Porsche Strategic Marketing Analysis

Rizwan Habib🔴Joy Huffman🔴Derek Mitchell🔴Cynthia Rayess

Strategic Marketing Analysis Marketing Management

Atlanta Module-Spring 2012

Porsche Overview

Porsche Facts • Founded in 1931 by Professor

Ferdinand Porsche

• First Porsche office was opened in Stuttgart

• Offered consulting services

• Motor vehicle development work

• Headquartered in Stuttgart

• 70% of Porsche cars ever built are still on the road

Company PerformanceMacro & Micro Factors

Economic FactorsInternal Factors

• 2008 Economic Recession

• High unemployment

• More conservative consumer spending

• Stringent emission standards

• Increased raw materials cost

• Aging product line

• Introduction of Cayenne, Panamera and 911

• Strategic alliance with Volkswagen

• Sharing technology and innovation

• Resulted in SUV development

PanameraBoxsterCayman911CayenneTotal

How did these factors affect Porsche?

North American Porsche Annual Sales

Porsche Marketing StrategyExclusive Sports Car Manufacturer

High Quality

High Price

Low Price

Low

Qua

lity

Porsche Positioning

High Quality

High Price

Low Price

Low

Qua

lity

Porsche Positioning High priced-high quality-exclusive sports cars

Marketing Mix

Marketing MixPPLAC

E

PPRODUCT

PPR

OM

OTI

ON

PPRICE

Marketing Mix

Marketing MixPPLAC

E

PPRODUCT

PPR

OM

OTI

ON

PPRICE

• High end exclusive sports cars

• High performance

• High quality

Marketing Mix

Marketing MixPPLAC

E

PPRODUCT

PPR

OM

OTI

ON

PPRICE

• High price=high quality

• Price range: $48,000 - $136,000

• Elite status

Marketing Mix

Marketing MixPPLAC

E

PPRODUCTP

PROMOTION

PPRICE

• Engineered for magic. Everyday.

• Shifted to consumer focused advertising

• T.V.

• Print

• Direct mail

• North American Market

• Embrace American values and expectations

Marketing Mix

Marketing Mix

PPLACE

PPRODUCT

PPR

OM

OTI

ON

PPRICE

Marketing Mix

Marketing MixPPLAC

E

PPRODUCT

PPR

OM

OTI

ON

PPRICE

INTR

OD

UC

TIO

N

GRO

WTH

MA

TURI

TY

DEC

LIN

E

Time

Sales

Product Life Cycle

Panamera Introduced:

2009

Cayman Introduced:

2006

Boxster Introduced:

1996

911 Introduced:

1963Cayenne

Introduced: 2003

Marketing Segmentation

Porsche Market

Elitists

Bon VivantsFantasists

Proud Patrons

Top Guns

Everyday Users

• Driven • Ambitious

• Car is escape • Avoid flaunting

• Ownership is goal

• Trophy for hard work

• Enjoys sporty car for daily use

• Women, younger drivers etc.

• Jet-setters • Thrill seekers • Means of excitement

• Old money • Blue bloods • Not price sensitive

Performance Focused

• PDK:Porsche Dopplekupplung?

• PSK:Stability Management

• Launch Control

• Bluetooth

• Navigation Systems

• Cup Holders

• Creature Comforts

VS.

American Consumer Valued Features

Advertised Features

Performance Focused

• PDK:Porsche Dopplekupplung?

• PSK:Stability Management

• Launch Control

• Bluetooth

• Navigation Systems

• Cup Holders

• Creature Comforts

VS.

American Consumer Valued Features

Advertised Features

Engineered for magic. Every day.

PORSCHE

Consumer Focused

• Marketing the practicality of Porsche

• Targeting consumer values

• Breaking from traditional performance-driven advertising

Consumer Focused

Strategy 2018

Increase customer

enthusiasm

Excellent employer and

business partner

Return on capital

21% Return on sales

15%

Sales of 200,000 cars Goal: world's leading exclusive sports car manufacturer

Strategy 2018

Increase customer

enthusiasm

Excellent employer and

business partner

Return on capital

21% Return on sales

15%

Sales of 200,000 cars

Value-creating growth

• Increase market share-double sales by 2018

• Porsche Pure-remain true to Porsche brand

• Value creating-growth, not growth at all cost

2011: Record breaking year

• 116,978 unit sales

• First year in Porsche history with sales over 100,000 units

• $14.5 billion in revenue

• $2.6 billion in profit

Marketing Impact

CaymanBoxsterPanamera911CayenneTotal

Marketing Impact North American Porsche Annual Sales

Marketing Impact

Record Sales

Porsche World-wide Annual Sales

Marketing Impact

911Boxster/CaymanCayennePanamera

Porsche World-wide Model Sales

Survey Results

Survey Questions

1. What is your overall impression of Porsche?

2. How would you rate the fuel-efficiency of a Porsche?

3. Which of the following cars do you prefer?

Lexus Mercedes-Benz BMW Porsche

Survey Results

Extremely FavorableFavorableExtremely Unfavorable

Survey Results

Extremely highHighMediumLowExtremely low

Which car do you prefer?

Survey Results

Survey Results

I'd rather have a......

Benz Beameror

Recommendation Proposal

Recommendations

Product placement

Target marketing towards younger consumer

Market fuel-efficiency of a Porsche

Target marketing towards younger consumer

Tween Demographic

Recent Graduates

Young Professionals

Product Placement

Product Placement

Product Placement

Product Placement

Product Placement Exposure

500,000+ 500,000+ 5.7 million

Product Placement Exposure

Product Placement Success

$176 Million Box Office 11 Million Views22%12%

Market Fuel-Efficiency of a Porsche

Panamera 25 MPG

911 23 MPG

Cayenne 23 MPG

Cayman 24 MPG

Boxster 26 MPG

Engineered for magic. Every day.

Thank you