Marketing Project

Porsche 911 Turbo/ Turbo S

Made by: Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

Abstract
Semester project: First part of a marketing plan of the Porsche 911 Turbo
Turbo/ Turbo S.

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Table of Contents
Introduction ................................................................................................................................................................ 1
Customer Analysis .................................................................................................................................................... 2
Competitor Analysis ................................................................................................................................................ 4
PEEST Analysis........................................................................................................................................................ 6
SWOT Analysis ........................................................................................................................................................ 7
Sources10
Marketing Strategy.11
Marketing Mix.....................................12
Future Trends.13
Source list..................................................................................................................................................................14

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Introduction
In 1931, Ferdinand Porsche founded Porsche, with main offices in centre of Stuttgart in Germany. At
the beginning Porsche didnt produce any cars, but offered motor vehicle development work. In 1934,
Porsche got its first assignment from the German government, which was to design a car for the
people. This task resulted in the Volkswagen Beetle, one of the best known and most successful car
designs of all time.
After the success with the beetle, Ferdinand Porsche began to design his second car with his son,
Ferry Porsche. For this new car they used the same engine as for the Beetle, but gave it a completely
new design, which resulted in the Porsche 356 - a former 911 model. The Porsche 911 followed by the
Porsche 356, which because of its recognizable shapes, is the most well-known Porsche model of all
time.
When Porsche started selling the official 911 Turbo back in 1975, it was as powerful and as high tech
car Porsche was willing to sell to the public. Its turbo technology, derived from their work in Can-Am
and Le Mans racing competition experience was so groundbreaking that Porsche had to put it in the
car's name. The vehicle was extremely difficult to control and people started calling it the
Widowmaker.
Porsche wisely realized this problem and adjusted the following Turbo models. The following models
were toned down and more finely adjusted within the handling, agility and engine departments.
Despitethis the outright speed had been increased. This provided a better marketing proposition to
sell to customers.
In 1992, Porsche introduced the Turbo S as a package and again in 1997.By that year Porsche put out
the Turbo S as a model in much the same form and shape as the current Turbo S model. More boost,
power, wings, aerodynamic elements, carbon fiber and expensive detailswere made available to
customers. It was an extreme model of an already exsistingextreme car (911 Turbo). Thus, only 183
cars were sold in the early beginning, as "RM Auctions" reports.

The reason why we have chosen to work with the Porsche 911(certainly 911 Turbo/ Turbo S) model is
that it is the crown jewel of the current line of Porsche. The Porsche 911 has made Porsche to what it is
today, and has since 1963 been the identity of the Porsche brand. The most powerful version is the 911
Turbo/ Turbo S model, which we will be investigating in order to show key reasons why Porsche has
settled its name in the mind of its customers by applying its own marketing strategy towards global
market.

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Customer analysis
Costumer profile
If we look 10 years back in time, the averagecostumer who would buy a new Porsche 911, and
typically 911 Turbo/ Turbo S model would be a mid-aged male (35-55 years old) who mainly would
buy it because he would be looking for a high-performance,
high
exclusive and
nd high quality sports car. Back
then, the main value the costumer would get from buying a Porsche, would be elite status.

In 2011 Porsche launched a new campaign

to broaden its target market. The campaign
was calledEngineered
ngineered for Magic. Everyday.
2011became a record-breaking year for
Porsche with over
ver 100,000 cars sold
worldwide. However, it should be said that
themodels that increased in sales were not
the sports cars - neither
er any model from 911
range,Boxster S or Cayman S, but ma
mainly the
SUV model, Cayenne, and the luxury four
fourdoor sedan, Panamera.

Porsche World
World-wide
Annual sales
150000
100000
Porsche Worldwide Annual sales

50000
0
2007 2008 2009 2010 2011

Because of this new campaign we can create market segmentation for Porsche, and what they
emphasize. They have gone from focusing on fulfilling the elite (people for who a car is simply
simp a car no
matter the money) and the race enthusiasts needs, to dealing with the everyday user.
The everyday users are not only businessmen, but also family members, women and younger drivers
who enjoys sport cars for daily use.

