Quote:
Originally Posted by FogCityM3
I don't disagree with your observations of typical customers, but I think you have to step back and look at the reasons why Porsche has been so successful, not in terms of size, but in terms of profitability (is the most profitable auto co in the world). Porsche took the 911 and honed it to perfection for 50 years, despite its initial shortcomings. Investing and reinvesting, making it better and more competent. I don't think there's any single car from any manufacturer that has achieved iconic status like the 911 for as long as it has, other than the VW beetle. But the iconic status is also due to being a performance leader. All of Porsche's cars are leaders in their respective categories, including the SUVs and large sedans and this reinforces the brand image.
As you stated, the reason why most people go in to buy a Cayenne is because of the halo effect of the Porsche brand and what it means to them at the most common denominator level, which really comes down to brand image and exclusivity. But that brand image was earned and continues to be earned by Porsche in cars like the 911 & Cayman, whose success is determinant of why someone would even consider buying a Porsche SUV. This is why I think BMW needs to really continue investing in its core/enthusiast roots and not ignore the very principles, values, and customers that got them to this point in the first place.
The problem is that BMW is no longer producing sufficiently differentiated products and is trying hard in being everything to everyone, which I believe is hurting the brand image. Also, even though many customers don't read auto magazines or are not really into their cars, who do they ask for advice? I can't tell you how many people ask me my opinion of various car brands / end up buying because of my advice, and I know my enthusiast friends get asked the same questions all the time. This is why the core enthusiast customer matters, which one would think in this age of 'viral marketing' a company should cater to the informal 'opinion leaders' first and foremost, let alone listen to them.
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Absolutely could not have said it better myself. 100% bang on, anyone who doesn't get this should read Malcom Gladwell's the Tipping Point.