Audi is developing a new technology called Audi Smart Drive that will allow users to control their Audi vehicle through a mobile app. The app will offer features like remote locking/unlocking, locating the vehicle, setting user presets for vehicle settings, and stopping the engine and alerting police if the vehicle is stolen. Audi aims to attract new customers and maintain its brand image through this innovative technology. The marketing plan outlines tactics like offering different subscription plans, incentives for longer subscriptions, and communicating the launch through Audi dealerships. The technology will launch at an auto expo in June 2017 after a development period of 9-10 months.

1. Audi Smart Drive
The Marketing Plan : An Outline

2. Not sure whether you locked your car or
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3. Contents
 Executive Summary
 Situation Analysis
 Goal
 Strategy
 Tactics
 Implementation
 Summary

4. Executive Summary
Overview of Situation | Company’s Goal | Proposed Course of Action

5. Overview of Situation
 Audi’s competitor BMW has an iDrive technology
 BMW owners can control their car from their smart phones
 Audi needs to develop a similar technology to continue to be a prominent luxury
automobile manufacturer
 With latest technology Audi might be able to attract more customers from its competitors

6. Company’s Goal
 Superior Financial Strength
 Continuous Growth
 Leaders in Innovation
 Sustainability of products
 Top Image Production and Customer Mix
 Attractive Employer Worldwide

7. Proposed Course of Action
Develop
Technology to
control car
Develop App for
this technology
Make a Marketing
Plan
Launch the
Technology
Adding features
according to needs
of customers

8. Situation Analysis
Company Overview | Market Overview | Target Customers

9. Company Overview
 German Luxury Care Manufacturer
 One of the most successful car manufacturers in premium and supercar segment
 Owner : Volkswagen Group
 Subsidiaries : Ducati, Lamborghini
 Product Line
 Sedans : Ranging from USD 30,900 – USD 114,900
 SUVs : Ranging from USD 37,900 – USD 54,800
 Coupes : Ranging from USD 41,200 – USD 162,900
 Convertibles : Ranging from USD 36,600 –USD 129,400

10. Market Overview
 12.4 % decrease in sales from last year (Jun 15- Jun 16) in the luxury market segment
 Major Competitors : BMW , Mercedes Benz
 Audi Market Share : 1.2% of total automobile US market
 BMW Market Share : 2.0% of total automobile US market
 Mercedes Benz Market Share : 2.1% of total automobile US market
http://online.wsj.com/mdc/public/page/2_3022-autosales.html
http://www.goodcarbadcar.net/2016/01/usa-auto-sales-brand-results-december-2015-year-end.html

11. Target Customers
 Customer Profile
 Age : 25- 60
 Gender : Both Male & Female
 Income : USD 101,724 (Average)
 Professional Drivers (Need Strict Performance)
 Obnoxious Rich People
https://hedgescompany.com/blog/2012/10/3-things-you-didnt-know-about-audi-owners/

12. Goal

13. Goal
 Satisfy consumer needs
 Maintain Brand Value
 Increase Brand Equity
 Attract more customers
 Associate Innovation with Brand Image

14. Strategy
Target Market | Value Proposition

15. Target Market (1/5)
 Needs Fulfilled :
 Car Control
 Car Security
 Target Customers : Audi Owners
 App development would be outsourced to an IT firm to save time (recruitment of new
team )
 This whole technology and app division would be handled by Director, Audi Drive Sense

16. Target Market (2/5)
Major Competitor : Viper Smart Start
 Installs a machine in the car that enables the car
to be controlled through app
 Not enough features yet
 Audi’s customer brand loyal ; Audi’s personalized
app as Status Symbol will be preffered over Viper
Smart Start that can be integrated with normal
cars too

17. Target Market (3/5)
Major Competitor : My BMW Remote
 Users can control car via Mobile app
 Only limited to BMW cars ; No direct competition
 Not enough features yet

18. Target Market (4/5)
Points of Parity Points of Difference
Car Temperature (Atmosphere Control) Car Theft Control
Car Lights / Horn Control Car Locate (anywhere in the world)
Car Lock / Unlock Control Engine Level and Tire Pressure Details
Car Locate (Limited to 500m radius) User presets (car environment and modes)

19. Target Market (5/5)
Economical
World is growing
economically. Hence
economic conditions are
favourable
Political /Regulatory
No rules/regulations for this
technology as such
Technological
Difficult to develop but
possible with help of experts
Socio- Cultural
Luxury brands are
connected with status /
image in society so
conditions are suitable