Elite

Everyday
user

Porsche
Market

Fans

Race
enthusiasts

Clients of our Porsche Exclusive cars are also brand

d ambassadors who like to talk about their
experiences with Porsche. This was espec
especially visible among the twelve buyers of tthe 911 Club Coupes,
says Ingo Frenkel, Director
ector of the Porsche Exclusive Customer Center
enter in Zuffenhausen.
Several thousand
sand Porsche Club members from around the world had vied for the right to
purchase one of the limited edition cars.
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Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Target market segmentation: Porsche 911 model range (included Turbo and Turbo S model)

After 2011, the Porsche 911 not only became attractive as an all-around car for men, but also for
women. To get closer to their new target market, they have integrated some of the basic consumer
valued features such as:

Bluetooth
User-friendly
friendly navigation systems
Cup holders
Comfort

Still it is mostly mid-aged

aged men with a high income who are buying the 911 Turbo/ Turbo S.
S
A typical profile of a 911 customer could be:
Man between 35-55
55 years old.
High ranked business profile.
Costumer value is still high-performance,
performance, exclusive and high quality sports car that gives status,
but also can be used as an everyday car.

Gender of 911 Turbo/ Turbo S

customer
Women
15%

Men
85%

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Competitor analysis
Nowadays the worldwide automotive market is highly competitive. Porsche 911 Turbo/ Turbo S faces
strong competition from automotive manufacturers in its market of a high performance sports car
segment. The competition among various auto players is likely to intensify in light of continuing
globalization and consolidation in the worldwide automotive industry. On the other hand, Porsche has
made it feasible with its core model - 911 Turbo/ Turbo S compete in a market segment where
relatively few automakers can compete.
The factors influencing competition include product quality and features, the amount of time required
for innovation and development, pricing, reliability, safety, fuel economy, customer service and
financing terms. Some of the particular model competitors include Audi R8, Ferrari F430,
Lamborghini Gallardo/ Huracan, Aston Martin V8 Vantage, Chevrolet Corvette ZR1/ Z06, Mercedes
Benz AMG GT/ GT S, Nissan GTR/ GTR Nismo among others.
These competitors revealed current special models in order to compete directly with Porsche 911
Turbo/ Turbo S. Therefore, an increased competition may lead to lower vehicle unit sales and
increase an inventory, which may result in a further downward price pressure and adversely affect
Porsche's financial condition and results of operations.

Identifyingcompetitors:
Brand/Model

Price range (Europe

market)

Porsche 911 Turbo/ Turbo S

(coupe and cabriolet version)

170 000 EUR- 230 000 EUR

Aston Martin V8 Vantage

(coupe and cabriolet version)

123 000 EUR - 174 000 EUR

Audi R8 V10 (only coupe

version)
Ferrari 430F (available in
coupe, cabriolet and Scuderia
version)
Lamborghini
Gallardo/Huracan (Coupe and
roadster version)
Chevrolet Corvette ZR1/ Z06
(Coupe version)
Nissan GTR/ GTR Nismo
Only coupe version)
Mercedes Benz - AMG GT/ GT S
(available in coupe version)

223 300 EUR - 254 800 EUR

175 000 EUR - 308 000 EUR

188 000 EUR - 274 000 EUR

80 000 EUR - 107 000 EUR
83 000 EUR - 158 000 EUR
96 000 EUR - 152 000 EUR

Differentiation Strategy relative to

Porsche 911 Turbo/ Turbo S
Rear engine;
Usable as a day-to-day car;
High performance, little compromise
(efficiency, price and outcome)
Exclusivity and service;
Higher brand value "James Bond";
Style &luxury;
4 wheel drive, V10 engine;
New entrant (Innovator image).
Higher brand value (synonymous
with F1 and supercars);
Usable as a track car

Exclusive design;
Traditional "Toro" image

Low price and low service costs;

Targeted on US market
Higher performance for lower price;
"Godzilla" fame brand image
Ostentatious styling and price point;
Younger and aggressive image

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

The assessment of this competition or objectively called rival shows that there is high rivalry in the
entry/ mid-level market, entering 911 Turbo/ Turbo S market range involves high risk. Although, in
this model segment might be seen opportunity for competitors to be more consistent with Porsche's
highly-recognized and truly justified brand, even though social trends play a crucial game on the
brand overall perception.

