The history of Volkswagen (which means 'people's car' in German) can be traced back to the 1930s when Ferdinand Porsche, a reputed automobile engineer and designer, started designing an affordable car for the common man. In 1936, the first prototype of the car, called the KdF-Wagen, was designed in Stuttgart, Germany. Volkswagen entered the Indian market in 2001 by setting up its Indian subsidiary Volkswagen Group India. As of 2009, Volkswagen Group India had two group companies - Volkswagen India Private Limited (Volkswagen India) and Volkswagen Group Sales India Private Limited (VGSIPL).
“We are fairly new in the Indian market. The brand awareness of Volkswagen is low. We have to raise awareness, create and improve the brand."
- Lutz Kothe, Chief General Manager, Marketing and Public Relations, Volkswagen India, in November 2009.
"Volkswagen is committed to the Indian market, the proof of which is the constant investment and growth that we provide through the various projects initiated. India is one of our key markets and we know that the future harbors a huge potential."
- Jochem Heizmann, Member of the Management Board, Volkswagen AG, in August 2009
On December 21, 2009, Volkswagen India Private Limited (Volkswagen India), the group company of Volkswagen Group India, announced that it aimed to sell 300 units of Beetle, its iconic car, in India in the year 2010. The Beetle was launched in India on December 04, 2009. Raj Sawant, Business Head of Automark Motors, a Volkswagen dealer in Ahmedabad, Gujarat, India, said, "There are already over 170 advance bookings across India, and we have started delivering the cars as well. Going by the initial euphoria, we expect to sell around 300 Beetles in 2010." Volkswagen Group India, the Indian subsidiary of leading automobile manufacturer, Volkswagen AG (Volkswagen), based in Wolfsburg, Germany, had entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India.
Over the years, Volkswagen Group India not only launched several products, but also ensured that its brands were well known among the Indian consumers. Although, the company had had a presence in the Indian car market since 2001 and the Skoda and Audi branded cars were well known among consumers, the Volkswagen brand was not well recognized in the country.
Questions:
- Discuss the STP (Segmentation, Targeting and Positioning) which Volkswagen would have adopted to establish its brand in India?
- Describe what USP Volkswagen was carrying to succeed in satisfying needs of Indian car Market.