Friday, 23 December 2005

Porsche's Perfect Portfolio

Porsche have recently expanded their car range with the launch of the all-new Cayman S. This 2-seater hard-top is in essence a Boxster with a roof on it, or a "911 Light."

In terms of price (£43,930), it sits smack bang between the Boxster (£32,640) and entry-level 911 Carrerra (£59,070). As you might expect then, it also sits right between the two in terms of performance:

  • The Boxster puts out 240bhp, gets to 159mph and does 0-62 in 6.2 secs.

  • The Cayman S has 295bhp, will reach 171mph and gets from 0-62 in 5.4 secs.

  • The 911 Carrerra achieves 325bhp, which hits 177mph and does 0-62 in 5.0 secs.


On that basis, it looks like Porsche have done an excellent job in the marketing art of 'portfolio management.' They had a gap between the Boxster and the 911 range for a mid-level sports car and so they have filled it. The product is in the right position as is the price.

However, there's a bit of a problem...

When Top Gear reviewed the car on TV*, Jeremy Clarkson said that he felt the Cayman S was capable of more, but had been limited. If this is the case, then it has been limited for purely marketing reasons, but these could have an adverse effect. Would you want a car that's not quite as good as it could, or indeed should be?

But surely this is just the ever-opinionated Clarkson having another dig at Porsche? However, rumour has it that the Cayman S is better than Porsche may have hoped - unofficially it got round the Nurburgring in Germany 4 seconds quicker than the 911 Carrerra.

If this is the case, why buy the 911 which costs £16,000 (or 36%) more? Maybe Porsche's portfolio planning wasn't quite so perfect after all.


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  Comments (1)
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Written by This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , on 05-06-2007 17:11
This sounds like an interesting and unexpected side effect of the cayman launch. I am currently writing a business case on Portfolio Management (and Brand Management) at Porsche and will definately try and include this piece of information, if only to confuse the readers a little (what Clarkson is also good at). Anymore insightful pieces of information?

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