With the North American International Auto Show in Detroit struggling to keep their show floor full of new iron, the news came today that Porsche has dropped out of the CIAS in Toronto. Toronto is one of Porsche’s strongest market, so this move may come as a shock to some. In reality, it is a well thought out marketing decision that plays to the historic strength of the Porsche brand to the individual.
Laurance Yap, Porsche Canada’s PR rep said this morning:
Porsche traditionally has better results when it spends its marketing
dollars getting prospective customers into vehicles, such as driving events
held at local dealerships, than events such as auto shows. People are more
apt to buy if they drive the cars. So we’ll be putting a greater emphasis
on personal marketing activities.
In other words, the cars sell themselves.
In case any of you have missed it, there is a major crisis in the automotive industry these days and even the strongest niche brands stand to encounter some rough times ahead. Porsche is fortunate to have possibly the most iconic brand in the industry. They are a destination brand that people aspire to own from the time they are old enough to recognize a 911. The reason Porsche’s sell themselves is that the spirit is so far rooted in the enthusiast that he is sold before that flat six even spins to life. The growl from the pipes just pushes the potential owner over the edge.
Equally important to the proliferation of the icon is the human element. From the little kid at a car show who peers past the ropes to catch a glimpse of the newest Porsche to guys like our old friend Sarj who have owned several of the early air cooled machines, every enthusiast of the brand shares their favorite story with anyone who will listen. Owners regularly bring their friends to club and dealership events and those friends often buy in to the lifestyle of the brand. Porsche is one of the few brands where dealerships and owner’s groups continually work alongside one another.
By concentrating on the individual prospect, Porsche is perpetuating the human component of the brand, while keeping a watchful eye on the expense side of business.
I just hope they don’t miss any little kids trying to see over the rope, as they are the buyers of the future.
Press release after the break
MISSISSAUGA — December 12, 2008 — Porsche Cars Canada said today that it has made a business decision to apply its marketing resources in a targeted fashion to interact more directly with its customer base. It is re-evaluating its traditional presence in auto shows and, as part of this process, has said it will not have a display at the Toronto auto show in 2009.
“The Toronto auto show is the most important in Canada and we did not take this decision lightly,†said Jasmin Rawlinson, Porsche Canada’s Director of Marketing. “Still, as we seek to find better, more targeted ways to reach out to our potential customer base – particularly in an economy as difficult as the one we face today – we must look beyond traditional consumer auto shows, even ones as prominent as Toronto.â€Â
Rawlinson said that “Toronto is Porsche’s largest market in Canada – and the Toronto Autoshow is a world-class event. But to participate with a Porsche-quality display would have required a major financial investment. Trying to connect more directly with Canadian customers allows us to allocate our limited marketing resources more effectively in a challenging economic environment.â€Â
Gary,
I think you hit it on the head with this statement.. “The reason Porsche’s sell themselves is that the spirit is so far rooted in the enthusiast that he is sold before that flat six even spins to life. The growl from the pipes just pushes the potential owner over the edge.”
The fact is a great number of people dream of/aspire to owning a Porsche one day and the question is not if they will buy one, but rather an economic function of when can they buy one? Once economics and finance are no longer obstacles, the purchase is a given and the hard choice is deciding on year and model.
Brilliant work Gary-a flawless summary of the aspiration of Porsche ownership. There is a pull to this brand like no other. It is quite different from, say, Ferrari, simply because Porsche is a much more accessible brand.
Once you are hooked, Porsche has you. You measure your life in Porsche milestones, a collection of experiences-your first encounters, your first ride in one. Test driving one. Owning one. It is a truly, special car.
Go to YouTube, and type “Porsche Are You Listening”. It is Porsche’s intro to the 993. Watch it, and you will “get it.”
Porsche sales in Canada YTD Nov 2008 1,587 compared to Nov 2007 1,877 compared to Nov 2006 1,771 these figures include the Cayenne.
Gary, you mentioned something which really rang a bell in my head, and that’s the kids.
When I was a youngster (which is not that long ago “GARY” 🙂 I used to go to the UK Motor show with my dad. He often scouted out a new car for himself or my mother whilst there, but I went around and scooped up all the goodies that the car manufacturers were handing out. I seldom left with less than a bundle of bags stuffed with brochures, a hat or two, and several balloons. Back in those days the car companies welcomed kids with open arms, nowadays…they seem to dread them!
Maybe kids have changed over the years? I know that I was always on my best behavior at the show, in fact, I even used to dress up in my Sunday best as it was looked upon as a special occasion.
