Assume that you are the advertising manager for Porsche and that it is your responsibility to develop an advertising campaign to introduce a new sports car. This vehicle will be a high-performance, two-seat convertible with a retail price of approximately $40,000, much lower than the brand’s current lowest priced model.

How would Porsche have to Market it?
What would be their biggest obstacle?
What media type should they use?

I've been thinking about it and maybe this could happen. I wonder how porsche would deal with this. And how would their target market react?

 

Lol, what class are you writing a report for?

 

It would close to suicide for Porsche's present market postionto seel that car under its brand. A lot of people who pay much more for Caymans and Boxsters and Carreras would feel the brand identify had been diluted (they'd be right). Porsche would have to see mega-sales of this car to justify the sales and profits they would lose on those models. I doubt any sports car would sell at the volume needed.

They would be smarter to make a deal with some other brand to sell it (VW)and let word get out it was "made by Porsche" or have a dash plaque that said "PorscheDesign." which would justify, say, a $2000 premium for the car, 66% paid to Porsche.

As two examples of different solutions manufacturers used in his situation in thepast, study the Ferrari Dino and the Fiat Dino in the 70s I think it was - the one a real but bottom end Ferrari and the other a really cool . . . Fiat. But it had a "Ferrari" engine (although some said, no, the Ferrari Dino had a Fiat engine) but it didcommand a premium price (for a Fiat).And it was pretty cool (for a Fiat)

The other is the decision Aston Martin (then owned by Ford) made to bring out thecurrent model Vantage in 2004 or so (not to be confused with earlier model Vantages in the late 80s). Here, Aston brought out a V8 (as opposed to all its other models at the time - V12s) costing about $135K, when it's lowest cost offer DB9with a V12 prior to that was about $190K+. It is a damn good car and worth the money, but it uses what is really a highly modifed Jaguar engine, etc., and parts-bin engineering in places, which allows them to make a hefty profit. This decision to do that made sense from a business standpoint, because they could sell about ten times as many Vantages as all other Astons (very few Aston's were made and sold annuallyprior to the current Vantage, which sells about 3000 copies a year). Ford was basicaly doing good, classic market analysis of "how to use the brand."
The increased sales maybe 5 to 6 times the volume Aston had ever had before (Aston Martin sold only 32,000 cars or so, total,from 1932 through to 2005), easily justified the hit they might take in image. They did this while keeping the key factors that makes Aston Martins unique the styling (it looks like an Aston, in fact many say it is the prettiest model yet) and that it is hand-built to extremely high quality standards I have one and it isno faster thanthe 2004Porsche 911 it replaced, but is beatufiully finished and assembled beyond anything Porsche sells, hence they keep that "Aston Martin" character at a lower price, sell more cars, and in their case, make much more money.