INDUSTRIAL REPORT

ON

“ PORSCHE MOTORS”
Submitted in partial fulfillment of the requirement for the
Award of Degee of
Bachelor of Business Administration
(BBA)

Submitted by:- Under Guidance:-

SURINDER KUMAR YADAV HIMANI GROVER

Bharati Vidhyapeeth University, Schoool of Distance Education,

Academic Study Center : BVIMR, New Delhi

Batch:- 2009-2012

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 STUDENT DECLARATION

I, SURINDER KUMAR YADAV (BBA) student, BVU, SDE, academic study

centre: BVUIMR, New Delhi hereby declare and undertake that the project on
industrial exposure submitted by me tilling “PORSCHE AUTO” in partial
fulfilment for the award of the B.B.A

SURINDER KUMAR YADAV

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 ACKNOWLEDGEMENT

Project work is never the work of an individual. It is more a combination of

ideas, suggestions, and contribution and work involving many jobs. One of the most
important parts of writing a report is the opportunity to thank all those who have
contributed to it. The list of expression of thanks, no matter how extensive, is always
incomplete and inadequate. This acknowledgement is no exception.
I want to express my sincere gratitude towards Ms HIMANI GROVER who
provided me with her expert guidance and invaluable suggestion.
I would like to thank my classmates and all those who directly or indirectly
helped me in one or the other way in the successful completion of the project.

SURINDER KUMAR YADAV

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TO WHOM SO EVER IT MAY CONCERN

This is to certify that the Industrial Report entitled “PORSCHE AUTO” is an

original piece of work done by SURINDER KUMAR YADAV in the partial
fulfilment of the requirement for the award of degree of “BBA”, SDE Academic
study centre, BVUIMR, New Delhi”. To the best of my knowledge data and
information presented by him/her in the project has not been submitted earlier.

Ms. HIMANI GROVER

(Internal Guide)

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 PREFACE

Practical exposure in the field of management is extremely important as it gives a close

view of the real business issues. It helps to cover all part that remained uncovered in the
classroom. It helps to gain experience. Just theoretical knowledge is not sufficient for the
success of any business student. So one should have practical knowledge about aspect of
life.

I learnt lot of new things from this project, which could never have have been learnt
from theory classes.

If any finding & recommendation go in any way to prove some new ground in
helping the commodity future sector, I shall deem my effort have duly served the purpose
In the forthcoming pages an attempt has been made to present report covering different
aspects of my project.

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 TABLE OF CONTENT
CHAPTER 1: INTRODUCTION OF COMPANY:- 9-21

1.0 Nature of business.

1.2 Type& Ownership Pattern

1.3 Organization structure.

1.4 Production Lay Out

1.5 Organizational Policies.

CHAPTER 2: INDUSTRIAL ANALYSIS:- 22-31

2.0 Industry overview :- (Growth rate of industry,

contribution to GDP).

2.1 Current Issues :- (From newspaper, Journals-

for company and industry).

2.2 Key competitors.

2.3 Environment scanning:-political environment, economic

environment, socio-cultural environment, technological
environment, environmental issues (Green environment)
and legal environment.

2.4 Porter’s five forces model of competition-Michael Porter.

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CHAPTER 3: MARKETING STRATEGIES:- 32-41

3.0 Product of company

3.1 4Ps (Product Price, Price & Promotion)

3.2 STP (Segmentation, Targeting and Positioning

3.3 Distrubution Channels

3.4 Promoion Strategies

CHAPTER 4: FINANCIAL ANALYSIS:- 42-52

4.0 Source of Finance

4.1 Ratio Analysis

4.2 Net profit/balance sheet

CHAPTER 5: KEY LEARNING’S FROM THE COMPANY AND

RECOMMENDATIONS:- 53-63

5.0 Performance Analysis of the Company

5.1 Reasons for the expansion/contraction/diversification of company.

5.2 Comment on Organization Leadership

5.3 Market Share/Growth rate of company

5.4 SWOT Analysis of the Company

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CHAPTER6: FINDING:- 64

CHAPTER 7: CONCULUSION AND SUGGESTION:- 65-66

BIBLIOGRAPHY:- 67

Reference Books, Journals, Newspapers, Web Sites, Reports etc. are to be listed out
here.

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 CHAPTER-1
INTRODUCTION

Today’s society is warm with urbanization and demonstration effect. With a view
towards it, there are drastic changes coming up ia all sector even in the automobile
industries.
The following information gives an insight about it.

In the present context the companies operate on the principle of natural selection
“Survival of The Fittest”. Only those companies will succeed which at best match to the
current environmental imperative-those who can deliver what people are ready to buy.
But real marketing does not involve the art of selling what the manufacture make.
Organization gain market leadership by undertaking consumer needs and finding solution
that delight consumer. If customer Value and satisfaction are absent, no amount of
promotion or selling can compensating. Hence the aim of marketing is build and manage
profitable customer relationship.

This is a part of the strategic marketing done by every company to achieve it objectives
and goals . To maximize the profit and long-term plans every organization has to follow a
strategic planning .

Marketing is much more than just an isolate business function-it is a philosophy that
guides the entire organization towards sensing, serving and satisfying consumer needs. The
marketing department cannot accomplish the company’s customer relationship-building
goals by itself. It must partner closely with other department in the company and with other
organization throughout its entire value – delivery network to provide superior customer
value and satisfaction.

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Thus marketing calls upon everyone in the organization to “think customer” and to do all
they can to help build and manage profitable customer relationship marketing is all around
us, and we need to know that it is not only used by manufacturing companies , wholesaler
and retailers, but also by all kinds of individual and organizations. Porsche, a German
manufacturer of automobiles, enjoys world-wide popularity.

The headquarters of the company is situated in Stuttgart, Germany. A €7.273 billion company,
Porsche is majority-owned by the Porsche and Piëch families and boasts of having 11,910
employees. Known for its exotic models that steep in luxury, the company has two major assets.
First, the Porsche AG, the manufacturer of Porsche automobile line, and the second, a majority
stake in Volkswagen AG, one of the chief car manufacturers in Europe.

Founded by Ferdinand Porsche, an Austro-Hungarian engineer in Volkswagen, in the year 1931,

the company is highly known for its extremely classy luxurious car models and racing cars. In the
present times, Porsche mainly produces sports car, like 911 (997), Boxster and Cayman sports
cars and Cayenne sport utility vehicles. The latest model of the company, named Panamera sedan,
has been introduced in market some time back only, on April 20 2009.

Porsche faces stiff competition in the market of cars. The closest competitors of Porsche in racing
cars have been Ferrari, though experts often rate Porsche to have been offering equal or higher
performing cars than comparatively more expensive Ferrari models. In they regular market,
Porsche faces cut-to-cut completion's from the automakers like automakers Mercedes-Benz, Audi,
and BMW, Lamborghini, Bugatti and Pagani. Despite a cut throat competition in the automobile
market, Porsche has recorded a profitable business over years

Porsche claims the distinction of holding several awards and recognitions in its kitty. As per a
survey conducted in March 2006, on 50 households of the New York City, Porsche was declared to
be the most prestigious automobile brand by Luxury Institute, New York. The company has also
been awarded with the J.D. Power and Associates Award, for the highest-ranked nameplate in its
Initial Quality Study (IQS) of automobile brands.

