Skoda Auto - Octavia Marketing Campaign

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Skoda Auto - Octavia Marketing Campaign Powered By Docstoc


              JISHNU SASIKUMAR
              REG . NO : 09 PG 142
              MARKETING (A) ,ABS
Alliance Business School, Bangalore   Page 2
                       TABLE OF CONTENTS
                                  Description       Pg.No
             About the Company & Product              4
             Integrated Marketing Communication       4
             Promotional Mix                          4
             Advertisement                            5
             Sales Promotion                          6
             Interactive / Internet Advertisement     7
             Direct Selling                           8
             Public relations & Publicity             8
             Print Ads                                9
             Target marketing Process                10
             Message Strategy                        10
             Semiotic Perspective                    12
             Hierarchy of Effects Model              12
             Standard Learning                       14
             Creative Strategy development           16
             Message Structure                       18
             News paper Ads                          18
             Magazine Ads                            19
             Internet Ads                            19
             Few acclaimed results                   20
             Conclusion                              21

Alliance Business School, Bangalore                         Page 3
Company                : A subsidiary of Volkswagen group

Industry               : Automotive

Founded in             : 1895 by Vaclav Laurin and Vaclav Klement

Headquarters           : Mlada Boleslav, Czech Republic

The Skoda Octavia is a small family car produced by Czech automaker Skoda Auto since
1996, its name revived from a model originally produced between 1959 and 1971. The
current Octavia is available in five-door hatchback and station wagon. The car is based
on a VW Group platform shared with the Volkswagen Golf. There have been two
generations of the Octavia model to date

IMC is a concept of marketing communication planning that recognizes the added value
of a comprehensive plan which evaluates the strategic roles of a variety of
communication disciplines and combines these disciplines to provide clarity consistency
and maximum communication power.


The basic tools used to accomplish an organization‟s communication objectives are often
referred to as the promotional mix. These are of the following six types:

      Advertising
      Sales promotions
      Interactive marketing
      Direct marketing
      Publicity/Public relations
      Personal selling

Alliance Business School, Bangalore                                             Page 4

Just like most other brands, Skoda approaches television as a crucial mechanism for
building a dialogue with consumers. The television commercials focus on a theme
featuring a car that could handle the owner's loved one with care. Consumers perceive
such cues as an exciting offer and become committed to them. The brand positioning was
clear. Skoda Octavia was targeted at high net worth individuals. The message was about a
prestige carrier of the world's most powerful man. The reality with Indian markets is that
customers are extremely price-conscious. While making purchases based on emotional
appeal, there is a rational side which does have an effect on the decision to buy a
particular make and model of car. Globally, Skoda Auto commands significant brand
recall. Their claim to fame was always their pedigree. Skoda Auto realized the need to
communicate information about its product features.

The advertisements of Octavia are focused on the type of Skoda owners is depicted in
figure below:

Alliance Business School, Bangalore                                                Page 5

Sales promotions involve the marketing activities which provide extra value or incentives
to the sales force, distributors or the end consumer and can stimulate immediate sales. It
is of two types:

  i.   Consumer oriented sales promotions
 ii.   Trade oriented sales promotions

Skoda has also gone in for newer sales promotion initiatives such as selling cars through
the on-line medium to cut costs. It also introduced the concept of boutique showrooms in
a limited series to promote the brand. Online sales allowed to be booked on-line which
resulted in substantial savings in areas of distribution, dealer commission etc. Skoda Auto
India opened its first boutique showroom in Bandra, Mumbai. The boutique showrooms
will also be an automobile education center for children, students and auto enthusiasts
through interactive gatherings. The showrooms will also offer the Skoda Merchandise
collection, a complete range of high quality and exclusive Skoda branded products. The
boutique showroom concept echoes Skoda‟s philosophy to provide not just quality cars
but also a quality ownership experience to our customers. This concept is a step to bring
Skoda customers closer to the brand by providing them with a stylish and high level of
functionality with „Customer touch Points‟ in the high street areas of the metropolis
where our customers can have easy access to all the information around the automotive
and the Skoda world. Advantage of boutique showrooms are that it enhances brand
visibility in the market, Substantially lowers the cost of rent , Boutique showrooms allow
the brand to go closer to its customers, at a fraction of the cost of running a regular sized
Alliance Business School, Bangalore                                                   Page 6
dealership andBoutique showrooms are not only about selling cars; in fact, they stress on
the "brand & lifestyle experience".

