PROJECT REPORT

On
Customer Preference’s In Volkswagen

Vidhya Varshini S
1NH20BA167

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING, OUTER

RING ROAD, MARATHALLI, BENGALURU

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Dr. Priyameet Kaur Keer

Associate Professor

2020 - 22

1
 CERTIFICATE

This is to certify that Vidhya Varshini S bearing 1NH20BA167, is a bonafide student of

Masterof Business Administration course of the Institute 2020-22, autonomous program,
affiliated to Visvesvaraya Technological University, Belgaum. The project report on “A
Study On Customer Preferrence’s Volkswagen Cars” is prepared by him/her under the
guidance of Dr. Priyameet Kaur Keer, in partial fulfilment of requirements for the award of
the degree of Master of Business Administration of Visvesvaraya Technological University,
Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal

1. External Examiner

2. Internal Examiner

2
3
 DECLARATION

I, Vidhya Varshini S , hereby declare that The project report on “A Study On Customer
Preference’s In Volkswagen ” prepared by me under the guidance of Dr. Priyameet Kaur
Keer, faculty of M.B.A Department, New Horizon College of Engineering.

I also declare that this project report is towards the partial fulfilment of the university
regulations for the award of the degree of Master of Business Administration by
VisvesvarayaTechnological University, Belgaum.

I have undergone an industry internship for a period of Eight weeks. I further declare that
this report is based on the original study undertaken by me and has not been submitted for the
award of a degree/diploma from any other University / Institution.

Signature of Student

Place: Bangalore
Date:

4
 ACKNOWLEDGEMENT

The successful completion of the project would not have been possible without the
guidance and support of many people. I express my sincere gratitude to Balaji
Girish, Sales Executive, Volkswagen, Bengaluru, for allowing to do my project
on A Study Customer Preference’s In Volkswagen.

I thank the staff of Volkswagen, Bengaluru for their support and guidance and
helping me in completion of the report.

I am thankful to my internal guide Dr. Priyameet Kaur Keer, for her constant
support and inspiration throughout the project and invaluable suggestions,
guidance and also for providing valuable information.

Finally, I express my gratitude towards my parents and family for their

continuous support during the study.

VIDHYA VARSHINI S
1NH20BA167

5
 TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE NUMBERS

1 Executive Summary 7-8

2 Theoretical Background of The Study 9-16

3 Industry Profile &Company Profile 17-26

4 Application of Theoretical Framework 27-43

5 Analysis and Interpretation of Financial 44-56

Statements and Reports

6 Learning Experience- Findings, 57-62

Suggestions and Conclusion

7 Bibliography 63-64

6
 CHAPTER 1

EXECUTIVE SUMMARY

7
In each and every management training scheme there is a provision
for a real time job experience within the academics time period. Call
it summer training or corporate training or corporate interaction. The
main aim for this is to utilize and implement the theoretical
knowledge of classroom into corporate world. It is well said “nothing
is much practical than a good theory”. But on very same we can’t
deny ‘Practical is better than theory”. These phrases are opposing to
each other but also are complement to each other. Experience in both
goo dedicated manner really plays a lot in one professional life.

In the field of marketing there is no expectation in market. Field

experience is very much necessary for market professional. In the
stream of business application of the theory is very frequent. From the
customer behavior to customer satisfaction, we have to study all in the
field of marketing. Marketing is so much diversified that now it can
be done by mere use of mobile phone and internet, by experiencing by
real time tactics in only possible by working in the field.

Therefore I am really thankful to my college and Volkswagen for

providing me this opportunity.

In initial days I have worked on old data, Next job is to make phone
calls to those customers who are able to purchase luxuries cars to
convince them. The third phrase is to go directly to the customers and
get their feedback to know about their opinion, complaint and
suggestion of customer. I have tried to handle all the above task in
this project report.

8
CHAPTER 2

THEORETICAL BACKGROUND
OF THE STUDY

9
 What marketing is what it does and what it offers?

“Marketing is social and managerial process whereby individual and

groups obtain what they need and what they want through creating
and exchanging the products and value with others”.

“Marketing management is the process of planning and executing the

conception, price, promotion and distribution of ideas, goods and
service to create and exchanges that satisfy individual and
organizational goals.

“Marketing offers some combination of products, service ,

information or experience offered to the market to satisfy the need or
want”.

Marketing is orderly and insightful process for thinking about and

planning of the markets. The process starts with to research the
market place to understand its dynamics. The market uses research
methodology to identify opportunities, that is, to find all individuals
all group of people with unmet needs or lateral interest in some
product and service.

The marketing process consists of the following:

 Analyzing marketing opportunities.
 Developing marketing strategies.
 Planning marketing programs.
 Managing the marketing efforts.
Before taking any decision and achieving the goals, it has to make
analysis of what to do, how to do, when to do, where to do and who is
to do it. This is nothing but strategic planning. Goals indicate what a
business unit wants to achieve where as strategy is how to get there.

10
 Marketing strategies in simple terms are the complete and
unbeatable plans designed specifically for attaining the marketing
objectives of the firm. Marketing can be called as a game plan for
achieving its goals. Strategy choice will depend on whether the firm or
the marketer plays the following roles:
 Market leader
 A challenger
 A follower
 A nicher

The identification of objectives, both in quantitative and qualitative

terms, is an essential backdrop to strategy formulation. Goals have a
quality and time frame attached to them. These are typically spelt out
in terms of financial return, market share, market presence, etc.
Thus, the concept of market oriented strategic planning arises
with the link between the products the manufacturer is dealing in and
the market conditions.
In this direction, our study deals only with the marketing
strategies i.e. promotional strategies of the VOLKSWAGEN
automotives.

11
INTRODUCTION OF
AUTOMOBILE INDUSTRY IN
INDIA

INTRODUCTION OF AUTOMOBILE INDUSTRY

One of the fastest growing industries in the world is automobile
industry. This automobile industry even has its influence on the Indian
market. Probably auto mobile industries occupy a large market share in
the worlds market as well as in the Indian market.
Nearly 18% of the total national income is being incurred from
the automobile industry. From this we can estimate how important the
automobile industry in the improvement of GDP of a country is. In
India automobile industry has a growth rate is at the average of 10-
12%.

