Marketing Communication Strategies of Skoda

selling colloquy Strategies of Skoda food trade The Process just now defined, merchandise is the process of planning and executing the conception, pricing, promotion and distribution of appraisals, goods and work to satisfy customers (Google). It is a dynamic process of ensuring a close capable between the core competencies of an organization and the external demands placed upon it.The fundamental part of merchandising is often associated with the promotional aspect of a product or service. It consists of making the consumer aw ar of what youre offering, and convincing them to buy it. selling communication theory Marketing Communications MixMarketing Communications takes a leap march on to streamline the actions a firm takes to communicate with end-users, consumers and external parties. It identifies the best media open for any particular product or service to communicate with the market (Smith Taylor, 2005). It is in the first place concerned with demand generation a nd product and service positioning.The market communication theory mix is es moveially a conceptual framework that helps to mental synthesis the approach to merchandise. It covers all the communication tools available to a marketer, such as publicize, sales promotion, direct marketing, sponsorship, e-marketing, corporate identity, etc.This report is an attempt to paper the marketing communication theory strategies and mix for consumer vehicle stakes in the UK, namely Skoda and Volkswagen passenger Cars (now-on referred to as Volkswagen or VW). These are two sister companies and and then an enkindle comparison.Automotive Industry MarketingThe competitive nature of the travel attention in the UK has prompted the go manufacturers to explore recent and innovative marketing strategies to nonplus the deadly competition. Almost all companies offer divers(prenominal) range of vehicles in closely all segments as a part of their marketing strategy. This is in the endeavor to affect sure that the customer is driving one of their vehicles only.The automobile exertion relies non just on one medium of advertising and promotion rather they aim to develop a combination of almost all options to leave the most impact-ful trail of marketing. The audio-visual medium is a do since it gives the vehicle manufacturers an hazard to flaunt their railway gondola cars. The print medium, on the other hand, provides an opportunity to explain the functions of a car in detail and highlight their odd selling proposition (USP) to the customers. More recently, the automobile constancy has shifted focus to the online medium, exploring the internet, which offers greater flexibility in terms of utilizing its interactive features such as demonstrating the interiors of the car with its salient features, etc.Aims ObjectivesThe aims and objectives of the report shall remain the sidelineStudy the automobile industry dynamics in the UK, with specific focus on account and evolution of Skoda and Volkswagen as signififannytly important provokers.Study the marketing communications strategies and tactics used by Skoda and Volkswagen to fight competition.Study the prevails, media used and the defect image projected by Skoda and Volkswagen and how successful read they been in arrive at place to their home run.Chapter 2 Literature ReviewUK Automotive industry Market OverviewThe UK automotive sector is a highly flexible, dynamic and a orbicular enterprise. The UK is the 12th largest automobile producer in the world and UK car industry has always been export-oriented and is known for exclusive brands, such as the Rolls-Royce, Bentley, Land Rover, Aston Martin and Jaguar. Amongst the spot multinational players are Ford, Toyota, Diamler-Chrysler, GM and Volkswagen. The top five UK car producers accommodate Nissan, Toyota, Honda, MINI and Land Rover (Cunningham et al., n.d.).The automotive sector in the UK is in a state of constant change which is imp erative for adapting to challenging commercial, restrictive and technological trends worldwide. However,at present, the UK car industry is in major turmoil. With credit crunch, whorled oil prices and fragile consumer confidence, the industry is witnessing its worst since 1966. The buyers are shunning dealerships in droves and the manufacturers are in deep thoughts of how to revive the declining sales.The slowdown in the UK mirrors the delicate conditions being meetd across the main European markets.(Paul Everitt, SMMT).The major trends in the UK automotive industry over the last five years, as determine by the Society of Motor shapers Traders Ltd (SMMT), depict the followingUK new car market has eased in recent years, after witnessing a throwaway of 2.579mn in the fiscal year 2003. The market is now con rivuleted by many marques.Fuel-efficiency is a big issue in the UK automotive industry.UK vehicle output has declined, but will recover over the next 18 months (figures as of 2007).In the year 2006 there were 1.65 one thousand million cars and commercial vehicles (CVs) produced in the UK alone.In the year 2006 the UK new car market eased to 2.345 million units, its lowest level since 2001.Estimates show that over 2 million vehicles are currently scrapped from each one year.Global automotive market is very demonstrable and is largely driven by Asian demand, in particular in China and India.Skoda- The Brand and the Re-BrandingSkoda Auto is an automobile manufacturer based in the Czech Republic. It was once one of Europes leading producers of quality, highly engineered cars but its fortunes plummeted low the post-Second World War communism phenomenon. It was until 1989 when Volkswagen took a 30% stake in the beleaguered car firm, that there were any signs of hope for the uplift of the company. In 