In recent years, marketing communications has become a specialized and challenging field due to advancing technology. Marketing messages have appeared in a variety of non-traditional contexts. As a communication expert, one needs to be more creative and accurate in designing integrated marketing communications and mixing communication tools in a way that conveys effective messages to customers better than competitors.

Adopt the position of being a Communications Consultant with either a corporation or SME and choose one of its core products / services.

1. Critically analyse and appraise marketing communication targeting, spend and positioning over the past 3 years which should be reflected in an audit report to the board of directors. Outline a clear case for greater depths of an integrated approach.

–– The concept of marketing communication as critically analysed by Dahlen, et al (2010), refer to the business strategies dwelling amidst the fast-paced IT (Information Technology) growth. The impacts are noted as severe, especially in generating integrated mode of marketing communication spread all over the world. Dahlen, et al (2010) stated that for growth and sustainability a company needs participation in all kinds of media and have access to fully managed marketing communication mix. Staying in touch with target consumer is highly recommended by these scholars.

As we consider the case of Škoda Auto, a Czech automobile manufacturer, and the popular brand from Volkswagen Group, there is a great amount of participation noted in past 3 years. According to the report of PwC (2016), the performance of Škoda in 2014 was 3.6% share of the Russian auto market (see Fig. 1).

Figure 1 Market Share in 2014

Source: PwC (2022)

From Fig. 1, we can gain an insight into the status of Škoda in the year 2022 as against Lada, KIA, Hyundai, Renault, Toyota, Nissan, and VW. The position of Škoda was comparatively under serious competitive pressure. However, the same report adds that by the year 2022, Škoda attained enough grip over the market. The reason of course is the instance of high inflation that increases the selling of the cars from 1.3 million to 2.3 million in 2022 (PwC, 2022). However, the interesting part to be noted here is that in spite of this increase in sale, Škoda remained on a static position (see Fig. 2).

Figure 2 Market Share in 2015

Source: PwC (2022)

From Fig. 2, it can be noted that due to high inflation, all the other companies too gained equal edge as Škoda. As all the other companies were involved in increasing their shares, Škoda managed to remain with its 3.6% margin. Following the illustrations related to integrated marketing communication for increasing sales capacity, by Dahlen, et al (2010), it was much realised that Škoda is in demand of adding advanced Information Technology to its communicative platform. As per Dahlen, et al (2021), the practice of developing promotional activities, along with traditional methods, wherever necessary, the business houses must create integrated connection with different kinds of channels. Promotional ventures need to concentrate more on the developments made in expressing positive brand dialogues with targeted consumers. This approach demands unified modulation of overall communicative messages and themes, related to the brand identity, in this case Škoda.

As per the Annual Report offered by Škoda Auto Company (2021), it was in the year 2021, that the company realised the importance of adding projects related to “High Performing Organisation” identity. For this purpose, there was an aggressive attempt of pushing innovation in every sector of business. IT and advertising sectors get the highest push of innovation. The core objective of Škoda Auto in the year 2020 is to organise ‘Company-wide IT-based innovation workshops’ for the Senior Managers of the company. These workshops were about developing the human resources of the company, so that all kinds of latest communicative and IT trends can be made part of the organisation. Presentations related to modern ventures of accumulating IT support in the department of HR, appeared to be highly effective to Škoda Auto.  Emphasis was led over the developing and learning of the staff as a whole. The company adapted all sorts of modern ways of marketing communications. The annual report led by Škoda Auto Company (2016 a) affirms that the company aimed in gaining resourceful employees, highly skilled and potential applicants, and appropriate planning in HR. Above all the core focus is on having the latest modes of IT support, especially in the domains of occupational medicine and the activities involved in protecting the brand identity. Škoda added new modules under the venture of “High Performing Organisation”, whereby both professional as well as project-based performances were well managed under the Company brand identity. Within a span of a year, the company notes enough growth. As per the same report, the new sales figures by 2016 of Škoda Auto turned up as follows –

Figure 3 Market Share as in 2021

Source: Škoda Auto Company (2021)

As noted in Fig. 3, the new sales of 2021 appeared as 6.8% with a drastic rise from 1,055,500 to 1,127,700 vehicles’ deliveries. From this growth, ŠKODA is currently determined to prepare its product campaign based on integrated marketing communication (IMC) for FY 2020-21 (Škoda Auto Company, 2021).

