In an effort to lower the cost of everyday necessities for the average person, the Modi administration has redesigned the Goods and Services Tax (GST) system. The GST Council authorised a two-tier rate structure of 5 and 18%, which will go into effect on September 22 as part of this significant change, lowering the tax rates on the majority of necessities.
The goal of the move was to reduce the price of commonplace goods like toothpaste, soap, and biscuits. According to a report by moneycontrol.com, consumer product producers have informed tax authorities that this will not directly result in a decrease in the cost of common small packs, such as INR 20 toothpaste sachets, INR 10 soap bars, or INR 5 biscuit packets.
Speaking further on the development, Yashmit Gala, CEO, Galaji Spices stated, “The concern raised by FMCG players about not being able to reduce MRPs on low-value packs after the GST rate cut is very real. In categories like food staples and spices, the pricing of smaller SKUs is often already compressed to the last rupee to remain attractive in rural and value-driven markets. When you factor in packaging, logistics, and retailer margins, there is hardly any room left to adjust MRPs further without eroding viability. Consumers may expect a visible drop in prices, but in practice, it is operationally difficult to rework pack sizes or price points in such a short window. Instead, the benefits of GST reduction are more likely to reflect in supply chain efficiencies, improved trade margins, and promotional offers rather than a direct cut in printed MRPs of small packs.”
Why Sudden Price Change Can’t be Implemented?
Indian consumers are very accustomed to these typical price points, according to the media report. Customers may become confused and have their basic purchasing patterns disturbed if the price is lowered to odd figures like INR 9 or INR 18 rather than neat INR 10 or INR 20. Typically, packs of INR 5, 10, or 20 are impulsive purchases that are frequently made without much consideration.
Unexpected price changes may cause confusion or reduce sales. By expanding the number of products in the pack while maintaining the same price, businesses are passing on the GST benefit rather than lowering prices. For instance, extra biscuits may now be included in a pack of biscuits priced at INR 20.
What This Means for Consumers’ Daily Purchases?
Practically speaking, consumers won’t notice significant drops in the sticker price of minor necessities. Instead, consumers will discover that some extra biscuits, soap, or toothpaste are now included in the same INR 5, 10, or 20 packets.
This plan maintains known pricing practices while guaranteeing that customers profit from the tax savings. Given customer behaviour patterns and the logistical difficulties associated with shifting price points for mass-market goods, industry analysts think this strategy makes sense.
A larger initiative to streamline India’s indirect tax structure and lower consumer costs included the reduction of GST rates and the removal of several tax bands. The increase in product supply at the same price point helps consumers obtain better value for their money, even though the benefit might not be immediately apparent in reduced MRPs.
Quick
Shots
•Everyday items like toothpaste, soap, and biscuits
expected to become cheaper.
•Companies told tax authorities that MRPs on
low-value packs (INR 5, 10, 20) cannot be reduced.
•Price points like INR 5/10/20 are deeply ingrained
in buying behavior; odd pricing may confuse consumers and hurt sales.
•Instead of lowering MRPs, firms are increasing
product quantity (e.g., more biscuits in the same INR 20 pack).
•No major change in sticker prices; consumers get
better value for money at the same familiar price points.
•Maintaining price points is strategic for
mass-market sales and avoids disruption of impulse buying patterns.
Audi is a German car company that designs, engineers, manufactures, markets, and distributes luxury vehicles. It is a member of the Volkswagen Group and has its roots in Ingolstadt, Bavaria, Germany. Audi-branded vehicles are produced in nine production facilities worldwide. The origins of the name Audi are uncertain, but one theory is that it is derived from the Latin translation of “hark!” or “listen.”
The company’s history is complicated, beginning in the early twentieth century and the founding firms (Horch and the Audiwerke) formed by engineer August Horch (1868-1951), as well as two additional manufacturers (DKW and Wanderer), which led to the establishment of Auto Union in 1932. The contemporary Audi period began in the 1960s when Volkswagen purchased Auto Union from Daimler-Benz. [9] Following the reintroduction of the Audi brand in 1965 with the release of the Audi F103 series, Volkswagen combined Auto Union with NSU Motorenwerke in 1969, resulting in the current shape of the corporation.
Globally, the Volkswagen Group, which includes Audi, remained the second-largest automaker in 2024, selling approximately 9.03 million vehicles, with Audi contributing around 1.67 million units. As of 2024, Audi delivered approximately 1.67 million vehicles globally, marking a 12% decline from its 2023 figure after selling about 1.9 million units. In the United States, Audi sold 196,576 units during 2024, down 14% from the previous year, reflecting its continued position as a top-10 premium brand in the U.S.
