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How to Segment Your Target Market: A Porsche Success Story

How to Segment Your Target Market: A Porsche Success Story

These of us in advertising are confronted with the problem of making an attempt to enhance our advertising technique with techniques that resonate with our goal market. Porsche supplies a really profitable instance of how they phase their goal market successfully and obtain bottom-line outcomes.

Porsche has taken on an extremely difficult aim of retaining its heritage and attracting a youthful and extra feminine viewers utilizing segmentation. Utilizing segmentation, Porsche can attain this audience and create messages and merchandise that resonate with every phase.

Finally, segmentation offers Porsche the power to reposition the model with out dropping its core clients.

In case you are something like me, you grew up with footage of the 911 and 944 in your room daydreaming of driving one in every of these legendary automobiles. Little question this picture included you sporting sun shades with the highest down feeling the wind in your hair and listening to your favourite tunes.

Porsche represents a super, a life-style that a whole lot of us aspire to turn out to be.

So, how does Porsche make us really feel this manner and obtain the extent of success within the automotive business?

One of the vital causes behind Porsche’s success is their strategy to their goal market that features how the corporate performs market segmentation, market concentrating on, and positioning.

I feel it’s necessary to provide the background on Porsche to offer a radical understanding of the subject material. Porsche is a worldwide market chief within the premium phase of the automotive business presently probably the most worthwhile automotive model on the earth.

The corporate was based in 1931 by Professor Ferdinand Porsche in Stuttgart, Germany constructing motors, designing automobiles, and consulting. Porsche designs, manufactures, and markets sports activities automobiles, crossover utility automobiles, and vehicle elements worldwide.

Porsche additionally provides providers via its working divisions and subsidiaries, together with Porsche Design Group, Porsche Engineering, and Porsche Consulting.

Target Market Segment Strategy Photograph by Basheer Tome

Porsche and Volkswagen’s Different Manufacturers

On August 1, 2012, Volkswagen Ag bought Porsche working it as a subsidiary (model) in its automotive division. It got here as considerably of a shock that Volkswagen owns manufacturers you might indirectly affiliate with their model. Volkswagen additionally owns:

  • Audi
  • Bentley
  • Lamborghini
  • Bugatti
  • SEAT
  • Scania
  • MAN
  • Ducati (bikes)

Porsche performs goal advertising concentrating on the shoppers the group has the strongest potential to fulfill. Porsche performs efficient goal advertising by:

  1. Figuring out and profiling totally different shopper teams with differing needs and wishes (market segmentation).
  2. Selecting one or a number of segments to focus on (market concentrating on).
  3. Talk and set up the distinctive product/service choices of the group within the thoughts of the buyer (positioning).

Porsche markets to an elite and upscale audience successfully utilizing market segmentation, market concentrating on, and positioning persevering with to construct on its robust model targeted on merchandise solely within the premium (luxurious) automotive phase.

Philip Kotler supplies a quote that summarizes Porsche’s strategy and offers tips for goal market segmentation usually:

“If markets are to be segmented and cultivated, they need to meet sure necessities. Segments have to be Measurable, Substantial, Accessible, Differentiable, and Actionable.” – Philip Kotler

The automotive business has roughly 23 totally different segments in accordance with J.D. Energy and Associates. J.D. Energy and Associates don’t embrace segments for automobiles from manufacturers, reminiscent of Maserati, Ferrari, Lamborghini, Bentley, Rolls-Royce, Fisker, McLaren, and others.

Most of those manufacturers compete with Porsche in various levels together with extra conventional luxurious manufacturers, similar to BMW, Mercedes, Lexus, Audi, Infiniti, Land Rover plus others.

J.D. Energy and Associates classifies Porsche, BMW, Mercedes, Lexus, Audi, Infiniti, Land Rover plus others as a part of the premium phase.

The automotive business segments shoppers based mostly on demographic knowledge, geographic info, and a psychographic profile of shopper behaviors with advertising messages focused to those teams.

Product Lineup

The product lineup for Porsche consists of:

  1. 911 within the midsize premium sporty automotive phase
  2. 718 Boxster within the compact premium sporty automotive phase
  3. 718 Cayman within the premium sport coupe phase
  4. Cayenne within the midsize crossover utility car (CUV) phase
  5. Macan (newest addition) within the compact CUV phase
  6. 918 Spyder (newest addition) within the open-top tremendous sport automotive phase

macan photo Macan Photograph by Motorblog

The worth of a Porsche ranges from roughly $50,000 to $845,000 with segmented worth factors based mostly on the mannequin chosen.

The idea of market segmentation for Porsche includes dividing a market based on outlined smaller simply outlined group of shoppers with the identical needs and wishes.

Descriptive and Behavioral Parts

Porsche identifies segments to focus on utilizing two variables together with, descriptive parts and behavioral parts.

