This document discusses Audi's focus on innovation through its technology-driven mission statement. It analyzes Audi's sales growth in key markets from 2000-2013 and identifies potential competitors like Tesla. An action plan is proposed to build customer loyalty through brand communities, cultivating relationships, and empowering customers. The importance of customer loyalty for car manufacturers is discussed. Methods are suggested for Audi to estimate lifetime customer value and implement measures to develop long-term loyalty relationships.

1. THE CAR THAT EVERYONE WANTS

2. IT HAS DONE SOMETHING MORE THAN INNOVATION
MAKING ITSELF GREAT BY STICKING TO
ITS MISSION STATEMENT “PROGRESS
THROUGH TECHNOLOGY”

3. FROM QUATTRO FOUR WHEEL DRIVE TO
FIRST HYBRID VEHICLES
PUTTING ITS INNOVATION INTO PRATICE

5. A whole new concept of virtual experience
in London, Beijing and Berlin.

6. Sales
2000 2013 2013(CHINA)
AUDI 653,000 1.58 million 492,000
BMW 822,000 1.66 million 360,000
MERCEDES-BENZ 1.053 million 1.46 million 228,000

7. Grey areas
• Average selling price of an Audi is still lower than an
average BMW
• New entrants with environmentally-sustainable cars
like Tesla – POTENTIAL COMPETITORS!!
•
• Let’s devise an action plan

8. ACTION PLAN
• BUILDING LOYALTY
• BRAND COMMUNITIES
• CULTIVATING CUSTOMER RELATIONSHIPS
Customer Empowerment
Customer Recommendations
Customer Complaints

9. Loyalty
Incentives
Make them
Special
Give them more
than expected
Customer satisfaction

10. BRAND COMMUNITIES share a certain ‘similar
consciousness, traditions and stories and a
moral responsibility.

11. Why?
• They can customize market offerings, services, programs , messages
and media.
• Thus, its essential to have many ‘CUSTOMER TOUCH POINTS’

12. PERSONALISED MARKETING
• Customers prefer to be acknowledged individually.
• A personal touch can create miracles in establish long
ties with customers.

14. How important is it invest in customer loyalty for
cars , a product most people buy only every couple
of years?
• To gain customer loyalty we need to gain satisfaction, service , quality
and a good feedback from customer.
• An achieved customer loyalty brings us:
• Repeat Business
• Greater Volume
• Cross-selling Opportunities
• Protects You From the Competition
• Word-of-Mouth Marketing
• Benefit of the Doubt

15. Estimation of lifetime value of an Audi
customer.
• The lifetime value (LTV) of your customer is loosely defined as the net
money a customer contributes over their life as a customer.
• Lest roughly assume that Audi profit per vehicle is $6000. On average
a customer purchase car are every 5 years and in life Time purchases
10 cars so profit from on customer will be$60,000so at 15% of
discount rate the NPV will be CLV for an Audi.

16. What measures should Audi take to build long
term loyalty relationships?
• By taking following steps Audi can build long term loyalty relationships.
• 1)Audi have to build best communication mean with customer. Try to
follow each customer needs and expectation and make relevant promotion
and communication with customer
• 2) Design a comprehensive, point-by-point marketing and communications
plan for each of the customer profiles Audi have made.
• 3) By designing a communications and marketing strategy to keep
customers coming back again and again.
• 4)In case existing customer left try to work and know why ?

17. SUMMARY
• A BRIEF STORY OF HOW AUDI CAME INTO BEING
• UNDERLYING ISSUES
• HOW TO TACKLE THE PROBLEMS
• importance of investing in customer loyalty.
• Estimation of lifetime value of an Audi customer.
• measures should Audi take to build long term loyalty relationships.

19. DISCLAIMER
CREATED BY P .Srinath Reddy DURING A MARKETING MANAGEMENT
INTERNSHIP UNDER PROFESSOR SAMEER MATHUR , IIM-LUCKNOW