Audi’s history can be traced back to 1899 when August Horch founded the company A, Horch & Cie in Cologne, Germany. His first car was the Audi Type A 10/22 hp (15 kW) sports car, which he produced from 1901 to 1904. In 1909, Horch was forced out of the company he had founded, and he started a new firm to build cars under his own name. The first car from Horch to bear the Audi name was the Audi Type B 10/28 hp (13 kW) model, produced from 1910 to 1913.
The automobile industry is experiencing a fundamental shift, but it is also going through a difficult period. Aside from increased rivalry, demographic shifts, and innovative technical innovation, coronavirus has made the drive difficult for automotive businesses. Despite these hurdles, the automobile industry is preparing to enter a new age of sustainable transportation. Audi has also devised a strategy to develop toward sustainable mobility and gradually expand its fleet of environmentally friendly vehicles. It is also one of the best-selling premium automobile brands in various key regions, including China. In August 2018, Audi announced a new all-electric vehicle, the Audi e-Tron SUV.
Audi’s target market is the wealthy class of modern city consumers. Audi’s customers are highly qualified, tech-savvy, and contemporary individuals who value style and quality as well as performance and rider safety. Audi manufactures luxury vehicles aimed at the upper end of the market. Its vehicles are well-liked by both male and female riders. The business has created a good lineup of vehicles aimed at tech-savvy millennial buyers.
Audi Target Audience
Audi has positioned itself as a luxury vehicle for affluent urban users. Its goods have a distinct premium feel that appeals to current consumers who value performance combined with design and quality. Its special appeal stems from a combination of product design, quality, and innovation. Audi provides a distinct riding experience that meets the requirements of affluent urban riders who like elegant driving. Audi offers a sporty and adventurous appeal, as well as a strong touch of elegance and comfort.
Marketing tactics include product innovation, price strategy, promotion planning, and so on. These business methods, based on the Audi marketing mix, aid in the brand’s market success.
Audi’s marketing strategy assists the brand in establishing a competitive market position and achieving business goals and objectives.
Let us have a look at the 4Ps of the marketing strategy of Audi:
Audi Marketing Mix
Product Mix
Audi has a luxury brand image because of its cars, which are distinctive. The firm offers a variety of items to the market, and its vehicles evolve in tandem with technological advancements. Audi produces attractive vehicles with excellent power. Audi’s marketing mix includes a diverse variety of luxury vehicles such as sedans, SUVs, and sports cars. A8 is a design and technological milestone. It sees technology as a premium brand and targets its clients appropriately. The company invests in scientific and innovative breakthroughs and creates solutions of exceptional quality.
Interior of the Audi A8
The company presently provides several products, including the A series (A4, A6, A8), Q series (Q2, Q3, Q5, Q7), TT, E-TRON, S5, RS5, and R8. Audi also has a wide choice of sports vehicles. Audi has a dedicated consumer base as a result of the popularity of its products throughout the years. Ducati and Lamborghini are also part of the main corporation.
Place Mix
Audi is a major brand that serves people all around the world. The headquarters of Audi is in Germany. The corporation has manufacturing operations in nine different countries. They are also looking for prospective customers in untapped markets. As a result, Audi has made global investments and continues to expand in the Asian market. Audi’s presence is built and maintained through an exclusive network of dealerships and after-sales service centers. Audi employs a channel that extends from the production to the distributor to the wholesaler to the dealer to the client. Audi employs cutting-edge technology in its manufacturing facilities as it strives for customer happiness with the goal of being the world’s most successful luxury brand.
After Sales Service – Audi
Price Strategy
Audi adopts a premium pricing approach to capitalize on its brand image. Because it is a competitive business, the price strategy in the Audi marketing mix is mostly based on premium vehicle manufacturers’ competitive pricing. Audi has strong brand equity. In Audi dealerships, the company offers high-quality items, allowing customers to conveniently access the brand. Audi vehicles start at $35,000 on average, and luxury sports variants may cost up to $1.5 million. Audi Finance provides a unique finance alternative to assist customers in purchasing products with convenience.
For current customers who want to use optional features in their automobiles, an optional pricing structure is used. For example, Audi Bang, sound system, and navigation system are optional additions in a car that the buyer voluntarily purchases. Audi pricing variances are also influenced by a country’s geographical location and economic conditions.
