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DEDICATED TO MY FAMILY MEMBERS AND FRIENDS
Sinhgad Business School, Pune 2009
A STUDY ON BRAND AWARENESS OF AUDI IN AND AROUND PUNE
Submitted to University of Pune by Mohammed Saqib Tamburi
Submitted in partial fulfillment of the requirement for the Masters in Marketing Management course Of University of Pune
Under the Guidance of
Mrs.Himali Natekar (Faculty, Marketing) Sinhgad Business School ,Pune
Mr. Kalwant Singh Gurai General Manager - Operations Audi AG Pune
Sinhgad Business School Erandwane,Pune (Affiliated to University of Pune)
Sinhgad Business School, Pune 2009
Sinhgad Business School, Pune 2009
Sinhgad Business School. Mohammed Saqib Tamburi studying in the third semester of Masters in Marketing Management course of University of Pune is a bonafide student of Sinhgad Business School. Director Sinhgad Business School Pune 5|Page Audi Pune . Pune 2009 BONAFIDE CERTIFICATE This is to certify that Mr. Erandwane Pune.
Mohammed Saqib Tamburi of MMM 3rd Semester has worked under my supervision and guidance. Pune 2009 GUIDE’S CERTIFICATE This is to certify that the project entitled “A Study On Brand Awareness Of Audi. Mr. In And Around Pune” Has been submitted in partial fulfillment of the requirement for the award of Masters in Marketing Management Degree of University of Pune. and that the project report is the original work of the student.Sinhgad Business School. Certified by 6|Page Audi Pune .
Pune. Is approved and is acceptable in quality and form. Erandwane. Pune 2009 APPROVAL CERTIFICATE The project entitled “A STUDY ON BRAND AWARENESS OF AUDI IN AND AROUND PUNE” Submitted by Mr.Sinhgad Business School. Mohammed Saqib Tamburi of rd MMM 3 Semester of Sinhgad Business School. Internal Examiner Sign Name External Examiner Sign Name 7|Page Audi Pune .
5. 4. Pune 2009 Contents Title Page College Certificate Company Certificate Guide’s Certificate Approval Certificate Declaration Acknowledgement List of tables List of figures List of Abbreviations Executive Summary i ii iii iv v vi vii viii ix x xi Sl. 8. 9. 3. 6. Contents Introduction Company Profile Product profile Industry data and Secondary research data Data Analysis Findings & Conclusion Recommendations Bibliography Annexure Page No 1 14 22 34 41 58 61 63 64 8|Page Audi Pune .Sinhgad Business School. 2.no 1. 7.
10 Table No. Pune 2009 Table No. Table No.13 Table No.12 Table No.15.9 Table No. 7 Table No.1 Table No. 3 Table No.of people owning different luxury cars No. 5 Table No.15. of people owning luxury car No.15.Sinhgad Business School.of respondents in time duration of ownership No.16.8.of respondents and their preference as per type of car Brand the respondents wanted to buy Model ofAudi customer wanted to buy Total no.2 Table No.11 Table No.16.2 LIST OF TABLES Title of the Table Price of Audi A4 Price of Audi A6 Price of Audi A8 Price of Audi Q5 Price of Audi Q7 Price of Audi TT Price of Audi R8 No.of respondents who wanted to buy a luxury car No. 6 Table No.2 Table No. 8 Table No. 1 Table No.14 Table No. 4 Table No. of respondents those who knew about Audi Quattro Key feature the customer will look in a luxury car Respondents who owned luxury cars and key feature they will look in a luxury car Respondents who did not owned luxury cars and key feature they will look in a luxury car Popularity of Audi Pune Popularity of Audi Pune among owners of various car brands Page No. 2 Table No.1 Table No.3 Table No. 25 27 29 30 31 32 33 42 43 45 48 49 51 52 53 54 55 55 56 57 9|Page Audi Pune .
1 Figure No.2 Figure No. 3 Figure No.1 Figure No.of respondents and their preference as per type of car Percentage of respondents and their preference as per type of car Brand the respondents wanted to buy Brand Preference in percentage Model of Audi customer wanted to buy Model of Audi car customer wanted to buy in %age Total no. 7.1 Figure No.1 Figure No. 9. 2. Pune 2009 Figure No.1 Figure No. 6.2 Figure No. 4. 5.of people owning luxury cars Percentage of people owning luxury cars No.1 Figure No.2 Figure No.of respondents in time duration of ownership Percentage of people owning luxury as per time duration No.2 Figure No. of respondents those who knew about Audi Quattro Key feature the customer will look in a luxury car Key features in %age Popularity of Audi Pune Popularity of Audi Pune in %age PageNo.2 LIST OF FIGURES Title of the Figure Survey administration process Porter’s model Porter’s model for Audi in India Luxury Car Market is in the growth stage No. 7.1 Figure No. 10 37 38 39 42 42 45 45 48 48 49 49 51 51 52 52 53 54 54 56 56 10 | P a g e Audi Pune .2 Figure No. 8. 11. 11.1 Figure No. 1. 5. 6.1 Figure No.of respondents who wanted to buy a luxury car Percentage of respondents who wanted to buy a luxury car No.2 Figure No.1 Figure No.Sinhgad Business School. 8.2 Figure No. 12. 10 Figure No. 4.2 Figure No. 2. 9. 12. Figure No.
7. 14. 16. 11. LIST OF ABBREVIATIONS Abbreviation Full Form SUV Sport utility vehicle AMA American marketing association BMW Bayerische motoren werke NSU Neckarsulmer strickmaschinenfabrik (Neckarsulm Knitting Machine Factory DKW Dampf-kraft-wagen ASF Audi space frame DSG Direct-shift gearbox FSI Fuel stratified injection LED Light emitting diode DRL Daytime running lights MMI Multi media interface MLP Modular longitudinal platform LMP Le mans prototype GmbH Gesellschaft mit beschränkter haftung TDI Turbo diesel intercooler CKD Completely knocked down CBU Completely built unit NCAER National council of applied economic research 11 | P a g e Audi Pune . 18. 6. 3. 17. 4.Sinhgad Business School. 13. 8. 15. 9. 5. 12.no 1. Pune 2009 Sl. 10. 2.
under the guidance of Mrs.Himali Natekar. PLACE: PUNE DATE: MOHAMMED SAQIB TAMBURI 12 | P a g e Audi Pune . Pune 2009 DECLARATION I hereby declare that this project report entitled “A study on brand awareness of AUDI AG in and around Pune” has been prepared by me towards the partial requirements of Masters in Marketing Management course of University of Pune. REG NO. All endeavors put in the fulfillment of the task are genuine and original to the best of my knowledge.Sinhgad Business School.
Sinhgad Business School. whose constant guidance and encouragement served as a beckon of light and crowned our efforts with success. I extend my heartfelt thanks to my beloved parents without whose support I would not have reached here. Operations. First of all I thank Almighty Allah. Himali Natekar and Prof. Ramesh G.Sonali Bagrecha (Product Consultant) and other concerned authorities of Audi Pune. who made it possible. Anandikar and for their guidance and support in this part of my academics. I would also like to extend my grateful appreciation to Mrs.. Kalwant Singh Gurai(General Manager. due to whose grace I was able to prepare this report. MOHAMMED SAQIB TAMBURI 13 | P a g e Audi Pune .” I consider it a privilege to express through the pages of this report. Audi Pune) for giving me the opportunity to undergo my project in their esteemed organization and the their timely suggestions & valuable guidance. I am deeply indebted to Mr. They constantly encouraged me and guided me from day first till the completion of my project. Last but not the least my heartfelt thanks to my dear friends and colleagues for blessing me to complete my project. a few words of gratitude and respect to those who guided me in the completion of this project. Pune 2009 ACKNOWLEDGEMENT “The satisfaction euphoria that accompanies the successful completion of any work would be incomplete unless we mention the name of the person. Vikram Zende( Sales Manager) Ms. I also want to thank Mr.” I wish to acknowledge this report which I had prepared on the topic “Brand Awareness of Audi AG in and around Pune”.
