1.Discuss about the Marketing Mix Strategy of Audi in the United Kingdom.
2.How Marketing Mix Strategy is affected by the PESTLE Environmental factors.
The paper talks about the business activities and operations of Audi which is one of the biggest automobile manufacturer companies in the market. It tells that how the company is using effective and unique marketing mix strategies. The marketing mix strategies play a vital and integral role to attain long-term mission and vision of the company. It describes the pestle analysis of the company to beat the competitors in the world. In this way, the company is becoming global player in the world. The United Kingdom has been selected to analyse the marketing mix strategies of Audi.
Audi is a German automobile manufacturer which designs, produces, engineers, markets, and distributes luxury vehicles. The company was founded in 1910 with its head office is located in Ingolstadt, Germany. It is the biggest vehicle company in the world. There are approx 84,435 employees employed in the company (Apfelbacher et al, 2010).
1.Marketing mix strategy of Audi in the United Kingdom
Audi is a German-based car manufacturing organization. It is the biggest car manufacturer company in the world. It is the core brand which focuses on the effective and unique marketing strategies in the global market (Aghion et al, 2016). It is also making dynamic strategies and policies for the future to overcome the competitors in the world. In today’s era, the company is expanding and flourishing its business activities and operations within the organization by using effective and unique marketing mix strategy. The main aim of the company is to attain the long-term revenue and profit in the competitive environment. The brand products of Audi are well known for the brand values and core competencies of the company. The marketing mix strategy of Audi in the United Kingdom has been discussed below (Crossan et al, 2013).
Product strategies: The product strategy plays an integral role in order to explore its business globally. The product strategies have been discussed below.
Product classification: The product classification plays a significant role in product strategy. The company analyzes and evaluates the market of the UK in order to determine the long-term goals and objectives of the firm. Along with this, consumers also plan and carry out survey before actually buy Audi car. They collect a lot of information related to Audi before buying the car. They compare the prices of Audi with other car in the global market. BMW and Mercedes Benz are the main competitors of the company. Along with this, the company is selling the car at very high prices. It uses effective and dynamic advertisement and promotional strategies to increase the profit of the company (Aghion et al, 2016).
B.Branding: Branding plays a crucial and vital role to identify and evaluate the buyers and sellers of Audi. It differentiates their vehicles from the competitor’s vehicles across the world. Along with this, the company uses the effective and attractive logo to attract more consumers globally. Branding not only helps to differentiate their products and vehicles but also helps to segment their market among the people (Verhoef and Leeflang, 2009).
C.Labeling: It is used by the company to describe the several things of the product. Audi provides an instruction book for every buyer in the market. This book includes the information about the car, brand, and instruction in how to use and control the car. In this way, labeling plays a vital role in product strategy.
D.Packaging: It is essential for the brand to protect and secure the products to ensure the safety and security of the products. Audi uses this strategy in the United Kingdom to attract more customers in the world (Naik and Peters, 2009).
E.Product support services: Audi provides customer support services to the people to enhance and increase the satisfaction of the customers. The company is adding new services to delight the people in the global market. For new customers, Audi renders free test drive for them. Along with this, the company renders after sale services which include 2 years warranty and installment facility. In this way, they fulfill the needs, requirements, and expectations of the customers in the United Kingdom. There are many service centers of Audi Company in the UK. These services enhance and build satisfaction and it increases the brand positioning in the world (Varadarajan, 2010).
Pricing strategy: It is the effective and unique marketing mix strategy of Audi. The success and growth of the company depend on the price of the car. There are various factors affect the pricing strategy in the global market. The company is differentiating its vehicles from other competitors’ vehicles globally. It will help to differentiate Audi from the other brands in the world. There are various pricing strategies which have been discussed below (Aaker and McLoughlin, 2009).
New product pricing strategies: The new product pricing strategies are adopted by Audi. Along with this, the company uses market penetration strategy to introduce and launch new product globally. It will also enhance and increase the sales of the company. This strategy is used by the company to attract a large number of buyers in the market.
B.Product mix pricing strategies: This strategy is used by the company to sell a wide range of products globally. Audi sells different type of model of car. The main aim of the strategy is to maximize and enhance the profit and revenue of the company.
C.Price adjustment strategies: This strategy is used by the company to increase the number of customers globally. It provides some discount and rewards to the consumers across the world. Discount can be divided into quantity, cash, functional and seasonal whereas allowances can be classified as promotional and trade (Merrilees, Rundle-Thiele, and Lye, 2011).
Place strategy: There are various types of place strategies used by the company to increase and enhance the sales of the company. The company evaluates and analyses the place and environment of the country to introduce new vehicles in the global market. The place strategies have been discussed below (Kapferer, 2012).
