STRATEGY & MARKETING FERRARI PROJECT

Prof. Vittorio Chiesa

Albertini Samuele 942536
Bottoni Biagio 948163
 Introduction
“The best Ferrari ever built is the next one” is a phrase that sums up Enzo Ferrari’s Philosophy in a nutshell. This philosophy continues to drive every Ferrari technician as they tackle the
design of each new car, be it a Formula 1 or a road-going model. The challenge to constantly achieve the impossible drove Ferrari to explore the new field of hybrid technology. In May
2019 Ferrari launched its first not limited edition PHEV (Plug-in Hybrid Electric Vehicle) car.

The structure of the project:

Hybrid and E-Cars future trends and luxury market

External/Internal analysis

SWOT and Strategy

Customers segmentation and customer experience

The Ferrari brand

Marketing mix

Idea

First of all, let’s start this presentation introducing briefly the history and the core competences of Ferrari:
Ferrari Spa was founded by Enzo Ferrari in 1947, the Maranello’s firm has built its success manufacturing cars unique in terms of their performance, innovations, technology, driving
experience and design. Ferrari is an excellent example of made in Italy, in fact, they design and build all their cars in Maranello, but they sell them in over 60 markets worldwide through a
network of 180 authorised dealers. The Italian company has been able to reach a leading position in the luxury car market thanks also to its human resource power. As Ferrari states, the
3.851 employees are the most valuable resource and they base their leadership on the passion, determination, commitment and team spirit of their managers, mechanics, designer, engineers
and drivers. These valuable resources and competencies bring Ferrari to be one of the most profitable and known company in the luxury market.
 Hybrid and e-cars market future trends
The car industry is undergoing a radical transformation, with most carmakers agreeing the next 10 years
will bring more change than the two previous decades. With stringent emission norms expected to take
effect globally, the internal combustion engine is expected to gradually make way for electric vehicles
(EVs) and hybrid electric vehicles (HEVs). The global electric vehicle market was valued at $118.864,5
million in 2017, and is projected to reach $567.299,8 million by 2025, growing at a CAGR of 22,3% from
2018 to 2025. In 2018, the global electric car fleet exceeded 5,1 million, up 2 million from the previous
year. According to JP Morgan, the growth in electric vehicles (EVs) and hybrid electric vehicles (HEVs) is
climbing and by 2025, EVs and HEVs will account for an estimated 30% of all vehicles sales.
Comparatively, in 2016 just under 1 million vehicles or 1% of global auto sales came from plug-in electric
vehicles (PEVs). However, the report estimates this number will near 8,4 million vehicles, translating into
a 7,7% of market share.
On the right it is presented a chart that shows the global electric vehicle forecast: fossil fuel-burning
vehicles will account for about 70% of the market share. By 2030, pure ICE are expected to decline to
nearly 40% while Fuel + Mid Hybrid is the segment with the higher potential for growth.
Source: JP Morgan

Who will succeed in reaching a leading position in the hybrid e-cars market?
In terms of production and sales of electric cars, no other nation comes close to China.
According to JP Morgan data, by 2020 the country is expected to account for 59% of global
sales before easing slightly to 55% by 2025. China is gaining the advantage of first-mover
thanks also to the government that has put in place policies and initiatives to support the
development of the EV industry. Globally, China is on track to become the global leader both in
terms of EV production and consumption.
In February 2019, during the BNEF Summit talk, Colin McKerracher, head of advanced
transport of BloombergNEF, presented his team research’s results about China’s EV market. On
the left, it is shown a bar chart in which we can see that the 6 major cities in China have about
18% of the global EV sales share. In particular in Shenzhen and in Shanghai it is been registered
more sales than Europe’s leader countries such as Norway, Germany, the United Kingdom and
France.
Europe and United States follow the leading position of China, the future challenge for these
two players is to gain a larger portion of market share from China.
Source: BloombergNEF
 Luxury market overview & Ferrari position
One of the main concept that came out during the Ferrari presentation on 18th of November, is that the Italian company competes in the luxury market as much as in the automotive one. In
this slide, we are going to present their size and potential growth, in particular focusing on the luxury cars segment.

