MA PPT

Case Study

Skoda

Monopoly in Czechoslovakia upto 1989 30% Skoda bought by Volkswagen 1991 100% Skoda controlled by Volkswagen 2001 Felicia 1994 Octavia 1998

Rise in costs/price Tag of Cheap brand

PRODUCT, PLACE , PRICE, PROMOTION

It refers to tangible object or intangible service. Tangible object here in case the Motor Car

Place represents the location where a product can be purchased It is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/ services are moved from the manufacturer/service provider to the user or consumer. It can include any physical store as well as virtual stores on the Internet.

Skoda's 1st VW backed Model Launched in UK with 10 Million Launched gets failure with only 6154 cars gets sold

Hit launched 11000 cars gets sold

In the narrowest sense, price is the amount of money charged for a product. More broadly, it is the sum of all the values involved in a product. Price is the only element in an organizations marketing functions that produces revenue Price is also one of the most flexible elements of the marketing functions

While launching OCTAVIA the cost of the improved VW car structure pushed up Skoda prices Skoda needed to convince customer that the price was worth paying Their aim was from being a cheap brand to being a value for money brand

Promotion is any communication that helps make a sale and build customer relationships ExamplesBrochures Newspaper ads Providing product samples

OCTAVIA was Skodas highest ever spend marketing campaign Skoda FABIA launched with much smaller marketing campaign and advertising message It include Television campaign for 4 and half week print and poster ads for 2 weeks PR push targeted consumer press and attempted to get positive eye Direct mail tried to built loyalty levels Auto express magazine carried a competition to win a Skoda car

Skoda

Demographic Gender, Age, Family life cycle, Race/Ethnic group, Social class, Education, Income, Occupation, Family size, Religion, Home ownership

Geographic Country, Region, Urban/Suburban/Rural, Population density, City size, Climate

Potential MarketPsychographic Segmentation Activities, Interests, Opinions, Attitudes & Values

Behavioural actual behaviour toward product itself. A good starting point for segmentation

Benefits sought, Usage rate, Brand loyalty, User status, Readiness to buy, Occasions

Skoda

Five basic strategies for target market selection: (1) Single Segment Targeting (2) Selective Targeting (3) Mass Market Targeting (4) Product Specialization (5) Market Specialization

Cheap brand to value for money brand. Positioning of Skoda within VM Group. Initially during the launch of Skoda Octavia more emphasis was given on single segment targeting. During the launch of Fabia Skoda adopted strategy of Market specialization.

Cheap brand to value for money brand. Positioning of Skoda within VM Group. Initially during the launch of Skoda Octavia more emphasis was given on single segment targeting. During the launch of Fabia Skoda adopted strategy of Market specialization.

Skoda

Relative perception Process of creating favorable relative position:1. Identification of target market 2. Determination of needs, wants, preferences and benefits desired 3. Examination of competitors characteristics and positioning

4. Comparison of product offerings with competitors 5. Identification of unique position 6. Development of a marketing program 7. Continual reassessment

Strategies

Product Descriptors Product features

Advantages Benefits

Customer Support Services Image

Strengthen the Current Position Repositioning

Skoda Rational/Pragmatic Stylish/Smart Individual/Different Made for you by people like you

Description

Target Market

Selected Segment By using Differentiation variables

Differentiation

Positioning Strategy

Value for money Car Proposal for target

Cheap to Value for money Position within the group Create identity separate from Volkswagen Only 20% buyers under 45 years of age 1/3rd Already owned Skoda Old, unfashionable and out of sync image

Product Performance Conformance

Personnel

Image

Channel Performance Expertise

CompetenceCourtesy Credibility Communication Reliability Responsiveness

SymbolsAtmosphere

Design DurabilityReliability Reparability

MediaEvents

Coverage

Style Features

By the end of 2000 Fabia was hit launched Octavia sales raised by 29% Skoda had waiting lists for cars UK customers see Skoda as cut price VW

Group O N E