2014 Porsche 911 Turbo/ Turbo S Pricing and Specifications:

Price: From 170,000EUR plus on-roads (Turbo); 230,000EUR (Turbo S)
Engine: 3.8-litre twin-turbo horizontally opposed six cylinder
Power: 383kW at 6500rpm (Turbo); 412kW at 6750rpm (Turbo S)
Torque: 660Nm at 1950-5000rpm (Turbo); 700Nm at 2100-4250rpm (Turbo S)
Transmission: 7-spd dual-clutch automatic, AWD
Performance: 0-100km/h in 3.2sec (Turbo); 3.1sec (Turbo S)
Consumption: 9.7L/100km (Turbo and Turbo S)
Porsche main objective: World's leading sports car manufacturer("Strategy 2018")
This goal of Porsche concern says a lot in case of all its model line implemented in the worldwide
production. Concerning to the certain model that we have chosen - 911 Turbo/ Turbo S, an objective
of the company clearly states a 911 spirit, which is transformed to both customers and competitors
respectively.

Wevealwaysbeenambitious.
Andwellmakesureitstaysthatway.

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

"PEST" Analysis
To analyse the Porsche 911 Turbo/ Turbo S market we undertook a PEEST Analysis study. This type
of study allows us to analyse the external forces affecting the Porsche company. These external
factorsinclude: Political, Environmental, Economic, Social and Technological aspects.
By these aspects, the particular study will provide us with an overview of Porsches impact on the
market, as well as show insights of Porsche macro environment.

Political Forces
Porsche are being threatened by increasing political standards. As the threat of global warming
increases, governments are putting increasing pressure on car manufactures to reduce car emissions.
Porsche currently produces high performance luxury cars and SUVs which have very high fuel
consumption. Porsches range is subjected to stringent regulations which is impacting Porsche and
their customers. The CAFE fuel standards in USA are becoming more stringent and posing a serious
threat to Porsches American market.

Environmental
Global warming is an increasing threat. Oil prices are continuously increasing along with consumer
consciousness. Customers are requiring more economically friendly cars.

Economical
Porsche fell victim to the 2008 economic recession. This global crisis caused widespread
unemployment, increased costs and an extremely sensitive market. In 2010 Porsche was taken-over
by the VolkswagenGroup and required sizable capital investments.

Social
Customer preference and requirements are changing on a regular basis. Porsche are failing to keep up
with important trends to target customers. Customers are requiring more fuel efficient and
environmentally friendly cars which is leading to a loss of brand value for Porsche.

Technological
Porsche harnesses a wealth of technological expertise. They employ some of the brightest engineering
minds in the world. Porsche contains a large database of technological improvements and innovations.
Such innovations include the Seven-gear Porsche Doppelfupplung (PDK) and the Porsche Torque
Vectoring (PTV) systems. With the team Porsche has at their disposal, they are capable of developing
world class technology.

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

"SWOT" Analysis
For Porsche the 911 Turbo/ Turbo S is a more exclusive edition of the 911-lineup. Its technological
differences to the regular 911 is about increasing power and engine efficiency by a turbocharger. This
makes it attractive to the costumers who see the advantages in paying an extra money in combining
more performance and exclusiveness.
To determine how a product as the Porsche 911 Turbo/ Turbo S on a market where different factors
affect its ability to survive we can use the SWOT analysis.A SWOT involves specifying the structure of
a company or organizations strength and competition on the market. Here we can evaluate the
strengths, weaknesses, opportunities and threats. To be more specific we consider the strengths,
weaknesses in a company to be internal and opportunities and threats to be external.
Here the internal points are something that are controllable in the company. It can be characteristics
of the business that gives advantages or disadvantages over others.For the external points, we talk
about elements that are considered as uncontrollable in the company. Such as elements that the
company could exploit to its own advantages or elements in the environment that could cause trouble
for the business. Both internal and external factors for the Porsche 911 Turbo/ Turbo S are significant
in analyzing its market opportunities and conceptual framework.
SWOT-analysis: 2014 Porsche 911 Turbo/ Turbo S:

