SHANTI BUSINESS SCHOOL

SUMMER INTERNSHIP PROJECT

ON

SALES PROCESS AND PRODUCTION MANAGEMENT

Submitted by: Submitted to:

Nidhi Chauhan Dr.Sandeep Makwana

1-18-082
 TABLE OF CONTENTS

ACKNOWLEDGEMENT ......................................................................................................................................... 3
EXECUTIVE SUMMARY ........................................................................................................................................ 4
CHAPTER I ............................................................................................................................................................... 5
INTRODUCTION........................................................................................................................................................ 5
CHAPTER II ............................................................................................................................................................. 7
OBJECTIVES .............................................................................................................................................................. 7
CHAPTER III ............................................................................................................................................................ 8
INDUSTRY ANALYSIS ................................................................................................................................................. 8
3.1 HISTORY ......................................................................................................................................................... 8
3.2 First Car Ever Made………………………………………………………………………………………………………………………………………12

3.3 Major Players of the Industry ............................................................................................................. 15

3.4 Sub Components of the Industry (India) ................................................................................................... 16
3.5 PESTLE Analysis of Automobile Industry (Global) ................................................................................. 19
3.6 SWOT Analysis of the Automobile Industry ............................................................................................. 21
CHAPTER IV .......................................................................................................................................................... 27
COMPANY ANALYSIS .............................................................................................................................................. 27
4.1 3CET OF PORSCHE ............................................................................................................................................ 27
4.1.1 Company (History) .......................................................................................................................................... 27
Customer Service ..................................................................................................................................................... 32
Market Structure ..................................................................................................................................................... 33
4.1.3 Customer ................................................................................................................................................... 35
4.2 SWOT ANALYSIS ....................................................................................................................................... 37
CHAPTER VI .......................................................................................................................................................... 73
CONCLUSION ........................................................................................................................................................ 74
 ACKNOWLEDGEMENT

I would like to confer my heartiest thanks to my SIP guide Dr. Sandeep Makwana for giving me
the opportunit y to expel and work in the field of Automobile Industry, especially it s practical
applicat ions. While preparing my project I got to have an in depth knowledge of practical
applicat ions of the theoret ical concepts and definitely the things which I have learned will
undoubtedly help me in future, to analyze many processes going on in our economy. I would
also like to thank all t hose people who directly or indirect ly helped in accomplishing this
project.
 EXECUTIVE SUMMARY

Porsche is a German car manufacturer that specializes in manufacturing sports cars, ATVs, and SUVs and aims
to focus on its customers and employees. As of 2012, Volkswagen has full ownership of Porsche. This luxury
and sports car manufacturer is significantly beating its competitors (Lamborghini, Ferrari, Aston Martin,
Maserati, Bugatti, Bentley, and Rolls-Royce) in units sold, revenue, and profit (2011). As one of the lead
manufacturers in the industry, it has established a domineering presence in its chosen market segment. Despite
this fact, however, Porsche has less than 1% market share in the global automobile market. With this said, it
may be wise for Porsche to begin entering new additional markets while considering the SWOT analysis.
 CHAPTER I

INTRODUCTION

1.1 Industry Overview

Automotive industry, all those companies and activities involved in the manufacture of motor vehicles,
including most components, such as engines and bodies, but excluding tires, batteries, and fuel.
The industry’s principal products are passenger automobiles and light trucks, including pickups, vans, and
sport utility vehicles. Commercial vehicles (i.e., delivery trucks and large transport trucks, often called semis),
though important to the industry, are secondary. The design of modern automotive vehicles is discussed in the
articles automobile, truck, bus, and motorcycle; automotive engines are described in gasoline
engine and diesel engine. The development of the automobile is covered in transportation, history of: The rise
of the automobile.

The history of the automobile industry, though brief compared with that of many other industries, has
exceptional interest because of its effects on 20th-century history. Although the automobile originated
in Europe in the late 19th century, the United States completely dominated the world industry for the first half
of the 20th century through the invention of mass production techniques. In the second half of the century the
situation altered sharply as western European countries and Japan became major producers and exporters.
1.1 Company Overview

Exclusivity and social acceptance, innovation and tradition, performance and everyday usability, design and
functionality – these are the brand values of sports car manufacturer Porsche. In 2017, Porsche put these values
into practice in impressive form with the new generation of the Cayenne: the SUV has been completely
redeveloped and embodies the typical Porsche attributes better than ever. Even though it comes with more
standard features, the Cayenne is up to 65 kg lighter than its predecessor thanks to its lightweight construction.
The Cayenne Turbo, the top-of-the-range model in the series, raises the bar for sporty performance in its
segment even further. The car’s four-liter V8, twin-turbo engine puts out 404 kW (550 PS) of power,
accelerating it from 0 to 100 km/h in 4.1 seconds. Porsche’s launch of the Sport Turismo, a new bodywork
variant of the Panamera, has taken the brand into a new segment. The Sport Turismo uses all the technical and
conceptual innovations featured in the Panamera series, which gained a second hybrid version in the reporting
year with the 500 kW (680 PS) Panamera Turbo S E-Hybrid. In 2017, Porsche came first in the world’s
toughest long-distance event in Le Mans for the third time in succession and also won the third consecutive
championship title in the WEC world endurance championships.

The Porsche brand delivered 246 thousand sports cars in the past fiscal year; this was 3.6% more than in the
previous year. China remained the largest single market for Porsche with deliveries of 72 thousand vehicles
(+9.6%). In North America, sales rose by 3.7%.
At 248 thousand vehicles, Porsche’s unit sales exceeded the prior-year figure by 3.7% in 2017. Above all, the
new Panamera saw marked sales growth.

Porsche celebrated a special anniversary in 2017, when the millionth 911 rolled off the production line at the
main plant in Zuffenhausen. In total, Porsche produced 256 thousand vehicles in the reporting year. This was
6.7% more than in 2016.
 CHAPTER II

OBJECTIVES

2.1 Primary Objective

 The objective is to learn the sales process of Porsche and to understand the operation management of
the same.

2.2 Secondary objective:

 To know about the Porsche’s selling techniques.

 To know about Porsche’s sales process.

 To know about seven stage of selling Process.

 To know the supply chain management from the time the customer books a car and till the time it is
delivered.
 CHAPTER III

INDUSTRY ANALYSIS

3.1 HISTORY

Before 1900: The Auto Industry Begins

Prior to 1900, the automobile was really a novelty item, not yet a major force that represented an industry.
While many developments contributed to the birth of the modern automobile, most automotive history buffs
and the Library of Congress credit German inventor Karl Benz with creating the first modern automobile. The
three-wheeled 'Motorwagen,' first created by Benz in 1886, became the first production automobile. Benz made
several improvements in the Motorwagen, which eventually featured four wheels, a fuel tank, and rear brakes.

1900s: Cars Are Marketed to the Average Family

During the first few years of the twentieth century, automobiles had a fairly limited audience. Because they
were expensive and time consuming to produce, most cars were too costly for the general public.
However, Colorado State University reports that between 1904 and 1908, 241 different firms began producing
cars aimed at the American consumer. In 1908, Ford Motor Company created the Model T, the first car
aggressively marketed to the average family. By widening the sales base for the automobile, Ford did a great
deal to create an industry for cars and car products.

1910s: The Assembly Line Lowers Car Prices

The Model T, which was originally built individually, was the first car to be mass-produces on the assembly
line. When Henry Ford invented the assembly line in 1913, he was able to make the Model T even more
affordable and accessible. Bryant University reports that by 1918 half of American car consumers owned
Model T. Meanwhile, William C. Durant established General Motors in 1908, combining Buick, Oakland, and
Oldsmobile. Later, he added Cadillac and Chevrolet. The Dodge brothers, both bicycle builders, created the
four-cylinder Dodge Model 30 in 1914.

1920s: The Automobile Takes Off

The roaring 20s were a time of great growth for the auto industry, as more and more consumers bought their
first cars. The Chrysler Corporation was started in 1925, and many other small car companies began during
this decade. By 1929, the year of the stock market crash that began the Great Depression, car companies were
producing and selling 5.3 million vehicles a year, according to the University of Michigan.

1930s: Sales Slow During the Depression

The Great Depression hit the car industry hard, according to the GM Heritage Center. Many automotive
historians estimate that up to half of all car companies failed during the 1930s. At the start of the Great
Depression, car companies were mostly small and specialized. By the end of the decade, they had been
consolidated into larger, stronger corporations. There was less specialization, but the 'Big Three' emerged as
an important force.

