1. Introduction to Porsche Lizenz- und Handelsgesellschaft mbh & Co. KG
Porsche Acceleration IV
Costa Rica, June 15th, 2004

2. Agenda
Introduction to PORSCHE Lizenz- und Handelsgesellschaft mbH & Co. KG
Company Structure
Objectives
PORSCHE DESIGN vs. PORSCHE DESIGN Driver's Selection Strategy
Brand Strategy
Marketing Strategy
Product
Price
Distribution/POS
Communication
Product Highlights MY05

3. Company Structure
PORSCHE DESIGN and Selection have been merged to form one company of which PAG holds 65% and the Porsche family 35% of the stakes
F.A.
H.P.
50%
50%
PD PV
GmbH
PORSCHE AG
PORSCHE
Verwaltungs GmbH
35%
65%
PORSCHE Lizenz- und Handels-
Gesellschaft mbH & Co. KG (PLHG)
35%
65%
PD GmbH, Zell am See
(Design Studio)
PDoA Inc.
100%
100%

4. Objectives 
Reduce consumer confusion about the different brands 
Streamline brand management outside the automotive sector 
Maintain the brand values 
Strengthen the Porsche brand presentation 
Generate synergy effects in product and sales management 
Realize sales and profit potentials

5. Brand Strategy
Three brands will be transformed into one brand with a sub-brand
DRAFT

6. Brand Strategy
PORSCHE DESIGN will be positioned into the luxury market, whereas Driver's Selection will act as a sub-brand in the bridge market
Luxury
Louis Vuitton, Dior, Hermès, Armani, Cartier, Prada, Patek Philippe, Donna Karan, IWC
Premium
Mont Blanc, Baume&Mercier, Ralph Lauren, Hugo Boss, Calvin Klein
Bridge
Hugo, Emporio Armani, DKNY, ck
Mass
Esprit, Eddie Bauer, Swatch, Zara, GAP
Discount
H&M, Marks&Spencer,

7. PORSCHE DESIGN Brand Strategy
There is a lack of genuine mens’ brands with a credible technical background in the luxury segment
multi segment focus
technical
functional
fashion
emotion
single segment focus

8. PORSCHE DESIGN Brand Strategy
Porsche Design is a truly masculine brand with a high aspirational factor
modern/sexy
feminine
masculine
traditional

9. Multi-segment luxury brand
Brand Strategy
PORSCHE DESIGN is able to hold a unique position in the market: 
Masculine with high emotional aspiration
Perfection 
Modern, yet classical
Passion 
Technical functionality 
True design competence
Performance 
Credibility for a broad range of products
Multi-segment luxury brand

10. PORSCHE DESIGN Driver's Selection Brand Strategy
PORSCHE DESIGN Driver's Selection owns a modern lifestyle, high-end position within the competitors’ field of car merchandising brands
(price) high end
modern/
lifestyle
traditional
(price) low end

11. PORSCHE DESIGN Driver's Selection Brand Strategy
PORSCHE DESIGN Driver's Selection is able to own a unique position in the market: 
Mainly car-related products for Porsche owners, their family and fans 
Technical functionality, but also modern, maybe even trendy lifestyle products 
Sportiness 
Credibility for a unique product range related to the Porsche car
multi-segment bridge brand

12. Marketing Strategy
PORSCHE DESIGN versus PORSCHE DESIGN Driver's Selection 
Product 
Price 
Distribution 
Communication

13. Product Strategy
There are exclusive product groups for PORSCHE DESIGN and PORSCHE DESIGN Driver's Selection, but there is also a product overlap
Clothing
Watches
Luggage/Leather
Writing instruments
Golf equipment
Sunglasses
Lifestyle
Sporting goods
Fragrance
Electronic equipment (mobile phones, etc.)
Pocket knives
Shoes
Giveaways
Calendars
Kid's products
Model cars

14. Product Strategy
Differentiation of products: watches PORSCHE Design watches will have mainly mechanical movements, while the PORSCHE DESIGN Driver’s Selection watches will have quartz movements

15. Product Strategy
Differentiation of products: clothing Porsche Design will be a rather clean and minimal collection in comparison to the sporty and casual look of Driver’s Selection

16. Marketing Strategy
PORSCHE DESIGN versus PORSCHE DESIGN Driver's Selection 
Product 
Price 
Distribution 
Communication

