The corporate culture of a corporation strongly influences how its personnel act and the policies they adhere to. Standards and values provide valuable insight into identity. Audi’s company principles are appreciation, transparency, accountability, and integrity.
These principles demonstrate how the Audi Group appreciates diversity, innovation, and teamwork. Audi also wants to be known as a firm that cares for both the environment and the general public. Mistakes shouldn’t be covered up; they should be addressed. We are very concerned about this issue, especially in light of the fuel problem. Additionally, it is the only way to advance and always get better. We need to improve and implement our business culture.
In This Article...
What are the three athletic key values of the Audi brand?
2017 saw the honorific title “Audi received the Red Dot: Brand of the Year award. Audi has distinguished itself in the Red Dot Award for many years by its unique design ideas. The automobile group has awarded the honorary distinction five times since 2010 for its powerful brand marketing, demonstrating that persistence is rewarded. Audi won a total of 19 awards in the competition by itself in 2017. Giovanni Perosino, Vice President of Marketing Communication at Audi, discusses brand values, rivalry, and powerful slogans in the opening segment of his conversation with Red Dot.
Perosino, Mr. You joined Audi as Vice President of Marketing Communications in the beginning of 2014. What presented the greatest difficulty for you in the early stages of your new position?
Perosino: I assumed leadership of a seasoned, reliable marketing communications team. There was no immediate urgency to intervene. But in my opinion, there was a contradiction when it came to speaking with a unified voice. This can be related to the manner in which the business was expanding. A multinational company like Audi can find it difficult to maintain brand consistency if those nations see rapid growth. It resembles a large symphony orchestra where the musicians are all skilled and prepared, but they lack the necessary synchronization to perform properly as a group and to forge a shared identity.
What enables the individual players and soloists, who are all accomplished practitioners of their instruments, to come together to form an orchestra?
Perosino: We established a panel of experts to “Board of the Rings, which brings together leading agencies and influential decision-makers in international marketing. The idea was to create a single voice that could be used globally by exchanging experiences and consulting on brand values.
But wouldn’t you get just as many varied opinions if you gathered a lot of experts in one place?
Perosino: I am lucky to work with a group of extraordinarily talented individuals who take their careers seriously. It was my responsibility to point them in the right direction and encourage them to speak in unison. We were able to create a shared vision and a tone and register that best represents the Audi brand by spending time together. It resembles writing a recipe in many respects, complete with a list of ingredients and detailed directions for cooking a dish. In the end, everyone is aware of the global brand’s positioning and common vision.
You essentially started an internal communication procedure that supports the success of Audi’s marketing communications with the Board of the Rings.
Yes, Perosino. The Board of the Rings has developed into a forum for frequent worldwide communication as well as a yearly effort to achieve a common understanding of brand tone, brand vision, and brand positioning.
What conclusions did the Board of the Rings reach? What principles does the Audi brand represent?
Perosino: The goal now that the Board has started is to cross every new concept off of our list of dos and don’ts. Three pillars support the Audi name: Audi is athletic. Audi is a high-end brand. Audi has advanced. The three most crucial aspects of the brand are these. Of course, Audi must be unexpected, surprising, and engaging in every campaign and piece of communication we distribute over the world. These are now more than ever the guiding principles of our work. Establishing and managing the brand is simpler the better understood these ideals are. Audi has supported these ideals in the past, and they are actually a part of who we are as a company. They must, however, be conveyed in a manner appropriate for the modern world.
Some of the rival brands don’t present themselves with comparable brand values, right?
Perosino: That is why differentiating oneself from the competition is always a difficulty.
Perosino: To use soccer as an example, we do much more to promote our brand than just support FC Bayern Munich or make sure the four Audi rings are prominently displayed on the players’ uniforms. We are curious about potential brand experiences and the value that the brand offers to soccer fans. This inspired us to create the Audi Player Index, a tool that gives fans instant access to and comparison of vital player performance statistics. Point systems and graphs are used to present the findings. The Audi Sandbox, a virtual reality experience, is a another, more auto-related example. A racetrack was created for this in a real sandbox, scanned with an infrared camera, and the data used to create an animation for virtual reality that included all the curves, tunnels, and hills. Then users drive an Audi quattro around the desert in a race! Some of the brand’s key characteristics are shown by the all-wheel drive of the Audi quattro.
Perosino: Of course, it is. Attention is the key to modern marketing. It can be difficult to stand out or develop a distinctive experience in the fight for attention. Audi strives to be unexpected, surprising, and connected in order to surprise the customer and build a connection with the brand.
This means that the innovative methods must take into account these three soft elements.
