Audi has focused on innovation and repositioned its brand through successful advertising campaigns. It has expanded its product variety and global sales, especially in China. However, Audi faces challenges from newer electric vehicle brands. To build loyalty, Audi must understand customer needs, communicate effectively, and design marketing strategies to keep customers returning over their lifetime as customers. Estimating customer lifetime value can help Audi invest in relationships and measures like customized communication can help build long-term loyalty.

1. Forget the car. Audi is

2. It has done something more than INNOVATION……
“VORSPRUNG DURCH TECHNIK” – “PROGRESS
THROUGH INNOVATION”

3. BRAND
REPOSITIONING

4. Convincing ADVERTISING .

5. With a famous commercial , the brand transformation was put into practice in 1986.
An Audi 100 Quattro , a four-wheel drive , drove up a snow-covered ski jump , apparently all
by itself .

6. PROGRESSIVENESS
Power meets elegance .

7. SPONSORSHIP Concept….

8. SPORTINESS

9. BRAND 2000 2013
2013
(CHINA)
6,53,000 1580000 492000
8,22,000 1660000 360000
10,53,000 1460000 228000
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
1 2 3 4
SALES
BRAND 2000 2013 2013 (CHINA)

10. What else has AUDI done ?

11. VARIETY…..

12. Experience the
virtual world of AUDI in
3D.

14. • Average selling price of Audi is still lower than an average
BMW .
• New errands with environmentally – sustainable cars like
Tesla ( Potential Competitors ) !!!
Let’s device an action plan

15. BUILDING LOYALTY
BRAND COMMUNITIES
CULTIVATING CUSTOMER RELATIONSHIPS
Customer Empowerment
Customer Recommendations
Customer Complaints

17. Try to estimate the lifetime value of an Audi customer ?
Customer life time value describes the net present value (NPV) of the stream of
future profits expected over the customer’s life time purchase. Company must
subtract from its expected revenue the expected cost of selling and servicing the
account of that customer. So by applying discount rate we can estimate CLV. 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 on
customer will be$60,000so at 15% of discount rate the NPV will be CLV for an Audi.

18. What measures should Audi take to build long
term loyalty relationships?
If organization wants to build long term relationship with its customer, then first
step is to know them at a grassroots level. Ask them about their needs and try to
meet their expectations to build customer relationship. By getting a sound
understanding of Audi customer’s needs and behavior, it can build a strong
relation.
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 the 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 ?

19. 1) A brief story of how Audi came into being .
2) Brand repositioning .
3) Underlying issues.
4) How to tackle them.
5) Importance of investing in customer loyalty .
6) Estimation of life time value of an Audi customer.
7) Measures that Audi should take to build long term loyalty relationships.

21. DISCLAIMER :
Created by Disha Dahiya during a marketing management internship
under Professor Sameer Mathur , IIM Lucknow
Disha Dahiya
Delhi Technological University