A nice Puma ad.

Puma guys use Puma/Ferrari clothes to build a Ferrair F1 car.

Chapter XII - Marketing Channels - Ferrari

Ferrari uses both a Retailer channel and a direct channel to transfer the ownership of a car to the customer. Some of the more exclusive Ferraris can be bought straight from the factory, but to do this you must be either a celebrity or filthy rich. If you don’t belong to the aforementioned group then you can visit a Ferrari dealership for all your Ferrari needs. Most Ferraris are build-to-order, so after you customize it to your liking and put down a deposit, the order is emailed to Marranello then it waits in line for about a year until it’s build and shipped. All Ferrari dealerships offer pre-owned cars, if you’re impatient this would be a good deal for you. All pre-owned Ferraris are “Ferrari Approved”, which means they’re go thru an array of wide-ranging checks and include factory-supported warranties for cars up to nine years old from date of first registration. This delivers total peace of mind to those who have the privilege of experiencing a Ferrari. Here are some benefits you’ll get if you buy one; Detailed Technical Inspection by Ferrari Technicians, Pre-sale External and Internal Preparation, 12-month Ferrari Warranty and 12-month Ferrari Roadside Assistance. Also a lot of the dealers sell Maseratis, Maserati is owned by Ferrari and it’s a sort of a Ferrari Limousine. Currently Maserati produces just two cars; The Quattroporte and the GranTurismo each costing slightly less than an average Ferrari and having a significantly shorter wait period.

Chapter XII - Supply chain management - Ferrari

Ferraris supply chain doesn’t run as smooth as it should, the factory makes about 20 cars per day and it’s currently unable to increase the output. And since all Ferraris are different depending on the customer, then the way they are build is different. The most important part of every Ferrari is the engine, in Ferraris case the engine is the most time consuming part of the car. Ferrari uses one sand mold per engine, each mold is hand perfected by one of Ferraris specialists, the process of making a single mold takes approximately 10 hours. The rest of the car is also handmade, except for the paint job, body stapling, Chassis inspection which is done by robots. Another aspect of the Supply chain that isn’t really efficient is the shipping process. Ferrari has just one factory and it shippes it’s cars all over the world, but they don’t ship the cars in bulk, they send one car per order, unless there’s multiple orders in a short period of time.

This is an ad in "Welcome to Sant'Agata Bolognese. Home of Lamborghini." series. It shows Horse butcher shop with a familliar logo.

I wonder what does it mean?

Chapter X - Developing and Managing Products-Ferrari 599 GTB Fiorano

599 GTB debuted at the Geneva Motor Show in February 2006. It has a 6.0 L V12 engine which produces 612 hp, making it the most powerful series production Ferrari road car. The company claims a top speed in excess of 330 km/h, 0–100 km/h in 3.7 seconds, and 11.0 seconds to 200 km/h. This is a realy amazing car, it was named the 2006 Car of the Year by the two greatest car magazines in the world, Evo and Top Gear magazine.

In 2009 Ferrari decided that they’re going to make the car even better by releasing the Handling GT Evoluzione (HGTE) version, it is an upgrade that improves the car's handling, the ride height has been lowered, which lowers the car's center of gravity, it also includes optimized tires featuring a compound that offers improved grip, better electronics, the gearbox's shifts are faster in high-performance settings, while new engine software improved accelerator response, the exhaust silencer was modified to produce more thrilling sound under hard usage whilst still delivering just the right comfort levels at cruising speed, also the exterior and interior were upgraded with more carbon fiber components, which reduced its weight. As a result of all those improvemants, the HGTE is a “new and improved” Fiorano, its faster more agile and probably much less comfortable.

Chapter X - Developing and Managing Products-Ferrari California

During the 2008 Paris Motor Show Ferrari introduced a new car, the California. What’s interesting about this is that Ferrari usually retires one car and then introduces an new one, but the California is an all new type of a Ferrari, California represents a new, fourth model range for the company. Here’s some firsts for the California; it’s the first front engined Ferrari with a V8, The first to feature a 7-speed dual clutch transmission, The first with a folding metal roof, The first with multi-link rear suspension, The first with direct fuel injection. According to some sources the California originally started out as a concept of a new Maserati, but the car needed the Ferrari badge to justify the ideal return on the investment.