INDIAN AUTOMOBILE INDUSTRY SINCE

1947:
It’s fascinating drive through history, which begins as a story of
isolation and missed opportunities to one of huge potential and
phenomenal growth.
India’s fixation with socialism and planned economies had
a crippling impact on the automotive industry in its formative years.
The goal at that time for independent India was self-Sufficiency. Issues
like quality and efficiency were simply not considered.
Dependence of foreign technology was banned and
manufacturers were forced to localize their products; import
substitution became the order of the day. Though we learnt to localize,
the cars we made were all outdated designs with little or no
improvements for decades. The automotive industry stagnated under
the government’s stifling restrictions and the Indian car buyer was
saddled with cars of appalling quality and even then there was a waiting
list that at one point stretched to eight years.
12
This attempt at self-reliance failed miserably because of the industry’s
isolation from the best technology. The Japanese and later Korean auto
industries were also highly protected in their formative years but they
never shut the door on technology. Instead, they relentlessly tapped the
best talent pools in the world to absorb the know-how to produce good
cars.
One of the most important chapters in the Indian
automotive industry’s history was written by Maruti. It marked the
Indian government getting into the far business in the early 1980’s, a
radical shift in thinking after decades of treating cars with disdain.
The Maruti 800 went on to become the staple car of India and put a
nation on wheels. This little car set a benchmark for price, size and
quality and structured India as small car market.
It wasn’t till 1993 that things really started to change for
the Indian car buyer. With the liberalization of the economy, a host of
international carmakers rushed in. But most of them were in for a shock
as Indian customers rejected their product. Indian customers refused to
allow the glitter of prestigious brands blind them to the outdated and
overpriced products they were offered.
The Indian consumer wanted super value, and rewarded the
brands that delivered it, handsomely. Hyundai and Maruti delivered,
and profited. The period also saw the emergence of the Indian players
like Tata Motors and Mahindra & Mahindra. They rose to the challenge
of the MNC’s and responded brilliantly with the Indica and the Scorpio.
This was ironically due to the license raj that forced
Indian carmakers to be innovative and develop products frugally.
India’s frugal engineering skill has now caught the world’s
imagination, and an increasing number of carmakers are preparing to
setup major capacities here. India is changing and changing fast. It’s
moving forward. India’s largest selling car is not its cheapest car, the
800, it is the Alto.
People’s aspirations are rising and so are their
mistakes, have got their finger on the pulse of the market. Get the right
product and the rewards are handsome. The Indian auto industry is
today bubbling with promise and confidence. It’s been a long journey
but to see where the Indian car industry is going. We have to see where
it has been.
13
AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE
The first motorcar on the streets of India was seen in 1898, Bombay
had it first taxicabs by the turn of the century. In 1903, an American
company began a public taxi service with a fleet of 50 cars. For about
50 years after car arrived in India, cars were directly imported. Before
World War I, around 40,000 motor vehicles were imported.
During the years between the wars, a small start for an
automobile industry was made when assembly plant were established
in Bombay, Calcutta and Madras.
The import/assembly of vehicles grew consistently after the
1920s, crossing 30,000 units by 1930. It was during the end of the war
that the importance of establishing an indigenous automobile in India
was realized. Premier Motors, Hindustan Motors and Mahindra &
Mahindra set up factories in the 1940s for progressive manufacture
rather than assembly from imported components. The cars they chose
to make were the latest in the world when they were introduced in India
in the formative years of the industry.

POST INDEPENDENCE
The government clamped down on imports and foreign investments.
Companies like GM and Ford packed their bags and left. India’s clock,
thereafter, stood still while the world raced on ahead. It would take
nearly 50 years before the Indian auto industry could catch up with the
rest of the world again.

BROADBANDING ERA
In January 1985, the government announced it’s famous ,Broad
Banding policy which gave new licenses to brad groups of automotive
products such as two and four-wheeled vehicles.
Through a liberal move, the licensing system was very
much intact. A manufacturer had to submit a phased-manufacturing
program to the Ministry of Industry specifying the indigenization
progress and allowing for almost complete indigenization within five

14
to seven years. The biggest hurdle was the foreign-exchange clearance
required for these projects.
Except for MUL, which had direct access to policy-makers,
every other manufacturer still faced a series of obstacles.
Several new products were launched during this period. All
three traditional carmakers added new models to their ranges Standard
Motors returned to the car business after 10 years, when in 1985 it
introduced the Standard 2000, a Rover SD1body with the old two-litre
Vanguard engine. HM bought in a 1972 Vauxhall Victor in1985,
transplanted its ageing Ambassador engine into it and the Contessa was
born.

THE ARRIVAL OF VOLKSWAGEN:

Recently Volkswagen paved the way for sustainable market activities
in India. With the investment agreement signed at the end of 2006 the
brand sets a new course that unites two success stories – Volkswagen
and India – in a common future.
The German brand and Europe’s largest automotive
manufacturer will be entering the Indian market to meet the rapidly
growing demand for mobility. Volkswagen will be developing a
vehicle in the foreseeable future specifically tailored to the needs of the
Indian market offering all the features of a genuine Volkswagen.
It is essential to ensure Volkswagen quality built in India,
as a genuine unique selling proposition and a symbol of quality.
The other cars which have their shares in the Indian automobile
industries are:
The Indian auto industry has exploded in the last 14 years. And car
makers are learning some very hard truths. While the economic reforms
process was kicked ofin1991, it was only in 1993 that the automobile
industry was finally de licensed and the restrictions were removed.
Between 1993 and 95, government regulations limited a
foreign company’s stake to a maximum of 51 percent of the equity.
Hence the only method of entry for an MNC then was through a joint
venture with a local partner. The most preferred partner was an existing
automaker. In 1994-95 saw the announcement of quite a few JV’s.

