PORSCHE: HARNESSING SOCIAL MEDIA1
Ken Mark wrote this case under the supervision of Professor Dante Pirouz solely to provide material for class discussion. The authors
do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain
names and other identifying information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com.
Copyright © 2014, Richard Ivey School of Business Foundation
Version: 2015-07-20
Simon Thorpe, marketing director at Pursuit Advertising Strategies, an advertising agency, was considering
the range of marketing options to pitch to Porsche Canada in May 2014. In particular, Thorpe was interested
in how Porsche could focus its social media efforts to highlight that its cars could be driven in winter
conditions. Porsche Canada had started its winter driving focus about six years earlier, after it identified an
educational opportunity in the market. In Germany and Finland, for example, Porsche cars were frequently
driven all year round. In contrast, Porsche Canada’s customers tended to garage their cars, bringing them
out only after the snow had long melted away. Thorpe saw an opportunity to build the marketing message
for the entire brand while also featuring a side focus on winter driving. Given the range of social media
options available to him, he wondered what a high-impact campaign might look like.
In the United States, Porsche had been developing its social media presence over the past decade. It had a
website — www.porsche.com/usa/, a Facebook page — www.facebook.com/porsche, a Twitter feed —
https://twitter.com/Porsche, a Pinterest page — www.pinterest.com/porsche/ —; a YouTube account —
www.youtube.com/user/Porsche; and a Foursquare page — https://foursquare.com/porsche, among other
online properties. In addition, it offered traditional one-off events, such as fan voting for a customized car
(to celebrate the firm having achieved five million Facebook fans) and regular driving experience packages
for Porsche owners in exotic locales. In response to fans’ interest in posting customizable artwork on their
personal home pages, Porsche offered one app — among others — that allowed fans to develop their own
customized vehicle and post the image as a background for their screen.
As Thorpe surveyed his options, he had a few issues to consider. First, many of Porsche Canada’s customers
were more likely to be exposed to Porsche’s U.S. social media marketing efforts. If Thorpe’s goal was to
continue building awareness about Porsche’s winter driving capabilities, his efforts would need to be
distinctive. Second, because Porsche Canada was a smaller entity than Porsche’s U.S. office, it likely had a
relatively smaller marketing team and budget, so Thorpe wanted to focus on only three distinctive social
media vehicles as a pitch for Porsche Canada’s winter driving campaign. Thus, the thee-month campaign
could combine a handful of videos on YouTube, a fan event that lasted three to four days and a promotional
campaign in concert with its 12 dealers across the country. Thorpe turned to his three-person advertising
team and began sketching out a potential social media winter driving campaign for Porsche Canada’s latest.
1
This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives in this case are
not necessarily those of Porsche Canada or any of its employees.
63
For use only in the course Summer 2017 Introduction to Marketing - at Saint Mary's University taught by Heidi Weigand from May 08, 2017 to June 30, 2017.
Use outside these parameters is a copyright violation.
9B14A060
Page 2
9B14A060
Porsche offered a range of gasoline-powered vehicles in Canada: the 911, the Boxster, the Cayman, the
Cayenne and, the Panamera. The 911 was Porsche’s premier model. It was instantly recognizable by its
fans, due its raised, round headlights, sloping roof and rear engine placement. The 911 and its variants had
won many racing awards and was one of the most admired vehicles in the world. The average 911 had a
retail price of $120,000.2
The Boxster, an entry-level, mid-engine vehicle, had been responsible for the revival in Porsche sales in the
1990s. It was named one of the 10 Best Cars of 2002, according to Car and Driver magazine.3 The Boxster
was priced at about half the cost of an average 911, making it accessible to a broader audience. A refresh of
the Boxster design led to the Cayman, also an entry-level, mid-engine vehicle. The average Boxster or
Cayman had a list price of between $72,200 and $75,860.4
Porsche entered the sports utility vehicle market with the release of the Cayenne in 2003. The Cayenne was
a five-seater, mid-sized vehicle that was designed to appeal to families looking for a combination of luxury
and practicality. The Cayenne had a list price of $83,700.5 In 2009, Porsche unveiled its Panamera, its first
four-door sports car, retailing for $143,600.6
In Canada, Porsche competed with other high-end, luxury automobile manufacturers such as BMW, Audi,
Mercedes Benz and, to a lesser extent, Jaguar, Acura and Lexus. Porsche’s higher-priced 911 variants
competed with Aston Martin, Lamborghini, Ferrari and Maserati.
