...------------------------------------------------- 1) Analyze the buyer decision process of a traditional Porsche ------------------------------------------------- customer. ------------------------------------------------- ------------------------------------------------- 1. Need Recognition ------------------------------------------------- - Financially successful people, show themselves with the ------------------------------------------------- right car. Image of exclusivity. They want their car to represent how successful ------------------------------------------------- they are. ------------------------------------------------- 2. Information search ------------------------------------------------- – information search for the right car to represent how successful they are. .Strong and satisfying feelings. Low volume and increasing fragment auto market. creating an image of exclusivity. ------------------------------------------------- 3. Evaluation of alternatives - ------------------------------------------------- 4.Purchase decision ------------------------------------------------- – consumer expectation and satisfaction ------------------------------------------------- 5.Post purchase behaviour ------------------------------------------------- - loyalty ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ...
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...Porsche : Guarding the Old While Bringing in the New Introduction Porsche : The company Porsche founded in 1931 Porsche appealed to financially succesful people. People buy Porsche because the car mirrors their self-image Unique company Managers of Porsche wants to know: -Who their customers are - What they think - How they feel The buyers decision process Low volume and increasingly fragment auto market Sold a few models, creating an image of excusivity Making decisions : Cayenne or Panamera? Porsche 914 1970 - Porsche began to worry Cheaper model for other classes Made for a differend type of costumers VS How the Loyalists were thinking about the 914 They never accepted the 914 as a real 'Porsche'. The 914 users don't fit in the real owner profile. Disappointment in the new strategy of Porsche : Mass over Class Questions for Discussion Positive and negative attitudes toward a brand like Porsche. Positive Customer buying a Porsche wants to show their status and separate from the lower class. Negative Customers are not satisfied with the produce image. Answer 1 : It is the image of exclusivity that is most important. They want their car to represent how successful they are. Answer 2 : A traditional Porsche customer is more concerned about the way the car sounds, vibrates and feels. A Cayenne or Panamera customer is looking for both family car and speed. Answer 3 : * Cultural Factors (Social Class); having a Porsche is always means to upper social class...
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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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...The Brand Porsche The brand Porsche is built on decades of tradition and experience in the sports car segment. Customers value the pure dedication put into every single car and the company itself, demonstrated not only by Ferry Porsche, who was quoted saying: “I certainly have not given away my family name to sell off and cash out the company to the highest offer” (Ferry Porsche Interview, 1988). The car which is regarded to have shaped the company’s brand perception the most is the in 1964 released 911. Still in production today, the 911 which top speeds up to 315 km/h represents the sports car image better than any other car in the product line. In addition, owning a Porsche is more often than not considered a status symbol. Porsche owners, as publically stated by many users on one of the company’s fan forums – Rennlist – enjoy the fact that their vehicle seems to distinguish them from “ordinary” car drivers and more so from ordinary people. The car gives its owners the feeling to be part of an elite club, which not everybody is allowed or able to join. Finally, purists argue that Porsche used to be the purest of the sports car brands, catering to customers’ individual needs while keeping that adrenaline-pumping connection to the one thing that made the company what it is today: speed. Nowadays, however, this connection as well as the sports car brand image seems to be fading away, endangering what is one of the largest margins on cars in the automotive industry, and one...
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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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...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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...Melissa Wade Case #21: Porsche 6/13/2015 Porsche faces multiple internal and external environmental threats such as being smaller than its competitors making them more susceptible to market shifts. The company also faces brand dilution because of cultural differences between Volkswagen and Porsche management. The brand faces United States government regulations for gasoline efficiency which could impact the US market significantly. Porsche has great brand recognition and is known throughout the world as a highly valued racing organization. The company has differentiated itself as an innovative company that competitors find it hard to imitate due to its technology and heavy capital investments (Hitt, Ireland, and Hoskisson, 2013). When the economy takes a downturn the high cost of capital can have a negative impact on Porsche’s ability to acquire funds it needs to innovate and stay at the top of the industry in technology. The brand is exclusive with only a few diverse product offerings to a wealthier clientele. Though Porsche was an independent care maker for over 100 years, when the financial crisis hit a lack of capital led to Porsche being taking over and becoming a part of the Volkswagen platform (Hitt, Ireland, and Hoskisson, 2013). Though the VW platform gives Porsche a broad range of resources for both companies many may see it as a possibility of diluting the brand by expanding into sedan and SUV models. Porsche is seen as high quality sports car in a very...
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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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...(Porsche case) Introduction: For its first few decades, Porsche AG lived by the philosophy of Ferry Porsche, Ferdinand s son. Ferry created the Porsche 356 because no one else made a car like he wanted. They did no market research, had no sales forecasts, no return-on-investment calculations. None of that ,he very simply built his dream car and figured that there would be other people who share that dream. So, really, Porsche AG from the beginning was very much like its customers: an achiever that set out to make the very best. But as the years rolled on. These are challenging questions to answer; even Porsche owners themselves don't know exactly what motivates their buying. But given Porsche s low volume and the increasingly fragmented auto market, it is imperative that management understands its customers and what gets their motors running. The problem: The absence of real strategy, market research,sales forecasting and the absence of vision and taking the risk of changing segmentation strategy, . They considered these entry-level models to be cheap and underperforming. Most loyalists never really accepted these models as real Porsches. In fact, they were not at all happy that they had to share their brand with a customer who didn t fit the Porsche owner profile. They were turned off by what they saw as a corporate strategy that had focused on mass over class marketing. This tarnished image was compounded by the fact that Nissan, Toyota, BMW, and other car manufacturers...
