SKODA CASE STUDY

Skoda Case Study



Skoda Case Study

Question 1

Two major problems were identified in the case of Skida:

Perceptions of the brand

This weakness was partly due to out-dated perceptions of the brand. These related to Škoda's eastern European origins. In the past the cars had an image of poor vehicle quality, design, assembly and materials. Crucially, this poor perception also affected Škoda owners. For many people, car ownership is all about image. If you are a Škoda driver, what do other people think?

From 1999 onwards, under Volkswagen AG ownership, Škoda changed this negative image. Škoda cars were no longer seen as low-budget or low quality. However, a brand 'health check' in 2006 showed that Škoda still had a weak and neutral image in the mid-market range it occupies, compared to other players in this area, for example, Ford, Peugeot and Renault. This meant that whilst the brand no longer had a poor image, it did not have a strong appeal either.

Change of Direction

This understanding showed Škoda in which direction it needed to go. It needed to stop being defensive in promotional campaigns. The company had sought to correct old perceptions and demonstrate what Škoda cars were not. It realised it was now time to say what the brand does stand for. The marketing message for the change was simple: Škoda owners were known to be happy and contented with their cars. The car-buying public and the car industry as a whole needed convincing that Škoda cars were great to own and drive. (reviews.cnet.com )

Question 2

The challenge was how to build on this and develop the brand so that it was viewed positively. It required a whole new marketing strategy. Škoda UK has responded with a new marketing strategy based on the confident slogan, 'the manufacturer of happy drivers.' The campaign's promotional activities support the new brand position. The key messages for the campaign focus on the 'happy' customer experience and appeal at an emotional rather than a practical level.

Skoda UK confronted its negative brand image by using subtle, intelligent humor in their ads to target Skoda “rejecters” - those who say they would not consider buying a Skoda (James, 2002). The advertisements used humor to help the consumer relate to the product. According to a survey, those who would consider buying a Skoda increased to 21 percent from 14 percent, the equivalent of one million potential new customers.

The campaign includes:

the 'Fabia Cake' TV advert. This showed that the car was 'full of lovely stuff' with the happy music ('Favourite things') in the background.

an improved and redesigned website which is easy and fun to use. This is to appeal to a young audience. It embodies the message 'experience the happiness of Škoda online'.

Customers are able to book test drives and order brochures online. The result is that potential customers will feel a Škoda is not only a reliable and sensible car to own, it is also 'lovely' to own. Analysing the external opportunities and threats allows Škoda ...