This is a Mockumantary video for the BMW 1 Series Coupe.

For a better watching experience go to http://www.rampenfest.com/

Chapter XVI-Sales Promotion – Ferrari

Ferrari uses Auto Shows as Sales Promotion. When Ferrari wants to introduce a new model, first they send out a press release and then they haul it to the nearest Auto Show ,and there’s one at least every month, during this years Frankfurt Motor Show Ferrari unveiled the new 458 Italia as a replacement for the Ferrari F430. Most people who attend those shows are regular Joes, they’re just there to look at pretty cars. The real advantage of Auto Shows is the media coverage, every car TV show and magazine has their team on the spot, to bring us the latest news and the newest cars, some of those guys are even allowed to test the cars, which makes for a better coverage.

Chapter XVI - Personal Selling- Ferrari

Personal Selling is very important to Ferrari. Ferraris are high value, technically complex products, you will need someone knowledgeable to guide you thru the whole process of buying one on the. So you’ll need to visit a certified Ferrari dealer. First you’ll have to setup an appointment with the dealer, then you’ll need to dress well and look serious. If you’re not escorted out by the security during the second step, then you can start negotiating the purchase with the dealer, you can choose the model that suits you, the paint, interior, options and even request some personal customizations, the dealer will surly help you pick out everything you “need”. Then you negotiate the price, pay the down payment and wait a year until it’s delivered. If you don’t like to wait you can buy a pre-owned Ferrari on the spot, which is just as good as a new one.

Chapter XV – Public relations – Bugatti and Top Gear

Bugatti mainly uses press relations to advertise new cars and to bring awareness to the company. An example of this is Bugatti's relationship with the British TV program Top Gear. Ever since the Veyron was released the hosts of the program couldn’t wait to put it on their test track, but Bugatti wouldn’t allow it, but they did allow the show to borrow the car and use it in a couple of challenges, like; a race against Cessna 182 Private Plane from Alba, Italy to London to deliver a truffle, Veyron won, of course. In another episode the car was pinned against a Eurofighter Typhoon jet, to see which one could travel two miles faster (the Bugatti along a runway and back, the Eurofighter climbing a mile straight up and back down), Eurofighter won this one. It was also featured in a race against the McLaren F1 in a one mile drag race in Abu Dhabi, Bugatti took the win. But the most notable use of the Veyron on Top Gear was when one of the hosts, James May aka “Capitan Slow”took the Veyron to its top speed of 253mph. it was the most exhilarating thing I’ve ever seen on TV. The Veyron was also Top Gear’s Car of the year 2005 and Jeremy Clarkson declared it “the greatest piece of engineering ever. No, I'm sorry, this is the greatest car ever made and the greatest car we will ever see in our lifetime."

Then finally four years after its release the Veyron appeared on Top Gear’s test track, initially it was third behind the Gumpert Apollo and Konigsegg CCX, with the time of 1:18.3 seconds, but two minutes later it was bumped to fourth place by Pagani Zonda F roadster which was just 5 milliseconds faster.

At first when the Veyron came out, I honestly didn’t like it, I thought that it was ugly, it was too heavy, and it was too arrogant with its 1001 hp and 253mph. Only recently (after being influenced by Tog Gear) my view of the car has changed radically, I have seen the other side of the beast and now I think that it’s the most beautiful car ever both in the looks and engineering department. So I think the PR effort was pretty effective.

This ad shows two guards at Buckingham palace talking with their hands.

Here's another “Feels Italian Wherever You Are” ad. This one features a burley biker doing the burnout on a Vespa, in Mexico.

Chapter XV - Advertising - Lamborghini

This ad is part of Lamborghinis advertising campaign called “Feels Italian Wherever You Are”. The campaign shows us how a driver experiences the world from behind the wheel of a Lamborghini, it shows stereotypical national scenes in a distinctively Italian way. This particular ad shows two “typical” American guys sipping espressos in front of Biff’s Big Burgers, with a Lincoln parked next to the Diner.
This ad is an example of Institutional Advertising, and that’s because it doesn’t show the actual car that they would like to sell (except for the reflection in the window) instead they emphasize the fact that even though the company was taken over by Audi is still very Italian.

