Date of Submission:

24/03/2012

SKODA:
Skoda is a very famous automobile company which was established in Czech Republic, in 1991 it subsidies to Volks Wagen group. Skoda was origin in the year of 1890s; they took started by manufacturing the bicycles. Voiturette is the successful make which led them to become famous in Australia, Hungary and many other countries of the world. Skoda during the First World War was busy in making the war productions. When the WWI finished they have started to make trucks, in 1924 the company is been hit by a fire after that incident they sought a partner. In result it merges with the Skoda works, which is the biggest industrial enterprise in the Czechoslovakia. Due to the world recession in 1930s the company had a great decline but in the late of 1930s the company gained a success. In Czechoslovakia there was revolution occur by the name of Velvet Revolution which bring a major change which result most of the industries were subjected to privatization. But for the Skoda Automobile the government did effort and brings the foreign partner. In 1991 it becomes the fourth brand of Volkswagen group. In Western Europe the perception of Skoda undergone completely change. Due to the advanced technology and attractive models the Skoda was initially slow to improve. Skoda was selling more than 30,000 cars a year in UK according to the annual report of 2005. Skoda has many manufacturing plants like in Saravejo, Bosnia and Herzegovina.

Marketing:
Marketing define as the managing the markets to bring about profitable exchange relationships by satisfying the needs, by creating value and wants. In other words it can also be defined as a process by which groups and individuals get what they want by exchanging and creating products and value with others. In order to create exchange relationships involves work. Seller must search the buyer, its needs, design, good marketing offers, and distribution. The purchaser often also does marketing when their need has to be fulfilled on the price which they can afford.

Marketing Philosophies:

The Production concept- customers often like those products to purchase which are widely available and inexpensive.

The Product concept- Consumers like to prefer which are good in quality or which have innovative features.

The Marketing concept: it is not important to find the right customer for your product but to find the right product for your customers.

Task 1: IADA MODEL:

AIDA is a simple acronym that was devised a long time ago as a reminder of four stages of the sales process (Strong, 1925). AIDA stands for Attention, Interest, Desire, and Action. It is fairly simplistic model according to the modern term. It doesnt mean that this is only whole story, but it is useful to for the guideline and checklist but not only the only source of guideline.

Attention:
In order to convey your message you need to first get their attention, you can get attention in many ways, the best way is to surprise them. The first few seconds are very important in those in which the other person with whom you want to talk analyze whether you are worth listening or not. It is highly required to pull them towards what you staying not push them as you may scared them by using in appropriate way and style of opening greeting. Good opening greeting could be started as:
Have you ever...? Are you noticing...?

Can you see...?

The bad opening could be like this which may bore them or feel them the old line which normally other salesman or street hawkers does for example:
I've got just the thing you want...? I just dropped by so that I might...? I was only wondered whether you could...?

Interest:
Once when you gain the attention continue to sustain the attention by getting the other person interest. Talk about their problems, listen to them Highlight the things which effect their problems Its better to demonstrate rather than just telling

Desire:
When you feel they are interested in you and what you are saying, the next step is to create desire in them for what you want them to do. They might be interested what you saying but this not the desire, desire are the motivation to act which leads them to next step. Desires are just like a Fire which can be stoked by different methods.
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Show them the items which you are displaying them are very less in the market and will be short very soon. (Scarcity Principle).

Tell them about those customers who have acquired it for themselves. Make them feel that this will help them to resolve their problem.

Action:
Action is the stage when the time comes to take action to achieve their desires or actually buy the product or proposal which you have presented to them. Listen to answer you getting from them like about the price or in how many days they could get it. Summarize your proposal for their problem and solutions of their problem which you will offer them. Use the appropriate closing technique, such as alternatives (do you want the red or the blue?) or presupposition (what time shall we meet next week?') Skoda extensively used AIDA model: A attention I interest D sire A action It used IMCM ( Integrated Marketing Communication Mix) which is optimum combination of all forms of promotional tools like in this case
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Skoda effectively used right combination of Advertising, PR, Direct Mail and Sales Promotion techniques. Skids also effectively used IPR model for setting communication goals of its campaigns which is : I nform P persuade Remind Initial campaigns on TV for 4 weeks and print and poster campaigns for 2 weeks created awareness and got the required attention Direct Mail was aimed to create intimacy and loyalty among existing Skoda drivers and also with potential users and it created desire. The strong backup of PR was aimed at spreading favorable WOM (word of mouth) among potential buyers. That created interest. Sales promotion scheme through Auto Express was effective in creating Desire though persuasion which led to final buying decision.

