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Free «Ferrari» Essay Sample

The competition in automobile industry gets very intense as the models, prices, and performance are three aspects that customers love to compare. In addition to the product development, an automaker must cope with the branding strategy in order to improve the customers’ loyalty to the brands and also increase the fans base.

Concerning the corporate branding, this presentation will discuss about the corporate form of Italian automobile company, Ferrari. There are four points in this presentation: the brand development, company background, timelines, and differentiation strategy.

Everyone who hears the word Ferrari must associate it with the cars with its prancing-horse logo. Ferrari is an automobile company that focused on premium segment with very few numbers of cars that are produced each year in order to maintain the quality. However, the Ferrari does not only rule the sport cars market, they also start to gain customer loyalty through premium merchandises and a theme park.

Philip Kotler (2000) in his famous book, Marketing Management, says that in 21st century, marketing has spawned new marketing method. Instead of spending millions of dollars on expensive market research, those companies took advantage of all their resources, producing near to their customers’ locations and creating more solutions that are satisfying their customers.



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Moreover, he said that these companies are building customer’s clubs, engage in creative public relations, and focus on efforts to produce high quality products and win-over customer’s long term loyalty. Those companies have proven and admitted that marketing is an ever-developing science, and it has a very important role on deciding the faith of a company.

At Ferrari, this factor also plays significant role as they now strengthen their brands by complementing their core products, sport cars, with several related merchandises such as watches, jewels, made-to-order bicycles and many more.

The use of the logo that indicates the jumping stage is in line with the strong corporate performance in the last three years although the some parts of the world experienced economic crisis in 2008-2009. The details of Ferrari performance are as following:

  • Record revenues: 1,605 million euro (+18.9%)
  • Trading profit: 212 million euro (+10.9%)
  • Best ever industrial cash flow: 240 million euro
  • 5,165 cars delivered (+12.3%)

USA +14.5% and in china over 500 cars delivered

In addition, there are many reasons why people become cults for particular products including unique packages, brand images, and exclusivity that can be achieved through new shapes of packaging, fancy design, and attractive advertising. In order to enhance the level of influence, corporations employ celebrities to endorse their products. This strategy sometimes works since fans tend to copy what their idols do and have. Therefore, the use of celebrities in endorsing products will increase the demand for the products themselves that make the cost of using the celebrities is justified.

The development of Ferrari can be represented by the over 60-year of the company existence. Through the years, Ferrari has shown excellent focuses on producing quality products of sport cars that satisfy the customers while spawning many brand enthusiasts. The following timelines highlight the journey of Ferrari since its first design of V12 engine, the first production of Ferrari 125s until the building of wide production facilities in Italy.

Technically, differentiation strategy refers to a strategy that aims to attain a competitive advantage by developing a service or goods that customers perceived to be unique in some important criteria. There are several benefits of conducting differentiation strategy:

  • Put a premium price
  • Increase unit sales
  • Gain buyer loyalty to their brands
  • Succeed in building customers’ loyalty to the brands through the theme parks in Abu Dhabi. It also improve sense of ownership of Ferrari owners and fans

To be specific, merchandising strategy involves the decision about which products and how to the products once customers lift up their demands. In much detail, for online retailers, merchandising strategy becomes critical factor that determine live and death of their companies since the success of online retailers depend on the effectiveness of their merchandising strategy.

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Ferrari is still unmatched in the production of premium vehicle as the fans are scattered all over the world. In conclusion, we note three aspects concerning the Ferrari and organizational performance.

  • is a premium brand that continues diversifying their products and services to strengthen customers loyalty and increase number of fans
  • produces multiple products/merchandises to satisfy the car owners and fans: watches, made-to-order bicycles, puma Ferrari shoes, Jewels, and several gifts
  • succeed to strengthen brand loyalty by building theme park in Abu Dhabi.


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