Skoda rebranding strategy analysis

In all UK car market Skoda’s outlook is very positive. By the year 2003 Skoda has 2.6m unit market share in the competition of Toyota, BMW, Peugeot, Citroen, Ford, Honda, Vauxhall etc. and there was a record in 2003 2,579,050 million new car registration. Skoda’s market share was 1.33 and in the year 2004 it was increased to 1.37.

History of Skoda

Skoda has a monopoly in manufacturing in Czechoslovakia until the 1989 “Velvet Revolution.” After the Czech government started finding trade partner factories for its new Skoda.

Volkswagen has a 30% stake in Skoda in 1991 and started working in training and education of Western standards of quality manpower. It involves over £ 2 billion in research and development of plants and new models. Ten years later, in 2001, VW has full control of the business.

Two launches new camp was well received by the Skoda automotive press. Felicia – commenced in 1994 is built like a Skoda old style, but enjoys the benefit of VW characteristics. In1998, Octavia is built on the platform of the VW group.

The cost of improving engine structure Skoda VW pushed up prices. Cars carry a high price tag and Skoda needs to agree their consumers that the price was worth paying.

Rebranding strategy

There are just so many reasons to rebrand the business as there are ways to do it. Some reasons are positive (two organizations are merged or the company has significantly expanded its range), while other less promising (now a tainted brand, or old-fashioned way).

Whatever the reason for relocation is not the right way and a wrong way to go about it. The first step is to determine whether the rebrand, which usually is the reason to change the market perception. There are two types of rebranding strategy which are follows.

Partial rebrand

Situations where the brand is firmly established only outdated, or must be updated due to addition of new products or services, greater need for the preparation of such a scale rebrand. In these cases, you do not want the value of the brand for many years designed to eliminate, but only subtle changes to it or change it to submit a full proposal.

Total rebrand

Corporate mergers often do a complete rebrands. When organizations are able to create a brand, or have any kind through the scandal, restore the general can be a procedure. In these cases, the goal of brand identity prior to eradicate and replace them with entirely new graphics and messages.

Sales of Skoda

The company said that 378,747 vehicles sold in the first half of 2010, an increase of almost 15 percent compared to same period last year.

Brand to take advantage of growing demand in Europe due to the wide availability of scrap page schemes introduced by governments to promote car sales during the economic downturn. But the biggest sales success in China, where Skoda sold 84.135 vehicles from January to June 2010, 82.3 percent more than the first half of 2009.

Best-selling model worldwide Skoda Octavia was selling 158,024 cars, followed by Yeti (25,868 vehicles) and beautiful, which accounted for 47,830 cars sold – nearly 150 percent growth. In addition, 111 967 14 900 Roomsters Fabias and customers are assured.

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

210,020

0.19

The Fabia has good quality and reliability and classless image and good statistics performance compare to 2.0ltr and115bhp model.

There are no less car-maker, and all the military business sign. This is a time of creative and courageous Marketing all in line. Customers appreciate honesty and humor, so these are the two best routes to take. Past quirky Skoda can spin as a positive image, and a substantial part of the total mark.

It is a difficult year for auto companies, but most successfully against the likelihood of offering high quality products and solid brand. Skoda is not completely defeated by the community, but switch to a brand new and higher value, well-developed.

How successful Skoda has been?

This chart shows profit after tax from 1999 to 2003 which decreases after 2000.

The re-branding of Skoda provides useful data of the challenges faced by brands wishing to shift themselves.

Critics of the Skoda would be surprised to hear the Skoda is now one of the fastest-growing car brands in the UK motor industry. The Czech car company promoted its sales in the UK in 2001 by 24% as other side the average market growth of 10.7%. This built on growth of 34% in 2000.

Launch of the Octavia

The first model of VW-Skoda Octavia support in the UK, with £ 10 million advertising campaign Skoda highest ever spent on marketing campaign.

But Octavia was launched failure. Latest 6154 Skoda cars all start the car next year, despite the fact that the car reaches almost unanimously good reviews. During the market research suggested that sixty percent of people said that they “never buy a Skoda.

Only a fifth of Octavia early buyers were under age 45 and a third previously owned Skoda cars. Image Skoda was old fashioned and out of sync with its product.

VW’s Strategy

VW Skoda brand to resist the temptation to withdraw completely. Despite its poor image in Britain, Skoda still commanded respect in Eastern Europe and has its own, other countries in Western Europe.

The Skoda brand also had high “brand awareness” in the UK -even if it was for the wrong reasons – and a reliable distribution channel through a network of independent car retailers.

Skoda Fabia was the next product launched. It started with the ad campaign, much less marketing and a message that poked gentle pleasure perception consumers Skoda:

“The Fabia is a car so good that you won’t believe it’s a Skoda”

Key elements were as follows:

• The Fabia was launched with television, print media and poster advertisements.

• They starts with 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.

• The PR push targeted the customer press and attempted to get journalists to discuss about Skoda in a positive side.

• The direct mailings tried to build on dedication levels around Skoda drivers and get throughout the brand’s new image.

• Auto Express magazine becomes a competition for the Skoda car which generated 27,000 responses. Who had won the car with their consent that to see the profile of average Skoda driver and navigator? Hot prospects to get a scale model of comfort prize and an invitation to test drive a full model.

Impressive results

The results of the marketing campaign were impressive. More than 11,000 Fabias had been sold by the end of year 2000 and because of that Octavia sales were rising by 29% in the previous year. Skoda had a waiting-list for its cars in July 2000 which was really impossible but it happened.

There was also a less apparent, but equally important shift in the public’s perception of Skoda. Only 42% of those canvassed after the campaign said they would not look at buying a Skoda.

Now many UK consumers do not see a Skoda in front of them instead of that they see a cut-price VW.

CONCLUSION

However, by using of rebranding strategy Skoda’s share price increased in UK, ranked 2nd in year 2004. They got 87% customer satisfaction. They improved their quality so 95% out of 98% people who owned Skoda says they would recommend Skoda to their friends. This strategy helped a lot like increases in share price, increase in revenue and last but not the least all Skoda models was ranked in top 10 by the survey and increased profitability by 9%.