Section BGroup 3

Kunal Jain [054]Kushagra Sharma [057]Pavan Daxini [078]Prodyot Parashar [083]Raj Kumar Singh [089]

Enzo Ferrari and Luigi Chinetti

Racecar driver for Alpha Romeo in 1930s

Founded Ferrari with Luigi Chinetti in 1946

Enzo was the soul and Luigi was the brains behind the business

Europe was recovering from WWII so Ferrari focused on the United States

1948 – First production Ferrari 166M Barchetta

The Quintessential Ferrari – 275

Introduced in 1964

First road car to be suitable for racing

Birth of the Grand Tourismo (GT) Class

Helped build Ferrari’s reputation

One of the Greatest Cars Ever Made

Ferrari F40 40th Anniversary Ferrari (1987-1992)

Enzo Ferrari’s last car MSRP: $250,000

Twin Turbo V8 First Production Car Capable of 200 mph

Management of Service/Manufacturing

Maranello, Italy

7000 cars built per year

Large proportion built in house

Machine/Casting Shop

3,000 workersOne person per engine

Working environmentLinking creativity to quality

Many facilities

Visionary planning

Ferrari’s Ethics

Precision Quality Exclusivity

True Enthusiast Racing Heritage Giving Back

Swot Analysis

Strengths of Ferrari:

• Extremely strong brand image.• Products that are a fine combination of beauty &

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 & technology are key drivers behind every

product.• A very inspired, well taken care of & 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″.

Swot Analysis

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 every day, thanks to spreading concerns over the environment.

Swot Analysis

Opportunities 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 & 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.

Swot Analysis

Threats of 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 & 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 & in particular, in India, which has led to its success in the Indian market. Ferrari has not announced any plans for such a product (high-performance SUV) as of yet.

Products

Ferrari has developed a very wide range of product line over the years and many variants on those lines.

These product lines can be broadly divided into two major segments namely:

1) Sports cars2) Road Cars

Products

Current Sports Car:

2012 Ferrari F20122012 458 Italia Grand AM2011 599XX Evo2011 458 Italia GTC2011 458 Italia GT32011 Ferrari 458 Italia Challenge2009 599XX 2009 F430 Scuderia GT32008 FXX Evoluzione2007 F430 GT32006 F430 GTC2005 FXX

Products

Products

Current Road Models

Product Development

Technology and Innovation

Each Car Customized / Tailor made more than 65000 combination of interior available to choose

Product Development

One of Program

Car will have exterior design as per the customer.

Pricing

High quality High price

Maximum profit

Low volume (only 7000 vehicle overall and 550+ in middle east,2011)

Entry level car- 750,000 DHS

Upto 20000000 DHS

Competitor

Promotional Strategy

• "Ferrari does not have to advertise because the sports pages in the local newspapers do it for him.” – Henry Ford

• Promotion through merchandising

• Strong Brand Presence throughout the world

• Co-branding exercise with various well known brands such as Puma, Acer, Mattel, Marcolin

• Brand values – Exclusivity, Customizability, Luxury, F1 Experience

Official Ferrari Magazine

• Started by Enzo Ferrari in 1930s• Started by recounting special

memories of each season• Intimate glimpse into the stories

that are not revealed to the regular media

• Exclusivity- It is reserved for Ferrari clients in the first three years of ownership and for those awaiting delivery of 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 to purchase Ferrari products like shoes, jackets and other apparels

• Stores are also famous for their exclusive Ferrari collectibles

• Ferrari has collaborated with some of the big names like Puma, the Danish Lego Co., Acer, etc

• Apart from shopping, customers can also test the Ferrari Virtual Race, read the Forum and Blog and lot more

Ferrari Store - Physical

• Physical presence in Abu Dhabi and Dubai – the key target markets

• Stores created in crowded upscale malls to ensure maximum visibility

• Merchandising to strengthen Brand Equity

Ferrari World Abu Dhabi Tool for Brand Promotion

• World’s first Ferrari theme park

• Located at Yas Island, Abu Dhabi (UAE’s Capital)

