BY ABHIJEET -1225110103 BHARGAVI -1225110106 SANDHYA -1225110116 SABITHA-1225110122

Introduction
Company profile

Origin --1937, Wolfsburg, Germany. Founder--Ferdinand Porsche & Adolf Hitler

Bankers--Deutsche Bank, Volkswagen Bank.

Present CEO

Prof. Dr. Martin Winterkorn

Marketing partners

Bentley, Skoda, Audi

and Lamborghini

PROFILE OF VOLKSWAGEN
Type--Public company Founded--Germany,(1937) Headquarters, Wolfsburg, Germany Area served--Worldwide Industry-Automotive industry Products-Cars and trucks Services-Financial services Profit- 4.68 Billion (2008)

DIVISION OF VOLKSWAGEN
Volkswagen Group Fleet International, Volkswagen Group Supply, Volkswagen Group United Kingdom Ltd., Volkswagen Group of America, Inc., Volkswagen Group China, Volkswagen do Brazil, Volkswagen Group Australia.

HISTORY

Volkswagen was founded in 1937.

VWS 1ST Car manufactured on 16th sept,1938.

Cont
The Volkswagen was a centerpiece of Nazisms claims to benefit ordinary Germans. Hitler proposed to build a cheap car that almost anyone could afford. He gave it the name KdF Wagen,(Kraft durch Freude) which we know as the Volkswagen.

Cont
As early as 1934, Fhrer had talked with the most famous German automotive engineer Dr. Porsche about carrying out his thinking, and given him the commission to undertake the construction of the German Volkswagen. Early in May 1937, Dr. Ley carried out the Fhrer's commission to found the Society for the Preparation of the German Volkswagen.

Issues
EU Internal Market Commissioner Charlie McCreevy announced that he wants to take Germany to the European Court of Justice (ECJ) since in his view, Germany has failed to amend the so-called VW Law properly and in line with European legislation. The ECJ held last year that the VW law was in breach of European rules on the free flow of capital across borders within the EU. One of Germanys governing parties, the Christian Democratic Union, is drafting new regulations that would encourage foreigners to disclose investments in German companies, and expand Berlins right to approve or reject those investments, based on the national interest.

VW in CHINA
China is Volkswagens largest market. Volkswagen began producing cars in China in 1985 with Shanghai Automotive Company, which controls about half of China's car market. They set up a factory on Changchin, Some of the tooling came from a failed plant in Westmorland, Pennsylvania. It produced Golfs and Jettas. The latter became the bestselling cars in China.

Cont
By 1995 the German car manufacture produced 50 percent of the cars in China. In 2002, it reached the half million cars a year mark, producing 4 out of every 10 passenger cars sold in China and selling more cars in China than it did in the United States. It announced plans to open a third production site, in Yizheng City, and began exporting cars from China. In 2004, GM and Volkswagen were given permission to offer car loans through their financing arms.

Cont
In September 2009, VW said it would invest $5.8 billion over three years in China as part of its effort to stay ahead of the competition.

In INDIA
Volkswagens beachhead in China is strong, but the company has only made small inroads in India (pun intended). The company sold only 19,000 units in India in 2009, constituting a minuscule 1.3% market share. These results, however, should be used to discount the immense opportunity that India holds for Volkswagen (or its competitors). Car sales in India grew by nearly 30% in 2009. Auto Insight projects that the country will be the third largest automobile market in a decade.

Cont
India has a large and growing middle class, members of which command salaries between five and ten times the national average. Moreover, these individuals work in healthy industries and benefit from pay raises that can exceed 20% per year. The government of India estimates that some 300 million people make up this emerging middle class. This segment of consumers-in-waiting makes the Indian automobile market very attractive. If VW intends to meet its stated goal of becoming the worlds largest automaker by 2018,it must be successful in India.

Cont
Volkswagen Group India emphasized on all aspects of marketing mix including product, price, place and promotion. In its initial years, Volkswagen Group India primarily used the print media to promote its products. However, considering the growth potential of India's automobile market, the company started using electronic, digital and out of home media along with print media. In November 2009, the company launched an integrated marketing campaign to strengthen its brand image.

Cont

Therefore, in November 2009, the company launched an integrated marketing campaign to build its brand image. It also launched a marketing campaign for its iconic model, the Beetle. Volkswagen India expected that with its brand building exercise, it would be able to increase its sales and capture a significant market share in the Indian car market...

Cont
The Group operates 44 production plants in eleven European countries and seven countries in the Americas, Asia and Africa. RISK MANAGEMENT SYSTEM:- The object of this system is to identify business risk in a timely manner and to limit it to such an extent that the economic benefit of the relevant business activities outweighs the risk.

Designing for India: Adapting Volk

Indias automobile market presents unique challenges for Volkswagen. Many millions of people live in destitute poverty in India. Public transportation is a deeply entrenched alternative to cars wile roads and related infrastructure remains inadequate. To succeed in India, Volkswagen must adapt its products and strategy to the country, while maintaining its core business model and strengths.

Cont
According to VW, It is the goal to offer attractive, safe and environmentally sound vehicles which are competitive on an increasingly tough market and set world standards in their respective classes. To this end, the authors believe that the company should build a product strategy for India centered around safety, fuelefficiency, and eco-friendliness, in that order.

Conclusion
A historical over-reliance on the European automobile market has put VW into a precarious position. The combination of depressed regional demand and overcapacity cloud the companys outlook in its native region. However, the company must apply greater resources and focus to BRIC countries, particularly India. Success in India will require a region-specific approach focused on vehicle safety, fuel efficiency, and environmentally friendly vehicles. All of these are strengths of the company. The right adaptations for the Indian market will enable Volkswagen to differentiate itself from domestic and international competitors and generate growth.