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The first Chief Executive Officer (CEO) of Porsche AG was Dr. Ernst Fuhrmann, who had been
working in the company's engine development. Fuhrmann was responsible for the so-called
Fuhrmann-engine used in the 356 Carrera models, as well as the 550 Spyder, having four
overhead camshafts instead of a central camshaft with pushrods, as in the Volkswagen-derived
serial engines. He planned to cease the 911 during the 1970s, and replace it with the V8-front
enginedgrand sportswagon 928. As we know today, the 911 outlived the 928 by far. Fuhrmann
was replaced in the early 1980s by Peter W. Schutz, an American manager and self-proclaimed
911 aficionado. He was then replaced in 1988 by the former manager of German computer
company Nixdorf Computer AG, Arno Bohn, who made some costly miscalculations that led to his
dismissal soon after, along with that of the development director, Dr. Ulrich Bez, who was
formerly responsible for BMW's Z1 model, and today is CEO of Aston Martin.

In 1990, Porsche drew up a memorandum of understanding with Toyota to learn and benefit from
Japanese production methods. Currently Toyota is assisting[citation needed]
Porsche with hybrid
technology, rumoured to be making its way into a Hybrid Cayenne SUV and, announced for the
2011 model four-door coupé, the Porsche Panamera.

Following the dismissal of Bohn, an interim CEO was appointed, longtime Porsche
employee, Heinz Branitzki, who served in that position until Dr. Wendelin Wiedeking became
CEO in 1993. Wiedeking took over the chairmanship of the board at a time when Porsche
appeared vulnerable to a takeover by a larger company. During his long tenure, Wiedeking has
transformed Porsche into a very efficient and profitable company.

Ferdinand Porsche's grandson, Ferdinand Piëch, was chairman and CEO of the Volkswagen
Group from 1993 to 2002. Today he is chairman of the Supervisory Board. With 12.8 percent of
the Porsche voting shares, he also remains the second largest individual shareholder of Porsche
AG after his cousin, F. A. Porsche, (13.6 percent).

In 2004, production of the 456 kilowatts (620 PS; 612 bhp) Carrera GT commenced in Leipzig,
and at EUR 450,000 ($440,000 in the United States) it was the most expensive production model
Porsche ever built.

As of 2005, the extended Porsche and Piëch families controlled all of Porsche AG's voting
shares. In early October 2005 the company announced acquisition of an 18.53% stake
in Volkswagen AG (VW AG), and disclosed intentions to acquire additional VW AG shares in the
future. As of June 2006, the Porsche AG stake in VW AG had risen to 25.1%, giving Porsche a
blocking minority, whereby Porsche can veto large corporate decisions undertaken by VW AG.

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Information On Origin & Background Of Porsche
In 1930, a company known as “Dr. Ing. h. c. F. Porsche GmbH” was founded by Professor
Ferdinand Porsche with its headquarters in Stuttgart, Germany. The company formerly dealt with
motor vehicle development work and consultation and did not produce cars under its brand. It
was only after the German government offer that the company produced a car for the people,
Volkswagen. It was then that the market saw the entrance of the Volkswagen Beetle, a car design
that is cherished till date. Porsche 64 was the first Porsche produced in 1939, using components
of the Volkswagen Beetle. Volkswagen diverted its production towards the military version of the
Beetle, the Kübelwagen and Schwimmwagen during World War II. Porsche also designed several
heavy tanks for the war, but lost the contract to Henschel & Son. However, the chassis designed
by Porsche did not go waste, as it was used as a base for the Elefant tank destroyer.

At the end of World War II, in 1945, the Volkswagen factory at Wolfsburg was undertaken by the
British. The chairman of the board of management, Ferdinand was replaced by a British Army
Major, Ivan Hirst. Furthermore, Ferdinand was arrested on the context of war crimes and served
a 20-month imprisonment. Meanwhile, his son, Ferry Porsche decided to build his own car, as he
was unable to find a car in the market that matched his preference. He built a model of the
second Porsche, 356, in a small sawmill in Gmünd, Austria. Production began after the prototype
was exhibited to German auto dealers and pre-orders were taken. Most car enthusiasts consider
the 356 model, as the first Porsche, since it was the first model sold by the company. The car
received the road certification in 1948.

Ferdinand Porsche died at the age of 76, due to complications following a stroke. Since there was
short of supply of parts, the 356 model was made using parts from the Volkswagen Beetle
including internal combustion engine, transmission and suspension. Eventually, the 356 model
underwent several stages of development, where the Volkswagen parts were replaced by
Porsche-made parts. All the Porsche designs featured air-cooled rear-engine configurations from
the very start. All the Porsche models were given sequential numbers like 356, 550, etc.

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1.0 Nature of Business
The car manufacturer. Porsche SE or Porsche (German, pronounced ) is a German
manufacturer of luxury automobiles, which is majority-owned by the Porsche and Piëch
families. Porsche SE holds two chief assets, the first of which is Dr. Ing. h.c. F. Porsche
AG, often shortened to Porsche AG, manufacturer of the Porsche automobile line. The
second asset is a majority stake in Volkswagen AG. The company is headquartered in
Zuffenhausen, a city district of Stuttgart, Baden-Württemberg.

It was founded in 1931 by Ferdinand Porsche, an Austro-Hungarian engineer born in

Maffersdorf, Austria-Hungary (today Vratislavice, Czech Republic). Porsche is also
known for designing the first Volkswagen, but Béla Barényi is credited with having
conceived the basic design five years earlier. The company currently produces 911
(997), Boxster and Cayman sports cars and Cayenne sport utility vehicles. Porsche
also makes a brand of hybrid bikes called carrera

As a company, Porsche is known for weathering changing market conditions with great financial
stability, while retaining most production in Germany during an age when most other German car
manufacturers have moved at least parts of their production to Eastern Europe or overseas.[citation
needed]
The headquarters and main factory are still in Zuffenhausen, a district inStuttgart, but the
Cayenne (and formerly the Carrera GT) is manufactured in Leipzig, Germany, parts[8] for the SUV
are assembled also in Bratislava, Slovakia. Most Boxster and Cayman production is outsourced
to Valmet Automotive in Finland until 2012.[9] The company has been highly successful in recent
times, and indeed claims to have the highest profit per unit sold of any car company in the world.

Porsche Engineering Group (PEG) has for many years offered consultancy services to various
other car manufacturers. Audi, Studebaker,SEAT, Daewoo, Subaru, Yugo and others have
consulted Porsche Engineering Group for their cars or engines.