The Great Depression was also an important time for organized labor. Auto companies were laying off workers,
and there were increased demands on the workers who remained employed. Amid these tensions, organizers
created the United Auto Workers Union (UAW) in 1935. The union would play a major role in the auto industry
from that time onward.

1940s: Auto Industry Changes during World War II

World War II helped the American economy emerge from the Great Depression, and prompted growth in the
auto industry. According to 1940s.org, the government shut down all the major car factories in 1942 and
converted existing stock for use by the armed services. Consumers could buy cars, which were heavily rationed,
if they could demonstrate significant need. During the period when new vehicle production was frozen, many
companies began to create vehicles for the armed forces, leading to great technological advancements.
1950s: Freeways Mean More Cars for Americans

After the end of World War II, Americans began a great love affair with the automobile. The freeway network,
first begun in the 1920s, grew dramatically during the 1950s. Cars were a permanent part of the American way
of life. According to PBS, the 1950s saw cars with innovative new technologies and rocket-inspired designs.
The American public was buying more cars than ever before.

1960s: Carmakers Focus on Safety

In the 1960s, the auto industry focused on making safer vehicles that could meet the needs of modern consumer.
In 1964, Studebaker-Packard was the first company to introduce seat belts as standard equipment on all of its
vehicles. In addition to safety, car buyers of this era expected vehicles to be powerful and spacious, and fuel
economy was not a major concern.

1970s: Oil Crisis Forces Temporarily Improved Fuel Economy

In the 1970s, a major oil crisis forced automakers to create vehicles that were more fuel-efficient. According
to Live Science, 20 percent of gas stations in 1974 had no gas to sell to consumers. This focus on gas mileage
wouldn't last long, however. When the oil embargo ended, carmakers returned to producing fast, powerful
vehicles.

1980s: Car Production Goes Global

After the 1980s, the most significant impact of the growth of the global auto industry was the influence of
globalization. The high demand for vehicles, combined with the low cost of skilled workers in countries like
China and India, led to a situation where manufacturers in those countries could produce cars at a fraction of
the cost of unionized U.S. manufacturers. Automakers could then export those less expensive vehicles to
developed countries across the world. According to a 2009 Duke University report on the auto industry, in
1975, 80 percent of global auto production came out of seven countries.
1990s: Resources Come Into Question

During this decade Sport Utility Vehicles (SUV) became incredibly popular. Stable gas prices in from the
1980s led consumers to worry less about the use of resources for these larger, four-wheel-drive vehicles. While
customers weren't overly concerned with environmental concerns, governments were. States like California
led the charge to require automobiles were made safer for the environment. This led to major technological
advances like more production of cars running on electric batteries. In the late 1990s the first hybrid cars were
manufactured with both a small gas engine and an electric motor.

2000s: Cars Get Smaller and More Efficient

By 2005, 80 percent of global production came from 11 countries, representing a widening of the playing field
and a significant growth in global competition. During the first few years of the new millennium, car companies
catered to consumers who expected powerful vehicles. The sport utility vehicle (SUV) was king, and it was
easy for consumers to obtain credit to purchase one of these expensive automobiles. However, in 2008, a major
economic downturn prompted banks to tighten financing requirements. Fewer people could afford to buy an
expensive vehicle. At the same time, fuel became more expensive. In the summer of 2008, record fuel prices
caused many consumers to sell their large vehicles and buy smaller, more efficient cars. Hybrids and gas-
sipping compacts now ruled the road. As the recession lifted, this focus on fuel efficiency and practicality
remained.
3.2 First Car Ever Made

Benz Patent Motor Car: The first automobile (1885–1886)

The first stationary gasoline engine developed by Carl Benz was a one-cylinder two-stroke unit which ran
for the first time on New Year’s Eve 1879. Benz had so much commercial success with this engine that he
was able to devote more time to his dream of creating a lightweight car powered by a gasoline engine, in
which the chassis and engine formed a single unit.

The major features of the two-seater vehicle, which was completed in 1885, were the compact high-speed
single-cylinder four-stroke engine installed horizontally at the rear, the tubular steel frame, the differential
and three wire-spoked wheels. The engine output was 0.75 hp (0.55 kW). Details included an automatic
intake slide, a controlled exhaust valve, high-voltage electrical vibrator ignition with spark plug, and water/
thermo siphon evaporation cooling.

The first automobile

On January 29, 1886, Carl Benz applied for a patent for his “vehicle powered by a gas engine.” The patent –
number 37435 – may be regarded as the birth certificate of the automobile. In July 1886 the newspapers
reported on the first public outing of the three-wheeled Benz Patent Motor Car, model no. 1.
Long-distance journey by Bertha Benz (1888)

Using an improved version and without her husband’s knowledge, Benz’s wife Bertha and their two sons
Eugen (15) and Richard (14) embarked on the first long-distance journey in automotive history on an August
day in 1888. The route included a few detours and took them from Mannheim to Pforzheim, her place of
birth. With this journey of 180 kilometers including the return trip Bertha Benz demonstrated the practicality
of the motor vehicle to the entire world. Without her daring – and that of her sons – and the decisive stimuli
that resulted from it, the subsequent growth of Benz & Cie. in Mannheim to become the world’s largest
automobile plant of its day would have been unthinkable.
Double-pivot steering, contra engine, planetary gear transmission (1891 – 1897)

It was Carl Benz who had the double-pivot steering system patented in 1893, thereby solving one of the most
urgent problems of the automobile. The first Benz with this steering system was the three-hp (2.2-kW)
Victoria in 1893, of which slightly larger numbers with different bodies were built. The world’s first
production car with some 1200 units built was the Benz Velo of 1894, a lightweight, durable and inexpensive
compact car.

1897 saw the development of the “twin engine” consisting of two horizontal single-cylinder units in parallel,
however this proved unsatisfactory. It was immediately followed by a better design, the “contra engine” in
which the cylinders were arranged opposite each other. This was the birth of the horizontally-opposed piston
engine. Always installed at the rear by Benz until 1900, this unit generated up to 16 hp (12 kW) in various
versions.
3.3 Major Players of the Industry

Reanault 2.72%

Mercedes 2.76%

Kia 3.08%

Chevrolet 4.39%

Hyundai 4.76%

Honda 5.39%

Nissan 5.42%

Ford 5.83%

Volkswagen 7.38%

Toyota 9.46%

0 1 2 3 4 5 6 7 8 9 10

Market Share
3.4 Sub Components of the Industry (India)

The Indian auto-components industry has experienced healthy growth over the last few years. The auto-
component industry of India has expanded by 18.3 per cent to reach at a level of US$ 51.2 billion in FY 2017-
18.
The auto-components industry accounts for 2.3 per cent of India’s Gross Domestic Product (GDP) and employs
as many as 1.5 million people directly and indirectly each. A stable government framework, increased
purchasing power, large domestic market, and an ever increasing development in infrastructure have made
India a favorable destination for investment.

Market Size

The Indian auto-components industry can be broadly classified into the organized and unorganized sectors.
The organized sector caters to the Original Equipment Manufacturers (OEMs) and consists of high-value
precision instruments while the unorganized sector comprises low-valued products and caters mostly to the
aftermarket category.
The total value of India’s automotive exports stood at US$ 13.5 billion in 2017-18 as compared US$ 10.9
billion in the year 2016-17. This has been driven by strong growth in the domestic market and increasing
globalization (including exports) of several Indian suppliers. Growth is further expected to accelerate to 8-10
per cent in FY19 due to pick up in global scenario.
According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-
components industry is expected to register a turnover of US$ 100 billion by 2020 backed by strong exports
ranging between US$ 80- US$ 100 billion by 2026.

Investments

The Foreign Direct Investment (FDI) inflows into the Indian automotive industry during the period April 2000
– December 2018 were recorded at US$ 20.85 billion, as per data by the Department of Industrial Policy and
Promotion (DIPP).
Some of the recent investments made/planned in the Indian auto components sector are as follows:
  Schaeffler India, the Indian arm of Germany’s automotive and industrial parts maker, is planning to
invest Rs 300 crore (US$ 46.66 million) per annum over FY18-19.
 As of December 2018, German automotive major Continental has planned investments of Rs 180 crore
(US$ 25.65 million) for setting up a premium surface materials facility in Pune. The facility will have
an initial capacity of five million square meters and is expected to start production in 2020.
 In October 2018, IMI Precision Engineering inaugurated its second largest manufacturing facility in
the Asia Pacific region. The company is planning to expand its product and technical offerings over the
course of the next few years.
 As of September 2018, air-compressor manufacturer Elgi Equipment’s is going to invest Rs 18 crore
(US$ 2.56 million) for setting up of a motor production facility in India. The facility is expected to be
commissioned in Q1 FY20.