20. Value Proposition – Customer Value
Customers can
 Create presets which changes the mood, lighting & atmosphere (temperature) of the car
 Locate their car remotely from anywhere in the world
 Control’s car entry exit (remote lock system), lights and horn to find their car in crowded or
dark places
 Lock car, stop engine & connect to nearest police station in case of theft
 Check engine oil levels, tire pressure levels , pollution check and schedule car service

21. Value Proposition – Company Value
 Audi ‘s Brand Equity will increase
 People will see Audi as a more Innovative Car
 With growing technology company needs to go hand in hand with the latest & best
features
 Revenue will increase as the technology would be added to existing cars

22. Tactics
Product & Services | Brand | Price | Incentives | Communication & Distribution

23. Product & Services
Features of the product are as follows :
Free Features Premium Features (Through Subscription)
Car Lock /Unlock Control Car Locate ( Anywhere in the world )
Car Engine and Tire Pressure Details Car Atmosphere (Temperature) Control
Car Locate ( Radius of 500 m) Car Theft Control ( Immediately stops cars engine , locks car and
sends a signal to nearest police station for help ) on just one touch
Car Lights Flash / Horn Control User Presets (Sets mood, lightning, music, temperature, mode
(economy/performance/normal), steering adjustment, seat height
adjustment, mirrors adjustment according to user )

24. Brand
 Name : Audi Drive Sense
 Logo : Same as Audi’s official logo
 Symbol : Same as Audi’s official Logo
 Slogan : “ You dream it, we make it “

25. Price
 Premium Subscription would be free for an year on car purchase
 After an year the rates for subscription are as follows :
Period Price
1 Month USD 9.99
3 Months USD 26.99
6 months USD 49.99
1 year (12 months) USD 94.99
 Existing customers can add this technology to their car for USD 10,000 but won’t get an
year’s subscription free

26. Incentives
 Customers can save money by purchasing premium subscription for a larger period
Period (Months) Price Offered Price @ USD
9.99 P.M.
Discount Percentage
Discount
Effective Price
P.M.
1 USD 9.99 USD 9.99 - - USD 9.99
3 USD 26.99 USD 29.97 USD 2.98 11.04% USD 9.00
6 USD 49.99 USD 59.94 USD 9.95 19.90% USD 8.33
12 USD 94.99 USD 119.88 USD 24.89 26.20% USD 7.92

27. Communication & Distribution
 On a purchase of any Audi Car, The person can add his/her car in the app through his
Audi Account which will be made by the company
 The company will keep adding the cars to the account in case a person has to link
multiple cars from his account
 A car can only be linked to a single account (for safety purpose)
 Existing Audi customers would also get an opportunity to upgrade to this technology by
visiting any Authorized Audi service station

28. Implementation
Infrastructure | The Flow | Timeline

29. Infrastructure
Director
(Audi Drive Sense)
Head
App Division
Head
Technology
Responsible for Development of App and
updating as per needs of the customer
Both Heads will Have Managers and Executives under them
as per their requirement
Responsible for programming the chip in
the new and existing Audi Cars

30. The Flow (New Cars)
Software Center
(Develops App and
updates required )
On Purchase of Car,
Dealer contacts
software center to link
account to car
The owner uses the
app and contacts
software center for
any help

31. The Flow (Existing Cars)
Software Center
(Develops App and
updates required )
Existing Audi owner
gets an option to get
this technology added
to his car for a price of
USD 10,000
The owner uses the
app and contacts
software center for
any help

32. Timeline
 Modifications have to be made in the car’s programming chip
 A new App has to be developed from scratch for both Android and iOS platforms
 This new feature can be unleashed in the Next Global Auto Expo on 20th ,21st and 22nd
June 2017 in Germany
 The technical team would require 6 months for development and 3-4 months for testing
Task Date (Tentative)
Modification in Car’s Programming
and Development of App
31-Dec-16
Testing Starts 01-Jan-17
Testing Ends 01-May-17
App Launch in Global Auto Expo 20-Jun-17

33. Summary
 Executive Summary
 Situation Analysis
 Goal
 Strategy
 Tactics
 Implementation

34. Disclaimer :
Created by Anish Lamba during
an Internship under Professor
Sameer Mathur (IIM-L) Thank you !