Chapter I

Introduction to the study Objective of the study Need of the study Significance of the study Limitations Review of literature

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Introduction to the study.

In each and every management training scheme there is a provision for real time job experience within the academics time period. Call it summer training or corporate training or corporate interaction: the main aim of this is to utilize and implement the theoretical knowledge of class room into corporate world. It is well said nothing is much practical than a good theory. But on very same we cant deny Practical is better than theory. Theses phrases are opposing to each other but also are complement to each other. Experiencing both in a good dedicated manner really plays a lot in ones professional life. In the field of marketing there is no expectation with the market. Field experience is very much necessary for the market professionals. In the stream of business the application of theory is very frequent. From the consumer behavior to consumer satisfaction, we have to study all this in the field of marketing. Marketing is now so much diversified that now it can be done by mere use of mobile phone and internet, the experiencing the real marketing tactics is only possible by working in the field. Recently Volkswagen paved the way for sustainable market activities in India. With the investment agreement signed at the end of 2006 the brand sets a new course that unites two success stories Volkswagen and India. Understanding the Indian consumer preference is definitely a tough task for every foreign entity entering India. Volkswagen was very well able to tackle this situation. A proud John Chacko, chief representative, Volkswagen Group India, prefers to look at the bigger picture: "We changed the game." That's because in four years Volkswagen has become the sixth-biggest car company in India beating much older Ford and GM who have been here since the 1990s.

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OBJECTIVE OF THE STUDIES

Primary Objective: To know the effective factors of awareness and preferring VOLKSWAGEN cars.

Secondary objective To Study and analyze the Promotional Strategies of VOLKSWAGEN. To know whether the customers are satisfied with the offers given by the dealer. To know which kind of offers can attract the new customers. To find the area to be improved. To find the reasons for the dissatisfaction. To know the influence of various Marketing Strategies, Promotional Activities towards the customers of LUXURIES CARS To study and analyze the customer's perception regarding the usefulness/utility of VOLKSWAGEN car

Need of the study

It is Important to understand and assess the influence of every car elements (service package, price, quality and brand of the car) on customers buying behaviour towards car. A Elite car manufacturing company like Volkswagen must concentrate on consumer preferences before entering the Indian Markets.

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Significance of the Study

Car Industry

With increasing criterions emphasized by both of car dealer and car maker, it will lead to the stimulation of competition. So, they will compete and strive in order to give the best to the customers.

Customers

The customers may take it for granted as they have choices of criterions such as service package, price, quality and brand in buying car as car dealer and car maker take serious on customers needs and wants.

Government

High interested on foreign car may contribute to the surplus income of the country. This is because the government impose 100 percent taxes to the car dealers. So, the government may increase the income of the country.

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Limitations of the study The information given in the above part is based on market survey, meeting with the people, and phone calls, and the other medium like internet. My project is based upon the interaction with the people. We have to target only a particular segment (higher class & upper middle class) Sometimes customers dont give time. Sometimes customers give fake information.

Literature Review
Brian Thomas (2002) has mentioned that brand awareness plays an important role in consumer preferences. ArjunChowdhri (2006) has remarked that brand commitment is an important determinant in buying behavior for consumers. David B. Eastwood et al(1987)have examined the consumer behavior based on the purchase regularity, satisfaction, origin and willingness to pay for selected local versus non-Tennessee grown fresh produce. Brand preference: Today, the primary capital of much business is their brands. For decades, the value of the company was measured in terms of its real estate, then tangible assets, plants and equipments. However, it has recently been recognized that a companys real value lies outside the business itself, in the minds of potential buyers.

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For the potential customer, a brand is a landmark. Like money, it facilitates trade. Faced with a multitude of silent or hard to-read products, whose performance cannot be assessed at first glance, customer are confused. Brand and prices make products easier to read, removing uncertainty. A product price measures its monetary value, its brand identifies the products and reveals the facts of its differences functional value ,pleasure value and symbolic value as a reflection as a buyers self image. Tony O Reilly, former CEO of H. J. Heinz, proposed this test of brand loyalty: My acid test is whether a house wife, intending to buy Heinz tomato ketchup in a store, finding it to be out of stock, will walk out of the store to buy it elsewhere.

