Is It Now or Never for Audi ?
05-09-07, 11:02 AM
#1
Super Moderator
Thread Starter
Is It Now or Never for Audi ?
May 8, 2007, 5:32PM EST
Is It Now or Never for Audi ?
After years of playing catch-up, the German carmaker unveils a new marketing strategy that it hopes will finally earn it the respect and sales it deserves
by David Kiley
Despite Audi's presence in the U.S. market since the 1960s, it has little brand recognition, consumer awareness, or purchase consideration beyond the "autoscenti" of Car & Driver subscribers and European ex-pats who well know Audi's reputation for tailored luxury cars and sure-footed all-wheel drive.
But fortunes have been changing for Audi. Sales in the U.S. have climbed from a paltry 14,000 in 1995 to 90,100 last year. This year, the company expects to top 100,000. And the German brand, a unit of Volkswagen, has put together a lineup of luxury and performance cars that for the first time can go head-to-head with BMW (BMWG), DaimlerChrysler's (DCX) Mercedes-Benz, and Toyota's (TM) Lexus.
Audi managers are quite sure of the quality of their hardware. And the company, with a feeling that the time to make a move is now or never, is launching a new campaign from its new ad agency with a pretty modest goal. "We have to popularize and energize the brand," says Scott Keogh, chief marketing officer for Audi of America (he joined the company last year following several years at Mercedes-Benz).
Limited Attention
Such a goal sounds either trite or childishly simple, as if Keogh doesn't understand how sophisticated marketing has become. But sometimes the simple answers are correct: Audi just isn't on enough buying lists, and not enough people know Audi or its products. Keogh is betting if the new ad campaign succeeds at making more people curious about the brand, then the actual product will close the sale.
He's up against a problem he recognizes from his days at Mercedes. According to Keogh, most buyers have an attention span that allows for only three brands from each industry. In the luxury-car business, it's Mercedes, BMW, and Lexus. "And everybody else," says Keogh. Having sold a little more than 90,000 vehicles last year, compared with 302,000 for Lexus and 248,000 for Mercedes, Audi isn't likely to crack the top three anytime soon. So, to grow by double digits annually for the next five years, the company's goal is to expand the club to four brands. The way to do that, Keogh says, is by being more clever with a much smaller ad budget than his competitors.
Take TV ads that break May 7 and run for a week, featuring the TT Roadster in spots that only last 0.2 seconds. Huh? The ads run at hyper-speed within a 15-second ad, and are meant to prompt viewers to replay the commercial on their digital video recorders (DVR) at a slower speed. Audi says about 65% of its target audience has a DVR at home. The 0.2 seconds is significant—it's the amount of time required for the TT Roadster to shift from one gear to another. When the ad is played back at the slower speed, a series of images goes by showing that the gear-shifts happen faster than a snakebite or the formation of a raindrop.
Mystery Message
The technique isn't brand-new. Coca-Cola (KO) and General Electric (GE) have also utilized DVR technology to try to get viewers to watch an ad instead of skip over it. The gimmick will be employed throughout the year for some of Audi's other models as well.
If Audi's new ad agency, San Francisco-based Venables Bell & Partners, gets a handle on the DVR technique, it could increase viewership of its client's ads. The idea, says Keogh, is to change the content in the slowed-down version of the ad in order to keep it fresh and to keep people curious about what might be added.
"It's a little of the mystery that people will come to appreciate, like playing the Beatles' 'White Album' backward to hear the message," he says. The agency will have to jazz up the content of the slowed-down versions, though, if they expect people to go to the trouble.
These first ads are fair, but they aren’t interesting enough to sustain the strategy over the long haul.
The End of an Identity Crisis
Audi's new ad slogan, around which it's building its new communications efforts, is "Truth in Engineering." It replaces the decade-old "Never Follow." Associating Audi with engineering is meant to ground the brand as a serious German engineer in the minds of luxury-car buyers.
For decades in Europe, Audi was viewed as the car of a suburban lawyer or banker. It was almost a German Buick. It didn't help that its cars were, and still are, engineered as front-drive cars in a home market that prefers rear-drive Mercedes and BMW cars. But in recent years, the company has enhanced both styling and performance to become a more serious player.
