Ch. 7 - Business Marketing (The Last Post)

Audi has not always been a a profitable company like it is today. During the early 1960's Audi had to form an alliance with Volkwagen due to poor profitability because the world was moving on to 4 stroke engines and Audi was manufacturing cars with 2 stroke engines. Volkwagen provided the 4 stroke engines to Audi cars at that time but eventually stopped. Audi had to find way to save itself so it came up with the Audi 100 which was a huge success and proved to be the resurrection of the Audi Brand.

Now that Audi is at the peak of its success it is partnering up with different companies to further improve its profitability and Brand recognition although everyone in the world can spot an Audi in the traffic. Audi recently partnered up with NXP to further innovate its automobiles. It is basically focused on enhancing the time and speed of its hybrid cars. Other than that Audi is also seen shimmering at different sports events especially the Olympics. Audi has made its business throughout the entire world and is well recognized for the brand that it is. No doubt about it the cars are extremely luxurious and well built. So if you have an Audi than you know that the money was well spent.

Ch. 8 - Segmenting and Targeting Markets

Audi has a specific standard when it comes to building cars and the company makes sure that each and every vehicle is the same when it comes out of the factory, but different steering placement maybe required across different parts of the world, but overall the mechanics are the same. Furthermore Audi basically uses Geographic and Demographic segmentation to dissect it's target market. Under geographic segmentation people living in crowded cities are more likely to buy hatchback but most prefer not to. But keeping such aspects of the market in mind Audi has introduced different innovative ideas. A person living in New York or Lahore, Pakistan (my native country) faces a major issues while driving, which is traffic jams. Audi has provided it's customers that face such issues in their daily lives with Traffic Jam Assist. It acts as an auto pilot when you're caught up in heavy traffic and informs you to take control when the road clears.
Another major concern for all drivers and car owners in the world is parking. Audi has also eased this aspect of driving for the driver by introducing park assist, that let's you park the car easily.

Audi's demographic segmentation shows that the company is more focused towards the younger generation and in the class factor the upper class. So this provides Audi with the incentive to make its cars more and more luxurious and give them a sporty look at the same time. The LED lights represent modernization and appeal to young people as savvy and classy to the people who have taste. Along with all other German brands Audi also falls in the luxurious category in automobiles so it is kind of a responsibility for them to not only provide a car that has the best mechanics but also the perfect interior.

Ch. 11 - Developing and Managing Products

When Audi came up with it's first ever high end muscle car it was basically trying to compete with Lambourghini, by providing the same amount of power and according to the company better control. The customers that were loyal to the company were thrilled when Audi introduced R8 to the public in 2007. After the success of the coupe Audi decided to provide it's customers with a convertible version of the car to attract the customers who prefer convertibles. Since than Audi R8 has been the very popular among the young generation and every year Audi brings some changes in the interior and and the exterior of the car making it more and more desirable to the customers that crave it.

Like all other companies and products Audi did launch prototype of the Audi R8 to a specific group of people. They were to test it out and during one of these tests one of the cars' engine blew up which spread fear amongst the people but to Audi's advantage nobody knew about the car back than so they were able to cover up the story.

Audi has always been trying to appeal to the younger generation in the market and it has succeeded to some extent and the people at Audi are still trying their nest to make cars that will attract the younger generation who have the car purchasing ability towards them.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Ch. 12 - Services and Nonprofit Organization Marketing

Audi makes sure that it's customers get the services that the company promises them. Which includes both before and after the purchase. They make sure that each and every make of the car that comes out of the factories is same in almost every part of the world depending on local driving specifications. For example a standard specified Audi Q7 Quattro in the United Kingdom is the same as in Pakistan, although the market in Pakistan for luxury cars such as BMW, Meredes and Audi is very low. But for the customers who do not want the standard model have h ability to customize the car to their own standards. Audi is also coming up with an app that will let it customers (for now) customize their Audi R8, but the options are available online for extended features.

When you buy an Audi you're not only buying a car but you are building a long term relationship with the company, of trust and reliability. The cars are very reliable when it comes to performance because they have undergone a great amount of tests that prove their reliability on the road. They have formed an era of trust between them and the customers and some of the customers that are loyal to the brand will stay loyal to it.

