Brand Analysis-
Ferrari
EXECUTIVE SUMMARY
Ferrari is known and is highly valued everywhere in the world. From the US to Japan, from Germany and Switzerland to India, to France, Australia, New Zealand, Russia, Brazil and Argentina. THE BRAND
Ferrari is an Italian sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929 as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles in 1947 as Ferrari S.p.A.. Throughout its history, the company has been noted for its continued participation in racing, especially in Formula One, where it has enjoyed great success.
Ferrari Values: Ethics, Initiative, Excellence, Pride of Affiliation.

Ferrari Achievement.

Enzo Ferrari founded Ferrari back in 1943, during WW II. The first Ferrari premises were bombed and heavily damaged.
Enzo Ferrari was not an Engineer, nor he was an enterpreneur. Enzo Ferrari never went to college, not even high school, no PhD, never made and MBA.
Enzo Ferrari was "just" a mechanic at Alfa Romeo, with a strong passion for engines, speed and racing. He was a tough guy, and he had his own ideas on engines and cars.

Ferrari Passion.

The first Ferrari car was the 125 S. It was built in1947. Only 3 of them were produced. None survived to our days, yet a 125 S engine is on display in Galleria Ferrari in Maranello, Ferrari dynamic museum. Galleria Ferrari is the Louvre, the Guggenheim, the Moma of Car Racing. You feel the thrill, an overwhelming excitement and admiration when you are inside. A unique, amazing experience. After the 125 S, the Ferrari 166 came, and the races. Formula 1 was not even existing at that time.
Since the beginning Ferrari was doing both things it still does today: Car Racing and constructing extraordinary sports cars for exacting car and speed lovers. And 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.
Passion has always been the "drive" of Ferrari and its one of the marketing symbol.

As a symbol:

The Ferrari logo consists of a symbol of ‘Prancing Horse’ on a yellow back ground, usually with the letters SF. SF stands for Scuderia Ferrari. The Ferrari logo is well known and well recognized by all and especially the fans of motor car racing. The name of Ferrari and its Logo bring to our mind emotion that we feel about speed and sports cars. In 1940 Enzo Ferrari inherited the prancing horse badge for World War One’s legendary ace of Italian Air Force Count Francesco Baracca.

As an Organization:

Ferrari S.p.A. is an Italian sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929. alleria Ferrari is a Ferrari company museum dedicated to the Ferrari sports car marque. The museum is not purely for cars; also on view are prizes, photographs and other historical objects relating to the Italian motor racing industry. The exhibition also introduces technological innovations, some of which had made the transition from racing cars to road cars.
Scuderia Ferrari is the racing team division of the Ferrari automobile marque.
Ferrari World is a theme park based in the United Arab Emirates in late 2007.
Enzo Ferrari’s maxim: “We have to build as many cars as the demand requires… less one”
Organizations that use this strategy discovered that without a specific target market to design their products around, they are poorly positioned and vulnerable to competitors that adopt a more targeted niche approach.

As a .:

Since 1969 Ferrari has been a subsidiary of Fiat. In terms of production capacity, it is smaller than Porsche, but bigger than Lamborghini and Lotus. Ferrari sales have continued to increase steadily since 1998. All facilities are located in Maranello, including factory, development center, F1 team and the famous test track.

As a Person:
Enzo Anselmo Ferrari( February 18, 1898 – August 14, 1988) was an Italian motor racing driver and entrepreneur, the founder of the Scuderia Ferrari Grand Prix motor racing team.
Alfredo Ferrari born on January 1932 in Modena and died 30 June 1956 in Modena, nicknamed Alfredino or Dino, was an Italian automotive engineer and the son of Enzo Ferrari and his wife, Laura Dominica Gaurello.
Brand Identify Prism
Physical fact:
Red and Yellow
Prancing Horse
A couple of duck
Personality:
Brave
Confident
Relationship:
Inspire people feel successful in his business and full of passion and taste.
Culture:
Italian
Speed
Passion
F1
Reflected Consumer:
Competence:
Reliable, Intelligent, Successful
Sophisticated:
Upper Class, Charming
Self-Image:
Traditional
Luxury
Events

