...Porsche Case Study Shelly Huff The defining problem in this case study is clearly growth. Porsche wants to grow in several ways. One way that they would like to see growth is the number of female buyers. While the Cayenne did lure more women to the brand, the hope is to develop a new model that will appeal to both men and women to further attract a higher percentage of females, as well as male buyers new to the brand. Another way Porsche would like to see growth is within their dealer network. In several states, Porsche lost almost 50% of their dealers. The idea is to gain some of that percentage back. The question is, what steps can Porsche take to attract more women to the brand and increase their dealer network to achieve the growth they are seeking. I have I identified two possible solutions. The first solution that I propose would be to develop a hybrid in both the Boxster and the Cayenne. People are becoming increasingly environmentally conscious and are concerned about their carbon footprint. Hybrid cars are becoming increasingly more popular and sought after. There would be several advantages for Porsche if they were to develop a hybrid. The Boxster and the Cayenne are the models that have most appealed to female buyers. Developing a hybrid in these two models would not only attract more women to the brand, it would also succeed in luring more males to the brand. A hybrid would appeal to the demographic of the male buyer who views his car as an escape...
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...Maggie Beckley Anite Dahaba Sherryon Moore Zulma Ocampo Chapter 5 Porsche Case Study: Guarding the Old While Bringing the New 1. Analyze the buyer Decision process of a traditional Porsche customer. a. Traditionally Porsche has developed a low volume and increasingly fragmented auto market. The availability of these high end models created an image of exclusivity. And this image is very important to the Porsche customer and they want their car to represent how successful they are. For the traditional Porsche customer the 1st 3 steps in the buying decision may be skipped or gone through a bit quicker and go to steps 4 and 5 because they already know about the Porsche and they already know what they need in this type of car. The first 3 steps generally arise when a consumer faces a new and complex purchase situation. i. Need Recognition: The Porsche customer is financially well off so the car they purchase would be a representation of their lifestyle. ii. Information Search: The Porsche consumer will likely obtain information from personal sources (those in their circle who already owns a Porsche) or from commercial sources. iii. Evaluation of Alternatives: This step is skipped for traditional Porsche customer because this is the only brand they would be evaluating. iv. Purchase Decision: the Porsche customer will likely go with what their preferred brand. The intent of this customer...
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...Case Study Porsche: Guarding the Old While Bringing in the New 1. Analyze the buyer decision process of a traditional Porsche customer. A typical Porsche customer does not go through the traditional buyer decision steps. “The five steps include; need recognition, information search, and evaluation of alternatives, purchase decision, and postpurchase behavior” (Kotler & Armstrong, 2014). These customers skip most of the 5 stages and jump right into the purchase decision. Although these individuals might make a purchase off of brand recognition usually the decision is made based on their wants and their mind is made up well before the purchase occurs. “Porsche appeals to a very narrow segment of financially successful people” (Kotler & Armstrong, 2014) and these people purchase their cars for the pure enjoyment of the vehicle and the exclusivity the car provides. As a current owner of three Porsches, and currently searching for number four, I can tell you that personally I purchase these vehicles for two reasons; for the pure excitement I get when driving these cars and they also define my arrival at a successful benchmark in my life and the exclusivity that comes with ownership. Nothing can replicate the feeling of driving one, and no other combination of sound, feel, sight and soul can connect with a true “Porschephile” (Urban Dictionary, 2005), like owning a Porsche. “A Porsche is more than just a vehicle. It is an expression of freedom and a unique attitude...
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...[pic] [pic] by: ....... Table of Contents Question 1 : Analyze the buyer decision process of a traditional Porsche customer. What conclusion can you draw? 3 Question 2: How does the traditional Porsche customer decision process contrast with the decision process for a Cayenne or Panamera customer? 4 Question 3: Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970s and 1980s? 5 Question 4 : Explain how both positive and negative attitudes toward a brand like Porsche develop. How might Porsche change consumer attitudes toward the brand? 6 Question 5: What role does the Porsche brand play in the self-concept of its buyers? 7 Conclusion: 8 Question 1 : Analyze the buyer decision process of a traditional Porsche customer. What conclusion can you draw? Buying a product goes to 5 different stages, which are: 1. Need recognition. The profile of a Porsche car buyer is a financially successful person that loves a challenge. They’re hard working people and set high goals in everything they do and often have white collar jobs. These customers separate themselves from the mass and feel attracted to exclusive sophisticated things and expect the cars that they drive in to satisfy this feeling of exclusivity. 2. Information search In information search the consumer searches about the product which would satisfy the need...
