COMPANY Case Porsche Guarding the Old While Bringing

COMPANY Case Porsche: Guarding the Old While Bringing in the New ____________________ Talipcan UĞUR Ersel ŞİMŞEK Ayça Arslan Onur UZUN Thomas Schwarberg Alexej Simeth Slide 1 070100119 070120283 070090095 070100020 990121324 990125306

Introduction Porsche AG – The company The Porsche AG is a German automotive company head-quartered in Zuffenhausen/Stuttgart in Germany and owned by VW Total Sales Revenue (Mio. €) Employees 143, 096 13, 865 17, 502 Niche Brand producing exclusive cars (Toyota 9, 75 Million sales in 2012) Slide 2

Introduction Porsche AG – The history 1931 “Dr. Ing. h. c. F. Porsche Gmb. H” was founded by Ferdinand Porsche; at first just engineering office 1947 First Porsche Model 356 was built “I very simply built my dream car […]” F. A. Porsche 1964 The Porsche 911 was introduced to market 1970 s The much cheaper models 914, later 924 and 944 were introduced 1991 Porsche nearly went insolvent (neg. income) 2002 Entering the SUV-market with the Porsche Cayenne 2009 Entering the luxury sedan-market with the Porsche Panamera Slide 3

Introduction Porsche AG – Porsche 914 became the top selling model… Slide 4

Introduction Porsche AG – Present Porsche recovered and is now the most profitable automotive company in the world In 2006 Porsche earned about 21, 799 € per car before taxes; 9 times more than the 2. place in ranking Philosophy: “Exclusivity. Individuality. Craftsmanship. ” “We’re not looking for volume; we’re searching for exclusivity. ” Slide 5

Introduction Porsche AG – The Customers Financially successful people Porsche is a mirror for the customer’s self-image The car is like status symbol – people want to distinguish A car for people who enjoy driving Slide 6

Analyzing the buyer decision process of a traditional Porsche customer Slide 7

1. Analyze the buyer decision process of a traditional Porsche customer Need Recognition - Financially successful people. Postpurchase Behavior - Consumer expectation and satisfaction Information Search - Strong and satisfying feelings Purchase Decision - Purchase intension & purchase decision Slide 8 Evaluation of Alternative - Accomplish daily task.

1. Need Recognition The traditional Porsche customer, follow the first stage Need Recognition. Most of the traditional Porsche customer is a financially successful people, and who see themselves entrepreneurial. The need to show themselves with the right car and Porsche is like a piece of clothing to stand for. Slide 9

2. Information Search The customer started information search for the right car, which is the challenging Porsche with the competent performance machine. Most of the consumer of Porsche has a strong and satisfying feeling of it, so they may not need to do information search. Slide 10

2. Information Search If all they needed was something to get them from point A to point B, they could find something much less expensive. Customer expected other to like their cars and enjoy riding with in it. Most of the traditional Porsche customer is delighted with the perceived performance of Porsche, too. Slide 11

3. Evaluation of Alternatives Once all the information is gathered, the consumer prepares to make a decision. To help with a proper decision the consumer may also evaluate alternatives. Porsche has positioned itself in the car industry has a historical and Luxury/performance based brand. The “car enthusiasts” buy what they know can perform the best and that has longevity. For Porsche, this helps dwindle the evaluation of alternatives for their potential consumers. Slide 12

4. Purchase decision Most of the Porsche buyers are not moved by information but by feelings. Because Porsche represent luxury and challenging, customer will buy it in order to make difference or out of the ordinary. Slide 13

4. Purchase decision They develop a personal relationship with their cars, one that has more to do with the way the car sounds, vibrates, and feels, rather than the how many cup holders it has or how much cargo it can hold in the trunk. They admire their Porsche because it is a competent performance machine without being flashy or phony. Slide 14

5. Postpurchase Behavior Lastly, when a consumer makes a purchase they assume certain outcomes, preferably a positive one, with that product. The only way the expectations are met comes from whether the consumer has been satisfied or not. This aspect of the process would be considered the post purchase behavior. According to the numbers and statistics of the sales mentioned in previous posts, I can firmly say that the consumers are satisfied with the Porsche products. Slide 15

Question 2 : Contrast the traditional Porche customer decision process to the decision process for a Cayenne or Panamera customer Slide 16

Question 2 : Contrast the traditional Porche customer decision process to the decision process for a Cayenne or Panamera customer 1 -Traditional Porsche Customer’s Reflections 2 -Cayenne and Panamera Customer’s Reflections Slide 17

Traditional Porsche Customer’s Reflections • Not just another utilty vehicle but a life style. • High prices imply high status. • Take traditionalist stance on certain improvements. Slide 18

Cayenne and Panamera Customer’s Reflections • Emerging market customers are - not sticked to 2 doors and engines in the back. • Some traditional markets customers - move in life stages that brings new needs. Slide 19

3. Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970 s and 1980 s ? Slide 20

Ferry Porsche: We did no market research, we had no sales forecasts, no return-oninvestment calculations. None of that. I very simply built my dream car and figured that there would be other people who share that dream. Slide 21

Factors influencing consumer behavior v Cultural v Social v Personal v Psychological Slide 22

Porsche Models 911 Slide 23

Porsche Models 914 Slide 24

Porsche Models 924 Slide 25

Porsche Models 944 Slide 26

As a result, Porsche increased sales goal by nearly 50 percent to 60000 cars a year. Slide 27

v Market shares which begin to be insufficient v Minimum rate of customers to run the company Slide 28

Question 4: Explain how both positive and negative attitudes toward a brand like a Porsche develope Slide 29

• Porsche was founded in 1931. It was desingned the original Volkswagen Beetle • First two decades, the company built Volkswagen Beetles for German citizen and tanks and Bettles for the military. • In the 1950’s and 1960’s the company began to sell cars under its own brand named Porsche AG. • After few decades Porsche 356 was created. Slide 30

• In the early 1970’s, Porsche introduced the car 914, cheaper than 911. • After that Porsche introduced 924 and 944. So they increased sales goal by nearly 50 percent a year. • Porsche loyalists were not happy. Because they wanted to keep as a small group. On the other hand, the Porsche cars were losing their quality, more faster cars are introduced. • By 1990, Porsche reverted. It started to product cars faster and more expensive Slide 31

How might Porsche change consumer attitudes toward the brand? Slide 32

They can consumer attitudes while produsing special car for consumers. For example, Porsche can develep their cars alterable. So consumers feel more exclusive. Addition to, their car should be less expensive but more qualified and faster. Slide 33

What role does the Porsche brand play in the self-concept of it‘s buyers? Slide 34

A Porsche Buyer‘s Self Concept: • • Financially successful See themselves as entrepreneurial Set high goals and work hard to achieve them Expect exclusiveness from the products they surround themselves with Slide 35

Why do they buy Porsche? • Personal relationship with the car • Moved by feeling, not by information • They just enjoy driving in it Slide 36

In conclusion. . . • A Porsche reflects the self image of it‘s buyer: - Upper level - Successful - High social statues costumers with an exclusive lifestyle Slide 37

THANKS FOR YOUR LISTENING… Slide 38