marketing mix - page 2
Keywords: new marketing mix of Skoda
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 2 of 10 pages: 1 2 3 4 5 6 7 8 9 10
is to replace one of existing models. So, temporary Skoda manufacturing program stands on “four legs”, but in the long term only on “three legs. Models are also available in few modifications sedan, hatchback and combi. (See Appendix 1).
2.3. Production of the company
Fig. 2.3.1. Production of the company in the years 1999-2003
(Annual report of Skoda for the year 2003, www.skoda-auto.com)
In 2003 Skoda Auto manufactured a total of 437,554 vehicles. Compared with the previous year, this represents a decline of 4,915 vehicles (-1.1%), which was caused by the overall worse performance of world markets and the resulting reduction in the demand for new cars. The Fabia model line accounted for 59.8% of the Company’s overall production in 2003, with 261,787 vehicles produced. Production of the Octavia model reached 156,497 vehicles in 2003, representing 35.8% of the year’s total manufacturing unit volume. In 2003, production of the Superb was in line with market demand at 19,270 vehicles. (Annual report of Skoda for the year 2003, www.skoda-auto.com)
2.4. Promotion to customers
Promotion mix is specific mix of advertising, personal selling, sales promotion and public relations that a company uses to pursue its advertisind and marketing objectives (Saunders 2002).
Advertisements are used mainly in TV spots and Billboards and exclusive magazines. Main face for the last TV spots for the last advertised model is Adriana Sklenarikova, model performed space and luxury for model Superb. For the most recent model Octavia II. was launched only promotion through Car show in Geneva and journalist testing drives in Athens, Greece. Promotion is made through charity actions Cultural (National Theatre in Prague) concerts and Sport events (World championships in Ice Hockey main sponsor every year from 1992, official car of the UK second football league, rallye teams etc.).
3. New segment of the market
3.1. Market share on the market of new cars
Fig 3. Market shares “sold new cars” in the years 2003-2007in following regions
2003
2004
2005
2006
2007
Czech Republic
49.6
52.6
52.6
50
47.7
Slovakia
53.8
57.2
52.8
44.2
44.2
Central Europe
14.4
17.6
20.8
19.1
18.1
Germany
1.5
1.9
2
2.1
2.2
United Kingdom
1
1.3
1.5
1.5
1.4
Western Europe
1.2
1.5
1.6
1.7
1.7
Source Annual report Skoda 2007
The above figure shows unrepeatable market share (in other countries) in the Czech Republic and Slovakia, which is slowly declining during the years. Market share in the Eastern Europe is high as well. In the UK and Western Europe is possible other growth with regards to that share is only 1.7 per cent of sales of new cars (more information in appendix 2).
3.2. New segment of the market – Family cars
Skoda has not entered this segment of
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