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...Porsche: Guarding the Old While Bringing in the New Background on Porsche The Porsche Company was founded by Ferdinand Porsche who credited himself for the design of the original Volkswagen Beetle and Adolf Hitler’s people’s car. He had already gathered over 30 years of valuable experience before designing the Porsche. The first result of this work in automobile development was an electric car called the Lohner Porsche which was powered by wheel-hub motors. In 1948 Porsche engineering office started working under its own steam on the Type 356 VW Sports Car it marked the birth of the Porsche sports car. Today the Porsche engineering continues to take on engineering challenges of the future. The Problem The Porsche Company started to decline in sales due to its’ exclusive customers. Porsche became concerned about if there were enough products to keep the company afloat. The company tried to extend its brand outside of the box with making cars that were affordable to individuals who didn’t represent the Porsche brand. What factors are important to understanding this problem? The Porsche customers were upset, because there were different classes of people who owned this product. The customers exemplified attitude toward the product. “A customer’s attitude fit into a pattern changing ones attitude may require difficult adjustments in many others” (Kotler and Armstrong). Brand personality is a unique concept with this case. “Brand personality is the specific mix of human...
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...Porsche Case Study Michael S. Culver Embry Riddle Aeronautical University April 14, 2016 Porsche Case Study 1. Analyze the buyer decision process of a traditional Porsche customer. The buyer decision process of a traditional Porsche customer reflects the four factors influencing consumer behavior; cultural, social, personal, and psychological. Porsche targets the affluent and creates a culture of exclusivity in owning a Porsche. The typical customer buys into this culture and buys the car for these reasons. Porsche owners tend to believe they are their own Social class. Porsche customers’ social factors are driven by roles and status. Porsche owners feel that have a certain status and the Porsche vehicle reflects that role or status to others when they are seen driving it. The personal factors that drive a Porsche customer are economic situation and lifestyle. Porsche customers are generally in a higher economic class and they don’t like if their car is affordable to the masses. Porsche owners also feel that owning the care is a lifestyle, driving the car is an adventure. The psychological factors of a Porsche customer are their beliefs and attitudes. Porsche buyers truly believe they are in a class all by themselves and display that confident and exclusive attitude when driving the car. (Kotler, Armstrong, 2014, pg. 137-151) 2. Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or Panamera customer. The customer decision...
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...PORSCHE CASE “Porsche-a brand with heritage” A brand is a product but adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. For the last 50 years Porsche is on the list for prestigious, premium, luxury brands with high percentage of awareness and loyal customer and behind strong brand stands successful branding strategy, strategy that Porsche have implemented through the years and strategy that brings amazing results among this large period since the beginning of Porsche as product and then premium brand. The management team of Porsche succeed to create brand value and to convince the customers that there are meaningful differences among brands in the product. Porsche possess a unique brand personality which sets him apart of the competition. It has everything that one successful brand should have; powerful brand name, recognizable symbol and logo, premium price, high awareness and loyalty that provides predictability and security of demand for the firm and creates barriers to entry that make it difficult for other firms to enter the market. Loyalty also can translate into a willingness to pay a higher price. Beside all of the elements that we can see, there are many components ,under the surface related to the brand, that make him strong and powerful, like ; high quality, efficient production and effective selling, strong R&D and so on. The brand image and core values of Porsche can be described with these three...
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...Kevin Huong Prof. Erickson MKTG 10300 May 4, 2012 Porsche Analysis Paper Porsche is success in the automobile sector and its involvement in VW. Porsche is by far the largest sports car maker in the world. In recent years it enjoyed the highest profit margin in the industry, thus enabled it to acquire the giant Volkswagen group. However, the global financial collapse ruined its takeover plan, eventually resulted in counter takeover by Volkswagen. Porsche Automobil Holding SE was founded on June 26, 2007 at the extraordinary general meeting of Porsche AG, with a unanimous vote of the shareholders. At the time, the objective was to spin off the operative automobil business as a wholly owned subsidiary and to create the holding company as a business unit responsible for managing equity investments. Share holders of the Dr. Ing. h.c. F. Porsche AG voted unanimously in favor of the operating activities of Porsche AG becoming the responsibility of a hundred percent subsidiary in accordance with the provisions of the Transformation Act, of adopting a controlling and profit transfer agreement between the holding company and the operating subsidiary, and also of transforming the holding company into a European Company, a so-called Societas Europaea (SE). The name “Porsche Automobil Holding” was also unanimously approved. The company’s headquarters is located in Stuttgart. Porsche is a well-known European automobil industry that has been for over 60 years, and is a holding company...