A.Distribution channels/ Market channels: The market channels and distribution channels are used by the company to increase and enhance the flow of the goods and services globally. These strategies are used by the company to promote their products and it also uses indirect sales marketing channels. Audi monitors and focuses on the innovative products in the world.
B.Retailing and whole selling: Audi is using wholesaler channels and mediums to promote and enhance their products to the customers. The company that involves the manufacturing products, it needs to analyze and evaluate the wholesaling process to encourage and promote their products in the UK by using effective and dynamic communication within the organization. It is the good source to reach its final customers in the global market (Keller, Parameswaran, and Jacob, 2011).
Promotion strategies: The Company is playing an enormous role in the marketing promotional activities by maintaining effective communication. It uses unique promotional mix tools to increase and enhance the sales of its car and performance of the company. By using promotional strategies, Audi is trying to attract more consumers in the market. The promotional strategies have been discussed below.
Direct marketing: It is one of the significant elements of the promotional mix strategy. The company is providing special and new cars in the market for the customers to make them feel good and happy. Consumers are welcomed by Audi employees in UK and employees provide support to the people to fulfill their objectives (Nath, Nachiappan, and Ramanathan, 2010).
B.Sales promotion: Sales promotion strategies are used by the company to increase the sales and revenue of Audi. It conducts various sales promotion campaigns to increase the revenue of the company.
C.Public relations: Audi Company maintains a reciprocal relationship with customers in the market. It organizes HIN and INI events to increase the number of customers across the world. In this way, the company is able to get potential employees in the global market.
D.Product placement: It is another strategy of promotional mix to gain the competitors advantages in the market. The company is using product placement strategy to gain long-term benefits globally (Mangold and Faulds, 2009).
E.Official website: It is also an important part of the promotional mix strategy to make an effective and unique relationship with customers across the world. Through official website, the people are able to gain information about Audi in the United Kingdom.
Now it is assumed that marketing mix of Audi fulfills needs, requirements, and expectations of the customers. Along with this, customers easily acquired several types of information related to the vehicles globally. Further, the company is improving its services to meet the requirements of the clients in the market. In addition, it uses wholesaler channels to promote their products globally. The company is able to focus on the innovation by using marketing mix strategies globally. It is making effective brand position in the world by using marketing mix and other strategies of the market (Carter & Lee, 2012).
2.marketing mix strategy is affected by the PESTLE environmental factors
PESTLE analysis is tool and framework to evaluate and analyze the environmental factors of the country. The pestle analysis comprises political, economic, social, technological, environmental and legal factors etc. The PESTLE analysis has been discussed below (Shende, 2014).
Political factors: These factors influence the business activities and operations of the company. The United Kingdom is famous for the cars. The government of the country also encourages and promotes the motor producers to make the new car in the country. There are various political factors that influence the marketing mix of Audi which have been discussed below.
- Changes in rules, regulations, and taxation. It affects the performance and productivity of the company.
- The timescale of legislative change also affects the business of the company.
- The trend of deregulations and regulations affect the business operations of the company.
- Further, marketing mix of Audi also affects the growth and success of the company.
- Foreign direct investment and globalization also affect the revenue and profit of the company. These factors influence the business activities of Audi in UK Market (Ülengin et al, 2014).
Economic factors: The economic factors also affect the growth of Audi in the United Kingdom. The company is facing credit crunch and difficulties in UK market while selling the vehicles of Audi. The government of the country wants to make a better life of the people in the UK. UK government provides support to the families to buy Audi. But some political factors influence the success of the company (Subramoniam, Huisingh, and Chinnam, 2009).
- Current and position economy trend such as stagnant, growing and declining.
- Exchange rate fluctuations also affect the operations and activities of the company.
- Changes in needs, requirements, and expectations of the customers.
- Unemployment rate and recession are other big issues in the environment which influence the trading activities of the country.
- Globalization, access to loans and credit also affect the working environment of Audi in the UK. All these factors influence the success and growth of the company adversely (Gupta, 2013).
Social factors: Audi is the biggest car manufacturer company in the world. The social factors include the following.
- Changes in age, growth rate affect the trading activities of the company.
- Changes in attitude, behavior, and characteristics of the people also affect the operation of Audi in the UK.
- Employment patterns, attitude, and trends in the UK market.
- Standards of health, social mobility levels, and education also affect the growth of the firm.
- Lifestyles and religious of the people also affect the organization.
All these factors must be controlled and managed by the company to provide satisfaction to the employees. Audi is improving its working condition and environment to satisfy the consumers in the UK. In the UK, Audi has established enormous partners with suppliers. Along with this, it is improving the technology to increase the sale of the vehicles in the UK (Y?lmaz and Ustao?lu, 2013).
Technological factors: These factors play a vital and integral role in Audi. The technological factors have been discussed below.
- Technology changes and information technology affect the success and growth of the company. Thus, the marketing mix is affected by the technological factors.