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1.2 TYPES

In reviewing the Porsche Type List enclosed on this website, you might notice several interesting
aspects. First, although there is a strong chronological alignment of Type numbers, it is certainly
not perfect. No official explanation exists as to why this occurs. It is possible that Type numbers
were originally treated only as an informal configuration and data management tool and today’s
rigorous examination of Porsche history is but an aberration of 20/20 hindsight. Secondly, you
might also notice that there were variations on Type List numbers that were probably made rather
spontaneously. For example, consider the Type 60 with its many “K” variations to designate
different body styles. Also consider how the Type 356 was initially a tube frame chassis then
changed to a sheet metal chassis with the annotation 356/2 but the /2 later reused to describe
different body/engine offerings. Then there were the variants on the 356 annotated as 356 SL,
356A, 356B, and 356C designations and in parallel there were the 356 T1 through 356 T7
designations. Not to mention, of course, the trademark infringement threat that caused the Type
901 to be externally re-designated as the 911.

Karl Ludvigsen, in his book Porsche, Excellence Was Expected, provides the following additional
insight on Type numbers:

“Over the years Porsche skipped many numbers in the sequence. Sometimes the omissions were
accidental, for Karl Rabe, the keeper of the numbers, was anything but methodical in their
allotment. And sometimes the omissions were deliberate, as when the men of Porsche decided to
begin with No. 7, so that their first customer, the Wanderer Werke, would not think that they were
a bunch of novices. During the hectic war years many numbers in the 200 series were skipped. In
the 400 series only six numbers were used, the last being 425; a fresh start was made at 500
when the design office moved back to Stuttgart.

In the early 1960's Porsche was more closely integrating its sales, parts and service operations
with those of Volkswagen. In fact a joint VW-Porsche sports car sales program was not too many
years in the future. Porsche part numbers, therefore, needed to become compatible with those
used by VW, and when a review was made of the number classes that were already in use on the
Wolfsburg parts-control computers it turned out that the only category that was still free was the
900 series!

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Porsche ups ownership in VW to 51%:-

The supervisory board of Volkswagen Group just gave approval for Porsche AG to take a majority
stake in the people's automaker. Porsche currently owns 31% of Volkswagen, and this move will
ultimately increase that share to 51%. The increase in ownership is estimated to cost Porsche
upwards of $20 billion, although the financial deets have not yet been released. Porsche is saying
that owning a majority stake in VW will not result in the two companies combining, creating a
German mega-automaker of biblical proportions. Don't expect things to change overnight for
either company, as transactions like these generally take months to complete, if not years.

This move wasn't unexpected, either. Porsche has slowly been increasing its interest in VW over
the past several years as we reported in June 2006, April 2007 and again in June 2007. Recent
announcements that Porsche may use Volkswagen diesel powerplants in its Cayenne SUV now
seem even more likely, and exchanges of technology, components and production capacity
between the two are likely to increase.

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1.3 ORGANIZATIONAL STRUCTURE

An structure depends entirely on the organization' so bjectives and

the strategy chosen to achieve them. In a centralized structure, the decision
making power is concentrated in the top layer of the management and tight
control is exercised over departments and divisions. In a decentralized structure, the
decision making power is distributed and the departments and divisions have vary in
gdegrees of autonomy. An organizational chart illustrates the organizational
structure.

ORGANIZATION STRUCTURE OF PORSCHE

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1.4 Production Lay out

Porsche's production operations are housed in a collection of established buildings on a

mixed industrial estate in Stuttgart-Zuffenhausen. A number of buildings on the
production site have been declared industrial monuments. The site is also divided up by
several roads. This constellation calls for special solutions in order to ensure flexible
production operations in restricted space conditions. The partially automated bodyshop
thus operates on the basis of a model mix system, which means that both the Porsche
Boxster and all the variants of the 911 can be produced in any required sequence on only
one production line.
The problems resulting from the fact that Schwieberdinger Strasse separates the
bodyshop from the other production areas have also been solved in an unconventional
manner. A 15 m high conveying bridge was installed over Schwieberdinger Strasse,
connecting the bodyshop with the paint shop.

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The multi-storey production set-up in the area of body and vehicle assembly is a further
special feature underlining the unique character of the Porsche factory in Zuffenhausen.
Another eye-catcher is the new Stuttgart Porsche Centre against the backdrop of the
redesigned Porscheplatz in Stuttgart-Zuffenhausen.
The engines for all of Porsche's standard production vehicles are produced in Stuttgart-
Zuffenhausen, including the Cayenne engines. In addition to the engine production
operations, the 911 and Boxster bodies are also manufactured and assembled here. The
Cayenne and the Panamera models are produced at the Porsche factory in Leipzig.

With the "Porsche Zuffenhausen" you can experience Porsche production at close
quarters – from body shell assembly to the test area, from the early days to the
present.We advise starting with the production sequence. Here you will receive an
overview of the processes involved in the production of a Porsche.You can then take a
look at the three-dimensional site plan of the Porsche plant in Stuttgart-Zuffenhausen.
The various production areas are indicated with different colors in the overall view.

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Porsche Showroom:-

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Organisation Policies

This policy aims to promote integrated, phased, enduring and self-sustained growth of
the PORSCHE industry. The objectives are to:-

• Exalt the sector as a lever of industrial growth and employment and to achieve a
high degree of value addition in the country.
• Promote a globally competitive automotive industry and emerge as a global
source for auto components.
• Establish an international hub for manufacturing small, affordable passenger
cars and a key center for manufacturing Tractors and Two-wheelers in the
world.
• Ensure a balanced transition to open trade at a minimal risk to the Indian
economy and local industry.
• Conduce incessant modernization of the industry and facilitate indigenous

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 design, research and development.
• Steer India's software industry into automotive technology.
• Assist development of vehicles propelled by alternate energy sources.

• Development of domestic safety and environmental standards at par with

international standards.

CHAPTER - 2

INDUSTRIAL ANALYSIS

2.0 Industry Overview

Porsche cars have a virtually untarnished reputation and are considered among the
finest performance vehicles in the world. It's a reputation that's well-deserved. With
razor-sharp handling and power aplenty, Porsche vehicles offer a driving experience
like no other. It's little wonder that, for many, the marque has come to define the
sports car category. For years, the only Porsches available were sleek sports cars,
but the manufacturer recently expanded its lineup to include other types of vehicles.

