Final ferrari

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Final ferrari

  1. 1. http://www.youtube.com/watch?v=cUkL8mze1WM&feature=player_embedded
  2. 2. From founder Enzo Ferrari to current chairman Luca di Montezemolo.
  3. 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. 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. 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. 6. Ferrari Products 250 GTO 125 S- 1st Ferrari sports car Ferrari 375 America 458 Italia (2010) Ferrari California Ferrari 360 & F355 Spider
  7. 7. The Ferrari Store
  8. 8. The Ferrari Factory - 45 Buildings - 3,000 workers -Maranello, Italy -Passion, Innovation, Technology www.ferrari.com
  9. 9. Logistics International Marketing Chapter 16
  10. 10. Fiat Distribution Management The distribution in Italy is currently fully carried out by road International Sea, Air International Marketing Chapter 13
  11. 11. Ferrari Distribution/Sales YearUnits Sold 2000 4070 2001 4290 2002 4240 2003 4240 2004 4850 2005 5400 2006 5600 2007 6400 6,400 sold in 2007 with 88% of production exported Export pricing strategy Chapter 11
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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.”
  16. 16. International Marketing Chapter 13
  17. 17. Strengths Loyal Customers Strong Brand Reputation, Image Strong financial position Unique products “Don’t sell the most, sell the best”
  18. 18. Weaknesses Cost of products $200k - $12Million Timeliness(2-3 year wait list) Lose out on customers 18 month wait list Low Volumes
  19. 19. Opportunities Technological Innovations Enlargement of Customer Base Brand Expansion Global Market Growth
  20. 20. Threats Economic Slowdown/Recession Competition Offers Higher Volumes/Stiff Competition Ex: Porsche, Lamborghini Automotive Policies Strictly Enforced Worldwide
  21. 21. Problem Statement Ferrari must find new and creative ways to expand their brand without risking their reputation.
  22. 22. 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
  23. 23. 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)
  24. 24. 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
  25. 25. Hofstede’s Dimensions Power Distance – High level of inequality of power and wealth
  26. 26. 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
  27. 27. 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
  28. 28. 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)
  29. 29. Analysis of Alternative Solutions Scale 1-5 5 being lowest risk, highest + impact on reputation, longest sustainability, and lowest costs
  30. 30. 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
  31. 31. 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
  32. 32. Implementation Multiple Variations Cheaper than designing multiple vehicles Platform General Motors Allows for buyer selection/customization Race Version Sport Version Luxury Version
  33. 33. 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.
  34. 34. Implementation Concerns Cost How sports car enthusiasts will react Damaging reputation Lack of interest Economy $
  35. 35. Communication Process Receiver then gives feedback to sender. Ferrari must effectively communicate in order to continue to be successful. Chapter 11
  36. 36. 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.
  37. 37. What has Happened?
  38. 38. Social Media Twitter - @InsideFerrari Scuderia Ferrari: Racing Team Ferrari.com Forum Driver and Staff Blogs Facebook Ferrari Owner’s Clubs
  39. 39. 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
  40. 40. Sources http://www.insideline.com/ferrari/ferrari-may-enter-india-officially-in-2010.html www.ferrari.com http://www.ferraricalifornia.com/webapp/ http://www.ferrariclubofamerica.org/ http://www.autoblog.com/category/ferrari/ http://www.shell.com/home/Framework?siteId=ferrari-en http://www.wikiswot.com/SWOT/4_User_Generated/Ferrari.html http://www.youtube.com/watch?v=cUkL8mze1WM&feature=player_embedded http://uk.eurosport.yahoo.com/formula-1/ferrari.html
  41. 41. Any Questions?

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