15
 Premier and Peugeot to form PAL-Peugeot.
 GM and CK Birla to form GM India.
 Mercedes Benz and Tata Motors.
 M&M and Ford to form Mahindra-Ford India.
In 1995, the government announced its decision to allow
foreign auto companies to enter with a 100% stake or wholly-owned
subsidiaries. This changed the dynamics of joint ventures in India. The
other automobile industries which play a crucial role in the Indian
automobile industry are:

 Maruti Suzuki
 Daewoo Motors India
 General Motors India
 Mercedes-Benz
 Hyundai Motors
 Honda SIEL
 Toyota
 Skoda India

16
CHAPTER 3

INDUSTRY PROFILE &

COMPANY PROFILE.

17
The Volkswagen Group with its headquarters in Wolfsburg is one of
the world’s leading automobile manufacturers and the largest
carmaker in Europe. In 2006, the Group increased the number of
vehicles delivered to customers to 5.734 million ( 2005: 5.243
million), corresponding to a 9.7 percent share of the world passenger
car market.
In Western Europe, the largest car market in the world,
nearly every fifth new car(19.9 percent) comes from the Volkswagen
Group. Group sales rose in 2006 to 104.9billion Euros (2005: 95.3
billion). Profit after tax in the 2006 financial year amounted to2.75
billion Euros (2005: 1.12 billion).
Volkswagen activities may focus on the automobile, but the
Volkswagen Group is far more than just a carmaker. A wide variety of
mobility-related services round off our portfolio.
Uniting a wide variety of brands and companies with all their individual
characteristics and focuses under one umbrella is a great challenge,
especially as the Volkswagen Group is committed to maintaining their
individual identities. But this is the only way all the brands and
companies can make their own contributions to the common value
stream and form cornerstones of the Group.

Volkswagen is a part of group made up of thirteen brands from seven

European countries,
INCLUDING…

13 brands have own characters:

The Group is made up of thirteen brands from seven European
countries: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT,
Skoda, Volkswagen Commercial Vehicles, Volkswagen marine,
Scanai, Man, Ducati and Porsche. 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
18
 vehicles. In the commercial vehicle sector, the product offering spans
pickups, busses and heavy trucks.
44 Manufacturing Facilities In 18 Countries World Wide….
The Group operates 44 production plants in twelve European countries
and a further six countries in the Americas, Asia and Africa. Around
the world, almost325,000 employees produce over 24,500 vehicles or
are involved in vehicle-related services each working day.
The Volkswagen Group sells its vehicles in more than
150countries. It is the goal of the Group to offer attractive, safe and
environmentally sound vehicles which are competitive on an
increasingly tough market and which set world standards in their
respective classes.

Volkswagen Makes Automotive History……

When in 1937 the company known as "Gesellschaft zur Vorbereitung

des Deutschen Volkswagens mbH" was founded, no one could have
guessed that it would one day be Europe’s largest carmaker. The
history of the company - with all its trials andtribulations - is first and
foremost a story of impressive success.
 1937-1945

On May 28th, 1937 the "Gesellschaft zur Vorbereitung des Deutschen

Volkswagens mbH" company is founded, and on September 16th, 1938
it is renamed "Volkswagenwerk GmbH". In early 1938, in what is today
Wolfsburg, work begins on construction of the Volkswagen werk plant
which is to house production of the new vehicle designed by Ferdinand
Porsche.
During the Second World War Volkswagenwerk
production is switched to armaments. Some 20,000 forced laborers,
prisoners of war, and later also concentration camp prisoners, work at
the plant.

19
 In September 1998, in recognition of the events of that time,
VOLKSWAGEN AG established a humanitarian fund on behalf of the
forced labourers compelled to work at Volkswagen during the Second
World War. By the end of 2001 more than 2,050 people in 26 countries
had received humanitarian aid from the fund. Furthermore, a
Memorialin remembrance of the forced labor employed at the
Volkswagenwerk plant is currently being established at Wolfsburg,
involving contributions from present-day Volkswagen apprentices.
 1945-1949
After the end of the Second World War, in mid June 1945,
responsibility for Volkswagenwerk is placed in the hands of the British
Military Government. Under the management of Major Ivan Hirst,
mass production of the Volkswagen Beetle is started.
 1949-1960
On March 8th, 1950 the Type 2 goes into production, expanding the
company’s product range. The Volkswagen Bus, still today known to
many as the "VW Bully", soon creates rising demand thanks to its
multifunctional capabilities. In 1956 a separate manufacturing base for
the Transporter is established in Hanover, at the same time setting down
the roots of today’s Volkswagen Commercial Vehicles brand. In 1955
employees and dealers from Germany and abroad celebrate the
production of the one millionth Volkswagen Beetle in Wolfsburg.
 1960-1980
On February 17th, 1972 Volkswagen breaks the world car production
record: with 15,007,034 units assembled, the Beetle surpasses the
legendary mark achieved by the Ford Motor Company’s Model T,
popularly known as the "Tin Lizzy ’’,between 1908-1927.
In 1973 the Passat is the first model of the new generation
of Volkswagen vehicles to go into production - with front-wheel drive,
a water-cooled four-cylinder engine and a range of engines up to 110
bhp. The Passat is built in line with the modular strategy, by which
standardized components usable in a range of different models provide
significant rationalization.

20
 In January 1974 the first Golf is built at the Wolfsburg
plant. The compact saloon quickly becomes a hit, and advances to
become the legitimate heir to the legendary Beetle. The same year also
sees the launch of the sporty Scirocco, which was to continue in
production until 1981.
In 1976 the first Golf GTI rolls off the production line. The car, with
its110 bhp engine, creates a real furor on the roads - and lays the
foundations for the birth of a legend.
 1980-1990
In June 1983 production of the second-generation Golf begins. The car
is designed for a largely automated assembly process, and in the
specially erected final assembly hall, designated Hall 54, robots are
deployed for the first time in vehicle manufacture.
 1990-2000
With the production launch of the Lupo 3L TDI, the first production
car to offer fuel consumption of just three liters per 100 kilometers, in
July 1999, Volkswagen once again makes automotive history.
In December 2002 the "Auto 5000 GmbH" company,
operating a plant at the Groups site in Wolfsburg, starts production of
the Touran compact van. A special collective pay model has been
developed, aimed at implementing lean production and involving flat
hierarchies, team working, flexible working hours and the deployment
of more process expertise by the workforce.
2000-2003
In August 2002, at Volkswagen Slovakia as, in Bratislava, mass
production of the Touareg, a luxury-class off-road vehicle, is started,
marking the Volkswagen brands move into an entirely new market
segment.
In 2003 production of the fifth-generation Golf is started, embodying
a new dynamism in its design and engineering.

