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Audi
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- 2. Introduction • The companywas 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 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 is spread across 110 countries and came to the Indian market in 2004
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- 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
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- 9. Opportunities • New emergingmarkets 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
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- 11. Strength • The Brandvalue 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 • Audihas successfully implemented the strategy of market segmentation according to 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 this poses a threat for the company
- 13. Ensuring Sales • Audihas 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 PullStrategy - • 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
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- 16. Advertising Strategies • Audihas 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 NewYork Times 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 estimatethe 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 shouldAudi 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.
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- 23. Disclaimer • Created byUtkarsh Saxena, IIT Roorkee, during a Marketing internship under Prof. Sameer Mathur, IIM Lucknow.
Editor's Notes
- #2 Hello everyone! Today I am going to give a brief presentation on one of the biggest car manufacturer Audi and relate it to the Chapter 3 of Keller and Kotler which is creating long term loyalty relationships.
- #3 Lets begin by introducing Audi to you, it was formed by August Horch and the name Audi comes from the Latin translation of the surname Horch. The Head Quarter of the company is at Germany and the company was taken over by Volkswagen AG. Currently Audi is headed by its CEO Rupert Stadler.
- #4 Going forward in the discussion we see the vision of Audi which has been rested on 3 major pillars which are Digitalization, Sustainability, Urbanization and they have always had their motto ‘Vorsprung durch Technik’ which means advancement through technology.
- #5 Audi has a preplanned mission for the year 2025 and has based it upon its vision which stands on the previously discussed 3 pillars. Here we see their mission in the sector of digitalization wherein they seek to give its customer the best of Audi’s experience by various digital platforms such as myAudi, Audi connect etc.
- #6 Going forward to the 2nd pillar in the mission which is Sustainability and Audi seeks huge sustainability in the kind of products it manufactures. It is thus upscaling its engines and models and also making its cars more and more fuel efficient.
- #7 The 3rd and final pillar in their mission is Urbanization and they are approaching it through creating open and independent mobility platforms. Audi is focusing on gaining leading positions in piloted and autonomous driving and is continuously Upscaling mobility services.
- #8 Going forward in the discussion, now we move to the External Assessment of Audi.
- #9 During the External Assessment we will mainly link Audi’s position in the market and here is a positioning map which shows how low the cost of an Audi car is as compared to its competitors so here Audi has a chance to increase its selling price and also not loose its share of profit.
- #10 Coming to the SWOT analysis which includes Opportunities and Threats during the external assessment. Audi has many Opportunities to expand itself globally which mainly include the growth of the Asian market and good government strategies in India also provide it a big chance to expand globally wherein the major Threats associated with the brand are in its own competitors who are also continuously expanding their market globally, also the brand has threats of any coming recession and economic slowdown.
- #11 After all this now we have the internal assessment of the brand wherein we will see the internal organizational structure of Audi and we will have a look on the remaining aspects of the SWOT analysis.
- #12 Coming to Strength the brand Audi has developed during its course to glory is the fact that it has a highly reputed brand and has successfully accomplished its motto of Advancement through technology. Audi also has the benefit of the large panel of products it has developed and has thus gained a global presence. The major weakness associated with the brand are that the customer face high maintenance and handling costs.
- #13 Going forward in the discussion we look on the marketing strategies for Audi, it has successfully implemented the strategy of market segmentation. The biggest challenge Audi has faced is that of repositioning itself from a Sports manufacturer to an all-rounder and this has involved their best of marketing strategies.
- #14 Audi has successfully maintained enormous sales after being acquired by Volkswagen Aktiengesellschaft (AG). It has done so by promoting its cars and its brands through Promotion in Rallies and Races etc.
- #15 The sales at Audi are not only high just because of the Brand value it has but because of the sales strategies it has adapted. The pull and push strategy of Audi has been implemented at the best and one can see the results in the boom of their sales.
- #16 The most important strategy for any company to succeed in the market is how effective are their advertisements and how efficiently can they attract the customers to them. This advertisement of Fox, a car by Audi connects well to the customer and shows them the benefits of buying the car, like the cars size is said to be perfect for women to drive or the quality of car is portrayed in the ads by displaying the responses of big persons.
- #17 Audi has successfully implemented the strategy of involving customers and has brought with it many customer oriented changes in its cars and has worked upon the feedback from the customers to build long term loyalty relationships.
- #18 Here are some articles for Audi by some of the biggest and largely circulated media houses namely New York Times and The Guardian.
- #19 Coming back to the textbook the 3 basic Questions that were asked, so here we are with the 1st question………….
- #20 Now we will have a look on the 2nd question that is……….
- #21 So finally here is the 3rd and last question from the text book.
- #22 So to conclude the presentation I would like to go back to the SWOT analysis of Audi and their unique and efficient Advertising and Sales Strategies by the help of which Audi has reached such heights.
- #23 With this I would like to end up my presentation and Thank you for being patient listener, I hope you liked the presentation.
- #24 This is to inform you that this presentation was created by me (Utkarsh Saxena from IIT Roorkee), during a Marketing internship under Prof. Sameer Mathur, IIM Lucknow.