Marketing of Audi in India Harvard Case Solution & Analysis

Marketing of Audi in India Case Study Solution


Audi is one of the top most recognized automobile company in the world which provides luxury vehicles. The company was launched in the year 1899 which was found by August Horch. Horch decided to form his company when he left his previous company of automobile due to the differentiation between his management and supervisory board. His past experience in the automobile industry had helped Audi in gaining the experience for forming his own company which is known today as Audi.

The company had expanded by acquiring other small automobile industry as well as the merger in the year 1985 with Volkswagen. During the 1970s and 1980s, the company had become recognized in the market through its effective promotion strategy and slogan which is “progress through technology”. However, the customer in the United States who had purchased Audi car did not consider the image of Audi as a luxury and premium car manufacturer. This made the company to improve its production by only manufacturing luxury and premium car manufacturer.

Audi had launched a famous commercial in the year 1986 by marketing its Audi 100 Quattro, in which its vehicle was covered in snow with aski jump on which the advertisement won a Gold Lion (an award for advertisement). Audi is also focusing its production on the sports car in which most of the cars of Audi have won the world championship. Audi has been using various marketing strategies for creating awareness of its cars, such as it had awarded its car to one of the cricketers of India due to his best performance.

The company had been launching many new cars during the year 2015 and 2017 by the series of “Q” through bringing new innovations in its vehicle. The Q series is one of the highest selling product throughout the world. Its main competitorsare BMW and Mercedes-Benz in which the BMW is the leading market followed by Mercedes. Audi has been using technology for attracting more customers such as it had launched digital showroom bringing anew experience of 3D. Audi is known as the most innovative manufacturer of Car in Germany by launching luxury and premium vehicles.

Luxury Automobile market in India

The Automobile market has been increasing throughout the years in India due to the increase in population in the country. The economy of the country has been increasing and stable comparing from its previous years which has caused the employment level to increase and thus increasing the demand for purchasing luxury and premium cars. There are also other factors which haveincreased the demand for automobiles of cars such as the construction of roads, improvement in India infrastructure and improving living conditions.

However, a survey had been conducted in the year 2017 in the month of October in which it was found out that the sales of the automobile company are decreasing in India. The sales declined by 1.7% which includes all the vehicles such as Cars, SUVs, vans, motorcycles and others. During the month of April and October, the overall imports of the vehicles grew by 10.37% in India. The increase was of two and three vehicle automobile sectors. Although the overall decrease resulted due to the low imports of passenger and commercial vehicles (Online, 2017).

The taste and preferences of people of India throughout the years havebeen changing in which most of the people prefer to buy and use luxury and premium products. The reasons for the changes of lifestyle in India is due to the rise of personal income, adopting western culture and for feeling self-esteem. A study was conducted in India for estimating the total wealth to grow in five years in which currently the total wealth of people in the country was around 45 trillion and is expected to grow by 235 trillion. Most of the spending of Indians are spent on purchasing luxury vehicles of Honda, Toyota, BMW, Audi and Mercedes. However do not purchase the high luxury cars such as Ferrari and Lamborghini (Anand, 2011)

A survey had been conducted during the year 2017 for researching the overall sales of the luxury cars in India for the year 2016. Audi had held the second position in the luxury cars in the Indian market, however, sales had declined by 30% which caused the BMW to take the second position. Mercedes is the market leader in India in which it had sold the overall vehicles around 13,000 whereas both Audi and BMW sold around 7,000 (Doval, 2017).

Marketing of Audi in India Harvard Case Solution & Analysis



Audi in India

Audi was introduced in India in the year 2007 by introducing many of its products and luxury vehicles. It had established its headquarters in Mumbai for providing customer support service and also for selling its vehicles in the Indian Market. Audi’s strategy for setting up the headquarters in India was to improve its marketing in India and as well as cutting the costs of manufacturing the cars rather than producing and importing from Germany. Audi’s goal and objective in India is to become the leading luxury brand in the market by introducing more attractive vehicles than its competitors.

The market share of Audi in the Indian Automobile market is around 34% and is considered the highest for the Audi globally. This has caused the company in creating a long-term relationship and position in India(RAMAKRISHNAN, 2015). The current vehicles which are being produced in India are the A3, A4, A6, Q3 and Q5 on its headquarters in Mumbai.

For capturing the marketing share and to become the leading luxury brand in India, Audi has decided to introduce hybrid cars. Audi has been working on bringing hybrid power cars while concerning the environment which would not emission pollution. Audi has been currently working on three electric powered cars and plans to launch these cars in the year 2020. However, the company is waiting for the country to improve its infrastructure which would be required for the hybrid and electric powered vehicles to drive in the country............................

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