...demographic rose from an average age of 48 in 2007 to an average age of 51 in 2012. Porsche’s targeted marketing efforts focus on reducing the average age of the Porsche owner and increasing the number of female owners. Porsche provides an example of an automotive icon focusing on demographics using age and gender. The “Engineered for magic, every day” campaign, in part, targets women with an image of a mother in a Porsche 911 in front of a school with the text reading school bus. Additionally, Porsche uses tennis star Maria Sharapova as a spokesperson to engage a younger female audience. The results in the last two years indicate a growth from 8% to 15% in female purchasing the Cayenne CUV and Panamera four-door sport sedan primarily. Psychographic Psychographic segmentation uses psychology to increase understanding of consumers’ wants and needs. Porsche uses a psychographic segmentation approach dividing the segment based on behavioral elements, such as psychology, lifestyle, personality traits, and values to gain deeper insight of the consumer. The same demographic can possess different behavioral elements. Customizing Messages to Specific Psychographic Profiles Psychographic profiling provides Porsche with the ability to customize the messaging to target the specific psychographic profiles developed by Porsche. The top gun profile consists of an ambitious and driven individual who cares about power and control expecting to be noticed. The elitist profile, includes an individual...
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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 : 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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...decision process of a traditional Porsche customer. Its owners see it as a car to be enjoyed, not just used. Most Porsche buyers are not moved by information, but by feelings. A Porsche is like a piece of clothing, something the owner wears and is seen in. They develop a personal relationship with their cars , one that has more to do with the way the car sounds, vibrates, and feels than with how many cup holders it has or how much cargo it can tote. They admire their Porsches as machines that perform without being flashy or phony. People buy Porsches because they enjoy driving. 2. Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or Panamera customer. Traditional Porsche buyers want a two door sports car that nobody sees on a regular bases but as for the Cayenne and Panmera, these vehicles are the relaxed drivers who still want the speed and the luxury. First, a category of Porsche buyers has moved onto life stages that have them facing inescapable needs- they need to haul more people and stuff. This not only applies to certain regular Porsche buyers, but Porsche is again seeing buyers enter its dealerships who otherwise wouldn’t have. Only this time, the price points of the new vehicles are drawing only the well heeled, allowing Porsche to maintain its exclusivity. These buyers also seem to fit the achiever profile of regular Porsche buyers. 3. Which concepts from the chapter explain why Porsche sold so many lower-priced models...
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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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...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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...------------------------------------------------- 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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...Introduction I will be writing a report on a organisation selected by myself to illustrate my understanding of how the completive environment and internal capabilities of the chosen company have combined to influence their choice of strategies. The organisation that I have chosen to look at is Aston Martin, a globally known luxury car manufacturer. I will be looking to delve into the company’s research to find information about their market share, who their target market’s are, their company secrets and also Aston Martin’s trend performances. I will finish the report with a SWOT analysis for my chosen company which in turn will help me identify any management issues that Aston Martin’s may want to address to help keep them ahead in the motoring industry. History Aston Martin was founded in the year 1914 by two people named Robert Bamford and Lionel Martin. Lionel’s surname ‘Martin’ was used as part of the now famously known car brand, and the cars first part of the name ‘Aston’ came from a hill climb in which they both competed. Aston Martin has had success with many cars that the have built such as the DB1 in 1948, the DB2 in the year 1951, but perhaps the most famous car Aston Martin has made is the DB5, which shot the luxury sports car manufacturers to fame when it featured in the James Bond film Goldfinger in 1964. The car organisation isn’t without its faults however, nearly going bust in the year 1925, but was revived the following year. Augustus Cesari...
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...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 increasing its U.S. market share from 2 percent to 6 percent by selling 800,000 vehicles annually in the United States. By 2018, VW also plans to export 125,000 vehicles from North America to Europe. VW's plans include large expansions at its Puebla, Mexico, plant. ...
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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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...with the German economy in a depression and the German auto industry composed of mostly luxury vehicles, the Germany people couldn’t afford any of the cars. This opened a new market for the “peoples’ car” in Germany. Volkswagen, which means “peoples’ car” in German, wanted to produce good quality cars that were affordable to the people. The car for the people was a blue ocean market in Germany, and the company quickly grew. Despite WWII and the effects it had on Germany and its economy, Volkswagen survived and soon became a symbol of hope for the German future. In 1969, Volkswagen merged with what is now called Audi, to grow and expand the company. As Volkswagen grew and became more profitable they continued to expand globally and acquire new companies becoming the Volkswagen Group. The Volkswagen Group consists of Volkswagen, Audi, Bentley, Lamborghini, Bugatti, Ducati, Porsche, Suzuki, Skoda, SEAT, Scania, and MAN. This once small German car company for the people is now comprised of several companies, making Volkswagen one of the most global, highest producing, and most profitable automobile manufacturers amongst its competition. Compared to the industry growth of 8.6%, VW is growing at 9.1% and has plans to keep expanding. Because of their larger growth, they will be able to capture more of the market share. Volkswagen has recently become significantly more profitable,...
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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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...True to the Faithful Ashford University STAYING TRUE TO THE FAITHFUL 2 Abstract The luxurious automobile company, Porsche, attracts a very rare breed of consumer who seeks not only a car but also a companion. Porsche possesses the unique ability to cultivate a bond between car and driver that surpasses nearly every other auto company today. However, in 1970, Porsche unintentionally damaged its relationship with its highly exclusive loyalists through foul judgment, and until very recently, has been fighting to salvage its tarnished image. The company’s misfortune illustrates the complexity of brand building and consumer decision making as well as the importance of understanding consumer behavior. STAYING TRUE TO THE FAITHFUL 3 Staying True to the Faithful Analyzing and understanding Porsche consumers is a complicated task that not even the company has yet to master. Buyers have proven to be independent, exceedingly hard working individuals who set very high expectations of themselves. They are most certainly not thrifty, but they expect their expensive purchases to be backed by exceptionally high quality. I have observed first hand the thought process that is put into buying a Porsche because my father purchased one about ten years ago. He appreciated the aggressive, directness of a car that ...
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