Case Study Skoda

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Page 1: Case Study Skoda



Page 2: Case Study Skoda

Rebranding Rebranding is the process by which a product

or service developed with one brand, company or product line affiliation is marketed or distributed with a different identity.

It may involve radical changes to the brand's logo, brand name, image, marketing strategy, and advertising themes.

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Rebranding cont‘dIt is aimed at the

repositioning of the brand/company to distance itself from certain negative connotations

of the previous branding to move the brand up-market

Rebranding can be applied to new products, mature products, or even products still in development.

Rebranding occurs through a deliberate change in strategy or occur unintentionally from unplanned, emergent situations

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The Škoda jokes!!!What do you call a Škoda driver who say's he has a

speeding ticket ?Answer: A Dreamer

What do you call a Škoda at the top of a hill ? Answer: A miracle.

How do you overtake a Škoda ? Answer: Run

What do you call a Škoda with twin exhaust pipes? Answer: A wheelbarrow

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Background of Škoda

Had a monopoly in car manufacturing in Czechoslovakia until the 1989 'Velvet Revolution‘

Czech government started looking for a commercial partner to revitalize its Škoda factories

In 1991, Volkswagen took a 30% stake in Škoda and it became part of the Volkswagen group, alongside Volkswagen, Audi and Seat

It invested over £2 billion in the plant, research, development and new models

Ten years later, in 2001, VW took total control of the business

The Felicia model was launched in 1994 in the UK

It was built as an old-style Škoda

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A VW marketing manager working for Škoda explained:

"We needed to move away from being a cheap brand to being a value for-money brand. At the same time, we badly needed to find our own positioning within the group, rather than just trading on being part of the VW Group. Otherwise, we might just as well have re-branded ourselves as VW, with very little reason for existence."

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Launch of the Octavia

Škoda’ s first VW-backed model was the OctaviaThe 1998 Octavia was built on the VW group platformCosts of the improved VW car (Škoda octavia)

structure pushed up Škoda pricesThe cars carried a higher price tag and Škoda needed

to convince consumers that this price was worth paying

It was launched in the UK with a £10m promotional campaign - Škoda's highest-ever spend on a marketing campaign

However, the Octavia launch was a failure. 6,154 Octavia cars were sold over the year

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Launch of the Octavia The car achieved almost unanimously good reviews in auto


Sixty per cent of people said they “would never buy a Škoda ”

A fifth of early Octavia buyers were under the age of 45

A third had previously owned Škoda cars

Image was old, unfashionable and out of date with the trend

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The strategy by Volkswagen

The strategy of VW was based on the issues below:VW resisted the temptation to scrap the Škoda

brand altogether during the periods of decline. However, Škoda still commanded respect in

Eastern Europe, and the Czechs loved it!! The Škoda brand also had high “brand

awareness” in the UK (though not favourable!!)A reliable distribution channel through a

network of independent car retailers

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The launch of Fabia A much smaller marketing campaign

But was considered very successful

An advertising message that poked gentle fun at Škoda’s customer perception:

“the fabia is a car so good that you wont believe it’s a Škoda ”

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Key elements of the promotional mix were as follows:

The Fabia was launched with a number of television, print and poster ads

The initial TV campaign ran for four-and-a-half weeks and the print and poster campaign ran for two weeks.

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

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The PR push targeted the consumer press and attempted to get journalists to discuss Škoda in a positive light

The direct mailings tried to build on loyalty levels among Škoda drivers and get across the brand's new image.

Auto Express magazine carried a competition to win a Škoda car that generated 27,000 responses.

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Impressive results!! July 2000, the near impossible finally happened -

Škoda had a waiting-list for its cars.

By the end of 2000, more than 11,000 Fabia‘s had been sold

Octavia sales were seeing a 29% increase on the previous year.

There was also a less obvious, but equally important shift in the public's perception of Skoda.

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Only 42% of those polled after the campaign said they would not consider buying a Škoda.

Many UK customers now don’t see a Škoda in front of them – they see a cut-price VW.

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Thanks for your attention

Questions !!!!