Porsche

Submitted by:
Vikram Mohite
Roll no-43
PGDM

1% and 12. Their profits are currently increasing and they have cash $ 1. Prices were dropped by 5. this demonstrates the quality of this cars. Boxster in the compact premium sporty car segment 3. so they made their high prices in 2013 to boost sales. and consulting. including Porsche Design Group. crossover utility vehicles. Porsche Engineering. become ‘cheap’. 1. The company was founded in 1931 by Professor Ferdinand Porsche in Stuttgart. Porsche designs. through time. and Porsche Consulting. However. 918 Spyder (latest addition) in the open-top super sport car segment Price Porsche is a well-known company which sells quality cars worldwide.76 million dollars. came down to $120. Porsche is a global market leader in the premium segment of the automotive industry currently the most profitable automotive brand in the world.997 but then. since they started the business has not stopped growing. When “Porsche Panamera S” was introduced to the market it had a price of $132.997. Cayenne in the midsize crossover utility vehicle (CUV) segment 5.9% which translated to dollars it is between $5500 . designing vehicles. and markets sports cars. 70% of all the cars ever built are still in the road. Marketing Mix of Porsche Product Porsche was founded in 1931. Germany building motors. 40% of their sales are in the United States. so they made their high prices. Cayman in the premium sport coupe segment 4. and automobile parts worldwide. Porsche also offers services through its operating divisions and subsidiaries. Macan (latest addition) in the compact CUV segment 6. manufactures. They slashed their prices in 2013 to boost sales. 911 in the midsize premium sporty car segment 2. Porsche first used skimming as a strategy.

were the customer goes to the licensee and the product is explained to him before buying it. Place Porsche offers their products all over their products all over the world. Porsche Distribution channel – Porsche has a direct distribution channel. Ferrari or Aston Martin and after a comparacent we could say that Porsche does not approach competition based pricing. It is clear that this pricing strategy was used as prices started high and then lowered. also used psychological pricing when discussing a price for its Panamera. . Based on age.090 for a Ferrari 458 and Bentley charges $228. they target 2 types of customers.997 is cheaper than $130. very cleverly.up to $36300. Their competitors are exclusive cars such as Bentley. China (31205 sales) and Germany (20638 sales) being the top country buyers. This company has Pride Inelastic Demand. Porsche. Their customers are medium-high class people.725 for a ‘Continental GT V8 S’. The car’s value was $129.000. with USA (42323 sales). Promotion Porsche target customers are not normal people with a right economical status. so a price change will result in a smaller or no change in demand as they are very exclusive cars which only some people are able to afford.997 so customers were trying to be tricked by thinking that $129. Ferrari charges $243. Therefore the selling of the product is done very quickly.

substantial. differentiable. they also use below the line promotion. Porsche advertises using media such as the TV therefore it uses Above-the-line promotion. descriptive elements and behavioral elements. The basis of market segmentation for Porsche involves dividing a market according to defined smaller easily defined group of consumers with the same wants and needs.000 cars. and actionable. psychographic. to increase customer enthusiasm and to sale over 200. Segmentation. Porsche segments markets based on five critical elements required to evaluate a segment. Descriptive elements include demographic. usage. . Although they did this. This improved their image and it was a way of promoting its business by having a better reputation. as the ones it has are loyal already.000 with segmented price points based on the model selected. different models with different prices have been created to suit all customers with a fair amount of money. Targeting and Positioning of Porsche Segmentation The price of a Porsche ranges from approximately $50. and geographic. They are known for donating $2. accessible. however they have intended to use money off deals by decreasing their “Porsche Panamera 4S” by 15% in 2014. However. Porsche identifies segments to target using two variables including.5 mill to the Japan Earthquake in 2011. and benefits. so. These elements include ensuring a market segment is measurable. Porsche doesn’t need to incentive customers.Young 20-25 year olds and mid-30 to 40’s business man. sales stayed as predicted. By 2018 they want to be market leaders. Behavioral elements include individual responses to brands.000 to $845. They also promote their Porsche Panamera S in magazines and by direct mail.

