Marketing Mix of Skoda Auto
Skoda Auto headquartered at Mlada Boleslav in Czech Republic is also one of the oldest car makers of the world. It has been a part of Volkswagen AG for more than 25 years now. However, origins of Skoda go back to 1895. The brand employs more than 31600 people and its product portfolio has increased significantly in the last 25 years. Its main business activities include production and sales of Skoda cars, components, genuine parts and accessories as well as maintenance services. While Skoda auto has production plants in Czech Republic, its branded cars are also produced in China, Russia, India, Slovakia, Ukraine and Brazil. the brand also plans to make its foray into mobility services in future and has already advanced towards the production of electrical vehicles and autonomous driving. Apart from these things the brand is investing heavily in digitalization as well as research and development upon which future growth of the brand rests. 2017 has proved to be a profitable year for Skoda Auto.
This is a marketing mix of Skoda Auto discussing the four P’s including Product, Place, Price and Promotion in its marketing mix.
Skoda has a large product portfolio which it is trying to expand further by adding new and electric vehicles. In 2017, it showcased its SKODA Vision E Study a fully concept e study in Shanghai and Frankfurt motor shows. It is a world famous brand mainly known for its luxury and stylish vehicles like Octavia, Rapid and Superb. Its there best selling models are Octavia, Fabia and Rapid. It had introduced Fabia in 2011 in 2011 to fill the existing gap between Octavia and Fabia. Skoda sold nearly 937000 vehicles in 2017. It is eyeing faster growth by entering the electrical vehicles segment.
Citigo: – Three or five door city car with optional LED daytime running lights and climatronic air conditioning. Also available in several economic petrol engine versions.
Fabia: One of Skoda’s best sellers in Indian market launched to fill the gap between Octavia and Rapid. is available in Monte Carlo and Fabia Combi Scoutline versions.
Rapid: This Skoda car is also made in India, China and Russia.
Octavia: Skoda’s best seller and its beating heart available in Octavia Scout and Octavia Gtec versions.
Karoq: Skoda’s SUV with five engine variants to choose from.
Kodiaq: Big SUV with 7 passenger seats and largest luggage compartment in its class.
Superb: One of the most stylish cars by Skoda which combines space, functionality, connectivity adn emotions.
Skoda sells in more than 100 countries through its dealerships. However, now it is focusing on digitalization and has opened its first digital showroom as a pilot project in Spain to let its customers see all Skoda models. Visitors can chat online with the Skoda experts using the Skoda website in Spain and earn about the latest models and technologies. At the same time, Skoda has also continued to revamp its existing showrooms across the globe to provide its customers a better experience. These Skoda showrooms are designed to give an inviting look and provide the customers with a new and better experience.
SKODA has models mainly in the luxury range. However, it also caters to the needs of the lower end market through its Superb. Its Octavia, Kodiaq etc are made for the luxury segment. However, its Superb has helped it reach the lower end segments too. This pricing strategy has helped it be more competitive in the automotive segment and expand overseas faster.
Apart from the traditional techniques of marketing and digital methods, the brand also uses some unconventional methods of marketing and promotions. Sports marketing is also a key part of its marketing strategy. Some of the main sports that Skoda has its name associated with are ice hockey, rally racing, motorsport and cycling. Recently, it also moved into acrobatics with its main focus to support artists and athletes. It also sponsors adventure sports like extreme cyclin in Himalayas. It also sponsored cycling in France and has formed a partnership with Canadian entertainment troupe Cirque De Soleil. In this way, the brand also uses non conventional methods of brand promotion and marketing. Skoda is planning faster growth and is investing in marketing and innovation. Digitalization is a primary focus of its business strategy in the recent years. It is also investing in electric cars and autonomous driving as well as in research and development. In 2017, it spent 15.4 Billion Czech Koruna or 753 million dollars on research and development. the brand is trying to achieve faster growth through focus on innovation and is also planning to make its foray into mobility solutions.