>> Audi
he your 1800 markod the estabistment of August
Horch & Ce, the fest car manufactueng ‘comosny
founded by August Horeh. Ae’ pioneer in autersotie
fengneating, Horch had prevousy worked with Car
Bera inenior of modem automabies with combustion
fengnes, Horch ft is company in 1909 because of
ferences wih ls co-maragament and supervisory boar
He trmediatoly sat up a socond car vonture wich he
pamed Aud"—tho Lain warlation otis German fay
fame, Horeh Chale "tenn Engl). Fem the vory
begining, Aud esablshed a traction of sors victres.
‘Tank to Azle sccompishmerts inthe Austian Alpine
‘Rune batween 1911 and 1914, August Horch succendes
fpmaking the brand nernatonaly wel-xnown win jst
aon yrs,
nr 1952, the company’s famous touring emblem
was created when AL merged with the erevousy in
‘pendent companies Horch, Damp-KraftWapen, and
‘ender to frm Auto Union, For mary years, he name
‘As vas not In use. A new merger In 1965, between
‘uo Union and NSU Motorenwerke AG, estsbshed ALdl
NSU Auto Unien AG, The compary was renamed Aud in
4905 oy Volkswagon, the hokdng Company of Au ance
‘he mic 10606,
‘Anew advertising sogan was creed for the com
pany a 1971 and has been sed 88 the company’ mis
fion stalemont ever since. "Vorsorung durch Toctik
which oughly translated means “progress trough tao
nology” ronan the main catehptvase for Ald Io he
1870s and 1880s, the company was efecively puting
hie to practce wih innovations like the quatto four
ahaa! dive, aluminum cer bodes, dect-Rjecton
(Gres, and ho tat roid vette.
Despite these achievements, Aud had problems
and needed to repostion ise in an increasingly com-
pattha ervircrrant. Customers in the United States
ompained about @ mysterious scoseraton In. thot
ars, and the image of Aucl wes not sophisticated
rough for a manulactirer of premium and luxury cars.
Soinabold move, tne company’s menagement decided
fon an extrane ropcaitoning strategy. Audi was to be
the most progressive ofa premium car manufactures.
Sporiness was cxed as the Second aereniating tac
‘or With a famous commercial, the brand ranstormation
as put into practice 1886, An Audi 100 quatro, 2
fourwhos! dive, drove up a snow-covered &ki jump,
apparently al by Hea. The commeca won a Gols
Ucn on’ dO} athe ternational advertising festival
Cannes, and in 1997 waa voted test German adverising
of times by a profession jun:
‘Aud also heavly invests in motor spons. Numerous
races and word championships nave been won with
Is cars. Besides ts motor eports ects, Audi spon-
sore major teams ike Gamary’s number ene soccer
‘au FC Bayeen Muenchen. Since 2002, Auch and the
Baverans fave been stetegc partners. Aud 1S aso
tha sponsoring pane: for other leading European soc:
(oe cbs lke FC Baresiona and Chelses FO. In Inds,
‘Bucs bacame famous overnight 1956, Ina wen the
‘word champonehip lo cricket, the sport the county Is
‘most passionate about, and Fai Shas ofthe Ign
team Was awarded an’Aual 100 for his wining per
formanco—an event that is fondly remembered in the
county evn today
“The success of Audis marketing over the past two
‘ecades nacomes clear if you compare the companys
Seles fous to the tunover of thelr major coma
tive brand, BMA and Mercedes-Benz. In 2000, Aud
018 approximately 658,000 cars, BNAW 822,000, anc
Mercedes-Benz 1053 millon. Based on sal figures
‘rom 2013, EXW is lang the market with @ narrow
margin of 1.66 millon care ea compared to Aue 1.68
Iiion and Morcedes-Ganz’s 1.46 millon car. in Crna,
the most Important automotive market in the word wih
15.9 mien cars sad (USA: 1546 miller) 20%, Aud
leads the market among the German compettors wih
1492000 cars ald as corrpare To BMWs $60,000 and
Nercedes-Benz's 228,000. Overal, 84 percent of uals
‘oles are rela outside of Germany toca,
‘What else has Audi done over the past years bosices
‘2 bold move in repositioning, and the creation ofa co.
