Audi Q5 How to deliver value – Assignment Help
Executive Summary
Strength and pride of a company has always been laid upon value delivery and delivering it via marking mix always stands very crucial. Developing quality and the process of its delivery had always been of vital importance. Every individual customer always prefers a product with high quality standards and added advantages. Marketing mix-4ps provide their own value. Deliverance of value can be through different forms like, product features, benefits, its placement/availability, and communication/advertisement or through its pricing.
Audi Q5 utilizes each marketing mix component in value deliverance, either it is in the form of providing information to customers in time or creating desire through advertisement. A Close relation between Audi Q5 and its customers is always maintained. It depends on relationship marketing as its basic tool. Relationship data marketing is the result of deep analysis and data management. Every individual strategy displays its value development and delivery. Striving hard developing customer’s trust in the product is the main theme of achieving a value chain and delivery management.
Audi Q5 offers a long lasting product in terms of durability and luxury for its customers. Classy and voguish body represents charismatic cars for charismatic people. Audi Q5 is the perfect example of reflections of an array of class managed by the company since last many years. Audi’s have been advantageous in its modification in the cars and how efficiently they have been able to unite all components of excellence. Audi Q5 stands unique, as it is tailor made keeping in view the user’s demand and desire.
Audi’s products will be considered as market leaders as long as they keep up with their commitment that is to satisfy its customers on all stages from purchasing the product to it’s maintenance or even modification.
Introduction
In the present competitive global market, developing values and its deliverance is becoming crucial with every click of an hour. Mega investments are borne and lots of efforts are being made in just creating and designing strategies for the deliverance of higher standards of value and sets of benefits for the customers, so that the product can be delivered at the right time – right place with the correct sound of communication.
The planning and production of the products (color, packaging and size) are completed in a manner that it delivers value by itself, accompanied by its basic marketing mix. Marketing mix-4ps, product, price, promotion, place, are followed at different stages and levels awarding a unique touch to the product’s selling and availability. The same research and strategies will be discussed in this report.
Background
Marketing conventional concepts and acknowledged physical process sequence, is the knowledge of how a product is made and sold. The companies were using it when the consumers were not selective about design, glamour, quality and accessories. Now, the customers have changed and so is their desire, this view is largely neglected by the companies because the mass market is divided into micro markets, where every consumer has his own preferences, wants, needs, perceptions and buying criteria. (Kotler, K. &. 2008)
Marketing influence persuades the process of value formation and delivery. As per the same concept, initially on different levels there is value selection, market selection and fixing value standards. Secondly, value is provided to consumers by developing product or services, pricing, sourcing and distributing and in final step “value” is communicated through sales force, sales promotion and advertisement.(Kotler, K. &. 2008)
Purpose
The concept of value delivery formation through 4Ps is to develop a strong brand desire among companies/products and consumers in a manner that they can easily identify, select, use and dispose off the product and make a long-term relationship with such a high customer caring product. (Michael R. Solomon, 2008)
Value delivery comprehend the consumers how the product has core competencies and uniqueness and with all the holistic approach, how the companies feel their costumers as an integral part of their body. (Kotler, K. &. 2008)
The Product- Audi Q5
Audi Q5, high-style futuristic car, won the Australia’s best 4WD luxury car in 2009, and was launched in Australia in the same year. It was awarded maximum 5 stars point in all sections, which included fuel consumption. Providing maximum safety, it is installed with air bags for front and back seat riders. Leather seats and high-powered air conditioning represents maximum comfort level for the passengers. 3.0-liter diesel engine producing 176 kW power and 500Nm torque driving through the permanent all wheel drive system.
Audi Q5 is loaded with multiple power options like remote power door locks, power windows and heated back screen. With cruise control and triple zone climate control, Audi Q5 becomes more appealing. For on trip entertainment it is equipped with 10 speakers, 180 watts stereo output, single woofer, memory card slot, radio data system and satellite radio service as complimentary for 3 months. Offered in 8 different exterior colors and 4 interior colors, it gives more selection options for Audi lovers. Additional accessories as temporary spare tire and privacy glass makes it car loaded with complete features.