Ch. 10 - Product Concepts

Audi has been making modern automobiles for the entire world for over a decade now. Each and every model has some kind of change or  new piece of technology in it that sets it apart from the previous one and encourages it's buyer to buy it, although there might not be a major change in the exterior of the cars for a the past couple of years except for the LED head lamps but there have been many changes in the interior, and by interior I mean the mechanics and the luxury. Audi has a vast variety of products to choose from. From Coupes to Convertibles to SUVs and better yet it also offers the same products in the first two categories. For example Audi introduced the R8 as a coupe but over the years and demand and competition it launched the R8 Spyder, which is a convertible version of the sports car. Other than that a lot of potential Audi models like A5, RS5 and the TT Roadster also come with a convertible roof tops.

Audi has rapidly earned it's rightful name in the international market and is striving towards progress.Among other competitor brands like BMW and Mercedes, it has also formed it's roots in the international market. It is fairly popular in the Asian market. Following is a report from 2012 that shows that Audi has sold over 90,000 cars in China where in Germany it's below 58,000.

If you pay good money for an automobile like Audi it is sure to last you long, durability in cars now a days is not that great but Audi still gives it's customer the same durability. In my country Pakistan we had a saying that a Japanese car can last a generation, which was true to some extent but extremely exaggerated, anyhow that saying shifted from Japan to German cars, Audi in particular. The new space frame that Audi has introduced in R8 has proved to be the strongest car frame in the market. In the event of an accident the car gets less damaged than the others, hence proves to be durable in the long run. The company provides certified services to it's customers that ensures that the cars are upto the company standards and keep running smoothly and efficiently. 

                     

Ch. 17 - Personal Selling and Sales Management

When it comes to Personal Selling Audi doesn't have to put much effort into it. A company of such stature already has achieved the goal of satisfying its's customers, to some extent though. Audi operates as a dealership and most of the communication between the company and the consumer is done at the dealerships.It is within the power of the dealerships to provide their customers with different deals or discounts to keep them coming back in the future. When it comes to asking the public for their opinion on how to make the company's products better suffice to say that Audi doesn't turn a blind eye. There are people at the official dealerships that do ask for the consumers suggestions but whether they are implemented or not is not sure. The way the company gathers it's information about what the ultimate consumer wants is basically done by what they lack in the previous model or what the competitor brands are making. There are also several reviews on the internet regarding a specific model of Audi from the general public but on third party websites. Audi seems like it knows what direction it is heading but in order to achieve the ultimate consumer satisfaction it needs to consider taking the views of the general public. Given the size of the company the best way to achieve this goal would be to allow the consumers to post on the official site of the company about what changes or enhancements the company needs to make. Not only will it help Audi in expanding it's already gigantic market but will also create a gateway for the consumers to interact with the company which will in turn create a relationship of trust.

Ch. 16 - Advertising, Public Relations and Sales Promotion

I haven't seen may Audi billboards or repeating television commercials but i still see many people buying them and driving them. So how does Audi attract people towards buying it's cars? It's not that people just happen to know about a new model or a certain decrease in price in the existing model or leasing information. Media and internet are the main source of information nowadays and people expect to find everything off of it. The times when people actually went in a showroom to look at a car and find out it's pricing and leasing information are long behind us. Now the only two reasons they make the trip to the showroom is whether to finally buy the car or for a test drive, which you still cannot do on the internet that's why (maybe one day).

So the question still remains how does Audi attract it's customer? We are drawn towards products by their advertisements and how they are represented to us on a screen or on a piece of paper. It's basically a window to that product that eventually forces us to buy it. Audi's target market like all other luxury brands is the upper class that has the affordability to buy it. Like it's cars it keeps it's commercials simple attractive and elegant, because elegance is a magnet that pulls the people that has class and Audi is a classy car in it's own respective field. The Audi commercial i came across seemed like a really decent one. The idea was unique and very different from your regular everyday car commercial.

Now apart from being all classic and elegant Audi is also famous for it's drive and it's control over the vehicles. For those customers who prefer Audi for it's technical aspects rather than luxury. Audi came up with a commercial that features Jason Stathm who plays a role as a transporter in the movie Transporter which also features Audi as his pick up and drop car. It shows the difference between Audi's competitors BMW and Mercedes. In the commercial they elaborate about the progress made over the years showing the two competitor cars and in the end the 2009 Audi A6. 