"From a product standpoint, pound for pound, no question Audi can hold its own with Mercedes-Benz, BMW, and Lexus," says Dennis Keene, a branding consultant. "But it has far less social currency among those buyers than the more established brands," Keogh admits. "We have been missing the public prestige."
Audi's focus-group research indicates that hardcore buyers of Mercedes, Lexus, and BMW are interested in Audi. But the brand's lack of identity stands in their way of making a purchase. It also used to be that Audi dealers were among the lowest profile showrooms in their markets. Audi now has 100 exclusive showrooms, up from about 70 five years ago. And quality, also a bugaboo for Audi, has been improving. The brand is now ranked above the industry average by J.D. Power & Assoc., though it still lags industry leader Lexus by a wide margin.
Safety Net
Besides the TT Roadster ads, Audi is also launching a TV campaign for the A4 Sedan, which takes a pot-shot at one of the company's nemesis brands, Lexus. The A4 ad shows a quiet street with a parking space open between two other cars. The A4 rips down the street, and screeches and slides into the parking place. The tagline of the ad—"The luxury car for people who can park themselves"—is meant as a knock against Lexus's parking-assist technology, which several car reviewers have criticized for operating inconsistently. Despite the disclaimer on the A4 ad advising viewers not to try the same stunt, I predict the ad doesn't run for long before driving safety advocacy groups force it off the air.
Ironically, another new spot is all about safety. The ad plays up Audi's top-notch crash ratings from the Insurance Institute for Highway Safety and Audi's well-known Quattro all-wheel drive system, which is in 88% of all Audis sold in the U.S. The ad cleverly shows a series of people talking to the camera about how they're minutes away from being in a serious accident. It's a weird but effective device that underscores the idea that they're going out into the world in an Audi despite knowing they are headed for an accident.
Audi, many will recall, was almost forced from the U.S. market 20 years ago, following published reports that its cars were prone to accelerate out of control. The charges were proven unfounded, but the publicity around the lawsuits and accusations were enough to sink the brand for more than a decade.
The company lost a lot of momentum and traction in the aftermath, just as BMW, Lexus, and Mercedes were gearing up to surge through the 1990s. But Audi looks primed to catch up. This year, it launches the all-new TT Roadster, the R8 Super Roadster, and the A5/S5 Coupe, and it will bring out seven more new models over the next two years. Keogh is under pressure to make sure all these new models get as much traction in the marketplace as AS Audi’s well-known Quattro system.
Is It Now or Never for Audi ?
After years of playing catch-up, the German carmaker unveils a new marketing strategy that it hopes will finally earn it the respect and sales it deserves
by David Kiley
Despite Audi's presence in the U.S. market since the 1960s, it has little brand recognition, consumer awareness, or purchase consideration beyond the "autoscenti" of Car & Driver subscribers and European ex-pats who well know Audi's reputation for tailored luxury cars and sure-footed all-wheel drive.
But fortunes have been changing for Audi. Sales in the U.S. have climbed from a paltry 14,000 in 1995 to 90,100 last year. This year, the company expects to top 100,000. And the German brand, a unit of Volkswagen, has put together a lineup of luxury and performance cars that for the first time can go head-to-head with BMW (BMWG), DaimlerChrysler's (DCX) Mercedes-Benz, and Toyota's (TM) Lexus.
Audi managers are quite sure of the quality of their hardware. And the company, with a feeling that the time to make a move is now or never, is launching a new campaign from its new ad agency with a pretty modest goal. "We have to popularize and energize the brand," says Scott Keogh, chief marketing officer for Audi of America (he joined the company last year following several years at Mercedes-Benz).
Limited Attention
Such a goal sounds either trite or childishly simple, as if Keogh doesn't understand how sophisticated marketing has become. But sometimes the simple answers are correct: Audi just isn't on enough buying lists, and not enough people know Audi or its products. Keogh is betting if the new ad campaign succeeds at making more people curious about the brand, then the actual product will close the sale.
He's up against a problem he recognizes from his days at Mercedes. According to Keogh, most buyers have an attention span that allows for only three brands from each industry. In the luxury-car business, it's Mercedes, BMW, and Lexus. "And everybody else," says Keogh. Having sold a little more than 90,000 vehicles last year, compared with 302,000 for Lexus and 248,000 for Mercedes, Audi isn't likely to crack the top three anytime soon. So, to grow by double digits annually for the next five years, the company's goal is to expand the club to four brands. The way to do that, Keogh says, is by being more clever with a much smaller ad budget than his competitors.