The Luxury market is a wide sector that includes: personal luxury goods, luxury cars,
luxury hospitality, fine wine & spirits, gourmet food & fine dining, fine art, high-end
furniture & housewares, private jets & yachts and luxury cruises.
According to the multinational firm of consultancy Bain & Company, the global luxury
market grew to nearly €1,2 trillion in 2018, up to 5% from 2017. Luxury cars, luxury
hospitality and personal luxury goods together accounted for more than 80% of the total
market. Sales of luxury cars continued to dominate the market, growing 5% to €495
billion (a slight decline in the growth rate vs. 2017). Within the luxury car market, the
aspirational segment outperformed.
Chinese consumers’ appetite for luxury remains unrivalled, infact, they lead the positive
trend around the world. Their share of global luxury spending continued to rise from 32%
in 2017 to 33% of 2018. As we can see also in the previous slide, China is the most
Source: Bain & Company
attractive market both for Hybrid & E-Cars and for the luxury market.
The position of Ferrari inside the luxury cars market:
The luxury performance cars market has now exceeded pre-crisis levels. In 2018, its
volumes in the largest 22* markets was substantially in line with 2017, primarily driven by
contribution from its range models. The Italian company had a market share of 17% in the
luxury performance car market; with 19% of market share in the sports car segment and
14.5% of market share in the GT segment. The market share is not a performance driver in
which Ferrari is particularly interested in, but let us understand the volumes of Ferrari. The
strategy of Ferrari in manufacturing cars is demand-driven, in fact, they start manufacturing
their cars once they receive the order. Besides, they manage their supply relative to demand,
to defend and promote brand exclusivity and premium pricing. These factors explain why
Ferrari is not focused on volumes and why market share is seen rather as a brand appeal
indicator. Finally, the company increased the number of models in the product range and
Source: Ferrari Annual Report 2018 accelerate the cars launch rate as part of the strategy. The latter has been decided upon
the knowledge that a significant part of demand, in the luxury cars sector, is driven by new
product lunches, in fact, every launch is mean of novelty, exclusivity and excitement.
 STEEP Analysis
What are the external factors which may affect hybrid and e-cars business and particularly the one of Ferrari? To answer this question we have selected the Steep Analysis’ tool that it is
composed in 5 macro-areas presented below:

Political/Legal Factors:
1. European Ecobonus and other incentives for customer in order to buy hybrid or e-cars are spreading all
over the world. (+)
2. Fiscal incentives in EU, US, China, India and Canada for vehicles’ and chargers’ manufacturers. (+)
3. Grater CO2 emissions restrictions and mandates requiring that manufacturers sell minimum share of
zero or low emission vehicles. (-)
4. Geopolitical tensions such as USA-China Trade war and Brexit. (-)

Socio-cultural Factors:
5. Urbanization. (+)
6. Constantly increase in demand for high performance and low emissions luxury cars. (+)
7. Increasing awareness of an eco-sustainable world (climate changes and pollution issues). (+)

Economical Factors:
8. Development of the economic system of China and USA that are the major buyers. (+)
9. High costs of purchase for clients. (-)

Ecological Factors:
Comment to the distribution chart:
10. Compliance to environmental protocol in order to keep the global temperature rise not over 1.5°C. (-)
In the graph above, there are the main factors that affect the industry in which
Ferrari operates. It shows on the X-axis the impact of the external factors and
Technological Factors: on the Y-axis their probability of occurrence.
11. Battery cost efficiency for EV segment. (+) Factors on the right can represent good opportunities for Ferrari so as to enter
12. Low range of anxiety and long time to recharge. (-) in the e-car business and to attract more customers (1,2,5,6,7,8,11,14).
13. EV’s recharging infrastructures are still underdeveloped. (-) While those on the left can be considered as threats inside the e-car business,
14. Oil dependence for hybrid vehicles. (-) others that would impact the company if it does not pursue the e-car business
and finally, a global concern to take care of (3,4,9,10,12,13).
 VRIO Analysis
Once we have analyzed the external causes that can affect Ferrari business, in order to define the strategy, we have to understand which are the resources and capabilities of the Italian
company. The foundations of the long-term (defendable) competitive advantage of a company are represented by its strategic capabilities and resources. The VRIO model is an analysis carried
out to know about the internal strengths and capabilities of Ferrari in terms of value, rarity, inimitability and organization to capture value.

