How not to sell exclusive products: The Audi A6 and A4 in India

The Audi A6 is being sold in India at an EMI of Rs. 77885* and the Audi A4 at an EMI of Rs. 47980*, according to this advert on the front page of today’s Economic Times (PDF of epaper):

I don’t think this is very smart.

A financial option, though perfectly acceptable (and understandable) for people across segments, still has a social stigma (in the Indian context) of ‘not being able to afford the full amount’ attached to it.

So, while the Audi does qualify as a ‘status symbol’ in India – it has a presence when on Indian roads, and is expensive enough (the EMIs are for a period of 5 years), advertising the EMI makes no sense, even though offering the EMI to a customer who walks in, does. It’s something you don’t mind one customer communicating to another, but you do mind it being flashed on the front page of a popular financial daily.

A sales promotion should be a marketers last option; the price of a brand that banks on exclusivity is strictly off limits. In this case, the perceived price drops drastically and becomes affordable, and non-exclusive.

The following two parts of the ad work against each other:

(OR – you will be looked up to by your peers) , and
(OR – You ain’t got the money, but want to show that you do? We’ll help you out cause you need our help)

I can imagine a few CEO’s sitting down and downing their Blue Labels, and one pointedly asking the other – So, you got your new Audi A6 at 77k a month on installments or did you pay the full amount?

Harneet adds that this is probably not Audi advertising this, but Euro Motors. I hope Audi is aware of this advertisement.

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