Report on

Branding and International Marketing Strategy of

Porsche AG

Module title- Principles and Practice of Marketing

Module code- MOD003507
Student ID-
Executive summary

Understanding of marketing principles and practices with emphasis on branding and

international marketing strategies can be used to reflect the context of market expansion, a
strategic reorientation in existing market and development of the favourable perception of the
targeted consumers. However, the brand strategy can be attributed towards long-term
development and growth of a brand with an emphasis on effective positioning strategy that can
be used to differentiate. However, international marketing strategy has been pervasive in terms
of facilitating market entry and expansion which involves decision regarding minimisation of
risks through integrated international marketing mixes. These are complemented by extensive
consumer research and promotional strategies and brand recognition strategies to achieve desired
market position and excellence. The following report is related to Porsche AG. The emphasis is
given towards assessing current brand strategy from brand equity models, and international
marketing strategy related to Glocal theory. Moreover, international marketing mix for Porsche
is also reflected from the perspectives of standardisation and adaptation models within the
discussions.

Page | 2
Table of contents

EXECUTIVE SUMMARY----------------------------------------------------------------------------------------------------------------------- 2

TABLE OF CONTENTS------------------------------------------------------------------------------------------------------------------------- 3

1. INTRODUCTION---------------------------------------------------------------------------------------------------------------------------- 4

2. BACKGROUND REPORT ON THE CURRENT MARKETING STRATEGY OF PORSCHE-----------------------------------------5

3. ANALYSIS OF PORSCHE’S CURRENT BRAND STRATEGY--------------------------------------------------------------------------7

4. CRITICAL APPLICATION OF HOLLENSEN’S GLOCAL THEORY-------------------------------------------------------------------11

5. CONCLUSION------------------------------------------------------------------------------------------------------------------------------ 14

REFERENCES---------------------------------------------------------------------------------------------------------------------------------- 15

Page | 3
1. Introduction

The contexts of branding strategy and international marketing strategy have been substantial to
ensure competitive positioning for companies and brands in the international market. Moreover,
the reflection of research and strategic coordination can be used to enhance value proposition and
its delivery in sustainable manners (Smilansky, 2017). Moreover, brand performance and
repositioning can be used to enhance brand recognition that can be interrelated to improved
control over international marketing mix and financial performance. However, the strategic
implication can be interrelated towards other instances of business operation and strategy to
support the organisational goals and objectives in effective manners (Christodoulides et al.,
2015). The focus on assessment of current branding strategy can be targeted towards enhancing
current and future market position, which can be attributed towards international marketing
strategic implications to determine organisational effectiveness through coordinated and
integrated approaches.

Page | 4
2. Background report on the current marketing strategy of Porsche

Porsche AG is a German based automobile manufacturer, designer specialised in high

performance and luxury car segments. Mostly, Porsche’s products are related to sedans, SUVs,
sports cars and its services are mostly related to engineering, automotive financial services, and
investment management. The brand name is mostly synonymous with its design aesthetics,
quality and performance within the automotive industry on a global level (Okonkwo-Pézard,
2017). However, the global automotive market is increasingly becoming competitive due to
increasing concentration and interaction of large brands within existing markets of North
America, European regions and potential markets in China, Indian, other Asian markets and
African markets. The contexts of rising technological growth and economic growth in potential
markets and trends of environmental-friendly automotive systems have been substantial
opportunities within international markets. However, trade and nontrade barriers and competition
(Grünig, and Morschett, 2017).

