Ch. 5 - Developing a Global Vision

Almost every country in the world has a group of people that are successful, and are know as the "upper class". Wherever there is an upper class, there is always a demand for high quality products and services. That's why Audi, much like other luxury car companies, can be found almost anywhere in the world. Having a wide range of cars, Audis appeal to many different types of people. For example, a large upper class family might want to buy the Audi Q7, a 7-seat luxury SUV that competes with the Mercedes M Class and the BMW X5. On the other hand, a successful single man or woman might want something a little more flashy, like the Audi R8 supercar or the TT Quattro. In smaller and less wealthy countries, Audi is making strides in money saving methods, like making lightweight cars that consume less gas. They also produces diesel engines for people who are more dependent on diesel than gas. Culturally, Audi doesn't have to make many changes. There aren't many things that a car can do to offend a certain culture or religion. The main cultural difference Audi has to work with the only really which side the steering wheel goes on, as the side on which on drives is different in many countries. In Europe, the European Union dictates how some things must work in the countries that are part of the union. There are restrictions on the amount of CO2 emissions a car can create, which is why Audi's smaller models (A1-A4) thrive in those countries, as they maintain their zippy, sporty feel while being environmentally conscious. 

In terms of how they distribute their products, Audi uses the idea of Contract Manufacturing. Audi constructs in 7 different countries, one of which is Germany, where they have 2 production plants. These are where the cars are put together, but Audi also has the separate components of the car being built all around the world, which would be a form of licensing. In terms of marketing in different countries, Audi has maintained the marketing campaign it has used in America and other European markets, as the confident and stylish air of their commercials goes hand in hand with their sleek design and aggressive power. 

Audi's "second home" according to them is, not surprisingly, China. In a country where finance and business are at the forefront, and people are making more and more money because of their economy, Audi has found a massive market in China. Some of it lends itself to Audi's design, and how it appeals to the modern business man: someone who wants luxury and style but is also conscious of practicality, environmental effects, and manageable prices. Audi has one of the most extensive range of models of any luxury car company, which allows them to be successful pretty much anywhere, as long as there are people who can afford them. 

Ch. 4: The Marketing Environment

The marketing environment for car companies is an extremely competitive one. Being that the people who can afford these kinds of cars (BMW, Mercedes, Lexus) are not a dime a dozen, car companies like Audi must find new, innovative ways to grab a customer's attention and draw him away from the competition. But first, they have to look at the kind of people they are trying to attract and what values those people possess and live their lives by. People who want an Audi want certain things: they want a car that shows their wealth, their style, their sensibility (both in their personal lives as well as professional), and above all, something that satisfies them. Now when Audi advertises, lets say in a TV commercial, they don't direct their ads towards only the upper middle class. Their commercials are more on the satirical, jokey side, so as to not alienate anyone and make them think, "Oh, I can't/shouldn't get an Audi, as they're made for people who look better than me, dress better than me, or make more money than me." For example, the ad they debuted at the Super Bowl had nothing to do with social status or where you are in life. They simply took a popular subject (vampires) and used that to advertise a new feature on their cars, the new extremely bright LED headlights. In doing so, they made people laugh, they got their point across, all without making it seem like a normal, run of the mill person couldn't buy their cars, but instead they created a welcoming, almost friendly atmosphere into which almost anyone could buy into (as long as you have the money when you get to the dealership).

Ch. 3 - Ethics & Social Responsibility

Like most car companies in the modern world, Audi has been confronted by a major issue in the automobile industry: how does one make a car that is both safe for the environment while still maintaining performance and style? This seems to the the main problem for car companies like Audi. One could say they could lower the price range of their cars so more people could buy them, therefore allowing everyone to enjoy the class and style of an Audi, but then the cars would just become like every other car, and would lose the value and prestige of its name. Therefore, the best way for a company like Audi to exhibit their understanding and value of "social responsibility" is to reduce their carbon footprint on the world. Audi even goes to the lengths of releasing what they call an "Environmental Report," which can be downloaded annually off of their website. In these reports, they state their main goals in relation to the environment and keeping it safe and healthy:

Principles

1. AUDI AG supplies high-quality cars that satisfy its customers’ requirements in terms of environmental friendliness, economy, safety, quality and comfort in equal measures.
   
2. Research and development are crucial elements in Audi’s environmental policy. AUDI AG develops ecologically efficient processes and concepts for its products and so increases its own international competitiveness.
   
3. It is the declared aim of AUDI AG to avoid detrimental influences on the environment in all its activities by looking ahead. Compliance with all environmental regulations is taken as a matter of course.
   
4. Environmental management at AUDI AG—together with supplier companies, service providers, trade partners and recycling companies—ensures that the environmental friendliness of the cars and the production sites are continuously being improved.
   
5. The Board of AUDI AG is responsible for compliance with the environmental policy and the functioning of the environ- mental management system. The environmental policy is reviewed regularly to ensure that it is suitable and functional; if necessary, it is updated.
   
6. Open and clear communication with customers, dealers and the public is taken as a matter of course by AUDI AG. Co-operation with the government and authorities is based on trust. It includes emergency precautions and maintenance at the individual production sites.
   
7. All employees at AUDI AG are informed, qualified and motivated on the subject of environmental protection in accordance with their individual function, so that their sense of responsibility for the environment is encouraged. They are obliged to follow these principles.
   
8. This environmental policy is binding for all sites within AUDI AG and is supplemented and/or made more specific by site-related main action fields. 

Audi seeks to meet these principles in many different ways, from making a steering system that creates less friction and energy output, which in turn reduces the amount of fuel used and fumes created. They also have begun to create aluminum frames that are lighter, which means less gas is needed to propel the car. They are also focusing heavily on the reduction of CO2 that is created by cars, as CO2 reduction has been at the forefront of the climate protection argument (global warming, etc). CO2 levels can be directly traced to fuel consumption and the resulting fumes that come out of the exhaust, therefore Audi's main goal is to reduce the amount their engines need to work in order to propel cars of such size and speed. They seek the harmony between aesthetics and environmental consciousness, a combination that could prove lethal in a market such as the one Audi is fighting to control. 

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Mission Statement

The mission statement “We delight customers worldwide” is at the very core of the Company’s drive to become the number one in the premium segment. This means in practice that the Audi brand offers its customers emotional, technologically advanced products that are particularly noted for their sophistication and reliability. The brand with the four rings furthermore intends to delight its customers with the best brand experience available – hard evidence of the Audi brand values “sophisticated,” “progressive” and “sporty” is provided at every point of contact with the customer.

A Brief History of Audi

Audi was started in November of 1899 by a man named August Horch, a German engineer and automobile enthusiast. The original name of the company was A. Horch & Cie, but after being ousted by the board, he made multiple attempts to start another car company, but was unable to open anything in his name because of copyright infringement (he couldn't use his name for his new companies because his original company was named after him). His son, however, found an interesting title for his new company. He suggested that the company be called "Audi": the latin word for "to listen", as "Horch" mean "hear" in German. This was a clever way for Horch to legally create a new company while still maintaining the integrity of his name and his business. Audi's main goal was to create sporty, aggressive cars but with a touch of artistry and style. Their slogan, "Vorsprung durch Technik", means "progression through technology", and this can clearly be seen throughout all of Audi's automobiles. They were the first car company to create a production car with left-handed drive, a huge innovation because it allowed the driver see oncoming traffic more clearly, and therefore made overtaking cars easier. Audi has always maintained a certain style of elegance and beauty while also making their cars extremely aggressive and sporty, as can be seen in their greatest achievement to date, the Audi R8.