Free Essay

Skoda Vietnam

In:

Submitted By christine44
Words 1100
Pages 5
4. Marketing strategies of Skoda Auto in Vietnam
4.1 Marketing Objectives:
The main objectives of the company are: * To penetrate into the Vietnamese market in 2015 * To create brand awareness for local consumers and increase customer’s perception towards its brand name * To become one of the ten biggest car brands in the market
The choice of 2015 as entry year is favorable for Skoda because Vietnam’s automotive market is growing quickly and all competitive advantages for the company including lower vehicle import tax, high demand of Vietnamese consumers etc will help company to enter the market successfully.

4.2 Segmentation, targeting, positioning strategy
Target groups for Skoda Auto’s vehicles will be based on four groups of segmentation variables such as Geographic, Psychographic, Demographic and Behavioral
In Geographic segmentation, two major regions for the company are Hanoi Capital in the North and Ho Chi Minh City in the South. Ho Chi Minh City and Hanoi capital are chosen in terms of numerous population, high income level and high demand of car purchase. Concerning the population scale, Ho Chi Minh stood in the first position with 7,165,000 people and the second was Hanoi with 6,472,000 people.
In Demographic segmentation, both men and woman, aged between 25-60 years are addressed. Average Vietnamese household size is about 4.1 person/household, so Skoda’s models such as Fabia, Octavia, Yeti will be the most affordable choice for the Vietnamese middle class and Superb will be suitable for the Vietnamese upper class. Based on the income level of Hanoi Capital and Ho Chi Minh City, the group with minimum annual income of $23,000 per year will be addressed for purchasing Skoda’s vehicles including senior employees, businessman, doctors and politicians.
In Psychographic segmentation, personality and lifestyle of Vietnamese customers should be focused by the company because they will affect their purchasing behaviors.
In Behavioral segmentation, the company must take into considerations when Vietnamese people choose to purchase a car. They like to take reference from other users in order to make sure about their expensive investment. Moreover, Vietnamese people tend to purchase cars in the special occasions such as before the Chinese New Year, marriage seasons, etc.

4.3 Marketing Mix
4.3.1 Product
Skoda should bring four basic models in the product lines to the Vietnamese market such as Skoda Fabia, Skoda Octavia, Skoda Yeti and Skoda Superb that mentioned before because it will be affordable choice for the Vietnamese.
Concerning packaging, all models of Skoda brand in the Vietnamese market should be imported directly from the Czech Republic because based on the car survey, 91 percent of people in the survey desire to purchase Skoda’s models from the Czech Republic and do not want to purchase models from China.
4.3.2 Price
Based on the external bench mark of Skoda’s vehicles in the Chinese market, in the Indian Market as well as in the Singaporean market, we recommends the following standard price for Skoda’s model in the market of Vietnam. No | Model | Fuel consumption | Price | 1 | Fabia (1.2 TSL/63kW) | 5.2L/100km | $53,000 | 2 | Octavia (1.4 TSL/55kW) | 6.3L/100km | $80,000 | 3 | Yeti (1.8 TSL/118kW) | 8.0L/100km | $105,000 | 4 | Superb (1.8 TSL/118kW) | 8.1L/100km | $135,000 |

We use the car price of Autojarov, Czech Republic in Czech Koruna and exchanges them into the US currency. When Skoda Auto officially will enter the market, the real final price including all tax duties and import transportation fee for its vehicles will be calculated exactly by World Auto Company (It is the official general importer and car assembly plant for Volkswagen located in the Ho Chi Minh City).

4.3.3 Promotion
Because the fact that Skoda brand will still not well known by local consumers, compared with Toyota, Hyundai, Ford, Mercedes-Benz, BMW or Volkswagen, so advertising should be used on the list of priorities in the first step of the company penetration. Advertising campaigns should be implemented such as television, radio and print media and outdoor media to advertise new models of Skoda in the market as well as to influence local consumers’ attitude towards its brand name.
A Public Relations team should be formed to deliver company’s messages to its publics though press release, press conference and events. World Auto Company should hold an event to introduce main models of Skoda’s models in order to create awareness about Skoda brand.