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...Porsche Porsche has perfectly positioned itself in a niche market. The brand—for which, as it was famously phrased in the movie Risky Business, "there is no substitute"—has just about everything going for it, even as the wider world of personal mobility crumbles. Its owner base is passionate as well as devoted and the automotive press routinely adores the brand. Due to its compact portfolio of four vehicles, all engineered according to the unimpeachable values of high performance, Porsche would seemingly be impervious to downturns. Yet, the company has seen time periods with drastic decrease in sales. To rebuild its momentum, Porsche has followed other luxury car companies including Mercedes and Audi, and explored ways to expand its market by introducing different lines and less expensive models. With its impeccable reputation as the quintessential luxury sports car, this can be hazardous territory for the company, as some fans believe it will lead to the cheapening of the brand and ultimately force loyal patrons to find a substitute. Track Work The Porsche legacy was founded well before the company was created in 1931 by Austrian engineer Ferdinand Porsche. Ferdinand Porsche received international fame when he introduced his Lohner-Porsche electric car at the 1900 World Exhibition in Paris. The Lohner-Porsche was highly efficient and more expensive than similar cars with combustible engines, starting Porsche’s brand of luxury vehicles. Additionally, in 1910 Ferdinand...
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...INTI INTERNATIONAL UNIVERSITY FACULTY OF BUSINESS, COMMUNICATION AND LAW MKT 2103 / MKT2105 – CONSUMER BEHAVIOUR AUGUST 2014 INDIVIDUAL ASSIGNMENT (20%) Analyse the case study given and answer the following questions. While most automobile companies talk about bankruptcy, merger, collapse, and liquidation, Volkswagen AG is posting solid earnings. Based in Wolfsburg, Germany, and Europe's biggest automaker by sales, Volkswagen (VW) managed the global eco-nomic recession well by focusing on emerging markets such as China and Brazil and continually reducing costs. VW is the leading auto firm in China, not Toyota or Nissan. VW's market share in Western Europe rose to 20 percent in 2009 from 17.9 percent a year ago. While shrinking demand for new cars in major markets and high raw-material costs, and unfavorable exchange rates have reduced earnings of most European automakers, VW anticipated these conditions through excellent strategic planning and continues to take market share from rival firms worldwide. The German truck maker and engineering company MAN AG is VW's largest single shareholder at 30 percent, and its business too has been good. MAN'S third quarter of 2008 saw profit jump 34 percent, lifted by strong sales of trucks, diesel engines, and turbo machinery. VW is currently spending $1 billion to build a new plant in Chattanooga, Tennessee, for the production of a midsize sedan in 2011 with initial capacity of 150,000 cars annually. VW's plans for 2018 include...
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...Volkswagen Research “The Volkswagen emissions scandal explained” http://www.theguardian.com/business/ng-interactive/2015/sep/23/volkswagen-emissions-scandal-explained-diesel-cars * “Volkswagen has been cheating in emission tests by making its cars appear far less polluting than they are. The US Environmental Protection Agency discovered that 482,000 VW diesel cars on American roads were emitting up to 40 times more toxic fumes than permitted - and VW has since admitted the cheat affects 11m cars worldwide.” * “…far more harmful NOx emissions, including nitrogen dioxide, have been pumped into the air than was thought – on one analysis, between 250,000 to 1m extra tonnes every year. The hidden damage from these VW vehicles could equate to all of the UK’s NOx emissions from all power stations, vehicles, industry and agriculture.” * “VW’s “defeat device” is not a physical device but a programme in the engine software that lets the car perceive if it is being driven under test conditions - and only then pull out all the anti-pollution stops.” * ““Clean diesel” engines cut emissions through techniques such as adjusting air-fuel ratios and exhaust flows, and in some (though not most VWs) injecting a urea-based solution to render NOx harmless. When running normally, requiring greater performance, VW’s controls would not operate in the same way.” * “How does the defeat device know it's being tested? The EPA tests have known practices and profiles. In many...
