Brand Management

Brand Equity of Audi

Group 13
Name Roll No.

Muningnya Patel 2020PGP291

Rathwa Ishant Bharatkumar 2020PGP336

Parag Pise 2020PGP285

Deepika Meena 2020PGP129

Makarand Ingle 2020PGP170

Audi was founded on 16th July 1909 in Zwickau, Germany by August Horch. Currently
Audi has 13 production facilities in 10 countries and the company serves worldwide. The brand
is well known for Luxury vehicles.

Audi’s Vision
To play an instrumental role in shaping the transformation as we head into a new
age of mobility the Company is implementing its strategy step by step.

Audi’s Mission
Our success has been achieved through creativity, commitment and the ability to
generate enthusiasm. The wishes and emotions of our customers are the guiding principles
behind our every action.

Audi Core values

- Digitalization - Integrity
- Sustainability - Respect
- Urbanization - Co-operation

Audi’s Slogan
Audi's slogan is Vorsprung durch Technik, meaning "Being Ahead through
Technology".
Keller’s Brand Equity Model

Keller’s Brand Equity Model is also known as the Customer -Based Brand Equity (CBBE)
Model. The concept behind the Brand Equity Model is simple: in order to build a strong brand,
you must shape how customers think and feel about your product. You have the right type of
experiences around your brand, so that customers have specific, positive thoughts, feelings,
beliefs, opinions and perceptions about it.

Using Keller’s Brand Equity Model for Audi.

1. Brand Identity: It defines how much awareness the brand has. It should be able to
answer the question, Who are you? In other industries, mainstream competitors' brand
image and values aren't that different. Despite the fact that brands generally preach
identical themes and advertise similar benefits, some brands nonetheless have a
significantly larger market share than others. The fundamental explanation for this is
something called salience.
The term "brand salience" relates to how a consumer feels about a product or service.
These favourable sensations stem not only from competitive advantages or lower
pricing, but also from a psychological distinction. The stronger a person's good feelings
 toward a brand, the more important that brand is to that individual. Advertising, when
done right, can be truly memorable and keep a brand's name in the back of consumer's
minds for a very long time.
A perfect example of this was Audi's 2016 Superbowl commercial. The commercial is not
simply an Audi commercial, but also a tribute to David Bowie, the late singer and
songwriter who was a revered global icon. The video departs from Audi's usual
commercials, which emphasise the superior sport car attributes while maintaining the
comfort and image of a luxury vehicle. It inspires adventure, as evidenced from the
former space explorer feeling alive again when viewing the Audi (as "Starman" fittingly
plays in the background). The execution is dramatically brilliant, and the ad as a whole is
a moving one that inspires the freedom of adventure while honoring the celebrity who
embodied this quality more than any other. Judging from the millions of views and top
comments on Youtube, people absolutely loved it, with many going as far to say it gave
them the chills.
Therefore Audi’s salience can be jotted down as:
● High Brand recognition and Brand Recall (45% of Top Mind)
● High Depth and Breadth to range
● High Digital Recognition- 0.9 Million followers on Twitter and 3.5 million followers
on Facebook.
● Strong heritage (based on brand history), in both manufacture of vehicles and
winning in motorsport.

2. Brand Meaning: It states how meaningful the brand is. The brand should be able to
answer the question, What are you? Brand meaning can be categorized into two parts:
1- Performance & 2- Imagery.
i) Performance: Performance defines how well your product satisfies the needs of your
customers. Does the product do as you advertise? Does it live up to the hype and get
the job done?
It can be broken down into 5 specific key performance indicator
● Primary characteristics and features: Audi has 6 special features that are
Active Suspension, Ventilated Seats, 3- Zone Automatic Climate Control,
Dynamic Steering, Ambient Lighting & Semi- Autonomous Driving.
 ● Product reliability, Durability and Serviceability: Audi has a product
reliability rating of 3.0 out of 5.0, which ranks it 08th out of 32 for all car
brands. Leader in Sports Car Endurance Racing (Le Mans 24hr)
● Style and Design: Audi buyers cite the design as the most important
factor in their decision. As a result, it is crucial in the development of new
models. The company is dedicated to long-term and systematic design
development. This applies to all aspects of the vehicle, including the
inside and exterior, colours and materials, and lighting design.. The Audi
design language is progressive and highly emotional; it expresses the
technological competence and quality claim of the brand perfectly.
ii) Imagery: Imagery refers to your brand’s social currency. How does your brand appear
to customers/ potential customers and how will they talk about you? Audi has an imagery
as a modern product for modern customers. It is deliberately looking to be differentant. It
is a successful brand with a sporty appearance.

