Markets

The Volkswagen Group is active on five continents with a large number of national and regional markets, some of which are highly diverse. In view of the problems of climate change and rising fuel prices, fuel saving is a key topic for all these markets. Our new petrol and diesel engines, which are even more efficient, have laid form foundations for further improvements in our position in these very different markets. Different mentalities, mobility expectations and infrastructure conditions have considerable impact on the sales prospects of present and future models. Regional economic and political factors call for adapted management, marketing and development strategies. In adjusting to these differences, one of our key corporate values, our proven tradition of customer nearness, comes to the fore.

Learning from customers
Customers’ interests play a key role in the action of Volkswagen Group managers and employees. Benefits for customers are always a major factor in our assessments of corporate activities. An intensive process of customer dialogue is crucial to our success and the development of long-term customer relations.

Through dialogue, employees and managers become thoroughly conversant with customers’ motives and requirements as well as their attitudes to our products and individual features. Our analyses of market structures and customers also explore the context of customer behaviour.

The constant high quality levels of our products are one of the cornerstones of successful customer relations. Our quality policy covers all corporate processes, assigning responsibility to suppliers and ensuring quality improvements throughout the Group.

Customers expect automobiles to be safe, as an essential requirement. We therefore continuously optimise the safety of our vehicles. Our safety efforts focus on accident prevention, mitigating the consequences of accidents and the integration of safety systems. The accident research activities of Volkswagen Group brands lay the foundations for the safety technologies of the future.

Market Research
We use market research and market analysis primarily to evaluate customer requirements and identify market trends in the relatively short term. These studies form the basis for marketing decisions which affect the whole Group. As such, they must deliver a comprehensive and detailed analysis of market developments. We employ a broad spectrum of analytical tools to evaluate the will to purchase and behaviour of our target groups. This also allows us to make a reliable assessment of our competitors’ strategic and technical positioning and plan our market activities accordingly.

Global scenarios for social developments
We carry out medium-term analyses within various business processes. We then use these to identify trends in society, technology and politics at an early stage, and highlight the opportunities that they present. To this end, we compile a systematic record and assessment of uncertainties and risks in the global environment of the automotive markets going forwards. This process also sees us refer back to reasonably sound assumptions on the social development of our corporate environment. These might concern

• the age structure of society,
• urbanisation trends,
• environmental legislation or
• the availability of resources.

From these we derive scenarios that provide models of our future development against a background of specific social conditions. In a second step, we then study a series of relatively uncertain control variables, such as energy supply and currency risks. These factors have the ability to change the course of the scenarios. The global scenarios compiled through these methods are channelled into the Group planning and strategy process. They help us to assess opportunities and risks, sharpen our eye for future challenges and assist us in the development of new strategic options.