Pricing:
Overall, Porsche is strongly positioned to differentiate themselves and produce vehicles at a profitable, competitive price. Technology sharing with the Volkswagen group allows for efficient cost competitive production that should become even more efficient over time, and current assets help keep fixed costs down.
One major weakness at this point is the dilution of brand image. Although Porsche was saved from bankruptcy by the introduction of down-market or recession models such as the Boxster and Cayman, their success has been self sacrificing, and the brand is no longer valued as highly. This reduces the premium consumers are willing to pay for a Porsche product, although the decrease is presently minimal and is largely replaced with high engineering abilities.
However it is important to note that Porsche 911’s advantages in having a small, compact design and having the most fuel-efficient car may have a distinct effect on future markets three years from now, making their benefits more relevant in the future, and thus consumers would be more willing to pay a price premium for.
Porsche should focus on a pricing strategy of enhancing the sales mix, and apply the pricing strategy of layered pricing especially upon offering different versions of the 911 to different segments of the target market at different price points according to specific needs. However, this can be further augmented by increasing price while offering the same benefits. Applying this deep layered pricing strategy specifically to the 911 Carrera line would be most beneficial due to the fact that the economic wealth of typical buyers of the 911 cars are unaffected by economic climate changes and view price as an indicator of quality, which only means it makes sense for Porsche to increase price while offering the same benefits. This is because a price increase (which must be