The study attempts to capture the views of the customers for to know their preference for luxury cars. The study was conducted by targeting only those customers who own luxry cars or who can own luxury cars. Audi has entered the Indian luxury car market with Audi A4 in January 2008 when it launched its first vehicle in India. Limitations: 1. prospecting. as the consumers may not be willing to give correct information. This thesis work gives insights on future potential of luxury cars in India and Pune in particular. During the survey most of the respondents contacted had newly purchased the car thus they could not respond accurately. Objectives: v To create brand awareness of Brand Audi in and around Pune v To know the market share of Audi in Pune v To know the customer preference when it comes to luxury cars v To know how consumer perceive Audi as a brand. The research is directly concerned with the study of human preference and behavior and achieving absolute mathematical accuracy towards this was not possible. 5. it does not focus on issues related with price sensitivity. The responses could be biased. The study focuses only on awareness of Audi among the upper middle class and upper class of the society.Sinhgad Business School. Mercedes. There were already many players who had made their feets firm in the competitive market like India. Pune 2009 Executive Summary Project title: A Study On Brand Awareness Of Audi In And Around Pune. 3. BMW and Mercedes. product quality etc of any luxury cars. The market of the product was too niche and it was difficult to meet the customers in person many of the time.e. v To know find out the potential customers of luxury cars i. BMW. Secondary data about Audi Pune was rarely found as the organization did not want share more about it as they found it confidential in nature. 2. 14 | P a g e Audi Pune . Audi is having 12 exclusive dealers in India and Audi Pune is one among them. 4. Scope: The scope of the study includes all the existing customers of luxury cars especially Audi. Key Players: Audi.
Sample size: A sample size of 100 car owners was specified. Supermarket. Gyms. each element in the population has a known and equal probability of selection. Pune 2009 Research Methodology Used: Sampling technique: Judgmental Sampling. Customers visiting showrooms 2. Stratified Sampling. Markets. Shopping malls. In simple random sampling (SRS). Sampling unit: People owning cars esp. 15 | P a g e Audi Pune . Cafes etc in Pune. Simple Random Sampling were used. Luxury car owners Sampling method: Simple random sampling method was used. Sampling frame : 1.Sinhgad Business School.
2. 3. 2 3 5 6 7 8 11 12 13 16 | P a g e Audi Pune . no 1. 5. Pune 2009 Introduction Sl. 7. 4.Sinhgad Business School. Sub topics Basic theoretical concepts and contexts of the topic Literature Review Objectives of the study Need for the study Statement of problem Research Methodology Deliverables Limitations Scope of the study Page No. 6. 9. 8.
v Brand awareness: Brand awareness is the consumers’ ability to identify the brand under different conditions. Brand Image: Brand image is the perception and beliefs held by consumers. symbol. the ability to pay for it and the authority to buy it v v 17 | P a g e Audi Pune . term.Sinhgad Business School. intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors”. as reflected in the associations held in consumer memory. or design. as reflected by their brand recognition or recall performance. Pune 2009 Basic Theoretical Concepts and Contexts of the Topic: Following are the terminologies covered within this title: v v v v Brand Brand Awareness Brand Image Prospecting v Brand: The American Marketing Association defines a brand as “ a name. or a combination of them. Prospecting: Prospecting is the process of identifying potential buyers who have a need for the products and services offered by the company.
The objective of the strategy is to attract the customer towards other product or towards the brand. Surcharge and Special Additional Duty. people in 2832 years age group spend more on cars & houses (real estate). and the change in attitudes towards shopping. the attitude is changing from the traditional savings to spending approach. it may see very small. quality and trendiness. a substantial number in any market. We can see that not much reduction happened in terms of Audi Pune v v 18 | P a g e . With multi-income families and increasing international exposure through travel and the Internet. Import duties generally consist of the Basic Duty. And understand the perception of consumers towards the Brand Audi Image enhancing: Image enhancing is a strategy where an organization promotes the most costliest or luxuries for a target market so as to seek attention of the people. it comes around 114%.74 billion in 2005 .Sinhgad Business School. Reduction in import duties fuels demand for these cars also but not by large extent. From the study it was identified that there is a huge potential for luxury cars in India. small segment affects from them most.steered by a ten-fold jump in its middle-class population and a three-fold rise in household income. India has seen a reduction of only 6% in the last 5 years. Luxury and ultraluxury car segment does not have that amount of influence from them. but with a base of one billion people.from about US$ 457. Additional Customs Duty. Rules & Regulations (import duties): Govt. Govt. Age is also a major factor that affects the spending decisions of an individual. rules and regulations do play a major role in deciding the demand and supply of Automobile Industry. McKinsey study states that Indian consumer spending could more than quadruple to US$ 1. The seriously rich and affluent represent just 1% of the entire population. Changing demographic distribution & spending habits: Shopping habits of Indians are changing due to their growing disposable income. Generally. while people in the 45-48 years age group spend more on vacations. For instance. The emphasis has changed from price consideration to design. Countervailing Duty. The following are the reasons for the growth of luxury car market: v Growing Affluent Population: The main key growth driver is the ever-growing number of ultra-rich people. Pune 2009 Literature Review: Brand awareness: Audi entered the Indian market in 2008 and very few people know about Audi as compared to other luxury brands which are well established in the luxury car market. Currently India’s more than half population comes under the bracket of age 15 to 49 years and the trends showing continuous increase in the numbers. relative increase in the younger population. In year 2003 the import duty (total) for cars was around 120% and these days in year 2007 and early 2008.8 trillion by 2025 . Indian luxury car market is growing at an astonishing rate of 25% per annum. So the company wanted me to do a study on brand awareness. In terms of population percentage. it still adds up to 10 million high-end customers. people in 2024 years age group spend more on electronic / home appliances and movies.
Good conditions of the roads have allowed ultra-rich people to buy these expensive. These needs raise the aspiration levels of the people and it will further shoot up. this result in lesser cost for these expensive cars. As the global companies have started to give importance to India. ‘Paisa’ and ‘Passion’ are the two most important factors in buying these expensive marques. status symbol cars. most of the India’s population would be aged around 30years and young people have more aspirations from life.Sinhgad Business School. 19 | P a g e Audi Pune . Thus. As we have already discussed that by 2030. importance etc. these all are the facts in increasing passion level of Indian people for speed. Passion towards luxury cars is increasing: Increasing motor sport activities in India like car and bike rallies. Rupee is appreciating from last some years. Like recognition. Lower interest rates fueled demand into automobile industry. Governments have taken admirable steps by introducing some excellent projects all over India and International competition also helped in improving quality of the work. v Other factors: Poor Road conditions were one of the main factors for not buying an expensive car. More number of drivers being recognized on world arena. without bothering about high and frequent maintenance of these cars because of bad roads. and India’s population have also became very very brand conscious. it can be said that minor import duty revision does not affect the demand of ultra-luxury cars. Study says that prospective buyers do watch a lot of motor sport events and that creates the passion in them also. money gives the affordability and passion gives the push for buying an ultra-luxury car. Formula 1’s rising exposure and possibilities for holding the event in India. Rising aspiration levels always increase the demand of luxury items. It makes people think about experiencing the same feelings of racers not just by driving them once but also forever by owning them. Interest rates play a significant role in car sales as nearly 80% of cars are financed. Young population. International product launches in the country are creating an atmosphere for experiencing the vehicles not just use them for transportation. Rupee appreciation results in higher incomes of people and helps in attracting the customers for buying luxury cars. power. Indian teams are participating in world racing events. auto expos. Pune 2009 v import duties but demand increased to a great extent. and elegancy. Young age gives the aspirations. money and passion certainly make a deadly combo. because of high maintenance.
e. Pune 2009 Objective of the study: Primary Objective: The primary objective of the study was to create brand awareness of Brand Audi in and around Pune Secondary Objective: v v v v To know the market share of Audi in Pune To know the customer preference when it comes to luxury cars To know how consumer perceive Audi as a brand.Sinhgad Business School. prospecting. 20 | P a g e Audi Pune . To know find out the potential customers of luxury cars i.
