Skoda Case Study
Case Study: Changing Customer Perceptions - Skoda Cars in the UK
(1) Introduction:
In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and produced their own bicycle. Their business became Škoda in 1925. Škoda went on to manufacture cycles, cars, farm ploughs and airplanes in Eastern Europe. Today, Škoda UK sells Škoda cars through its network of independent franchised dealers.
[pic]
The new Skoda Rapid for 2012
To improve its performance in the competitive car market, Škoda UK’s management needed to assess its brand positioning. Brand positioning means establishing a distinctive image for the brand compared to competing brands, so that the psychology of consumers is positively influenced towards Skoda rather than some other car brand. To aid its decision-making, Škoda UK obtained market research data from internal and external strategic audits. This enabled it to take advantage of new opportunities and respond to threats. The audit provided a summary of the business’s overall strategic position by using a SWOT analysis.
This case study focuses on how Škoda UK’s management built on all the areas of the strategic audit. The outcome of the SWOT analysis was a strategy for effective competition in the car industry, and allowed Skoda UK to successfully change customer perceptions of Skoda cars and the Skoda brand.
(2) Strengths:
To identify its strengths, Škoda UK carried out marketing research. It asked customers directly for their opinions about its cars. It also used reliable independent surveys that tested customers’ recall, motivations, perceptions, and feelings. For example, the annual JD Power customer satisfaction survey asks owners what they feel about cars they have owned for at least six months. JD Power surveys almost 20,000 car owners using detailed questionnaires. Škoda has been in the top five manufacturers in this survey for the past 13 years. In Top Gear’s 2007 customer satisfaction survey,
(1) Introduction:
In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and produced their own bicycle. Their business became Škoda in 1925. Škoda went on to manufacture cycles, cars, farm ploughs and airplanes in Eastern Europe. Today, Škoda UK sells Škoda cars through its network of independent franchised dealers.
[pic]
The new Skoda Rapid for 2012
To improve its performance in the competitive car market, Škoda UK’s management needed to assess its brand positioning. Brand positioning means establishing a distinctive image for the brand compared to competing brands, so that the psychology of consumers is positively influenced towards Skoda rather than some other car brand. To aid its decision-making, Škoda UK obtained market research data from internal and external strategic audits. This enabled it to take advantage of new opportunities and respond to threats. The audit provided a summary of the business’s overall strategic position by using a SWOT analysis.
This case study focuses on how Škoda UK’s management built on all the areas of the strategic audit. The outcome of the SWOT analysis was a strategy for effective competition in the car industry, and allowed Skoda UK to successfully change customer perceptions of Skoda cars and the Skoda brand.
(2) Strengths:
To identify its strengths, Škoda UK carried out marketing research. It asked customers directly for their opinions about its cars. It also used reliable independent surveys that tested customers’ recall, motivations, perceptions, and feelings. For example, the annual JD Power customer satisfaction survey asks owners what they feel about cars they have owned for at least six months. JD Power surveys almost 20,000 car owners using detailed questionnaires. Škoda has been in the top five manufacturers in this survey for the past 13 years. In Top Gear’s 2007 customer satisfaction survey,