Chapter XVII – Pricing – Ferrari

If you want to buy a new Ferrari you will have to shell out at least $250 000, then you’ll have to wait for a couple of months until it’s build and delivered. But during those couple of months you’ll never doubt that you made the right decision, because you know that the car will be everything you always dreamed of.
Ferrari charges what it charges for its cars because they are made from the highest quality materials available on earth with the attention to detail that’s only second to NASA. And ofcoure Ferrari can increase their price any time they want without affecting the demand because with the maximum output of only about seven thousand cars per year, the dement will always outweigh the supply.

Chapter XVII – Pricing – Bugatti

Bugatti is a legendary car manufacturer, so in 1998 Volkswagen thought that they will buy the rights to produce the car and reinvent it, and now the company is losing about 1.5 million dollars per car, and that’s because all the research and development costs a lot, and in case of Bugatti nothing will do but the best. And so the car that costs $3 million to produce is now sold for only $1.5 million and until the production ceases in 2011 Volkswagen will lose about $675 million, but in the long term the company will probably gain on that decision because they have reinvented a great car and now they can start producing much cheaper cars and charge a lot more for them.

Chapter XIII – Retailing

For the assignment this week I visited the Barnes & Noble Book store on Warren St. I often visit the store during hour long brakes between lessons, but I seldom buy anything, the main reason is the price, the books that I’m interested in aren’t really worth 20 or 30 bucks that they’re asking for, and so what I do is scout for interesting books and then buy them on eBay. For example during my last visit I considered buying “The Boys of Pointe du Hoc: Ronald Reagan, D-Day, and the U.S. Army 2nd Ranger Battalion” by Douglas Brinkley, it cost about $20 at the store, but I was able to buy the same book in “Brand new” condition for just $5 with Free shipping on eBay.com.

Barnes & Noble is my favorite store, it has a good atmosphere about it, there’s always relaxing music playing and the employees are nice and helpful, but every time I go there I feel guilty, because the majority of time I spend there, I just read car magazines, which I never buy. And the rest of my visits I spend browsing thru books which I’ll buy on eBay. The last book I bought there was “The Lost Symbol” by Dan Brown on September 15 and I’ve been freeloading ever since.

Chapter XIII - Retailing – Ferrari Store

Ferrari isn’t heavily involved in retailing, they are mostly interested in winning races and then selling cars, at least that’s what they tell us. Nevertheless they own and operate over 25 “Ferrari Stores” worldwide, in which you can buy all the useless key chains, pens and T-shirts that you will never ware or use in your entire life. You can also buy all kinds of race memorabilia, from intake valves to the rear spoilers. And if you visit the store at Ferrari.com you’ll see that they over charge for everything. Actually the over pricing thing isn’t all that bad because each Ferrari store is also a museum and you have to pay to get in, so while you browse thru all the red T-shirts looking for the right size, you might be standing just feet away from a car that brought Michael Schumacher fame, and I would gladly pay for this kind of experience.

Chapter IX – Product Concepts - Pagani

Pagani has only one product line, which is Super-Cars and in my opinion nobody makes them better than Pagani. Pagani factory in Modena builds only about ten cars per year, and as of June 2009 only 106 Zondas have been build in 10 different versions, each better then the last. Such small output is due to Horacio Pagani’s attention to detail, all of the cars are hand build and as a result each car is unique. Also Pagani is the best packaged product in the world, by which I mean that every time you look at it you will be amazed by this beautiful beast, and unlike a DVD it’s relatively easy to get to what’s inside.

Chapter IX – Product Concepts – Ferrari

Ferrari is a Specialty Product, because people only buy it if they really really really want one. And with only about six thousand cars made per year the demand won’t be satisfied soon. As with all Super-Cars Ferrari pays a lot attention to detail and quality, and for Ferrari that’s not a big problem, because all the people who put the cars together had propably dreamed about buying one since they came out of the womb, and now they can do the next best thing, working with them.

