competitors in the market.

The marketing strategy including product launch, product positioning,

promotional campaigns, and establishing widespread dealer networks of each brand of
Volkswagen Group India which was handled by the group companies and their
divisions separately. Commenting on the rationale for following such a marketing
strategy, Rupert Stadler, Chairman of the Board of Management of Audi AG, said, “If
you compare Volkswagen to other big automobile groups in the world, you can see how
it has given independence to individual brands. Each of us has to do our job and not ask
mama‘s help all the time! This is what finally drives brands in the business.”

Volkswagen entered the Indian market began with the launch of SKODA
in 2001 by setting up its Indian subsidiary Volkswagen Group India. Audi and
Volkswagen entered in 2007, while Lamborghini and Porsche were introduced
in 2012. As of 2009, Volkswagen Group India had two group companies –
Volkswagen India Private Limited (Volkswagen India) and Volkswagen Group Sales
India Private Limited (VGSIPL). Volkswagen India focused on the manufacturing and

1
sales of Volkswagen branded cars in India. Skoda Auto India Private Limited (Skoda
Auto India) and Audi India both were divisions of VGSIPL.

The Marketing Mix (The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories:

 Product: A product is an item that is built or produced to satisfy the needs of a

certain group of people. The product can be intangible or tangible as it can be in
the form of services or goods. A product has a certain life cycle that includes the
growth phase, the maturity phase, and the sales decline phase. It is important for
marketers to reinvent their products to stimulate more demand once it reaches
the sales decline phase.
 Price: The price of the product is basically the amount that a customer pays for
to enjoy it. Price is a very important component of the marketing mix. It is also
a very important component of a marketing plan as it determines the firm’s profit
and survival. Adjusting the price of the product has a big impact on the entire
marketing strategy as well as greatly affecting the sales and demand of the
product.
 Place (Distribution): Placement or distribution is a very important part of the
product mix definition. You have to position and distribute the product in a place
that is accessible to potential buyers.
 Promotion: Promotion is a very important component of marketing as it can
boost brand recognition and sales. Promotions in the marketing mix includes the
complete integrated marketing communications which in turn
includes ATL and BTL advertising as well as sales promotions. Promotions are
dependent a lot on the product and pricing decision. If the product is completely
new in the market, it needs brand / product awareness promotions, whereas if
the product is already existing then it will need brand recall promotions.

2
Statement of the problem

Due to the increased entry of new brands of automobiles, the competition faced
by the companies also increases. Since marketing is the backbone of all promotional
activities, an effective a marketing strategy is to be made by the company. The type of
marketing strategy adopted by the business will help them increase their profit and
sales. It is conducted on the basis of surveys and questionnaires to find our whether
the strategies adopted by Volkswagen are effective in the sales, marketing and other
activities.

Significance of the study

 To know how much Volkswagen is affected by entry of other brands into the
Indian market
 Purpose of this study is to identify how competitive marketing strategies can
help firms to succeed in the market
 It helps to company to know whether their current marketing strategies are
effective or not.
 This study plays important role for the company to undertake development
task.
 This survey makes products progressive for the company.

Scope of study

The study was undertaken to study the marketing strategy of Volkswagen. It

includes the study of various factors effecting the market, comparison of the various
brands available in the market, different media used by the company to advertise the
brand and the various strategies implemented in the market. This study enables the
company to look into various factors attracts the consumer to purchase the car and also
helps the company to make the consumers aware about its products in clear and better
way.

3
Objectives of the study

 To study and analyze the promotional strategies of Volkswagen

 To know whether the customers are satisfied with the offers given by the
dealer.
 To study and analyze the customers perception regarding the usefulness/utility
of Volkswagen cars.
 To know the different factors that the customer considers while purchasing the
cars
 To know the effective methods of awareness and advertising
 To know what kind of offers can attract the new customers.

Sources of data collection

The information regarding the study is collected from two types of data collection
method:

 Primary Data
 Secondary Data

Primary data is the data which is directly collected from the respondents by
administrating a structured questionnaire and also through observation and discussion
with the management. Questionnaire method is used for collection of data.
Secondary data is a data which is indirectly collected through records of the
company, company profile, industry profile and internet.

Tools of analysis

For the analysis and the interpretation of the data collected from survey we use certain
methods for a better and qualitative results:

 Table
 Pie Chart
 Graphical Representations

4
Limitations of the study

 The time period of the survey being only two months it was not possible to
conduct a highly in depth and details study.
 Different people have a different thought, process and different attitudes. As a
result their manner of answering the questions of the study differs, the answers
received were sometimes positive while sometimes were negative.

5
Scheme of study

Chapter 1 – Introduction:

This chapter deals with statements of the problem, significance, scope, objectives,
sources of data collection, tools of analysis and limitations of study.

CHAPTER 2-Review of Literature:

It contains review of literature of the study.

CHAPTER 3-Theroretical Background of the topic:

It provides theoretical background, industry profile and company profile.

CHAPTER 4- Data Analysis and Interpretation:

It contains analysis of data received from the questionnaire.

CHAPTER 5- Findings, Suggestions and Conclusion:

It deals with findings, suggestions and conclusion of the study.

6
 Chapter 2
Review of Literature
 Review of Literature

With the growing competition due to the globalization of the world economy
and the consequent globalization of markets, more demanding and assertive
customers, rapid advancement in technology, and changing government policies and
laws, the business environment in India has been changing dramatically and is
becoming more turbulent.

Ferrell and Hartline (2007) propose that when the external environment is
constantly changing, it is important that management understand these changes and
know how to act on them. It is a fact that the Indian automobile market, bearing the
characteristics of an oligopolistic market structure, is one of those which are affected
most by these changes. Therefore, it is required to develop new behavioral skills and
marketing strategies for economic agents with respect to competition and changes in
the post-liberalized Indian automobile business scenario.

Marketing Strategy – A Conceptual Understanding

According to Kurtz, MacKenzie and Snow (2009), a company develops its

marketing strategy by first identifying the target market for its products and then
develops a marketing mix strategy designed to attract new consumers of a particular
segment. A unique combination of the product, price, promotion and place in the
sector allows companies to compete effectively to ensure sustainability and
profitability. For example, companies wanting to increase their market share can
achieve this by matching product offerings with related price discriminations,
promotions and an efficient distribution system (Jeannt and Hennessey, 2001). Once
the companies have established the general marketing strategy, the details to be
planned next are those of the marketing mix.