                          Skoda boutique showroom in Bandra, Mumbai

A form of marketing communication through interactive media which permits two way
flow of information whereby users can participate in a and modify the content of
information they receive in real time.

Skoda offers an interactive platform for customers to seek information about the
products, accessories and dealers in its website

Alliance Business School, Bangalore                                               Page 7
Skoda emphasis on direct selling to target the prospective target group. Direct selling
revolves basically on a platform offered by dealers and distributors where in person to
person communication is established between sales person and customer and the sales
person tries to assist or persuade prospective buyers to purchase the company‟s product.
This direct interaction enables flexibility in product demonstration; tailoring segment
based messages and focused sales efforts to specific markets.

Publicity refers to non personal communication regarding an organization product or
service or an idea not directly paid for a run under identified sponsorship. Public relations
are a management function which evaluates public attitudes, identifies the policies and
procedures of an individual/ organization with the public interest and executes a program
of action to earn public understanding and acceptance.

Skoda focuses on community activities and events like sports rallies to improve its
publicity and public relations frame work. They also have initiatives for effective
disposal of old cars and accessories which is part of their corporate social responsibility.

Alliance Business School, Bangalore                                                   Page 8

The advertising strategy is pitched on safety. So there is a mother and kid print ad, and
the copy reads `we fill our airbags with life.' The proposition was centered on the fact that
Skoda Octavia comes with six airbags - a feature that safeguards the owner and his little
one. The advertising strategy is pitched on safety. So there is a mother and kid print ad,
and the copy reads `we fill our airbags with life.

Alliance Business School, Bangalore                                                   Page 9
Companies like Skoda develop different marketing strategies to satisfy different consumer needs.
This process is called target marketing and involves four basic steps:

       Identifying markets with unfulfilled needs : Need For Safety & Quality

       Segmenting the market : Dividing market to groups with common needs & similar

       Targeting specific segments :Differentiated Marketing ( Superb for Business Class, Fabia
        For middle Class)

       Positioning : A product delivering Quality and Safety


The message strategy and its creative execution are dynamic and keep changing time and
again. The changes in the taglines, logo and the celebrity endorsers reveal the company‟s
changing perspectives of the market over the years.

                                Slavia Logo (1895 – 1905): Bicycles and motorcycles were
                                made at the Mladá Boleslav workshop under the Slavia
                                brand. The logo was based on a wheel with lime leaves,
                                which were to symbolise the Slav nations. The names of the
                                company‟s founders (Laurin & Klement) were added and
                                later became the main motif for the new logo.

                                L&K Logo (1905-1925): The design of the L&K logo was
                                influenced by Art Nouveau, an artistic style at the beginning
                                of the 20th century. The initials of the company‟s two
                                founders are (probably in connection with the name Václav
                                Laurin or laurel, lat. laurus nobilis) surrounded by laurels in
                                the shape of a wreath, which has been associated with
Alliance Business School, Bangalore                                                    Page 10
                              victors and the famous since antiquity. The laurels possibly
                              foretold the success of L&K.

                              Skoda Logo (1926-1933): Cars were produced in Mladá
                              Boleslav under the Škoda brand from 1926. Although the
                              brand‟s name changed completely, the form of the new
                              product logo shows continuity with the previous stage. The
                              Škoda logo has a new, oval shape, but the brand name is
                              still the dominant element in the centre and is surrounded
                              by laurels.

