ŠKODA – Next steps for a growing brand Marketing, Christian Gertges 07. March 2012 About ŠKODA ŠKODA AUTO - The 4th oldest car manufacturer with over a 100years tradition 1895 Václav Laurin and Václav Klement found Laurin & Klement bikes 1905 Laurin & Klement produce their first car, the Voituretta L&K Typ A 1925 Škoda Plzeň buys Laurin & Klement and registers ŠKODA AUTO 1991 2009 2011 3 Joint venture with Volkswagen AG ŠKODA has entered the SUV market with the all new Yeti New logo released ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 CONFIDENTIAL Importance of ŠKODA for the Czech Republic ŠKODA AUTO is the largest industrial company of the Czech Republic ŠKODA AUTO employs 24.714* full-time employees Turnover: 8,7* Billion EUR ŠKODA AUTO is an important sponsor of sporting and cultural events ŠKODA AUTO is an example for a successful transformation from a local manufacturer to a global player ŠKODA AUTO is an attractive employer for young graduates with challenging international assignments and career opportunities * in 2010 4 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Internationalization of ŠKODA 1991 30 markets 28% share of export 5 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 2010 104 markets 92% share of export 2010 production sites in CZ Kvasiny Superb, Yeti, Roomster Vrchlabí Octavia Production: 144.612 Staff: 3.772 Production: 73.746 Staff: 1.029 Prague Germany 75 Km 135 Km Pilsen Ostrava Mladá Boleslav Octavia Fabia Production: 316.344 Staff: 19.873 6 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Brno Austria 2010 assembly plants abroad Ukraine (Solomonovo) 09/2002 Russia (Kaluga) 10/2007 Kazakhstan (Ust„-Kamenogorsk) 08/2005 China (Shanghai) 03/2007 India (Aurangabad) 10/2001 India (Pune) 7/2009 7 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 ŠKODA Models Rapid** Development of the range of ŠKODA models Yeti Yeti Superb Combi Superb Combi Superb Superb Octavia Combi Octavia Combi Octavia Combi Octavia Octavia Octavia Superb Superb Superb Octavia Combi Octavia Tour Combi Octavia Tour Combi Octavia Tour Combi Octavia Combi Octavia Combi Octavia Octavia Tour Octavia Tour Octavia Tour Octavia Octavia Octavia Octavia Tour Combi Praktik Praktik Praktik Favorit Felicia Combi Felicia Combi Felicia Octavia Tour Roomster Roomster Forman Felicia Felicia FUN Fabia Combi Fabia Combi New Fabia Combi New Fabia Combi New Fabia Combi Pick-up Pick-up Felicia Fabia Fabia New Fabia New Fabia New Fabia 1996 1998 2001 2004 2010 2011 1991 9 Citigo* ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Roomster 2007 * in CZ ** only in India Overview – Actual ŠKODA model line-up ŠKODA FABIA ŠKODA YETI ŠKODA Citigo 10 ŠKODA FABIA COMBI ŠKODA ROOMSTER* ŠKODA OCTAVIA ŠKODA SUPERB ŠKODA Rapid (only in India) ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 * Also available as ŠKODA Praktik ŠKODA OCTAVIA COMBI ŠKODA SUPERB COMBI Study “Vision D” from Geneva Motorshow 2011 11 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Concept “Mission L” at Frankfurt Motorshow 2011 12 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 ŠKODA: Filling of these automotive segments Hatchback Notchback Combi Superb Superb Combi Octavia Octavia Combi Pickup/ SLW MPV SUV B Yeti A Mission L Fabia A0 Citigo A00 13 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Praktik Fabia Combi Combi Roomster ŠKODA is an important part of the VW group 14 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 ŠKODA is one of the ten brands of VW group* Nutzfahrzeuge * Plus shares in Suzuki and MAN, Porsche is still independend 15 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Variety of models within the VW group 16 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Deliveries to Customers in VW Group - Actual Result 2011 Sales vs. 2010 17 AKTIENGESELLSCHAFT VOLKSWAGEN in ths cars 8.160 +14,3% 1 2 3 4 5 5.091 1.303 879 529 350 4 2 3 1 5 +13,1% +19,2% +15,3% +21,4% +3,1% Record sales in 2011 879.200 cars 18 ŠKODA continues it`s growth in 2012 • Kick-Start ( +10,2 % = 75.400 dtc in 01/12) • Best result in January ever • The very succesfull course of our Growth Strategy 2018 will continue • Western Europe: + 10,8% 19 Role of the passenger car brands within the VW Group Global 20 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 ŠKODA customers Initial point: Learnings from customer brand study / ŠKODA is still an everyday, faceless brand. / Rational values „price/performance ratio“ and „functionality“ are established. / On the emotional side ŠKODA already claims „emotional security“ and „trust“. => We now should adjust and sharpen ŠKODA„s brand profile towards a contemporary “conviviality” area whilst aiming for an integrated image and position for the brand. Be less: - Traditional - Conservative - Distant - Functional (be more emotional) Stay: - Quality image - Belonging - Togetherness - Cosiness, family and friendly atmosphere - Reliability - Trustful Source: Synovate “Censydiam” Study, January 2008 22 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Be More: - Sociable - Comforting - Enjoyable - Convivial - Optimistic - Open-minded - Self-confident - Enjoy company of friends - Cheerful Old & new ŠKODA logos Logo on car Logo in communication 23 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 From new model Since 03/11 ŠKODA brand claim is 24 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 “Simply Clever” ŠKODA brand DNA “Understanding our customers, we will always put them first.” 