Marketing Communications Campaign Plan for Audi A3 Sportback E-Tron - Case Study Example

Marketing Plan: Audi E-Tron

The organisational success is dependent on in-depth marketing and understanding of the potential consumer market. Through comprehension of the consumers, organisations managed to develop proper marketing or promotional initiatives in a profitable manner. As a formidable organisation in the automotive industry, Audi has been on the forward approach towards sustaining profitability and maintenance of plausible sales through its marketing initiatives (Baumgaertner, 2015). As such, the organisation has been depending on effective promotional techniques in a competitive environment to ensure sales of its different car brands. One of its latest cars has been the Audi A3 Sportback E-Tron has been a prestigious work of engineering with innovative technology especially in its fuel efficiency (Carley, Duncan, Esposito, Graham, Siddiki, & Zirogiannis, 2016). Therefore, to ensure plausible capture of the consumer market, Audi has had to invest in effective promotional techniques to ensure heightened sales of its E-Tron brand. Therefore, this paper will examine Audi coupled with its marketing initiatives of its new A3 Sportback E-Tron.

Description of the Organisation and Brand

In the automotive sector, Audi maintains a prestigious history. As one of the oldest German car manufacturers, the organisation has been successful through the implementation of innovative approaches in their operational mandate (Hedlund, Lundin, de Santiago, Abrahamsson, & Bernhoff, 2015). As such, the organisation operations are diverse and inclusive of development, production and sale of cars. As a subsidiary of Volkswagen, the company has been successful in its global operations with distinctive operations in over 50 countries globally (Blackwelder, Coleman, Colunga-Santoyo, Harrison, & Wozniak, 2016). Furthermore, the organisation has set up operations in the UK with approximately 5% of it is over 81,000 global employees working in England (Ohlander, Keskin, Stork & Radon 2015). Therefore, with the ever expanding global operations, the company has been grappling with different issues emerging in the consumer or operational environment. One of the most pertinent issues has been the prospect of fuel efficiency and green technology among cars. As such, due to the ever-growing emphasis on the negative implications of global warming coupled with the impact of cars through their carbon emissions, it has become imperative for companies such as Audi to implement green technology in their operational dynamics. Therefore, the Audi A3 Sportback e-Tron that was launched by Audi was mainly aimed towards sending a clear message on Audi's focus on sustainability and sensible operations in ensuring the reduction in carbon emissions (Barghi-Nia, & Sirois, 2015). From the evaluation of Fill & Turnbull (2016), the e-Tron is an innovative car brand that offers flexibility to its potential clients in choice. Admittedly, the potential clients have three options, combustion engine, electric drive or hybrid in driving their cars. As a plug-in car, e-Tron is efficient since it offers the potential clients an option to choose either the flexibility offered by the petrol engine in undertaking long drives. Furthermore, in the auto mode, the car can switch in an intelligent manner between the eclectic and petrol engine hence enabling the customer to choose either option that suits. Therefore, through the organisational focus on ensuring efficiency in the performance of its vehicles, the company has maintained a competitive environment in which the various rivals have had to implement equal initiatives in green technology (Ohlander, et al., 2015).

SWOT Analysis of Audi and its E-Tron Vehicle

SWOT analysis in reference to Holland (2016) is a viable approach for any organisation in comprehending its internal and external operations. Accordingly, through the evaluation of the organisational strengths, weaknesses, opportunities and threats, Audi can effectively develop the most proficient strategies to ensure performance success. Therefore, a SWOT analysis of Audi is as follows:

Strengths

Audi maintains a formidable brand name across the globe. With its already established brand name, the new car brand is bound to catapult further the organisational image. As one of the most evident strength of the car, the brand is the combination of petrol coupled with direct injection that has turbocharging (Birk 2015). The use of turbocharging forms a proper strength of the brand since the car offers similar performance as other Audi cars but with a minimal fuel use by approximately 10% less (Cox 2015). Additionally, as an equal strength of e-Tron, the vehicle has the S-Tronic gearbox that leads to a reduction of emissions hence catapulting Audi’s initiatives towards green sustainability.

Weaknesses

The operational mandate is expensive for Audi, especially in their research and development. From the evaluation of Hofmann (2015) the company had to invest in research and development to ensure the release of e-Tron. Additionally, from the analysis of e-Tron brand, the cost of maintenance and handling is extensive. The car’s hybrid engine calls for proper care by the owner to ensure that there is no interference with its complex electronic system. Pundits such as Fill & Turnbull (2016) emphasize that the hybrid's onboard computer is complex, and any interference can lead to implausible outcomes for the owner especially regarding cost implications.

