Porsche Branding Study Essays

Porsche Branding Study Essays Porsche Branding Study Paper Porsche Branding Study Paper Porches was completely acquired by another giant automobile company, Volkswagen GAG in July 2012 and resold 10% of its holding back to the founding family, giving them full control. Porches owns 50. 73% of the voting rights in Volkswagen GAG. Besides selling its own sportscast, Porches also provides automotive financial services, engineering services and consultation services to other automobile companies. The companys revenue has reached ?13. 9 billion with ?2. 44 billion Operating income in 2012. Porchs slogan There is no substitute demonstrates how proud they are about the exclusiveness of the brand. Currently, this company has more than 17,500 employees worldwide. The Marketing STEP Process, (Primp. 2013) The market segmentation, targeting and positioning (STEP) process is a way to define the market, create market segments, and select target customers which guide the company to develop and implement appropriate marketing mix. 1) Segmenting Consumer Markets Demographic segmentation divides the market into groups based on variables such as gender, age, income and geographical locations etc. Porches s a luxury automobile brand, its target customers are middle aged single male, mainly 35-55 years old with high average annual gross income: who are willing to spend money on high-ended and expensive consumer goods. Lately, Porches has extended its product line to the Sport Utility Vehicle (SUB) market which TA regrets the high income family group; as well as the luxury saloon/sedan targeting the business car market. Cryptographic segmentation which divides buyer into different groups based on social class, lifestyle and personality traits. Luxury sportscast are not daily necessities. People willing to ay for a Porches sportscast tend to use it as a tool to reflect their wealthy and superior social status. This is one of the reasons why Porches always advocates on its high quality engines, designs, engineering and assembled materials. 2) Target Marketing Target market consists of a set Of buyers who share common needs or characteristics that company decides to serve segmented by above criteria mentioned in 1). Designated marketing strategies have been developed to apply on different target segments. 3) Positioning Positioning statement: Offering high-ended sports car at a comparatively seasonable price among similar market players. Position Map of the vehicle market As we all know, Porches Company positioned itself as manufacturer providing High Price, High Quality sports cars. It is actually categorizing the brand with outstanding and exclusive product attributes. The price range of the Porches vehicles vary from HECK$800,OHO to depending on the types and models. It is interesting that among the high-end sportscast brands, Porches has a very special pricing strategy. Porches Company is actually positioning itself in the high-end sportscast division, but selling its cars at a imperatively reasonable price among similar market players like: Ferreira, Mistreat, Budgets, Zoned and etc. These brands are offering even more expensive sports cars when compared with the Porches Company. By putting itself in this position, Porches has successfully entered the targeted market in an easier way and allow consumers to purchase the sportscast at an affordable price. Besides, there is an interesting fact that the Porches Company is also offering Powered cars on their official website. You could search the used Porches cars through their official website by location and mind if there are any suitable used Porches cars for the customers. This move could help Porches to infiltrate its products into the general public more efficiently. The Marketing Mix, ups Marketing mix is the most flooded word in the marketing field and it is a useful tool to look at how a business is positioned to reap the benefits of marketing. A Marketing mix is mainly described by four units; including product, price, place and promotion. These units support each other and work together to maximize the benefits of Marketing. 1. Product Porches Company mainly focuses on providing specialized, high-end sports icicles. Product Variety Porches categorized its sportscast into several product lines as follow. Firstly, the Booster roadster series (the 91 1); the flagship model established its reputation in the Daytona Racing in the mid-sass and won major world championship sports car races. Secondly, the Cayman series which is a hard top car model similar to the Booster but offering in a lower price. Thirdly, the mid-size luxury Sport Utility Vehicle (SUB), the Cayenne. Lastly, the high performance luxury saloon/sedan (the Ephemera). Product Durability It is reported that for 70% of the cars produced by Porches are now still inning on the road which means the German precise engineering provided an extra long running life. Besides, the Pre-owned cars selling in their official website shows Porches has 100% confidence on its used car. Product uniqueness In terms of automobile design, a OR (rear-engine, rear-wheel drive) layout is a very unique technique. It is very rare for car manufacturers to place the engine at the back of the car, but this unique design turns out to give a physically smaller, lighter, less complex and more efficient deteriorative. This unique deteriorative is a distinctive selling proposition for Porches sportscast to fraternity from its competitors as there are nearly no car manufacturer offering such kind of chassis design. 2. Price The price of a product is a large determinant of how the market responds to the product. The key factor affecting the pricing strategy of Porches is the production cost; the company will be forced to cover the cost in order to make revenue. Competition pricing Porches sets lower price for the products when compared with its direct competitors, this allows them to capture larger market share. The vehicle prices Of the Porches Company ranged from WHISKS,OHO to By offering sportscast with similar specifications, this is definitely a very compatible price range in the market. Even at a relatively lower price, Porches still guaranteed to provide top quality vehicles and maintain its elite market status. Premium Pricing The high product prices can already tell the exclusiveness of Porches products. Consumer generally believed that a premium priced product equals to high quality. It is easy to understand that a HECK$800,OHO European Porches sportscast must be better than a HECK$200,OHO Korean Handy car. 3. Place It refers to the channel of distribution, and how reachable it is to their customers. The intermediaries offer the manufacturer greater efficiency in making goods available to target markets. Distributorship Porches Company is a world wide automobile manufacturer, they sell cars all around the globe, include: North America, Latin America, Europe, Middle East, Africa, Asia and Australia. Just like most of the automobile company, Porches makes sales through local distributors. Until 2012, there are more than 900 distributors across the world offering Porches vehicles. Shop Environment Most of the Porches distributors are located in the central business district or he prime area of the cities. This helps the company to reach the targeted customers more precise and accurately. For example Porches Hong Kong showroom locates at a very eye catching position along Gloucester Road, Wan Chi. Character oaf brand is not solely represented by the products, but also its presenting images. Borschs distributor showrooms are decorated with modern designs and spacious environment to demonstrate Porches spottiness, performance and luxury characteristics. 