Audi luxury unit of Volkswagen and recipient of high-quality VW auto components such as VW pressure plates — is planning to increase its US sales by introducing a fleet of new models that hopefully will surpass the brand's competitors in the luxury car segment in the US market. But first Audi needs to promote its brand to the American buyers. It has to make the US buyers see the significance of the brand.
To accomplish this, Audi is planning to conduct some new advertising campaign that will kick off Monday. There will also be some changes made like for instance its tagline "Never Follow" is to be replaced by "Truth in Engineering" with the objective of showing just what Audis has to offer. The ad will show how engineering can provide better driving experience especially in terms of safety, quality and performance.
One of the reasons that Audi is facing slow sale in the US is the fact that it has never had a comprehensive brand marketing scheme in the first place and instead chose to rely on its products to do the advertising. This simply shows that Audi has great confidence in the quality of its vehicles however what the automaker does not know that even the most successful luxury marques in the US needs advertising to strengthen its brand identity.
Even Toyota Motor Corporation – now the world's largest automaker – has based its product success on the marketing strategy it has implemented in the US. Advertising helps promote and build brand identity which is very important for car manufacturers to obtain the attention that they need for their products. BMW has been able to create the identity as the "ultimate driving machine" so thus Mercedes which is identified as the ultimate in the car luxury segment. Unfortunately for Audi, according to Johan de Nysschen, executive vice-president of Audi AG's US office, "We seem to be faceless".
This is also the very reason why despite the remarkable quality of Audi cars it is still lagging behind its competitors in terms of sales. Last year, 2006, Audi sold more than 90,000 vehicles in the US which is a first for the company. Similarly for the first four months of this year, the luxury unit of Volkswagen has also record an increase of 15 percent increase in sales. Despite such an increase that the brand is experiencing it still doesn't come near to what its competitors has achieved – the likes of Lexus has sold more than 322,000 vehicles last year while BMW brand has been able to sell more than 274,000 cars and SUVs.
For many years, the Audi executives have considered the US market as if it was one of those German provinces and have relied solely on its product lineup to produce sales for the brand. And now they have found out that the US market is in fact a unique market on its own.
The luxury unit of Volkswagen has learned its lessons and is now trying to set things right. Audi is now currently developing its identity in providing the best driving experience. According to Scott Keogh, Audi marketing executive who was hired last year after ten-year tenure in Mercedes-Benz, "You see this every few years where luxury brands change their message. We are putting our foot in the ground and saying this is who we are. "
One of the commercial released by Audi gives emphasis on the A4 sedan and displays the vehicle as being parked on a neighborhood street in between two of its competitors. The commercial states that the Audi is "for people who can park themselves" stressing the remarkable driving experience that comes with the vehicle. The ad also indirectly pokes at the Lexus that possess a self-park system on its new LS sedan.
To produce the new commercials for Audi Mr. Keogh hired the Venables, Bell & Partners based in San Francisco. Mr. Keogh said that it's about time that Audi stopped being the understated brand in the US. Audi needs to break out and to make some noise. The new marketing campaign is aimed at helping the brand to achieve such. The new ad will be launched at the introduction of the TT sports car, the S5 coupe, and the R8 sports car. And for next year it will have a redesigned version of the high-volume A4 and the small SUV called the Q5.
To further develop brand identity Audi will also be conducting more events that aim to generate brand awareness for the various Audi models. Volkswagen's luxury unit has opened a new brand showroom in midtown Manhattan called the "Audi Forum". To attract attention, Audi has invited New York Mayor Michael Bloomberg and had him driven an Audi R8. Later that evening Audi has hosted a party at the showroom that features Woody Allen's jazz band together with comedian Stephen Colbert and singer Wyclef Jean.
Audi is considered outspent by competitors like Mercedes-Benz and BMW, according to Mr. Keogh that's why it is not surprising that it will get a treatment similar to that of unknown personality. The marketing team of Audi has developed a grassroots marketing scheme that would rely primarily on word of mouth and viral marketing backed by traditional media campaign.
There were already tow commercials released that focuses on the new TT sports car and are 15seconds long. The ads open up with a question "Do you have a moment?" and then flashes a stream of images in less than a second making as what Audi claims as "the world's fastest commercial" which relates to the high-performance of the TT. The ads were also designed for consumers with digital video recorders in which they can view the commercial in slow motion.