Published on November 15, 2007
The Death of the Skoda Joke and the Rebirth of the Brand. : The Death of the Skoda Joke and the Rebirth of the Brand. Objectives: Objectives Defining the business Portfolio analysis Environmental situation Internal appraisal Strategy and the future Car Industry: Car Industry Car industry divided between 6 key multinationals Skoda is part of the Volkswagon group Competes with Volkswagen!!! History of Skoda: History of Skoda 3rd oldest manufacturer – 1885 40 year monopoly in a command economy Velvet Revolution led to search for partner VW took 30% share and started work in ‘91 UK Car Industry Breakdown: UK Car Industry Breakdown Sourced from www.smmt.co.uk UK Market Total 2.6 million units 2003 Environmental Analysis: Environmental Analysis Overall the UK new car market outlook is positive. 2003 was a record year - 2,579,050 million new car registration Christopher MacGowan (SMMT)– “we could be looking at a fourth consecutive record year. March has surprised everyone with the sale of 450,000 units.” In 2003 skoda’s share of the market was 1.33 March 2004 it was 1.37 Skoda Statistics: Skoda Statistics Sales: Sales Sales were down in the UK IN 2003 Down 3% to 37,103 This will help explain its drop in Market Share (1.5% to 1.33%) Slide9: Fabia Octavia Superb Segmentation of UK Car Industry PMP for 3 Vehicles: PMP for 3 Vehicles Porters Five Forces: Porters Five Forces Threat of Entrants (V. High) Power of Suppliers (V. Low) Threat of Substitutes (V. low) Power of Buyers (low) Rivalry Rivalry (V. high) Three Types of Skoda Owner: Three Types of Skoda Owner Skoda Fabia: Skoda Fabia Slide14: U.K Super Mini Segment 33.9% of the total U.K Car Market U.K Super Mini Segment: U.K Super Mini Segment Market trends: - Styling - More Luxury Features - Record Diesel Sales - ‘Greener Cars’ Competitors: Competitors Manufacturer Sales R.M.S Corsa 108, 387 1 Fiesta 95,887 0.884 Clio 83,972 0.77 206 82,667 0.76 Punto 59,573 0.55 Fabia 21,929 0.19 The Fabia: The Fabia ‘Compact Yet Confident Stance That Marks It Out From Its Rivals’ Reliability and Quality Classless Image Good Performance Statistics – Particularly the 2.0 Litre 115 Bhp Version Estate Version has no real rivals Pricing Strategy: Pricing Strategy £7,495 – £ 12,770 On The Road No Longer Relies On Price As A Basis For Competition Tactically Positioned Between Competitors Distribution: Distribution 1980’s, “Trying to Sell Skoda’s is Like Trying to Sell Nuclear Waste” Now - Dealer Networks Expanding Architecturally Superb Ergonomic Designed ‘Flying Wing’ Showrooms Waiting Lists! Promotion: Promotion - Modest Budget For Advertising Campaign - Self Deprecating - Marketing Method - Award Winning Campaign Results: Campaign Results Skoda has lower rejection rate than Fiat or Citroen 60% agree that Skoda is improving 84% believes the campaign makes a point in a clever way 29% Sales Increase The Headlines: The Headlines Skoda Fabia – A Success?: Skoda Fabia – A Success? Award Winning Changing The Perception of Skoda’s New Models e.g the R.S Waiting List!! However - No Breakthrough into the Big 5 & Sales are Falling Off How successful has the company been?: How successful has the company been? Slide25: Skoda Sales by Model 1999-2003 Market share: Market share Selected Financial Data: Selected Financial Data Results: Results UK market share increased Ranked 2nd overall in 2004 (J.D.Power, Customer satisfaction) All Skoda models ranked in top 10 (Which Car? Survey) 98% of skoda owners would recommend to a friend, 95% would purchase again Skoda overall satisfaction rating 87% Slide29: Summary Maintained a good growth level Set up strategic partnerships with suppliers and distributors Loyal customer base Expanding customer base Looking to the future optimistically Outlook/Strategy: Reinforce current position. Development markets in Eastern Europe and Asia Increase profitability (ROI 9%) Continue to upgrade production technologies and processes Re-launch website Outlook/Strategy Slide31: 2004 Marketing Strategy Develop The Roomster model Launch the 2nd generation Octavia Concentrate on existing customers To implement the company strategy based on EMOTIONALISING THE BRAND AND GIVE IT A SHARPER PROFILE IN INTERNATIONAL MARKETS Slide32: Conclusion Skoda has a well known brand name (albeit for the wrong reasons) Attitudes are changing and it is time for a rethink of the marketing strategy Put an end to the jokes and market its merits The product has gone from ‘the brand from hell to one hell of a brand!’ Slide33: Thankyou For Your Attention Are There Any Questions?