Porsche MMK101 Trimester 1 2023: Segmentation, Targeting & Positioning

This report provides an analysis of Porsche's segmentation, targeting, differentiation, and positioning (STP) strategy, focusing on the potential launch of a luxury electric SUV in the Australian market. It begins with a background overview of Porsche, including its industry presence, current product offerings, target market, and a SWOT analysis. The report then delves into market segmentation, utilizing demographic, geographic, psychographic, and behavioral bases to identify potential customer segments. The identified target market is affluent individuals aged 35-54 who value sustainability and cutting-edge technology. The justification for this target market is based on their purchasing power, interest in sustainable luxury vehicles, and loyalty to the Porsche brand. The report also proposes a value proposition emphasizing luxury, sustainability, and performance, and explores differentiation bases such as product features, service, and pricing. Finally, a positioning statement is developed, highlighting Porsche's electric luxury SUV as the ultimate choice for affluent buyers seeking style, performance, and sustainability in Australia. The report concludes with a positioning map and a reference list.

PORSCHE
MMK101 TRIMESTER 1 2023
SEGMENTATION, TARGETING, DIFFERENTIATION AND
POSITIONING STRATEGY
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Contents
BACKGROUND.............................................................................................................................................3
Industry Overview:..................................................................................................................................3
Company Description:.............................................................................................................................3
Current Products:....................................................................................................................................3
Target Market:.........................................................................................................................................3
SWOT Analysis:........................................................................................................................................3
MARKET SEGMENTATION...........................................................................................................................3
Bases of Segmentation:...........................................................................................................................3
MARKET TARGETING...................................................................................................................................5
Target Market:.........................................................................................................................................5
Justification..............................................................................................................................................5
Differentiation............................................................................................................................................5
Value proposition:...................................................................................................................................5
Differentiation bases:..............................................................................................................................5
POSITIONING..............................................................................................................................................6
Positioning Statement:............................................................................................................................6
Positioning Map:......................................................................................................................................6

BACKGROUND
Industry Overview:
Australia's car sector generates $37 billion and employs 65,000 people. Cars, trucks,
buses, and other motor vehicles are manufactured, distributed, and sold.
Company Description:
Ferdinand Porsche created Porsche in 1931. Its cars are known for their performance,
handling, and engineering. Porsche now sells SUVs, sedans, hybrids, and electric cars.(Porsche HOME -
Porsche Australia, n.d.)
Current Products:
Porsche's best-known vehicles are sports automobiles. Porsche also makes SUVs and
sedans like the Cayenne and Panamera.
Target Market:
Porsche targets people that appreciate performance, craftsmanship, and luxury and are
willing to pay more for the best driving experience.
SWOT Analysis:
Strengths:
High-quality, high-performance automobiles. Strong image of brand.
Weaknesses:
Pricey compared to other premium car brands, which may limit sales.
Opportunities:
Porsche's client base could grow with electric and hybrid vehicle demand.
Threats:
New Product:
Porsche may launch an Australian luxury electric SUV. Australia's government is encouraging
electric vehicle adoption through regulations and initiatives. Porsche's luxury electric SUV may appeal to
Australian buyers seeking an eco-friendly, high-performance vehicle.
MARKET SEGMENTATION
Bases of Segmentation:
Porsche can segment Australia to find new markets and products. Porsche may use
these segmentation bases:

Demographic segmentation: Age, gender, income, education, and employment divide the market.
Porsche might target high-income 35-54-year-old luxury sports vehicle enthusiasts.(Brotspies and
Weinstein, 2019)
Geographic Segmentation: Region, city size, and climate split the market. Porsche could target warmer
Australian cities with sports car-friendly climates.
Psychographic segmentation divides the market by personality, values, lifestyle, and interests. Porsche
may target drivers that value performance, quality, and design.(Brotspies and Weinstein, 2019)
Behavioral segmentation divides the market by usage rate, loyalty, and advantages sought. Porsche
might target loyal luxury sports car consumers.
Segmentation Bases and Variables Segment 1
Label:
Demographic
Variable 1: Age Generation Z (born after 1997)
Millennials (1981 to 1986)
Variable 2: Income High income
Low income
Middle income Earners
Geographic
Variable 1: Urban or Rural Urban Areas
Rural areas
Variable 2: Density of Population High density Urban Areas
Sub urban areas
Psycho graphic:
Variable 1: Personality Luxury car Enthusiast
Status Oriented
(Brotspies and Weinstein, 2019)
Variable 2: Lifestyle Sports Enthusiast
Social
Behavioral
Variable 1: Usage Rate Frequent car buyers
Variable 2: Loyalty Brand loyals
MARKET TARGETING
Target Market:
Porsche's electric luxury SUV target market is affluent 35-54-year-olds who respect
sustainability and cutting-edge technology, are interested in premium electric vehicles, and are loyal to
Porsche.

