A study on

BRAND MANAGEMENT STRATEGIES

With reference of

“AUDI”
A project report submitted in partial fulfilment for the requirement for the award of
the degree of

Bachelor of Commerce

Submitted by
“P.Bharat”
Regd no: 2016-1708072

Under the guidance of

Dr (Smt) V.Vijaya lakshmi

Assistant Professor

Department of commerce
GVP COLLEGE FOR DEGREE AND PG COURSES
(AUTONOMOUS)
Affiliated to Andhra University
(Accredited by NAAC with B++)
Dwarakanagar, Visakhapatnam-530045.
Batch: 2016-2019

5
 DECLARATION

I hereby declare that the project work entitled “BRAND MANAGEMENT

STRATEGIES with reference of AUDI” an original report submitted to words the
partial fulfillment for the award of degree BACHELOR OF COMMERCE
Affiliated to Andhra University, VISAKHAPATNAM and it is not submitted
anywhere either in part or in full for degree or under graduation of any university.

Place: VISAKHAPATNAM
Date:

_______________________
P.Bharat

Regd No : 2016 – 1708072

6
 CERTIFICATE

This is to certify that project work entitled “BRAND MANAGEMENT

STRATEGIES with reference of AUDI” genuine and bonafied work done by Mr.
P.Bharat. A student of Final year B.com, GVP College of Degree and PG Courses,
Visakhapatnam for the Award of B.Com Degree from Andhra University under my
guidance and supervision.

Place: Visakhapatnam
Date:

________________________________
Dr (Smt) V.Vijaya lakshmi
Assistant Professor
Department of commerce

7
 ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of

any task would be incomplete without the mention of the people who made it possible
and whose constant guidance and encouragement crowned all the efforts of success.
I am greatful to Prof.MADHUKAR PATNAIK, Principal, Gayatri Vidya
Parishad, College for Degree and PG Courses (Autonomous), Dwarkanagar campus,
Visakhapatnam for having allowed me to take up this project and utilize all the
resources available from the college.
I would like to express my sincere gratitude to Dr.M.F. RAHMAN, Director, Gayatri
Vidya Parishad, College for Degree and P.G. Courses (Autonomous), Dwarkanagar
campus, Visakhapatnam for giving me an opportunity to work in this project.
I would like to thank Dr (Smt) V.Vijaya lakshmi
, Assistant Professor of Commerce, Gayatri Vidya Parishad, College for
Degree and P.G. Courses, Visakhapatnam for giving me an opportunity to work in
this project and providing kind suggestions as and when required.
My special thanks to all the members of the staff in the Department of
Commerce, who have helped me in the completion of my project.
I would like to thank my parents who encouraged me throughout my
educational endeavour and my project work.

Place: G V P College for degree and P.G. courses

Dwarkanagar campus,
Visakhapatnam

P.Bharat
2016-1708072
Final year B.com

8
 INDEX

Serial no. Chapters Page no

I CHAPTER 1: INTRODUCTIONS
a) Introduction 7-15
b) Objective 16-17
c) Methodology 18-20
d) Chapterisation 21

II CHAPTER 2:COMPANY PROFILE

a) Industry profile 23-25
b) General profile
1. Mission 26
2. Origin & History 27-28
3. Objective 29-30
4. S.W.O.T. Analysis 31-33
5. Unique Achievements 34-37
6. Future Plans 38-40

III CHAPTER 3: CONCEPTUAL PROFILE

a) Theoretical aspects of the “concept” 42-47

IV CHAPTER 4: FINDING, ANALYSIS AND 52-59

INTERPRETATION
V CHAPTER 5: SUMMARY AND SUGGESTIONS 61-62
a) Summary
b) Suggestions
VI ANNEXURES 64-65

VII BIBLIOGRAPHY 67

9
CHAPTER-1
INTRODUCTION

10
 Introduction

This project is done under the title “Brand Management.”

Audi AG is a German automobile manufacturer that designs, engineers,

produces, markets and distributes luxury vehicles. Audi is a member of
the Volkswagen Group and has its roots at Ingolstadt, Bavaria, Germany. Audi-
branded vehicles are produced in nine production facilities worldwide.
The origins of the company are complex, going back to the early 20th century
and the initial enterprises Horch and the Audiwerke founded by
engineer August Horch; and two other manufacturers DKW and Wanderer,
leading to the foundation of Auto Union in 1932. The modern era of Audi
essentially began in the 1960s when Auto Union was acquired
by Volkswagen from Daimler-Benz. After relaunching the Audi brand with the
1965 introduction of the Audi F103 series, Volkswagen merged Auto Union
with NSU Motorenwerke in 1969, thus creating the present day form of the
company.
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 predecessor company, Auto
Union. Audi's slogan is Vorsprung durch Technik, meaning "Being Ahead
through Technology". However, Audi USA had used the slogan "Truth in
Engineering" from 2007 to 2016, and have not used the slogan since
2016.[11] Audi, along with BMW and Mercedes-Benz, is among the best-selling
luxury automobile brands in the world.

11
 Audi AG

Audi head office in Ingolstadt

Industry Automotive

Predecessor Auto Union GmbH

NSU Motorenwerke AG

Founded Historic
Zwickau, Germany
(25 April 1910; 108 years ago)
Modern-era
Neckarsulm, Germany
(1 January 1969; 49 years ago)

Founder August Horch

Headquarters Ingolstadt, Germany

Number of 11 production facilities in 9 countries

locations

Area served Worldwide

12
Key people  Abraham Schot, Chairman of the Board of Management
 Marc Lichte, Head of Design
 Ulrich Hackenberg, Head of Technical Development

Products Luxury vehicles

Production output 1,879,840 units

Revenue €60.128 billion (2017)

Operating income €4.671 billion (2017)

Net income €3.479 billion (2017)

Total assets €63.680 billion (2017)

Total equity €28.171 billion (2017)

Owner Volkswagen Group (99.55%)

Number of 91,231 (2017)

employees

Divisions  Audi e-tron

 Audi India

Subsidiaries  Audi Brussels

 Audi Hungaria Motor Kft.
 Ducati
 Italdesign Giugiaro
 Lamborghini
 Audi Sport GmbH

Website audi.com

13
 Growth of Audi in India
Audi India sold 3,003 vehicles in the year 2010 compared to 1,650 vehicles in 2009
and registered an increase of 81% in sales growth. "Currently, 96 per cent of our sales
are assembled in India. This helps us in offering products at competitive prices.
Because of this, we have been able to capture a market share of 34 per cent in the
luxury segment and we will maintain this in future," King said.
The market share that the company enjoys in India is the highest for Audi across all
its operations in the world, he added. Audi has a 41% growth rate in India

Year 2010 2011 2012 2013 2014 2015 2016 2017 Total
Units 3003 5511 9003 11198 10851 11192 7742 7876 66376
sold