Integrated Marketing Mix

According to Kotler (2003), in order to create a successful marketing strategy,

the marketing mix must reflect desires of the consumers in the target market. The

7
marketing mix comprises of product, price, place and promotion that the company
blends to produce the response it wants in the target market (Kotler and Armstrong,
2013). These elements of the marketing mix are controllable variables which can be
altered and adjusted to suit the company's objectives (Kotler, 2003). The function of
the marketing mix variables is to maximize the performance of the companies by
combining different variables to satisfy the needs of consumers. The challenge,
however, is that marketers are under pressure to adjust their marketing strategies to
suit new consumer preferences, which are caused by changes in the business
environment. Proctor (2000) also elaborates that these elements of the marketing mix
should not be seen as individual entities but as a set of interrelated entities which have
to be set in conjunction with one another and in the context of the strategic window
presented.

Automobile industry

Sumit Jain & Dr.R.K.Garg, in their research paper described about current
scenario of automobile industry and challenges facing by Industry. They pointed that,
the companies have to shorten product lifecycles in order to react to the expectations
of individualize and fast changing consumer demands with innovative products, and
the integration of strategic partners with more responsibility into the value chain
should be intensified.

Craig Endicott and Kenneth Wylie, writing for Advertising Age in the
magazine's 62nd annual Agency Report, indicate a continued shift of revenues in
advertising from traditional to new forms of media. They label the new forms as
"marketing services" and comment as follows: "Marketing services—identified as all
forms of interactive, sales promotion and direct marketing in this report—grew 11.3%
to $7.66 billion in revenue in the U.S. [in 2005]; traditional advertising and its media
component advanced to $12.02 billion, a 5.1% advance that was slightly stronger than
last year." The growth of sales promotion, a significant portion of total marketing
services expenditures, is no doubt in part due to the proliferation of media channels by
cable, the availability of the Internet to channel direct marketing messages, and

8
simply the fact that advertising has become so ubiquitous it has become less effective:
people tune (or mute) it out.

If global marketing is defined as “simultaneous marketing in multiple markets

in multiple countries,” then global marketing has two dimensions identified by Porter
(1986): configuration and coordination. More specifically, it consists of a
configuration strategy, focused on the types of products and the way in which the
market was entered with them, and a coordination strategy, which involves STP or a
4P strategy in the target country being implemented from the perspectives of
standardization and localization, with know-how being transferred to and shared in
that country.

Russia is one of BRICs countries, but its population is not as big as the other
members of this group and it has a high rate of inflation. There is a high level of
political risk and it has been viewed as a difficult market due to both economic and
political uncertainty. Nonetheless, major automakers such as Volkswagen, Toyota,
GM, Hyundai and Renault-Nissan were targeting the Russian market until 2012. All
of them have a substantial market share in their respective categories and view Russia
as a major market for the long term.

According to sources at VW, the main advantages of the electronic

communication is the reduction of administrative work, the acceleration of
processes, improved planning accuracy and improved transparency in the
collaboration with its suppliers. The development of this B2B supplier procurement
platform has produced remarkable savings for both VW and suppliers over the past 5
years. Reference to statistics at VW Group Supply in the Annual Report show that, as
well as the doubling of suppliers using the platform over the past 4 years, VW now
handles all of its contracts through this system generating transactions up to $56
million resulting in a saving of up to $70million on the legacy direct procurement
methods. 9

Lee, S (2003) carried out a comparative study of leadership in innovation

within the automotive B2B sector and rates VW as the leader in this field with Opel,
BMW and Daimler following in order. The type of innovation characterized by VW’s

9
B2B supplier platform is essentially that of process integration rather than product
innovation per se. The advantage for VW, beyond the savings already mentioned, is
the ability to accelerate the time to market for new models. This is partly facilitated by
the fact that component orders that would have previously taken up to a month to
process are now executable within a few days with a concomitant shedding of
bureaucracy. In terms of future stability of this platform, firms would seem to be so
well-integrated into the system that they could not operate their procurement without
it.

Hans-Michael Huber, MD, Daimler Chrysler, India says, “Until the early
1990s, the automotive sector in India was highly protected. This was in the form of
steep import tariffs and measures that restricted the participation of foreign
companies. Hindustan Motors Ltd. (HML) and Premier Automobile Ltd. (PAL) that
were set up in 1940's dominated the vehicle market and industry. In the 1950s, the
arrival of Tata Motors, Bajaj Auto, and Mahindra & Mahindra led to steadily
increasing vehicle production in India, while the 1960s witnessed the establishment of
the two- and three-wheeler industry in India. However, the automotive industry
witnessed tremendous growth after the entry of Maruti Udyog in the 1980s. In 1983,
the government permitted Suzuki, the only FDI player, to enter the market in a joint
venture with Maruti - a state operated enterprise at the time. Ten years later, as part of
a broader move to liberalize its economy, India de-licensed passenger car
manufacturing and opened it up further to foreign participation. That brought a wave
of FDI to India's vehicle industry. Import barriers have been progressively relaxed.
Today, almost all of the major global players are present in India. The automotive
industry is today a key sector of the Indian economy and a major foreign exchange
earner for the country.”
Blankenship and Doyle15 points out the reasons of present growth of
automobile sector of India with the help of following words, “The automotive industry
comprises of the automobile and the auto component 55 sectors. It includes passenger
cars; light, medium and heavy commercial vehicles; multi-utility vehicles such as
jeeps, scooters, motor-cycles, three wheelers, tractors, etc.; and auto components like
engine parts, drive and transmission parts, suspension and braking parts, electrical,