4.3.4 Place
Based on the market share and customers’ base, Skoda Auto group should use the exclusive distribution strategy. The exclusive distribution strategy means that Skoda Auto will offer exclusive obligations for World Auto Company to deliver its vehicles to local customers in Vietnam. The exclusivity will bring the assistance for Skoda’s brand image. Moreover, in the exclusive distribution, the cooperation between Skoda Auto Group and World Auto Company should be closely in term of designing prices, promotion, advertising and services. The decision is always use Volkswagen Group strategy in the Vietnamese market. World Auto Company is a member of VMGROUP VIETNAM, located in Ho Chi Minh City. Since 2009, World Auto Company officially becomes an exclusive authorized importer of Volkswagen Group’s vehicles in the market of Vietnam. All Skoda’s models such as Fabia, Octavia, Yeti and Superb should be available in two biggest showrooms of World Auto Company in Hanoi Capital and Ho Chi Minh City as well as in the authorized dealer network of World Auto Company throughout the country.

4.4 Action Plan

Phase | Activity | Place | Holder | Period | 1 | Signing the exclusive authorized agreement | Ho Chi Minh | Skoda Auto Group | January 2015 | 2 | Register Skoda trademark at National Office of Intellectual Property of Vietnam | Ho Chi Minh | Skoda Auto Group | January-March 2015 | 3 | Importing cars from Czech Republic | Ho Chi Minh | Skoda Auto Group | March-May 2015 | 4 | Decorating flagship showrooms | Ho Chi MinhHanoi | Skoda Auto Group | February-May 2015 | 5 | Training sales team and technical team | Ho Chi MinhHanoi | Skoda Auto Group | March-May 2015 | 6 | Advertising campaigns | Ho Chi MinhHanoi | Skoda Auto Group | May-June 2015 | 7 | Organizing Skoda’s launch event | Ho Chi MinhHanoi | Skoda Auto Group | June 2015 | 8 | Sales implementation | Ho Chi MinhHanoi | Skoda Auto Group | June 2015 |

--------------------------------------------
[ 1 ]. http://www.vietnamonline.com/az/ho-chi-minh-city-population.html
[ 2 ]. http://www.ipedr.com/vol20/10-ICHSC2011-M00023.pdf
[ 3 ]. In the Singaporean market, Fabia is priced between $89,106 - $109,106; $135,106 (Octavia); $145,106 (Superb) and $106,106 (Yeti), found on www.sgcarmart.com/new_cars/newcars_adpage.php?Make=Skoda

Similar Documents

Free Essay

Skoda Analysis

...SKODA AUTO- 2007 (Case Study) 3/13/2012 Submitted to: Mr. Manzoor Ahmed Mirani GROUP MEMBERS: Zareen Ahmed Memon Sajid Ali Shaikh Erum Naseer korejo Sheeraz Ali Shaikh SKODA AUTO- 2007 INTRODUCTION: | 1895 | Vaclav Laurin and Vaclav Klemnet form bicycle company. | 1891 | Laurin and Kelemnt start making motorcycles. | 1905 | The first car, called the “Voiturette A”, leaves the factory gates and thanks to its quality and attractive appearance soon gains a stable position in the emerging international automobile markets. | 1907 | Laurin & Klement set up a joint-stock company that goes on to export cars to markets the world over. | 1925 | The Laurin & Klement automobile factory merges with the Skoda machinery manufacturing company in Plzen. | 1939-1945 | During the war years, the factory focuses on producing materials for the military. Just a few days before the war ends, the factory is bombed and sustains considerable damage. The enterprise is nationalized in the autumn of 1945. | 1946 | The enterprise’s reconstruction takes place under a new name, AZNP (Automobilove zavody, narodni podnik” – Automotive Plants, National Enterprise). | 1989 | Czech republic formed. | 1991 | April 16 marks the beginning of a new chapter in the Company’s history, when it is acquired by the strategic partner Volkswagen. Skoda becomes the Volkswagen Group’s fourth brand. | 1996 | Production commences of another milestone car model for the Company – the...

