History and Marketing Strategies of Audi

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Company Name: Audi
Founder- August Horch

Audi is a part of the Volkswagen Group and one of the top brands in the automobile industry due to its particular design and unique style. Audi is a German based automobile manufacturer and the company plans, engineers, builds, creates and markets luxury vehicles. The professional engineer of the company produces worldwide designed vehicles. Audi is rooted in Ingolstadt, Bavaria in Germany. The company was founded by the great engineer August Horch. The name Audi comes from the name of the founder of the company

How It All Started

The automobile company Wanderer was established in 1885 and later the company came to be known as Audi AG. NSU which was another automobile company was later merged with Audi.

August Horch established his automobile company A. Horch & Cie. in Ehrenfeld on 14th November, 1899.  Then August Horch sifted his company to Reichenbach in Vogtland. After some trouble with his financial chief officer, August Horch left the company, and established a second automobile company August Horch Automobilwerke gmbH on 16th July 1909, at Zwickau.

Due to the order of the German Supreme Court August Horch was banned to use “Horch” as the company name. In Latin the words Horch means “audi” and it means “listen” in German, and as August Horch was forbidden to use “Horch” as a brand name for his new car business, the company was called Audi. On 25th April 1910, the company registered as Audi Automobilwerke GmbH Zwickau.

The four rings that symbolize the logo for Audi comes after the company merged four car companies together. It marks the essence of auto union and unification of Audi with Horch, DKW and Wanderer.

In the same year Audi launched its first product the Audi Type A 10/22, which is the oldest car under the name of Audi. Post World War II, the company went through various reforms and in 1964, Volkswagen acquired 50% shares and holding in the company. After various restructurings along with Volkswagen and mergers, on 1st January 1969, Audi NSU Auto Union AG was introduced which was a new merged company. Then over the years, the process of transformation and upgradation started. The image and mechanism of the car changed every year with superior interior features along with modern and dynamic exteriors.

Audi’s Marketing Strategy and the Reasons behind Its Grand Success

Audi is a supercar and a part of the premium segment of the successful car makers. The sale of Audi strongly increased in 2000 with an increase from 653,000 in 2000 to 1,003,000 in 2008. The largest markets for Audi are Europe, Middle east, Africa and parts of the South east Asia. A remarkable increase in the sale was observed in China too. In the year 2012, Audi registered an increase in sale by 10%. Audi has seven manufacturing plants across the globe. It is owned by Volkswagen, for over 45 years now and in 2014 Audi produced 1.8 million cars. The most popular car by Audi is the A6 Sedan and Q5. In 2017 the company sold 1.9 million cars with A3 and A4 as the brand new model of the company. Audi also launched its brand new first fully electric SUV Audi e-tron in 2019. Audi has been working with the Japanese company Sanyo to develop the electric versions and also have plans to invest in self-driven cars. That is a revolution in itself!

The various technology used by Audi are Audi AI, space frame, drive trains (engines), LED lights and media interface along with body shells respectively. The company’s target audience has always been the socially upper-class and elite customers. Audi produced cozy and luxury car for its customers who appreciate the innovative design and the advanced technology of the product. The company produces its product by high-caliber material and every vehicle has an attractive design. Audi is a big favourite amongst racers too. With their motor racing specific cars, Audi came up with their prototype in 1999 and since then there has been no looking back.

Positive image and strong brand strategy is the key to its success. The company has a group of a professional engineer who designed the vehicles because the company thinks that design is the most important part of a vehicle as the design and features can help the consumer differentiate a car. The company also targets young buyers who love fast machines and driving. The vehicle emphasizes style and design rather than speed.

A1, A5, TT, and Q5 are the Star series of the company. These cars face a tough competition in the market and also have a huge demand and fan following. The company follows a very systematic distribution strategy. The stores in various locations display various kinds of cars, and the company provides huge profit margins to its dealer.

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Loyalty is the key to its success. One major factor of Audi is its investment and focus on the perceived quality. Audi plays aggressively to make more shares in the market and the luxury segment of Audi is developing in India. The mission of the company is to delight its consumer and the vision of the company is to be the best vehicle company. “Vorsprung Durch Technik” is the tagline of the company.

In India, Audi was introduced in 2007 and it has a growth rate of 41% which is remarkable. It has been the top and primary automobile luxury brand in the Indian markets since 2015.


The campaigns by Audi are very innovative and provoke its loyal customers to get hold of it. In 2018 the Audi launched a billboard campaign in Berlin, before the launching of its electric SUV.

The company also shows its concern about gender equality. In 2017, Audi launched an ad campaign called ‘Daughter’. The campaign ends with the message that “Audi of America is committed to equal pay for equal work. Progress is for everyone”.

Audi is a strong sponsor for various sport activities like football, hockey, soccer, polo and also sponsors international clubs. It also promotes golf and sailing. The company also initiated the Audi Mileage Marathon which is a driving tour from New York to Los Angeles. It shows how pioneering the company is. Audi also promotes and supports the Play station Home.

Audi has always been very active on all the social networking sites. The company has a large fan following across all platforms and is endorsed by none other than the Indian cricket star, Virat Kohli.

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With 41 dealerships across 11 states and 2 union territories of India, Audi is represented in 110 countries across the globe. The company believes in innovation and creative development. With every new product the company rises against its competitors and creates its own limit to go forward. Audi has becomes famous because of the exclusive and luxurious comfort and style which it offers to its consumers.

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