Marketing Excellence Case-Audi

Presented by:
Anusha. K
Atanu Mondal
Kalpana. A
Satabdi Roy
Sucharita Kheto
Agenda
Know the Company:
• Profile
1 • History
• Market Analysis
• Advancement through technology

2 SWOT Analysis
Marketing Mix of Audi

3 Are Customer Loyalty programs

Necessary?

Customer Lifetime Value

4

Building long term relationships??

5
 Profile

Volkswagen Group Ingolstadt, Germany 84,435 11 Production Facilities

9 Countries

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2,024,881 58.42 billion Euros
Source: Wikipedia
TimeLine

Foundation of Audi Auto Union + NSU Motorenwerke Renamed to Audi

1986
1909 1969 1985

1932 1971
Repositioned as Luxury
• Four Ring Emblem Vorsprung Durch Technik Premium Car
• Auto Union

Source: Kotler and Kotler

 Market Analysis
Segmentation Target

Geographic Demographic Psychographic Country Driving

Positioning

Sports Luxury
Advancement through technology

Quattro E-tron

Advanced Audi Sport

Technologies

Source: https://www.audi.co.uk/audi-innovation
 SWOT Analysis

Strengths Weakness Opportunities Threats

• Tier two luxury • Saturation in
• Brand Name • Demand for luxury car
brand
• Investment in premium cars in markets
• High maintenance
latest Asian markets • Competition
cost
technologies • Increased focus
• Large product on brand
portfolio promotion and
• Stylish look brand
communication
Marketing mix of Audi
Product Price

• Sedan, SUV, sports. • Geographical location and

• A8 – Benchmark for design & economic conditions
technology. • Optional pricing strategy
• R8- famous for polarizing loo
ks & advanced aluminum sp
ace frame.

Place Promotion

• Untouched market in India • FIS Ski World Cup

and other Asian countries • Supporting The Kieler Woch
e
• Vehicle partner of Real Madr
id
Are Customer Loyalty programs Necessary?
• Audi’s market share is less compared to BMW and 2500000
Benz
2000000

• In Audi’s sales, almost 50% sales are from past 1500000 Audi
customers 1000000
Mercedes
BMW

• As per new foresight research in 2015, 95% of Audi 500000

buyers are highly likely to recommend their brand 0

2010 2013 2017

Sales of Audi, Mercedes & BMW

Lifetime value of an Audi customer
CLV formula

CLV =

CLV calculation
Number of cars sold in 2017 – 1878100
Total profit – 4761 million EUR

Assumptions:
Average retention rate over the years ≈ 35%
Acquisition cost per customer = 1000 EUR
Discount rate = 10%
 CLV calculation
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
No. of customers 1878100 1126860 788802 552161 441729 353383

Margin per customer(EUR) 2550 2700 2800 2900 3000

Acquisition cost per custo 1000

mer(EUR)

Total cost or profit(mEUR) -1878.1 2873.5 2130 1518.4 1281 1060

Present value(mEUR) -1878.1 2612.3 1760.3 1161 875 658

CLV = 7066.6 – 1878.1 = 5188.5 million Euro

CLV per customer = 5188.5/1.8781 = 2763 Euro

Building long term relationships

Special repair services Lower the fuel Enhance the

with discounts and consumption driving experience
in house maintenance

Merchandise and Gift Free memberships Special parking

vouchers delivery on at Elite Clubs zones in hotels for
special occasions Audi customers
 References
• https://www.audi-mediacenter.com/en/press-releases/1878100-automobiles-soldau
di-closes-2017-with-new-record-breaking-sales-9723

• https://www.statista.com/statistics/275422/operational-results-for-the-car-manufactu
rer-audi/

• https://www.audi.co.uk/audi-innovation

• https://en.wikipedia.org/wiki/Audi

• http://socioline.ru/files/5/283/kotler_keller_-_marketing_management_14th_edition.p
df

• https://www.marketing91.com/swot-analysis-of-audi/
Thank you