Internal

Key factors
1. High brand presence and recall

2. Good performer with a touch of sporty style

3. Porsche is owned by a trusted and reputed car manufacturer (Volkswagen AG)

Strengths:

4. Belongs to a model-range that has been the winner of major race events globally
5. Performance features:
- Turbo

- Top speed of 315 km/h, 520hp and 0-100 km/h in 3,4s (3,2s in Sport+)

- Turbo S - Top speed of 318 km/h, 560hp and 0-100 km/h in 3,1 s (Sport +)
6. Strategic integration with Volkswagen
7. Identity

Weaknesses:
1.Extremely high price, High maintenance and running cost, hence limited demand

2.Not suited for rough terrains like those in some emerging economies

Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

External

01/10 2014

Key factors

Opportunities: 1. Capitalize on exclusivity as a luxury brand

2. Implement more luxury and innovative features
3. Expand the market by increasing distribution and servicing network

Threats:

1. Environmental protection regulations

2. Impending recession, which may decrease purchasing power of elite class
3. Competition in the global automotive market

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Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Marketing Strategy
Porsche: Model - 911 Turbo/ Turbo S - Positioning in the market (Illustration):
High Price

Low Quality

High Quality

Low Price

Strategic Objectives and Strategic Focus:

Strategic Categorization Matrix

Opportunities and Threats

Position of Future
Customer Segment
Divest/ Grow

Grow

Grow Enter

Harvest

Maintain

Grow

Divest

Harvest

Maintain

Strengths and
Weaknesses

Position of Current
Customer Segment

Based on the earlier findings on the market attractiveness of the luxury high-performance car
industry and variety advantages of the 911 Turbo/ Turbo S production line possessed by Porsche, we
have made a strategic categorization matrix in order to determine what activities Porsche as a
company takes to strengthen and position the 911 Turbo production line.
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Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Firstly, by having a sustainable competitive advantage in the certain market, 911 Turbo/ Turbo S is
the successor of viable "tomorrow's business" justifying the pursuit of that market. Secondly, talking
about customers, typical buyers of 911 Turbo cars are unaffected by economic climate and view price
as an indicator of quality . This makes a great opportunity for Porsche to have an elastic price increase
strategy that may increase the prestige of the 911 Turbo/ Turbo S. Finally, company's marketing
strategy focus is more directed on 911 production line, because of increased sales volume that leads
to win over competitor's customers. But the major point is that there is a huge trend for smaller, more
fuel efficient cars that can "stand out from the crowd".

Marketing mix
Product/Service
In a marketing mix the product should meet the costumer requirements. These requirements are not only
the functions, but also the appearance of the product.
With the Porsche 911, there are many different types of valued functions and appearances. One of the
functions is, that the Porsche 911 still after 51 years is a rear-engine, rear wheel driven car, with the
same shapes like the very first model. This makes them very loyal to their fans.