Series 1
12000

10000

8000

6000
Series 1

4000

2000

0
2010 2011 2012 2013 2014 2015 2016 2017

14
List of Top Leading automobile Companies in India:

a. Mercedes Benz
b. BMW
c. Porsche
d. Lexus

Mercedes-Benz: Mercedes-Benz is a global

automobile marquee and a division of the German
company Daimler AG. The brand is known for luxury
vehicles, buses, coaches, and Lorries. The headquarters
is in Stuttgart, Baden-Württemberg. The name first
appeared in 1926 under Daimler-Benz.
Mercedes-Benz traces its origins to Daimler-Motoren-
Gesellschaft's 1901 Mercedes and Karl Benz's
1886 Benz Patent-Motorwagen, which is widely
regarded as the first gasoline-powered automobile. The slogan for the brand is "the
best or nothing

BMW: BMW originally an initialism for Bayerische

Motoren Werke in German, or Bavarian Motor
Works in English is a German multinational company
which currently produces
luxury automobiles and motorcycles, and also
produced aircraft engines until 1945.
The company was founded in 1916 and has its
headquarters in Munich, Bavaria. BMW produces
motor vehicles in Germany, Brazil, China, India, South
Africa, the United Kingdom, and the United States. In 2015, BMW was the world's
twelfth largest producer of motor vehicles, with 2,279,503 vehicles
produced. The Quandt family are long-term shareholders of the company, with the
remaining shares owned by public float.
Automobiles are marketed under the brands BMW (with sub-brands BMW M for
performance models and BMW i for plug-in electric cars), Mini and Rolls-Royce.
Motorcycles are marketed under the brand BMW Motorrad.
The company has significant motorsport history, especially in touring cars, Formula
1, sports cars and the Isle of Man TT.

15
 Porsche: Dr F. Porsche AG, usually
shortened to Porsche AG German
pronunciation: is a German automobile
manufacturer specializing in high-
performance sports cars, SUVs and sedans.
Porsche AG is headquartered in Stuttgart, and is
owned by Volkswagen AG, which is itself
majority-owned by Porsche Automobile
Holding SE. Porsche's current lineup includes
the 718 Boxster/Cayman, 911, Panamera, Macan and Cayenne.
his article is about the automotive brand and manufacturer, Porsche AG. For the
holding company that is the majority owner of Volkswagen Group, see Porsche SE.
For other uses of Porsche, see Porsche (disambiguation).

Lexus: Lexus is the luxury

vehicle division of Japanese
automaker Toyota. The Lexus marque is
marketed in more than 70 countries and
territories worldwide and has become
Japan's largest-selling make of premium
cars. It has ranked among the 10 largest
Japanese global brands in market
value. Lexus is headquartered in Nagoya,
Japan. Operational centers are located
in Brussels, Belgium and the U.S. in Plano,
Texas.
Lexus originated from a corporate project to develop a new premium sedan, code-
named F1, which began in 1983 and culminated in the launch of the Lexus LS in
1989. Subsequently, the division added sedan, coupe, convertible and SUV models.
Lexus did not exist as a brand in its home market until 2005, and all vehicles
marketed internationally as Lexus from 1989 to 2005 were released in Japan under the
Toyota marque and an equivalent model name. In 2005, a hybrid version of
the RX crossover debuted and additional hybrid models later joined the division's
lineup. Lexus launched its own F marque performance division in 2007 with the debut
of the IS F sport sedan, followed by the LFA supercar in 2009.
Lexus vehicles are largely produced in Japan, with manufacturing centered in
the Chubu and Kyushu regions, and in particular at Toyota's Tahara, Aichi, Chubu
and Miyata, Fukuoka, Kyushu plants. Assembly of the first Lexus built outside the
country, the Ontario, Canada-produced RX 330, began in 2003. Following a corporate
reorganization from 2001 to 2005, Lexus began operation of its
own design, engineering and manufacturing centers.

16
 Production

Audi manufactures “Vorsprung durch Technik” at twelve sites with lengthy traditions
of car manufacturing. Cutting-edge logistical processes, the synchronised Audi
Production System and a highly qualified workforce of around 90,000 guarantee
uniform Audi standards worldwide. Every Audi production site achieves very high
standards of quality, efficiency and environmental acceptability
Audi Group production sites
The global network of Audi Group production sites includes the two German sites of
Ingolstadt and Neckarsulm as well as production facilities in Hungary, Belgium and
Mexico. Within the group network of parent company Volkswagen, Audi also
manufactures cars at European production facilities in Slovakia, Spain and Russia and
worldwide in Brazil, India and China. In addition, there is Automobili Lamborghini
S.p.A., a wholly owned subsidiary of AUDI AG. The same maxim applies to all these
sites: “one name, one standard, everywhere”.

Employees (Audi Group) 91,231 (as at: December 31,

2017)

Deliveries to customers (2017) 2,105,084 cars

Reconciling ecology and economy

Audi sees itself as a provider of sustainable, customized premium mobility. That’s
why it’s important that a vehicle’s environmental balance is already offset before the
first kilometre is driven. The company is therefore working intensively to improve the
carbon balance of its manufacturing facilities and is pursuing its long-term version of
making the manufacture of all its models completely climate-neutral.

In 2014 Audi was the first premium manufacturer to have its carbon footprint certified
under the ISO 14064 international standard. In the process, the company rendered
transparent the main causes of emissions throughout the entire value chain – and
identified potential ways to further reduce greenhouse gases across the whole life
cycle of a car.

17
For Audi, premium-quality automobiles mean high-quality car bodies – thanks to
efficient production systems and new high-tech solutions. AUDI AG has one of the
most flexible and efficient production systems in the entire automotive industry: the
Audi Production System (APS), which is based on the principles of cycle, flow, pull
and perfection. Audi systematically applies these principles in production and
throughout the company, resulting in short cycle times, low inventories and large
gains in productivity. A major focus here is on the continuous improvement process
(CIP), because companies that neglect continuous improvement risk their long-term
success. Increasing digitalization is paving the way for the smart factory – the
intelligent, digitally connected production facility. New high-tech solutions in
manufacturing are further increasing the already very high level of quality, while
making assembly work easier and resulting in better ergonomics.

18
Finance:
Volkswagen Group owned, Ingolstadt based luxury car maker, Audi has registered net
profit of €5.1 billion before special items in a challenging year 2017.

Post provisioning for diesel settlement agreement for North America of €387 million
in 2017, the company registered an operating profit of €4.7 billion and the operating
return on sales of 7.8%.

The company has surpassed a turnover of €60 billion for the first time ever, more than
doubling in the last eight years.

With large part of the existing portfolio in a phase out mode, the company expects the
year 2018 to be another challenging year and the expects the fruits of new launches in
2019. On its part Audi aims to launch 20 new models during the year which is biggest
product onslaught in the history of the company. This also includes first fully electric
series produced model the E-Tron

Audi is investing heavily in the future and is applying a comprehensive program of

measures to pave the way for the profitable restructuring of its business model in line
with the “Audi. Vorsprung. 2025” strategy, the company said in a statement.

