This document provides information about Audi, including its founding, headquarters, production facilities, ownership, vision, missions related to digitalization, sustainability, and urbanization. It discusses Audi's positioning in the market, strengths as a prestigious brand with innovative technology, and weaknesses in some markets. The document outlines Audi's marketing strategies in market segmentation and targeting high-class customers. It also describes Audi's sales, advertising, and customer loyalty strategies, including promotions, incentives, and responding to customer feedback. Media reports praise the 2017 Q7 SUV but note the A6 Allroad looks like an estate vehicle. The importance of customer loyalty for car brands is discussed, as well as measures to build long-term loyalty relationships.

1. Audi
Vorsprung durch Technik

2. 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.

3. Vision

4. 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

5. 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

6. 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

7. External Assessment

8. Positioning Map

9. 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.

10. Internal Assessment

11. 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.

12. Marketing Strategy
• Audi has successfully implemented the strategy of market
segmentation according into
1. Geographic
2. Demographic
3. Psychographic
4. 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.

13. 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 persons
4. The Audi Mileage Marathon and Audi e-tron.
5. Promotions through video games

14. 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

15. Advertising Strategies

16. 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.

17. 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 Voelk
The Guardian
Audi’s super competent A6 Allroad may look like an estate,
but it has a dirty secret. It’s actually an SUV in disguise
- Martin

18. 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.

19. 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.

20. 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.

21. THANKS

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