The brand has its roots in the Porsche Engineering Office, founded in Stuttgart,
Germany, by Ferdinand Porsche in 1931. Porsche brought with him years of
experience as an automotive engineer; in the '20s, while employed with Daimler, his
skill was tapped to create Mercedes' iconic SS and SSK sports cars. Porsche has long

21
had close ties with Volkswagen, and the first Porsche vehicles were small two-seat
sports cars that were largely based on VW chassis. From 1948-'50, most of these
early Porsche cars (the brainchild of Porsche and his son Ferry) were actually built in
Austria before production was switched to Zuffenhausen, Germany. Ferdinand's first
real production car was the VW Beetle, so it was no surprise that his sports cars used
those components and had their air-cooled engine mounted in the rear. The 1950s
saw the birth of two icons, the 356 Speedster with its low-cut windshield and the
lightweight, midengined 550 Spyder. Both cars helped Porsche rack up a multitude of
wins on the racetrack. In the mid-'60s, the 356 made way for the revered 911.
Powered by an all-new six-cylinder engine, the coupe scored two consecutive wins at
Monte Carlo. Following in the footsteps of its predecessors, the 911's air-cooled flat-
six engine was located in the rear of the vehicle.

2.1 Current Issues:

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Some are happy to rest on their laurels. That's not our style. Our aim is to push back the
boundaries of what is possible. The result can be seen in the new Panamera Turbo S: more
dynamic response and more character. Other stories in this issue of Porsche News: the 928 GTS
from 1992 and the GT3 Cup Experience. The right outfit can be found in the MARTINI RACING
Collection from the Porsche Design Driver’s Selection.

I. The New Panamera Turbo S.

The word “Turbo” in the name not only promises extensive standard equipment and
Turbo S specific design elements, but also superior power development and a high level
of efficiency. And all with a strength of character typical of the Panamera Turbo S.
Because the aim is not to desperately force improvements in performance at all costs, but
rather to follow our natural course towards excellence.

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II. Broad rear end. High dynamic response
The 928 GTS

In 1992, Porsche achieved a new pinnacle in the development of the 928 with the 928 GTS. The
GTS was the strongest and most impressive car in this model line to date. Thanks to numerous
refinements, the V8 cylinder engine achieved an impressive 350 hp at 5700 rpm.

III. Engineered for magic Every day

Born from racing, built to be driven every day, a Porsche is an icon of pure purpose, whatever
your day's purpose happens to be. And proof that life really can be one thrilling moment after the
next.
III. GT3 Cup Experience

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The 911 GT3 Cup Experience is designed to provide the ultimate GT racecar experience. Vehicle
attributes include, 450 HP, Michelin racing slicks and team of elite instructors featuring Hurley
Haywood, one of the world's most successful road racers. This program is designed for
experienced drivers that are ready for the next level.

IV. Porsche Service and Maintenance

With the return of warm weather, Porsche owners across the nation are taking their vehicles out
of storage to get them ready for spring and summer driving. Make an appointment with your
authorized Porsche dealer today for a multi-point inspection to fine-tune your Porsche vehicle for
its best performance this season.

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V. New Cayenne Diesel in India

Porsche launches the new Cayenne diesel in India with a very aggressive sticker
price of Rs 59lakh, ex-showroom Delhi. The new 3.0-litre 240bhp V6 Cayenne diesel
now sports a cleaner and sportier design theme. Longer and sleeker than before, the
new Cayenne is the lighter and a more efficient replacement for the pervious model.
Porsche has priced the new diesel Cayenne on par with the competitors. The Porsche
competes against the monster Audi Q7 retailing at Rs 55.35lakh and the BMW X5
priced at Rs 56.50lakh (all prices ex-showroom Delhi)

2.2 Key Competitors

Porsche auto has been in India from quite a long time as the best brand by providing best
product and always focuses on customer short and long term satisfaction. Key
competitors are:-
MODELS COMPTITORS

Porsche Boxster BMW 5 Series BMW 5 Series 530d

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 Porsche 911 Toyota Prado VX (Petrol)

Porsche Cayenne Honda CR-V 4WD AT

Porsche Panamera Nissa Patrol 5.6 V8 Gas

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Porsche Cayman Ford Endeavour Automatic 3.0L

2.3 Environmental Scanning

It is believed that business transformation process does not take place in a vacuum.
Firms are driven in particular frameworks and subjected by the business
environment. Business environment can be divided in to two.
1.Micro
2.Macro
Micro environment consist of individuals or organizations which the business deal
with a regular basis. It may include customers, employees, distributors and suppliers
which are known as the stakeholders. That all components may have the direct
involvement of the business activities and it can be affected by the actions of the
business. Therefore, it can be concluded that micro environment may play a vital
role in the success and the behavior of a business. The macro environment may
consist of factors which are lying outside of the direct control of the business. It
includes economy, policies of the government and also the social changes. Since
these macro factors can primarily change the environment of a business one
individual business can rarely do much on its own to shape them. Theoretically the
macro environment can be analyzed by using PESTEL analysis.

PEST analysis is the methodology of analyzing the macro environment in most of

the countries. But, the expanded PEST model which is known as PESTEL is

28
commonly used in UK. PESTEL is stand for Political, Economical,
Social, Technological, Environmental and Legal analysis. It
describes the outline of macro environment in relation to the business
environment .Referring to the political factors, it consists of policies implemented
by the government such as the involvement in the economy. It also includes what
kind of goods and services to be produced and the priorities in relation to the
business support. The political decisions may play a vital role for some businesses
which are related to education health and also in the infrastructure facilities.
Considering the Porsche Company, the changes in laws and regulations such as
accounting standards, taxation requirements and environmental laws and legal
power of the foreign states may affect on their business especially in the
international trade. Therefore, it is critical to monitor the governments policies and
regulations in a continuous manner. Economic factors may include economic growth,
interest rates, exchange rates as well as the inflation rate. Those are the factors that
may have the potential to make effects on operations and decisions. Referring to
Porsche, interest rate may affect its cost of capital and because of that it determines
the extent of the growth of the business and expansion. Exchange rates may affect the
costs of exporting goods and the supply and price of imported goods .Social factors consist of
cultural aspects and include health perception, population growth rate, age
distribution, career attitudes and emphasis on safety. Changes in social factors
influence in the product demand and operation. For example, aging process may
generate smaller and less-willing workforce .This may lead to increasing the labour
cost. Therefore, referring Porsche to cope with these trends there should be various
management strategies to bead opted. For an example, it should be more concerned on age
limit of the workers when recruiting new workers Rate of technological changes,
automation and the technical inducements altogether considered as technological
factors. Those factors may influence with the outsourcing decisions, market entry
barriers and effective production level of a company. When considering the Porsche,
it is producing branded motor cars. Therefore, technology should be their main
focus. Because , it creates opportunities for new products and product improvement
in terms of marketing. As the technology advances, new products may introduce in
29
 to the market. Ecological and environmental aspects such as weather, climate, and
climate changes can be considered as environmental factors. Those factors may
especially influences industries such as tourism, farming, and insurance.
Furthermore, growing awareness of the potential impacts of climate change is
affecting how companies operate and the products they offer, both creating new
markets and diminishing or demolishing existing ones. Discrimination law, consumer law,
antitrust law, employment law, and health and safety law can be considered as the
component of the legal factor. These factors can influence with the operation
process, cost of production and the demand for the products. Legal aspect mainly
focuses on the effect of the national and world legislation. The Porsche Company
receives all the rights applicable in the nature of their business and every inventions
and product developments are always going into the patented process. I.e. Audi,
Porsche. The PESTEL factors are combined with external micro-environmental
factors and internal drivers in relation to the business. Furthermore, it can be
explained as opportunities and threats in a SWOT analysis.