Chapter VII - Targeting Markets - Ferrari

The target market for Ferrari is males, age 40+, and income of $250K and up. And only about 5% of Ferrari customers are women, so, Ferrari created the new California, Ferrari claims that, unlike most supercars, you can use it every day. To make it more driver friendly, the Maranello factory has fitted a clever automatic gearbox, and put a V8 engine at the front instead of in the middle. The result is a car that looks and sounds Italian but behaves like a well-mannered German and that's what women want. (I think)

Chapter VI - Pagani Mercedes Relationship

Pagani has a partnership with AMG the in-house Mercedes tuning company. This is partly due to the fact that Juan Manuel Fangio the five time Formula One champion and the inspiration for Horacio Pagani, had suggested that Pagani approach Mercedes to build the engine for their new car. The Zonda has used increasingly advanced versions of the M120 V12 engine, the first version displaced 6.0L, but current Zondas use a 7.3L engine. Pagani has also assisted in the development of the Chrysler ME Four-Twelve.

The Persuaders - Ferrari

The part of the Persuaders that most relates to Ferrari is Emotional Branding, because Ferrari is great at making its customers feel like they're a part of the team; They organize races and all sorts of events for the owners, they have programs where the owners help test and improve their models, and, if you want to be close to the firm but don't have enough cash to buy a Ferrari you can join their web site and get lots of exclusive content. And the people who now own Ferraris had probably dreamed about the Prancing Horse since they were ten.

Chapter VI - Business Marketing - Michelin and Bugatti

Everybody knows that the Bugatti Veyron is the most exclusive car in the world, but, even the tires for the Veyron are unique. they're specially designed by Michelin to handle the stress of driving at 407 km/h (253 mph), and need to be able to handle 1.3 G's on the skid pad, they also need to last longer than a typical race tire the tires also use the Michelin PAX System. Their pressure is monitored automatically, and they can run flat for approximately 201 km at 80 km/h, and the main advantage of the system is the elimination of the need for a spare tire, which can only be bought at the Bugatti factory, and each set of four with wheels costs $50,000.

Chapter VI - Business Marketing- Shell and Ferrari

The partnership of Shell and Ferrari dates back to the 1930s. Shell was the logical choice to provide the fuels and lubricants when the first Ferraris were produced in the 1940s. The two companies were partners from the dawn of Formula 1. Since then, Ferrari and Shell have cemented one of the most successful technical partnerships in the History of the sport.

From the beginning, Shell contributed to Ferrari’s success by supplying the optimal fuels and lubricants to run at high speeds. Enzo Ferrari summed up the long-standing partnership: “The people at Shell were always aware of the great importance of the experience gained in motor racing, and that is why the company achieved such Exceptional results.”

Shell and Ferrari established their current relationship in 1996, which ushered in one of the most successful periods In Ferrari’s long Formula 1 history. Over the past decade, Shell has made important contributions to one of the key Factors behind Ferrari’s on-track success – reliability. And, in 2005, Shell renewed its commitment to Formula 1’s most successful team through to the end of 2010. Today, the spirit of the partnership remains strong.

Chapter V- Consumer Decision Making- Ferrari

Ferrari doesn't advertise its products on TV or in Newspapers, and if they want to sell one of their more exclusive products, like the Enzo or the F450 Scuderria, they will call you (if you got the cash and they dim you worthy). But if you want a California or the Scaglietti you can just stop by your local Ferrari dealer and get it on the spot (if it’s in stock, otherwise you'll have to wait a couple of months).

So, what does Ferrari do to get new costumers for their less exclusive cars? Well, they breed them. If you’re a 10 years old boy then you probably have a Ferrari poster on the wall and a Ferrari toy car on the shelf, you may also have Ferrari Lego's, pencils, notebooks, bed sheets, key chains, sunglasses, perfumes, watches and all kinds of race memorabilia, from intake valves to the rear spoilers. And if you visit the store at Ferrari.com you’ll see that they over charge for everything. And it's all because of Ferraris extensive licensing of its logo and all likeness of its cars. This brings in lots of revenue, and creates new costumers, and if you're a 10 year-old, then in thirty years if economy allows you will own one of those red bustards, and it will be a flying car that runs on dreams.

