Product-Line Strategy at Porsche: The Effect of New Models on the Porsche Brand and the 911

17 Pages Posted: 30 May 2017

See all articles by Paul Farris

Paul Farris

University of Virginia - Darden School of Business

Eric Kang

University of Virginia - Darden School of Business

Jordan Mitchell

University of Virginia - Darden School of Business

Abstract

The Porsche 911 has long been the face of the company's product line. Over the years, Porsche has added models priced either above or below the 911, but only the lower-priced models have sold well. Porsche seems to struggle between what an executive calls the "pull of the market" and the "tug of brand equity." This case provides an opportunity for students to analyze the optimal breadth of a product line that will balance sales, profitability, dealer satisfaction, and long-term brand health and customer satisfaction.

Excerpt

UVA-M-0695

Rev. Jun. 30, 2011

Product-Line Strategy at Porsche:

THE EFFECT OF NEW MODELS ON THE PORSCHE BRAND AND THE 911

The 911 is the most universally recognized car on the planet. From the very first bathtub 356 to the modern 911, the formula for a successful Porsche has never deviated. Put the engine in the rear, outrageous fender flares at each wheel (but especially in the rear), and make sure, damn sure, that the styling is predicated on styling cues established 40 years ago.

Along the way, Porsche has tried to deviate from this simple formula—the 914, the 928 and, of course, the 944, none of which have been successful, despite the fact that all (and I include the 914 in that category because the 914/6 version was a great car) were exemplary motor cars that outshone their contemporaries.

. . .

Keywords: product-line policy, marketing

Suggested Citation

Farris, Paul and Kang, Eric and Mitchell, Jordan, Product-Line Strategy at Porsche: The Effect of New Models on the Porsche Brand and the 911. Darden Case No. UVA-M-0695. Available at SSRN: https://ssrn.com/abstract=2974666

Paul Farris (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

Eric Kang

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Jordan Mitchell

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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