Marketing Mix of Audi and 4Ps (Updated 2024)

The Marketing mix of Audi analyses the 4Ps of Audi’s marketing and distribution strategy, which includes the Product, Price, Place, and Promotion of Audi’s luxury vehicles. Audi is a German-based car manufacturing company known worldwide as one of the big three luxury car manufacturers. Audi is the biggest luxury car manufacturing company, along with Mercedes and BMW. Audi oversees all its global production from its headquarters in Bavaria, Germany, and has nine worldwide production facilities that manufacture their vehicles.

Audi has been a majority-owned subsidiary group of Volkswagen since 1966, after a purchase by Daimler-Benz of Audi’s predecessor group, Auto Union. Volkswagen re-launched the Audi brand with the F103 series. Audi has gone on to carve itself a niche as a luxury brand and a quality manufacturer of automobiles, producing aesthetically pleasing designs combined with a satisfying drive and being mechanically reliable.

Audi has been selling their luxury cars in India since 2004. In 2007, Audi India was established as a Volkswagen Group Sales India division. It began to set up long-term plans involving large-scale investments in internet marketing, recruitment drives, and high-quality sales services to meet its goal of becoming the number one luxury car to be driven in India. Audi is represented in 110 countries worldwide.

About Audi

• Type: Subsidiary
• Industry: Automotive
• Founded: July 16, 1909
• Founders: August Horch
• Headquarters: Ingolstadt, Bavaria, Germany
• Area served: Worldwide
• Current CEO: Markus Duesmann
• Number of employees: 99,600
• Major Products: Luxury vehicles, race cars, and electric vehicles

Audi Product Strategy

In the early 1990s, Audi had problems with its microprocessors, causing electronic failures that threatened the company’s reputation, especially in the American market. Audi has worked hard to remedy the problems, and their new motor cars today have much fewer issues with the electronics, as new and improved technology is found. Audi has added to their range and now offers a wider variety of cars, from the A1 to the company’s venture into the 4×4 market with the Q5 and Q7. The Audi A4 remains popular, as does the impressive-looking Audi TT. As one of Germany’s Big Three premium car manufacturing companies, Audi is one of the world’s top-selling luxury sports car brands. In late 2009, Audi posted profits of $1.85 billion. In 2012, the company enjoyed a 10% increase in sales.

Audi has a good presence in the mass market in India, boosted by the opening of a production plant in 2007. As a result, many of the vehicles from the Audi range are available, and car owners can go to Audi garages to repair and maintain their vehicles properly. Audi India sold 3,003 units in India in 2010 and 10,002 units in 2013, showing 200% growth in 3 years.

Audi offers a diverse product mix that caters to various segments of the luxury car market. The new Product, Mix of Audi in 2023, is as follows (Source)

1. Sedans and Limousines: Audi offers a range of sedans and limousines, including the A3, A4, A6, and A8, as well as their S and RS performance variants. These vehicles are known for their luxury, performance, and advanced technology features.
2. SUVs and Crossover: The Audi SUV and crossover lineup includes the Q2, Q3, Q5, Q7, and Q8, along with their respective performance variants (SQ and RSQ models). These vehicles combine the comfort and features of luxury cars with the versatility and space of SUVs.
3. Coupes and Convertibles: Audi’s range of coupes and convertibles includes the A5, S5, RS5, TT, and the R8. These models are designed for those seeking sportiness and an engaging driving experience, with options ranging from compact sports cars to high-performance supercars.
4. Electric Vehicles (EVs): Audi has been expanding its electric vehicle offerings with the e-tron series, including SUVs like the e-tron and e-tron Sportback and the e-tron GT, a high-performance electric sports car. These models represent Audi’s commitment to sustainable mobility.
5. Sportback Models: The Sportback models, available in various series like the A5, A7, and RS7, offer a blend of sedan and hatchback designs. They provide a unique combination of style, space, and performance.
6. Avant (Station Wagons): Audi’s Avant range, available in models like the A4 Avant and A6 Avant, caters to those who need more space and practicality but want to maintain a high level of luxury and performance.
7. Hybrid Models: Audi also offers hybrid variants of popular models, like the Q5 hybrid and A8 hybrid, blending fuel efficiency and reduced emissions with luxury and performance.

Audi Place Strategy

Presently, Audi has 28 dealerships across 11 states in India, and in 2010, Audi India reported an increase in sales, compared to the previous year, of 81%. In mid-2014, Audi India will start production of its premium sedan, the A3, at its facility in Aurangabad and sell it across its dealerships in the country.

Although based in Germany, Audi has a worldwide presence and continues to be a prolific seller of motor cars. The company has set out significant plans and investments in markets such as India to achieve long-term goals, and it continues to grow in Asian countries. Establishing and maintaining a successful premium brand globally, a presence through exclusive dealerships, and excellent aftercare services are being used by the company to build on its European reputation. Production numbers for the Audi Company are impressive, with well over a million vehicles being produced in 2013.

