audi advertising program
TRANSCRIPT
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The Audi emblem of the four rings denotes one of Germany's oldest automobile manufacturers. It
symbolizes the merger in 1932 of four previously independent motor vehicle manufacturers: Audi,
DKW, Horch and Wanderer. These companies are the foundation stones on which the present-day
AUDI AG is built.
HorchAt the end of the 19th century, there were already a number of car manufacturers in
Germany. One of them was August Horch & Cie., founded on November 14, 1899 in
Cologne. August Horch was one of the pioneer figures of automotive engineering. Before
setting up business on his own, he worked for Carl Benz in Mannheim for three years as
Head of Automobile Production.
In 1904, August Horch relocated his company to Zwickau and transformed it into a share-
issuing company. However, in 1909 August Horch withdrew from the company he had
founded, and set up a new enterprise under the name of "Audi".
Audi
The company established by August Horch in Zwickau on July 16, 1909 could not again take
its founder's name for reasons of fair trade. Horch found a new name for the company by
translating his name, which means "hark!", "listen!", into Latin. So it was that the second
company to have been set up by August Horch commenced operations under the name
Audi Automobilwerke GmbH, Zwickau, on April 25, 1910.
Wanderer
In 1885, the two mechanics Johann Baptist Winklhofer and Richard Adolf Jaenicke opened a
repair business for bicycles in Chemnitz. Shortly afterwards they began to make bicycles of
their own, since demand at that time was very high. These were sold under the brand name
Wanderer, and in 1896 the company itself began to trade as Wanderer Fahrradwerke AG.
Company History
Company History
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produced under the brand name "Audi". A new era had begun in another sense, too: the
Volkswagen Group acquired the Ingolstadt-based company in 1965.
NSU
NSU was founded in 1873 in Riedlingen, on the Danube, by the two Swabian mechanics
Christian Schmidt and Heinrich Stoll. Seven years later they moved the company to
Neckarsulm. For its first twenty years, the company manufactured knitting machines.
Neckarsulmer Strickmaschinenfabrik
diversified into bicycles in 1886. From then on, the bicycle was to have a decisive influence
on the company's fortunes. Motorcycle production commenced at NSU in 1901, and five
years later the first motor car was built there. Automobile production activities were halted
again in 1929, to allow the company to concentrate on building two-wheelers. It was almost
thirty years later, in 1958, that production of cars recommenced in Neckarsulm.
On March 10, 1969, Auto Union GmbH of Ingolstadt merged with NSU Motorenwerke AG, of
Neckarsulm. The new company bearing the name Audi NSU Auto Union AG, with its head
offices in Neckarsulm, was created retrospectively as of January 1.
AUDI AG
The last NSU left the production line in March 1977, and from then on the company
manufactured exclusively Audi cars. About this time, the company's bosses began to
consider streamlining the company's rather cumbersome name of Audi NSU Auto Union AG.
With the objective of giving the company and its products the same name, in 1985 Audi NSU
Auto Union AG was renamed simply AUDI AG. To coincide with the change of name, the
company's registered headquarters
were transferred from Neckarsulm to Ingolstadt.Together with the two traditional
companies Auto Union GmbH and NSU GmbH, Audi Tradition nurtures and presents the
deep and diverse history of Audi. The museum mobile at the Ingolstadt plant is open every
day of theweek from 10 a.m. to 8 p.m.; entrance is free.
AUDI AG develops and produces luxury cars and sold worldwide a total of 1,003,000 cars in
2008 and thus achieved its thirteenth consecutive record year. Audi produces vehicles in
Ingolstadt and Neckarsulm (Germany), Gyr (Hungary), Changchun (China) and Brussels(Belgium). Aurangabad in India saw the start of local production of the Audi A6 at the end of
2007 and of the Audi A4 in early October 2008. The company is active in more than 100
markets worldwide. AUDI AGs wholly owned subsidiaries include Automobili Lamborghini
Holding S.p.A. in SantAgata Bolognese (Italy) and Quattro
GmbH in Neckarsulm. Audi currently employs around 57,000 people worldwide, including
45,000 in Germany. The brand with the four rings invests more than 2 billion each year in
order to sustain the companys technological lead embodied in its Vorsprung durch
Technik slogan. Audi
plans to significantly increase the number of models in its portfolio by 2015 to 40
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The Indian automotive market
As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars
were sold in India in 2009 (an increase of 26%), making the country the second fastest
growing automobile market in the world. According to the Society of Indian Automobile
Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015
and more than 9 million by 2020.By 2050, the country is expected to top the world in carvolumes with approximately 611 million vehicles on the nation's roads.
