Business Organisation 75

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Business Organisation &Management

Project

12/12/2011


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This project entitled Comparative Study of Advertising analysis ofVolkswagen & Volvo is

Volkswagen Volvo

www.volkswagen.com www.volvo.com

Submitted by Students of Aroma College of Commerce

of

Third Year B. Com

_

Meera Thaker, Palak Upadhaya, Rutumbhara Yagnik, Shefali Singh,

Sudha Yadav, Swati Trivedi and.
http://www.volkswagen.com/http://www.volvo.com/http://www.volkswagen.com/http://www.volvo.com/


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We hereby acknowledge the courtesy and prompt

response of all those people without whom this project would not been done.The satisfaction euphoria that accompanies the successful completion of any

work would be incomplete, unless we mention the name of the person, whose

constant guidance and encouragement served as a beckon of light and crowned

our efforts with success. We consider it a privilege to express through the pages

of this report, a few words of gratitude and respect to those who guided us in the

completion of this project prepared on the topic Comparative study ofadvertising strategies of Volvo & Volkswagen.

First of all we thank the Almighty God, due to whose

grace we were able to prepare this report. We extend our heartfelt thanks to our

beloved parents without whose support we would not have reached here. We

would also like to extend our grateful appreciation to Mrs. Nirjari and Prof.

Jaynil Dave for their guidance and support in this part of my academics. We are

even deeply thankful to all our professors and the principal for making us who

we are by teaching & guiding us. Also we give our heartfelt thanks to all our

dear friends for helping us to complete the project. They constantly guided us

from the first day till the completion of our project.

Last but not the least, we would like to thank each other ourselves

for preparing this project. It was an enriching and enlightening experience to

work together, without each others support this project would not be possible.

by, Meera Thaker, Palak Upadhaya, Rutumbhara Yagnik,

Shefali Singh, Sudha Yadav and Swati Trivedi.


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Contents___________________________________

Declaration....................................................................................... 2

Acknowledgement........................................................................... 3

Preface............................................................................................. 5

Automobile sector........................................................................... 6

In Brief............................................................................................ 8

Meaning

Quarters

Brands & Products

Management

Aim

Over view........................................................................................ 10

History............................................................................................. 12

Advertising...................................................................................... 18


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Preface_______________________________________

This project is based on Advertising Strategies of two

automobile companies i.e. Volkswagen & Volvo. India with its growing

economy rate is largely due to industrial development especially automobile

sector. The two-wheelers and three-wheelers sales are surplus to the Indian

Economy. This projects main motive was to compare the two car

manufacturers advertising strategies and which one of them has been the most

successful in having the major junk in the pie.

The reason to take Volkswagen & Volvo as the two

automobiles is: They have been just recently introduced themselves in the

Indian market which is much competitive already because of Tata, Maruti,

Mahindra and Mahindra, Hyundai, Suzuki, etc. So the main question is how did

they compete this market and brought themselves forefront; what were theirstrategies? Our main objective here is to find out information, compare and

critically analyse the competitive advertising strategies of both the companies.

This project has been completed by collecting information

from net services; like Google, Facebook, and their individual Websites. In the

entire project we learnt how various aspects like consumer behaviour,

advertising, stability/consistency, its run-down/maintenance, etc. affects the

manufacturing of the product.

Needless to say errors and omissions are bound to occur but we ruminate that

this project will find itself into the proper context with its readers.

by, Meera Thaker, Palak Upadhaya, Rutumbhara Yagnik,

Shefali Singh, Sudha Yadav and Swati Trivedi.


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Automobile Sector_____________________________

The Automotive industry in India is one of the largest in

the world and one of the fastest growing globally. India manufactures over 11

million vehicles (including 2 wheeled and 4 wheeled) and exports about 1.5

million every year. It is the world's second largest manufacturer of motorcycles,

with annual sales exceeding 8.5 million in 2010. India's passenger car and

commercial vehicle manufacturing industry is the seventh largest in the world,

with an annual production of more than 2.6 million units in 2010. In 2010, India

emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South

Korea and Thailand.

As of 2010, India is home to 40 million passenger vehicles

and more than 2.6 million cars were sold in India in 2010 (an increase of 26%),

making the country the second fastest growing automobile market in the world.

According to the Society of Indian Automobile Manufacturers, annual car sales

are projected to increase up to 5 million vehicles by 2015 and more than

9million by 2020. By 2050, the country is expected to top the world in car

volumes with approximately 611 million vehicles on the nation's roads. A

chunk of India's car manufacturing industry is based in and around the city of

Chennai, also known as the "Detroit of India".

