Volkswagen : Beetle

Volkswagens Original Bug

Popularly known as the Volkswagen Beetle, beetle is an economy car produced by the German auto maker Volkswagen from1938 until 2003. With over 21 million manufactured, Beetle is the longest-running and most-manufactured automobile of a single design platform anywhere in the world. During 1980s the Beetle run in the US ended due to National highway act & Clean air act. In 1974, Volkswagen's own front-wheel drive Golf model that succeeded the Beetle.

Volkswagens New Beetle

Introduced by Volkswagen in 1998, drawing heavy inspiration from the exterior design of the original Beetle. . It Launched in India on 4 Dec 2009 and will give competition to the Fiat 500, which has received with quite a good response with the consumers. It is currently assembled in VW Puebla factory in Mexico, the company says that if they touch about 2,000 units a year, they will look at a possibility of assembling it here in India.

Areas of concern for the new beetle.

Price : The company has launched only one variant of the car and it will be imported as a CBU (Completely Built Unit) from company's Mexico based manufacturing plant which increases the Volkswagen Beetle price to a large extent. Marketer were expecting the new beetle to be anywhere between 15-20 lakhs however it was launched at 21,22,592 in Delhi ( + Registration charges + Octrai Charges + Insurance) Rs 20,89,197 in Mumbai, 21,41,459 in Kolkata, 20,45,416 in Chennai , 21,50,894 in Bangalore & 20,81,779 in Hyderabad Place : Currently the new beetle is available at 60 centers across India however dealers are in no confidence with low marketing budget as the operating margins are reducing in competition from other Sedan. Promotion : The old love to launch as new affair was given a new image by relating the product to young generation in order to materialize the emotional attachment with the old Beetle, as the brand awareness was already there just needed to materialize the emotional attachment of the people with the car. The second phase of campaign highlights the curvy image of the past with technology of future while emphasizing curves are back positioning thus reaching the maximum audience while targeting the young workforce.

SO WHOM IS

TALKING TOO

Male,25+,SEC A

 Compact  Mid-Segment  Premium  Super Premium

Beetle competed within this segment

So what is important for this Premium segment ???

Decreasing Importance of Criterion
Main Crit erion f or t he Prem ium Segm ent 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Safety Advertising Dealer Status Symbol Extra features offered with the car Personal experience Personal recommendation Looks of the car Fuel consumption Speed / Power Loan facility Reliability Comfort Price

Source: TGI 2010, Cars bough in the last 2 years

Automobile Category Snapshot: India

Some landmarks in the India Automobile Industry

Introduction (1928-1983)
 1942

& 1944: Hindustan Motors and Premier Automobiles started Government decree to allow only firms manufacturing locally, 7 approved

 1953-55:

Reformation (1983-1990)
 First

phase of policy liberalization & Entry of foreign collaborations Maruti Udyog started as JV with Suzuki of 5 automobile manufacturers in India

 1983:

 A total

Deregulation & Growth (1991-1999)

 De-licensing  1993:

in 1991 put the Indian automobile industry on a new growth trajectory

Lower customs duties on components Industry grows at over 25%

 1993-00:  Several

JVs with foreign firms

Export Orientation (2000 onwards)

 2001:  Tata

Euro I & II emission norms enforced, with JVs with foreign firms for exports

Indica in UK, Bajaj & Hero Honda 2 wheelers in Latin America loses ground to foreign players upgrade from 2 wheeler to 4 wheeler and from economy to higher end 4 wheelers
Source: CITGE Paper, Auto Junction - IndiaMart

 Maruti

 Consumers

Extra Information if you want we can use the same, it from the software access that we have in my office.
2010 Q1 Product Penetration Est. Households (000s) Penetration - Consumer Durables Air Conditioner DVD Player Vaccum Cleaner Microwave Oven Digital Camera Video camera / Cam Corder PC/Desktop Computer Internet access at home TV LCD/Plasma/HDTV/Projection TV Refrigerator Washing Machines Automobile 2 wheelers Music System 1 9.2 0.5 0.8 1 0.2 2.1 1 49.3 0.5 15 5.3 2.1 16.7 17.5 3 20.2 1.6 2.3 2.8 0.6 6.2 3.1 78.6 1.4 35.1 14.7 5.2 29.4 22.7 * 4.5 * * 0.2 * 0.3 * 36.5 0.1 6.2 1.1 0.7 11.2 15.2 All 229631 Urban 69565 Rural 160066

Base: SEC ABC, 15+ Penetration Car-Jeep-SUV 8% 29% 22% 10% 14% 8% 5% 4% 12% 8% 7% 5% 4% Reported

TOTAL A1+ A1 A1A2 B1 B2 C Metro 10 - 40 Lakhs 5-10 Lakhs 1-5 Lakhs Less than 1 lac Jan-Jul 10

Jan-Jul 09

Reported INR Cr

Rank 1 2 3 4 5 6 7 8 9 10

Categories Educ-educational Institutions Social Advertisements Cellular Phone Service Toilet Soaps Auto-cars/jeeps Independent Retailers Properties/real Estates Auto-two Wheelers Corporate/brand Image Soft Drink Aerated

2,755 2,269 2,239 1,887 1,883 1,236 1,222 1,103 1,056 990

Rank 1 2 3 4 5 6 7 8 9 10

Categories
Educ-educational Institutions Social Advertisements Properties/real Estates Auto-cars/jeeps Cellular Phone Service Toilet Soaps Independent Retailers Cellular Phones Display Entertainment Corporate/brand Image

Total 3,114 2,202 2,106 2,083 1,950 1,919 1,713 1,605 1,428 1,357

Source: TGI & IRS 2010

Some realities about India By 2016 the size of the Indian automobile industry is expected to grow by 13%, to reach a mark of US$ 120-159 billion. Presently, India is the 2nd largest two wheeler market in the world and fourth largest commercial vehicle market worldwide. India is the 11th largest market in the passenger car segment globally which is expected to become the 7thlargest market by 2016. To drive this growth, Indian Automobile Industry is geared for a massive 30 Billion Investment spread over the next 4 Years

Thank You