SEGMENTATION
Ferrari divides the total market into small homogeneous groups in order to focus their efforts in selling to these new niches. To do this segmentation, Ferrari considers a group of variables that allows them to divide the market, taking in account the special needs and characteristics that every group has.
The Variables, used by Ferrari, are: Demographics: Age: 35 to 55-60 years Sex: Male Family: Single/Divorced Socio-Economics: High-incomes High-education High-class Personality, motive and lifestyle: Quality Luxury Status In what concerns to Ferraris’ targeting strategy, it is easy to see that it is a brand with a selective public that targets their consumers offering not only a car, but luxury, status and quality. Obviously getting one of these cars is not for everyone, and Ferrari ensures that. The niche, in which they are focusing, is composed by high educated and high income people, mainly men, between 35 and 60 years old, who belong, as well, to high class. Also, there are some exceptional cases of famous people who are invited to buy a Ferrari just as a way of add-value to the brand.

4PS
PRICE:
In fact, the secret of profitability is not to sell a lot, but rather to sell a specific offer to a specific group and, crucially, not to waste time or resources on customers who fall outside the target group.
Prices are not just the means of generating revenues. They also indicate the quality and exclusivity of the product as well as the corporate brand responsible for that product.
PROMOTION
Ferraris promotion is different compared with the others. Since the beginning, the company was doing both things it still does today: Car Racing and constructing extraordinary sports cars for speed lovers.
This has been the marketing strategy of Ferrari. The Passion for speed, the Passion for engines, the Passion for Car Racing. This Passion and excitement goes through to every racing sport lover all around the world, which gives ferrari loyal customers.
No other brand has the allure of the Ferrari Brand.Yet, Ferrari never spent a penny in communications or in advertisement.
The company has a developed market of merchandising. This helps to amplify the brand recognition. For example, Ferrari coorperates with other brands like Lego Racers or Adidas. Moreover, there are some special shops that just offer Ferrari merchandising products; one of those stores is located in Berlin.
Also, the German Formula 1 pilot Michael Schumacher helped the Scuderia Ferrari in the sight of being statistically the most successful F1 team in history. PLACE there are 37 Ferrari concessionaries, that work directly with the rampant horse in Italy. These places are chosen between the best Italian cars showrooms. In these showrooms every single detail (furniture, employees dressing) represents the top quality category that Ferrari embodies, so the image of the place where to buy a top quality sports car has to coincide with the image of the brand.
In Germany, 20 authorized dealerships and one service-point offer the information needed. They have a share of 11% of the Ferrari global sales. PRODUCT LIFE CYCLE
As is a luxury brand car, this company doesn’t need a strong promotion since it is one of the most important teams of F1, which makes it really influential on the consumers.
In the growth phase, Ferrari has always been a successful brand. In this period customers are more attracted by the product, however, if it has a selective public, the brand doesn’t have a massive product extension, it grows little by little.
This stage can be the longest because the company can use a lot of marketing strategies like taking out the market different models of the product or just manufacture a limited edition, which increase the interest of the consumers.

SWOT Analysis
Strengths of Ferrari
Extremely strong brand image.
Products that are a fine combination of beauty and aesthetics combined with unforgettable performance.
The brand has connected to itself an aura of mystique
Is looked upon as a status symbol
Takes on new challenges on a constant basis with a head on attitude.
Innovation and technology are key drivers behind every product.
A very inspired, well taken care of and satisfied work-force who are proud to be attached with the brand. This was further expressed publicly when Ferrari was voted the “Best Place to Work in Europe 2007″.
Weaknesses of Ferrari :
Ferrari’s business model, based around low volumes, removes the possibility of employing certain technological solutions
That same business model also limits their sales volumes even though a lot more demand is present in the market.
Due to their “waiting list” model, they lose out on customers to the competition.
A big challenge lying in wait is fuel efficiency & emissions which are growing in importance everyday, thanks to spreading concerns over the environment.
Opportunities for Ferrari :
Growth in the global market for high-performance super-cars due to growing economies & developing nations.
Expansion of the brand through entering into new & important automotive markets like India wherein competitors like Porsche have already set up base.
Enlargement of customer base (increase appeal of their products to a more variety of buyers) through adding comfort, roominess, luggage space, engines that are more user friendly, and so on, while at the same time maintaining traditional Ferrari characteristics–performance, style, exclusivity. Ferrari has been exploiting this aspect for a while and it has been a key contributor to their success in the past 15 years.
Development of technology (for example interfacing electronics with mechanical systems) has opened up new avenues to explore for their products.
Packaging i.e. the concept of the car, is another area which still has years to explore.
Threats to Ferrari :
Automotive policies being pushed by countries & continents all over the world which are being strictly enforced like the emission norms of 130g/km of CO2 are very difficult to keep up with due to the performance oriented nature of the engines built by Ferrari.
Tough competition from other iconic super car brands like Lamborghini & Porsche
A competing brand like Porsche does not follow the same low volumes, high on exclusivity model which is followed by Ferrari & hence sells a lot more of its products & captures a large chunk of the market share.
Once again, competitors like Lamborghini and Porsche are expanding their product range to high performance SUV’s wherein Porsche has already been very successful with its “Cayenne” model, all over the world and in particular, in India, which has lead to its success in the Indian market. Ferrari has not announced any plans for such a product (high-performance SUV).
BCG MATRIX