Aaker distinguished five levels of customer attitude toward his or her brand, from lowest to highest. 1. Customer will change brands, especially for price reasons. No brand loyalty. 2. Customer is satisfied. No reason to change the brand. 3. Customer is satisfied and would incur costs by changing brand. 4. Customer values the brands and sees it as a friend. 5. Customer is devoted to the brand.

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Chapter II Secondary Research

Introduction to automobile industry History of Volkswagen Mission, Vision & Values of Volkswagen SWOT analysis, STP & competitors Achievements of Volkswagen Volkswagen in India Competitors of existing Volkswagen model in India Sales of Volkswagen India Market share of Volkswagen Customers buying behaviour towards car

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INTRODUCTION OF AUTOMOBILE INDUSTRY

The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century, Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created. Brothers Charles and Frank Duryea introduced the actual horseless carriage in the year 1893. It was the first internal-combustion motor car of America, and it was followed by Henry Fords first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. Chauffeurs usually drove it and emphasis was on comfort and style rather than speed. During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body.

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The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessor was. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was built on compact and stylized lines, and was capable of 230 kmph (144 mph).This was the Indian automobile history, and today modern cars are generally light, aerodynamically shaped, and compact.

Facts & Figures The automobile industry in India is on an investment overdrive. Be it passenger car or twowheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone appears to be in a scramble to hike production capacities. The country is expected to witness over Rs 30,000crore of investment by 2010. Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors will be launching a mini and may be a compact car. Most of the companies have made their intentions clear. Maruti Udyog has set up the second car plant with a manufacturing capacity of 2.5lakh units per annum for an investment of Rs 6,500 Crore (Rs 3,200 Crore for diesel engines and Rs 2,718 Crore for the car plant itself). Hyundai and Tata Motors have announced plans for investing a similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 Crore to India.

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Tata Motors will be investing Rs 2,000 Crore in its small car project. General Motors will be investing Rs 100 Crore, Ford about Rs 350 Crore and Toyota announced modest expansion plans even as Honda Siel has earmarked Rs 3,000Crore over the next decade for India - a sizeable chunk of this should come by 2010 since the company is also looking to enter the lucrative small car segment. .Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have each announced well over Rs 1,000 Crore of investment. Mahindra & Mahindras joint venture with International Trucks is expected to see an infusion of at least Rs 500 Crore. Industry performance in 2008-09 The Indian automotive market managed to stand up to the vagaries of the economic meltdown to show slightly growth during fiscal 2008-09. Overall vehicle sales at 97.23lakh grew 0.71 per cent from 96.54lakh units in 2007-08. When major automotive markets reported a 30-40 per cent decline, only a handful of countries managed to show growth. A few months ago, India was looking at negative growth but has turned around. It is actually better than expected. Passenger vehicle sales at 15.51lakh registered flat growth while commercial vehicle sales showed a 21 per cent drop. SIAM has a positive outlook for the current financial year. While it foresees a 7-8 per cent growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent growth for passenger vehicles

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The passenger vehicle market has weathered the downturn largely due to market leader Maruti Suzuki which holds 48 per cent of the market. The compact car giant clocked 7.22lakh units for 2008-09. Closest rival Hyundai Motor India sold 2.44lakh cars, a growth of 13 per cent. Most premium carmakers saw volumes shrink last fiscal. Toyota Kirloskar Motors numbers fell 15 per cent to 46,892 units while Ford Indias sales were down 17 per cent to 27,976 units. Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while General Motors India was down 8 per cent to 61,526 units. Among commercial vehicle makers, all major players saw substantial fall in volumes. Market leader Tata Motors with a 60 per cent plus share, showed 22 per cent drop in numbers at 2.34 lakh units while Ashok Leyland showed 37 per cent drop at 47,632. Eithers sales volume fell 37 per cent at 17,341 units and Force Motors was down 28 per cent at 7,819 units. The freight movement is unlikely to improve this fiscal which will impact truck sales.

