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Market penetration strategy case study
market penetration strategy
the impact of pricing strategies on the marketing of consumer goods
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Problem This Case describes the entry of 18th Car Brand in India i.e Volkswagen in India. It also describes the important role played of the team Volkswagen in India to achieve their market achievement. After its entry in Indian market it has reached to a total market share of 3.6% and planning to reach 5% by 2015 according to the Head sales of the company. The Company major problem is to how to market their cars to customers and with new Models and strategies in order to achieve more market gain in terms of their sales and market capturing in India among all the 18 Car Making brands available in India. It ranges from marketing of the Product, Competitors pricing, challenges towards their vehicles sales and services, New technology as per Innovations led by other competitors and adding features in their cars at lowers costs which cannot be matched by VW due to its import of vehicles in india 2. Costs of Fuel can play an important role 3. Government Rules and regulations may affect VW a lot Strategic Alternatives 1. VW should focus more on Pricing and after sales and services 2. Currently Maruti and TATA are having the best after sales services in india and the motor parts are easily available in india of these brands. 3. VW Should also focus more on adding more dealers and more car brands in order to capture more market segment 4. VW should focus on all categories ranging from low segment cars to high segment cards 5. VW Falls in Premium market segment, They can focus on other segments as well, by doing so they will have access of large pool of new customers Recommendations 1. Should focus on Make in India more. Manufacturing cars of all the brands in India will give access to more customers, more government subsidies as their manufacturing units will generate lot of employment in India and it will be a win win situation for both the company and local government 2. Indian car market is the 10th largest car market in the world with the annual sales of around 14,00,000 cars annually and it expect to grow till 4 Millon by end of Keeping their Marketing Campaigns as it is and keep creating the brand awareness through the print and electronic media in India. 4. VW should target smart users from Urban areas which has a high spending powers Conclusion Although VW was a late entry in Indian market but it still has a lot of opportunities in india. Being an German Brand it has acquired a lot of brand awareness among the customers in india. It’s new launch of cars and relaunch of cars, proper marketing of the brand has reached to consumers and can increase the sales
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
Thesis: Even though there is a lot of skepticism towards Chinese car companies making a foothold in the American car market, with the right marketing and not rushing into the market, there is a good chance that the Chinese car companies will follow the Japanese car companies and carve a spot in the American market.
According to the article, American automakers have not taken into account the needs of the buyers nor are they consulted. The buyers certainly know what they want and could help the manufacturers achieve the required features of functionality. The
The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.
Fiat Chrysler should invest heavily in research and development to stop lagging behind competitors in the market. The areas the company should concentrate on include; autonomous driving, hybrid technology, fuel economy, and an increase in profit margin. The company should also boost its global operations to rectify the shrinking sales volumes in South America, and increase presence in the Asian-Pacific region, where competitors have solidified their businesses. It should also formulate innovative strategies for the next five years to improve the quality of its products and
With the global crisis and changing cultural, environmental views Porsche might need to move their products to different markets in order to hold their line. World is asking for less fuel consuming sports cars rather than fuel swallowing v12 monsters. Porsche customers we can say rather fans are moving for different brands with the change of views. Porsche has taken many actions by launching new products to the market recently but in order to market analysis they are lagging behind in sales. Porsche needs big boom in innovation like 1940's model 356 to battle the sports car
When Americans go to buy a new or used car, they look for great fuel economy, strong engine performance, safety features, and whatever else interests them. One thing is for certain, every consumer searches for the best they can afford. Over the decades automobiles in general have become more efficient in every aspect because of technological advances in society. However, there are still some car brands that stand out over others. It is well known that a prestigious Mercedes-Benz is more reliable than a Jeep; the same can be said about foreign and domestic cars. Foreign cars are greater than domestic cars because of their longevity, their economic advantages for the consumer, and their more impressive performance on the race track.
...cause Honda has already exported a total of 10248 units of cars including Jazz, Honda City, Accord to SAARC countries and now it targeting Brio to push its export sales. And Honda is planning to increase the car price because of higher input and operating cost.
But this is just one per cent of the total Indian car market, way less than the ratio in its home country, Germany, at 15 per cent and China at 4 per cent. But the potential for growth is something that gives Mercedes hope. “When the Indian car market doubles in the next five to six years to five million units and even if the share of luxury cars stays the same, we are expecting doubling of volumes from here”, says Mitra.
Audi is majorly owned subsidiary of the Volkswagen (VW) Group and is headquartered in Germany and operation in more than 100 countries. With the commitment the implement progressive technology and its technological ingenuity, by late 1990’s Audi became globally respected brand among luxury automakers. After its entry in luxury sector in early 1990’s, Audi leveraged its ingenuity and gained the competitive edge over the industry parameters of innovative design, safety and performance. Today, Audi remains focused on satisfying on customer needs by building a brand that exemplifies individuality, exclusivity and excellence.
The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto
The Volkswagen holds a unique place in automotive history. It started from next to nothing after the war, and grew into a world class car company through introducing many new innovations to is various models.
•There is a quick development in the car area of India which is valuable for Mahindra Finance as it additionally gives vehicle credits to its clients and it frames an extensive piece of its monetary administrations.
Capacity is another thing that FAW-VW needs to enhance in China. “At present, FAW-Volkswagen has two large production base in Changchun, Chengdu separately. Vehicle production is mainly dependent on the base of Changchun capacity of 660,000 vehicles. Association statistics show that in 2010, FAW-Volkswagen sold 869,979 vehicles, the production capacity has been severely overloaded. Even with the Chengdu plant (450,000 vehicles) and the South China Sea plants (300,000) set up in 2013, capacity of FAW - Volkswagen is still behind its competitors (Joey Wang,
As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.