India is on every major global automobile players roadmap and it isnt hard to

see why:

India is on top for producing automobiles & its parts.

India is the fourth largest passenger car maker in Asia.

India is supposed to be the second largest car maker in 2016.


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The Indian automobile market is accounting for 60

per cent of the country's automotive exports. The Maharashtra is a vehicular

production hub with General Motors, Volkswagen/Skoda, Mahindra and

Mahindra, etc. Tata Motors has set up facilities in Ahmedabad with Tata Motors

- Nano plant and Halol with General Motors and in Maharashtra, Kolkata, West

Bengal are some of the other automotive manufacturing regions around the

country. Gurgaon near New Delhi are hubs where all of the Maruti Suzuki cars

in India are manufactured.


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Volkswagen :-

In Brief______________________________________

Meaning: The word Volkswagen means "people's car" in German, it is

pronounced as [ f lks va n ]. The Volkswagen logo is simplistic it

contains the letters V and W for Volks means folks or people and Wagen

means car or as used to be said in olden times wagon. Its current tagline is Das

Auto which means The Car in English.

Quarters: The Volkswagen Group has its headquarter in Wolfsburg (Germany)

which is one of the leading automobile manufacturers in the world and the

largest car producer in Europe.

Brands & Products: The Group is made up of nine brands from seven

European countries which are: Volkswagen, Audi, SEAT, koda, Volkswagen

Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania. Each brand

has its own character and operates as an independent entity on the market. The

product range extends from low-consumption small cars to luxury class

vehicles. In the commercial vehicle sector, the product offers buses, heavy

trucks and spans pick-ups. The Volkswagen Group's models are sold in more

than 150 countries all over.

Management: The Board of Management of Volkswagen AG comprises eight

members. Each Board Member is responsible for one or more functions within

the Volkswagen Group. Prof. Dr. Martin Winterkorn is the Chairman & Prof.

Dr. rer. nat. Martin Winterkorn is the Chairman of the Board of Management of

Volkswagen AG.

Aim: The aim of the Group is to offer attractive, safe, environmentally friendlyvehicles which are competitive on an increasingly tough market and which set


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Volvo :-

world standards and represent the global benchmark in their

respective classes.

Meaning: Volvo means "I roll" in Latin,

conjugated from "volver", in relation to ball

bearing. The Volvo symbol is an ancient chemistry sign for iron. The iron sign

is used to symbolize the strength of iron used in the car as Sweden is known for

its quality iron. The circle represents a shield and the arrow is the arrow of

Mars, another symbol for iron. The diagonal line (a strip of metal) across the

grille came about to hold the actual symbol, a circle with an arrow, in front of

the radiator.

Quarters:The Volvo factory has its headquarters in Hisingen, near Gothenburg

(Sweden). It is a Swedish builder of commercial vehicles, including trucks,

buses and construction equipment.

Brands & Products: Volvo consists subsidiaries such as Volvo Aero, VolvoBuses, Volvo Cars, Volvo Financial Services, Volvo Pento, Volvo Trucks,

Mack Trucks, Renault Trucks, UD Trucks and Volvo Construction Equipment.

Though the main activity of the company is to own, maintain, protect and

preserve the Volvo trademarks (including Volvo, the Volvo device marks (grille

slash & iron mark) (Volvo Aero) and (Volvo Pento) on behalf of its owners and

to license these rights to its owners.

Management: Volvo Trademark Holding AB is equally owned by AB Volvo

and Volvo Car Corporation. Louis Schweitzer is the Chairman of the Board of

Directors which consists of nine members elected in the Annual General

Meeting. Olof Persson is the President and Chief Executive Officer of Volvo

Group.


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Aim:The Volvo Group's aim is to be valued as the world's leading supplier of

commercial transport solutions, of superior quality, safety and environmental

care for demanding customers in selected segments. The Volvo Group

summarize that they stand for and what they focus on.

Overview_____________________________________

Volkswagen :-

Volkswagen is the world's third largest automobile

manufacturer. The company is headquartered in Wolfsburg, Lower Saxony,Germany. Volkswagen is the original marque within the Volkswagen Group,

which includes the car marques Volkswagen, Audi, SEAT, koda, Volkswagen

Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania.

Volkswagen India Private

Limited is a subsidiary of Volkswagen Group Sales India Private Limited that

assembles, manufactures and distributes Volkswagen vehicles in India with

headquarters in Chakan, Maharashtara. It was established in 2007. In the year

2010, VIPL recorded sales of 32,627 vehicles against 3,039 vehicles sold during

the year 2009 and registered a sales growth of over 1,000%Volkswagen, one of

the largest car manufacturers in Europe, is betting big on India with its small car

portfolio.