Technology of Porsche

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31
2.4 Porters five forces model of competition

• THREATS OF NEW ENTRY- Porsche auto is a company which deal

in automobile sector. It have many competitors in the market like Toyota,
Hyundai , Honda. Therefore the it always have threats from the new
entry in market in different sections of cars like SUV’s,
hatchbacks, luxury. Therefore Skoda needs to have check for its
competitors and need to serve best.

• BUYER POWER - Porsche auto need to focus on the buyers power i.e it
should target the customers according to there purchase power by providing
different cars to different section of people.

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 For example Hatchbacks: Income group of more than Rs.300000-Rs.800000
Luxury: Income bracket of Rs.800000-Rs.1500000 SUVs: Consumer in the
income bracket of Rs.1500000 & Above.

• SUPPLIER POWER- Porsche auto should have a good supplier power so

that they can provide the cars on time. There should always be a check on the
supplier’s and the parts supplied. There should always be the uniqueness in
service and cost of changing in the supplier power.

• THREATS TO SUBSTITUTION- Porsche auto should always check on

the substitution as it may lead to loss of there customers. As it may lead to shift of

customers to different mean. It should always provide the best quality at be price.

33
 CHAPTER -3
Marketing of Company

3.0 Product of Porsche Auto

The Luxury Institute surveyed 1,642 affluent Americans to see which brands stood out among the
crowd of luxury automakers, and Porsche made out as the overall winner. The survey participants
make an average of $349,000 per year and have a net worth of $3.7 million, and they’re surveyed
on customer service, quality, exclusivity, and that overall warm and fuzzy feeling one gets about a
given brand. Porsche received high marks for its uniqueness in the marketplace, as well as for
the company’s strong focus and attention to detail.

3.1 4Ps
34
A Marketing mix is the division of groups to make a particular product by pricing,
product, branding, place, and quality. Although some Day1 marketer shave added
other P's, such as personnel, packaging and physical evidence, the fundamentals of
marketing typically identifies the four P's of the marketing mix as referring to:
"Marketing Mix" is set of correlated tools that work together to achieve
company's objectives, they are: product, price, promotion, place.

The set of controllable tactical marketing tools, product, price,place and promotion -
that the firm blends to produce the response it wants in the target market:

•Product - A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible products
are often service based like the tourism industry & the hotel industry. Typical
examples of a mass produced tangible object are the motor car and the disposable
razor. A less obvious but ubiquitous mass produced service is a computer operating
system.

•Price – The price is the amount a customer pays for the product. It is determined by
a number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the same product.

Place – Place represents the location where a product can be purchased. It is

often referred to as the distribution channel. It can include any physical store
as well as virtual stores on the Internet.

•Promotion – Promotion represents all of the communications that a marketer

may use in the marketplace. Promotion has four distinct elements -advertising,
public relations, word of mouth and point of sale. A certain amount of crossover
occurs when promotion uses the four principal elements together, which is common
in film promotion. Advertising covers any communication that is paid for, from

35
 television and cinema commercials, radio and Internet adverts through print media
and billboards. One of the most not able means of promotion today is the
Promotional Product, as in useful items distributed to targeted audiences with no
obligation attached. This category has grown each year for the past decade while
most other forms have suffered. It is the only form of advertising that targets all five
senses and has the recipient thanking the giver. Public relations are where the
communication is not directly paid for and includes press releases, sponsorship
deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is
any apparently informal communication about the product by ordinary individuals,
satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and Public
Relations

3.2 STP

SEGMENTATION:-
Market segmentation is the process in marketing of dividing a market into distinct subsets
(segments) that behave in the same way or have similar needs. Because each segment is
fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a
given marketing strategy. They are likely to have similar feelings and ideas about a
marketing mix comprised of a given product or service, sold at a given price, distributed
in a certain way and promoted in a certain way.

The process of segmentation is distinct from targeting (choosing which segments to

address) and positioning (designing an appropriate marketing mix for each segment). The
overall intent is to identify groups of similar customers and potential customers; to
prioritize the groups to address; to understand their behavior; and to respond with
appropriate marketing strategies that satisfy the different preferences of each chosen
segment.

Segments based on Income:-

36
Hatchbacks: Income group of more than Rs.400000-Rs.1000000
Luxury: Income bracket of Rs.1000000-Rs.1800000
SUVs: Consumer in the income bracket of Rs.1800000 & Above

Segments based on social class:-

SUVs: Rich class

Luxury: Upper middle class and rich class
Hatchbacks: Middle class and lower middle class

TARGETING:-
Once the firm has identified its marketing-segment opportunities, it has to decide how
many and which ones to target. Marketers are increasingly combining several variables in
an effort to identify smaller, better-defined target groups.
The decisions involved in targeting strategy include:
* Which segments to target?
* How many products to offer
* Which products to offer in which segments
In premium segments like Hatchbacks & Luxury the growth in sales has been many times
the industry growth. More importantly, high end product sales are no longer restricted to
metros. Consumer in tier-2 cities seems to be as evolved in lifestyle needs.

The consumer profile, too, has changed. Higher disposable incomes, greater aspirations
and younger demographic have increased demands for the technologies. And PORSCHE
AUTO is targeting this segment.

POSITIONING:-

Positioning has come to mean the process by which marketers try to create an image or
identity in the minds of their target market for its product, brand, or organization. It is the

37
'relative competitive comparison' their product occupies in a given market as perceived
by the target market. Once the competitive frame of reference for positioning has been
fixed by defining the customer target market and nature of competition, marketers can
define the appropriate points-of-difference and points-of parity associations.

Points of Parity (POPs) are associations that are not necessarily unique to the brand but
may in fact be shared with other brands. They represent necessary-but not necessarily
sufficient-conditions for brand choice.

PORSCHE Points-of-Parity are good quality product and best features.

Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with
a brand, positively evaluate, and believe that they could not find to the same extent with a
competitive brand.

With the strong backward integration PORSCHE can provide the products with high cost.
Thus, Porsche is positioned itself as a reliable and value-for-money
product.

3.3 Distribution Channels

Porsche Auto use different distribution channels to reach the customer. These are as
follows:
1. In this type of channel the company uses its sales representatives to deal with the
dealers directly. The dealers place the order through the sales representatives who visit
them periodically, and the products are delivered directly from the company.
Some companies appoint Direct Dealers who act as their Franchisee Outlets or their
Exclusive showroom.

