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Marketing Plan – Porsche Panamera Essay

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Updated: Jul 21st, 2021

Situation Analysis

Porsche Panamera is one of the car models that have been developed by Porsche in the recent past, having been developed in 2009 (Challen, 8).

The model was developed to boost the company’s sales through its innovative design that would ensure better performance, comfort, and safety of the users (Challen, 8). The increasing customer needs witnessed in the automobile industry include user safety, comfort, and fuel consumption and the model has managed to meet some of these needs.

Market Summary

Porsche Panamera has a thorough understanding of the market trends and the changing needs of the clients in the automobile industry.

The management of the company believes that its research center, Weissach, is equipped with all the necessary knowledge and technology to develop models that are needed in the market (Challen, 9). The company will make use of this asset to have a better understanding of the market trends as well as how to communicate to their clients.

Market Demographics

The company focuses on luxury and comfort. As such, the clients of this company are among those with the highest hold income. In 2007, the Porsche brand had the highest household income with an average of $187,705 (Anon, para.1). About four fifths of the clients are males and the average age is about 40 (Anon, para.3). These trends hold in the current market.

Market Needs

The industry is characterized by a number of customer needs that form the basis for competition. Clients opt for brands that are fast (efficient engines), fuel-efficient (less fuel consumption), cheap, and yet provides high level of comfort. The safety of the users in terms of the vehicle’s stability during use is another important need of the clients.

Market Trends

The automotive industry has been regaining momentum after the 2008-2009 crises and significant increase in sales was witnessed in 2010 (about 6.9 million units sold globally) compared to 2009 (TransitList, para.1). It has also been forecasted that the sales for 2011 will be hire and the trend is likely to continue due to production of electric vehicles (TransitList, para.1).

Market Growth

The sales at Porsche saw a significant decline between 2009 and 2010 for its earlier models. Most of the models that the company had developed by 2009 had significant decrease in sales in 2010 in the European and the US markets.

In the Western Europe, the sales for 911 decreased by 20% in the second quarter of 2010 compared to a year before, Cayenne sales reduced by 22%, Boxster reduced by 16% while Cayman reduced by 18% (European Autos Data Book, 84).

In the United States, the sales for Cayenne reduced by 50%, 911 reduced by 15% while the sales of Boxster and Cayman increased by 28% (European Autos Data Book, 84). In this second quarter, the sales of Panamera model was about 1487 in Western Europe and 2000 in the United States (European Autos Data Book, 84).

SWOT Analysis


Porsche has high quality brands and strong brand names. According to the management of the company, great innovative research was put in this model more than the efforts that had been put in the earlier designs (Challen, 8). The model was designed to deliver a high level of comfort for this category of vehicles, with four-door four-seater design.

As the company aspired to be the innovative leader in this segment, the management settled on low and wide car that could be luxurious (Challen, 8). The company is also highly flexible in its operations and has effective risk management mechanisms (Dietz, 11).


Despite the research efforts that have been witnessed, the company has small innovative capacity (Dietz, 11). The research department relies on innovative ideas that have been developed by other companies in the industry. Besides, the company has too much focus on the luxury segment. The company has also not gone global in its sales; it is mainly concentrated in the United States and Western European market.


There are emerging markets in the developing nations offering more opportunities for business expansion. Besides, clients opt for cheap and more efficient vehicles in terms of fuel consumption.

Environmental agencies also impose policies that advocate for reduced emission of toxic gases by automobiles. The company has the ability to continue research and innovation to create more models that meet these criteria in order to capture a wider market.


A number of threats still stand on the way of the prosperity of sales of Porsche Panamera. Even though there seems to be an effective resumption from the economic crisis witnessed in the last decade, there possibility of the same scenario being encountered. Similarly, there are also competing models some of which are relatively cheaper and provides similar quality (Peterson, para.18).