• Its iconic sleek red roof, inspired by the classic double curve side profile of the Ferrari GT body, spans 200,000 SQM, carrying the largest Ferrari logo ever created

• Ferrari played an active part in its development, owned by Abu Dhabi government

Ferrari World Abu Dhabi Tool for Brand Promotion

• It hosts 20 plus Ferrari themed rides and attractions

• Target audience – Families, fans and enthusiasts

• Key attractions: Galleria Ferrari, Formula Rossa, Viaggio in Italia, Junior Grand Prix, Racing Legends

• Guests can purchase merchandise from several retail outlets throughout the park including the largest Ferrari store in the world

• Italian dining experience

Indirect Advertising

Indirect Advertising

Indirect Advertising : Social Media

Lamborghini – Cafés

• Tonino Lamborghini has partnered with Retailcorp in UAE and has recently opened two outlets – one near Dubai Mall and the other within the Khalidiya Mall in Abu Dhabi

• This kind of venture has not been initiated by Ferrari

Lamborghini – Online Store

• Collectibles cannot be compared to the variety offered by Ferrari

• It has associations with some of the top luxury brands like Tag Heuer, Versace, etc

• The payment can be made only in Euros or Dollars

• They give discounts to their customers, a practice not followed by Ferrari

Lamborghini – Online Store

La Vita Lamborghini

• Italian for Lamborghini Life• The official quarterly magazine of

Lamborghini Club America, the largest Lamborghini owner’s club in the World

• The owners in the U.A.E can only have the online version and not the physical copy, which is not in the case of Ferrari

• Lamborghini Owners Club: Unlike the Ferrari owners, Lamborghini owners have no official club formed yet

Lamborghini – Online Store

Lamborghini – Print Ads

Lamborghini – Online Store

Lamborghini – Print Ads

Lamborghini – Online Store

Ferrari V/S Lamborghini: Positioning

Ferrari Lamborghini

Logo – Cavallino Rampante Logo – Raging Bull

Red color : Brand Recognition Various colors

Association with Formula One biggest asset

No valuable association

No need for Advertising Print and video ads

Target Customer: Car Lover Target Customer: Young, speed lover

Target customer age: 20-45 Target customer age: 20-30

Ferrari World Abu Dhabi – Unique Ferrari Theme Park

Associated 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 by a 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 and Dealer/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 and East 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 which Ferrari 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 regarding Sales 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 Zayed Road, Dubai )

• Al Tayer Motors was established in 1982 and represents major European and American

automobile manufacturers across the UAE.

•  

• Al Tayer Motors has represented Ferrari in the UAE since 1988 and has won numerous

awards over the years for sales and after-sales activities.

•  

• The dealership most recently won Best CSI Aftersales of the Year from Ferrari Middle East

& Africa and Best 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-Sales activities in the 29 markets

Distribution of Lamborghini

• In UAE, Lamborghini has 1 distributor having its outlet in Abu Dhabi

and Dubai. The distributor is Al Jaziri Motors LLC

• Since 1985 the Al Jaziri family maintains the exclusive dealers for

Lamborghini

• The main branch is located in Business Avenue building near the

Dubai International Airport

• The showrooms are based in Dubai and Abu Dhabi and a service

centre is based in Al Quoz, Dubai.

Scope of Improvement

• Narrow product line

Aston Martin

Audi

BMW

Chevrolet Corvette

Chrysler Viper

Porsche 911 GT3

Nissan Skyline

Nissan GT-R

Mercedes-Benz SLS

Mercedes-Benz CLK

Saab 93/Saab GT750

Scope of Improvement

• Long waiting period

18 month min

• Low volume business model

Selective toward customer

• Fuel efficiency & emissions

Hybrid car