How Audi Gave BMW a Run for its Money
Promotion Strategy
The cornerstone of Audi’s advertising endeavors is its logo. Audi’s four overlapping rings instantly generate a brand picture in the minds of customers. Audi actively supports a variety of sporting endeavors. Audi uses celebrities to support its products in addition to broadcast, print media, and internet marketing. Audi carefully selects marketing opportunities to match its image. Because of its premium brand image, Audi does not believe in the mass market. Audi invests in a variety of sponsorships, including the Olympics and football teams. The brand has also had product placements in Marvel films and video games. Audi cultivates its brand image by conveying the impression that Audi is driven by celebrities. As a result, the Audi marketing strategy and mix study is complete.
Audi’s Logo
Audi Marketing Strategies
Audi’s competitors in the premium and costly automobile category are numerous, and they all target the same upper-class socioeconomic group. When it comes to technology, speed, and pricing, BMW, Jaguar, and Mercedes-Benz are constantly neck and neck. Audi, on the other hand, maintains a solid market position thanks to a strong brand image and worldwide purchasing power from the Volkswagen Group. The Audi advertising strategy focuses on showcasing luxury, innovation, and sustainability through high-impact campaigns across TV, digital platforms, and sponsorships.
Let’s examine how Audi’s marketing approach works to maintain its market share after more than a century.
Uphold The Brand’s Image
Audi does not merely launch an advertising campaign to see what happens. They carefully pick the message based on the company’s values, and when it connects with the audience’s understanding, they pursue it further. It is all about consistency once more. This premium automaker’s success is driven by a great brand with a positive brand image.
The German carmaker has already built the foundation to succeed in the new market as it transitions to more electric vehicles. With the slogan “Vorsprung durch Technik,” which translates to “Lead by technology,” the Audi brand advertises itself as a well-engineered premium brand.
Customers with high budgets were able to consider Audi as the technologically cutting-edge, aesthetically appealing, and premium build quality option among other vehicle companies because of the brand’s consistent image.
Persistent Marketing Strategy
Audi is extremely consistent in their approach to advertising, which is something consumers will notice right away. For instance, TV commercials for Audi frequently resemble billboard and print advertisements. The Audi brand positioning focuses on delivering premium mobility solutions that combine cutting-edge technology, sophisticated design, and sustainable innovation.
Audi Billboard Ads | Audi Marketing Strategy
There will still be some minute variations and twists, but the commonalities across the various channels are very apparent. The entire marketing system functions flawlessly as a single unit. This makes for powerful, comprehensive advertising campaigns that leave an impression on the audience.
Pricing Strategy
An Audi automobile costs among the top prices, or a premium price. This is supported by the great quality of the cars that one may own and the brand reputation. People desire to display their social status by driving a nice vehicle with the four interlocking rings emblem because they enjoy the company’s reputation.
Audi Marketing Campaign
Audi’s marketing efforts frequently promote the idea that its cars are driven by famous individuals to support the cost justification. Famous actors, soccer players, and singers are all options, but Audi also picks its marketing partners very carefully. Audi doesn’t rely on mass marketing because of the specialized market; instead, it places ads in the luxury category specifically for the target demographic.
Smart Target
Currently, 91,477 people work for Audi, which has automobiles available in over 100 markets. However, they concentrate their efforts on Asia rather than just any random nation. In nations like China, India, and the United States, where lifestyles are quickly changing and the luxury market is growing quickly, Audi has had record sales every year. Audi’s marketing tremendously accelerated the brand’s global growth.
In the luxury and supercar segments, Audi has been a symbol for decades. Nearly everyone on Earth can instantly recognize the four-ring logo. Despite the difficult market, the business has continued to develop successfully over the years, and innovative marketing tactics have played a big part to play in that.
Focus on Sustainability and Innovation
Sustainability is an important part of Audi’s marketing. The company focuses on cutting carbon emissions and promoting eco-friendly travel. Audi’s ads often show these efforts, helping build its image as a smart and responsible brand.
When Audi launched the e-tron, its first all-electric SUV, it ran a big marketing campaign. This included TV ads, online ads, and social media posts. The campaign highlighted the e-tron’s advanced tech and eco-friendly features. Audi showed the e-tron as both stylish and green, attracting customers who care about the environment and proving its focus on innovation.
Audi Marketing Strategy | Audi Marketing Campaign
Conclusion
Hope this article helps you craft a strategy for your luxury brand. A brand’s continued market growth depends on consistent marketing and a strong brand image. Great prices should correspond to high quality and standout qualities. Creative marketing techniques may convey a strong message without detracting from the brand’s image (calling out your competitors is a fun way, too).
Audi’s target market is the wealthy class of modern city consumers. Audi’s customers are highly qualified, tech-savvy, and contemporary individuals who value style and quality as well as performance and rider safety.
What is Audi pricing strategy?
