Skoda Case Study Skoda Acknowledged Term Paper

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Further, the analysis so far also reveals the product and pricing tactics adopted by the brand.

While Skoda may have had a competitive edge in its product and price offering, the fact is that its UK marketing team still had to address the tremendous disparity between the product and its image. This could only be achieved through changing the entire country's perceptions of the brand (James, 2002), which meant that a great deal of careful attention had to be paid to advertising and promotion. Indeed, it is apparent that Skoda recognized the importance of this task judging by the radical, innovative approach of the campaign it released. Using self-deprecating humor to convey the single theme of "we know what you think about Skoda, but think again," (D & AD, 2003, p. 6) the Skoda campaign challenged assumptions about the brand using three, carefully chosen media of TV, Direct Marketing and Consumer PR (James, 2002).

Interestingly, the Skoda campaign still managed to make the product central to every communication by demonstrating how it had changed (D & AD, 2003, p. 6). For instance, in one TV ad, a pompous English dignitary is shown on a tour of the Skoda factory showering praise on the plant and the car. At the end, he whispers to his guide, "I hear you make those funny little Skoda cars too." (James, 2002) Thus, the Skoda campaign confronted the brand's negative image head on by using humor while simultaneously showcasing its product appeal.

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The TV campaign was ably supported by Direct Marketing and Consumer PR, which worked at building credibility for the brand's claims through tactics such as mass media editorials and inviting prospects to test drive the car (D & AD, 2003, p.11).

At the end of 2000, Skoda's sales had grown by 33% (year-on-year) in an otherwise flat car market. The upward trend continued in 2001 with year-on-year sales growing by 27%. The strategy also resulted in the number of consumers claiming they would never consider a Skoda declining from 60% to 40% (D & AD, 2003, p. 11). Thus, it is evident that Skoda's strategy was a huge success. In fact, currently, Skoda continues to ride high having managed to build on the foundation laid by its 2000 strategy (Smith, 2003). Therefore, it is virtually impossible to critique Skoda's strategy and tactics, other than to praise the company for having had the courage to confront the negative perceptions of its brand head-on......

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