10
body and chassis parts etc. The growth of Indian middle class, with increasing
purchasing power, along with strong macro-economic fundamentals has attracted the
major auto manufacturers to Indian market. The market linked exchange rate, well
established financial market, stable policy governance work and availability of trained
manpower have also shifted new capacities and flow of capital to the auto industry of
India. All these have not only enhanced competition in auto companies and resulted in
multiple choices for Indian consumers at competitive costs, but have also ensured a
remarkable improvement in the industry's productivity, which is one of the highest in
Indian manufacturing sector.”
Kerin, Roger A. & Peterson, R.A.5 utter about the prospective of automobile
sector of the country after entry of foreign players in this sector, “Until the mid-1990s,
automobile industry in India consisted of just a handful of local companies with small
capacities and obsolete technologies. Nevertheless, after the sector was thrown open
to foreign direct investment in 1996, some of the global majors moved in and, by
2002, Hyundai, Honda, Toyota, General Motors, Ford and Mitsubishi set up their
manufacturing bases. Over the past four to five years, the country has seen the launch
of several domestic and foreign models of passenger cars, multi-utility vehicles
(MUVs), commercial vehicles and two wheelers and a robust growth in the production
of all kinds of vehicles. Moreover, owing to its low-cost, high-quality manufacturing,
India has also emerged as a significant outsourcing hub for auto components and auto
engineering design, rivaling Thailand. German auto-maker Volkswagen AG, too, is
looking to enter India. India is expected to be the small car hub for Japanese major
Toyota. The car, a hot hatch like the Swift or Getz is likely to be exported to markets
like Brazil and other Asian countries. This global car is crucial for Toyota, which is
looking to improve its sales in the BRIC (Brazil, Russia, India, and China) markets. A
heartening feature of the changing automobile scene in India over the past five years is
the newfound success and confidence of domestic manufacturers. They are no longer
afraid of competition from the international auto majors. As the automobile industry
has matured over the past decade, the auto components industry has also grown at a
rapid pace and is fast achieving global competitiveness both in terms of cost and
quality.”

11
 "Volkswagen in the U.S.: An Evolving Growth Story", a report on the
American subsidiary was presented in Chattanooga, on the 26th September 2011 by
its CEO, Jonathan Browning and EVP and CFO, Michael Lohscheller. At the
highest level, the significant problem for VWoA was a very low market share for
Volkswagen brand in America, a mere 2.5 % compared with 14.5 % in Asia and 12.8
% in Europe. The challenges according to this report were market structure and
product offerings, quality perception, brand acceptance, and network and customer
experience.

12
 Chapter 3
Theoretical Background
 Theoretical Background

Marketing is the process of interesting potential customers and clients in your

products and/or services and persuading them to choose them over those of your
competitors. It is the means by which companies use the research and analysis of their
customers to formulate strategies that build brand awareness, make offers, cross
promote and convert viewers into ongoing clients. It involves getting a product or
service from the manufacturer or seller to the ultimate consumer.

The American Marketing Association has defined marketing as "the activity, set
of institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large."

A marketing strategy is the overall game plan of a business for reaching people
and turning them into customers of the product or service that the business provides. It
focuses on what you want to achieve for your business and marketing efforts. It involves
mapping out the company's direction for the forthcoming planning period, whether that
be three, five or ten years. It involves undertaking a 360° review of the firm and its
operating environment with a view to identifying new business opportunities that the
firm could potentially leverage for competitive advantage.
Marketing strategy involves careful scanning of the internal and external
environments which are summarized in a SWOT analysis. Internal environmental
factors include the marketing mix, plus performance analysis and strategic constraints.
External environmental factors include customer analysis, competitor analysis, target
market analysis, as well as evaluation of any elements of the technological, economic,
cultural or political/legal environment likely to impact success. A key component of
marketing strategy is often to keep marketing in line with a company's overarching
mission statement. Besides SWOT analysis, portfolio analyses such as the
GE/McKinsey matrix or COPE analysis can be performed to determine the strategic
focus.

13
SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
It involves specifying the objective of the business venture or project and identifying
the internal and external factors that are favorable and unfavorable to achieve that
objective.

 Strengths: characteristics of the business or team that give it an advantage

over others in the industry.
 Weaknesses: are characteristics that place the firm at a disadvantage relative to
others.
 Opportunities: external chances to make greater sales or profits in the
environment.
 Threats: external elements in the environment that could cause trouble for the
business.

Ways to Improve Your Marketing Strategy

 Know Your Competition: One popular modern strategic marketing idea is to

focus on your customers' consumer habits. Take note of where else they shop
or who else they order from, and what those businesses are doing to attract
business. Are there potential customers who do not even consider the option of
giving your business? Why are they so averse to even thinking about you? A
more targeted marketing strategy will help you identify weaknesses in your
promotional activities and selling strategies.

 Get everyone on the Same Page: Start treating your small business as a single
organic unit. Remember that your customers don't distinguish between
departments; a delayed delivery or bad sales experience affects the reputation
of your business as a whole. To present a stronger team image and provide the
best customer experience possible, make sure your production, sales,

14
 marketing and customer service teams are all on the same page, have the same
priorities and are speaking with the same language. Every marketing plan
should acknowledge that customers judge your small business as a whole.

 Focus on the Entirety of the Customer Experience: Similarly, consider

every aspect of the way your customers interact with you, from your outbound
communications to the way you follow up after a sale. For example,
using recycled paper for your print materials may enhance your business's
environmentally friendly image among your customers. Hire employees who
will represent your business well, even when they're not in the office. Make
sure that when customers think of you, they think positively.

 Know what’s Working: Based on your marketing spend and your sales,
calculate the cost of reaching each customer. Monitor social media for
immediate and accurate feedback from customers and stakeholders. And use
social tools to determine the success or failure of your marketing strategy, and
then make adjustments as necessary.

 Stick with It: While it's alright to change course when something isn't
working, your strategic marketing ideas will not work if your employees feel
that your innovative ideas are mere fads, or if you make drastic changes too
often. Alter your recruitment strategy and try to employ experienced and
professional marketers who understand the importance of strategic marketing.

Types of strategies
Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic
strategies. A brief description of the most common categorizing schemes is presented
below:
 Strategies based on market dominance - In this scheme, firms are classified
based on their market share or dominance of an industry. Typically there are
four types of market dominance strategies:

15
  Leader
 Challenger
 Follower
 Nicher
 Porter generic strategy - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firm’s sustainable competitive advantage. The
generic strategy framework (porter 1984) comprises two alternatives each with
two alternative scopes. These are Differentiation and low-cost leadership each
with a dimension of Focus-broad or narrow.
 Product differentiation (broad)
 Cost leadership (broad)
 Market segmentation (narrow)
 Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is
on the cutting edge of technology and business innovation. There are three
types:
 Pioneers
 Close followers
 Late followers
 Growth strategies - In this scheme we ask the question, ―How should the
firm grow? There are a number of different ways of answering that question,
but the most common gives four answers:
 Horizontal integration
 Vertical integration
 Diversification
 Intensification

16
 Advertising

Advertising is a paid type of promotion, distributed through a publisher that

aims to persuade people to act or respond in a particular way. There are three basic
types of ads:

 Informative advertising, often used to launch a new product or to reach a new

group of customers, gives people basic information, like what a product does, how
someone might use it, where they can find it, and what the price point is. The
objective is to capture interest, raise awareness, leave a positive impression, and
motivate people to take the next step, like making a purchase or requesting more
information.

