Audi Advertising Program

8/7/2019 Audi Advertising Program

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The Audi emblem of the four rings denotes one of Germany's oldest automobile manufacturers. It

symbolizes the merger in 1932 of four previously independent motor vehicle manufacturers: Audi,

DKW, Horch and Wanderer. These companies are the foundation stones on which the present-day

AUDI AG is built.

HorchAt the end of the 19th century, there were already a number of car manufacturers in

Germany. One of them was August Horch & Cie., founded on November 14, 1899 in

Cologne. August Horch was one of the pioneer figures of automotive engineering. Before

setting up business on his own, he worked for Carl Benz in Mannheim for three years as

Head of Automobile Production.

In 1904, August Horch relocated his company to Zwickau and transformed it into a share-

issuing company. However, in 1909 August Horch withdrew from the company he had

founded, and set up a new enterprise under the name of "Audi".

Audi

The company established by August Horch in Zwickau on July 16, 1909 could not again take

its founder's name for reasons of fair trade. Horch found a new name for the company by

translating his name, which means "hark!", "listen!", into Latin. So it was that the second

company to have been set up by August Horch commenced operations under the name

Audi Automobilwerke GmbH, Zwickau, on April 25, 1910.

Wanderer

In 1885, the two mechanics Johann Baptist Winklhofer and Richard Adolf Jaenicke opened a

repair business for bicycles in Chemnitz. Shortly afterwards they began to make bicycles of

their own, since demand at that time was very high. These were sold under the brand name

Wanderer, and in 1896 the company itself began to trade as Wanderer Fahrradwerke AG.

Company History

Company History


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produced under the brand name "Audi". A new era had begun in another sense, too: the

Volkswagen Group acquired the Ingolstadt-based company in 1965.

NSU

NSU was founded in 1873 in Riedlingen, on the Danube, by the two Swabian mechanics

Christian Schmidt and Heinrich Stoll. Seven years later they moved the company to

Neckarsulm. For its first twenty years, the company manufactured knitting machines.

Neckarsulmer Strickmaschinenfabrik

diversified into bicycles in 1886. From then on, the bicycle was to have a decisive influence

on the company's fortunes. Motorcycle production commenced at NSU in 1901, and five

years later the first motor car was built there. Automobile production activities were halted

again in 1929, to allow the company to concentrate on building two-wheelers. It was almost

thirty years later, in 1958, that production of cars recommenced in Neckarsulm.

On March 10, 1969, Auto Union GmbH of Ingolstadt merged with NSU Motorenwerke AG, of

Neckarsulm. The new company bearing the name Audi NSU Auto Union AG, with its head

offices in Neckarsulm, was created retrospectively as of January 1.

AUDI AG

The last NSU left the production line in March 1977, and from then on the company

manufactured exclusively Audi cars. About this time, the company's bosses began to

consider streamlining the company's rather cumbersome name of Audi NSU Auto Union AG.

With the objective of giving the company and its products the same name, in 1985 Audi NSU

Auto Union AG was renamed simply AUDI AG. To coincide with the change of name, the

company's registered headquarters

were transferred from Neckarsulm to Ingolstadt.Together with the two traditional

companies Auto Union GmbH and NSU GmbH, Audi Tradition nurtures and presents the

deep and diverse history of Audi. The museum mobile at the Ingolstadt plant is open every

day of theweek from 10 a.m. to 8 p.m.; entrance is free.

AUDI AG develops and produces luxury cars and sold worldwide a total of 1,003,000 cars in

2008 and thus achieved its thirteenth consecutive record year. Audi produces vehicles in

Ingolstadt and Neckarsulm (Germany), Gyr (Hungary), Changchun (China) and Brussels(Belgium). Aurangabad in India saw the start of local production of the Audi A6 at the end of

2007 and of the Audi A4 in early October 2008. The company is active in more than 100

markets worldwide. AUDI AGs wholly owned subsidiaries include Automobili Lamborghini

Holding S.p.A. in SantAgata Bolognese (Italy) and Quattro

GmbH in Neckarsulm. Audi currently employs around 57,000 people worldwide, including

45,000 in Germany. The brand with the four rings invests more than 2 billion each year in

order to sustain the companys technological lead embodied in its Vorsprung durch

Technik slogan. Audi

plans to significantly increase the number of models in its portfolio by 2015 to 40


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The Indian automotive market

As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars

were sold in India in 2009 (an increase of 26%), making the country the second fastest

growing automobile market in the world. According to the Society of Indian Automobile

Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015

and more than 9 million by 2020.By 2050, the country is expected to top the world in carvolumes with approximately 611 million vehicles on the nation's roads.

