[Solved] marketing porsches core segments classic sports cars

Porsche will launch a third model range in 2002 in the form of the Cayenne, which will represent a new venture in many respects, for example

– Not a classic sports car but a sports utility vehicle (SUV)

– 1st vehicle unrestrictedly suitable for every day use from Porsche/1st Porsche with the potential to be a first vehicle

– new market and competition environment for Porsche

The Cayenne means a major step for Porsche

– Jump in volume from approx 50000 to approx 75,000 vehicles per year

– For the first time Porsche is entering a market segment outside classic sports cars

The market success of the Cayenne is vital for Porsche, Porsche cannot afford to fail

Reason for coming out 3rd Porsche

– The Cayenne gives Porsche an opportunity to expand its sporting image to a 3rd dimension

– The cayenne will supplement the existing product range consisting of the 911 and Boxster and is not substitute

– reduce its dependence on Porsche’s core segments of classic sports cars (coupes, convertibles and roadsters)

– to minimise the risk of cannibalisation between the series

– by expanding the rang of customers/the “source of business”

– to continue to promote the social acceptance of the Porsche brand

– to enhance the sympathy and fascination for the Porsche brand

– to establish new growth potential for turnover, sales and earnings

The premium segment of the SUV market is subject to very dynamic growth and is enormous.

Marketing situation

It is growing very dynamically and is comparatively large It has developed more and more towards premium, sportiness and high tech The premium segment of the SUV market is subject to very dynamic growth and is enormous.

Marketing environment



The HK economy underwent a distinct slowdown over the course of 2001. The GDP decelerated sharply in growth from 10.5% in real terms in 2000 to a mere 0.1% 2001.

Consumer spending remained subdued with job security concerns and prolonged weakness in asset markets. The unemployment rate has climbed up to 7% in March 2002.

Change in company car taxation


The Government budget proposals 02./03, will be formulating policies to improve HK’s business environment and enhance competitiveness, particularly in the high technology, high value added industries.

The principal “one country two system” is sustained.

Insurance intermediaries must be registered in order to comply the legal requirement. The motor salesmen also provide the insurance service to the customers.

Mr. Tune Chee Wah re-relected as Chief Executive for another 5 year term.

New ministers and executives councillors system effective on 1st July 2002, in coalition government of the administration of the Chief Executive.

Homologation procedure


Financial secretary forecasts a GDP growth of 1% in real terms for 2002, real trend growth of 3% over the medium term. As the excess capacity within the global economy has yet to be digested and local deflationary pressure will remain, there would be a fall of 1.5% in the GDP deflator for 2002 and 0.4% trend growth over the medium term. Beside, economic restructuring will continue for some time, so the unemployment rate is expected to increase further in the short term.


Internet is most appropriate method to communicate with the customer. It is easily to collect the customer data though Internet and pass the novelty information to customer though e-mail. It could reduce the time and human intervention of each transaction with customers.

Porters five forces model

Threat of new entrants



Seal of quality, engineered and manufactured by Porsche and made in Germany

Through customer-client-relationships with Volkswagen Porsche reduces the costs – without adverse effects on the Cayenne

Common platform but different product feature to share the risk and cost with VW.

Higher performance compare with the mainly competitors.

Porsche has invested around 128 million Euro in the new plant.

Porsche Traction Management (PTM) permanent four-wheel drive featured as standard.


A complete additional factory is required for production of the Cayenne, resulting in very high fixed costs

Greater market risk due to the danger of being unable to achieve competitive prices

Very high additional development costs due to the development of a new independent model range – servel financial burden

As a manufacturer of “small series” Porsch has to bear higher costs – comparatively high purchase prices due to small ordering quantities from system suppliers

Marketing segmentation

SUV: 4 wheel drive, tailgate, high ground clearance, larger wheel diameter


The Cayenne is the first car to be launched by Porsche outside the classic sports car market This involves a major evolution of the image of the Porsche brand. The main criteria for the success of the market launch of the Cayenne will include – that it is regarded by propsects and potential customers as a “genuine” Porsche, that the independence of the Porsche Cayenne vehicle concept is appreciated by prospects and potential customers.

Sporting & demanding lifestyle & lifestage vehicle & King off the road & versatile practical and comfortable & private and family car company car (also for large companies)

Cayenne S will be the best performance compare with the other competitors. Cayenne Turbo offer s the potential to win over existing SUV, saloon and estate cars and mainly develop the new dimension.

Target Group

Porsche owner

Cayenne, Excellent supplement to existing cars

Replace an existing SUV or existing saloon with a Cayenne

Build up a range of Porsche cars (Cayenne + 911/Boxster)

With 2/3 second cars in Cayenne sector category (example 40+ ordered already)

Current owners of directly competitive vehicles

e.g. Range Rovers, BMX x series, Lexus RX300 , Toyota Land cruisers, MB ML etc

Non-Porsche owners

Potential for wining over owners of SUV ‘s of other brands

Cayenne – new standard in the SUV segment : chassis, handling, safety equipment, performance.etc

Potential for wining over owners of up-market saloon cars

Cayenne – More sporty and fresh in design, more dynamic, greater practicality, etc

Potential for wining over owners of high performance estate cars:

Cayenne, more space for luggage and passengers, image Badge of Success”) etc.

