Operational marketing
I. Product:
- Since the company's creation in 1909, Audi's models have met with great success, first in the field of motor sports, then with the general public. The image of Audi was non-specialized because it was perceived as a mid-range manufacturer, producing car with a classic style offering safety and security to an essentially family target.
- At the end of the 1980s the company made a significant strategic change of direction about repositioning the brand in the "premium" segment which is between general public (for example, Ford, Peugeot) and luxury car segment (for example, Bentley, Jaguar). Audi focused on two objectives:
1. Make a clearer distinction between Audi brand and other brands marketed by Volkswagen Group
2. Differentiate Audi from its competitors, particularly BMW and Mercedes
- Many new technologies are applied in Audi's products: the "quattro" system, permanent four-wheel drive, the TDI technology - a direct injection diesel engine, and the use of alumium
II. Price
The "premium" segment is associated with high price. The high price allows customer to enhance experience with high technology, personal customer service and use a product with strong image. Therefore, Audi has chosen to target a clientele with high income level and strong geographic mobility.
Audi approaches premium pricing strategy as it seeks to differentiate itself from its competitors through the technological superiority of the model it sells and by the quality of the serviced offered, which applies to all dealerships, everywhere in the world.
III. Distribution
The three main market of Audi are: European (not including Germany) where it makes 45% of its sales, Germany (local market) 25.7% and China 11.9%. It shows that Audi has exclusive distribution when most of Audi manufacturers (100% owned and joint-venture) are located in Germany, European countries (Belgium, Hungary) and China where are also the main market. More recently, the...