Volkswagen of America

presented by: Kamran khan & Nikhil jain

German Ideas, American Power

This is the most transparent and competitive market in the world, bar none. That's what makes the opportunity of growth as great as it is. If you do the right things and have good products, word gets out in the marketplace.
-Johnathan Browning, CEO

I love the smell of gasoline. Gears turning, oil burning, stomach churning. Go fast or go home. Efficiency.
-Helga, Volkswagen

HISTORY
Volkswagen was founded in 1937.
VWS 1ST Car manufactured on 16th sept,1938.

ABOUT VOLKSWAGEN
Volkswagen is German based one of the world's largest automobile manufacturers.

Volkswagen means "people's car" in German.

it is pronounced like folks va:gen. Volkswagen group is represented by 9 brands Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen commercial vehicles and Volkswagen passenger cars.

 The Volkswagen Group is represented by three brands in India: Volkswagen, Audi and Skoda.

Completed 9 years , started with Skoda in 2001.

Volkswagen was launched in 2007.

GLOBAL RANKING
For a long time, Volkswagen has been Europe's largest
automobile manufacturer with a market share over 20 percent.

In worldwide, Volkswagen officially ranks as the 3rd largest manufacturer in 2009.

Volkswagen is aiming to become, sustainably, the world's

largest car maker by 2018.

Audi

Audi AG is a German manufacturer of automobiles in various body styles and price ranges that are marketed under the Audi brand.
HEADQUARTER- Ingolstadt,germany OWNED BY- Volkswagon AG(since 1964) The company name is based on the surname of the founder August Horch, meaning listen which, when translated into Latin, becomes Audi.

 The Audi emblem is 4 overlapping rings that represent the 4 marques of Auto Union. First ring - Audi Second ring DKW(Dampf-Kraft Wagen ) Third Horch And, fourth - Wanderer. Its similarity to the Olympic rings caused the International Olympic Committee to sue Audi in Rochester in 1995.As part of Audi's centennial celebration in 2009, the company updated the logo by altering the shading for the overlapping rings.

PUNCHLINE/SLOGAN

Audi's corporate tagline is Vorsprung durch Technik, meaning "Progress through Technology". This German-language tagline is used in many European countries, including UK, and in other markets, such as Latin America, and parts of Asia including Japan. A few years ago, the North American tagline was "Innovation through technology. More recently, however, Audi has updated the tagline to "Truth in Engineering" in the U.S.

TECHNOLOGY
Body shells Audi produces 100% galvanized cars to prevent corrosion, and was the first mass-market vehicle to do so. The body's resulting durability even surpassed Audi's own expectations, causing the manufacturer to extend its original 10-year warranty against corrosion perforation to currently 12 years. An all-aluminium car was first brought forward by Audi (in 1994 Audi A8) was launched, which introduced aluminium space frame technology (called Audi Space Frame).

Direct-Shift Gearbox- Electronically controlled dual clutch gearbox with semi or fully automatic control.

Fuel Stratified Injection- Increases the engine's power output while reducing fuel consumption.

LED-DRL

Beginning in 2006, Audi has implemented white LED (light emitting dicode) technology as daytime running lights in their products. The distinctive shape of the DRLs has become a trademark of sorts. It was first introduced on the Audi S6, and have since spread throughout the entire model range.

Multi Media Interface

Audi has recently started offering a computerized control system for its cars, called Multi Media Interface (MMI). It is essentially a rotating control knob and 'segment' buttons - designed to control all-in-car entertainment devices (radio, CD changer, iPod, TV tuner), satellite navigation, heating and ventilation, and other car controls with a screen.

Audi Quattro (19801991) Audi Front (19331938)

Audi Coup GT (19801987)

Audi 920 (19381940)

Audi100 (19681994) Audi 4000CS quattro (19841987)

Audi 50 (19741978)

Audi 80 (19661996)

CURRENT PRODUCTS OF AUDI

Audi A5

Audi A6 (Premium)

Audi A7 (Premium)

Audi TTS (Road star)

Audi R8- Spydar

The next phase of technology Audi is developing is the e-tron electric drive powertrain system. The original e-tron concept is called the Frankfurt showcar Audi e-tron displayed at the 2009 Frankfurt Auto Show It is the only concept of the three to have range extending capability. Power is sent to the road through the front wheels always using electric power.

