Abstract

The case discusses the marketing strategies adopted by Germany-based automobile manufacturer Audi in India. Audi entered India in 2004 by selling imported vehicles through three dealers. It established a subsidiary, Audi India, in 2007. The company maintained an aggressive stance and launched several vehicles at different price points. Audi was positioned as an aspirational brand for young entrepreneurs and executives and adopted innovative strategies to reach the segment. It also developed exclusive dealerships, which were used as touch points to interact with the customers. Within five years, Audi surpassed Mercedes Benz, which had been present in the country for more than a decade, and positioned itself as second leading luxury brand in terms of sales. The case lists the strategies adopted by Audi on its journey to reach this position and also discusses the challenges it is likely to face from competitors. It also discusses how the changes in the macroeconomic environment could affect its fortunes.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges faced by established companies in a new market.
• Analyze the strategies that market leaders should follow to counter competition from new entrants into the market (expanding the total market, expanding market share, and defending market share).
• Analyze the strategies that the market challengers should follow in attacking the market leaders.
• Discuss and debate whether the strategies followed by Audi will help it overtake BMW.

Keywords

Audi, Volkswagen , Luxury Car Segment, Audi India, Pricing, Distribution, Aspirational brand, Premium dealership, Complete knocked down kits, Complete built-up units, Pre-owned cars, Audi Approved: plus, Audi Financial Services India