[puchoo]

I think the potential volumes which car manufacturers see in this segment are simply too good to resist and while there is a risk of cannibalization , it allows them to cover the segment more comprehensively perhaps and thus the 'potential' outweighs the risk.

Originally Posted by xplorauto

Do not let the brands compete in exactly the same segment like the way it happens today with the Fabia and Polo, or the Vento and the Rapid.

[xplorauto]

Originally Posted by puchoo

I think the potential volumes which car manufacturers see in this segment are simply too good to resist and while there is a risk of cannibalization , it allows them to cover the segment more comprehensively perhaps and thus the 'potential' outweighs the risk.

The entire discussion on this thread in based on the fact that there is a problem of differentiated identity, relative positioning and consequential cannibalization, that the VW is facing w.r.t its sister brand Skoda. The fact that they are trying to change it indicates that it is a problem that they do not relish and hence wants to fix. If not, VW should let their sister brands be as they are and not get into such rejig or re-positioning exercise. But assuming that they are looking to set this right, I feel there are better ways to explore rather than 'downgrading' a successful brand.

[puchoo]

I agree completely , my point only being in answer to why 2 sister concerns would be in the same segment - on the issue as a whole , yes i am sure it is a problem which VW would like to do away with as quickly as possible but there is no point in throwing away equity that a brand has built , there is no point in making something 'cheap' - and i dont mean prices here alone , to create a 'premium' for another brand.

Additionally , there is no guarantee that by doing this , the intended level of differentiation would be created necessarily , it might be possible on paper but unless VW offers - on ground- what one would expect from a premium brand , then its not going to help.

I wrote earlier as well that slashing prices is one aspect , but given that in many respects , already , models such as the Fabia lack in features - taking more away would hurt them further - so while VW might have managed to create some distance between themselves and Skoda , the adverse effects of this might be even lower numbers for Skoda which for a group as a whole is not good.

Originally Posted by xplorauto

The entire discussion on this thread in based on the fact that there is a problem of differentiated identity, relative positioning and consequential cannibalization, that the VW is facing w.r.t its sister brand Skoda. The fact that they are trying to change it indicates that it is a problem that they do not relish and hence wants to fix. If not, VW should let their sister brands be as they are and not get into such rejig or re-positioning exercise. But assuming that they are looking to set this right, I feel there are better ways to explore rather than 'downgrading' a successful brand.