Take TV ads that break May 7 and run for a week, featuring the TT Roadster in spots that only last 0.2 seconds. Huh? The ads run at hyper-speed within a 15-second ad, and are meant to prompt viewers to replay the commercial on their digital video recorders (DVR) at a slower speed. Audi says about 65% of its target audience has a DVR at home. The 0.2 seconds is significant—it's the amount of time required for the TT Roadster to shift from one gear to another. When the ad is played back at the slower speed, a series of images goes by showing that the gear-shifts happen faster than a snakebite or the formation of a raindrop.
Mystery Message
The technique isn't brand-new. Coca-Cola (KO) and General Electric (GE) have also utilized DVR technology to try to get viewers to watch an ad instead of skip over it. The gimmick will be employed throughout the year for some of Audi's other models as well.
If Audi's new ad agency, San Francisco-based Venables Bell & Partners, gets a handle on the DVR technique, it could increase viewership of its client's ads. The idea, says Keogh, is to change the content in the slowed-down version of the ad in order to keep it fresh and to keep people curious about what might be added.
"It's a little of the mystery that people will come to appreciate, like playing the Beatles' 'White Album' backward to hear the message," he says. The agency will have to jazz up the content of the slowed-down versions, though, if they expect people to go to the trouble.
These first ads are fair, but they aren’t interesting enough to sustain the strategy over the long haul.
The End of an Identity Crisis
Audi's new ad slogan, around which it's building its new communications efforts, is "Truth in Engineering." It replaces the decade-old "Never Follow." Associating Audi with engineering is meant to ground the brand as a serious German engineer in the minds of luxury-car buyers.
For decades in Europe, Audi was viewed as the car of a suburban lawyer or banker. It was almost a German Buick. It didn't help that its cars were, and still are, engineered as front-drive cars in a home market that prefers rear-drive Mercedes and BMW cars. But in recent years, the company has enhanced both styling and performance to become a more serious player.
"From a product standpoint, pound for pound, no question Audi can hold its own with Mercedes-Benz, BMW, and Lexus," says Dennis Keene, a branding consultant. "But it has far less social currency among those buyers than the more established brands," Keogh admits. "We have been missing the public prestige."
Audi's focus-group research indicates that hardcore buyers of Mercedes, Lexus, and BMW are interested in Audi. But the brand's lack of identity stands in their way of making a purchase. It also used to be that Audi dealers were among the lowest profile showrooms in their markets. Audi now has 100 exclusive showrooms, up from about 70 five years ago. And quality, also a bugaboo for Audi, has been improving. The brand is now ranked above the industry average by J.D. Power & Assoc., though it still lags industry leader Lexus by a wide margin.
Safety Net
Besides the TT Roadster ads, Audi is also launching a TV campaign for the A4 Sedan, which takes a pot-shot at one of the company's nemesis brands, Lexus. The A4 ad shows a quiet street with a parking space open between two other cars. The A4 rips down the street, and screeches and slides into the parking place. The tagline of the ad—"The luxury car for people who can park themselves"—is meant as a knock against Lexus's parking-assist technology, which several car reviewers have criticized for operating inconsistently. Despite the disclaimer on the A4 ad advising viewers not to try the same stunt, I predict the ad doesn't run for long before driving safety advocacy groups force it off the air.
Ironically, another new spot is all about safety. The ad plays up Audi's top-notch crash ratings from the Insurance Institute for Highway Safety and Audi's well-known Quattro all-wheel drive system, which is in 88% of all Audis sold in the U.S. The ad cleverly shows a series of people talking to the camera about how they're minutes away from being in a serious accident. It's a weird but effective device that underscores the idea that they're going out into the world in an Audi despite knowing they are headed for an accident.
Audi, many will recall, was almost forced from the U.S. market 20 years ago, following published reports that its cars were prone to accelerate out of control. The charges were proven unfounded, but the publicity around the lawsuits and accusations were enough to sink the brand for more than a decade.
The company lost a lot of momentum and traction in the aftermath, just as BMW, Lexus, and Mercedes were gearing up to surge through the 1990s. But Audi looks primed to catch up. This year, it launches the all-new TT Roadster, the R8 Super Roadster, and the A5/S5 Coupe, and it will bring out seven more new models over the next two years. Keogh is under pressure to make sure all these new models get as much traction in the marketplace as AS Audi’s well-known Quattro system.
