...(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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...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 which has been recognized by the consumer in the stage previous to this one. In this case the product that would satisfy...
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...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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...Case summary (Porsche) Porsche is a unique company. It has always been a niche brand that makes car for a small and distinctive segment of automobile buyers. Porsche owners are as rare as their vehicles. For that reason, top managers at porsche spend a great deal of time thinking about their customers. Since its early days, Porsche has appealed to a very narrow segment of financially successful people. These are achievers who see themselves as entrepreneurial. They buy Porsche because the car mirrors their self-image. Porsche owners see it as a car to be enjoyed not just used. Most porsche buyers are not moved by information but by feelings. They develop a personal relationship with their cars. They admire Porsche because it is a competent performance machine without being flashy or phony. As the year rolled on, Porsche management became concerned with a significant issue that the quirky nature of the people who buy Porsches might just run out of them. For that reason Porsche started selling many lower priced models in 1970s and 1980s and recognized as a numerous brand. Although porsche got huge success but Porsche faithful carried foul. In fact, traditional Porsche customers were unhappy that they had to share their brand with a customer who didn't fit the porsche owner profile. For that reason Porsche not only started losing its faithful customers but also entered into a fierce competition with competing brands and turned into bankruptcy by 1990. But Porsche wasn't going...
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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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...Porsche Agrees Sale to Qatar; Merger with VW May Complete Before 2011 17 Aug 09 http://www.ihsglobalinsight.com/SDA/SDADetail17491.htm The merger between Porsche and VW may be completed ahead of schedule, according to VW Group CFO Hans Dieter Poetsch, but questions are emerging about corporate governance over the process. IHS Global Insight Perspective Significance Qatar Holding will acquire a 10% voting stake in Porsche and 17% in eventual parent group VW Group as a result of its 7-billion-euro investment in the German giant. Implications VW and Porsche are still to enact their own capital increases, VW's will happen in the first half of 2010, whilst Porsche's plans are less concrete, but necessary to pay down the debt pile with which it is struggling. Outlook Questions over corporate governance have already been raised as the power to appoint record and reputation tarnished from the scandals of a few years ago, VW will confidence in its integrity with external investors. Porsche take a 17% voting stake in the Volkswagen (VW) Group as it acquires share options held by Porsche of the last remaining key parts of the merger, tentatively agreed last week (see Germany: 13 August 2009: VW, Porsche Tentatively Agree Merger Details; May Resurrect Auto Union Name). VW will purchase 42% of Porsche for around 3.3 billion euro by 2011, initiating a capital increase of 4 billion euro in preference shares in the first half of next year to fund the ...
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...Individual Case Analysis - Porsche 1) What are the most important general environment factors to be considered for the industry and the company and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors? • Technology – Neutral – Though Porsche is a high end car with a high desirability it is not a market leader in technology. It is not behind the market either. It does have very advanced engine and tractions systems, and Porsche’s patented Doppelkupplung, or double clutch. None of which is necessarily ground breaking. They did however purchase Volkswagen Groups and were able to acquire new technology which puts them at more of an advantage. • Demographic – Positive - Porsche is a luxury brand and is dedicated to selling high end products to those with the means of purchasing it. Porsche has acquired the majority of Volkswagen Group to gain market share in the lower-end luxury brands as well and to synergy in its own brand. Even with the poor economy, Porsche is excelling in sales to the upper class. 2) What are the most important of the five industry forces affecting the industry and the company and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants and incumbents? • Intensity of Rivalry Amongst Competitors – High – There are numerous competitors of similar market size which increases rivalry. This is a slow growth industry...
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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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...1) Analyze the buyer decision process of a traditional Porsche customer. Porsche is shortened version of Porsche Automobil Holding SE. It was founded by Ferdinand Porsche and it is a German holding company with investments in the automotive industry. Its products are luxury cars. Normally, the buying decision process includes five stages, which are 1. Problem/Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior. So according to the buyer decision process of a traditional Porsche customer we can definitely say that it is different from the others. Obviously, there is one particular reason for that: a traditional Porsche customer does not deeply analyze all five stages and jumps into purchase decision. He does not need detailed recognition, information search, and evaluation of alternatives. He makes the purchase based on his wants, the brand, and how the car is made. Going through those stages we can see following peculiarities. 1. Problem/Need recognition. A typical Porsche car buyer is a financially successful person that loves a challenge. They are hardworking people and set high goals in everything they do. These costumers separate themselves from the mass and feel attracted to exclusive sophisticated things and expect the cars that they drive in to satisfy this feeling and exclusivity. 2. Information search. In information search the consumer searches about the product which would satisfy the need which...
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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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...Marketing Examination (A Few Sample Questions) 1.We can safely say that when a customer’s purchase lives up to his or her expectations, the customer is experiencing this state of being. a. customer value b. self-esteem c. self-actualization d. customer satisfaction 2. This group of buyers share a particular need or want that can be satisfied through exchange relationships. a. segment b. target market c. market d. buying group 3. The marketing concept rests on which “four pillars”? a. customer needs, target market, integrated marketing, and profitability b. products, integrated marketing, sales volume, and competition c. customer needs, competition, sales volume, and profit d. product, price, promotion, and place e. customer needs, integrated marketing, profitability, and market focus 4. Which of the following statements best represents the societal marketing concept? f. We have developed a new, more convenient package. g. Target Corporation chooses to eliminate cigarette sales in their stores h. This product saves much more time for the consumer. i. Give the customers what they want. j. Sell at the lowest price. 5. Which is not true about the selling concept? k. It assumes that consumers must be coaxed into buying. l. It always takes into account the greater societal good m. Firms...
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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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...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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...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 cases, the test vehicles are put on rollers and run at a certain speed for a certain time, then at another known speed for another known period. The car's central computer can detect whether inputs match those expected in test conditions.” * “What does it mean for your health? The fumes can cause inflammation of the airways and worsen breathing for anyone. But NOx emissions can also react...
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