3. Brand Response: Brand response falls into two categories (i) judgements and (ii)
feelings of customers.
(i) Judgement: Customers judge the product or brand on its quality, credibility,
superiority and consideration.
● Audi has positioned itself as an alternative to luxury brands like Mercedes and
BMW.
● Audi’s car designs are considered stylish.
● Audi improves it quality by designing new cars and using quality materials
(ii) Feeling: After purchasing and experiencing the brand, customers get an idea how
they actually feel about the brands. Their feelings also show their emotions towards the
brands. Generally warmth, fun, excitement, security, social approval, and self-respect,
these are the six positive brand feelings.
● Audi’s cars give brand feelings like fun, excitement and self-respect in its
customers.
● The company assembled the car with advanced technology for it’s differentiator
factor which makes customers feel smarter about their choices.
● Their designs also make customers feel power, safety, speed and happiness for
the brand.
 4. Brand resonance: It is the most difficult level for a brand to reach. Brand resonance is
how a customer identifies themselves with the brand. This is the strong, long-term
relationship your company aspires to establish with each and every consumer it acquires
along the way. The notion is that your brand resonates so strongly with customers that
they not only return, but also become brand ambassadors.
Loyalty programmes, customer involvement via the internet and social media platforms,
and the creation of emotional ties are all fantastic ways to help develop resonance.

Audi has tried to maintain its brand resonance by approaching it in various ways:
● Active Engagement on Social Networks by promoting the teasers of new launch
car models along with unique ways of advertising.
● Engagement through placement in blockbuster movies such as iRobot, Iron Man.
● Active within highly visible motorsports- Rally, Autocross, Endurance
● Audi has tried to manage its engagement even in Halo products such as Hybrid,
Electric and Supercar.
● Audi is ranked 5th in brand loyalty segment (43.4% in 2020) and even strongly
improving in the upcoming years.

Merits and Demerits of Brand Equity

The intangible worth contributed to a product by effective advertising and other marketing tactics
is known as brand equity. It can provide considerable competitive advantages in product areas
where most alternatives provide the same benefits on dimensions like image, distribution, and
physical design. The only serious disadvantage of building brand equity is its cost, as building
up a brand's reputation generally doesn't come free.

● Brand Image
People identify a product's "personality" with its brand image. It increases brand equity
by forging an emotional bond between customers and the products they purchase.
People who can relate to a brand are more likely to stick with it over time. Even with
significant price reductions, competitors will find it difficult to overcome this edge. For
example, we often buy things just by looking at an image on a particular packet or any
celebrity related to the brand.
● Distribution Advantages
Another aspect of brand equity is the perceived value that customers place on the stores
where the product is sold. This gives a premium brand, which may be presented on its
own in specialist or luxury retail outlets, a considerable competitive edge. By making a
brand more accessible than alternatives, distribution can help to develop its equity.

● Physical Design
Often brand equity is expressed in a product's distinctive physical design, adding value
by being innovative, easier to use or more attractive than alternatives. For example,
e-reader brands compete by offering color screens in smaller and lighter devices.
Antiperspirant, soap and other functionally similar toiletries often try to set themselves
apart on the basis of unique packaging and/or dispensing mechanisms. Department
stores build brand equity in part by offering on-site services like valet parking or in-store
coffee shops.

● Investment Cost
The disadvantage of a company's dedication to brand equity is that it necessitates a
significant investment, especially in promotion. While marketers have a variety of
promotional techniques at their disposal, advertising is by far the most effective in
establishing a brand image. Effective advertising, on the other hand, usually
necessitates a sustained media presence and is more costly than alternatives such as
public relations and direct marketing. To cut costs, an increasing number of businesses
are experimenting with social media as a substitute for traditional mass media exposure.

References
● https://www.audi.com/en/company.html
● https://mission-statement.com/audi/
● https://medium.com/@keatonhawker/kellers-brand-equity-model-what-it-is-how-to-use-it
● https://pocketsense.com/advantages-disadvantages-building-brand-equity
● Keller, K. L., Parameswaran, M. G., & Jacob, I. (2011). Strategic brand
management: Building, measuring, and managing brand equity. Pearson
Education India.
# Chapter 8: Developing a Brand Equity Measurement and Management System.
# Chapter 9: Measuring Sources of Brand Equity: Capturing Customer Mind- Set.