Cayenne Competitors

Direct competitors:


Mercedes Benz M-class

Jeep Grand Cherokee

(New) Landrover Range Rover

Audi allroad quattro

None of the above vehicle is fully comparable with the Cayenne


The new Porsche Cayenne is available in two model variants: Cayenne S and Cayenne Turbo

New standard: on and off road, with respect to agility, handling, driving performance, driving comfort and driving safety.

The resulting key performance data puts the Cayenne S at the top of its competitive field, the Cayenne Turbo even opens a new segment.

The Cayenne Turbo thus attains performance values, which far exceed the usual standards in the SUV market.

Communication mix

3 steps will divide the worldwide launch concept for the Porsche Cayenne. It includes Heritage, development and product branding. Hertiage phase is mainly focused on classical advertising communications, on the Internet, in dialogue marketing etc. The official photo is starting the second stage of Development Phase. The objective of this phase is to heighten the tension further, again via all communication channels by disclosing details from the Development until the market launch of the vehicle. The last phase 3 is to help the launch the vehicle correctly on the market.

Objective: Slogan” “The next Porsche”

General Objective

– Preparing the brand for launch

– Highlighting the brands’link with the new sengment.

– Creating a niche within a niche – the ‘first of its kind”

– Winning over new customer groups

– Motivating Porsche drivers to also buy a Cayenne

– Aviod weakening the position of the 911 or the Boxster

– Intergrated communication via all methods and means

Target groups for communication

– direct target groups according to previous owners, Porsche owners and customers foreign to the marque

– indirect target group, general public with an interest in cars.

Communication strategy

The 1st phase,”Pre-campign” the highlight would be the wealth of experience that Porsche has to offer in the offroad segment and links up with both emotionally and the major Porsche successes such as Porsche skills in four wheel technologies.

The strategy is mainly addresses to collect the potential purchasers for the Cayenne in the central database.

The 2nd phase, “Launch Phase” is the 1st time to present Cayenne and the key product feature to the public. It will show the vehicle in a few teaser photos.

The 3rd phase, “Penetration Phase”, will start the actual launch of the Cayenne. It will show the Cayenne as a unique vehicle and establish it in the market. It should ultimately result in the purchase of a Cayenne.

To ensure the integrated marketing strategy the communications for the Cayenne will be available as usual in a coordinated form via all channels. The additional methods to achieve the objective are also necessary including classical advertising, the internet and to direct and commercial marketing. The Imax film project “Top speed” and the computer game of the same name as also the supplement of the communication strategy.

Visual concept

The communication is mainly delivered the dynamic on-road and off-road driving shots. These photos are impressive proof of the Cayenne ‘s high performance abilities o a wide range of terrain.

Classical advertising

The advertising will follow the tried-and -tested model in term of layout. Driving shorts will be taken from different viewpoints and emphasis on the versatility and features of this new Porsche. In order to establish a visual presence for the Cayenne, double teaser advertisement with a very specific target audience and a heading with a wider appeal as requested.

Direct marketing

It will be conducted either via the traditional channel, classical direct marketing in the form of mailings, or via the Internet with the help of e-mails. It will send out the different stage of direct mailing to the target group and the catalogues with price list will be arranged at the final stage.

Porsche will reach the traditional standard media: TV, advertising publicity, internet marketing and direct marketing directed at known prospects and customers.

Though those of channel customers will be asked to Porsche hotline or to register for the Porsche’s internet page. The customer data will be input to database.


It can be access online statistics from each participating market, which provide around-the-clock and up-to-date information on status of the programme and the data of the registered prospects. The register can reflect the great interest in the Cayenne as well as increased press coverage.

Basic communication materials – mainly focused on catalogues

Point-of-sale material

It includes hanging decoration set, information display, large picture wall CD, stand poster, picture card, adhesive foil, flags and video package.

Public relation

Cayenne will be arranged to show on different important Motor show for Media coverage such as Frankfurt and Paris. The press drive event will be given to the reporter at the same time. It is mainly given the opportunities to drive and feel performance of Cayenne.

Personal selling

The product training will be given by Porsche to increase the product knowledge to the salesmen and marketing executive. It is because only the well train salesmen can convey the correct message to the customer such as the technology knowledge and competitors information.

Sales promotion


Refer to the position of Cayenne S and Turbo, the objective of pricing would be the product-quality leader and charge premium prices. Porsche is known for it superior high performance, reliability engineering and excellent safety features. According to premium quality, it can charge prices higher than competitors such as MB and BMW.

In order to the market analysis, Cayenne S will be proposed the price little higher than the mainly competitors BMW X5 4.4 with the same standard equipment.

From the other point of view, there is no direct competition to the Cayenne Turbo due to the new market segment, The price will be suggested to set in the Porsche Turbo level.

"Looking for a Similar Assignment? Order now and Get a Discount!

"Looking for a Similar Assignment? Order now and Get a Discount!