Porsche principle

Citation

Lester, R. (2007), "Porsche principle", Strategic Direction, Vol. 23 No. 8. https://doi.org/10.1108/sd.2007.05623had.009

Porsche principle

Porsche principle

Lester R Marketing Week, 22 February, 2007, Start page: 24, No. of pages: 2

Purpose – To profile leading German car manufacturer Porsche. Design/methodology/approach – Considers why Porsche has been so successful and the challenges facing it in the future. Findings – Porsche is set to take control of fellow German car manufacturer Volkswagen after the European Court of Justice ruled that a law protecting VW from a takeover should be scrapped. States that Porsche is one of Europe’s most powerful carmakers and, with revenues about one-fifteenth the size of VW but with profits only slightly less, it is also the world’s most profitable carmaker. Explains that it has diversified its product range in a way that rivals have failed to do and still sits at the top of the European car industry despite being a niche player. Reveals that Porsche is a minor advertiser in car terms, working with integrated agency CMW rather than a retained above-the-line agency, and eschews TV ads in favour of print. Adds that one of Porsche’s biggest strengths is its customer service but the main challenges will be keeping the brand relevant for a new generation of car buyers and responding to the European Commission’s plan to force vehicle manufacturers to cut greenhouse gas emissions from new cars by 20 percent within five years. Originality/value – Concludes that, with its burgeoning model range and increasingly strong position in the VW boardroom, Porsche’s core business is in good shape, but, like the rest of the car industry, its success will depend largely on how it negotiates the emissions challenge.

Keywords: Advertising, Automotive industry, Marketing strategy, Porsche, Volkswagen