International Marketing plan for Volkswagen

In 2007 the Volkswagen group with its headquarters in Wolfsburg, Germany sold
6,191,618 vehicles worldwide and 329,305 employees generated a sales revenue of
108,897,000€ with an operating profit of 6,151,000€ which in turn resulted in a profit
after tax of 4,122,000€.1 The group is divided into two divisions, namely the automotive
one, accounting for 91% of total revenues plus the financial one, contributing 9% to
the total turnover. Within the automotive sector, the company markets its vehicles
under brands like, VW passenger cars, Audi, Bentley, Bugatti, Lamborghini, Seat and
Skoda.
In 1984, Volkswagen as the first western auto maker, began its operational activity in
China. When it entered the market it had to form a joint venture with a Chinese
company to produce cars. By now the group has thirteen representative companies.
Due to its early engagement in the biggest Asian market, it reached a leading position
which despite some previous challenges lasted until today. For example, the corporation
sold 910,000 vehicles (VW + Audi) in Hong Kong as well as in the mainland of China
which resulted in a market share of 17.8% in 2007.2 Therefore, China is (yet) after
Germany the second most important market for Volkswagen, representing almost 15%
of the company car sales. In the following international marketing plan, the author will
describe how to increase car sales and boost market share up to 20% over the next 2
years with the introduction of a new small light weight hybrid car, the Volkswagen
Cotha.

[...]