This case involves thinking about the meaning brands have for consumers, the roles brands play, and the views customers have of brands developed through marketing and non-marketing influences.

The background readings for the module introduce you to ways of analyzing products and brands and the case reading relates to a study of the relationship consumers have with at least some brands.

The fact that individual brands may be identified with certain characteristics, while a strength in most respects, also poses challenges to marketers, both in the ability to extend the brand to new products and to protect a brand’s image in the face of such extensions. What would happen to your view of Rolex if its makers decided to offer an "economy timepiece" (think Timex)? How do you feel about Hyundai’s efforts to enter the luxury car market, competing against the likes of Lexus and Cadillac?

In a recent Wall Street Journal article, Vanessa Fuhrmans takes note of the fact that since automaker Porsche was absorbed into the Volkswagen organization, it has produced and sold more SUVs and sedans than sports cars – Boxters, 911s, Carrerras, and Caymans – the vehicles that have gotten hearts pumping for years and worked their way on to midlife bucket lists.

1. Why do you think VW/Porsche has been successful in extending its brand to Cayenne (SUVs) and Panamera (4-door sedans)? What is it about Porsche’s brand image that allowed it to transfer to family vehicles?

2. In the wake of that success, why should Porsche’s marketing execs begin major investments in supporting its sports car image, particularly when the potential market for uber-expensive sports cars is both small and crowded with competitors?

3. Based on Fournier’s paper on brand relationships (listed among the background readings), as well as this case example, what general lessons do you see for managing brand/product extensions?

Write a paper of no more than 3 pages in length (excluding title and reference pages and any appendices) addressing these questions.
CASE READING

Fuhrmans, V. (2013). Is Porsche still a sports car maker? Wall Street Journal (May 29). Available through Library Portal/Proquest, May 31, 2013.

CASE EXPECTATIONS

If you wish to include additional research materials or personal experiences, feel free to do so.

Please cite all sources in your text and provide a reference list at the end of the paper.

The following will be assessed in particular:
•Your demonstrated understanding of the marketing concepts central to the case question.
•Your ability to assess Fournier’s arguments regarding relationships.
•Your demonstrated understanding of branding and customer relationships based on insights regarding both derived from the Fournier paper and your own experience and research.

The following is a suggestion about how to lay out your paper.
•Brief introduction: what problems your paper addresses.
•Examination of central concepts: “brand”, “positioning” and "relationship."
•Examination of Fournier’s argument as to "what is a brand relationship?"
•Answer the questions.