Published by MBA Skool Team, Last Updated: December 01, 2016
Marketing Strategy of Porsche analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Porsche marketing mix, help the brand succeed.
Porsche marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Porsche Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Porsche Product Strategy:
The product strategy and mix in Porsche marketing strategy can be explained as follows:
Porsche has always tried to come up with quality product so that they can retain their customers. It is right to say that, they have been successful in doing so. It is known that Porsche was founded in 1931 and they are still expanding and growing. It has been found that the cars built by Porsche out of which 70% are still on the roads. This shows that what quality products, this company comes up with. Porsche has always maintained its brand image and has always targeted high end customers. They follow the theory of high-priced-high-quality sport cars available for premium segments. The portfolio can help understand the marketing mix product strategy. Their line up includes Cayenne, Panamera, 911, Boxster and Macan. Porsche line up includes from Porsche Boxster Roadster to their one of the most famous product Porsche 911. Then they have midsized SUV i.e. Porsche Cayenne and high end luxury car includes Porsche Panamera that was launched in the year 2009.
Porsche Price/Pricing Strategy:
Below is the pricing strategy in Porsche marketing strategy:
Porsche brand well known across the globe and people buy cars from different parts of the world.
But, their most of the sales happens in United States and it is around 40% of the total sales. If we see the balance sheets of past few years, we can find that the profits are increasing year on year and around $1.76 million cash lies with the company. If we closely observe, when Porsche Panamera S was introduced in the market, it was priced around $133,000. But with time, the price came down to $120,000 in order to boost sales. This is the technique that Porsche has been using for quite few years. This is known as price skimming in its marketing mix pricing strategy where you introduce your product with high price. But with time, the company lowers the prices of the products in order to increase sales. They also used psychological pricing strategy where they kept 2-3 dollars less than whole figure. The best part is that if Porsche changes the price they have smaller or no change in demand as they have exclusive cars which everybody cannot afford. Thus, we can say Porsche don’t follow competitor based pricing.
Porsche Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Porsche SWOT Analysis, STP & Competitors
Porsche Place & Distribution Strategy:
Following is the distribution strategy in the Porsche marketing mix:
Porsche has a very simple distribution channel which gives an edge over other automobile companies. They follow a direct distribution channel system where there is licensee and customer can go directly to it. Sales persons available there explain the functionality of the product to the customer before buying. Thus, the follow of the products is fast and hassle free.
It has been seen that Porsche is present across the globe but USA, China and Germany are the top sellers of cars in the world.
Porsche Promotion & Advertising Strategy:
The promotional and advertising strategy in the Porsche marketing strategy is as follows:
Porsche mainly targets people who are affluent and wealthy. They generally bring products keeping in mind the premium segment. Their customers mainly constitute medium-high class people. They also target customers based on age. They have young customers in the age group of 20-25 along with business men in the age group of 30-40. Basically, Porsche uses media such as TV to promote its products. So, they follow above the line marketing strategy. They often do offline promotions such as through magazines. So, they even follow below the line marketing strategies. However, they don’t provide incentives such as offers and discounts as the people they are targeting are rich and wealthy. Hence, this covers the Porsche marketing mix.
Porsche AG which is also known as Dr Ing. h.c. F. Porsche AG is a Germany based automobile manufacturing company that is specialized in making very high speed vehicles such as SUVs, sedan and sport cars. Porsche AG is owned by Volkswagen AG where they have 50% stake in it. But, by the end of 2018, they have aim of acquiring 74% stake in it. It was founded in the year 1931 by Ferdinand Porsche and has services spread across the globe. It’s headquarter is Stuttgart, Germany. They have employee strength of 25,000 and are increasing exponentially for past few years. Their line up includes Porsche Cayenne, Panamera, Porsche 911, Boxster and Macan. They also provide services such as engineering services, investment management and automotive financial services. But, their large chunk of revenues comes from selling of cars.
Porsche cars are sold worldwide and it has been seen that their sales remain unaffected even during recession. This shows the customer loyalty towards the brand Porsche.
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