This document discusses Audi's history and efforts to build customer loyalty. It provides background on Audi's founding in 1899 and early success in auto racing. It emphasizes Audi's focus on technology and innovation in vehicles like the Quattro and hybrid models. The document recommends strategies for Audi to build loyalty like brand communities, cultivating customer relationships, and having many customer touchpoints. It discusses estimating the lifetime value of a customer and measures Audi can take like effective communication and customizing offerings to individual customer needs and expectations. The goal is to design marketing strategies to keep customers returning through repeat business and word-of-mouth promotion.

1. Greatness
starts , when
you don’t
stop.

2. ESTABLISHMENT
• In 1899 August Horch started August Horch & Cie.
• Horch had previously worked with Carl Benz.
• In 1909 Horch left the company and immediately set
up a second car venture “AUDI” .
• Audi was internationally known due to the Austrian
Alpine Runs between 1911 & 1914.

5. IT HAS DONE SOMETHING MORETHAN INNOVATION
MAKING ITSELF GREAT BY STICKING
TO IT’S MISSION STATEMENT
“ PROGRESSTHROUGHTECHNOLOGY”

6. FROM
QUATTRO FOUR
WHEEL DRIVE
FIRST HYBRID
VEHICLES

7. A WHOLE NEW CONCEPT OFVIRTUAL
EXPERIENCE IN
LONDON , BEIJING & BERLIN

8. SPONSORSHIP

9. Average selling price of an Audi is still lower than an average selling price of a BMW
New entrants with environmentally sustainable cars likeTESLA – Potential Competitors

11. WE NEED AN ACTION
PLAN
• BUILDING LOYALTY
• BRAND COMMUNITIES
• CULTIVATING CUSTOMER RELATIONSHIPS
Customer Empowerment
Customer Recommendations
CustomerComplaints

14. WHY ?
They can customize market offerings , services , programs , messages and media.
THUS , ITS ESSENTIALTO HAVE MANY ‘CUSTOMERTOUCH POINTS’

15. Customers prefer to be acknowledged individually .
A personal touch can create miracles in establishing long
ties with customers .

17. How important is it to 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
ProtectsYou From the Competitions
Word-of-Mouth Marketing
Benefit of the Doubt

18. 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 after every 5 years and in life
time purchases 10 cars so profit from a customer will be
$60000 so at 15% of discount rate the NPV will be CLV for an
Audi.

19. What measures should Audi take to build long term
loyalty relationships ?
• Build best communication means with customer .
•Try to follow each customer needs & expectation & make
relevent promotion and communication with customers .
• Design a comprehensive , point-by-point marketing &
communication plan for each of the customer profiles Audi
have made .
• By designing a communication & marketing strategy to keep
customers coming back again & again .

21. DISCLAIMER
CREATED BY SWARANG CHANDWASKAR , NIT
SURAT DURING MARKETING MANAGEMENT
INTERNSHIP UNDER PROFESSOR SAMEER
MATHUR , IIM LUCKNOW