Task 2: Advertising Media:

Now there several methods available by which an advertising campaign can be done for a company. The most important is to selecting which type of media should be selected for the market campaign or which media would be beneficial for the organization. The procedure of selecting the right media is called a Media Analysis which can be defined as:
"An investigation into the relative effectiveness and the relative costs of using the various advertising media in an advertising campaign"

Before starting the marketing campaign it is important to conduct research Their habits, reading and watching television How many times a potential customers going to watch the advertisement How great a percentage of the market they wish to reach, etc

Above stated elements should be considered before executing the marketing campaign which will effectively reach its target audience with low price. The difference between Publish Media and Visual Media is below: Publish Media: Sunday newspaper
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Consumer magazine Trade and professional press Internet

Visual Media: Radio Cinema Billboards Direct mailing

Skoda main problem: The main problem for VW was related Skoda was to correct the brand image which was prevailing in the minds of the UK customers. This image projected SKODA as an old fashioned primitive technology with Eastern European Brand. Another challenge was the brand Skoda was being overshadowed by parent brand VW and faced an uphill task in establishing its individual identity. The challenge on the PR side was to get a favorable response from media which was definitely favoring other local UK brands.
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The challenge of initiating favorable word of mouth among existing users of Skoda cars was another biggest challenge faced by brand managers of Skoda.

Task 3:

The strategic concept of re-branding using brand re- positioning was used by Skoda

The technique of perceptual mapping which is a two dimensional plotting of consumer opinions. In this Skoda was plotted on the map against two dimensions namely Old versus Modern car and other dimension were fashionable versus old fashioned.

The overall launching can be described as AGGRESSIVE and bold rather than being defensive and conservative.

Another concept which is required is SWOT analysis leading to TOWS matrix which is about matching every strength and weakness with every Opportunity and threat.

S.W.O.T Analysis
Strength:
Skoda branded them in a sense that its customer could get satisfaction with their cars.
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 Skoda conduct the research with the owner of skoda cars for atleast six months asking them how they feeling using the car.

Skoda is ranked fifth in top manufacturers for the last 13 years. Skodas Octavia model has also won the 2008 Auto Express Driver Power Best Car.

Weakness:

Skoda has only 1.6 market share. Which limit it to a very short player in the market for the car manufacturers.

These cars have the image of poor quality vehicles, design and assembly. Skoda has a very high maintenance cost.

Opportunity: The owners of Skoda loved their cars more than other competitors like Renault, fiat.
It must focuses on its existing strengths and can provide cars focused on the customer experience

It can enable to differentiate the Skoda brand to make it stand out from the competition.

Threats:
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Skoda competitors cars are much cheaper which make it to lose the market share

Skoda needs variety of strong product range to compete in India and also globally.

References:

www.wiki.answer.com. 2012. What is AIDA model. [ONLINE] Available at:http://wiki.answers.com/Q/What_is_the_AIDA_model. [Accessed 23 March 12]

www.glowa.ca. 2002. Advertising process models. [ONLINE] Available at:http://www.glowa.ca/Advertising_Process_Models.pdf. [Accessed 23 March 12]

www.tutor2u.net. 2012. Advertising media. [ONLINE] Available at:http://tutor2u.net/business/marketing/promotion_advertising_media.asp. [Accessed 21 March 12]

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www.marketing91.com. 2010. SWOT Skoda. [ONLINE] Available at: http://www.marketing91.com/swot-skoda/. [Accessed 19 March 12].

http://www.apicconsultants.co.uk. 2008. Introduction to marketing. [ONLINE] Available at:http://www.apicconsultants.co.uk/downloads/Introduction_to_Marketing_v4 %20.pdf. [Accessed 19 March 12] http://www.autoebid.com. 2002. Skoda background and news. [ONLINE] Available at:http://www.autoebid.com/new-car-reviews/Skoda-Reviews. [Accessed 19 March 12] www.scribd.com. 2012. Marketing. [ONLINE] Available at: http://www.scribd.com/coolhotimm/d/23976394-Marketing-Definition. [Accessed 19 March 12]

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