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History of Volkswagen

Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933, shortly after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make changes to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938 "KdF-Wagen", later known as the VW Kferor Volkswagen Beetle. When Chrysler brought out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler's mother. After some time, they planned to change some features regarding various aspects. These changes included better fuel efficiency, reliability, ease-of-use, and economically efficient repairs and parts. The intention was that ordinary Europeans would buy the car by means of a savings scheme ("Save five Marks a week, if you want to drive your own car"), which around 336,000 people eventually paid into. The VW car was just one of many KdF programmes which included things such as tours and outings. The prefix "Volks" ("People's") was not just applied to cars, but also to other products in Europe; the "Volksempfnger" radio receiver for instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16 September 1938. Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle we know today. It was one of the first to be evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.

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At the times of 1st world War, Volkswagen War meant production changed to military vehicles, the Type 82 Kbelwagen ("Bucket car") utility vehicle (VW's most common wartime model), and the amphibious Schwimmwagen which were used to equip the German forces. By 1946 the factory was producing 1,000 cars a month, a remarkable feat considering it was still in disrepair. Due to roof and window damage, rain stopped production and steel to make the cars had to be bartered for new vehicles. Volkswagens were first exhibited and sold in the United States in 1949, but only sold two units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a "Victory Wagon". Volkswagen of America was formed in April 1955 to standardize sales and service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically over the years, the total reaching one million in 1955. Sales soared due in part to the famous advertising campaigns by New York advertising agency Doyle, Dane Bernbach. Led by art director Helmut Krone, and copywriters Julian Koenig and Bob Levinson, Volkswagen ads became as popular as the car, using crisp layouts and witty copy to lure the younger, sophisticated consumers with whom the car became associated. Despite the fact it was almost universally known as the Beetle (or the Bug), it was never officially labeled as such by the manufacturer, instead referred to as the Type 1. The first reference to the name Beetle occurred in U.S. advertising in 1968, but not until 1998 and the Golf-based New Beetle would the name be adopted by Volkswagen. Volkswagen was in serious trouble by 1973. Beetle sales had started to decline rapidly in European and North American markets. The company knew that Beetle production had to end one day, but the conundrum of replacing it had been a never-ending nightmare. VW's ownership of Audi / Auto Union proved to be the key to the problem - with its expertise in front-wheel drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known as the Polo, Golf and Passat.

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Volkswagen Golf, sold as the rabbits in USA

While Volkswagen's range of cars soon became similar to that of other large European automakers, the Golf has been the mainstay of the Volkswagen lineup since its introduction, and the mechanical basis for several other cars of the company. There have been six generations of the Volkswagen Golf, the first of which was produced from the summer of 1974 until the end of 1983 (sold as the Rabbit in the United States and Canada and as the Caribe in Latin America). It would be produced in the United States as the Rabbit until the spring of 1984. The secondgeneration Golf hatchback/Jetta sedan ran from late 1983 to late 1991, and a North American version produced in Pennsylvania went on sale at the start of the 1985 model year. In the 1980s, Volkswagen's sales in the United States and Canada fell dramatically, despite the success of models like the Golf elsewhere. The Japanese and the Americans were able to compete with similar products at lower prices. Sales in the United States were 293,595 in 1980, but by 1984 they were down to 177,709.

Volkswagen had entered the super-mini market in 1976 with the Volkswagen Polo, a stylish and spacious three-door hatchback designed by Bertone. It was a strong seller in West Germany and most of the rest of Western Europe, being one of the first foreign small cars to prove popular in Britain. The second generation model, launched in 1981 and sold as a hatchback and "coupe" (with the hatchback resembling a small estate car and the coupe being similar to a conventional hatchback), was an even greater success for Volkswagen. It was facelifted in 1990 and was still selling well after 15 years, when it was replaced by the third generation Polo in 1994.

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The Volkswagen New Beetle concept, especially in North America.