Sinhgad Business School. at home. and also when on move. which is an obvious affirmative wish of every people since long. 21 | P a g e Audi Pune . This led to development and introduction of various luxury products and brands. From the study. it was identified that when it came to SUVs Audi’s Q7 and Q5 was the most preferred car. The study was conducted to know the awareness of Brand Audi as compared to other luxury carmakers. Audi needs to be around this class of customers which is possible by maintain a strong relationship with this segment of customers. they want it all the way. Luxury cars are among one of those products. in office. Every car manufacturing companies are making luxury cars to fulfill the demand of people in exclusive range of society. The research was conducted to know the luxury car market of Pune and the to identify the potential customers of luxury cars. The study also gave emphasis on which type of car the consumer preferred the most. Pune 2009 Need for the study: Luxury and comfort is the demand of people.
Pune 2009 Statement of the Problem: The management decision problem is the problem confronting the decision maker. 22 | P a g e Audi Pune . Management decision problem: What should be done to create brand awareness of Audi in Pune region by Audi Pune by coordinating with Audi India? Which are the people who are most likely to buy luxury products? Marketing research problem: To determine the effectiveness of the promotional activities and awareness of Audi among other luxury car brands and the popularity of Audi Pune in Pune. A marketing research problem is a problem that entails determining what information is needed and how it can be obtained in the most feasible way.Sinhgad Business School.
It is also used as a way to research different aspects of education. It specifies the details of the procedures necessary for obtaining the information needed to structure and solve marketing research problem. Qualitative researchers aim to gather an in-depth understanding of human behavior and the reasons that govern such behavior.Quantitative Research: Quantitative research is the systematic scientific investigation of quantitative properties and phenomena and their relationships. For example.Sinhgad Business School. theories and/or hypotheses pertaining to natural phenomena. each of the following activities involves such a search. but the differences are significant and worth examining. Research Design: A research design is a framework or blueprint for conducting the marketing research. 2. from physics and biology to sociology and journalism. Quantitative research 1.Qualitative Research: Qualitative research is a field of inquiry applicable to many disciplines and subject matters. The word "research" is used to describe a number of similar and often overlapping activities involving a search for information. Marketing Research: American Marketing Association (AMA) defines research as a systematic gathering. The objective of quantitative research is to develop and employ mathematical models. Quantitative research is widely used in both the natural sciences and social sciences. rather than large random samples. The process of measurement is central to quantitative research because it provides the fundamental connection between empirical observation and mathematical expression of quantitative relationships. Pune 2009 Research Methodology: What is research? It is a detailed study of a subject. The qualitative method investigates the why and how of decision making. where. Qualitative research 2. Type of research used: 1. when. smaller but focused samples are more often needed. especially in order to discover information or reach a new understanding. recording and analyzing of data about the problems relating to marketing of goods or services. not just what. 23 | P a g e Audi Pune . Hence.
Every element is selected independently of every other element and the sample is drawn by a random procedure from a sampling frame. the researcher exercise judgment or expertise chooses the elements to be included in the sample. Some of the respondents were approached just by making judgment that they are capable of buying a luxury car. SRS is used for the next step of stratified sampling. In this technique. Customers visiting showrooms 4. Luxury car owners Sampling method: Simple random sampling method was used. It is a two step process in which the population is partitioned into sub-populations. In simple random sampling (SRS). Sampling frame : 3. Sampling unit: People owning cars esp. Population: The population was defined as people owning semi-luxury and luxury car owners in Pune. Next. or strata. Stratified Sampling: It is a probability sampling technique. The sampling technique used in this project is Judgmental and Stratified sampling. Cafes etc in Pune. each element in the population has a known and equal probability of selection. the people who are owning luxury cars or who own those cars which can be called as semi-luxury car were targeted. Shopping malls. Here. Sampling plan: Data collected has been analyzed and interpreted by using simple percentage method and finally the data is presented in graphs and charts.Sinhgad Business School. Gyms. Supermarket. Sample size: A sample size of 100 car owners was specified. 24 | P a g e Audi Pune . Pune 2009 Sampling technique: Judgmental Sampling: It is a non-probability sampling technique. elements are selected from each stratum by a random procedure. Markets.
Sinhgad Business School. personal interview etc. 2. Pune 2009 Survey administration process QUESTIONNAIRE INTERVIEWER RESPONDENT Fig. v Internet v Brochures(Audi) v Books v Newspapers etc 25 | P a g e Audi Pune . brochures. Structured questionnaire Personal interview with car owners and luxury car owners in specific.1 Methods of Data Collection: Data was collected from various sources such internet. The data is classified into two types: 1.Primary data: The primary data included the information collected from the v v v General manager and other employees of Audi Pune.Secondary data: Secondary data includes v Data from various magazines esp. Overdrive.
Such as: v It will come to know the luxury car market in Pune. v It was identified that owning a luxury car was more of a status symbol. These are the few areas where the organization can carry out promotional activities like road shows. v With the awareness level of Audi Pune among the customers. v The organization will also come to know the type of car which is more preferred by the customers and which car of Audi is mostly preferred. from the research the organization will come to know the purchase frequency of these cars.Sinhgad Business School. where the top end product(like Audi R8) is kept for display which creates excitement in customers to go for the brand. Pune 2009 Deliverables: It refers to how the project can be useful for the organization With the help of the analysis made the organization can make various decisions related to marketing. architectures. stock brokers were identified as potentials markets. club houses were identified where the movement of this class of people is more. v New ideas like image enhancing were suggested to the organization. engineers. cafes. which are the new areas to be targeted. new target markets such as exporters/importers. the organization can decide on what type of promotional activities needs to be made to reach these segment of customers. v New places such as high class gyms. 26 | P a g e Audi Pune . so people who own luxury cars frequently buy new cars. petrol pump owners.
4. The market of the product was too niche and it was difficult to meet the customers in person many of the time. as the consumers may not be willing to give correct information. Pune 2009 Limitations: 1. 3. Secondary data about Audi Pune was rarely found as the organization did not want share more about it as they found it confidential in nature. During the survey most of the respondents contacted had newly purchased the car thus they could not respond accurately.Sinhgad Business School. 27 | P a g e Audi Pune . The research is directly concerned with the study of human preference and behavior and achieving absolute mathematical accuracy towards this was not possible. 2. The responses could be biased. 5.
The study attempts to capture the views of the customers for to know their preference for luxury cars. it does not focus on issues related with price sensitivity. The study focuses awareness of Audi only among the upper middle class and upper class of the society. 28 | P a g e Audi Pune .Sinhgad Business School. The study was conducted by targeting only those customers who own luxury cars or who can buy luxury cars. product quality etc of any luxury cars. BMW and Mercedes. Pune 2009 Scope of the Study: The scope of the study includes all the existing customers of luxury cars especially Audi.
Sinhgad Business School. Pune 2009 Company Profile 29 | P a g e Audi Pune .
612 cc (2. Bavaria.6 L) model. because it was the first incarnation of the Golf/Polo concept. In 1909. and saw the emergence of Audi as a separate brand for the first time since the pre-war era.. The first new car of this regime was the Audi 100 of 1968. Volkswagen Group incorporated Audi when it was acquired as part of Volkswagen's purchase of the Auto Unionand NSU Motorenwerke AG (NSU) assets.Sinhgad Business School. Audi started with a 2.7 L) appeared in 1924. Several times he looked like he was on the verge of saying something but would just swallow his words and continue working.6 litre) four cylinder model followed by a 3564 cc (3.7%) subsidiary of the Volkswagen Group(Volkswagen AG) since 1964. Volkswagen introduced the Audi brand to the United States for the 1970 model year. Modern Era: The new merged company was known as Audi NSU Auto Union AG. 4655 cc (4.. wouldn't it be a good idea to call it audi instead of horch?". Pune 2009 History: AUDI AG. This was soon joined by the Audi 80/Fox (which formed the basis for the 1973 Volkswagen Passat) in 1972 and the Audi 50 (later rebadged as the Volkswagen Polo) in 1974. "Horch!" in German means "Hark!" or "listen". which is "Audi" in Latin (compare audible). The first Horch automobile was produced in 1901 in Zwickau. The Audi 50 was a seminal design in many ways.7 L) and 5720 cc (5. the Audi Type K. Horch was forced out of the company he had founded. He then started a new company in Zwickau and continued using the Horch brand. making overtaking maneuvers safer. The name Audi is based on a Latin translation of the last name of the founder August "Horch". as well as 4680 cc (4. one that led to a hugely successful world car." Another explanation for the origin of the name is as an acronym for “Auto Union Deutschland Ingolstadt. August Horch was barred from using his own family name in his new car business. itself the German word for “hear. "Father – audiatur et altera pars. Germany and has been an almost whollyowned (99.His former partners sued him for trademark infringement and a German court determined that the Horch brand belonged to his former company." Audi is headquartered in Ingolstadt. The first six cylinder model. It is sometimes (incorrectly) believed that AUDI is a backronym(a reversed acronym) which stands for "Auto Union Deutschland Ingolstadt". so he called a meeting at the apartment of Franz Fikentscher to come up with a new name for his company. These cars were successful even in sporting events. August Horch left the Audi company in 1920.7L) models. 30 | P a g e Audi Pune . During this meeting Franz's son was quietly studying Latin in a corner of the room. The company traces its origins back to 1899 and August Horch. Left-hand drive spread and established dominance during the 1920s because it provided a better view of oncoming traffic. In September 1921 Audi became the first German car manufacturer to present a production car with left-hand drive. The idea was enthusiastically accepted by everyone attending the meeting. is a German car manufacturer which produces cars under the Audi brand. until he finally blurted out.
