Audi

Audi

Vorsprung durch Technik

INTRODUCTION• The company was founded by August Horch on 25 April, 1910.• The company’s name is based on the Latin translation of the

surname of the owner of the company ‘Horch’ meaning ‘listen’ in German, becomes ‘audi’ in Latin.

• The Head-Quarter of the company is situated in Ingolstadt, Germany.

• It currently has 11 production facilities across 9 countries.• Volkswagen AG currently owns Audi by having 99.55% stakes

of it since 1966• It has been spread across 110 countries and came to the

Indian market in 2004.

Vision

Mission

• Digitalization• Completely integrated digitalized processes• Superior user experience• Substantial contribution to profit by digital and mobility services• Upscaling myAudi platform• Audi connect as standard equipment• Volume mix 1/3 electric cars

Mission

• Sustainability• Fuel cell vehicle in series• Upscaling Audi g-tron.• Upscaling Audi e-fuels/e-power• Best system range for alternative drives• Circular economy in value chain• Social responsibility and integrity

Mission

• Urbanization• Audi Urban Solutions pilots worldwide• Intermodal mobility solutions for implementation of urban targets• Open and independent mobility platform• Leading position in piloted and autonomous driving• Upscaling mobility services

External Assessment

Positioning Map

Opportunities • New emerging markets of

China and India.• Growth in new car sales in

the Asian market.• Positive impact of FDI.• Extend loan tenure to 84

months i.e. 7 years.

Threat • Giant competitors in BMW,

Mercedes.• Impact of recession.• Economic slowdown in

many countries.• Higher subventions offered

by competitors.

Internal Assessment

Strength• The Brand value the

company owns.• Technology, Creativity,

Innovation.• Large panel of products.• Global presence.

Weakness• Weak positionus market.• High maintenance and

handling costs.• Concentration on high class

market.

Marketing Strategy• Audi has successfully implemented the strategy of market

segmentation according into1. Geographic2. Demographic3. Psychographic4. Behavioral• It has divided its consumers into rural, urban or age, sex.• It has always aimed for the high class customer and thus it

poses a threat for the company.

Ensuring Sales

• Audi has maintained enormous sales after being acquired by Volkswagen Aktiengesellschaft (AG).

• Audi ensures its sales by promoting its cars and its brands through –

1. Promotion in Rallies and Races.2. Audi is the major car which is used in action movies.3. Sponsoring and endorsing huge clubs or persons4. The Audi Mileage Marathon and Audi e-tron.5. Promotions through video games

Sales Strategies

• Pull Strategy -• Advertisements in paper, TV, Business Magazines.• Car’s will be displayed in AUTO Expo before they are launched

into the market.• Audi conducts OFF ROAD events to display car’s performance.• Push Strategy -• Customers are given special merchandises like Watches, Key

Chains.• The salesman are given 1% incentives if they are able to sell

above their targets

Advertising Strategies

Advertising Strategies

• Audi has successfully implemented the strategy of involving customers and has brought with it many customer oriented changes in its cars.

• It has worked upon the feedback from the customers.

• It has tried to create long-term loyalty relationships and has been quite successful at it.

• It has successfully build a good brand and thus has been continuously building loyalty and thus increasing the brand communities.

Reports in Media

New York Times (07/07/2016)There appears to be less grace in this second-generation Q7’s crisp and clean design; it looks more like the box the first one came in. Still, the 2017 Q7 is a formidable competitor. It helps with the chores, pampers the family and entertains the driver. - Tom VoelkThe GuardianAudi’s super competent A6 Allroad may look like an estate, but it has a dirty secret. It’s actually an SUV in disguise - Martin

In your opinion, how important is it to invest in customer loyalty for cars, a product most people buy only every

couple of years ?• In my opinion it is most important to be involved in

customer loyalty be it in any kind of business.• It is so, since the loyal customer will not only turn

again and again to buy the product but they will be the one who would provide good testimony to the company and will indulge in self-promotion of the firm.

Try to estimate the lifetime value of an Audi customer ?

• It is the estimate of the net present value of stream of benefits from a customer.

• It tells us how much a consumer can benefit a particular brand through his/her loyalty.

• The lifetime value of an Audi customer should be very high then only the company may be able to reap great benefits out of the customer.

What measures should audi take to build long-term loyalty relationships ?

1. It should know who its customers are.2. It should measure its customers’ behavior with

the right tools.3. It should design a communication and marketing

strategy to keep customers coming back again and again

4. It should try them to indulge in self promotion of brand.

THANKS

Disclaimer

• Created by Utkarsh Saxena, IIT Roorkee, during a Marketing internship under Prof. Sameer Mathur, IIM Lucknow.