AME. Campaign Brief. Audi Brand Initiative

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1 AME 2010 Campaign Brief Audi Brand Initiative

2 22. October 2010 Campaign Identity Title of Entry Brand Name Product Campaign Start Date Campaign End Date Advertiser Target Audience Credits Agencies Audi Brand Initiative Audi Multi Product Campaign 01/01/09 31/12/09 Audi AG Multiple Target Groups kempertrautmann, Heimat, Draft FCB, neue digitale/razorfish 2

3 2009 Audi Brand Initiative Executive Summary marked Audi s 100th anniversary. But it was also a year characterized by a major global economic crisis. The economic downturn hit premium automotive brands particularly hard. To celebrate its centenary and reinforce its leading position in the market, Audi set out to defy the crisis with an unprecedented and comprehensive display of brand power. The Audi Brand Initiative was divided into four parts to reflect the key elements that have shaped and defined the brand over its first 100 years: technology, motorsports, new product launches and an anniversary special. The all-out Brand Initiative produced impressive results both economically and creatively: Leader in all major German image rankings / pg. 33 Leader in brand sympathy and advertising appeal / pg. 35 Only premium automotive brand with increased market share among core competitors / pg. 37 New leader in the mid-range segment, the segment that defines the market / pg. 38 More efficient advertising expenditure than either of its core competitors / pg. 39 Engaging online special with very high session durations / pg. 40 Three TVCs in the top 25 TV campaigns of the year (The Big Won 2009) 3

4 Communication Overview Audi Brand Initiative. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov Dec. quattro ASF TDI / TFSI Technology Print Campaign: Urban Carver Print Campaign: Maximum Audi Audi R8 5.2 FSI quatrro Print Campaign: Efficiency 2009 TVC: Urban Carver Print Campaign Feels the road Audi A4 allroad TVC: Maranello Audi R8 5.2 FSI quatrro TVC: Intelligently Combined Motorsports Print Campaign: Heat DTM Audi A4 Print Campaign: Heat Audi R15 Anniversary Product Launch Print Campaign: Perfectly synchronised Audi Q5 TVC: More intense Audi A5 Convertible Print Campaign: The power of pure design Audi A5 Sportback 7th of April 2010: 100 years of Audi Launch Online Special 16th of July years of Audi Birthday Print Campaign: 100 years of Audi Audi s integrated communication campaign: technology, motorsports, product launch and anniversary strategies were all perfectly coordinated with one another and their implementation and media planned with specific target groups in mind. 4

5 The Situation Anniversary Crisis, 2009 Opportunity 5

6 2009 Hard Times for Premium Automotive Brands was a very special year for Audi, marking the brand s 100th anniversary. Germany had been hit hard by the financial crisis: the government expected Germany to experience the biggest drop in economic output since the end of the Second World War and the worst recession in the history of car-making. The German government sought to stimulate the economy through a range of measures including a scrappage scheme. * The scheme proved highly popular with consumers, injecting 5 billion into the automotive industry. The program proved good for the industry as a whole, but not so good for Audi: The main beneficiaries were manufacturers of compact cars. Very few mid-range and luxury vehicles were purchased as a result of the scrappage scheme, giving the high-volume manufacturers a clear competitive advantage. *The so-called environmental premium was voted in by the German federal cabinet. It awarded car owners a premium of 2,500 when they scrapped an old car that was at least nine years old and purchased a new one less than a year old. 6

7 The Reaction An Answer toadversity 7

8 Progress Powered by Optimism. Over the past 100 years of Audi, there have been many occasions that have set pulses racing. It s been a period defined by passion, commitment and an unshakable belief in the power of technology. Inspired by the key innovations of the company s 100 years of success, groundbreaking moments were showcased in 2009 that will fire the imagination of the target group both today and in the future. The ambitious goal was for Audi to emerge from this extremely difficult situation strengthened, in spite of all the negative forecasts, and for it to celebrate the Audi brand s anniversary in a befitting way. 8

9 Planning the Brand Initiative. Every product and every Audi theme were drawn on as a brand impulse in 2009 and incorporated into the 100 Years Vorsprung durch Technik concept. The extensive umbrella communication campaign comprised all four core technology ads the leading all-wheel quattro technology, the innovative, lightweight Audi Space Frame ASF and the powerful, efficient TDI and TSFI engines not to mention communication from product launches in the mid-range segment and the brand s motorsport activities. 9

10 The Basic Idea. To formulate and implement the most coherent and all-embracing umbrella campaign in Audi s history. To incorporate the key technological advances from Audi s 100-year history into an umbrella communication campaign consisting of four individual strategies. Technology Motorsports Product Launch Anniversary 10

