Critically analyze the marketing strategy adopted by Volkswagan in India.

Compare it with the strategy of its peers (at least two) in the industry. The marketing strategy includes product launch, product positioning, promotional campaigns, and establishing widespread dealer networks of each brand of Volkswagen Group India which was handled by the group companies and their divisions separately. Product Volkswagen India is marketing three different brands that are Audi, Skoda and Volkswagen that offer 15 different models with various variants according to needs of customer. Volkswagen invested approximately 580 million to build the Pune car plant in order to achieve low cost production and increase volume. As Indian market is mostly dominated by the budget and compact car segment so Volkswagen came up with models like Skoda Fabia and Volkswagen Polo to meet the demand. This decision worked successfully and so Volkswagen is also moving in budget cars segment through their upcoming model UP. Price Earlier Volkswagen India mainly catered the luxury and premium segments of the Indian car market. This lead into a brand image of a very expensive brands and therefore sales were limited, but later on with Fabia, Polo and other upcoming low priced models, sales are booming. Place Volkswagen Indias all brands Skoda, Audi, and Volkswagen possess a separate distribution channels. Skoda has a strong hold in the Indian premium and luxury car market through its 62 dealerships which cover over 52 cities across India. Audi India has 14 dealerships across India in all the major cities and is aiming to have at least 18 dealers by 2011. Volkswagen has currently 42 dealers and the process is in expansion mode only. The company had outlets in all the major cities but is now targeting semi-metro cities like Indore, Jalandhar, Bhopal and Vijayawada in order to expand its market and availability. However Volkswagen will need to maintain a close relationship even after allocating franchises as because it is these dealers only who will provide after sales services, so their training and motivation is as important as their selection. Promotion Earlier Volkswagen India used print media only to promote its brands but now Volkswagen has launched an integrated 360 degree communication campaign combining the print, electronic, digital, and out of home media. First major step in promotion was the Times of India roadblock in which all brands were promoted across all 16 edition and nine pages of Times of India newspaper.

Volkswagen India also aired its TVC to promote the brand instead of a specific car. The TVC focused on the Volkswagen brand as a whole and showcased different Volkswagen car models. As part of its OOH campaign, Volkswagen India took up the entire OOH space at the busy Bandra Junction in Mumbai. BMW marketing strategy BMW aims to maintain its lead in the Indian premium car market through a slew of launches and strategic alliances. BMW wants to be No.1 and will continue to be so with sustainable growth and not through discounting. BMW is a premium brand and it does not want to dilute that perception by entering into price wars. Appealing to the younger buyers (average age of a BMW buyer is 40 years), it has introduced a varying product range at different price levels, starting with its cheapest model X1 available at Rs 23.7 lakh. Its marketing strategy has largely been to create touch points like professional golf tournaments, wine tasting sessions and events with fashion designers. BMW is growing its dealer network and hopes to touch the 60 mark by 2015. With 80% of its cars being financed by its own financial services arm, BMW financing is a brisk business. Mercedes marketing strategy Mercedes is the oldest and the best luxury car India has known. It set up India operations in 1994 and has the best infrastructure in terms of dealer reach and domestic component sourcing which stands at around 34%. But the leader has been on the back foot ever since younger and peppier BMW unseated it in 2009. Mercedes is now reorienting its India strategy to target the youth. The company is working on its model line-ups, marketing and brand positioning to keep them aligned. For example, the luxury brand is now increasingly emphasizing on performance and sportiness of its brand in India. The company has recognized the need for more compact cars in India and assembling them in local markets is considered beneficial. With better localization of content, they will have a pricing edge over others. On the back of all this, as Indian luxury car market expands, the company is hoping to sell around 55,000-60,000 cars (from current 7,430) by 2020. This is part of the bigger plan for Mercedes to regain its top slot in India.