Audi Case Study

WHERE DO WE WANT TO BE?

In order to be successful, a company such as Audi needs to effectively identify the parts of the market that it can best serve in order to gain the greatest profit. With our eyes firmly focussed on upgrading our smaller vehicle product line while broadening its customer base, there is a need for the creation of customer driven marketing strategies that aim to build strong relationships with the right customers. This is achieved through identifying segments within the market, choosing one or more of them, then developing tailor-made products and marketing programmes for them.

SEGMENTATION

Market segmentation hopes to answer the question of which customers we as Audi will serve by dividing and analysing large heterogeneous markets into smaller segments that each have distinct needs, characteristics or behaviours which can be reached more efficiently with products and services that match those unique needs. We will take a look at the major geographic, demographic, psychographic and behavioural variables to help answer this question.

As country with widely varying terrestrial characteristics, Audi’s potential market share within South Africa can be geographically segmented by population density into rural, suburban, exurban and urban.

Along with our identified white male base market, there is space for customers of all racial, religious, occupational and cultural backgrounds in terms of market segmentation. Demographically, the market for vehicles will face natural restrictions due to there being a legal requirement for an individual to be in possession of a driver’s license. This is a document that places limitations on the people who can drive (as well as what it is that they can drive) that are specific to ...

... middle of paper ...

... to deliver the best possible product to consumers. The positioning maps shown below are an indication of where we see the 2015 Audi A1 fitting in with the given concerns of both our current and potential customers.

We aim to improve Audi firmly placed high in the upper right quadrant of both of our positioning maps for safety versus price, as well environmental impact versus vehicle performance. We have found this quadrant to be favourable over the alternatives in both maps as they are favourable combinations that fulfil the wants of our client base and are attributes that we feel the 20125 Audi A1 can feasibly achieve. This positioning will result in Audi outdoing its competitors within the luxury vehicle market in terms being seen by customers as a brand that is able to find a balance between safety, performance, environmental friendliness and price point.