...BUSN 6150 – Advanced Marketing Management Porsche Canada: Selling Winter Driving Shuai Chen (Shawn), T00025213 1. What does a financial analysis of Rawlinson’s options reveal? Assume that Rawlinson has a $500,000 budget and Porsche dealers and Porsche Canada earn a margin of 15% each on its winter equipment. Winter equipment sale promotion is one of the most important events for auto companies. Following the assumption, Jasmin Rawlinson, the director of marketing for Porsche Canada, has a $500,000 budget for Porsche winter equipment sale promotion. According to the information that the article provided, there are approximately 24,000 Porsche owners in Canada. Rawlinson estimates that 30 percent of Porsche owners will be open to buy winter equipment in Canada; therefore, there are approximately 7,200 (24,000*30%) owners will purchase winter equipment. Although Rawlinson has a $500,000 budget for winter sale promotion, it includes $20,000 for new microsite expense, $50,000 for new winter equipment brochures cost and $50,000 for communication expense. Therefore, the total amount that would use for Rawlinson’s media options is only $380,000. Medium | Single Price ($) | Total Single Price ($) | Times | Total Cost($) | Newspapers | 1,300*12 | 15,600 | 3 | 46,800 | Direct Mail | (1,500/1,000)*24,000 | 36,000 | 1 | 36,000 | Radio | ((90+120)/2)*12 | ...
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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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...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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...Jasmin Rawlinson, Director of marketing, Porsche Canada is designing a marketing plan to position Porsche as all season luxury car against the consumer perception and usage behavior of it being summer-only car. The current fiscal year at Porsche has ended July 2009 and the marketing plan is for the next fiscal year. Rawlinson wants to encourage Canadian Porsche owners to use their cars in wintertime as well. If this were to successfully happen, Porsche would not only tap into a new segment of consumers hesitant to buy summer-only vehicle, also, there would be new product category for winter equipment, as sales of spares parts would increase due to vehicles being driven more often. This feat was challenging to achieve, as Porsche never had to do winter specific marketing campaign, low volume production with a limited marketing budget. Porsche has a prestigious history, good reputation and a positive brand image in the market. Having designed the Beetle in 1930s, it started selling cars in 1948. Porsche has a nice blend of car offerings in its product line. Its most popular car being 911, the design element of which has been retained over 46 years. In 2002, they added Sports utility vehicle Cayenne to their product line. They are planning to launch their first four door sports car Panamera. Financially, Porsche is placed very strong, with its net profits almost doubled from 2004 – 2006. Earlier, Canadian market was served by Porsche North America based in the U.S. They felt...
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...Case #2: Globalizing Volkswagen; Creating Excellence on all fronts Global Business Management Vaishnavi Vanawala Sai Teja Boddupalli November 28th, 2015 COMPANY ANALYSIS Administrative Heritage The Volkswagen Group is a Germany-based automobile manufacturer with its headquarters in Wolfsburg, Germany. It is one of the world’s leading automobile manufacturer and carmaker in Europe. In 1930, Ferdinand Porsche, an Austrian born design engineer set up his own vehicle development center and that was foundation of Porsche AG, a leading sports car marker. In 1938, the government laid the foundation of the factory in Wolfsburg. However, before the plant started car production, it was a wartime production of military vehicles and airplane maintenance. In 1945, the British military government assumed control as a temporary trustee for next four years. It ordered production of the Beetle car but the quality was below the standard. In 1948, Heinrich Nordoff, an engineer took over. He focused on improving the quality of the car and focused on exporting cars and by 1951 company was exporting to 29 countries. During 1950s the sale continued to increase, driven by strong export sale to over 100 countries. The completely knocked down (CKD) production sites were set up first in Brazil and Ireland and later in Australia and South Africa. In 1964, they opened another site in Mexico. As the sales of the Beetle were increasing rapidly, there was a necessity to establish new plants in Germany...
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...crisis of 2008–2010 was a part of a global financial downturn. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel stations. The Automotive industry has had a large outcome in production over the past 20 years. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement The Canada—United States Automotive Products Agreement, commonly known as the Auto Pact or APTA, was an important trade agreement between Canada and the United States. It was signed by Prime Minister Lester B. Pearson and President Lyndon B. Johnson in January 1965.[1] It removed tariffs on cars, trucks, buses, tires, and automotive parts between the two countries, greatly benefiting the large American car makers. In exchange the big three car makers (General Motors, Ford, and Chrysler) and later Volvo agreed that...
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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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...Table of Contents Introduction ............................................................................................................................................ 2 Volkswagen emission scandal ............................................................................................................. 2 Internal & External Impact of Volkswagen scandal ........................................................................... 3 1. Internal ................................................................................................................................... 3 2. Car Industry ........................................................................................................................... 3 3. Shareholder ........................................................................................................................... 4 Corporate Social Responsibility Report of Volkswagen .................................................................... 6 General Problem with Corporate Social Responsibility Report ........................................................ 8 Implementing Corporate Social Responsibility ................................................................................ 10 Conclusion ........................................................................................................................................... 11 Appendix .......................................................................................
