Dealer 1. , location: Kaohsiung
According to your opinion, why customers choose Skoda?
The brand has a good reputation abroad. The customers red about a car on some internet forum and got interested because good reviews and a good quality assured also by the VW technology. The consumers liked Octavia mainly because it is roomy, safe and it has an excellent handling. They also appreciated the money-saving diesel engine.
How did you introduce Skoda to customers?
I did not have to tell them much. The most of them were already good informed. I usually explained them Skoda is a member of VW family, therefore all the technology was designed in Germany. After that I offered them a test drive. It was the thing which convicted the most of customers.
Who were the target customers of Skoda?
It was a middle generation of people. Skoda was one of the most expensive brands on the market, therefore it was not affordable for the young people. In fact, younger customers bought Fabia only in during the promotional periods.
Families and Businessmen represented the customer’s groups of Octavia and Superb.
What impact had on customers a fact that Skoda is from Czech Republic?
They knowledge was really low. For some customers the Czech origins of the car were a problem and also because of that they decided for another brand.
Which models were the most popular?
There were sold 704 Skoda in Taiwan and 68 out of it in my dealership. Octavia made about 70-80 % of sales. Fabia and Suberb were successful only during sales promotions, when it was offered with a high discount. The goal of Formosa was to offer a family alternative to VW Golf and VW Jetta. Octavia was the only Skoda model which was significantly cheaper than VW. Customers preferred the most silver, white and black color. The consumers do not like to attract too much attention.
How was the customers overall satisfaction of customers with Skoda?
There were no complaints about models. The most of customers is just worried about the availability of the spare parts in the future, when their cars get older. Consumers only come on regular check-ups like the change of oil in most of the cases.
What service did you provide to the customers?
There was given a three years guarantee on the all models. We still provide all the necessary service to our customers – check-ups, oil change etc.
Were there any promotional offers on Skoda?
In the beginning we were offering as a bonus the original accessories, like hands-free sets, navigation systems etc.
These electronic devices had to be imported from Czech Republic and the problem was that Formosa imported only a limited amount. When we ran out of stock, it was impossible to receive more. Formosa argues they have some problems with the distribution, but the truthfulness of this statement is questionable though.
104 From your perspective, what were the main reasons of Skoda’s failure?
The first problem was the high price. For instance, Fabia which targeted young professionals was offered for even higher price which it is possible to buy a family car in Taiwan. Young people prefer more sport-looking cars like Ford Focus, or Honda Civic. The price of Fabia was not competitive. The most of it we were only able to sell during the promotional periods. The same situation was with Superb. The car was priced on the almost same level as VW, which has a long tradition and much better reputation in Taiwan. The second problem was the low investment into branding. Skoda had a relatively low brand recognition compared to Volkswagen and Customers did not know what they have to expect from this brand. The second problem was a low advertising. The investment was very low and not very efficient. The most of customers came to the dealership because they found information on the internet or from friends, not because they saw a commercial. The overall length of an advertising campaign was only for six months, even though the importer had promised a massive long-term support.
Dealer 2. , location: Tainan
According to your opinion, why customers choose Skoda?
Customers liked its handling and safety. The German cars have a very good reputation here for its safety and quality.
The VW technology in Skoda was the main factor why they decided to choose the brand. The brand was also not as known as other European brands, so people also felt they are buying something special.
How did you introduce Skoda to customers?
I told them that Skoda has a more than 100 years long history and is made in Czech Republic. Than I introduced them the Skoda technology, which was the same as VW. If I marketed Skoda, I would focus on the test drive. I am very sure they will be impressed.
Who were the target customers of Skoda?
Target Segment for Fabia was the segment of young people. For the most of young people it was too much expensive and moreover they did not like the design. The most of customers were older than 35 years and they often purchased Fabia as the second car for the family. Marketing of Octavia was focusing on families. The customers were usually around 40 years of age.
What impact had on customers a fact that Skoda is from Czech Republic?
They knew it used to be communist and that it is in Europe. They did not know much in total.
Which models were the most popular?
Octavia was only successful model. Although the car was still perceived as a little bit expensive by consumers, they still considered Octavia with a good value. Customers were especially interested in Octavia Combi and with TDI engine. The preferred color were silver, metallic colors which gives the car a more luxurious look.
How was the customers overall satisfaction of customers with Skoda?
In general the customers were very satisfied with Skoda. They especially appreciated car’s reliability and traveling comfort on longer distances. The most concerns were related to the price. Skoda Octavia is one of the most expensive cars in its class. For such a price consumers in Taiwan expect luxury equipment which is standard for much cheaper Japanese cars in the same class.
105 What service did you provide to the customers?
We do all the service promised in the guarantee.
Were there any promotional offers on Skoda?
We gave some discounts; usually it was about 15 %. The promotional offers were in the beginning centrally directed by Formosa. Later on, after six months period the importer stopped all its support and we had to handle the
promotions on our-selves. During the sales period, we noticed an increased consumer interest in Fabia and Superb models which were otherwise perceived as too expensive.
From your perspective, what were the main reasons of Skoda’s failure?
Firstly it were the selected models, secondly the high price. The price was about 10 % cheaper than VW, but it was still too much. Ideal pricing would be about 15 – 20 % under VW. The consumers also complained about the high price of Skoda also because they found on the internet that Skoda models are much cheaper than VW in other countries. Then they logically asked why they have to pay more? Other reason was in the Formosa Management.
This company has a lot of divisions, and the automotive one represented only a little part of a whole conglomerate.