changing the font to left-aligned Audi Type. Cultural references: In the early 1980s German automobile manufacturers like BMW and Mercedes increased their models' presence in Hollywood blockbusters through product placement. A few years ago. Especially BMW made heavy use of film to promote its cars — for example with the mini-series The Hire. such as Latin America. Pune 2009 Logo: The Audi emblem is four overlapping rings that represent the four marques of Auto Union. Its similarity to the Olympic rings caused the International Olympic Committee to sue Audi in International Trademark Court in 1995. meaning "Advantage through Technology". (Audi 5000) v Ferris Bueller's Day Off (Audi 5000) v Ronin (Audi S8) v The Insider (Audi A4) v Mission: Impossible II (Audi TT) v The Mothman Prophecies (Audi A8) v About a Boy (Audi TT) v Transporter 2 (Audi A8) v Hitman (Audi S5. Oceania and parts of Asia including Japan. third is Horch. More recently.Sinhgad Business School. cars with the Audi rings have been featured prominently in various productions. but in Canada the German tagline Vorsprung durch Technik was used in advertising. although the character had traditionally preferred British makes. While Audi entered the product placement practice relatively late. including: v E. including the United Kingdom. Horch and Wanderer: the first ring represents Audi. however. Q7. As part of Audi's centennial celebration in 2009. RS4 Cabriolet) v Iron Man (Audi R8. the second represents DKW. specially developed for the film) v Transformers: Revenge of the Fallen (Audi R8) v Layer Cake (Audi A3 Sportback sline edition. RS6 [first generation]) v 17 Again (Audi R8) 31 | P a g e Audi Pune . BMW even became James Bond's ride of choice. T.S. The Audi emblem symbolizes the amalgamation of Audi with DKW. Audi has updated the tagline to "Truth in Engineering" in the U. and the fourth and last ring Wanderer. the North American tagline was "Innovation through technology". the company updated the logo. S5. Slogan: Audi's corporate tagline is Vorsprung durch Technik. Q7) v Wanted (Audi Q7) v Transporter 3 (Audi A8) v I. Robot (Audi RSQ. and in other markets. The German-language tagline is used in many European countries. and altering the shading for the overlapping rings.
It meant the car had similar performance to its rivals. a proposal from chassis engineer Jörg Bensinger was accepted to develop the four-wheel drive technology in Volkswagen's Iltis military vehicle for an Audi performance car and rally racing car. was named the "Audi Quattro. the perpetual challenge is to question existing concepts and adopt innovative approaches. Volkswagen introduced the Direct-Shift Gearbox (DSG). but the model was a great success in rallying." The slogan describes Audi's ambitions in the development of new vehicles and technology. introduced in 1980. This is implemented in some VW Golfs. the system includes dual electrohydraulically controlled clutches instead of a torque converter. Nearly every petrol engined model in the range now incorporates this fuel-saving technology Electric technology: Audi is planning an alliance with the Japanese electronic giant Sanyo to develop a pilot hybrid electric project for the Volkswagen Group. The alliance could result in Sanyo batteries and other electronic components being used in future models of the Volkswagen group. Pune 2009 Audi Technology: Audi Quattro: The Audi image at this time was a conservative one. Literally translated. The Audi A2 and Audi R8 also use Audi Space Frame designs. to save weight. and the Audi name became associated with advances in automotive technology. known as the "Audi Space Frame" (ASF). A4. Fuel Stratified Injection: New models of the A3. A6 and A8 have been introduced. with the aging 1. Commonly referred to as the "Ur-Quattro" (the "Ur-" prefix is a German augmentative used. Audi A3 and TT models where DSG is called S-tronic. and so.Sinhgad Business School. Based on the gearbox found in the Group B S1. with a aluminium space frame. Space frame: The Audi A8 replaced the V8 in 1994. The weight reduction was offset by the quattro four-wheel drive system. The performance car. in this case. to mean "original" and is also applied to the first generation of Audi's S4 and S6 sport sedans. however. 32 | P a g e Audi Pune . Vorsprung durch Technik: "Vorsprung durch Technik" is Audi's tagline in Germany. Prominent wins proved the viability of all-wheel drive racecars. Direct-Shift Gearbox: At the turn of the century. it means "advancement through technology". as in "UrS4" and "UrS6"). drivable like a conventional automatic transmission. an automated manual transmission." a turbocharged coupé which was also the first German large-scale production vehicle to feature permanent all-wheel drive through a center differential.8 litre engine now having been replaced by new Fuel Stratified Injection (FSI) engines. English cannot fully capture the meaning of "Vorsprung" which means "to leap ahead. few of these vehicles were produced (all hand-built by a single team). but superior roadholding.
CD changer.with shortcuts to the radio or phone functions. The screen.MMI has been generally well-received. TV tuner). and on the A4 (new). as it requires less menu-surfing with its segment buttons around a central knob. Multi Media Interface: Audi has recently started offering a computerised control system for its cars.designed to control all in-car entertainment devices (radio. MMI was widely reported to be a considerable improvement on BMW's iDrive. along with 'main function' direct access buttons . satellite navigation. Q5 and Q7. The distinctive shape of the DRLs has become a trademark of sorts. either colour or monochrome.Sinhgad Business School. It is essentially a rotating control knob and 'segment' buttons . called Multi Media Interface (MMI). and has since spread throughout the entire model range. iPod. and other car controls with a screen. Pune 2009 LED daytime running lights: Beginning in 2006. is mounted on the upright dashboard. 33 | P a g e Audi Pune . the controls are mounted horizontally. The style was first introduced on the R8. A8. heating and ventilation. A6. Audi has implemented white LED technology as daytime running lights in their products. A5. This came amid criticism of BMW's iDrive control. although BMW has since made their iDrive more user-friendly.
Belgium Aurangabad. Maharashtra India 34 | P a g e Audi Pune .Sinhgad Business School. Germany Györ. China Brussels. Hungary Changchun. Germany Neckarsulm. Pune 2009 Production plants • • • • • • Ingolstadt.
Audi is making a clear longterm statement in the country with ambitious growths plans. 35 | P a g e Audi Pune . The basis of its success comprises pioneering concepts in the domains of advanced technology and design. In March 2007. By establishing Audi India as a Division of Volkswagen Group Sales India Pvt. in Mumbai. Audi has been selling its products on the Indian market. Audi is represented in 110 countries worldwide and since 2004. At present. exclusive dealerships and after sales service for the upcoming years.Sinhgad Business School. Audi is assembling the Audi A6 and the Audi A4 for the Indian market in Aurangabad. The Audi India strategy encompasses significant investments in branding. Audi is one of the world’s leading premium brands and is among the most admired on the world market. Audi set up its own sales company for India. Pune 2009 About Audi India: As a manufacturer of high-quality and innovative luxury cars. marketing. Audi’s goal is to become the leading automobile luxury brand in the Indian market in the next few years. Ltd.
Audi’s Pune dealership showcases models like A4. And the sports car TT and R8.A6. 36 | P a g e Audi Pune .Sinhgad Business School. The showroom has a total capacity to display six cars. Pune 2009 About Audi Pune: Audi opened its new showroom in Pune on March 19th 2008.Q7. Q5.A8.