THE PORSCHE CUSTOMER
The average Porsche consumer was male, in his 40s, and typically a college graduate with an income over
$200,000 per year. From a psychographic perspective, there were five groups of consumers:
Top Guns: Described as driven, ambitious people who wanted a conspicuous vehicle. To these people,
traits that mattered were power and control;
Elitists: These were people who had inherited money from their relatives and they were interested in
buying a car, regardless of price;
Proud: These were individuals who enjoyed owning a car, paying for it with their hard-earned money.
They do not seek approval from others;
Bon Vivants: Typically well-travelled and thrill-seeking individuals, these were people who looked at
the car as part of their exciting lives;
Fantasists: These individuals looked at their Porsche as an escape, and even had second thoughts about
owning it.7
In Canada, a Porsche was typically a family’s second or third vehicle. It was seen as a luxury item and was
well maintained with frequent washing and waxing. In general, compared with the owner’s other vehicles,
the Porsche was driven the least, taken out infrequently and driven carefully. In Canada, 95 per cent of the
Porsches sold within the past 25 years were still in use. Porsche sold its vehicles through its dealer network
in Canada.8
2
All currency amounts are shown in Canadian dollars unless otherwise noted.
http://press.porsche.com/news/release.php?id=62, accessed October 16, 2014.
www.porsche.com/canada/en/models/boxster/boxster-s/, accessed October 16, 2014.
5
www.porsche.com/canada/en/models/cayenne/, accessed October 16, 2014.
6
www.porsche.com/canada/en/models/, accessed October 16, 2014.
7
www.scribd.com/doc/13138719/Porsche-Psychological-Segmentation, accessed October 16, 2014.
8
D. Pirouz and K. Mark, “Porsche Canada: Selling Winter Driving,” Ivey case 9B11A021, Ivey Publishing, Richard Ivey School of
Business Foundation, University of Western Ontario, August 30, 2011, p. 3.
3
4
64
For use only in the course Summer 2017 Introduction to Marketing - at Saint Mary's University taught by Heidi Weigand from May 08, 2017 to June 30, 2017.
Use outside these parameters is a copyright violation.
PORSCHE CANADA
Page 3
9B14A060
Porsche Canada had a microsite, on which it listed its car models available in Canada, Porsche events and
racing dates, information regarding Porsche service and accessories, and the company’s history. In 2009,
Porsche Canada launched a separate microsite that focused on winter driving and featured its Camp4
Canada Experience, the Porsche Sport Driving School that providing four- to five-day driving programs in
Canadian winter driving conditions.9
Social media marketing efforts in Canada were currently focused around providing a “social network” page
that was updated frequently. This page, which was updated frequently, featured interesting articles and
videos from Porsche’s global Facebook and YouTube channels. Thorpe took a look at some of the social
media marketing efforts being run out of the United States.
Porsche’s Global Social Media Marketing
Aside from the firm’s website, which contained information about cars, its history and the latest Porsche
news, Porsche had a Facebook page that included several features designed to engage its more than five
million fans. Porsche used the Facebook wall to share exclusive content with its fans, post regular updates
about its cars, feature the newest designs, publish lifestyle stories on how the cars were being used and
provide a Fan Gallery where fans could post pictures. A few apps were available on the Facebook site.
First, the Porsche ColorStyler app was a custom app with 1.3 million fans. Users started with a base Porsche
model, then could customize the exterior of the car by selecting the body colour and wheels. The resulting
image could then be displayed on the user’s home page.10 Second, the Family Tree app invited Porsche
owners to share stories and photographs of their old and new cars. Approximately 4,000 people had
contributed content to Family Tree.11 A third app — the Sound App — allowed people to create their own
songs using sounds from Porsche cars, including sounds of the ignition, of doors opening, of the glove box
opening and of radio controls turning.12
To enable users to discover, amass and share their favourite images, Porsche managed a Pinterest page,
which was updated frequently. The themes for the photographs included Best Porsche Pictures, Porsche
911, The Porsche Cayenne, Heritage Events, Porsche History and Concept Cars.
Porsche had added almost 300 videos to its YouTube channel since creating an official channel in late 2008.
It had more than 200,000 subscribers to its channel, and new videos — if they were popular — could receive
more than 300,000 views.13 In addition to the typical car commercial videos of cars being driven in visually
stunning locations, Porsche also introduced unusual content that played up its heritage. For example,
Porsche China submitted a video where its local agency, Fred & Farid, mixed engine roars from seven
generations of Porsche 911s to play the seven notes of Happy Birthday, in celebration of Porsche’s 50th
anniversary in China.14
Porsche had a Twitter feed, which offered status updates every day and did cross-promoting with its U.S.
dealers by holding giveaways and other competitions. Porsche’s Twitter feed had 675,000 followers.
9
www.newswire.ca/en/story/544477/porsche-canada-launches-comprehensive-winter-marketing-campaign, accessed October 16,
2014.
