Porsche Canada

Porsche Discussion Questions

1. How do Canadian consumers view this brand and why? Compare and contrast Porsche’s Canadian and International markets around this issue.

- Porsche was usually a second or third car for families in Canada

- Internationally the brand was usually appreciated by people who were interested in Porsche since they were teenagers

- Usually interested in the rich heritage of technical excellence and high performance

- The average global consumer of Porsche cars are 45 year old males, who have an income that exceeds $100,000

- European consumers are less reluctant to take out their Porsches in the winter then Canadians and German drivers did not need any special advertising to promote winter driving

2. What is Porsche Canada’s rationale for selling winter equipment?

By selling winter equipment it could encourage consumers to drive their Porsche vehicles through all the seasons. This is in turn would cause more purchases of spare parts and increased sales for Porsche overall due to natural wearing.

3. What are Canadian consumers’ issues with winter driving and how can Porsche Canada overcome these perceptions?

“Some Porsche drivers were worried about the resale value of a winter-driven car.” – make a system to help certify pre-owned vehicles for resale, including winter driven cars.

“Having invested so much in their cars, they did not want to subject it to gravel, salt and a higher likelihood of being in a collision.” - This can be avoided by using the winter equipment brochures to help teach consumers about what they need to help protect their cars as well as being able to educate them on things that have already been engineered into the cars to help against damage.

“They did not perceive their Porsche to be everyday cars.” – the marketing campaign for Canada needs to change showing Porsche cars driven in the winter seasons as well to reinforce, that their vehicles can be driven during winter.

4. What does a financial analysis of Rawlinson’s options reveal? Assume that Rawlinson has a $500,000 budget and Porsche dealers and Porsche Canada earn a margin of 15 per cent each on its winter equipment.

A financial analysis of Rawlinson’s options reveal that with a $500,000 budget she would have enough money to go through with everything she wanted to do. The costs include:

Newspaper - $15,600

TV -$200,000 (would only be able to run one 30 second spot)

Direct Mail – $18,000

Radio - $14,400

Magazine - $12,000

Billboard – $48,000 (could cost more depending on level of detail)

Online – $14,400

Micro Site - $20,000

Winter Brochures - $50,000

Communication Costs - $50,000

Total Cost -

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