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The end of Skoda jokes and the

rebirth of a brand.

Skoda
 Why does a Skoda have a heated
rear windscreen?

 To keep your hands warm when


you push it


 What do you call a Skoda with


twin exhaust pipes?

 A wheelbarrow
These Things
History of Skoda
• 3rd oldest manufacturer

• 40 year monopoly in a
 command economy

• In 1989 The Velvet Revolution
led to a search for a partner

• VW took 30% share and started


work in ‘91
A well known brand
• 1999- 60% of British Citizens polled said they would never buy a
Skoda

• Skoda's image was old, unfashionable and out of sync with its
products.

• VW resisted the temptation to scrap the Skoda brand altogether.
Despite its poor image in the UK, Skoda still commanded respect
in Eastern Europe (This is important)

• ALSO, the Skoda brand had high “brand awareness” in the UK –even
if it was for the wrong reasons – as well as a reliable distribution
channel through a network of independent car retailers.


Types of Skoda Owners
UK Car Industry Breakdown
UK Market Total 2.6 million units 2000

% Market Share Skoda


Toyota
1. 37 4. 78
4
BMW
6. 92
Peugeot
4. 66
41. 41
Citroen
Ford
13. 99
Honda
Vauxhall
4. 06
6. 39 12. 42
Renault
Others
Skoda Fabia
Super-Mini
The Fabia
 Segmented as a Super-Mini

 Unique compact design that differentiates
itself from its rivals

 Reliability and quality

 Classless Image (for anyone to buy)

U . K Super Mini Segment

33.9% of the total U.K Car Market


Competitors (2003)

 Manufacturer Sales
 Vauxhall Corsa 108, 387
Ford Fiesta 95,887

 Renault Clio 83,972


 Peugeot 206 82,667
 Fiat Punto 59,573
 Skoda Fabia 21,929
Pricing Strategy
 £7,495 – £ 12,770 on the road (cheaper than
competitors)

 But, ultimately, Skoda no longer needed to


rely on price as a basis for competition




A New Launch
The Fabia was launched with a number of

television, print and poster ads


TV and print campaigns were supported by


both PR and direct mail campaigns


The PR push targeted the consumer press


and attempted to get journalists to discuss


Skoda in a positive light


But … more work needed to
Improve brand image
Skoda Marketing
• Skoda has some fun in
advertising…
Distribution
• By 2003 – Skoda dealer
networks expanded

• Architecturally superb,
ergonomically
designed ‘flying wing’
showrooms

• By 2004/05 there are
waiting lists! (people
actually wanted one!)
Promotion
 - Self deprecating

"The Fabia is a car so
good that you won't
believe it's a Skoda“

 - Award winning


Campaign Results

•Skoda saw a lower rejection rate than Fiat or


Citroen

•60% of people polled agree that Skoda is


improving
•84% believe the Fabia marketing campaign
makes a point in a clever way

•29% Increase In Sales





Skoda Fabia – A Success
 Award winning

 A change in perception of
the Skoda brand

 Waiting lists!!

 New models like the R.S


Results
•UK market share increased

•Ranked 2nd overall in 2005 (J.D.Power, Customer
satisfaction)

•All Skoda models ranked in top 10

•98% of skoda owners would recommend to a friend, 95%
would purchase again

•Skoda overall satisfaction rating 87%
Further Results
• The ŠKODA HOLDING group ended the
first nine months of 2007 with an
operational profit of 1.6 billion 1,6
billion Euros.

• “We anticipate that the results for 2007
will be the best since the
establishment of ŠKODA HOLDING
group in 2000. We are expecting
revenue levels bordering on 13 billion
Crowns and newly received contracts
with a volume of 27 billion Crowns,”
ŠKODA HOLDING CEO Jiří
Zapletal.

Summary
•Maintained solid growth level

•Set up strategic partnerships with suppliers and
distributors

•Created a loyal customer base

•Expanded customer base

Conclusion
•Skoda has always had a well known brand
image, but now it’s a positive one.

•Negative attitudes were successfully changed
due to a strong marketing strategy.

•VW put an end to the Skoda jokes
successfully marketing the auto’s merits

•The product has gone from ‘the brand from
hell to one hell of a brand!’