Enzo Ferrari and Luigi ChinettiRacecar driver for Alpha Romeo in1930sFounded Ferrari with Luigi Chinetti in1946Enzo was the soul and Luigi was thebrains behind the businessEurope was recovering from WWII soFerrari focused on the United States1948 – First production Ferrari166M Barchetta
The Quintessential Ferrari – 275Introduced in 1964First road car to be suitable for racingBirth of the Grand Tourismo (GT) ClassHelped build Ferrari’s reputation
One of the Greatest Cars Ever MadeFerrari F40 40th Anniversary Ferrari (1987-1992)Enzo Ferrari’s last car MSRP: $250,000Twin Turbo V8 First Production Car Capable of 200 mph
Management of Service/ManufacturingMaranello, Italy7000 cars built per yearLarge proportion built in houseMachine/Casting Shop3,000 workersOne person per engineWorking environmentLinking creativity to qualityMany facilitiesVisionary planning
Ferrari’s EthicsPrecision Quality ExclusivityTrue Enthusiast Racing Heritage Giving Back
Swot AnalysisStrengths of Ferrari:• Extremely strong brand image.• Products that are a fine combination of beauty & aestheticscombined 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 onattitude.• Innovation & technology are key drivers behind every product.• A very inspired, well taken care of & satisfied work-force who areproud to be attached with the brand. This was further expressedpublicly when Ferrari was voted the “Best Place to Work inEurope 2007″.
Swot AnalysisWeaknesses of Ferrari:• Ferrari’s business model, based around low volumes, removes thepossibility of employing certain technological solutions.• That same business model also limits their sales volumes even though alot more demand is present in the market.• Due to their “waiting list” model, they lose out on customers to thecompetition.• A big challenge lying in wait is fuel efficiency & emissions which aregrowing in importance every day, thanks to spreading concerns overthe environment.
Swot AnalysisOpportunities Ferrari:• Growth in the global market for high-performance super-cars due to growingeconomies & developing nations.• Expansion of the brand through entering into new & important automotivemarkets like India wherein competitors like Porsche have already set up base.• Enlargement of customer base (increase appeal of their products to a morevariety of buyers) through adding comfort, roominess, luggage space,engines that are more user friendly, and so on, while at the same timemaintaining traditional Ferrari characteristics–performance, style, exclusivity.Ferrari has been exploiting this aspect for a while & it has been a keycontributor to their success in the past 15 years.• Development of technology (for example interfacing electronics withmechanical systems) has opened up new avenues to explore for theirproducts.• Packaging i.e. the concept of the car, is another area which still has years toexplore.
Swot AnalysisThreats of Ferrari:• Automotive policies being pushed by countries & continents all over theworld which are being strictly enforced like the emission norms of 130g/kmof CO2 are very difficult to keep up with due to the performance orientednature 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, highon exclusivity model which is followed by Ferrari & hence sells a lot more ofits products & captures a large chunk of the market share.• Once again, competitors like Lamborghini & Porsche are expanding theirproduct range to high performance SUV’s wherein Porsche has already beenvery successful with its “Cayenne” model, all over the world & in particular,in India, which has led to its success in the Indian market. Ferrari has notannounced any plans for such a product (high-performance SUV) as of yet.
ProductsFerrari has developed a very wide range of product line over the years and many variants onthose lines.These product lines can be broadly divided into two major segments namely:1) Sports cars2) Road Cars
ProductsCurrent Sports Car:2012 Ferrari F20122012 458 Italia Grand AM2011 599XX Evo2011 458 Italia GTC2011 458 Italia GT32011 Ferrari 458 Italia Challenge2009 599XX2009 F430 Scuderia GT32008 FXX Evoluzione2007 F430 GT32006 F430 GTC2005 FXX
ProductsCurrent Road Models
Product DevelopmentTechnology and InnovationEach Car Customized / Tailor mademore than 65000 combination of interior available to choose
Product DevelopmentOne of ProgramCar will have exterior design as per the customer.