In 1994, Volkswagen unveiled the J-mays-designed Concept One, a "retro"-themed car with a resemblance to the original Beetle but based on the Polo platform. Its genesis was secret and in opposition to VW management, who felt it was too backward-looking. Management could not deny the positive public response to the concept car and gave the green-light to its development as the New Beetle. The production car would be based on the Golf rather than the Polo, because the Polo frame was too small for the car to pass crash test standards in the U.S. It has been quite popular in the North America and is now gaining in the EU. Volkswagen group the Volkswagen Bora (the sedan, still called Jetta in the USA), New Beetle, SEAT Toledo, SEAT Len, Audi A3, Audi TT and Skoda Octavia. However, it was beaten into third place for the 1998 European Car of the Year award by the winning Alfa Romeo 156 and runner-up Audi A6. In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi), Bentley and Bugatti which were mainly due to Ferdinand Piech and added to the group portfolio.

Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195a dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles.VW plans to close out the decade with the release on several new vehicles worldwide and a barrage of advertising.

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The Fifth-Generation Golf

Volkswagen is recognized as one of the leading small diesel engine manufacturers, and is partnering with Mercedes and other companies to market BlueTec clean diesel technology, calling it Blue-Motion. Volkswagen has offered a number of its vehicles with a TDI (Turbocharged Direct Injection engine), which lends class-leading fuel economy to several models. According to the United States Environmental Protection Agency, four of the ten most fuel efficient vehicles available for sale in the U.S. in 2004 were powered by Volkswagen diesel engines

Electric and alternative fuel vehicles: Clean diesel

A Blue Motion Volkswagen Polo Volkswagen has been selling clean diesel-powered engines for the European market since 2003. VW developed Turbocharged Direct Injection (TDI) technology for diesel engines, and it offers a wide array of TDI powertrains. As modern diesel fuel economy is 30 percent higher than

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gasoline engines, a proportional reduction of greenhouse gases emissions is achieved with clean diesel technology. Volkswagen is also developing hybrid technology for diesel-electric. A VW Golf turbo-diesel hybrid concept car was exhibited in the 2008 Geneva Motor Show, which has a fuel economy of 70 mpg (3.3 liters per 100 km).

Electric vehicles: Volkswagen and Sanyo have teamed up to develop a hybrid vehicle battery system. Volkswagen boss Martin Winterkorn has confirmed the company plans to build compact hybrid vehicles. There will definitely be compact hybrid models, such as Polo and Golf, and without any great delay, with gasoline and diesel engines.

Flexible-fuel vehicles

The 2003 VW Gol 1.6 Total Flex was the first full flexible-fuel vehicle launched in Brazil, capable of running on any blend of gasoline and ethanol (E100).

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Volkswagen Group owns nine active automotive companies:

Audi : 99.55% ownership; the Audi marque is the sole active brand of the former Auto Union, bought from Daimler-Benz on 30 December 1964.

Automobili Lamborghini:, 100% ownership by Audi AG; company was bought in June 1998.

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Bentley Motors Limited,: 100% ownership by Volkswagen AG; the company (at the time known as Rolls-Royce & Bentley Motors Ltd.) was bought on 28 July 1998 from Vickers, but did not include the 'Rolls-Royce' brand name. The Rolls-Royce marquee was subsequently restarted by BMW who had licensed the brand from Rolls-Royce plc.

Bugatti Automobiles : 100% ownership via the Volkswagen France subsidiary of VWAG, Bugatti Automobiles SAS was created after Volkswagen purchased the right to the Bugatti marque.

SEAT, :- Initially cooperation agreement with Audi AG, 51% (1986) and 100% ownership by the VW Group since 1990, and was the first foreign subsidiary in the VW Group.

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koda Auto,:- 100% ownership since 1999.

Volkswagen Passenger Cars,:- 100% ownership.

Volkswagen Commercial Vehicles (VWCV) or 'Volkswagen Nutzfahrzeuge' (VWN) (German) 100% ownership; started operations as an independent entity in 1995. VWCV/VWN is in charge of all commercial vehicle developments within the Group and has control over Scania and is a shareholder in MAN AG.

Scania AB,:- 70.94% of voting rights as at 27 February 2009 .

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Mission, Vision & Values of Volkswagen

Vision Of Volkswagen Volkswagen wants to be the no.1 car seller in volumes overtaking Toyota by 2018. They call this vision as Mach18 . Their vision is to make this world a mobile, sustainable place with access to all the citizens. Their 10 brands all work together in different segments to define Volkswagen group ,as it stands today.