38
2. In this channel of distribution the company appoints distributors on the basis of
District/ Population /No of Dealers to be handled by one distributor. The area of
operation and its potential is also taken into consideration. Some of the companies make
the distributor totally responsible from appointing the dealers to providing after sales
service

3. In this channel of distribution the company appoints Distributors as well as Direct

Dealers. The company appoints distributors to deal with small dealers who order small
quantities. With the dealers who have good potential and sales the company deals
directly. The Korean Multinational follow this channel where they appoint Distributors
for upcountry towns and direct dealers for big cities and major towns eg. Mumbai.

39
4. In this channel the company appoints a C&F agent who acts on behalf of the
company. The C&F agent is totally responsible for appointment of Distributors and
Direct Dealers. He sells to both the Distributors and the Direct Dealers at the same rates.

3.4 Promotion Strategies

40
A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organisations promotional strategy can consist.

Advertising: Is any non personal paid form of communication using any form of mass media.

Public relations: Involves developing positive relationships with the organisation media public.
The art of good public relations is not only to obtain favorable publicity within the media, but it is
also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using
money off coupons or special offers.

Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an organisation. There
has been a massive growth in direct mail campaigns over the last 5 years. Spending on direct

41
mail now amounts to £18 bn a year representing 11.8% of advertising expenditure ( Source:
Royal Mail 2000). Organisations can pay thousands of pounds for databases, which contain
names and addresses of potential customers.

Direct mail allows an organisation to use their resources more effectively by allowing them to
send publicity material to a named person within their target segment. By personalising
advertising, response rates increase thus increasing the chance of improving sales. Listed below
are links to organisation who's business involves direct mail.

Above a pull strategy (left) push strategy (right).

Communication by the manufacturer is not only directed towards consumers to create demand. A
push strategy is where the manufacturer concentrates some of their marketing effort on
promoting their product to retailers to convince them to stock the product. A combination of
promotional mix strategies are used at this stage aimed at the retailer including personal selling,
and direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is based
around the manufacturer promoting their product amongst the target market to create demand.
Consumers pull the product through the distribution channel forcing the wholesaler and retailer to
stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to
create demand from retailers and consumers.

42
Growth

As the product becomes accepted by the target market the organisation at this stage of the
lifecycle the organisation works on the strategy of further increasing brand awareness to
encourage loyalty.

Maturity

At this stage with increased competition the organisation take persuasive tactics to encourage the
consumers to purchase their product over their rivals. Any differential advantage will be clearly
communicated to the target audience to inform of their benefit over their competitors.

Decline

As the product reaches the decline stage the organisation will use the strategy of reminding
people of the product to slow the inevitable.

43
44
 CHAPTER-4

FINANCIAL ANALYSIS

4.0 Source of Finance:

I . Preferred Lease:-

The Porsche Preferred Lease* provides flexible, attractive terms and reasonable monthly
payments on new and pre-owned (up to five model years old) Porsche models. With preset lease-
end residual values, modest monthly payments and minimal initial cash requirements, the
Porsche Preferred Lease can be an attractive alternative to a cash purchase or traditional
financing.

45
Minimal Initial Cash Outlay

With the Porsche Preferred Lease, a minimal initial cash outlay will get you behind the wheel of
your new or pre-owned Porsche and no security deposit is required. In addition, Gap Protection is
included at no charge to protect you in the event your vehicle is declared a total loss due to theft
or accident.

Modest Monthly Payments

Monthly lease payments through Porsche Financial Services are often lower than typically
available through conventional financing. Payments are based on the difference between your
vehicle's initial and guaranteed residual value. Therefore, you are only paying for the use of your
Porsche based on its expected depreciation over the lease term, not its entire cost.

Flexible Terms

Convenient lease terms and flexible mileage options can be suited to your individual needs.
Standard mileage options range from 10,000 to the 15,000 miles per year, as well as an Ultra-
Low mileage option of 5,000 or 7,500 miles for sports cars. Selecting a lower mileage option may
also serve to reduce your monthly payment even more. If you require more than the standard
15,000 miles per year, you can purchase additional mileage upfront.

Single Payment Lease

The Single Payment Lease is an additional alternative to an outright cash purchase. Through this
option, you make a one-time payment for the full lease amount, which is generally less than the
sum of the payments in a conventional lease. This gives you the flexibility of keeping the cash
you would have used in an outright purchase while retaining your end-of-term options.

Possible Tax Benifits

If you use your Porsche for business purposes, leasing may provide substantial tax benefits.
Consult your tax professional for specific details.

46
Attractive Insurance Deductibles

A higher deductible may significantly reduce your insurance premiums. With the Porsche
Preferred Lease, you can carry standard insurance deductibles of $1,500 - much higher than the
$500 common with other lease programs. Check with your insurance professional for details.

Porsche Direct Pay

Make driving your new or pre-owned Porsche even more convenient with Porsche Direct Pay and
have your monthly lease payment automatically deducted from your account.

II. Retail Financing:-

Own the Porsche of your dreams with Porsche Retail Financing.* Choose from a menu of finance terms to
spread out the cost of your vehicle (up to 84 months in some cases). Upon completion of the financing
obligations you receive the title to your Porsche.Standard financing is also available on pre-owned Porsche
models up to 10 model-years old. Porsche "Classics" Retail Financing is available for Porsche models over
10 model-years old.

III. Direct Pay:-

When you finance or lease your new or pre-owned Porsche through Porsche Financial Services,
choose the Porsche Direct Pay* Program and get rid of the payment books, envelopes and
stamps. Available to new and existing customers, the program helps simplify the payment
process by automatically deducting your monthly payments from a designated account.

47
Easy Set Up

To set up Porsche Direct Pay, simply complete our authorization agreement, enclose a voided
blank check or deposit slip from the account you wish to use and mail both in the self-addressed,
postage-paid envelope. For added convenience you can even fax it in. See your dealer for a
Direct Pay brochure and enrollment form. If you're an existing Porsche Financial Services
customer, call 1-800-505-1041 for details on how you can enroll.

Secure and Convenient

Automatic payment transactions are more secure than sending a payment via mail. Your payment
won't get lost or delayed because it's automatically drawn from your designated account on the
date indicated on your lease or finance contract. ** Automatic payments typically begin four
weeks after receiving your request. Please continue to mail payments until you receive
confirmation.

