After a disastrous yr by way of gross sales (1,693) in 2020, Audi India grew 100% in 2021 to promote 3,293 items. However, this was nonetheless decrease than its numbers from 2019 (4,594) and 2018 (6,463).
Campaign India caught up with Gaurav Sinha, head of promoting and PR, Audi India, to learn the way the German auto producer is taking a look at totally different strategies of promoting (together with a special tackle influencer advertising and marketing) and electrical autos to attain progress.
Edited excerpts:
Since the pandemic hit two years in the past, how has Audi India altered its advertising and marketing? Are you extra targeted on digital now?
When the pandemic began, it got here as a shock not solely to people however to the whole advertising and marketing ecosystem.
Fortunately, roughly 9 months earlier than the pandemic broke, we had gone aggressive on digital. We had began with AR and VR options. We had additionally launched our app by which we had been engaged on direct join programmes with the customers.
The pandemic expedited the change throughout India for us. While these digital initiatives had been occurring in round six cities, the pandemic meant we had to do that throughout the 30 cities we had been current in.
A yr later we realised there was pandemic fatigue. We noticed there was a rising urge for food for personalised experiences. We stored in thoughts all the security parameters and social distancing and created smaller occasions with participant numbers as little as 20 individuals. Those turned fairly widespread and the response and expectations of customers to these occasions are a lot better than how we thought them out to be. That’s the change in buyer behaviour we see put up the pandemic as effectively prospects need extra personalised and customised experiences.
When we speak about digital, it is now not nearly show or a easy on-line video. We want to make use of dynamic inventive optimisation. In the luxurious phase, it is crucial for the concepts which you stand for, and never simply the life-style that you stand for. Often individuals make the error that the patron is in search of solely aesthetics. I all the time say the patron is additionally in search of ethics and so it’s crucial what the brand stands for.
Digital versus conventional – what’s the break up now by way of advertising and marketing spends?
Pre-pandemic, our digital spends had been rising 15-20% YOY. Since the pandemic hit us, that has modified. When it first hit, digital contributed to nearly 100% of our advertising and marketing spends.
And now, with issues opening up, digital is nonetheless main by way of our general funding on platforms.
Where we’re more and more spending is on experiential and influencer advertising and marketing.
Unlike another manufacturers, influencer advertising and marketing is a novel alternative for us, just because the standard buyer and influencer see an overlap.
For different manufacturers, influencers are only a technique of communication, however for us, it’s the shopper.
Almost all of our current influencer advertising and marketing campaigns consist of shoppers or turned prospects put up our affiliation. For us, influencer advertising and marketing is not the standard definition of influencer advertising and marketing the place we’re utilizing them only for attain. As they’re already prospects, it’s a manifestation of who is an Audi buyer.
So would all of your influencers be prospects or do you have pure influencers additionally appointed for brand campaigns?
In current instances, we have now had prospects as influencers. We usually are not going out to conventional Instagram or YouTube influencers.
How do you get your prospects to put up about their automobiles on social media? Not everybody could be more likely to do so?
Invariably our shopper is shopping for the automotive, not as a useful want however to rejoice success. It’s a common standing in society and it’s an announcement you make to the neighborhood.
Keeping that in thoughts, we’re seeing that persons are more than pleased to speak about their purchases. We don’t have to incentivise them to speak about it. Having stated all of this, sure persons are very cognizant of the worth their phrase holds on social media or public platforms, and there we have now to nudge them to speak. That is the place the advertising and marketing facet is available in and we encourage them to be somewhat extra vocal concerning the purchases they’ve made of their personal life.
Does that imply the standard brand ambassador doesn’t exist anymore for Audi?
No, I wouldn’t say that. We name our ambassadors ‘Friends of Audi’. A brand ambassador tag places numerous weight on the shoulder of the person. I believe ‘Friends of Audi’ makes it somewhat extra palatable.
The ambassadorial function in a conventional kind is one thing that most manufacturers are additionally transferring away from. We have many ‘Friends of Audi’ however within the conventional sense of the phrase as a brand ambassador, we’d have just one, and that is Virat Kohli.
Does that additionally put much less stress on you? We are seeing cases the place celebs get themselves in scorching water and that goes on to harm brand associations too?
To be sincere that’s not the explanation we have now the ‘Friends of Audi’ technique. That threat is all the time there when you take care of individuals in any stroll of life. It can occur with a fellow worker or any of us who are in a small manner within the public eye.
I may write a Tweet that may have an effect on us. I’m not for a minute attempting to say that I’ve that attain, however individuals know I’m related to the brand and something I say may find yourself changing into a problem.
But I do not suppose you make these choices (brand ambassador appointments), retaining these adverse ideas in my thoughts. You have a look at how an affiliation could be a bonus and what advantages you get.
I believe manufacturers are transferring away from ambassadors as a result of the aspirational degree and the way in which we talk is altering.
Earlier, one of many key causes for having a brand ambassador was that they would supply you with the attain, recall, and break the litter. Now, the brand ambassador space is so cluttered that you are likely to forget who is endorsing what.
The final huge launch for Audi was the Q7. How was this launch marketed?
The Q7 is a really fascinating product for us. In India, we’re historically recognized to be very sturdy within the SUV phase. The Q7 is the flagship of SUVs.
The Q7 nameplate made Audi synonymous with celebrities, achievers and industrialists. Not so way back, nearly all people was ‘papped’ in a Q7. So, it’s a automotive individuals understood even with out the Audi reference. The new mannequin gave us an enormous alternative to achieve out to this TG. We had an fascinating combine for the launch. We needed to see how the pandemic was going earlier than the launch.
