Porsche Cayenne Case Study
“Porsche: The Cayenne Launch” Case Study
1. Why is Porsche launching the Cayenne product?
a. To leverage its brand across a wide range of product categories
2. What are the benefits and risks of the Cayenne launch?
a. Risks
i. Cayenne would join a competitive and crowded SUV market ii. Potential for new entrants threatens sustainability of Porsche’s sales forecasts iii. Launching a luxury SUV was an expensive bet for Porsche iv. SUVs were under attack in the U.S. by cultural critics
v. Potentially damage Porsche brand and turn away loyal customers
b. Benefits
i. Will diversify Porsche products for protection against potential declines in sports car market ii. Will combine traditional Porsche styling and performance with off-road driving capability and spacious interior iii. Expected to sell 20,000 units per year iv. Will lead to future growth potential in sales, turnover, and earnings
v. Open the way to future product diversification for Porsche
3. Does the Cayenne launch change the overall meaning of the Porsche brand?
a. Yes; Suburban soccer mom connotation conflicts with Porsche cool factor
b. VW responsible for major aspects of production, with only final assembly to be conducted by Porsche
c. Assembly in Leipzig put into question its “Made in Germany” moniker
4. Who are the Porsche consumers? How would you characterize them? What do they want?
a. Upper-class drivers who appreciate and desire stylish cars that are fun to drive
5. Should Porsche engage with the online brand community? Why or why not?
a. Porsche should take the valuable information provided by the online brand community into consideration to a certain extent
b. However, Porsche should not engage with online brand community because it is a home for Porsche users, not Porsche makers, and this sense of community contributes to Porsche brand
c. For example, a college administration engaging with a fraternity interferes with the sense of brotherhood)
6. What can executives learn from Cayenne
1. Why is Porsche launching the Cayenne product?
a. To leverage its brand across a wide range of product categories
2. What are the benefits and risks of the Cayenne launch?
a. Risks
i. Cayenne would join a competitive and crowded SUV market ii. Potential for new entrants threatens sustainability of Porsche’s sales forecasts iii. Launching a luxury SUV was an expensive bet for Porsche iv. SUVs were under attack in the U.S. by cultural critics
v. Potentially damage Porsche brand and turn away loyal customers
b. Benefits
i. Will diversify Porsche products for protection against potential declines in sports car market ii. Will combine traditional Porsche styling and performance with off-road driving capability and spacious interior iii. Expected to sell 20,000 units per year iv. Will lead to future growth potential in sales, turnover, and earnings
v. Open the way to future product diversification for Porsche
3. Does the Cayenne launch change the overall meaning of the Porsche brand?
a. Yes; Suburban soccer mom connotation conflicts with Porsche cool factor
b. VW responsible for major aspects of production, with only final assembly to be conducted by Porsche
c. Assembly in Leipzig put into question its “Made in Germany” moniker
4. Who are the Porsche consumers? How would you characterize them? What do they want?
a. Upper-class drivers who appreciate and desire stylish cars that are fun to drive
5. Should Porsche engage with the online brand community? Why or why not?
a. Porsche should take the valuable information provided by the online brand community into consideration to a certain extent
b. However, Porsche should not engage with online brand community because it is a home for Porsche users, not Porsche makers, and this sense of community contributes to Porsche brand
c. For example, a college administration engaging with a fraternity interferes with the sense of brotherhood)
6. What can executives learn from Cayenne