Skoda UK Market Analysis
Background
History * Skoda Auto is the third oldest car manufacturer (among others: Mercedes-Benz, Peugeot…) * The First Skoda car appeared in 1926. It’s an elegant and luxury car * The Skoda 860 in 1929 – the audience are presidents, archdukes and aristocrats * The Skoda Superb of 1930s was a sleek, powerful car * In the second Word War – Skoda produced military vehicles * After the war Skoda ran out of money to develop new models, began churning out cheap, humble cars for the masses and exported a few to Western Europe.
Acquisition by Volkswagen * VW guaranteed to preserve the independence and self-reliance of the factory, preserve the Skoda brand, this proved to be the deciding factors in accepting the proposal in 1989. * Sales after the acquisition in April 1991: 120,000 were sold in the former Czechoslovakia, 50,000 were exported to 30 countries (10,000 to central Europe, 20,000 to Western Europe, 20,000 to various other countries) * VW increased its investment in Skoda to 60% in 1994, to 70% in 1997, and by 100% in the year 2000. Skoda became based on VW designs and model platform to ensure quality standards.

Target Customer * Mid-class, who are interested in vehicle technical and engineering * Staying in west Europe and expanding UK market share * Enter the Asian market (China and India) with special attention to local perception, expectations and equirements.
Price
* Don’t change prices * Want to remain affordable and attainable for consumers * Matching consumers pricing points (special attention for new Asian market)
Promotion
Slogan: New Skoda, New Experience / Free Running
TV advertisement * Advertisement will focus on the YOUNG, SMART, pro-SPORTS, ECONOMICAL, PRACTICAL, STYLISH * Based on our product’s quality and price features * AD will play in Sports and fashion channels * Try to reach our target customers efficiently * Invite sports stars as the image spokesperson, he must be young and energetic new star. Use TV and Movie celebrities to play in our adds and use the car as a stylish and convenient vehicle. * The spokesperson should meet our new brand image
Magazine/Website advertising * Put advertising in the famous sports car magazines * Way to attract eyeball, very wide coverage. * The readers of sports car magazines should be our prospective customers based on our positioning. * List specific data to demonstrate our premium quality compare to our price * Premium quality is always the point we want to emphasis * Using the dynamic advertising on the popular car website * Also good way to attract eyeball
Out door advertisement * Skoda advertising in big international airports and highways * Airports and highways are full of our prospective customers, therefore a good place for us to advertise our cars. * Just very simple picture of our car, our spokesperson and our slogan. Increase Human Touch Points (Extremely important one) * Continue sponsorships to sports game and films