PT. Garuda Mataram Motor (Indomobil Group)

Volkswagen Rejuvenation in IndonesiaThe re-branding of Volkswagen

Syndicate 4 : Rafael, Rieke, Pramadona, Rachmi, Joseph, Yunus

The Issues

The re-branding of Volkswagen’s brand faces the challenges of preposition from brand which literally as people’s car brand to luxury car brand

The competition between others luxury’s car competitors such as: Toyota, Mercedes Benz, BMW

Consumer perceptions associate VW cars with smaller and less prestigious vehicles

Status Quo Analysis

Volkswagen (VW)VW is Europe’s biggest automotive

businessThe third largest car manufacturer after

Toyota and General MotorsVW sells its vehicle in more than 150

countriesHas larger share of the passenger car

market in South Africa, America and China

Years Descriptions of VW in Indonesia

1960 Entered Indonesia through PT. Piola (first promoted VW Beetle and VW Kombi Dakota)

1970

There was mismanagement in the company, VW was not fit enough to maintain their success. Soeharto’s government established PT. Garuda Mataram Motor (GMM) to maintain VW in Indonesia

1980Gained incredible popularity, still can’t maintain its accomplishment. Resulting VW to stop importing cars to Indonesia

1999 A regulation which allows imports of cars in completely Bulit Up form (CBU).

2001

PT. GMM began importing VW passengers car in CBU form. PT. GMM launched Golf, New Beetle, Passat, New Beetle Cabriolet, Golf Plus, New Golf Mk V, The New Polo, Golf GTI, New Touareg.

Premium Car Market in Indoesia

Provide not only driving comfort but also prestige

The products adapted to suit the local market emission standards, steering wheel position, creating a less expensive version.

The sales of premium cars worth over 500 million rupiahs per unit are not declining.

Remium cars continue survive in their market

Premium Car Competition in Indonesia

European automobiles seem to remain the favourites. They offer superiority of technology and respect to passenger safety

Japanese car (Toyota Camry) also considered in the premium car market.

In 2007: Big players like Mercedes-Benz and BMW dominates the market with 50% and 30%

Product ConcernsAfter New Golf GTI’s intoduced VW experienced

40% increased in salesPeople put their names on waiting lists to purchase

the car

Price ConcernsSome people can’t afford to buy a new one because

the price jump in the last 20 yearsVW’s price ranges from 250 million rupiahs to 1,5

billion rupiahs depending on the model and added features

Distribution CharacteristicsAbout 60% sales targeted in Jabodetabek areaHave 10 VW dealerships in the Indonesia

Promotions Characteristic Involved in numerous promotions as the prize for

drawings Sponsored events (music concerts, golf

tournament, Olympic event) Special driving course people experience the

capability of the car Community marketing:

VW Water cooled societyVW ClassicNu Volks Community

Volkswagen Fanzine Internet websites to give informations about

products, VW communities, events, etc.

Brand Service Process

•Usually known by the  VW loyalists 60's generation. •Only some of young people  known this brand which are young people with high levels of wealth and good knowledge of automotive

• VW has 10 dealership , 60% located in Jabodetabek• VW develop dealership and aftersales network in big cities (Bandung, Semarang, Surabaya, Medan, Banjarmasin and Makasar)

•Producing CBU form which still importing from Europe•Offer high technology, comfort and safety for passenger

Segmentation Targeting Positioning

•Can be found in Jabodetabek, province capital and other big cities

• Jabodetabek , province capital and other big cities•Loyality of the 60’s generation•Young people with high ability to buy•Addressed for community market, VW community

•CBU form•The product’s been altered. Suited with local market•Premium class with premium price. For a society that consider prestige•Prioritize in comfort and passengers safety•Fully equipped by high technology features. Just like other prestige cars (Mercedes Benz, BMW)

Product Price Place Promotion

•Reliable and powerful cars with better quality materials•The products suited with local market•CBU form•Add some high technology features just like others prestige cars•Launched a new variant for young people (sporty version)•New variant with lower price

• Premium class with range of price above 500 million rupiahs•Need  product’s diversification, that can hold under premium class . With range of price 250-500 million rupiahs

•Put the products in Jabodetabek area, province capital and other big cities•Since the premium product, reinforced it by styling location, location with high population density and high ability to buy

•Keep its promotion style•Avoid mass promotion to add prestige value/impression

Thank You