BUSN 6150 – Advanced Marketing Management
Porsche Canada: Selling Winter Driving
Shuai Chen (Shawn), T00025213
1. What does a financial analysis of Rawlinson’s options reveal? Assume that Rawlinson has a $500,000 budget and Porsche dealers and Porsche Canada earn a margin of 15% each on its winter equipment.
Winter equipment sale promotion is one of the most important events for auto companies. Following the assumption, Jasmin Rawlinson, the director of marketing for Porsche Canada, has a $500,000 budget for Porsche winter equipment sale promotion.
According to the information that the article provided, there are approximately 24,000 Porsche owners in Canada. Rawlinson estimates that 30 ...view middle of the document...
I would put Porsche Winter Equipment sale promotion advertisement on three different newspapers for a 12-week campaign so that to make more people watching Porsche advertisement every week. Then, 24,000 direct mails will be sent to the current Porsche owners. As drivers usually have a habit of listening to the radio, I plan to choose 14 rotators to play Porsche’s advertisement. Because the mid-high income people are the Porsche’s target users, who would have the habit of reading magazines, such as luxury car, real estate, tourism, the economist and business management, I decide to put Porsche’s advertisement on five different magazines. In addition, outdoor wallboard and online advertisement would be effective to attract more potential buyer. Therefore, the total advertisement fee is $379,940; and I think this marketing plan and strategy is acceptable and reasonable.
There are four types of Porsche winter equipment for sale that includes winter wheels and tires sets for $3,000, mats set for $300, roof racks set for $400 and winter apparel and gift items for $150; thus, the whole set of Porsche winter equipment is $3,850. Rawlinson hopes Porsche dealers and Porsche Canada can earn 15% margin from the winter equipment, so there is a $577.5 ($3,850*15%) margin for sale the whole set of Porsche winter equipment. Therefore, Porsche Canada can easily earn back $500,000 budget, if the company could sell 866 winter equipment sets. According...