Pune 2009 Product Profile 37 | P a g e Audi Pune .Sinhgad Business School.
Q7. which will be based on the Volkswagen Tiguan. First brought to the market in 1994. Audi Q5: The Audi Q5 is a compact crossover SUV which was released by German automaker Audi for the 2009 model year. and are built on successions of the Volkswagen Group D platform series. orientated longitudinally.e. to replace the Audi V8 as its flagship model. again. were available as either front-wheel drive. Two generations of the A8 have been produced.Sinhgad Business School. the Audi A4 automobile layout consists of a longitudinally orientated engine at the front. as well as a multitronic or tiptronic automatic transmissions. Audi A4: The Audi A4 is a compact executive car produced by the German car manufacturer Audi AG since late 1994. in both short and long wheelbase form. R8. or. TT. The initial generation A4 succeeded the four previous generations of the Audi 80. A8. and Avant (Audi's term for an estate) body styles. The Q5 is the second Audi model in the "Q" range. and the designation "7" marks its placement between the A6 and A8 in Audi's model range. All generations of the A6. with transaxle-type transmissions mounted immediately to the rear of the engine. And just like its Audi 80 predecessor. Q5. the "Q" denotes a new family of vehicles for Audi. The second and third generation A6 were also used as the basis for the "Audi allroad quattro" and "A6 allroad quattro" models respectively. It is available in both saloon. after the full-size Q7. most versions of the A8 have featured Audi's 'trademark' quattro permanent four-wheel drive as standard. The Q5 slots above the future Q3. A6. 38 | P a g e Audi Pune . A4.It is built using the new Audi MLP platform (Modular Longitudinal Platform) which debuted in the 2007 Audi A5 coupé. Drive output is transmitted to either the front wheels. Audi Q7: The Audi Q7 is a full-size luxury crossover SUV produced by German automaker Audi since its unveiling at the Los Angeles Auto Show in January 2006. utilising Audi's 'trademark' quattro permanent four-wheel drive system via a Torsen centre differential. Audi A6: The Audi A6 is an executive car produced by the German automaker Audi. Audi A8: The Audi A8 is a four-door four/five-seat large luxury car built by the German automaker Audi. or with Audi's trademark Torsen-based quattro permanent four-wheel drive (4WD) system. Pune 2009 Audi sells seven different types of models in India i. In its name Q7.
and 2003 Frankfurt International Motor Show. codenamed R8. which the car shares with the 24 Hours of Le Mans winning R8 Le Mans Prototype (LMP). based on the Audi Le Mans quattro concept car. Pune 2009 Audi R8: The Audi R8 is a sports car with a longitudinally mounted mid-engine. It is now in its second generation — and available as a 2+2 coupé or two-seater roadster. with Martin Smith and Romulus Rost contributing to the award winning interior design. A Direct-Shift Gearbox (DSG) became available. quattro GmbH. in 2003. In 2005. The design is credited to J Mays and Freeman Thomas. The R8 road car was officially launched at the Paris Auto Show on 30 September 2006. 39 | P a g e Audi Pune . It was introduced by the German automaker Audi AG in 2006. A previously unused laser welding adaptation which enabled seamless design features on the first-generation TT also delayed its introduction. and also the 1989 Mk2 Rover 200. There was some confusion with the name. developed. Audi did not initially offer an automatic transmission option for the TT.The TT was first shown as a concept car at the 1995 Frankfurt Motor Show. and uses an aluminium monocoque which is built around a space frame. The car was exclusively designed. The development of the Audi TT began in September 1994 at the Audi Design Center in California. and uses Audi's 'trademark' quattro permanent four-wheel drive system. the first for a production car. and is derived from the Lamborghini Gallardo. the Audi R8. and manufactured by Audi AG's high performance private subsidiary company. The car is built by quattro GmbH in a newly renovated factory at Audi's 'aluminium site' at Neckarsulm in Germany. r Hungary. Audi announced that the name of the successful Audi R8 race car would be used for a new road car in 2007. appearing at the 2003 International Geneva Motor Show. The fundamental construction of the R8 is based on the "Audi Space Frame". Audi TT: The Audi TT is a sports car manufactured by German automaker Audi AG since 1998 in Gyo`.Sinhgad Business School.
08.82.0 TDI (CKD) Diesel Multitronic A4 3.54.687 Audi Pune .) Non-metallic Metallic 32.896 44.2 FSI(CBU) Petrol Quattro Tiptronic 40 | P a g e 36.364 33.621 43.129 Variants A4 2.Sinhgad Business School.66. Pune 2009 Audi A4: Price of Audi A4 : Table 1 Ex-Showroom (Rs.08.10.10.) Non-metallic Metallic 29.433 On road Individual(Rs.340 37.152 30.61.
Sinhgad Business School. Pune 2009 Audi A6: 41 | P a g e Audi Pune .
Sinhgad Business School.) 43.71.8 FSI (CKD) Petrol Multitronic 2.0 TDI (CKD) Diesel Quattro Tiptronic 3.208 45.208 42 | P a g e Audi Pune .223 On road Individual(Rs.46.0 T FSI(CKD) Petrol Quattro Tiptronic Table 2 Ex-Showroom (Rs.7 TDI(CKD) Diesel Multitronic 3.87.879 50.15.684 45.879 50.89.205 45. Pune 2009 Price of Audi A6: Variants 2.) 39.909 22.214.171.124.
Sinhgad Business School. Pune 2009 Audi A8: 43 | P a g e Audi Pune .
96.989 98.0 TDI(CBU) Diesel Quattro Tiptronic 4.54.Sinhgad Business School.868 81.09.385 44 | P a g e Audi Pune .81.44.261 On road Individual(Rs) 86.68.526 1.45.) 72. Pune 2009 Price of Audi A8: Variants 3.2 FSI (CBU) Petrol Quattri Tiptronic A8 W12 (CBU) Petrol NonHomologated Table 3 Ex-Showroom(Rs.75.538 1.
900 45 | P a g e Audi Pune .Sinhgad Business School.0 T FSI (CBU) Petrol 3. Pune 2009 Audi Q5: Price of Audi Q5: Variants 2.41.236 54.) 39.) 47.0 TDI (CBU) Diesel Table 4 Ex-Showroom(Rs.928 On road Individual(Rs.16.25.270 45.53.
Sinhgad Business School. Pune 2009 Audi Q7: Price of Audi Q7: Variants 3.) 66.77.79.) 54.92.409 On road Individual(Rs.15.89.2 FSI (CBU) Petrol Quattro Tiptronic Table 5 Ex-Showroom(Rs.23.0 TDI (CBU) Diesel Quattro Tiptronic 3.920 46 | P a g e Audi Pune .801 66.6 FSI (CBU) Petrol Quattro Tiptronic 4.796 56.814 67.813 80.
) 63.573 47 | P a g e Audi Pune .09.313 On road Individual(Rs.Sinhgad Business School.2 FSI (CBU) Petrol NonHomologated Table 6 Ex-Showroom(Rs. Pune 2009 Audi TT: Audi TT: Variants 3.) 52.27.
84.46.396 1. Pune 2009 Audi R8: Price of Audi R8: Table 7 Variants R8 (CBU) Petrol R tronic R8 (CBU) Petrol Manual Ex-Showroom 1.14.396 48 | P a g e Audi Pune .Sinhgad Business School.14.84.432 1.38.432 On road Individual 1.46.38.
Pune 2009 Industry data and Secondary Research data 49 | P a g e Audi Pune .Sinhgad Business School.
