Measuring Brand Value and Values
Dec 10, 2007
Nurturing the Porsche brand through management decisions has been just as important as how well the engineers turn out the next edition of the 911. Despite its comparatively small size, Porsche in 2004 joined the list of The Top 100 Global Brands as compiled by Businessweek and Interbrand. And in 2006, Porsche was acknowledged by the respected German business magazine, Manager Magazine, as having the best image among all German companies. The award is derived from a survey of 2,500 top-level executives in Germany—the heart of Porsche's customer base in its home market. "We take these honors extremely seriously," says David Pryor, vp/marketing, Porsche North America. "They aren't just trophies but affirmations that we are making the right decisions and doing right by the brand in our care."
What impresses many followers of brand management is that those gains in brand value and accolades came after Porsche took a series of controversial risks with its product line. It started in the mid- 1990s with a more affordable Porsche in the Boxster roadster, which many said might damage the brand's luxury cachet. Then, Porsche stirred controversy again by introducing the Cayenne SUV. In 2005, Porsche again rattled tradition when it announced plans to enter the sedan business with the Panamera four-door in 2009. So much for the skeptics: Revenues are forecasted to grow from $10 billion in 2007 to $23 billion by 2012. "The breadth of products Porsche can develop under our brand is not limited to specific product categories but to our ability to engineer them as true Porsches," says Pryor.
There is little question that Porsche is a brand for the 21st century. It has successfully developed products for a different kind of 21st century buyer while still being true to its roots and retaining its premier status among luxury brands. And there's even a "green" Porsche on the horizon: The company announced in 2007 it will sell a gas-electric hybrid version of its Cayenne SUV, which will achieve an average 20%–25% gain in fuel economy over the standard gasoline-powered Cayenne.
Dr. Porsche would be proud. As far back as the turn of the century, just in his 20s, Porsche built cars powered by a combination of gasoline and electricity supplied by a battery. Being ahead of its time is just another longstanding tradition at Porsche.
For More on Porsche:
Pure Porsche
The Power of Independence
Measuring Brand Value and Values
0 to 60 Q & A with David Pryor
Porsche AG Chairman Dr. Wendelin Wiedeking