25 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Changes in the needs of customers until 2020 – who are our customers? Mobility Ownership • Global increasing needs for mobility • Less money of the customers for mobility or different priorities in budget • Still demands for individualized solutions for mobility • Increasing demand for flexible models of ownership, to decrease product lifecycle costs • Decreasing importance of a car as a status symbol. The usage is more and more important than ownership Product Service • High customer`s focus on aspects like: • Downsizing • Individualization • Buying- and running-costs • Innovations in the product • “Environmental Correctness” 26 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 • Demand for extensive offers of service and support and above all • Increasing demand for services, which bundle all kinds of mobility and near-by areas (media integration, connectivity, etc.) Media use and use of communication is changing for all target groups Past: Today: Classical media was completly sufficiently to reach whole family TV Every member of a familiy uses different media, in different places and in different times. Prints Radio Billboards 27 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Countless communication channels What does this mean for the marketing? Implementation of Simply Clever in the marketing Simply Clever › in products › in processes › in sales & marketing Our view Clever solutions with low costs & investments 29 View of the customer Clever solutions with a high customer value ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Competitor`s view If we had invented this.. Simply Clever in marketing communication › Communication (TV`s, radio..) › Online Marketing (e.g. Social media, Apps..) › Motorshows › Events & Sponsoring (Hockey, Tour de France..) Who are our customers? 30 Where can we reach the customers? ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 How do the customers see ŠKODA? What can we learn from the customers? Simply Clever in Marketing Communication Update and Results in all six Dimensions Brand Essence in Communication International Structure and Cooperation Customer Insight Cooperation with Universities Media Efficiency and Effectiveness Dialogue and Interaction ŠKODA Brand model and essence from claim Understanding our customers, we will always put them first. Thoughtful Thoughtful in the following sense: caring, attentive, considerate. 32 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 CONFIDENTIAL The meaning of thoughtful – in practice Tesco Case Study Pre-ordering a delivery up to 3 weeks in advance for when you get back from holiday Texting you on the morning of your delivery to let you know the one hour slot it will be in (effectively giving you an hour back in your day) Sunday deliveries up to 10pm Quick shop using your last order 33 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 ŠKODA‟s future tone of voice Because ŠKODA goes further to understand the wants, needs, dreams and lives of its drivers and their passengers, it communicates in a fresh (surprising, smart, youthful) Clear Fresh and clear (straightforward, accessible, comprehensible) Thoughtful and / or bold (confident, daring, cheeky) way. By doing so, it establishes and maintains a clear brand tone that conveys „thoughtful‟. Note: All our communication shall reflect all three elements of our future tone of voice, however not always to the same extent. This will depend on the car-line / target group. 34 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Bold Thoughtfulness in the 4x4 Campaign Classical Approach We have a 4x4 technology and you should be impressed. Thoughtful Approach Making Safety Accessible SKODA is thoughtful by providing customers with financially accessible 4x4 cars, which help our customers to consistently travel in a more confident, and more importantly, safer manner. Looking through our customers‟ eyes - Parents We provide parents with safety of mind that they will be able to get their children safely to school, no matter the weather and road conditions. We do not provide technology, we are solving our customers‟ problems 35 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 „Thoughtful‟ in the 4x4/AllDrive Campaign - Prints 36 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Simply Clever in Marketing Communication Update and Results in all six Dimensions Brand Essence in Communication Customer Insight Media Efficiency and Effectiveness International Structure and Cooperation Cooperation with Universities Dialogue and Interaction Clearer Customer Insight can be obtained from a more detailed description of the Target Group Customer Insight: „A Day in the Life of…“ Using expert data sources and market expertise of importers and agencies Socio-Demographic Description NCBS + Basic Description NCBS - New Car Buyer Study Sigma – Study about social Milieus TGI – Target Group media usage analysis 38 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Sigma Enriched and Extended Description + TGI Concrete and Detailed Description Example of a customer profile – A normal day in life of Stefanie Life Stefanie is 34. Holiday & nature Sports & fitness “I need an agile car, which is practical and all-round. A car which fits to me and of course to my family. For sure the car must be safe, enviromental friendly and affordable. It also should elegant, but with a friendly charisma. 39 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Balance diet & health Friends Communication touchpoints of Stefanie 40 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Simply Clever in Marketing Communication Update and Results in all six Dimensions Brand Essence in Communication International Structure and Cooperation Customer Insight Cooperation with Universities Media Efficiency and Effectiveness Dialogue and Interaction Winter Semester PMx Projects in cooperation with Prague University of Economics 100 students from the International Marketing major at VŠE Topics are covered by groups of up to six students from different countries Projects (examples): Marketing Feasibility of customer loyalty with a bonus-system Possible brand cooperation with companies from other branches Marketing Communication Evaluation of online (focus on social media) activities: Do we really reach our focused customers? Marketing International Attracting New Customer Groups Product Marketing Infotainment in cars Car Configurator / trends, new ideas Simply Clever measurements in products (Fabia, Superb) 42 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Simply Clever in Marketing Communication Update and Results in all six Dimensions Brand Essence in Communication International Structure and Cooperation Customer Insight Cooperation with Universities Media Efficiency and Effectiveness Dialogue and Interaction Simply Clever in the digital world: Dialogue and Interaction Be where the people are We should not force the people to come to our website, but we should actively find our way to them. Go where they already are and not wait. This brings us closer to our current and future customers. We should not be afraid of experiments. 