Porsche

2nd CASE

Porsche is a unique company. It has always been a niche brand that makes cars for a small and distinctive segment of automobile buyers. Since its early days, Porsche has appealed to a very narrow segment of financially successful people. These are achievers who see themselves as entrepreneurial, even if they work for a corporation. They set very high goals for themselves and then work doggedly to meet them. And they expect no less from the clothes they wear, the restaurants they go to, or the cars they drive. These individuals see themselves not as a part of the regular world but as exceptions to it. They buy Porsches because the car mirrors their self-image; it stands for the things owners like to see in themselves and their lives. Usually, normal people buy cars to accomplish their daily tasks such as going to work, transporting children, and running everyday jobs. Accordingly, normal car buyers base buying decisions on features such as price, size, fuel economy, and other practical considerations. But Porsche is more than a utility car. Its owners see it as a car to be enjoyed, not just used. Most Porsche buyers are not moved by information, but by feelings. A Porsche is like a piece of clothing—something the owner “wears” and is seen in. They admire their Porsche because it is a competent performance machine without being showy or phony. However, the entry of Nissan, Toyota and BMW into the manufacturing of high-end sport cars has forced Porsche to change its marketing strategy. Porsche rebuilt its image by refurbishing its higher-end model lines with more technology. Porsche increased its product mix by adding two models of cars. The new Porsche Cayenne was heavier than anything that Porsche had ever made. The new model featured an engine up front. And it was the first Porsche to ever be equipped with seatbelts for five. The Panamera, a five-door luxury sedan, is almost as big as the Cayenne but can move four adults down the road at speeds of up to...