BSB6005 Marketing Management and Planning 2

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BSB6005 Marketing Management and Planning 2

Executive Summary

The purpose of this report is to examine and analyse the key marketing strategies of one of the most recognisable car brands in the world, Audi. Audi is a German luxury automobile manufacturing company which was first established in 1932 by August Horch.

This report will firstly explain and highlight the key issues of Audi which were identified within the analysis of Audi’s marketing plan. Subsequently, the report will then explore the key marketing objectives of Audi, focusing on the present situation and reviewing the future objectives of Audi.

The target market of Audi is also explored in this report as Audi’s target market is a key factor to consider when understanding Audi’s purpose and reasoning behind their marketing strategies. Additionally, the positioning and situational analysis of Audi will also be examined.

Lastly the report will discuss the marketing mix of Audi and accentuate key areas of Audi’s marketing plan.

1. Identified Issues

1.1 Strong competition

Although Audi is considered to be a very successful and popular luxury car manufacturer, there is a significant amount of competitors which impact Audi’s success and overall performance. It is important for Audi to consider all competitors and their activities when developing new products and marketing strategies as Audi’s market share can fluctuate and change very easily. According to the graph below, Mercedes-Benz, BMW and Lexus are all luxury car manufacturers which have a larger market share than Audi.

1.2 Lack of Diversification

One thing that many luxury car manufacturers do effectively is diversification. BMW as an example has a large range of car series which are designed to cater for different customer demographics and social class. This allows customers to feel in control of their choice and gives customers more options to consider when finding a car which is more tailored to the customer’s needs. Audi has failed to diversify effectively which allows many competitors to take advantage of this weakness of Audi, .

2. Marketing Objectives

2.1 Current Situation

The marketing environment is incredibly important for all organisations to analyse as it plays a very substantial part in the performance and success of the organisation. Analysis the current market environment of Audi enables the organisation to make more appropriate decisions and prepares the organisations for any threats, opportunities or drastic changes which may occur within the market. Taking advantage of strengths and minimising weaknesses is also incredibly important when trying to increase market share and overall performance.

Audi has already developed a very strong brand reputation and is one of the top car manufacturers in the world. Audi is currently targeting the younger demographic, relying on customers that want to have a more unique car rather than the typical BMW cars and Mercedes-Benz cars which are generally owned by the older demographic. Audi chose a market position which other competitors could not diversify into without disrupting their overall reputation and market position. Competitors such as BMW and Mercedes are unable to position their brand as a luxury, prestigious and high-status car brand while also competing with Audi which is considered to be sportier, rebellious and defiant.

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BSB6005 Marketing Management and Planning 2
Last updated: Feb 2024

Page 1

Audi has already developed a very strong brand reputation and is one of the top car manufacturers in the world. Audi is currently targeting the younger demographic, relying on customers that want to have a more unique car rather than the typical BMW cars and Mercedes-Benz cars which are generally owned by the older demographic. Audi chose a market position which other competitors could not diversify into without disrupting their overall reputation and market position. Competitors such as BMW and Mercedes are unable to position their brand as a luxury, prestigious and high-status car brand while also competing with Audi which is considered to be sportier, rebellious and defiant.

2.2 Objectives

  • Maintain a positive market image with the younger market
  • Due to the larger number of competitors, Audi must ensure that the company maintains are positive market image in order to continuously attract new customers. Audi has recently released plans of the Audi A3 which will be Audi’s cheapest luxury car yet and with a price lower than $30,000 the younger demographic will be greatly attracted to this new Model. Although this may seem great for younger demographics which are happy to pay less for a luxury car, many Audi customers which want a prestigious and high-status brand may not appreciate this change. Therefore, it is Audi’s main objective to provide great value and attract the younger demographic, whilst still maintaining Audi’s great luxury reputation and market position.

  • Develop an effective customer mix
  • Audi has been criticised about its market strategies only attracting the younger demographic, as the younger demographic will generally have less income than the older demographic. This discourages the older demographic as they feel that they are getting a cheaper sports car, rather than a luxurious and prestige car. Thus, why it is important for Audi is to develop a more diverse customer mix, which means that the Audi brand name will be attractive to more demographics, according to . The Audi company has not been able to diversify its brand effectively, which has limited the company’s market position and consequently, limited the company’s sales performance.

  • Continuous market share growth
  • Audi has been able to achieve very high market share growth over the past decade and the company has an objective to maintain this great market growth. As seen in the graph above, the market share of Audi has been constantly rising, whilst other companies have been fluctuating. Audi’s market share has almost tripled within the past decade, and Audi wishes to continue growing at a rapid rate, .

    3. Target market

    Customers of Audi are typically successful middle aged men who are looking for a luxury sports car. Recent designs and marketing strategies have been implemented in an attempt to target a younger audience and distance the brand from the perception of an “older mans” car according to (Fallah, 2012). The price range of vehicles has remained relatively constant as an upscale luxury brand; however, there has been discussion of introducing a mid-priced car in order to target the lower end of the scale in terms of pricing.

    Currently,…

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    BSB6005 Marketing Management and Planning 2
    Last updated: Feb 2024

    Page 2

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