 Persuasive advertising generally aims to increase demand, influence people to

change brands, or motivate people to make a purchase. It might show the benefits
a product offers or compare key features against a leading competitor.

 Reminder advertising reassures people who already know—and potentially

like—a brand, with a goal of keeping the product or service top-of-mind for future
purchases. It reinforces messages from other ads, and may include customer
testimonials.

Advertising is a form of outbound media, which means an ad interrupts what

someone is doing in an effort to capture their attention. Advertising’s reach can be
either broad or targeted, and advertisers have a lot of control over how, when, and
where a message is distributed. The purpose is to inform the consumers about their
product and convince customers that a company's services or products are the best,
enhance the image of the company, point out and create a need for products or
services, demonstrate new uses for established products, announce new products and
programs, reinforce the salespeople's individual messages, draw customers to the
business, and to hold existing customers.

17
The 5 M’s of advertising

Once you’ve defined your target audience, you’ll need to structure your advertising
campaign—what’s known as the “five M’s of advertising.”

 Mission defines the purpose for your advertising campaign and its objectives.

 Money is a critical factor in any campaign; your budget will have an impact on
the format and ad placement. As you figure out the right media for your
message, account for the resources and skills you’ll need to produce a
complete campaign.

 Message is the information you want your audience to get, including your call
to action (the action you want them to take).

 Media refers to the wide variety of advertising channels you have to choose
from—outlined below—when it comes to placing an ad.

 Measurement defines the data you’ll track to measure your results and
determine how well your efforts have succeeded.

Types of advertising:

 Print advertising
 Radio (audio) advertising
 Television (video) advertising
 Digital advertising
o Display ads
o Remarketing
o Video
o Social
 Mobile advertising

18
 Sales Promotion

Sales promotions are used as a way to attract attention to your business or

provide an incentive for a customer to take a desired action. It is an initiative
undertaken by an organization to promote an increase in sales, usage or trial of a
product or service. Sales promotions typically last for a specified time period and are
designed to achieve a defined purpose like helping to launch a new business or luring
customers away from a competitor.

Few methods of Sales Promotion:

 Free gifts
 Discounted prices
 Joint promotions
 Vouchers and coupons
 Lucky draws
 Finance deals
 Exhibitions
 Contests
 Refunds
 Samples

Importance of Sales Promotion

Importance to Consumer:

Consumers get new product because the manufacturers encourages the

introduction of new product into the market with the help of sales promotion. Sales
promotion offer various incentives like rebates and free discounts, free samples to
consumers, various incentive content sample, demonstrations, fair and exhibitions
create thrill and joy in the life of a consumer. Sales promotion increases sales volume
and reduces the unit cost of production which results in reduction of product price.

19
Importance to Producers:

Sales promotion attracts consumers and stimulates them to make larger

purchases. Sales promotion makes the advertisement and other media activities more
attractive to achieve the sales target. These give pulling per to ads. It is an effective
step to face competition. It helps in increasing the demand of new product. It helps in
maintaining existing customers. Sales promotions help in increasing the goodwill of
the firm.

Importance to Middlemen:

Sales promotion facilitates longer sales through sales promotion plans;

manufacturing provides various types of helps such as rebates, trade discounts, gifts
and rewards to dealers. Good relationship between the dealers and the customers are
established through the sales promotion techniques. Dealers are vital link in the chain
of distribution. The term dealers include the retailers, wholesale and distributors. It is
an important scheme used for trade promotion.

Types of Sales Promotion

 Consumer market directed

 Trade market directed

Consumer Sales Promotion: Consumer sales promotions encompass a variety

of short term promotional techniques designed to induce customer to respond in the
same way. The most popular consumer sales promotion are directly associated with
the product purchasing. These promotions are intended to enhance the value of a
product purchase by reducing the overall cost of product.

Types of Consumer Sales Promotions

 Trade-In: Trade-In promotions allow consumer to obtain lower prices by

exchanging something the customer possess, such as an older product that the

20
 new purchase will replace. While the idea of gaining price breaks for trading in
another product is most frequently seen with automobile sales, such
promotions are used in other industries such as golf equipments.

 Free Product: Free trails give customer the opportunity to experience product,
often for as short duration, without purchasing the product. Today these
methods are used in almost all industries and are especially useful for getting a
customer to try a product for the first time.

Trade Sales Promotions: As a note in promotion decisions, certain promotion

can help ‘push’ a product through the channel by encouraging channel members to
purchase and also promote the product to their customers. With thousands of product
competing for limited shelf space, spending on trade promotion is nearly equal to that
spent in consumer promotion.

Types of Trade Sales Promotions

Point of Purchase: Point of purchase displays are specially designed materials

intended for placement in retail stores. These displays allow products to be
prominently presented often in high traffic area and thereby increases the probability
that the product will stand out. PoP displays come in many styles. It can result in
significant increase in sales as compared to level of sale in normal shelf position.

Trade Allowances: This promotion offers channels prince breaks for agreeing to
stock the product. In most cases the allowances is not only given as encouragement to
purchase the product but also as inducement to promote the product in another ways
like offering attractive shelf space or store location, highlighting the product and
company produced advertisement or website display or by agreeing to have retailers
sales personnel talk up the product to customers.

21
Sales Incentives: Since sales promotions are intended to stimulate activity that leads
to meeting promotional objectives, it makes sense that these can only apply to those in
a channel numbers organization who also affect sales. Thus a marketer may offer
sales promotion to their seller’s sales force and customer’s services staff where they
are used as incentives to help sell more of the marketer’s product. Sometimes it is
called push money.