A surge in the country's economic growth rate and purchasing power has fueled a 17% annual growth rate in the Indian automobile industry since 1991. The automotive industry generates direct and indirect employment to about 13. If you talk about the B-segment cars. and FIAT. It also depends a lot on the facilities provided and the technology involved in the manufacturing of the vehicle. Automobile prices are influenced by a number of factors. A particular segment comes under a particular price range. 50 | P a g e Audi Pune . Hyundai. Maruti. TATA. Following India's economic liberalization in 1991. India is a growing market for automobile companies across the world. automobile prices usually under go a revision. producing cars in different sizes and different price range have established their production and operation centers in the country. The number of cars sold domestically is projected to double by 2010. they are generally bigger in size and have enhanced features and functionalities. The most vital parameter in deterring the automobile prices is the target market. Automobile prices also vary according to the segments of car. The price of a particular model of car of a specific company depends on the price of the similar models manufactured by other companies. Cars falling under A-segment are usually low priced. Indigenous car manufacturing companies also are coming up with many new cars fitted with world-class comforts. However. and domestic production is skyrocketing as foreign makers are setting up their own production plants in India. All the small cars come under A-segment cars.3 million units in 2008 — is expected to become one of the major global automotive industries in the coming years. Suzuki. Usually the prices of B-segment cars are not comparably more than A-segment cars. Some of the car manufacturers selling A segment cars in India include. The government’s 10-year plan aims to create a $145 billion auto industry by 2016. With various options for safety and comfort. Pune 2009 Indusry data: The automobile industry in India — the ninth largest in the world with an annual production of over 2. Various car manufacturers falling under a specific segment fix almost similar price for cars with almost similar features. many world-class car manufacturers.1 million people as of 2006-07. the automobile industry was opened for 100 percent foreign direct investment. Usually price of these A-segment cars falls under a range of Rs 2 Lacs to Rs 3Lacs. India being a major focus for many worldclass car manufacturers. There are a number of companies and automobile prices also vary from company to company and model to model. India’s car market has emerged as one of the fastest growing in the world. Chevrolet. With the boom in the automobile industry in India.Sinhgad Business School. a little variation in the automobile prices is noticed depending on the additional features added to that model. these B-segment cars represent the mid-sized cars.
Undoubtedly fitted with the best engines to ensure optimum efficiency and fuel economy.Sinhgad Business School. which they are spending in buying luxury cars. Some of the reputed Csegment car manufacturers operating in India include. and Skoda offer various Dsegment cars in India. BMW. Hyundai. The prices of these cars can start from Rs 15 Lacs to even more than Rs 1 crore. Lexus. which in turn have led to the growth of the luxury car market in India. Mitsubishi. v 51 | P a g e Audi Pune . Pune 2009 The next higher priced cars are fall under the C-segment cars. The D-segment cars are different in a sense that they represent luxury. Ford. Audi. The automobile manufacturers and the financial institutions have launched various loan schemes. TATA. With the IT boom in the country many youngsters are earning high pay packages. And this have further given boost to the market of luxury car in India. Mercedes. These cars usually come under a price range of Rs 5lacs to Rs 10 Lacs or more. the D segment cars give the best comfort and luxury. Suzuki. This has made it very easy for the people to buy luxury cars and this has boosted the luxury car market in India. which enable them to buy luxury cars. The government have formulated many polices such as the relaxation of equity regulations and the reduction of import tariffs pertaining to the automobile industry. These have helped to reduce the prices of the luxury cars. Hyundai. The various reasons for the growth of the luxury car market in India are: v v v The economy is rising in the country that has given the people more disposable income. and Chevrolet. Honda.
Sinhgad Business School, Pune 2009
Secondary Research data:
Competitors: Through the early 1990s, Audi began to move more towards the position of being a real competitor in its target market against global luxury leaders Mercedes-Benz and BMW.
Porter’s model Michel E. Porter has identified five forces that determine the industry environment. These five forces shape the competition within the industry. A stronger competitive force is regarded as a threat because it depresses profits while a weaker competitive force is viewed as an opportunity because it allows the company to earn greater profit. 1. Risk of entry by potential competitor: Factors that make it costly for the companies that are not currently competing in an industry but have the capability to do so if they choose. 2. Rivalry among established companies: The competitive struggle between the companies in an industry to gain market share from each other. 3. The bargaining power of the buyers: The ability of buyers to bargain down price charged by the companies in the industry or to raise the cost of companies in the industry by demanding better product quality and service. 4. The bargaining power of suppliers: The ability of suppliers to raise input prices, or to raise the cost of the industry. 5. Substitute product: The product of different businesses or industries that can satisfy similar customer needs. Fig 2.1 Potential Entrants
Existing industry competitors
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Sinhgad Business School, Pune 2009
Porter’s model for Audi in India Fig 2.2 1.Potential Entrants 1.Many foreign players l ike Ferrari, Aston Martin, Nissan, Jaguar etc are penetrating into the Indian luxury car market.
5. The luxury car market is still in the growth stage and very few players like Mercedes and BMW are the main competitors of Audi Low
5.Existing industry competitors Medium
2. Most of the luxury cars are CBUs. So there are very few suppliers because market of luxury car is still very niche only few players in India
3.The products are highly customized so buyers cannot the influence the product price but they can have an effect on their own vehicle’s price because price is not the important factor when it Low comes to luxury products. 4.Substitutes
4.While there is possible competition from lower segment cars, chartered planes and many luxurious products but nothing can give customers, the kind of experience of owning these luxurious cars.
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Sinhgad Business School, Pune 2009
Industry life cycle Industry life cycle model identifies five sequential stages in the evolution of an industry that leads to five distinct kinds of industry environment i.e. embryonic, growth, shakeout, mature, and decline. Luxury Car Market is in the growth stage as shown in the Figure 3.
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Sinhgad Business School, Pune 2009
Indian luxury car market: There are enough people in India who can afford these high-stickercars. The National Council of Applied Economic Research (NCAER) says that by 2010 India will have an astonishing 1,40,000 households that earn over Rs. 1 crore (Rs 10 million) a year. That's up from 53,000 such household in 2005 & just 20,000 households in 2001-02. So clearly, the list of prospective buyers for super luxury cars is growing. Further, a Keystone India report, The World's Top Auto Markets by 2030, projects that over the next 23 years, emerging markets will account for a stunning 69% of industry sales and 87% of vehicle registrations. China and India will be the major players, as their combined shares of motor vehicle registrations will from 5.3 to 37% by 2030. Although China is likely to become the world's largest motor vehicle market by 2017, India, due to its late start, is projected to catch up quickly, surpassing Japan within 10 years to third place in sales. By 2030, India's auto market is expected to be similar to the United States' in size. However, the premium carmakers recognize that in India they are in for a long haul. Audi India is targeting sales of 1,500 cars this year, an increase of over 450 from 2008, and hopes to capture 15 percent share in the domestic luxury car market. While Mercedes Benz India hopes to sell 4,000 units a year by 2010. Porsche has sold about 500 cars ever since it began operations in India in 2004. An erstwhile favorite car of the erstwhile maharajahs, the Rolls Royce, made a comeback to India after 5 decades, in April 2005. In one year, eight Rolls' were sold. "Despite over 100 per cent import duty, sales of imported BMWs were soaring. Ferrari’s announcement to roar into the Indian market from 2010 & Aston martin’s aspirations to enter into the Indian automobile market by next year also signals that the market has just picked up the pace and there are greater possibilities for these marques to thrill the ‘Global Indians’. Analysts estimate a continued growth rate of 12-15 % per annum in the luxury car market of India. While luxury brands make the rush for India, Indian companies are not far behind in trying to acquire some premium names -- Tata Motors recent acquisition of Ford's Land Rover, and Jaguar brands. It seems that one way or another; India's tryst with luxury car brands is only just beginning.
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Pune 2009 Data Analysis 56 | P a g e Audi Pune .Sinhgad Business School.
1 Response Yes No Total Fig 4.2 57 | P a g e Audi Pune . Pune 2009 1.Sinhgad Business School. of respondents 48 52 100 Fig 4.1 No.Do you own a luxury car? Table 8.
