Why Audi got a successful market in China?

 

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Audi as a one of the biggest German automobile manufacturers in the world and it designs, engineers, produces, markets and distributes luxury vehicles. Audi has got huge part in China automobile marketing from 1998 when Audi entered in China, it quickly earned a reputation as the maker of the limo favored by bureaucrats and party functionaries (Jian Y, 2016).

Therefore, what strategy and plan can make Audi has get huge market shares in China?

Audi’s customer strategy.

Audi is the most popular luxury vehicles in government agencies, therefore, there are nearly one- third of all A6 sedans sold by Chinese government purchase. But now Audi try to make a younger luxury brand because of China government anti-corruption policy, and the other hand, the slowdown Chinese economy reduced sale of some of

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the premium luxury cars and the same time the affordable luxury car makers have been got a huge sales increase. The Chinese government influence and economy influence make a huge opportunity for Audi’s development in China.

Market framework is based on 5Cs that including customer, company, context, collaborators and competitors. Audi try to design and production young and more cheaper automobile such as A1, A3 etc. in 2013, Audi begins is now gearing up to open its second assembly plant and producing its A3 sedan in FAW-VW’s Foshan facility ( Amy W, 2016).

Audi’s brand strategy.

Audi`s Branding strategy in China has a high effective, such as Audi through support the top of music, sport and art for achieving PR purposes, Audi brand strategy is not only sales the luxury vehicles, but also pay attention car’s service and give customers more opportunity to experience to premium music and sporting events and premium lifestyle. Therefore, brand of Audi becomes commensurate with luxury lifestyle and top of sport in mind of customers.

SWOT tool

Audi China’s make a marketing strategy and plan bases on China huge population market and Chinese government policy. Audi China gets a huge market shares because they made a long strategy and plan and get a good opportunity to development brand of Audi. The following figure 2 is the concrete process of marketing strategy and plan.

Figure 2 marketing strategy and plan process

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From the aspect of theory, the tool of SWOT analysis is the basic of marketing decision for Audi, the SWOT matrix contains four aspects: weakness, strength, opportunity and threat (Basu, 2014). Audi’s advantage is brand and service.  Audi has a clear marketing strategy and plan thanks to its precise SWOT analysis, the first is the strength, Audi’s automobile update every year and it has a big update every four years, at the same time Audi pushed out a new product in China market every year, difference price can suit difference customers. The next is opportunity, Chinese government was choose Audi as the main official business vehicles made Audi got a quickly increase rate in China market and made Audi entered into luxury brand market. The third is weakness, Audi’s disadvantage is burn energy oil, and it is a huge product defect would lead to a lots negative effects, Audi try to use the better after sale service to cover this weakness. The next is threat, Audi have to face to BMW and Mercedes pressure of competition and continue to update new produce and try to keep brand effective. However, the difference situation is that the Chinese government was preferred to use Audi as the official business vehicles, hance, Audi has more opportunities to development marketing and has more stable sales than other premium luxury brands.

On the basic of marketing SWOT analysis, Audi have a clear develop plan in China, they are working hard to erase that image as it reaches out to young, affluent car buyers. And apparently China’s largest luxury brand has made some progress (Jian Y, 2016). Audi change their customer target from the government to young people, the new vehicles price down to $30000 in China, this price strategy can get more young people choose buy A1, A3 or Q3 as their first car, this strategy can get more market shares but dangerous for brand effect, low price can attract more customers but will influence high-end customers choose.

Audi China marketing strategy and plan

Audi change their customer’s goals for fit new situation in China environment, the reason that Audi can survive in the market competition successfully is that they has a clear self-assessment. As a traditional luxury automobile brand, they have their own segmented marked and target customers. Audi has precise development goal. The development target gains from their SWOT analysis about their survival situation and company condition. After the analysis of 5Cs, STP and 4Ps, the firms form their own market development strategy and plan. All these market strategy and plan make Audi products more popular in the market.

 

Published By XIAOPENG

xiaopeng@deakin.edu.au

 

References:

Jian Y, 2016 “Audi Reaches Out to China’s Younger Car Buyers” [online] Available http://adage.com/article/global-news/audi-reaches-china-s-younger-car-buyers/302742/

[Accessed July 24, 2016]

Amy W “Audi China: analysis of a successful strategy” [online] Available

http://daxueconsulting.com/audi-china-analysis-of-a-successful-strategy/

[Accessed July 24, 2016]

Basu, S. (2014) ‘Product market strategies and innovation types: finding the fit!’ Strategic Direction, 30(3), pp.28-31.

 

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