Ferrari

Dont Sell the Most, Sell the Best

Group 2
Chintan Udawat - 11

Chirag Maniar
Ekta Bhandari Jitesh Rungta Krishna Gupta Rajeev Gupta Rashmi Shukla Upasana Bhagwati

- 13
- 15 - 20 - 21 - 35 - 36 -48

Vinit Naik
Sumanto Maitra

- 51
- 55

Birth of an Icon
Enzo Ferrari founded Ferrari back in 1943, during WW II. He witnessed racing in Italy when his Dad took him to see a race in 1908 1929 Ferrari formed his own racing team, Scuderia Ferrari in Maranello, Italy Began by sponsoring and manufacturing race cars only The first Ferrari premises were bombed and heavily damaged. 1947 - Production of street legal vehicles to sponsor racing Scuderai Ferrari: Only team to continuously compete in F1 since 1950

Ferrari is a myth and a legend in the automotive industry. Unique worldwide success.

Sales Details
US and Canada Germany Italy UK France Switzerland Japan China Australia Russia

28% 12% 12% 11% 5% 5% 5% 2% 2% 1%

Value Proposition
Functional Speed Performance F1 technology Emotional Thrill & adventure Freedom Style Status Economic Highly Expensive

Identity Red Color Prancing Horse, Logo F1 Michael Schumacher True Sports car Shape - aerodynamic Position Cars for Racing Enthusiasts Toys for kids of ellite families Theme Park for families Merchandise for fan followers

Image Speed Performance Car Racing Innovation Technology Perception Exclusive Glamour Racing Heritage

Identity Execution
Logo Prancing Horse on a yellow back ground, usually with the letters SF
Inherited from WWIs legendary ace of Italian Air Force Count Francesco Baracca. Baracca had notched up 35 enemy hits before crashing to his death.
Red color Men raced in national color cars. Car Racing Sponsoring races even before F1 Galleria Ferrari Museum with in-depth company history for enthusiasts. Collects cars, images and trophies of Ferrari's victory all over the world.

Identity Execution
Social Media Twitter- @InsideFerrari, Ferrari.com Forum, Driver and staff blogs Facebook, Ferrari Owner's club Mobile Zone: Ferraris tie-up with Vodafone. Ferrari and Formula 1 wallpapers, games and video clips on mobile Ferrari world Theme park in Abu Dhabi 24 rides Fastest roller coaster in world. Hall of fame. virtual Ferrari simulations racetrack for driving lessons

Identity Execution
Licensing and Retailing Ferrari Retail stores: 37 premium outlets Italy, Europe, Abu Dhabi, Singapore, New York Next 2 years target: total 60 stores In Shanghai, a local Ferrari store sold more than $100,000 worth of merchandise in a single day Premium merchandise Our merchandise is always a little bit above, for instance, Manchester United Toy market: brand building through young children. each year selling more than 25mn pieces Luxury Market: Leather products Ferrari licensees: Puma, Acer, Vertu Mobile Phones

Brand Positioning
Segment Sports Car Toys Target Market Sports enthusiast, speed lovers, upper class, Avg age 45 for car owner 8 - 12 years kids of rich family (catch them young) Consumer Behaviour Aspirational, Elite, Price-insensitive, Looking for speed-technology-looks Competition Class apart with ardent followers. Porsche, Lamborghini, Aston Martin, BMW, Merc, Audi, Jaguar PoP Speed, Aerodynamics PoD Red colour, Prancing horse, Schumaker, F1, F1 inspired technology in road cars, Licensed Products

Position Super premium, Elite, Hi-tech

Perceptual Map
Price High Lamborghini Bugati Ferrari F1

Aston Martin Ferrari Merc Porche

Low Jaguar Audi / BMW San STORM

Macleran

High

Performance

Nissan

Low

Brand Architecture
Ferrari as a Branded House

Corporate Brand Ferrari

Sub Brands Scuderia Ferrari Ferrari Store Ferrari Magazine Accessories

Product Brands F1 cars Sports Cars - Enzo Ferrari, Spider, Italia, California, Aperta, GTO, GTB Fiorano 4-Door - FF
Licensed Brands Acer, Puma, Vertu mobiles

