Created by Syndicate 4, MBA ITB 46A

1. PT. Garuda Mataram Motor (Indomobil Group)
Volkswagen Rejuvenation in Indonesia
The re-branding of Volkswagen
Syndicate 4 : Rafael, Rieke, Pramadona, Rachmi, Joseph, Yunus

2. The Issues
 The re-branding of Volkswagen’s brand faces the
challenges of preposition from brand which literally as
people’s car brand to luxury car brand
 The competition between others luxury’s car
competitors such as: Toyota, Mercedes Benz, BMW
 Consumer perceptions associate VW cars with smaller
and less prestigious vehicles

3. Status Quo Analysis
 Volkswagen (VW)
 VW is Europe’s biggest automotive business
 The third largest car manufacturer after Toyota and
General Motors
 VW sells its vehicle in more than 150 countries
 Has larger share of the passenger car market in
South Africa, America and China

4. Years Descriptions of VW in Indonesia
Entered Indonesia through PT. Piola (first promoted VW Beetle and VW
1960
Kombi Dakota)
There was mismanagement in the company, VW was not fit enough to
1970 maintain their success. Soeharto’s government established PT. Garuda
Mataram Motor (GMM) to maintain VW in Indonesia
Gained incredible popularity, still can’t maintain its accomplishment.
1980
Resulting VW to stop importing cars to Indonesia
1999 A regulation which allows imports of cars in completely Bulit Up form (CBU).
PT. GMM began importing VW passengers car in CBU form. PT. GMM
2001 launched Golf, New Beetle, Passat, New Beetle Cabriolet, Golf Plus, New
Golf Mk V, The New Polo, Golf GTI, New Touareg.

5. Premium Car Market in Indoesia
 Provide not only driving comfort but also prestige
 The products adapted to suit the local market  emission
standards, steering wheel position, creating a less
expensive version.
 The sales of premium cars worth over 500 million rupiahs
per unit are not declining.
 Remium cars continue survive in their market

6. Premium Car Competition in Indonesia
 European automobiles seem to remain the
favourites. They offer superiority of technology and
respect to passenger safety
 Japanese car (Toyota Camry) also considered in the
premium car market.
 In 2007: Big players like Mercedes-Benz and BMW
dominates the market with 50% and 30%

7.  Product Concerns
 After New Golf GTI’s intoduced VW experienced 40% increased
in sales
 People put their names on waiting lists to purchase the car
 Price Concerns
 Some people can’t afford to buy a new one because the price
jump in the last 20 years
 VW’s price ranges from 250 million rupiahs to 1,5 billion rupiahs
depending on the model and added features
 Distribution Characteristics
 About 60% sales targeted in Jabodetabek area
 Have 10 VW dealerships in the Indonesia

8. Promotions Characteristic
 Involved in numerous promotions as the prize for drawings
 Sponsored events (music concerts, golf
tournament, Olympic event)
 Special driving course people experience the capability of
the car
 Community marketing:
 VW Water cooled society
 VW Classic
 Nu Volks Community
 Volkswagen Fanzine
 Internet websites to give informations about products, VW
communities, events, etc.

9. Brand Service Process
•Usually known by • VW has 10 dealership •Producing CBU form
the VW loyalists 60's , 60% located in which still importing
generation. Jabodetabek from Europe
•Only some of young • VW develop •Offer high
people known this dealership and technology, comfort
brand which are young aftersales network in and safety for
people with high levels big cities (Bandung, passenger
of wealth and good Semarang, Surabaya,
knowledge of Medan, Banjarmasin
automotive and Makasar)

10. Segmentation Targeting Positioning
•Can be found in • Jabodetabek , province •CBU form
Jabodetabek, province capital and other big •The product’s been
capital and other big cities altered. Suited with
cities •Loyality of the 60’s local market
generation •Premium class with
•Young people with premium price. For a
high ability to buy society that consider
•Addressed for prestige
community market, •Prioritize in comfort
VW community and passengers safety
•Fully equipped by
high technology
features. Just like
other prestige cars
(Mercedes Benz, BMW)

11. Product Price Place Promotion
•Reliable and powerful ca • Premium class •Put the •Keep its
rs with better quality ma with range of products in promotion style
terials price above 500 Jabodetabek •Avoid mass
•The products suited million rupiahs area, province promotion to add
with local market •Need product’s capital and prestige
•CBU form diversification, other big cities value/impression
•Add some high that can hold •Since the
technology features just under premium premium
like others prestige cars class . With range product,
•Launched a new variant of price 250-500 reinforced it by
for young people (sporty million rupiahs styling location,
version) location with
•New variant with lower high population
price density and high
ability to buy

12. Thank You