According to Jez Spinks, 2009, “The car maker expects to sell 1000 Audi Q5s this year, but says that the number is limited by availability. Audi is capable of selling up to 1500 Q5, in a full production year, bypassing the sales of biggest competitor BMW X3 to become segment leader. Plans are under way of Mercedes Benz in launching GLK almost similar version of Q5, in Australia.
Product- Value Delivery
Audi Q5 executes the value to its customers in support of its product’s appearance and advantages. It complies by the customer value and lies at enhanced product section in customer-value hierarchy because it has point of differentiation in itself and it positions its brand image strongly. (Kotler, K. &. 2008)
Audi Q5 ensures basic value to the Audi lovers through comfort level and safety. Equipped with air bags for rear and back seat riders, conveys the message “safety first” to the customers. Keeping up with the customers’ expectation, Q5 if offered in eight exterior colors, brilliant black, dark beige metallic, garnet red pearl effect and ice silver metallic. Giving option four colors for interior including, black leather and cardamom beige, it reflects excellence in the product and customers derive symbolic meanings from these colors that suit their statuses.(Michael R. Solomon, 2008)
With the option of car configuration for the product, company increased its ability to individualize market offerings, messages and media. Through this mass customization, customer’s requirements to prepare, design and decorate their own product and have an Audi Q5according to their desire. (Kotler, K. &. 2008)
Audi Q5 is integrated with Bang and Olufsen Sound System, 14 speakers optimized to suit the car along with 10 amplifiers that provides the driver with an exceptional music experience. It offers a complete package of entertainment and value fulfilling the need for a pleasure drive. These exclusive features make Q5 unique among Mercedes and BMW in 2009. Extended series with advanced product development and inventions make it a part of potential product level, in series of value delivery hierarchy.
With the induction of new system revealed by Audi Q5, its POD would be upgraded to POP shortly. Taking support of different marketing strategies and campaigns Q5 delivers its utmost value to its customers either it’s in the form of accessories, durability, color, shape or it is due to the personal desire.
Promotion- Value Delivery
Promotion strategy of Audi Q5 is to convey its message and value, conducting joined and mass media promotion by itself. Prime target of its promotion strategy is creating an awareness of Audi, increasing sales, motivating loyalty and word of mouth marketing.
In the present scenario of competitive economy, Audi opts for relationship marketing considering it a perfect approach towards marketing. Developing an element of confidence and taking mutual satisfaction as the prime target, Audi maintains a bridge with its customers via online campaigns and promotions search engine marketing, social media activity and other multiple mediums. Using advance-marketing stunts, Audi keeps its customers engaged through regular polls, surveys and interactive games. Once the customer’s data is managed they are approached through emails, SMS, mobile competitions and other campaigns.
People chasing Audi Q5, as presented in a ‘Car Carrier’ Commercial, reflect the value Audi Q5 is delivering which the people had desired of. Mercedes, BMW and Ferrari could not deliver the same value. Message conceived from this commercial is, the value that was craved by the people has been delivered by Audi Q5, and deliverance of the same value standards to its customers is the goal of every individual company.
In another, Audi Q5-Nightmar Commercial, the uniqueness of Q5 is highlighted; theme of the commercial is that identical cars can easily be stolen. Audi Q5 is designed considering the fact that cars get similar and can be copied. Thus, delivering unique and high level of value to the customers. Mostly people seek unique products; Audi Q5 offers products that are different in features, design and services, and this distinction.
Price-Value Delivery
Audi Q5 prices are decided keeping in view consumer’s psychology and perception. Thus, the strategy that is used here is product quality leadership, which reflects high price, means high quality. This price is status reflective pricing. Audi gets neck to neck with its rivals this term and settled price that reflects quality and glamour. (Kotler, K. &. 2008)