Co-brands (ingredient brands): Shell oil Micheline Bridgestone Marlboro (earlier)

Kellers Consumer Based Brand Equity Model

Kellers Brand Equity Pyramid

Who are you? (Brand identity) Salience: 100% Category Identification: Sports Car What are you? (Brand meaning)

Performance: Primary : Sports, acceleration, speed Secondary: Exhaust sound Reliability: Proven performance history Style and Design: Color, Shape, Aerodynamic design Price: High priced Service: 7 year maintenance program, end-of-life redemption PoP: Aerodynamics, Speed inspired technology in eg: Puma

Imagery: User profiles: High net worth individuals, Men, Challengers Usage situations: Racing, F1, High speed driving Personality: Aspirational, Daring, Reliable, Upper Class History: Longest heritage of 60 years Brand association: Driving performance, Racing, Speed, Glamour, Success

PoD: Red color, Prancing horse, Schumacher, F1, F1 road cars, Licensed products

Kellers Brand Equity Pyramid

What do I feel about you? (Brand Responses) Judgments: Feelings: Quality: Excellent performance Fun, Thrill, Exciting, Status symbol High satisfaction Credibility: Very high, Innovation, History Consideration: Very High Superiority: Highly superior due to proven history

What kind of associations and how much of a connection would I like to have with you? (Brand relationships) Resonance: Loyalty: Very High Attachment: Customers feel proud of it 70% resonance: More technical/performance oriented and High emotional attachment

Kapferers Brand Identity Prism

Externalization
Physique: (basis of the brand)

Internalization

Aerodynamics Design, Red colour, Prancing horse, Technology

Personality: (what happens to the brand when it becomes a person?)

Unique, Challenger, Speed Loving, Innovator

Relationship: (handshake between consumer and organization)

F1, Sports

Culture: (Values, origin)

Long heritage of more than 60 years

Reflection: (consumer's perception of what brand stands for)

Adventurous, Sporty, Upper Class

Self image: (what the consumer thinks of himself)

"I love speed, thrill and challenges, And I can spend any amount of money to get them"

Brand Management Strategies through Life Cycle

Maturity stage: Marketing program modificationMarket ModificationProduct modificationNew models (enzo ferrari, FF) Technology innovation Ferrari stores (target 60 from 37 in next 2 Toys for kids years) (8-12 years) Abu Dhabi Merchandise and theme park for licensed products families

Growth stage: Launching road cars to generate revenues for racing events Intro Stage: Sports Cars Challenger to Alfa Romeo Passion for race cars Most wins in racings Popularity & strong recall Continious evolution of racing cars Innovation (e.g. fastest gear shift, spoiler) Publicity through Word of mouth & fan clubs No exclusive marketing, no ads

Brand Portfolio Matrix

Competitive Position Strong High Market Attractiveness F1 Cars Medium Race Cars (Porche, Merc, Jaguar) Merchandise & shoes Laptops (Acer), Mobiles (Ventu) Weak

Medium Low

Toys

Learning
PASSION !!!
Enzo Ferrari was not an Engineer, nor was he an entrepreneur. He never went to college, not even high school, no PhD, never made an MBA. Enzo Ferrari was just a mechanic at Alfa Romeo, with a strong passion for engines, speed and racing. Passion has always been the drive of Ferrari. And its only marketing tool. This Passion and excitement goes through in each Ferrari 360 Modena, in each Ferrari Enzo, in each 575 Maranello, in each F430 you drive or simply encounter in the streets. Winning races, losing races, fiercely fighting in car racing has built the brand.

References
http://www.ferrari.com

http://www.vertygoteam.com/ferrari_marketing_strategy.php
http://www.brandchannel.com/features_webwatch.asp?ww_id=279 http://www.sosemarketing.com/2010/05/25/luxury-marketing-%E2%80%93-theferrari-marketing-strategy-is-passion-for-speed-engines-racing-design/ http://ranson.co/blog/branding-blog/a-short-history-of-brand-marques/a-shorthistory-of-brand-marques-ferrari

http://www.livingthebrand.org/USER/Ferrari_.html?CompID=2&pageId=18&com ponentContentID=5
http://marketingobserver.wordpress.com/2010/10/27/acer-ferrari-branding-thesmartphone/

Thank You