CASE STUDY VOLKWAGEN OF AMERICA: AUDI 5000

1. Background VW acquisition of auto union (AUDI) The success of Volkswagen (VW) during the period 1969-1968 was due to its chairman Heinz Nordhoff who sought to develop a car with high technical efficiency at a low price (in his search yielded the beetle). VW bought Auto Union in 1965 with the intention of putting a manufacturing plant in Germany Beetles. The manager of new subsidiary continued to develop new lines based on the ideas and design of Auto Union. These new lines let to set a new Audi.

As of 1969 it was decided to import cars to the United States (U.S.) due to the acquisition of Porche allowed to establish a distribution network (VoA)

One of the first models to be marketed was the LS 100 was technically different VW cars with a higher price. The LS 100 offered several important features at a price less than $ 4000 allowing increase sales of 1700 units in 1970 to 31,000 in 1973.
Despite the sales success of 100 LS,it had many technical problems because the design was not prepared for Americans and allowing Audi get a bad reputation. During 1977 the market share of imported cars began to pick up arriving estimated to reach 18% of the total market. In this scenario Audi sold 265,000 units that year. That same year, new federal regulations impacting the automotive industry and that required a radical change in American cars.(CAF)

general Motors, like other car manufacturers Americans began to introduce a line of vehicles that allowed fuel to achieve significant yields and with a design similar to the Audi 100 LS.

These changes represent an opportunity for Audi and its direct competitors as American tastes would lean toward finding cars that have an attractive combination of luxury, efficiency and fuel savings.

The weakening of the dollar was established as one of the important factors that could offset the positive impact in demand.
Another negative factor for poor relationships were Audi-brand dealership that were caused by problems in the Audi 100 LS. Overall dealers felt abandoned with Audi because the brand itself gave more attention to VW because of the volume of business. Audi In that scenario was scheduled to market the Audi 5000 luxury sedan in 1977 with a base price of U.S. $ 8500 (price segment between U.S. $ 8500 and U.S. $ 10 000). This had been equipped with several technical innovations in terms of fuel efficiency and safety.

2. Commercial Dynamics For 1977 federal regulations forced manufacturers to develop and more efficient vehicles. Also customers began to look for these vehicles more efficient fuel due to rising gasoline prices. Another factor that also demand affection was the devaluation of the dollar, which raised the price of imported cars leaving in a less advantageous to Audi. Besides local manufacturers such as Ford and Chrysler introduced new models the same segment. However, the lack of experience in the segment gave Audi an advantage.At that stage it was decided to launch the Audi 5000.

QUESTIONS:
Q1. Does the strategic direction of the new campaign ( engineering and design superiority) make sense? Why? Why not? Q2. Which of the two alternative approaches (exhibit 7-8) to executing the engineering message strategy would you recommend?
1 of commercials follow the same line followed Audi commercials until 1977 but highlighting the new attributes. This alternative is to present the Audi 5000 mentioning its new features as part of the brand's offerings. * In general, one can define the alternative as an advertising quite functional as it focuses specifically on product presentation. * Despite that the text of Alternative 1 discusses the functionality and features of this new model reinforces the fact that all Audi models follow the same line of advanced engineering.

* Alternative 2 line changes as the story of Audi engineering reinforcing the brand first and then present the new product. The story presents the same engineers at Audi in colloquial language that makes the presentation easy to understand but credible.

* I think Audi should launch advertising based on Alternative 2 as it helps vindicate the brand and also presents the Audi 5000 as the latest technology. Also makes an interesting resource that can be grounds for a sequence of commercials for the following models that Audi intends to launch

THANK YOU