Porsche’s marketing strategic objectives are nearly identical to its organisational objectives. The
company’s objective to achieve value generating growth through sustainable investment within
technologies and human elements, with a responsible approach to environment and society.
However, focus on customer relationship through inspiring approaches, brand experiences and
unique products have been in the core of marketing strategy along with its innovative business
practices (Schmid et al., 2016). The current STP approach or strategy is mostly oriented towards
a niche market of luxury and high-performance car segments. The focused differentiation
strategy has been in the core within Porsche to deliver innovative design, products and services.
High level of product quality and performance has been accompanied by premium pricing
implications (Magnusson et al., 2015). However, promotional aspects are mostly related towards
increasing customer interaction and experience enhancing activities and customer-focused
practices. The core concentration within North American markets has reflected within values and
expectation delivered by Porsche. The value-oriented customer focus along with innovation
focused design and performance has been coordinated in effective manners (Shende, 2014). The
product line up has been structured in a unique way to place Porsche in both luxury and high

Page | 5
performance car markets. This also enables the company to set the price accordingly to the
needs, demands and wants of customers matching with their purchasing capacity. Moreover,
positioning through behavioural instances has been critical in terms of increasing brand
attachment and engagement in versatile manners through measurable and substantial manners.
This has resulted in higher differentiation and accessible marketing strategies to be adopted by
Porsche to enhance value and customer satisfaction in effective manners (Neese and Haynie,
2015). The targeting implication through increasing visibility in every portion of selected market
segments have resulted in the positioning of Porsche as a lifestyle brand. However, in recent
years, Porsche has been focusing on the SUVs compared to its high performance sports cars
segments and these are strategically priced to attract the substantial level of customers. The
promotion strategy has been changed to sight extent for accommodating its social media and
online marketing strategies, which have been relatively having a major impact for Porsche’s
brand development extent. Porsche’s brand approach has been unique in terms of its branding
implications (Uggla, 2016).

Page | 6
3. Analysis of Porsche’s current brand strategy

The brand strategy can be attributed towards specific and long-term plan encompassing goals
and objectives to be achieved through effective brand management, development in identifiable
manners. In order to develop an effective brand strategy, the contexts of clear and consistent
approaches along with a focus on flexibility have been critical to a larger extent as it is directly
interconnected to consumers’ perspectives, behaviour and environmental elements. Even though
strategic purpose for branding can be either functional or intentional, the overall goals are to
ensure interconnection with the customer in constant manners on a personal level (Grünig, and
Morschett, 2017). The contexts of branding can be used to induce loyalty and involvement from
both customers and employees. Within the contexts of Porsche, the branding strategy is a
reflection of coordination within value, performance and authenticity in terms of innovation and
creativity. Moreover, the overall emphasis is to ensure competitive position and awareness for
Porsche for sustained growth (Schlegelmilch, 2016).

Brand recognition can be attributed towards the familiarity of customers to specific products and
services through interacting with logo, tagline, advertisements or packaging. Porsche, since its
inception, has been innovative and creative to accommodate the future trends and demands in
their product line up. Porsche has been in the 60th position within Forbes list of World’s most
valuable brand (Smilansky, 2017). As of 2017, it has the brand value of around 9.6 billion USD.
The design language, innovation, performance and unique customer experiences have led to the
development of effective brand recognition for Porsche within the luxury and high-performance
car segments (Datta et al., 2017). Brand identity can be attributed towards the organisational
efforts to express themselves to external parties and environment and is perceived by them in
favourable manners. Within Porsche, the drive towards innovation and novelty has led to the
effective development of its brand identity aligned with its organisational goals (Uggla, 2016).
Previously, it has been identified as a luxury sports car brand. Within the course of
modernisation, the current brand identity can be attributed towards the path to the digital and
electrical era. These have been in the core for the company strategic orientation and the overall
changes have been related to the identity can be interrelated to consistent, modern appearance

Page | 7
within distribution and communication channels and reinforcing Porsche’s value, even more, to
engage on an emotional level through a digital sector (Schlegelmilch, 2016).

Brand positioning can be attributed towards the conceptual extent tailored to be within the
customers’ mind through branding. This can be used to maximise competitive advantages and
relevancy to a larger extent. Porsche’s brand positioning has been reflective of the automotive
manufacturer’s high exclusivity and standards, technical excellence and superior design that
induce the excitement and thrill within customers mind in distinctive ways. Porsche has
positioned itself within the luxury and high-performance car segments with reflection to
emotional attachment through design language and marketing communication (Ruff, 2015).
However, recent implications have been related to the development of its digital marketing
competitive advantage in terms of engaging in social media and giving chance to consumers to
engage on a personal level. The extensive engagement on social media and interaction in
effective manners have provided a unique position that enables customers to perceive Porsche in
favourable manners. Moreover, Porsche’s efforts to demystify its products through designing
process and performance issues have rendered greater brand loyalty in terms of satisfaction and
security for customers (Okonkwo-Pézard, 2017).

