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Case Study 2: Audi

Scott Payton

Tuesday, 1st July 2008

‘In 2007, Audi increased its brand value by 17 per cent,’ says Rune Gustafson of Interbrand.

Audi is also bolstering the future value of its brand by telling the story of its past. In 1998, the firm launched ‘Audi Tradition’, a division dedicated to promoting the company’s heritage. ‘It’s our job to help people understand the long and unique history of Audi,’ says Thomas Frank, head of the 20-strong Audi Tradition team. ‘Some of our competitors, like Lexus, have no history, but we do.’ It’s Frank’s pleasant job to go to motoring events such as the Goodwood Festival of Speed and the Pebble Beach Tour d’Elegance and show off historic cars from the four companies that came together to form Audi: DKW, Horch, Wanderer and Audi itself.

‘We think that for a premier brand today, like Audi, BMW, Mercedes or Porsche, a major reason for buying a car is its history,’ Frank says. ‘For me, the most important thing is that people have glamour in their eyes when they talk about Audi, and feel the passion in what we are doing.’

Now that Audi has shaken off its sub-prestige image, its challenge is giving its new peers such as BMW and Mercedes a run for their money. ‘The difficulty for Audi is that it is now definitely playing amongst the big boys,’ says Fowler.

Another challenge for the brand is persuading consumers that its cars are not only prestigious and well made, but also green. ‘This is one area where they’ve been caught on the hop,’ Fowler says. ‘Audi doesn’t really have an environmental story. BMW leads the way by a country mile with its efficient dynamics. But I guess that’s what comes from playing catch-up for the past 20 years in every other respect.’