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Case – Porsche Canada – Selling Winter Driving

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In this case will study the challenges of changing consumer perceptions in a long term, with a limited marketing budget, and how the marketing analysis can provide a best decision.

About the company:
Start the selling cars in 1948 with the “356”
Its most popular car was the 911
2002: introduction of the Cayenee, sport car line
Products in Canada (2008): Boxster and Cayman (entry-level, midengine -$55,000) , 911 (premier model – $120,000), Panamera (first four doors – $110,000), Cayenee (families seeking luxury and practicality $70,000) Porsche is a high-end luxury car brand

Known by the luxury and performance-oriented cars
For the consumers has the most prestigious car available

About the Market:
Male, 45 years old, in a high income bracket ($100,000 per year or more). Such as: architects, consultants, doctors and lawyers
They interested in the Porsche’s rich heritage of technical excellent and high performance In Canada is seen as a luxury item (second or third car of the family), with frequently washings and waxing. The drivers: taken out infrequently and driven carefully

Canadians are a particular market, different from the Europeans and Americans According the information from the article, there were approximately 24,000 Porsche owners in Canada (to date, 2009).


SWOT analysis:

Problem recognized: “How can we encourage Canadians to drive their Porsche

vehicle in winter?”

This problem was recognized when the director of Marketing noticed that the Canadians rarely drove their luxury car in the winter, and that affect the sales  signified fewer sales in winter. This occurred because of the following main problems that the consumers reported: luxury vehicles should not be driven in winter because the ice and salt sports cars generally perform poorly in winter conditions

It is not a good idea drive a luxury car during the winter where it could be scratched or damaged more easily. This problem increasing due the car be low.

But, the director of Marketing, from an engineering brochures, knew that the Porsche line was perfectly suited and tested for intense conditions. There were also many products and accessories on the market for Porsche vehicles in winter conditions. Thus, the crucial challenge was change the habit, the usage behavior, or in the other words: Change (overcoming) the Perspective of the Consumers, about the car and the winter driving.

4P’s analysis:

Target Market: Potential Porsches owners
Price/Product: High-end; luxurious cars
Promotion: microsite, brochures, television, etc
Place: national campaign (Canada)

Prior to Rawlinson’s current campaign, Porsche had not needed any global precedent for winter-specific marketing messages.

Rawlinson estimated that 30 percent of the owners in Canada would be open to buying winter equipment (approximately 7200 owners  24000*30%).

Rawlinson believed that potential existed to double the number of Porsche sport cars (911, Boxster, Cayman), if change the perception of the consumers.

There are four types of Porsche winter equipment for sale that includes winter wheels and tires sets for $3,000, mats set for $300, roof racks set for $400 and winter apparel and gift items for $150; thus, the whole set of Porsche winter equipment is $3,850. Thus, 3,850*7200 owners = 27,720,000

She was considerering:
$20,000 for new microsite expense, $50,000 for new winter equipment brochures cost and $50,000 for communication expense. How she should launch the Panamera
how they should be conveyed and the information that should be provide (to change the consumer’s perception)

Thus, if Porsche change the view of the customers, they will raise the number of vehicles sold in the winter, the number of spare parts, and to create a new category of winter accessories to drive in sales, in other words, this mean a significant growth in the sales.

Costs with advertising: (for 12 weeks):

Newspapers: 1,300*12 = 15600
Television: 200,000
Direct Mail: (1,500/1,000)*24,000 (number of owners) = 36000 Radio: ((90+120)/2)*12 = 1260
Magazines: ((1,200+5,000)/2)*3 (3 months = 12 weeks) = 9300
Outdoor: 3,000 + (5,000+12,000)/2 = 11500
Online: 1,200*3 = 3600

Constrains: limited market budget  choose the cheapest and most efficient option

How change the perspective of the consumers?

Porsche should start a campaign to help educate the drivers that their cars are engineered to endure and maintain quality through winter weather.

1º – Evaluate which communication channels are efficient for this case:

Educate/connect with the target market:
Newspapers: yes
Television: yes (for the launch), but is expensive
Direct Mail: yes
Radio: no
Magazines: yes
Outdoor: yes
Online: yes

Costs involved to promote the all four models (included costs with advertising, new microsite expense, new winter equipment brochures cost and communication with dealers); campaign to launch the Panamera: Newspapers: 1,300*12 = 15600

Direct Mail: (1,500/1,000)*24,000 (number of owners) = 36,000 Magazines: ((1,200+5,000)/2)*3 (3 months = 12 weeks) = 9,300 Outdoor: 3,000 + (5,000+12,000)/2 = 11,500
Online: 1,200*3 = 3,600
New microsite = 20,000
New winter equipment brochures = 50,000
Communication with dealers = 50,000
Television to launch the Panamera = 200,000

Cost = 396,000

To the Marketing:

Alternative 1: Newspaper + Direct Mail + Outdoor (*4) + Online + New microsite + New winter equipment brochures = 171,200 (promote the all four models) Alternative 2: Television to launch the Panamera + Outdoor(*4) + Online + New microsite = 269,600 (more expensive but promote the all four models and spend money for the campaign to launch the Panamera)

Other Recommendations:

Offer a special promotion at local car washers for Porsche owners to receive a free cleaning. Use the television and internet to show current Canadian Porsche owners taking their vehicle for a ride in the winter weather and commenting about how it was the experience Provide a winter drive experience for the costumers

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