Trade Shows: Another type of trade promotion is the industry trade show. Trade
shows are organized events that bring both industry buyers and sellers together in one
central location. Spending on trade shows is one of the highest of all sales promotions.
Marketers are attached to trade shows since these offer

22
 INDUSTRY PROFILE

The automotive industry is a wide range of companies and organizations

involved in the design, development, manufacturing, marketing, and selling of motor
vehicles, some of them are called automakers. It is one of the world's most
important economic sectors by revenue. The automotive industry does not include
industries dedicated to the maintenance of automobiles following delivery to the end-
user, such as automobile repair shops and motor fuel filling stations.

The automotive industry in India is one of the largest in the world with an
annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a
growth of 2.57 per cent over the last year. The automobile industry accounts for 7.1
per cent of the country's gross domestic product (GDP). The Two Wheelers segment,
with 81 per cent market share, is the leader of the Indian Automobile market, owing
to a growing middle class and a young population. Moreover, the growing interest of
companies in exploring the rural markets further aided the growth of the sector. The
overall Passenger Vehicle (PV) segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth
expectations for the near future. In FY 2014–15, automobile exports grew by 15 per
cent over the last year. In addition, several initiatives by the Government of India and
the major automobile players in the Indian market are expected to make India a leader
in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.

The top most car manufacturers reported are:

1. Volkswagen
2. Toyota
3. Renault-Nissan
4. Hyundai-Kia
5. General Motors
6. Ford
23
 7. Honda
8. FCA
9. PSA
10.Suzuki

Volkswagen shortened to VW, is a German automaker founded on May 28,

1937 by the German Labour Front and headquartered in Wolfsburg. It is the flagship
marque of the Volkswagen Group, the largest automaker by worldwide sales in 2016.
Volkswagen is the current top car manufacturer.

In 2008, Volkswagen became the third largest automaker in the world, and, as
of 2012, Volkswagen is the second largest manufacturer worldwide. Volkswagen has
aimed to double its US market share from 2% to 4% in 2014 and is aiming to become,
sustainably, the world's largest car maker by 2018. Volkswagen Group's core markets
include Germany and China.

Volkswagen has factories in many parts of the world, manufacturing or

assembling vehicles for local markets. In addition to plants in Germany, Volkswagen
has manufacturing or assembly facilities in Mexico, the US, Slovakia, China, India,
Indonesia, Russia, Malaysia, Brazil, Argentina, Portugal, Spain, Poland, the Czech
Republic, Bosnia and Herzegovina, Kenya and South Africa.

Volkswagen Group sells passenger cars under the Audi, Bentley, Bugatti,
Lamborghini, Porsche, SEAT, Škoda and Volkswagen marques; motorcycles under
the Ducati brand; and commercial vehicles under the marques MAN, Scania, and
Volkswagen Commercial Vehicles. It is divided into two primary divisions, the
Automotive Division and the Financial Services Division, and as of 2008 had
approximately 342 subsidiary companies VW also has two major joint-ventures in
China (FAW-Volkswagen and SAIC Volkswagen). The company has operations in
approximately 150 countries and operates 100 production facilities across 27
countries.

24
TOP 5 VOLKSWAGEN CARS OF ALL TIME

1. Volkswagen Golf GTI

2. Volkswagen Type 11 “Beetle”
3. Volkswagen Scirocco
4. Volkswagen Polo
5. Volkswagen Beetle Convertible

25
 COMPANY PROFILE

EVM was established in 1952 as a small entrepreneurial group with a turnover

of Rs.10000; today EVM Group has gone on to become one of the most established
networks of diverse companies. EVM Group has experienced rapid growth and
innovative excellence under the leadership of Sabu Johny, son of E.M. Johny
(Chairman, EVM Group), acquiring a broad spectrum of clientele and successfully
fulfilling all of their demands. Mr. Sabu Johny is the soul of the entrepreneurship and
demonstrates the rare ability to identify business opportunities even in obscure
situations. At the outset of the company’s launch over six decades ago, EVM Group
had established some core values and principles which all its employees honor to this
day. In a nutshell, it amounts to the reiteration that “customer satisfaction is our top-
most priority and that we would bend over backwards to ensure it.”

SMARTDRIVE BUSINESSMAN OF THE YEAR 2015 was presented to Mr.

Sabu Johny, Chairman and Managing director of EVM MOTORS ON 30th January
2016 at a glittering function held in Kochi by SmartDrive Chief Editor and Managing
Director Mr. Baiju N Nair, the most reputed automobile journalist.

EVM Volkswagen located in Kochi is the corporate office of EVM. It is

India’s only 15 car display showroom with 26 bays in service and is the
leading partner with VW across India in sales.

Along with EVM Volkswagen, EVM has businesses including trading rubber,
manufacture and export of hill produce. They own hotels & resorts, more than 15
movie theaters and are the C&F agent for Tata Tea & Coffee. EVM also manages
Das Welt Auto, which is Volkswagens pre owned car market. They buy pre owned
cars of any brand and with the help of their engineers will bring those cars up to the
standards of Das Welt Auto and is sold after quality checks. They also help car
owners to upgrade their cars.

26
Brands that EVM motors deal with:
 Volkswagen
 Porsche
 Nissan
 BMW
 Ducati
 Honda (2-Wheelers)
 Indian Bikes
 Scania
 Ashok Leyland
 Jaguar
 Polaris

Organizational structure
MD

SALES COMMON SERVICE

 Call Center  HR  Front Office

 Direct Sales  Accounts & Finance  Floor
 Showroom  Administration  Body Shop
 Field  IT  Spare Parts
 Retail Finance  Warranty
 Insurance  CR
 Accessories
 Billing and Registration
 PDI (Pre-Delivery Inspection)
 Marketing
 CR (Customer Relation)

27
 Chapter 4
Data Analysis and
Interpretation
4.1) How did you hear about Volkswagen?

Table 4.1

Particulars No. of Respondents % of Respondents

Magazines 14 14%
TV Ads 46 46%
Social Media 29 29%
Newspaper 6 6%
Others 5 5%
Total 100 100%
Source: Primary data

Figure 4.1

How did you hear about Volkswagen?

50
45
40
35
30
25
20
15
10
5
0
Magazines TV Ads Social Media Newspaper Others

Interpretation:

This graph indicates that while maximum people became aware about Volkswagen by
TV Ads and Social Media, only a small percentage of people got to know about
Volkswagen through magazines, newspaper and other sources like friends and seeing
Volkswagen on roads.