Ch. 14 - Marketing Channels and Retail

So I went to the Audi dealership at 11th Ave 55th street. By the looks of it, it sure seems like a place where you can get high end luxury vehicles of a top brand. It is my belief that how good a place looks attracts and appeals to most customer. Although it's not everyday that you go in to buy a new Audi but like the saying goes "The First Impression Is The Last Impression".Audi is inspiring the future through it's cars and the building also feels futuristic in some manner. The staff working there was also very welcoming, it is their job and they get paid to be nice but they didn't fake it. The way they communicated with the customers was great letting them in on every detail rather than being blunt.

Other than just looks and appearances Audi Manhattan allows s range of services to it's customers. From brand new cars that just came in the market to the repairing of old models. They provide a wide range of parts and the ones not available are ordered and shipped in a timely fashion. The tire shop provides Audi standard tires in almost every brand prior to your every need. They also provide genuine Audi accessories that fit your diverse need for outdoor adventure. The maintenance center ensures that your Audi is repaired to the highest specifications that provides reliability and safety to your car for years to come and enjoy the experience with your car. Apart from all these services I was most appealed by the looks of the place, it kind of showed you that Audi is most definitely on the path of innovation and providing it's customers the cars of the future.

Ch. 6 - Consumer Decision Making

In the modern era Audi has been making luxury cars for more than a decade, and as the years pass by it's attracting more customers towards buying it's cars. The majority attracted towards buying them are usually people on a high payroll and they are the only ones able to afford the luxury of these cars. Unfortunately Audi is also focused towards providing this specific class of customers rather than proving an affordable luxury car for a man with a mediocre salary. Almost everything in the world is based on class difference now a days and apparently cars have become a status symbol as well. A person working as a cashier at a bank would not hesitate to drive around in a Honda but a branch manager at the same bank would feel an insult to drive the same car as his inferiors. He would much prefer to drive an Audi or some other luxury car that would set him apart from the other workers in regard to class difference.

Given Audi's high end customers it becomes necessary for the company to provide the best kind of services and luxury to them. No doubt the latest models are worth praising, not only do they have a stylish outlook and a seductive interior they also do very well on the road. The Quattro technology (derived from the Italian word for four) not only represents the signature four rings but also represents the four wheel drive system that gives the driver impacable  control and grip on the road. It also reduces the fuel consumption which is economical and environment friendly. So even if only a few classes of society are able to purchase it they know that they are getting their moneys worth.

Ch. 5 - Developing a Global Vision

Audi has become the most popular automobile company in the global market. Once a company started in Germany by a single man and amalgamated into four different companies it has earned it's place in the world of luxury vehicles. It is highly demanded amongst the rich and the wealthy all over the world. The company has a total of seven production plants worldwide. Germany, Hungary, Belgium, Slovakia, Spain, China and India.

India and China are two countries that have the highest population and cover a large regional area. Audi had been supplying India with premium luxury cars since 2004 but in 2007 it finally decided to step in as Audi India. It has it's manufacturing site in Aurangabad and about 28 dealerships in 11 states. India is one of those countries that have only two class differences "The Rich" and "The Poor". The poor qualify for cheap labor and the the rich are the people that enjoy the luxury of these cars. The economy might be good in India but it is only for the upper class.

In China Audi first started off in Changchun. In 1988 agreements were signed for the manufacturing of Audi 100 in China with FAW-Volkswagen which is a joint venture and is one of the biggest automotive manufacturer in China. The primary reasons why Audi established it's grounds in China is obviously because of China's rising economy, cheap labor and cheap resources. And not to forget the same class difference. The consumer demand has relatively increased which begs the requirement for another production plant. The Audi Foshan plant started production in 2013. The statistics below show the increase in annual production in China till 2013.

Ch. 4 - The Marketing Environment

In this world of constant change and modernization like fashion, cars are also changing day by day. They are becoming more attractive and innovative. But not the majority of people can afford to buy a car that is beautiful, equipped with the latest gadgets and gizmos and most of all luxurious. People who usually own an Audi or any other luxury car do not work on minimum wage. A man who has a passion for cars but is living his life on $8 dollars an hour cannot afford to buy himself an Audi and if he does save up enough money to buy a used car he just does't want to risk it. The company has introduced a certified pre-owned program that will provide customers with used cars that are upto the Audi standards with a 6 years or a 100,000 mileage warranty. Reconditioned and rigorously tested by the company's professionals making it convenient for their customers for buying "Their Dream Car" as Audi puts it.