10
www.appdata.com/apps/facebook/73697663718-porsche-color-styler, accessed March 4, 2014.
11
Ibid.
12
https://itunes.apple.com/ca/app/porsche-engines/id497251938?mt=8, accessed March 4, 2014.
13
www.youtube.com/user/Porsche; accessed October 16, 2014.
14
“Porsche Plays Happy Birthday with Seven Engine Roars,” http://creativity-online.com/work/porsche-birthday-roar-celebrating-the50th-anniversary-of-porsche/32859, accessed January 4,, 2014.
65
For use only in the course Summer 2017 Introduction to Marketing - at Saint Mary's University taught by Heidi Weigand from May 08, 2017 to June 30, 2017.
Use outside these parameters is a copyright violation.
PORSCHE CANADA’S SOCIAL MEDIA PRESENCE
9B14A060
In addition to the major social media properties, Porsche utilized Foursquare — a location-based marketing
application — to create unique events for its fans. In 2011, in the run-up to the Super Bowl, Porsche invited
its fans to a “treasure hunt” event, with the aim of creating a real-time photo gallery using the Foursquare
app, featuring Porsche vehicles at various Dallas locations. Participants uploaded a photo to their social
media account with #Porsche, and Porsche selected the best photos for inclusion in its “All Star” gallery.15
One of the more interesting ways that Porsche connected with its social media followers was through
unique one-off events. For example, to thank its followers for reaching one million Facebook fans in
February 2011, Porsche added the names of all one million Facebook fans to a brand new 911 GT3 Hybrid,
its top-of-the-line car. The car was displayed in the Porsche Museum and pictures were posted online.
Furthermore, a dedicated microsite allowed Facebook fans to search for their own name on the car, and then
take a picture of the panel with their name on it. 16 To celebrate having attained five million Facebook fans in
August 2013, Porsche allowed its fans to vote on key features for a customized car, which was then built and
displayed 17
Designing a Canada-focused Social Media Campaign
Thorpe could see that at least some of the U.S. and global content was relevant to the winter driving
campaign. For example, Porsche had a Facebook update on a winter driving experience and another update
that hints at the car’s ability to drive in snow.
Thorpe’s challenge was to find a way to weave a winter driving message into the social media marketing
messages. He took a look at current winter driving-focused print ads (see
http://www.porsche.com/canada/en/eventsandracing/driving-experience/winter/).
Thorpe saw that Porsche Canada sold 3,680 cars in 2013. He estimated that there would thousands of
Porsches on the road in Canada, but only a portion of this group would be interested in buying winter
driving equipment, including wheels and accessories.18 A look at comparable winter driving equipment
showed that winter wheel sets for Porsches ranged from $4,295 to $6,695 installed. There were all- weather
floor mats for $169, cleaning kits for $84.24 and battery chargers – for cold weather – for $169.19 Thorpe
wanted to present a marketing budget proposal of $100,000 for a 2015 campaign for Porsche. He wondered
what three “properties” his team should spend their time working on and what objectives the campaign
should work toward.
The Ivey Business School gratefully acknowledges the generous support of Pierre Lapointe, MBA ’83, in
the development of this case.
15
www.prnewswire.com/news-releases/porsche-invites-football-fans-to-check-in-and-participate-in-porsche-spotting-at-the-biggame-114806949.html, accessed October 16, 2014
16
https://econsultancy.com/blog/7178-seven-reasons-why-porsche-is-winning-the-social-media-game#i.pyvrr9balcs9q5, accessed
October 14, 2014.
17
www.facebook.com/media/set/?set=a.10151777109622668.1073741843.53855227667&type=3, accessed October 14, 2014.
18
Porsche Annual Report 2013, p. 19.
19
downtown.porschedealer.com/.../pdf/PORSCHE_sales_sheet_911.pdf, accessed October 16, 2014.
66
For use only in the course Summer 2017 Introduction to Marketing - at Saint Mary's University taught by Heidi Weigand from May 08, 2017 to June 30, 2017.
Use outside these parameters is a copyright violation.
Page 4
Page 4
9B14A060
67
.... VIRGIN
TF10:24
1 26%
III
VIP
PRIVATE
please read case first and follow
these steps blew.
• Problem definition
• Information summary
• Information analysis
• Problem re-examination
• Formulation of
alternatives
• Listing advantages and
disadvantages
• Evaluation of alternatives
• Implementation of chosen
alternative
• Control
Re-examination
• report preparation
case in file.
write two page(double space),
and all information must from
this case.
only four sub-title, problem(1/8
page), analysis(1/2 page)
Alternatives(1/8 page) and
Recommendation and Plan (1/4
page)
there are must have table in
alternatives part.
ATTACHMENTS
Purchase answer to see full
attachment