HISTORY Volvo Car Corporation is a Swedish automobile manufacturer, owned by the Chinese Zhejiang Geely Holding Group. Volvo Car Corporation was founded in 1927, in Gothenburg, Sweden. Volvo was originally formed as a subsidiary company to the ball bearing makers SKP. When Volvo AB was introduced on the Swedish stock exchange in 1935, SKF sold most of the shares in the company. Volvo Cars was owned by AB Volvo until 1999, when it was acquired by the Ford Motor Company as part of its Premier Automotive Group. Geely Holding Group then acquired Volvo from Ford in 2010.
Volvo manufactures and markets a range of SUVs, station wagons (estates), and sedans (saloons), compact executive sedans and coupes. With approximately 2,300 local dealers from around 100 national sales companies worldwide, Volvo Cars’ largest markets are the United States, Sweden, China, Germany, the United Kingdom, and Belgium. In 2011, Volvo recorded global sales of 449,255 cars, an increase of 20. 3% compared to 2010. . The first Volvo car left the assembly line April 14, 1927, and was called Volvo OV 4.
After this the young company produced closed top and cabriolet vehicles, which were designed to hold strong in the Swedish climate and terrain. In the registration application for Volvo logotype in 1927, they simply made a copy of the entire radiator for OV4, viewed from the front. Volvo Group, as one of the largest manufacturers of commercial vehicles in the world, took the initiative to sell its automobile manufacturing in 1999 in order to fully focus its efforts on the market for commercial vehicles. 1927 MODEL Volvo cars have long been marketed and stressed their historic reputation for solidity and reliability.
Prior to strong government safety regulation Volvo had been in the forefront of safety engineering. In 1998 Volvo also developed and was the first to install a head-protecting airbag, which was made standard in all new models as well as some existing models. In 1998, Volvo introduced its Whiplash Protection System (WHIPS), a safety device to prevent injury to front seat users during collisions. In 2004, Volvo introduced the BLIS system, which detects vehicles entering the Volvo’s blind spot with a side-view-mirror-mounted sensor, and alerts the driver with a light.
That year also saw Volvos sold in all markets equipped with side-marker lights and daytime-running lights. Much of Volvo’s safety technology now also goes into other Ford vehicles. In 2005 Volvo presented the second generation of Volvo C70, it comes with extra stiff door-mounted inflatable side curtains. According to the Insurance Institute for Highway Safety (IIHS), Volvo’s S80 became one of 2009 Top Safety Picks Award winner, but Volvo’s S40 and S60 (both 2005–09 models with standard side airbags) failed to attain the highest rating in their side impact test.
Volvo’s C30 has not yet been tested by IIHS, but received 5 star safeties in EuroNCAP. 1937 MODEL However, according to the IIHS, in recent years Volvo Cars have still managed to maintain their high class safety ratings as seen in test results. The Volvo XC90, S80 and C70 all score top scores in these rated crash tests. BEST SELLING CARS IN VOLVO * VOLVO V60 * VOLVO S60 THE MACRO AND MICRO ENVIRONMENTAL FACTORS The micro environment is which explains the internal environment of the company and which tells the position of the company in all the terms of the business and hence this gives an idea of the current position of the company.
MICRO ENVIRONMENT: interior of volvo cars The Volvo name is 90 years old and has become a Swedish international icon. In the year 1999, Volvo a Sweden based company is sold to Ford motor company, but Volvo maintained independency but benefited from the shared research and development and also the buying power. Volvo employs 27,500 employees. Volvo has its company in 120 countries. And has wide network and distribution of its product ranges to different parts in the world. Volvo sells its products through 2400 dealers worldwide.
Volvo’s main mission is safety, and also invests huge money in Research and development in Safety. Safety in driving has a major role to play in automotive, as majority of the customer’s priority is safety. Volvo sold 14 million cars in its life time, the figure shows success of the Volvo cars and also how Volvo has retained its position in the market in long run. Volvo is the strongest brand of FORD motors. Volvo is the major contribution to the success of Ford Motors. Volvo has asset oriented advertising.
