3. Ferrari History
• Originally founded in 1929 as Scuderia Ferrari
• Founded: Maranello, Italy by Enzo Ferrari
• Began by sponsoring & manufacturing race cars
only
• 1947- production of street legal vehicles begins
4. Scuderia Ferrari
• Racing division of Ferrari motorsports
• Historically involved in many divisions,
currently only in Formula One
• Only team to continuously compete in
Formula One World Championship since 1950
5. Corporate Affairs & Partnerships
• Internally managed merchandise line
- eyewear, clothing, cologne, watches, etc.
• Museum: Galleria Ferrari in Maranello
- In-depth company history for enthusiasts
• Technical partnership with Shell Oil
- Testing & supplying fuel & oil for racing teams
6.
7. Ferrari Products
125 S- 1st Ferrari sports car
250 GTO
Ferrari 375 America
Ferrari 360 & F355 Spider
458 Italia (2010)
Ferrari California
11. Fiat Distribution Management
• The distribution in Italy is currently fully
carried out by road
• International
– Sea, Air
International Marketing
Chapter 13
12. Ferrari Distribution/Sales
34%
15%15%
13%
6%
6% 6%
2% 2% 1% Sales
US & Canada
Germany
Italy
UK
France
Switzerland
Japan
China
Australia
Russia
6,400 sold in 2007 with 88% of production
exported
Year Units Sold
2000 4070
2001 4290
2002 4240
2003 4240
2004 4850
2005 5400
2006 5600
2007 6400
Export pricing strategy
Chapter 11
13. Export Marketing Mix
• Skimming, market, penetration pricing
insignificant
• Ferrari Insensitive to pricing as are the “rich”
consumers
– Safest way is all that matters.
• Ferrari works directly with specific dealers in
other countries Export pricing
strategy
Chapter 11
14. Gray Ferrari Background
• Ferrari sells a limited number of cars in U.S.
each year
• To avoid wait list, buyers import Ferrari’s
through gray market Registered Imports
• Gray market goods are manufactured abroad
and imported into U.S. without trademark
holders consent
15. Gray Ferrari Background
• Imported vehicles must meet importation
guidelines & conform with North American
standards
• Importing can mean savings of 30%-40%
• Concerns about safety & company reputation
led to Ferrari challenging this market in 2001
16. Gray Ferrari Background
• National Highway Traffic Safety Administration issued
decision on issue (April 10, 2002)
• “This notice announces the decision by the NHTSA that
2001 Ferrari 360 passenger cars not originally
manufactured to comply with all applicable Federal motor
vehicle safety standards are eligible for importation into the
United States because they are substantially similar to
vehicle manufactured for importation into and sale in the
United States and certified by their manufacturer as
complying with the safety standards, and are capable of
being readily altered to conform to the standards.”
22. Problem Statement
• Ferrari must find new and creative ways to
expand their brand without risking their
reputation.
23. • Brand expansion through entry into new & important
auto markets (India, etc.)
• Enlarge customer base to a wider variety through
product adaptations (space, comfort, user-friendly
engines, etc.)
• Create technological innovations that address
environmental concerns (fuel efficiency & emissions)
• Increase vehicle offerings within America
Alternative Solutions
24. Brand Expansion/New Markets
• Expansion into new and important auto
markets will raise brand recognition
• Take advantage of booming auto markets in
certain countries (India)
• Keep up with competition
(Porsche has already begun this process)
25. Entry into New Markets
• Example : India
• Competitor presence
• Risk Rating: A4
• Ease of Doing Business : 122/181
– Country in bad financial position
– Niche Position of Ferrari
27. Enlarge Customer Base With Product
Expansion
• Begin developing larger luxury vehicles that
attract a new type of consumer
• Add comfort, roominess, luggage space
• Maintain traditional Ferrari
characteristics/styling
28. Technological Innovations
• Social standards require modern companies
adapt to environmental needs
• Develop technologies focused on reducing
fuel efficiency & emissions (hybrids?)
• Helps brand credibility & shows social
responsibility
29. Increased Offerings
• Volume increases in U.S. offerings would help
attack gray market
• Could spark American interest in Ferrari,
reduce wait times, & change perceptions
• May “cheapen” the brand or lessen the
prestige of Ferrari – (Grey Ferrari Case)
30. Analysis of Alternative Solutions
Costs
20%
Sustainability
30%
Positive Impact
on Reputation
30%
Risk
20%
Total
100%
Entry into new Auto
Markets 2(.4) 4(.8) 4(1.2) 1(.2) 2.6
Enlargement of
Customer Base 2(.6) 5(1.5) 4(1.2) 3(.6) 3.9
Technologically
“Green” 4(.8) 2(.6) 3(.9) 4(.8) 3.1
Increase Volume of
Ferraris for sale 2(.4) 3(.9) 1(.9) 3(.6) 2.8
Scale 1-5
5 being lowest risk, highest + impact on reputation, longest
sustainability, and lowest costs
31. Recommended Solution
Enlarge Customer Base With Product Expansion
& Incorporate Hybrid Technologies
• Explore expansion into SUV & larger vehicle markets
• Extensive R&D to determine best fit
• Maintain stylish, luxury look while creating:
- More space, durability, luggage room, etc.
• Explore Hybrid technologies to increase interest from
environmentally savvy consumers
32. Implementation
• Sport Utility Vehicle
– Targeting New Market Segment
• Weather
– Competing with Porsche and BMW
• Luxury Vehicle (Hybrid)
– 5 Passenger
– Compete with Mercedes and BMW
– Opens completely new market
• Family
• Weather
33. Implementation
• Multiple Variations
– Cheaper than designing multiple vehicles
• Platform
• General Motors
– Allows for buyer selection/customization
• Race Version
• Sport Version
• Luxury Version
34. Implementation Schedule
• Year 1 – Introduce Hybrid / SUV at auto shows
• Year 2 – Continue to promote Hybrid / SUVS
• Year 3 - Produce and Distribute new products
to appeal to a diversified, yet very thin
market.
36. Communication Process
– Receiver then gives feedback to sender.
– Ferrari must effectively communicate in order to continue to
be successful.
Chapter 11
37. What has Happened?
• May officially enter India Market in 2010
• Continuing worldwide expansion
• Introduced Hybrid HY-KERS at 2010 Geneva Auto Show
• According to multiple sources, A Ferrari SUV is on it’s
way for 2010-2011
• market.
39. Social Media
• Twitter - @InsideFerrari
– Scuderia Ferrari: Racing Team
• Ferrari.com Forum
• Driver and Staff Blogs
• Facebook
• Ferrari Owner’s Clubs
40. Social Media Recommendations
• Start promotional giveaways online
– Clothing
– Accessories
• Advertise SUV Concept to the larger customer
base via Twitter, FB, Forums.
• Continued expansion of Owner’s Clubs
