Acknowledgment

In performing my assignment, I had to take the help and guideline of some

respected persons, who deserve my greatest gratitude. The completion of this
assignment gives me much Pleasure. I would like to show my gratitude to CA
Dhaarna Singh Rathore for giving me a good guideline for assignment throughout

numerous consultations. I would also like to expand my deepest gratitude to all

those who have directly and indirectly guided me in writing this assignment.
In addition, Many people, especially my classmates and team members itself,
have made valuable comment suggestions on this proposal which gave me an
inspiration to improve my assignment. I thank all the people who helped me
directly and indirectly to complete my assignment.

Index

Sr. No

Particulars

Page No.

Company Overview

3-4

News

5-6

STP Model

SWOT

PESTLE Analysis

9-10

Porters Five Forces Model

11

4Ps of Marketing

12

Competitors

13-14

Conclusion

15

10

Harvard Referencing

16

Company Overview

Audi 1925

Audi 2015

About Audi
Audi AG is a German automobile manufacturer that designs, engineers, produces, markets and
distributes luxury automobiles. Audi oversees worldwide operations from its headquarters
in Ingolstadt, Bavaria, Germany. Audi-branded vehicles are produced in nine production
facilities worldwide.
Audi has been a majority owned (99.55%) subsidiary of Volkswagen Group since 1966,
following a phased purchase of Audi AG's predecessor, Auto Union, from Daimler-Benz.
Volkswagen relaunched the Audi brand with the 1965 introduction of the Audi F103 series.
The company name is based on the Latin translation of the surname of the founder, August
Horch. "Horch", meaning "listen" in German, becomes "audi" in Latin. The four rings of the
Audi logo each represent one of four car companies that banded together to create Audi's
predecesor company, Auto Union. Audi's slogan is Vorsprung durch Technik, meaning
"Advancement through Technology". However, since 2007 Audi USA has used the slogan
"Truth in Engineering". Audi is among the best-selling luxury automobiles in the world.

In March 2007, Audi set up its own sales company for India. By establishing Audi India as a
Division of Volkswagen Group Sales India Pvt. Ltd. in Mumbai, Audi is making a clear longterm statement in the country with ambitious growths plans. Audis goal is to become the
leading automobile luxury brand in the Indian market in the next few years.
3

The Audi India strategy encompasses significant investments in branding, marketing, exclusive
dealerships and after sales service for the upcoming years.
At present Audi is assembling the Audi A6, Audi A4, Audi A3, Audi Q3, Audi Q5 and Audi
Q7 for the Indian market in Aurangabad.

Birth of the company and its name

Originally in 1885, automobile company Wanderer was established, later becoming a branch
of Audi AG. Another company, NSU, which also later merged into Audi, was founded during
this time, and later supplied the chassis for Gottlieb Daimler's four-wheeler.[14]
On 14 November 1899, August Horch (18681951) established the company A. Horch &
Cie. in the Ehrenfeld district of Cologne. Three years later in 1902 he moved with his company
to Reichenbach im Vogtland. On May, 10th, 1904 he founded the August Horch & Cie.
Motorwagenwerke AG, a joint-stock company in Zwickau(State of Saxony).
After troubles with Horch chief financial officer, August Horch left Motorwagenwerke and
founded in Zwickau on 16 July 1909, his second company, the August Horch
Automobilwerke GmbH. His former partners sued him for trademark infringement. The
German Reichsgericht (Supreme Court) in Leipzig,[15] eventually determined that the Horch
brand belonged to his former company.[16]
Since August Horch was banned from using "Horch" as a trade name in his new car business,
he called a meeting with close business friends, Paul and Franz Fikentscher from Zwickau,
Germany. At the apartment of Franz Fikentscher, they discussed how to come up with a new
name for the company. During this meeting, Franz's son was quietly studying Latin in a corner
of the room. Several times he looked like he was on the verge of saying something but would
just swallow his words and continue working, until he finally blurted out, "Father audiatur
et altera pars... wouldn't it be a good idea to call it audi instead of horch?" "Horch!" in German
means "Hark!" or "hear", which is "Audi" in the singular imperative form of "audire" "to
listen" in Latin. The idea was enthusiastically accepted by everyone attending the
meeting.[18] On 25 April 1910 the Audi Automobilwerke GmbH Zwickau (from 1915
on Audiwerke AG Zwickau) was entered in the company's register of Zwickau registration
court.

News
Audi gears up for fresh investment in India

NEW DELHI: German auto major Audi is set to pump in fresh investment and enhance its
manufacturing set-up in India as the company eyes sales of over 50,000 cars by 2020.
A senior official in the Volkswagen group - of which Audi is a constituent - said the fresh
investment for India will be announced "very soon" by a board member from the brand's
headquarters. "The plan is to have a bigger set-up in India as the market is seen as key and
strategic," the official said, requesting anonymity.