Here is the Place Strategy of Audi:

1. Global Dealership Network: Audi maintains an extensive global dealership network, ensuring its presence in major markets worldwide. These dealerships offer sales, service, and customer support, reinforcing Audi’s global brand presence and accessibility.
2. Luxury Showrooms and Experience Centers: Audi’s showrooms and experience centers are strategically located in premium locations, reflecting the brand’s luxury image. These spaces are designed to offer customers a high-end experience, showcasing the latest models and technologies.
3. Online Sales Platforms: Embracing digital trends, Audi offers online platforms where customers can explore, customize, and even purchase vehicles. This approach caters to the modern consumer’s preference for digital convenience and accessibility.
4. Strategic Partnerships and Collaborations: Audi collaborates with various partners, including dealers, suppliers, and technology companies, to enhance its distribution and service network. These partnerships help Audi to manage its supply chain efficiently and provide superior customer experiences.
5. Selective Market Focus: While Audi has a global presence, the brand focuses on key markets such as Europe, North America, and Asia, particularly China. Audi invests in marketing, sales infrastructure, and tailored services in these markets to meet specific local demands and preferences.

Audi Promotion Strategy

Audi is involved in many sports and sponsorship ventures, such as sponsoring some Italian football teams and having a permanent feature in Sony’s PlayStation Home. Audi manages to keep itself in the public eye without overdoing it. Advertised on billboards and in magazines, and with advertisements on television (TV commercials) over the years, the company was famous for its slogan “Vorsprung durch Technik,” meaning progress through technology, and today still uses the exact words in its adverts. It was recently changed in the USA to ‘truth in engineering.’ Audi relies on its cars’ quality and marketing strategy, such as its reputation as one of the Big Three, to ensure that sales and production figures continue to grow.

Its cars in India are often launched by celebrities, like the recent launch of the Audi RS 7 Sports coupe, done by Bollywood biggie Salman Khan. Because of its niche market, Audi never participates in mass marketing but instead advertises only in the very premium segment to pull its target market towards the premium brand itself.

Audi Pricing Strategy

The cost of a new Audi A1 in the UK is around 14,000 GBP; in India, it is around 19 lac rupees, which shows that Audi has premium or skimming pricing. Of course, the pricing is entirely justified, considering the car’s quality and brand image. This pricing is also necessary to properly position the brand in the Asian market. People like the company’s reputation, which is reflected in the production of this car, which was 123,000 plus units in 2013. Dealerships and showrooms offer repayment plans, allowing a wide variety of people to access the brand. Of course, Audi has a well-respected range of sports cars, such as the Audi TT RS Coupe or the R8 Coupe, but continues to show a steady growth in production of most of its vehicles over the last 15 years.

Audi has witnessed a stellar performance in India during the last year and the first quarter of 2014. Lately, there has been a price rise due to the increase in the forex rate. However, the company tries its best to rationalize the prices and provide innovative finance options through Audi Finance, making the purchase attractive. It is a successful luxury brand, with its closest competitors being BMW, Volkswagen, and Skoda.

Audi’s pricing strategy is a sophisticated blend of premium positioning, market segmentation, and value proposition, reflecting its status as a luxury automobile brand. Here’s an overview of the price strategy:

1. Premium Pricing: Audi positions itself in the luxury car segment, which allows for a premium pricing strategy. The brand’s pricing reflects its high-end market positioning, ensuring customers associate Audi vehicles with quality, luxury, and advanced technology. This strategy appeals to consumers seeking status, exclusivity, and superior driving experiences.
2. Segment-Based Pricing: Audi employs a segment-based pricing approach within its extensive product range. Each model is priced according to its market segment: compact cars, sedans, SUVs, or high-performance sports cars. This approach allows Audi to cater to different customer segments, from entry-level luxury buyers to high-end enthusiasts.
3. Value-Added Features and Customization: Audi offers extensive customization options and advanced technological features, which add value to its vehicles. The pricing strategy considers these additional features, allowing customers to perceive a higher value for the price paid. This customization capability enables Audi to cater to individual preferences and justify a higher price point.
4. Competitive Positioning: Audi strategically prices its vehicles to compete with other luxury brands like BMW and Mercedes-Benz. This competitive pricing is crucial in retaining market share and attracting customers within the luxury automotive segment.
5. Dynamic and Regional Pricing: Audi adapts its pricing strategy to different regions and markets, considering local taxes, import duties, and market demand. Furthermore, the brand employs dynamic pricing strategies in response to market changes, competitor actions, and economic conditions, ensuring its pricing remains relevant and competitive.

Some Recent Video ads and Print ads of the Audi cars are:

The Audi Q models – YouTube

Audi USA – YouTube

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