Sixth Marketing-Dialog: Porsche
From macho brand to brand leader - the evolution of brand
management at Porsche from 1994 to 2006
Andreas Schlegel explained to the roughly 200 advertising people attending the sixth Marketing-Dialog at the Print Media Academy the Porsche brand management.
A lackluster image, flagging sales and only one successful model: in the early 90s, Porsche looked like a perfect candidate for a hostile takeover. But the Stuttgart, Germany-based company succeeded in engineering a turnaround with a revamped product strategy, integrated brand management, and an internationally coordinated communication and marketing strategy. Today the world's smallest car maker is also the most profitable one and has racked up an unparalleled series of successes.
Until the early 90s, Porsche projected a sporty, masculine - and expensive - image. "We were running into major problems and were worried about our future as an independent company," explained Andreas Schlegel, an Assistant to the Vice President responsible for sales and marketing at Porsche AG. The marketing expert explained to the roughly 200 advertising people attending the sixth Marketing-Dialog at the Print Media Academy in Heidelberg how Porsche leveraged professional brand management to extricate itself from the crisis and reposition itself as a name that now stands like virtually no other for dynamics, quality and innovativeness, regularly topping the relevant brand rankings.
"A positive image is not something you can take for granted," stressed Schlegel at the start of his talk. "It takes hard work." And a look back shows just how hard Porsche had to work for it. In 1994, at the company's darkest hour, there were not just problems with its image. Porsche's sales and portfolio were anything but brilliant. It was selling less than 16,000 cars a year - only about a sixth of today's number. And just one model accounted for over 80 percent of the total: the Porsche Carrera. "Our business success hinged completely on the Carrera," said Schlegel. "We were only selling homeopathic quantities of the Porsche 928 and 968." The overall sales volume in 1994 was just short of 1.2 billion Euro, considerably less than even the annual profit for the 2005/2006 fiscal year.
Successful strategic about-face
The company responded by defining a new product strategy, optimizing its development and production processes, and resolving to completely revise its branding strategy from the ground up, introducing integrated brand management and consistent market communication. "We succeeded in implementing a globally consistent communication strategy, which ultimately led to the unified brand image we have today," explained Schlegel, adding that "this change in strategy only worked because it addressed all four marketing P's: product, price, place and promotion."
Andreas Schlegel explained to the roughly 200 advertising people attending the sixth Marketing-Dialog at the Print Media Academy the Porsche brand management.
A lackluster image, flagging sales and only one successful model: in the early 90s, Porsche looked like a perfect candidate for a hostile takeover. But the Stuttgart, Germany-based company succeeded in engineering a turnaround with a revamped product strategy, integrated brand management, and an internationally coordinated communication and marketing strategy. Today the world's smallest car maker is also the most profitable one and has racked up an unparalleled series of successes.
Until the early 90s, Porsche projected a sporty, masculine - and expensive - image. "We were running into major problems and were worried about our future as an independent company," explained Andreas Schlegel, an Assistant to the Vice President responsible for sales and marketing at Porsche AG. The marketing expert explained to the roughly 200 advertising people attending the sixth Marketing-Dialog at the Print Media Academy in Heidelberg how Porsche leveraged professional brand management to extricate itself from the crisis and reposition itself as a name that now stands like virtually no other for dynamics, quality and innovativeness, regularly topping the relevant brand rankings.
"A positive image is not something you can take for granted," stressed Schlegel at the start of his talk. "It takes hard work." And a look back shows just how hard Porsche had to work for it. In 1994, at the company's darkest hour, there were not just problems with its image. Porsche's sales and portfolio were anything but brilliant. It was selling less than 16,000 cars a year - only about a sixth of today's number. And just one model accounted for over 80 percent of the total: the Porsche Carrera. "Our business success hinged completely on the Carrera," said Schlegel. "We were only selling homeopathic quantities of the Porsche 928 and 968." The overall sales volume in 1994 was just short of 1.2 billion Euro, considerably less than even the annual profit for the 2005/2006 fiscal year.
Successful strategic about-face
The company responded by defining a new product strategy, optimizing its development and production processes, and resolving to completely revise its branding strategy from the ground up, introducing integrated brand management and consistent market communication. "We succeeded in implementing a globally consistent communication strategy, which ultimately led to the unified brand image we have today," explained Schlegel, adding that "this change in strategy only worked because it addressed all four marketing P's: product, price, place and promotion."
Porsche adjusted its prices to market conditions and streamlined
its product range. The 928 and 968 series were phased out. The
Boxster, introduced in 1996, was a genuine roadster that pleased
both customers and the press. The 911 series was developed further,
and in 2002 Porsche moved into a completely new market segment with
the Cayenne. Today the product mix comprising the three model
series is well-balanced; in the last fiscal year, sport cars
accounted about two-thirds of the total of 96,794 vehicles sold.
