AUDI

Audi: Marketing Tactics and Strategic Evolution

[Name of the Institute]

Audi: Marketing Tactics and Strategic Evolution

Introduction

Audi AG, with headquarters in Ingolstadt in Bavaria is a German automobile manufacturer. The brand name is a pun to circumvent the naming rights of the former motor vehicle manufacturer Horch .Today, Audi is one of the three major automobile manufacturers in the premium segment. As a worldwide developer, and manufacturer of quality cars and engines Audi have three production sites in Germany, Hungary, Brazil and China.. In this paper, we will discuss two aspects of the company's management which leads to productivity and success of the organization. This paper explores the marketing evolution and tactics of Audi in terms of technology, innovation and branding. Also, the paper discusses the importance of strategic alliances which contributes to the innovation, its key to marketing success.

Innovation

Audi has developed many technical innovations. In fact, Audi has become a globally respected producer for their continued product innovation and commitment to progress. Today, it focuses on meeting the needs of its customers in the luxury car segment, to build a brand that conveys individuality, exclusivity and excellence. Much of the success of this brand depend on their technological capabilities. Audi was the first automaker to develop catalytic converters and a range of products in the '80s. In 1972, it came with a negative, track-stabilizing steering roll radius at the Audi 80. Furthermore, is famous for the system of four-wheel drive Quattro, an electronically controlled system that automatically distributes traction between the wheels in fractions of seconds, resulting in greater stability and control in all ground conditions (Cohen, Basu, 1997, pp. 455-472). After entering the luxury car segment in the early '90s, Audi is well positioned in relation to competition in defining elements of innovation in design, safety and performance. Since that time, the company enjoyed record results that beats its line and became known worldwide.

Although product innovation is at the heart of the company, represents only a piece of the plan of success for the brand. Audi executives acknowledged that differentiate needed to achieve satisfactory performance with the most important indicator of success in the industry: the repurchase of the customer. The repurchase rate was lower than its direct competitors. The company was prepared to change the competitive landscape, without sacrificing innovation component of the product. Audi believed to change the customer experience through the CRM boost retention.

In 1999, Audi declared CRM as a core competency in developing the necessary infrastructure to improve marketing, sales and services at all points of customer contact. However, at that time, Audi did not have the tools or processes to achieve that goal. The company planned to build a central database and act on that information to produce the interactions necessary to meet the needs of customers. In April 2002, Audi introduced the mySAP-CRM to accomplish this initiative (Chao, 1993, pp. 291-306).

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