Porsche 911 Turbo/ Turbo Sdocshare04.docshare.tips/files/26329/263297398.pdf · ·...

Marketing ProjectPorsche 911 Turbo/ Turbo S

Made by: Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

Abstract Semester project: First part of a marketing plan of the Porsche 911 Turbo

Marketing Project Porsche 911 Turbo/ Turbo S


First part of a marketing plan of the Porsche 911 Turbo


First part of a marketing plan of the Porsche 911 Turbo/ Turbo S.

Marketing – GBE Via University Horsens – ELO 01/10 2014 Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

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Table of Contents

Introduction ................................................................................................................................................................ 1 Customer Analysis .................................................................................................................................................... 2 Competitor Analysis ................................................................................................................................................ 4

“PEEST” Analysis ........................................................................................................................................................ 6 “SWOT” Analysis ........................................................................................................................................................ 7 Sources……………………………………………………………………………………………………………………………………10 Marketing Strategy………………………………………………………………………………………………………………….11 Marketing Mix...................................……………………………………………………………………………………………..12 Future Trends.…………………………………………………………………………………………………………………………13 Source list..................................................................................................................................................................14


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Introduction In 1931, Ferdinand Porsche founded Porsche, with main offices in centre of Stuttgart in Germany. At the beginning Porsche didn’t produce any cars, but offered motor vehicle development work. In 1934, Porsche got its first assignment from the German government, which was to design a car for the people. This task resulted in the Volkswagen Beetle, one of the best known and most successful car designs of all time. After the success with the beetle, Ferdinand Porsche began to design his second car with his son, Ferry Porsche. For this new car they used the same engine as for the Beetle, but gave it a completely new design, which resulted in the Porsche 356 - a former 911 model. The Porsche 911 followed by the Porsche 356, which because of its recognizable shapes, is the most well-known Porsche model of all time.

When Porsche started selling the official 911 Turbo back in 1975, it was as powerful and as high tech car Porsche was willing to sell to the public. Its turbo technology, derived from their work in Can-Am and Le Mans racing competition experience was so groundbreaking that Porsche had to put it in the car's name. The vehicle was extremely difficult to control and people started calling it the ”Widowmaker”.

Porsche wisely realized this problem and adjusted the following Turbo models. The following models were toned down and more finely adjusted within the handling, agility and engine departments. Despitethis the outright speed had been increased. This provided a better marketing proposition to sell to customers.

In 1992, Porsche introduced the Turbo S as a package and again in 1997.By that year Porsche put out the Turbo S as a model in much the same form and shape as the current Turbo S model. More boost, power, wings, aerodynamic elements, carbon fiber and expensive detailswere made available to customers. It was an extreme model of an already exsistingextreme car (911 Turbo). Thus, only 183 cars were sold in the early beginning, as "RM Auctions" reports.

The reason why we have chosen to work with the Porsche 911(certainly 911 Turbo/ Turbo S) model is that it is the crown jewel of the current line of Porsche. The Porsche 911 has made Porsche to what it is today, and has since 1963 been the identity of the Porsche brand. The most powerful version is the 911 Turbo/ Turbo S model, which we will be investigating in order to show key reasons why Porsche has settled its name in the mind of its customers by applying its own marketing strategy towards global market.

http://bit.ly/RMe6W9

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Marketing – GBE Daniel Bleher, Per Hougaard, Brendan Finn and Alexander

Customer analysis Costumer profile If we look 10 years back in time, the averagecostumer who would buy a new Porsche typically 911 Turbo/ Turbo S model buy it because he would be looking for a highthen, the main value the costumer would get from buying a Porsche, would be elite status. In 2011 Porsche launched a new campaign to broaden its target market. The campaign was called“Engineered for Magic. Everyday”. 2011became a record-breaking Porsche with over 100,000 cars sold worldwide. However, it should be said that themodels that increased in sales were not the sports cars - neither any model from 911 range,Boxster S or Cayman S, but maSUV model, Cayenne, and the luxury fourdoor sedan, Panamera. Because of this new campaign we can create market segmentation for Porsche, and what they emphasize. They have gone from focusing on fulfilling the elite (people for who a car is simpmatter the money) and the race enthusiast’sThe everyday users are not only businessmen, but also familywho enjoys sport cars for daily use. “Clients of our Porsche Exclusive cars are experiences with Porsche. This was especsays Ingo Frenkel, Director of the Porsche Exclusive Several thousand Porsche Club members from purchase one of the limited edition cars.

