FAW-VW Audi A6 Marketing Strategy Study

The statistics data by Chinese Vehicle Market Information Union show that in 2006 Audi sales volume in China is 80800 units, year-on-year increase 39%, BMW sales volume is 36400 units, year-on-year increase 50%, Benz sales volume is 21000 units, year-on-year increase 32%, Lexus sales volume is 13000 units, year-on-year increase 160%, Volvo end sales volume is over 7000 units, year-on-year increase 50%. In 2006 total sales volumes of five luxury car brands are about 160000 units in China. Experts forecast that in next five years, luxury car will account for 10% share in the whole Chinese vehicle market. The common target of each brand in luxury car market is improving its own market share. With competition more furious, sales of FAW-VW Audi A6 has been under big pressure. It's quite important to adjust Audi A6 marketing strategy for FAW-VW long-term development in the new situation.ⅠAnalysis of Audi A6 Marketing StatusBecause FAW-VW introduces Audi A6 to Chinese market very early, in addition it has a good image as government car, from 1998 to 2006, its total sales volumes reach 400000 units. However with more furious competition and market increase slowing-down, marketing problems of Audi A6 become more and more obvious.As to product, golden engine models (1.8L~2.4L models are Audi A6 golden models, main contributions to A6 sales volume) are in shortage, which cannot be relieved until the end of 2007 and results in gliding market share. German Audi AG makes production design. The producer FAW-VW has no rights to adjust equipments according to market demand, which weakens product market competition power and market occupation rate.As to price, because comprehensive cost of Audi A6L (A6 upgraded model) increases a lot, localization rate doesn't reach common car rate and cost of localization spare parts is very high, etc. the price range from 346800 RMB to 873900 RMB of new Audi A6L is much higher than customer's expectation. The high price positioning affects A6L sales.As to promotion, depth and width of Audi A6 internet promotion are lag behind its competitors. The internet promotion forms are single and simple. There are many disadvantages during the course of practice of individual ordering promotion mode, so it's hard to deep develop it.As to place, there are not many market promotion events guided by dealers. Though the producer FAW-VW organizes events, their market effect hasn't been fully presented in dealership. Dealer's sales consultant flow is high and management level quality should be improved.ⅡAnalysis of Audi A6 Main CompetitorsIn view of car class, price and market sales share, Audi A6 core competitors are BMW 5 Series and Benz E-CLASS. From the analysis of customer's consumption directions and actual market sales situation, Crown and Lexus are in the same level with Audi A6L of A6 upgraded model at the aspects of class positioning, car dimensions, engines, exterior design, function, service, brand image, performance, price and ratio and they are Audi A6 potential competitors.On the basis of SWOT analysis, Audi A6 has strength in the time of entering Chinese market, brand public praise and effect, dealer numbers, awards and localization rate. Audi A6 is weak in luxury car brand acceptance, market response speed of product equipment renovation and models upgrade. The opportunities Audi A6 faces are that China can provide many excellent local talents, as luxury car Audi image wins support and love among the people, inactive factors of BMW and Benz create chances for Audi occupying market, sales volume of Japanese cars Crown and Lexus will decrease with tense Sino-Japanese political relations. The threats Audi A6 faces are that producer shifts competition pressure to dealers, Chinese marketing strategy of BMW and Benz become more matured and perfect, Benz has been on the Green Purchasing List issued by Chinese Finance Ministry and Environment Protection Administration, Crown shares the same brand notability with Audi, Lexus promotes brand value by improving service quality, more and more competitors enter luxury car market. Audi A6 competitors make A6 marketing encounter greater pressure than ever.ⅢAudi A6 Market Segment and Target Market SelectionCity wealth class such as white-color, young enterpriser and private owner are the main customers of luxury car market. Luxury car market consumption is in the transition period of value-guided times. The customers, who purchase localization car, most care for brand and product performance, price and ratio.In accordance with luxury car market consumption characteristics, FAW-VW upgrades Audi A6 to A6L and fine adjusts market segment and target market selection. Market segment level is one of signs for evaluating whether a car market is matured or not and is the fundamental condition for the car producer to make brand and model strategy. The market segment standards of Audi A6L concern on geography factor, population factor, psychological factor and behavior factor besides engine and price.Audi A6 customers prefer its modest brand image. Audi brand contents of passion and reason, non-exaggeration and non-luxury character are the reason for attracting target customers. Taking the opportunity of upgrading model and brand repositioning, Audi A6L adds active and passionate elements into its brand image, which makes Audi customer range enlarged. Target market focuses those customers who are very successful in career with high society status, wealth, confidence and creation, but very modest, progressive with high taste.ⅣAudi A6 Marketing StrategiesPerfect Audi A6 product strategy, restart old A6 production line, and supply A6 1.8T manual model with simple equipment to the market, which is a remedial and expediency measure for complementing scarce golden engine model of A6L. Produce A6L 2.0L~2.4L diesel model, on the one hand, that can complement scarce resource, on the other hand, that can attract customer to buy diesel model because diesel car saves petrol. FAW-VW proposes to establish Audi Technique Research Center, realize Audi A6 localization equipment alteration, meet local demands, promote market competitive power and quicken market response speed.Decrease Audi A6 price and promote localization rate for lowering the cost. As to already localization spare parts, FAW-VW should strengthen professional and scale development of the parts for decreasing the cost. Dealers offer preferential program for purchaser with Audi Finance Company, providing loan service with low interests rate (1.99% yearly interests rate). Audi 4S shop can organize a series of present-given events for purchaser and make customer benefit from the price.Strengthen internet promotion, set up Audi A6 internet car friends club/brand community, promote Audi A6 in auto blog website; optimize individual ordering, computer simulates to describe individually ordered car, make price maintenance measures, conduct organization reform and process recreation for resolving practice problems of individual ordering.Promote Audi dealer business operation capacity, establish dealer-guided market publicity mode, and give sales person material and non-material encouragement for decreasing personnel frequent flow. Monitor and control dealers to recruit and employ personnel, cancel current process of dealers employing personnel, Audi Dealer Development Department of Sales Division Audi Sales Division of FAW-VW will be responsible for employment and training of dealer's management level and other personnel, which can assure dealer team quality from the source.