Case Study "porsche"

1 CASE STUDY "PORSCHE"

1.1 Analyze the buyer decision process of a traditional

Porsche customer.

The usual buyer decision process is separated in 5 steps. At first the product needs to be recognized by the customer - in this case it's the need for a new car. The Porsche mar-keters look to those needs that consumers look for in a car and find out what brought previous customers to their product so that they can satisfy the needs of the new cus-tomers searching for their next car. After the customer decides that he needs a new car, he will start gathering information about the available options from the manufacturers website, brochures and maybe even through visiting the Porsche dealership to take a look at the models in the showroom.

Followed by the information research the process continues with the third step - evalu-ating alternatives. In this case it would be the direct comparison with other high-class sport cars such as the Nissan GTR, Aston Martin DB-9 or the Ferrari 458 Italia. The normal buying decision process always includes considering a few alternatives and their specific benefits. For example a better price, more powerful engine or a higher exclusiv-ity and different design.

After the evaluation of all possible options, the consumer makes a decision to buy or not to buy a Porsche. In this case the consumer decides to purchase a 911, for example.

The last step in the process is called post purchase behavior. The new Porsche owner will now enjoy cruising through the streets, marketing the brand Porsche to the society around him without even saying a word. This customer can now give a feedback to the company that can be used to improve their marketing strategies and gain more new cus-tomers.

But we have to consider that Porsche is not just any car manufacturer. They are unique in many different ways. For example in their special design of the 911 that hasn't changed in over 50 years, and the rear engine concept followed by the highest quality in production and performance. Usually Porsche's customers skip the first 3 steps of the normal buyer decision process, because nobody really needs a new 400 hp strong sports car that costs over 100000 €. This is also a part of Porsche's marketing strategy - in the 90s Porsche had a commercial of the 911 that said: "A Porsche is the car that nobody needs, but the car that everybody wants." This describes the nature of buyer and the product very well. If a wealthy consumer decides to buy a Porsche, he doesn't need to research information, evaluate alternatives and definitely not if he needs a sports car. The brand itself has created such an impressive image that stands for highest quality and a social status of extreme exclusivity, that the potential customers already know what they will get if they buy a Porsche. The average Porsche 911 customer is a bit over 50 years old and has an average salary of 17000 € per month. The only decision he has to make after deciding that he will buy a 911, is the color of the car and what engine type will power his new toy.

1.2 Contrast the traditional Porsche customer decision process to the descision process of a Cayenne or Panamera customer

For the buyer decision process of a regular Porsche car versus the bigger models like the Cayenne and Panamera, most of the steps are the same.

Unlike in the situation of buying a sports car, consumers are in the need of a bigger car. The customers grow older and establish families of their own, which require a car with more seats and a bigger trunk to transport more people and their belongings. They will do some information research about how many seats the car has, what kind of safety technology is built in the car and how much space is in there.

Eventually the potential customers will compare alternatives like the Audi Q7, BMW X5 or a Mercedes CLS. Usually the loyal customers that owned a Porsche before will stick to the brand and choose one of their models, because they are convinced of the quality and status, which comes with the brand. The last steps are identical to the buyer decision process of a traditional Porsche customer. A decision has to be made, and fol-lowed by that the customer will put on almost the same post purchase behavior as with a sports car. Maybe the Cayenne or Panamera customers won't be seeking for attention as much as the sports car drivers.

1.3 Which concepts from the chapter explain why Porsche sold so many lower priced models in the 1970s and 1980s?

The concepts of cultural factors apply on this case. Porsche cars always had and still have an amazingly high value to the global society. The name "Porsche" is a worldwide known brand that has an image, which represents exclusivity and wealth. People that can afford a Porsche are usually very wealthy and live in the so-called "higher society". They want cars that represent a certain image, the same as they have - high quality and status. Porsche customers want to stand out and show their achievements in live by driv-ing a beautiful, fast and exclusive car with a powerful brand logo on the bonnet. Only about 2% of all 911 owners really use the performance skills of their car on a race track, the place a 911 belongs to, the rest of the 98% own these cars mostly for prestige and status reasons. Some people would say just to show off, and in some ways this is actual-ly true. Why would anyone buy an extraordinary car if no one would recognize it? The reason is simple, people want to be seen and identify themselves with the high standard and lifestyle.

In the 1970s and 1980s Porsche sold so many 914s, 924s and 944s because the brand was so extremely wanted by the people. There are always more people that want a Por-sche, than people that can actually afford one. By making the so-called "housewife Por-sches" affordable for lower class customers, Porsche gave the society what it was seek-ing for. It was possible for a wide range of consumers to finally fulfill their dream of owning a Porsche by only a small part of the price of a 911. In that time Porsche went from class to mass. Of course they sold more cars, but they also displeased the tradi-tional customers. The wealthy 911 owners didn't want to share their exclusivity with a big mass of people - they wanted to keep the brand special and only for a certain group of buyers.

1.4 Explain how both