Furthermore Audi along with other leading German companies like BMW and Mercedes are trying to shift their target market towards the younger demographic. In their Superbowl Prom commercial they focus on young adults and how it embraces their braveness and encourages them to do the unexpected but they did blur out on the pricing. The strategy might effective to motivate people but the price factor still kicks in which makes it give a second thought and in this competitive market it's always about being ahead and not second. 

Ch. 3 - Ethics & Social Responsibility

Just as Audi is focused on providing the world with Luxury and Speed. It is also focused on making it's automobiles environment friendly. Audi is constantly working on improving carbon footprints. It has balanced it's business as well as the environmental concerns. Audi also participated in the fourth Bavarian Environmental Pact. The company takes environmental issues very seriously and encourages it's employees to do the same. The Audi Production System ensures that the company's environmental  policies are implemented on all levels.

Although many companies are already making hybrid cars that are not only fuel efficient but are also not a threat towards the environment. Audi has also entered the hybrid market by introducing the e-tron electric drive powertrain system. The first concept was introduced at the Frankfurt motor show which was based on the Audi R8 model later on it was unveiled in 2011 and is in production now.

Other than the cars the Audi facilities are also focused on building cars using natural resources sparingly. Audi claims to strive a 25 percent decrease in the CO2 emissions. The whole plant in Ingolstadt is running on renewable electricity. They even use electric trains powered by renewable electricity to transport the vehicles from the plants to the ports.

Audi Environmental Foundation which has an endowment of about 5 million euros is committed towards the protection of wildlife and ensuring the welfare of the natural habitat of people in rural areas. It is also funding several researches to discover sustainable resources for human use awell.

Ch. 2 - Strategic Planning for Competitive Advantage

Audi is highly preferable in the general public. It made it's name in the market and is continuously raising the bar. Since the early stages of the company, the people at Audi have been aiming high. The Audi 50 made it's name in the market worldwide with a unique compact design. Audi also made it's mark on the race track but in the early 1990 Audi shifted it's attention to compete against the automobile giant Mercedes and BMW.

Audi has been the hub of innovation which led it to being the most competitive automotive companies of the present. In 1994 it presented an entirely different kind of frame for cars which set it apart from other companies. It bears the name of Audi Space Frame and it has been used in every model ever since. 

In the field of sports cars Lamborghini was leading the market. But the tables turned when Audi presented it's R8 model.

The car did well in the market. With the same internal specifications as
the Lamborghini and it was $40,000 cheaper, with the signature Audi LED head lights.

During the launch of the 2014 R8, the company produced an app that would let it's customers customize their selective cars and it includes a full digital brochure.
It has also appeared in different Hollywood movies like the Iron Man and The Wolverine. In Iron Man the director talked about the strength of the chassis of R8 during a scene where they were trying to break the car in half, but in vain.

Audi is one of those companies that have a clear vision of the future and have the people that know how to achieve the goals as to always keep the company ahead of the game. They have the technology, the brains and the consumer demand to prove it on a global level.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

We live in a world of innovation and constant change. Automobiles have become an important accessory in our lives and also a status symbol. Germany has been leading this market for quite some time. Audi is one of the most renowned and leading German car brands along with it's many other competitors.

Audi made a big name in the industry of automobiles. The story began in 1896 when Horch was working for Karl Benz as his production manager which inspired him to start his own company so in 1899 August Horch entrenched the company Horch and Cie in Cologne. Ten years later Horch was forced out of his own company due to the difference of opinion with the board and after that he set out to form another company with the name of Audi Atuomobilewerke GmbH. The foundation of this company was laid in 1909. Horch could not name this company after his own name because another company was already under it. So he decided to name it Audi which is the translation oh his own name in Latin.

The famous four rings of the Audi monogram actually symobilzes the merger of four companies 

 It represents the amalgamation in 1932 of the four major independent motor-vehechle manufacturers, Audi, DKW, HORCH and Wanderer. After the mergence of the four companies Audi introduced it's very first car the Audi Front which was one of the first European luxury car. Both luxurious and innovative this car was a game changer in the automobile industry.

Audi has been satisfying it's customers needs for luxury and adrenaline. it specializes in luxury and speed. The company's mission statement:
                   "We Delight Our Customers Worldwide"
Using the term "Delight" they explain how they provide the best drive in the market that is in sync with the taste and the technology of the present time. No doubt Audi does provide the best driving and luxury experience that most other cars fail to give to it's promising customers. The shape, the design and the seductive interior draws the people towards it. Here is a little introductory video of the 2011 Audi A8. After watching this you be the judge of it.