28
4.2) What are the satisfaction levels with the promotion
activities carried out by the Volkswagen?

Table 4.2

Particulars No. of Respondents % of Respondents

Highly satisfied 22 22%
Satisfied 78 78%
Dissatisfied 0 0%
Total 100 100%
Source: Primary data

Figure 4.2

What are the satisfaction levels with the promotion activities

carried out by the Volkswagen?

Highly Satisfied Satisfied Dissatisfied

Interpretation:

This pie chart shows that 78% respondents are satisfied with the promotion activities
carried out by Volkswagen and 22% are highly satisfied.

29
4.3) How much is Volkswagen affected by the competition in
the industry?

Table 4.3

Particulars No. of Respondents % of Respondents

Highly affected 19 19%
Moderately affected 12 12%
Not affected 69 69%
Total 100 100%
Source: Primary data

Figure 4.3

How much is Volkswagen affected by the competition in

the industry

Highly Affected Moderately Affected Not Affected

Interpretation:

This pie chart shows that while 69% of respondents believe that Volkswagen is not
affected by competition in the industry, 19% thinks that Volkswagen is highly
affected.

30
4.4) Which medium is best to be adopted for advertising
purpose and to increase demand?

Table 4.4

Particulars No. of Respondents % of Respondents

TV Ads 33 33%
Magazines 3 3%
Social Media 59 59%
Newspaper 3 3%
Other 2 2%
Total 100 100%
Source: Primary data

Figure 4.4

Which medium is best to be adopted for advertising

purpose and to increase demand?
70

60

50

40

30

20

10

0
Magazines TV Ads Social Media Newspaper Others

Interpretation:

This graph shows that according to 59% respondents, social media is the best medium
for advertising and to increase demand and 33% say TV Ads are the best medium. A
very small percentage of people say magazines, newspapers and other medium are to
be opted.

31
4.5) How would you rate the advertising and promotional
strategies adopted by Volkswagen?

Table 4.5

Particulars No. of Respondents % of Respondents

Highly Satisfactory 16 16%
Satisfactory 81 81%
Dissatisfactory 3 3%
Total 100 100%
Source: Primary data

Figure 4.5

How would you rate the advertising and promotional

strategies adopted by Volkswagen?

Highly Satisfactory Satisfactory Dissatisfactory

Interpretation:

This pie chart shows that while 3% respondents are dissatisfied with advertising and
promotional strategies adopted by Volkswagen 81% are satisfied and 16% are highly
satisfied.

32
4.6) Mark the factors that attract customers to Volkswagen.

Table 4.6

Particulars No. of Respondents % of Respondents

Service 34 34%
Price 23 23%
Safety 40 40%
Quality 65 65%
Brand Image 55 55%
Mileage 21 21%
“Look” of the car 52 52%
Others 0 0%
Total 290 290%
Source: Primary data

Figure 4.6

Mark the factors that attract customers to Volkswagen.

70%
60%
50%
40%
30%
20%
10%
0%
Service Price Safety Quality Brand Mileage “Look” of Others
Image the car

Interpretation:

Here, the 100 respondents selected all those factors which attracted them, as
customers, to the Volkswagen brand. This graph shows that the Quality, Look of the
car, Brand image are the top 3 factors that attract customers to Volkswagen.

33
4.7) On a scale of 1-10, how likely would you prefer another
car brand over Volkswagen?

Table 4.7

Particulars No. of Respondents % of Respondents

1
2 2%
2 4 4%
3 5 5%
4 11 11%
5 16 16%
6 19 19%
7 14 14%
8 22 22%
9 5 5%
10 2 2%
Total 100 100%
Source: Primary data

Figure 4.7

On a scale of 1-10, how likely would you prefer another car

brand over Volkswagen?
25
20
15
10
5
0
1 2 3 4 5 6 7 8 9 10

Interpretation:

This graph shows the level of a customer’s interest in another brand car over
Volkswagen brand.

34
4.8) Do you consider promotional schemes while purchasing
from Volkswagen?

Table 4.8

Particulars No. of Respondents % of Respondents

Yes
39 39%
Sometimes
54 54%
No
7 7%
Total 100 100%
Source: Primary data

Figure 4.8

Do you consider promotional schemes while

purchasing from Volkswagen?

Yes Sometimes No

Interpretation:

This chart shows that only 39% of customers consider various promotional scheme
while purchasing a car.

35
4.9) Which is the fastest moving model of Volkswagen?

Table 4.9

Particulars No. of Respondents % of Respondents

Beetle
9 9%
Tiguan
15 15%
Passat
16 16%
Polo
44 44%
Vento
12 12%
Others
4 4%
Source: Primary data

Figure 4.9

Which is the fastest moving model of Volkswagen?

50
45
40
35
30
25
20
15
10
5
0
Beetle Tiguan Passat Polo Vento Others

Interpretation:

This graph shows that Polo is the fastest moving Volkswagen model when compared
to the other models. Other models include Jetta, Golf GTI etc.

36
4.10) Does celebrity endorsement help in increasing demand?

Table 4.10

Particulars No. of Respondents % of Respondents

Yes 38 38%
Maybe 52 52%
No 10 10%
Total 100 100%
Source: Primary data

Figure 4.10

Does celebrity endorsement help in increasing demand?

Yes Maybe No

Interpretation:

This chart shows that 52% of customers think that celebrity endorsement might only
help in increasing demand of the car brand.

37
4.11) Are spare parts easily available?

Table 4.11

Particulars No. of Respondents % of Respondents

Yes 19 19%
Sometimes 48 48%
No 33 33%
Total 100 100%
Source: Primary data

Figure 4.11

Are spare parts easily available?

Yes Maybe No

Interpretation:

This pie chart shows that 48% people find it difficult to get spare parts, 33% say it’s
not available easily and 19% people find it with no difficulty.

38
4.12) Does advertising help in customer awareness?

Table 4.12

Particulars No. of Respondents % of Respondents

Yes 98 98%
No 2 2%
Total 100 100%
Source: Primary data

Figure 4.12

Does advertising help in customer awareness?

Yes No

Interpretation:

This chart shows that 98% believe that advertising is one of the best way to help in
customer awareness and only 2% oppose.

