Porsche Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Porsche through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Porsche Product Strategy:
Porsche has always maintained its brand image and has always targeted high end customers. They follow the theory of high-priced-high-quality sport cars available for premium segments. The portfolio can help understand the marketing mix product strategy. Their line up includes the following:
Consumer Cars
Cayenne, Panamera, 911, Boxster and Macan. Porsche line up includes from Porsche Boxster Roadster to their one of the most famous product Porsche 911. Then they have midsized SUV i.e. Porsche Cayenne and high end luxury car includes Porsche Panamera.
Racing & Concept Cars
Porsche has been manufacturing racing cars and also been developing concept cars keeping the future of automobiles in mind.
Hybrid & Electric Cars
Like some of the other big automobile brands, Porsche has also invested in manufacturing electric cars or hybrid variants. A lot of hybrid variants are available for 911, Boxster and Cayenne.
Porsche has always tried to come up with quality product so that they can retain their customers. Porsche was founded in 1931 and they are still expanding and growing. It has been found that the cars built by Porsche out of which 70% are still on the roads. This shows that what quality products, this company comes up with. More than 200,000 Porsche cars are manufactured every year. While Europe is the base for manufacturing the car, the company has invested in Malaysia to setup a production plant.
Image: pixabay
This concludes the product strategy in Porsche marketing mix & strategy.
Porsche Price/Pricing Strategy:
Below is the pricing strategy in Porsche marketing mix strategy:
Porsche brand well known across the globe and people buy cars from different parts of the world. But, their most of the sales happens in United States and it is around half of the total sales.
If we see the balance sheets of past few years, we can find that the profits are increasing year on year and around $1.7 million cash lies with the company. If we closely observe, when Porsche Panamera S was introduced in the market, it was priced around $130,000. But with time, the price came down to $120,000 in order to boost sales. This is the technique that Porsche has been using for quite few years. This is known as price skimming in its marketing mix pricing strategy where you introduce your product with high price. But with time, the company lowers the prices of the products in order to increase sales. They also used psychological pricing strategy where they kept 2-3 dollars less than whole figure. The best part is that if Porsche changes the price they have smaller or no change in demand as they have exclusive cars which everybody cannot afford. Thus, we can say Porsche don’t follow competitor based pricing. The annual revenue of the brand is more than $30 billion.
Read more about Porsche
Porsche Place & Distribution Strategy:
Following is the distribution strategy in the Porsche marketing mix:
Porsche has a very simple distribution channel which gives an edge over other automobile companies. They follow a direct distribution channel system where there is licensee and customer can go directly to it. Sales persons available there explain the functionality of the product to the customer before buying. Thus, the follow of the products is fast and hassle free.
It has been seen that Porsche is present across the globe but USA, China and Germany are the top sellers of cars in the world.
Porsche Promotion & Advertising Strategy:
The promotional and advertising strategy in the Porsche marketing mix is as follows:
Porsche mainly targets people who are affluent and wealthy. They generally bring products keeping in mind the premium segment. Their customers mainly constitute medium-high class people. They also target customers based on age. They have young customers in the age group of 20-25 along with business men in the age group of 30-40. Basically, Porsche uses media such as TV to promote its products. So, they follow above the line marketing strategy. They often do offline promotions such as through magazines. So, they even follow below the line marketing strategies. However, they don’t provide incentives such as offers and discounts as the people they are targeting are rich and wealthy. Hence, this covers the Porsche marketing strategy & marketing mix.
About Porsche:
Porsche AG which is a Germany based automobile manufacturing company that is specialized in making very high speed vehicles such as SUVs, sedan and sport cars. Porsche AG is owned by Volkswagen AG where they have 50% stake in it. It was founded in the year 1931 by Ferdinand Porsche and has services spread across the globe. It’s headquarter is Stuttgart, Germany. They have employee strength of 30,000 and are increasing exponentially for past few years. Their line up includes Porsche Cayenne, Panamera, Porsche 911, Boxster and Macan. They also provide services such as engineering services, investment management and automotive financial services. But, their large chunk of revenues comes from selling of cars.
Porsche cars are sold worldwide and it has been seen that their sales remain unaffected even during recession. This shows the customer loyalty towards the brand Porsche.
Browse marketing strategy and 4Ps analysis of more brands similar to Porsche. The Marketing Mix & Strategy section covers 4Ps and 7Ps of more than 800 brands in 2 categories.
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