Case Study of Porsche: Market Environments and Challenges in UK and USA

International Marketing
Case Study of Porsche
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Table of Contents
Introduction.................................................................................................................................................3
Market environments of Porsche in UK and USA.......................................................................................4
Discussion on Local Adaptation or Global Standardisation for the chosen Markets..................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
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Introduction
The Automobile industry is one of the largest industries in the global market. The constant rise
of interest among consumers on high-end cars has increased the sales that have created high
competition in the market. The global automobile industry has different players operating in the
market with different target audience and segments. In this scenario expanding a business or
surviving in a new market becomes extremely tough for an organisation. It is essential to note
that in the last couple of decades in the automobile industry has changed as per the interest of the
consumers and this has exerted immense pressure on the top players of this industry. Working in
different countries and continents bring different challenges for these organisations and hence it
becomes extremely important for them to ensure the effective strategy is developed to mitigate
the continuous pressure of competition in the market (Abdelkafi, Makhotin and Posselt, 2013).
Porsche is one of the most preferred high-end car brands trading all across the world. There are
many consumers who love this car for its technical advancements, style and aristocracy but it is
important for the organisation to alter its decision-making system for effective operations in two
different countries. Porsche has good markets in the UK and US which are from two different
continents and yet extremely important from the business point of view of the organisation
(GREEN and Warren, 2019). Hence, the present study would discuss the key challenges and
issues faced by Porsche with reference to these two markets.
Market environments of Porsche in the UK and USA
Analysing the market environment is extremely important for an organisation because it not only
helps the organisations to make effective plans but it also helps to oversee the efficacy of the
plans made to sustain in the market for a longer period of time. For an automobile brand like
Porsche, it is essential to understand the marketing challenges which would accordingly help to
design marketing strategy (Dunning, 2014). The US and UK markets are extremely important for
the brand but since these are extremely big markets an organisation could face different
marketing challenges. Porsche has had effective sales in both the UK and US markets but one of
the major challenges that both these markets have in common is the amount of competition that
is directly related to one of the key marketing concerns that are generating traffic and leads for
the organisation. It is important to note that in a market where there are many buyers pose
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serious problems for organisations because the consumers have many choices and in order to
make sure that the organisation is able to compete in the market. For this, it is imperative for the
organisation to have an effective marketing system to be implemented to handle both the markets
(Baden-Fuller and Mangematin, 2013).
The marketing mix model is one of the most important and effective marketing tools for any
organisation. It is important for a company like Porsche to focus on implementing this tool
effectively to get the best possible result. In the present case, it is important to highlight the
importance of promotion for a luxury car brand like Porsche because promotion plays a crucial
role in the success of an organisation (Webster and Lusch, 2013). Porsche is one of the high-end
cars that doesn’t emphasise largely on promotion especially through the mass media
advertisement because it is naturally expensive and hence targets a niche market in every country
it operates in. one of the biggest challenge the organisation at the present moment faces in the US
market is lack of effective promotion that clearly affects the overall sales and revenue generation
for the organisation. Ineffective promotion affects the organisation because promotion largely
helps to generate traffic and leads with the time passing by Porsche have to adapt to the new
marketing strategy which would help the organisation to sustain in the market for a long period
of time (Boons et al., 2013). The Porsche cars are extremely expensive and have a separate
market base but since the market is highly competitive with other high-end car brands operating
in the market it is important for this brand to generate effective awareness in the market. With
high competition and lack of effective marketing plan Porsche has faced a hard time in reaching
a mass audience. As compared to Porsche brands like Audi, BMW et cetera sell higher because
they have been able to create that awareness required for the people to buy these high-end cars
have to get proper information about what’s new in the market but Porsche has not been able to
prepare effective promotional plan rather say personalised promotional plan which would help
them to improve the traffic and leads for the organisation. Hence, the main challenge for Porsche
in the US market is to grab substantial market share with the help of a promotional plan
(Manyika et al., 2015).
The UK market is an important part of Porsche as a brand because it generates a significant
amount of sales for the organisation. It is important to note that VW the owner of Porsche is
already affected by a number of problems especially ethical. In the recent past, UK customers
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