‘ncing advertising and sponsorship concopt? Auk ors
2 vatey of Inovatve proaucts tat meet tre customers
fereasing demand for SUVs and lary cas on the one
hand, and alternate crving systems and compact oars
on the other ucTs SUVs are branded Fo "0" eto
“The company is rounding up fe product range wih &
ew Q7 2015, G1 in 2016, ada G8 #1 2017. Wh
Ober Au products Iko the Aud AB ton, customers
can combine the advantages of hybrids vith tractiona-
‘ive systems. The company’s inage of being a superior
Sports car manulacturers elng enhanced wth models
Tike the Ra ar base on Aus aoe car prototype or
the Le Mans 2énoure race, is compact and mids:
ase ca'8 AI, M3, and At mark the othe” side of the
product partie. They aso promt fom the company’s
Imovatveness through fghtweght construction. and
plugin hybrid tecnnlogy. According to a 2014 con.
‘sumo’ eure, Aud s corldered to be Gormany’s most
Innovative oar manufacturer
“To further invests customers emotional, whi at
‘ne sare tine acknowiedging the ncreesing importance
of the inteme! ab @ communication and’ dstuton
chan in
‘Audi has inoduced gal showrooms.176 pants | comecriva wn cusromens
‘Consumers can experience
itual wort of Aud in 3D. London, Baling, and Bern
were the siaing paces fe the concept. Moscow and
‘ther locations vl folow. An innovative ea for Gor
sharing has recorly boen presertes by Aus Chef of
‘Solas and Marketing, Luca de Meo. Stockhalm serves
18. feat market fora concept whe un to fe persone
share car fo ane or two years. Through an ep, pa
tian can make advance reservations and Iosate
theircar
Despite its global sucoass, tere are challenges
remaining for Aus. The average seling price of an
‘Audis stil ower than an averaga SMW or Mercedes”
Bona. Now entrants the groweg market for ctw
‘onmertaly sustainable cars tke Tesa a8 wel ae ts
German key competitors wl test Audi innovativenes
‘ven further,
Excellence
>> Harley-Davidson
Hatey-Davieon, 2 US, brand snorymous wih beau
1 ota, pes mary to on ts caton20) Os
wth Kenic engr. Today te brand Is Sought ee ot
‘nya the Unto Sates bt gal to. Whet exis
3s wide gobal eccepinoa, ard te. song eens of
‘and toyay among Harey Daicoon motorikeouners?
Haioy-Oaveon seats, rangng Yom the CEO to
tho sal ta, mann perconalze reatonsips wih
somes trough focetotece and toda reda Son
tac. Krowing customer a dv and corny
«go research to keep un wah th changing expec
{ore and expences hip Hay Davason io tres
‘isomer eed bet
Ganent cstorers favo tld Hatay Dao’ an
‘2m to keep fe Wey, ok and sound oF he
‘motryies because ty ae unig. Obey cto
fe accept ho US. tend irage ob sands When
Sietomar vows ee head and acospted by manage.
tat, custorers develo grt bana yay creat
an extacanry cstorer expan et unico an
ible. Buying 8 Hooy ows onnar to ross tr
‘eve and tesco, connect whens ar sae
8 owe of conreceshio tough te aces of HOG
the carpanysponzores Har Onners Grup ar Fg
hb. Onnars of row Hay Cavin motes Sey
feo HOC. mertareip hee ear, Frenewe re
rs can ony various cous an bent,
ee
a eee
‘Questions
1. fn your option, how important isto invest in cus
tome loyaly for cars, 8 product most pecple buy
‘ony every couple of years?
2. Ty toceslimae tho Hote value ofan Au customer
3, What measures should Aud take to bulls longs
loyatyrelatenshig?