Resources/Capabilities Valuable Rare Inimitable Organized to capture value Competitive advantage implications

Sustainability V Realized a competitive parity

Diversification of the
V Realized a competitive parity
product portfolio

Patents & technological

V V V Realized a competitive transient
know-how

Global footprint V V V V Sustainable competitive advantage

Trained employees V V V V Sustainable competitive advantage

Design & high quality of

V V V V Sustainable competitive advantage
the products

Driving experience V V V V Sustainable competitive advantage

Brand imagine V V V V Sustainable competitive advantage

Ferrari has to exploit its consolidated resources and capabilities to enter in the new hybrid/electric business. The hybridization revolution has a significant impact on every stage of
manufacturing cars, but mainly on the engine and on the aerodynamics of the cars. The development of the SF90 Stradale was a huge aerodynamic challenge. On one hand, the boost in the
power unit’s performance brought with it an increase in the amount of heat energy to be dissipated. On the other hand, it also required the development of new solutions to increase downforce
efficiently and guarantee maximum stability at all speeds and in all driving conditions. The new engine of the SF90 Stradale, that is a front-mid-engine, is the best solution for the hybrid
technology: keep performance high and in addition has a flexible wheelbase suited to a variety of engines. Furthermore, in order to be more competitive in the e-car business, Ferrari could
make new strategic partnerships especially for batteries and components for future hybrid/electric models. Finally, it can be a very important incentive the involvement of Ferrari’s customers
in the current community.
 SWOT & Strategy

• Ferrari has to keep pace with the increased output productivity and rate without compromising on quality, thus continuing supporting and investing manufacturing system’s flexibility
and innovation
• The company has to implement the hybrid transition in the best way. This in regard to the production system as to R&D activities as to the value proposition offered, that needs to
satisfy clients regarding both innovation and product characteristics
• The exclusivity – status symbol – strong brand image framework associated to the company, being main source of competitive advantage and success, needs to be preserved, and surely
efforts in enhancing it are significant
• Considering the opportunities offered by new and emerging markets, mainly USA and China, Ferrari has to take advantage of these in the best possible way. This plan needs strong
investments, both from the financial and effort points of view, and the preservation of Ferrari’s strong brand image throughout the all expansions
 Segmentation by customer
The flow of our work passes through the customer consistent with Ferrari’s customer-centric way of doing business. Therefore, we focus on the client presenting a segmentation analysis and
explaining how is his experience and how to reach him with the marketing mix.
Ferrari target market is the luxury performance cars market. It consists of the healthiest people commoned, particularly for Ferrari, by the passion for driving, performance and exclusivity.
Given this, we want to better understand from whom the target market is composed and so we conducted an analysis by segmenting the customer base. We used a segmentation by customer
approach in order to know better the customer by identifying his characteristics, behaviours and needs. This leads to more efficiently focus marketing actions and to enhance the value
proposition offered, thus improving customer satisfaction. The table below reports all the detail founded and it is the basis upon which our customer-centric analysis is done, in line with
Ferrari’s customer-centric way of doing business.

Approach Type of Characteristics Variables

Socio-demographic
Customer Characteristics
Customer Behaviour
Customer Needs
Segment age 25-49 and 50+. Executive/management, Owner, Professional specialist
Primarily male Healthiest social class
High income
Strong background, celebrities
Worldwide
Geographic
Mainly cities
Interested in luxury performance cars Focus on maximum technological content
Psychographic
Ferrari enthusiasts Environment pollution responsible & climate change awareness
Leisure vehicle to be driven on race tracks or on weekends Probably multi Ferraris owner
Product Usage Little travels in city centers
Second-third owned vehicle
Low frequency of purchase Loyalty to the Ferrari brand
Network of 180 authorised, trained and specialized dealers The buyer enters an exclusive club: private invitations, viewings,
Buying process
75% repeater customers opportunities and future purchases
Premium customer involvement in Taylor-Made process Multiple and elevated post sales services
Performance, driving pleasure & uniqueness Enter the innovative hybrid world with the performance and
Drive a Ferrari as a passion driveability of a Ferrari
Distinction & elevation symbol Safety and reliability
Benefits sought
Privileged community membership Less polluting user
Possiblity to become a tailor-made customer Exclusivity & elegance
Ferrari heritage Customization
 Nested approach to segmentation & Customer experience
The nested approach to segmentation (Bonoma & Shapiro Model, 1984) consists in organize five general segmentation criteria (Demographic, Operational variables, Purchasing approaches,
Situational factors, Personal factors) in a nested hierarchy. The methodology enables to analyze the target segment moving from the most general characteristics to the most specific and
elaborate ones. It enables us to systematically identify the factors upon which build our marketing strategy, and, in particular, it allows to clearly discover the Ferrari customer.

