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THE CAR THAT EVERYONE WANTS

IT HAS DONE SOMETHING MORE THAN INNOVATIONMAKING ITSELF GREAT BY STICKING TO ITS MISSION STATEMENT PROGRESS THROUGH TECHNOLOGY

FROM QUATTRO FOUR WHEEL DRIVE TO FIRST HYBRID VEHICLESPUTTING ITS INNOVATION INTO PRATICE

A whole new concept of virtual experience in London, Beijing and Berlin.

Sales200020132013(CHINA)AUDI653,0001.58 million492,000BMW822,0001.66 million360,000MERCEDES-BENZ1.053 million1.46 million228,000

84% SALES OUTSIDE GERMANY

Grey areasAverage selling price of an Audi is still lower than an average BMWNew entrants with environmentally-sustainable cars like Tesla POTENTIAL COMPETITORS!!

Lets devise an action plan

ACTION PLANBUILDING LOYALTYBRAND COMMUNITIESCULTIVATING CUSTOMER RELATIONSHIPS Customer Empowerment Customer Recommendations Customer Complaints

BRAND COMMUNITIES share a certain similar consciousness, traditions and stories and a moral responsibility.

Why?

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

Thus, its essential to have many CUSTOMER TOUCH POINTS

PERSONALISED MARKETINGCustomers prefer to be acknowledged individually.A personal touch can create miracles in establish long ties with customers.

How important is it 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 BusinessGreater VolumeCross-selling OpportunitiesProtects You From the CompetitionWord-of-Mouth MarketingBenefit 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 are every 5 years and in life Time purchases 10 cars so profit from on customer will be$60,000so at 15% of discount rate the NPV will be CLV for an Audi.

What measures should Audi take to build long term loyalty relationships?By taking following steps Audi can build long term loyalty relationships.1)Audi have to build best communication mean with customer. Try to follow each customer needs and expectation and make relevant promotion and communication with customer2) Design a comprehensive, point-by-point marketing and communications plan for each of the customer profiles Audi have made.3) By designing a communications and marketing strategy to keep customers coming back again and again.4)In case existing customer left try to work and know why ?

SUMMARYA BRIEF STORY OF HOW AUDI CAME INTO BEINGUNDERLYING ISSUESHOW TO TACKLE THE PROBLEMSimportance of investing in customer loyalty.Estimation of lifetime value of an Audi customer.measures should Audi take to build long term loyalty relationships.

DISCLAIMER CREATED BY P .Srinath Reddy DURING A MARKETING MANAGEMENT INTERNSHIP UNDER PROFESSOR SAMEER MATHUR , IIM-LUCKNOW