Volkswagen Group is banking on India in a big way

for their growth in the future. Experts predict a huge increase in the overall


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Volvo :-

demand for cars in India from 1.4 million units in 2009 to more than

2 million cars per year by 2014. As a part of the market development

Volkswagen Group aims to increase their market share by 8-10% within the

next four to six years, Kurt Rippholz, spokesperson of Volkswagen group said.

When Ford acquired Volvo in 1999 for 6.4 billion

dollars, it became the second car manufacturer in Europe. It is a sure bet that it

never occurred to Ford, or anyone else maybe, that a mere 11 years later, it

would be selling its prestigious acquisition to a young company in the car

manufacturing business, unknown outside of its home country, and for a mere

1.8 billion dollars.

Volvo Company was founded in Gothenburg, Sweden

at April 14, 1927. AB Volvo is a Swedish builder of commercial vehicles,

including trucks, buses and construction equipment. Volvo also supplies marine

and industrial drive systems, aerospace components and financial services. It

started out as a car manufacturer on 14 April 1927, when the first car, the Volvo

OV 4 series, affectionately known as "Jakob", rolled out of the factory in

Hisingen, Gothenburg. The trademark Volvo (which is Latin for "I roll" or "I

go") was first registered by a roller ball bearing maker SKF (Svenska

Kullagerfabriken AB) on 11 May, 1915.

Volvo Auto

India is a relatively new operator in India, which is a gigantic and fast-growing

market, besides being one of the most competitive in the world. Volvo


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established a presence in India just over two years ago and has since then

worked intensively to market the Swedish brand. With a corporate office in

Gurgaon, Volvo Cars opened its first dealership in Chandigarh in March 2008

and currently markets its products through its dealerships in New Delhi,Mumbai, Chandigarh, Hyderabad, Kochi and Pune.

History______________________________________

_

Volkswagen :-

On May 28th, 1937 the company

known as "Gesellschaft zur Vorbereitung des

Deutschen Volkswagens mbH" was founded,

by the Nazi trade union, the German LabourFront (Deutsche Arbeits front). In the early

1930s German auto industry was still largely

composed of luxury models, and the average German rarely could afford

anything more than a motorcycle. Seeking a potential new market, some car

makers began independent "peoples' car" projects Mercedes' 170H, Adler's

Auto Bahn, Steyr 55, Hanomag 1,3L, among others. Also, in Czechoslovakia,

the Hans Ledwinka's penned Tatra T77, a very popular car amongst the German

elite, was becoming smaller and more affordable at each revision (going as far

as advertising it as the "German Volkswagen").

In 1933, with many of the above projects still in

development or early stages of production, Adolf Hitler declared his intentions

for a state-sponsored "Volkswagen" program. Hitler required a basic vehicle


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capable of transporting two adults and three children at 100 km/h (62 mph). The

"People's Car" would be available to citizens of the Third Reich through a

savings scheme at 990 Reich mark, about the price of a small motorcycle (an

average income being around 32RM a week).

In early 1938, in what is today Wolfsburg, work began

on construction of the Volkswagenwerk plant which was to house production of

the new vehicle designed by Ferdinand Porsche. Then after the end of the

Second World War, in mid June 1945, responsibility for Volkswagenwerk was

placed in the hands of the British Military Government. Under the management

of Major Ivan Hirst, mass production of the "Volkswagen Beetle"was started.

In the beginning 1970s Volkswagen achieved a major

milestone, which broke the world car production record with 15,007,034 units

assembled. The "Volkswagen Beetle" surpassed the legendary mark achieved

by the Ford Motor Company's Model T, popularly known as the "Tin Lizzy",also known as the Model T.

In 1974, Golf MK1 rolled off the production line.

Golf MK1 later came to be known as "Volkswagen Rabbit" when it sold its

models in United States and Canada. The very next year Volkswagen saw a new

generation of Volkswagen vehicles, with front-wheel drive and up to 110 BHPwater-cooled four-cylinder engines. That car was named "The Passat".

So far Volkswagen continued its production with

Beetle, Golf, Rabbit and Jetta. But later in 1990s they

launched the "Polo". The first production car

launched in July 1999 came to offer fuel


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consumption of just three liters per 100 kilometers, which is considered an

automotive history for Volkswagen.

