Product-Line Strategy at Porsche: The Effect of New Models on the Porsche Brand and the 911
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.
Collection: Darden University of Virginia (USA)
Ref: DARDEN-M-0695-E
Format: PDF
Number of pages: 17
Publication Date: Aug 3, 2004
Language: English
Review date: Jun 30, 2011
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Description
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.
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Industry Setting: Automobile/Automotive
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