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CHEUVREUX 3rd German Corporate Conference

Ralf Limbach

Executive Director Group Marketing Volkswagen AG

Multi-Brand Strategy andBrand Differentiation at VOLKSWAGEN AG

VOLKSWAGEN AG

Kronberg, 21 January 2004

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Agenda

Future developments

Management of the brand portfolio of VOLKSWAGEN AG

Implementation of brand values as a starting point for the

multi-brand strategy

Introduction

Multi-brand strategies

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Agenda

Future developments

Management of the brand portfolio of VOLKSWAGEN AG

Implementation of brand values as a starting point for the

multi-brand strategy

Introduction

Multi-brand strategies

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Development of automotive sales worldwideLight vehicle sales in millions (incl. light trucks / SUVs / MPVs)

Source: Global Insight / DRI Automotive

0

10

20

30

40

50

60

70

80

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Western Europe

Eastern Europe

NAFTA

Latin America / RoW

Growth2002-2013

(CAGR)

4.9%

3.6%

0.8%

5.6%

1.1%

2.7%

30.8%Asia & Australasia

Africa & Middle East

Introduction

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Agenda

Future developments

Management of the brand portfolio of VOLKSWAGEN AG

Implementation of brand values as a starting point for the

multi-brand strategy

Introduction

Multi-brand strategies

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Agenda

Future developments

Management of the brand portfolio of VOLKSWAGEN AG

Implementation of brand values as a starting point for the

multi-brand strategy

Introduction

Multi-brand strategies

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Brand core / brand claim / brand values

The UltimateSports Car

The Sporting GrandTourer

Volkswagen AG

Seat Audi Volkswagen koda

Lamborghini Bentley

Auto Emocin Vorsprung durchTechnik

Aus Liebe zumAutomobil

koda - Simply Clever

Implementation of brand values

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Distribution policy - showroom conceptsImplementation of brand values

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Agenda

Future developments

Management of the brand portfolio of VOLKSWAGEN AG

Implementation of brand values as a starting point for the

multi-brand strategy

Introduction

Multi-brand strategies

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Brand positioning

rational

emotional

value prestige

Management of the brand portfolio of VOLKSWAGEN AG

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LuxuryLuxury

UpperUpper

Upper

Middle

Upper

Middle

MiddleMiddle

CompactCompact

SmallSmall

MiniMini

HatchHatch NotchNotch StationStation MPVMPV SportCoupSportCoup

Lim.CoupLim.

CoupRoad-ster

Road-ster

Pickup/Del. VanPickup/Del. Van Conv.Conv.SUVSUV

newmodels

*)

*) = long wheelbase version

Timely Roll Out of New Niches and New Models

**

Management of the brand portfolio of VOLKSWAGEN AG

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Coordination and steering of brand portfolios

Brandconstitution

Clear goals for thebrands consistent withthe multi-brand strategy

Action / budget for thebrand management has

to be planned andimplemented

Implementing thebrand portfolio

Establishing the

brand portfolio

Feedback

Brand auditSteering & coordination

Brandvalues

Design Product Personality

Brandpolicy

putting brandvalues intooperation

Management of the brand portfolio of VOLKSWAGEN AG

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Agenda

Future developments

Management of the brand portfolio of VOLKSWAGEN AG

Implementation of brand values as a starting point for the

multi-brand strategy

Introduction

Multi-brand strategies

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Product policy - VolkswagenAus Liebe zum Automobil

Golf V Concept R (Frankfurt 2003)

Future developments

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Product policy - kodakoda - Simply Clever

Fabia RS Roomster Concept (Frankfurt 2003)

Future developments

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Vorsprung durch Technik

Product policy - Audi

A3 Le Mans Concept (Frankfurt 2003)

Future developments

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Product policy- SeatAuto Emocin

Len Cupra R Altea MSV Prototype (Frankfurt 2003)

Future developments

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Product policy - Volkswagen NutzfahrzeugeIndividual Transportation Solutions for Every Customer

Nutzfahrzeuge

T5 Multivan Microbus Concept

Future developments

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Thank you very much for your attention!