Case Study for Porsche Canada

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Date: November 8, 2012
Course Code: MCS*2600
Course Title: Consumer Behavior
Professor: L. Foti
Assignment: Case Study Report

Introduction
Porsche Automobil Holding SE is a German luxury car company founded by Ferdinand Porsche in 1931. Until 2008, the Canadian segment of Porsche was operated through Porsche Cars North America. When Canadian sales reached nearly 2,000 units, the company decided that there should be a headquarters and operations to meet the demands of the local market. Porsche Canada became an official stand-alone subsidiary in April 2008 (Mark, 2011). Porsche Canada had sold 1,682 new vehicles in Canada by the end of its first fiscal year ended in July 2009. Porsche has twelve dealerships in six provinces across Canada. Net profit, at the end of the fiscal year 2006, was over one million dollars. The most popular Porsche model sold in Canada over the years has been its sports utility vehicle, the Cayenne with an average list price of about $70,000 (Mark, 2011). The strategic target customer for Porsche is an Xer who is 45 year-old, professional, and affluent male who earns over $100,000. Most of the customers became interested in Porsche while they were young; they are very brand loyal and acknowledge the country of origin of Germany is known for manufacturing well-built cars. In Canada, a Porsche was the second or third vehicle within a household. The main competition for Porsche are BMW, Audi and Mercedes Benz, while Aston Martin, Lamborghini, Ferrari and Maserati are the competitors for the higher priced Porsche model, 911 (Mark, 2011).

Problem Statement
Porsche Canada would like to increase sales to customers in the winter months and make customers aware of the winter equipment sold by Porsche. There are many Porsche owners who do not drive their cars during winter because of snow, sand, salt, and other drivers etc. Porsche drivers were reluctant to drive their high priced sports car in the winter (Mark, 2011). There is a decline in sales in the winter months, as Porsche drivers perceive their vehicles to be “summer-only”. This is consumer perception. To improve the sales of vehicles in these months, Porsche will incorporate new ideas and advertisement to attract more people and encourage current Porsche drivers to drive their car during the winter.

Situation Analysis
The main problem for Porsche Canada is that many people do not drive their Porsche during the winter months and therefore is a decline in sales during those months. Below is a SWOT Analysis for Porsche Canada.

Strengths
1. Research. There has been a lot of consumer research to develop Porsche Canada as a brand. Porsche has a number of studies examining the purchasing cycle of Canadians. 2. Knowledge. Porsche Canada has done extensive research on their consumer. A marketing scheme has been developed to appeal to the targeted Porsche driver. 3. Loyalty of Customers. Porsche drivers are very loyal to that brand. Many of them had been interested in owning a Porsche since they were teenagers. This might be caused by consumer socialization from their wealthy parents who might have owned a Porsche. They indulge in the abounding heritage of high performance and technical excellence of Porsche. (Mark, 2011).

Weaknesses
1. Advertisement. The company is not advertising the brand to the best of its ability. Many drivers of Porsche do not know about the winter equipment offered by Porsche so that one may drive it all year round. 2. Selectivity. The company knows a lot of information about the client and that may work against it. The company should be looking to enhance its market with other demographics. 3. Limited number of models. There are five types of models of Porsche, with four of them being a sports car. There are not many options available for a couple going through the Parenthood Stage in the Family Life Cycle with multiple offspring, who would like to enjoy a luxurious vehicle like...
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