The Volkswagen Phaeton (pronounced / fe tn/ fay- tn) is a full-size luxury sedan/saloon. It was introduced in 2002 Geneva Motor

Show, and marketed worldwide. It was described by

Volkswagen as their "premium class" vehicle.

The name Phaeton derives from Phaton, the

son of

Phoebus (or Helios) in Greek mythology, by

way of the phaeton auto body style and the

type of horse-drawn carriage that preceded it.


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Volvo :-

Volvo Car Corporation, or Volvo Personvagnar AB, is

a Swedish automobile manufacturer founded in 1927, in

Gothenburg, Sweden. It is owned by Zhejiang Geely

Holding Group. Volvo was originally formed as a

subsidiary company to the ball bearing maker SKF. When

Volvo AB was introduced on the Swedish stock exchange

in 1935, SKF sold most of the shares in the company.

In 1924, Assar Gabrielsson, a SKF Sales Manager, and

Engineer Gustav Larson, the two founders, decided to

start construction of a Swedish car. Their vision was to

build cars that could with stand the rigors of Sweden's

rough roads and cold temperatures, but the main purpose

of the company became to produce the safest cars possible, following the death

of Assar's wife in a car crash.

Volvo produces models ranging from SUVs, station

wagons (estates), and sedans (saloons), to compact executive sedans and

coupes. A collection of Volvo''s most important historical vehicles are now

housed in The Volvo Museum, which opened in a permanent location in

Arendal at Hisingen on May 30, 1995. For several years, the collection had been

housed at "The Blue Hangar," at the then closed Torslanda Airport.


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part of its Premier Automotive Group. Geely Holding Group then acquired

Volvo from Ford in 2010.

Advertising___________________________________

Volkswagen :-

Volkswagen's artistic approach to print advertising was

innovative, and it understood that advertising didn't sell products. The strategywas to keep the customers by creating and nurturing them as brand

ambassadors rather than attempting to attract the attention of those who were

uninterested in the product. Volkswagen team of "agency creative" was headed

by Helmut Krone, who pioneered the idea of simplicity in print

media advertisements. His repeated use of photographs as opposed to the

embellished illustrations used traditionally by competing agencies, spawnedcomfortably-consistent, yet unique, print ads that met the goal of making a

stark departure from existing advertisement techniques.

The Volkswagens advertising budget in 1960 was only

$800,000 its bare-bones, black-and-white approach, coupled with a projected

common theme of irreverence and humour, fit Wolfsburgs needs well at that

time. Each Volkswagen ad was designed to be so complete that it could standalone as a viable advertisement, even without addressing all aspects of the

automobile. Taken as a sign of the campaign's runaway success, research by the

Starch Company showed that these Volkswagen advertisements had higher

reader scores than editorial pieces in many publications, noting that

Volkswagen advertisements often didn't even include a slogan or logo.


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In 1999 Volkswagen series of advertisements with "Think

Small", were voted the No. 1 campaign of all time in the magazine: Advertising

Age - "The Century of Advertising."

Volvo :-

Advertising is the most important aspect in 21st

century, especially through web. That is because of the large media selection

businesses have to choose from. Volvo car dealers advertise their best vehicles

on by various means. Individuals are constantly looking for great deals on these

select cars. These automobiles are manufactured in different styles and sizes,

and are made to last a long time. There is nothing more satisfying than

purchasing the kind of car that has all the latest features.

Car dealerships have a tough job already. They must come up

with ways to make their cars and their prices seem affordable. They employ

different business strategies and put them to the test. These strategies includeadvertising, and public auctions, just to name a few. But now-a-days due to

internet, face book, etc. there are so many options and that also less expensive

to put ads or brochures on to the net. Likewise on their website you can get all

the information from different car styles, pricing, sizes (two seater, four seater

or family car), etc.


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In the past Volvo used print advertising like newspapers or

pamphlets, then later on came T.V. so media advertising like video ads, till

decades, this medium was used now is the time of Internet were people

themselves to get information just search using Google or Facebook about whatthey want or they need.

They make a person hurry down to the dealership just to take a look at the

selection of automobiles in stock. The other way of getting the news out is by

doing a TV commercial. These are effective also, because everyone watches

television even if it is only for a short time each day. There is the probability

that billions of people will see the commercial and take action.

So far Volvo Auto India has chosen to launch two

models, the Volvo XC90 and Volvo S80 but in the coming years they are lining

up more new models. Plans are on to bring in the Volvo XC60.

Volvo XC90 R-Design made its first appearance in a popular

Bollywood film, 3 Idiots, starring Aamir Khan and Kareena

Kapoor. The film was released on December 25, 2009.


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Documents

Business Organisation 75