44 Listen and React We have to be interactive, which means communication should not be one sided but a dialogue. We must be pro-active and develop a world where our clients are forced to enter into a dialogue with us. We have to be interpret our customers‟ feedback and learn from it. ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 A Better experience than offline communication We have to offer added-value in online communication. Offer functionalities and means that are not possible in the offline world. Applications that are useful for our clients, that surprise them positively and give him a great user experience. CONFIDENTIAL Example of Simply Clever: Hockey App TVCs Stadion Airports Internet Overall: 62.632 downloads 45 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Tour de France mobile application powered by ŠKODA We branded the existing ASO TDF mobile application for Tour de France 2011 The app was available world wide except: USA, Canada, Norway, Denmark, Sub-Saharan Africa, Australia, and New Zealand, where the sponsorship rights are not available. Downloads and ranking Total Downloads: 363 000 Ranked 1st in 32 countries 46 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Simply Clever in the digital world: Dialogue and Interaction Be where the people are We should not force the people to come to our website, but we should actively find our way to them. Go where they already are and not wait. This brings us closer to our current and future customers. We should not be afraid of experiments. 47 Listen and React We have to be interactive, which means communication should not be one sided but a dialogue. We must be pro-active and develop a world where our clients are forced to enter into a dialogue with us. We have to be interpret our customers‟ feedback and learn from it. ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 A Better experience than offline communication We have to offer added-value in online communication. Offer functionalities and means that are not possible in the offline world. Applications that are useful for our clients, that surprise them positively and give him a great user experience. CONFIDENTIAL The Engineer Klemens Laurin as a Human Touch Element Customer Insight: „Facebook is like a private party among friends. A company, that would like to search for contacts there, should behave accordingly.“ 48 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 CONFIDENTIAL Simply Clever in the digital world: Dialogue and Interaction Be where the people are We should not force the people to come to our website, but we should actively find our way to them. Go where they already are and not wait. This brings us closer to our current and future customers. We should not be afraid of experiments. 49 Listen and React We have to be interactive, which means communication should not be one sided but a dialogue. We must be pro-active and develop a world where our clients are forced to enter into a dialogue with us. We have to be interpret our customers‟ feedback and learn from it. ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 A Better experience than offline communication We have to offer added-value in online communication. Offer functionalities and means that are not possible in the offline world. Applications that are useful for our clients, that surprise them positively and give him a great user experience. CONFIDENTIAL Car Configurator Strategy workshop of members of the boards 06/11 Amazon (Best Practice) Shown 6/2011 Car Configurator Bestseller Popularity of configurations Buy in addition/Packets „People, who buy…“ Extra equipment/Packets e.g. 4 years warranty Preview / Play mode 360°/3D preview Comparison Simply Clever Translation Models comparison Special offers Action model / Action packets Customer Reviews Response from customers „Book of the month“ Comparison tests We would like to understand our customers and offer active support 50 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 CONFIDENTIAL Outlook in 2012: future customers relevant functionalities Different customer needs… 51 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 CONFIDENTIAL … means different customer journey on the web 2 1 5 52 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 3 4 SKODA Car Casting Customers can experience the website in two different ways, fast and direct (Adam) or with assistance, with receiving help to choose the best car based on their specific needs (Eva). New concept of model pages for the SKODA website, which is constructed as a consulting tool, which should reflect user journey and help our customers throughout our site (in all places where customer is present – website, car configurator). CONFIDENTIAL Simply Clever in Marketing communication – what do we want to achieve? › Customer oriented in positioning › Getting relevance in our message › Internationalization of brand appearance › Focused usage of media channels › Interactive dialog with our customers 53 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Simply Clever in Marketing Communication: Next steps Development of ´thoughtful´ campaigns together with importers 54 Anouncing of new agencies and establshing them into the Hot House Constant generation and usage of customer insights Cooperation with Universities Continuious media optimization and securing of savings; Running a marketing spend effectiveness study and benchmark journey with McKinsey Launch of Citigo also via Facebook; Developement and Roll-out of a CRM Toolbox ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 CONFIDENTIAL We`re looking for talents.. Contacts: • Marketing: • Christian.gertges@skoda-auto.cz • All other departments: • http://www.skoda-auto.com/en/career/Pages/homepage.aspx 55 ŠKODA – Next steps for a growing brand, PM, C.Gertges, 07/03/2012 Thank You.