48
4.1 Ratio Analysis

FINANCIAL STATEMENTS FOR PORSCHE AUTOMOBILE:-

CURRENCY IN MILLIONS OF U.S. As of: Jul 31 Jul 31Jul 31Dec 314-Year

2007 2008 2009 2010 Trend
Restated Restated Restated USD
USD USD USD

Revenues 10,927.0 11,074.0 -- --

TOTAL REVENUES 10,927.0 11,074.0 -- --

Cost of Goods Sold 5,283.5 5,822.5 -- --

GROSS PROFIT 5,643.5 5,251.5 -- --

Selling General & Admin Expenses, Total 2,342.6 2,460.4 109.7 39.2

Depreciation & Amortization, Total 788.6 843.9 -- --

Other Operating Expenses 869.0 541.3 54.9 85.4

OTHER OPERATING EXPENSES, TOTAL 4,000.1 3,845.6 164.6 124.6

OPERATING INCOME 1,643.4 1,405.9 -164.6 -124.6

Interest Expense -418.9 -757.8 -766.7 -765.3

Interest and Investment Income 309.3 452.3 157.2 391.5

NET INTEREST EXPENSE -109.6 -305.5 -609.5 -373.7

Income (Loss) on Equity Investments 1,814.0 1,493.4 593.2 3,826.3

Currency Exchange Gains (Loss) -98.8 -161.7 -1.5 --

Other Non-Operating Income (Expenses) 5,437.3 140.9 5.9 3.6

EBT, EXCLUDING UNUSUAL ITEMS 8,686.3 2,573.1 -176.5 3,331.5

Gain (Loss) on Sale of Investments -- 10,135.2 -3,618.7 -1,057.1

Other Unusual Items, Total -82.4 -130.5 -- --

Other Unusual Items -82.4 -130.5 -- --

EBT, INCLUDING UNUSUAL ITEMS 8,603.9 12,577.8 -3,795.2 2,274.4

Income Tax Expense 2,395.1 3,228.6 -317.4 -2,302.9

49
 15.6 -19.3 1,540.9 -39.2

6,208.7 9,349.2 -3,477.8 4,577.3

EARNINGS FROM DISCOUNTINUED

-- -- -1,806.4 --
OPERATIONS

NET INCOME 6,224.3 9,329.9 -3,743.2 4,538.2

NET INCOME TO COMMON INCLUDING EXTRA

6,224.3 9,329.9 -3,743.2 4,538.2
ITEMS

NET INCOME TO COMMON EXCLUDING EXTRA

6,224.3 9,329.9 -1,936.9 4,538.2
ITEMS

Ratio:-

CURRENT RATIO

A liquidity ratio that measures a company's ability to pay short-term obligations.

2008 ------ 76163/64802= 1.17

2009 ------ 77776/64534= 1.20

QUICK RATIO:

An indicator of a company's short-term liquidity. The quick ratio measures a

company's ability to meet its short-term obligations with its most liquid assets.

50
The higher the quick ratio, the better the position of the company.

The quick ratio is calculated as:

QUICK ASSETS =CURRENT ASSSTS – STOCK QUICK RATIO

2008—91756-17816=73940 73940/64802=1.14

2009---99402-14124=85278 85278/69534=1.22

Proprietary ratio

This is a variant of the debt-to-equity ratio. It is also known as equity ratio or net worth
to total assets ratio. This ratio relates the shareholder's funds to total
assets. Proprietary / Equity ratio indicates the long-term or future solvency position of
the business.

Proprietary or Equity Ratio = Shareholders funds / Total Assets

2008 ----- 37388/167919=0.22

2009 ----- 37430/177178=0.21

WORKING CAPITAL

51
A measure of both a company's efficiency and its short-term financial health. The
working capital ratio is calculated as:

Positive working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable to meet its
short-term liabilities with its current assets (cash, accounts receivable and inventory).

Also known as "net working capital", or the "working capital ratio".

2008 ----- 76163-64802=11361

2009 ----- 77776-64534=13242

RETURN ON ASSETS ( ROA)

An indicator of how profitable a company is relative to its total assets. ROA gives an
idea as to how efficient management is at using its assets to generate earnings. Calculated
by dividing a company's annual earnings by its total assets, ROA is displayed as a
percentage. Sometimes this is referred to as "return on investment".

The formula for return on assets is:

52
2008 ----- 4688/167919=0.02

2009 ----- 911/177178=0.005

4.2 Balance sheet of Porsche Auto:-

Period Ending 31-Jul-2010 31-Jul-2009 31-Jul-2008 31-Jul-2007

Assets
Current Assets

Cash And Cash Equivalents 898,000 25,036,000 6,990,000 2,410,000

Short Term Investments - 3,403,000 3,383,000 1,419,000

Net Receivables 228,000 43,255,000 20,073,000 6,337,000

Inventory - 16,265,000 757,000 625,000

Other Current Assets - - - -

Total Current Assets 1,126,000 87,959,000 31,203,000 10,791,000

Long Term Investments 22,707,000 8,867,000 9,215,000 8,141,000
Property Plant and Equipment - - - -
Goodwill - 10,449,000 11,000 11,000
Intangible Assets - - - -
Accumulated Amortization - - - -
Other Assets - - - -
Deferred Long Term Asset Charges - 1,643,000 95,000 75,000

Total Assets 28,152,000 213,565,000 45,577,000 23,332,000

Liabilities

53
Current Liabilities

Accounts Payable 6,000 11,225,000 586,000 505,000

Short/Current Long Term Debt 10,825,000 93,621,000 16,386,000 6,549,000

Other Current Liabilities 1,484,000 21,361,000 8,735,000 4,233,000

Total Current Liabilities 6,461,000 77,953,000 22,753,000 8,281,000

Long Term Debt 5,864,000 49,686,000 3,444,000 3,506,000
Other Liabilities - - - -
Deferred Long Term Liability Charges - 9,354,000 133,000 108,000
Minority Interest - - - -
Negative Goodwill - - - -

Total Liabilities 13,300,000 198,220,000 30,511,000 13,851,000

Stockholders' Equity
Misc Stocks Options Warrants - - - -
Redeemable Preferred Stock - - - -
Preferred Stock - - - -
Common Stock 297,000 297,000 297,000 167,000
Retained Earnings 14,555,000 15,048,000 14,049,000 8,546,000
Treasury Stock - - 720,000 768,000
Capital Surplus - 218,000 45,000 33,000
Other Stockholder Equity - - - -

Total Stockholder Equity - - - -

Net Tangible Assets

54
 CHAPTER-5
KEY LEARNING FROM THE COMPANY
AND RECOMMENDATION

5.0 Performance Analysis of the Porsche Auto:

The PORSCHE AUTO in India is now working in terms of the dynamics of an open
market. Many joint ventures have been set up in India with foreign collaboration, both
technical and financial with leading global manufacturers. Also a very large number of
joint ventures have been set up in the auto-components sector and the pace is expected
to pick up even further. The Government of India is keen to provide a suitable
economic, and business environment conducive to the success of the established and
prospective foreign partnership ventures. $5.7 billion is the investment envisaged in the
new vehicles projects.

The market research report "Indian Automobile Industry - An Analysis (2005-2010)"

clarifies all doubts regarding sales satisfaction index and customer satisfaction index.
With the inclusion of initial quality study, and the Government policy and competitive
analysis, this report in itself is a complete guide to the producers and consumers in the
auto industry.