11 The Goals high aim Leaders 11

12 Becoming the No. 1 Premium Automotive Brand. Audi has been consistent in its marketing campaigns for years with the aim of overtaking Mercedes Benz and BMW over the mid to long term and becoming the leading premium car brand. Despite unfavorable conditions resulting from the economic downturn, the communication during the anniversary year needed to set another important Audi milestone that will allow the company to emerge from the recession in a stronger position. 12

13 The Campaign Goals. Goal One // Image Leadership. Pole position in terms of its overall image, as proof of the brand promise, Vorsprung durch Technik. Pole position in the brand values of sophisticated, sporty and progressive. Pole position in terms of brand appeal. Goal Two // Sales Leadership. Stabilization of declining sales figures with 230,000 new registrations. Increase of the relative market share in comparison with BMW and Mercedes Benz. Brand leadership in the key mid-range segment in terms of sales volume. Goal Three // More Efficient Use of Advertising Expenditure. Achievement of market shares comparable to those in 2008 with slightly reduced spending ( 10%). Goal Four // Successful Online Integration of the 100 Years of Audi Theme. Effective online integration of the 100 Years of Audi theme. High traffic on the 100 Years of Audi online brand experience platform. 13

14 The Campaign Comprehensive Brand Representation 14

15 Media Strategy Defying the Crisis. The brand strategy was designed to further consolidate Audi s market leadership in spite of the difficult economic climate. It was therefore decided to closely model the marketing approach on that of the previous year in order to ensure that the content of each individual communication strategy was conveyed in a way consistent with what had gone before. (slightly reduced spendings by approx. 10%) 15

16 Media Strategy Cross-Channel Momentum Building. Each individual promotion focused on a clearly defined target group, while simultaneously being linked to the overall brand theme, 100 Years Vorsprung durch Technik. A wide range of carefully selected media supported the brand strategy s overall goals. Hence billboards were used for the individual promotions in order to ensure good street visibility in urban areas. TV and online TV elements were used extensively to emotively portray Audi s eventful history, while ads in selected consumer and trade magazines emphasized the brand s credentials in terms of quality. The element that joined all the individual promotions was the Internet, in particular the 100 Years of Audi online special, which acted as an up-to-date, multifaceted information medium. 16

17 Customized Campaign Implementation. Implementing the individual campaign elements was a major challenge. Each one had to be considered in detail for us to be able to fully achieve its constituent goals for example, the Motorsports theme required a completely different approach to the launch of the Audi A5. However, the aim was to strengthen the brand as a whole a goal that required a uniform style of communication that was truly unmistakable. 17

18 Unconditional Commitment to the Brand Promise. Vorsprung durch Technik. 18

19 The Four Elements of the Audi Brand Initiative. Technology Motorsports Productlaunch Anniversary 19

20 Element One // Technology. The quattro communication kicked off the technological and visual aspect with the launch of the new quattro system with sport differential, followed by the launch of the Audi A4 allroad quattro. Both campaigns focused on the system s cutting-edge technology: The Urban Carver campaign featured the breathtaking shot of a skier on asphalt in order to emphasize increased driving pleasure. On the other hand, the Feels the Road campaign for the Audi A4 allroad quattro highlighted the car s increased directional stability. Audi s most powerful and possibly most prominent core technology, the Audi Space Frame ASF, launched the Audi R8 5.2 FSI quattro into the world of motorsports. With Maximum Audi, the Audi R8 5.2 FSI quattro positioned itself as the ultimate lightweight sports car on the market. The third phase of the technology strategy comprised measures for the brand s efficient TDI and TFSI engines, culminating in a comprehensive efficiency campaign with a focus on technology. 20

21 TVC: Urban Carver // Technology. quattro 21

22 TVC: Maranello // Technology. ASF 22

23 TVC: Intelligently Combined // Technology. TDI / TFSI 23

24 Element Two // Motorsports. Sportiness is one of the main components responsible for the success of the Audi brand and is the result a proud heritage of more than 25 successful years in motorsports. Time and again, AUDI AG s motorsport successes have been linked to pioneering developments that were later integrated into mass production, which is one of the reasons why a large-scale communication strategy in a sporty, aggressive heat look was run during the 2009 racing season. 24

25 Print Ad: Heat // Motorsports. 25

26 Element Three // Product Launch. The Audi Q5 and Audi A5 Cabriolet were advertised in the spring and the new Audi A5 Sportback in the fall to support the brand s key mid-range segment. All three campaigns imbue the emotionally charged car concepts with the technological spirit of the brand. 26