The main asset of Volvo is Safety, and hence its advertising campaign is also based on its core competence or asset “safety”. Volvo being a subsidiary of FORD enjoys a shared Research and development programs. This is very beneficial and cost effective for Volvo, as being a part of the giant automotive group, Volvo can share the cost involved in Research and Development program. Hence this can be one of the key advantages for Volvo to be cost effective. Volvo is also popular for its innovations in the car industry which developed and produced different ranges of cars and hence Volvo has made large profits to FORD motors.
The core positioning strategy of Volvo is the Safety and longevity. In order to compete with the luxury brands of Toyota and Lexus, Volvo produced the premier cars which are symbol of luxury. Volvo brand was primary key aspects are Big estate cars, and Safety. Hence Volvo is the symbol of safety and innovations which helped the FORD financially. MACRO ENVIRONMENT: The macro environment gives the clear picture of the changes in the external environment and how these changes in the external environment have an effect on the performance of the company.
The macro environmental factors include Political, Economic, social, technological, environmental, legal factors, which are lose but external to the society. * ECONOMIC FACTORS: There is rise in the fuel prices, and this economic factor has hit the automotive industry fiercely and leads to reduce the performance of the company. Due to this rise in the prices of the oil, most of the customers have started choosing fuel-efficient cars, which has reduced the demand for luxury cars in the market. * SOCIAL FACTORS:
The major problems Volvo is facing is shift in the consumers preferences from a luxury, large engine cars with huge carbon emission to a fuel-efficient, and small cars, due to many reasons like rise in the prices of oil, and also governments are providing tax incentive to those who buy fuel-efficient and eco-friendly cars and other incentives include free parking and road tolls. This shift in the consumer’s preferences which is a Social factor has downturn the performance of the company. There is also Volvo much emphasis on family sector but in Europe there is decline in the number of families.
Hence Volvo market segmentation is wrong and may not be useful for sales growth. * TECHNOLOGICAL FACTORS: Costliest car in Volvo xc90 Toyota has occupied a major share in the market, with the adaptation and implementation of new and advanced technology into its product strategy, and hence has met the needs of their changing environment with fuel-efficient cars with low carbon emissions into the atmosphere. This technological change of the external environment of including many advanced features into the product was not adapted by Volvo.
Volvo has advanced only in safety but did not understand the need for the other features of the product which have become the centre of attraction in the market, and those advanced features are fuel efficient, eco-friendly, etc. * ENVIRONMENTAL FACTORS: Due to the emission of large carbon from the big size cars increased the pollution and hence have caused many problems like polluting air, etc. * LEGAL FACTORS: New laws on the protection of the environment have started rallying and this has hit the whole automotive industries.
Due to these environmental protection acts and Clean air Act, which was passed by the legislation, brought about a changes in the preferences and shift the needs and hence as discussed above choosing for eco-friendly cars. Volvo asset was and is also is only Safety, but the external challenges are seeking for more reliable, eco-friendly, fuel-efficient cars as the government is putting heavy taxes on the large cars, who emit large carbon into the atmosphere, and more over the governments are proving more tax incentives for those who choose fuel efficient cars, like free road tolls and parking etc.
