Agency: BBH London
Country: United Kingdom
Audi had experienced remarkable growth since the 2000s, moving from third place in premium car market sales (with half the sales of the leader BMW) to first place at the end of 2014.1
Despite this growth there were three challenges:
1. The overall market was slowing
In 2015, total market growth had halved in just two years (Chart 1). We needed to prepare for a future where value would have to come from other places than just volume.
Chart 1: The slowing growth of the car market, as seen from 20152
2. Audi lagged competitors on average selling price
Audi had a disproportionate amount of sales coming from the smaller- and lower-specification cars in its portfolio, versus the larger, higher-specification cars3 and lagged competitors on the metric of 'brand worth'.4 BMW, Mercedes, Range Rover and Jaguar were considered worth more and sold for more.