Marketing strategy Essay Example | Topics and Well Written Essays - 1000 words

Marketing strategy - Essay Example One of Porsche’s unique selling points is its engine design and care should have been taken in this regard. Given the heavy losses the company suffered as a result of the introduction of the 928 model, there was a need for a new product strategy. The BCG Matrix was an effective tool for this situation. This portfolio planning method recognizes the need to reposition products in the portfolio to achieve cash flow and profitability. According to the Boston Consulting Group, 928 would have been regarded as a dog because of its low growth rate and low market share. Although 928 may generate enough cash, possibly to break even, it’s simple not worth the investment. Therefore Porsche’s strategy to divest the 928 model and to pump more money in a more promising investment say the 911, was a very sound approach. â€Å"Porsche purists are wary every time a new incarnation of 911 is unveiled. Will there be a change of look, feel, and sound? Porsche’s 911 is going to be made forever, or possibly longer. This is because the company does not know how to end it, only how to make a new one every few years (3)† The use of the product life cycle would have been of interest to the luxury sports car company when deciding its advertising and extension strategies. The 911 model existed at the maturity stage and the failure for the 928 to pick up sales forced the company to reposition and redesign the 911 model over a period of time. So far these strategies were successful, however an important point which Porsche should be aware of is that extension strategies are short term measures and not permanent in nature. In spite of this fact, each product life cycle for each car model is different and therefore its usefulness as a forecasting tool for Porsche may be limited. The Porsche brand developed over the years. There is the belief, however, that the introduction of recent brands