Building brand equity
A Skoda case study

Page 1: Introduction

Deciding to buy a certain product involves choosing between the many alternatives in the marketplace. Such decisions are rarely easy, as in most markets, there are many different brands, each representing a range of meanings and values. A successful brand is familiar to consumers and inspires them with confidence, making them aware of the brand and its associated products. Ultimately, a truly...
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Page 2: A period of change

For the first half of this century, Skoda was one of the world’s greatest marques - manufacturing some of the most prestigious cars available, such as the luxury Hispano-Suiza limousines. It was a leader in motor car design, technical innovation and a pioneer in the new realm of motorsport.The economic situation during the communist years in the former Czechoslovakia forced Skoda to become...
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Page 3: Brand values

The key to changing consumers’ perceptions involved emphasising that Skoda cars represent exceptional value for money - the best Volkswagen technology at a very competitive price. Skoda’s brand values (i.e. what the brand stands for) are: value for money reliability fitness for function quality integrity. Skoda drivers tend to be people who are unpretentious, down to earth and...
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Page 4: Brand strategy

Volkswagen faced some important decisions concerning the Skoda brand. Using the Skoda brand name to launch a new product, through the strategy of brand extension, enabled Volkswagen to enter new market segments. The development of the Octavia highlights Volkswagen’s confidence in the Skoda brand. Skoda and Volkswagen decided that the brand needed a broader product base and that Skoda’s...
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Page 5: Brand image

People perceive a brand’s values and evaluate them either positively or negatively. A well-positioned positive image helps to establish a strong position enabling the brand to differentiate itself from competitors and improve its performance in the marketplace.Skoda’s advertising campaign portrayed the positive changes which have taken place in the company and in the cars. The...
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Page 6: Conclusion

In today's modern motor industry, a car’s brand is vitally important. It is more than just a marque - it represents product features, image, customer service and servicing. Today’s customers want authentic, individual products with integrity. Skoda has seized a unique opportunity - emphasising its values and creating a strong identity which has become the brand story of the decade.
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