Perosino: Exactly, I agree. The Audi Mission to the Moon is one project we worked on with the PTScientists team from Berlin. The mission of the German space research and development organization PTScientists is to conduct an unmanned lunar landing. Our rover, the Audi lunar quattro, was built with cooperation from Audi, which is a mission partner and sponsor. When the rover touches down on the moon in 2018, everyone will be able to witness real-time photographs of the lunar surface that are unexpected, surprising, and connected.
Perosino: To be connected is to be significant. The objective is to learn what topics and issues are currently on people’s thoughts and what is being discussed in social media, which is a reflection of our culture. When we are able to recognize and categorize these problems, we work to interpret them in terms of the Audi brand values and strategy or to offer them a fresh perspective.
What elements will influence marketing in the present and the near future? Is there a growing focus on digital technologies?
Perosino: Creativity is the only way to differentiate yourself. My objective is to learn about the preferences of my clientele. Always put the consumer first. By developing an unparalleled brand experience, we hope to surprise and motivate our customers.
Having said that, is the Audi motto “Is the 1970s concept of Vorsprung durch Technik still relevant today?
Perosino: Without a doubt! “One of the most powerful brand statements made anywhere in the world is “Vorsprung durch Technik.” Furthermore, it has evolved into a kind of mindset. We work and live Audi “In everything we do, there is a technological advance. Considering that now, “Vorsprung is about constantly being one step ahead of the competition.
What does the Audi brand represent?
Audi AG, also known as Audi, is a German luxury car manufacturer with headquarters in Ingolstadt, Bavaria. Its German pronunciation is [adi ae](listen). In nine manufacturing plants across the world, Audi produces automobiles as a division of its parent business, the Volkswagen Group.
August Horch, an engineer, formed the first businesses in the early 20th century, including Horch and the Audiwerke, as well as two additional manufacturers, DKW and Wanderer, which eventually led to the founding of Auto Union in 1932. In the 1960s, Volkswagen purchased Auto Union from Daimler-Benz, ushering in the contemporary Audi era. [9] Volkswagen combined Auto Union and NSU Motorenwerke in 1969, reintroducing the Audi brand with the 1965 release of the Audi F103 series and giving the business its current structure.
The Latin translation of the founder’s last name, August Horch, served as the inspiration for the firm name. Horch, which in German means “listen,” becomes audi in Latin. The four rings of the Audi logo each stand for one of the four automakers that joined together to establish Auto Union, the firm that preceded Audi. Vorsprung durch Technik, or “Being Ahead via Technology,” is Audi’s catchphrase. [10] One of the most popular luxury car brands worldwide is Audi, which is also sold by rival German automakers BMW and Mercedes-Benz. [11]
What is the vision statement for Audi?
In every market we serve, “to be the BEST automotive sales and repair organization.” “We are only effectively performing our duties when we give our consumers an experience that encourages them to come back and do business with us again.” Respect is the quality of treating others with courtesy and respect.
What does Audi excel at?
This German luxury brand is renowned for its performance, beautifully designed interiors, and iconic Quattro all-wheel-drive system, as well as for its technology and style. Almost every model has a premium cabin and is a reliable performer. The cabin is quiet, and the ride and handling are good. Audi, like many other automakers, is progressively introducing more electric cars; the brand labels these models E-Tron. Currently, Audis are considered to be a reliable brand.
What are Audi’s goals and objectives?
The Audi Company has four more goals: ongoing expansion, exceptional financial growth, leadership in the world’s image, and desirable employer globally. Gender, age, social-economic status, region, or any other combination of demographics are typically used to identify target markets.
What is Audi’s game plan?
By 2030, Audi aspires to be a social, technological, and sustainable leader. The high-end manufacturer intends to provide owners of electric vehicles with an unmatched onboard system with its own ecosystem. The pace of change in our society is accelerating, so we’re accelerating our own transformation, says Audi CEO Markus Duesmann. A few weeks ago, Audi announced that starting in 2026, it would only launch new models on the global market that were equipped with electric drive systems. The company will gradually phase out production of its internal combustion engines.
The Board of Management spent the past few months developing the company’s new “Vorsprung 2030 strategy in order to continue living up to Audi’s “Vorsprung durch Technik (“Progress through Technology”) slogan in the future. With a firm date now set for the company’s transition to e-mobility, the brand with the four rings is resolutely tackling its transformation. Audi embraces its role as a pioneer and driver of innovation in the automotive industry. Duesmann stressed that his organization sees itself as a provider of freedom and personal mobility for its clients. Audi is concentrating on zero-emission propulsion technologies as a result. “We don’t only create technology for its own sake; it must be useful and efficient in maintaining global progress.
The CEO will field inquiries from the worldwide press on September 1, 2021, at the “Corporate & Business theme day during the Audi Media Days event in advance of IAA 2021, including: What is Audi’s vision? In order to continue advancing technology and set itself up for the future, how will the company alter over the next few months and years? What steps is the business taking to establish new internal procedures that encourage more innovation? What new technologies and goods may customers expect in the upcoming years?