PricingHigh quality High priceMaximum profitLow volume (only 7000 vehicle overall and 550+ in middle east,2011)Entry level car- 750,000 DHSUpto 20000000 DHS
Promotional Strategy• "Ferrari does not have to advertisebecause the sports pages in the localnewspapers do it for him.” – HenryFord• Promotion through merchandising• Strong Brand Presence throughoutthe world• Co-branding exercise with variouswell known brands such as Puma,Acer, Mattel, Marcolin• Brand values – Exclusivity,Customizability, Luxury, F1Experience
Official Ferrari Magazine• Started by Enzo Ferrari in 1930s• Started by recounting special memoriesof each season• Intimate glimpse into the stories that arenot revealed to the regular media• Exclusivity- It is reserved for Ferrariclients in the first three years ofownership and for those awaiting deliveryof their cars
Ferrari Owner’s Club, U.A.E.• Founded in 2008 March by the owners themselves• Projects the passion of its owners for their cars• 80 members were enrolled in the first 8 months.This number is increasing rapidly
Ferrari Store - Online• Extremely simple and swift way topurchase Ferrari products likeshoes, jackets and other apparels• Stores are also famous for theirexclusive Ferrari collectibles• Ferrari has collaborated withsome of the big names likePuma, the Danish Lego Co.,Acer, etc• Apart from shopping, customerscan also test the Ferrari VirtualRace, read the Forum and Blogand lot more
Ferrari Store - Physical• Physical presence in Abu Dhabiand Dubai – the key targetmarkets• Stores created in crowdedupscale malls to ensuremaximum visibility• Merchandising to strengthenBrand Equity
Ferrari World Abu DhabiTool for Brand Promotion• World’s first Ferrari theme park• Located at Yas Island, Abu Dhabi(UAE’s Capital)• Its iconic sleek red roof, inspiredby the classic double curve sideprofile of the Ferrari GT body,spans 200,000 SQM, carrying thelargest Ferrari logo ever created• Ferrari played an active part in itsdevelopment, owned by AbuDhabi government
Ferrari World Abu DhabiTool for Brand Promotion• It hosts 20 plus Ferrari themedrides and attractions• Target audience – Families, fansand enthusiasts• Key attractions: Galleria Ferrari,Formula Rossa, Viaggio in Italia,Junior Grand Prix, RacingLegends• Guests can purchasemerchandise from several retailoutlets throughout the parkincluding the largest Ferrari storein the world• Italian dining experience
Indirect Advertising : Social Media
Lamborghini – Cafés• Tonino Lamborghini has partnered withRetailcorp in UAE and has recentlyopened two outlets – one near DubaiMall and the other within the KhalidiyaMall in Abu Dhabi• This kind of venture has not beeninitiated by Ferrari
Lamborghini – Online Store• Collectibles cannot becompared to the variety offeredby Ferrari• It has associations with some ofthe top luxury brands like TagHeuer, Versace, etc• The payment can be made onlyin Euros or Dollars• They give discounts to theircustomers, a practice notfollowed by FerrariLamborghini – Online Store
La Vita Lamborghini• Italian for Lamborghini Life• The official quarterly magazine ofLamborghini Club America, the largestLamborghini owner’s club in the World• The owners in the U.A.E can only have theonline version and not the physical copy,which is not in the case of Ferrari• Lamborghini Owners Club: Unlike theFerrari owners, Lamborghini owners haveno official club formed yetLamborghini – Online Store
Lamborghini – Print AdsLamborghini – Online Store
Lamborghini – Print AdsLamborghini – Online Store
Ferrari V/S Lamborghini: PositioningFerrari LamborghiniLogo – Cavallino Rampante Logo – Raging BullRed color : Brand Recognition Various colorsAssociation with Formula Onebiggest assetNo valuable associationNo need for Advertising Print and video adsTarget Customer: Car Lover Target Customer: Young, speedloverTarget customer age: 20-45 Target customer age: 20-30Ferrari World Abu Dhabi –Unique Ferrari Theme ParkAssociated with Disney World
Distribution• One of the four element of marketing mix• Distribution is the process of making a product or service available for use or consumption bya consumer or business user, using direct/indirect means with intermediaries• 3 Types : Intensive, Selective and Exclusive
Distribution of Ferrari• Ferrari has level-2 channel Distribution : 2 Intermediaries in between i.e. Regional Office andDealer/Distributor• Ferrari uses the Exclusive distribution strategy• Waiting time is 18 months for delivery of Ferrari after down payment.
Distribution of Ferrari• Ferrari has divided the entire globe in 6 different regions• Ferrari North America, Ferrari North Europe, Ferrari South West Europe, Ferrari Central andEast Europe, Ferrari Asia Pacific and China, Ferrari Middle East & Africa• Each having its central office called the “Regional Office”• Under these offices are a number of “Dealers / Distributors” in different countries in whichFerrari operates.
Distribution of Ferrari (Middle East & Africa )• UAE falls in the region “Middle East & Africa”, having its regional office situated in Internet &Media Free Zone, Dubai”• This office is responsible for services and support to its authorized dealer network regardingSales and After-Sales, Customer Service, PR and Marketing activities• Nine Markets: Bahrain, Egypt, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, South-Africa,UAE.
Distribution of Ferrari (Middle East & Africa )• A total of 12 dealerships are representing the brand in the Middle East &Africa region– Bahrain: 1 official dealership in Manama– Egypt: 1 official dealership in Cairo– Kuwait: 1 official dealership in Kuwait City– Lebanon: 1 official dealership in Beirut– Oman: 1 official dealership in Muscat– Qatar: 1 official dealership in Doha– Saudi Arabia: 2 official dealerships in Riyadh & Jeddah– South Africa: 2 official dealerships in Johannesburg & Cape Town– UAE: 2 official dealerships in Dubai and Abu Dhabi
Distribution in Dubai• In Dubai, the distributor of Ferrari is Al Tayer Motors LLC (Sheikh ZayedRoad, Dubai )• Al Tayer Motors was established in 1982 and represents major European and American automobilemanufacturers across the UAE.•• Al Tayer Motors has represented Ferrari in the UAE since 1988 and has won numerous awards overthe years for sales and after-sales activities.•• The dealership most recently won Best CSI Aftersales of the Year from Ferrari Middle East & Africa andBest Video for the year 2011. Previously, it has won the Importer of the Year award for Middle East &Africa for 2010 and 2008.
Distribution of Lamborghini• In Contrast to Ferrari, Lamborghini has divided the entire globe in 3 different regions• America, Asia Pacific and [Europe, Middle East, Africa].• UAE falls in the region “Europe, Middle East & Africa”• This region has the authorized dealer network regarding Sales and After-Salesactivities in the 29 markets
Distribution of Lamborghini• In UAE, Lamborghini has 1 distributor having its outlet in Abu Dhabi andDubai. The distributor is Al Jaziri Motors LLC• Since 1985 the Al Jaziri family maintains the exclusive dealers forLamborghini• The main branch is located in Business Avenue building near the DubaiInternational Airport• The showrooms are based in Dubai and Abu Dhabi and a service centre isbased in Al Quoz, Dubai.