Brand personality can be mostly related towards the personification of brands through defining
some human traits and characteristics interrelated to the brand. Within Porsche, the contexts of
personality can be attributed towards the unique product design and emotional attachment of its
owners representing an embodiment of performance into speed, success and values through
Porsche’s Intelligent Performance (Shende, 2014). This provides scope for consumers to
interrelate the brand equity through availing consistent traits like innovation, design,
functionality, performance, usability, exclusiveness, social status and acceptance expected and
enjoyed by targeted market segments. The coordination within these ultimately driving value
generation and growth for Porsche. These are also in the main contexts for driving the brand
affinity, enduring and valued customer relationship based on mutual trust and belief, for Porsche
through sharing common values, lifestyle symbol through experiential elements of Porsche
(Neese and Haynie, 2015).

Page | 8
 Figure- Keller’s brand equity model
(Datta et al., 2017)

The contexts of Keller’s theory of brand equity, also known as customer-based brand equity has
been related towards developing brand perception through experiential elements in positive
manners to enhance favourable instances regarding the brand. This requires following four-step
with six building blocks for ensuring successful brand orientation (Datta et al., 2017). The
contexts of brand identity for Porsche has been salient in terms of its effective understanding of
the markets and their value proposition is designed for a specific niche market segment with USP
like luxury, power and high performance. Within the contexts of brand meaning, the
performance through superior design, reliability, service and durability, efficiency along with
imagery characteristics like engagement and enabling customers for unique experiences have
resulted in unique brand personality for Porsche (Grünig, and Morschett, 2017). Porsche’s
product line up is consistent in terms of quality and superiority reflecting a higher level of
credibility that provides a better judgement for the brand and this has resulted in unique
responses from customers through excitement and social approval, a symbol of status and luxury.
Within the contexts of brand resonance, the brand has achieved deep connection with its
customers. Moreover, their social media strategies have resulted in a prime focus on ensuring
loyalty, attachment, having a sense of belongingness through strong brand loyalty for the brand
as a lifestyle symbol (Dalman and Puranam, 2017).

Aaker’s theory of brand equity is mostly related to the contexts of assessing brand awareness,
loyalty and connection with the brand for ensuring value generation in effective manners that

Page | 9
result in unique brand management (Smilansky, 2017). These provide scope for brand identity
development and ultimately leading to brand value generation in effective manners. The context
of brand identity within the model is a reflection of four perspectives like the brand as product,
organisation, person and symbol. Porsche has been transformed into a lifestyle brand with severe
attachment and engagement with customers at all level during and after the sale of its product
(Christodoulides et al., 2015). The North American design language and quality along with a
focus on creativity and innovation have resulted in unique product experience for Porsche’s
customers. Moreover, the organisational attributes like an innovative model of management,
creative engineering and design process, efficiency and unique product experiences have been in
the core of inducing a higher level of personality for the brand (Kotabe and Helsen, 2014). The
design language and performance have been a symbol of ownership for customers in unique
manners that reflects luxury attributes with functionality to a higher level. These have resulted in
the development of brand value with a higher level of loyalty through increased awareness and
competitive responses to market threats; awareness in terms of commitment, familiarity and
attachment; perceived quality through differentiation, pricing, effective distribution. These have
provided scope for brand awareness in terms of emotional attachment and other proprietary
instances for Porsche like a competitive advantage (Shende, 2014).

