AUDI: The leader in the premium car market in China.
Introduction:
Audi is the biggest luxury car brand on Chinese soil for the world automobile industry.
In 2007: Audi represented 45% of the premium car sales in China with more than 100.000 sedans sold.
2010: Audi AG sold a total of 51,449 vehicles in China's mainland and Hong Kong in the first quarter of 2010, up to 77% from a year earlier, achieving its best quarterly sales ever in the Chinese market.
Outline:
1. Historical context
Production Process
Products and Strategy
Competitors and Prices
Supply chain
Strategy
Brand and Promotions
Hypothesis: Wan Gang, Politics and Audi’s success.
1. Historical context
1988-1996: production of Audi cars within the Volkswagen-First Automobile Works (FAW) joint-venture.
Audi 100: 1991
Audi 200: 1994
1996: New Joint-Venture created between Audi, VW and FAW: establishment of Audi China company created.
All planed since 1996: division between VW and Audi fields of activity:
«Family Cars» market
Luxurious « Premium Cars» market
VW-FAW already felt the mutual-exclusiveness of selling basic and luxurious cars by the same company. Therefore created Audi-FAW as a premium car-selling firm in China.
In 1996, creation of an expert committee to evaluate the best entrance strategy in the Chinese premium market.
Followed then by production and sales of Audi A6 in Changchun, first premium vehicle produced in China, first step to Audi’s success.
Price level to adopt when entering the market: success! Chinese consumers as «traditionally - oriented» and «theoretically - oriented».
2. Production Process:
1996: Newly created Audi China started producing of Audi 100, then Audi 200 in FAW-VW factory in Changchun.
1999-2000: introduction of the Audi A6 onto the Chinese Market, which marked a brutal transition towards luxurious premium cars market.
Introduction of...