27 Print Ad: The Power of Pure Design 27

28 Element Four // Anniversary. The brand strategy communication activities before and after the anniversary celebration all shared a single common denominator in terms of the overall brand image the 100 Years of Audi anniversary campaign. With the Auto Union Type C Streamline, Audi Sport quattro S1 and the new R8 5.2 FSI quattro, along with innovations such as TDI, FSI, ASF and quattro, Audi s anniversary campaign demonstrated the company s One Hundred Years of Innovative Thinking or 100 Years of Vorsprung durch Technik. An international online special with a large-scale sweepstakes and further stand-alone anniversary promotions accompanied the festivities in the three months leading up to the anniversary. 28

29 Print Ad: 100 Years of Audi 29

30 Communication Overview Audi Brand Initiative. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov Dec. quattro ASF TDI / TFSI Technology Print Campaign: Urban Carver Print Campaign: Maximum Audi Audi R8 5.2 FSI quatrro Print Campaign: Efficiency 2009 TVC: Urban Carver Print Campaign Feels the road Audi A4 allroad TVC: Maranello Audi R8 5.2 FSI quatrro TVC: Intelligently Combined Motorsports Print Campaign: Heat DTM Audi A4 Print Campaign: Heat Audi R15 Anniversary Product Launch Print Campaign: Perfectly synchronised Audi Q5 TVC: More intense Audi A5 Convertible Print Campaign: The power of pure design Audi A5 Sportback 7th of April 2010: 100 years of Audi Launch Online Special 16th of July years of Audi Birthday Print Campaign: 100 years of Audi Audi s integrated communication campaign: technology, motorsports, product launch and anniversary strategies were all perfectly coordinated with one another and their implementation and media planned with specific target groups in mind. 30

31 Campaign Cornerstones Overview. Campaign Purpose. New product launch. Multi-segment chain-value marketing. Campaign Scope. The ATL campaign elements (print, TV, billboards) were developed exclusively for the German market. The international element that linked all the individual promotions was the Internet, with the 100 Years of Audi online special acting as an up-to-date, multifaceted information medium and the focus of the campaign. Campaign Audience. Covering multiple target groups requires a wide range of themes in the brand- and product strategy. These target groups vary widely in terms of demographics, depending on the vehicle segment in question. However, they are all similar in terms of psychographics: Audi drivers are extremely well represented in modern milieus (according to SIGMA). The typical Audi driver is therefore confident, open-minded, ambitious and forward-looking. They see themselves as adventurous with a desire to try new things. In addition to exceptional quality and design, they set value everything that Audi s legendary Vorsprung durch Technik stands for. Cost of Campaign. over 25 million USD. 31

32 The Results of Proof Progress 32

33 Result One // The Clear Leader in All Major Image Rankings. With the consistent communication of its brand assets and ability to precisely address all its target groups, Audi s overall image took a comfortable lead in all the key German rankings, an impressive affirmation of its brand promise, Vorsprung durch Technik. Figure 1: Audi Leads All Major German Image Rankings. 50.0% 37.5% 40.3% 36.3% 34.9% Mark: 1.48 Mark: 2.06 Mark: Points: 90 Points: 88 Points: % % 25 Audi BMW 0% 1st Place 2nd Place 3rd Place 1st Place 2nd Place 3rd Place 1st Place 2nd Place 3rd Place Mercedes Benz Image-Report 2009 AUTO ZEITUNG ADAC-Brand Study 2009 Best Cars 2010 auto motor und sport Source: Image-Report 2009, AUTO ZEITUNG, surveyed readers, ADAC Brand Study, AutoMarxX/Eco Test 2009, Best Cars 2010 auto motor und sport, more than surveyed readers. 33

34 Result One // The Clear Leader in All Major Image Rankings. Audi has also been able to pull ahead of its competitors in terms of its brand values sophisticated, sporty and progressive proving that the communication has had a real impact. Figure 2: Audi Leads in All Brand Value Dimensions. 70.0% 52.5% 35.0% Sophisticated Sporty Progressive 63.8% 58.7% 53.5% 51.0% 49.5% 48.8% 54.3% 47.0% 39.9% 17.5% 0% 1st Place 2nd Place 3rd Place 1st Place 2nd Place 4th Place 1st Place 2nd Place 3rd Place Audi BMW Mercedes Benz Which brand produces well built cars? Which brand is successful in motorsports? Which brand builds modern cars? Source: Image-Report 2009, AUTO ZEITUNG, surveyed readers. 34