Culture and Consumer Behaviour of the Indian Car market (Luxury)

The culture of vehicles in India is ever growing over the years this automotive market has

exploded with more and more people able to afford transportation on four wheels as

income levels have increased, Loans are easier to obtain this has given rise to competition

so fierce that when a company is out of the competition it is not even news.

Recent reports indicate that within 20-25 years the Indian car market can surpass that of theUnited states of America, this shows the rate at which the market has been expanding.

The Common perception is that in India people only by the Small cars, but that is a

misconception India has a rapidly growing Luxury car market with the Introduction of

Brands such as Jaguar, Land Rover , Porsche and soon to be launched Ferrari India has made

its presence felt around the world and has caught the attention of the automobile

companies

The Indian Market
http://en.wikipedia.org/wiki/Indian_Road_Networkhttp://en.wikipedia.org/wiki/Indian_Road_Network


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Some of the high end Companies that are present in India are

Mercedes Benz

BMW

Porsche

Bentley

Rolls-Royce

Ferrari

Audi

Over the years the Indian mind set of Save first spend later has been changing people arenow more willing to spend which is a very good thing especially in the Automotive sector.

The Indian Upper Middle and upper class have been fast growing and the need for luxury

cars to fit their self-esteem , ego and standard are the call for the day.The need to show of

their status in Society and get noticed has been increasing in the India

But some of the traditions still stick with luxury cars Cheap service , Mileage and Value for

money cars are still expected to be satisfied even in the luxury end of the market

BMW Mercedes and Audi have each sold more than 5000 cars in 2010 and are expecting

more sales this year

The Positive and encouraging culture for automobiles in India is a a good sign for these

companies in the future

Target market

Audi currently has 24% market share in the Indian markets and plans to push it upto 30%

which would bean around 25-30,000 Vehicles

Business class: Audi being the luxury car manufacturer has set its target market on the

business category of people, mostly people of the upper management as this is a high end

luxury car. Some of the Top officials in India have been using an Audi for quite a while and

Audi has been making a push harder into this market with offers and variants of its vehicles.


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The Target markets are

Age: 30-60

Income 50-80Lakh

Position: Home owner and highly placed at work, Married

Bollywood : Audi has been pushing its vehicles excessively to the Bollywood stars and is

essential in its success in India. Some of the Top Bollywood actors and actresses have

endorsed the Audi brand stars like Amitabh bachan , Aamir khan , Priyanka Chopra are some

of the many active users of Audi Vehicles. This category has been an important factor is

pushing up sales for the company over the years

Teenagers: Another major category of people are the teenagers who prefer buying the Audi

for its aggressive looks,power,performance and image .Usually from upper class familiesthe Teenage market has taken a very strong liking towards Audi Products which has created

a bigger market for them and is selling high

Women: Audi has also experienced high sales through women buyers as well and has

pushed the car in this category and has increased the spending on this over the past few

years

Age: 25-60

Income: 50-80 lakh

Position : House wife , Business women , Married or Single

Upper middle class : Audi has also taken keen interest on the Upper middle class and has

proven to be acceptors of the Lower end Audi Vehicles , this market has been a rapidly

growing market which his now ready to spend on acquiring luxury goods.


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Although the competition for the Audi vehicle has been ever increasing with the

introduction of companies like Porsche and Ferrari into the Indian market we are only going

to consider the two biggest competitors in the market assuming that the market is a three

horse race between these companies who are the largest market share holders. Audi

currently holds the third spot according to a market survey with 24% of the market share

The Product Portfolio of Audi In India contain

The Audi A8

The Audi A4

The Audi A6

The Audi Q5

The Audi Q7

The Audi R8

The Audi TT

Competition


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BMW India increased its market share in the luxury segment of the Indian automotive

market to over 40% in 2009 (from 9% at the end of 2006). With 3,619 cars delivered to

customers in the calendar year 2009, BMW India has achieved the "highest sales by a

manufacturer in the luxury car segment in a year" till date.

The company's top selling model in 2009 has been the BMW 3 Series at 1,155 units, while

the second best seller has been the 5 Series at 1,590 units. Despite the initial challenges, no

other country has shown the kind of growth that India has shown for the German carmaker.

Commenting on the occasion, Peter Kronschnabl, president, BMW India said, "We made

great strides in implementing our strategy, and this gave us a significant competitive edgethat provided us with a clearly formulated vision. Our goals were clear, and we had to be

consistent to realize them. Our business activities are, and will remain, focused on the long

term. The main trends that are relevant to our business - such as the demand for mobility

and the desire for differentiation - will remain unchanged."

2009 was not an easy year for the automotive industry - and that applies equally to BMW

India. It stood its ground in a fiercely competitive environment with new ideas and the

strength to promote new products. BMW India was prepared to meet the challenges head

on to ensure the company's success. These qualities enabled BMW India to effectively

weather the stormy conditions, continue to invest in its future, anticipate trends and be

prepared for the future. Despite all challenges, BMW India delivered strong operating

performance in 2009.