REPORT HIGHLIGHTS

55
- Examines the production, sales, and export growth rates of the sector, along with a
mention of the major manufacturers.
- Identification of the opportunities for foreign companies in terms of exports,
technology transfers, strategic alliances, financial collaborations and JV's, in the Indian
vehicle sector.
- The component-wise share of production is assessed.
- Assessment of the implications of vehicle emissions
- Porter's Five Forces Analysis of the Industry
- Demand forecasts till 2010.
- An overview of the major changes occurring in the Indian market
- A study of the market access strategies for companies
- An insight into the profiles of big players of the Indian automotive sector

Performance:-

56
5.2 Organization Leadership:-

The family soap opera surrounding the attempted takeover over of Volkswagen by
Porsche may soon conclude if a reported deal is approved next week. Porsche SE, the
holding company that owns automaker Porsche AG, has attempted to secure its
independence by acquiring a controlling interest in Volkswagen. Unfortunately for
Porsche, the economic downturn has put the company in danger of insolvency thanks to a
hefty debt load.

In the midst of all the financial maneuverings, a personal drama has steadily unfolded as

57
well. Porsche is controlled by the descendants of Ferdinand Porsche's children, Ferry
Porsche and Louise Piëch. The leaders of the Porsche and Piëch branches of the family,
Wolfgang Porsche and Ferdinand Piëch, have been at odds throughout this entire process.

Piëch is chairman of VW's supervisory board, while cousin Wolfgang holds a similar
position at the family business. As the sequence of events progressed, it appeared that
Wolfgang Porsche was trying to oust his cousin, while Ferdinand Piëch was trying to
eliminate Porsche CEO Wendelin Weideking. It now appears that the two companies
have reached an agreement that will allow Porsche SE pay off much of its €10 billion+
debt. If approved, Volkswagen would pay €8 billion for Porsche in two stages. The first
would give VW 49.9%, with the rest coming at a later date.

5.3 Market Share:-

The Board of Management of Volkswagen AG officially welcomed Porsche Holding

Salzburg as part of the Volkswagen Group today. The sales company has belonged to the
Volkswagen Group since March 1st 2011. “We are very happy that the Porsche Holding
Salzburg has become a strong and fully-fledged member of the Volkswagen Group
family,” said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of
Volkswagen Aktiengesellschaft. “Porsche Holding Salzburg will remain what it has

58
always been: One of the most successful and profitable retail firms in the automotive
world – and one of the most important and high-performance companies in Austria. We
will go forward in exactly the same way and increase sales continuously.”

Volkswagen Group and Porsche Holding Salzburg (PHS) have cultivated a close and
successful collaboration for over 60 years. Based on this collaboration the Group brands
have achieved high market shares in Austria and all other countries managed by Porsche
Holding Salzburg. “PHS will carry forward its tried-and-tested successful business model
unchanged under the Volkswagen umbrella. Not only will all the divisions of the
company as well as the approximately 21,000 jobs be preserved – indeed, beyond that,
new jobs are to be created,” said Christian Klingler, Member of the Board of Volkswagen
Aktiengesellschaft responsible for Sales.

5.4 SWOT Analysis:-

Porsche Automobil Holding SE - SWOT Analysis company profile is the essential source for top-
level company data and information. Porsche Automobil Holding SE - SWOT Analysis examines
the company’s key business structure and operations, history and products, and provides

summary analysis of its key revenue lines and strategy.

Strengths:

• Technological skills
• Leading Brands
• Distribution Channels
• Customer Loyalty/ Relationships
• Production Qualitiy
• Scale
• Management

Weaknesses:
59
 • Absence of important skills
• Weak brands
• Poor access to distribution
• Low customer retention
• Unreliable product/ service
• Sub-scale
• Management

Opportunities:

• Changing customer tastes

• Technological Advances
• Change in government politics
• Low personal taxes
• Change in population age
• New distribution channel

Threats:

• Changing customer base

• Closing of geographic markets
• Technological advances
• Changes in government politics
• Tax increases
• Change in population age
• New distribution channels

60
 CHAPTER-6

FINDINGS

6.0 FINDINGS:-

1. By calculating the display share we found that in most of store porsche product
availability 50-60% (Sport Car, Cars) .

2. By the actual monthly sale of particular store we came to know the capacity of the
store and how much product can they sale.

3. It help us that weather dealer is capable of being a direct dealer of Porsche or not and
it also helps to find out the new dealer who are capable of being the dealer of Porsche.

4. We also came to know while visiting the showroom that there was big problem of after
sale service.

5. Many dealers were facing the problem of after sale service because there is no follow
up calls from Porsche.

6. Demo installation process & team working properly or not.

61
 CHAPTER-7

Conclusion and Suggestions

7.1 Conclusions :-

In terms of lean production, the Porsche case indicates that it is not, as many early critics
claimed, effective only in a Japanese context. In addition to its effectiveness in
conventional large-scale automobile production as epitomized by Toyota, the Porsche
example also demonstrates the flexibility, perhaps even timelessness, of the principles of
lean production. In this sense, lean production represents a successful instance of
globalization. Porsche’s increasingly global market (from 40 nations to 100 between
1990 and 2007 ) emphasizes the increasing economic interdependence associated with
globalization, while the arrival of lean production from Japan is a clear demonstration of
the diffusion of practices across nations. Like most instances of technology transfer
across cultures, however, there have been difficulties associated with cultural variations,
in particular the fear of homogenization.

Therefore, the balance between adopting lean production techniques and maintaining
brand identity has been critical during this period. While Porsche’s success in the general
market indicates that Porsche has found a good balance, many enthusiasts of the
traditional cars have been alienated. A lot of the personality and uniqueness of the early
cars has been lost, but at the same time, many of Porsche’s most important values remain
intact in the cars, including those of reliability, high quality, high utilitarian value,

62
distinctive design, and competition heritage. Just as the design and production of the cars
themselves relies on a certain amount of compromise, so too does the continued existence
and success of the company. If recent years are any indication, then Porsche seems to
have found an extremely effective balance between remaining faithful to it its core
principles and developing itself as a company to remain competitive.

Suggestion:-
• There should be exchange offer .
• Form an efficient research and development team in order to improve quality
and add technical features in the Cars.
• Create an effective advertisement with an influential punch line.
• Improve products finishing, and service to the customers.
• Organize contests, events, games to promote company’s brand image.
• Reduce manufacturing, sales and distribution and other indirect cost
• Invest on advertisement Porsche and other sales promotion tools.
• Attract customers by exchange offer, discount offer, cash back offer and face
gift offer on the festival occasions.
• Establish a cordial relationship with dealers and offer a good commission
margins for promoting our products.
• Keep a hawk eye on the competitors and act according to their sales
and
marketing strategy.

63
 BIBLIOGRAPHY:-

• http://en.wikipedia.org/wiki/Videocon

• http://www.porscheworld.com/

• http://www.google.co.in/

• http://in.yahoo.com/?p=us

REFERENCE BOOK:-

Marketing Management V.S. RAMASWAMY AND NAMAKUMARI

ADVERTISING AND PROMOTION GEORGE E.BELCH

&
MICHAEL A. BELCH

AUTO MAGAZINES:-

64
 AUTOCAR

 OVERDRIVE

65