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Brand hierarchy, also known as brand architecture, isn’t always easy or an obvious strategic factor within an organisation for a lot of business owners, senior managers and entrepreneurs. But, the company became so popular because most of its models are similar to Volkswagen units’ features and prices but actually have better space compared to the latter brand. The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies.

Scania Brand Strength Each Brand Strength factor represents a potential lever of growth. Škoda’s initial role is to be Volkswagen’s entry brand. The acquisition adds a budget brand to Volkswagen's lineup. vw.com. So in this example, we can take Volkswagen as a company and we will try to understand the Product hierarchy of Volkswagen. Volkswagen is a brand of the Volkswagen Group, one of the world’s leading automobile manufacturers and the largest carmaker in Europe. 1) Product need – Product need is the basic reason because of which the product exists. In 1992, Škoda changed into a private company.

VW Group is reviewing its 12-brand portfolio as it seeks to slim down, but marques such as Porsche will not be sold off, CEO Herbert Diess told analysts. To understand the product hierarchy, we will have to look not at a single product but the business as a whole. Here's the breakdown. Volkswagen acquired an initial 31% stake in the company in 1991 and would become Škoda's sole owner in May 2000. Then, in 2000, Volkswagen finally acquired Škoda.
A Brand Strength evaluation uncovers the biggest brand opportunities and risks within your business.