With a carefully planned and successfully executed market entry strategy, and consistent

sales performance, BMW India achieved market leadership in the luxury car segment in

India. Kronschnabl further added, "Now more than ever, we see that the number one

position in the market is not everything. But, the future belongs to India and if you want to

benefit from the dynamics of the Indian market later, you need to act today. This is what we

did. Our commitment to India was among the strategic decisions that had to be taken right

away."

BMW


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BMW group took a bold step in its Asia strategy in 2007 by establishing the BMW India

headquarters in Gurgaon (National Capital Region), a Central Parts Warehouse in Mumbai,

and the BMW Plant Chennai in Tamil Nadu. Presently, the BMW Plant Chennai produces the

BMW 3 Series and BMW 5 Series sedans in petrol and diesel variants and has a capacity to

produce 3,000 units per year on a single shift basis. In medium term, BMW India has

employed around 200 people; up to 600 additional jobs have been created in the

Mercedes-Benz posted record sales in India in the first half of 2010 and high growth rates

enabled it to gain substantial market share. Sales rose by 69 percent in the first six months

of the year and a total of 2,500 vehicles were delivered to customers. Mercedes-Benz sawsales climb by 83 percent in June alone.

Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes-Benz Cars:

Sales substantially exceeded our expectations in the first half of 2010, supported in

particular by the success of the new E-Class. We are currently the strongest premium brand

in India and we want to build on our success in the second half of the year and expand our

market position. As was the case in the first six months, we are also aiming to achieve

record sales for the full year 2010. Mercedes-Benz sold a total of 3,200 units in India in

2009.

India is currently the third-largest automotive growth market in the world. We expectIndias premium segment to grow more rapidly than the market as a whole in the coming

years, says Schmidt. Mercedes-Benz aims to have a corresponding share of this growth.

The basis for this growth is a large number of attractive products. We offer customers a

broader range of products than any other premium brand. Currently we have supplemented

this lineup with another fascinating vehicle: The Mercedes-Benz SLS AMG super sports car is

available in India now. In India, Mercedes-Benz offers a total of 30 models in eleven

product segments.

The new E-Class was introduced to the Indian market in October 2009. Like the S-Class

sedan, the E-Class sedan took the lead in its segment in the first half of 2010. Sales of the E-Class sedan jumped by 109 percent in the first six months of the year to 1,000 vehicles. Sales

Mercedes


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of the S-Class sedan grew by 25 percent during this period. The M-Class was also the top-

selling car in its segment during the first half of the year, sales of the SUV increased by 30

percent. The C-Class sedan posted strong growth as well, with sales increasing by 53 percent

and was the market leader in its segment in June.

Advertising Concept, Media Strategy and Medium vehicle

The Ecosystem

All advertisements through every medium will carry large similarities to other mediums

throughout creating a similar ecosystem for eg. If the Video ad has strong elements of Black

and White colour all other mediums will also have strong mediums of black and white

colouring

The Lust Campaign

Message Objective

The Simple objective of the marketing strategy is too attract the Younger audience in the ad

and project the Audi Brand as a grand and luxurious affair that people will Lust to have, the

Audi Car has been projected as a Women of desire, one that every man wants

The Marketing Tools

The Marketing will take place across all mediums of promotion

The Advertisement


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Television

The Ad will run on several popular news and entertainment channels in India..The

advertisement will be played during prime viewing hours. The Commercial will be played for

a duration of one minute initially and gradually come down to a 30 second advertisement (

the same ad will be edited to fit the criteria)

Since the ad has been shot with a balancing act in between Youth and the Elders the

channels selected will be based on these criterias

All channels used will be national channels no local channels will be used keeping in mind

the reputation Audi has

News Papers and Magazines

The newspapers selected for the Print Ad will be only the top newspapers only on theNational level . No local newspapers or magazines will be used keeping in mind the Brand

perception and value of the newspaper and magazine with relation to Audi

The newspaper ad will circulate every weekend and on Mondays initially large sized

advertisements will be used that will eventually be brought down

The Internet

The internet is where Audi will do its most marketing we live in the social age so being

connected is the recent thing using digital advertising signs and Social networking sites

along with Video centric sites has become the norm for most of the companies . Audi will

also use these mediums extensively for the information and advertising part as it is a

medium of endless possibilities and comes at an economical price the internet will be used

at the same intensity through

Billboards and Signs

This form of advertising will be put up to make aware of a new product launch or a major

offer being announced . The advertisement will be of the same concept as our Advertising

Ecosystem to maintain similarity


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Project Written by

Madhuri Chauhan

Sasank Reddy

Abdul Ahad

D.Shiva Kumar

Audi Advertising Program

Documents