21991, Volkswagen bought Skoda instantaneously and this was when the journey of improvement triggered off for Skoda. Backed by VWs expertise and investments, the traffic pattern of Skoda, both(prenominal) in terms of style and engineering, improved greatly.Although Skoda cars were quite at par with those of the rivals, in terms of function, style and value for money, the entire brand image of Skoda lagged far behind. As Chris Hawkens (Marketing Director Skoda, 1999) stated All the look into showed quite substantial levels of rejection of the Skoda brand by consumers. (Creativity Works, 2003)Trying to Sell Skodas is standardised Trying to Sell Nuclear Waste.Hawken took up the initiative to challenge the interdict perceptions just about Skoda and to create a new brand platform to examine future growth. The action plan called for innovation and a carefuly integrated marketing communications strategy which comprised of three core strandsAdvertisingDirect marketingPublic relationsAs a result, the entire image of the Skoda brand improved and eventually changed altogether.Volkswagen The BrandVolkswagen commercial vehicles is some othe r brand of the Volkswagen group, desire Skoda, and is a separate marque to Volkswagen Passenger Cars since 1995. VWs relationship with the UK automobile industry dates back to 1952 when the first two models of Beetles were introduced into the market. In 1953 Volkswagen Motors Ltd officially became the UK importer, and the brand on that went from strength to strength and became to be knows as the nations car. The Volkswagen Passenger Cars brand runs a combination of three core values innovative, providing enduring value and responsible. engineering, people and the environment dominate the philosophy and actions of Europes largest automaker.Double marketing has been the expose for Volkswagen. It is not about stuffing multiple messages into one campaign, ratherrunning multiple campaigns on varied messages concurrently. Volkswagen has much often indulged in launching many models collectively and hence has exploited this marketing strategy. The campaigns of 2006 provide a classic e xample of this phenomenon at Volkswagen the Unpimp my ride campaign about design and control, the obeying your fast campaign for the GTI and the proficient happens bold TV ads for the Jetta.Chapter 3 Research MethodologyThe research methodology for this report entails a careful blend of both primary and indirect sources available.Primary Sources of entropyFive customers of Skoda and Volkswagen were randomly interviewed for their views about the marketing strategies of both the companies, victimisation open-ended questions to yield maximum response. This helped to assess their response towards the media and campaigns deployed by these brands and to evaluate the extent of impact and penetration of the marketing tools used into the target customers.Attempts were made to interview at least one reliable effect from the respective companies. However, due to lack of time and confidentiality issues of the company, this mode of research did not yield any reliable information for evalua tion purposes.Secondary Sources of DataThe secondary sources tapped include various books, published material, both from official as wholesome as unofficial sources and both from electronic as well as print media. These include expert reviews on the marketing strategies of each company, company annual reports and other authentic related articles available on marketing strategies of Skoda and Volkswagen. Various advertisements, both from the print as well as electronic media, shed also been carefully studied to conduct a comparative analysis for both the companies.Chapter 4 Discussion AnalysisSkoda tour Negative Perceptions into PositiveRather than try to make it into a hired gun brand, which wasnt realistic, we made it the underdog, and everyones on the side of the little guy. (James, 2002)Under the marketing communications strategy deployed by Hawkens and the innovative It is a Skoda, honest campaign, the market per centum of the company almost doubled. He confronted head-on the cars negative image using subtle, intelligent humor, targeting Skoda rejecters precisely.The rejuvenating marketing communications strategy of Skoda comprised of (James, 2002)Advertising targetting the entire country, primarily through TV.Drect Marketing targetted prospective buyers and existing customers, designed to encourage test-driving the new car.Public Relations played a supplemental role by image-changing articles. Press was fed with information about motoring awards and VK backing. The success stories about Skoda now read Historys biggest comeback since Bobby Ewing stpped out of the shower, the new Skoda is hip and lustful yes, sexy.For a budget of about $7 million, Skoda witnessed increased sales, more than 23%, over the course of the 18-month campaign which marked the turn-around for the brand (James, 2002).Skodas Marketing Communication MixThe recent marketing communication strategy of Skoda constitutes the following key elementsTV Advertising Most Talked About A dd of 2007TV advertising has always been a win for Skoda. The baking of add of 2007 is a precious example of the strategic advertising vision of the company. The award-winning add have a group of master bakers creating a life-size car out of cake icing, jelly headlights and full of lovely stuff strapline. The Favorite Things soundtrack provided the downplay score for the extremely attractive recepie.The cake add was indeed a radical move for Skoda. It was accompanied by columns in leading journals and magazines as the PR team took the initiative to send cake tins with ingredients to journalists. As a part of the direct marketing campaign, chocolate scented air fresheners