21
PRODUCT PROFILE

THE NEW JETTA

The Jetta…

6 air bags
They have thought of everything in terms of safety on the
Jetta: airbags for front passengers, curtain airbags at front and rear and
side airbags at the front are included as standard. Disabling of the front
passenger airbag also makes it possible for the tiniest passengers to be
accommodated in child-seats beside you. Side airbags are also available
for rear passengers (Comfort line).
High-pressure diesel

22
The 1.9 liter TDI with, “Pumpe Duse” direct injection technology
eliminates any compromise – you can have performance as well as
exceptional economy. It develops impressive torque of 250 Nm at 1900
rpm and accelerates from 0 to 100 kph in just 11.8 seconds.

DSG
The diesel engine is available with the revolutionary 6-
speedautomatic DSG gearbox that combines a 6-speed gear box with
all the advantages of an automatic and manual gear box(Comfort line).

THE NEW VENTO

23
NEW VENTO

The Vento has established itself as a contemporary looking design and

well built vehicle in it’s segment. Vento has a slight understated design
whose neutral lines and structure will please everyone. The front looks
similar to the Polo hatch on which it is based, but the Vento has
different fog-lamps and air dam. It has a long wheelbase which gives it
an excellent road presence.

Inside the new Vento has a dual tone dashboard with a mix of beige
and brownish grey with some chrome accents thrown in. The Vento
will comfortably seat 5 passengers and offers spacious cabin with
ample leg room and head room. It also has comfortable seats which
provide good back support. The fit and finish of the Vento inside is
great for it’s segment, offering luxurious feel to its occupants. It also
brings features such as dual airbags as standard, alloy wheels, climate
control, keyless entry, power windows and more.

The 1.5 liter DOHC 4 cylinder turbocharged diesel engine produces

105PS of power at 4,400 rpm and produces 250Nm of torque between
1,500 - 2,500 rpm. The motor offers good performance. 1.6 litre
engined manual petrol Vento has similar power output figures of 105PS
of power @ 5,250 rpm, although torque is rated lower at 153Nm @
3,800 rpm. The 1.2 litre direct injection turbo petrol motor is hooked to
an automatic gearbox and develops 105PS of power @ 5,000 rpm and
175Nm of torque between 1,500 - 4,100 rpm.

24
THE NEW POLO

NEW POLO
The new Polo is a very fine example of how to move forward and yet
not lose yourself in the crowd. Four years after its launch in India, VW
has given their only small car in the country a face-lift. The New Polo
is a mild face-lift from its predecessor.
VW has upgraded the headlamps, grille, fog lamps and front bumper.
The profile is the same as before and the rear gets new bumper and tail
lamps.

25
The Polo now comes with a 1.2 liter petrol motor and 1.5 liter diesel.
The 1.2 liter petrol motor pumps 75 PS of power and 110 Nm of torque.
It promises a fuel economy of 16.47 km/l. The 1.5 liter diesel engine is
a brand new motor developed by VW. It has a peak power output of 90
PS and torque of 230 Nm. It is mated to a 5-speed manual gearbox and
ARAI tested mileage is at 20.14 km/l.
The 2014 VW Polo comes with refreshed front fascia too. The dash
board gets silver inserts and Voice Command. Voice Command is
available on the top variant. There’s a new steering wheel and the boot
space is at 294 liters.
The VW Polo petrol is one of the finest drives of it’s segment. The
motor is peppy and the steering complements the car very well. Every
little input to the steering is converted into output. The car is fun to
drive and very nimble. It has very planted road manners and offers a
comfortable ride.

26
CHAPTER 4

APPLICATION OF THEORTICAL
FRAMEWORK

27
RESEARCH METHODOLOGY

Kinsey’s 7 S key success factors

Introduction

The McKinsey 7s model is a strategic tool and framework that helps

managers and businesses assess their performance. The McKinsey 7s
model identifies 7 key elements for an organization that need to be
focused and aligned for successful change management processes as
well as for regular performance enhancements.

McKinsey 7S Model

28
The 7 elements identified in the McKinsey 7s model can be categorized as being
hard or soft in nature. They are identified as:

Hard Elements Soft Elements

Shared Values

Strategy Skills

Structure Style

Systems Staff

Hard and Soft elements of the McKinsey 7S Model

Volkswagen makes use of the McKinsey 7s model to regularly enhance its

performance, and implement successful change management processes.
Volkswagen focuses on the 7 elements identified in the model to ensure that its
performance levels are consistently maintained, and improved for the offerings.

1. Hard elements
The hard elements of the McKinsey 7s model comprise of strategy, structure, and
systems. The hard elements of the model are easier to identify, more tangible in
nature, and directly controlled and influenced by the leadership and management of
the organization.

1.1. Strategy

1.1.1. Clearly defined

The strategic direction and the overall business strategy for Volkswagen are
clearly defined and communicated to all the employees and stakeholders. This
helps the organization manage performance, guide actions, and devise different

29
tactics that are aligned with the business strategy. Moreover, the business
strategy’s definition and communication also make operations for Volkswagen
more transparent and aligns the responsibilities and actions of the company.

1.1.2. Guiding behaviour for goal attainment

The strategic direction for Volkswagen is also important in helping the business
guide employee, staff, and stakeholder behaviour towards the attainment and
achievement of goals. SMART Goals are set with short and long term deadlines
in accordance with the business strategy. The business strategy helps employees
decide tactics and behaviours for attaining the set goals and targets to help the
business grow.

1.1.3. Competitive pressures

Volkswagen’s strategy also takes into consideration the competitive pressures
and activities of competitors. The strategy addresses these competitive pressures
through suggestive measures and actions to address competition via strategic
tactics and activities that ensure sustainability to Volkswagen via adapting to
market changes, and evolving consumer trends and demands.