Reviewing the annual earnings Rupert Stadler, Chairman of the Board of

Management of AUDI AG stated, “In 2017, we demonstrated entrepreneurial strength
and above all formulated a determined master plan for the coming years, we intend to
play a a leading role in the tremendous upheaval facing our industry.”

19
 Objectives of the study

 An earnings contribution of at least 10 billion euros

With the Audi Transformation Plan, we will release an amount of at least 10 billion
euros in the next 5 years, by specifically improving our cost ratios and strengthening
our performance.
 Reduced complexity, increased efficiency
We will make even better use of synergies within Audi and the Volkswagen Group.
We will streamline our processes and remove unnecessary complexity from areas
without customer relevance.
 Expertise development and further-training initiative
With new organizational structures and the intensified development of expertise, we
will boost the speed of change at our company. We will increase the budget for
further training to more than half a billion euros by 2025.
 Long-term margins of 8 to 10 percent
We aim to achieve a stable, high operating return on sales of 8 to 10 percent.

Scope of the study:

The scope of this study is limited to the customer satisfaction, cars of other

companies in comparison to Audi and customer expectations and the impact of sales

strategies adopted by Audi to strengthen the customer relationship. Since it is one of

the leading players of automobile industry, the future researchers can focus their

studies on different angles of audi and its products such as marketing share, pricing

strategies, market segmentation and so on.

The study is an exercise involving estimation of parameters as regard to get the

relevant information that can be used for various organizational purposes.

20
 Limitation of the study:

The various limitations of the study are:

a) The basic objective at various stages of the study is suffered due to inadequacy of

time series data from related agencies. Therefore, the trends, the growth rate and

estimated regression co-efficient may deviate from true ones.

b) It has been seen MNCs retailers uses their big size to kill competitors.

c) Predatory pricing could strangulate the domestic retailors.

d) In order to bring goods at lowest possible price for customers they squeeze the

margins of their suppliers. So as complained by thousands that suppliers will

benefit.

e) In order to correct these anomalies, India need to have strong regulator for these

sector and at the same time strengthen the competition, commission of India

before these big retailors prowls into the Indian terrirory.

21
 Research and Methodology:

The study is an exercise involving estimation of parameters as regard

to organizational requirements- Research was designed so as to get the
relevant information that can be used for various organizational purposes. This study
is based on current data of sales and profits of the company and it can be used for
future planning and decision making purposes

Data Source:

DATA
SOURCE

PRIMARY SECONDARY
DATA DATA

Primary Data: Data used in research originally obtained through the direct

efforts of the researcher through surveys, interviews and direct

observation. Primary data is more costly to obtain than secondary data, which is
obtained through published sources, but it is also more current and more relevant to
the research project.

22
 Secondary Data: Data collected by someone other than the user. Common
sources of secondary data for social science include censuses, organisational
records and data collected through qualitative methodologies or qualitative
research.

Data Collection: The data collection method used was none other than

survey method which is usually incorporated for collection of raw information . The
survey method is advantageous because it helps to collect a great deal of information
about an individual respondent.

DATA
COLLECTION

SURVEY STATISTICAL SAMPLING

TOOLS

Statistical Tools: The tool for obtaining the information was questionnaire. A

structured questionnaire was administered and was designed in the view both major
and minor .

23
 Survey: The type of survey undertaken was visiting a showroom of AUDI
(Vishakhapatnam) keeping in consideration the time constraint and paraphemalic,
besides that also the viability of census survey . The Audi car’s owners survey thus
being taken to the right path to reach the desired destination was carefully planned to
convert the operation by using selected samples.

Sampling: This study was undertaken at Audi, Visakhapatnam. With the customer
being unknown and given the time and resource constraints random car test drive was
obtained from the showroom.

24
 Chapterisation

In chapter 1 introduction

This chapter includes an introduction to brand management strategies, the main

objectives of the project and project methodology and chapterisation.

In chapter 2 company profile contains:-

This chapter includes the mission and vision of the company, company’s
origin and history, objectives, unique achievements, SWOT Analysis and future plans.

In chapter 3 conceptual profile

This chapter includes the theoretical aspects of the “concept” in the company
was briefly described.

In chapter 4 findings, analysis and interpretation

This chapter includes the analysis on the basis of a questionnaire which was
given to 50 individuals ( 25 male and 25 female customers). The questionnaire
contained 15 questions regarding the customer relationship management from which
the analysis and interpretation was made.

In chapter 5 Summary and Suggestions

In this chapter includes a short summary of the company’s overall

performance was described and suggestions were also given.

25
 CHAPATER-II

INDUSTRY PROFILE
&
GENERAL PROFILE

26
 Industry Profile

Introduction
The Indian auto industry became the 4th largest in the world with sales increasing 9.5
per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was
the 7th largest manufacturer of commercial vehicles in 2017.
The Two Wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for
the near future. Automobile exports grew 26.56 per cent during April-July 2018. It is
expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several
initiatives by the Government of India and the major automobile players in the Indian
market are expected to make India a leader in the two-wheeler and four wheeler
market in the world by 2020.

Market Size
Domestic automobile production increased at 7.08 per cent CAGR between FY13-18
with 29.07 million vehicles manufactured in the country in FY18. During April-July
2018, automobile production increased 16.69 per cent year-on-year to reach 10.88
million vehicle units.
Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-
18 with 24.97 million vehicles getting sold in FY18. Auto sales in July 2018
witnessed a year-on-year growth rate of 7.9 per cent across segments, driven by 46.24
per cent growth in three-wheeler sales in terms of percentage.
Premium motorbike sales in India crossed one million units in FY18. Two leading
luxury car manufacturers, BMW and Mercedes-Benz, recorded their best-ever half
yearly sales in India during January-June 2018. Sales of BMW grew 13 per cent year-
on-year to 5,171 units and sales of Mercedes-Benz grew 12.4 per cent year-on-year to
7,171 units.
Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-
18.

Investments
In order to keep up with the growing demand, several auto makers have started
investing heavily in various segments of the industry during the last few months. The
industry has attracted Foreign Direct Investment (FDI) worth US$ 19.29 billion
during the period April 2000 to June 2018, according to data released by Department
of Industrial Policy and Promotion (DIPP).
Some of the recent/planned investments and developments in the automobile sector in
India are as follows:

 Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$

155.20 million) to launch 20-25 new models across various commercial
vehicle categories in 2018-19.
 Mahindra & Mahindra (M & M) is planning to make an additional investment
of Rs 500 crore (US$ 77.23 million) for expanding the capacity for electric
vehicles in its plant in Chakan.

27
  Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has
also announced to invest US$ 310 million in India.
 Mercedes Benz has increased the manufacturing capacity of its Chakan Plant
to 20,000 units per year, highest for any luxury car manufacturing in India.

Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -

 The government aims to develop India as a global manufacturing centre and

an R&D hub.
 Under NATRiP, the Government of India is planning to set up R&D centres at
a total cost of US$ 388.5 million to enable the industry to be on par with
global standards
 The Ministry of Heavy Industries, Government of India has shortlisted 11
cities in the country for introduction of electric vehicles (EVs) in their public
transport systems under the FAME (Faster Adoption and Manufacturing of
(Hybrid) and Electric Vehicles in India) scheme. The government will also set
up incubation centre for start-ups working in electric vehicles space.

Achievements
Following are the achievements of the government in the past four years:

 Number of vehicles supported under FAME scheme increased from 5,197 in

June 2015 to 192,451 in March 2018. During 2017-18, 47,912 two-wheelers,
2,202 three-wheelers, 185 four-wheelers and 10 light commercial vehicles
were supported under FAME scheme.
 Under National Automotive Testing And R&D Infrastructure Project
(NATRIP), following testing and research centres have been established in the
country since 2015
o International Centre for Automotive Technology (ICAT), Manesar
o National Institute for Automotive Inspection, Maintenance & Training
(NIAIMT), Silchar
o National Automotive Testing Tracks (NATRAX), Indore
o Automotive Research Association of India (ARAI), Pune
o Global Automotive Research Centre (GARC), Chennai
 SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres
are being set up in the country for promoting smart and advanced
manufacturing helping SMEs to implement Industry 4.0 (automation and data
exchange in manufacturing technology).

28
Road Ahead
The automobile industry is supported by various factors such as availability of skilled
labour at low cost, robust R&D centres and low cost steel production. The industry
also provides great opportunities for investment and direct and indirect employment
to skilled and unskilled labour.
Indian automotive industry (including component manufacturing) is expected to reach
Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are
expected to grow 9 per cent in 2018.
References: Media Reports, Press Releases, Department of Industrial Policy and
Promotion (DIPP), Automotive Component Manufacturers Association of India
(ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 2015-
16, Union Budget 2017-18
Note: * - Upto July 2018
Exchange Rate Used: INR 1 = US$ 0.015 as of March 1, 2018

29
 Mission

Horch was born in Winningen, Rhenish Prussia. His initial trade was as a blacksmith,
and then was educated at Hochschule Mittweida Mittweida Technical College. After
receiving a degree in engineering, he worked in shipbuilding. Horch worked for Karl
Benzfrom 1896, before founding A. Horch & Co. in November 1899, in Ehrenfeld,
Cologne, Germany.
We are creating the digital experience of tomorrow. This will make mobility safe,
convenient and individual. Our automobiles will become an integral component of our
customers’ digital lives.

By 2025, we will achieve specific goals in the area of digitalization:

 Earnings of 1 billion euros
With digital services and business models, we want to achieve a contribution to
operating profit of 1 billion Euros in 2025. The my Audi customer portal will help us
to do that.
 One Digital Platform (ODP)
We are developing a digital infrastructure with integrated service and vehicle back-
ends at the Volkswagen Group, in order to roll out services worldwide on the basis of
standards applicable across all our brands.
 Common vehicle architecture E3 architecture
We are creating a common, efficient and intelligent electronics architecture across the
Group’s brands, modules and platforms (end-to-end electronics architecture).
 Digitalizing Audi
We are digitalizing our processes and thus enhancing our efficiency – for example,
through systems engineering and virtual development.

30
 Origin and History

Automobile company Wanderer was originally established in 1885, 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.
On 14 November 1899, August Horch (1868–1951) established the company A.
Horch & Cie. in the Ehrenfeld district of Cologne. In 1902, he moved with his
company to Reichenbach im Vogtland. On 10 May 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, eventually determined that the Horch brand belonged to his former
company.
Audi Type E
Since August Horch was prohibited 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. 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 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.
The first Audi automobile, the Audi Type A 10/22 hp (16 kW) Sport-Phaeton, was
produced in the same year, followed by the successor Type B 10/28PS in the same
year.
Audi started with a 2,612 cc inline-four engine model Type A, followed by a 3,564 cc
model, as well as 4,680 cc and 5,720 cc models. These cars were successful even in
sporting events. The first six-cylinder model Type M, 4,655 cc appeared in 1924.

31
August Horch left the Audiwerke in 1920 for a high position at the ministry of
transport, but he was still involved with Audi as a member of the board of trustees. In
September 1921, Audi became the first German car manufacturer to present a
production car, the Audi Type K, with left-handed drive. Left-hand drive spread and
established dominance during the 1920s because it provided a better view of
oncoming traffic, making overtaking safer.

Like most German manufacturing, at the onset of World War II the Auto Union plants
were retooled for military production, and were a target for allied bombing during the
war which left them damaged.
Overrun by the Soviet Army in 1945, on the orders of the Soviet Union military
administration the factories were dismantled as part of war reparations. Following
this, the company's entire assets were expropriated without compensation. On 17
August 1948, Auto Union AG of Chemnitz was deleted from the commercial
register. These actions had the effect of liquidating Germany's Auto Union AG. The
remains of the Audi plant of Zwickau became the VEB (for "People Owned
Enterprise") Automobilwerk Zwickau or AWZ (in English: Automobile Works
Zwickau).
With no prospect of continuing production in Soviet-controlled East Germany, Auto
Union executives began the process of relocating what was left of the company
to West Germany. A site was chosen in Ingolstadt, Bavaria, to start a spare parts
operation in late 1945, which would eventually serve as the headquarters of the
reformed Auto Union in 1949.
The former Audi factory in Zwickau restarted assembly of the pre-war-models in
1949. These DKW models were renamed to IFA F8 and IFA F9 and were similar to
the West German versions. West and East German models were equipped with the
traditional and renowned DKW two-stroke engines. The Zwickau plant manufactured
the infamous Trabant until 1991, when it came under Volkswagen control—
effectively bringing it under the same umbrella as Audi since 1945.

32
 Objectives
By 2025, Audi will invest approximately 40 billion euros in digital, electric and
autonomous mobility. A comprehensive transformation plan will help it to do so.
With it, audi intends to enhance its performance by 2022, while improving processes
and structures at the company. The plan will accelerate new, profitable business
models and fascinating automobile milestones such as the Audi Aicon

specific goals:
 An earnings contribution of at least 10 billion euros
With the Audi Transformation Plan, it will release an amount of at least 10 billion
euros in the next 5 years, by specifically improving its cost ratios and strengthening
its performance.

 Reduced complexity, increased efficiency

Audi will make even better use of synergies within Audi and the Volkswagen Group.
It will streamline Audi’s processes and remove unnecessary complexity from areas
without customer relevance.

 Expertise development and further-training initiative

With new organizational structures and the intensified development of expertise, Audi
will boost the speed of change at its company. It will increase the budget for further
training to more than half a billion euros by 2025.

