Audi marketing strategy – Marketing strategy of Audi: Audi Group is a long-standing leader in supercar and premium car manufacturing. The Audi Group also supplies cars from other Volkswagen Group brand customers through its sales subsidiaries. 2014 saw continued growth for the Audi Group. The Company increased the deliveries of its core brand Audi to the new record of 1,741,129 (2013: 1,575,000.480).
Volkswagen has owned Audi for over 40 years. In 2014, Audi sold 12.3% more cars than it produced. With nearly 500,000 vehicles delivered, the most popular models are the Q5 and A6 Sedan.
Audi At A Glance – Marketing Strategy of Audi
Company : The Volkswagen Group
CEO: Markus Duesmann
Founder: August Horch
Year founded: 16 July 1909, Zwickau, Germany
Headquarters: Ingolstadt, Germany
Annual Revenue: US$72.1 billion
Profit | Net income: US$3.2 billion
Number of employees : 90,640
Products & Services: Automobiles | Commercial Vehicles | Financial Services | Automobile Repair
Audi Fun Facts: The four rings in the logo represent the four companies of the Auto Union. Fact -2 : Audi was the first car manufacturer to win Le Mans with both Diesel and Hybrid powered cars.
Marketing Strategy of Audi
Audi’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Audi? Let us discuss.
Segmentation, Targeting, Positioning – Audi Marketing Strategy
Audi segments its luxurious & cozy cars using Psychographics and Behavioural factors. It targets professionals and executives from wealthy families, as these are the people Audi will be most affordable too. They will also appreciate innovative products that are technologically advanced and highly skilled.
For a premium car manufacturer, a strong brand is a key to success.
The car is also targeted at young drivers who enjoy driving. It is more about style and design than speed. It is designed to be a stylish, well-engineered car. The tagline of the car is “Vorsprung Durch Technik”, which in German means “Lead by Tech”.
Audi Mission Statement
“We Delight Customers Worldwide”
Audi Vision Statement
“The Premium Brand”
“Vorsprung Durch Technik”
Competitive Advantage – Audi Marketing Strategy
Audi can compete with rivals BMW and Mercedes-Benz because it has access to the global buying power and resources of its parent Volkswagen Group. This includes six other brands and VW’s regional procurement offices in Brazil, South Africa, South Africa, and China. It also has 70k dedicated and passionate people who work tirelessly to make it a premium automobile globally.
BCG Matrix – Audi Marketing Strategy
A5, A1, Q5, and TT series are Stars – These cars are in demand but face equal competition within this category from other premium car manufacturers like BMW and Mercedes.
TT & R8 are question marks.
Q7 and Q3 are cash cows – Because they are unique and in great demand.
A3, A7, and A8 are dogs.
Distribution Strategy – Audi Marketing Strategy
AUDI distributes its products through authorized streamlined distributions that make the AUDI flagship cars available to customers. The company will continue investing in flagship stores to increase the customer experience. The company is expanding its dealer network.
The location of the stores is a key element in the distribution strategy of Audi. It is recommended that the stores have ample space to display the cars. The locality must be attractive, however. Dealers are given high margins due to the high level of investment.
Brand equity – Audi Marketing Strategy
Premium manufacturers must have a strong brand and a positive image to be successful.
Audi’s brand loyalty (measured as repeat customers) grew by 4.9 percent in 2013. This is enough to surpass the improvements of every luxury brand and every carmaker worldwide. Audi promotes primarily through the sponsorship of automobile races, brands, TV shows, and video games. Many advertisement projects are also carried out by Audi. Brand Value, May 2015: $12.8 billion
Competitive Analysis – Audi Marketing Strategy
Audi is widely considered a premium brand. It commands a premium price in the market. Audi products are competitive with premium brands like BMW, Mercedes-Benz, and Jaguar. Audi has made the transition from premium to the mainstream. Many factors helped them do this. Audi’s investment in perceived quality is a significant factor. AUDI has a competitive advantage because of its cutting-edge logistics processes and synchronized Audi Production System. Also, AUDI’s highly qualified workforce of almost 80,000 ensures that there is a uniform Audi standard across the globe.
Market Analysis – Audi Marketing Strategy
There is a rising demand for luxury cars in the Asian market. This has influenced the changing lifestyle and 33% growth rate in the luxury segment in developing countries like India. Many players are competing to grab the market share of each other. Companies like Audi and Mercedes are aggressively playing in developing nations, while BMW cannot sustain these markets.
Customer Analysis – Audi Marketing Strategy
AUDI is looking for people who are middle-class or upper-class socially and are in their mid-career. To delight customers and tie them emotionally to Audi, AUDI aims to improve these aspects and continuously increase its innovative, high-quality product portfolio.
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