FERRARI Donatien Jeudi 14 OctobreRAINEAU VirginieRUOFAN YuanWANTZ Grégoire

Marketing Performance Measurements  

CASE STUDY: AUDI

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TABLE OF CONTENTS

I) Presentation of the company

II) External analysis

III) Internal analysis

IV) SWOT Matrix

V) Segmentation – Targeting - Positioning

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I) Presentation of the company

Today the Audi name is synonymous of the expression "vorsprung durch technik," which means in German “advantage through technology”. But the company has a history going back more than 100 years to the pioneering days of automobile manufacture.

The company was established by August Horch in Zwickau on July 16, 1909. Horch found a new name for the company by translating his name, which means "hark”, "listen” into Latin.

Today, Audi is a leading international manufacturer of premium cars. The company maintains production sites in Germany and various other countries, including Hungary, China and South Africa.

Just below you will find the VMO (Vision-Mission-Objectives) of the company.

Through this case study, we will as a first step make an external and internal analysis of the company, then we will realize a SWOT analysis in order to determine in the last part the segmentation, targeting and the positioning of the brand.

I) Audi’s external analysis

1 http://www.audi.com/etc/medialib/ngw/company/investor_relations0/pdf/for_investors.Par.0001.File.pdf/waddell_reed_220910.pdf

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Audi is playing in the field of the car manufacturer’s market. We observe a general a drop in car sales in Europe since 2007. But premium brands like Audi are still doing more than well.

In 2004 the European market represents 14.4 millions of new vehicles; it is indeed one of the most mature markets of the world. In order to compete, the manufacturers have to create new concepts and to be very careful with their image/price positioning. Among the customers, we observe also new criteria of purchase such as the emotional aspect of the car.

With the diversification of the different range we also observe a growing numbers of niche market (SUV, hybrid, urban…). In the premium segment (5% of the French market) Audi is one of the leaders but the competition of others German brands like BMW and Mercedes is an endless war.

Concerning the Audi A3 Sportback, the completion with BMW one series, Mercedes B Class or Alfa Romeo 147 is very high and the car also competes with model like Mini Cooper or Golf.

II) Audi’s internal analysis

One of the Audi’s best assets is its brand image.

The reputation of quality, liability, and top class last coating has made of Audi a symbol of the knowhow of German car manufacturer. The large range of 15 vehicles of the brand covers all the segments of the market, from the A1 to the GT R8.

The company is also very famous for the Quattro system. This 4-motion system put in place in the 80’s, permits to avoid aquaplaning and able the driver to practice on snow without any chain. Innovation, Technology and comfort are the DNA of Audi.

Concerning the Audi A3 the image of sport and quality has made the model one of Audi’s pillar with 23% of total Audi sales. With the launch of the A3 Sportback, it’s a new step in Audi strategy with the entry of the sporty compact cars with 5 real places.

III) Swot Analysis :

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IV) Segmentation – Targeting – Positioning

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a. Segmentation

Thanks to the Audi A3 Sportback, the company Audi has succeeded to touch a new segment.

As you can see on the charts below, the new model is present at the same time in the family segment and in the young segment.

b. Targeting

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Through this new model, Audi is targeting new customers. These new customers come basically from the competition on the premium segment. Audi A3 Sportback is a car targeting young executive between 25 and 45 years old who wants to build a family and to dry a sportive and safe car.

c. Positioning

Product position statement

“For young executives who need a fast, design and secure car, the Audi A3 Sportback is a premium car that provides high performances on road with high comfort unlike BMW Serie 3, the Audi A3 Sportback is better suited for urban way of life.”

Conclusion

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Demanding pragmatics 38%

Passionate hedonists 23%

Indifferent opportunists 29%

Woried users 10%

Active purchase

Freedomconstraints

Submissive purchase

AUDI

Today, Audi’s objective is to be leader on premium car market in 2015. Audi is the strongest brands in VW group portfolio. The range, from the fashion urban A1 to the limousine A8 cover every segment of the market.

We can say that Audi is really a love brand. A3 buyers will latter purchase an A4 or an A6. This fact is very important because brand loyalty is a key factor of success in this industry.

Audi work a lot on its image. After being a world leader in Rally during the 80’s, Audi dominates the 24hours of the Man. Audi have a strong in American blockbusters movies with product placement. This high-class image is a strong asset.

Indeed, the « milieu de gamme » is suffering a lot whereas the discount and the premium segment are still growing.

Driving an Audi is being part of a community, it’s a social status and a way to be proud of your achievement.

One of Audi’s main challenges today is to be greener and to reduce the consumption of its cars. Audi is not in advance in this domain and we really think that a 100% green Audi can be a huge hit.

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