 Long-term margins of 8 to 10 percent

Audi aims to achieve a stable, high operating return on sales of 8 to 10 percent.

33
 Specific goals:
 Ensuring social responsibility and integrity
For us, economic success and responsible action are inseparably linked. Respect,
openness, responsibility and integrity are therefore key corporate values. This is based
on trusting cooperation throughout the Group and individual responsibility – always
in conformity with the company’s values and rules and one’s own moral compass.

 Promoting a culture of leadership and cooperation

We Audi people shape our company – with our decisions, in our daily work and in the
way we interact with each other. We want to use the code of cooperation, the four
corporate values and the Audi leadership mission as guidelines, so that on this basis,
we can continue to be economically successful as well as responsible.

By 2025, we will achieve specific goals in the area of sustainability:

 Leading premium brand for electric cars
In the year 2025, we will sell approximately 800,000 electric cars and plug-in
hybrids – approximately every third Audi. We want to become the leading
premium brand for electric cars.

 All main model series electrified

With our Roadmap E, we will offer an electrified version in each of our core
model series by 2025, either fully electric or as a plug-in hybrid. By then, we
will have more than 20 electrified models in our portfolio.

 CO2-neutral facilities
Brussels is our first certified CO2-neutral plant. Following this example, we
want to make all of our facilities CO2-neutral by 2030.

 Fuel-cell car in series production

We are developing fuel-cell technology to series maturity and will launch a
small series by the early 2020s.

34
 S.W.O.T. Analysis

STRENGTH

WEAKNESSES S.W.O.T THREATS

OPPORTUNITIES

Strengths in the SWOT analysis of Audi

Technology and engineering: Audi is known for the engineering and precision
behind their cars. And that is exactly what they market. The look and design of the car
comes with precision engineering and use of high capacity engines. The same looks
cannot be achieved without the proper manufacturing facilities or the right
manufacturing process.

Brand name: A brand is a promise and Audi definitely carries the “trust” factor
behind it. Known as one of the most safe cars in the world, Audi has the design, the
technology and the safety to be one of the best cars around. Furthermore, years of

35
proper marketing communications and years of introducing newer, faster and more
sleek cars has added to the brand name of Audi as a super premium car manufacturer.

Products: For an automobile manufacturer, the products are the key driving elements
for the success or failure of the company. This is where Audi is at its best. Audi has
varying series of car models, all from premium to super premium to ultra premium.
The A series and the Q series of Audi cars are one of the most popular and
in demandseries from Audi. But other then that, Audi also focuses on innovation with
cars like Audi ultra, Audi Quattro, Audi sport and others.

Design: BMW, Mercedes, Audi, Ferrari, all these cars are known and are premium
because of the design of their cars. Sleek, Sophisticated and Rich, all these attributes
can be associated with an Audi car. Audi cars are differentiated mainly by its logo
which involves 4 interconnected circles. Besides these, the car comes in hatchback as
well as sedan and luxury cars. The accessories which accompany an Audi car is
almost as famous as the car itself. Air bags for safety, seat and mirror warmers,
automated gears, the interior decoration of the car, all of these things contribute to the
design element of Audi.

Weaknesses in the SWOT analysis of Audi

Diversification – BMW diversified itself into low cost cars and has kept a
larger productportfolio because it wants to increase its turnover. Same strategy has not
been followed by Audi because of which BMW has taken the front seat in the luxury
car segments leaving Audi lagging behind.

Promotions and communications – The message of Audi ads always hits the
bullseye. However, Audi needs to pick up the frequency of promotions as well. You
will see Audi promoting even less then BMW which is a mistake. Although premium
brands need not be present everywhere, regular and to the point promotions which set
the idea of “premium” in the minds of the customers need to shown again and again.
Both BMW and Mercedes are promoting more vigorously then Audi.

Opportunities in the SWOT analysis of Audi

Target Emerging markets – Because of its presence in limited number of markets,

Audi can introduce its products in emerging markets as well, thereby covering more
geographical territory and bringing more turn over and profits for themselves.

Innovate for mature markets – Innovation and diversification in mature markets

will give Audi an edge from their competitors making them stand apart in the crowd.
Innovation can be in the form of battery fueled premium cars, or more energy
efficiency or the overall working of cars in themselves. Innovation is a driving force
behind differentiation which will help Audi in the long run.

36
Threats in general to luxury cars – Younger generation spending more on gadgets
and realizing the value of savings on other products

Risks of international markets – Audi cannot survive with its home territory. It has to
spread internationally. The PEST risks across countries is high which takes a lot of
time of the brand to manage.

Competition – Like any industry, competition is high even in the luxury car
manufacturers segment, the competition being strongest from BMW.

Thus overall, even though the going is good for Audi, the future is grim with the
opportunities to expand being limited in mature markets and at the same time rising
competition from Mercedes and BMW as well as other premium cars. However, Audi
being Audi, we are sure that the company will thrive in the long run and make the
necessary strategy changes to expand further and become more profitable.

37
 Unique Achievements

2018 Audi Q5 and A6 named "2018 Best Cars for

Families" in their classes by U.S. News & World
Report

 2018 Q5 named "Best Luxury Compact SUV" and 2018 A6 named "Best
Luxury Midsize Car"
 Audi tied for most awards won by an individual brand
 Awards received at New York International Auto Show

The Audi A8 is the "World Luxury Car 2018"

 Flagship model wins prestigious award

 Ninth victory for Audi in the World Car
Awards
 Audi Board Member for Development Peter Mertens: "The Audi A8 is an
innovation driver for our entire industry."

2018 Audi Q5 named one of Autotrader's "10 Best

Car Interiors"

 Award based on attractive, comfortable and

thoughtfully planned interiors for models under $50,000
 2018 Audi Q5 has improved interior space and a driver-focused cockpit with
expanded infotainment and functionality
 Second consecutive year an Audi model has won "10 Best Car Interiors"

38
 2018 Audi A3 named "Best Luxury Small Car for
the Money" by U.S. News World Report

 Awarded vehicles provide consumers with

best combination of quality and value
 A3 took top honors for outstanding value and critical acclaim
 U.S. News & World Report to present award at Chicago Auto Show

Audi A4 Named 2018 Cars.com Luxury Car of

theYear

 2018 A4 awarded Luxury Car of the Year by Cars.com at North American

International Auto Show in Detroit
 Vehicles evaluated based on quality, innovation and value
 Cars.com editors praised A4 for "luxurious trimmings, chassis dynamics,
spacious interiors and well-executed electronics"

Audi Awarded "Most Innovative Automaker"

and "Most Innovative Infotainment System" at
2018 Consumer Electronics Show

 Audi received inaugural Edmunds CES Tech Driven Awards for leadership in
innovation and tech-forward MMI® system
 Awards honor automakers at CES that demonstrate the most forward-thinking
vision and innovative technology available in 2018
 Edmunds editors recognized Audi for its "vision, bold spirit and courage in
innovation"

