no.radar

"Audi Moves to Create a Personality in U.S."

- "Len Hunt has BMW envy. The U.S. head of Audi...says his German competitor has got 'brand recognition that is to die for,' and U.S. sales more than double Audi's current level."

- Audi will mount its biggest advertising campaign ever, even above $105 million spent last year, to close the gap.

- "(Audi) survived a near-death experience in the U.S. market a decade ago, when accusations of design defects that led to sudden, uncontrolled acceleration pushed sales into a nose-dive."

- "If... BMW is new money, ...Mercedes is old money, ...Volvo is safety. What is Audi?"

- "Audi's targets are consumers who can afford a BMW but don't like the status symbol that comes along with it."

- "The new ('Never Follow') Audi ads highlight features that set Audi's cars apart. One spot is about its new continuously variable transmission, dubbed multitronic, which Audi claims gives better fuel economy and more power than most automatic transmissions. Another print add is about the A8 sedan's all-aluminum frame...."

- "One of the most unusual pieces of the campaign is a two-minute history of the compant that was originally developed, in part, as an internal morale booster. The spot, narrated by Mr. Hunt with his native British accent, points out Audi was the first car manufacturer to mass produce an all-aluminum vehicle, and includes footage of the famed 24 Hours of LeMans race, which Audi has won the past two years."

- "Brand experts say Audi has identified a core problem. 'They don't have an image, but the most important aspect of that is they don't have a personality,' says (some expert or another)."

- "Besides defining the Audi brand, two other major steps also need to happen (Len Hunt) says. First, he needs to fill holes in his product lineup, most notably a sport-utility vehicle. Second, he needs to shore up customer service, an oft-heard criticism of Audi. 'It could be better,' Mr. Hunt concedes."

[NOTE TO LENNY BOY: Accomplish goal #2 FIRST!!!!!]

Full text of article---courtesy of Stoney---at URL below:<ul><li><a href="http://online.wsj.com/article_email/0,,SB1014076289417694360,00.html">http://online.wsj.com/article_email/0,,SB1014076289417694360,00.html</a</li></ul>

phred

"Audi's targets are consumers who can afford a BMW but don't like the status symbol that comes along with it."

But forget the #*($ SUV, that is so 2001! Find the next trend and get on it before everyone else does (duh).

Good thing you read the WSJ for us every day. I just look at the pictures!

seattle audi

Have managers forgot the basics in sales and marketing? Keep the customer happy, he will tell two or three friends who will look at and possibly buy your product. But, if you have an unhappy customer, they will tell 10 or more people how #$%@! they are. No sale to you!

Re: SUV - FORGET IT!!!!! What is the allroad? A 2 or 3-year "experiment"? Unless you're going to go after the Suburban/Tahoe/Expedition market and price it accordinly so that "families" can actually own one, save the R&D dollars. The money would be better spent in improving what you do have. Better quality (can you say no squeeky brakes or transmission wobbles?)and performance will repay you many times over.

A better title/plan would be "Back to Basics".

phred

I guess the thrill of a new conquest trumps common sense in keeping the current herd.

Potomac-Greg

How does poor service affect sales? See Saturn vs. the rest of GM.

MikeSchultz

to VW. Put SUV development money into certifications. Develop and sell all Audi models in NA. (end of rant)

seattle audi

Just do the job right, on time and for a fair price. If there are problems, be upfront about it. Don't BS, tell the truth (even if it hurts) and get on to solving the problem.

Damn - Sorry - I sound like I talking to my 5 and 10 year old boys.

phred

Proof that fixed price (and heartwarming ads) is so appealing that people will overlook the quality of the product!

What has GM really gained from all the money it's poured into Saturn over the years? Wasn't it supposed to be a grand experiment that would eventually spread its methods and experiences throughout GM? Just when is THAT supposed to happen?

They kill off Olds but keep Saturn. Go figure.

Potomac-Greg

Much like Subaru, Audi has been making 4WD cars on multiple platforms for decades, but was beaten to the market by the likes of BMW, MB, Lexus and so many others. Like Subaru, the best effort is a pumped up station wagon.

SUVs are trash, but it's about makin' money.

phred

Sales increases look good in the industry and consumer press, create congratulatory ads and raises, and are a good excuse to have parties and lots of back-slapping.

Increases in quality issues (sales and service) are quieter, less obvious outside the company, don't get people promoted or bonused.