The Porsche AG Strategic Plan
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Porsche positioned itself in the market as the innovative racing car manufacturer. Porsche began its journey way back in the 1900. The man who founded Porsche is known by the name of Ferdinand Porsche, he was an engineering genius. Ferdinand was the whole package, he had entrepreneurial spirit, had the excellence of an engineer, maintain organizational flexibility, and mostly importantly he was a racer.
The Porsche AG History and Market Mix Discussion
Company History
Porsche AG is legendary for its innovative and beautiful automobile designs. The Porsche 911, first manufactured in 1964, quickly became one of the world's most famous and most recognizable automobiles. The company has also been on the cutting edge of automotive engineering and technology, using the sports car racing circuit to develop and improve products renowned for their high performance and outstanding handling. It is not surprising that Porsche has recorded more victories than any other automobile manufacturer in such classics as the 24-hour LeMans and the 24-hour Daytona races. In 1997 the company successfully introduced the Boxster, a newly designed, lower priced sports car. Plans to design and manufacture a suburban utility vehicle in conjunction with Volkswagen were announced in 1998.
Market Mix Discussion: (Product, Price, Place & Promotion)
Thus, the company offers a wide range of products which include the following: Polo, Up, Golf, Jetta, Beetle, Passat CC, Pasat, Sirocco, Tiguan, Touran,Eos Sharan, Phaeton and Touareg. Some Salient features of Volkswagen products are as follows
High quality cars with a brand name to support
Good service delivery with very few escalated complaints
Fantastic distribution for the products.
Depending on the size, level of exclusivity, options and power of the engine, Volkswagen car prices range from affordable to expensive and that is what happens with many other cars. However, Volkswagen prides itself as a car manufacturer which manufactures cars that the average person can afford. However, Volkswagen is a German company, and being an exporter to India, there are naturally several cost considerations, which makes Volkswagen less of a value for money product and more of a bit costlier product.
Each of Volkswagen car is manufactured and distributed in key locations for strategic reasons so that the channel can easily access the cars and can get the delivery on time. There are various car distributors throughout the country who distribute the cars manufactured by the company. The aim of the company is to penetrate the automobile market in India because it views India as one of the largest markets in the world. The company's market strategies are geared towards selling 300 units of its iconic car Beetle. The company may be new in the Indian Market but it has made a lot of improvements.
The company used a lot of ATL media like TVC's and print media in its initial year in India to promote its brand and products. But considering that India started experiencing a surge in automobile market competition, the company had no option but to adopt other marketing strategies like digital, BTL and out of home media in addition to the ATL media. The company is also using social media platform to market its products. In a bid to strengthen its brand image, the company launched an integrated marketing plan in 2009.
Current Situation in the Industry Market and General Environment Analysis
Porsche right now is concentrating on increasing their product line and production ofautomobiles. In the recent years, due to the recession in the US in 2008, Porsche had to come upwith automobiles that have high mileage with low amount of fuel. This is because the crisis andprice of gasoline in the US. But the US government came up with a policy know as theCorporate Average Fuel Economy (CAFE) which set the mile per gallon requirement (mpg) ofnewly manufactured cars to even a higher level of 39mpg. This will leave Porsche with a diluted brand and their graspon sports car enthusiast consumers will be demolished. This is the current major problem thatPorsche is facing regarding their decision making on whether to start manufacturing varioustypes of cars or to stick to what Porsche always offered before.
Environmental Analysis
The success of Porsche in the automobile world has been due its long time ability to deliver efficient and quality products for its customer base (Hoskisson, et