Audi A1 Case
AUDI A1 CASE I. Introduction * The german car manufacturer Audi is launching the new Audi A1 model. This small city car completes the range of vehicles marketed by the company. * Although the brand has many strengths, premium city cars represent a new segment for it, in which the competition is already well-established. II. Analysis 1. Internal analysis 2.1. The Audi brand
Strengths:
* Part of the Volkswagen group: leading Europea car market * In 2010: 1.09 mil vehicles sold, +5% compared to 2009 * 2010 sales: 35.44 bil Euros, +18.8% compared to 2009 * 2010 net profit: 2.63 bil Euro, +95.2% compared to 2009 * Excellent brand image * Success on international markets: 79% of sales * High level of investment in R&D: Audi e-tron * Good penetration of the French car market: 6th largest market for the brand * 52,520 vehicles sold in 2010, +9.4% compared to 2009 * Leader in the premium segment * Audi is the French consumer’s favourite car brand
Weakness:
* In Germany, sales are relatively stable and even slightly in decline * Decrease in global sales in 2009
2.2. The Audi product range
Strength:
* Abroad range of vehicles, from the A1 model to the A8 model: now complete with the Audi A1, which enables it to appeal to several customer segment * A wide choice of models woth limited CO2 emissions * E-tron, electric cars
Weakness:
* High prices: from 16.400 Euros to overs 200,000 Euros * Mitigated success of the Audi A2: model considered too expensive and inconsistent with the brand’s style
2.3. The Audi A1 model
Strength:
* It is “a real Audi”: benefits from the Audi brand image * Sober, polished design * Attention to quality and detail * Multimedia and ergonomics inspired by the new Audi A8 * Several different engines and levels of features * Options to personalise the vehicle * Incentive to trade in used vehicle *
Strengths:
* Part of the Volkswagen group: leading Europea car market * In 2010: 1.09 mil vehicles sold, +5% compared to 2009 * 2010 sales: 35.44 bil Euros, +18.8% compared to 2009 * 2010 net profit: 2.63 bil Euro, +95.2% compared to 2009 * Excellent brand image * Success on international markets: 79% of sales * High level of investment in R&D: Audi e-tron * Good penetration of the French car market: 6th largest market for the brand * 52,520 vehicles sold in 2010, +9.4% compared to 2009 * Leader in the premium segment * Audi is the French consumer’s favourite car brand
Weakness:
* In Germany, sales are relatively stable and even slightly in decline * Decrease in global sales in 2009
2.2. The Audi product range
Strength:
* Abroad range of vehicles, from the A1 model to the A8 model: now complete with the Audi A1, which enables it to appeal to several customer segment * A wide choice of models woth limited CO2 emissions * E-tron, electric cars
Weakness:
* High prices: from 16.400 Euros to overs 200,000 Euros * Mitigated success of the Audi A2: model considered too expensive and inconsistent with the brand’s style
2.3. The Audi A1 model
Strength:
* It is “a real Audi”: benefits from the Audi brand image * Sober, polished design * Attention to quality and detail * Multimedia and ergonomics inspired by the new Audi A8 * Several different engines and levels of features * Options to personalise the vehicle * Incentive to trade in used vehicle *