1.1.4. Changing consumer demands

An important aspect of the strategy at Volkswagen is that it takes into constant
consideration the changing consumer trends and demands, as well as the evolving
consumer market patterns and consumption behaviour. This is an important part
of the strategic direction at Volkswagen as it allows the company to remain
competitive and relevant to its target consumer groups, as well as allows the
company to identify demand gaps in the consumer market.
The company then strategically addresses these gaps through product offerings
and marketing activities which give the company successful and leading-edge
over other patterns in the market.

1.1.5. Flexibility and adaptability

The strategy at Volkswagen is flexible and adaptable. This is an important aspect
of the strategic direction, and strategy setting at Volkswagen. Rigidity in strategy
leads a company and a business to often become stagnant and obstructs
advancement, and progression with evolving changes in the consumer markets.

30
With flexibility and adaptability, the Volkswagen is not only able to benefit from
quickly reacting and responding to changing consumer patterns globally, but is
also able to locally and culturally adapt its products via localization for different
countries and regions. Moreover, the company is often able to proactively predict
consumer market changes, and devise strategic changes accordingly to meet the
market trends.

1.2. Structure
1.2.1. Organizational hierarchy
Volkswagen has a flatter organizational hierarchy that is supported by learning
and progressive organizations. With lesser managerial levels in between and more
access to the senior management and leadership, the employees feel more secure
and confident and also have higher access to information. Moreover, the flatter
hierarchy also allows quicker decision-making processes for Volkswagen and
increases organizational commitment in the employees .

1.2.2. Inter-Departmental coordination

Volkswagen has high coordination between different departments. The
company’s departments often form inter-department teams for projects and tasks
that require multiple expertise. All coordination between different departments is
effective and organized. Volkswagen has a systematic process for initiating and
monitoring coordination between departments to ensure smooth work operations
and processes – and goal attainment.

1.2.3. Internal team dynamics [department specific.

Volkswagen encourages teamwork and team-oriented tasks. Where jobs require
individual attention and scope, the company also assigns individual
responsibilities and job tasks. However, all employees at Volkswagen are
expected to be team players who can work well with and through other members,
and who get along well with other people. The teams at Volkswagen are
supportive of all embers and work in synch with synergy towards achieving the
broader team objectives and goals under the Volkswagen designed strategy and
values.

31
1.2.4. Centralization vs. decentralization
Volkswagen has a hybrid structure between centralization and decentralization.
Like many progressive organizations, Volkswagen largely supports decentralized
decision making. Job roles at Volkswagen are designed to be carried out with
responsibility, and employees often set their goals with mutual coordination and
understanding with the supervisors.

However, Volkswagen is also centralized in making sure that supervisors

oversee, and approve of the various efforts, and tactics that employees choose to
ensure that they are aligned with the organizational strategy ad values.

1.2.5. Communication
Volkswagen has a developed and intricate system for ensuring communication
between employees, and different managerial levels. The communication systems
at Volkswagen enhance the overall organizational structure. The systematic,
defined, and organized communication allows an easy flow of information and
ensures that no organizational tasks and goals are compromised because of a lack
of communication, or misunderstandings.

1.3. Systems
1.3.1. Organizational systems in place
Volkswagen has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or
disputes. The systems at Volkswagen are largely departmental in nature, and
include, for example:

- Human resource management

- Finance

- Marketing

- Operations

- Sales

32
- Supply chain management

- Public Relation Management

- Strategic leadership

1.3.2. Defined controls for systems

Each of the defined and demarcated systems at Volkswagen has especially
designed tools and methods as controls for evaluating performance and goal
attainment. These controls and measures are designed specifically in different
departments based on the nature of their tasks and responsibilities. Moreover,
each department also designs specific controls for members for performance
evaluation, as well as for inter-departmental tasks and responsibilities.

1.3.3. Monitoring and evaluating controls

Volkswagen continually evaluates its systems through the designed controls. This
monitoring of the performance is continual and ongoing. This is largely done
through observation and informal discussions. Feedback to employees and
overall department heads is informally given regularly as and when is required.
Formal evaluation of performance is also conducted semi annually – or quarterly,
depending on the need and the urgency of the projects and assigned tasks. This is
a formal process that is undertaken by supervisors and managers to ensure the
identification of performance lags, and suggestive means of improvement.

1.3.4. Internal processes for organizational alignment

Volkswagen also has special processes and methods for ensuring that all
departments and systems within the organization are aligned and working in
harmony towards the greater business goals and targets. This is made possible
through ensuring that all systems are designing and working towards goals and
targets specific to their expertise under the broader business vision and strategy.
Moreover, the strategic leadership at Volkswagen also ensures that all systems
are allocated with resources, and set specific targets to achieve similar business
goals in any specific period.

2. Soft elements

33
The soft elements of the McKinsey 7s model, in turn, include shared values, staff,
skills, and strategy. These elements are less tangible in nature and are more
influenced by the organizational culture. As such, the management does not have
direct influence or control over them. These elements are also harder to describe
and directly identify – but are equally important for an organization’s success and
improved performance.

2.1. Shared values

2.1.1. Core values

The core values at Volkswagen are defined and communicated to foster a creative
and supportive organizational structure that will allow employees to perform
optimally, and enhance their motivation and organizational commitment. The
core values at Volkswagen include, but are not limited to:

- Creativity

- Honesty

- Transparency

- Accountability

- Trust

- Quality

- Heritage

The Volkswagen business also ensures that all its activities and operations are
conducted with high ethical and moral standards that redefined and benchmarked
against international criteria.

2.1.2. Corporate culture

Volkswagen encourages an inclusive culture that celebrates diversity. The
company has an international presence, and production units that are spread
across different countries, as such, Volkswagen ensure that its organizational

34
culture is supportive of diversity, and has internal policies to reduce incidences
of discrimination.