.
05-09-07, 11:11 AM
#2
I love the look and feel of the Audi cars. They have good power and ride well. You get that good combination of performance and luxury I love. Problem is....reliability. They seem to do well in the beginning. After a few years, you want to kill it. Everyone I've known with one regrets they ever heard the name. That's what keeps me from considering one.
05-09-07, 02:36 PM
#4
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Now or never? It's never, as fas as I'm concerned. I was seriously considering the S8 until the snippy, take-it-or-leave it communications I had with my local dealer. Well, I left it and put a deposit down on an LS600hL. I guess Audi doesn't want my $120K. And they won't likely get me to take another serious look at them for a long, long time.
05-09-07, 02:45 PM
#6
Super Moderator
Audi has a great value for the what you get for the $$$ when new and I agree on resale.
I don't agree on that DVR idea...people won't replay it. They might go to the net to do a search to find out just what idiot made such an ad. Better thing would be to come out with sleek(er) designs, good power and features. Ads don't make or break anything that costs as much as these luxury cars, but it can on the lower end of the spectrum.
I don't agree on that DVR idea...people won't replay it. They might go to the net to do a search to find out just what idiot made such an ad. Better thing would be to come out with sleek(er) designs, good power and features. Ads don't make or break anything that costs as much as these luxury cars, but it can on the lower end of the spectrum.
05-09-07, 02:54 PM
#7
Lexus Fanatic
iTrader: (20)
I love the look and feel of the Audi cars. They have good power and ride well. You get that good combination of performance and luxury I love. Problem is....reliability. They seem to do well in the beginning. After a few years, you want to kill it. Everyone I've known with one regrets they ever heard the name. That's what keeps me from considering one.
Because when you say 'after a few years' that means you're talking about Audis that were sold new a few years (or often many more) ago.
But things DO change. Companies get better (and worse).
We all know, for example, that the Mercedes ML320 was a DISASTER from a quality standpoint at first. And no doubt that hurt Mercedes reputation a LOT. But I don't hear about problems with new ones now.
I'd have ZERO concerns about buying an Audi today.
You never know I might get a vehicle without a hesitating transmission, or creaks in the dash, or wheels that are almost impossible to balance, or alignment that can go off if you breath on it, you know, like Lexus!!!!
I probably would have bought an Audi this last time around but the dealer is too far away.
Anyway, this wasn't to bash Lexus or say Audi is perfect, but brands do change and get better and worse.
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05-09-07, 04:59 PM
#10
No disrespect Reggie, and I believe you, but whenever I see a post like this it makes me chuckle.
Because when you say 'after a few years' that means you're talking about Audis that were sold new a few years (or often many more) ago.
But things DO change. Companies get better (and worse).
We all know, for example, that the Mercedes ML320 was a DISASTER from a quality standpoint at first. And no doubt that hurt Mercedes reputation a LOT. But I don't hear about problems with new ones now.
I'd have ZERO concerns about buying an Audi today.
You never know I might get a vehicle without a hesitating transmission, or creaks in the dash, or wheels that are almost impossible to balance, or alignment that can go off if you breath on it, you know, like Lexus!!!!
I probably would have bought an Audi this last time around but the dealer is too far away.
Anyway, this wasn't to bash Lexus or say Audi is perfect, but brands do change and get better and worse.
Because when you say 'after a few years' that means you're talking about Audis that were sold new a few years (or often many more) ago.
But things DO change. Companies get better (and worse).
We all know, for example, that the Mercedes ML320 was a DISASTER from a quality standpoint at first. And no doubt that hurt Mercedes reputation a LOT. But I don't hear about problems with new ones now.
I'd have ZERO concerns about buying an Audi today.
You never know I might get a vehicle without a hesitating transmission, or creaks in the dash, or wheels that are almost impossible to balance, or alignment that can go off if you breath on it, you know, like Lexus!!!!
I probably would have bought an Audi this last time around but the dealer is too far away.
Anyway, this wasn't to bash Lexus or say Audi is perfect, but brands do change and get better and worse.