Everyday user

Via University Horsens – ELO Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

If we look 10 years back in time, the averagecostumer who would buy a new Porsche typically 911 Turbo/ Turbo S model would be a mid-aged male (35-55 years old) who mainly would

looking for a high-performance, exclusive and high quality sports car. Back then, the main value the costumer would get from buying a Porsche, would be elite status.

In 2011 Porsche launched a new campaign to broaden its target market. The campaign

ngineered for Magic. Everyday”. year for

ver 100,000 cars sold worldwide. However, it should be said that

that increased in sales were not er any model from 911

but mainly the luxury four-

we can create market segmentation for Porsche, and what they emphasize. They have gone from focusing on fulfilling the elite (people for who a car is simp

enthusiast’s needs, to dealing with the everyday user. The everyday users are not only businessmen, but also family members, women and younger drivers who enjoys sport cars for daily use.

our Porsche Exclusive cars are also brand ambassadors who like to talk was especially visible among the twelve buyers of t

ector of the Porsche Exclusive Customer Center in Zuffenhausen. sand Porsche Club members from around the world had vied for the right to

purchase one of the limited edition cars.

0

50000

100000

150000

2007 2008 2009 2010 2011

Porsche WorldAnnual sales

Porsche Market

Elite

Fans

Race enthusiasts

Everyday user

01/10 2014

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If we look 10 years back in time, the averagecostumer who would buy a new Porsche 911, and years old) who mainly would

nd high quality sports car. Back then, the main value the costumer would get from buying a Porsche, would be elite status.

we can create market segmentation for Porsche, and what they emphasize. They have gone from focusing on fulfilling the elite (people for who a car is simply a car no

dealing with the everyday user. women and younger drivers

d ambassadors who like to talk about their buyers of the 911 Club Coupes,”

enter in Zuffenhausen. around the world had vied for the right to

2011

Porsche World-wide Annual sales

Porsche World-wide Annual sales

Marketing – GBE Daniel Bleher, Per Hougaard, Brendan Finn and Alexander

Target market segmentation After 2011, the Porsche 911 not only became attractive as an women. To get closer to their new target market, they have integrated some of the basic consumer valued features such as:

Bluetooth User-friendly navigation systems Cup holders Comfort

Still it is mostly mid-aged men with a high income who are buying the 911A typical profile of a 911 customer could be:

Man between 35-55 years old. High ranked business profile. Costumer value is still high-performance, exclusive and high quality sports car that gives status,

but also can be used as an everyday car.

Gender of 911 Turbo/ Turbo S

Via University Horsens – ELO Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

Target market segmentation: Porsche 911 model range (included Turbo and Turbo S model)

After 2011, the Porsche 911 not only became attractive as an all-around car for men, but also for To get closer to their new target market, they have integrated some of the basic consumer

friendly navigation systems

aged men with a high income who are buying the 911 Turbo/ Turbo SA typical profile of a 911 customer could be:

55 years old. High ranked business profile.

performance, exclusive and high quality sports car that gives status, but also can be used as an everyday car.

Women15%

Men85%

Gender of 911 Turbo/ Turbo S customer

01/10 2014

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Porsche 911 model range (included Turbo and Turbo S model)

car for men, but also for To get closer to their new target market, they have integrated some of the basic consumer

Turbo/ Turbo S.

performance, exclusive and high quality sports car that gives status,


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Competitor analysis Nowadays the worldwide automotive market is highly competitive. Porsche 911 Turbo/ Turbo S faces strong competition from automotive manufacturers in its market of a high performance sports car segment. The competition among various auto players is likely to intensify in light of continuing globalization and consolidation in the worldwide automotive industry. On the other hand, Porsche has made it feasible with its core model - 911 Turbo/ Turbo S compete in a market segment where relatively few automakers can compete. The factors influencing competition include product quality and features, the amount of time required for innovation and development, pricing, reliability, safety, fuel economy, customer service and financing terms. Some of the particular model competitors include Audi R8, Ferrari F430, Lamborghini Gallardo/ Huracan, Aston Martin V8 Vantage, Chevrolet Corvette ZR1/ Z06, Mercedes Benz AMG GT/ GT S, Nissan GTR/ GTR Nismo among others. These competitors revealed current special models in order to compete directly with Porsche 911 Turbo/ Turbo S. Therefore, an increased competition may lead to lower vehicle unit sales and increase an inventory, which may result in a further downward price pressure and adversely affect Porsche's financial condition and results of operations.