Volvo has introduced flexi-fuel cars but they did not show a good sign on the profits of the company. STRATEGY OF VOLVO CARS * Price strategy, as the cars of Volvo is unaffordable for the common man and hence has to introduce such a model of car for the middle class people. This is the market penetration strategy where with the same product and same market the company has to reduce the cost and hence in turn can reduce the price of its products compared to its competitors. Market development strategy, where the same product is sold in different markets. * Product development strategy, where a new product is developed and is sold in the current and existing markets, extensions in the product features which make it different from its competitors and this can also be called as product differentiation. * Diversification strategy is one where the new product is sold in new markets, but this is more risky then the market penetration. THE BEST STRATEGY FOR VOLVO CARS Market penetration strategy, this strategy of selling its same products in the same market, for lower price by reducing the costs may not be useful for Volvo cars, this is because challenges Volvo is facing is the price rises of complimentary goods and environmental protections laws, which have changed the preferences of its customers from large engine luxury cars to the fuel-efficient cars because of government taxation policies, etc. hence , reducing the price of the cars will not be the best solution to face the challenge. Market development strategy, If Volvo adopts this strategy may not succeed as most of the current markets of Volvo is the developed countries and hence the consumers are in position of afford to buy a premium car. But, if Volvo looks for a market in developing and under developed countries, there is much risk factors involved for the growth of the industry. * Diversified strategy will not have a positive effect on the growth of the business as this is risky, and Volvo which is facing a huge performance crisis should not be risk taker but should be risk averter. Product development strategy, this might be the best strategy for Volvo, as in this strategy there is product development according to the changing trends and requirements and hence this would help the Volvo for growth, if it produces cars not only safety and reliability its cars, but integrating safety, fuel-efficient, styling, performance and this leads to differentiation among the players in the industry. If the company integrates all the requirements of the demands of its customers, would automatically increase sales and will enjoy a rapid growth for the business.
Volvo’s introduction of Flexi-fuel cars to reduce the sales shrink as the customers are moving to fuel-efficient cars shows a positive sign in its performance in the future. Future Product development programs also helps Volvo to achieve its programs like Volvo 2020, where it is trying to differentiate itself on two factors safety of both the environment and driving. Volvo should conduct a budgetary process on the available resources as product development process requires an excess investments into many aspects like research and developments and raw materials and advertising campaigns. SWOT ANALYSIS Strengths State of the art and first-rate new fleet of car manufacturing strategy to accommodate convenient travel and meet changing needs of their clients. * The magnitude of the Volvo’s operations permits them on pro over their rival car manufacturers by providing cars and automobiles to wider variety of passengers and clients. * Volvo has knowledgeable as well as skilful employees which enable Volvo’s operational research to perform better by the stakeholders of the industry and employees become its strengths. * The stronger customer orientation gives expertise in passenger and clients aspects. The Volvo uses online marketing strategies and methods to reach international clients easily through their websites. Weaknesses * The inadequacy of marketing strategies and methods which will help in reinforcing their competitive standards to retain clients. * It seems that Volvo lacks more improved market schemes to attract more consumers in global market. Opportunities * Accessibility of immense products pose a great opportunities if Volvo will use it properly * Global transitions can be of advantage and opportunity for the Volvo to work with. Virtual reality could provide a new marketing approach for the Volvo along with creativity, and innovation * The trends in information technology can provide ample opportunities to different business domains such as Volvo. Threats * Volvo’s inter threats is its being centralized and bureaucratic system and inability to maximize their potentials in being under Ford. * The orientation on local as well as national issues pose significant threat since much more conflicts that it neglect can be found in the global market. The threat of neglecting global issues in its place of deeply focusing on the local and global level. It provides tremendous threats when Volvo ignores these. * The aspect of globalization which can be a strengths and opportunities but can also be a threat if not to be vigilant and keen of its treachery and tricks. * Technological changes as well as client’s behaviour can also be a threat if interpreted wrongly. SOCIAL CRM & PROMOTING BRAND LOYALTY Challenge Volvo wanted to promote brand loyalty of lessees who, by virtue of their short-term relationships, were more likely to move on after their terms expired.
Insight Volvo owners love the brand, partly because Volvo treats them like family. By also treating new lease holders like “family,” Volvo could inspire the same kind of loyalty. Solution We developed VINE (Volvo Inspired Network of Enthusiasts), an online social community designed to connect lessees with the Volvo brand. Results The campaign improved brand loyalty among lessees reinforcing the sincerity of Volvo’s commitment. The program further evolved to become the center piece of a robust CRM engine, hosting sustained dialogue and providing an important line of communication for customers old and new. CUSTOMER RELATIONSHIP MANAGEMENT
The majority of the Volvo Group’s customers are involved in commercial transport-related operations. They place high demand on both products and services. The market is characterized by intense competition where customer satisfaction is a key factor as it lays a foundation for future sales and future profitability. The Volvo Group’s strategy is based on customers’ requirements and is focused on profitable growth, product renewal and internal efficiency. Customer requirements The Volvo Group’s products and services offer high performance characteristics, quality, safety, flexibility and a favourable total economy.