Words: 919 - Pages: 4

Premium Essay

Skoda Case Study

...Skoda [pic] Individual Assignment Executive Summary Skoda was established in Czechoslovakia in the year 1925. Overcoming the years of economic depression, war and political change Skoda is known today as one of the leading automobile manufacturers. Skoda is the largest car manufacturer in Europe selling approximately 5 million cars every year with a 12% world car market share. Key weakness that Skoda was able to identify Before 1999 Skoda was seen as low-budget and low-quality car, but after, under the ownership of Volkswagen AG, Skoda’s image changed. The quality and status of the car changed positively. Hence the brand image was not poor anymore, but was neither strong. For a brand to be successful correct positioning in the market is required. It is important to know what the customers pursue about your brand and your product. To always be in a customer’s mind as a top priority, brand awareness and brand recall are very important things. Once the company does advertisements, endorsements, etc for its brand, the customers in the open market will know about the brand. After the brand is established there has to be constant brand endorsements so that the customer now keeps your brand as his first option. In the market there are many competitors. Threat from the competitors constantly keeps increasing. Especially in the Automobile market there is a lot of competition and customers have a lot of options to choose...

Words: 1262 - Pages: 6

Free Essay

Consumer Behaviour Skoda Analysis

...discuss how consumers research and purchase new cars, the importance of the purchase itself and how the knowledge and associations of a brand influence consumer decision-making. Lastly, it is then possible to offer response solutions for manufacturers in the marketplace, in order to adequately meet the weight of these consumer perceptions. The brand that will be examined for this purpose is the Czech automobile manufacturer Škoda Auto. Škoda Auto First looking at the SKODA car brand itself, we will examine the current brand strategy as well as the target market for the brand as a whole. The SKODA brand is known for its value, while still maintaining quality, safety and reliability. Its current positioning strategy is of an attractive, emotional automotive brand for the entire family. Brands like SKODA are more of a volume brand, priced near the market average and are not purchased for their status or exclusivity but for reasons such as value for money (Understanding brand-dealer retention article). Further research from Australia wide car dealerships found SKODA buyers to be highly educated who are intensive in their information search, extremely well informed and place a very high importance on price. They are also less fashion conscious and seek only the best practical product for its value, prioritising features and car quality over image...

Words: 1067 - Pages: 5

Free Essay

Advertising Vwup

...Advertising ........................................................................................ 4 General characteristics of the car industry .......................................................................................... 4 Skoda Citigo advertising analysis ....................................................................................................... 4 Seat Mii advertising analysis ............................................................................................................... 6 Part Three: Brand Advertising Strategy ................................................................................................... 9 VW Up advertising analysis ................................................................................................................ 9 Potential new advertising for VW Up ............................................................................................... 10 Reference .............................................................................................................................................. 12 Appendix................................................................................................................................................ 13 Appendix 1 – Skoda Citigo print ad...

Words: 4486 - Pages: 18

Premium Essay

The Road Ahead for Shanghai Volkswagen

...THE ROAD AHEAD FOR SHANGHAI VOLKSWAGEN Shanghai Volkswagen is a joint venture between the German Volkswagen AG and a consortium of Chinese partners. The 25-year agreement signed by the partners in the middle of 1980s provided for 50 per cent VW AG equity. By 2001, this venture was the most successful automobile venture in China. Other attempts made by the US AMC Jeep Corporation and other carmakers failed. While other companies were attracted by the large population of 1.2 billion people (certainly only a very small percentage would be the customers), VW built the successful venture over the years. By 2001, it had a market share of over 50 per cent due to introducing “hot” models and assuring reliable service. But a great deal of effort was necessary to build up this market. The early years were not without difficulties. For example, VW had to develop suppliers for quality components, train the work force, work under constraints imposed by the governments, and had to share its latest engine technology. The Santana model, that proved successful in Brazil, was the primary vehicle that suited the Chinese market. By 1995, the improved Santana 2000 was introduced. The ultimate aim of the Chinese, however. Is to design, and eventually develop their cars by themselves. The factory, not far away from shanghai, has one of the most modern engine plants. Chinese engineers and managers were sent to the factory in Wolfsburg, Germany for training. Moreover, Chinese managers...

