CASE 1-1 AUDI By : Luksi Visita Miftahul Jannah Riska Fii Ahsani Mufti Alam Adha Afrima Widanti

AUDI COMPANY PROFILE 2014 Audi Group has long been one of the most successful car manufacturers in the premium and supercar segment. Audi Group  Lamborghini brands, Volkswagen Group brands, motorcycles Ducati Brands The Audi Group again performed very successfully in 2013 despite only moderate global economic growth. With a total of 1,575,480 (1,455,123) Audi vehicles sold worldwide, the company thus achieved its strategic milestone target of 1.5 million units

2013 AUDI TOTAL SALES : Audi vehicles deliveries by Region 2013Share in Percent Germany 250,02515,9 Europe excluding Germany 427,70926,8 China (incl. Hong Kong) 491,98931,2 USA 158,06110,0 Other 252, Total 1,575,

AUDI VISION, MISSION, AND GOALS Vision: “Audi – the premium brand” Mission: “We delight customers worldwide” GOALS: Superior financial strength, Continuous growth, Top image position and customer mix, Leaders in innovations, Attractive employer worldwide, Sustainability of products and processes. We define innovation We create experiences We live responsibility We shape Audi

CONTENT OF STUDY CASE Winterkom’s work hard got result for the last 2 decades  That effort is realized in making: technology, design, and performance Audi chief’s got priority in 2005 which is getting a lot of profits. Audi by the management of Winterkom compete by fixing obstacles especially in electronics The increasing profit of Audi selling also will increase Volkwagen’s profit In 2004 Audi got operating margin 5,5% while in this periode Audi targeting operating margin for about 8%  Audi also have to invest mostly in marketing and distribution in Europe and to synchronize the global achievement of BMW and Mercedes  Eventhough Audi already become market leader in Chinese’s luxury car, with selling point reach 65%. In Japan, Audi still lose much compared to BMW and Mercedes 

PROBLEM IDENTIFICATION Audi’s inability to win BMW in US in AWD innovation and price innovation feature and enforcement with leasing and dealer company. The result is customer choose BMW more which gives cheaper credit Audi’s lateness and losing momentum to produce SUV as new products choice  the result is SUV market share is taken by competitor (for about 20% - 30%) There is a decreasing quality perception by US customer since incident in 2008  Audi is seen need to build quality reputation Dollar lemah, and the US dealer network is not really good

RECOMMENDATION & DISCUSSION First step of Audi is product differentiation, fixing the defects and previous mistakes Marketing Research  By conducting correct marketing research, Audi can able to understand what the customers want. Audi could maximize marketing communication to rebuild its reputation among US customers, and by delivering their value to the customers. This can be conducted for example by endorsement of important figures in US, talkshow in television, and do a marketing integration by all media that can be used.

LAST RECOMMENDATION IS BY MAXIMIZING THE ALTERNATIVE RECOMMENDATION IN USA Add the guarantee time service for Audi Make the access easier for customers to buy spare-part Make the dealer network in US stronger Having a partnership and agreement with leasing company in US so it will be easier for customers to buy Audi

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