                              Skoda Logo (1926-1990): The logo with the famous
                              “winged arrow” was first used in 1926. Its origin is
                              shrouded in mystery, sometimes the author of the idea (the
                              stylised head of an Indian wearing a headdress with five
                              feathers) is said to be the commercial director of Škoda
                              Plzeň, T. Maglič. The blue and white circular logo, which is
                              completed by a right-moving winged arrow with a stylised
                              pinion, is currently used on some original Škoda parts (e.g.
                              on window glass and engine blocks).

                              Skoda Logo (since 1999):Although the Škoda logo is
                              viewed as one of the most original and stylistically clean
                              manufacturing company trademarks in the world, the author
                              is not yet known. The black and green logo, which has been
                              used since 1994, gives the Škoda brand a greater degree of
                              originality – black symbolizes the hundred-year tradition,
                              green signalizes environmental production.

Alliance Business School, Bangalore                                               Page 11
Three components to every Marketing Message of Skoda :


   The heirarchy of effects model assumes that consumer passes through a series of
   steps in sequential order from initial awareness of product or service to actual
   purchase. Advertising communication may not lead to immediate bahavioral response
   or purchase rather a series of effects must occur over a period of time.

Alliance Business School, Bangalore                                         Page 12

          STAGE                  PHASE       MESSAGE                  SOURCE

                                                                 The main objective
                                                                 of source during
                                         The message tries       this phase is to
                                         to create awareness     build awareness.
                                         about the product       Skoda being a
                                         among its target        reputed brand will
                                         audience during         instill a sense of
                                         this phase              quality in the
       COGNITIVE                                                 featured product
                                                                 during this phase.
                                         Message during try
                                                                 The source will be
                                         to communicate the
                                                                 revitalizing its core
                                         benefits or features
                                                                 competency in all
                                         of the product
                            KNOWLEDGE                            information
                                         featured to
                                                                 conveyed to the
                                         inculcate learning
                                                                 target audience
                                         and reasoning the
                                                                 during this phase.

                                         The brand is aware
                                                                 The source will be
                                         to consumer but
                                                                 trying to relate the
                                         value proposition
                                                                 product to the
                                         offered is not clear.
                                                                 desire or want of
                                LIKING   To create a value
                                                                 the customer
                                         proposition for the
                                                                 during this phase.
       AFFECTIVE                         brand will the area
                                                                 Eg: Obsessed with
                                         of focus for all
          STAGE                                                  Quality Since 1895

                                         The message             The source will try
                                         during this phase       to compare and
                             PREFERNCE   will be focused on      rate quality, value,
                                         creating a              performance and
                                         preference in           other features to
                                         customer over           likely competitors

Alliance Business School, Bangalore                                          Page 13
                                              competitor            and thereby set a
                                              products available    bench mark
                                              in market

                                                                    During this phase
                                                                    customer prefer the
                                                                    product but lacks
                                                                    conviction to
                                              The message will
                                                                    purchase it. The
                                              try to build
                                                                    source will try to
                                              conviction in
                             CONVICTION                             build conviction
                                              customers for
                                                                    among interested
                                              purchase during
                                                                    customers by
                                              this phase.
                                                                    highlighting their
                                                                    offering as a best
                                                                    solution for the

                                                                    The Source will try
                                              The message will      initiate purchase
                                              be focused on         among the
     BEHAVIORAL                               creating a trial or   customer by
          STAGE                               purchase by           offering the
                                              attracting            product at low
                                              customers for it.     price, offering
                                                                    premium etc.

The advertisements of Skoda are focused on the Standard learning model, which is a part
of the three order model of information processing developed by Micheal Ray. The
classification sis based on two parameters that is Product involvement and Perceived
product differentiation

Alliance Business School, Bangalore                                            Page 14
The consumers in automobile sector belong to high involvement decision makers hence
the advertisements should be focused on to guide them through the three phases of
standard learning as listed below in sequence.