DEMOGRAPHIC VARIABLES BUYING PROCESS

Segment age 25-49 and 50+ Low frequency of purchase
Primarily male Network of 180 dealers in 52 countries
Worldwide 1-to-1 buyer-seller relationship
Interested in luxury performance cars Trained and specialized dealers
PERSONAL FACTORS
Executive/management, Owner, Multile & elevated post sales services
Privileged community membership
Professional specialist, celebrities Customization
Drive a Ferrari as a passion
OPERATIONAL VARIABLES SITUATIONAL FACTORS Being an innovative and eco-friendly user
High Income Driving pleasure & uniqueness without giving up the performance and
Environment pollution responsible & Possiblity to become a tailor-made customer driveability of a Ferrari
Climate change awareness Distinction & elevation symbol
75% repeater customers Exclusivity & elegance
Focus for maximum technological content Safety & reliability
Ferrari enthusiasts Entering an exclusive club: private invitations, viewings,
opportunities and future purchases priority
Ferrari Heritage
Customer experience
Customer experience delivered from Ferrari must match the value of exclusivity, status-symbol, Awareness, Reputation, Purchase Experience, Beliefs
craftmanship, heritage and design excellence incorporated and transferred by its cars. Ferrari’s Relevance & Repurchase advocacy
head of customers: “Are our customers buying a product? No - because we’re not selling a & Active consideration & Engagement
product, we’re selling a dream. And our customers, when they approach Ferrari, they have
uncompromising needs” (Sept. 2019). In order to meet those needs, the company implemented,
across the entire dealership network, a new data analytics CRM platform developed by Oracle
Consulting. The platform enables to share data on owners and their vehicles, to triplicate the
amount of users reached, and generally to enhance marketing, sales and post-sales. Customer
reach and engagement are vital for Ferrari, in fact, 60% of annual revenues come from repeat
customers.
 7Ps: how to reach the customer 1/2
Product
Ferrari’s core product is a vehicle of high performance, is a statement of class and elegance, it is able to
originate unique driving emotions, is a symbol filled with heritage and passion, and is as versatile as
comfortable. Ferrari engines are globally at the top level as the architecture and technology implemented
together with them. The company, being one of the world’s most important luxury brands, offers also a wide
range of luxury goods and lifestyle categories.
Important services directly delivered to his clients are the customization ones. From the Carrozzeria Scaglietti
Program, through Ferrari Genuine and Ferrari Tailor Made projects, and till the maximum level of
customization, that is the One-Off program, the company provides a unique and high customization service in
order to reach the maximum level of customer satisfaction, engagement and loyalty. Finally, Ferrari delivers,
through a global network of facilities, post-sales services as the program of road assistance and recovery, and
of general maintenance.
Place
Ferrari distributes his vehicles through a network of 170 authorized dealers
across 62 countries from Europe, mainland China, the Americas and Rest of
APAC. Each dealer is carefully and precisely selected, based on reputation,
financial stability and track records, in order to preserve the Ferrari brand
integrity and ensure high clients satisfaction. Others point of sales include
two ateliers, located in Maranello and in New York, and the 2 Tailor Made
Centers in Shangai and Maranello. These are facilities where the
personalization programs are offered to the client. Finally, Ferrari has its own
online store on its website.

We want to give an insight on the product in order to better explain Ferrari’s value proposition.
First, is important to outline the main differences between the two principal segments of Ferrari’s product Electric power [kW]
range: GT and Sport. The former is characterized by a focus on style, driving emotions, elegance, versatility, 900
more refined interiors, and comfort on board. The GT segment is enabling Ferrari to relevantly expand the 800
customer base and is rapidly growing (+157% from 2013 to 2018). The Sport segment instead is the 1
700
embodiment of higher performances and driving emotions, in fact Sports cars include F1 derived technology 2

Total Power [kW]

