VOLKSWAGEN IN INDIA

Volkswagen in India

Volkswagen in India

Introduction

The aim of the paper is to focus on one multinational company targeting one of the BRIC countries (Brazil, Russia, India and China). For this purpose, a German multinational company is chosen, Volkswagen entering the Indian automobile market. Volkswagen was one of the multinational companies to enter the established and successful automobile Indian industry in 2001. There were already many multinational and local companies in Indian automobile market to hold a considerable amount of market share. Therefore, Volkswagen put in extra effort to capture the customers and to achieve market share. This was a challenge for Volkswagen as already European and Japanese brands were established in the country. Volkswagen was the 18th brand to enter Indian automobile market (icmrindia.org).

Discussion

Volkswagen adopted many strategies to establish its Indian market. Some of the strategies adopted and implemented are as follows.

Mach 18 Strategy

Through this strategy, Volkswagen acquired 19.9% share of Suzuki Motors so that the company can have a market share in Indian automobile market. This merger and acquisition of shares aims for the global joint venture. This strategy focuses on being more ecological, synergetic and bringing up more of entrepreneur's thinking (icmrindia.org).

Launching of Different Models

With time to time, Volkswagen started to launch different types of cars for different types of customers with competitive prices to capture the target market. This launching of different products introduced many different cars in the market. The different brands included Skoda in 2001, Passat in 2007, Jetta in 2008, New Beetle and high-end SUV Touareg, Polo and Vento in 2009, Fabia in 2012 (icmrindia.org).

Advertisement Campaigns

Volkswagen brought innovation in advertisements in India. For the first time in newspaper history, Volkswagen campaigned through a talking newspaper. With the support of Times of India, a mini device was embedded in the newspaper which talked ...