Customers are offered solutions adapted to their operations regardless of whether they involve a single product or a complete solution. Products, services and complete solutions are developed in close cooperation with customers with the goal of contributing to improving the customers’ productivity and profitability, and thus creating value for the customer. Volvo strives to increase the penetration and proportion of sales coming from services and soft products, with an offer consisting of financing, insurance, various forms of service contracts and spare parts, superstructures and attachments.
In the past few years, the Volvo Group has intensified its relationships with key customers. The advantages are many. The Group can support customers’ development in an even better way than previously, and intensified relationships result in increased penetration of both the product and the service range. The extended offering creates advantages for both the Volvo Group and its customers. Customer focus They work for our customers. They are dedicated to meeting their high expectations today and their long-term requirements for the future.
They always deliver in accordance with our agreements and want to be their customers best business partner. Volvo Group is one of the world’s leading providers of commercial transport solutions. They develop, manufacture and supply vehicles, machinery, products and services. By developing specific machines, vehicles and soft products for different industry segments, they can offer solutions designed to work efficiently together. To enhance their customers competitive edge, they increasingly provide financing, insurance, rental services, spare parts, components, maintenance, reliable IT solutions and other business services.
This is how they create value for their customers and contribute to the positive development of society. They collaborate closely with customers to develop products and services that improve their productivity, flexibility, cost-efficiency and profitability. Their sharp customer focus is combined with a keen business sense. They are determined to aggressively grow our business, primarily with demanding customers in selected and profitable segments. They understand their unique requirements and to find the most appropriate solution that matches their expectations and current business needs.
In a business environment with intense global competition, customer satisfaction and loyalty will depend not only on the quality and performance of our products, but also on how customers are treated and how services are delivered. That is why they are enhancing dealer and service networks, and why they strive to differentiate our aftermarket products and service offerings. Customer focus is based on everyone’s commitment and responsiveness. Profitable Growth The Volvo Group’s aim is to continue to grow with increased focus on profitability.
The goal is to grow by 10% a year over a business cycle with a higher pace in new markets. Part of the growth may, over time, come from acquisitions and then mainly in growth markets and in strategic product segments. Product Renewal The ongoing renewal of the Group’s product range and creation of new and better products and services is a challenge, but a matter of survival. Intense competition, new environmental standards and safety and quality requirements put significant demands on the entire product development process. The Group utilizes common architecture and shared technology creates synergies and reduce costs.
Operational Excellence The Volvo Group strives to optimize cost-efficiency and productivity in all parts of its operations by reducing manufacturing costs and sales and administrative costs and by speeding up product development and other processes. The work also comprises competence development and organizational development. VOLVO CARS WITH PRICES IN INDIA There are 11 Volvo Diesel Cars available starting at price of Rs. 25,00,000. The popular diesel cars among these are Volvo S60, Volvo XC60, Volvo XC 90 ;amp; Volvo S 80. ————————————————-
Fuel Efficient Volvo Cars in India There are 11 diesel and 3 petrol cars. Most fuel efficient petrol cars are Volvo S 80 ;amp; Volvo S60 and most fuel efficient diesel cars are Volvo S60, Volvo S 80, Volvo XC60 ;amp; Volvo XC 90. Of the petrol cars best mileage is given by Volvo S 80 V8 AWD which is 11. 4 kmpl. Most fuel efficient diesel car of these is Volvo S60 D3 Summum which is 18. 5 kmpl. Of the cars listed most fuel efficient are Volvo S60, Volvo S 80, Volvo XC60 ;amp; Volvo XC 90. India’s top Volvo High Mileage Cars are Volvo S60 & Volvo S 80.
