TRANSPORTATION

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(No Transcript)
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TRANSPORTATION?
LIFESTYLE?
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Outline

• Industry trends, breakdown, segments
• Porsche niches and PMP
• Market and customer analysis
• Cayenne industry, competitors, 4Ps
• Mission and strategy
• Results
• Future
• Point 4
• Point 5

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Industry Breakdown
Size isnt everything

http//www.morgancom.com/salesanalysis.htm http//
www.thecarconnection.com/index
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Industry Trends

• Companies consolidating
• Porsche one of the few independent
• World platforms
• Shorter product development and lifecycle
• Focus on niche markets

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Industry Segmentation
MPV
Saloon/Hatch
SUV
Sports
Hot Hatch
Economy
2WD
Saloon
Large
4WD
Mid Range
2 Seat
Luxury
Luxury
Mini
Luxury
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Defining Porsche 4 Niches
911
Boxster

• very high performance
• very expensive
• highly exclusive

• high performance
• expensive
• affordable

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Defining Porsche 4 Niches
Cayenne
Carrera GT

• ultimate performance
• very exclusive
• ridiculous price

• high performance SUV
• exclusive
• very expensive

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Porsche PMP 2002
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Cayenne
Carrera GT
911
Market Growth
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Boxster
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Relative Market Share
1.0
0.1
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Market Analysis 5 Forces
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Customer Analysis
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Customer Analysis

• 911 buyer age 52, income 310,000
• Boxster buyer age 47, income 243,000
• 85 are men
• 50 of buyers pay cash, own three cars one SUV

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Cayenne A problem Child?
On average, our customers own three cars an
SUV, a limousine or sedan, and a
sports car Weideking, Porsche CEO
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SUV Market Trends (US)

• SUV segment fastest growing
• Luxury SUV market to grow 25 by 2005
• Luxury SUV expected growth 250K units
• Porsche drivers own an SUV

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Luxury SUV Industry Trends
Luxury goods market worth
13,000,000,000,000 by 2005
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Cayenne Competitors
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Cayenne - Product

• Porsche High Quality / Innovation
• High performance SUV 150mph
• Luxury 4X4 off-road vehicle
• Every day use for all
• Porsche badge with practicality
• Best in niche

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Cayenne - Distribution

• US and EU markets 1st
• Dealers only
• Long delivery lead time
• Price bidding

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Cayenne - Price

• 56,000 - 95,000
• Above Premium pricing
• Aim to keep exclusivity
• Model structure for lower priced option?

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Cayenne - Promotion

• Customer involvement
• Direct mktg to existing owners
• Word of mouth
• Publicity
• Targeted advertising
• Public Relations

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Cayenne Conclusions

• Full production pre-sold
• Production rise 25,000 to 40,000
• 600M spent on customer service
• More about transport than before
• More women drivers

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Vision, Mission and Strategy
Exclusivity is relevant to Porsche in many
respects...the pressure for innovation comes from
the necessity to demonstrate our expertise
against that of the competition again and again.
Porsche must continue to grow. Not as much as
possible, but as much as necessary. -Weideking
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Leadership Wendelin
Weideking, CEO

• Clear vision clear direction
• Top-bottom revolution
• Employee focus and involvement
• Integrity gt trust
• Communication and transparency
• Obsession and performance

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Organizational Structure
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Results Porsche Sales
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Comparative Profits

• Highest op. profits vs. sales

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Financial Results
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The Future

• Critical for Cayenne to generate cash
• Broaden company stability
• Allow continued independence growth
• Support superior engineering innovation
• Risks
• Dilution of Porsche brand
• Late entry to SUV market changing tastes
• External macroeconomic global factors

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Conclusions

• Independence
• Strategic growth diversification
• RD and superior engineering
• Innovation through employees
• Porsche Lifestyle funded by Porsche
  Transportation

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Prepared and presented by(in order of first
appearance)

• Paul Hughes
• Frank Wiengarten
• Gordon Fogarty
• Dominik Mjartan
• Karen (Yan Feng)

Any Questions?
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Leadership

• Vision of growth and Independence
• "Porsche wants to grow, and we want to have only
  exclusive productsThat means we will keep
  following the niche strategy. We want to stay
  independent." Weideking