Words: 572 - Pages: 3

Free Essay

Indian Auto Co’s Great Car Call Back – Reasons & Impact on Indian Economy

...safety-related defects, he must initiate some form of CALL BACK to address the problem. e. g. Honda Cars India Ltd (HCIL), CALL BACK 64K units of diesel variants of Honda City manufactured from Dec. 2013 to Jul. 2015 to voluntarily replace the fuel return pipe. 2. The product reliability issues aren’t always related with CALL BACK but customer expect the need for CALL BACK for reliability problems also. e. g. navigation system malfunctions would be reliability issue 3. If the deviation of specification from the norms specified as per government regulations like emissions even then the need is felt by manufacturer to execute CALL BACK. e. g. Recent CALL BACK announced by German auto major Volkswagen Group of 3.23 L units for - Audi, Skoda and Volkswagen. This CALL BACK is in relation to the emission test. It was the largest recall of vehicles in...

Words: 637 - Pages: 3

Premium Essay

Vw Case Analysis

...Case #2: Globalizing Volkswagen; Creating Excellence on all fronts Global Business Management Vaishnavi Vanawala Sai Teja Boddupalli November 28th, 2015 COMPANY ANALYSIS Administrative Heritage The Volkswagen Group is a Germany-based automobile manufacturer with its headquarters in Wolfsburg, Germany. It is one of the world’s leading automobile manufacturer and carmaker in Europe. In 1930, Ferdinand Porsche, an Austrian born design engineer set up his own vehicle development center and that was foundation of Porsche AG, a leading sports car marker. In 1938, the government laid the foundation of the factory in Wolfsburg. However, before the plant started car production, it was a wartime production of military vehicles and airplane maintenance. In 1945, the British military government assumed control as a temporary trustee for next four years. It ordered production of the Beetle car but the quality was below the standard. In 1948, Heinrich Nordoff, an engineer took over. He focused on improving the quality of the car and focused on exporting cars and by 1951 company was exporting to 29 countries. During 1950s the sale continued to increase, driven by strong export sale to over 100 countries. The completely knocked down (CKD) production sites were set up first in Brazil and Ireland and later in Australia and South Africa. In 1964, they opened another site in Mexico. As the sales of the Beetle were increasing rapidly, there was a necessity to establish new plants in Germany...

Words: 6282 - Pages: 26

Free Essay

Unilever Strategy

...UNILEVER’s STRATEGIES Global look and a case study in Vietnam UNILEVER’s STRATEGIES Global look and a case study in Vietnam Ha Noi, 23rd Dec, 2013 Ha Noi, 23rd Dec, 2013 LECTURER: Ngo Quy Nham (PhD.) Group Members: 1. Lê Hồng Ngọc Hân 2. Nguyễn Tài Minh 3. Trần Thị Tố Uyên 4. Phạm Thùy Dung 5. Nguyễn Quang Thái LECTURER: Ngo Quy Nham (PhD.) Group Members: 6. Lê Hồng Ngọc Hân 7. Nguyễn Tài Minh 8. Trần Thị Tố Uyên 9. Phạm Thùy Dung 10. Nguyễn Quang Thái Unilever is an Anglo-Dutch multi-national corporation, one of the world’s leading suppliers of fast moving consumer goods in branded home & personal care and food categories, operating in over 150 countries. In 2012, Unilever added nearly €5 billion of turnover, pushing through the €50 billion mark in the process. With more than 400 brands focused on health and wellbeing, Unilever touches so many people’s lives in so many different ways. There are more than 2 billion consumer worldwide use a product of Unilever on a given day. Its portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. Some world-leading brands of Unilever include Lipton, Knorr, Dove, Axe, Omo… For Unilever, sustainability is integral to how they do business. With 7 billion people on planet, the earth’s resources can be strained. They believes that as a business, they have a responsibility to their consumers and...