Achievements

Following are the achievements of the government in the past four years:

 The FAME – India Scheme formulated by Department of Heavy Industry led to a continuous increase
in registered OEMs and vehicle models. Also, the scheme enhanced the sales of electric vehicles and
about 261,507 electric/hybrid vehicles were supported under the scheme up to December 6, 2018. In
February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs
10,000 crore (US$ 1.39 billion) for FY20-22.
 Under National Automotive Testing and R&D Infrastructure Project (NATRiP) various facilities
including passive safety labs comprising of crash core facility and crash instrumentations including
dummies were established at ICAT-Manesar & ARAI-Pune
 To give a fresh thrust to e-mobility in public transport, Department of Heavy Industry announced the
launch of public & shared mobility based on electric powertrain.
Government Initiatives

The Government of India’s Automotive Mission Plan (AMP) 2006–2016 has come a long way in ensuring
growth for the sector. Indian Automobile industry is expected to achieve a turnover of $300 billion by the year
2026 and will grow at a rate of CAGR 15 per cent from its current revenue of $74 billion.
Government has come out with Automotive Mission Plan (AMP) 2016-26 which will help the automotive
industry to grow and will benefit Indian economy in the following ways:-

 Contribution of auto industry in the country’s GDP will rise to over 12 per cent
 Around 65 million incremental number of direct and indirect jobs will be created
 End of life Policy will be implemented for old vehicles

Road Ahead

The rapidly globalizing world is opening up newer avenues for the transportation industry, especially while it
makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable
modes of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto-
component manufacturers, who would need to adapt to the change via systematic research and development.
The Indian auto-components industry is set to become the third largest in the world by 2025. Indian auto-
component makers are well positioned to benefit from the globalization of the sector as exports potential could
be increased by up to US$ 30 billion by 2021E.
3.5 PESTLE Analysis of Automobile Industry (Global)

PESTLE Analysis is a simple, useful and widely-used tool that helps to understand the "big picture"
of Political, Economic, Socio-Cultural and Technological, Legal and Environmental aspects. As such, it is
used by business leaders worldwide to build their vision of the future.
PESTLE analysis is concerned with the environmental influences on a business. Identifying PESTLE
influences is a useful way of summarizing the external environment in which a business operates. However, it
must be followed up by consideration of how a business should respond to these influences.
It is important for these reasons:

 First, by making effective use of PESTLE Analysis, it ensures that what we are doing is aligned positively
with the powerful forces of change that are affecting our world. By taking advantage of change, you are
much more likely to be successful than if your activities oppose it;

 Second, good use of PESTLE Analysis helps to avoid taking action that is doomed to failure from the
outset, for reasons beyond your control; and

 Third, PESTLE is useful when it start operating in a new country or region. Use of PESTLE helps you
break free of unconscious assumptions, and helps you quickly adapt to the realities of the new environment.
The table below lists some possible factors that could indicate important environmental influences for a
business under the PESTLE headings:

Political/Legal Economic Social Technological

- Environmental regulation - Economic growth - Income - Government
and protection distribution spending on research
- Taxation - Monetary policy - Demographics - Government and
industry focus on
technological effort
- International trade - Government - Labor / social - New discoveries and
regulation spending mobility development
- Consumer protection - Policy towards - Lifestyle - Speed of technology
unemployment changes transfer
- Employment law - Taxation - Attitudes to work - Rates of
and leisure technological
obsolescence
- Government organization - Exchange rates - Education - Energy use and
/attitude Costs
- Competition regulation - Inflation - Fashions and - Changes in material
Fads sciences
- Stage of Business - Health and - Impact of changes
Cycle Welfare in Information
Technology
- Economic “mood” - Living - Internet
- Consumer conditions
Confidence
3.6 SWOT Analysis of the Automobile Industry
Strengths
 Large domestic market
 Sustainable labor cost advantage
 Competitive auto component vendor
base.
 Government incentives for
manufacturing plants.
 Strong engineering skills in design etc.
Opportunities
 Commercial vehicles: SC ban on
overloading
 Heavy thrust on mining and
construction activity
 Increase in the income level
 Cut in excise duties
 Rising rural demand
Weakness
 Low labor productivity.
 High interest costs and high overheads
make the production uncompetitive
 Various forms of taxes push up the cost
of production
 Low investment in Research and
Development
 Infrastructure bottleneck
Threats
 Rising input costs
 Rising interest rates
 Cut throat competition
3.7 Automobile Industry in India

The automobile industry in India is world’s fourth largest, with the country currently being the world's
4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in 2018. Indian
automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion
(US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and made up 81 per cent share
in the domestic automobile sales in FY19. Overall, Domestic automobiles sales increased at 6.71 per
cent CAGR between FY13-18 with 26.27 million vehicles being sold in FY19. Indian automobile
industry has received Foreign Direct Investment (FDI) worth US$ 21.38 billion between April 2000
and March 2019.
Domestic automobile production increased at 6.96 per cent CAGR between FY13-19 with 30.92
million vehicles manufactured in the country in FY19.
In FY19, commercial vehicles recorded the fastest pace of growth in domestic sales at 17.55 per cent
year-on-year, followed by three-wheelers at 10.27 per cent year-on-year.
The passenger vehicle sales in India crossed the 3.37 million units in FY19, and is further expected
increase to 10 million units by FY20.
The government aims to develop India as a global manufacturing as well as a research and development
(R&D) hub. It has set up National Automotive Testing and R&D Infrastructure Project (NATRiP)
centres as well as a National Automotive Board to act as facilitator between the government and the
industry. Under (NATRIP), five testing and research centers have been established in the country since
2015.
The Indian government has also set up an ambitious target of having only electric vehicles being sold
in the country. Indian auto industry is expected to see 8-12 per cent increase in its hiring during FY19.
The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for
introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster
Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The first phase of the
scheme has been extended to March 2019 while In February 2019, the Government of India approved
the FAME-II scheme with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.
Number of vehicles supported under FAME scheme has increased to 192,451 units in March 2018 from
5,197 units in June 2015.
Automobile exports grew 14.50 per cent in FY19. It is expected to grow at a CAGR of 3.05 per cent
during 2016-2026. Domestic two wheeler industry is expected to grow at 8-10 per cent during FY19.
Also, Luxury car market in India is expected to grow at a 25 per cent CAGR till 2020. The Government
of India expects automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023.
Infographics
3.8 Future of Automobile Industry in India

The Indian automobile industry, the worlds fourth-largest, has finally embraced a slowdown after a
near-decade of high growth. On May 13, the Society of Indian Automobile Manufacturers (SIAM)
announced a 17 percent decline in passenger vehicle sales for April, the lowest in nearly eight years.

According to the data from SIAM, car sales are down for the tenth consecutive month since July 2018.
Overall, the auto industry sold 2,001,096 units during April. In the same period last year, it had sold
2,380,294 units.

“There are two reasons for the sharp fall in numbers,” explained Deepesh Rathore, co-founder of
Gurugram-based automotive consultancy Emerging Markets Automotive Advisors. “A long term
correction had been pending for some time in the sector. Dealers have now put a break on the inventory,
primarily due to the slowdown in sales. Secondly, the on-going elections and the uncertainty over the
results have also added to the slowdown,” he added.

Rathore now expects the demand to remain subdued for the next few months but doesn’t reckon that
the car sales decline will see a sharp fall again as was the case in April.

Passenger vehicle sales in April fell to 247,541 units from 2,98,504 units in the year-ago period.
Domestic car sales meanwhile fell to 1,60,279 units compared to 2,00,183 in April 2018, while two-
wheeler sales in April declined 16.36 percent to 16,38,388 units compared to 19,58,761 units in the
year-ago month.

Even in the commercial vehicle segment, sales saw a 6 percent decline in April as against the same
period a year ago. This was primarily due to a 13.5 percent decline in medium and heavy commercial
vehicles while light commercial vehicles declined by 1.10 percent.

Declining automotive sales are primarily an indicator of how the Indian economy is performing,
particularly the purchasing power of people while a slowdown in commercial vehicle sales indicates
an investment cycle slowdown.

