80 PART! + CONSUMERS, MARKETERS, AND TECHNOLOGY Porsche “How Porsche Created New Relevance for a Revered Icon” eee ite sce Contributing Agencies: Struck Axiom/OmnicomMediaGroup Strategic Challenges ‘Was America’s luxury sportscar category on the ropes? With the uncertain economic times, it seemed tno one needed a sports cax and it was no longer publicly acceptable to shaze a longing for one—Iet alone the sportscar ofall sports cars, a Porsche. ‘This was the problem weighing on the minds of the Porsche team in 2010. Inthe larger sports car category, which was down S6%, Porsche was experiencing precipitous declines. Since 2007, sales of the 911—Porsche's revered icon, and the heart and soul of the brand—were down 54%, Not only were 911 sales down dramatically, sales of all two-door Porsche sports cars (including the 911, Box- ster, and Cayman) had fallen an unprecedented 58%. Thus, the loss of relevance and diminished road presence of the 911, Porsche's flagship model, had wide reverberations that strongly affected the very identity of Porsche. ‘The key challenge: Figuring out how to sella product that's synonymous with success and status daring a time when affluent consumers were examining, reexamining, and justifying each and every purchase, ‘The challenge was exacerbated by several factors. Porsche had no new product to generate buzz. In fact, the 911 was in the last year ofits current model eyele, and the new 911 model, the Type 991, had already been publicly announced and was eagerly anticipated by Porsche enthusiasts. Those who were interested in buying a new 911 were on the sidelines, waiting for the new model, and some dealers were taking orders. To meet its aggressive sales goals, Porsche knew it had to reach beyond its core enthusiasts, and establish brand relevance with a larger audience, many of whom had never ‘owned or considered a Porsche before. Porsche intended to sell its current $80,000-plus vehicle with- ‘out any major promotional or pricing programs, and with a communications budget that was half that ofits closest competitor. Objectives 1. Change Brand Perceptions: Within the challenging economic environment, the company had to make the Porsche 911 and mid-engine models (Boxster and Cayman) relevant and worth their price. 2. Dealer Lead Generation: With the 911 sales down S4%, people weren't even putting Porsche sports cars on their shopping lists, and dealers were running low on leads. Porsche had to signifi- cantly increase purchase consideration and “find a dealer” requests on its website. 3. Sales: With the new 91 model going into production, the company needed to increase existing 911 sales and ultimately sel the remaining models. To do this, ithad to broaden its audience and create new brand relevance—reaching both men and women, many of whom had never even considered a Porsche, Insights Porsche assumed that for those who could afford it, the economic dawntum had made owning a Porsche socially unacceptable. People didn't want to pull up to their driveway in a shiny new sports car, for fear of looking insensitive to all that was going on around them, including neighbors and Iiends who might be struggling financially. ‘This assumption was wrong. Potential customers weren't aftaid to spend the money, but the eco- nomic times were dictating how they spent it. “I respect and like the 911. I even test-drove one about {five years ago before I bought my Mercedes. It's definitely a great sports car, but it didn't have the luxury touches Iwas looking for. It felt 100 impractical to drive every day—I's a great third car, but nota daily driver” (quote from a customer) Buying a Porsche wasn't socially unacceptable; it was personally unjustifiable. “If bought a Porsche, when would I actually drive it?” “Now isn't the time to buy a weekend toy (quotes from cus- tomers). Customers perceived Porsche as an epic sports carCHAPTER 2 + SEGMENTATION, TARGETING, AND POSITIONING 81 ‘This perceived epic sports car status ofthe 911 Porsche kept people away from showrooms and resulted in dated brand images. The timeless shape of the 911 had slowly evolved over the years, ‘but with no radical exterior changes to cue reconsideration, many prospects assumed that the car was more for racing than daily driving. They thought the interior of the cars had nothing more than three pedals and a gear shift, resulting ina rough and uncomfortable ride they wouldn't want to drive daily, making it hard to justify spending more than $80,000. Even though they wanted a sports car, ‘what they needed was one car that could comfortably fill multiple roles—and because they didn't see Porsche as this type of car, they compromised. They settled for luxury cars with less magic but more versatility, even calling them their “compromise cars.” Porsche's research studies discovered that few people realized thatthe 911s are built to be driven every day, year round, They are not precious, but solid and substantial. The company needed to ex- pand the Porsche 911 and mid-engine driving occasions and let people know that Porsches are com- fostable, functional, and intended to be driven every day. The Big Idea Porsches are amazing sports cars designed to be driven hard every day, making everyday driving ‘more magical. Questions 1. Before you read this case, did you believe that Porsche cars were meant tobe driven everyday or only for special occasions? Explain your answer. 2, Since it was founded, in 1931, the core of the Porsche brand was “outstanding engineering, tradition, and versatility” How does the “everyday magic” campaign fit within the core’s three elements? ‘Was the campaign designed to reposition the Porsche 911? Explain your answer Although not stated overtly, the campaign targeted fwo segments. Which ones? Explain your choices. 5, Find three print ads for the “everyday magic” campaign (available online) and evaluate their per- suasive effectiveness. Do you find any of these ads “unrealistic?” Explain, 6, How would Porsche determine whether the campaign's objectives were achieved? Source: Bifie Worldwide, Etlie Showcase Winners. Reprinted by permission, Porsche is a 2012 Silver Effie Winner. For information on Effie's programs for students, vist the Collegiate Effies at www. offic. org