Words: 3445 - Pages: 14

Free Essay

Government Should Restrict on the Migration of People

...they could not get good certificate on education or people migrate from their country to another country, because of the differences in languages as well as education, consequently, they cannot find good jobs as they desired. For example, almost migration people in USA can just find jobs with love wages of $5-$7 such as: wash dishes in restaurants, bust tables, mop floors, pick up garbage (www.balancedpolitics.org/migration, 5,2011). From this, we can see several pitfalls of migration and it is not a good way to make own life better. Let us now explore the several reasons why migration of people should be restricted. The first, migration will lead to imbalance in the population between the different areas in country. For example, in Vietnam, population density in the big cities such...

Words: 507 - Pages: 3

Free Essay

Hospitality Management

...Hospitality Management Vietnam is ranked as one of the rising destination for Bristish tourists and has recently been listed at No.7 in the top 10 countries that British tourists are likely to travel to in 2013 (Tuyen Phuong, 2013). The reason for the favor of British tourists towards Vietnam underlies Vietnam’s unique tourism offer, particularly the spectacular natural beauty and world-famous cultural heritage (Le Tam, 2012). Therefore, our 7 day and 6 night tour package is going to include Hanoi- one thousand year capital together, world wonder Halong Bay and the moutaineous region with pure beauty Sapa. During the stay in Hanoi, the tourists will be taken to various well-known attractions such as Ngoc Son Temple, Hanoi Old Quarter, Ho Chi Minh Complex… In Sapa, the magnificent Hoang Lien Son mountain range, Cat Cat village of ethnic minority people and the Love market will enable tourists to know more about culture diversity of Vietnam. The tourist sites in Ha Long Bay include caves with outstanding topography as Dau Go Cave, Thien Cung Cave… The specific itinerary is provided at the Appendix section of this report. Regarding the lodging properties, British tourists prefer hotel and similar establishments rather than other types of accomodations such as campsites, dwellings or youth hostels (Schmidt, 2012) Also, British tourists are introvert people and typically not open to others; as a result, the number of tourists assigned in each room is either one or two in order...

Words: 813 - Pages: 4

Premium Essay

Cv How to Write a Cv

...CURRICULUM VITAE |PART 1: BASIC INFORMATION | |[pic] |Full Name |TRAN NGOC TUAN | | |Address |33 First street, Tan Phu Wards, District 7, Ho Chi Minh City | | |Cellphone |0944 336933 |Email: tntuanltt@yahoo.com | | |Date of Birth |15th Nov, 1990 |Marital Status : Single | |Hometown: Can Tho City |Languages |English (fluently) | |PART 2: EDUCATION AND TRAINING | |University of Economic HCMC |Major |Corporate Finance | |GPA |7.99 out of 10 |Month and year of Graduation |Jul 2012 | |Acadamy performance ...

Words: 524 - Pages: 3

Free Essay

Thuy

...- What is an ideal job? - There is no basis for any comparison, in other words, standard of an “ideal job” to all people, to all of us, to all the community. - The definition of the “ideal job” depends on each individual’s view. 1. One may think an ideal job is an occupation that gives him/her opportunities to communicate with many interesting people, or to travel around the country, or all over the world. In order that he/she can exchange the relations, raise his/her knowledge about many things, make friendship, etc. 2. Many Vietnamese students now who live and study in Viet Nam consider their ideal jobs as jobs that provide them a guarantee of constant monthly payment, which would allow them to have money enough to afford their lives (Regardless of the fact that they don’t love their jobs at all) Students care about the degrees they get when they finish colleges and universities. A student wants to have a job to earn money enough to maintain a normal life. As long as he will have enough money from what he does, regardless of his interest of any careers else, he would go for it. So that is his ideal job. Thence, right at the beginning, students tend to apply to faculties those regarded as the “hot majors” in the community. Such as Finance and Accounting, Banking, Business, etc. These majors seem to be promise to them to enter the right careers of their lives that make them earn a lot of money. 3. Some may say that if they went for their ideal jobs, they did what they...