39
 Four Audi models earn Women's Choice
Awards at the 2017 Los Angeles Auto Show

 2018 A3 Cabriolet earns the Women's

Choice "eco-friendly" and "safety" award in convertible category
 2018 A3 Sportback e-tron earns the Women's Choice "eco-friendly" award in
hatchback category
 2018 TT Coupe and 2018 Q3 earn the Women's Choice "reliable" award in
coupe and crossover categories

Audi RS 3 Sedan Earns 2018 Car and Driver

"10Best Car of the Year" Award

 Newest Audi Sport model recognized as a

Car and Driver 10Best Car of the Year at the 2017
Los Angeles Auto Show
 RS 3 Sedan delivers unrivaled performance in its segment, coupled with a
high level of everyday functionality
 Car and Driver 10Best award is evaluated on criteria including engineering
excellence, performance and overall value

The 2018 Audi A5 Sportback and the 2018 Audi

Q5 Earn Kelley Blue Book Best Buy Awards

 The 2018 Audi A5 Sportback is named Best

Buy among luxury cars
 The 2018 Audi Q5 is named Best Buy among luxury SUVs and crossovers
 The redesigned 2018 Audi Q5 named Kelley Blue Book Best Auto Tech
Award winner in the luxury category.

40
 Audi of America earns more 2017 IIHS Top Safety
Picks than any other luxury manufacturer in its
competitive class

 Eight Audi models have been named a 2017

Top Safety Pick by IIHS
 A4 allroad, A5 Sportback, A5 Coupe and Q5
earn 2017 IIHS Top Safety Pick awards
 IIHS awards span from the Audi brand's small and midsize sedans to the
midsize and large SUV segments

2018 Audi S5 Sportback named one of Wards 10

Best User Experiences

 Wards 10 Best User Experiences evaluates

the user-friendliness and effectiveness of the vehicle's technologies and
features
 Driver-focused technologies such as the Audi Virtual Cockpit and MMI®
touch with handwriting-recognition contribute to the intelligent user
experience
 Five-door coupe remains a benchmark for exceptional integration of
technology within a refined interior design, judges said.

Audi Q7 Earns 2018 Car and Driver "10Best

Mid-Size Luxury Truck & SUV" Award for
Second Consecutive Year

 Audi flagship SUV wins Car and Driver

"10Best Truck & SUV of the Year" award in the
mid-size luxury category for second year in a row

 Car and Driver editors recognize the Audi Q7 for its practicality, driving
dynamics and innovative suite of technologies and connectivity features
 Award contenders are evaluated based on engineering excellence,
performance and overall value

41
 Audi R8

The Audi R8 is a mid-engine, 2-seater sports car, which uses Audi's

trademark quattro permanent all-wheel drive system. It was introduced by the German
car manufacturer Audi AG in 2006.

The car is exclusively designed, developed, and manufactured by Audi AG's private
subsidiary company manufacturing high performance automotive parts, Audi Sport
GmbH (formerly quattro GmbH), and is based on the Lamborghini Gallardo and
presently the Lamborghini Huracán platform. The fundamental construction of the R8
is based on the Audi Space Frame, and uses an aluminium monocoque which is built
using space frame principles. The car is built by Audi Sport GmbH in a newly
renovated factory at Audi's 'aluminium site' at Neckarsulm in Germany.

The Audi R8, based on the Audi Le Mans quattro concept car (designed by Frank
Lamberty and Julian Hoenig) first appeared at the 2003 International Geneva Motor
Show and the 2003 Frankfurt International Motor Show. The R8 development
program began in 2004 with Lamberty's design being approved and frozen for
production. In 2005, Audi announced that the name of the successful Audi R8 race
car would be used for a new road car in 2007. Production body prototypes began field
testing in January 2006. The R8 road car was officially launched at the Paris Auto
Show on 30 September 2006. There was some confusion with the name, which the car
shares with the 24 Hours of Le Mans winning R8 Le Mans Prototype. 6-time 24
Hours of Le Mans winner Jacky Ickx described the R8 as "the best handling road car
today".

42
 Future plans

German luxury carmaker Audi is set to announce a major investment for the Indian
market in 3-4 months to expand business and double sales to 20,000 units by 2018.

"An internal discussion is going on to invest in India for the expansion of our
capacities. The detailed announcement will be made in the next three to four
months," Audi India Head Joe King told PTI here.

When asked about the quantum of investment, he refused to divulge, but said that
"this is going to be a major investment by the company".

Asked if Audi India will be setting up a new facility or expanding capacities at the
existing plant of Volkswagen Group company Skoda in Aurangabad, Maharashtra,
King said: "It can be anything."

Audi currently has an installed capacity to produce 14,000 units annually on a single
shift basis in India.

He said the company is looking for a long-term strategy for the Indian market and
hopes to maintain its leadership position in the luxury car segment.

"Conservatively, we should cross 20,000 units sales mark by 2018. It can be done
before also. We are confident of retaining the leadership position till then," King said.

Audi had sold 10,851 units in 2014 and remained the largest luxury carmaker for the
second consecutive year.

"Currently, 96 per cent of our sales are assembled in India. This helps us in offering
products at a competitive prices. Because of this, we have been able to capture
a market share of 34 per cent in the luxury segment and we will maintain this in
future," King said.

The market share that the company enjoys in India is the highest for Audi across all
its operations in the world, he added.

King said the company is looking to increase its sales by 10-15 per cent during 2015.

"Last year, the luxury car market grew by 3 per cent, but we grew by 9 per cent," he
added.

King said there has been some positive momentum seen in the market after the new
government came to the power at the Centre and the company hopes that this will
continue for some time in future.

Yesterday, the company entered the North Eastern market by opening its first
dealership in Guwahati, which is expected to sell 150-200 units in the first year.

43
Yesterday, King had said Audi India is targeting 2,500- 3,000 units this year in West
Bengal, Bihar, Jharkhand, Odhisa and North East.

Earlier this month, the company had stated that it was focusing on long-term
sustainability of its business in India while maintaining the top slot.

"The important part is the foundation that we are building to ensure long-term
leadership of Audi in India and not just rather looking at monthly volumes and
competition," Member of the Board of Management of Audi AG Luca de Meo had
earlier said.

The maker of popular brands like sports utility vehicles Q3, Q5 and sedan A3 also
wants to maintain a bigger presence in the premium luxury segment.

"Conservatively, we should cross 20,000 units sales mark by 2018. It can be done
before also. We are confident of retaining the leadership position till then," King said.

Audi had sold 10,851 units in 2014 and remained the largest luxury carmaker for the
second consecutive year.

"Currently, 96 per cent of our sales are assembled in India. This helps us in offering
products at a competitive prices. Because of this, we have been able to capture
a market share of 34 per cent in the luxury segment and we will maintain this in
future," King said.