Chapter V-Consumer Decision Making- Bugatti

In 2006 Bugatti released it's highly anticipated Veyron, which was a huge success. They made a couple different versions, all were sold before they hit the factory floor. Veyron targeted Billionaire Playboys and middle-eastern oil tycoons. So, Bugatti came up with the 16C Galiber, which like the Veyron will target billionaires, but much older and comfort seeking billionaires. It will have a 16 cylinder 8 liter engine with a two stage supercharging system, it will also be four wheel drive and both its chassis and body are made of carbon fiber. But, unlike the Veyron it will be a four door sedan that pays homage to the immortal Type 57 Atlantic.Also adding to the exclusivity and style, Parmigiani, the Swiss maker of fine watches, created the removable Reverso Tourbillon clock for the Galiber, which may be worn on the wrist thanks to a cleverly designed leather strap. But there is another great thing about the Galiber, it's engine can be run on both regular petrol as well as bio-ethanol, which is much more eco-friendly and will help keep weird-beard eco-terrorists away from this beauty.
“The most exclusive, elegant, and powerful four door automobile in the world.” Is expected to go on sale in 2013, and will cost less than the Veyron's $1,000,000 price tag.

Chapter IV - Global Vision - Ferrari

Ferrari doesn't have a Global Vision, they just go racing 17

weekends of the year and then make some cars, and that's

it, no TV ads, no product placements.

In fact they advertise other companies on their cars, like

Magneti Marelli, Agip, Marlboro, FIAT, Shell, Bridgestone,

AMD, Acer and Etihad Airways.

In 2007 The biggest market for Ferrari was North

America which accounts for 26% of the companies global

sales, 16% went to the Asia Pacific Region, 20% went to

South West Europe, 19% were sold to Central Europe, 13%

went to North Europe and 6% went to Middle East and

Africa.

Also in 2010 Ferrari will open its first Theme Park

in Abu Dhabi. It is set to be the world’s largest indoor

theme park, sitting under a roof designed in the style

of a classic double-curve body shell of a Ferrari. There

will be more then 20 rides and attractions, including the

world’s fastest rollercoaster.

Chapter IV - Global Vision - Audi

People say that Germans don't have a sense of humor or any imagination. But I disagree, just look at all the Audi commercials.

Today while watching the F1 Singapore GP on SPEED I saw this commercial,

which is funny and memorable, and will probably generate lots of revenue for Audi, but not from Italy. The Ad shows the Audi R8 driver just coming to Maranello as a sign of disrespect , and adding insult to injury it has the same paint job as most Ferrari's. And remember that Audi owns Lamborghini which has a feud with Ferrari, so maybe its a smear campaign towards Ferrari, showing that it's managed and assembled by ignorant people in a ignorant city.

Audi is a major international car manufacture, and while some car companies concentrate on making their cars the safest, the most comfortable or the fastest, Audi just makes a compromise between all of those and it still comes up on top. And since its advertisements aims towards Europe and U.S, no wonder it's one of the best selling cars.

Chapter III - Social Responsibility Ferrari

Ferrari has always used technologies developed in Formula 1 to benefit their road cars.

And now with new regulations that will make F1 a more environmentally friendly competition, Ferrari will need to develop a car that will go fifty 3 mile laps around a race track on one tank of fuel, because that's what FIA ( Federation internationale de l'automobile ) wants in the 2010 season along with KERS ( Kinetic energy recovery system ) which will be mandatory in the next season. And so in 2015 after five years of racing under the new environmentally friendly rules, Ferrari will probably be greener than the amazon jungle.

Chapter III - Social Responsibility Lambo

A average Lamborghini gets just 12 miles to a gallon. So Lambo needs to make some changes, the Italian sports car maker announced plans to cut 35% from the carbon dioxide emissions of its cars by 2015. And meanwhile it is putting 17,000 square meters of solar panels on the roof main factory at Sant'Agata Bolognese.

The company currently makes just two different cars the Murcielago with it's huge V 12 engine and the Gallardo with a slightly smaller V 10. So what the company is going to do is fit both of those cars with smaller engines, Murcielago will get a V8 and the Gallardo a V6, there will be no major changes to the outside of the cars. And if they put a smaller engine in the car, that gives some space to fit an electric engine in there as well, which will help while driving around a city.

