Audi A1 Case

Topics: Audi, Renault, Fiat Pages: 7 (1687 words) Published: December 21, 2012
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
* 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
* In Germany, sales are relatively stable and even slightly in decline * Decrease in global sales in 2009

2.2. The Audi product range
* 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
* 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
* 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
* NCAP classes the A1 among the safest vehicles in its category * Distinction at the 2010 Golden steering wheel awards
* Good start in France: more than 10,000 vehicles sold between 9/2010 and 5/2011 Weakness:
* High price: price is the most important factor for the French consumers when purchasing a new car (cf 2011 IFOP survey) *

2. External analysis
3.4. The car market
* French consumers have a very positive opinion German cars: In second place behind French cars * German cars are considered to be: the most robust (60%); the most sporty (48%); and the most luxurious (61%) Threat:

* Global economic crisis effecting the car sector households’ budgets are limited * Decline in sales on the French market: 2.252.736 registrations, -2.2% in 2010 * Removal of the scrapping premium market back down to 2mil registrations * One in two French people buys a French car

* Increasing offers of transportation and emergence of new mobility services appearance of substitution products * Increasing awareness of the environmental dimension
* Changes in consumer behaviour, in particular among young people: 2/3 want hybrid and electric cars

3.5. The city premium car segment
* A segment currently experiencing strong growth, particularly in France * This trend was confirmed in the first half of 2011
* Competitive market: Direct competition (MINI, Citroen, DS3m Alfa Romeo Mito); broader competition (downward movers, upward movers, broader segment, alternative segment) * Increasing number of competing new models: the couple or roadster version of the MINI for example * Certain brands are already well-established: the MINI by BMW, around for about ten years now * Arrival of a French brand: Citroen with the DS3 has quickly taken the lead Summary

Audi is completing its range of premium vehicles with the launch of the new A1 model. Audi’s good financila performance and brand...
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