lifestyle. and social class. occupation. Porsche uses tennis star Maria Sharapova as a spokesperson to engage a younger female audience.Demographic Demographic segmentation is a form of market segmentation involving dividing a market on the basis of descriptive elements. Porsche provides an example of an automotive icon focusing on demographics using age and gender. Psychographic Psychographic segmentation uses psychology to increase understanding of consumers’ wants and needs. and 15% female. The typical Porsche owner is 40 years old and up with Porsche targeting the 25-54 age demographic seeking a slightly younger audience with the “Engineered for magic. targets women with an image of a mother in a Porsche 911 in front of a school with the text reading school bus. in part. Targeting a Younger Audience and Females The age demographic rose from an average age of 48 in 2007 to an average age of 51 in 2012. The same demographic can possess different behavioral elements. every day” campaign.000. gender. such as psychology. . Demographic segmentation is based primarily on income. personality traits. The “Engineered for magic. includes a college graduate. 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. Demographic data provides Porsche with a distinguishable way to measure variables of a market estimating the market size and the media to use to reach the market segment. and values to gain deeper insight of the consumer. every day” campaign. age. The demographic of the Porsche owner. household income over $100. Porsche uses a psychographic segmentation approach dividing the segment based on behavioral elements. education. 85% male. Porsche’s targeted marketing efforts focus on reducing the average age of the Porsche owner and increasing the number of female owners. Additionally.

Porsche has added another profile consisting of individuals enjoying a sporty vehicle for daily use by women and younger drivers with the latest marketing campaign. includes an individual from old money (blue blood).  The proud patron’s owner profile sees a Porsche as a trophy considering it a reward for hard work with ownership as the main goal not being noticed. Geographic Porsche uses a traditional geographic segmentation approach grouping markets based on countries. . Porsche varies the product mix offered by dealerships within each region. In the United States dealerships are located in major cities with the manufacturer dividing the market into four regions (north. has the attitude a car is just a vehicle and not an expression of a person’s personality. northwest). As an example.  The fantasist profile sees the Porsche as a form of escape and does not care about impressing others. states similar to other worldwide automotive brands. “Engineered for magic.  The top gun profile consists of an ambitious and driven individual who cares about power and control expecting to be noticed. regions.  The elitist profile.  The bon vivants profile consists of thrill seekers and jet setters with the Porsche as a means of excitement. continents. south. the dealers in the warmer south and southwest regions offer a higher percentage of convertibles in the product mix versus the north and northwest regions in the United States with marketing following suit. southwest. Porsche is a global brand with dealerships located on every continent in major cities. 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. every day”.

The introduction of the Cayenne has resulted in a vehicle that accounts for half of Porsche’s profits. Porsche launched the Cayenne creating the first sport utility vehicle with luxury and high performance. Porsche is trying to change the perception that a Porsche is an everyday vehicle appealing to a larger audience to increase sales. every day” campaign uses a niche concentrated marketing approach tailored to change position slightly. Porsche with the “Engineered for magic. Porsche’s introduction of the Cayenne created a new market segment in an attempt to expand the brand. Porsche targets consumers at differing performance and price levels in the premium sport car and CUV market segment. In 2009. The Panamera is the first of its kind creating a new segment of the four-door luxury sport car. . Market Targeting Market targeting involves Porsche evaluating the viability of each market segment and deciding which segment or segments to pursue (target). Porsche launched the 2010 Panamera a four-door sport coupe based on the market research department identifying a need for a sporty four-door that drives like a sport car. The Panamera and Cayenne have proved to be effective brand extensions appealing to a wider audience by offering unique product offerings.Creating New Segments In 2003. Porsche uses a hybrid market targeting strategy focused on a large share of the premium sport car and sport CUV segment using a finely tuned marketing mix based on marketing messages tailored to Porsche’s psychographic segmentation. Porsche’s effort to move outside of the sport car niche with the Cayenne and Panamera product launches have stimulated demand resulting in increased sales for the brand.

Cayman. price. The Boxster. 911. . Porsche positions itself as a high priced. quality. Porsche focuses on the premium (luxury) segment with sport cars (five segments) and crossover utility vehicles (two segments) providing the consumer with a frame of reference for the company. and 918 Spyder provide the vehicles traditionally associated with Porsche. and use or user to maximize the brand. The Porsche brand is a lifestyle brand because of its legendary status and attributes associated with their products. exclusive sport car.Positioning Porsche offers products of the highest quality for a premium price with various price points for the products in the Porsche lineup. Porsche achieves the ultimate goal of locating a brand in the consumers’ mind differentiating it in terms of attributes or benefits. high quality. Porsche offers a distinct product in each vehicle segment.