The corporate culture at Volkswagen also encourages innovation and creativity

by allowing independence for growth to individuals and teams –thus helping them
refine their careers as well as personalities. Lastly, the corporate culture at
Volkswagen also has a supportive leadership which works towards increasing
employee motivation and job satisfaction by giving way to visibility and
accessibility.

2.1.3. Task alignment with values

Volkswagen ensures that all its job tasks and roles are aligned with the core values
that the company propagates. This means that all activities, tactics, and strategic
tactics employed by Volkswagen will reflect its core values, and will not deviate
away from these. This is to ensure a consistent, and reliable brand image, as well
as an honest organizational culture. In the event of organizational change, the
company will continue to ensure that all change management processes and
methods incorporate the core values so that the organizational culture is
consistently maintained, and systematically changed if need be.

2.2. Style
2.2.1. Management/leadership style
Volkswagen has a participative leadership style. Through a participative
leadership style, Volkswagen is able to engage and involve its employees in
decision-making processes and managerial decisions. This also allows the
leadership to regularly interact with the employees and different managerial
groups to identify any potential conflicts for resolution, as well as for feedback
regarding strategic tactics and operations. Through its participative leadership,
Volkswagen is able to enhance employee motivation, and increase organizational
commitment and ownership amongst employees as well as other stakeholders.

2.2.2. Effectiveness of leadership style

The participative leadership style is highly effective in achieving the business
goals and vision of the organization. Employees feel to be active members of the
organization who are valued for their suggestions, feedback, and input. Moreover,

35
through participative leadership, leaders and managers are able to identify current
and potential conflicts within the Volkswagen organization, and actively work to
resolve them as soon as possible.

2.2.3. Cooperation vs competition – internally

With its supportive and encouraging organizational culture, Volkswagen gives
way to internal collaboration and cooperation between employees, systems,
teams, and departments. This cooperation and collaboration at Volkswagen is
important since its operations are spread globally, and also because tasks and
responsibilities within the company often require inter-departmental feedback
and input. Moreover, with increased expansion, and synergy, the business also
regularly forms project teams – which function effectively because of the
cooperative and collaborative culture within the Volkswagen organization.

2.2.4. Team vs groups

Volkswagen has effective and functional teams and works with them internally
to achieve its various business goals and objectives, and complete tasks. The
company’s management is encouraging and supportive, and the leadership
provides a motivating and pragmatic vision toad achieve. The human resource
management system, as well as the organizational training, supports all
employees in their growth fairly and transparently. This leads to effective team
formation instead of nominal groups within the organization for various projects,
as well as department-specific tasks and roles.

2.3. Staff
2.3.1. Employee skill level vs business goals
Volkswagen has a sufficient number of employees employed across its global
operations. Employees for different job roles and positions are hired internally as
well as externally – depending on the urgency and the skill levels required. Based
on this, it is seen that Volkswagen has employees who are skilled as per the
requirements of their job roles and positions. All employees are given in house
training to familiarize themselves with the company and its values. External
training along with in-house training is provided for skill level enhancement.

36
All job roles and positions are designed to facilitate the achievement of business
goals, and as such, employee skill level at Volkswagen is sufficient to achieve the
business goals of the company.

2.3.2. Number of employees

Volkswagen has employed a large number of employees. The number of
employees varies from country to country as per the requirements and needs of
the business and operations. The global team of Volkswagen is an inclusive one
that accepts, and encourages diversity, and works in synchronization with
members to ensure attainment of business goals. The team member sand
employees are the most important part of business success for Volkswagen.

2.3.3. Gaps in required capabilities and capacities

Volkswagen has a well-defined system for identifying potential needs of
capabilities and capacities for the organization. The human resource function of
the business has a systematic process that aligns all other departments to identify
potential vacancies or skill gaps. Based on the nature of the need, the human
resource department arranges for recruitments which may be permanent or
contractual in nature, as well as arranges training sessions if need be for the
current workforce.

2.4. Skills
2.4.1. Employee skills
Volkswagen has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merit and qualifications. Volkswagen
prides itself on hiring the best professionals and grooming them further to
facilitate growth and development.

2.4.2. Employee skills vs task requirements

Volkswagen has defined tasks and job roles and hires and trains employees for
skill levels accordingly with respect to those. The company ensures that all its job
requirements are met and that employees have the sufficient skills to perform
their respective jobs in accordance with the values and culture as well as the
business goals and strategy of Volkswagen.

37
2.4.3. Skill management
Volkswagen pays particular attention to enhancing the skills and capacities of its
employees. It arranges regular training and workshops – internally as well as
externally managed- to provide growth and development opportunities for its
employees. Volkswagen focuses on personal as well as professional growth for
its employees and works accordingly with them.

2.4.4. Company’s competitive advantage

The human resource is one of the core competitive advantages of the company.
The skills of employees are developed specifically for job roles and requirements
at Volkswagen and provide a competitive benefit to the company – where players
cannot imitate employee skills or training. This creates a unique and non-
substitutable competency for Volkswagen.

38
 SWOT ANALYSIS

Strengths
 Quality
 Reliable
 Performance-oriented
 Ability to design products with differentiating features
 Brand image
 Experience and know-how in technology

Weaknesses
 Market share is threatened by huge lineups from Toyota, BMW, Merc
 High labor costs
 Production facilities

39
Opportunities
 Road development
 Territorial expansion
 Car penetration in India
 Interest in environment friendly vehicles
 Tax benefits

Threats
 Global competition
 Government regulations
 fuel issues
 Rising oil and raw material prices in the world market

40
 OBJECTIVE OF THE STUDY
Primary Objective:
 To know the effective factors of awareness and preferring VOLKSWAGEN cars .

Secondary objective:
 To Study and analyze the Promotional Strategies of VOLKSWAGEN
 To know whether the customers are satisfied with the offers given by the
dealer.
 To know which kind of offers can attract the new customers. To find the
area to be improved.
 To find the reasons for the dissatisfaction.
 To know the influence of various Marketing Strategies, Promotional
Activities towards the customers of LUXURIES CARS.
 TO study and analyze the customers perception regarding the
usefulness/utility of VOLKSWAGEN cars.