were sent to potential and existing custoemrs of Skoda. Being an extremely bold positoning, Skoda adds communicated the message of how Skoda delivered extraordinary customer service (Turner, 2007).Award winning bladesiteSkoda UKs official website (www.skoda.co.uk) is yet another critical element of the marketin g communications mix of the brand. The highly attractive, active and engaging website played a crucial role in nurturing the marketing mix of Skoda. Its online marketing campaign won it laurels in 2008- the dress hat Motor Manufacturer Home Page and Best Motor Manufacturer for Purpose Intent (www.skoda.co.uk). The criteria for judgment included factors such as web design, use of animation, ease of navigation, and search tools available. The sites creative effectiveness has been demonstrated by a remarkable 400% increase in requests for test drives and brochures.MyClick TechnologySkoda has indulged in a mobile WAP site MMS MyClick advertising platform as a recent communication strategy. This is an endeavor to deliver a whimsical brand visit to consumers on their mobile devices.The image recognition technology of MyClick allows Skoda to reach end users with instant services wherever they are. Skoda is using this idea to provide an interactive platform where mobile users can access its intrust In Life information by simply clicking their mobile foretell camera (Roberts, 2008).Volkswagens Marketing Communications MixVolkswagen, the brand, deploys two key elements in its marketing communications strategyOnline MarketingThe official website (www.volkswagen.co.uk) provides the most life-like experience of choosing a car on the internet. It allows the visitors to access the retailers booking systems and book test drives in real time. Also they are able to see which models are available at any specific time and retailer and make online reservations. The dynamic feedback mechanism employed by the website allows the customer to search and dispose their preferred car in real time hence, as initially imagined by Volkswagen. The website is much responsive and provides a much richer customer experienceDouble Marketing Volkswagen and the blueA multi-tiered, fully integrated marketing strategy was incorporated for the multiple-model launch in 2003, with the help of Th e blue promotional team (Volkswagen and The Blues, n.d.). The marketing strategy adopted covered a diverse range of communications media includingTV and radio adsOnline marketing on The Blues websitePaid advertising print ads in leading journals, in-flight marketing campaign with major national airlinesEvents marketing Radio City concert, presence at key film and music festivals, etc.Ancillary productsEducational outreach letter from Volkswagen and logo presence in Teachers Guides sent to 45,000 teachers nationwide.Chapter 5 ConclusionSkoda has bypast from trash to treasure with the overwhelmingly innovative marketing strategy of the Volkswagen group. This can be accredited to simply revamping the marketing communications mix, which even called for empty elimination of typical elements such as sponsorships. Instead it focuses primarily on four key aspects of marketing advertising, direct mail, public relations and more recently online marketing. Ultimately transforming the compan y image from a joke to a hero brand, the correct marketing strategy and timely deployment of that strategy have radically changed the perceptions of Skoda and it is today one of the fastest growing car brands in the UK.Volkswagen Passenger Cars, on the other hand, is a brand of the same elevate group, however with much lesser prominence as compared to that of Skoda. The most grownup feature of VWs marketing strategy is double marketing, vis--vis the three-pronged strategy of Skoda. Both brands have strong market presence and are working effectively with their private marketing strategies. However, those deployed by Skoda are much more impact-full and far-reaching than VWs.Chapter 6 RecommendationsSkoda is suggested the following localise of recommendationsAlthough the negative perceptions have withered off, the positive preconceptions are to be secured. Hence, Skoda needs to promote a we-are-not-as-bad-as-you-think impression.Create a new communications theme that is able to sus tain the brands sense of individuality, without Skoda being perceived as just any other car brand.Volkswagen Passenger Cars is suggested the following set of recommendationsEnhance the marketing communications mix with more emphasis on the advertising campaigns, such as those launched by Skoda.ReferencesCreativity Works (2003) HOW SKODA utilise CREATIVITY TO INCREASE SALES BY 27% functional at www.dandad.org/inspiration/creativityworks/pdf/skoda.pdf Accessed 8th November 2009Cunningham, Margaret Doherty, Joanne Douglas, Thomas Garland, Philip Guo Xiadi Harmer, Chris (n.d.) The Death of the Skoda Joke and the Rebirth of the Brand. Available at www.busmgt.ulst.ac.uk/modules/bmg900j3/Skoda%20Report.ppt Accessed 8th November 2009James, Dana (2002) Rebuilding Reputations Skoda goes from trash to treasure Available at www.amaphoenix.org/files/Rebuidling%20Reputation Accessed 18th November 2009Roberts, Benna (2008) Skoda users MyClick Mobile image recognition technology for Mobile Marke ting Available at http//www.gomonews.com/skoda-users-myclick-mobile-image-recognition-technology-for-mobile-marketing/ Accessed 5th November 2009Smith, P R Taylor, Jonathan (2005) Marketing CommunicationsTurner,Clark (2007) How Skoda created the most talked about ad of 2007 Available at www.utalkmarketing.com//Article.aspx?Skoda_created_the_most_talked_about_ad_of_2007 Accessed 18th November 2009Volkswagen and The Blues (n.d) Available at www.sgptv.org/sponsor-casestudies/original/5.pdf Accessed 5th November 2009