Just like in many other industries, the automotive industry is characterized by high levels of competition. Porsche Panamera receives competition from other models that provide similar quality at competitive prices. One competitor is BMW 740i powered by V6 engine (Peterson, para.18).

The model is five-seater, is sporty, and relatively cheaper than Panamera, the starting price being $71,525. The other competitor is Audi A8 that has the same fuel consumption as Panamera but starts at $1000 less (Peterson, para.18).

Product Offering

Porsche Panamera has been providing luxurious and price-competitive automobiles in the European and US market. Through different brands and pricing for the Panamera models, the company targets a wide range of clients in these markets.

For the year 2012, the company has scheduled to introduce a new model into the market. The Porsche Panamera S hybrid, which has a relatively high starting price, appeals to the clients due its fuel-efficiency, comfort, and speed.

Keys to Success

The keys to success of the company include marketing the automobiles to its clients. This is achieved through market and marketing strategy. The company has to engage in market research as well as research and development so that they produce models that are in current demands in the market. Continued cooperation between the top management and the research department is another key factor for success.

Critical Issues

Some of the critical issues the company faces in the industry is compliance with environmental and trade policies that may also vary across countries.

The company has to abide by the provisions by environmental management agencies on emissions from the transport industry. It is also necessary that the company explore the emerging markets to quantify the opportunities that may be available, an initiative that may have high overhead costs.

Marketing Strategy

The Porsche Panamera S hybrid is an improvement of the previous models and has higher starting prices. It is then inappropriate to introduce this brand in the emerging markets in the Asian or African countries. Thus, the company will first introduce the model into the European and US market.

An extensive advertisement will be employed to appeal to the clients on the quality of the new model that positions it above the other models in existence in the market. After achieving a good reputation of the brand, the company will then move on to emerging markets. Advertisement will still be done for the older models as well.

Marketing Objectives

The main objective of introducing the model is to increase the sales of the company in 2012 by about 15% from the sales of 2011. This increase in sales has often been achieved by an introduction of new model as was witnessed in 2009. The company also aims at penetrating more into the developed as well as the developing markets.

Financial Objective

The company aims at cutting down its operating costs like transportation and warehousing by 5% each quarter of 2012. This will be achieved through effective supply chain management to determine what quantity of products is needed in the different markets at a given market.

The company also aims at building strong relationships with the clients in the emerging market in the first encounter in order to cut down the successive costs of client acquisition.

Target Markets

The market for the product is in the developed countries and some developing nations. Porsche’s models are in the sporty luxury segment of the industry and the potential clients are individuals with relatively high household incomes.

However, the company has also brands that are a little relatively cheaper that targets individuals with lower household incomes. The individuals interested in luxurious and sporting activities are the main targets for the new and older models.


In order to attract more clients, the company will appeal to the clients that its brands are worthy in providing the necessary comfort while maintaining vehicle efficiency. The customers will have to be convinced that the product is developed in line with their needs and that the specifications of the model conform to the legal provisions in environment and trade policies.

Strategy Pyramids

The company aims at enhancing customer awareness of this new model as well as the older models and building a strong relationship with the clients. The information will be passed to the clients through advertisements.

The adverts will involve a description of the modern features of the models like engine capacity/efficiency, speed, fuel consumption, and the expected emissions be given mileage. This will not only appeal to the clients but also to the law enforcers.

Marketing Mix

Porsche Panamera, just like the other products in of the company, has price differentiation. The company produces cars of this model at different prices depending on the needs and financial abilities of the clients in order to capture a larger market. The Panamera S was the first car of this brand and its starting price was $90,775 (Peterson, para.3).

The company then introduced base Panamera in 2010 with a starting price of $75,375 for a rear-wheel drive and $79,875 for an all-wheel drive (Peterson, para.3). The new model to be introduced in 2012 will have a starting price of $95,975 (AutoWeek). The company has various distribution centers located in the European and US markets.

