Case Study: Volvo is more than buses in India…

Volvo’s success in India is built on its focus on safety, premium positioning, and strategic local adaptations in products and promotions.

Every time we have to travel in the mountains, Volvo is the inevitable choice for the bus. Why? Because it has been associated with safety. But not all motor companies offer safety? Then why is only Volvo known specifically for the same? The answer lies in its brand positioning and marketing efforts which keep emphasizing this aspect.

There are some memorable campaigns run by the brand that immediately stand out. Let’s look at how it has stayed relevant over 97 years.

Founding and Expansion in India

Established in Sweden, the company’s 2 co-founders included Assar Gabrielsson and Gustaf Larsson. They launched the first Volvo car in 1927 and rapidly expanded between 1940-45, focusing on acquiring construction manufacturers and engineering companies to support growth.

Here is a short timeline:

• In 1999, Volvo Cars were sold to the Ford Motor Company, and they focused on commercial automotive industry.

• In India, they started operations in 1998 with Volvo Trucks.

• In 2001, it introduced high-end buses and in 2007, it introduced two flagship car lines, S80 Sedan and XC90 SUV.

Though today there are other options like Tatas and Mahindra and Mahindra, Volvo is preferred by many Indians for long-distance buses. It studied the Indian conditions and customized the offerings accordingly.

Though the strategy was to offer city buses, they pivoted to inter-city luxury coaches. Throughout, it sold the concept of luxury bus travel, focusing on durability and passenger comfort.

STP Analysis

Segmentation

Demographically, Volvo targets a middle-aged audience that is often family-oriented and seeks a balance of luxury and security in their vehicle choices. Psychographically, Volvo appeals to individuals who value substance over style and are socially responsible and eco-conscious, and tech-savvy.

In India, this audience includes urban professionals, business owners, and families who value the brand’s reputation for safety and quality.

Targeting

Volvo’s targeting strategy emphasizes its core values of safety, sustainability, and understated luxury. Globally, Volvo’s marketing often revolves around real-life safety demonstrations, setting it apart from competitors who lean more heavily on luxury or performance.

In India, Volvo targets urban and affluent customers looking for a premium vehicle that also offers peace of mind.

Positioning

By consistently emphasizing safety as a core brand value, Volvo has maintained a unique space in the luxury automotive market. On the brand positioning aspect, Volvo Cars are both practical and sporty, directly competing with Volkswagen and Honda.

So, though they are high-quality, it also includes the practical aspects like fuel efficiency, durability, and adaptability. Since Volvo buses were among the first luxury buses in India, they quickly gained popularity as the standard for comfort and quality in long-distance travel.

Marketing Mix

Product:

Volvo’s product lineup in India includes buses, trucks, and construction equipment. Volvo’s buses, for example, include multi-axle sleeper and seater models, often favored by private travel companies and state transportation authorities.

The trucks and construction equipment, meanwhile, are engineered for heavy-duty use, primarily targeting industries like mining, construction, and logistics. Volvo Cars are sold on the family + luxury value, where people can have a safe yet premium experience.

Price:

Volvo positions itself as a premium brand, so its pricing reflects this strategy. Volvo buses are among the most expensive in India’s commercial vehicle segment, targeting higher-end customers willing to pay for superior quality and safety.

This premium pricing also extends to their trucks, with Volvo catering to businesses that need high-performance vehicles and are willing to invest in long-term durability. However, to make their offerings more accessible in a price-sensitive market like India, Volvo has adjusted its pricing to some extent while maintaining its premium tag.

They also focus on the total cost of ownership, promoting the idea that their vehicles’ long-term reliability and lower maintenance costs provide better value.

Place:

Place presence in India is strategically focused on regions with high demand for quality long-distance transportation, construction, and industrial support. The brand operates through a network of authorized dealers and service centers across the country, with a particularly strong presence in urban centers and industrial zones.

Currently, it has 3 manufacturing plants in India since 2015, located near Bangalore. These manufacture Volvo’s trucks, buses, and construction equipment. It also has 1,50,000+ trained trucks and bus drivers in India.

Volvo also partners with state transportation departments, as seen in collaborations with KSRTC (Karnataka State Road Transport Corporation) and APSRTC (Andhra Pradesh State Road Transport Corporation), providing luxury buses for intercity travel.

Promotion:

Volvo’s ad films are probably the only ones to build the sort of trust they did. For instance, here is the President of Volvo Trucks, Claes Nilsson, performing this stunt, showing the stability of Volvo:

Volvo also positioned itself for…cheaters:

This ad managed to scare me but it still manages to convey the message:

In India, Volvo has also partnered with universities like Manipal University, SRM University, and KIIT University to enhance industry readiness through engineering education. The collaboration will provide mentorship programs for postgraduate students in mechanical, electrical, electronics, and computer science.

Volvo also makes a unique claim:

This shows that though it is a foreign brand, it is highly localized, aware of and integrating socio-political initiatives like ‘Make in India’. It also shows how they are helping to boost the Indian economy through exports.

Volvo India also launched a “Vaccination on Wheels” initiative during the pandemic where it used repurposed Volvo buses as mobile clinics. These were equipped to administer 700-800 doses every day in rural and semi-urban areas.

In a Nutshell

By blending premium positioning with community-focused initiatives and partnerships, Volvo has built trust and preference among Indian consumers. As it continues to innovate and localize its offerings, Volvo’s approach sets a benchmark for how international brands can thrive in diverse markets.

Key Takeaways from Volvo’s Marketing

• Highlight unique brand values that align with audience priorities to strengthen brand identity.

• Use selective product adaptations to meet local market needs while maintaining global standards.

• Collaborate with educational institutions and local entities to reinforce brand presence and expertise.

• Position the brand with consistent messaging around a unique selling point, like safety, to differentiate it in a crowded market.

• Integrate CSR initiatives (like vaccination buses) that align with brand values to build goodwill and community support.