SEEMA GUPTA
VOLKSWAGEN IN INDIA
In just 4 years since Volkswagen (VW) set up its India operations, it had captured a 3.6% market share - something the Detroit giants had not been able to do after more than a decade in the country (Exhibit 1). VW was the flagship brand of the Volkswagen group, which also owned Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and
Skoda. In India, the group was present with Skoda, Audi, and VW.1 Maik Stephan, Managing Director, Volkswagen
Group Sales India said:
While three brands give us the collective power, we have to be careful to market them uniquely so that we are not chasing the same customer.i
In 2011, the group’s worldwide revenues and net profit were Euro 159 billion and 15.8 billion, respectively.
Headquartered in Wolfsburg, Germany, the group operated more than 60 plants around the world. It was the second largest automaker behind General Motors. It had a market share of 12.3% in 2011. Its core markets were Germany and China. It was the market leader in Europe with a 20% market share. It aimed to become the world’s largest automaker by 2018. With a growth of 30% in the Indian automobile industry, India was to play an important role in realizing the group’s global ambitions.ii
VW targeted to increase the market share of its flagship brand in India from 3.6% to 5% by 2015. Neeraj Garg,
Director, VW Group Sales India said:
We have to transition from launch stage to growth stage of the life cycle. To meet our ambitious growth plans, we need to evolve our marketing strategy. Perhaps, we should review it. Are our segmentation, targeting, and positioning right? Is our product, distribution, and communication strategy appropriate to catapult us to the next level?
Volkswagen has had a tradition of highly creative advertising globally. Its campaign ‘‘Force’’ for Passat was adjudged the best campaign of 2011 by Advertising Age.2 The campaign featured a kid in Darth Vader costume
(Darth Vader is