Porsche: Guarding the Old While Bringing in the New

SynopsisThis case presents a very interesting story about a luxury carmaker, Porsche. equivalent many marketers of luxury goods, Porsche has had to wrestle with the challenge of serving its core of loyal customers while also making products that appeal to a less traditional, but growing, discussion section of customers. The case describes the Porsche faithful who like their Porsches only one-way 2 doors, six cylinders in the rear, and lots of pure sports car performance. The problem that Porsche has faced at various times throughout its existence is that being confined to one kind of customer with one kind of car inevitably results in maturation and stagnation. gross revenue flatten out, then decline, and so do profits.This case describes recent efforts by Porsche to broaden its product line and appeal to multiple segments of customers. Most notably, Porsche now makes an SUV (the Cayenne) and a four-door sedan (the Panamera). Both of these efforts are designed to appeal to a diffe rent kind of customer than the ones who typically buy 911s. But these vehicles are not mild around the edges. They perform like, well, the Porsche of SUVs (and sedans). Porsche has identified two types of customers that are sustaining these vehicles and keeping the company on a growth trend. These are Porsche customers who grew up and have practical take of hauling people and stuff, and the emergence of wealthy people in China, India, and other parts of the world who have more interest in a nonchalant driver.As the economy recovers, Porsche is poised to serve various customer types with a portfolio of outstanding vehicles.