Ferdinand Porsche founded a design and engineering firm in 1931 in Stuttgart, Germany which designed Volkswagen Beetle. Later in 1948, the name of Porsche has become synonym of sports cars when Ferdinand Porsche and his son Ferry Porsche established a shop with 200 workers whose first innovation was the Porsche 356 with engine of Volkswagen Beetle. After a short span of 1.5 years, in mid 1950’s, Porsche introduced it’s very own and more powerful engine in the 356.
“A company can’t please all customers. But it can delight a segment of them.” (Iacobucci, 2013). Porsche exercises 3 main component of marketing to harvest maximum profit and remain as a leading automotive company in its segment which are:
Porsche utilise two variables to identify appropriate segment to target that are descriptive variables including demographic, psychographic and geographic and behavioral that includes the individual response to brand, usage and benefit.
Demographic variable used by Porsche comprises income ( over $ 1,00,000), age ( 40 years old owner), gender ( 85% male, 15% female), education, occupation and social status. Average age of Porsche owner in 2007 was 48 which rose to 51 by 2012. To attract more female and young drivers, Porsche launched ‘Engineered for magic , everyday’ campaign which resulted in increased purchase by young females from 8% to 15%.
In 2012, Porsche has inaugurated a dealership in Nigeria to target wealthy in sub-Sharan African market.
In 2013, Porsche signed contract with legendary tennis player Maria Sharapova. After assigning Maria Sharapova as a brand ambassador of Porsche AG Matthias Mueller, CEO of Porsche AG, said, ” With Maria Sharapova, Porsche is now extending its involvement in women’s tennis globally.” In addition to this, to attract more women consumers to Porsche, Porsche AG sponsors German women’s national team and the Porsche talent team Germany that braces talented young players. To accelerate sales, Porsche AG launched hybrid versions of Panamera – a sedan sports car and Cayenne – a crossover utility vehicle in 2013 . Cayenne and Panamera enabled Porsche to extend itself for everyday use. At the same time, Porsche launched a promotional event to encourage Panamera owners to upgrade their cars to an innovative hybrid version.
Undoubtedly, after all these successful events, Porsche Cars North America Inc. announced it has sold over 42,000 cars in 2013 that is 21% more than in 2012 which was 35,043 cars. According to the 2016 U.S. vehicle dependability study carried out by J. D. Power Porsche secured 2nd position with 97 problems per 100 cars sold moving up from fifth position in 2015.
Capability of Porsche to revitalize itself by exploring new market extending into new segments while preserving its heritage proves the Porsche as an icon.