Much effort is in place to expand the distribution centers to emerging markets. The company also has online store from where the clients can shop over the internet. The company shall advertise its products through the local newspapers and television channels in the different market regions. It will also use internet to reach some of the clients as this communication medium is increasingly being adopted globally.

Marketing Research

The company has a market research department that collects information on the market trends and customer needs in the market. The development of this brand was originally initiated by the market research department of the organization (Challen, 8). The department identified that there was a potential and promising market for sports-like four door cars that drove on fore wheels.


The above marketing strategy has a connection to an analysis for the different prices, the sales forecast, and the expenses that are like to be incurred.

Sales Forecast

Within two years after the introduction of the first type in 2009, Porsche has sold out about 30000 Panameras worldwide (Car Pages, para.2). This is an average of 15000 per month and about 1250 per month. The company has purposed to introduce Porsche Panamera S hybrid in 2012, a move that may see the company realize increased sales due to the vehicle’s features like fuel consumption and speed (AutoWeek).

The model is destined to have a starting price of $95,975 (AutoWeek). With the introduction of new model and extensive advertisement, the company expects increased global sales as depicted in the following graph. The company expects global sales of 21,000 Panameras by the end of the year (2012). With an average price of $85,000, the global sales forecast for Panamera in 2012 is $1.785 billion.

Fig.1 Sales Forecast for Panamera in 2012

Sales Forecast for Panamera in 2012

Expense Forecast

The marketing expense will only be high in the initial quarter when the company embarks on extensive advertisement and promotion. In the first quarter, the company will spend an average of $360,000 on marketing research, advertisements, and sales promotion.

This figure will be reduced to $300,000 in the second quarter and to $200000 in the third and fourth quarters. This translates to $3,180,000 for the total marketing expenses for the year 2012.


The market plan gives a guide on the implementation procedures that the management of the organization has to follow in order to achieve the marketing objectives.

In order to evaluate the effectiveness of the program during the execution, the monthly revenue from each market, the total expenses month as well as the level of customer satisfaction will be monitored for each of the early months. Necessary reinforcements can be made if significant fluctuation is recorded.


The key steps that are to be used in the marketing are indicated in the following table. The promotions and evaluations will be necessary throughout the entire period.

Table.1. Implementation schedule for the marketing plan

Activity Start date End date Cost (US$) Responsible personnel Department
Marketing research 1/1/2012 31/3/2012 340,000 Marketing manager Sales and marketing alongside R&D departments
Advertising1 1/1/2012 31/3/2012 540,000 Marketing manager Sales & Mkt
Advertising2 1/4/2012 30/6/2012 600,000 Marketing manager Sales & Mkt
Adevrtisning3 1/7/2012 31/12/2012 840,000 Marketing manager Sales & Mkt
Product promotion 1/1/2012 31/12/2012 86,0000 Marketing manager Sales & Mkt
Total 3,180,000

Marketing Organization

The marketing process will be carried out with marketing department under the Manager (sales and marketing) in conjunction with other departments like research and development.

Contingency Planning

The company has purposed to penetrate into the emerging markets while maintaining its position in the developed market as well. This ensures that it develops a good coverage for its clients. The research and development team is working continuously to develop competitive models in order to absorb the economic fluctuations that may be experienced in the future.

Works Cited

Anon. . 2007. Web.

Auto Week. 2012. “Porsche Panamera S Hybrid.” AutoWeek 61.11.

Challen, J. “Porsche Panamera.” Automotive Engineer, 2009.

Carpages. . 2011. Web.

Dietz, C. Porsche: Porsche’s success in the automobile sector and its involvement in VW. 2006. Web.

European Autos Data Book. White Book – European Autos Data Book – 2Q:10: The Cyclical Recovery Potential Is Clear…But the Timing Remains Uncertain. NY: Bernstein Global Wealth Management, 2010.

Peterson, T. “Review: 2011 Porsche Panamera.” Web.

TransitList. Trends in the Automotive Industry 2010-2011. 2011. Web.

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