As already mentioned before, Ferrari is an outstanding, not usual brand, with a very special marketing strategy and a small group of exclusive costumers.
Therefore, the products don’t conform always to the normal life cycles of a product (s. chapter Product Life Cycle).
The BCG-Matrix is based on the life cycle of a product- consequently an analysis of Ferrari products and creating following strategies by using the BCG-model could be problematic. Furthermore, the importance of the dimension of the market growth rate is questionable in the small market of luxurious super-sports cars, in which Ferrari compete.
On the other hand, for Ferrari the (relative) market share is an important indicator; this is the second dimension of the BCG-Matrix.
Actually it is quite difficult to get free information about the Ferrari products. So it is not possible trying to create a Ferrari portfolio analysis here or showing some cash cows, stars, question marks or poor dogs. Ferrari should have some cash cows, products with a high market share and low market growth. Those are the fundamental products because you don’t have to invest in them and they give you much money. This money should be used for your question marks or stars that need much money in the phase of becoming a cash cow.
But let’s put give an example of a Ferrari product that doesn’t fit with the BCG-analysis model and outlines the special position of Ferrari:
When Ferrari wanted to build the “_Enzo_”, they set a limitation of 345 cars. These were sold before they were produced. Moreover, the demand was that strong that Ferrari decided to sell 399 cars (later the 400th car was produced for a fundraiser). You see, there is no development of the product, all Enzos were sold at once and Ferrari earned much money with them. But, according to the definition of a cash cow, the Enzo can’t be called as one, as well as a question mark, star or poor dog. Maybe the Enzo matches a poor dog soonest because with an amount of 400 cars there is no high market share and, also, the market of such a super-sports car is very small. Moreover, a poor dog can bring you much money. And don’t forget the big marketing influence which the Enzo has on the luxurious image of Ferrari.
In addition, here is shown Ferraris outstanding position- not anybody could buy a Ferrari Enzo, you would be asked whether you want to buy one.
General Electric (GE) Matrix:
GE Matrix overcomes a number of the disadvantages of the BCG Box. Firstly, market attractiveness replaces market growth as the dimension of industry attractiveness, and includes a broader range of factors other than just the market growth rate. Secondly, competitive strength replaces market share as the dimension by which the competitive position of each SBU is assessed.
As Ferrari does not have any strategic business units (SBU’s), General Electric matrix cannot be implemented.

MARKETING ACTIVIES: Factory tour:
Take an exciting trip through time and space. Discover the history of the legend and the technology used in the cars from Ferrari, take a look behind the scenes of the team, which won the most titles in the history of Formula 1: the Scuderia Ferrari Marlboro.
Ferrari Magazines:
It is a magazine for Ferrari lovers and owners. And also share some lifestyles to the leisure-class

Owners Club
The Clubs are officially recognised and coordinated by the Commercial and Brand Department Ferrari and are made up of around 13,000 members in over 30 nations, who are the main players with their cars during numerous events: Rallies, Concours d’Elegance, Track Days, Regularity Races, Gala Dinners and Charity Events.
Apps
Season Review 2012
A book to be collected to remember another exciting season of the Scuderia, the most successful team in the history of Formula 1.

The Official Ferrari Magazine
For iPad and Android tabletFerraris, arts, culture, fashion, lifestyle: the entire world of Ferrari lovers at your fingertips
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Ferrari Sound
A virtual garage exclusively with cars from FerrariA completely new interactive experience enabling you to “drive” your dream Ferrari