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					The end of Skoda jokes and the rebirth
             of a brand.




              Skoda
Why does a Skoda have a heated
rear windscreen?



To keep your hands warm when
 you push it



What do you call a Skoda with
twin exhaust pipes?




A wheelbarrow
                                 These Things
              History of Skoda
• 3rd oldest manufacturer

• 40 year monopoly in a
  command economy

• In 1989 The Velvet Revolution
  led to a search for a partner

• VW took 30% share and started
  work in „91
             A well known brand
• 1999- 60% of British Citizens polled said they would never buy a
  Skoda

• Skoda's image was old, unfashionable and out of sync with its
  products.

• VW resisted the temptation to scrap the Skoda brand altogether.
  Despite its poor image in the UK, Skoda still commanded respect in
  Eastern Europe (This is important)

• ALSO, the Skoda brand had high “brand awareness” in the UK –even
  if it was for the wrong reasons – as well as a reliable distribution
  channel through a network of independent car retailers.
Types of Skoda Owners
          UK Car Industry Breakdown
         UK Market Total 2.6 million units 2000

                           % Market Share                                 Skoda
                                                                          Toyota
                              1. 37   4. 78
                                                4
                                                                          BMW
                                                       6. 92
                                                                          Peugeot
                                                               4. 66
41. 41
                                                                          Citroen
                                                                          Ford
                                                                 13. 99
                                                                          Honda
                                                                          Vauxhall
                                                    4. 06
                   6. 39               12. 42                             Renault
                                                                          Others
             Skoda Fabia
Super-Mini
                  The Fabia
• Segmented as a Super-Mini

• Unique compact design that differentiates
  itself from its rivals

• Reliability and quality

• Classless Image (for anyone to buy)
U.K Super Mini Segment




  33.9% of the total U.K Car Market
Competitors (2003)

 Manufacturer     Sales
 Vauxhall Corsa   108, 387
 Ford Fiesta      95,887
 Renault Clio     83,972
 Peugeot 206      82,667
 Fiat Punto       59,573
 Skoda Fabia      21,929
           Pricing Strategy
• £7,495 – £ 12,770 on the road (cheaper than
  competitors)

• But, ultimately, Skoda no longer needed to
  rely on price as a basis for competition
             A New Launch
The Fabia was launched with a number of
  television, print and poster ads

TV and print campaigns were supported by
 both PR and direct mail campaigns

The PR push targeted the consumer press
  and attempted to get journalists to discuss
  Skoda in a positive light
But…more work needed to
  Improve brand image
           Skoda Marketing
• Skoda has some fun in
  advertising…
                   Distribution
• By 2003 – Skoda dealer
  networks expanded

• Architecturally superb,
  ergonomically designed
  ‘flying wing’ showrooms

• By 2004/05 there are
  waiting lists! (people
  actually wanted one!)
                Promotion
- Self deprecating
 "The Fabia is a car so
 good that you won't
 believe it's a Skoda“


- Award winning
        Campaign Results

• Skoda saw a lower rejection rate than Fiat or
Citroen

• 60% of people polled agree that Skoda is
improving

• 84% believe the Fabia marketing campaign
makes a point in a clever way

• 29% Increase In Sales
      Skoda Fabia – A Success
• Award winning

• A change in perception of
  the Skoda brand

• Waiting lists!!

• New models like the R.S
                          Results
• UK market share increased


•Ranked 2nd overall in 2005 (J.D.Power, Customer
satisfaction)


•All Skoda models ranked in top 10


•98% of skoda owners would recommend to a friend, 95%
would purchase again


•Skoda overall satisfaction rating 87%
               Further Results
• The ŠKODA HOLDING group ended the
  first nine months of 2007 with an
  operational profit of 1.6 billion 1,6 billion
  Euros.

• “We anticipate that the results for 2007
  will be the best since the establishment of
  ŠKODA HOLDING group in 2000. We
  are expecting revenue levels bordering on
  13 billion Crowns and newly received
  contracts with a volume of 27 billion
  Crowns,” ŠKODA HOLDING CEO Jiří
  Zapletal.
                  Summary
• Maintained solid growth level

• Set up strategic partnerships with suppliers and
  distributors

• Created a loyal customer base

• Expanded customer base
              Conclusion
• Skoda has always had a well known brand
  image, but now it‟s a positive one.

• Negative attitudes were successfully changed
  due to a strong marketing strategy.

• VW put an end to the Skoda jokes successfully
  marketing the auto‟s merits

• The product has gone from „the brand from
  hell to one hell of a brand!‟

				
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posted:8/26/2011
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