The Audi pricing strategy follows a premium pricing model, reflecting the brand’s luxury image and high-quality features. Prices typically start around $35,000 and can go up to over $1.5 million for high-end sports models. Audi also uses optional pricing for add-ons like sound systems or navigation, and offers financing options through Audi Finance.
What is Audi brand strategy?
Audi’s brand strategy focuses on luxury, innovation, and sustainability. It positions itself as a premium carmaker with advanced technology, sleek design, and a commitment to electric mobility. The brand aims to offer a progressive and eco-friendly driving experience while maintaining strong emotional appeal and performance.
The saying ‘Hygiene is two-thirds of health’ holds great importance in life as hygiene is one of the most important basic human needs. Since the outbreak of covid-19, we are obliged to wash our hands regularly to prevent the spreading of the virus all around. Well, you may be thinking that using a regular soap would cleanse the germs in one wash, right? But you are wrong about it because regular soaps don’t contain any antibacterial chemicals, whereas a hand wash liquid or disinfectant gel does.
So, to ensure this someone has to take the job of manufacturing antibacterial chemicals in products. Well, that’s Reckitt, a multinational UK-based consumer goods industry is a leading company in the manufacturing of disinfectant products all over the world. Reckitt & Sons are well-known for working towards the provision of disinfectant products for a cleaner and healthier world by launching Dettol, Harpic, Vanish, Cillit Band and Lysol, ultimately owning a net worth of around 56 Billion USD and becoming one of the world’s largest household products companies.
Among all of these brands, Dettol showed great growth during the pandemic. However, even before the pandemic, Dettol is known to be a tried and trusted household brand for many. This is because of its great products, pricing, and most importantly its marketing strategies. No brand can flourish well in the absence of the right marketing strategies. In this article, we will go through Dettol’s marketing strategy that makes it the most trusted hygiene brand.
Market Growth Rate of Hand Hygiene Products in India (2018-2022)
Marketing Strategies of Dettol
Dettol is one of the most popular and trusted antiseptic and hygiene brands. Almost every household has a strong faith in this brand when it comes to hygiene. The following are the key marketing strategies of Dettol that make it a household name in the hygiene category:
Product Strategy
Dettol is one of the largest brands in selling & distributing antiseptic solutions in the form of Dettol Antiseptic Liquid, Soap, Hand Wash, and Dettol Surface Cleaning. One of the original products branded by Dettol is Antiseptic Liquid which is highly recommended as a first aid toolkit necessity. The brand offers various other products like hand sanitisers, shaving cream, dishwashing liquids, etc. This product strategy to provide different kinds of products on a budget under one name with the claim to kill 99.9% of germs proves to be great for Dettol’s success.
Price Strategy
One of the key marketing strategies of Dettol is a great pricing strategy that uses varied pricing. As I mentioned earlier, Dettol offers budget-friendly products that use the valued price method in which the customer gets the best value for the product purchased. For instance, Dettol Anitspectic 550ML costs INR 194 and 1Liter is priced at INR 330 in India. Its pricing strategy is to offer its products in different sizes and prices to suit different categories of people.
Promotion and Advertising Strategy
Dettol’s Celeb TVC
Dettol contributes a great share of its profits towards its brand promotions and advertisements. It is known to advertise its products through campaigns, radio, TV ads, print ads, and so on. The brand is known to develop a strong connection with the customers with its blogs, surveys, social media channels, and different campaigns. Dettol also indulges itself in celebrity promotions to strengthen its image among its customers.
Selling & Distribution Strategy
Dettol products are available in over 120 countries. The company sells its products to distributors who in turn sell them to wholesalers and retailers. In the case of bulk order, the company use a direct channel distribution strategy, by delivering the products to the customer.
Thus, Dettol opts for an amazing selling and distribution strategy by offering its products everywhere including local general and medical stores, malls, and also over different eCommerce platforms.
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The following are some of the unique features of Dettol’s marketing strategies that make it stand out from the rest:
Brand Equity
Consumers perceive Dettol as authoritative as being somehow reliable and adaptable and ensuring coverage from germs, according to brand image data analysis. Dettol’s equity on bacteria safeguarding has continued to remain very potent. It’s been compared to a soldier that shields them from the dirty and unsanitary physical realm.
When a brand is used, the user experiences a wide range of emotions. The brand conjures up favourable pictures and thoughts, from reassuring customers that their families are safe and secure and also giving mothers the satisfaction of knowing they have done everything in their power to protect their children from germs.
BCG Matrix
Dettol BCG Matrix
BCG Matrix is a growth-share matrix that is used to analyse different products of a company. The matrix divides the products into four categories. These are the star products, cash cows, dogs, and question marks. Star products indicate high growth and high market share; cash cows have low growth but high market share; dogs have low growth and a low market share; question marks have high growth but low market share.