When contacted, Joe King, the head of Audi in India, said the company is bullish on India, but
did not confirm any investment numbers. The company, he said, is not perturbed by the loss of
ground to compatriot Mercedes Benz in the first half of this year and hopes to finish the fullyear "ahead" of its rival.

"We had a market share of 34% last year, and we are confident of having this dominant share
even by 2020," he told TOI in Udaipur recently after the company drove in the new-generation
version of A6 sedan.

The company sold 10,851 units last year, a shade higher than the 10,201 units sold by
Mercedes. However, in the first half of this year, Mercedes raced ahead with sales of 6,659
units and a growth of 41%. Audi has refused to disclose its numbers for the period, and has
said it will only announce full-year numbers.

The luxury car market in India is small at present, accounting for sales of around 33,000 units
last year. It is nearly 1% of the overall passenger vehicle market and officials feel that its share
will go up as disposable income rises and companies drive in new models and announce
attractive financing schemes. Audi had entered India around 2007, and so far operates out of
Group Company Skoda's factory in Aurangabad. Its investment till now is pegged at around 30
million euros (Rs 220 crore) and on a single shift, the company can produce 14,000 units on an
annual basis.

The Volkswagen group sees Audi India's operation as "strategic" and something that needs to
be expanded, the senior official said. "The poor performance of the group's other two brands,
VW and Skoda, has also meant that Audi gets a push since it is doing well."

Source : - http://timesofindia.indiatimes.com/business/india-business/Audi-gears-up-for-fresh-investment-inIndia/articleshow/48781917.cms

STP Model

Segmentation
Affluent customers seeking luxury, comfort and excellent driving experience.
Targeting
Targeted towards professionals and executives as well as rich families. Also aiming the upper
middle class by providing cars at lower prices especially in India. Recent launch of Audi A3
starting from 22.95 Lakhs.

Positioning
Positioned as a company which continuously progresses by using innovative technology and
provides superior luxury and better driving experience.

Swot Analysis
Strengths

Weaknesses

1. All the competitors in India are unable to provide as many

features as audi at the same price
2. Wide range to cars to choose from starting from Hatchback to
Luxury SUVs
3. Equipped with superior features like parking sensors, LED
illuminated interiors, Air bags, traction control and much more

1. High maintenance & handling cost

2. Indian roads not worthy enough for an audi

4.Elegant styling of both interiors & exteriors

5. Latest technology like Quattro and FSI provide refined and
efficient engine performance
6. Well established brand which helps in the brand recall
7. Has approximately 68804 employees worldwide

Opportunities

SWOT

Threats

1. Expanding automobile market and available space

1. Competition from other big automobile giants

2. Showrooms in each city across india

2. Product innovations and frugal engineering by

competitors

3. Increasing manufacturing capability to meet increasing

demand generated through advertising

3. Decreasing resale value of luxury cars in common

Pestle Analysis
Political
Since the last century, Germany is famous for making cars, such as, Mercedes, Audi and
BMW; Porsche and Volkswagen. German government also encourages these motor
producers showing the Germany made car to the customers from all over the world. Audi was
supported at each step by the government, a recent news article in times also provided an
amazing fact that Audi SUVs are the most preferred among the politicians themselves.
Economic

The companys market share increased 9% even when the luxury car market segment grew
only till 3%. The Economy of India has been providing a continuous support to the growth of
Audi. Also the increasing income levels in India has been also one of the reasons that there is
no looking back for Audi.
Social
Audi is a large car manufacturer in the world, the social impact is inevitable, this German
giant owns over 65,000 staff in the world, and which means Audi support more than 65,000
families every year. In this aspect, Audi has been improving the workshop condition to
satisfy employees, and Audi also offer successes of creating exceptional cars when
employees join the group. The Aurangabad facility of Audi India follows safety protocols
way above the Indian standards

Technological
Technology development is the key feature of Audi Company; Audi is best known of its
permanent four wheel drive system, called QUATTRO. Today, Quattro is widely used in
most Audi model, and offering drivers more safety and pleasure in any situations. In China,
the heavy snow spread over the southern part at the winter of 2008, compared with Audi's
successful performance on snowy road, the competitor Mercedes realized it is the right time
to fit the four wheel drive system into saloon and sport car. In comfort aspect, Audi
introduced air adapted suspension; this equipment could adjust suspension in order to achieve
best performance on different road condition. In 2010, the new Audi A8 is equipped with the
8 speed transmission which offers the soft and quick acceleration in order to achieve fuel
efficiency. Audi also cooperated with Italian super car Lamborghini to achieve sport value.
Environmental
Audi paid more attention in corporate social responsibility .It is inevitable for Audi not
polluting the environment, because it is a manufacturer. Audi promises to minimize the
environmental impacts. In these 20 years, Audi spent billions in researching the efficiency
engine; the new generation engine means more horsepower but little emissions. For example,
the new TDI diesel engine has already meet the future European 5 emission standard.
Furthermore, Audi announced car emissions will be cut further 20% by 2020. That is how
this German maker leads the environmental car market.
Legal
The Volkswagen Group follows a stringent ethical system worldwide in order to create a
secure environment where matters concerning corruption, fraud, violation of policies and
conflict of interest can be appropriately addressed. Corruption / fraud can harm our company,
the Volkswagen Group and its employees. The Volkswagen Group has therefore set up an
AntiCorruption System to maintain the core ethics of the Group.
In order to facilitate a platform to come forward and report genuine concerns and fight
corruption, two highly respected lawyers act as independent Ombudsmen for the entire
Volkswagen Group and can be contacted for reporting any information / con-cerns pertaining
to Corruption related topics within the Group. All the information provided to the
Ombudsmen is treated in the strictest confidence and the identity of anyone disclosing the
information is also kept strictly anonymous.