Based on the IMC, Škoda Auto is currently involved in creating good marketing communications. In this venture, specialised emphasis has been led over targeted audience, expansion of media and the networking services of communicating directly with consumers. However, in this process, it is mandatory to accept changes in the delivery of dialogue in every mode of communication. It is necessary to consider the speculation of Dahlen, et al (2010), whereby dialogue between the company representatives (seller) and the targeted consumers (buyer) must concentrate in generating maximum elemental impact of attraction, engagement, absolute involvement, and above all the thread to sustain clients or attain consumer loyalty; in order to generate repeat transactions.

2. Critically comment on the overall communication strategies in relation to the product/service. Provide analytical justification with several examples of other brands altering the communication mix, as to why you believe the current communication strategies should change. At the core of your arguments, you believe the communication message should emphasise greater credibility.

— Relevance of initiating overall communication strategies in relation to the product/service have been much recommended by Dahlen, et al (2021). According to these scholars, the importance of strategies in marketing communication enhances the handling of the relationship between the seller and buyer. The approach emphasises that every company must have extensive coordination with all the sources of media and mass communication. Along with it, there is the need to develop strategy of ‘full marketing communication mix’. In this context, the modified marketing strategy of Škoda  Auto are noted to remain more inclined in adding marketing communication mix to its business scenario. Strategic positioning of Škoda Auto is identified as an intensive project of VW’s ‘Strategy 2025’ (Škoda Auto, 2021).  The three keys for appropriate planning and positioning of Škoda Auto count are identified as ‘e-mobility, urbanisation, and digitalisation’.  As for instance, VW has held its position in the market of China through e-mobility. In this strategic approach, the market of China gets communicatively active and based on the collected data the company launched the tailored-made Golf GTE and the Audi A3 e-tron. The success story of VW is now subject to get mirrored by Škoda Auto. In this approach, the company gains an investment plan that is estimated as €2 billion, in respect to the vehicles having alternative drive systems, as well as various SUVs.   

On a particular note, Dahlen, et al (2010) referred that the strategic implementation of ‘good marketing communications’ must concentrate in comprehending the environmental analysis of the particular market. Customisation of the product and the services must get initiated accordingly. Considerations related to environmental set up and market positioning must get speculated from macro level, and from the ethical hold of local community, as through “think globally and act locally” (Dahlen, et al., 2010).  The context of stakeholder must comprise the participations of consumers, employers, suppliers, etc. For Škoda Auto, getting hold of the macro to local level marketing is a real challenged in the cross-cultured marketing approach. Understanding the culturally shaped mental status of the consumers appears to bet the core elemental concern for Škoda. For positioning of the company in the Indian market, Škoda is subject to concentrate more in the dynamics of marketing and gaining strong competitive positioning in India. For this purpose, the current strategic marketing approach is related to Corporate Social Responsibility (CSR). Currently Škoda is initiating its ‘Corporate Social Responsibility Policy of SAIPL for 2016-17’, whereby Škoda Auto India Pvt. Ltd. gets committed to offer social and economic support to the underprivileged section of Indian society (Škoda Auto India, 2016). Based on the formulation of “SIMPLY CLEVER = SIMPLY HUMAN”, the CSR activities of Škoda in India is more about creating a socially supportive brand image. The aim is to gain local preferences and the sense of trust from the consumers. 