In April, Maruti Suzuki and Hyundai sales volumes fell 19% and 10% respectively with Maruti
announcing a 10% cut in production in April.
 CHAPTER IV

COMPANY ANALYSIS

4.1 3CET OF PORSCHE

4.1.1 Company (History)

Company Analysis and Background Information

 1900: Ferdinand Porsche displays the Lohner-Porsche Electric Car in Paris

 1928: Ferdinand Porsche develops sports cars for Mercedes Benz
 1931: Porsche Engineering Office opened in Stuttgart
 1936-38: development of first Volkswagen (VW)
 1947: Ferdinand Porsche Jr. designs first Grand Prix car
 1948: first Porsche sports car: 356 Roadster
 1963: Ferdinand Alexander Porsche designs the 911
 1991 to 1993: Crisis, mainly caused by

o Recession
o Low Dollar exchange rate to the German D-Mark
o High productions costs
o Retro design which was not as popular as today

 1993: Wiedeking new CEO

 1996: Second product line introduced: Boxster
 2002: Third product line introduced: Cayenne

Wiedeking’s new strategies and emergence from crisis (1993 - )

1.Product strategy:

 New special models of each product line introduced on yearly basis over the entire life cycle
resulting in wider variety catering to both the more comfort-orientated customer as well as the
purist
 Rapid development of Boxster positioned below 911 to attract younger customers
 Search for new models to expand product line and reduce exclusive dependence on the cyclic
sports car market
 Termination of unprofitable low-volume models
2. Production and cost reducing strategies:

 Module assembly adopted from Toyota

 Common parts for as many cars as possible (Boxster looks much like 911, high-value
customer unhappy with easy confusability) to reduce costs
 Increased parts outsourcing, e.g., motor management developed by Bosch, and assembly in
Finland 2 more efficient supply management by reducing the number of suppliers
 Reduce the size of the work force
 Decrease hierarchy in company to facilitate flow of ideas
 Cooperation with other firms (VW (former CEO was Piëch), Audi) to compensate for lack of
knowledge in important fields and no direct competition between firms. 50% of Porsche
owned by Piëch and Porsche family)
 Audi on V8 TDI (low emission Diesel)
 Common platform on SUV (Cayenne, VW Toureg)
 V6 motor for Cayenne from VW

3. Design strategy:

 Retro design/ heritage (new 05 911 with round headlights again)

 SUV craze
 Super sports car (1000 units @ 450k each, all spoken for already)

4. Porsche identity (Racing heritage):

 Super sports car Carrera GT (based on 1998 Le Mans winner GT1, 215 kg V10 engine) to
balance SUV Cayenne and keep sporty image
 Innovations from racing: PCCB, PCCC (Ceramic Brakes, Clutch)
 Röhrl (former successful rally driver) hired for advertisements
 Enter in multiple racing series: Porsche Cup, Pirelli Cup, ALMS
 No recent entries in Le Mans, F1: takes too many engineers from R&D of production cars, too
expensive, risk of losing image if performance is poor
General Facts about the Company

 70 % of all Porsche vehicles ever built are still on the road

 18,4% - The highest profit margin in the industry
 More than 30.000 race victories in different classes
 6:57 – fastest lap time of a production car on the Nürburgring-Nordschleife by Porsche Spyder
918
 7000 world-wide patents, proof of engineering artistry

Porsche – A brand that has shaped the evolution of automobiles like nobody else. A brand that is
synonymous with race sports and most of all a brand that creates fascination. Porsche is responsible for
plenty of childhood dreams and has been drawing the attention of observers for more than 50 years.

In my paper I want to observe the company’s marketing strategies and its current development.
Moreover, I want to give an insight into what makes Porsche so exciting and different from all
comparable cars – even raise the question if there are comparable cars.

Product Portfolio

Product Portfolio
Brands 1. Porsche Boxster
2. Porsche Cayman
3. Porsche Cayenne
4. Porsche 911
5. Panamera
Distribution Network

Marketing Mix of Porsche analyses the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the Porsche marketing strategy. The article elaborates the pricing, advertising
& distribution strategies used by the company.

Porsche’s Marketing Mix are:

Product:

Porsche has always tried to come up with quality product so that they can retain their customers. It is
right to say that, they have been successful in doing so. It is known that Porsche was founded in 1931
and they are still expanding and growing. It has been found that the cars built by Porsche out of which
70% are still on the roads. This shows that what quality products, this company comes up with. Porsche
has always maintained its brand image and has always targeted high end customers. They follow the
theory of high-priced-high-quality sport cars available for premium segments. The portfolio can help
understand the marketing mix product strategy. Their lineup includes Cayenne, Panamera, 911, Boxster
and Macan. Porsche lineup includes from Porsche Boxster Roadster to their one of the most famous
product Porsche 911. Then they have midsized SUV i.e. Porsche Cayenne and high end luxury car
includes Porsche Panamera that was launched in the year 2009.

Price:

Porsche brand well known across the globe and people buy cars from different parts of the world. But,
their most of the sales happens in United States and it is around 40% of the total sales. If we see the
balance sheets of past few years, we can find that the profits are increasing year on year and around
$1.76 million cash lies with the company. If we closely observe, when Porsche Panamera S was
introduced in the market, it was priced around $133,000. But with time, the price came down to
$120,000 in order to boost sales. This is the technique that Porsche has been using for quite few years.
This is known as price skimming in its marketing mix pricing strategy where you introduce your
product with high price. But with time, the company lowers the prices of the products in order to
increase sales. They also used psychological pricing strategy where they kept 2-3 dollars less than
whole figure. The best part is that if Porsche changes the price they have smaller or no change in
demand as they have exclusive cars which everybody cannot afford. Thus, we can say Porsche don’t
follow competitor based pricing.

Place:

Porsche has a very simple distribution channel which gives an edge over other automobile companies.
They follow a direct distribution channel system where there is licensee and customer can go directly
to it. Sales persons available there explain the functionality of the product to the customer before
buying. Thus, the follow of the products is fast and hassle free. It has been seen that Porsche is present
across the globe but USA, China and Germany are the top sellers of cars in the world.

Promotion:

Porsche mainly targets people who are affluent and wealthy. They generally bring products keeping in
mind the premium segment. Their customers mainly constitute medium-high class people. They also
target customers based on age. They have young customers in the age group of 20-25 along with
business men in the age group of 30-40. Basically, Porsche uses media such as TV to promote its
products. So, they follow above the line marketing strategy. They often do offline promotions such as
through magazines. So, they even follow below the line marketing strategies. However, they don’t
provide incentives such as offers and discounts as the people they are targeting are rich and wealthy.
Hence, this covers the Porsche marketing mix.

Customer Service

Porsche motorsport customers receive comprehensive technical support and advice to supplement the
racecar you acquired. Our experienced and qualified technical race support advisors support customers
at race meetings and answer questions during the preparation and post-race maintenance of racecars. A
service that Porsche Motorsport has offered its national and international race customers for decades
and which it continues to develop.
Market Structure
Market Share

Deliverables (In Units) Change from Previous Year

(in %)
2018

Volkswagen Passenger 3,392,300 +12.2

Vehicles

Audi 829,300 +17.6

SEAT 259,100 +1.4

Bentley 3,700 +10.2

Lamborghini 1,000 -17.2

Volkswagen Commercial 310,700 +18.8

Vehicle

Scania 28,300 +37.0

Volkswagen Group** 5,365,000 +12.7

World market 43.6 Million +11.9

4.1.2 Customer

Market Segmentations:

Demographic: Demographic segmentation is a form of market segmentation involving dividing a

market on the basis of descriptive elements. Data provides Porsche with a distinguishable way to
measure variables of a market estimating the market size and the media to use to reach the market
segment. Demographic segmentation is based primarily on income, age, gender, education, occupation,
and social class. The demographic of the Porsche owner, includes a college graduate, household income
over $100,000, 85% male, and 15% female. The typical Porsche owner is 40 years old and up with
Porsche targeting the 25-54 age demographic seeking a slightly younger audience with the “Engineered
for magic, every day” campaign

Psychographic: Psychographic segmentation uses psychology to increase understanding of

consumers’ wants and needs. Porsche uses a psychographic segmentation approach dividing the
segment based on behavioral elements, such as psychology, lifestyle, personality traits, and values to
gain deeper insight of the consumer. The same demographic can possess different behavioral elements.

Geographic: Porsche uses a traditional geographic segmentation approach grouping markets based on
countries, continents, regions, states similar to other worldwide automotive brands. Porsche is a global
brand with dealerships located on every continent in major cities. In the United States dealerships are
located in major cities with the manufacturer dividing the market into four regions (north, south,
southwest, northwest). Porsche varies the product mix offered by dealerships within each region. As
an example, the dealers in the warmer south and southwest regions offer a higher percentage of
convertibles in the product mix versus the north and northwest regions in the United States with
marketing following suit.