The lowest price model is Volvo S60 D3 priced at Rs. 25,00,000. There are many cars in view comprising Sedans, SUV & Luxury present in the given listing. ————————————————- Volvo SUV Cars Total 4 Volvo SUV Cars available in India. Volvo XC60 D3 Kinetic is the lowest price Volvo SUV Car priced at Rs. 35,25,000. Most popular Volvo SUV Car is Volvo XC60 priced at Rs. 35,25,000. The current top Volvo SUV Cars in India are Volvo XC60 & Volvo XC 90. Some of the popular Volvo 7 Seater SUV Cars listed are Volvo XC 90 starting at price Rs. 2,80,000. ————————————————- Volvo Sedans Cars There are 3 sedan cars available in the listing. Most popular Volvo Sedans Cars is Volvo S60 priced at Rs. 25,00,000. Lowest price Volvo Automatic Sedans Cars available is Volvo S60 D5 Kinetic at the price of Rs. 31,00,000. While the most expensive Volvo Automatic Sedans Cars priced at Rs. 35,00,000 ————————————————- Volvo Automatic Cars There are 12 Volvo Automatic Cars available starting at price of Rs. 31,00,000.
The popular Automatic cars among these are Volvo S60, Volvo XC60, Volvo XC 90 & Volvo S 80. There are 9 Volvo Diesel Automatic Cars available including Volvo S60, Volvo XC60, Volvo XC 90 & Volvo S 80. And 3 Automatic petrol cars available including Volvo S60 & Volvo S 80. PRODUCT LINE Top of Form Bottom of Form Volvo Trucks Our trucks maximize driver productivity and availability without compromising on safety, and our wide range of services makes your transport duties as efficient, trouble-free and economical as possible.
All in all, we provide all the tools you need to achieve the bottom line results that enable you to stay ahead of competition. Buses & coaches Volvo Buses product range includes complete buses and bus chassis for city, intercity and coach traffic. The company has a total offering that, in addition to buses, includes a global service network, efficient spare parts handling, service and repair contracts, financial services and traffic information systems. Construction equipment Volvo Construction Equipment develops, manufactures and markets equipment for construction and related industries.
Its products are leaders in many world markets, and include a comprehensive range of wheel loaders, hydraulic wheeled and crawler excavators, articulated haulers, road machinery and a wide range of compact equipment. Marine power Volvo Penta manufactures engines and drive systems for marine applications, for both leisure and commercial craft, with an engine range of 10 to 900 hp and has a global service network of approximately 4,000 dealers. Volvo Penta also supplies industrial engines ranging from 75 kW to 640 kW for irrigation pumps, generator units and other industrial applications.
Industrial engines & systems We can supply you with industrial engines for stationary and off-road applications and engines for the electrical power generation. Technical quality, reliability and worldwide support are key factors why builders of equipment, machines and vehicles choose Volvo power. Volvo Penta’s network of qualified and skilled service dealers provide everything from spare parts and advice to extensive and tailor-made agreements. Financial services Volvo Financial Services (VFS) delivers high quality financing and related services to customers of the Volvo Group.
Financial services, such as customer and dealer financing, and other services, such as insurance, contribute to create customer value. Providing attractive financing solutions is essential to retaining existing customers and attracting new ones Industrial IT solutions Our industrial IT solutions cover all areas of the industrial process. We streamline IT so that you can focus on your core business. We establish IT support for all the processes at your company and integrate them to produce an effective flow of information. We design solutions that facilitate global coordination. Logistics solutions
Volvo Group Logistics Services is among the leading providers in the field of logistics services for the global automotive, transport and aviation industries. Our unbeatable industry experience in combination with the latest information technology allows us to offer the most optimum services. And we provide our customers with support of every conceivable type at every stage of the business process. VOLVO BRANDING In every brand book or brand program there is usually the example of Volvo, the brand that has positioned itself in the car category synonymously with the word “safety”.