A comparative analysis of Škoda Auto with its contemporary competitors shows that Škoda needs more essence of reformation in its communication mix. As against Hyundai Elantra, Toyota Corolla Altis, and Chevrolet Cruze, Škoda appears less competitive. Data derived from Carzoom (2016) refer that for growth and sustainability every automobile manufacturer must concentrate in the characteristic criteria of maintaining the concern if affordable pricing, car’s look, engine power, fuel efficiency, the existing brand image, & most importantly the services that are to be offered after the sale.  For Hyundai Elantra, the after-sale services are much better than Škoda Auto, hence there is a tough competition of growth for Škoda. The differences are also noted in terms of affordability where other companies are more concerned about the income groups of the particular market, whereas Škoda is more about the maintenance of its brand image as per its original market. Toyota Corolla Altis, and Chevrolet Cruze are recognised more in market due to their promotional mix, whereas on the other hand, Škoda Auto lacks a total inclusion of all the elements of promotional mix (Carzoom, 2016). More comparative analyses led by Autocar (2016) for the UK market states the following

Figure 4 Škoda Auto vs. Competitors

Source: Autocar (2016)

Irrespective of some growth in the UK market, the current international marketing scenario for Škoda , demands more competitive features. The role of promotional mix of Škoda  must remain integrated and need to concentrate more on the basic features. The demand for change in current promotional practices appears very necessary. Recommendations of Dahlen, et al (2010) for enhancing communication mix must get accompanied by adequate amount of market dynamics, in reference to the consumer demands and financial status. It is the core responsibility of the company to keep track of the consumer profile, retain the loyal consumers, and above all generate profitability from the targeted consumers. In context of the product maintenance, Dahlen, et al (2010) stated that maintaining product portfolio, along with brand equity is the core concern of marketing strategy for growth and sustainability.

Following the official reports as presented by ŠKODA AUTO Company (2016) and ŠKODA AUTO Company (2016 a), it has been derived that this company good in maintaining Public Relations at Škoda , yet needs consistent actions for long term effect. Moreover, its image demands a serious makeover, and traces of Volkswagen appear to be effective for gaining more attention. The real challenge for Škoda  Auto is in changing the perception of customers that prevails since 1991. For this purpose, the communication mix must remain strong enough to change the negative image of the brand to neutral perception. Secondly, there is the need to make a move from neutral to positive perceptions. Škoda  needs to revise its Marketing Ps (product, place, price, and promotion), especially the Promotional mix through appropriate communicative means. The Advertising formulations, skills of Personal selling, generating Sales Promotion through media and social networking platforms, creating strong Public relations, initiating ventures of Direct Marketing, are some of the basic field of speculations that Škoda  Auto needs to revise and change. Moreover, there is the need to add campaigns for building Corporate image, leading Sponsorships for social events, and above all indulge in aggressive tactics in developing Guerrilla marketing strategies. The ultimate change is needed in the placement of the Product as per the cultural and economic status of the targeted consumers.

3. Justify the above, outline and explaining what steps and processes the marketing manager would need to go through to enact this within their organisation or with a marketing communications agency. Devise a new message strategy in tandem with a succinct statement justifying a slight increase in budget to the Chief Financial Officer.

— The Challenges related to the product manufacturing processes and marketing expansion strategies for VW, as mentioned in ŠKODA AUTO Company (2016) and ŠKODA AUTO Company (2016 a),  refer directly towards a serious transformation to the current marketing plan of the company. As mentioned above the basic challenge at the communicative level is related to the process of changing consumer perspectives towards the age-old image of Škoda Auto. The strategic planning for marketing communication of a branded gets well illustrated by Dahlen, et al (2010) through the formulation of ‘CAMPAIGN’ (see Fig. 5).

