Sunday, February 17, 2013

Porsche Canada

by: Ken Mark and Dante Pirouz 

What is the article about?



Porsche Canada wants to encourage their Canadian customers to drive their cars during the winter. The prize, is increased sales of cars, by consumers currently unwilling to buy a Porsche only for summer driving, and winter accessories, such as snow tires. However, this is a three-way challenge because Canadians have three arguments against the idea of driving luxury during the winter: 
  1. luxury vehicles should not be driven in winter due to the ice and salt
  2. sports cars generally perform poorly in winter conditions
  3. it is unwise to drive a luxury car during the winter where it could be scratched or damaged more easily. 

Sometimes you Have to Change the Perspective

Customers usually have a perspective of what things work, what is accepted or not, or which things should be used inc certain situations. In some cases, they are wrong, and this comes from the fact that most of these assumptions are created by society and everyone adapts to them. This was the case for Porsche Canada. Their main problem was the perception that Canadian "potential" customers had that the Porsche cars were to be driven only during the summer. This perception was causing Porsche Canada to loose some customers and not be able to increase their sales. It was in the Marketing Department hands to change this idea and introduce a car in which they showed that it was possible and perfectly fine to drive during the winter. 

Obviously, the customers know that Porsche cars are not cheap and they are very luxurious, so the company needs to still present the car with the luxurious features that it brings but also show that they have certain features that help or aid the car during the winter driving. Selling winter accessories was a great approach that they had, as this created some reliability on the product and gave the customers a little more confidence that the cars are not only to be driven during the summer. 

Nonetheless, I believe that Customer Relationship Marketing (CRM) is very important to solve the problem. Prosche Canada, or any other company, needs to understand its customers and their needs in order to provide them with the best service. If they want to be able to drive their cars during the winter, Porsche needs to come up with certain features that will make the customer want to buy the car. I found very interesting how Porsche uses this commercial to portray its car as multipurpose. They show how the car can be using in various situations in life and they show the car being driven during the winter to catch the customers attention on the fact that the Porsche is not only a summer car.     


Key Issues and Solutions



  • Misconceptions between Porsche owners and winter driving, leading to an imbalance for the company. The owners of the Porsche company need to understand what the perception of winter driving is. They need to market their cars in a way that customers will believe and have trust that the cars will function well during winter too. Accessories or awareness of the subject might be a solution for this. 
  • The current customers are not using their cars during the winter time because of their perception that the weather will ruin their cars and that sport cars are for summer time use only. The potential customers don't buy the car because they are expensive to be a "seasonal" car. 
  • Porsche Canada needs to focus on changing the Canadian winter driving behavior and perspectives to reflect the ability of the cars. This will increase their immediate revenue for long term growth. The sales of winter equipment will increase substantially too. 
  • Consistent brand imaging and messaging is important to change the perspective of the Canadian drivers. They need to focus on making their brand recognizable. They could do so by introducing a driving program for current and prospective customers in order to try the product and that wain, gain credibility. 

Potential Customer Point of View


"Porsche cars are so cool! I really want to buy one. The problem I see with them is that they can not be used during the Winter because they are going to get scratched or ruined easily. It is expensive and I wouldn't like to have the snow ruin my car. Also, I'm not spending that much money on a car that is "seasonal" and that I will be driving only during the summer. It snows a lot here in Canada, and for that same price or even lower, I can buy a nice car that can be used all year long. Maybe a SUV would be a better option for me since they are taller. The Porsche cars are very low and i don't think that they will be able to move well in the snow. I don't want to be dealing with my car getting stuck in the snow or even putting my life in danger if the car sides in the snow. If I am going to spend a lot of money in a car, I want it to be capable of functioning in any terrain, any weather condition, and that keeps me safe." 

What would you do if you had a Porsche? Would you drive it during the Winter?







2 comments:

  1. Good post. I think that other luxury brands can all learn from this example. I find this misconception very hard to break. It seems to be natural for people to "protect" valuable belongings even when they are made to be used. If I bought a Porsche just because I wanted to have it but not because I needed it, I would be hesitant to drive it during the Winter.

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  2. As Huan alludes, can you create a brand that combines luxury and the ruggedness required to survive winter in Canada? The "engineered for magic" is a great tag line and the commercial certainly gets people thinking beyond "sports car." Is it enough to get people to expand the brand image beyond "protect my expensive toy" mentality?

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