Brand Positioning: Porsche offers high-quality products for a premium price with various price points
for the products in their lineup. The Porsche brand is a lifestyle brand because of its legendary status
and attributes associated with their products.
Porsche achieves the ultimate goal of locating a brand in the consumers’ mind differentiating it in terms
of attributes or benefits, quality, price, and use or user to maximize the brand. Porsche positions itself
as a high priced, high quality, exclusive sports car.

Focusing on the premium (luxury) segment with sports cars (five segments) and crossover utility
vehicles (two segments), Porsche provides the consumer with a frame of reference for the company.
Porsche offers a distinct product in each vehicle segment. The Boxster, 911, Cayman, and 918 Spyder
provide the vehicles traditionally associated with Porsche.
4.2 SWOT ANALYSIS

Strength Weakness

1. Exceptional Brand visibility 1. Has been able to completely capture huge

2. High driving position which provides a potential in emerging markets like India,
smoother driving experience. China etc.
3. Powerful engine with 500hp @ 6000 rpm 2. Strong Competition in premium SUV
with top speed on 170mph. markets means limited market share.
4. Classy advertising 3. Hire reliance on US market
5. Cruze control which provides smoother 4. Not diversified
driving experience. 5. Small in size and revenue compared to
6. Engineering Capabilities competitors
7. Comfortable Interiors 6. Unionized labor
Opportunities Threats

1. Leverage Porsche brand to expand product 1. Government regulation and policies.

lines. 2. Impending recession which may decrease
2. Implement innovative features to face purchasing power of elite class.
competition 3. Intense competition from automobile giants
3. Increase in manufacturing units to penetrate catering to elite class.
in domestic markets. 4. Declining core market share
4. Expand the market by well spread 5. Foreign Currency Fluctuation
distribution and servicing network across the
globe.
4.3 FINANCIAL RATIO ANALYSIS

Chart Title
50
45
40
35
30
25
20
15
10
5
0
P/E Ratio TTM Price to Sales TTM Price to Cash Flow Price to Free Cash Price to Book Price to Tangible
MRQ Flow TTM MRQ Book MRQ

Company Industry

Name Company Industry

P/E Ratio TTM 5.57 7.85

Price to Sales TTM 93.93 0.43

Price to Cash Flow MRQ 604.65 8.98

Price to Free Cash Flow TTM 604.65 20.36

Price to Book MRQ 0.58 0.99

Price to Tangible Book MRQ 0.29 1.99

 Profitability: TTM vs 5 Year Average Margins
9000.00%
8000.00%
7000.00%
6000.00%
5000.00%
4000.00%
3000.00%
2000.00%
1000.00%
0.00%
Gross Gross Operating Operating Pretax Pretax Net Profit Net Profit
margin TTM Margin 5YA margin TTM margin 5YA margin TTM margin 5YA margin TTM margin 5YA

Series1 Series2

Name Company Industry

Gross margin TTM 84.47% 18.67%

Gross Margin 5YA - 18.48%

Operating margin TTM 3398.06% 5.70%

Operating margin 5YA 8021.02% 7.70%

Pretax margin TTM 3395.15% 6.74%

Pretax margin 5YA 7957.25% 9.09%

Net Profit margin TTM 3372.82% 4.84%

Net Profit margin 5YA 7864.49% 6.77%

Name Company Industry

Revenue/Share TTM 0.34 324.97

Basic EPS ANN 11.34 16.83

Diluted EPS ANN 11.34 16.79

Book Value/Share MRQ 109.05 137.7

Tangible Book Value/Share MRQ 108.22 68.29

Cash/Share MRQ 2.87 70.21

Cash Flow/Share TTM 11.61 41.51

Management Effectiveness: TTM vs 5 Year Average Margins

20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Return on Equity Return on Equity Return on Assets Return on Assets Return on Return on
TTM 5YA TTM 5YA Investment TTM Investment 5YA

Series1 Series2
Name Company Industry
Return on Equity TTM 10.74% 11.82%
Return on Equity 5YA 7.36% 17.47%
Return on Assets TTM 10.65% 3.03%
Return on Assets 5YA 7.23% 4.61%
Return on Investment TTM 10.69% 4.90%
Return on Investment 5YA 7.30% 7.33%

EPS(MRQ) vs Qtr. 1 Yr. Ago MRQ 11.08% -29.78%

EPS(TTM) vs TTM 1 Yr. Ago TTM 5.93% -30.78%
5 Year EPS Growth 5YA 7.60% 24.30%
Sales (MRQ) vs Qtr. 1 Yr. Ago MRQ 64.71% 3.58%
Sales (TTM) vs TTM 1 Yr. Ago TTM 202.94% 9.19%
5 Year Sales Growth 5YA - 10.48%
5 Year Capital Spending Growth 5YA - 13.08%

Quick Ratio MRQ 6.86 0.82

Current Ratio MRQ 6.89 1.36
LT Debt to Equity MRQ 0.04% 89.43%
Total Debt to Equity MRQ 0.04% 171.41%
Efficiency
Asset Turnover TTM - 0.6
Inventory Turnover TTM 5.33 5.67
Revenue/Employee TTM 110.16K 519.85K
Net Income/Employee TTM 3.72M -194.34K
Receivable Turnover TTM 5.28 11.48

Dividend Yield ANN 3.50% 2.87%

Dividend Yield 5 Year Avg. 5YA 2.76% 2.87%
Dividend Growth Rate ANN 29.82% -4.49%
Payout Ratio TTM 15.49% 13.24
4.4 Areas of Work of Porsche

 Research and Development

The Porsche Development Centre in Weissach is the innovative think tank for the development of
fascinating Sports Cars and the global epitome of cutting edge technology

This is where we develop and design our Sports Cars of tomorrow and beyond. Our employees focus every
day on developing new ideas and innovations to further perfect our Sports Cars and to create a unique
customer experience.

The process begins with the development of new body types and components, continues into draft designs,
the optimization of acoustics and vibrations as well as aerodynamics and thermodynamics and concludes
with tests, evaluations and cost management

The development of alternative drive concepts is growing steadily in importance in the development of
vehicles. In this area, too, our engineers are working with passion to find new innovative solutions.

But Porsche doesn't develop just for its own needs. As a subsidiary of Porsche AG, Porsche Engineering
offers premium services for car manufacturers, suppliers and other companies in the industry. Worldwide.

As a development service provider with expertise in every aspect of the vehicle, Porsche Engineering
provides its customers with the complete range of modern engineering services. From the design of
individual components to the configuration of complex modules to the planning and execution of complete
vehicle projects. Including managing the run-up to production. And always in the strictest confidence.

 Production and Logistics

You can make a big difference at Porsche in Production. Because the focus here is on producing vehicles
of the highest quality efficiently, precisely and on time.

For this reason, the regular tasks in this area include the production-related optimization of work processes
and conditions at all stages of production.

Of course, nothing works without the right logistics. As a logistics specialist, you can work to design and
implement the internal and external logistics processes within the prescribed time and cost constraints.
 Accurate planning is crucial given our low level of vertical integration and the resulting high number of
daily deliveries. This is the only way we can produce our series with their many variants while always
maintaining the highest quality.

Central spare parts logistics ensures the supply of Porsche parts to our global dealer network. The focus in
this area is also on efficient and flexible processes.

Because the goal is to meet our customers' wishes around the world quickly and easily.

 Marketing and Sale

A strong brand like Porsche requires an outstanding Marketing department and an excellent Sales
department. This begins with the support of Porsche dealers and importers in Germany and abroad and also
includes the development of new product, pricing and communications strategies and the creation of sales
analyses of the various markets. Of course, our Marketing department also coordinates and supports
numerous trade show appearances and other various events.

 After Sales
Customer care doesn't end after a car is purchased; instead, that's when it really starts. The focus in After
Sales is on the global supply of spare parts and on the provision of technical support to our international
dealer organization.
International sales support is provided by area managers, who look after our importers and subsidiaries
locally in business, technical and operational matters.

 Quality Management

Porsche quality is legendary. And you can play a role in ensuring that this remains true. The best thing
about it is that this task is extremely varied - it begins at the development stage and is still far from over
when the vehicle leaves the production line. You cooperate closely with developers, work with our
suppliers well before production to ensure high quality and develop recommendations for optimization in
the production stage.