Page | 10
4. Critical application of Hollensen’s Glocal Theory

Within the contexts of Hollensen’s Glocal theory, the overall emphasis is given towards the local
market with the emphasis on adapting different marketing strategy on a local level to achieve
greater market penetration for global companies. Within the theoretical contexts, the overall
emphasis is mostly towards effective combining the global advantages towards local adaptation
process to enhance the marketing process to address local issues (Hashmi and Biesebroeck,
2016). The rise of competition on a global level has resulted in the adoption of geocentric
perspectives in different companies. However, within the contexts of automotive industry
especially companies engaged in niche market segments on a global level, it can be challenging
to adopt a Glocal approach to all the components of international marketing strategy. Glocal can
be used to increase the effectiveness of the international business through combining the cost-
effectiveness of global marketing with closer interaction through local marketing (Neese and
Haynie, 2015). Within the context of Porsche, the Glocal is mostly related to the adoption of
global strategies for brand expansion within global market and implementing the local marketing
strategies through tweaking little to the global strategies like bringing changes to promotion and
communication process for ensuring a higher level of concentration to local markets for better
performance and marketing excellence. However, the Glocal marketing strategy focuses on the
inclusion of region-specific key traits in a smaller portion for the delivery of same brand identity
and personality to all regional level (Magnusson et al., 2015).

Within the contexts of standardisation and adaptation models for international marketing and
approaches, the differences within marketing strategies like market entry, brand strategy and
strategic focus can be critical due to their impact within performance and success to a substantial
level. Standardisation has been related to the notion of convergence within technology and
culture due to the rapid development of internet and communication and increasing cultural
diversity (Datta et al., 2017). The lower extent of trade barriers, global orientation and
convergence of consumer perception and attitude across the globe have been significant.
Standardisation provides scope for single global marketing strategy and same marketing mix
across the regions that results in consistency in branding strategy and lowering the cost structure

Page | 11
(Schmid et al., 2016). However, adaptation approach conveys the importance of customisation to
a greater extent to match with regional level requirements and environment. The main
proponents of such concept are the differences within culture and customers’ demands, legal
structure and regulations, market condition and environmental constraints. Within the contexts
of standardisation, the benefits of economies of scale, faster operational setup and initiation,
unified global image and brand perception, effective communication (Grünig, and Morschett,
2017). However, there are some drawbacks like loss of advertising prudency and lower level of
reactive instances and flexible approaches and generation of negative attitude due to not
considering local needs. On the other hand, the adaptation model can be useful in terms of
successfully considering the local expectation and specification to a greater level, local brand
development, and customer interaction in effective manners for inducing greater attachment.
However, the higher level of cost, time consumption and strategic execution have resulted in
difficulties in adaptation model (Uggla, 2016).

International marketing mix can be attributed to the contexts of using different marketing
elements for achieving positive financial performance and market share within global or
international markets compared to domestic ones. However, the approaches to standardisation or
adaptation can be attributed to the strategic orientation of the organisation or brand
(Schlegelmilch, 2016). The standardisation can be attributed towards the providing the same
marketing mix in terms of specific elements to the global markets, whereas the adaptation model
requires for localisation of each element of the marketing mix in order to meet the local
demands, trends and marketing environment. The main components of international marketing
mix can be attributed towards product, price, place and promotion; and the extent of
standardisation or adaptation to these marketing mix elements are approached in the following
discussion (Dalman and Puranam, 2017).

The product within the mix is aimed towards meeting the need of targeted segments in constant
manners. Within Porsche, the product has been attributed with the contexts of standardisation
and providing the same quality of products irrespective of regional differences in effective
manners. The North American vibe in the design language and aesthetics of luxury, superior
quality and performance have been in the core of product element across different markets. The

