August Horch founded Audi after leaving his previous company, Horch Automobil-Werke, due to a trademark dispute over the use of the Horch name. He chose the name Audi, which is the Latinization of Horch. Audi has since grown to become one of the largest luxury automakers in the world. The company focuses on innovation, sustainability, and achieving customer loyalty through superior products and service. Audi aims to have over 20 electric vehicle models by 2026 as part of its sustainability strategy. Customer loyalty is important to maximize long-term profits and customer lifetime value. Audi should integrate customer feedback, offer high quality products, and implement loyalty programs to achieve stronger customer loyalty.

1. By : Ruaa Ayman Abu Sabe
Rua20218164@std.psut.edu.jo
Supervisor: Prof.Aladdin Ahmad
A.AHMAD@psut.edu.jo

3. 12 October 1868 – 3 February 1951) was a German engineer and automobile
pioneer, the founder of the manufacturing giant which would eventually become
Audi.
Beginnings :
Horch was born in Winningen, Rhenish Prussia. His initial trade was as a
blacksmith, and then was educated at Hochschule Mittweida (Mittweida Technical
College). After receiving a degree in engineering, he worked in shipbuilding. Horch
worked for Karl Benz from 1896, before founding A. Horch & Co. in November 1899,
in Ehrenfeld, Cologne, Germany .
August Horch

4.  The first Horch automobile was built in 1901. The company
moved to Reichenbach in 1902 and Zwickau in 1904. Horch left
the company in 1909 after a dispute, and set up in competition in
Zwickau. His new firm was initially called Horch Automobil-
Werke GmbH, but following a legal dispute over the Horch
name, he decided to make another automobile company. (The
court decided that Horch was a registered trademark on behalf
of August Horch's former partners and August Horch was not
entitled to use it any more). Consequently, Horch named his
new company Audi Automobilwerke GmbH in 1910, Audi being
the Latinization of Horch
MANUFACTURING :

8. COMPANY BACKGROUND :
Audi is one of the most popular automobile manufacturers globally.
The firm was technically founded in 1885 by August Horch when the Wanderer Company was
established.
The firm launched its first car in 1910 known as the Audi Type A Sport-Phaeton.
Audi is pursuing its path of becoming a provider of sustainable mobility with its new models,
attractive brands, groundbreaking services and innovative mobility offerings.
The Quattro permanent all-wheel drive is one of the key innovations by Audi in the recent years.
Audi plans to offer more than 20 electric vehicle models by 2026.

9. CASE SUMMARY :
 Audi has massively invested in car sports.
 Various global championships and races have been won through Audi cars.
 The company is also involved in sponsorship activities apart from its car manufacturing
activities.
 The firm is also a sponsoring partner for leading clubs in Europe such as Chelsea FC and FC
Barcelona.
 These sponsorship activities are aimed at popularizing its brand image and identity.
 The company offers innovative products to meet customer demands.

11. CUSTOMER LOYALTY :
 The loyalty levels of customers to specific may vary.
 Audi will enjoy various benefits by achieving customer loyalty.
 Such customers will play a key in marketing the firm through self-promotional.
 Cross selling will be enhanced leading to increased sales.
 Loyalty customers will act as tool against competition since they will help Audi gain more
customers.

12. CUSTOMER LIFETIMEVALUE :
 Customer lifetime value (CLV) is an important to large companies such as Audi
 CLV provides an indication of the company in long-term basis and the financial viability
 It is an indicator of brand loyalty, product market fit, and recurring revenue from the existing
customers
 Audi should focus on achieve customer loyalty and trust to optimize its CLV

13. STRATEGIESTO ACHIEVE CUSTOMER LOYALTY :
 Customer loyalty is an important aspect to any company
 Audi should focus on achieving customer loyalty to retain them and enjoy long-term benefits.
 Audi should Integrate “Customer’s Voice Approach” to identify and address their needs.
 Offering products that meet consumer expectations will also help the firm achieve customer
loyalty

16. Question One
The loyalty levels of customers to specific may vary. Audi will enjoy various benefits by achieving customer loyalty. Loyal
customers are unlikely to buy from other competitors such as Volkswagen. Such customers will play a key in marketing the
firm through self-promotional. The customers are likely to buy from the company repeatedly leading to increased sales
and overall profit (Wijaya et al., 2021). Cross selling will be enhanced leading to increased sales. Loyalty customers will act
as tool against competition since they will help Audi gain more customers. Such customers will accelerate word of mouth
marketing hence promoting brand awareness. Therefore, there are enough reasons for Audi to invest loyalty for cars.
Question Two
Understanding customer lifetime value concept maximizes long-term customer profitability. Customer purchases a car in
each 5 years and around 10 cars in their lifetime. Let’s assume that Audi makes a profit of $5, 000 from each car,
therefore, the profit from the consumer will be $5, 000. Therefore, the NPV on $50, 000 with 15 percent discount rate will
be the GLV of that consumer.
Question Three
• Manufacture superior service, products and experiences for the prospective customers.
• Embrace cross-departmental participation in managing, controlling, planning and implementing the retention
process and customer satisfaction.
• Integrate “Customer’s Voice Approach” to identify and address their needs
• Initiate loyalty programs so that outstanding employees are rewarded.
• Adopt effective communication network to ensure that customers easily reach out to the company and express
their complaints, perceptions and needs (Kuncoro & Sutomo, 2018). Organize and formulate an accessible information
database on consumer preferences, needs. Purchase frequencies, market dynamics and satisfaction.

17. REFERENCES :
 Kuncoro, A., & Sutomo, Y. (2018). Pricing Strategies and Implementation Promotion Strategies to
Improve Customer Loyalty. JDM (Jurnal Dinamika Manajemen), 9(1), 89-99
 Wijaya, I. G. N. S., Triandini, E., Kabnani, E. T. G., & Arifin, S. (2021). E-commerce website
service quality and customer loyalty using WebQual 4.0 with importance performances analysis,
and structural equation model: An empirical study in shopee. Register: Jurnal Ilmiah Teknologi
Sistem Informasi, 7(2), 107-124.