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Porsche Market

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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 of his vehicle to appeal to a different class of people, a lower class, in the eyes of the faithful Porsche buyers. In 1970 the Porsche 914 was created. This car was considerably cheaper than the 911 and 356 models. The 924 and 944 models were also created. These cars were almost $20,000 cheaper than the 991 and 956 models. This did not sit well with the “special”, elite, original Porsche...

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