The people in the management were transferred from other divisions and they had just a minimal experience from the industry. They underestimated the promotion and after first six months, they found the results unsatisfying. They concluded this venture the further investments do not pay off and stopped the operations. This was a thing which decided about the Skoda failure.
Dealer 3. , location: Taoyuan (A)
According to your opinion, why customers choose Skoda?
There were three groups of customers. Firstly the people who saw Skoda in Europe before and when they found out Skoda is also in Taiwan, they got interested. Second group came because of recommendation of foreign friends.
Third group found out about Skoda on the internet. They preferred the car mainly because it is safe and roomy.
How did you introduce Skoda to customers?
The most of show-room visitors already knew all the basic information. I focused on its European roots, because I think this is perceived as an advantage by customers. I informed them about safety, low fuel consumption and a long history of the company. In my opinion, consumer’s trust and product attractiveness was based on the VW technology in Skoda. Hence, I was emphasizing this information the most.
Who were the target customers of Skoda?
We did not sell a lot of Fabia, but the most interested were people around 35-40 years of age. The importer was targeting younger population, but it was not successful among them. The goal of importer’s marketing in the case of Octavia was to achieve the middle generation. Superb was intended for a business segment.
What impact had on customers a fact that Skoda is from Czech Republic?
They knew it used to be communist and it is in Eastern Europe. Because of that some of them had doubts about the quality. In Taiwan the European countries known as automakers are Germany, France and Sweden, so the customers were little confused about the quality.
Which models were the most popular?
106 The consumers liked Octavia mainly because it is roomy, safe and it has an excellent handling. Other two models were not as popular and had to be sold with big discounts. People were also interested in Roomster. It is a pitty this car was not finally imported here.
How was the customers overall satisfaction of customers with Skoda?
Customers had no major complains about the quality. Some of them had some minor technical difficulties, but there were no major problems.
What service did you provide to the customers?
There was given a three years guarantee. We provide all the necessary service and repairs. Even though Formosa shut down its automobile division, our consumers gave us their trust, we cannot simply leave them.
Were there any promotional offers on Skoda?
The price promotions were the discounts about 15-20 % depending on mode. It was running about 5 times during the two years period. In addition there was a big promotion in the end, when Formosa Automobile announced the bankruptcy. During this last discounts period it was mainly Fabia and Superb, which were sold.
From your perspective, what were the main reasons of Skoda’s failure?
The problem was that the importer did not make a proper marketing research. Otherwise they would know that Fabia and Superb are too expensive for Taiwanese market. I have strong doubts about an experience and knowledge of Formosa Automobile division about the car marketing. The customers were interested the most in Octavia Combi, but there were not enough of these cars on stock. Instead the space was taken by Fabia and Superb. When we signed contracts on Skoda dealing, the Formosa representatives assured us that there will be a long massive advertising campaign. Furthermore they stated that they expect to turn numbers green not sooner than in three years. In the reality we did not receive almost any support after first six months. The volume of advertising was minimal. The most of customers were interested in Skoda mostly because of VW parts. The advertising was not pointing at this fact.
Dealer 4. , location: Taoyuan (B)
According to your opinion, why customers choose Skoda?
There were two different groups. First one was made by people who were very interested in automobiles and found in Skoda a better value-money alternative to VW. It was mainly Octavia customers. Second group were people who got attracted by price promotions.
How did you introduce Skoda to customers?
The knowledge of the consumers about Skoda was surprising how much some consumers since they were able to list all the offered features in Skoda’s different equipment lines. They found out a lot of information on the internet before, so I did not have to say much. I explained them Skoda history and technological background.
Who were the target customers of Skoda?
The most of customers were between 40-55 years of age. The models covered the most the middle generation of people. Octavia was the most often a choice of families with children.
107 What impact had on customers a fact that Skoda is from Czech Republic?
They knew it used to be communist before. In Taiwan the communist countries do not have the best reputation. For the most of them, however, this fact did not represent a big problem, since they knew the most of car’s technology is German.
Which models were the most popular?
The popular models were Octavia, partly Fabia. Fabia in red looks young and playful. It was very difficult to find buyers for Superb, since the price was over one million NTD. From the colors the people liked the most silver and silver-blue.
How was the customers overall satisfaction of customers with Skoda?
Customers are coming mainly just because of regular check-ups. There are time-to time some minor problems, especially with the cooling system.
What service did you provide to the customers?
It is difficult to provide all the guaranteed service even after Formosa shut down, because we receive no support.
We are trying to stay in touch with our customers, because we all believe Skoda will be back in Taiwan soon. We are still in close contact with our (Skoda) club. We meet with some of our members on regular basis and they provide us with important pieces of information about they needs.
Were there any promotional offers on Skoda?
There were about 3 or 4 price promotions. The given discount was around 20%. To some models we also offered some special free accessories like. We found out that satellite navigations, hands free sets and other electronic devices represent a value for the consumer, therefore we were offering them as a part of the promotion.
From your perspective, what were the main reasons of Skoda’s failure?
The main problem lays in the promotion. After that six month period, Formosa decided not to invest anymore in mass media communication and stopped its efforts. After that, there were only local advertising efforts conducted by dealerships alone. They were people with very limited experience with the automobile business and this fact also had a negative influence over their decisions. The selected models and their price had also its impact. The pricing of Skoda was on the similar level as VW. The overall quality, however, was not perceived as good as the quality of German cars. Consumers were therefore willing to pay only a lower price. Formosa promised a long-lasting support, but they did not deliver it. Therefore now us, dealerships, are connecting our powers in a law-suit against Formosa for a fraud.
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