17. Price Strategy
PORSCHE DESIGN Driver's Selection will mainly offer products up to € 500 MSRP
MSRP price range
[EUR]
Giveaways –– 1 – 20
Calendars/Books –– 25 – 40
Watches
975 –
66,000
350 –
500
Sunglasses
149 –
300+
100 –
200
Lifestyle –– 10 –
300
Luggage
200 –
2.000+ 15 –
1.400
Small leather goods 50 –
500+ 35 –
400
Model cars –– 20 –
350
Kid's products –– 20 –
600
Writing instruments 60 –
500+ 20 –
100
Sporting goods
250 –
2.500+ 20 –
550
Clothing –– 10 –
800

18. Marketing Strategy
PORSCHE DESIGN versus PORSCHE DESIGN Driver's Selection 
Product 
Price 
Distribution 
Communication

19. Distribution Strategy
Strict separation of distribution channels for PORSCHE DESIGN and PORSCHE DESIGN Driver's Selection
Exclusive retail stores
Franchise stores
Shop-in-shops at up-market department stores
Up-market specialist stores
Porsche dealers, if requirements are met
Porsche dealers worldwide
Online shops
B2B key accounts (e.g. Lufthansa)

20. PORSCHE DESIGN Distribution Strategy
Current POS for PORSCHE DESIGN
Frankfurt
Los Angeles
Munich
Salzburg
Dubai
Hong Kong
Taiwan/Taipeh
PORSCHE DESIGN Stores
Franchise Shops
Shop-in-Shop

21. PORSCHE DESIGN Distribution Strategy
Planned PORSCHE DESIGN Stores:
Hamburg, Berlin, Düsseldorf, Frankfurt, Vienna, Zürich, Milan, Paris, London, Barcelona, Moscow
New York, San Francisco, Los Angeles, Chicago, Boston
Europe
USA
Future retail expansion of PORSCHE DESIGN
Planned Franchise Stores:
Stockholm, Lyon, Bordeaux, Warsaw, Göteborg, Manchester, Glasgow, Dublin, Rome
Hong Kong, Singapore, Shanghai, Seoul, Kuala Lumpur, Tokyo
Europe
Asia
PORSCHE DESIGN Stores
Franchise Shops 
30 PORSCHE DESIGN Stores, 25 Franchise Stores, 50 Shop-in-Shops
Shop-in-Shop

22. PORSCHE DESIGN Distribution Strategy
Retail presentation is crucial for the success of a lifestyle luxury brand: the success of Louis Vuitton and Mont Blanc is built on an exclusive, selective POS-strategy 
Selective retail presence ensures pure, eye-catching branding

23. Distribution Strategy
Both PORSCHE DESIGN and PORSCHE DESIGN Driver’s Selection are in the process of developing new shop systems
Matteo Thun (architect) will create the PORSCHE DESIGN retail presence in own shops, shop-in-shops and franchises
First shop opening planned for autumn 2004 in Munich, Milan, Hamburg and Paris
Professional store designers will create a modular, flexible shop-in-shop system, that meets with the Porsche dealer requirements
First prototype to be set up beginning MY 05

24. PORSCHE DESIGN Driver's Selection Distribution Strategy
Shop-in-shop concept
5m² (Draft)

25. PORSCHE DESIGN Driver's Selection Distribution Strategy
Shop-in-shop concept
5m² (Draft)

26. PORSCHE DESIGN Driver's Selection Distribution Strategy
Shop-in-shop concept
10m² (Draft)

27. PORSCHE DESIGN Driver's Selection Distribution Strategy
Shop-in-shop concept
20m² (Draft)

28. PORSCHE DESIGN Driver's Selection Distribution Strategy
Shop-in-shop concept adapts perfectly to the Porsche architecture (Draft)

29. PORSCHE DESIGN Driver's Selection Distribution Strategy
Next steps:
Develop first draft for an easy-to-handle shop-in-shop system
Set up a prototype at a PORSCHE dealership to improve and fine-tune the system
Prepare a sensitive roll-out of the new shop-in-shop system considering the dealer investments made in the markets
Focus on main markets
The Tequipment and Exclusive fitting lounge will remain unchanged (updates for new models are planned, missing display elements e.g. a plasma screen stand will be added)

30. PORSCHE DESIGN Driver's Selection Situation Latinamerica
March

31. PORSCHE DESIGN Driver's Selection Situation Latinamerica
Next steps:
Make basic range of Selection available at PoS (e.g. T-shirts, Caps, Pins, Pens, etc.)
Try out kids’ articles (remote control cars, kid’s car, dingy boat)
Use Selection articles in Marketing events like Golf tournaments (golf bag, putter, Porsche golf balls …), Driving events (sell model cars, T-shirts, key chains)