Case Study

Case Study

Case Study

Question 1

There were several issues pertaining to Skoda. The firm addresses each issue superlatively with an individual marketing approach. These issues are discussed as under;

Brand positioning

The most significant issue pertains to inappropriate marketing approach to build Skoda, as a brand. Brand positioning is defined as “the phenomenon of creating a unique brand identity based upon a distinctive brand promise”. The purpose of brand position in case of Skoda pertains to creating a higher brand position that is based upon customer satisfaction. Skoda was percepted as a low budget car, and therefore, there was no perception of loving to be the owner of Skoda. The company re-shuffled the marketing strategy, as well as, created a unique brand identity based upon creating a satisfying driving experience through Skoda (Davis, 2010, pp. 12-30).

Low market share

Irrespective of the premium product quality, the firm faced low sales revenues, whereas, the total market share of the company comprised of merely 1.7% of the total mainstream car market. The company carefully crafted seven different cars of premium quality, each with a different price range and for a different market segment. The company decided to pursue with a marketing campaign that encompasses of advertising, event marketing, as well as, potential customer (www.Skoda.com).

Competition

The market of the United Kingdom pertains to enormous competitive rush, with so many brands competing for cars. They encompassed of products with their own brand promise, such as, Audi's technology, or BMW's ultimate driving machine. Therefore, Skoda thought to render a USP encompassing of the consumer experience, rather than, the product. It promised about creating the perfect driving experience, so that, the owner would love owing the Skoda car. The USP was unique and captivating, and people appealed towards Skoda, for experiencing the driving experience and fell in love with it Davis, 2010, pp. 12-30).

The lack of strong product range

The product line of Skoda encompassed of a small product range, as compared to the competitors. These competitors pertain to sell 50 different car brands with over 200 different products. The strategy of Skoda needed to be highly prompt in dealing with the idea of large and extensive product line of the competition. As a response, the Skoda became a brand with seven different car models; each is designed with particular segment demands and needs in the mind, whereas, catered to seven different market segments as per their needs and wants. ...