Founded in 1947 by Enzo Ferrari, the Italian masterpiece has been known for its world-class Sports Car Manufacturing. It is one of the world’s leading luxury brand focused on advanced engineering, sleek design. The brand symbolizes innovation, Italian design and engineering heritage, exclusivity, and state-of-the-art sporting performance.
The company is closely associated with Formula 1 racing team, Scuderia Ferrari. Since 1950 the team have won 224 Grand Prix races, 16 Constructor World titles, and 15 Drivers’ World titles.
Ferrari design and produce the cars in Maranello, Italy, and sell it in more than 60 markets globally.
Segmentation, targeting, positioning in the Marketing strategy of Ferrari–
Segmentation helps the brand in understanding the packet of offerings, features which will be suitable for the particular set of customers. Ferrari uses demographic and psychographic segmentation strategies.
Ferrari uses selective targeting since the company doesn’t want everyone to own the brand and so, therefore, it does a background check and its target customers are the famous personalities, celebrities globally.
The brand has positioned itself as luxury sports car Maker Company closely associated with some of the renowned racing events worldwide. The brand uses value-based positioned strategy to give its owners a sense of pride in owning the masterpiece.
Mission – “To build cars, symbols of Italian excellence the world over, and do so to win on both road and track.”
Vision- “Italian Excellence that makes the world dream”
Tagline-“ Driven by Emotion”
Competitive advantage in the Marketing strategy of Ferrari–
1. Controlled growth emerging as well as developed nations: Company uses low volume production strategy, which helps it in maintaining the exclusivity while keeping in mind the changing consumer dynamics and geographical socio0economic changes.
2. New Models & enhancements on regular basis: Launching at least a new model every year along with periodically designing and launching limited edition cars suiting to the client’s appetite and personalization has helped the company in being ahead in all these years since its inception.
3. Formula 1 racing: The Company has been known for the success in Formula 1racing through Scuderia Ferrari, the most successful team in Formula 1 history which has positioned itself as a premier racing team in Formula 1.
4. Expansion in luxury and lifestyle categories: The company is working together to expand and create a range of luxury goods and lifestyle categories which gives the customers the feeling of exclusivity through supplementing it along with the sports cars aimed at enhancing the brand image.
BCG Matrix in the Marketing strategy of Ferrari-
The Ferrari operates in segments such as Ferrari Sports Vehicle and Lifestyle products.
Since the sports vehicles of the world-famous racing company are exclusive offerings, technologically advanced and are the market leader in luxury car segment in most of the market it operates, therefore, it is Stars in the BCG matrix.
In the lifestyle categories, the apparel and accessories exclusively sold by the company in more than 45 retail stores globally and are stars in the BCG matrix.
Distribution strategy in the Marketing strategy of Ferrari–
The cars of the company are sold from more than 170 dealers operating through 190+ point of sale.
Ferrari does not own any dealerships and all the dealerships based out in different countries are selected based on strict scrutiny and reputation, financial solidity and track record of the dealer.
Globally the company have 226 employees as part of the commercial team organized in four geographic areas covering the regional markets (i) South Africa and India, (ii) Americas, (iii) Greater China including The People’s Republic of China, Taiwan, and Hong Kong), and (iv) Rest of APAC (which includes the rest of Asia and Oceania).
Brand equity in the Marketing strategy of Ferrari–
The iconic Ferrari logo with symbolizes Italian luxury, design and quality, exclusivity and performance.
The brand has been associated with various Motor shows, driving courses, rallies, Racing Days and non-competitive races. Ferrari has two museums one at Maranello and the other one at Modena which showcases the advanced technology and future-focused capabilities of the brand.
In the Forbes magazine list of The World’s Top Regarded Companies (2017) brand Ferrari has been ranked 8th with the market capitalization of $ 13, 589 million and revenue of $ 3,435 million.
Competitive analysis in the Marketing strategy of Ferrari-
Since there is the very small number of producers in the Luxury Car segment including both large automotive companies as well as small producers exclusively focused on luxury cars. The luxury performance car market includes GT segment and sports car segment.
In the Luxury automotive market, the Competition is driven by the appeal of the brand, styling, novelty, total cost of ownership, innovation, brand’s association with the customers, and visibility in the market.
Market analysis in the Marketing strategy of Ferrari-
The Market of the Luxury performance cars is concentrated to few players which share several characteristics with other luxury goods such as quality, aesthetics, rarity, exclusivity and a high degree of non-functional associations all of which leads to significantly higher pricing.
The luxury market is affected by several factors such as urbanization, rising standard of living in the emerging economies, increasing affluent class, changing macroeconomic conditions.
Customer analysis in the Marketing strategy of Ferrari–
The premium and luxury products are targeted to the customers who value the essence of the brand and associate themselves with the persona of the brand. The customers of the brand Ferrari are super rich and well-known personalities of the world who themselves are the celebrities and want to have some exclusive luxury sports car