4 wanted to buy SUV(2 Audi Q5 and 2 Audi Q7) and 1 wanted to buy a Coupe. of Owners 10 18 12 3 2 1 1 1 48 Mercedes: Totally 18 people were owning Mercedes. v 11 people were owning Mercedes for more than 2 years v 4 people were owning Mercedes for 1-2 years.2 Car Models Audi Mercedes BMW Pajero Toyota Altis Chevrolet Captiva Range Rover Maruti Suzuki Grand Vitara Total No.1year nobody wanted to buy People owning Mercedes for 0-6months: Out of 2 people who were owning Mercedes for 0-6 months both don’t wanted to buy Ø Ø Ø And all the 18 people who were owning Mercedes were aware of the Quattro feature of Audi.(Audi TT).e Audi A6) wanted to buy. Pune 2009 Table 8.Sinhgad Business School. v 2 people were owning Mercedes for 6 months – 1year v 1 person was owning Mercedes for 0-6 months Ø People owning Mercedes for more than 2 years(11 people): 10 people wanted to buy the car and 1 person did not wanted to buy. People owning Mercedes for 1-2 years: Out of 4 people those who owned Mercedes for 1-2 years 1(Sedan of Audi i. 5 wanted to buy a Sedan(2 BMW . 58 | P a g e Audi Pune . Out of those 10 who wanted to buy a new car. People owning Mercedes for 6 months-1year: Out of 2 people who were owning Mercedes for 6 months.2 Audi A6 and one of other brand).
4 wanted to buy a Sedan(3 preferred Mercedes and 1 Audi i. and he wanted to buy a SUV of Audi i. And all the 12 people who were owning BMW were aware if the Quattro feature of Audi. v 8 people were owning a Audi for 6 months-1year. People owning Audi for 0-6months: There was one person who was owning a Audi for past 6 months and he wanted to buy a new car. v Nobody was owning a Audi for more than 2 years. Audi Q7. 3 were owning A6 and 2 were owning Q7. He wanted to buy a Audi SUV i. v 1 person was owning a Audi for 1-2 year.and 2 don’t wanted to buy a new car. v 1 person was owning a Audi for past 6 months.Sinhgad Business School. 1 wanted to buy a new car and he wanted to buy SUV of Audi i.(5 were owning A4.e. Ø People owning BMW for 0-6 months: Out of 2 people who were owning BMW for past 6 months. nobody wanted to buy a new car. Audi Q5. 2 of them Audi Q5 and 1 Audi Q7).4 of them wanted to buy a SUV(1 wanted to buy BMWs SUV and other 3 wanted to buy Audi SUV i. Ø People owning Audi for 1-2 years: The person who was owning a Audi for past 1 year wanted to buy a new car.And the remaining 1 person wanted to buy a Sedan of Mercedes. Pune 2009 BMW: Totally 12 people were owning BMW v Nobody was owning a BMW for more than 2 years v 7 people were owning BMW for 1-2 years v 3 people were owning BMW for 6-month-1 year v 2 people were owning BMW for 0-6 months Ø People owning BMW for 1-2 years: Out of 7 people who owned BMW for 1-2 years all 7 wanted to buy a new car. Audi Q5. v Ø Ø 59 | P a g e Audi Pune . People owning Audi for 6 months-1 year: Out of 8 people who were owning Audi for 6 months-1 year. 5 wanted to buy a new car. A4) and 3 wanted to buy a SUV(2 preferred Audi Q5 and 1 Audi Q7) People owning BMW for 6months-1 year: Out of 3 people who were owning BMW for 6 months-1 year.e.e. Audi: Totally10 people were owning Audi.e.e.
2 Toyota Altis 1 Suzuki Grand Vitara 1 Chevrolet Captiva 1 Range Rover v Out of 3 people who were owning Pajero from 1-2 years and 2 of them wanted to buy a new car and both wanted to buy a SUV . Out of 2 people who were owning for past 6 months both don’t wanted to buy a new car.1 wanted to buy Audi Q7 and other wanted to buy BMW’s SUV. The person owning Chevrolet Captiva for past 6 months wanted to buy a Audi SUV i. The person owning Suzuki Grand Vitara for 1-2 years don’t wanted to buy a new car. Pune 2009 All were aware of Quattro as they owned a Audi. v v v v Out of 8 people owning other luxury car 7 were aware of Quattro feature of Audi.Sinhgad Business School. Others: Totally 8 people were owning luxury car of other brands. The person owning Range Rover for past 6 months don’t wanted to buy a new car.e. 3 were owning Mitsubishi Pajero. Audi Q5. 60 | P a g e Audi Pune .
2 61 | P a g e Audi Pune . of respondents 8 13 16 11 48 Fig 5.1 No.How long has it been you owning this car? Table 9 Response 0-6 months 6 months-1 year 1-2 year More than 2 years Total Fig 5. Pune 2009 2.Sinhgad Business School.
3 Audi Q5 and 1 Audi Q7 and 1 wanted to buy BMW’s SUV ) 16 people were owning a luxury car for 1-2 years and 11 of them wanted to buy a new luxury car.Sinhgad Business School. who wanted to buy a new car. 5 wanted to buy Sedan (1 wanted to buy other sedan 2 wanted to buy BMWs sedan and 2 wanted to buy Audi sedan i.e 2 Audi Q7 and 3 Audi Q5) 11 people were owning a luxury car for more than 2 years and 10 wanted to buy a luxury car.e. v v v 62 | P a g e Audi Pune . only 2 out of 8 wanted to buy a new car and both wanted to buy a Audi SUV(1 wanted to buy Audi Q5 and other Audi Q7) 13 people were owning a luxury car 6 months-1 year.6 of them wanted to buy a new luxury car and 7 don’t wanted to buy a new car. Out of those 10. Out of those 6.e. 5 of them wanted to buy a SUV (4 of them wanted to buy Audi SUV i. Out of those 11 who wanted to buy a new luxury car 5 wanted to buy a new Sedan(3 wanted to buy Mercedes and 2 wanted to buy Audi Sedan 1 Audi A4 and 1 A6) and 6 wanted to buy SUVs(1 wanted to buy BMW’s SUV and 5 of Audi i. both Audi A6) .e Audi TT. And 1 wanted to buy Coupe of Audi i. Pune 2009 v 8 people were owning a luxury car for past 6 months.4 wanted to buy SUV all wanted to buy Audi SUV(2 Audi Q7 and 2 Audi Q5).
Sinhgad Business School. of respondents 29 19 48 Fig 6.2 29 people wanted to buy a new car. Out of those 29 people different people preferred different type of car. Pune 2009 5. 63 | P a g e Audi Pune . Would you like to buy/change the car? Table 10 Response Yes No Total Fig 6.1 No. The type of car preferred is shown in the next table.
2 64 | P a g e Audi Pune .Sinhgad Business School. What type of car do you like to buy? Table 11 Response Sedan SUV Coupe Other Total Fig 7. of respondents 11 17 1 0 29 Fig 7. Pune 2009 6.1 No.
v v 65 | P a g e Audi Pune . Ø 4 wanted to buy a Sedan of Mercedes Ø 4 wanted to buy Sudan of Audi( 1 wanted to buy Audi A4 and 3 wanted to buy Audi A6) Ø 2 wanted to buy a Sedan of BMW Ø 1 wanted buy a Sedan of some other brand. Pune 2009 v 11 people those who wanted to buy a luxury car wanted to buy a Sedan type car.Sinhgad Business School. 17 people those who wanted to buy a luxury car wanted to buy a SUV type car: Ø 15 of them wanted to buy Audi SUV(9 wanted to buy Audi Q5 and 6 wanted to buy Audi Q7) Ø 2 wanted to buy BWM SUV. 1 person wanted to buy a Coupe type car and he wanted to buy Audi TT.
Which company’s car would you like to buy? Table 12 Response Audi Mercedes-Benz BMW Other Total Fig 8. of respondents 20 4 4 1 29 Fig 8.Sinhgad Business School. Pune 2009 7.1 No.2 66 | P a g e Audi Pune .
1 No. Which Audi car would you like to buy? Table 13 Response A4 A6 A8 Q5 Q7 TT R8 Total Fig 9.2 67 | P a g e Audi Pune . Pune 2009 8. of respondents 1 3 0 9 6 1 0 20 Fig 9.Sinhgad Business School.
Are you aware of Quattro feature of Audi? Table 14 Response Yes No Total Fig . of respondents 66 34 100 v v 47 people who were owning luxury cars were aware of Quattro feature of Audi and 1 owning was not aware of Quattro feature of Audi.Sinhgad Business School. 68 | P a g e Audi Pune .10 No. 19 people who were not owning luxury car were aware of Quattro feature of Audi and 33 who were not owning were not aware of Quattro feature of Audi. Pune 2009 9.