Words: 362 - Pages: 2

Free Essay

Marketing

...DAO QUOC KHANH (JACK) | GA tower2 | Phone number: 09062789807 | |Mandaluyong, City |Email address: daoquockhanh89@gmail.com | PROFILE A Financial Management graduate who is keen to find a position which related with my major. Reliability, truthfulness, and responsibility. Able to work on own initiative or as part of a team and can deal with administrative duties competently. PERSONAL DATA Age: 24 Place of birth: Ha Noi, Viet Nam Religion: none Status: Single Language Spoken: Vietnamese, English EDUCATION |Primary education: |1995 – 2000 | |Dong Quang School | | |Secondary education: |2000 – 2004 | |Dong Quang School | | |High school: |2004 – 2007 ...

Words: 465 - Pages: 2

Premium Essay

Analysis Hung Vuong Group

...enterprises, we have a lot of methods, such as: Dividend Discount Model (DDM), price to earnings (PE) or market price to book value (PB)… Each method has its pros and cons. However, in this report, I will evaluate stock price in three methods: PE, PS and PB. In this report, there are three main parts: overview the foods industry and background of HVG, valuation of stock price and give some comment about these methods. II. OVERVIEW FOODS INDUSTRY AND HUNG VUONG JOINT STOCK COMPANY 1. Overview foods industry After becoming a member of WTO, Vietnam has more opportunities for foods industry. However, with the advantages, foods industry in Vietnam has also faced with a lot of challenges. Foods industry in Vietnam develops very quickly with two types: domestic foods and exported foods. With the local consumers, with the variety, there are a 1 NHUTHSB60381 VALUATION FINANCIAL MODELING INDIVIDUAL ASSIGNMENT lot of types of foods. Moreover, in fact, when Vietnam joined WTO and ASEAN, it promotes foods exported and agriculture and maritime products. In recent years, even though growth rate of foods industry is not high, mission and vision are established in the true way and changing in infrastructure. a. Strength Foods industry helps us increase production and GDP. It is also a sector which attracts a lot of foreign investors in recent years. There are some famous firms, such as: Unilever, Nestle and San Miguel. Besides, Vietnamese consumers, especially young people...

Words: 1838 - Pages: 8

Premium Essay

Dep Trai

...TRIUMPH INTERNATIONAL (VIETNAM) LTD. is a 100% foreign-invested company leading in men’s and women’s undergarment industry. We are looking for talents who love challenges and have passion for development along with our organization development. MANAGEMENT TRAINEE RESPONSIBILITIES Triumph Management Trainee Program is the program to recruit fresh graduates majored in Sales & Marketing, Commerce, Business Administration with good study result and develop them to hold key positions for our expansion project in Vietnam. In 2013, we plan to recruit: + 2 Management Trainees for Sales & Marketing Office in Hochiminh and Ha Noi REQUIRED SKILLS 1. Education & Experiences Bachelor Degree or Master on Sales & Marketing, Commerce, Business Administration or other related major with Good mark; Proficient in good English speaking and writing. Foreign language may be needed for future development Computer literate with knowledge of Microsoft Office, Lotus Notes, and Access Database Management will be an advantage Having some experience in Sales & Marketing is preferable 2. Skills  Strategic thinking, analytical and problem solving skills Well-organized, motivated, detail, careful and teamwork spirit  Good communication skill, able to maintain good relationship with colleagues at all levels  Patience, devotion, high integrity  Good looking, passion to grow fast, scarify time to grow big in the future 3. Working location - HCM Office: 21st Floor, Melinh Point Tower, No. 2 Ngo Duc Ke...

Words: 272 - Pages: 2