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...Porsche Consulting – THE MAGAZINE ThREE STEPS To AN EFFECTIvE STRATEGY “Of course we have a strategy,” is the answer any business leader would give when asked whether he or she has set mid- to long-term goals. Our captain of industry may even have his or her own strategist. And the strategy can surely be read somewhere; it’s been summarized in a presentation and announced to staff. but is that enough? porsche consulting’s observations have shown that many companies’ strategies do not have the desired effects. poor implementation is the most frequent cause. “Employees, in particular those on the lower rungs of the hierarchy, are not involved enough in implementation,” says Dirk pfitzer, a partner at porsche consulting. In many cases, poor communication is at fault. And: “Resolute and continuous control quickly falls by the wayside,” adds principal Fabian piontek. porsche consulting demonstrates how to develop an effective strategy in three steps. 60 Porsche Consulting – THE MAGAZINE STeP 1: CoRPoRaTe STRaTegy The company needs to define its vision and mission for the company as a whole as well as objectives in the customer, finance, employee, and market dimensions. The product strategy and core and cross-departmental strategies are then derived from the overarching company and brand strategy. market Sales vISIon/mISSIon STRaTegIC objeCTIveS Customer Customer enthusiasm Finance Return on capital employees Top employer and partner CoRPoRaTe STRaTegy...
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...Porsche: Guarding the Old While Bringing in the New Porsche: Guarding the Old While Bringing in the New Team 5 Principles of Marketing February 2014 Team 5 Principles of Marketing February 2014 1. Develop a 1-2 paragraph summary of your assigned Company. When a person hears the name Porsche, immediately the word elite comes to mind, along with a few other words such as success, money, and speed. These terms are exactly what the owners of this one of a kind sports car are trying to obtain. In 1931 Ferdinand Porsche entered the car making market. For the first 20 years of business Ferdinand focused on his famous Volkswagen Beetle. It wasn’t until 1950 that the Porsche sports car came into the eyes of this rising businessman. The first Porsche cars, the 911 and 356 models, were unique and fast with their motors located in the back of the vehicle. This car screamed the words expensive and luxurious. Porsche purchasers dropped an enormous amount of cash to own one of these beautiful cars. Owners were a limited group of entrepreneurs and part of a small group that viewed their vehicles as an extension of themselves, much like their expensive suits and watches that were thousands of dollars. Porsche buyers enjoyed being “special.” Since Porsche was such an expensive car that caught the attention of a select group of buyers, the company began to struggle with the idea of expanding its market to a broader horizon. Ferdinand Porsche decided to create a cheaper model...
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...Porsche - SWOTs Strengths • High brand presence and reputation across the globe – popular luxury sportcars brand, preferred by rich, elite customers. • Superior product quality & reliability – in March 2010, J.D. Power and Associates ranked Porsche as providing the best long term reliability of any brand in US. Also, Porsche production plant in Stuttgart was hailed as “the best car factory in the world.” • Competitive advantage: Innovation & Expertise – with over 50 years of racing experience, Porsche has accumulated a wealth of technological expertise and employs bright minded engineers. They continue to provide difficult to imitate technologies such as seven gear PDK system. • Model offering provide wide selection for many needs and different stages of life. Price range and performance varies greatly among the five model lines (the Boxster, the Cayman, the 911, the Panamera and the Cayenne) and their respective trim. Weakness • Diversification into SUVs and Sedans might dilute Porsche brand name and ultimately destroy the distinct Porsche image, as this departed from the historic Porsche image (traditional two-door sports car models) Opportunities • Increasing fuel prices – consumers are extremely price sensitive. • Changing to customer needs – fighting the stereotype of a gas-guzzling automobile segment. Porsche re-engineered many of its offerings to provide higher gasoline efficiency. E.g. 911 Turbo, CArrera, Boxster...
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...Porsche: The Cayenne Launch Problem Statement At the time of the case, Porsche had just introduced the Porsche Cayenne, the brand's first SUV. As this is Porsche's first classification development, Porsche must consider how to position the Cayenne while saving its brand value, which has verifiably been connected with its sports cars. This issue has showed itself in online consumer-to-consumer discussions, for example, those on Rennlist, which have to a great extent been negative toward the Cayenne. While senior administration is not unequivocally concerned, Porsche must decide the amount of weight to put on the conclusions of its most steadfast purchasers, whether these assessments will contrarily influence potential Porsche buyers' affiliations and Porsche's image value, and the suggestions for Porsche's long haul system. Market Analysis The SUV market began to expand rapidly and developed all through the 1980's and 1990's, as they came to be connected with American-ness, and gave a different option for station wagons/minivans for homemakers and youthful experts. Macroeconomic elements, for example, low gas costs and a solid economy fuelled request from customers who sought to own a bigger, roomier, and effective vehicle. Organization Analysis Porsche works in the luxury car business. Preceding the introduction of the Cayenne, it concentrated only on luxury, superior sports cars. All through its late history, Porsche has...
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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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...[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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