Many kids in those days collected posters of cars which they stuck up on their bedroom walls and dreamed of one day owning. Some of those kids are now driving around in those dream cars. That’s what it was all about and the cars companies understood that these wide-eyed kids were going to one day become the customers of the future. It was part and parcel of doing business, at least it was if you wanted to stay in business for the long term.
Today everything is about selling cars RIGHT NOW! and not building up future sales. Car companies complain about the lack of brand loyalty and yet they gave up on the old idea of “grab them when they’re young”.
In Europe things are different…Whilst covering the UK show earlier this year I saw 3 go-kart tracks setup for kids of all ages at the event, and unlike the North American shows, kids were truly welcomed around the cars on display.
On another visit over there I visited the Mercedes-Benz World just outside London (near Goodwood racetrack). Believe it or not, at this location you can take advanced driving courses, purchase a new Mercedes, tour their classic car collection, have a meal in the fancy restaurant, and best of all, if you happen to be 11 years old or older, they’ll put you behind the wheel of an A-Class Mercedes with an instructor beside you.
Think about that for a moment…You go there on the weekend with your dad and on Monday at school you’re boasting about driving a brand new Mercedes-Benz, what is your new dream car now??? What a great idea eh!
We need some of this smart thinking injected back into the industry over here. We need the enthusiasm back into buying cars. Being green is all well and good, but if we loose the enthusiasm for cars that we all had as kids, then we’ll all be driving around in economical boxes on wheels!
Car manufacturers need to look at ideas like this, even classic cars can play a part in new car sales if you think about it. If nobody sees a classic Mustang at a show, or has never seen one on the road, why would they consider purchasing a new one?
Compared to running corporate jets, sponsoring a few classic cars shows for a few hundred bucks, letting a kid burn a little gas in a parking lot, or allowing them to put their sticky little fingerprints on a car at a show is peanuts.
The problem is, the advertising agencies don’t see a quick return in promotions like this, and we all know that the car companies put too much blind faith in them instead of listening to the old car car guy salesmen types who managed to keep the companies afloat for all these years.
My advice to the car companies would be this…ditch the university educated suits, don’t let ad agencies rule the roost, and bring back a few of the old-timers from the car industry. How does the old saying go “You can’t teach your mother how to suck eggs” 🙂
YTD Oct 2008 / Oct 2007
………………………………..Oct 08…Oct 07…YTD08..YTD07
Boxster (I)…………………….. 6……… 18……. 259…. 260
911 Carrera/Carrera 4 (I) ….. 27…….. 45……. 416…. 605
Cayman (I)……………………. 5……… 14 …….157…. 199
Total Porsche car (I)……….. 38……… 77…… 832… 1,064
Cayenne (I)………………….. 76…….. 79……. 640….. 699
Total Porsche truck (I)…….. 76……… 79……. 640…. 699
PORSCHE …………………… 114…….. 156….. 1,472.. 1,763
The younger “Net Generation” can access all the information, videos, photos, forums online why would they need to go to a car show.
For years Porsche sales have relied on the bonuses paid by the financial industry, big bonus lets get a Porsche as the toy.
They are saving up to do something to move the Panamera which is going to need all the help it can get.
Porsche… Who makes that?
To the skeptics out there…and BTW, I agree with Crash 100%-great ideas there, Crash. Video, photos, etc. online are nice Strada. But a car looks different under any light, natural or otherwise.
When I was a kid, my father took me to the local Porsche dealer in New Haven, CT every President’s Day. The staff did not panic at the sight of me. I remember being let into a Carrera, sitting in the driver’s seat, being told that the Porsche engineers put the key insert to the left of the steering wheel so a LeMans driver could, after a running start, twist the key with his left hand while using his right hand to put the car into first gear-faster than the competition.
I don’t remember what I had for dinner last night, but I remember a Porsche salesman telling that when I was around 12.
I’m on my second Porsche now. I am a middle class guy, but I strive to one day pick up a new one-from Stuttgart.
There is a difference between visiting a dealer on a tire kicking expedition, and paying to visit an auto show on a swag gathering expedition.
When I think of Porsche, what gets my juices flowing are my personal memories from the late 60’s and early 70’s as I sat at tracks like Laguna Seca and Sears Point and Riverside watching teams from Lola, Chaparral, Lotus, Jaguar, McLaren and dare I say it, yes even Corvettes race against the baddest ass of them all, the Porsche 917. This was in the days when I hung out not in the stands but literally right in the pits before, after and during the races. Back then if you didn’t have aids you would before you left. Hearing aids that is. Here is another site with some good historical photos as well as comments from a great source.
http://speedhunters.com/archive/2008/12/13/gallery-gt-gt-porsche-racing-by-norbert-singer.aspx
Great find G – fantastic images. I’ve never seen the 935/77 before….weird!