Case Study: Porsche's New Product Pricing
Veering Off the Sports Car Track to Create Two Winning Vehicles
Porsche’s approach to product development demonstrates how executives can make innovations outside their core business pay off. During the two decades Simon-Kucher has worked with the auto manufacturer, Porsche has followed the innovation paradigm of “design the product around the price” so rigorously that it has become an integral part of its culture. Not coincidentally, over that time, Porsche has generated impressive growth and innovated continuously, with consistently high profitability.
Results: After implementing the monetizing innovation framework and designing the product around the price, the Cayenne became Porsche’s bestselling vehicle. In 2015, it sold more than twice as many Cayennes as 911s (about 73,000 versus 32,000).3 The Panamera has been a big hit as well over the last five years, with approximately 22,000 sold in 2014 – around 1,000 more than the Boxster roadsters it delivered that year.