International Brand and Marketing (Case Study Sample)

International Brand Communication and Management: Case Study of Skoda Automobile Manufacturer
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Introduction
This report aims at evaluating the branding and communication approach that has been adopted by Skoda to remain competitive within the automobile industry. This involves the analysis of the key concepts that have been applied by the company and the key challenges that the company faces.
Situation Analysis
Political
The situational context of Skoda automobile manufactures could be evaluated based on the various external environment elements that impact on its performance. Among the key factors include the PEST factors. Key among these elements is the political dimension. In this regard, Skoda faces massive challenges in terms of balancing between the policies that are made in Germany and the Czech Republic. Skoda, which was incorporated in Czech Republic, is owned by Volkswagen, a German company (ING, 2015). This creates a conflict of policies since the company has to ensure that it abides by the government policies that have been set in either country. This creates an even bigger challenge since the management has to consider implementing the organization policies CITATION Nic07 \l 1033 (Wreden, 2007). This creates a major challenge for the company as it seeks to perform effectively within the highly competitive market.
Economic
Skoda has been operating in different markets across the globe. This includes major markets such as Russia, Ukraine among others. Its operations in the European region are an implication that it has been vulnerable to the economic trends that have engulfed the market. This includes the recent Euro zone crisis that impacted greatly on the levels of demand for cars offered by the company. Skoda copes with this challenge within its operations by focusing on other market internationally where the economic situation is more favourable. In future, the expansion of the brand into other market may be a positive factor that helps the company deal with the emerging economic challenges.
Porter’s Five Forces
Bargaining power of buyers
This could be viewed as the extent to which the consumers in the market influence the decisions made by a company in the respective market. The bargaining power of the consumers in the car industry in which Skoda operates is high. This is because there are many buyers of the cars who have adequate knowledge about the product. At the same time, there are many sellers that offer homogenous products CITATION Jea12 \l 1033 (Kapferer, 2012). This has been one of the main challenges for Skoda as it seeks to lure consumers towards purchasing its cars. While dealing with this challenge, the company uses strategies such as advertising and other promotional efforts so as to lure the consumers towards their brand. This is also part of the approach used by the company to develop consumer loyalty within the market.
Competitive rivalry
The competitive rivalry could be viewed as the extent to which players within the industry compete for the market share. The company faces stiff competition from some of the major brands within the industry. They include companies such as Peugeot, Daimler among others CITATION Leh14 \l 1033 (Lehner, 2014). Therefore, the focus of the company has been to provide a variety of car models through innovation. It focuses on introducing new car models in the market with competitive features. Some of the models that have been offered by the company include the Octavia and the Fabia among others. In future, the company plans to introduce more models in the market so as to attract an even bigger market share.
Branding Strategy
Skoda’s Brand Triangle
Customer experience
This is the extent to which a brand seeks to create a connection with the consumers in the market. It is an important factor that seeks to develop the levels of customer retention within the market of operation (Zhang, 2013). In the case of Skoda, there has been great focus on the provision of high quality customer care. This is done through the online support and telephones. The company seeks to reassure the customers that they are supported in any issue they may be experiencing within the cars they have purchased. To a great extent, this has been one of the areas that have enhanced the performance of Skoda within the car manufacturing industry. Te main aspect that has served as a differentiation point for the company has been the association of the core principles of the brand including honesty. This helps in luring the consumers in the market towards purchasing the cars that are offered by the company. Other elements of customer service that have been used pillars towards shaping the positive performance of the Skoda brand is the after sale services. The company has sought to maintain strong relationships with the customer by providing after sale services. Such services include advice on the routine maintenance of the cars and ways that they could improve the efficiency. Therefore, this has played a key role in enhancing the competitive position of the company over time.
Emotional appeal
The emotional appeal that is used by a brand is also an important element that shapes the outlook within the specific industry of operation. This involves the process of creating a link with the consumers and generating the perception relating to the specific brand. It is one of the most important factors that influence the level of success that a brand achieves within the industry (TODOR, 2014). In the perspective of Skoda, the emotional appeal has been key focus point in luring the customers in the market. This has involves the process of passing information to the consumers on the various elements of the cars offered that are unique. This creates a specific interpretation of the cars by the consumers within the market and lures them into making the actual purchase. Some of the elements that have been used by the company in convincing the consumers in the market regarding the levels of uniqueness of the products includes conform and reliability. These are key factors that the consumers of cars focus on while making the purchase. Therefore, the extent to which a brand within an industry is able to generate an emotional response from the consumers based on such concepts influence success. Over the years, the emotional appeal by Skoda to the consumers has been of great significance in improving the levels of sales. This has been more significant in the highly competitive sector where the rivals within the industry have introduced new car models within the market (SWAMINATHAN, 2015). Skoda has been able to leverage on the emotional attachment to the consumers in developing a level of loyalty from the consumers.
Functionality
This is an aspect of branding that focuses on providing the consumers with products that meet their expectations in terms of features and benefits. Customers within the market are mostly interested in the ability of a company to deliver products that meets the description that has been provided CITATION Gra15 \l 1033 (Graffigna, 2015). When the actual products fail to meet such expectations, its sales volumes may decline. This may also involve the damaging of the reputation of the brand that has offered the product in the market. In the case of Skoda, the focus on functionality has been mainly linked with the drive to strengthen the brand in the market. Some of the features and benefits that are offered by the Skoda cars as part of attaining and maintaining a competitive edge in the market include unique design, high performing engines in the cars, comfort and safety. Consumers in the car market tend to place such elements as high level priority CITATION Har15 \l 1033 (Hariharan, 2015). The extent to which the car that has been purchased meets the key indicators shapes the decision to buy. Other key areas that have been used by Skoda in creating brand strength within the market include the use of technology and differentiation in terms of car colours and shapes. This has also been a key development influencing the performance of the brand within the highly competitive car manufacturing industry. This is also in response to the approaches and strategies that are implemented by the rival companies within the industry. The management of Skoda has placed such factors as key part of ensuring that the demands of the consumers are met through the brand. Over time, the competitive positioning of the company has been greatly improved. The key challenge that has been faced by the company in the process of maintaining an edge on such factors has been the dynamic competitive environment CITATION CAR141 \l 1033 (CARTER, 2014). For instance, changes in technology within the car manufacturing industry have made it complex for the company to be up to date. The technology that may be considered as unique by the company at one point may become obsolete within a short period of time. Therefore, Skoda has found it’s appropriate to use other elements within the structure to ensure that it maintains a competitive advantage within the car manufacturing industry over time.
Skoda’s Brand Onion
The brand onion could also be used in the illustration of the extent to which Skoda has embraced the aspect of branding. This also provides key details of the focus areas of a company towards maintaining its brand strength within the market. In the case of Skoda, one of the key elements that have shaped its performance is the value for money. This has been the key drive that has impacted positively on the brand over time. The company ensures that the price that the consumers have paid for the products are in line with what they have purchase. This has been through offering cars that are efficient and in line with prevailing standards...