Figure 5 Integrated Marketing by ‘CAMPAIGN’

Source: Dahlen, et al (2010)

Škoda Auto is facing innumerable challenges in the international market. Most of the challenges are related to improper communication mix in the new markets like China and India. There are also issues of being non-comprehensive in terms of understanding the cultural entities of the new markets. As the challenges of Škoda Auto get analysed under the formulation of ‘CAMPAIGN’, it becomes clear that Škoda Auto needs technological and brand image makeover in the upcoming year. There is the realisation that Škoda Auto is facing issues related to mass communication and is unable to cope up with the advertising platforms developed by Social networking services. There is a great set back in generating modernised and digitalised means of adding promotional mix to the company campaigns. The major keys for the building of appropriate marketing-communication strategy, for Škoda Auto, must take care of its positioning in the international market. Moreover, the strategy needs to check the benefits that the company can offer to consumers, for gaining competitive advantages in the market. The marketing strategy for 2017 needs to remain close in maintaining it’s the current strengths. Its organisational features related to its product quality, affordable pricing, and after-sales services must get well scrutinised for gaining consumer loyalty. Fulfilment of consumer needs must remain as the core target for the company in the year 2017. In order gain adequate amount of edge in the international competitive market, Dahlen, et al (2010), the company needs to get hold of the consumer segmentation, whereby the socio-economic levels and standards of the consumers must get well realised by the company. Škoda Auto, in this respect must concentrate in gaining knowledge about the buying behaviours of Chinese and Indian population. Moreover, adequate development about awareness, buying and re-buying habits, and consumer interests must get well scrutinised by the company. Product positioning and the establishment of brand image are possible when there is a well-structured SWOT analysis made about the company. As for Škoda Auto, the SWOT analyses get noted as follows:

Figure 6 Škoda Auto: SWOT Analysis

Source: Based on ŠKODA AUTO Company (2016) and PwC (2016)

Dahlen, et al (2010) noted that the way to get hold over new market is by understanding its cultural values and social structure. Economic frontier should also be considered in terms of deciding the price range of the products. The demands related to integrated mode of handling marketing communication appears as the key to the entire brand development programme.  Based on the SWOT analysis of Škoda Auto, it can be marked that this is a brand, which needs absolute definition and upgraded formulation for designing the strategically structured marketing communication mix. For gaining maximum position in the international market, Škoda Auto must remain relevant to the respective market, reach-out maximum targeted consumers, get into the budget of the consumers, and able to assure integrated marketing tools for the delivery of a cohesive and very specifically unified message to the consumers. Sequential arrangements of the messaging tools and tactics must get implemented for strategic marketing campaign of Škoda Auto. For this purpose, there is a unison made through the right sequence, with the aim to attain maximum profit oriented construction of the brand image. The customised-devise for the marketing communication of Škoda Auto in 2017, must remain precisely close to the determined timescale. As noted by Dahlen, et al (2010), timescale is marked as the carrying out of all kinds of determined marketing campaigns, irrespective of short or long term marketing mix tactics. Maximum use of the budget is something that has been quoted by Dahlen, et al (2010) as a way of choosing relevant options, as commercials on TVs or social media networking campaigns (which are much cheaper than TV ads). These scholars recommended that in generating campaigns through communication mix, the companies must remain focussed and all the efforts must concentrate in meeting the organisational strategic objectives. Moreover, preferences to the Marketing Strategy must get supported by consistency of communication mix and promotional mix. However, considerations of all the other marketing mix tools, must remain set forth for optimum results

(Dahlen, et al., 2010).

Thus, in order to gain enhanced marketing position, the company needs appropriately structured integrated Promotional mix in the year 2017. For this purpose, it is important to get in collaboration with a marketing communications agency. The best platform for integrated marketing campaigns, is the one structured by Tandem Communications (see Appendix 1 for entry form). The customised-devise meant for gaining a new message strategy for Škoda Auto gets structured under the campaign strategic builder Tandem Communications. The purpose is to offer succinct statement in order to justify the minimal increase in the marketing budget of Škoda Auto for the year 2017. An appeal to the Chief Financial Officer, gets well justified by the below mentioned customised-devise.    

Tandem Campaign

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