3/28/2013. ŠKODA Simply Clever Marketing Christoph Hohmann March Agenda. About ŠKODA. Simply Clever Marketing

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1 ŠKODA Simply Clever Marketing Christoph Hohmann March 2013 Agenda About ŠKODA Simply Clever Marketing The role of the International Marketing Team 2 1

2 ŠKODAAUTO -The 4 th oldest car manufacturer with over 110 years of tradition Václav Laurin and Václav Klement found Laurin & Klement bikes Laurin & Klement produce their first car, the Voiturette L&K Typ A Škoda Plzeň buys Laurin & Klement and registers ŠKODA AUTO Joint venture with Volkswagen AG only Favorit in the offer at that time ŠKODA entered the SUV market with the all new Yeti New logo and new CI/CD released New product offensive with a new model every 6 months: Citigo, Rapid, Octavia 3 Importance of ŠKODA for the Czech Republic ŠKODA AUTO is the largest industrial company of the Czech Republic ŠKODA AUTO is an important sponsor of sporting and cultural events ŠKODA AUTO employs over full-time employees Turnover: 10,4 Billion EURin 2012 (+1,7%) ŠKODA AUTO is an example for a successful transformation from a local manufacturer to a global player ŠKODA AUTO is an attractive employer for young graduates with challenging international assignments and career opportunities 4 2

3 2013 production sites in CZ Vrchlabí Roomster, Praktik Kvasiny Superb, Yeti, DQ200 automatic gearbox Mladá Boleslav Octavia, Rapid Fabia Pilsen Prague 75 Km 135 Km Ostrava Brno Germany Austria 5 ŠKODA main plant Mladá Boleslav 6 3

4 3/28/2013 Production of ŠKODA vehicles worldwide Citigo Fabia Rapid Mladá Boleslav Czech Republic Roomster Octavia Yeti Superb Vrchlabí Kvasiny Slovakia Bratislava Kaluga Russia Nizhny Novgorod Pune India Aurangabad Shanghai China cars built in ŠKODA in world markets ŠKODA sales , in thousands Min. 1.5 mn. cars

5 ŠKODA AUTO sales to final customers: 2011/2012 By regions, in thousands -1% % % Russia % % West Europe Central/Eastern Europe +13% China India The world Deliveries to Customers in VW Group Actual Results 2012 in thousands VOLKSWAGEN AKTIENGESELLSCHAFT Sales vs ,3% +12,7% +11,7% +6,8% +4,1% -8,3% 10 5

6 ŠKODA is one of the many brands of VW group 11 Overview Actual ŠKODA model line-up ŠKODA CITIGO ŠKODA FABIA ŠKODA FABIA COMBI ŠKODA ROOMSTER* ŠKODA RAPID ŠKODA YETI ŠKODA SUPERB ŠKODA SUPERB COMBI * Also available as ŠKODA Praktik 12 6

7 and the new OCTAVIA 13 Agenda About ŠKODA Simply Clever Marketing The role of the International Marketing Team 14 7

8 ŠKODA logos& brand values Logoon car Brand values From 01/12 Logo in communication From 03/11 15 ŠKODA brand and communication essence ŠKODA s tone of voice in advertising FRESH Understanding our customers, we will always put them first. BOLD THOUGHTFUL CLEAR Because ŠKODA goes further to understand the wants, needs, dreams and lives of its drivers and their passengers, it communicates in a: fresh(surprising, smart, youthful) and clear(straightforward, accessible, comprehensible) and / or bold(confident, daring, cheeky) way. 16 8

9 Implementation of Simply Clever in marketing Simply Clever in products in processes in sales & marketing Simply Clever Marketing Communication (TV, radio..) Online Marketing (e.g. Social media, apps..) Motorshows Events & Sponsoring (Hockey, Tour de France..) Who are our customers? Where can we reach the customers? How do the customers see ŠKODA? What can we learn from the customers? 17 Big changes in communication behavior and media consumption of target groups Before: Classical media types are sufficient to reach the whole family Today: Each member of the family consumes different media at different times and places TV Radio Print Outdoor Vast number of different media channels 18 9

10 What does it mean for ŠKODA? Understanding our customers, we will always put them first. Highly diversified media consumptionmakes it necessary to integrate and at the same time target communicationthroughout all relevant channels: TV, print ads, outdoor advertising, digital/social media, dialogue communication Integrated communication can be obtained much more efficiently and effectively if all disciplines are united under one roof: ŠKODA HQ, media agency, ATL agency, dialogue agency, digital agency 19 Simply Clever communication as the answer to the change Tasks: Examples: 1. Identification of a specific communication environment for each target group 2. Usage of digital media and digitalization of classic media 3. Usage of new communication channels and individual solutions for each customer 20 10

11 Agenda About ŠKODA Simply Clever Marketing The role of the International Marketing Team 21 Strategic goals of the internationalized marketing function at ŠKODA HQ 1 To establish an internationally consistent brand perception while achieving a new quality in our communication. 2 To support importers in their communicationactivities and to establish best practice sharing and synergies. 3 To reach qualitative and quantitative goals of Simply Grow strategy as related to brand communication

