Ferrari Marketing Strategy – Marketing Strategy of Ferrari: Enzo Ferrari founded the Italian icon in 1947. It is well-known for its high-quality Sports Car Manufacturing. It is a leading luxury brand that focuses on elegant design and advanced engineering. The brand represents innovation and Italian design and engineering heritage. It also symbolizes exclusivity and state-of-the-art sporting performance.
Scuderia Ferrari, a Formula 1 racing team is closely associated with the company. The team has won 224 Grand Prix races since 1950, 16 Constructor World titles, and 15 Drivers World titles.
Ferrari designs and produces the cars in Maranello in Italy and then sells them in more than 60 countries worldwide.
Ferrari At A Glance – Marketing Strategy of Ferrari
Company : Ferrari
CEO: John Elkann
Founder: Enzo Ferrari
Year founded: 1947, Maranello, Italy
Headquarters: Maranello, Italy
Annual Revenue: €3.767 billion
Profit | Net income: €699 million
Products & Services: Sport cars and other Prodects of Ferrari is eyewear, pens, pencils, electronic goods, perfume, cologne, clothing, high-tech bicycles, watches, cell phones, and laptop computers.
Competitors: Ford Motor | Honda | Porsche Automobil Holding | Audi | Aston Martin Lagonda | Mercedes-Benz | McLaren Technology Group | Bugatti | Chevrolet
Ferrari Fun Fact: The first-ever Ferrari, though not technically speaking called a Ferrari, as the Auto Avio Costruzioni 815. This was a two-seater Barchetta that had a 1.5-liter engine under the hood.The “Tipo 815” was built in 1940 and only two were ever built. Both of these raced at the 1940 Brescia Grand Prix but both failed to finish due to engine problems.
Marketing Strategy of Ferrari
Ferrari’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Ferrari? Let us discuss.
Marketing Strategy of Ferrari – Segmentation, Targeting, Positioning
Segmentation allows the brand to understand the package of offerings and features that will suit the specific set of customers. Ferrari employs demographic, and psychographic segmentation techniques.
Ferrari employs selective targeting because the company doesn’t want everyone to own its brand. Therefore, it conducts a background. Its target customers include well-known personalities and celebrities worldwide.
The brand is closely associated with some of the world’s most prestigious racing events. To give owners pride in their masterpiece, the brand uses a value-based positioned strategy.
Ferrari Mission Statement
“To build cars, symbols of Italian excellence the world over, and do so to win on both road and track.”
Ferrari Vision Statement
“Italian Excellence that makes the world dream”
“ Driven by Emotion”
Marketing Strategy of Ferrari – Competitive Advantage
- Controlled growth in emerging and developed countries: The company employs a low-volume production strategy which allows it to retain exclusivity, while also keeping up with changing consumer dynamics as well as socio-economic changes.
- The company has been able to stay ahead of the curve for all these years, thanks to its constant release of new models and enhancements.
- Formula 1 racing: Scuderia Ferrari has been a leader in Formula 1 racing and is known for its success in Formula 1 racing.
- Expansion of luxury and lifestyle products: The company works together to create a variety of luxury goods and lifestyle category that gives customers the feeling of exclusivity. This is done by supplementing the existing sports cars and thereby enhancing the brand’s image.
Marketing Strategy of Ferrari – BCG Matrix
Ferrari is present in several segments, such as Ferrari Sports Vehicle or Lifestyle products.
The world-famous racing team’s sports cars are unique offerings and technologically advanced. They are also the market leader for luxury car segments in most of its markets. Therefore, they are Stars in the BC matrix.
The company’s exclusive sales of accessories and apparel in lifestyle categories are sold in over 45 stores worldwide. They are also starring in the BCG matrix.
Marketing Strategy of Ferrari – Distribution Strategy
The company’s cars are available for sale through more than 170 dealers and 190+ points of sale.
Ferrari does not have any dealerships. All dealerships located in other countries are chosen based on reputation, financial stability, and track record.
Globally, the company has 226 employees who are part of the commercial team. They are organized in four geographical areas that cover the regional markets (i.e. South Africa and India, (ii. Americas), (iii. Greater China, including The People’s Republic of China and Taiwan,), and (iv. The rest of APAC, which includes the rest of Asia, Oceania, and Oceania).
Marketing Strategy of Ferrari – Brand equity
The Ferrari emblem is a symbol of Italian luxury, design, quality, and performance.
Many Motor shows, rallyings, racing days, and other non-competitive races have been associated with the brand. Ferrari has two museums, one in Maranello and one in Modena. These museums showcase advanced technology as well as future-focused capabilities.
According to Forbes magazine, Ferrari was ranked 8 in the list of the World’s Most Respected Companies (2017). It has a market capitalization of $ 13.589 million and revenue of $ 3.4335 million.
Marketing Strategy of Ferrari – Competitive Analysis
There are very few luxury car producers, which include both large automotive companies and small producers that specialize in luxury cars. Luxury performance car segments include the GT segment and sports car segments.
The Luxury Automotive Market is driven by brand appeal, style, novelty, total ownership, and innovation. Visibility in the market is also important.
Marketing Strategy of Ferrari – Market Analysis
The Luxury Performance Car Market is concentrated with few players. It shares many characteristics with luxury goods like quality, aesthetics, and rarity. This leads to substantially higher pricing.
Many factors influence the luxury market, including urbanization, rising living standards in emerging economies, increasing wealth, and changing macroeconomic conditions.
Marketing Strategy of Ferrari – Customer Analysis
Premium and luxury products are for customers who appreciate the essence of the brand. They also associate themselves with the brand’s persona. Ferrari customers are celebrities who are well-known and wealthy and desire a luxury sports car.
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