Skoda Uk Case

Problem – Launch new car, Fabia. UK important for future growth. Reverse Skoda's shoddy brand image, worthless, low end car. 60% of UK respondents said they would not buy a Skoda. Skoda joke books, websites. Whom to target, positioning? Most effective ad strategy. Image transformation. Ridicule from comedians and other public commentators.

History – Competitor to Rolls Royce, car of choice for presidents, aristrocrats. Skode Superb was more powerful and expensive than BMW. During WWII under german control. After war communist country.

Acquisition – Key reasons: low labor costs, access to central Europe, strong history of engineering skills. VW's objective: transform into a customer oriented, learning organization and reach best-in-class. Shift from price position to value for money position.

Product – Use VW design and platform. DM300 million investment. Training, processes, planning etc.

Product Range

Retail Experience – Exclusive Skoda dealership. BEV 120 cars per dealership per year

Brand communication – Perception remained tainted. Image of poor quality, cheap care was proving difficult to dislodge. Image was OK in east but was a joke in West meaning distinct communication strategy. Main reasons for poor image – Skoda voted worst car in 1970. Tag stuck. Too inexpensive.

New face of Skoda. Craftsmanship and modernization displayed. VM engineering.

Skoda in UK – Came in 1954. Started import in 1958. Skoda GB sold car without logo as cheapest new car. Dispose excess stock. In late 70s Automobile Association gave negative report on Skoda Estelle. Comedian's jokes. Worst image of ANY product or service in UK.

Changes – Put the logo on. Do not hide. Customer oriented.

Target – someone who wanted to be dealt with honestly, treated with respect, wanted a functional car that can fulfill daily needs. Move away from price position to value position.

Brand – Honest, straightforward and personal care

Consumer Behavior – Cars well received by motoring journalists. Owners loved the car and were extremely loyal. 82.7% brand loyalty in 1997. It went down because of value position and not price position. New owners and media reacted favorably but non-skoda owners thought brand to be old, unfashionable, an f out of sync with current times. Perception/ reality gap.

Require irrational emotional objections non-owners had to owning a skoda.

Option 1: Focus on value added features and new design of the car

Option 2: Radical approach to tackle