Culture and Consumer Behaviour of the Indian Car market (Luxury)
The culture of vehicles in India is ever growing over the years this automotive market has
exploded with more and more people able to afford transportation on four wheels as
income levels have increased, Loans are easier to obtain this has given rise to competition
so fierce that when a company is out of the competition it is not even news.
Recent reports indicate that within 20-25 years the Indian car market can surpass that of theUnited states of America, this shows the rate at which the market has been expanding.
The Common perception is that in India people only by the Small cars, but that is a
misconception India has a rapidly growing Luxury car market with the Introduction of
Brands such as Jaguar, Land Rover , Porsche and soon to be launched Ferrari India has made
its presence felt around the world and has caught the attention of the automobile
companies
The Indian Market
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Some of the high end Companies that are present in India are
Mercedes Benz
BMW
Porsche
Bentley
Rolls-Royce
Ferrari
Audi
Over the years the Indian mind set of Save first spend later has been changing people arenow more willing to spend which is a very good thing especially in the Automotive sector.
The Indian Upper Middle and upper class have been fast growing and the need for luxury
cars to fit their self-esteem , ego and standard are the call for the day.The need to show of
their status in Society and get noticed has been increasing in the India
But some of the traditions still stick with luxury cars Cheap service , Mileage and Value for
money cars are still expected to be satisfied even in the luxury end of the market
BMW Mercedes and Audi have each sold more than 5000 cars in 2010 and are expecting
more sales this year
The Positive and encouraging culture for automobiles in India is a a good sign for these
companies in the future
Target market
Audi currently has 24% market share in the Indian markets and plans to push it upto 30%
which would bean around 25-30,000 Vehicles
Business class: Audi being the luxury car manufacturer has set its target market on the
business category of people, mostly people of the upper management as this is a high end
luxury car. Some of the Top officials in India have been using an Audi for quite a while and
Audi has been making a push harder into this market with offers and variants of its vehicles.
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The Target markets are
Age: 30-60
Income 50-80Lakh
Position: Home owner and highly placed at work, Married
Bollywood : Audi has been pushing its vehicles excessively to the Bollywood stars and is
essential in its success in India. Some of the Top Bollywood actors and actresses have
endorsed the Audi brand stars like Amitabh bachan , Aamir khan , Priyanka Chopra are some
of the many active users of Audi Vehicles. This category has been an important factor is
pushing up sales for the company over the years
Teenagers: Another major category of people are the teenagers who prefer buying the Audi
for its aggressive looks,power,performance and image .Usually from upper class familiesthe Teenage market has taken a very strong liking towards Audi Products which has created
a bigger market for them and is selling high
Women: Audi has also experienced high sales through women buyers as well and has
pushed the car in this category and has increased the spending on this over the past few
years
Age: 25-60
Income: 50-80 lakh
Position : House wife , Business women , Married or Single
Upper middle class : Audi has also taken keen interest on the Upper middle class and has
proven to be acceptors of the Lower end Audi Vehicles , this market has been a rapidly
growing market which his now ready to spend on acquiring luxury goods.
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Although the competition for the Audi vehicle has been ever increasing with the
introduction of companies like Porsche and Ferrari into the Indian market we are only going
to consider the two biggest competitors in the market assuming that the market is a three
horse race between these companies who are the largest market share holders. Audi
currently holds the third spot according to a market survey with 24% of the market share
The Product Portfolio of Audi In India contain
The Audi A8
The Audi A4
The Audi A6
The Audi Q5
The Audi Q7
The Audi R8
The Audi TT
Competition
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BMW India increased its market share in the luxury segment of the Indian automotive
market to over 40% in 2009 (from 9% at the end of 2006). With 3,619 cars delivered to
customers in the calendar year 2009, BMW India has achieved the "highest sales by a
manufacturer in the luxury car segment in a year" till date.
The company's top selling model in 2009 has been the BMW 3 Series at 1,155 units, while
the second best seller has been the 5 Series at 1,590 units. Despite the initial challenges, no
other country has shown the kind of growth that India has shown for the German carmaker.
Commenting on the occasion, Peter Kronschnabl, president, BMW India said, "We made
great strides in implementing our strategy, and this gave us a significant competitive edgethat provided us with a clearly formulated vision. Our goals were clear, and we had to be
consistent to realize them. Our business activities are, and will remain, focused on the long
term. The main trends that are relevant to our business - such as the demand for mobility
and the desire for differentiation - will remain unchanged."
2009 was not an easy year for the automotive industry - and that applies equally to BMW
India. It stood its ground in a fiercely competitive environment with new ideas and the
strength to promote new products. BMW India was prepared to meet the challenges head
on to ensure the company's success. These qualities enabled BMW India to effectively
weather the stormy conditions, continue to invest in its future, anticipate trends and be
prepared for the future. Despite all challenges, BMW India delivered strong operating
performance in 2009.
