AUDI Presentation(Summer Internship- IIM Lucknow)

Creating Long-term Loyalty Relationships--AUDI

1. AUDI Vorsprung durch Technik

2. The company was founded by August Horch on 25 April, 1910 The company’s name is based on the Latin translation of the surname of the owner of the company ‘ Horch ’ meaning ‘listen’ in German, becomes ‘ audi ’ in Latin The Head-Quarter of the company is in Ingolstadt, Germany It currently has 11 production facilities across 9 countries Volkswagen AG currently owns Audi by having 99.55% stakes of it since 1966 It is spread across 110 countries and came to the Indian market in 2004 INTRODUCTION

3. Vision

4. MISSION Digitalization - Completely integrated digitalized processes Superior user experience Substantial contribution to profit by digital and mobility services Upscaling myAudi platform Audi connect as standard equipment Volume mix 1/3 electric cars

5. MISSION Sustainability - Fuel cell vehicle in series Upscaling Audi g- tron . Upscaling Audi e-fuels/e-power Best system range for alternative drives Circular economy in value chain Social responsibility and integrity

6. MISSION Urbanization - Audi Urban Solutions pilots worldwide Intermodal mobility solutions for implementation of urban targets Open and independent mobility platform Leading position in piloted and autonomous driving Upscaling mobility services

7. POSITIONING MAP

8. SWOT ANALYSIS Opportunities Threat New emerging markets of China and India Growth in new car sales in the Asian market Positive impact of FDI Extend loan tenure to 84 months i.e. 7 years Giant competitors in BMW, Mercedes Impact of recession Economic slowdown in many countries Higher subventions offered by competitors

9. SWOT ANALYSIS Strength Weakness The Brand value the company owns Technology, Creativity, Innovation Large panel of products. Global presence High maintenance and handling costs Concentration on high class market

10. MARKETING STRATEGY Audi has successfully implemented the strategy of market segmentation according to 1. Geographic 2. Demographic 3. Psychographic 4. Behavioral It has divided its consumers into rural, urban or age, sex It has always aimed for the high class customer and this poses a threat for the company

11. ENSURING SALES Audi has maintained enormous sales after being acquired by Volkswagen Aktiengesellschaft (AG) Audi ensures its sales by promoting its cars and its brands through – 1. Promotion in Rallies and Races. 2. Audi is the major car which is used in action movies. 3. Sponsoring and endorsing huge clubs or persons 4. The Audi Mileage Marathon and Audi e- tron . 5. Promotions through video games

12. SALES STRATEGIES Pull Strategy - Advertisements in paper, TV, Business Magazines Car’s will be displayed in AUTO Expo before they are launched into the market Audi conducts OFF ROAD events to display car’s performance Push Strategy - Customers are given special merchandises like Watches, Key Chains The salesman are given 1% incentives if they are able to sell above their targets

13. ADVERTISING STRATEGIES

14. ADVERTISING STRATEGIES Audi has successfully implemented the strategy of involving customers and has brought with it many customer oriented changes in its cars It has worked upon the feedback from the customers It has tried to create long-term loyalty relationships and has been quite successful at it It has successfully build a good brand and thus has been continuously building loyalty and thus increasing the brand communities

15. REPORTS IN MEDIA New York Times There appears to be less grace in this second-generation Q7’s crisp and clean design; it looks more like the box the first one came in. Still, the 2017 Q7 is a formidable competitor. It helps with the chores, pampers the family and entertains the driver . - Tom Voelk The Guardian Audi’s super competent A6 Allroad may look like an estate, but it has a dirty secret. It’s actually an SUV in disguise - Martin

16. In your opinion, how important is it to invest in customer loyalty for cars, a product most people buy only every couple of years ? In my opinion it is most important to be involved in customer loyalty be it in any kind of business It is so, since the loyal customer will not only turn again and again to buy the product but they will be the one who would provide good testimony to the company and will indulge in self-promotion of the firm

17. Try to estimate the lifetime value of an Audi customer ? It is the estimate of the net present value of stream of benefits from a customer It tells us how much a consumer can benefit a particular brand through his/her loyalty The lifetime value of an Audi customer should be very high then only the company may be able to reap great benefits out of the customer

18. What measures should Audi take to build long-term loyalty relationships ? It should know who its customers are It should measure its customers’ behavior with the right tools It should design a communication and marketing strategy to keep customers coming back again and again It should try them to indulge in self promotion of brand.

19. THANKS

20. DISCLAIMER Created by Rohit Raha, BESC Kolkata, during a Marketing Internship under Prof. Sameer Mathur , IIM Lucknow .