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...A.1 Environment Porsche was founded in 1931 by Ferdinand Porsche, along with his son and son-in-law, Anton Piëch, father of VW Chairman Ferdinand Piëch. Known in its early days as the Porsche Engineering Office, Porsche did not start off as an automaker, but rather a firm that sold design and engineering services to other carmakers. In 1934, Adolf Hitler commissioned Porsche to make a “people’s car” or “volkswagen.” The forerunner to the VW Beetle, the VW Type 60 hit the roads in the mid-1930s, and in 1938 the first plant dedicated to the manufacturing of the VW was opened. It wasn’t until 1948, three years after the end of World War II, that Porsche produced its first branded sports car. Within two years, the Porsche 356 series rolled off the production lines. By 2007, Porsche was the world’s most profitable automaker on a per unit basis, 5 a feat that was especially impressive considering it produced just over 100,000 automobiles annually. A.2 Industry Porsche’s takeover of VW was seen by many as a wise move for the small, independent car company that, unlike rival brands Jaquar, Ferrari, Lamborghini, and Lotus, had managed to avoid being gobbled up by the auto industry’s behomoths the likes of General Motors, Chrylser and Ford. In 2005, Porsche in partnership with VW produced a luxury sedan called Panamera which would compete against models produced by Mercedes, Aston Martin and Audi. The typical consumer of Porsche is those men that are young, wealthy and adventurous...
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...Coursework Assignment: Case Study Analysis of Porsche Table of Contents 1. Introduction 2. Barriers to entry that a new entrant will encounter when entering the global automotive industry 3. Value Chain Analysis for Porsche’s organizational capabilities 4. Porsche Business models 5. Recommendations on future growth options Introduction The case study is aim to using a different frame work to analyse and interpret the Porsche primary and secondary activities in order to find out the company resources and capability for each segment. The resources and capabilities linkage will develop the core competencies for the Company. In further analyse, we will be able to identify competitive advantage which help the Company sustain in the business and its competitors. Barriers to entry that a new entrant will encounter when entering the global automotive industry The global automotive industry is unique and it request high competencies to enter in the industry. The competitive and challenges environment have created numerous of barriers for new entrant to enter the industry. One of the greatest barriers is capital requirement. The capital requirement is extremely high not only purchase physical manufacturing plants, raw materials and distribution, as well as hire and train employees. In order to compete with the industry leaders, the new entrants have to keep up with the latest innovations. Thus, it is involve huge investment in research and development. It is...
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...------------------------------------------------- PORSCHE ------------------------------------------------- Marketing Case Study Report Group 1: Zipei Liu, Yoon Ji Lee, Junghyun Lee Abstract Analyzed the buyer decision process of consumers of Porsche and how the company developed throughout the history. Even mentioned from the very first sentence of the text, Porsche is a unique company. It holds a very unique customer value, as not much population over the world owns a car of such. In most places, owning a Porsche is considered holding a massive amount of wealth. What made Porsche become such a company with desirable image, and how did the company and market change over the history? A challenging question to Porsche is, why they purchase Porsche instead of Jaguar, Ferrari, or a big Mercedes Coupe. As a consumer, most of us buy utility vehicles. But Porsche is considered a car to be enjoyed as luxury, not just simply used. Most Porsche buyers are not motivated by information, but by emotions. The brand effect can be an important reason why customers choose Porsche instead of Jaguar or Ferrari. Customers believe in the brand image Porsche holds – the luxuriousness. Thus, if there is no influence from others or the influence cannot move people, and if there are no unexpected situation factor, customers will finally decide to purchase Porsche instead of others. And after customers purchase and drive Porsche on road, they will admire and be satisfied with their Porsche because it is a competent...
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...Case study: Volkswagen’s Comeback: Aligning Strategy and Structure Dr. Sunny Onyiri BA 610 Managing Global Companies Zhishuo Zhou 4/15/2015 Volkswagen (VW Volkswagen), March 28, 1937, Ferdinand Porsche, with the support of Mercedes-Benzes created public development company, the same year in September to VW co., LTD. Volkswagen is Germany's biggest and most young car company, is an international group co., LTD., based in Wolfsburg, Germany Volkswagen group, is one of the world's leading automobile manufacturers, is also the largest car manufacturer in Europe. In the world's largest car market Western Europe, about one in every five new car from the Volkswagen group. The development of the nationalization and internationalization is a striking feature in the development of Volkswagen Ag. Volkswagen is because history has uniqueness, always shoulder the responsibility, state and society and the nationality of the background, and makes the public company obtained the support in the start-up and growth stage. Due to the implementation of enterprise internationalization strategy, the public company eventually grow into a multinational company, the product production on four continents, and implement a global sales and service. Public company was founded in the 1930 s. After the German Nazi party to power, the so-called "national socialism" in 1933, the Nazis set up "the German Labor front (DAF, Deutschen Arbeitsfront)" group, the group is forced to take over the assets...
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