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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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...UK Automobile Industry 1. Wikipedia : Primary categories : Sports and luxury end cars – Aston Martin, Bentley, Daimler, Jaguar, Rolls-Royce etc Volume Car Makers – Nissan, Honda, Toyota etc Commercial Manufacturers – Ford, Leyland, London Taxis International etc Back in 1950 , UK was the second largest car manufacturer and exporter after USA. Subsequently over some decades slowed down and was then ranked on the 12th spot with immense competition from nations like France, Germany and Japan\. Late 80’s many of the British marques were bought over by foreign companies 2. http://www.thisismoney.co.uk/money/cars/article-2524573/Can-motor-industry-continue-fifth-gear-race-ahead-2014.html The latest UK car manufacturing figures showed that 1,286,287 motors were produced in the first 11 months of the year, a rise of 5.4 per cent compared to last year with sales also up by an impressive 9.9 per cent. Of the five major European car markets – Britain, France, Germany, Italy and Spain – only Britain has seen growth in the new car market this year. The rate of growth depends principally on when the car manufacturers pull back on the cheap credit that is currently pump-priming the market. If this cheap credit remains available throughout next year then there is an increasing risk of oversupply of new cars which could raise anxiety regarding a potential shock fall in used car residual values.’ Political Economic Payment Protection insurance payouts Cheap financing ...
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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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...PROJECT CASE STUDY OF THE VOLKSWAGEN NEW BEETLE [pic] MKTG Principles of Marketing TABLE OF CONTENTS Abstract Introduction Product concept Development of the Volkswagen New Beetle New Beetle adoption Marketing throughout the product life cycle Beetle brand Findings Conclusions Reference list Abstract *** “The Beetle is different, it makes you feel different. It is like a magnet”, - Volkswagen Chairman, Ferdinand Piech (Keith Naughton and Bill Vlasic, 1998) *** The present paper is the case study of the Volkswagen New Beetle from the marketing perspective. The thesis will analyze the product concept, and examine the New Beetle in terms of the concept in question. The purpose of the paper is to identify the issues in the application of theory with regard to the New Beetle as a product, describe the function and operation of this element of the marketing mix in Volkswagen, as well as to review the status of the identified issues in the reviewed company. The paper will consider the introduction of the New Beetle to the market and examine the respective phases of the product development. The thesis will also examine the adoption of the New Beetle as a product, overview the product lifecycle and the issues with regard to the Beetle brand. Overall, New Beetle is unique from other cars and can be the good example of the successful product development and adoption. The Beetle Brand...
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...observed within the two dynamic countries. Germany is one of the world leaders in the automotive industry, and is the biggest exporter within the EU for automotive vehicles by far. With a vast interest in the high quality products and excellent services that the Germany car industry has to offer they are benefiting from impressive figures as shown (Mccarthy, 2013) “Germany is the chief exporter by some distance. Europe’s economic powerhouse exported an impressive $245.4 billion worth of automobiles in 2011. During the same year, Germany reported $104.1 billion of vehicle imports.” This is bringing great amounts of wealth into the nation. By having seven of the world’s most popular brands (Audi, BMW, Ford Germany, Mercedes-Benz, Opel, Porsche, and Volkswagen) Germany are able to offer a vast range of luxury vehicles which are in great demand; this is allowing Germany to have massive growth within the car industry which shows no sign of decreasing. Within the 2009 financial crisis many sectors failed to make a profit or match sales from the previous years. But with Germany offering scrapping programs that allowed customers to scrap old cars with up to $3,000 euros towards getting a...
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...Bastian Steppin LDR:460 Professor: Dr. Kecia Edwards April 2014 IMPORTANCE OF EFFECTIVE TEAMWORK IN THE AUTOMOBILE INDUSTRY This paper focuses on effective teamwork and how important it is for the automobile industry. This Industry is very fast moving and one false decision can cost millions of dollars for the company and can cost thousands of peoples jobs in case that the company goes bankrupt. The carmakers are on search for every cent that they can safe during the research, development, and also during the production process of a new vehicle. Of course, there are different ways to cut the cost in this industry. One way would be to use cheap and low-quality metals, another way would be to use cheap and less skilled employees. However the problem with these two approaches would be that they would harm the quality of the final product. The customer usually wants a high quality car for a low price and also low using cost. Therefore, the idea of using cheap and low quality metals, and also assembling the car by using unskilled and cheap labor, would finally result in the loss of customers and therefore the loss of business. The right way to do it is to find the right balance between price and quality. This right balance is very important for the companies and effective teamwork helps them to accomplish this goal. If a company does not use its resources in the most effective way and also does not use effective teamwork, then it will eventually suffer from its decisions. For...
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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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