Consistent branding
For sales and advertising, Porsche forged a uniform "corporate identity" and gradually implemented it in all of the company's markets. The heterogeneous situation at the start of the 90s, when the brand was presented differently in every market, gave way to a consistent overall image. Dealerships were officially renamed "Porsche Centers", all of which worldwide now sport a silver façade and red lettering as well as a prominent round showroom. The advertising was also harmonized. "Our advertising in Japan, for example, used to have very little in common with what we were doing in the U.S.," said Schlegel. "Today one of our print ads in Tokyo looks at first glance just like one you might see in New York."
Another important instrument has been the Porsche website, which now counts over 30,000 hits a month. It plays a key role in launching new models. Under "Web Specials", customers and prospects can view complete information on new cars and emotionally experience the "fascination of Porsche". In his presentation, Schlegel also sent positive signals to the printing industry: "Classic print media are still an important marketing instrument for us - especially at the point of sale." In Germany alone, the company contracts to have 190,000 price lists printed - and some 1.8 million catalogs worldwide.
Consistent branding
For sales and advertising, Porsche forged a uniform "corporate identity" and gradually implemented it in all of the company's markets. The heterogeneous situation at the start of the 90s, when the brand was presented differently in every market, gave way to a consistent overall image. Dealerships were officially renamed "Porsche Centers", all of which worldwide now sport a silver façade and red lettering as well as a prominent round showroom. The advertising was also harmonized. "Our advertising in Japan, for example, used to have very little in common with what we were doing in the U.S.," said Schlegel. "Today one of our print ads in Tokyo looks at first glance just like one you might see in New York."
Another important instrument has been the Porsche website, which now counts over 30,000 hits a month. It plays a key role in launching new models. Under "Web Specials", customers and prospects can view complete information on new cars and emotionally experience the "fascination of Porsche". In his presentation, Schlegel also sent positive signals to the printing industry: "Classic print media are still an important marketing instrument for us - especially at the point of sale." In Germany alone, the company contracts to have 190,000 price lists printed - and some 1.8 million catalogs worldwide.
Experience the fascination
The marketing mix is rounded out by a number of "below the line" activities. Porsche has stepped up its involvement in motor sports, with the Carrera Cup in the United States providing a good example. At its factory in Leipzig, Germany the company also runs a customer center where customers and guests can experience the brand's fascination in driver courses, events and plant tours - an offering that some 50,000 visitors from around the globe now take advantage of each year. Porsche also maintains close contacts with its foreign sales partners. In addition to international activities, the release of a new model is preceded by unusual launch events specifically targeting dealers. "We want to communicate our enthusiasm to our sales partners and thus ultimately to our customers," stressed Schlegel.
This efforts are paying off. Today Porsche presides over an international network of 12 subsidiaries and is represented in 102 markets. Especially in growth markets like China and Russia, the number of Porsche Centers is expanding fast. This makes Porsche less vulnerable to fluctuations in individual markets. The portfolio is now also broader: from the Boxster across the Cayenne to the Carrera, the company has the right car for every phase in the lives of its customers. Another new series is on the horizon: the Panamera, which will target "best agers". So Porsche has succeeded in replacing its macho image with a consistent, socially accepted brand - without tarnishing its exclusive aura. More than ever before, Porsche is now complying with the instructions of its founder, Ferdinand Porsche, who said: "First I looked around, but I could not find the car I was dreaming of. So I decided to build it myself."
Contact:
Heidelberger Druckmaschinen AG
Print Media Academy
Kurfürsten-Anlage 52-60
69115 Heidelberg
Tel.: +49 (0)6221 92 24 01
Fax: +49 (0)6221 92 49 29
E-mail: pma-info@heidelberg.com
The marketing mix is rounded out by a number of "below the line" activities. Porsche has stepped up its involvement in motor sports, with the Carrera Cup in the United States providing a good example. At its factory in Leipzig, Germany the company also runs a customer center where customers and guests can experience the brand's fascination in driver courses, events and plant tours - an offering that some 50,000 visitors from around the globe now take advantage of each year. Porsche also maintains close contacts with its foreign sales partners. In addition to international activities, the release of a new model is preceded by unusual launch events specifically targeting dealers. "We want to communicate our enthusiasm to our sales partners and thus ultimately to our customers," stressed Schlegel.
This efforts are paying off. Today Porsche presides over an international network of 12 subsidiaries and is represented in 102 markets. Especially in growth markets like China and Russia, the number of Porsche Centers is expanding fast. This makes Porsche less vulnerable to fluctuations in individual markets. The portfolio is now also broader: from the Boxster across the Cayenne to the Carrera, the company has the right car for every phase in the lives of its customers. Another new series is on the horizon: the Panamera, which will target "best agers". So Porsche has succeeded in replacing its macho image with a consistent, socially accepted brand - without tarnishing its exclusive aura. More than ever before, Porsche is now complying with the instructions of its founder, Ferdinand Porsche, who said: "First I looked around, but I could not find the car I was dreaming of. So I decided to build it myself."
Contact:
Heidelberger Druckmaschinen AG
Print Media Academy
Kurfürsten-Anlage 52-60
69115 Heidelberg
Tel.: +49 (0)6221 92 24 01
Fax: +49 (0)6221 92 49 29
E-mail: pma-info@heidelberg.com
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