10

Porters Five Force Model

Micro Analysis Five Forces
Competitive rivalry: quite high bmw, mercedes, toyota, general motors. Audi has managed
to retain its market share by following various strategies Audi are Hybrid [commercial cars],
differentiation [high speed cars ] & focused differentiation [ Lamborghini by Audi ].
Threat of new entrants: Threat of new Entrants is quite low. Organisations willing to join this
industry will have to be potential enough to Compete with these existing giants. Market is
saturated & the new companies will not be enjoying enough shares of the market & will face
cut throat rivalry from the existing once. Established firms enjoy economies of scale due to
their long term presence in the automotive industry. Every existing company enjoys the
benefits of brand loyalty .Also, there is a very high cost of capital i.e. manufacturing
(materials, robots, Machinery). Skilled labour required & technological development required
undermine new entries.
Bargaining power of suppliers: Suppliers of Audi Ag are very happy to work with it. Infact
for many suppliers Audi is the best to deal with. Audi is very strongly linked to its suppliers.
Its a brand not only for consumers but also for suppliers who happily suffice Audis orders in
terms of Quality & volume. [Audi Supplier] [Audi .com ]
Bargaining power of customers: Bargaining power of customers is really high However, after
2 years of recession a positive purchasing parity is visible among consumers. Audi is
definitely the perfect Fit for all lifestyles Audis customers are Brand Loyal
Threat of Substitutes : Substitutes are the products outside the industry i.e. trains , Buses,
bikes, aeroplanes ,etc. price of gasoline will affect the services of these substitutes which
indirectly will influence the automotive industry

11

Marketing 4Ps

Product: Audi produce only high-tech, modern, high quality cars. Audi has slogan Truth of
engineering, what means all goods of this company must be on high level of all area
technologies such as ecology, safety, comfortable and economy. Really, Audis cars comply
with the slogan.
Price: Audis cars have average price in the market, but this is the case of balance between
price and quality. For example, Mercedes-Benzs cars are much more expensive than Audis
cars, but they have the same quality. The price of Audis cars oriented on middle-class and
target audience are men, because Audis cars are brutal.
Promotion: The best way for promotion cars is racing, because everybody want to have race
car in everyday life, especially men feel a lack in adrenaline. And racing is the best way to
show customers that your car better, faster etc. Also, Audi promote their cars in films, for
choice in films, which have many pursuit and racing. The last type of Audis cars promotion is
advertising in mens magazines.
Place: Audi has many show-rooms in a different areas of big cities.

12

Competitors

Audis major Competitors in India are Mercedes-BMW-Jaguar and volvo . All

of the above players provide tough competition to each other in their respective
segments.
13

Competitors

Audi stays ahead of all these major competitors and is at no. 1 with 34% market
share last year . the toughest rival is mercedes which sells almost equal numbers
to audi ( Audi 10,851 Merc -10,201 Units ) whereas the other competitors
such as bmw , jaguar and volvo are way behind in number of sales compared to
audi and mercedes.

14

Conclusion
In conclusion, Audi appears as one of the world leaders of the motorcar. Its commercial and
marketing strategy is based on quality cars and luxury with a sports image. Recently AUDI
can praise itself to be on all the segments. There is no real policy of Audi marketing. Audi
works in study project on each model. There are no common rules with share to create cars of
quality.
The battle for higher market share among luxury car makers in India will grow in the years to
come as the German giants Mercedes, Audi & BMW would be fiercely aggressive with their
upcoming launches, network expansion across Tier II / III cities, innovations in product
service and better brand engagement with its customers. The immense market potential
owing to the rising purchasing power of consumers, growing aspiration for luxury brands
among the upper middle class and evolving lifestyles are making India a lucrative market for
the premium carmakers.
Joe King took a more than needed decision as the future need of the Indian market can be easily
catered to through this new plan. Also it was a required move as the rival brand Mercedes has
capacity to produce cars up to 20,000 units per year way more compared to Audis 14,000
mark. Mercedes claimed to be the only luxury brand in India with that capacity so it was time
for Audi to plan their share too being the dominant player in market since two consecutive
years.

15

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