Identifyingcompetitors:

Brand/Model Price range (Europe

market) Differentiation Strategy relative to

Porsche 911 Turbo/ Turbo S

Porsche 911 Turbo/ Turbo S (coupe and cabriolet version)

170 000 EUR- 230 000 EUR

Rear engine; Usable as a day-to-day car; High performance, little compromise

(efficiency, price and outcome)

Aston Martin V8 Vantage (coupe and cabriolet version)

123 000 EUR - 174 000 EUR Exclusivity and service; Higher brand value "James Bond"; Style &luxury;

Audi R8 V10 (only coupe version)

223 300 EUR - 254 800 EUR 4 wheel drive, V10 engine; New entrant (Innovator image).

Ferrari 430F (available in coupe, cabriolet and Scuderia version)

175 000 EUR - 308 000 EUR Higher brand value (synonymous

with F1 and supercars); Usable as a track car

Lamborghini Gallardo/Huracan (Coupe and roadster version)

188 000 EUR - 274 000 EUR Exclusive design; Traditional "Toro" image

Chevrolet Corvette ZR1/ Z06 (Coupe version)

80 000 EUR - 107 000 EUR Low price and low service costs; Targeted on US market

Nissan GTR/ GTR Nismo Only coupe version)

83 000 EUR - 158 000 EUR Higher performance for lower price; "Godzilla" fame brand image

Mercedes Benz - AMG GT/ GT S (available in coupe version)

96 000 EUR - 152 000 EUR Ostentatious styling and price point; Younger and aggressive image


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The assessment of this competition or objectively called rival shows that there is high rivalry in the entry/ mid-level market, entering 911 Turbo/ Turbo S market range involves high risk. Although, in this model segment might be seen opportunity for competitors to be more consistent with Porsche's highly-recognized and truly justified brand, even though social trends play a crucial game on the brand overall perception.

2014 Porsche 911 Turbo/ Turbo S Pricing and Specifications:

Price: From 170,000EUR plus on-roads (Turbo); 230,000EUR (Turbo S) Engine: 3.8-litre twin-turbo horizontally opposed six cylinder Power: 383kW at 6500rpm (Turbo); 412kW at 6750rpm (Turbo S) Torque: 660Nm at 1950-5000rpm (Turbo); 700Nm at 2100-4250rpm (Turbo S) Transmission: 7-spd dual-clutch automatic, AWD Performance: 0-100km/h in 3.2sec (Turbo); 3.1sec (Turbo S) Consumption: 9.7L/100km (Turbo and Turbo S) Porsche main objective: World's leading sports car manufacturer("Strategy 2018") This goal of Porsche concern says a lot in case of all its model line implemented in the worldwide production. Concerning to the certain model that we have chosen - 911 Turbo/ Turbo S, an objective of the company clearly states a 911 spirit, which is transformed to both customers and competitors respectively.

“We‘vealwaysbeenambitious. Andwe‘llmakesureitstaysthatway.“


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"PEST" Analysis To analyse the Porsche 911 Turbo/ Turbo S market we undertook a “PEEST” Analysis study. This type of study allows us to analyse the external forces affecting the Porsche company. These external factorsinclude: Political, Environmental, Economic, Social and Technological aspects. By these aspects, the particular study will provide us with an overview of Porsches impact on the market, as well as show insights of Porsche macro environment.

Political Forces Porsche are being threatened by increasing political standards. As the threat of global warming increases, governments are putting increasing pressure on car manufactures to reduce car emissions. Porsche currently produces high performance luxury cars and SUV’s which have very high fuel consumption. Porsches range is subjected to stringent regulations which is impacting Porsche and their customers. The “CAFE” fuel standards in USA are becoming more stringent and posing a serious threat to Porsches American market.

Environmental Global warming is an increasing threat. Oil prices are continuously increasing along with consumer consciousness. Customers are requiring more economically friendly cars.

Economical Porsche fell victim to the 2008 economic recession. This global crisis caused widespread unemployment, increased costs and an extremely sensitive market. In 2010 Porsche was taken-over by the VolkswagenGroup and required sizable capital investments.

Social Customer preference and requirements are changing on a regular basis. Porsche are failing to keep up with important trends to target customers. Customers are requiring more fuel efficient and environmentally friendly cars which is leading to a loss of brand value for Porsche.

Technological Porsche harnesses a wealth of technological expertise. They employ some of the brightest engineering minds in the world. Porsche contains a large database of technological improvements and innovations. Such innovations include the Seven-gear Porsche Doppelfupplung (PDK) and the Porsche Torque Vectoring (PTV) systems. With the team Porsche has at their disposal, they are capable of developing world class technology.