35 Result One // The Clear Leader in All Major Image Rankings. That the communication struck a real chord with the target groups is underscored by the campaign s top scores in terms of brand and advertising appeal. Figure 3: Audi Leads in Brand-Sympathy and Advertising Appeal. 50.0% 37.5% 40.3% Sympathy 32.2% 36.6% Advertising 25.0% 23.2% 27.5% 26.0% 12.5% 0% Audi BMW Mercedes Benz 1st Place 2nd Place 4th Place Which brand is likeable? 1st Place 3rd Place 4th Place Which brand makes good commercials? Source: Image-Report 2009, AUTO ZEITUNG, surveyed readers. 35

36 Result Two // Audi Speeds Up and Gains Competitor Market Share. Despite unfavourable market conditions, Audi has been able to keep its vehicle sales at a rather constant level, and even managed to slightly exceed its target of selling a minimum of 230,000 vehicles. Over the same period, BMW and Mercedes Benz witnessed two-figure percentage drops in their sales, with BMW being relegated to third place. Figure 4: Audi Has Most Stable Sales Volumes (Total New Registrations) % -11.6% % Audi BMW Mercedes Benz Audi BMW Mercedes Benz Source: AUDI AG. 36

37 Result Two // Audi Speeds Up and Gains Competitor Market Share. Audi has successfully gained in market share at the expense of its competitors. Whereas BMW s market share has fallen by 0.29% in the premium segment, Audi has been able to increase its market share by 1.23% to 28.37%. BMW has been relegated to third place (27.07% market share). Mercedes Benz has lost 1.27% to give it a total market share of 34.12%, putting it well within reach. Image 5: Shift of Market Share in the German Premium Automotive Market* % 1.23% 0% -0.29% -1.27% Audi BMW -3% Mercedes Benz Audi BMW Mercedes Benz Source: AUDI AG, * The following brands make up the premium market: Audi, BMW, Mercedes Benz, Mini, Porsche, Volvo, Saab, Land Rover, Jaguar, Lexus, Infiniti. 37

38 Result Two // Audi Speeds Up and Gains Competitor Market Share. In Germany, the mid-range segment represents the most important segment for the German premium marques, accounting for more than 50% of their overall sales. In 2009, Audi was able to successfully establish itself as the market leader in this segment, knocking Mercedes Benz off the top position. Figure 6: Audi Becomes the Market Leader in the Market for Mid-Range Cars (New Registrations). Audi % BMW -16% Mercedes Benz -18% Audi BMW Mercedes Benz 2nd Place 3rd Place 1st Place 1st Place 3rd Place 2nd Place Source: AUDI AG. 38

39 Result Three // Most Efficient Use of Marketing Expenditure. In spite of a slight reduction in its marketing expenditure, Audi was nevertheless able to increase its market share by 1.23% at the expense of its competitors. Although its core competitor, BMW, increased its marketing expenditure by a massive 39% to 75.7 million, Audi has nonetheless successfully beaten it into third position. Figure 7: Marketing Expenditure in Absolute Terms (EUR) Audi BMW Mercedes Benz Audi BMW Mercedes Benz Source: Thomson Media Control. 39

users and 181,500 visitors by the end of the first month. With an average of 34 page views per visitor and an average session duration of 12.

40 Result Four // An Engaging Anniversary Online Special. The 100 Years of Audi online special went live on April 7, 2009 and proved extremely popular, having already clocked up 71,500 registered users and 181,500 visitors by the end of the first month. With an average of 34 page views per visitor and an average session duration of 12.3 minutes, the online special achieved above-average scores in terms of both page depth and engagement time. Furthermore, the accompanying anniversary sweepstakes also received 140,000 entries. Source: neue digitale/razorfish. 40

41 The Outlook lead xtending the 41

42 An Initiative with Impact. The communication strategy during the anniversary year has had a lasting effect on the brand. In 2010 Audi is well on course for success in nearly every region of the world displaying excellent sales performance in all major markets. In the first 8 months of 2010 Audi has sold new vehicles worldwide an increase of 18% ( units) compared to At billion, sales revenue* was up by 20,9% on the previous year. Operating profit even increased by 61.6% to billion. Source: AUDI AG, *Audi Mid-Year Financial Report 2010, January 1st - June 30th. 42

Third Quarter Report January 1 to September 30, 2008

Third Quarter Report January 1 to September 30, 2008 Third Quarter Report 2008 January 1 to September 30, 2008 Page 2 Third Quarter Report 2008 Audi Group maintains successful course in the third quarter Economic development The global economy saw its growth