Audi’s Performance in Chinese Market
Audi’s performance in Chinese market
Introduction
Audi is one of the world leading luxury vehicle brand that is own by Volkswagen group. It enjoys the same reputation as BMW and Mercedes-Benz in the international market. In China, it expands rapidly during the past two decades. Currently, in the segment of vehicle market for business and governmental use, Audi has achieved satisfactory performance (Hua, 2010). The aim of this essay is to study Audi’s marketing strategy in combination with marketing theories. Firstly, its marketing activity in China will be introduced. Secondly, relevant marketing theories that can be used to explain the activities will also be described. Thirdly, whether Audi’s marketing strategy has achieved expected effect and how it can be furthered improved will be discussed.
Detailed description of Audi’s marketing activity in China
In Europe, Audi recently focuses on the middle level of market. However, in China, it adapts a quite different strategy. It typically emphasizes governmental market, high-end market among businessmen and also pays attention to local production. As early as in 1988, Audi has established cooperation relationship and founded the first joint venture with the First Auto Works of China in 1991 (Audi AG, 2010). This 20 years’ experience of localization makes Audi well understands consumers’ preference in China. Since the First Auto Works was used to be an appointed manufacturer to provide cars for governmental use, the joint venture with this company offers Audi a unique advantage in entering the governmental market (Hua, 2010). Besides, Audi has also made great effort to make the design and pricing of its vehicles welcome among the target customers. In order to make localization radically, Audi firstly imported 4S (sale, spare part, service, and survey) concept to China and tries to make most (approximately 95%) of the car components manufactured locally in order to support the service in the 4S stores (Hua,
Introduction
Audi is one of the world leading luxury vehicle brand that is own by Volkswagen group. It enjoys the same reputation as BMW and Mercedes-Benz in the international market. In China, it expands rapidly during the past two decades. Currently, in the segment of vehicle market for business and governmental use, Audi has achieved satisfactory performance (Hua, 2010). The aim of this essay is to study Audi’s marketing strategy in combination with marketing theories. Firstly, its marketing activity in China will be introduced. Secondly, relevant marketing theories that can be used to explain the activities will also be described. Thirdly, whether Audi’s marketing strategy has achieved expected effect and how it can be furthered improved will be discussed.
Detailed description of Audi’s marketing activity in China
In Europe, Audi recently focuses on the middle level of market. However, in China, it adapts a quite different strategy. It typically emphasizes governmental market, high-end market among businessmen and also pays attention to local production. As early as in 1988, Audi has established cooperation relationship and founded the first joint venture with the First Auto Works of China in 1991 (Audi AG, 2010). This 20 years’ experience of localization makes Audi well understands consumers’ preference in China. Since the First Auto Works was used to be an appointed manufacturer to provide cars for governmental use, the joint venture with this company offers Audi a unique advantage in entering the governmental market (Hua, 2010). Besides, Audi has also made great effort to make the design and pricing of its vehicles welcome among the target customers. In order to make localization radically, Audi firstly imported 4S (sale, spare part, service, and survey) concept to China and tries to make most (approximately 95%) of the car components manufactured locally in order to support the service in the 4S stores (Hua,
References: Armstrong, G., Kotler, P. (2006) Marketing: An Introduction, 8th Ed., Pearson Australia Publishing Audi AG (2010) Audi in China, online, available from: http://audi.ogilvy.com.cn/en/about/history/audi_inchina/audi_inchina.html [Accessed 5 September 2011] BMW (2009) Annual report 2008, Available from: Hooley, G., Saunders, J., Piercy, N. (2004) Marketing Strategy and Competitive Positioning, 3rd ed. London: Prentice Hall. Hua, Q. (2010) Audi’s 20 years in China, Auto marketing, vol. 24, pp. 12-14 Xie, W