Mission Of Volkswagen The route has been mapped out, the strategy finalized: Our aim is to make the Volkswagen Group the leading automaker by 2018 economically and ecologically.

Core Values Of Volkswagen Safety Is Our Number One Priority Putting People First Respect For Individuals Client Service Diversity Excellence Teamwork

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SWOT analysis of Volkswagen

Strength 1. Wide range of cars which provides enough options to choose from 2. High brand presence and recall 3. One of the oldest car manufacturers, resulting into increased reach to masses 4. Owner of Audi, Bentley, Bugatti, Lamborghini, Skoda which gives a wide and large customer base 5. Has over 350,000 employees globally

Weakness 1. Intense competition from global Car manufacturing companies 2. Limited presence in emerging markets where some other brands have taken over the market

Opportunity 1. Create long term relationships with non-German car manufacturers 2. Implement continuous innovations in cars to stand competition 3. To enter different markets by offering cars with features attractive for the targeted market 4. Increasing purchasing power of people
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Threats 1. Innovative features included by competitors 2. Increasing fuel costs 3. Government regulations and policies to protect interest of local car manufacturers e.g. TATA in India

STP
Segment Car users looking for sedan, SUV, hatchback

Target Group Young executives, businessmen and urban families

Positioning Positioned as the biggest automobile giants

Competition
1. Ford 2. BMW 3. Toyota 4. Audi 5. Honda 6. Hyundai

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Achievements of Volkswagen
In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audi-developed Iltis, placing 1st, 2nd, 4th and 9th overall. Volkswagen enlists Dakar Champion Jutta Kleinschmidt, the first female to win the Dakar in 2001, to help design and compete a Dakar Racer. In 2003, VW replaced the ADAC Volkswagen Lupo Cup with the newly released Polo, to become the ADAC Volkswagen Polo Cup. In 2004, Volkswagen Commercial Vehicles enter the European Truck Racing series with the Volkswagen Titan series truck - it became back-to-back champions for the 2004 and 2005 series. In 2003, the Hannover based team starts with a 2WD buggy named Tarek. It places 6th outright but took 1st in the 2WD and Diesel class. In 2004, VW enters the newly developed Race-Touareg T2, finishing 6th overall and 2nd in the Diesel class. In 2005, an updated Race-Touareg with slightly more power is entered, with driver Bruno Saby, finishing in 3rd overall and 1st in the Diesel class! In 2006, Volkswagen released the most powerful Race-Touareg yet: the Race-Touareg 2. Five vehicles enter, with driver Giniel de Villers finishing in 2nd place overall, and 1st in the Diesel class. In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina. VW's Touareg race models finished 1st and 2nd

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Winner of numerous international awards and accolades worldwide.

2008 February 20, 2008 - Volkswagen Tiguan is voted SUV of the year by "OFF ROAD" magazine readers January 29, 2008 - Volkswagen receives award for increasing shareholder value January 29, 2008 - Value champions 2008: Volkswagen Tiguan and Golf Estate January 24, 2008 - Golf GTI is one of 10 Best Cars of 2008 January 18, 2008 - What Car? Award 2008: Double for Volkswagen January 17, 2008 - Prize for TSI and DSG: Yellow Angel 2008 Award for Volkswagens High-End Technologies Latest

2007 May 16, 2007 - Volkswagen models voted Company Cars of the Year April 20, 2007 - Volkswagen wins 10 gold at Fleet Awards 2007 March 27, 2007 - Multiple awards for Volkswagen advertising March 26, 2007 - "Innovation of reason" 2007: Award for high temperature fuel cell from Volkswagen January 4, 2007 - Volkswagen unveiled the cleanest ever TDI engine.