While digital was a giant a part of the advertising and marketing combine, we used different media akin to out-of-home round airports as air journey elevated.
We additionally checked out direct communication which is conventional WhatsApp communication. Other efforts included showroom walk-ins with micro-events being organised. We checked out show occasions and sponsorships too. We sponsored small and focused occasions the place the brand could be showcased.
There’s no TV or print concerned in any respect?
No, for the Q7 marketing campaign particularly these two mediums weren’t chosen.
How does Audi India view TV and print?
We have a TV marketing campaign developing for the e-tron.
Digital will in the end overtake general TV spends by the top of 2023 or 2024, however we imagine firmly within the latter as effectively.
TV gives us with a novel alternative of not solely showcasing nice design language but additionally narrating a narrative to emotionalise the brand.
Further, the definition of tv is altering and evolving. There is numerous appointment viewing occurring throughout information and sports activities, however there is additionally the return of leisure viewing. There is an OTT fatigue setting in. OTT peaked throughout the pandemic, however now I’m additionally seeing lots of people not eager to make the selection of content material they need to watch and as an alternative surf tv channels. It’s not a giant development, however I can see that the expansion of massive OTT gamers is slowing down.
TV would contribute round 20-25% of our general advertising and marketing spends and could be ranked second, behind digital.
Audi is one of many luxurious automotive makers that have guess huge on EVs with 5 automobiles within the space. How a lot would EVs contribute to your gross sales?
Lots of people state that electrical automobiles are the longer term. We say electrical autos are the present. Audi’s the one carmaker in India, which at present gives 5 electrical automobiles.
We have betted closely on EVs and our head Balbir Singh Dhillon has gone on report and stated that we count on 15% of our gross sales to return from them by 2025.
Globally, our chairman acknowledged that after 2026, any new mannequin that launches will solely be electrical.
Our portfolio on electrical is sturdy however the gross sales could be nascent proper now, just because we’re working within the super-premium luxurious phase. The e-tron was a grand success and we misinterpret the market and projected for decrease demand numbers. So, we couldn’t meet the demand once we launched.
That battle continues with the semiconductor drawback additionally occurring now. This is impacting our general enterprise with a extra pronounced impact on our EV vary. For us, the marketing campaign and advertising and marketing difficulty is about constructing consciousness about EVs. It’s not the selection for the longer term, it’s in entrance of our eyes.
But the pricing does level in the direction of it being a future development, with a giant distinction between EVs and ICE autos?
Pricing will dictate phrases, however I need to give the instance of the Apple MacBook or the sooner Apple computer systems. They had been prohibitively costly. The recreation was to showcase the expertise and get individuals into the probabilities. Once individuals see the expertise EVs use, the change can be expedited as a result of the ecosystem will work in the direction of it.
The gross sales figures of EVs within the final two years are shocking, as seen with Tata.
The change will occur proper earlier than our eyes earlier than we may even realise it. It is not going to be dictated by charging infrastructure, it is going to be a results of private adaptability to the brand new expertise.
When was the final time due to the Government did any change get expedited in India? The economic system is people-driven and the Government allows the change. If the Government modifications the obligation construction, sure, adaptation in luxurious could be sooner.
But then, simply because one thing is inexpensive, individuals would possibly nonetheless reject it, if they do not imagine in it.
Right now EVs could be on the tip of the iceberg. If you see all of the mass automotive makers, everybody has exhibited their intentions on this route.
The key for us in advertising and marketing is twofold – one is constructing brand drivers across the electrical picture of Audi and the second is dispelling misinformation and a few of the doubts about which prospects have electrical autos.
We have labored extensively in what we name the shopper training train. We created numerous direct communication belongings and applications to provide assurance to the customers.
In phrases of gross sales, you offered nearly double what you did in 2020 however nonetheless fell wanting 2018 and earlier than. What are the expectations from 2022?
Numbers are dictated by product availability. Lots of people equate numbers with pure gross sales by way of buyer acceptability.
This yr we began very sturdy with the Q7. We launched the Q5 in December and ended the yr sturdy. We are already speaking about a few extra new merchandise popping out within the subsequent few months. So, we count on the yr to be constructive by way of gross sales numbers. I wouldn’t be capable of touch upon actual numbers, merely due to the availability scenario.
You additionally appointed a retail communication company final yr. What was the concept behind that?
The thought is to sharpen the concentrate on what we’re doing on the retail degree. We have 60-plus touchpoints at round 33-34 areas.
Sometimes what occurs is that when you have a macro focus, a few of the final mile connectivity by way of brand and advertising and marketing footprints will get misplaced. So, to sharpen it and take a devoted method there we obtained in L&Ok Saatchi & Saatchi. We thought that we wanted a separate associate to concentrate on retail.
But the showrooms work independently, so wouldn’t it be tough to attain the devoted method?
We have a peer-to-peer relationship with them. We have a central brand theme that will get adopted.
Finally, what could be three huge advertising and marketing challenges for you?
We have to proceed to create engagement with the shopper as a result of the accessibility of knowledge and the consumption of communication is so heightened proper now for the common shopper. The problem for a brand like us is to interrupt the litter and create engagement. We do not have spends to match FMCG and even the fantasy sports activities gamers. Yes, we’re not current in these classes however have to interrupt the litter and nonetheless create engagement.
Secondly, we get clubbed as a German luxurious brand. We have to get our distinct identification.
Thirdly, we have now to maintain understanding what is occurring with media consumption behaviours. We should intently watch how media is evolving. Digital is not a stream, it’s the mainstream and the remainder of the mediums are evolving round it.
https://www.campaignindia.in/article/the-brand-ambassador-space-is-so-cluttered-that-you-forget-who-is-endorsing-what/476620