39
4.13) Do you agree Volkswagen has maintained a consistent
brand image and good reputation?

Table 4.13

Particulars No. of Respondents % of Respondents

Agree 73 73%
Neutral 24 24%
Disagree 3 3%
Total 100 100%
Source: Primary data

Figure 4.13

Do you agree Volkswagen has maintained a consistent brand

image and good reputation?

Agree Neutral Disagree

Interpretation:

This chart shows that even though 73% believe that Volkswagen has maintained a
consistent brand image and good reputation, there are 3% who disagree.

40
4.14) What makes Volkswagen different from other brands?

Table 4.14

Particulars No. of Respondents % of Respondents

Features
33 33%
Safety
19 19%
Brand Name
43 43%
Service
4 4%
Others
1 1%
Total
100 100%
Source: Primary data

Figure 4.14

What makes Volkswagen different from other brands?

50
45
40
35
30
25
20
15
10
5
0
Features Safety Brand Name Service Others

Interpretation:

This graph shows that brand name, features and safety are the main factors that makes
Volkswagen different from other brands and one “other” factor is the vehicle body
quality.

41
4.15) Do you trust Volkswagen as a brand in terms of loyalty?

Table 4.15

Particulars No. of Respondents % of Respondents

Yes 92 92%
No 8 8%
Total 100 100%
Source: Primary data

Figure 4.15

Do you trust Volkswagen as a brand in terms of loyalty?

Yes No

Interpretation:

This pie chart shows that out of 100, majority respondents trust the loyalty of
Volkswagen but 8% do not trust Volkswagen in terms of loyalty.

42
4.16) Which promotional offer is likely to attract customers
the most?

Table 4.16

Particulars No. of Respondents % of Respondents

Free Gifts
9 9%
Discounts
42 42%
Extra Free Service
48 48%
Others
1 1%
Total
100 100%
Source: Primary data

Figure 4.16

Which promotional offer is likely to attract customers the

most?
60

50

40

30

20

10

0
Free Gifts Discounts Extra Free Service Others

Interpretation:

This graph shows that extra free service and discounts are the best promotional
activities that can be used to attract customers.

43
4.17) Would you purchase a Volkswagen car if your favorite
celebrity is endorsing it?

Table 4.17

Particulars No. of Respondents % of Respondents

Yes 19 19%
Maybe 48 48%
No 33 33%
Total 100 100%
Source: Primary data

Figure 4.17

Would you purchase a Volkswagen car if your favorite

celebrity is endorsing it?

Yes Maybe No

Interpretation:

This pie chart shows that 48% will consider purchasing a Volkswagen car if their
favorite celebrity is endorsing it but 33% wouldn’t be affected by celebrity
endorsement.

44
4.18) Would you consider recommending Volkswagen to
friends/family?

Table 4.18

Particulars No. of Respondents % of Respondents

Yes 97 97%
No 3 3%
Total 100 100%
Source: Primary data

Figure 4.18

Would you consider recommending Volkswagen to

friends/family?

Yes No

Interpretation:

This pie chart shows that while 97% of respondents will consider recommending
Volkswagen cars to friends and family, 3% of respondents will not.

45
4.19) On which occasion do you prefer to make use of
Volkswagen promotions?

Table 4.19

Particulars No. of Respondents % of Respondents

Festive Season Offers
57 57%
Year Ending Offers
18 18%
Pre-Launch Offers
24 24%
Others
1 1%
Total 100 100%
Source: Primary data

Figure 4.19

On which occasion do you prefer to make use of

Volkswagen promotions?
60

50

40

30

20

10

0
Festive Season Offers Year Ending Offers Pre-Launch Offers Others

Interpretation:

This graph shows that maximum respondents prefer making use of festive season
promotions offered by Volkswagen.

46
4.20) Do you believe Volkswagen mainly target male?

Table 4.20

Particulars No. of Respondents % of Respondents

Yes 20 20%
Maybe 28 28%
No 52 52%
Total 100 100%
Source: Primary data

Figure 4.20

Do you believe Volkswagen mainly target male?

Yes Maybe No

Interpretation:

This pie chart shows that 52% respondents do not believe that Volkswagen targets
male while 20% people believe they do.

47
4.21) How do you get updated information about Volkswagen
promotions?

Table 4.21

Particulars No. of Respondents % of Respondents

E-Mails
0 0%
Friends/Family
6 6%
Text Messages
5 5%
TV Ads
38 38%
Social Media
50 50%
Others
1 1%
Total
100 100%
Source: Primary data

Figure 4.21

How do you get updated information about Volkswagen

promotions?
60
50
40
30
20
10
0

Interpretation:

This graph shows that Social Media and TV Ads are the main sources which updates
them with latest information.

48
4.22) Rate the effectiveness of marketing strategies adopted
by Volkswagen.

Table 4.22

Particulars No. of Respondents % of Respondents

1
0 0%
2
2 2%
3
53 53%
4
33 33%
5
12 12%
Total
100 100%
Source: Primary data

Figure 4.22

Rate the effectiveness of marketing strategies adopted by

Volkswagen.
60

50

40

30

20

10

0
1 2 3 4 5

Interpretation:

This graph shows that majority respondents have given 3/5 rating for the effectiveness
of marketing strategies adopted by Volkswagen.

49
 Chapter 5
Findings, Suggestions and
Conclusion
 Findings

 87% of respondents are in the 18-25 category which shows the popularity
among youngsters and although 64% of respondents were male, only 20%
believe that Volkswagen mainly targets male.
 46% and 29% respondents got to know about Volkswagen brand through TV
ads and social media and 50% and 38% get updates through social media and
TV ads respectively.
 98% respondents feel that advertisements are a good way to increase customer
awareness and that social media and TV are the best medium for this purpose.
Also improving the service and customer care can help to increase demand.
 While 52% respondents think that celebrity endorsement may be able help in
increasing demand, there are only 48% who will consider the same.
 44% respondents say that Polo is the fastest moving model of Volkswagen
followed by other models like Passat, Tiguan, and Vento etc.
 63% respondents find it difficult to find spare parts when needed.
 A majority of 73% respondents agree that Volkswagen has maintained a
consistent brand image and good reputation and 92% trust Volkswagen brand in
terms of loyalty, even then there are only a few percentage of respondents who
are 100% committed to the brand and would not choose any other brand.
 Quality, brand image, general “look” of the car and safety is the main factors
that attract customers to Volkswagen. What makes it different from other brand
is mainly brand image, features, safety and other factor like vehicle body
quality.
 54% of respondents consider promotional schemes while purchasing from
Volkswagen. 48% and 42% respondents suggest that extra free service and
discounts, respectively, are offers that is likely to attract customers the most and
57% respondents prefer to make use of offers during festive seasons.
 69% of respondents feel that Volkswagen is moderately affected by the
competition in the industry and 97% respondents would consider recommending