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"SWOT" Analysis For Porsche the 911 Turbo/ Turbo S is a more exclusive edition of the 911-lineup. Its technological differences to the regular 911 is about increasing power and engine efficiency by a turbocharger. This makes it attractive to the costumers who see the advantages in paying an extra money in combining more performance and exclusiveness. To determine how a product as the Porsche 911 Turbo/ Turbo S on a market where different factors affect its ability to survive we can use the SWOT analysis.A SWOT involves specifying the structure of a company or organizations strength and competition on the market. Here we can evaluate the strengths, weaknesses, opportunities and threats. To be more specific we consider the strengths, weaknesses in a company to be internal and opportunities and threats to be external. Here the internal points are something that are controllable in the company. It can be characteristics of the business that gives advantages or disadvantages over others.For the external points, we talk about elements that are considered as uncontrollable in the company. Such as elements that the company could exploit to its own advantages or elements in the environment that could cause trouble for the business. Both internal and external factors for the Porsche 911 Turbo/ Turbo S are significant in analyzing its market opportunities and conceptual framework.

SWOT-analysis: 2014 Porsche 911 Turbo/ Turbo S:

Internal Key factors

Strengths:

1. High brand presence and recall

2. Good performer with a touch of sporty style

3. Porsche is owned by a trusted and reputed car manufacturer (Volkswagen AG)

4. Belongs to a model-range that has been the winner of major race events globally

5. Performance features:

- Turbo - Top speed of 315 km/h, 520hp and 0-100 km/h in 3,4s (3,2s in Sport+)

- Turbo S - Top speed of 318 km/h, 560hp and 0-100 km/h in 3,1 s (Sport +)

6. Strategic integration with Volkswagen

7. Identity

Weaknesses:

1.Extremely high price, High maintenance and running cost, hence limited demand

2.Not suited for rough terrains like those in some emerging economies


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External Key factors

Opportunities:

1. Capitalize on exclusivity as a luxury brand

2. Implement more luxury and innovative features

3. Expand the market by increasing distribution and servicing network

Threats:

1. Environmental protection regulations

2. Impending recession, which may decrease purchasing power of elite class

3. Competition in the global automotive market


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Marketing Strategy Porsche: Model - 911 Turbo/ Turbo S - Positioning in the market (Illustration):

Strategic Objectives and Strategic Focus:

Strategic Categorization Matrix

Opportunities and Threats

Divest/ Grow Grow Grow Enter

Strengths and Harvest Maintain Grow Weaknesses Divest Harvest Maintain Based on the earlier findings on the market attractiveness of the luxury high-performance car industry and variety advantages of the 911 Turbo/ Turbo S production line possessed by Porsche, we have made a strategic categorization matrix in order to determine what activities Porsche as a company takes to strengthen and position the 911 Turbo production line.

High Price

High Quality Low Quality

Low Price

Position of Future Customer Segment

Position of Current Customer Segment


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Firstly, by having a sustainable competitive advantage in the certain market, 911 Turbo/ Turbo S is the successor of viable "tomorrow's business" justifying the pursuit of that market. Secondly, talking about customers, typical buyers of 911 Turbo cars are unaffected by economic climate and view price as an indicator of quality . This makes a great opportunity for Porsche to have an elastic price increase strategy that may increase the prestige of the 911 Turbo/ Turbo S. Finally, company's marketing strategy focus is more directed on 911 production line, because of increased sales volume that leads to win over competitor's customers. But the major point is that there is a huge trend for smaller, more fuel efficient cars that can "stand out from the crowd".