What is the marketing plan for Audi?
The price approach used in the marketing plan for Audi is as follows:
Audi capitalizes on its brand image with a premium price policy. The pricing approach in the Audi marketing mix is mostly focused on the premium automakers’ pricing because it is a competitive market. For Audi, brand equity is strong. The business places high-quality goods in Audi showrooms so that clients can readily access the brand. Audi vehicles typically cost $35,000 or less, with top-of-the-line sports variants costing up to $1.5 million. Audi Finance provides a cutting-edge financing alternative to make it easier for customers to purchase the products. For existing customers to use the optional features in the cars, an optional pricing strategy is used. For instance, in an Audi Bang, the sound system and navigation system are optional extras that the buyer voluntarily chooses to acquire. Geographical regions and a nation’s economic situation also affect how much an Audi costs.
Along with its marketing mix, Audi’s marketing strategy also includes segmentation, targeting, positioning, competition, and analysis like SWOT. Read the Audi SWOT analysis, STP, and competitors as well.
What do Audi’s four circles represent?
Audi, DKW, Horch, and Wanderer merged to form Auto Union AG, which at the time was Germany’s second-largest motor vehicle manufacturing firm. The union was symbolized by four interlocking rings. Here are some quick facts about the history of the current AUDI AG.
Audi
August Horch founded a business in Zwickau on July 16, 1909, however it was unable to use its founder’s name due to unfair competition. By translating Horch’s name, which in German means “hark!” or “listen!” into Latin, a new name for the business was discovered. As a result, on April 25, 1910, the second business founded by August Horch officially opened for business as Audi Automobilwerke GmbH, Zwickau.
The designation of a certain market sector to each of the numerous brands in order to produce a coordinated model range was one of the secrets to the success of the still-emerging Auto Union. This resulted to the creation of the Audi ‘Front’ Type UW, a midsize car for the Audi brand, which allowed the new organization to utilize synergy benefits for the first time.
The front-wheel drive of the new Audi was its standout feature. The front-wheel drive expertise of DKW was merely applied to a midsize car. Ferdinand Porsche’s 2-liter, 6-cylinder Wanderer engine served as the vehicle’s power source, while the highly regarded Dresden coachbuilder Glser constructed the convertible models. The saloon version’s body came from Horch’s body shop.
‘Front’ Type UW Audi
The designation indicated that in the spring of 1933, a Type U powered by a Wanderer engine finally entered production. A year later, in order to make room at the Audi facility for the expanding production of DKW front-wheel-drive vehicles, production operations for Audi were moved to the nearby Horch plant. The redesigned Audi Front 225 was introduced at the 1935 Berlin Motor Show and stayed on the market until 1938. It was technically upgraded and fitted with an upgraded 2.3-liter Wanderer engine. The Audi 920, the model that succeeded it, likewise clearly demonstrated the usage of a modular construction technology. The Wanderer W 23 six-cylinder model’s chassis, which once again had traditional rear-wheel drive, and contemporary body style were practically interchangeable. Horch designed the inline six-cylinder OHC engine for this exquisite vehicle, and DKW floating-axle technology was used for the rear suspension. In December 1938, the first models of the new vehicle rolled off the assembly line at the Horch plant of Auto Union. The Audi 920 quickly gained popularity among consumers and was a hit on the market.
The start of the Second World War abruptly put an end to this success. The group’s operations shifted to the production of armaments and the production of civilian cars was reduced to a minimum. For this, prisoners of war, detainees of concentration camps, and forced laborers were all recruited. In April 1940, the final Audi of this era was created. For the next twenty-five years, no more passenger cars would be produced by Audi.
DKW
Rasmussen & Ernst, the company that was initially established in Chemnitz in 1902, relocated to Zschopau in the Erzgebirge region in 1907. At first, it produced and sold vulcanization machinery, centrifuges of all types, car mudguards, and exhaust-steam oil separators for steam power plants. Jrgen Skafte Rasmussen, the company’s founder, started experimenting with steam-powered automobiles in 1916 and registered DKW (short for Dampfkraftwagensteam-driven vehicle) as a trademark in 1922. The business started producing two-stroke engines in 1919, first in the form of a functional toy engine. This resulted in a name change to “Zschopauer Motorenwerke J.S. Rasmussen OHG” in 1921. The first DKW-branded motorcycles rolled out of the Zschopau facility a year later.
When the four businesses Audi, DKW, Horch, and Wanderer joined on June 29, 1932, to form the Auto Union, Zschopauer Motorenwerke/DKW was selected as the parent company for ethical and societal grounds. Before moving to Chemnitz in 1936, the administrative headquarters of Auto Union AG were housed in Zschopau’s DKW headquarters from 1932 to 1936.
