Advance Marketing FINAL Revision

With the current high competition being witnessed in all industries, companies are increasingly being faced with new challenges to come up with new marketing strategies that can ensure that they retain or even increase their market share.

To achieve this, companies can undertake market research which is a process that involves gathering of information, recording and analysing the data. This process involves gathering information concerning competitors and customers that exist in the market.

Market research is very fundamental in monitoring the companies’ sales and product performance. It also helps organisations get vital information that helps in expansion to new markets. This helps in determining or forecasting the customers that will purchase the product. This includes the customer’s income levels, their location and age among others

Industry overview /Company

This paper will examine the Audi Auto Company in UK; Audi Auto Company is an old auto company established way back in 1932, in Germany. The company has an emblem with four rings which is a symbol of amalgamation of four past independent auto companies that amalgamated in1932 to give way to Audi.

These companies were, Audi, Horch, DKW and Wanderer. Today Audi Auto Company is a manufacturer of lovely cars which are sophisticated, beatifically machines that exemplify technological perfection. There are plenty of Audi car models some includes, 265PSS3 Quattro, the TT Coupe 2.0 TFSI S Tronic, the A4 2.0 TDI S saloon and many other models which are available on the market. (Audi Auto Company, 2007)

Today, Audi Auto Company is an international motor company which its presence in several countries all over the world. It has established branches in many countries including the UK. The company’s UK headquarters is in Yeomans drive, Blake lands, the company is a division of Volkswagen Group United Kingdom limited.

Audi motto is “Vorsprung durch Technik” which means technology progress. The company success in the auto industry has been based on the company core values of creativeness, enthusiasm and commitment towards its goals.

The company also is customer oriented and it strives to incorporate the desires of its customers in everything it does.  Audi Auto Company endeavours to lead the way through continuous innovation and setting new standards that define auto industry technology. (Audi Auto Company, 2007)

Project statement

This research report critically examines and analysis marketing and its influences in contemporary business and with particular regard to Audi Auto Company based in the United Kingdom.

This will entail thorough analysis of the marketing policies and strategies that have been adopted by the company, analyses the strengths, weaknesses, opportunities, and threats that Audi Auto Company undergoes in line with the ever increasing ambiguity and uncertainty that may come up due to effects of globalization and ever changing business environment.

This study will also critically evaluate the effectiveness of this organisation response to competition and the gaps that exist in the marketing strategies of the company. This management report will further outline recommendations for new entrant in to the industry and what he should undertake in order to succeed in this ever very competitive industry.

Pricing matrix;

Pricing of a product is one of the marketing mix aspects and it is very important as it defines the worth of a product. Audi Auto Company has adopted various pricing matrix to achieve its objective of improving the company sales.

Methods of pricing

Premium pricing

Premium pricing is the use of a high price which indicates uniqueness of the car manufactured and its magnificence.  This approach is applied when marketing luxurious cars from the company. (Cinchona, 2005)

Penetration pricing

The company takes up penetrating pricing when introducing it cars to new markets or countries. In this pricing strategy, the price for the cars can be set to be lower than what it is in other countries so as to gain a market share.

It includes a  low price strategy enables a penetration price which is necessary to allow more cars to sell at first but when it catches up, other pricing strategies are adopted. (Cinchona, 2005)

Economy pricing

The company also offers it cars on economy pricing. In this case, the cost of marketing and manufacturing are kept at a minimum hence becomes a no frills low price for a product such as the cars from this company. (Cinchona, 2005)

Other pricing methods are; price skimming, psychological pricing, product line pricing, optional product price, captive product pricing etc.

The terms of access of Audi auto company products in the UK market pricing depends on factors such as the current tax rates in UK and the overall demand rate. (Cinchona, 2005)

Distribution channel network;

Distribution means a network for reaching out to company’s customers. It is important for any company to create well distribution channels that will ensure that the customers are able to get the final product without a lot of hustle.  Audi Auto Company has an elaborate distribution channel of it vehicles that it manufactures in the UK.

The company has dealership with various companies and dealers who market its products. The products are market all over the world; the company also have several manufacturing plants in other countries which manufacturers and markets the Audi cars in those countries. Audi Company also has Audi centres, authorized dealers and other group companies which are used as distribution channels. (Audi Auto Company, 2007)

Sales network

For any company to succeed in its marketing it must have a strong sales network which will ensure that the company’s products reach the targeted market. A good sales network allows the company to be more effective and reach it customers with easy and on time.

It also allows the company to respond to its customers’ demands and need more effectively as Dr Martin Wintrkorn chairman of the Board of the management of Audi AG underlines in his speech in the 2004. The company has a strong sales network in Britain that which has ensured the company’s sales remains at the top.

He further notes that due to this strong sales network, the company has managed to steady growth rate over 7% in UK. The sales network of the company includes company auto shop that are located in major town and places in the country, and mobile units that serve to deliver cars directly to the customer.

Cycle life

The company takes almost six months to be able to produce a new model on the market, the design department and the engineering departments are involved in creating new models. A new model is normal based on technology improvement in terms of safety, fuel efficiency.

For example, in 1980 Audi manufactured a four wheel car named “Quattro” which was turbocharged coupe. It took them six months to advance it from the first generation of S4 to the new generation of S6. General this period mat also vary according to the technological improvement that the company will undertake.

Advertising practices

Advertising is an important marketing tool which is commonly used to market new and existing products. Advertisement process requires huge investments. There are various forms of advertisements; media such as television, radio and newspapers, posters and road shows. The company utilizes all the forms mentions above, to improve its sales.

Advertisement is important as it creates awareness of the company’s products and well as keeping the customers informed. Advertisement is on form of market promotion that the company undertakes to promote its new model on the market. Promotion of new models can be carried out in different forms and the most common one is through product life cycle. (Michael, 1985)

Audi has undertaken different promotional activities to ensure that its products are marketed to wide areas. The company has a sponsorship deal with Manchester United a foot club in UK as part of its promotion activities. Audi Company also is the official car dealer of the club, and some players like Wayne Rooney, Rio Ferninard and many more drive around in Audi cars.

This highly markets the company’s cars. Apart from football the company also is involved in various other sports, giving its support to motor sports and polo game.

The company has continued to concentrate on the markets in the UK, as the chairman of Audi Auto Company in UK, Dr. Martin Winterkon pointed out UK market is the biggest for Audi outside Germany and Audi will continue to strive to improve its sales as shown in the last six years. (Audi Auto Company, 2007)

The diagram below explains the cycle which products can behave in the global market when it is introduced to the market. It starts from the introduction, growth, maturity and finally the decline when the consumers are fully aware of the products and services and there is no need for further promotions.