To expound more, their cars are a crap shoot. You might get one trouble free. More often than not you'll get one that will be a headache. After a few years, they are all headaches. I don't believe they have changed but I hope so.
Time to visit some Audi forums. Are there any?
05-09-07, 05:13 PM
#11
Super Moderator
In Mexico, Audi holds is town against Mercedes and BMW, you will see an Audi on the road more than a Mercedes and just as much as a BMW. Lexus doesn't exist here...yet.
05-09-07, 08:26 PM
#12
Lexus Fanatic
iTrader: (20)
Well, glad I could tickle your funny bone.
To expound more, their cars are a crap shoot. You might get one trouble free. More often than not you'll get one that will be a headache. After a few years, they are all headaches. I don't believe they have changed but I hope so.
To expound more, their cars are a crap shoot. You might get one trouble free. More often than not you'll get one that will be a headache. After a few years, they are all headaches. I don't believe they have changed but I hope so.
Time to visit some Audi forums. Are there any?
05-09-07, 08:34 PM
#13
Super Moderator
Thread Starter
Audi: Our Gizmos Won't Confuse You
Carmaker Pushes Simplicity in First Effort From Venables Bell
By Jean Halliday
Published: May 07, 2007
DETROIT (AdAge.com) -- Audi wants luxury-car buyers to know its in-car technology enhances driving -- and doesn't complicate it like some gizmos in competitors' models.
In trying to popularize and energize its brand with its first ad campaign from Venables Bell & Partners, San Francisco, Audi of America is taking aim at rivals, though Scott Keogh, Audi's chief marketing officer, said the effort doesn't target a specific competitor. "We have a point of view about technology -- that it complements the driving as opposed to having some electronica doing the driving for you," he said. The new campaign is much more about Audi's "philosophy about how technology should be used in a car."
BMW system too complex
Germany's BMW was broadly criticized for its iDrive system, an eight-way controller **** for 700 functions that rolled out in 2001 on BMW's top-of-the-line 7 Series. The feature was simplified three years ago. The latest S-Class from DaimlerChrysler's Mercedes-Benz is equipped with an adaptive cruise-control system that automatically keeps a specific distance from the vehicle ahead. Mr. Keogh, incidentally, is a former Mercedes marketing manager.
Mr. Keogh said Venables Bell did research with owners of competitors' models, auto bloggers and Audi owners before landing on the new brand ad approach, which carries the tagline "Truth in Technology." Venables Bell won the $70 million account last year.
His aim is to dial up Audi's emotional level. "Truth is emotional," said Mr. Keogh, citing research findings that Americans want to get back to truthful, uncomplicated messages. "We're not false luxury ... we are not old luxury," he said.
The 15-second spots break tonight on national TV and online to launch the second-generation TT roadster and hard-top coupe. The work is part of a broader, umbrella brand campaign that will continue in about a month for the Q7 SUV.
Beefing up online
Since 88% of Audi buyers spent a significant amount of time on audiusa.com before purchase, Audi is spending dramatically more online this year, Mr. Keogh said, though he declined to reveal details. Audi is shooting for a viral pass-around of the online portion of the campaign, handled by Factory Design Labs, Denver. The agency created a microsite for the TT launch, TT-truth.com, and overall ad messages aim to drive traffic there.
The company, a sibling of Volkswagen of America, is outspent by other German luxury rivals.
Audi, which reached record U.S. sales in 2006 with 90,000-plus units, wants to sell even more vehicles this year, said Mr. Keogh. "Audi, it's been said, is a best-kept secret," he said. "We want this campaign to break that secret."
Carmaker Pushes Simplicity in First Effort From Venables Bell
By Jean Halliday
Published: May 07, 2007
DETROIT (AdAge.com) -- Audi wants luxury-car buyers to know its in-car technology enhances driving -- and doesn't complicate it like some gizmos in competitors' models.
In trying to popularize and energize its brand with its first ad campaign from Venables Bell & Partners, San Francisco, Audi of America is taking aim at rivals, though Scott Keogh, Audi's chief marketing officer, said the effort doesn't target a specific competitor. "We have a point of view about technology -- that it complements the driving as opposed to having some electronica doing the driving for you," he said. The new campaign is much more about Audi's "philosophy about how technology should be used in a car."