Rasmussen and his Zschopauer Motorenwerke were crucial to the founding of Auto Union AG, and DKW products were equally crucial to the growth of the new business’s economy. The low-end of the market (the price range between 345 and 3,400 Reichsmarks) was served by DKW motorcycles and vehicles, which represented the high-volume Auto Union model line.
Due to the high volume of DKW bikes produced, Auto Union, which had a DKW facility in Zschopau, became the largest motorcycle manufacturer in the world in 1937 after producing a total of 55,470 motorcycles. This honor had previously been held by the Zschopau-based firm in 1928.
DKW stationary engines, which had an immensely broad program appropriate for application in a number of fields, were another significant production area (e.g. agriculture, road construction, the fire brigade, the army and public authorities).
It is well accepted that DKW products are straightforward, useful, dependable, affordable, robust, and effective. The Zschopau-based company established itself as a technological innovator in the fields of two-stroke engines, front-wheel drives, and body construction (wooden and plastic bodies). This spirit of innovation also fueled Auto Union AG’s capacity for innovation, which resulted in the establishment of a central engineering design office (ZKB) in Chemnitz and a central testing unit (ZVA) for all Auto Union brands beginning in 1936.
The inter-company cooperation that produced DKW cars was a logistical masterstroke: the four-cylinder versions with rear-wheel drive were also assembled at the DKW body manufacturing facility in Berlin’s Spandau district, while the engines were made at the main Zschopau factory and the bodies there. At the Audi plant in Zwickau, the front-wheel-drive versions were assembled.
By introducing a comparable model, the DKW F 9, in the late 1930s, the DKW brand gave Auto Union the required capacity to fend off the anticipated competition from the “KdF-Wagen” (the People’s Car or Volkswagen). Due to this, Auto Union was the only automaker in Germany to have a competitive model ready to go before this Volkswagen model.
Following the war, the enormously well-liked, tried-and-true DKW models helped the recently established Auto Union GmbH in West Germany establish itself and also sparked a revival of the car sector in Saxony in East Germany.
Horch
There were numerous car manufacturers in Germany towards the end of the 19th century. One of them was August Horch & Cie., established in Cologne on November 14, 1899. One of the early figures in the development of the vehicle was August Horch. His professional background comprised three years in head of car production at Carl Benz in Mannheim before starting his own firm. August Horch relocated his company to Zwickau in 1904 and changed it into a joint-stock company.
August Horch, the company’s founder, had established the notion that the Horch Werke in Zwickau should only produce high-quality, potent automobiles. From the beginning, Horch’s automobiles were among the top offerings in the German auto industry.
Large-scale rationalization initiatives were put in place in the 1920s to increase the profitability of assembly-line production. Following the introduction of the first eight-cylinder car in Germany in the autumn of 1926, Horch goods became some of the top ones produced by the country’s auto industry. Previously, the Horch firm primarily produced automobiles with four-cylinder engines; however, in recent years, its engineers have focused exclusively on massive, prestigious eight-cylinder vehicles.
The Horch 8 came to represent style, luxury, and cutting-edge technology in German auto design. The Horch firm also started to establish standards elsewhere. Horch had a market share of more than 44% in Germany in 1932 for engines larger than 4.2 liters.
It was obvious when Auto Union AG was founded that the Horch brand should dominate the premium market sector within the new group of businesses. Additionally, the Horch Body Design Office served as the group’s main design studio and established the various models’ stylistic guidelines. The Horch factory’s utilization of cutting-edge production techniques served as a model for the other manufacturers in the group.
The Horch model program was split between large vehicles powered by straight-eight engines and smaller vehicles powered by V8 engines starting in 1933. When it became apparent that more potent engines would be required due to the overwhelming amount of opulent equipment available for a Horch, the 5-litre straight-power eight’s output was raised to 120 horsepower by giving it a camshaft with steeper lobes and increasing the compression ratio. Similar techniques were used on the smaller V8 engine, which saw its power output increase from 62 horsepower at launch to 82 horsepower for the 1937 model before peaking at 92 horsepower in 1939.
Plans for the creation of many other models, including new engines and streamlined bodies, were put out for Horch automobiles. Unfortunately, the war years prevented the development of more than a few demonstration vehicles and testing prototypes.
Approximately 42,000 Horch eight-cylinder automobiles were produced between 1927 and 1940, when peacetime manufacture came to a halt. More than 70,000 eight-cylinder automobiles left the Zwickau factory at that time, a number far above anything attained by Horch’s German rivals. This total includes vehicles provided to the military authorities up until the final end of manufacturing in 1942.