4. Promotion The German firm spent massive investment in promoting its brand to create awareness among the targeted customers.. Event Sponsorship Porches sponsored different kinds of motorists competitions such as the El Mans, Rally, Formula One, Indy Cars and some amateur racing. And the key success flagship model sportscast, the Porches 911, established its reputation in the Daytona Racing in the mid-sass and won major world championship sports car races. This model has been classified as Porchs most successful sportscast and more than 820,000 units had been sold until 2013. Comparative advertising is a usual method adopted by Porches. The Company used a lot of printed advertisements, they placed these printed advertisement in famous Mens magazines with masculine and stylish tone expressing their exclusiveness, sportiveness and benefits of owing a Porches car. Besides printed advertisements, Porches also made some television commercials when there is new product launch. The T PVC deliver lifestyle and slice of life messages. Customer Relations Porches has introduced the Porches Club globally; it is a community for Porches enthusiasts across different counties and cities. They conduct Porches-related events including club racing, morning drive activities, and drivers education activities. Besides Porches Club, the company also holds jugular Porches Driving Experience Day, which allows the general public to reach the Porches Sport Driving School and experience driving pleasure with their cars. By engaging targeted customers in the above activities, Porches successfully created a bonding with its customers, enhancing stronger brand loyalty. Celebrities endorsement In 2013, Porches has signed the 26-year-old world class female tennis player Maria Sharecrop as its spokesperson. Porches GAG CEO Matthias Mueller expressed that Maria Sharecrop is an exceptional athlete combining top performance in her sports with elegance and power which perfectly fits the mage of Porches. And the charming appearance of Sharecrop can definitely attract Porchs target customers middle aged male. Customer Based Brand Equity (Keller, 2003) As lenience Porches, the brand name itself already represents high performance sportscast, almost all civilized people in the world aware of this brand. However, people will not think of this brand very frequently because Porches vehicles are very high involvement products. It requires a very long consumption consideration period before making a purchase decision. Performance Comparing to its competitors, Porches is actually providing superb cars with lassie but fashionable design. Their sportscast satisfied all basic needs of customers with reliable and durable technical performance but at the same time with a comparatively lower price among its competitors. Imagery General public generally agreed that Porches is a grand master class brand; it is not available in ordinary car dealers showroom showing its exclusiveness. Besides, the Made in German represents high quality and precise. Judgments Considering its quality and credibility, Porches is well-known of its precise, excellent engineering and assembling techniques. The superiority of the rand is also one of the considerations in this area, the unique product design and compatible pricing become advantages that their competitors cannot offer. Feeling Regarding the feeling, Porches sportscast give their users fun, excitement, social approval and self-respect. The sophisticated Porches Company always means the elite status, premium vehicle and a symbol of wealthy. Resonance Concerning the resonance in users point of view, Porches did very well to build customer relationship. For example, there are many Porches enthusiasts who are keen in collecting Porchs sportscast, holding local riving event and build private Porches lovers communities. Not only the enthusiasts will participate in the above activities, ordinary drivers are also willing to share their feeling and experience with other Porches owners. Besides, official Porches club has regular newsletter to strengthen the bonding between Porches car owners and the brand. The Prism of Identity Seafarer (1992) Brand identity could be represented by a six-sided prism diagrammatically. Each market condition gives raise to concepts and methods to adapt to such conditions. When products werent so abundant, one simply resorted to an old Unique Selling Proposition. After the era of image, positioning, and brand personality, we have entered into the brand identity era. Porches Company is now ranked 78th in the Conferee Ranking The Brands Top 100 Positions. Ranking The Brands. Com collects all brand rankings published worldwide and can find the position of the brand. It is compiled on the basis of all the rankings, the position of a brand in the list is determined by the number of rankings in which it appears and takes into account its position in each ranking. Reasonably Priced Porches (left advertisement) In this advertisement, it states Look at it this way, its either an expensive portrays or a very reasonable racer. Porches is actually differentiating itself in a unique position, a high ended sport car, but one can also consider it as a very reasonable priced racer. It shows that both the product quality and pricing of Porches fall between sportscast and racer. Example of Comparative Advertising (right advertisement) In this print advertisement, it expresses the meaning of owning a Porches is different from a Ionians or a Mediumistic vehicle, no matter on performance of the car or the social approval aspect. In the left advertisement, it states that the ours of El Mans car racing exults and Porchs racers conquered most Top 1 0 places except the 8th runner-up. Theres no tougher endurance race than El Mans. stated in the lower part of the advertisement. Expressing that the extra durability and the powerful Of Porches engineering.