For Dettol, its liquid hand wash is the stars, the antiseptic liquid is its cash cows, band-aids are the dogs, and products like soap bars, shaving cream, and wipes are its question marks because of less demand among the customers.
Competitive Analysis
Another unique feature of Dettol’s marketing strategy is competitive analysis. Dettol can reach a broad market across multiple sectors because of its presence in several product categories and the enormous network of RB. They also dominate certain markets, such as those for antiseptic liquid and liquid hand soap, but some of their market segments, such as those for wipes, kitchen gel, and shaving cream, are performing relatively poor due to the competition from numerous local and international giants, including HUL, P&G, Dabur, and many others.
Market Analysis
Presently, several manufacturers’ offers can be found in the sanitation marketplace. People are becoming more environmentally conscious as wealth and education levels rise, providing these businesses with a chance to grow their target market. Keeping this in view, another unique feature of Dettol’s marketing strategy is that it always conducts market analysis to stay ahead in the race.
Customer Analysis
Dettol’s customer analysis allows it to consider all groups of people irrespective of age, gender, or financial status. This is because everybody does need antiseptics, and since Dettol has been on the market for many years and has performed admirably, consumers have absolute confidence in the brand.
STP of Dettol
Segmentation
Dettol uses Demographic segmentation in terms of age, social status, behaviour, gender, income level, and occupation. In simple terms, any person of any age can take the advantage of Dettol products.
Targeting
From the young ones to the old ones, every generation contributes to the targeted customers of Dettol to increase the usage rate.
Positioning
Everyone looks out for hygienic products whenever they encounter the spread of any viruses. Thereby Dettol emphasis on its core brand positioning as an antiseptic which protects people from 99.9% of germs.
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Dettol has released an advertisement clip as part of the #showercool campaign that highlights the USP of its soap, Dettol Intense Cool. The company has also teamed with Rajasthan Royals, an IPL team, as its official cooling partner for IPL 2022.
Dettol’s Viral Campaign
Although the lockdown measures continue to relax, the Dettol campaign on individuals returning to the workplace became viral for the wrong reasons. The advertisement tries to explain parts of office life that people may be missing out on because they work from home. However, the advertisement instantly drew harsh reactions from commuters for comparing going back to work to seeing your second family. The government had been organizing a press partnership campaign to explore a range of themes related to the coronavirus response, and soon the officials clarified that there had never been a “return to work” campaign.
Due to the resurgence in the use of sanitation and health goods, Dettol has established itself as the market leader in India’s soap sector. According to RB’s most recent statement, the company currently controls 14% of the local soap market.
“For the first time in its history, Dettol, as a tribute to covid-19 warriors, replaced its iconic logo with an image of a Covid protector along with the ‘protector’s’ inspiring story,” the company said on the launch of ‘Dettol Salute Campaign’. This was a great marketing strategy that the brand opted for during the pandemic.
Dettol Banega Swasth India (DBSI) also launched Swachh Bharat Swasth Bharat Yatra to create awareness regarding health and hygiene among the people by conducting nukkad nataks across the ghats of Varanasi.
In addition to increased awareness of hygiene precautions, which has increased utilization of hygiene goods, effective and efficient supply chain administration during the crackdown assisted Dettol’s business. Dettol and other etiquette goods like Lysol and Harpic account for more than 60% of the company’s Indian sales.
It employed the ad firm Dentsu X in January to give it more traction. To take advantage of TikTok’s viewership, RB inaugurated the Dettol India #handwashchallenge campaign in April. According to the company, the campaign received 125 billion views. Additionally, it has partnered with AIIMS to support pertinent research initiatives on cleanliness and other non-pharmaceutical things.
Conclusion
Dettol is one of the most popular household names when it comes to hygiene. All its marketing strategies are responsible for providing it with a competitive edge over other hygiene brands. Its product, pricing, promotions, and selling strategies are amazing and compliments its brand name. Thus, Dettol’s marketing strategy is a great combination of building a strong brand image and ensuring customer satisfaction at the same time.
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Dettol is successful because it offers a range of quality products that suits the needs of every household at affordable prices. Moreover, being a tried and tested brand, it has developed a strong trust among customers that makes people buy it over other brands.
Who is the owner of Dettol?
Reckitt Benckiser, one of the world’s largest household products companies is the owner of Dettol.
What is the unique selling proposition of Dettol?
Dettol’s unique selling proposition is the provision of germs protection in its products like the antiseptic liquid, hand wash, soaps, and shaving cream.