12 Team Marketing International Christoph Hohmann Sunny Holanová (Special projects) Marketing Consulting Media CRM Jean-Luc Barbier (Coordinator WE) Libor Šedivák (Media coordinator) Jakub Kováčik (CRM coordinator) Tomasz Piasny (Coordinator CEE) Mike Köppe (Media specialist) Anna Březinová (CRM coordinator) Pavel Jirák (CRM coordinator) Viktor Navrátil (ext. CRM coordinator) Jozsef Keszler (Coordinator SE) Jaroslav Sodomka (Media specialist) Anna Popelková (CRM specialist) tbd (CRM specialist) tbd Tarun Jha (Coordinator Non-European markets) Andrea Pfeiferová (CRM specialist) 9 Nationalities 23 Tasks of the Marketing International teams Marketing Consultants Media CRM Ensuring consistent ŠKODA brand image and communication worldwide Enabling, coaching and policing our Marketing Directors in over 100 countries Identifying and sharing marketing best practices across markets Steering media strategy and planning worldwide Monitoring and controlling media investments of over 230 mn. EUR Developing and rolling-out media guidelines and standards Advising countries on how to optimize the efficiency and effectiveness of their media spent Synchronizing all CRM relevant activities across HQ departments Providing CRM guidelines and toolboxes to all ŠKODA markets Supporting roll-out of infrastructure and systems 24 12

13 Agency landscape Status quo 2011 ŠKODA Auto HQ Marketing function Importers' Input Leagas Delaney MediaCom Importers' Input Importer s Advertising Agency Importer s Advertising Agency Importer s Advertising Agency Importer s Advertising Agency Importer s Media Agency Importer s Media Agency Importer s Media Agency Importer s Media Agency No specialized Online/Digital agency and no specialized CRM agency on HQ Level No pressure valve for peak times in the creative/production process No clear guidelines for importers agencies (e.g. scope-of-work, local fees, local production of creative assets) 25 ŠKODA Hot House All partners under one roof ŠKODA - Hot House Marketing Team Importer s input ATL 2 Advisory Board 1 Online CRM Media Importer s input Leagas Delaney Sinner Schrader DraftFCB MediaCom Local Leagas office Importer s Advertising agency Importer s Advertising agency Importer s Advertising agency Local MediaCom office Local MediaCom office Local MediaCom office Other local media agency Improved processes: Intensive involvement of importers in the campaign development process Higher efficiency: Centralization of the development and production of (TV) campaigns; local agencies to focus only on local adaptation of central campaigns and local tactical campaigns (with prior sign-off by HQ); local agency contracts to be revised accordingly Higher effectiveness: No need to re-invent the wheel in the markets. Savings (production costs, agency fees) to be invested in media Better results: Consistently high quality of communication throughout all channels and markets 1 Under the lead of Leagas Delaney 2 we are fallon as 2nd agency during peak times 26 13

14 Common objective of MRTs and working groups: Real involvement of importers Operative MRT KNOWLEDGE Working group 6 times per year Marketing Directors from G10 biggest markets Rotating guests Rotating locations EXCHANGE EXPERIENCE High frequency operational workshops/telcos Collaborative approach Joint decision-making Target: Usage of the extended resource pool (e.g. working groups) Buy-in of importers and consequently commitment Best Practice exchange between markets Regular face-to-face media checks (with G10 markets) Real market penetration of central strategies and guidelines MRT = Marketing Round Table 27 Training and enabling Marketing Managers from smaller markets via Marketing Orientation Day Goals: Enhance level of professionalism and marketing competency Build communication platform between (smaller) importers and HQ Increase overall understanding of strategic brand goals Explain and integrate the international communication strategy Create jointly a national communication plan Control media spending and media mix, show optimization potentials Coach on CI/CD guidelines and police CI/CD compliance Explain central CRM strategy and assess CRM capabilities in the markets Show how to combine marketing and PR to increase communication impact Identify open issues/concerns in the markets Share best practices / push for synergies Target Group Marketing Directors from smaller non-mediacom / non-mrt markets Newly appointed Marketing Directors from larger markets Fully-integrated, cross-functional marketing initiation program 28 14

15 Hot House and practical implementation - Example: Octavia target group and launch campaigns 29 Target group definition and description Customer Insight: Socio-Demographic Description A Day in the Life of Using expert data sources and market expertise of importers and agencies NCBS Basic Description + Sigma NCBS - New Car Buyer Study Sigma Study about social Milieus TGI Target Group media usage analysis Defining the target groups based on real data (NCBS, Sigma) Enriched and Extended Description + Enriching this definition with additional data sources TGI Concrete and Detailed Description Creating a real persona 30 15

16 Ole in pictures Source: TGI 31 Typical Brands that Ole prefers/buys 32 Source: TGI 16

17 Realities of marketing Every ŠKODA customer is not Ole Different countries, cultures and peoples respond differently to the same campaign 33 Leveraging Paid, Owned & Earned Media Paid Owned Earned Print, Televison, Radio, Magazines, Cinema, Outdoor, Banners, Direct mail, SEM/Paid Search, in-store media Brochure, retail stores, company website, Microsite, community, Facebook Fanpage, Mobile apps etc. Word of mouth, Facebook, Twitter, Digg, Youtube, Flickr, blogs, forums 34 Strangers Customers Fans 17

18 2 creative routes 3 stages of engagement We believe both Amazing Everywhere and Discover Octavia are very strong creative routes which will allow us to speak to the target audience through 360 communication We propose there are three stages of engagement which are activated by paid, earned and owned media Discover Validate (decide) Experience 35 Campaign 1: Amazing moments 36 18

19 Campaign 2: Discover 37 Thank You. 19

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