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.