Descriptive parts embrace demographic, psychographic, and geographic.

Behavioral parts embrace particular person responses to manufacturers, utilization, and advantages.

Porsche segments markets based mostly on 5 essential parts required to guage a phase. These parts embrace making certain a market phase is measurable, accessible, substantial, differentiable, and actionable.


Demographic segmentation is a type of market segmentation involving dividing a market on the idea of descriptive parts. Knowledge supplies Porsche with a distinguishable approach to measure variables of a market estimating the market measurement and the media to make use of to succeed in the market phase. Demographic segmentation is predicated totally on revenue, age, gender, schooling, occupation, and social class.

The demographic of the Porsche proprietor, features a school graduate, family revenue over $100,000, 85% male, and 15% feminine. The standard Porsche proprietor is 40 years previous and up with Porsche concentrating on the 25-54 age demographic looking for a barely youthful viewers with the “Engineered for magic, day-after-day” marketing campaign.

Concentrating on a Youthful Viewers and Females

porsche 911 and woman photo Photograph by Martin de Witte

The age demographic rose from a mean age of 48 in 2007 to a mean age of 51 in 2012. Porsche’s focused advertising efforts give attention to decreasing the typical age of the Porsche proprietor and growing the variety of feminine house owners.

Porsche offers an instance of an automotive icon specializing in demographics utilizing age and gender. The “Engineered for magic, day-after-day” marketing campaign, partially, targets ladies with a picture of a mom in a Porsche 911 in entrance of a faculty with the textual content studying faculty bus.

Moreover, Porsche makes use of tennis star Maria Sharapova as a spokesperson to interact a youthful feminine viewers. The leads to the final two years point out a progress from Eight% to 15% in feminine buying the Cayenne CUV and Panamera four-door sports activities sedan primarily.


Psychographic segmentation makes use of psychology to extend understanding of shoppers’ needs and wishes. Porsche makes use of a psychographic segmentation strategy dividing the phase based mostly on behavioral parts, akin to psychology, way of life, character traits, and values to realize deeper perception of the buyer. The identical demographic can possess totally different behavioral parts.

Customizing Messages to Particular Psychographic Profiles

Psychographic profiling offers Porsche with the power to customise the messaging to focus on the precise psychographic profiles developed by Porsche.

  • The highest gun profile consists of an formidable and pushed particular person who cares about energy and management anticipating to be observed.
  • The elitist profile, consists of a person from previous cash (blue blood), has the angle a automotive is only a car and never an expression of an individual’s character.
  • The proud patrons proprietor profile sees a Porsche as a trophy contemplating it a reward for exhausting work with possession as the primary objective not being observed.
  • The bon vivants profile consists of thrill seekers and jet setters with the Porsche as a way of pleasure.
  • The fantasist profile sees the Porsche as a type of escape and doesn’t care about impressing others.

Porsche has added one other profile consisting of people having fun with a sporty car for every day use by ladies and youthful drivers with the newest advertising marketing campaign, “Engineered for magic, every single day”.


Porsche makes use of a standard geographic segmentation strategy grouping markets based mostly on nations, continents, areas, states just like different worldwide automotive manufacturers. Porsche is a worldwide model with dealerships situated on each continent in main cities.

In the USA dealerships are situated in main cities with the producer dividing the market into 4 areas (north, south, southwest, northwest).

Porsche varies the product combine provided by dealerships inside every area. For instance, the sellers within the hotter south and southwest areas supply a better proportion of convertibles within the product combine versus the north and northwest areas in the USA with advertising following go well with.

Creating New Segments

porsche cayenne photo Photograph by Alexandre Prévot

In 2003, Porsche launched the Cayenne creating the primary sports activities utility car with luxurious and excessive efficiency. Porsche’s introduction of the Cayenne created a brand new market phase in an try and broaden the model. The introduction of the Cayenne has resulted in a car that accounts for half of Porsche’s income.

In 2009, Porsche launched the 2010 Panamera a four-door sports activities coupe based mostly available on the market analysis division figuring out a necessity for a sporty four-door that drives like a sports activities automotive. The Panamera is the primary of its sort creating a brand new phase of the four-door luxurious sports activities automotive.

Porsche’s effort to maneuver outdoors of the sports activities automotive area of interest with the Cayenne and Panamera product launches have stimulated demand leading to elevated gross sales for the model. The Panamera and Cayenne have proved to be efficient model extensions interesting to a wider viewers by providing distinctive product choices.

Market concentrating on includes Porsche evaluating the viability of every market phase and deciding which phase or segments to pursue (goal). Porsche makes use of a hybrid market concentrating on technique targeted on a big share of the premium sport automotive and sport CUV phase utilizing a finely tuned advertising combine based mostly on advertising messages tailor-made to Porsche’s psychographic segmentation.