Volvo brands itself with the key sections: Safety, Design, Performance and Environment. Safety first, and everybody expects only that from Volvo. Design is obviously second. Performance third, it simply cannot be first because nothing can jeopardize safety. Finally the environment Volvo is a good citizen. BRANDING THROUGH MASS MEDIA The Volvo Car Corporation is one of the car industry’s strongest brands, with a long and proud history of world-leading innovations. Founded in Gothenburg, Sweden, by Gustaf Larson and Assar Gabrielsson, the ? rst car left the factory on 14 April, 1927.
To promote the S60, the Volvo team ran an extensive mobile branding campaign with Google. With Google’s AdMob platform, the Volvo team targeted smart phone owners, a demographic that was more likely to have higher household incomes and more likely to be in the market for a vehicle like the S60. The Volvo team used a combination of banners and interactive video ads to engage consumers while they were browsing mobile content on their phones. According to Insight achieved signi? cant lift across all brand metrics: +240% in brand favourability +88% in purchase intent 78% in recommendation intent. These results set a new bar in mobile ads as Insight Express indicated that Volvo outperformed average brand lift for automotive advertisers by 11x. Interaction and click-through rates also exceeded the client team’s expectations. According to Google, mobile users interacted with Volvo’s ads for 1 minute on average. VOLVO’S SOCIAL MEDIA VENTURES With social media still trying to prove its worth to many large corporations, sometimes it can be interesting to take a look at how some of those businesses are approaching the medium.
Regular Brand watch guest-blogger Felicia Baratz-Savage takes a look at how motoring giant Volvo has tackled the opportunity, with particular regard to its B2B ventures. Volvo has a well-earned reputation as a maker of automobiles, and in many circles it is highly regarded for the quality of its engineering. However, they are much more than just a car manufacturer, and only now is the company developing a reputation befitting the breadth of its products. As a maker of construction equipment, Volvo has long toiled in the shadow of other equipment producers.
Yet in recent years it has reinvented its image in ways that has elevated its image outside of the auto world. The result has been record-breaking sales and profitability for the company. The center of Volvo’s recent marketing campaigns has been the use of social media to publicize the business and connect with consumers. Although the company has not publicly attributed its increases in sales to their implementation of social media strategy, there’s no question that social media has contributed in some way to the business’s growth.
Some of these approaches may be relatively new to traditional marketing departments, but as online marketing and social media strategy prove their value, expect businesses to invest heavily into this new form of brand development. Having a hub for social content Volvo’s social media strategy has featured a blend of the familiar and the innovative. In addition to promoting its B2B services through Facebook, Twitter and YouTube, the company also developed a News ;amp; Media section on the Volvo Construction Equipment website, consolidating a variety of mediums and promotion tools into one location.
The Trade Shows ;amp; Events page, much like the company’s Facebook profile, is designed to be highly interactive to get users involved with the company and encourage connectivity between Volvo and its consumer base. Making it B2B Ultimately, the goal of Volvo’s marketing strategy is to get its name out there among a new base of consumers. By switching its marketing focus from individual consumers, as is the case when marketing automobiles, Volvo is now targeting businesses as its primary consumer base.
Although the company has developed a strong reputation as a maker of automobiles, taking on a business-to-business marketing approach means connecting with a new consumer base and competing with better-established businesses for the attention of those customers. And that consumer base is being increasingly found in a global market, thanks to Volvo’s efforts to expand into new territories. In addition to overhauling its social media efforts to connect with consumers on a digital level, the company also recently added a global social media director to oversee social media efforts as they relate to various regions of the world.
Overall, Volvo was able to increase its first-quarter 2012 sales by 17 percent worldwide compared to 2011’s first-quarter sales. That included a staggering 111 percent increase in sales in North America. In fact, every major region saw sales increase by at least four percent. PURCHASE DECISION MAKING SURVEY This survey is taken among 10 customers of Volvo showroom in Trichy road. 1. Source of awareness of Volvo cars 2. Other brands considered before purchase 3. Priority given to factors while selecting volvo 4. Reason for time taken 5. Mode of purchase 6. Gender 7. Monthly income
