‘Engineered for magic, everyday’

When you think of a Porsche, what comes to mind ? Something like this maybe;

For me anyway it has historically meant a high performance small to mid size sports car targeted predominately towards wealthy men……….resulting in the brand having a very limited appeal to customers outside of this very targeted market segment.

With the company facing market share and profitability pressures in key markets during the 1990’s it decided to innovate and expand its appeal and specifically sought to target a younger audience and female customers.

With the company’s decision to launch the Cayenne in 2003 they had created a new market segment in an attempt to expand the brand. The Cayenne was released as a cross over vehicle (a vehicle built on a car platform and combining features of a sports utility vehicle with features from a passenger vehicle, especially those of a hatch back or station wagon). This vehicle offered luxury and high performance not offered previously achieving strong appeal within its new target segments. 12 years later this vehicle now accounts for half of Porsche’s profits !

Following on from the Cayenne it launched the Panamera in 2010 and again created the first of its kind by introducing a 4 door luxury sports car.

 

The Cayenne SUV and Panamera Four-Door Sports Sedan are winning over female drivers and are continuing to increase in relevance within its target market segments.

Michelle Krebs, senior analyst at Edmunds.com, credits Porsche’s success to its counterintutive approach. When Porsche first rolled out the Cayenne to the U.S. market in 2003, she said enthusiasts hated the idea of the elite sportscar brand seemingly pandering to the masses who wanted crossovers and SUVs. “The purists just said, ‘Oh, that’s not true Porsche,” said Ms. Krebs. “Well, frankly it’s the sport utility that kept Porsche going.”

In an effort to continue to reposition the Porsche brand to its new target segments, marketing campaigns have leveraged the 911 model to reposition the brand for every day use. The Cayenne, Panamera and recently introduced Macan model have provided Porsche with the opportunity to extend the traditional sports car model offers and also position these for everyday use. Hence the campaign ‘Engineered for magic, everyday’ was introduced

Innovating to maintain relevance by identifying new and emerging market segments is critical to organisational success in this global and fiercely competitive environment’. We can’t afford not to change to maintain relevance and I am sure Porsche is acutely aware of this fact…….

porsche-vector-logo

http://adage.com/article/special-report-marketer-alist-2013/porsche-broadens-image-wins-female-drivers/243752/

http://www.stephenzoeller.com/target-market-segment-strategy-porsche/

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5 thoughts on “‘Engineered for magic, everyday’

  1. Hi Cunnin,
    really good job man.
    I want to add a bit in this.
    The hub of the integrated campaign is a consumer-generated website” PorscheEveryday.com ”where owners can share their own everyday stories. With a combination of professionally produced videos and images along with owner-submitted content, the site builds a mosaic showcasing the many ways a Porsche is engineered for everyday magic. For this effort, Porsche has once again reached out to its passionate and active loyalists and enthusiasts to participate and contribute to the story. To start things off, Porsche sent 200 Flip video cameras to select owners asking them to contribute videos. The brand has also invited input from all its owners.

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  2. Hi,

    Thank you for sharing.

    From the post,it is clear that to expand selling market and target specific customers,the companies have launched kinds of different products to satisfy its cusomers.For example,

    With the company facing market share and profitability pressures in key markets during the 1990’s it decided to innovate and expand its appeal and specifically sought to target a younger audience and female customers.

    With the company’s decision to launch the Cayenne in 2003 they had created a new market segment in an attempt to expand the brand.

    In an effort to continue to reposition the Porsche brand to its new target segments, marketing campaigns have leveraged the 911 model to reposition the brand for every day use.

    Maybe we are thinking why the company was willing to spend so much money and time on doing those things?How did they make its segementations?How about the benefits such as market shares,sales volume and customers’ feedbacks?

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  3. Interesting post. It inspired me to look at the Porsche website out of curiosity!

    Their vehicle model choices are limited to 6, with lots of variations on the one model. The brand obviously caters to the high end of the car market and I can see why they had to expand their offerings to a SUV and a sedan. As a female looking at their website, I would be drawn to the SUV and sedan models as opposed to the 2 door sports models, so their strategy to gain a wider market share has worked.

    This is a good example of how a well known company serving a niche market needed to segment and target different markets to expand their customer base. It is now catering to families, mums, and females in general, with its SUV and sedan vehicles – a much broader market than the wealthy male.

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  4. From the limited Porsche drivers I know, I think brand loyalty to Porsche plays a big part in their customer base. That being said, with the quote above about purists saying “it is not a true Porsche”, Porsche obviously did the research to know they would not loose those loyal customers with the expanded offerings while opening up a new segment. It appears to have paid off based on the above profit numbers.

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  5. I think that what Porsche did in back in the 1990’s was a very brave decision to follow. For a company and product that was so widely known this could have so easily back fired sending the company into oblivion.

    What Porsche did could be seen as a complete “personality” change. Just as if your best friend had had a personality change how would that affect your relationship with them? You possibly may not be able to accept this change in them and not be willing to associate with them.

    This to me is what some loyal Porsche customers would have been going through. A brand that they loved and cherished had changed and they were feeling betrayed. By chasing new customers with a new “personality” this could have costed Porsche their loyal customer base without any guarantees that they would gain any new customers.

    However history shows that Porsche did make the right decision and have been rewarded for that personality change.

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