Innovation
Text z Príbehu
- Audi is one of the world’s leading premium brands for high-quality and technologically progressive cars. It is part of the Volkswagen Group, along with Bentley, Lamborghini, SEAT and others.
- It is from the VW Group that Audi gets its biggest competitive advantage, its partnership with the other members. This allows Audi to save on costs that are spread out over the group, such as distribution, maintenance and financing. As well as saving on costs, Audi benefits from shared technology, such as engine design and other performance specific technology.
- Audi's overriding strategic goal is to become the world's leading brand in the premium automobile segment. This luxury segment is also filled with competitors such as Mercedes-Benz and BMW, who have built exclusive brands through years of effective marketing.
- Unfortunately for Audi, their greatest strength and asset is also the biggest reason for not achieving their strategic goal (disregarding the emissions scandal). Luxury customers find it difficult to separate the Audi brand from the low end alternatives also offered under the VW group, due to emphasis put on technology sharing. This impacts the exclusiveness of the brand and as such affects luxury car sales.
- Rather than attempt to force Audi cars into a market segment that it does not quite fit, which will impact the sales potential due to similarly priced and better marketed alternatives such as Mercedes-Benz and BMW, Audi should attempt some brand innovation.
- By reinventing and building the brand based on the qualities customers associate it with, rather than how it would ideally like to be viewed, and by tweaking the target customer segment, Audi will be able to establish itself as a segment leader. The two main qualities associated with Audi are Quality and Reliability.
- Quality and Reliability
- By targeting the Saloon/ Sedan market, Audi could establish itself as the premium brand within the segment. With the saloon customer segment putting emphasis on both quality and reliability, the current Audi brand meets their demands and as such should cause a rise in sales, provided that the product can be priced properly.
- Quality and Reliability
- Audi Quality and Reliability
- By realigning the strategy with the brand, Audi should be able to position itself as a leader rather than a follower as it is now. In order for this strategy to be accomplished Audi must leverage its greatest asset to ensure costs of production are minimised, the partnership with the entire VW Group.
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