And with all this effort Lamborghinis will still be the most gas guzzling cars on earth in 2015.

Lamborghini- Marketing Plan

Ferruccio Lamborghini's first objective was to create a better car then Enzo Ferrari, Ferruccio complained to Enzo about his cars, telling him that his cars were rubbish. The notoriously pride-filled Enzo was furious and told him "Lamborghini, you may be able to drive a tractor, but you will never be able to handle a Ferrari properly". And with that in mind Ferruccio went back to his workshop and took apart one of his Ferrari 250GTs, and modified it to make it perform better then the original, and it was.

After being taken over by Audi A.G, the company has changed its strategy, from an aggressive and crazy company making the most imaginative cars that could ever be conceived, to a stable and progressive company. Their new strategy is to produce cars that preserve Italian eccentricity while displaying the hallmarks of German efficiency.

Source( Wikipedia.org)

Ferrari- Marketing Plan

Ferrari still exists today only because of it's exclusivity, racing heritage, and the passion of all it's employees for the what they do. It has progressively widened its range using visionary planning both on a design level and on the quality of work.

Ferrari believes, that if they provide the workers with pleasant working conditions, a feeling of transparency (most of the walls inside the factory are made of glass) and a feeling of being a valuable part of the company and the Ferrari family. Then the employees will be highly motivated to excel at their job, and that always results in better quality of the goods produced . And that's why Ferrari received the European "best place to work" award from the Great Place to Work Institute in 2007.

Maranello companies

There are four Super Car companies near Maranello. The most famous, of course, Ferrari, its factory is right in the center of the city.

The other big company is Lamborghini, which is a little further but still close enough to be included in this blog. The factory lays about 16 miles North-east of Maranello. Lamborghini makes too many beautiful cars to list them here. Two of my favorites are the Miura and the Countach The company is currently owned by the Volkswagen Group.

Eleven miles north of Maranello there is the Bugatti Factory. In 2006 Bugatti released the Worlds most amazing and probably heaviest Super Car ever, the 1001 horse-power monster Bugatti Veyron 16.4. It costs $1700000, goes from 0 to 60mph in 2.5 seconds and all the way to its top speed of 253 mph in just a second more (or something like that). This company is also owned by the Volkswagen Group.

The last car manufacturer based in the area is Pagani. Created by an Argentine-Italian Horacio Pagani it makes the Pagani Zonda, the craziest car in the world (my favorite). The company produces less than 20 cars a year, and all of the cars are sold out months before they're put together, and this brings the price up to $2.100.000 for the new Zonda R. The factory is located 8 miles to the east on Maranello.

Ferrari - Recent history

Ferrari sells about 5000 cars a year at about $250 thousand each, but the company never spent a penny on advertising. So where does the demand for the cars come from.

It's beautiful, stylish, fast and rare, but most of the interest in the company comes from motor sports, whenever there is a Ferrari on the track, it will probably end up on the podium. And just the racing heritage makes it a great buy. But there is another way to create interest, and that is to create a Halo Model. Ferrari has created a handful of Halo Models in the past but none as successful as the Ferrari Enzo, built in 2002 in honor of Ferrari's founder Enzo Ferrari. There were only 400 made at $1 million each. And this was a good move, because it boosted Ferrari's sales by more than 50% from 2003.

Surces (wikipedia.org, www.edmunds.com)

Ferrari - Company history

Ferrari S.p.A. is a sports car manufacturer based in

Maranello, Italy. It was founded by Enzo Ferrari in 1928

who at first didn't intend to produce road cars. The company

sponsored drivers and manufactured race cars before

releasing their first street-legal car, the 125 S in 1947

Ferrari joined Formula One Racing during the second race

of its inaugural season in 1950, and is the the longest

running and the most successful F1 team today. In addition

to having their own F1 team, Ferrari provided numerous

teams with engines, parts and advice during the last 59

years in F1. The team has won 210 races out of 787 in

which they competed, and won 15 Drivers Championships,

most recent in 2007.