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Porsche Case Study
Transcript of Porsche Case Study
Founded in 1931 by Ferdinand Porsche
Started as a firm that sold design and engineering services to other car makers
The world's most profitable automaker per unit basis
In March 2008, acquired a majority stake in Volkswagen (VW)
Attitudes Towards Porsche
Why did Porsche sell so many lower-priced models in the 1970s and 1980s?
We did no market research, we had no sales forecasts, no return-on-investment calculations. None of that. I very simply built my dream car and figured that there would be other people who share that dream.
Porsche had a diverse list of products so the buyer’s decision process is also becomes different for these new products.
The customer becomes aware of the models but they do not have adequate information about these new models.
They learn what is new in the new models.
They make assumption if it is worth trying these products.
After trying new products, they adopt to these new models
Driven, ambitious. Power & control important. Expect to be noticed.
Porsche recovered and is now the "most profitable automotive company in the world"
-The Wall Street Journal
Difficult to imitate
Porsche’s quality of products and services
Porsche’s unique sports car models
What role does Porsche Brand Play in the self-concept of its Buyers?
Traditional Porsche customers are financially successful people, who see themselves as entrepreneurial. The need to have the right car and a Porsche is a status symbol.
Most Porsche buyers have a strong desire to purchase no matter what, so they may not need to do an information search.
If all they needed was something to get them from point A to point B, they could find something much less expensive.
Most of the Porsche buyers are not moved by information but by feelings. Because Porsche represents luxury and class, the customer will buy it in order to differentiate themselves by being out of the ordinary.
When a consumer makes a purchase they assume certain outcomes, preferably a positive one, with that product. According to the statistics of the sales mentioned in previous posts, we can infer that the consumers are satisfied with the Porsche products.
Factors Influencing Consumer Behavior
The positive attitudes toward a brand like Porsche are developed by Social Factors. Customer buying a Porsche wants to show their status and separate from the lower class.
How Might Porsche Change Consumer Attitudes Towards the Brand?
If the price were is affordable to all people, it would destroy the high level social status of the brand ( but also contributing to the negative attitude of upper class).
Porsche Buyers Need to feel
Porsche appeals to a very narrow segment of financially successful people, and thus creates a brand of exclusivity and uniqueness.
Old-money blue bloods. A car is just a car, no matter how expensive. It is not an extension of personality.
Ownership is an end in itself. Patrons Their car is a trophy earned for hard work, and who cares if anyone sees them in it?
Worldly jet setters and thrill seekers. Their car heightens the excitement in their already passionate lives.
Walter Mitty types. Their car is an escape. Not only are they uninterested in impressing others with it, they also feel a little guilty about owning one.
The Porsche 911 was introduced to market
Porsche 914 became the top selling model because it was much cheaper than the 911.
Entering the SUV-market with the Porsche Cayenne
Porsche sold only 27,717 cars in the United States
Porsche was founded by Ferdinand Porsche
First Porsche Model 356 was built
“We’re not looking for volume; we’re searching for exclusivity.”
-Executive at Porsche AG
"Exclusivity. Individuality. Craftsmanship.”
The Marketing Decision Making Process
1) Need Recognition
2) Information Search
3) Alternative Evaluation
4) Purchase Decision
5) Post-purchase Behavior
Porsche has positioned itself in the car industry as a historical and Luxury/performance based brand. The “car enthusiasts” buy what they know can perform the best and that has longevity. For Porsche, this helps dwindle the evaluation of alternatives for their potential consumers.
Not just another utility vehicle but a life style.
High prices imply high status.
Take traditionalist stance on certain improvements.
Traditional Porsche Customer Reflections
Cayenne and Panamera Customer’s Reflections
Cayenne is a mid-sized crossover model with 5 seats and 5 doors sport utility vehicle.
Panamera is a full sized luxury car with 5 doors fastback. All steps are the same for both customer groups however, the Cayenne and Panamera customers still participate in the information search
Adoption process is defined as the mental process through which an individual passes from first hearing about an innovation to final adoption.
The negative attitude is developed when customers are not satisfied with the produce image.
Porsche should keep the image of their high performance car and market to the upper class customer, who enjoys the experience of driving rather than utility of a car.
- The Vanderbilt University Owen Graduate School of Management