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2006 September 12, 2006 - Volkswagen Ranks First in J.D. Power Environmental Study September 12, 2006 - Aerodynamic package makes Volkswagen Passat an eye-catcher June 20, 2006 - Volkswagen receives environmental award from Federation of German Industries March 2, 2006 - Auto1 Award- The Passat is Europes Number One January 20, 2006 - Passat Awarded Renowned What Car Trophy as Best Family Car January 19, 2006 - The Passat is Germany's Favourite Car 2006-ADAC readers award Volkswagen the 'Gelber Engel' prize -

2005 and 2004 May 23, 2005 - The Passat - receives five star rating - top result in the Euro NCAP crash test April 8, 2005 - The Golf - more than 25 awards worldwide March 23, 2005 - Volkswagen Phaeton moving ahead February 16, 2005 - The new Passat launched with four different engines January 30, 2004 - The Volkswagen Touareg an outstanding off-road vehicle - International experts award prizes to the Volkswagen SUV -

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Volkswagen in India
Recently Volkswagen paved the way for sustainable market activities in India. With the investment agreement signed at the end of 2006 the brand sets a new course that unites two success stories Volkswagen and India.

Volkswagen AG is to build a new production plant in Pune in the Indian state of Maharashtra. With investment totaling some 410 million euros, a full production plant with a press shop, body shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial park near Pune. The German brand and Europes largest automotive manufacturer will be entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian market offering all the features of a genuine Volkswagen.

For the first step the Volkswagen brand will bring locally produced vehicles to the Indian market up from the third quarter of 2007. To accompany the growing supply of Volkswagen Passenger Cars, the Group has established a separate Indian sales company in 2007, initially for Volkswagen as well as for Audi. Volkswagen Group Sales India Private Limited registered in Mumbai will distribute locally manufactured and imported vehicles in India. Thus, Volkswagen can bring one of it's upper-premium sedan as the first locally produced vehicle to the Indian market. In April 2006, Volkswagen produced the 14 millionth of its bestseller. The Passat has become the very image of automotive progress, representing what Made in Germany means. This long-term success is confirmed by numerous accolades from

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experts, journalists and customers who have put the car through its paces in recent months. This image is characterized by vehicle size, drive technologies, safety features such as airbags, ABS and ESP in addition to quality details including galvanized bodies. Imported vehicles such as the premium Sports Utility Vehicle Touareg will complement the range.

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Products Profile for models available in India: Passat

Jetta

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Touareg

Vento

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Beetle

Phaeton

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Introducing POLO in India Volkswagen India launched its first small car, the Polo, in the domestic market in the early part of 2010. The car will be priced and positioned in line with the A2 compact car category, which includes models such as Maruti's Swift & Ritz, and be built on a new platform. The Polo will be made at the company's new manufacturing facility at Chakan, Pune, with locally sourced auto components being about 50 per cent.

"The all-new platform for the Polo has been designed keeping Indian road conditions in mind. The Polo will be benchmarked against the market leader in this segment, which is Maruti Suzuki's Swift. The Polo would be available in the petrol and the diesel engine variant. Company hope to sell around 30,000 units in 2010. Then, by 2014, and hope to cross the 100,000 mark, by which time the car market in India would have crossed two million units Till date, VW India has invested Rs 3,800 crore (Rs 38 billion) in setting up its operations in India. The facility at Chakan has an annual capacity of up to 110,000 cars on a single shift.

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Competitors of existing Volkswagen model in India

Competitors of JETTA (14-18lakhs) Honda Civic Hyundai Sonata(Emberra) Skoda Octavia Skoda Laura Toyota Corrola Altis Fiat 500

Competitors of Passat(24lakhs) Toyota Camry Honda Accord BMW 3series Skoda Superb

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Volkswagen India sales up 21.6%

Volkswagen Group India registered a growth of 21.6% by delivering 34,126 cars from January to March 2012 as compared to 28,072 cars during the same time period last year. "With the growth of 21.6%, we are on course towards further strengthening the position of the Volkswagen Group in India," said John Chacko Volkswagen Group Chief Representative India and President and Managing Director, Volkswagen India . With its headquarters in Pune, Maharashtra, the Volkswagen Group is represented by three brands in India: Volkswagen, Audi and KODA. Audi achieved a growth of 40.8% and delivered a total of 2,269 cars this quarter as compared to 1,611 cars during the same period last year. KODA delivered 11,505 cars showing a growth of 40% as compared to the deliveries of 8,217 cars during the January to March period last year. The Volkswagen brand delivered 20,352 cars in the said period with 11.6% growth as compared to 18,244 cars during the same period last year.