Justification: Following are the reasons for choosing above customers
1.Affluent 35-54-year-olds are more inclined to buy luxury electric cars.
2.Porsche should target the expanding market for sustainable premium cars.
3.Innovation, sustainability, and cutting-edge technology are psychographic factors that match the
electric luxury SUV.(Spencer, Joiner and Salmon, 2009)
4.An electric premium SUV can broaden Porsche's product line and boost customer loyalty by appealing
to loyal customers.
Differentiation
Value proposition:
‘Porsche electric luxury SUV: experience luxury and sustainability like never before.
Reduce your carbon footprint without sacrificing style or comfort while enjoying Porsche
performance.’Porsche's performance, luxury, and sustainability are pertinent to the target market. The
target consumer wants to live luxuriously and reduce their carbon footprint. Porsche's electric luxury
Vehicle is attractive and environmentally sustainable.The value proposition emphasizes the Porsche
electric luxury SUV's high-performance and cutting-edge technology, which match the target market's
psycho graphics. Porsche can lead the Australian luxury electric SUV market by highlighting these
advantages.Porsche's brand identity and values are combined with the target market's needs and
preferences to create a compelling value proposition.
Differentiation bases:
Product, service, staff, pricing , and image are the five differentiating bases.
Luxury and Pricing: Luxury goods are frequently expensive, therefore pricing and luxury go together.
Price indicates quality, exclusivity, and status in luxury goods. Luxury businesses like Porsche depend on
price strategy.(Boehe and Cruz, 2010)
Competitors:
Competitor Competitor’s Advantage
Mercedes Benz Luxury vehicle brand; several models and
options; focus on sustainability and innovation
Audi High performance, luxury, and technology;
worldwide reach
Tesla Innovative electric car manufacturer with a
strong brand image.

POSITIONING
Positioning Statement:
For the affluent 35 to 54 year old luxury car enthusiasts, Porsche's electric luxury SUV is the best in style,
performance, and technology. Unlike competitors, Porsche's electric luxury SUV combines the brand's
famed performance pedigree with cutting-edge electric technology to provide a totally unique driving
experience that matches the sophisticated tastes and values of modern luxury car buyers. Porsche's
electric luxury SUV is Australia's ultimate luxury, performance, and sustainability SUV.(Nadube and
Didia, 2018)
Positioning Map:
PRICE
Luxury

Reference list
Boehe, D.M. and Cruz, B. (2010). Corporate social responsibility, product differentiation
strategy and export performance. Journal of Business ethics, 91, pp.325–346.
Brotspies, H. and Weinstein, A. (2019). Rethinking business segmentation: a conceptual model
and strategic insights. Journal of Strategic Marketing, 27(2), pp.164–176.
Caroline, T.A. and Drayton, J. (1987). Market segmentation. Journal of marketing management,
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Compton, J. and Pfau, M. (2004). Use of inoculation to foster resistance to credit card
marketing targeting college students. Journal of Applied Communication Research, 32(4),
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Mitchell, V. and Wilson, D.F. (1998). Balancing theory and practice: A reappraisal of
businesstobusiness segmentation. Industrial Marketing Management, 27(5), pp.429–445.
Moschis, G.P., Lee, E. and Mathur, A. (1997). Targeting the mature market: opportunities and
challenges. Journal of consumer marketing, 14(4), pp.282–293.
Nadube, P.M. and Didia, J. (2018). Market targeting and strategic positioning. International
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Porsche HOME - Porsche Australia. (n.d.). Porsche Cars Australia Pty Ltd - Porsche Australia.
[online] Available at: https://www.porsche.com/australia/aboutporsche/porschecarsaustralia/.
Spencer, X., Joiner, T.A. and Salmon, S. (2009). Differentiation Strategy, Performance
Measurement Systems and Organizational Performance: Evidence from Australia. International
Journal of Business, 14(1).
Weinstein, A. (2004). Handbook of market segmentation: Strategic targeting for business and
technology firms. Psychology Press.