Market Entry Strategies Case Study

Porsche’s Expansion in India: A Catch 22 Situation?

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Abstract:
The automobile industry of India was at a tipping point with the emergence of the small car segment in 2007. The domestic and international car makers eyed India whose economy had reported a consistent growth of 9% in the past three years. The middle class market attracted many but according to future estimates, the strongest growth would come from the ‘Top of the Pyramid’. The super luxury car segment presented excellent opportunities for marketers. Porsche AG with global sales of €7367.9 million for the year 2006-2007, planned to expand its subsidiary, Porsche Cars India Private Limited’s (Porsche) presence in the luxury car segment. But in the wake of the expansion plans would it lose exclusivity, and how would Porsche maintain its exclusivity in the emerging Indian economy remained to be seen. The case thus helps to understand how Indians look at luxury and facilitates the discussion about how Iconic brands can maintain exclusivity in an emerging economy like India.

Pedagogical Objectives:

• To understand the dynamics of the Indian automobile industry
• To understand how Indians look at luxury
• To analyse how brands become Icons
• To analyse whether a trade off is possible between exclusivity and profitability in the luxury segment.

Keywords : Automobile industry India; Auto consumerism; Experiential marketing; Emotional branding; India’s affluent space; Luxury market India; Super luxury cars India; Brand Icons; Exclusivity; Porsche AG; Indian auto consumer; Market Entry Strategies Case Study; Luxury marquee’s India

Contents : 
Evolution of Automobile Industry in India
Timeline of production and manufacture of Cars in India
The Indian Automobile Sector Estimated Production
The Super Luxury Car Segment in India
Indian Automotive market and growth potential
Porsche in India: Expansion Plans