Audi in China

Group Members : Prashant Sen (56) Priyojeet Kumar (61) Soumik () Vipul Aurange ()

Ques 1 : How Audi entered in China and established as a dominant car manufacturer in the country?

Entrance in China

1986 - Contacted FAW for feasibility study on automobile technology 1988 - Agreement with FAW for production of AUDI 100 1990 - Joint venture of VW-FAW 1991 - Set up an assembly line to produce 150,000 units annually Positioning as a car for politically elite people and targeting the niche segment 1996 - Launched Audi 200 with advanced V6 engine Continued to launch new models every year in China 2013 - Manufactures 3 models and imports 22 models

Journey to dominance as a Car manufacturer

1996 Expert team formed which looked into sales, marketing, PR and after sales. Continuous Technological up gradation/adaptation Focus on Customer Satisfaction Formulated Strategies keeping in mind the cultural sensitivities Competitive pricing mechanism Differentiated & Customized vehicles as per the needs of the market (Geocentric approach)

Ques 2 : Sales and distribution was the basis of Audis success in China. Discuss.

Sales & Distribution strategies that contributed to Audis success in China

Independent Distribution Network Establishing Concept Showrooms for re-positioning & attracting young customers Organizing seminars for dealers to explain them about the product display Establishing Audi Sales Division Expanding dealership network and targeting Tier III & Tier IV cities Setting up a plant in Foshan, China (Source: Official Website)

Ques 3 : Analyze Audis brand building strategy in China and comment on its role in the companys success in that country.

Organising events and partnering with World Economic Forum (WEF) 2010 - Audi sponsored Audi Art and Design Award Association with sporting events Contracting internationally renowned Chinese celebrities as Brand Ambassadors Official Partner in 2008 Beijing Olympics Launching print and television advertisement Launched mobile gaming apps Organizing events for the customers (Audi Design Trip) to be explained about the designs by the top designers Launching Audi Connect for customer support CSR activities Audi Driving Dreams

Ques 4 : What are the challenges facing the company in the Chinese market? How should it manage these to keep its growth story intact?

Challenges faced by Audi in Chinese Market

1. 2. 3.

Changes in government policy Image as a car for government official Rising competition in China

Strategies to manage these challenges

Launch new models that have adapted the specifications mentioned by the Government Deciding the price as per the price bracket issued by the Government Continuous up-gradation and offering new accessories Ad campaigns like Blackberry (Were the Blackberry boys) Feature Audi car in movies Keep track of the competitors

Thank You!!!