Of course, you don't just make suggestions. You also work on the implementation of your ideas in the
individual departments. You help ensure that our exclusive Sports Cars have the high quality our customers
expect.
 Finance and Controlling
You can choose between challenging controlling tasks, a demanding job in risk management or in the areas
of corporate finance, cash and asset management or traditional tasks in the accounting department.

This gives you the opportunity to gain comprehensive insights into the financial management of our
company. For example, you can use the latest methods and instruments to play an active role in establishing
the company's goals and in the planning and management of revenues, costs and results.

 Procurement

The Porsche procurement policy is focused primarily on ensuring that the high quality of our exclusive
products is maintained. The high quality standards that we set for our vehicles must also be fulfilled by our
suppliers. At the same time, we naturally have to keep an eye on costs.

We are always looking for qualified specialists to ensure the efficient and timely provision of standard
material, indirect material and capital goods that meet our quality standards.

However, your role involves more than selecting capable suppliers for us, it also entails forming a solid
and long-term working relationship with these suppliers. You support our partners to help them ensure that
they are able to exploit their full potential.

Supplier evaluations, the development of new procurement markets and the carrying out of cost and market
analyses are also part of your regular tasks in this area. You always use the most modern and efficient
methods and concepts to carry out these tasks.

 IT

In its cross-departmental role our IT department supports all company processes worldwide by ensuring
optimal process integration and efficient information management. Key factors for success in this effort
are the use of modern information and communications technologies and the application of professional
methods and tools.
 The tasks in the Porsche IT department range from the strategic planning of IT provision to process
design with the business units and the development and operation of information systems.

 Consulting
Porsche also leads the way in the area of consulting. The consulting companies at Porsche have
comprehensive expertise in the areas of engineering, management, process and IT consulting. This
consulting expertise is one of the secrets of Porsche success.

Our subsidiary, Porsche Consulting GmbH, focuses strongly on the lean enterprise. Processes are structured
and optimised along the entire value chain. The company works exclusively in accordance with the
principles that have made Porsche successful.

Mieschke Hofmann und Partner (MHP), a member of the Porsche Group, is the leading German process
and IT consulting company for the automotive industry. The company applies its approach to consulting
"Symbiosis of process and IT consulting“ in its comprehensive support of more than 250 (automotive)
customers across the entire value chain.

Being a consultant at Porsche gives you the opportunity to get to know the entire range of customers - from
manufacturers to suppliers, from dealers to importers across the entire process chain in national and
international projects.

 Human Resources Management

Motivated employees and managers are a prerequisite for a successful company. The main tasks of HR
Management therefore include recruiting the right employees and providing the conditions that allow
effective, trusting and responsible cooperation. The HR Management creates these conditions.

Personnel development creates and implements individual concepts for the training and support of our
employees to help them in their efforts to constantly improve. In operative personnel development, you
also provide the "best fit for positions" and advise employees and managers. On organizational issues,
employment law and, of course, interpersonal matters.
4.5 Analyze the buyer decision process of a traditional Porsche customer

Need Information
Recognition Search
Evaluation of
Alternative
Post Purchase
TASK
purchase Decision
Behavior
 Need Recognition

The traditional Porsche customer, follow the first stage Need Recognition. Most of the traditional
Porsche customer is a financially successful people, and who see themselves entrepreneurial. The
need to show themselves with the right car and Porsche is like a piece of clothing to stand for.

 Information Search

The customer started information search for the right car, which is the challenging Porsche with the
competent performance machine. Most of the consumer of Porsche has a strong and satisfying
feeling of it, so they may not need to do information search.

If all they needed was something to get them from point A to point B, they could find something
much less expensive. Customer expected other to like their cars and enjoy riding with in it. Most of
the traditional Porsche customer is delighted with the perceived performance of Porsche, too.

 Evaluation of Alternatives

Once all the information is gathered, the consumer prepares to make a decision. To help with a
proper decision the consumer may also evaluate alternatives.
 Porsche has positioned itself in the car industry has a historical and Luxury/performance based
brand. The “car enthusiasts” buy what they know can perform the best and that has longevity. For
Porsche, this helps dwindle the evaluation of alternatives for their potential consumers.

 Purchase Decision

Most of the Porsche buyers are not moved by information but by feelings. Because Porsche
represent luxury and challenging, customer will buy it in order to make difference or out of the
ordinary.
They develop a personal relationship with their cars, one that has more to do with the way the car
sounds, vibrates, and feels, rather than the how many cup holders it has or how much cargo it can
hold in the trunk. They admire their Porsche because it is a competent performance machine
without being flashy or phony.

 Post Purchase Behavior

Lastly, when a consumer makes a purchase they assume certain outcomes, preferably a positive
one, with that product. The only way the expectations are met comes from whether the consumer
has been satisfied or not. This aspect of the process would be considered the post purchase behavior.
According to the numbers and statistics of the sales mentioned in previous posts, I can firmly say
that the consumers are satisfied with the Porsche products.
4.6 Comparative Financial Performance

Automaker Sales EBIT Margin P/E Ratio Debt Ratio Moody’s

(Billion EUR) Rating

Audi 22.6 6.6% 0.2%

BMW 42.3 8.0 % 12.1 47.5% A1

Fiat 58.2 1.6% 31.3% Ba3

Mercedes 50.2 6.4%

Peugeot 54.4 5.3% 5.9 42.9% A2

Porsche 5.6 16.4% 16.5 6.4%

Renault 36.3 4.1% 7.5 47.6% Baa2

Volkswagen 86.9 5.2% 6.4 42.4% A1

4.7 Products of Porsche

I. 718 Cayman

The Porsche Cayman may look like a hatchback coupe version of the mid engine Porsche Boxster
convertible, but Porsche's newest car is more than that -- or so the company insists.

Actually, the Porsche Cayman exists to bridge what had been a fairly big price gap between the
Porsche Boxster and 997-series Porsche 911 Carrera that was introduced for 2005.

It's also intended to outpoint the Boxster as a driver's car, but not to outshine the 911 for speed and
status. Which makes the Porsche Cayman another of those "niche market" exercises so beloved by
automakers nowadays. All the same, the Cayman is an impressive Porsche in its own right. In fact,
some think it a better ride than the 911 Carrera, especially as it's more affordable.

Designated 987 C7S, the Cayman was developed alongside the Type 987 Boxster, which went on
sale for model year 2005. Cayman followed that second-generation Boxster to market by about a
year. The veil came off at the September 2005 Frankfurt Show. U.S. deliveries began the following
March, also for the 2006 model year.
 Porsche says the Cayman shares about 40 percent of its components with the 987 Boxsters, which
share some 55 percent of their parts with 997 Carreras. Critics often deride such "family planning,"
but not here. And it contributed to the Cayman's speedy 36-month gestation.

II. Boxster

The Porsche Boxster is a mid-engine two-seater roadster. It was Porsche's first road vehicle to be
originally designed as a roadster since the 550 Spyder. The first-generation Boxster (the 986) was
introduced in late 1996; it was powered by a 2.5-litre flat six-cylinder engine. The design was
heavily influenced by the 1992 Boxster Concept. In 2000, the base model was upgraded to a 2.7-
litre engine and the new Boxster S variant was introduced with a 3.2-litre engine. In 2003, styling
and engine output was upgraded on both variants.

Production of the 986 began at the former Porsche 928 facility in Stuttgart, Germany in
1996. Valmet Automotive also manufactured Boxsters under contract to Porsche at a facility
in Uusikaupunki, Finland. The Boxster was Porsche's biggest volume seller from its introduction
 in 1996 until the company introduced the Cayenne sport utility vehicle in 2003. As of September
2012, additional production of the 981 started at the former Karmann-factory in Osnabrück.[2]

In 2005, Porsche debuted the second generation of Boxster, the type 987, with a more powerful
engine and styling inspired by the Carrera GT. Engine output increased in 2007, when both Boxster
models received the engines from their corresponding Porsche Cayman variants. In 2009, the
Boxster models received several new cosmetic and mechanical upgrades, further increasing engine
output and performance. The third generation Boxster (type 981) was launched at the 2012 Geneva
Motor Show.

The Boxster's name is derived from the word "boxer", referring to the vehicle's flat or "boxer"
engine, and the word "roadster", referring to the vehicle's two-seater capacity and convertible top.

