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Greatness
starts , when
you don’t
stop.
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.
IT HAS DONE SOMETHING MORETHAN INNOVATION
MAKING ITSELF GREAT BY STICKING
TO IT’S MISSION STATEMENT
“ PROGRESSTHROUGHTECHNOLOGY”
FROM
QUATTRO FOUR
WHEEL DRIVE
FIRST HYBRID
VEHICLES
A WHOLE NEW CONCEPT OFVIRTUAL
EXPERIENCE IN
LONDON , BEIJING & BERLIN
SPONSORSHIP
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
WE NEED AN ACTION
PLAN
• BUILDING LOYALTY
• BRAND COMMUNITIES
• CULTIVATING CUSTOMER RELATIONSHIPS
Customer Empowerment
Customer Recommendations
CustomerComplaints
WHY ?
They can customize market offerings , services , programs , messages and media.
THUS , ITS ESSENTIALTO HAVE MANY ‘CUSTOMERTOUCH POINTS’
Customers prefer to be acknowledged individually .
A personal touch can create miracles in establishing long
ties with customers .
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
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.
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 .
DISCLAIMER
CREATED BY SWARANG CHANDWASKAR , NIT
SURAT DURING MARKETING MANAGEMENT
INTERNSHIP UNDER PROFESSOR SAMEER
MATHUR , IIM LUCKNOW

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Audi case study

  • 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.
  • 3.
  • 4.
  • 5. IT HAS DONE SOMETHING MORETHAN INNOVATION MAKING ITSELF GREAT BY STICKING TO IT’S MISSION STATEMENT “ PROGRESSTHROUGHTECHNOLOGY”
  • 7. A WHOLE NEW CONCEPT OFVIRTUAL EXPERIENCE IN LONDON , BEIJING & BERLIN
  • 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
  • 10.
  • 11. WE NEED AN ACTION PLAN • BUILDING LOYALTY • BRAND COMMUNITIES • CULTIVATING CUSTOMER RELATIONSHIPS Customer Empowerment Customer Recommendations CustomerComplaints
  • 12.
  • 13.
  • 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 .
  • 16.
  • 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 .
  • 20.
  • 21. DISCLAIMER CREATED BY SWARANG CHANDWASKAR , NIT SURAT DURING MARKETING MANAGEMENT INTERNSHIP UNDER PROFESSOR SAMEER MATHUR , IIM LUCKNOW