such as track-oriented HMI or KERS. Performance and aerodynamics drive the design and the architecture of 600
4
these vehicles. 500
5
Ferrari’s value proposition has been definitively enlarged and changed with the introduction of the SF90 400 3
Stradale in 2019, as it is the first hybrid vehicle (excluding La Ferrari that is in limited edition) produced. The 300
company is undertaking a hybrid transition in his product portfolio, in fact it estimates to reach 60% of hybrid 6
200
engines on the total engine production by 2022. Hybrid technologies will be implemented in GT and Sport, and
100
the combination with the Ferrari’s features discussed above could result in one of the strongest value
0
proposition on the luxury hybrid performance cars segment. This is already comprehensible considering that
- 200,00 400,00 600,00 800,00 1.000,00 1.200,00
incredible performances - is the most powerful Ferrari production car in history with 1000hp - state-of-the-art
aerodynamics, most advanced technologies besides derived from F1, are some of the key features of the first Price [k€]
PHEV produced by Ferrari.
The graph want to represent the actual situation of the luxury PHEV performance cars. The analysis is centred (1) Ferrari SF90 stradale; (2) McLaren P1; (3) Honda NSX; (4) Porche Panamera T s E-Hybrid; (5)
on the product, as the two variables are total and electric power, and take into account also the price. A crucial Polestar 1; (6) BMW i8.
figure is that SF90 Stradale is offered at an extraordinary price compared to the others same power vehicles,
and that it outperformes 5 out of 7 rivals in terms of total power which is a key driver for performance.
 7Ps: how to reach the customer 2/2
People
Human capital plays a key role in Ferrari’s success, strategy and creation of long-term,
sustainable value. Strong expertise, passion and deep commitment are shared factors
among Ferrari’s employees. The company constantly search for excellent talents, invests
in human capital (+4% training hours in 2018) and evaluates employee satisfaction. The
Formula Uomo program, the Graduates Project, training and skill-building activities, are
examples of Ferrari’s commitment to enhancing this crucial factor.
Promotion
Main marketing and promotional activities concern the racing world through which
Ferrari targets both the general public and existing and potential customers. The huge
audience gathered from Formula 1 races and the importance in consumers’ minds
occupied by the racing heritage, enthusiasm and passion, are some pillars that sustain
Ferrari’s great attention and effort in this channel of promotion and in Formula 1 World
Championship participation. Additionally, the company is active in promotion activities
through targeting with its official website, search marketing, digital advertisements and
direct mailing. The latter is seen in a sense of luxury because targets a selected list of
customers, giving them more details and insights. Besides, Ferrari takes place in motor
shows and other automotive events across the world. Finally, Ferrari brand merchandising
plays a very important role in promotion as the affirmed and strong word of mouth, too.
Processes
R&D, innovation and constant pursue of cutting edge technology represent a relevant part
of investments (e.g. 550 CapEx 2017 between new vehicles development and hybrid
implementation) done by the company in order to reach the best flexibility and
adaptability to market development. The customer is a centric element from product
development to post-sale activities, and this allows creating the most suitable products,
thus the best customer experience
Pricing
Pricing strategy is tailored on the niche segment that the company targets, that is the
luxury performance cars market segment. It includes sports cars andT cars, equipped by
engines producing more than 500hp and priced from €1500000 (VAT included) by
definition. Actually the price ranges between 222.695€ of the Ferrari 488 GTB to
326,400€ of the Ferrari 488 Spider. The relation between supply and demand is managed
by the company mainly considering his brand exclusivity and premium pricing. In fact,
Ferrari purposely keeps volumes lower than demand. From this differentiation strategy
derived high margins that are the core element of business profitability. This exclusiveness
is mainly possible thanks to the unique brand strength, key factor if we take into
consideration the competitive scenario. The price of GT segment’s vehicles are lower than
Sport’s ones but, considering the hybrid transformation that is going on within the
company, the average price of both segments will be higher compared to non-hybrid
vehicles. This is principally due to higher costs of hybrid technology and its
implementation.
Physical evidence
Excluding the aforesaid promotion elements, Ferrari increased the interaction with
customers with 18 proprietary stores and 17 franchise stores through which Ferrari-
branded products are sold. The factory in Maranello, 2 museums located in Modena and
Maranello, Ferrari World and Ferrari Land Portaventura, theme parks respectively located
in Abu Dhabi and near Barcellona, and dedicated smartphone applications are means for
deepening customers involvement. Additionally, the company organizes a number of
private and public client events (eg Ferrari Owners Club and Formula 1 Club), and driving
events (Esperienza Ferrari, Corso Pilota, driving courses, Corse Clienti, Ferrari
Cavalcade, XX Programme and F1 Clienti activities). Furthermore, the Ferrari Classiche
department, together with the Officina Ferrari Classiche program, aims to provide
expertise, help and services to owners of historic Ferrari vehicles. Finally, co-branding
activities (e.g. Puma), social media presence, the Ferrari Magazine, partnership with other
companies (Shell, Bridgestone etc.), multiples Brand value and recognition’s activities
throughout the world, are all means for enhancing customer loyalty and promoting Ferrari
across the world.
 The Ferrari Brand
Let’s present the main features of the Ferrari’s brand:
• The strength of the brand is a vigorous driver for competition in the luxury performance cars market, among other main factors (appeal of the product in terms of performance, styling,
novelty, innovation and innovation; price; the total cost of ownership).
• Being one of the most powerful factor driving customers’ mind and purchase actions.
• Being one of the most powerful (awarded an AAA+ brand rating together with only other eleven brands – Brand Finance 2019) and recognizable brand in the world
• Ferrari, knowing its brand global position is constantly engaged in brand development and protection activities such as initiatives for clients and fans, licensing contracts with selected
partners to develop merchandize products sold in proprietary direct stores, franchising and on website., and creating Ferrari museums, stores and theme parks.
• Being one of Ferrari’s biggest strengths, as shown in the SWOT analysis, and competitive advantage sources.
• Identifying Ferrari as a brand-guided company thus taking into account that “Brand-guided companies outperform their rivals, thus achieving above-industry average results” (Booz Allen
Hamilton, 2005).
Considered these factors, we evaluated relevant to give a more detailed and focused view of the Ferrari Brand by developing a brand identity prism and doing a brand equity analysis.