RESEARCH METHODOLOGY

41
 RESEARCH METHODOLOGY

“Marketing research is the function which links the customer and

public to the marketer through information – information used to
identity and define marketing opportunities and problems generate
define and understanding of marketing as process”.
Objectivity in research is all-important. The heart
of scientific method is the objective gathering of the information.
Function as marketing research within the company as to provide the
information and analytical necessary for effective.
 Planning of the future marketing activity.
 Control of the marketing operation in the present.
 Evaluation of marketing results.

AREA OF RESEARCH
My working area was PATNA & some parts near PATNA.I have
collected my data in these areas. As we know that those person will
invest in luxuries cars who BUSINESSMEN or PROFESSIONALS.
RESEARCH DESIGN
Descriptive research design includes survey & fact finding inquiries of
different kinds. The major purpose of descriptive research is
description of state of affairs as it exists at present.
SAMPLE DESIGN
 Stratified sampling
SAMPLE SIZE
 The sample size of the research is 100.

42
 Methods Of Data Collection
Data is the significant part of the research. Your all research depends
upon your data. Whatever data is collected by me during the internship
in the VOLKSWAGEN, I can divide the method the collection of my
data into two parts which are thus: -
 Primary data
Primary data are those which are collected fresh and for the first time
and thus happen to be original in chapters.
I have collected my data through phone calling and through
direct communication with respondents in one form or another or
through personal interviews. Through observation method I was able
to record the natural behavior of the group. Sometimes I verify the truth
of statements made by informants in the context of a questionnaire.
 Secondary Data
Secondary data are those data which are being already collected by
someone else and which have already been passed through the
statistical process.
I have collected my published date form Internet and the
books, magazines and newspaper.

LIMITATIONS OF THE STUDY

The information given in the above part is based on market survey,
meeting with the people, and phone calls, and the other medium like
internet. My project is based upon the interaction with the people.
 We have to target only a particular segment (higher class & upper
middle class).
 Sometimes customers don’t give time.
 Sometimes customers give fake information.
 Customers like doctors don’t have much time to visit showroom for
test drive so we have to go to them at the time at which they are free.

43
CHAPTER 5

ANALYSIS AND INTERPRETATION

OF FINANCIAL STATEMNETS AND
REPORTS

44
 ANALYSIS AND INTERPRETATIONS
1. Which car (fuel based) do u prefer?
a) Petrol
b) Diesel
c) L.P.G.
Data analysis:
Customer Preference Number of customer
Petrol 70
Diesel 30

Interpretation: The Consumers go for petrol in Patna rather than diesel

because the daily distance covered by the consumers is around 20- 30
kms.

2. What do you feel great about your car when compared to other cars
in the market?

a) Fuel efficiency b) Durability

c) Low maintenance d) Sound quality
e) Safety
Data analysis:
Customer Perspective Number of customers
Fuel Efficiency 30
Durability 16
Low Maintenance 20
Sound Quality 15
Safety 19

45
 Number Of Customers

100
80
60
40
20
Number Of Customers
0
Affordable by Affordable only Can’t say.
common man by rich man

Interpretations: From this question we can position the cars according

to the customer’s perspectives. Many of the VOLKSVAGEN
customers are buying the cars by seeing its Brand Name only.
Volkswagen’s Polo is India’s safest car with 4 stars in safety.

3. What kinds of offers do you like or expect from the dealer?

a) Free insurance
b) Special discount on sale of cars
c) Extending the service period
d) Finance availability with 0% interest

Data Analysis:
OFFERS NUMBER OF CUSTOMERS
Free Insurance 16
Special discount on sale of cars 14
Extended Warranty 40
Finance with 0% interest rate 30

46
 Number Of Customers

Affordable by common man Affordable only by rich man Can’t say.

Interpretation: By the result of this question we come to know about

the various promotional techniques/offers which attract the customers.
From the above analysis many customers are expecting the extension
in the service period from the various offers given to them.

4. What more do you expect from your dealer?

a) Information about new cars
b) Information about service and mileage
c) Assistance regarding loans and insurance
d) Understanding customer needs
Data Analysis:
Expectation Of Customers Number Of Customers
Information about new 22
cars
Information about service 34
and mileage
47
 Assistance regarding loans 20
and insurance
Understanding customer 24
needs

Number Of Customers
90
80
70
60
50
40
30
20
10
0
Affordable by Affordable only by Can’t say.
common man rich man

Interpretation: Most of the customers are expecting the information

about service and mileage regarding the cars from the dealer. From the
above analysis we come to know about the customers and expectations
and their post purchase service demands from the dealer.

48
5. Where do you get your car serviced regularly?
a) At authorized service centre
b) At a local workshop near my home.
Data Analysis:
Place of service Number of customers
At authorized service centre 70
At a local workshop near my 30
home

Number of Customers
35
30
30
24
25

20

15

10

0
Honda Hyundai

Interpretation: Most of the Volkswagen customers are interested to

service their vehicles only at the authorized dealers. From this we come
to know what the importance of authorized service centers for car is.

49
6. What other brand(s) will you seriously consider before making a next
car purchase?
a) Honda
b) MERC
c) SKODA
d) Volkswagen
Data Analysis:
Brand Name Number of Customers
Honda 24
Hyundai 30
SKODA 36
Volkswagen 10

Number Of Customers
90
80
84
70
60
50
40
30
20
10 12 4
0
Affordable by Affordable only by Can’t say.
common man rich man

Interpretation: Most of the Volkswagen customers are opting for Skoda

when they are asked to consider a brand other than VW. MERC
occupies the second place in their preference.

50
7. Can you share your experience with after sale service support?
a) Very much satisfied b) Satisfied
c) Ok d) Not satisfied

Data Interpretation:
Post Service Experiences Number Of Customers
Very much satisfied 10
Satisfied 60
Ok 18
Not satisfied 12

Number Of Customers

90
80
70
60
50
40
30
20
10
0
Affordable by Affordable only by Can’t say.
common man rich man

Interpretation: This question is prepared to know the service levels of

the authorized Dealer. Most of the customers are just telling
SATISFIED about the service. Only a very few customers are very
much satisfied with the service. Even some of the customers are not
satisfied with the service given by the authorized service men.

