THE CAR THAT EVERYONE WANTS

IT HAS DONE SOMETHING MORE THAN INNOVATION

MAKING ITSELF GREAT BY STICKING TO

ITS MISSION STATEMENT PROGRESS
THROUGH TECHNOLOGY
FROM QUATTRO FOUR WHEEL DRIVE TO
FIRST HYBRID VEHICLES

PUTTING ITS INNOVATION INTO PRATICE

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

2000 2013 2013(CHINA)

AUDI 653,000 1.58 million 492,000

BMW 822,000 1.66 million 360,000

MERCEDES-BENZ 1.053 million 1.46 million 228,000

Grey areas
Average selling price of an Audi is still lower than an
average BMW
New entrants with environmentally-sustainable cars
like Tesla POTENTIAL COMPETITORS!!

Lets devise an action plan

ACTION PLAN
BUILDING LOYALTY
BRAND COMMUNITIES
CULTIVATING CUSTOMER RELATIONSHIPS
Customer Empowerment
Customer Recommendations
Customer Complaints
 Loyalty

Incentives
Make them
Special
Give them more
than expected
Customer satisfaction
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 MARKETING
Customers 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 Business
Greater Volume
Cross-selling Opportunities
Protects You From the Competition
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 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 customer
2) 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 ?
SUMMARY
A BRIEF STORY OF HOW AUDI CAME INTO BEING
UNDERLYING ISSUES
HOW TO TACKLE THE PROBLEMS
importance 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