50
 Volkswagen to friends/family which can help them overcome competition in the
industry.
 78% of respondents are satisfied with the promotion activities carried out by the
Volkswagen and 81% rated their advertising and promotional strategies as
satisfactory.
 For the effectiveness of marketing strategies adopted by Volkswagen, 2%
respondents gave a rating of 2, 53% gave a rating of 3, 33% gave a rating of 4
and 12% gave a rating of 5 which gives them an overall ratings of 3/5.

51
 Suggestions

 The customer care and services provided should be improved.

 Better customer relation and value to customers can help to increase brand
loyalty.
 Increase supply of spare parts to make it easily available to customers.
 Better impression of employees and meeting customers’ expectation can help
maintain brand image and good reputation.
 Better year ending offers and pre-launch offers can help increase sales.
 Marketing should be improved by increased promotions, advertisements,
display of cars at various events etc.

52
 Conclusion

SWOT analysis and the right type of strategy is used to understand and select the
perfect market to attract customers and set a perfect marketing strategy. It includes
selecting the best medium and method of advertising and the best promotion
methods.

The study conducted at EVM Volkswagen shows that they have a well-structured
organization with employees who focus to help a customer have a good experience
with the employees in charge. They use modern technology, formulate new
promotional strategies and marketing techniques to attract more customers and
even provides different finance schemes.

53
Annexure
 Questionnaire

Dear Sir/Ma’am, we wish to conduct a survey on Marketing Strategy of

EVM Volkswagen, Kochi as a part of our research project. Kindly spare
some time and participate.

Name :
Age :
Gender :

(1) How did you hear about Volkswagen?

 Magazines
 T.V. Ads
 Social Media
 Newspaper
 Others
(If ‘Others’, Mention: _____________)

(2) What are the satisfaction levels with the promotion activities carried
out by the Volkswagen?
 Highly satisfied
 Satisfied
 Average

(3) How much is Volkswagen affected by the competition in the

industry?
 Highly affected
 Moderately affected
 Not affected

(4) Which medium is best to be adopted for advertising purpose and to

increase demand?
 TV
 Social Media
  Newspapers
 Magazines
 Others
(If ‘Others’, Mention: _____________)

(5) How would you rate the advertising and promotional strategies
adopted by Volkswagen?
 Highly Satisfactory
 Satisfactory
 Dissatisfactory

(6) Mark the factors that attract customers to Volkswagen.

 Service
 Price
 Safety
 Quality
 Brand image
 Mileage
 “Look” of the Car
 Others
(If ‘Others’, Mention: _____________)

(7) On a scale of 1-10, how likely would you prefer another car brand
over Volkswagen?
(Less likely) 0 --- 1 --- 2 --- 3 --- 4 --- 5 --- 6 --- 7 --- 8 --- 9 --- 10 (More likely)

(8) Do you consider promotional schemes while purchasing from

Volkswagen?
 Yes
 Sometimes
 No
(9) Which is the fastest moving model of Volkswagen?
 Polo
 Beetle
 Tiguan
 Passat
 Vento
 Others
(If ‘Others’, Mention: _____________)

(10) Does celebrity endorsement help in increasing demand?

 Yes
 Maybe
 No

(11) Are spare parts easily available?

 Yes
 Sometimes
 No

(12) Does advertising help in customer awareness?

 Yes
 No

(13) Do you agree Volkswagen has maintained a consistent brand image

and good reputation?
 Agree
 Neutral
 Disagree

(14) What makes Volkswagen different from other brands?

 Features
 Safety
 Brand name
 Services
  Others
(If ‘Others’, Mention: _____________)

(15) Do you trust Volkswagen as a brand in terms of loyalty?

 Yes
 No

(16) Which promotional offer attracts you the most?

 Free Gifts
 Discounts
 Extra free Service
 Others
(If ‘Others’, Mention: _____________)

(17) Would you purchase a Volkswagen car if your favorite celebrity is

endorsing it?
 Yes
 Maybe
 No

(18) Would you consider recommending Volkswagen to friends/family?

 Yes
 No

(19) On which occasion do you prefer to make use of Volkswagen

promotions?
 Festive Season Offers
 Year ending Offers
 Pre-Launch Offers
 Others
(If ‘Others’, Mention: _____________)
(20) Do you believe Volkswagen mainly target male?
 Yes
 Maybe
 No

(21) How do you get updated information about Volkswagen

promotions?
 E-mails
 Friends/Family
 Text Messages
 TV Ads
 Social Media
 Others
(If ‘Others’, Mention: _____________)

(22) Rate the effectiveness of marketing strategies adopted by

Volkswagen

 1
 2
 3
 4
 5
Bibliography
https://www.marketing91.com/what-is-sales-promotion/

http://marketingmix.co.uk/

http://smallbusiness.chron.com/types-sales-promotions-3318.html

http://smartdriveonline.in/english/mr-sabu-johny-cmd-of-evm-group-awarded-
smartdrive-successful-businessman-of-the-year-2016/

http://www.marketingteacher.com/sales-promotion/

https://www.upwork.com/hiring/marketing/what-is-advertising/

https://www.drivespark.com/four-wheelers/2017/top-10-car-manufacturers-in-2016-
in-the-world-020233.html

https://www.upwork.com/hiring/marketing/what-is-advertising/

https://www.thebalance.com/marketing-strategy-for-home-business-success-1794314

https://www.thebalance.com/marketing-4073995

https://en.wikipedia.org/wiki/Automotive_industry_in_India

https://en.wikipedia.org/wiki/Automotive_industry#Top_vehicle_manufacturing_grou
ps_by_volume

https://en.wikipedia.org/wiki/Marketing_strategy#Strategic_marketing_planning:_An
_overview

https://en.wikipedia.org/wiki/Advertising#Purposes