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

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. . . .