Cayen Porsche

1257 Words6 Pages
Porsche had always been one of the most successful and influential brands in the world. The Carrera 911 is the dream car of many ambitious men. Before Cayenne launch, there is only one lower price Porsche Boxster had been added as a new product line to the brand in 1996 . Throughout the years, Porsche had successfully built up a strong high-end sports car identity. The Cayenne news was shocking for consumers, as they could never imagine such a product. In this paper, I am going to identify problems and issues about the Cayenne launch regarding the HBS case.
The Cayenne Problem
Two major problems had been rose from the Cayenne launch. The most direct problem is negative feedbacks from the online community, enthusiast were angry about
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In the Porsche GTS commercial, a tagline “Porsche GTS, the bloodlines are unmistakable” was added at the end which linked the Cayenne with the traditional Porsche image. Analogically, similar method can be applied on the Panamera launch as well . With the prevalence of social network sites such as Facebook and Twitter, companies can easily response and interact with customers today without being formal. If Cayenne is launching in present time, the company can response to Rennlist by letting major Porsche employees to post their thoughts on social network sites. For example, Porsche’s chief designer can tweet (posting on Twitter) about Porsche identity. This is an effective public relation technique to convey their stance on the issue without a formal statement.
Cayenne: Brand extension or dilution? Combining the HBS case exhibit 6 and different quotations of Rennlist posts, it was obvious that Cayenne is causing a brand dilution. Since there was only pure sports car (Boxster, 911) under the brand since the company was founded in 1931, any non-sports car line extension will be easily perceived as a deviation from the traditional root. Brands such as Mercedes-Benz that had always provided a wide range of car models will not encounter the same impact when their SUV was introduced . It was the Porsche exclusiveness that created this customize barrier for the brand. Beside the admiration
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