51
8. Which bank do you prefer in getting financial help while purchasing
a car?
a) ICICI b) HDFC
c) SBI d) Others
Data Analysis:
Name Of The Bank Number Of Customers
ICICI 42
HDFC 12
SBI 40
Others 6

Chart Title

Volkswagen
40 SKODA
30
20 Hyundai
10 Honda
0
Number of
Customers

Honda Hyundai SKODA Volkswagen

Interpretations: Interpretation: Most of the customers prefer ICICI and

SBI banks for taking financial help while purchasing a car. Customers
are asking for 0% interest on financial help provided by the banks.
52
9. How do you feel when an unknown sales person approaches you by
knowing your full details to demonstrate about any product?

a) I will not respond b) Lost my privacy

c) Interested in knowing (if I feel a need of it)

Data Analysis:
Customer Opinion Number Of Customers
I will not respond 22
Lost my privacy 10
Interested in knowing (if I feel a 68
need of it)

Number of Customers

40
35
30
25
20
15
10
5
0
Honda Hyundai SKODA

Interpretations: This question is prepared indirectly to know about the

customer’s opinion and about the Data Bank maintenance by the
VOLKSWAGEN. In reply majority of the customers gave a positive

53
reply by showing interest in knowing about the cars when a sales person
gives a detailed description about the cars.

10. What’s your opinion on a Brand Ambassador for the cars?

a) Very necessary
b) Not needed
c) Waste of money for manufacturer

Data Analysis:
Customer Opinion On Number Of Customers
Ambassador
Very necessary 86
Not needed 14
Waste of money for manufacturer 0

Number of Customers

Honda Hyundai SKODA

54
Interpretation: This question is meant to know about the importance of
Brand Ambassador for a car in the customer’s point of view. Most of
the VOLKSWAGEN customers think that a Brand Ambassador is very
necessary for promoting a car.

11. What’s your opinion on the price list of Volkswagen cars?

a) Affordable by common man
b) Affordable only by rich man
c) Can’t say.

Data Analysis:

Customers Opinion Number Of Customers

Affordable by common man 12

Affordable only by rich man 84

Can’t say. 4

55
 Number of Customers

Honda Hyundai SKODA

Interpretations: More than 80% of customers think that

VOLKSWAGEN cars are affordable only by rich men. These cars are
too expensive for an economic/common man of the stock.

56
CHAPTER 6

LEARNING EXPERIENCE- FINDINGS,

SUGGESTIONS AND CONCLUSION

57
SUGGESTIONS

VALUABLE SUGGESTIONS GIVEN BY CUSTOMERS

o Please try to increase the number of Service centers.

o Keep Service Stations at main locations of the city where

many customers feel it easy to go to service centers.

o The service men in the service centers are unable to

understand the problems told by us, and they are not
resolving the cars problems.

o Provide information on service and mileage regularly.

o Please provide information about new cars along with their

price lists at least once in 6 months.

o Advertisements through televisions can influence many

categories of people. Story to concentrate on this segment.
We don’t see or find much of the VOLKSVAGEN
advertisements in T.V.

o Customer should be educated about the maintenance of the

vehicle i.e.
 Maintenance tips should be provided.
 Mileage of the cars is not up to the expectations.

o Mileage of TOURAG is very worst.

58
 CONCLUSION

The present research project on the customer awareness and preference

of Volkswagen cars helps to analyze and understand the present market
scenario in the city of Patna. Hyundai and Skoda are the strongest
competitors so Volkswagen is required to work on its weaknesses like
offers at the time of convincing customers and giving various financial
plans. At last I would like to say that Volkswagen should maintain and
improve its market share in Bihar by improving its services and
providing customer satisfaction.

59
QUESTIONNAIRE

1. Which car (fuel based) do u prefer?

a) Petrol
b) Diesel
c) L.P.G.
2. What do you feel great about your car when compared to other cars
in the market?

a) Fuel efficiency b) Durability

c) Low maintenance d) Sound quality
e) Safety
3. What kinds of offers do you like or expect from the dealer?
a) Free insurance
b) Special discount on sale of cars
c) Extending the service period
d) Finance availability with 0% interest
4. What more do you expect from your dealer?
a) Information about new cars
b) Information about service and mileage
c) Assistance regarding loans and insurance
d) Understanding customer needs

5. Where do you get your car serviced regularly?

a) At authorized service centre
b) At a local workshop near my home.

60
6. What other brand(s) will you seriously consider before making a next
car purchase?
a) Honda
b) MERC
c) SKODA
d) Volkswagen

7. Can you share your experience with after sale service support?
a) Very much satisfied
b) Satisfied
c) Ok
d) Not satisfied
8. Which bank do you prefer in getting financial help while purchasing
a car?
a) ICICI
b) HDFC
c) SBI
d) Others

9. How do you feel when an unknown sales person approaches you by

knowing your full details to demonstrate about any product?
a) I will not respond
b) Lost my privacy
c) Interested in knowing (if I feel a need of it)

61
10. What’s your opinion on a Brand Ambassador for the cars?

a) Very necessary
b) Not needed
c) Waste of money for manufacturer

11. What’s your opinion on the price list of Volkswagen cars?

a) Affordable by common man

b) Affordable only by rich man
c) Can’t say.

Thanks for taking the time to fill out this questionnaire and for
providing valuable information which will be used for my project work,
market research studies and reports. We do not share or sell your name,
address or any.

62
 CHAPTER 7

BIBLIOGRAPHY

63
BIBLIOGRAPHY

REFERANCE BOOKS:

o V.S.RAMASWAMY AND S.NAMAKUMARI

(MARKETING MANAGEMENT)
o BELCH E. GEORGE & BELCH A.
MICHAEL(ADVERTISING AND PROMOTION)
o KOTHARI C.R.( RESEARCH METHODOLOGY)

 WEBLIOGRAPHY:

o www.volkswagen.co.in
o www.wikipedia.com
o www.cardekho.com
o www.slideshare.net

 AUTO MAGAZINES:

o AUTO CAR
o AUTO DRIVE

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