‘Examples of evenis and actives that are sponsored
by Independent ceserstips, euch as Harey-Oaveon of
‘Singapore can range fem short des and major dastna-
{on res, 10 foal charly etets. HOLS. members are
‘so inated o events, such as new modal launches, 2nd
‘ides apereciationnighis. Dealers fn eech county sup-
pert 1.0.6, members and foster postive bonding rel
‘tonships among mombers and oher dealers,
1h Srgapore, for instance, @ community of tends
ies Harley-Davidson motoreytes wih a passon, “We
rie “em, and we have lots of unl And weve bean do-
Ing since 1996 in Singapore." "To Fide and Have Fun’
's @ motio that al HOG. chepters around the word
folom. Rises associate rang wh other owners 23 2
time of Loncng that conveys the mage of readom and
advent.
Membership in H.0.G, has increased, Now not only
men but women, chien, and ‘mites ae 8 pet of
HOG's mary ad vats group auings ard actvies,
‘Harey-Davigson has develned a song brend image
‘and consumers appreciate it even more by experiencing
it testhand. The cosa to be ascocatad wy to Harly”
DDavicson trand is strong because it's Inked to an asp
‘atonal Baty,
There are more than 2,000 0.6, members in
Malaysa ona, wih around 500 active ders The
‘Southeast Asia Harley Qumers Group (SEA HOG) oye
‘ase rales and rides as wel a chanly evens, Inte
2013, a two-day event folowed by 2 five-day riding Your
atrectes 800 ono to celabato the 710th aviversary
ofthe bana,fas ony Sunday, rin er ere, Sepang a song senso
of yay 10 the Haly-Davidson bran. Hong Kang,
HO.G. members inclu professors, ko doctor, la
yr, accountants, plots, engineers, move stars, and
business execulies. Thai partipetion shows he strong
brand kyaly among Herly-Davcson ourers and te
Song dos tobe engaged nH.O.G. members acbites.
Proactive in people daveooment, Harley-Davidson
shares company values, philosophy, sed brand exper
foo wih ie tf and proves elective communication to
ts ndsoondentoseer, Professions tering ty members
Of he Harley Davison Universiy in tho US. encour
‘es Consistent sanics at every dessin. Thus, Harsy-
Daridson’s eroloyees aroun the word can be confident
‘about proving the gerne Herley-Davson expeteres.
Satstiog employes deer utstancing sordoes that gon
fates suslanable cusiomer and brand toys, postive
‘word of rou, anc ulimatoly cher company ss
“Te remain comoatine, ivaueoo-basod Hovey
Davioson has stared to enlarge its customer base anc
‘cessful connect wih ney, younger cars by way of
Soci mona appetions, such as Facebook end Tat.
Engaging relationships have bean ostabiched wih young
‘adults who fom a large part of ts global folowersi.
imparant feschack that Harey-Davidson's song brand
name remains appealing to the younger audience
encouraging.
Harey-Davidson also rakes in-person. connoc
fons wih potas foes st musi Tesivals by uses
“Some HOG. members around the wes Ae fr
‘ynamometers to create an interactive experience ca
“asp Slant, hich alews nooo oF Nard an OPPOH
{uty to fel what hk orice a ary Devcon,
ih 2008, becare the lesang manvactre: of
ratoreyeles to eal to customers younger than 24 yeare
‘without changing the products too rascal or lowing
ts pies. Haley Davison enerely mac soma design
‘ements for i Dark Custer saree of motoryol,
\whlon con roa of eusing Harey-Daveson motor
cycles ut wih fat Back part, much less Crome, and
tonee-down styng. It perraved ts hertage message of
Freedom, uniqueness, individual eression, ard shares
experience a recognized by older customers,
‘Questions
1. What has Harlay-Davidson done with its H.0.G.pro-
gram to roto an exraornary customer experince
‘hat = unique and valuable oie members? Has te
‘matoreylo manutsctuer been sucess?
2. To eriarga its customer base, what would you reo
commend Hetley-Davson do fo culete long-term
rRtionchips wih a younger uence, aged botween
18-847