III. Panamera

The V8-powered Panamera S, 4S, and Turbo models were the first versions that debuted in 2009.
In addition to the 4.8L Twin Turbo 507 PS (373 kW; 500 hp) V8 powered models, Porsche
launched two further models in 2010: the Panamera and Panamera 4 which are both powered by
3.0-litre and 3.6-litre V6 engines producing 304 PS (224 kW; 300 hp).
 Being derived from the V8 engine of the Panamera S and Panamera 4S, the V6 retains the V8's
technologies like Direct Fuel Injection, infinitely variable intake camshaft adjustment with variable
valve lift (VarioCam Plus), an on-demand oil pump, water cooling with thermal management, a
variable intake manifold, as well as integrated dry sump lubrication with two-stage extraction of
oil, and an Auto Start-Stop function (only with the PDK transmission). [17] Turbo version uses active
aerodynamics with a multi-stage, adjustable rear spoiler.[18] Optional Sports Chrono Packages
include a Sport Plus button, which has tighter damping and air springs, and lowers the car's body
by 25 mm (1.0 in).[19]

In 2011, the Panamera S Hybrid,[20] Diesel,[21] Turbo S,[22] and GTS variants were added to the
range. The GTS achieves a lateral acceleration of 0.96g.[23]

The Panamera, S, Hybrid and Diesel models are rear-wheel drive, while the Panamera 4, 4S, and
GTS have the same four-wheel drive system as the Turbo and Turbo S, called Porsche Traction
Management (PTM).

The Panamera featured Adaptive air suspension, the Porsche Dynamic Chassis
Control (PDCC), active anti-roll bars[24] and the Porsche Active Suspension Management (PASM).

IV. Cayenne
The Porsche Cayenne entered the market with mixed anticipation. However, it soon proved that it was
the performance vehicle among SUVs and was praised for its excellent handling and powerful
engines.[3] The lineup initially consisted of the V8-powered Cayenne S and Cayenne Turbo. Later in
the model cycle, VR6 and diesel-powered versions joined the lineup.

The base model is powered by a 3.2-L VR6 engine producing 250 PS (184 kW; 247 hp); modifications
in the exhaust manifold allow power to peak at 6,700 rpm. Acceleration from 0–60 mph (97 km/h) is
approx. 7.5 seconds with the manual transmission and 8.1 seconds with the Tiptronic S.

Cayenne S

The S is powered by an 8-cylinder engine with a dry-sump lubrication system and infinitely variable
valve timing. It produces 344.7 PS (254 kW; 340 hp) and 310 lb⋅ft (420 N⋅m) of torque. Acceleration
from 0–60 mph (97 km/h) takes 6.9 seconds and the top speed is 150 mph (241 km/h).

Introduced only for 2006 (Pre-GTS concept), a special distinctive Cayenne S Titanium Edition Wagon
(9PA), a 1 Year exclusive, limited production SUV featuring a lightweight steel body (it is lighter than
the Cayenne S), titanium-painted accented body parts, side lower rocker body panels, 4 sports chrome
tailpipes, 19" titanium painted alloy wheels, bi-xenon headlights, two-tone interior upholstery, Porsche
PCM w/ trip computer navigation, MP3 audio and Bose cabin surround sound. This sporty design S(Ti)
is also powered by an alloy 4.5L V8 engine with a dry-sump lubrication system and variable valve
timing. The Cayenne S(Ti) engine produces 344.7 PS (254 kW; 340 hp) and 310 lb·ft (420 N·m) of
torque. Acceleration is quicker from 0–60 mph (97 km/h) at 6.8 seconds and the top speed is 150+ mph.
It featured sport tuned suspension, and includes a low-range case, a locking differential and six-speed
automatic Tiptronic transmission (See S, Turbo & Turbo S).

Cayenne GTS

The GTS is powered with a 405 PS (298 kW; 399 hp) 4.8 L V8 and features a sport suspension and 21-
inch (533 mm) wheels. It is lighter than the Cayenne S and has an aerodynamic body kit. The Porsche
Cayenne GTS has a 0–100 km/h (62 mph) time of 5.7 seconds. A six-speed manual transmission is also
offered.
Cayenne Turbo and Turbo S

The first-generation Cayenne Turbo has 450 PS (331 kW), and can accelerate from 0–100 km/h
(62 mph) in 5.3 seconds. A Turbo S version was built in 2006 to compete with the Mercedes-Benz ML
63 AMG. The Cayenne Turbo and Turbo S include a low-range case, a locking differential, and height-
adjustable, off-road suspension. The S is powered by a twin-turbocharged 4.5 L V8 that produces
521 PS (383 kW; 514 hp) and 720 N⋅m (530 lb⋅ft) of torque; Acceleration from 0–60 mph (97 km/h)
takes 5.0 seconds and the top speed is 171 mph (275 km/h); It features a six-speed automatic Tiptronic
transmission.

In 2008 an updated Turbo model, featuring a larger 4.8-L engine, was revealed at the Beijing Auto
Show. It produces 50 PS (37 kW; 49 hp) more power, and can accelerate from 0–60 mph (97 km/h) in
4.9 seconds. Also revealed with the new Turbo, was a new 550 hp (410 kW) Turbo S model.
Acceleration from 0–60 mph (97 km/h) for that car takes 4.7 seconds and it can be had with optional
ceramic composite brakes.
V. Macan

At launch, three different models and engines were available, all being V6 format: a 3.0-litre Macan S
with 340 PS (250 kW; 335 bhp), a 3.6-litre Macan Turbo with 400 PS (294 kW; 395 bhp) and a 3.0-litre,
258 PS (190 kW; 254 bhp) Diesel, with a CO
2 emissions of 159 g/km. The Macan GTS was announced in October 2015 to fit into the gap between
the Macan S and Macan Turbo.

All Macans feature a seven-speed PDK dual-clutch transmission and all-wheel drive, with several
options available including suspension and Porsche Active Suspension Management (PASM).

Porsche subsequently released a base Macan for select Asian markets and the United Kingdom. Using
a reworked version of the Volkswagen Group's 2.0-litre inline-four EA888 Gen 3 engine used in multiple
applications such as the Audi Q5, the Macan was the first Porsche to be powered by a four-cylinder
since the Porsche 968, just preceding the four-cylinder Porsche 718 (Boxster and Cayman). This
engine became offered globally for the Macan's 2017 model year following an announcement in March
2016. A 204 PS (150 kW; 201 bhp), 2.0-litre four-cylinder diesel is due to join the range at a later date.
VI. Porsche 911

The Porsche 911 (pronounced Nine Eleven or in German: Neunelfer) is a two-door, 2+2 high
performance rear-engined sports car made since 1963 by Porsche AG of Stuttgart, Germany. It has
a rear-mounted flat-six engine and all round independent suspension. It has undergone continuous
development, though the basic concept has remained unchanged. The engines were air-cooled until
the introduction of the Type 996 in 1998, with the 993, produced from 1994–1998 model years,
being the last of the air-cooled Porsche sports cars.

The 911 has been modified by private teams and by the factory itself for racing, rallying, and other
forms of automotive competition. It is among the most successful competition cars. In the mid-
1970s, naturally aspirated the 911 Carrera RSR won major world championship sports car races,
such as Targa Florio and 24 Hours of Daytona, even against prototypes. The 911-derived 935 turbo
also won the 24 Hours of Le Mans in 1979 and Porsche won World Championship for Makes titles
in 1976, 1977, 1978 and 1979 with 911-derived models.
In the 1999 international poll to determine the Car of the Century, the 911 came fifth.It is one of
two in the top five that had remained continuously in production (the original Beetle remained in
production until 2003), and was until 1998 a successful surviving application of the air- (now water-
) cooled opposed rear-engine layout pioneered by its ancestor, the Porsche 356. It is one of the
oldest sports coupé nameplates still in production with one million manufactured as of May 2017.