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What is the current market share of Volkswagen, how well are they performing in India?
VW is a one of the leading automobile manufacturer in the world. But nonetheless, the Indian market is not one which is so easy to tap. With market leaders like Maruti Suzuki and Hyundai, it has been tough for most brands to get a good hold in India. Even then, the brand recognition of VW has gone up from 8% to 54% in the past 4 years, with sales surging from 13000 to 1.1 lacs a year from 2007. Even when the roads were treacherous - in 2011-12 the automobile industry grew by 5% Volkswagen was burning rubber: its unit sales grew at over 50%. And last month, its luxury brand, Audi, unseated Mercedes to become the second-largest luxury car seller in India.

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With more and more makeovers and newer cars coming up, the sales of Polo have hovered around 4,000 in those months. Similarly, its sedan, Vento, sold around 4,000 in March 2011 and March 2012. But Hyundai's Verna is flying off the shelves - from 489 in March 2011 to 4,132 in March 2012. A proud John Chacko, chief representative, Volkswagen Group India, prefers to look at the bigger picture: "We changed the game." That's because in four years Volkswagen has become the sixth-biggest car company in India beating much older Ford and GM who have been here since the 1990s.

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Customers buying behaviour towards car

Service Package

Price

Customers buying behaviour towards car

Quality

Brand

Independent Variables

Dependent Variable

The element of service package A functional aspect like service have long been recognized as an important strategic weapon and is often regarded as a prerequisite to survive .Suppliers that offer poor service may undermine consumer attitudes, even when they provide good prices . Especially in the interpersonal and dyadic nature of buying a car, service is deemed to be an important element . According to Schroder, G.A (2003), three different levels of the service package were defined. The first level is called basic package, which consists of a one, three or five-year guarantee on the car, excluding the cost of maintenance. The second level is called complete package meaning a one, or five-year guarantee on the car, including the cost of maintenance. The final level

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distinguished is labeled plus package implying a comprehensive service package consisting of a one, three or five-year warranty on the car, including an exchange guarantee for fuel consumption, a pre-defined trade-in price after one, three or five years, but excluding cost of maintenance. The service component of business is becoming increasingly important for manufacturing companies, which has led many firms to strive towards a greater focus on service offerings.

The element of cars price There are a number of mental prices developed as consumers shop for products. These mental prices may be conceptualized as of two types: market-framed and personal. A market-framed price is one that uses information about the market place as a frame of reference. One such market-framed internal price is termed reference or expected price, referring to the price that consumers expect to pay for the product at some future time. Although price is a rather limited view of technical quality, it is usually considered as a trade-off between the financial offer a consumer is willing to pay in return for the perceived product value. Hence, the sensitivity of the consumer to price changes reflects the importance consumers attach to the value of the core product. Loyal customers are willing to pay a premium even if the price has increased because the perceived risk is very high and they prefer to pay a higher price to avoid the risk of any change. Basically, long-term relationships of service loyalty make loyal customers more prices tolerant, since loyalty discourages customers from making price comparison with other products by

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shopping around. Price has increasingly become a focal point in consumers judgments of offer value as well as their overall assessment of the retailer.

The element of cars brand Over the past 20 years the literature has consistently highlighted the importance of brand perceptions and the components of these perceptions, including brand image and associations. It is well documented that consumers perceptions of brands consist of brand awareness and brand image. Awareness of a brand is not likely to be enough to ensure a brand success, as it is not in itself likely to be sufficient reason to purchase a product. Successful brands must offer superior value to consumers and differentiate an offering from those of competitors. This is achieved by building a brand image. Brand image is defined by Keller as perceptions about a brand as reflected by the brand associations held in consumer memory. This image may appeal to consumers at a functional or symbolic level. The functional and symbolic elements of a brand allow it to serve a number of functions to the consumer. At a practical level the brand name can communicate a guarantee, while product benefits can communicate benefits such as; comfort, safety, duration.