The market share that the company enjoys in India is the highest for Audi across all
its operations in the world, he added.

King said the company is looking to increase its sales by 10-15 per cent during 2018.

44
 CHAPTER -III
CONCEPTUAL PROFILE

45
 Theoretical aspects of the “BRAND MANAGEMENT”

AUDI a “Brand”

A brand is a product, service, or concept that is publicly distinguished from other

products, services, or concepts so that it can be easily communicated and usually
marketed. A brand name is the name of the distinctive product, service, or
concept. Branding is the process of creating and disseminating the brand name.
Branding can be applied to the entire corporate identity as well as to individual
product and service names.

Brands are often expressed in the form of logos, graphic representations of the
brand. A company's brands and the public's awareness of them is often used as a
factor in evaluating a company. Corporations sometimes hire market research
firms to study public recognition of brand names as well as attitudes toward the
brands.

46
 BRAND MANAGEMENT:
It includes managing the tangible and intangible characteristics of brand. In
case of product brands, the tangibles include the product itself, price, packaging etc.
While in case of service brand, the tangibles include the customer experience.
Intangible includes emotional connection with the product or services.

Objectives of a brand management:

 To produce ,promote and distribute goods that are attractive to consumers.
 To control consumer brand choice behaviour.
 To provide best deal to consumer in terms of utility value compared to
competitors.
 Creation and management of brand equity.
 Enhance brand image.
 Enhance market share.
 It forms customer perceptions..
 Optimum utilization of resources.

Features of Brand Management

 It is an art of creating and sustaining the brand.
 It includes developing a promise, making that promise and maintaining
it.
 It deals with determining the brand, positioning the brand and
developing the brand.
 It enhances the company image.
 It plays a vital role in capturing the customers mind with the brand
name.
 It creates a confidence in the current and prospective customers.
 It gives an image of an experienced, huge and reliable business.

47
What is branding?

The branding is defined as” the process of creating a relationship or a

connection between a company’s product and emotional perception of the customer
for the purpose of generation segregation among competition and building loyalty
among customers”.

Benefits of Branding

 Customer recognition
 Competitive edge in the market
 Easy introduction of new project
 Customer loyalty and shared values
 Enhanced credibility and ease of purchase.

Merits of Branding

 It helps in identification of the product.

 It identifies the seller.
 Differentiation of product from its competitors.
 It represents personality.It helps customers identify products, tells
buyer something about the quality.

Concepts of Branding Management:

 Brand building:

Brand Building is generating awareness, establishing and promoting company

using strategies and tactics. In other words brand building is enhancing brand
equity using advertising campaigns and promotional strategies. Branding is a
crucial aspect of company because it is the visual voice of the company. Goal of
brand building is creating a unique image of the company. Brand Building
comprises of creating value to consumers that how consumers feel, think and
know about your brand.

48
 Brand awareness:

It is the probability that consumers are familiar about the life and availability of
the product. It is the degree to which consumer precisely associate the brand with
the specific product. It is measured as ratio of niche market that has former
knowledge of brand. Brand awareness is improved to the extent to which brand
names are selected that is simple and easy to pronounce or spell; known and
expressive; and unique as well as distinct. For instance- Coca Cola has come to be
known as Coke.

 Brand loyalty:

Brand loyalty is a scenario where the consumer fears purchasing and consuming
product from another brand which he does not trust. It is measured through
methods like word of mouth publicity, repetitive buying, price sensitivity,
commitment, brand trust, customer satisfaction, and etc. Brand loyalty is the
extent to which a consumer constantly buys the same brand as long as it is
available. They do not buy from other suppliers within the product category.
Brand loyalty exists when the consumer feels that the brand consists of right
product characteristics and quality at right price. Even if the other brands are
available at a cheaper price or superior quality, the brand loyal consumers will
stick to its brands. Brand loyal consumers are the foundation of an organization.

 Brand equity:

It is also called brand power in market place. It refers to the value of a brand.
Brand equity is based on the extent to which the brand has high brand loyalty,
name awareness, perceived quality and strong product associations. It is hence the
value added to the functional product or service by associating it with a brand
name.

49
 Customer satisfaction

Customer satisfaction is a term frequently used in marketing. It is a measure of how

products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as ”the number of customers, whose reported
experience with a firm, its products, or its services exceeds specified satisfaction
goals. It is an abstract concept and involves such factors as the quality of the service
provided, the atmosphere of the location where the product or service is purchased,
and the price of the product or service.

Customer satisfaction is essential for business success in today’s

marketplace. It is a part of customers experience that exposes a suppliers behavior on
customer expectations overall. It also depends on how efficiently it is managed and
how promptly services are provided. It is necessarily required for an organization to
interact and communicate with customers on a regular basis to increase customer
satisfaction.

50
Reasons why customer satisfaction is Important:

1) A Loyal customer is a treasure you should keep and hide from the world
According to White House Office of Consumer Affairs, on average, loyal customers
are worth up to 10 times as much as their first purchase. Some research says that it is
6-7 times more expensive to acquire a new customer than it is to keep a current one.
Not only it is more expensive but also much more difficult to keep existing and loyal

51
52
 CHAPTER-IV
FINDINGS, ANALYSIS &
INTERPRETATION

53
 DATA ANALYSIS AND INTERPRETATION

1. How do you evaluate Audi’s car overall quality?

Options No. of Responses Percentage

Very good 19 70.37%

Good 8 29.62%
Average 0 0%
Bad 0 0%
Total 27 100%

Series 1
20 70.37%

18
16
14
12
10
29.62% Series 1
8
6
4
2
0% 0%
0
very good good average bad

Analysis & Interpretation:

From the above table it is clear that 70.37% of the public expressed the very good
opinion, 29.62% of public expressed good opinion, Average opinion Expressed 0%
by the public, bad opinion expressed by 0% of public

54
 2. What element do you think is the most important when you are buying car?

Options No. of Responses Percentage

Brand 16 59.27%
Price 5 18.51%
Position of 2 7.40%
Distributers
Others 4 14.81%
Total 27 100%

Series 1
18
59.27%
16
14
12
10
8
Series 1
6 18.51%
14.81%
4
7.40%
2
0
brand price position of others
distributers

Analysis & Interpretation:

From the above table it is clear that 59.27% of public is influenced by the brand of the
car, and is most important element before buying car.

55
 3. To what extent is your possibility to buy Audi when you want to buy it?

Options No. of Responses Percentage

Definitely yes 15 55.55%
Yes 4 14.81%
May be 8 2.96%
No 0 0%
Total 27 100%

Series 1
16 55.55%

14

12

10
2.96%
8
Series 1
6
14.81%
4

2
0%
0
definitely yes yes may be no

Analysis & Interpretation:

From the above table there is no doubt that people (55.55%) would love to buy Audi
car if they are offered to buy, but it is strange that 2.96% are in dilemma on buying
Audi.

