Greatness starts , when you don’t stop.

ESTABLISHMENT

• In 1899 August Horch started August Horch & Cie.

• Horch had previously worked with Carl Benz.

• In 1909 Horch left the company and immediately set up a second car venture “AUDI” .

• Audi was internationally known due to the Austrian Alpine Runs between 1911 & 1914.

GREATNES STARTS , WHEN YOU DON’T STOP.

IT HAS DONE SOMETHING MORE THAN INNOVATION MAKING ITSELF GREAT BY STICKING TO IT’S MISSION STATEMENT “ PROGRESS THROUGH TECHNOLOGY”

FROM QUATTRO

FOUR WHEEL DRIVE

FIRST HYBRID

VEHICLES

ACHIEVEMENTS MADE BY

THEIR INNOVATIONS AND IDEAS

A WHOLE NEW CONCEPT OF VIRTUAL EXPERIENCE IN

LONDON , BEIJING & BERLIN

SPONSORSHIP

AUDIPORSCHE

BMW

MERCEDES BENZ

VOLKSWAGEN

JAGUAR

Average selling price of an Audi is still lower than an average selling price of a BMW

New entrants with environmentally sustainable cars like TESLA – Potential Competitors

WE NEED AN ACTION PLAN

• BUILDING LOYALTY

• BRAND COMMUNITIES

• CULTIVATING CUSTOMER RELATIONSHIPS Customer Empowerment Customer Recommendations Customer Complaints

SHARE A CERTAIN SIMILAR CONSCIOUSNESS , TRADITIONS , STORIES AND A MORAL RESPONSIBILTY

WHY ?

They can customize market offerings , services , programs , messages and media.

THUS , ITS ESSENTIAL TO HAVE MANY ‘CUSTOMER TOUCH POINTS’

Customers prefer to be acknowledged individually .

A personal touch can create miracles in establishing long ties with customers .

How important is it to invest in customer loyalty for cars , a product most people buy only every couple of years ?

• To gain customer loyalty we need to gain satisfaction , service , quality and a good feedback from customer .

• An achieved customer loyalty brings us : Repeat Business Greater Volume Cross-selling Opportunities Protects You From the Competitions Word-of-Mouth Marketing Benefit of the Doubt

Estimation of lifetime value of an Audi customer .

• The lifetime value (LTV) of your customer is loosely defined as the net money a customer contributes over their life as a customer.

• Lest roughly assume that Audi profit per vehicle is $6000 . On average a customer purchase car after every 5 years and in life time purchases 10 cars so profit from a customer will be $60000 so at 15% of discount rate the NPV will be CLV for an Audi.

What measures should Audi take to build long term loyalty relationships ?

• Build best communication means with customer .

• Try to follow each customer needs & expectation & make relevent promotion and communication with customers .

• Design a comprehensive , point-by-point marketing & communication plan for each of the customer profiles Audi have made .

• By designing a communication & marketing strategy to keep customers coming back again & again .

SUMMARY

DISCLAIMER

CREATED BY SWARANG CHANDWASKAR , NIT SURAT DURING MARKETING

MANAGEMENT INTERNSHIP UNDER PROFESSOR SAMEER MATHUR , IIM

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