At an emotional level a brand name may allow the brand to serve functions in personal identification, social identification and status (symbol of power or social status, reflection of social approval, exclusivity, contribution of emotional experiences or technical superiority), product aesthetics may also contribute to this emotional appeal.

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The element of cars quality Product Quality encompasses the features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. In other words, product quality is defined as fitness for use or conformance to requirement Quality refers to the correctness or appropriateness of an activity or fitness of an entity; it is compliance to a certain standard. the quality movement in the industrial world, beginning with Shewharts control chart technique , incorporating the views of operations, systems, behavioural, management function school, and encompassing Western and Eastern approaches, led to the development of the concept of TQM.

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Chapter III
Primary Data Questionnaire Conclusion Bibliography

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Questionnaire

1. Which car (fuel based) do u prefer? a) Petrol b) Diesel c) L.P.G.

2. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance d) Sound quality e) Safety

3. What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest

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4. What more do you expect from your dealer? a) Information about new cars b) Information about service and mileage c) Assistance regarding loans and insurance d) Understanding customer needs

5. Where do you get your car serviced regularly? a) At authorized service centre b) At a local workshop near my home

6. What other brand(s) will you seriously consider before making a car purchase? a) Honda b) MERC c) SKODA d) Volkswagen

7. Can you share your experience with after sale service support? a) Very much satisfied b) Satisfied c) Ok d) Not satisfied

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8. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI b) HDFC c) SBI d) Others

9. How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? a) I will not respond b) Lost my privacy c) Interested in knowing (if I feel a need of it)

10. Whats your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer

11. Whats your opinion on the price list of VOLKSWAGEN cars? a) Affordable by common man b) Affordable only by rich man c) Depends upon need of the consumer.

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12. Does Volkswagen provide value for money? a) Yes b) No

13. Do you prefer Volkswagen upon Hyundai? a) Yes b) No

14. Does Volkswagen keep upto German engineering standards? a) Yes b) No

15. Rate service provided at Volkswagen from 1-5. a) 1 b) 2 c) 3 d) 4 e) 5

16. Does Volkswagen brand name attract the customers more over the quality? a) Yes b) No

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17. Are local car companies like TATA, M & M & Maruti a threat to Volkswagen mid range car segment? a) Yes b) No c) Cant say

18. Are new entrants like Renault and Force a threat to Volkswagen? a) Yes b) No c) Not in all segments

19. Rate Volkswagen on a scale of 1-5 based on your overall perception about the company. a) 1 b) 2 c) 3 d) 4 e) 5 20) What about Volkswagen is more appealing out of the following? a) Brand b) Design c) Comfort d) Price e) Quality

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21) Does discount on spare parts and accessories induce you to buy a car? a) Yes b) No c) Cant say

22) How did you get to know about Volkswagen? a) T.V advertisement b) Magazines/Newspaper c) Friend d) Existing Customers e) Car Finance Companies

23) Which of the following Facilities/Services do you expect from the dealer? a) Quick Service b) 1 year free Insurance c) Discount on Accessories d) Home Delivery e) Discount on Spare Parts f) Installment Payment Facility g) Discount on Stereo System h) Vehicle Registration Process

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Conclusion
Customers in premium segment want to adopt change into their life style. This has fostered entry of varieties of premium cars available nation-wide to flourish in this market. This has enhanced the competition in this car segment. But Volkswagen with stood this competition by retaining its market share to be the highest in other nations and similarly growing in India.

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BIBLOGRAPHY

REFERANCE BOOKS: Marketing research : Tull and Hawkins

Marketing research

: A.Parasuraman, Dhruv Grewal and R.Krishnan.

INTERNET WEBSITES:
http://articles.economictimes.indiatimes.com/2012-04-23/news/31386799_1_volkswagen-indiavolkswagen-group-volkswagen-brand http://www.questo-pedia.com/index.php?qa=/25/current-market-share-volkswagen-well-theyperforming-india

www.volkswagen.com www.volkswagenindia.com http://www.usi.edu/business/cashel/331/CONSUMER.pdf http://www.mbaskool.com/brandguide/automobiles/1527-volkswagen.html

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