Strategic Marketing Analysis

Rizwan Habib🔴Joy Huffman🔴Derek

Marketing Management
Mitchell🔴Cynthia Rayess 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 Performance
Macro & Micro Factors
• 2008 Economic Recession

• High unemployment

• More conservative consumer spending

• Stringent emission standards

• Increased raw materials cost

Economic Factors
• Aging product line Internal Factors
• Introduction of Cayenne, Panamera and 911

• Strategic alliance with Volkswagen

• Sharing technology and innovation

• Resulted in SUV development

How did these factors affect Porsche?

Nort h A meri ca n Po rs ch e A nnua l Sa les

Panamera
Boxster
Cayman
911
Cayenne
Total
Porsche Marketing Strategy
Exclusive Sports Car Manufacturer
 Porsche Positioning

High Price
Low Quality

High Quality
Low Price
 Porsche Positioning High priced-high quality-exclusive sports cars

High Price
Low Quality

High Quality
Low Price
Marketing Mix

P
PRODUCT

PROMOTION
Marketing

PLACE
P
P
Mix

P
PRICE
Marketing Mix

P
PRODUCT

PROMOTION
Marketing

PLACE
P
P
• High end exclusive sports cars Mix

• High performance P
PRICE

• High quality
Marketing Mix

P
PRICE
P
PRODUCT

PROMOTION
Marketing

PLACE
P
P
• High price=high quality Mix
• Price range: $48,000 - $136,000

• Elite status
Marketing Mix

P
PROMOTION
P
PRODUCT

• Engineered for magic. Everyday. Marketing

PLACE
P
• Shifted to consumer focused Mix
advertising

• T.V.
P
PRICE

• Print

• Direct mail
Marketing Mix

P
PLACE
P
PRODUCT

PROMOTION
Marketing

P
• North American Market Mix
• Embrace American values P
PRICE
and expectations
Marketing Mix

P
PRODUCT

PROMOTION
Marketing

PLACE
P
P
Mix

P
PRICE
Product Life Cycle

Boxster
Introduced:
1996
INTRODUCTION

Cayman
Introduced:
2006

Panamera

MATURITY
Introduced:
GROWTH
911

DECLINE
2009 Cayenne
S Introduced:
Introduced:
a 1963
2003
l
e
s
Time
 Marketing Segmentation

• Driven Top • Old money

Elitists • Blue bloods
• Ambitious Guns • Not price sensitive

• Enjoys sporty
car for daily
use Everyday
Porsche Proud
• Ownership is
goal

Market
• Women, Users Patrons • Trophy for hard
younger work
drivers etc.

• Car is escape Fantasists Bon • Jet-setters

• Avoid flaunting Vivants • Thrill seekers
• Means of excitement
 Advertised American Consumer
Features Valued Features

• PDK:Porsche • Bluetooth
Dopplekupplung?
• Navigation
VS. Systems
• PSK:Stability
Management • Cup Holders

• Launch Control • Creature Comforts

Performance Focused
 Advertised American Consumer
Features Valued Features

• PDK:Porsche • Bluetooth
Dopplekupplung?
• Navigation
VS. Systems
• PSK:Stability
Management • Cup Holders

• Launch Control • Creature Comforts

Performance Focused
 PORSCHE

Engineered for magic. Every day.

Consumer Focused
• Marketing the practicality of Porsche

• Targeting consumer values

• Breaking from traditional

performance-driven advertising

Consumer Focused
Strategy 2018

Increase
customer
enthusiasm

Return
on capital
Sales of 21%
Goal: world's leading exclusive sports car manufacturer
200,000 cars Return on sales
15%

Excellent
employer and
business
partner
Strategy 2018

2011: Record breaking year

Increase
customer
enthusiasm • 116,978 unit sales
Return
Value- on capital • First year in Porsche history
Sales of
creating 21% with sales over 100,000 units
200,000 cars Return on sales
growth 15%
Excellent • $14.5 billion in revenue
employer and
business • $2.6 billion in profit
partner

• Increase market share-double sales by 2018

• Porsche Pure-remain true to Porsche brand

• Value creating-growth, not growth at all cost

Marketing Impact
Marketing Impact
North American Porsche Annual Sales

Cayman
Boxster
Panamera
911
Cayenne
Total
Marketing Impact

Porsche World-wide Annual Sales

Record Sales
Marketing Impact Porsch
e World-
wi de Mo
del Sal
es

Panamera
Cayenne
Boxster/Cayman
911
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 Favorable
Favorable
Extremely Unfavorable
Survey Results

Extremely high
High
Medium
Low
Extremely low
Survey Results

Which car do you prefer?

Survey Results

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

Benz or Beamer
Recommendation Proposal
Recommendations

Target marketing towards younger consumer

Product placement

Market fuel-efficiency of a Porsche

Target marketing towards younger consumer

Tween Recent Young

Demographic Graduates 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

11 Million Views $176 Million Box Office

12% 22%
 Market Fuel-Efficiency of a Porsche

Panamera Cayenne 911 Cayman Boxster

25 MPG 23 MPG 23 MPG 24 MPG 26 MPG
 Thank you
Engineered for magic. Every day.