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COMPANY CasePorsche: Guarding the Old While Bringing in the New________________________________________

Talipcan UĞUR 070100119Ersel ŞİMŞEK 070120283Ayça Arslan 070090095Onur UZUN 070100020Thomas Schwarberg 990121324Alexej Simeth 990125306

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The Porsche AG is a German automotive company head-quartered in Zuffenhausen/Stuttgart in Germany and owned by VW

Total Sales 143,096Revenue (Mio. €) 13,865Employees 17,502

Niche Brand producing exclusive cars(Toyota 9,75 Million sales in 2012)

IntroductionPorsche AG – The company

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1931 “Dr. Ing. h. c. F. Porsche GmbH” was founded by Ferdinand Porsche; at first just engineering office1947 First Porsche Model 356 was built

“I very simply built my dream car […]” F. A. Porsche1964 The Porsche 911 was introduced to market1970s The much cheaper models 914, later 924 and 944

were introduced1991 Porsche nearly went insolvent (neg. income)2002 Entering the SUV-market with the Porsche Cayenne2009 Entering the luxury sedan-market with the Porsche Panamera

IntroductionPorsche AG – The history

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IntroductionPorsche AG – Porsche 914 became the top selling model…

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Porsche recovered and is now the most profitable automotive company in the world

In 2006 Porsche earned about 21,799 € per car before taxes; 9 times more than the 2. place in ranking

Philosophy: “Exclusivity. Individuality. Craftsmanship.”

“We’re not lookingfor volume; we’researching forexclusivity.”

IntroductionPorsche AG – Present

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Financially successful people

Porsche is a mirror for the customer’s self-image

The car is like status symbol – people want to distinguish

A car for people who enjoy driving

IntroductionPorsche AG – The Customers

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Analyzing the buyer decision process of a traditional Porsche

customer

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1. Analyze the buyer decision process of a traditional Porsche customer

NeedRecognition

Postpurchase Behavior

PurchaseDecision

Evaluation of Alternative

InformationSearch

- Financially successful people.

- Strong and satisfying feelings

- Accomplish daily task.

- Purchase intension & purchase decision

- Consumer expectation and satisfaction

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1. Need Recognition

The traditional Porsche customer, follow the first stage Need Recognition. Most of the traditional Porsche customer is a financially successful people, and who see themselves entrepreneurial. The need to show themselves with the right car and Porsche is like a piece of clothing to stand for.

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2. Information Search

The customer started information search for the right car, which is the challenging Porsche with the competent performance machine. Most of the consumer of Porsche has a strong and satisfying feeling of it, so they may not need to do information search.

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2. Information Search

If all they needed was something to get them from point A to point B, they could find something much less expensive. Customer expected other to like their cars and enjoy riding with in it. Most of the traditional Porsche customer is delighted with the perceived performance of Porsche, too.

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3. Evaluation of Alternatives

Once all the information is gathered, the consumer prepares to make a decision. To help with a proper decision the consumer may also evaluate alternatives.

Porsche has positioned itself in the car industry has a historical and Luxury/performance based brand. The “car enthusiasts” buy what they know can perform the best and that has longevity. For Porsche, this helps dwindle the evaluation of alternatives for their potential consumers.

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4. Purchase decision

Most of the Porsche buyers are not moved by information but by feelings. Because Porsche represent luxury and challenging, customer will buy it in order to make difference or out of the ordinary.

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4. Purchase decision

They develop a personal relationship with their cars, one that has more to do with the way the car sounds, vibrates, and feels, rather than the how many cup holders it has or how much cargo it can hold in the trunk. They admire their Porsche because it is a competent performance machine without being flashy or phony.

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5. Postpurchase Behavior

Lastly, when a consumer makes a purchase they assume certain outcomes, preferably a positive one, with that product. The only way the expectations are met comes from whether the consumer has been satisfied or not. This aspect of the process would be considered the post purchase behavior. According to the numbers and statistics of the sales mentioned in previous posts, I can firmly say that the consumers are satisfied with the Porsche products.

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Question 2 :Contrast the traditional Porche customer decision process to the decision process for a Cayenne or Panamera

customer

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Question 2 :Contrast the traditional Porche customer decision process to the decision process for a Cayenne or Panamera customer

1-Traditional Porsche Customer’s Reflections

2-Cayenne and Panamera Customer’s Reflections

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Traditional Porsche Customer’s Reflections

• Not just another utilty vehicle but a life style. • High prices imply high status.• Take traditionalist stance on certain improvements.

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Cayenne and Panamera Customer’s Reflections

• Emerging market customers are - not sticked to 2 doors and engines in the back. • Some traditional markets customers - move in life stages that brings new needs.

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

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Ferry Porsche:We did no market research, we had no sales forecasts, no return-on-investment calculations. None of that. I very simply built my dream car and figured that there would be other people who share that dream.

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Factors influencing consumer behavior

Cultural

Social

Personal

Psychological

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911

Porsche Models

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914

Porsche Models

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924

Porsche Models

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944

Porsche Models

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As a result, Porsche increased sales goal by nearly 50 percent to 60000 cars a year.

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Market shares which begin to be insufficient

Minimum rate of customers to run the company

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Question 4:Explain how both positive and negative attitudes toward a brand like a Porsche develope

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• Porsche was founded in 1931. It was desingned the original Volkswagen Beetle

• First two decades, the company built Volkswagen Beetles for German citizen and tanks and Bettles for the military.

• In the 1950’s and 1960’s the company began to sell cars under its own brand named Porsche AG.

• After few decades Porsche 356 was created.

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• In the early 1970’s, Porsche introduced the car 914, cheaper than 911.

• After that Porsche introduced 924 and 944. So they increased sales goal by nearly 50 percent a year.

• Porsche loyalists were not happy. Because they wanted to keep as a small group. On the other hand, the Porsche cars were losing their quality, more faster cars are introduced.

• By 1990, Porsche reverted. It started to product cars faster and more expensive

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How might Porsche

change consumer attitudes toward the brand?

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They can consumer attitudes while produsing special car for consumers. For example, Porsche can develep their cars alterable. So consumers feel more exclusive. Addition to, their car should be less expensive but more qualified and faster.

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What role does the Porsche brand play in the self-concept of it‘s buyers?

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A Porsche Buyer‘s Self Concept:

• Financially successful• See themselves as entrepreneurial• Set high goals and work hard to achieve them• Expect exclusiveness from the products they surround

themselves with

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Why do they buy Porsche?

• Personal relationship with the car

• Moved by feeling, not by information

• They just enjoy driving in it

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In conclusion...

• A Porsche reflects the self image of it‘s buyer:- Upper level- Successful- High social statuescostumers with an exclusive lifestyle

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THANKS FOR YOUR LISTENING…