The “Engineered for magic, daily” marketing campaign makes use of a distinct segment concentrated advertising strategy tailor-made to vary place barely. Porsche is making an attempt to vary the notion that a Porsche is an on a regular basis car interesting to a bigger viewers to extend gross sales. Porsche targets shoppers at differing efficiency and worth ranges within the premium sport automotive and CUV market phase.

Porsche presents high-quality merchandise for a premium worth with numerous worth factors for the merchandise of their lineup. The Porsche model is a life-style model due to its legendary standing and attributes related to their merchandise.

Porsche achieves the last word aim of finding a model within the shoppers’ thoughts differentiating it when it comes to attributes or advantages, high quality, worth, and use or consumer to maximise the model. Porsche positions itself as a excessive priced, top quality, unique sports activities automotive.

Specializing in the premium (luxurious) phase with sports activities automobiles (5 segments) and crossover utility automobiles (two segments), Porsche supplies the buyer with a body of reference for the corporate. Porsche provides a definite product in every car phase. The Boxster, 911, Cayman, and 918 Spyder present the automobiles historically related to Porsche.


The Porsche model evokes primarily consists of thrilling, sporty, superbly designed, efficiency, and German engineering. Different attributes generally related to Porsche, embrace high quality, highly effective, extremely refined, type, purity, very unique, unique, racing heritage, and stylish.


The advantages related to Porsche, embrace pleasure, efficiency, achievement, success, standing, and excessive revenue.

The Porsche product lineup gives merchandise which are extra enjoyable to drive and quicker than any competitor within the phase offering the newest know-how with a historic tradition making the model unattainable to mimic.

Porsche’s legendary affiliation with racing and quite a few appearances in tv, films, and books provides Porsche a singular place within the automotive business and automotive historical past. Porsche with 70% of all automobiles constructed by the corporate nonetheless in operation offers indeniable proof of their distinctive place.

Factors of Parity

Porsche has factors of parity with the American efficiency automobiles, such because the Chevrolet Corvette and the Dodge Viper. A phase of Porsche merchandise even have point-of-parity with Cadillac, when evaluating United States luxurious automobiles.


porsche 918 photo

Porsche’s German design, efficiency, and engineering together with its racing heritage present a point-of-difference on efficiency in comparison with the competitors. The tagline utilized by Porsche prior to now “There isn’t a substitute” sums up the long-lasting model immortalized within the film Dangerous Enterprise starring Tom Cruise.

Repositioning the Model

In an effort to reposition the Porsche model to broaden into totally different, however comparable markets the corporate has launched the “Engineered for magic, day-after-day” marketing campaign. The marketing campaign primarily makes use of the 911 to reposition the model for on a regular basis use.

The essence of peak efficiency designed to excite your on a regular basis driving and way of life supplies an applicable positioning assertion contemplating the repositioning of the model. The slogan captures the essence of the Porsche model remaining in keeping with its heritage and conveys the revised place of the corporate.

The outcomes have seen Porsche 911 gross sales improve yr over yr because the marketing campaign began. Porsche continues to be probably the most worthwhile vehicle producer, with a 17% revenue margin. The Cayenne, Macan, and Panamera present Porsche with the power to increase the model with automobiles higher fitted to on a regular basis use.

Progressive Mannequin Technique

Porsche’s progressive technique to increase consists of introducing a mixture of non-sports fashions and sports activities automobiles. Porsche has expanded the product lineup with automobiles reminiscent of an SUV, sedan whereas launching new sports activities automobiles instantly aligned with its heritage.

Porsche supplies an clever and efficient stability of market enlargement for the model whereas remaining true to its Porsche heritage particularly important for the loyal Porsche shopper.

Worldwide Gross sales

The introduction of the Macan crossover utility car with the 918 Spyder supercar supplies proof of this technique. The Macan has been an enormous success with a 43% improve in gross sales for North America in 2016 and this continued into 2017 with 2% progress worldwide in 2017. Nevertheless, the brand new Panamera is the star of the present with 83% gross sales progress in 2017 worldwide.

Porsche has continued its record-breaking success story in 2017 with one other profitable yr with a four% gross sales improve for a complete of roughly 246,000 automobiles bought worldwide.

porsche 918 photo Photograph by Benoit automobiles


The goal market phase technique of Porsche supplies an instance of an iconic model and its capability to reinvent itself creating new markets extending the Porsche model in a significant method whereas remaining true to its heritage.

The Porsche technique of concentrating on feminine shoppers to optimize the demographic profile by increasing the product lineup and repositioning the model as an on a regular basis car has resulted in nice success. The repositioning of the model has began to vary perceptions of Porsche as a weekend car leading to further gross sales.

Porsche with its many awards for high quality, fashion, and engineering even have refined advertising complementing the superior merchandise making it straightforward to know why it’s probably the most worthwhile automotive model on the earth.



Tags: market concentrating on, porsche, segmentation, Goal market phase technique

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