The first models of the 911 had a rear-mounted 130 PS (96 kW; 130 hp) Type 901/01 flat-6 engine,
in the "boxer" configuration like the 356, the engine is air-cooled and displaces 1,991 cc (2.0 L) as
compared to the 356's four-cylinder, 1,582 cc (1.6 L) unit. The car had four seats although the rear
seats were small, thus it is usually called a 2+2 rather than a four-seater (the 356 was also a 2+2).
A four or five-speed "Type 901" manual transmission was available. The styling was largely
penned by Ferdinand "Butzi" Porsche, son of Ferdinand "Ferry" Porsche. Butzi Porsche initially
came up with a notchback design with proper space for seating two rear passengers but Ferry
Porsche insisted that the 356's successor was to use its fastback styling. 7 prototypes were built
based on Butzi Porsche's original design and were internally called the Porsche 754 T7 Erwin
Komenda, the leader of the Porsche car body construction department who initially objected, was
also involved later in the design.
4.8 Competitors of Porsche

Top 10 competitors of Porsche are:

I. BMW

BMW

Parent Company BMW Group

Category Luxury Sedan, SUV

Sector Automobiles

Tagline/ Slogan Ultimate Driving machine; Sheer Driving Pleasure

BMW is technologically advanced and luxurious product

USP portfolio delivering ultimate driving experience

BMW STP

Segment Luxury segment cars for affluent customers

Target Group Targeted towards rich professionals and affluent families

 BMW is positioned as eco-friendly and technologically
advanced company which inculcates innovation in the products
Positioning to provide an exhilarating driving experience

II. Audi

Parent Company Audi (Volkswagen Group)

Category Super mini, SUV, Sedan, Sports Car

Sector Automobiles

Advancement through technology; Progress through

Tagline/ Slogan technology

Wide range of luxurious and comfortable cars delivering

USP excellent engine performance

Audi STP

Affluent customers seeking luxury, comfort and excellent

Segment driving experience

Targeted towards professionals and executives as well as rich

Target Group families

Audi is positioned as a company which continuously

progresses by using innovative technology and provides
Positioning superior luxury and better driving experience
III. Mercedes Benz

Mercedes Benz

Parent Company Daimler

Category Sedans, SUV’s

Sector Automobiles

Tagline/ Slogan The best or nothing

Mercedes is the global top-of-the-mind premium automobile

USP brand

Mercedes Benz STP

Segment Luxury automobile segment including sedans & SUV’s

Target Group Business professional form the higher income group

Positioning Mercedes Benz is the best premium car in the world

IV. Ferrarri

Ferrari

Parent Company Fiat

Category Sports Car

Sector Automobiles

Ferrari, the car for illuminati; Everything we do is driven by

Tagline/ Slogan Ferrari; We Are The Competition

Ferrari is the best in class sports cars having superior engines

USP and latest technology

Ferrari STP

Segment Sports car for affluent and elite customer

Targeted towards elite class customers seeking for a brilliant

Target Group sporty driving experience

Ferrari is positioned as a premium sports car manufacturing

company providing best features and latest technology as well
Positioning as best in class sporty driving experience
V. Jaguar

Jaguar

Parent Company Tata Motors

Category Premium Luxury Cars

Sector Automobiles

Born to perform; Unleash a Jaguar; Don't dream it. Drive it;

Tagline/ Slogan Jaguar-The art of performance; Grace. Space. Pace.

Jaguar is a premium luxury car with sport features and high

USP performance

Jaguar STP

Segment Ultra premium luxury automobile segment

Target Group Rich businessmen and Royal families

Positioning Jaguar is car full of performance, grace and luxury

VI. Aston Martin

Aston Martin

Parent Company Aston Martin

Category Sports Car

Sector Automobiles

Tagline/ Slogan Power, Beauty & Soul

USP Aston Martin offers ultimate luxury and powerful performance

Aston Martin STP

Segment Luxury Cars, Sports Car

Target Group Targeted towards the elite class of affluent customers

Aston Martin is positioned as a company which has been

delivering value to customers for many years through
Positioning unmatchable performance & exclusive luxury
VII. Bentley

Bentley

Parent Company Volkswagen

Category Luxury Sports Sedan

Sector Automobiles

Tagline/ Slogan The Ultimate Driving Machine

USP Bentley's heritage & luxury status along with the sportiness

Bentley STP

Segment Premium luxury cars

Target Group Upper class and affluent rich urban

Positioning Bentley is a premium & sporty luxury car for the elite
VIII. Lamborghini

Lamborghini

Parent Company AUDI AG

Category Sports Cars & Super Cars

Sector Automobiles

Tagline/ Slogan Feels Italian wherever you are; I’m two German sports cars

USP Lamborghini cars have superior handling & performance

Lamborghini STP

Segment The upper class of the society

Target Group The rich & affluent from the urban

Lamborghini are premium Super sports car for people who want
Positioning superior performance
IX. Lexus

Lexus

Parent Company Toyota

Category Sports Car, SUV, Sedan, convertibles

Sector Automobiles

Tagline/ Slogan Engineering the impossible; Pursuit of perfection

A dedicated luxury vehicle division by Toyota, Lexus has been

manufacturing luxurious and most efficient cars delivering
USP maximum power from minimum fuel usage

Lexus STP

Segment Luxury cars for Elite class

Targeted towards extremely affluent customers seeking ultimate

Target Group luxury

Lexus is positioned as a company continuously seeking

perfection through adoption of latest and most innovative
Positioning technologies
X. Maserati

Maserati

Parent Company Fiat

Category Sports Car, luxury cars

Sector Automobiles

Tagline/ Slogan Excellence through passion

Maserati is a unique blend of luxurious and sporty driving

USP experience due to product innovations and expertise

Maserati STP

Segment Luxury & Sports car for elite customers

Targeted towards extremely affluent customers seeking ultimate

Target Group luxury with sportiness

Maserati is positioned as a company which passionately

manufacturers cars to provide a luxurious experience along with
Positioning sporty thrill
4.9 Facts and Figures about Porsche

 Deliverables Worldwide
 Key Figures

 Workforce
 Sales Success Hybrid Technology

 Massive Investment in Electro mobility

5.1 MARKETING

To prepare various reports like:

 Monthly marketing Reports

It explains the various marketing events done, their expenses, their outcome etc.

 Dealer Report
This report is the report which is generally sent to Porsche India which explains the facts
and figures of the sales and marketing done.

 Pre Event Report

Report which is made before the event which explains the methodology of conducting the
event and estimated expense.

 Post Event Report

Report which is made after the event which explains actual outcome of the event.

 Dashboard Report
It is the graphical representation of the sales.

 KPI Report
It is the report which helps to identify performance of the sales department.

 Lost Report
This report tells about the cases which the sales person was unable to convert the customer
to purchase the car.
 Lead Report
 This tells about the leads of the cars which sales person brings.
 DQI Report
This tells about the quality of data entered into the PMS
 Forecast Report
This report forecasts the sales.
 C@P Report

 Event Management
Organizing various events like the display and drive event which was held during my tenure of
Internship at Rajkot, Surat, Anand and Baroda and for that we have to contact dealers to ask them to
organize the setup at the location and providing us with the quotation of the expenses.

 Sneak Preview of New Macan

Facelift model of the car Macan was launched, Macan S for which we conducted and display event at
Porsche Centre Ahmedabad. Hence, managed the invitations which was done through calling, SMSs
and mails and also discussed the various things with the team to conduct the event smoothly.
 CHAPTER VI

STRATEGY, ACHIEVEMENT AND LIMIATION

STRATEGY

 Contacting Marketing persons in Porsche India to get the approval for conducting various marketing
activities.
 To analyze various marketing reports and creating new reports on that basis.

ACHIEVEMENT

 Successfully conducted launch of new Macan which done after inviting 4000 customers over the phone
and for that two tele callers were hired.
 Conducted display and Drive Event at Rajkot, Baroda and Surat.
 Creating E- invites for all these three events which earlier was given to a firm to design.

LIMIATION

 Not receiving approval on time from Porsche India for conducting various marketing activities.
 CONCLUSION

At first, Porsche may have seemed to create a radical decision repositioning their product. Porsche 911 was
positioned to be “the” sports car that everyone dreamt off. They took a leap by making the product look a little
less precious than most of the consumers have established. Despite all this, it is a smart marketing move to
reposition the product ad break the stagnant notion people have perceived on the product that is hindering its
progress and profitability.

Marketing Strategies used by Porsche includes very less of Digital Marketing which they need to increase if
they want the revenue to be generated.
Sales procedures followed by the Sales Managers are very old style so there is a need that they have to change
their selling or pitching styles as the market is changing rapidly.
 BIBLIOGRAPHY

 https://www.porsche-consulting.com/en/services/functional-expertise/production-and-logistics/
 https://www.kpmg.de/docs/Auto_survey.pdf
 https://web.bryant.edu/~ehu/h364/materials/cars/cars%20_90.htm
 https://1940s.org/
 https://www.slideshare.net/hemanthcrpatna/a-project-report-on-automobile-industry
 http://shodhganga.inflibnet.ac.in/bitstream/10603/32756/10/09_chapter%202.pdf
 https://www.academia.edu/31249550/a_internship_report_of_automobile_industry