BMW system too complex
Germany's BMW was broadly criticized for its iDrive system, an eight-way controller **** for 700 functions that rolled out in 2001 on BMW's top-of-the-line 7 Series. The feature was simplified three years ago. The latest S-Class from DaimlerChrysler's Mercedes-Benz is equipped with an adaptive cruise-control system that automatically keeps a specific distance from the vehicle ahead. Mr. Keogh, incidentally, is a former Mercedes marketing manager.
Mr. Keogh said Venables Bell did research with owners of competitors' models, auto bloggers and Audi owners before landing on the new brand ad approach, which carries the tagline "Truth in Technology." Venables Bell won the $70 million account last year.
His aim is to dial up Audi's emotional level. "Truth is emotional," said Mr. Keogh, citing research findings that Americans want to get back to truthful, uncomplicated messages. "We're not false luxury ... we are not old luxury," he said.
The 15-second spots break tonight on national TV and online to launch the second-generation TT roadster and hard-top coupe. The work is part of a broader, umbrella brand campaign that will continue in about a month for the Q7 SUV.
Beefing up online
Since 88% of Audi buyers spent a significant amount of time on audiusa.com before purchase, Audi is spending dramatically more online this year, Mr. Keogh said, though he declined to reveal details. Audi is shooting for a viral pass-around of the online portion of the campaign, handled by Factory Design Labs, Denver. The agency created a microsite for the TT launch, TT-truth.com, and overall ad messages aim to drive traffic there.
The company, a sibling of Volkswagen of America, is outspent by other German luxury rivals.
Audi, which reached record U.S. sales in 2006 with 90,000-plus units, wants to sell even more vehicles this year, said Mr. Keogh. "Audi, it's been said, is a best-kept secret," he said. "We want this campaign to break that secret."
.
05-09-07, 08:36 PM
#14
Pole Position
Really???? ZERO? 
Is this a MOD? LMAO (But that IS a good analogy 
)
Well, on that premise, Bit, would you buy a Chrysler or a Benz or a Ford automobile with zero reservation, since their 2007 cars could be a lot better than their 2005 cars, right? Would you really have no hesitation in taking that chance that they just magically got things right in the last 24-36 months?
I mean, these aren't cars that have had bad ratings just in the last 5 years, most of these manufacturers have historical electrical problems, or transmission problems, or interior issues.
I have rented Audis a few times, one of them being a 2005 S4 Convertible (gotta love Hertz). And it was an excellent rental, loved it! Would I buy it?...probably not, unless I drove it sparingly.
You must have lots of money if you have zero reservations about buying an Audi in 2007 given their history. I've had 3 friends who have owned Audis in the last 10 years, the most recent 4 years ago...and they all were 'one and done'. I'm not taking that risk myself, unless it's half price, or maybe a lease. And even then, I'm going to hesitate.
But that's just me.
Yes, Lexus has their problems for sure, but at least we can buy Toyota parts and use Toyota labor to fix most things...and their reliability rating is pretty high.
Again, are you really a CL MOD?
You never know I might get a vehicle without a hesitating transmission, or creaks in the dash, or wheels that are almost impossible to balance, or alignment that can go off if you breath on it, you know, like Lexus!!!!
(But that IS a good analogy )
I probably would have bought an Audi this last time around but the dealer is too far away.
Anyway, this wasn't to bash Lexus or say Audi is perfect, but brands do change and get better and worse.
Anyway, this wasn't to bash Lexus or say Audi is perfect, but brands do change and get better and worse.
I mean, these aren't cars that have had bad ratings just in the last 5 years, most of these manufacturers have historical electrical problems, or transmission problems, or interior issues.
I have rented Audis a few times, one of them being a 2005 S4 Convertible (gotta love Hertz). And it was an excellent rental, loved it! Would I buy it?...probably not, unless I drove it sparingly.
You must have lots of money if you have zero reservations about buying an Audi in 2007 given their history. I've had 3 friends who have owned Audis in the last 10 years, the most recent 4 years ago...and they all were 'one and done'. I'm not taking that risk myself, unless it's half price, or maybe a lease. And even then, I'm going to hesitate.
But that's just me.
Yes, Lexus has their problems for sure, but at least we can buy Toyota parts and use Toyota labor to fix most things...and their reliability rating is pretty high.
Again, are you really a CL MOD?
Last edited by KevinGS; 05-09-07 at 08:57 PM.
