Audi

2022

Case
Case Study
Study
Case Study
 Marketing Excellence (Chapter 5)
Audi
MKT 201 (Section 01)
Marketing Management

Prepared For
Dr. Salma Akter
PhD (UK), MSc (UK), FHEA (UK), MBA (DU), BBA (DU)
Assistant Professor, Department of Business Administration
East west University

Prepared By
Name ID
Rabiya Islam Sunaiya 2021-1-10-167
Mehnaz Parveen 2020-1-10-126
Nasrin Akter 2021-1-10-168
Most. Hosneara Anonna 2020-1-10-034
Md. Hameemur Rahman HImon 2020-1-10-055
Tasnimul Hossain Safin 2020-3-10-066

East West University

31st of March 2022
Executive Summary: The four-ring emblem was created in 1932 when Audi
merged with three other car companies to form Auto Union. The company was
renamed Audi in 1985 by Volkswagen, the holding company of Audi since the
mid-1960s. A new advertising slogan was created for the company in 1971 and has
been used as the mission statement ever since.

Case Questions:

1. In your opinion, how important is it to invest in customer loyalty for cars,

a product most people buy only every couple of years?

Ans. Customer loyalty is the most important aspect in achieving growth and
profitability. Customers that are loyal visit twice as often, spend four times as
much, and are the finest brand ambassadors for a business. In the long run, a good
loyalty program will help him keep these consumers and the money he makes from
them. A customer who purchases a brand and is satisfied with it is likely to
purchase it again. He can act as a brand champion, encouraging others to buy this
brand as well. In addition, many dealers provide other services such as
maintenance and repair. As a result, purchasing a vehicle is only the beginning of a
long-term client relationship. In other words, the customer expects to receive the
best products or services. It also implies that the buyer will not seek out
alternatives or respond to others who approach them. Customer loyalty is the most
crucial thing to invest in in any form of business. Customer happiness is crucial
when it comes to gaining loyal customers. As a result of comparing the apparent
performance of a good or service to expectations, a sense of contentment is known
as satisfaction. The consumer may be disappointed if the quality of the product or
the experience does not meet expectations. However, the client is delighted with
his performance. If it meets or exceeds the customer's expectations, they will be
quite pleased. Giving customers more than they expected can be valuable.

. We gain the following benefits as a result of customer loyalty:

 Repeated Business
 Increased Volume
  Cross-Selling Opportunities
 Advantages from Competition’s
 Word of mouth marketing
 Benefit of doubt

2. Try to estimate the lifetime value of an Audi customer.

Ans. The NPV method of the flow of future earnings predicted over the customer's
lifetime purchase is referred to as customer life time value. The projected cost of
selling and servicing that customer's account must be deducted from the company's
expected revenue. As a result, we can apply a discount rate and determine the
lifetime worth of our consumers. Let's assume the profit per vehicle for Audi is
$10000. A customer buys a car every 5 years on average, and 10 cars in their
lifetime. As a result, that customer's profit will be $100,000. So, at a certain
discount rate, the NPV will reflect the lifetime value of an Audi client.

3. What measures should Audi take to build long-term loyalty relationships?

Ans. It is generally accepted that keeping or sustaining a customer is much less

expensive than gaining a new one. To this aim, one of the most effective marketing
techniques for small businesses is to promote and ensure long-term consumer
loyalty. Maintaining customer loyalty may appear to be an easy strategy to
implement – simply treat your customers well and provide them with what they
want – but there are many layers and intricacies that go into ensuring that your
consumers stay with your company for a long time. Here are some suggestions for
establishing long-term consumer loyalty. Audi should take these steps to build long
term loyalty relationships.

 Create the most effective consumer communication channels.

 Try to fulfill each & every customer’s requirement and expectation, and
make appropriate promotions and communications with them.
 Create a detailed, point-by-point marketing and communication strategy for
each of Audi's consumer profiles.
 By establishing a communication and marketing strategy that will attract
them to come over and over again.
References:

The future of automotive loyalty BEEHIVE A Beehive Research White

Paper. (n.d.). [online] Available at:
https://beehiveresearch.co.uk/automotive-the-future-of-automotive-loyalty-
2016/.

StuDocu. (n.d.). Marketing-case - Case study - NAME: Md. Ritul Raiyan

Khan ID: 2022151051 In your opinion, how. [online] Available at:
https://www.studocu.com/en-gb/document/bpp-university/management-
accounting/marketing-case-case-study/20094435 [Accessed 2 Apr. 2022].