Strategic Marketing Plan For Audi

RUNNING HEAD: CATEGORY EXTENSION
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Executive Summary:
The following report discusses a strategic marketing plan for Audi if they undertake a
product extension project. The chosen product was smartphones. with the reputation of Audi for
its technology t has been identified that Smartphone will be a good choice. The report examines
the internal as well as external condition for the proposed market and recommends a
segmentation and marketing mix strategy.

Table of Contents
Introduction......................................................................................................................................4
Environment analysis.......................................................................................................................5
External environment analysis.....................................................................................................5
Pest Analysis............................................................................................................................6
Internal environment analysis......................................................................................................7
Segmentation...................................................................................................................................7
Positioning...................................................................................................................................8
Targeting......................................................................................................................................9
Marketing mix:................................................................................................................................9
Product:........................................................................................................................................9
Price:..........................................................................................................................................10
Place:..............................................................................................................................................10
Promotion:.................................................................................................................................11
Conclusion:....................................................................................................................................11

Introduction
The category extension or brand extension is the term that refers to the use of an established
name of brand for a new product or a new product category. The extension of brand generally
leverages the reputation as well as the popularity of a well know product for launching a new
product. However, the success of this extension depends on the logical association between the
original product as well as the new item to be launched. An association that is non-existent or
weak can result in brand dilution that will not only harm the new product but will also harm the
parent brand (McDONALD 2016). The successful brand extension will allow a company to
diversify the offerings, boost up profit and increase the market share. The most suitable example
of brand extension that has totally extended in a different product category is the Google, which
is basically a search engine but has extended itself in products like Google Wallets, Tap to pay
etc.
This report will seek to identify a marketing plan for category extension of Audi. Audi
AG is a German Automobile manufacturer who is the designers of luxury vehicles.
Headquartered in Baveria this company has a broad range of luxury vehicles and their owner is
the Volks Wagon group. It has been currently found that this iconic car manufacturer along with
other luxury car companies is facing saturation in their target market since their capacity of range
extension has also been saturated. The iconic sports car manufacturer Zegna has extended its
category in lining up with Polos T- shirts, jerseys etc. A reputable and fashionable brand like
Audi may extend its product category by launching Smartphones. The design and technology
chops used by Audi are recognised as the core elements of the brand, which can also make a
pretty decent phone. Moreover, the smart phone industry is an ever-evolving one and is steadily
gaining mainstream popularity.