Marketing mix Product/Service In a marketing mix the product should meet the costumer requirements. These requirements are not only the functions, but also the appearance of the product. With the Porsche 911, there are many different types of valued functions and appearances. One of the functions is, that the Porsche 911 still after 51 years is a rear-engine, rear wheel driven car, with the same shapes like the very first model. This makes them very loyal to their fans. That the Porsche 911 is a popular choice among the upper classand car enthusiasts, is not only because its technologically advancement as a high performance supercar, but mainly because of the emotional and psychological effect is has on people. They have created the picture, that owning/buying a Porsche 911, is like fulfilling a dream. The new functions and appearances Porsche is trying to give the 911, is that of an everyday car. At Porsche they have managed to keep the 911’s appearance as a dream fulfilling sports car while intergrading this whole new idea. The end result is that the Porsche 911, besides all the aforementioned functions and appearances, got strengthened its appearance as a reliable car. Place Distribution is a very important element in the marketing mix, since roughly 20 percent of the cost of a product is spent getting it to the costumer. Even though Porsche is beginning to brand it self as a everyday car, it is still very luxuries, and there is also a status connected to it. Porsche cars are only sold in special and exclusive amount of outlets. In whole Germany you only find 85 of these outlets. That’s 1 for every million citizen. All Porsche outlets are built up the same way. They consists of silver/grey plates that almost all the time are put together to create round shapes. By doing this, Porsche has created a very strong recognition value. You now when you see one of Porsche’s outlets without even haven’t seen the logo. Price/Pricing strategy When discussing the price, the price of a product should also reflect its image. The 911 Turbo/ Turbo S model share the flagship of Porsche and one of the most luxurious models is unquestionably reflected on the price. The starting price of a Porsche 911 Turbo is 178.000€ and can go as high as 230.000€.


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Market Growth

The pricing strategy for the 911 is premium pricing. This price reflects entirely on the 911 images. This pricing strategy is also called prestige pricing. Premium pricing often goes hand in hand with luxury products. Promotion Promoting is the communication with the costumers, where the company’s goal is to encourage the costumer to get interested in the product. In especially the US, the 911 is being promoted using TV advertising. As mentioned above, the Porsche has changed some parts of the strategy for the 911, to give it the appearance of an everyday car. The slogan used for this strategy change is “Engineered for Magic. Everyday”. With this slogan, Porsche have managed to keep the 911’s appearance as a high quality car that offers driving pleasure, while giving it a more mature scent. Apart from the TV advertisements, Porsche has founded a car race, only for the 911. By putting the 911 in the racing element, it keeps its appearance as a professionally super car.

Future trends: Growth - Share Matrix

Question Marks Stars

Dogs Cash Cows The growth–share matrix (Boston matrix, BCG matrix) is a chart that helps companies to analyze their business units or so called product lines, which in this case is a Porsche 911 product line. This helps the company to allocate resources and is used as an analytical tool in brand marketing, product management, marketing strategy planning, strategic management, and portfolio analysis. The principles of this matrix are widely used to determine and analyze both current and future market performance.

Market Share


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Porsche 911 Turbo/ Turbo S is positioned in the chart segment - Cash Cows. In other words, this means that a particular product line has high market share in a slow-growing sport car industry. Porsche 911 is the core production line where almost all units including 911 Turbo/ Turbo S model line generate cash in excess of the amount of cash needed to maintain the business of the whole Porsche AG Group. This model range is regarded as staid and boring, in a "mature" market (Porsche 911 has been sold on the market over 51 years). 911 units are likely to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Overall, 911 Turbo/ Turbo S is settled in a fast-moving costumer goods market, therefore the company value owning 911 model segment due to their cash generating qualities is rising every year.

Source list: Web pages: http://www.streetdirectory.com/travel_guide/58304/performance_cars/short_history_of_porsche_company.html http://www.brw.com.au/p/sections/features/why_porsche_targets_women_38lla8VdgDFWfqdsPGNLQN https://answers.yahoo.com/question/index?qid=20110211200720AAIpsno http://www.slideshare.net/derekmitchell562/porsche-strategic-marketing-analysis-17225184http://www.brw.com.au/p/sections/features/why_porsche_targets_women_38lla8VdgDFWfqdsPGNLQN https://answers.yahoo.com/question/index?qid=20110211200720AAIpsno http://www.slideshare.net/derekmitchell562/porsche-strategic-marketing-analysis-17225184 http://www.prweek.com/article/1264731/porsche-launches-new-campaign-broaden-its-target-market Reports: - COMPANY PROFILE - Porsche Automobile Holding SE

http://www.streetdirectory.com/travel_guide/58304/performance_cars/short_history_of_porsche_company.html

http://www.streetdirectory.com/travel_guide/58304/performance_cars/short_history_of_porsche_company.html

http://www.brw.com.au/p/sections/features/why_porsche_targets_women_38lla8VdgDFWfqdsPGNLQN


https://answers.yahoo.com/question/index?qid=20110211200720AAIpsno

http://www.slideshare.net/derekmitchell562/porsche-strategic-marketing-analysis-17225184




https://answers.yahoo.com/question/index?qid=20110211200720AAIpsno


http://www.prweek.com/article/1264731/porsche-launches-new-campaign-broaden-its-target-market

http://www.prweek.com/article/1264731/porsche-launches-new-campaign-broaden-its-target-market

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