With a carefully planned and successfully executed market entry strategy, and consistent
sales performance, BMW India achieved market leadership in the luxury car segment in
India. Kronschnabl further added, "Now more than ever, we see that the number one
position in the market is not everything. But, the future belongs to India and if you want to
benefit from the dynamics of the Indian market later, you need to act today. This is what we
did. Our commitment to India was among the strategic decisions that had to be taken right
away."
BMW
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BMW group took a bold step in its Asia strategy in 2007 by establishing the BMW India
headquarters in Gurgaon (National Capital Region), a Central Parts Warehouse in Mumbai,
and the BMW Plant Chennai in Tamil Nadu. Presently, the BMW Plant Chennai produces the
BMW 3 Series and BMW 5 Series sedans in petrol and diesel variants and has a capacity to
produce 3,000 units per year on a single shift basis. In medium term, BMW India has
employed around 200 people; up to 600 additional jobs have been created in the
Mercedes-Benz posted record sales in India in the first half of 2010 and high growth rates
enabled it to gain substantial market share. Sales rose by 69 percent in the first six months
of the year and a total of 2,500 vehicles were delivered to customers. Mercedes-Benz sawsales climb by 83 percent in June alone.
Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes-Benz Cars:
Sales substantially exceeded our expectations in the first half of 2010, supported in
particular by the success of the new E-Class. We are currently the strongest premium brand
in India and we want to build on our success in the second half of the year and expand our
market position. As was the case in the first six months, we are also aiming to achieve
record sales for the full year 2010. Mercedes-Benz sold a total of 3,200 units in India in
2009.
India is currently the third-largest automotive growth market in the world. We expectIndias premium segment to grow more rapidly than the market as a whole in the coming
years, says Schmidt. Mercedes-Benz aims to have a corresponding share of this growth.
The basis for this growth is a large number of attractive products. We offer customers a
broader range of products than any other premium brand. Currently we have supplemented
this lineup with another fascinating vehicle: The Mercedes-Benz SLS AMG super sports car is
available in India now. In India, Mercedes-Benz offers a total of 30 models in eleven
product segments.
The new E-Class was introduced to the Indian market in October 2009. Like the S-Class
sedan, the E-Class sedan took the lead in its segment in the first half of 2010. Sales of the E-Class sedan jumped by 109 percent in the first six months of the year to 1,000 vehicles. Sales
Mercedes
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of the S-Class sedan grew by 25 percent during this period. The M-Class was also the top-
selling car in its segment during the first half of the year, sales of the SUV increased by 30
percent. The C-Class sedan posted strong growth as well, with sales increasing by 53 percent
and was the market leader in its segment in June.
Advertising Concept, Media Strategy and Medium vehicle
The Ecosystem
All advertisements through every medium will carry large similarities to other mediums
throughout creating a similar ecosystem for eg. If the Video ad has strong elements of Black
and White colour all other mediums will also have strong mediums of black and white
colouring
The Lust Campaign
Message Objective
The Simple objective of the marketing strategy is too attract the Younger audience in the ad
and project the Audi Brand as a grand and luxurious affair that people will Lust to have, the
Audi Car has been projected as a Women of desire, one that every man wants
The Marketing Tools
The Marketing will take place across all mediums of promotion
The Advertisement
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Television
The Ad will run on several popular news and entertainment channels in India..The
advertisement will be played during prime viewing hours. The Commercial will be played for
a duration of one minute initially and gradually come down to a 30 second advertisement (
the same ad will be edited to fit the criteria)
Since the ad has been shot with a balancing act in between Youth and the Elders the
channels selected will be based on these criterias
All channels used will be national channels no local channels will be used keeping in mind
the reputation Audi has
News Papers and Magazines
The newspapers selected for the Print Ad will be only the top newspapers only on theNational level . No local newspapers or magazines will be used keeping in mind the Brand
perception and value of the newspaper and magazine with relation to Audi
The newspaper ad will circulate every weekend and on Mondays initially large sized
advertisements will be used that will eventually be brought down
The Internet
The internet is where Audi will do its most marketing we live in the social age so being
connected is the recent thing using digital advertising signs and Social networking sites
along with Video centric sites has become the norm for most of the companies . Audi will
also use these mediums extensively for the information and advertising part as it is a
medium of endless possibilities and comes at an economical price the internet will be used
at the same intensity through
Billboards and Signs
This form of advertising will be put up to make aware of a new product launch or a major
offer being announced . The advertisement will be of the same concept as our Advertising
Ecosystem to maintain similarity
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Project Written by
Madhuri Chauhan
Sasank Reddy
Abdul Ahad
D.Shiva Kumar