Pune 2009 10.2 69 | P a g e Audi Pune . of respondents 11 5 3 17 51 13 100 Fig 11.1 No. What will you look for in a luxury car? Table 15.Sinhgad Business School.1 Response Technology Efficiency Speed Style Brand Image Other Total Fig 11.
Sinhgad Business School. of people who were not owning luxury car responded Table 15. of people who own luxury for following features Table 15.3 Response No. of respondents Technology 5 Efficiency 3 Speed 1 Style 6 Brand Image 35 Other 2 Total 52 70 | P a g e Audi Pune . of respondents Technology 6 Efficiency 2 Speed 2 Style 11 Brand Image 16 Other 11 Total 48 v The no. Pune 2009 v The no.2 Response No.
48 were owning a luxury cars and 52 were not owning a luxury car.1 Response Yes No Total Fig 12.1 No. of respondents 94 6 100 Fig 12.2 v Out of 94 people who responded as “Yes”. 71 | P a g e Audi Pune . Do you know where Audi Pune is? Table 16. Pune 2009 11. 46 of them knew where Audi Pune is and 2 of them did not know where Audi Pune is located.Sinhgad Business School. v Out of those 48 who were owning luxury car.
Sinhgad Business School. of people owning cars of various brand knew where Audi Pune is located. Table 16. No. 48 of them knew where Audi Pune is located and 4 of them did not know where Audi Pune is located. Pune 2009 Out of those 52 who were not owning a luxury car.2 Various Car Brands Yes No Mercedes 18 BMW 12 Audi 10 Pajero 2 1 Captiva 1 Suzuki Grand Vitara 1 Range Rover 1 Toyota Altis 1 1 Total 46 2 v 72 | P a g e Audi Pune .
Pune 2009 Findings and Conclusion 73 | P a g e Audi Pune .Sinhgad Business School.
customization and after-sales service etc. Buyer’s expectation is to get the ‘world-class’ overall experience. They enjoy luxury for the way it makes them feel. value for money from the vehicle. They are willing to pay a premium for goods that express their individuality and make others take notice and are not overly concerned with product longevity. They make logical decisions rather than emotional or impulsive decisions. There is better market potential for cars in Pune 2. 4. From the study it was found that people who own luxury cars are frequent buyers of these cars and buy a new luxury car once in every 2-3 years. v Luxury is Functional – these customers tend to buy luxury products for their superior functionality and quality. 7. Classy vehicle respondents come in this category of the customers. The luxury car market is experiencing the pull strategy. “ I have made it! ” They are motivated by their desire to be successful and demonstrate this to others. They want to purchase “smart” luxury that demonstrates importance v Luxury is indulgence – The purpose of this category’s customers is to lavish themselves in self-indulgence. Survey finds that SUVs are more preffered when it comes to buying a Audi car 5. Customers who responded adventurous vehicle as the prime option for buying comes in this category. In terms of the product quality. I found in the discussions that some customers are very fond of showing off their vehicles while some are very reserve with their vehicles. 74 | P a g e Audi Pune . Luxury brands that have widespread recognition are popular. Status symbol is the prime requirement of the luxury customers. 3. They are not pushing the product into the market. Messages that highlight product quality and are information-intensive are powerful with this category. however they don’t wish to appear lavish in their appearance. Pune 2009 Findings 1. After the survey we can place the Audi customers in three groups according to what luxury means to them. 6.Sinhgad Business School. 8. Consumers in this category tend to be wealthier and are willing to spend more money to buy things that will last and have enduring value. This group is the smallest of all. v Luxury is reward – this category of customers tends to be younger than the first group. therefore they have a more emotional approach to purchases. They use luxury cars as a status symbol to say.
The study has also captured the mindsets of sales people about the customers in the form of valuable suggestions. have helped me in this project by their responses. Pune 2009 Conclusion In this report an effort was made to study the brand value of Audi in market and how well the people of Pune know Audi and Audi Pune as dealer. 75 | P a g e Audi Pune . It was observed during the study that customers being very successful and busy could not give sufficient time for the in-depth survey about their buying decision. This study has intended to capture the mindset of existing luxury car customers by the way of survey and personal interviews. which if implemented properly will surely bridge the gap between customer’s desired expectations.Sinhgad Business School. But whoever had the time.
Pune 2009 Recommendations 76 | P a g e Audi Pune .Sinhgad Business School.
It should also carry out joint marketing activities with their exclusive dealer. Audi Pune should enhance their database not by the number of prospects but the value of the database. To motivate the employees and workers. v Recommendations to Audi Pune: v v Audi Pune should take initiatives for push strategy into the market. so that the customer can visually experience Audi when he cannot visit the showroom. Pune 2009 Recommendations to Audi AG: v Audi AG should conduct mass promotional activity when its entering a new market like India. 77 | P a g e Audi Pune . where there is a frequent movement of rich people. For better prospecting. Audi should launch more sports cars or coupe/roadsters in India as the number of young population is more and youths mostly prefer Coupe/Roadster.Sinhgad Business School. v v v Overall the study was able to achieve the set objectives. even though the number is small. Because only by correct prospecting. some kind of awards on the basis performance should be introduced. attitude and behavior of the prospects to qualify better among them. people from the remote places of India are also buying luxury cars. Its not that Audi has the potential customers only in Tier I and Tier II cities. Audi Pune should conduct more road shows in posh areas of Pune. It also needs to do prospecting right. they should take current sales trends into consideration. While prospecting. It should involve the buying history. Audi Exclusive dealers like Audi Pune should give CDs of Audi models. push strategy works.
second revised editon. Overdrive .wikipedia.com www. Dr.Sinhgad Business School.com www.com www.New Delhi. sixth edition. Business Today 4.Car & Bike Magazine 3. Donald S.Car & Bike Magazine 2. Pune 2009 Bibliography Books: 1. 1997.siamindia.com www.com www. 2005. 4Ps Websites: www. twelfth edition.team-bhp.net www.1999.audi. Philip Kotler & Kevin Lane Keller. Sultan Chand & Sons 3.in www. Prentice-Hall of India( now known as Pearson Education Inc) 2.google.cartradeindia.scribd. Marketing Management.indiaautomotive.com 78 | P a g e Audi Pune . New Delhi. New Delhi.com www. Prentice-Hall of India Magazines: 1. Auto India . Marketing Research.managementparadise.Tull & Del I Hawkins.D.D Sharma. Marketing Research Principles Applications and Cases.
Pune 2009 Annexure QUESTIONNAIRE Survey regarding Brand Awareness of Audi in Pune. no 6 6. 1. Yes?Â b. no 3 b. Are you aware of Quattro feature of Audi? a. No?À 8.6 months-1 year?¼ c. Technology?— b. As per my academic curriculum I am doing my summer internship on luxury cars from Audi Pune. A4?´ b. What type of car do you like to buy? a. Brand Image?— f.A6?´ c. How long has it been you owning this car? a. Coupe?Ê d. Speed?— d. Which company’s car would you like to buy? a. 0-6 months?¼ b.SUV?Ê c. Would you like to buy/change the car? a. Sedan?Ê b. Style?— e. More than 2 years?¼ 3. No?³ 2. Yes ?Àb. Other?¡ ?¡ _______________ (Please Specify) 79 | P a g e Audi Pune .Sinhgad Business School.1-2 year?¼ d. What will you look for in a luxury car? a. Other?Ê_______________(Please Specify) 5. Other?Ò___________(Please Specify) If you do not choose Audi skip Q.Q5?´ e. Audi?Ò b.Q7?´ f. No go to Q. Yes?³ ___________________ (Please Specify) If.A8?´ d. Please tick R where appropriate. no 7 4. No?Â If. R8?´ 7. Efficiency?— c. For that purpose I need few minutes of your precious time. No go to Q. Do you own a luxury car? a. TT?´ g. Mercedes-Benz?Ò c. BMW?Ò d. Which Audi car would you like to buy? a.
Do you know where Audi Pune is? a. Yes?÷ ________________ b. Pune 2009 9. No?÷ Personal Information: Name: ________________________________________________________________________ Contact No: ___________________________________________________________________ Address: ______________________________________________________________________ Thank you for participation 80 | P a g e Audi Pune .Sinhgad Business School.
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