That the Porsche 911 is a popular choice among the upper classand car enthusiasts, is not only
because its technologically advancement as a high performance supercar, but mainly because of the
emotional and psychological effect is has on people. They have created the picture, that
owning/buying a Porsche 911, is like fulfilling a dream.
The new functions and appearances Porsche is trying to give the 911, is that of an everyday car. At
Porsche they have managed to keep the 911s appearance as a dream fulfilling sports car while
intergrading this whole new idea. The end result is that the Porsche 911, besides all the
aforementioned functions and appearances, got strengthened its appearance as a reliable car.
Place
Distribution is a very important element in the marketing mix, since roughly 20 percent of the cost of a
product is spent getting it to the costumer.
Even though Porsche is beginning to brand it self as a everyday car, it is still very luxuries, and there is
also a status connected to it.
Porsche cars are only sold in special and exclusive amount of outlets. In whole Germany you only find
85 of these outlets. Thats 1 for every million citizen.
All Porsche outlets are built up the same way. They consists of silver/grey plates that almost all the
time are put together to create round shapes. By doing this, Porsche has created a very strong
recognition value. You now when you see one of Porsches outlets without even havent seen the logo.
Price/Pricing strategy
When discussing the price, the price of a product should also reflect its image.
The 911 Turbo/ Turbo S model share the flagship of Porsche and one of the most luxurious models is
unquestionably reflected on the price. The starting price of a Porsche 911 Turbo is 178.000 and can
go as high as 230.000.
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Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

The pricing strategy for the 911 is premium pricing. This price reflects entirely on the 911 images.
This pricing strategy is also called prestige pricing. Premium pricing often goes hand in hand with
luxury products.
Promotion
Promoting is the communication with the costumers, where the companys goal is to encourage the
costumer to get interested in the product.
In especially the US, the 911 is being promoted using TV advertising. As mentioned above, the
Porsche has changed some parts of the strategy for the 911, to give it the appearance of an everyday
car. The slogan used for this strategy change is Engineered for Magic. Everyday. With this slogan,
Porsche have managed to keep the 911s appearance as a high quality car that offers driving pleasure,
while giving it a more mature scent.
Apart from the TV advertisements, Porsche has founded a car race, only for the 911. By putting the
911 in the racing element, it keeps its appearance as a professionally super car.

Future trends:
Growth - Share Matrix

Market Growth

Question Marks

Dogs

Stars

Cash Cows

Market Share
The growthshare matrix (Boston matrix, BCG matrix) is a chart that helps companies to analyze
their business units or so called product lines, which in this case is a Porsche 911 product line. This
helps the company to allocate resources and is used as an analytical tool in brand marketing, product
management, marketing strategy planning, strategic management, and portfolio analysis. The
principles of this matrix are widely used to determine and analyze both current and future market
performance.
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Marketing GBE
Via University Horsens ELO
Daniel Bleher, Per Hougaard, Brendan Finn and Alexander Kozlovsky

01/10 2014

Porsche 911 Turbo/ Turbo S is positioned in the chart segment - Cash Cows. In other words, this
means that a particular product line has high market share in a slow-growing sport car industry.
Porsche 911 is the core production line where almost all units including 911 Turbo/ Turbo S model
line generate cash in excess of the amount of cash needed to maintain the business of the whole
Porsche AG Group. This model range is regarded as staid and boring, in a "mature" market (Porsche
911 has been sold on the market over 51 years). 911 units are likely to be "milked" continuously with
as little investment as possible, since such investment would be wasted in an industry with low
growth. Overall, 911 Turbo/ Turbo S is settled in a fast-moving costumer goods market, therefore the
company value owning 911 model segment due to their cash generating qualities is rising every year.

Source list:
Web pages:
http://www.streetdirectory.com/travel_guide/58304/performance_cars/short_history_of_porsche_c
ompany.html
http://www.brw.com.au/p/sections/features/why_porsche_targets_women_38lla8VdgDFWfqdsPGN
LQN
https://answers.yahoo.com/question/index?qid=20110211200720AAIpsno
http://www.slideshare.net/derekmitchell562/porsche-strategic-marketing-analysis17225184http://www.brw.com.au/p/sections/features/why_porsche_targets_women_38lla8VdgDF
WfqdsPGNLQN
https://answers.yahoo.com/question/index?qid=20110211200720AAIpsno
http://www.slideshare.net/derekmitchell562/porsche-strategic-marketing-analysis-17225184
http://www.prweek.com/article/1264731/porsche-launches-new-campaign-broaden-its-targetmarket

Reports:
- COMPANY PROFILE - Porsche Automobile Holding SE

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