- Cost of investment, research, and development also affect the trading activities of Audi.
- Along with this copyrights, production technology and patents also affect the revenue and targets of the company.
- Rate technological age and access availability of technology are another big issue in Audi to operate its trading activities in the UK.
- Changes in infrastructure also influence the workflow and activities of the company in the UK. These factors must be managed and controlled by the company to beat the competitors in the world. It also helps to meet its long-term goals and objectives in a competitive environment of the country (West, Ford and Ibrahim, 2015).
Environmental factors: The Company maintains corporate social responsibility and sustainability in the UK market to maintain good relations with stakeholders within the organization. Various environmental factors also affect the success and growth of the company adversely. The environmental factors include intense competition, bargaining power of customers, economic conditions and pace of technological advancements. The company promises to minimize and reduce the environmental impacts. Audi also focuses and measures the efficiency of the engine. Therefore, the company must focus on the environment in order to meet the long-term goals and objectives of the firm. Along with this, the company must use the effective and unique marketing and growth strategies to overcome on the competitors in the global market. The environmental factors affect the brand image of the company in UK market adversely (Izogo, and Ogba, 2015). The marketing mix is affected by the pestle positively because the environmental conditions of the UK are unique and appropriate. As a result, the company attracts more customers in the global market.
Legal factors: These factors also affect the trading activities and operations of the firm. Audi must focus on these factors to run the business smoothly and easily. The company must evaluate and analyze the legal factors to launch its products across the world. All these factors must be controlled by the company to gain long-term goals and objectives within the organization.
Along with this, the company also analyzes and evaluates the marketing opportunities of the country to evaluate and measure the growth and success of the firm. The company is taking social market opportunities and technological opportunities to explore and expand its trading activities globally. In this way, the company can maintain sustainability in the organization as well environment (Al Fahad et al, 2015).
The marketing mix of Audi is affected by the PESTEL environment factors of the country. The marketing mix is the effective and dynamic approach of Audi to gain long-term goals and objectives in the UK. It helps to determine that which strategy is right or wrong for the organization. The marketing mix also includes the positioning, targeting, and segmentation to divide its market into the different group in the market. In today’s era, it is becoming a more popular strategy in Audi. Through marketing mix strategy, the company is able to fix the right and suitable price of the vehicles in the UK. It also helps to get right things at right and appropriate place and location attract more people in the UK. It also helps to meet the needs, expectations, and requirements of the customers across the world. By using marketing mix strategy, the company is able to make a good image in the global market. The marketing mix is affected by the PESTLE environmental factors. PESTLE analysis encompasses various macro environmental factors which affect the trading activities smoothly and easily. The company can easily implement marketing mix strategies to evaluate and measure the environment of the country (Charan, 2012).
The political condition of the United Kingdom is effective and dynamic thus the company can easily implement marketing mix strategies within the organisation. Along with this, the economic conditions of the country are good thus, the company does not put the additional efforts to analyze and evaluate the market of the country. The United Kingdom is using innovative and new technologies to attract more customers in the market. Therefore, Audi can easily use marketing mix strategies in the UK (Ülengin et al, 2014). It will help to attain the long-term mission and objectives of the company. On the other hand, legal factors also influence the trading activities of Audi in the UK. But effective and unique marketing mix strategies help to reduce these legislations in the market. In the United Kingdom, the firm can easily evaluate and measure the environmental factors due to its unique and effective marketing mix strategies. The company uses effective and unique promotional and advertisement strategies to enhance and increase the revenue and profit of the company. If the working environment of the company UK is good and unique, then the company can easily implement unique and dynamic marketing mix strategies to beat the competitors. Recession and inflation also affect the revenue and profit of Audi. But in the United Kingdom, the purchasing power of consumers is favorable thus; consumers can buy easily Audi and other cars (Al Fahad et al, 2015).
In this way, the company analyses and evaluates the PESTLE environmental factors by implementing unique and effective marketing mix strategies in the UK. The SWOT analysis and PESTLE analysis affect the marketing mix strategies of Audi in the United Kingdom. It is important and essential to overcome on the competitors in the market. The company can easily attain its long-term mission and vision of the firm. Audi can easily evaluate and measure the plans, policies, and strategies of the competitors by conducting Pestle analysis (Izogo, and Ogba, 2015).
On the above discussion, it has been concluded that Audi is one the biggest leaders in the United Kingdom to increase and enhance the customers globally. In today’s era, the company is increasing its profits and revenue in the United Kingdom. The firm uses effective and dynamic marketing mix strategies to evaluate and analyze the market of the country. Along with this, PESTLE analysis is done by the company to identify and measure the plans and policies of the competitors in the UK. The main aim of the company is to increase the revenue of the company by maintaining sustainability in the environment as well as the organization.
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