Abstract
To begin with, Skoda is in an industry gathering more than 50 players. The car industry is a fragmented market, which means that it is a daily work to stay competitive. With 2.4% of market share in 2011, Skoda is not a "top of mind" car brand in UK. This weakness means that the car manufacturer need to set up a positioning that will enable to differentiate from the top ten competitors.
Skoda identified a problem concerning the perception of the brand. Indeed, the brand is perceived as being "out-dated" and thus, it is associated with a low range car (bad quality, bad design, and bad material). The image reflected by the car is associated, often to its owner, thus, those holders of Skoda's cars were disappointed by their purchase.
Therefore, it is evident that the perception of the brand by consumers is a key weakness of Skoda. To overcome this weakness, Skoda has progressively moved upmarket, with more prestigious cars as the Skoda Superb. But to distinguish from the renowned brands, Skoda is building a strong image in the consumer's mind.