   1) Cognitive Stage

   2) Affective Stage

   3) Conative Stage

In general for standard learning model product differentiation and product involvement
are very high and consumers are to be guided through a Learn – Feel – Do path.

Alliance Business School, Bangalore                                           Page 15

Advertising Campaigns:

Advertising campaign is the set of interrelated and coordinated IMC activity that center
on a particular theme or Idea which appears in different media across specified time

The Ad Campaign Of Skoda Octavia was focused around the theme „The most well built
Luxury car‟.

Copy Platform:

It specifies the basic elements of the copy Platform

1)    Basic Problem: The basic Problem Skoda is trying to address is Consumers need for
     Quality and safety.

2)    Ad and Communication objective: A brand from a trusted manufacturer reputed for
     quality since 1895.

3)   Target Audience : The target audience includes premium class of People

4)   Creative Strategy Statement : Obsessed with Quality since 1895

5)    Supporting information and requirements : Relevant product related information
     provided with the ad

Search for Major Selling idea:

The major selling Idea of Skoda Motors is “Obsessed with quality since 1895”. The
company is trying to portray its product as a quality statement that has been proven in the
automobile industry for over years and hence continue to assure safety and quality to

Alliance Business School, Bangalore                                                Page 16
Alliance Business School, Bangalore   Page 17
The message structure of Skoda Octavia uses all five components effectively

   1) Order of presentation: Skoda consciously focuses on the Primacy and recency part
      of its Commercials. Generally it begins the ad highlighting the quality and
      supreme luxury making clear statement and towards the recency part ensures to
      make a verbal statement of Commitment. The Octavia ads had a verbal statement
      towards the end of the ad as „Yes, you will be Seduced”. This is an impressive
      way of communicating the message to the customers.

   2) Conclusion Drawing: Skoda ads generally are open ended ads since the target
      audience of Skoda Octavia is well educated and successful people. The Ad jus
      highlights the quality and safety platform that Skoda is offering to its customers
      and leaves the conclusion drawing part about the message to viewer‟s discretion.

   3) Message Sidedness: Skoda Octavia ads are focused on a one sided message
      appeal where there demonstrate the benefits and features of the product being

   4) Refutation : Refutation is not being addressed generally in commercials of Skoda

   5) Verbal and Visual Messages: Skoda delivers quality and safety statement in all its
      advertisements irrespective of the medium of transmitting the content of message.

Display Advertising is used my Skoda Octavia which uses illustrations, head lines, white
spaces and other visual devices in addition to the copy text. Due to extensive penetration,
flexibility and geographies selectivity newspaper ads are effective in reaching the target
audience of Octavia.

Alliance Business School, Bangalore                                                Page 18
Magazines are the most specialized of all advertising media. Most of the magazines are
targeted to a very specific audience. Skoda focuses its magazine ads to consumer
magazines and special automotive magazines like Top gear.


Octavia has used internet quite effectively to advertise and has been doing massive
advertisings through:

      Google ads
      BidVertisers i.e. they offer site-targeted pay-per-click text ads and image ads

Alliance Business School, Bangalore                                                Page 19
   •   Created a consumer affiliation to the product

   •   Positive consumer response

   •   Volume growth for the Skoda Octaviaoutstripped the market since launch

   •   Octavia sales far exceeded original launch response

   •   Chris Hawken became 2000 Marketer of the Year

   •   Fallon‟s creative won them an IPA Effectiveness gold award
Alliance Business School, Bangalore                                             Page 20
To conclude, the success of Skoda can be largely attributed to its ad campaigns in
television and other mediums. The company always comes out with a different „big idea‟,
which is followed by an excellent creative execution. Constantly striving to gain
excellence in advertising strategies Skoda has emerged as one of the best automobile
manufacturers of the world. Their effort in advertisement seems to pay back in
popularity, revenue and ever growing customer base.


Alliance Business School, Bangalore                                            Page 21

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