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Current SituationPorsche is a brand known for its high performance sports cars. Since the launch of the Porsche 356 in June 1948, the brand has remained loyal to this ideal and continues to produce vehicles known for their speed and maneuverability. Porsche is a luxury brand marketed towards affluent consumers, primarily males, looking for a fun car that makes a statement of youth, prosperity, and confidence (19).

Therefore, it is easy to see why Porsche brand loyalists might have had a problem with the introduction of the Cayenne- an SUV built using traditional Porsche styling and performance but combined with components promoting family, outdoor, and transport activities. In other words, the Cayenne represents a brand extension that, according to many enthusiasts, may have pushed the edges of the traditional Porsche image a little too far. Porsche quickly became aware of several other problems associated with the preparation and introduction of their first SUV.

Online brand communities, such as Rennlist, suddenly became combat zones for Cayenne supporters to contest the many complaints made by disappointed Porsche owners who thought the SUV’s introduction marked the end of Porsche as they knew it. Rivalries emerged between Cayenne drivers and traditional Porsche drivers that went so far as to exclude Cayenne drivers from the Porsche “family” and fraternal greetings on the road. Porsche loyalists complained about the authenticity of the brand after it became apparent that the Cayenne was a product of many different countries and only the final assembly

DeBalsi 2took place at the Porsche site in Leipzig, Germany. Reporters from publications as big as the New York Times and the Los Angeles Times negatively publicized the new direction of the brand. And finally, the Porsche Cayenne began getting compared to SUVs made by companies such as Hyundai and Volkswagen rather than their usual niche of BMW and Maserati. SWOT Analysis:

StrengthsStrong brand/image will lead toCayenne acceptanceTargets a new market (6)Powerful appearance, increasedcarrying capacity, versatility (4)Built to be a sports car in an SUV’sbody- offers comfort and space but willgo from zero to sixty in 5.4 seconds (4)Meets Porsche’s high technical andvisual standards (4)OpportunitiesEntering new market segmentsfamilies, sports utilities, outdoors Increase in total profitsIncrease in market shareBrand extensioPublicityPaves the way for future growthGives a new dimension in both profitand revenueOpens the door to Porsche for futurediversification