Opportunities

Internationalization is an ongoing phenomenon in the automotive sector. Admittedly, different markets are opening up offering viable environments for Audi to make the market venture. Most importantly, the emerging markets such as Brazil, China, and India offer vast customers that Audi can target, therefore, increasing its profitability (Bhadauriya, & Gupta, 2015). Additionally, from the evaluation of e-Tron, the prospect of increasing green-conscious market offers a plausible opportunity for an increase in sales. As such, with information availability, global warming has become evident among the public. Therefore, the development of the e-Tron brand is a strategic approach by Audi towards capturing the customer segment.

Threats

The green initiatives by Audi have not gone un-noticed by organisations such as Mercedes, BMW, Toyota and even emerging companies such as Tesla. Therefore, as one of the evident threats, there has been an upsurge in competition. Competition, especially to large firms such as Toyota and Mercedes that enjoy economies of scale, has become a facet of concern. Furthermore, equal threats emanating from restrictive governments such as Russia that exude implausible policies for foreign businesses (Ohlander, et al., 2015). On the other hand, from the evaluation of e-Tron, there has been the evident increase in competition from other green-centric car models (De Groot, Nickerson, Korzilius, & Gerritsen, 2015). As such, the prospect of car brands from Volkswagen, Tesla and Mercedes have been posing a daunting environment for Audi.

Customer Analysis

Comprehension of the customers is imperative for proper product and service development to suit their tastes and preferences. As such, Lu & Dai (2015) emphasize that customer analysis is significant towards successful positioning of the organisations. Therefore, from the evaluation of Audi, there are three main customer segments that form the main target customers. The first customers that e-Tron is aimed at are the green conscious segment.as such, there has been the emergence of customers who are sensitive to the sustainability initiatives of an organisation. Therefore, from the analysis of the new car brand, capturing of the customers is bound to prevail. As the second target, Audi aims towards capturing the wealthy and middle-aged male segment. As a car that combines both speed and efficiency at a luxurious pricing, the company aims towards successfully capturing the given segment. Thirdly, the company aims towards capturing the business travelers. There is the evident emergence of business travelers such as sales people who travel long distances. Through focusing on the emerging sector, the company can capture and catapult the level of sales.

Direct Competitors and Promotional Activities

Competition is a fact of concern for any organisation. Therefore, the automotive sector is not left out in regards to the competitive rivalry. Consequently, among the direct competitors to Audi include Volkswagen’s Golf GTE, BMW’s 2-series Active Tourer PHEV, and Mercedes B-class Electric Drive ((Blackwelder, et al., 2016). The earlier mentioned car brands have been posting a daunting environment for Audi with the need for an innovative approach to operational dynamics evident. As the first direct competitor, GTE has been promoted through diverse Medias. The most evident have been Television advertising in which the different specifications of the car are advertised. Of utmost importance is the clear detailing of the vehicle as sporty, dynamic, and powerful through the combination of the GTI dynamics with the electric engine. Furthermore, the company implements innovation through its smartphone application that can be used by customers to charge their vehicle. Likewise, BMW has implemented a television approach to promoting its hybrid all-wheel drive vehicle. From the analysis of the organisation, there is the emphasis on the functionality of the vehicle in all terrains coupled with a performance like a normal car despite its hybrid features. Lastly, Mercedes’s B-class electric drive is distinct in technology as compared to its competitors. As such, the car is all electric and has been pegged by many as one of the most elegant compact electric vehicle globally (Hertrich, & Mayrhofer, 2015). Mercedes has been implementing television and social media advertising in their marketing campaign (Albulescu, Dascalu, & Niculescu, 2015).

Analysis of previous marketing communications activities

The previous marketing communication initiatives by Audi were mainly focused on capturing the male segment. From the analysis of their first video advert, it depicts a man driving the vehicle fast, braking and plugging the vehicle to depict both the sporty and efficiency of the vehicle. From an individual perspective, the advert was biased due to the focus on the male segment.

Marketing Communication Plan

Marketing communication is imperative for the successful operations of Audi. Admittedly, from the analysis of Audi, the implementation of marketing communication is critical towards enhancement of the overall marketing mix design. As such, marketing communication plan should be highly visible and persuasive in order to ensure economic and social success for the organization. First and foremost promotion denotes a fundamental element in the operations of an organization. Viewed as one of the most prominent and overall important performance mandate, a marketing communication plan generates holistic strategies for operations in a business. A business that implements a successful marketing communication plan manages to develop, implement and monitor distinctive tactics implemented towards successful outcomes. Therefore, from the analysis of Audi, it is evident that it requires a comprehensive marketing communication plan for successful performance and customer acquisition. To sustain customer acquisition, the marketing communication plan for the business should denote the following aspects:

Promotional Objectives and Positioning

First and foremost, promotional objectives range and are reliant on the operational, organisational mandate. Therefore, from the analysis of Mosca & Casalegno (2016), it is important that Audi views customer relationship management and acquisition as a plausible objective towards profitable outcomes. Therefore, the business’s promotional objectives should be customer retention and acquisition of a new segment. Through the focus on the earlier mentioned objectives, the organisation should position its car as affordable and high quality (Schoettle & Sivak 2015). Positioning itself as the high end is implausible considering competition from emerging companies such as Tesla whose model T is middle income priced.