56
 4. What is the factors influence on your purchasing will if you are Audi’s
consumer?

Options No. of Responses Percentage

Well known Brand 9 33.33%

name
Luxurious 12 44.44%
High quality 6 22.22%
Others 0 0%
Total 27 100%

Series 1
14
44.44%
12

10 33.33%

8
22.22%
6 Series 1
0%
4

0
well known brand luxurious high quality others
name

Analysis & Interpretation:

From the above table it is clear that Audi is preferred for luxury and lavishness,
(44.44%) , people are also influenced by its brand name and high quality 33.33% and
22.22% respectively.

57
 5. What do you think the performance of Audi in its quality according to your
experience?

Options No. of Responses Percentage

Excellent 18 66.66%
Good 9 33.33%
Average 0 0%
Bad 0 0%
Total 27 100%

Series 1
20
66.66%
18
16
14
12
10 33.33%
Series 1
8
6
4
2
0% 0%
0
excellent good average bad

Analysis & Interpretation:

Well the drivers are fully satisfied with performance of Audi and have remarked its
performance with excellence 66.66%, and it is a slight disappointment from 33.33%
who have examined audi performance and remaerked as good.

58
 6. what do you think of the brand position of Audi auto?

Options No. of Responses Percentage

It is good 19 70.37%
The position is too high 8 29.62%
The position is too low 0 0%
- 0 0%
Total 27 100%

Series 1
20 70.37%
18
16
14
12
10 29.62% Series 1
8
6
4
2 0%
0
it is good the position is too high the position is too low

Analysis & Interpretation:

Well Audi auto has to work more hard in order to climb up the top position in the
competition of market (70.37% it is good) and raise its position from good to too
high.

59
 Do you feel satisfy with the price audi products?

Options No. of Responses Percentage

Satisfied 18 66.66%
The price is too low 1 3.70%
The price is too high 8 29.62%
- 0 0%
Total 27 100%

Series 1
20
66.66%
18
16
14
12
10
Series 1
8
6
29.62%
4
2 3.70%
0
satisfied the price is too low the price is too low

Analysis & Interpretation:

Majority is satisfied with the with the pricing of Audi products, well it is good for the
company that their customers are happy in paying audi.

60
 8. What do you think of the advertisement promotion and sales promotions of audi
auto?

Options No. of Responses Percentage

Excellent 14 51.85%
Good 11 40.70%
Average 2 7.40%
bad 0 0%
Total 27 100%

Series 1
16
51.85%
14

12 40.70%

10

8
Series 1
6

4
7.40%
2
0%
0
excellent good average bad

Analysis & Interpretation:

Audi has done a great job in its advertisement process by portraying a creative
advertisement reaching its roots globally. Excellent 51.85%

61
 9. How do you know about Audi auto?

Options No. of Responses Percentage

Official website of Audi 9 33.33%
Recommended by 7 25.92%
friends and family
Television 5 18.51%
Others 6 22.22%
Total 27 100%

Series 1
10
33.33%
9
8
25.92%
7
6
18.51%
5 22.22%
4 Series 1
3
2
1
0
official website of recommended by television others
audi family and friends

Analysis & Interpretation:

From the above table it is clear that people are aware of audi through the official
website 33.33%

62
 10. What do you think of the agency of audi according to your experience?

Options No. of Responses Percentage

Excellent 13 48.14%
Very Good 13 48.14%
Average 1 3.70%
bad 0 0%
Total 27 100%

Series 1
14 48.14% 48.14%

12

10

8
Series 1
6

2 3.70%
0%
0
excellent very good average bad

Analysis & Interpretation:

Well the agency audi has agood reputation in the market and people like it very much
(excellence 48.14%)

63
 CHAPTER-V
SUMMARY AND SUGGESTIONS

64
 Summary

This project report throws light on the reasons behind customer’s decision of
choosing Audi for the purchase of cars and various other accessories from audi show
room. audi is one of the emerging players in the world automobile industry and offers
a deep insight into the industry.

For completion of this report nearby AUDI showroom i.e, in Vishakhapatnam

for conducting survey and fulfillment of questionnaires. A sample size of 50 was
collected due to less of time. Among those who were interviewed consist of ,
professionals drivers and businessmen . The test drive in AUDI A3 was amazing and
comfortable, the acceleration was full of thrill and joy . Random stratified sampling
method was considered to be best situated to fulfill the project. A structured
questionnaire was constructed in order to measure the responses of respondents on
suitable scale so that they can be analyzed. Primary data collection was done through
questionnaires and interviews and secondary data collection through company
websites and various previous research reports.

Through survey effects of various factors like ambience of showroom, and

conveniences came in light and the reason of people choosing
Audi over another automobile outlets became clear. Respondents gave many
suggestions for Audi automobiles like they should have more staff especially during
sales, more sitting area, more variety, etc. Feeding the data for analyses give
interesting result which have been compelled and tabulated in this report.

65
 Suggestions

I. Email and SMS can be used as an effective channel of communicating the

offers to the customers.

II. Better offers are to be provided to loyal customers based on the frequency of
purchases

III. Proper communication is to be provided to the customers

IV. Test driving distance should be increased for a better experience

V. Special treatment should be given to the owners of the Audi cars

66
ANNEXURES

67
 ANNEXURES
1. How do you evaluate Audi’s car overall quality?
a) Very good
b) Good
c) Bad
d) Average

2. What element do you think is the most important when you are buying car?
a) Brand
b) Price
c) Save fuel
d) others

3. To what extent is your possibility to buy Audi when you want to buy it?
a) Definitely yes
b) Yes
c) May be
d) No

4. What are the factors influence on your purchasing will if you are Audi’s
consumer
a) Well known brand name
b) Luxurious
c) High quality
d) others

5. What do you think the performance of audi in its quality according to your
experience?
a) Excellent
b) Good
c) Average
d) Bad

6. what do you think of the brand position of audi auto?

a) It is good
b) The position is too high
c) The position is too low

7. Do you feel satisfy with the price audi products?

a) Satisfied
b) The price is too low
c) The price is too high

68
8. What do you think of the advertisement promotion and sales promotions of
audi auto?
a) Excellent
b) Good
c) Average
d) Bad

9. How do you know about Audi auto?

a) Official website of audi
b) Recommended by friends and family
c) Television advertisement
d) Audi promotion materials

10. What do you think of the agency of audi according to your experience?
a) Excellent
b) Very good
c) Average
d) Bad

69
BIBLIOGRAPHY

70
Books:
1. Brand management, Author Dr. V. Vijaya Lakshmi,
P.Roja, kalyani publishers.

Journals:
1. Autocar Magazine
2. Car Drive Magazine

Website:
1. www.audi.com
2. www.carguru.com
3. www.autocar.com

71
72
73
74
75
76
77
78
79
80
81