Page | 12
higher level of brand recognition and reputation along with the superior engineering excellence
have resulted in premium pricing for all the product line up of Porsche (Smilansky, 2017).
However, the pricing strategy is also standardised across the regions and the application of
psychological pricing has been used to a greater extent. However, within the contexts of place
element of the marketing mix, Porsche has been relying on the simple distribution and
standardised procedures for delivery of unified brand recognition, identity and personality for its
customers across different regions. However, the focus on functional aspects of the automotive
brands has been in the core within Porsche (Ruff, 2015). These approaches reflect the North
American concentration for Porsche in its major markets. Moreover, the current focus on luxury
and lifestyle symbolic notion within Porsche for all of its market have resulted in distinctive
brand preferences to Porsche. The contexts of promotion within the marketing mix elements
have been critical to a larger extent due to Porsche’s increasing adoption of digital and social
media strategies to engage with customers across the global level (Christodoulides et al., 2015).
The same brand identity for Porsche across its regional markets has resulted in emphasis to the
effective communication process. The cultural differences and legislative regulation might
render some challenging instances to the customer interaction. However, the nature of targeted
customer segments and niche market focus have resulted in the development of unified messages
for different communication channels (Okonkwo-Pézard, 2017).

Within the contexts of Porsche, the application of Glocal strategy can be restricted to a larger
extent to their product category and targeted market segments. Moreover, the level of the cost
structure for adaptation models within Porsche’s international marketing mix elements can be
challenging to a larger extent.

Page | 13
5. Conclusion

The international marketing strategy is being increasing importance and drawing substantial
attention due to their impact on the market position at international level. Moreover,
development of the internet and technological aspects have resulted in significant importance to
enhancing branding strategies to cope challenges from international and domestic markets.
However, brand implications can be used to reflect organisational identity and culture in
effective manners with distinctive messages to targeted market segments (Kotabe and Helsen,
2014). Within the automobile industry, the coordination of branding strategic implications and
international marketing approaches can be related towards consistent and managed brand
developed with a reduced level of risks and conflicts for companies like Porsche.

Page | 14
References

Shende, V., 2014. Analysis of research in consumer behavior of automobile passenger car
customer. International Journal of Scientific and Research Publications, 4(2), p.1.

Hashmi, A.R. and Biesebroeck, J.V., 2016. The relationship between market structure and
innovation in industry equilibrium: a case study of the global automobile industry. Review of
Economics and Statistics, 98(1), pp.192-208.

Neese, W.T. and Haynie, J.J., 2015. The influence of comparative advertising on consumer
ethnocentrism in the American automobile market. Journal of Marketing Theory and Practice,
23(3), pp.321-337.

Magnusson, P., Westjohn, S.A. and Zdravkovic, S., 2015. An examination of the interplay
between corporate social responsibility, the brand’s home country, and consumer global
identification. International Marketing Review, 32(6), pp.663-685.

Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2017. How Well Does Consumer-Based Brand
Equity Align with Sales-Based Brand Equity and Marketing-Mix Response?. Journal of
Marketing, 81(3), pp.1-20.

Schmid, S., Grosche, P. and Mayrhofer, U., 2016. Configuration and coordination of
international marketing activities. International Business Review, 25(2), pp.535-547.

Grünig, R. and Morschett, D., 2017. Determining the Differentiation-Standardization Level of

the Market Offer. In Developing International Strategies (pp. 185-195). Springer, Berlin,
Heidelberg.

Uggla, H., 2016. Leveraging luxury brands: Prevailing trends and research challenges. IUP
Journal of Brand Management, 13(1), p.34.

Dalman, M.D. and Puranam, K., 2017. Consumer evaluation of ingredient branding strategy.
Management Research Review, 40(7), pp.768-782.

Schlegelmilch, B.B., 2016. Global Branding and Communication. In Global Marketing Strategy
(pp. 153-176). Springer, Cham.

Smilansky, S., 2017. Experiential marketing: A practical guide to interactive brand experiences.
Kogan Page Publishers.

Ruff, F., 2015. The advanced role of corporate foresight in innovation and strategic management
—Reflections on practical experiences from the automotive industry. Technological Forecasting
and Social Change, 101, pp.37-48.

Page | 15
Christodoulides, G., Cadogan, J.W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing Review,
32(3/4), pp.307-328.

Okonkwo-Pézard, U., 2017. The Luxury Brand Strategy Challenge. In Advances in Luxury
Brand Management (pp. 59-64). Palgrave Macmillan, Cham.

Kotabe, M. and Helsen, K., 2014. Global marketing management.

Page | 16