Target Group and Rationale

The economic environment is fast switching to a middle and high-income sector. With the prospect of middle income forming the largest population, the most plausible tactic by Audi should entail a differentiated targeting approach (Berndt, Schellenberg, and Eckhoff & German 2015). As such, the company should ensure that the price points are strategic to meet both the high and middle-income population. The differentiated targeting approach should enable Audi to capture the large chunk of the prospective customers.

Marketing Communication Tools and Rationale

There are differed marketing communications that an organisation can implement. As such, from the evaluation of Audi, it should implement both sales promotion and advertising. Sales promotion, as a noteworthy approach should entail both traditional and digital methods. The main rationale for the advertising approach is the increase in customer reaches that the organisation is bound to accrue. On the other hand, sales promotion should emanate from both in their Audi stores coupled with online (Berndt, et al., 2015). The implementation of the approach is viable since the results are easy to measure hence plausible approach to making changes.

Media to Send Message

The focus on advertising and sales promotion should enable Audi to enjoy a synergy of plausible outcomes in their operational mandate. Therefore, as the first approach, the use of advertising should entail the use of television and radio advertising to send the message. Large populations watch and listen to the radio hence a viable approach to the business (Cox 2015). On the other hand, sales promotion should entail the use of the internet as the media to send a message. The internet provides distinctive avenues such as social media that will ensure effective information relay.

Sample of Suggested Advert

Audi E-Tron: Towards Tomorrow

Justification of Selected Promotional Tools

Sales promotion and advertising are two effective approaches especially in ensuring a wider market reach. In an environment whereby the demand for information is extensive, the use of the two promotional tools enables Audi to ensure wider reach to the different consumers. Most importantly, the use of sales promotion through the internet should enable the company to capture the over 80% internet users in the UK and even the increasing expansion of internet users (Schoettle & Sivak 2015). Furthermore, ensuring target market capture is important for any organization. The fast pace in which UK customers are embracing the internet in their day to day operations should form a plausible facet towards Audi capitalizing on the consumer changes. Customer’s appreciation of the internet, in reference to Schoettle & Sivak (2015) has become a defining factor to the successful promotion initiatives of any organization. Therefore, for Audi to ensure successful market penetration, focusing on the highly sophisticated customer market that embraces the internet should necessitate successful outcomes.

Cost Breakdown

Promotional tool

Approaches

Costs

Advertising

Use of advertising agencies

€ 150000

Sales promotion

Website optimization

€100000

Sales promotion

Use of Facebook, blogging and YouTube

€ 50000

Metrics to Analyze Results of the Campaign

Analysis of the campaign is dependent on various metrics for evaluation of the success of mainly sales promotion. Admittedly, to evaluate the success of sales promotion, the implementation of customer traffic analysis will be evident (Ivanova 2015). Through the evaluation of the customer traffic, comprehension of the number of customers that the organisation pulls to its website and even social media sites will be evident (Dasgupta, & Ghatge, 2015)). Additionally, an analysis of the level of sales evident through matching to the customer traffic will generate an in-depth comprehension of the success of the organisational initiatives. On the other hand, in regards to advertising, an analysis of the success of the approach will be reliant on distinctive aspects; Majority of the advertising is designed towards promoting the sale coupled with reputation of a given product. Admittedly, to ensure that the product and services are comprehended and accepted in the consumer market, it is important that the organization focusses on the comprehensive consumers for successful outcomes. Therefore, the marketers should implement the advertising approach to generate exposure attention to the Audi car, comprehension coupled with attitude change. Hence, advertising as a non-personal selling of a given product or service entails the implementation of three main approaches. The approaches are based on passing information (informative), persuading, and reminding the prospective buyers about the product (reminder-oriented). For Audi to necessitate a successful outcomes coupled with generate an effective approach towards metrics analysis of the success of the advertisement, they should implement the informative product advertising (Cummins, Peltier, & Dixon, 2016).

The informative product advertising should denote infomercials entail the promotion of any new product so as to develop the initial demand. Through the implementation of the approach, Audi will manage to ensure a successful introductory stage of their product. As a new car model that is highly technical, Audi should focus on infomercials. Infomercials are largely successful in ensuring proper comprehension of the car specifications. Through the implementation of infomercials, the company will also manage to evaluate the success of their approach. Evaluating the number of calls received and analysis of the customer response through examination of the main queries on the vehicle, the company will manage to implement plausible changes.

Conclusion

Marketing is important towards the success of an organisation. From the evaluation of Audi, the implementation of distinctive marketing approaches such as sales promotion and advertising will catapult the sales of the e-Tron care. Most importantly, the company should re-evaluate its targeting approach to necessitate further customer acquisition.