CASE STUDY ASSIGNMENT # 1 PORSCHE CANADA: SELLING WINTER DRIVING Mrs Leila Hamzaoui Essousi
THE TEAM: MONSTERS Safa Hanfi Feriel Babbou Yassine Kacem Ilyes Belhaj
The Table of Content:
The executive summary Situation analysis (and current problem the company is facing) a. The market b. Micro-environment c. Macro-environment The assignment questions Key marketing issue and expected results
The executive summary
Rawlinson’s concern is to succeed to attract a new segment of the market and to change both users’ behavior and perception towards the Porsche products. In fact, what is common for the Porsche users is that they tend not to use their vehicle during winter time; a habit that they acquired because of the weather conditions that damage their precious and usually wellmaintained car. Worldwide, Porsche takes part into the market of high end luxurious cars, it competes with brands known as being highly ranked in their range (Lexus, Mercedes). So is the case in the Canadian market. Porsche is a brand that captivates a certain category of buyers, with an average age of 45 years old certainly ones with a high income and a good social status who can afford the car’s price. The different models offered by Porsche makes it possible for the brand to capture the interest of different users all along the years. Five models of Porsche are displayed to please the interest of the brand’s amateurs who are usually into this brand since their early age. The Canadian market had witnessed an evident decrease in sales that went down by 17 % between 2007 and 2008 due to the financial crisis not because of the relocation of Porsche Canada. The challenge is that even though the luxury car market is filled with competitors such us BMW, Audi, Mercedes Benz and Jaguar, the users are more attracted to standard and basic sports car that they will use during winter. The C4 is one example of these vehicles, it is considered as being suitable to fit the user’s need as he looks more for the adequacy to the roads conditions than to comfort and aesthetic aspects. a) The Macro Environment Analysis: based on PESTEL analysis : Political factors: The regular political factors that we could extract from this macro environment are the regular taxation policies and the trade regulations within this stable government. Economic factors: there is a clear and evident decrease in the number of the sold products as well as the profits made in the period extending from 2007 to 2009. We can explain this drop by the economic crisis that had occurred during that period which had affected several domains including the luxury car’s industry which had suffered from great losses and enormous decreases in the market. Socio-cultural factors: if we take a look at the average users of the Porsche cars, we can clearly notice that these customers are mainly 45-year-old males with a high income bracket that allows them to afford such a “jewelry”. They are attracted by this German car thanks to its reputation for being an excellent engine and a beautiful eye-catcher. Its heritage and wellknown history in different races makes it more tempting for an amateur to crave for it. Technological factors: As long as the technological factors are concerned, the Porsche car is always visible in all media outlets, whether on the internet or in the E-commerce transaction. In fact technology is a basis approach for the globalization process in which this industry is thriving. Environmental factors: The main issue in this case is the environmental conditions in Canada that are having an important impact on the market ns the sales of Porsche’s cars during that season. Indeed, as Canada is known for its crude winter season, the bad winter weather over there led to giving up on using the luxurious cars that Porsche is selling. However, the...