Developed by Jean-Noel Kapferer in 1986, the Brand Identity Prism is a tool for defining
a company’s brand identity including six elements: physique, personality, relationship,
culture, reflection and self-image. Expressing the brand through all six areas enable to
assure that the brand creates a coherent image in the minds of the customers. This brand’s
feature is essential to successfully communicate brand values to the customer over time.

Ferrari Brand Value

Brand value and Brand Equity (discussed in the next slide) are both estimations of how
much a brand is worth.
The former refers to the financial value of the brand. Even if it is an intangible asset, it is
possible to measure looking inside the business and outside on the market. In this way, we
adopted the measurement method proposed by Interbrand. It takes into account the brand
strength, the economic profit generated by the brand, and the role of it in the purchase
decision.
In the Best Global Brand 2019 ranking, Ferrari ranks 7th considering the automotive
industry and 77th in the top 100, with an evaluation of 6.458 M$ (+12% from 2018).
 Ferrari’s brand equity
• Brand equity refers to a premium value that a company generates from a product with a recognizable brand when compared to all the other brands available in the market. It develops and
grows as a result of a customer’s experiences with the brand and is something that transcends from the product or service itself.

• Ferrari has highly positive brand equity and this is the source for several advantages. Firstly, Ferrari charges a premium price on its vehicles that increase profit margin per customer, in
fact, clients are willing to pay more thanks to the high level occupied by the Ferrari brand in their mind. Secondly, customers gravitate toward products with a great reputation. Every
time a new vehicle is released, a great audience of clients and global attention is gathered around it, leading to a ricursive cycle of brand reputation rise. A key advantage implied is
customer loyalty. Ferrari’s clients are willing to stay loyal, even in face of eventual missteps or imperfections, as is shown by the fact that 75% of a new vehicle’s clients are repeaters.
Actually, Ferrari brand is driven by customers’ loyalty over time itself. Positive brand equity can facilitate a company’s long-term growth by enhancing expansion in new markets and
geographic areas. Ferrari strongly relies on his brand in planning his expansion in new markets, e.g. China, and the leverage potentiality importance of his brand for enlarging his
customer base. Besides, suppliers recognize Ferrari’s brand exclusive position in people minds, thus are willing to offer their best and create the strongest bond with Ferrari. The latter
benefits of higher bargaining position due to this fact. The same factors positively affect Ferrari’s relationships with labs, universities, research centres and institutions, hence enhancing
the external network of the company.
• We adopted the Brand Equity Model by Keller, also known as CBBE (Customer-Based
Brand Equity), to analyze how Ferrari built one of the strongest brands in history. The
concept of the method is to build a strong brand by understanding the customer base’s
experience about your product (thinks, feelings, beliefs, opinions and perceptions). The
pyramid is composed of 4 steps that represent four key questions that customers will ask,
often subconsciously, about the brand and each question refer to a particular brand
feature (Identity, Meaning, Response, Resonance).

• The association with the success of the Formula 1 racing team, Scuderia Ferrari, is a
main driver behind Ferrari’s strong brand image. Being the most successfull motorsport
racing team and continuing in performing very well in Formula 1 races gives to Ferrari
an important drive for future success. Actually the linkage is the starting point of the
entire Ferrari history, in fact, it began in 1947 with the Ferrari 125 S, a racing car.
Ferrari’s origins are inextricably linked to Enzo Ferrari’s race passion and this heritage
underlined the company growth till now and is a key sensation and emotion that every
customer feels in purchasing and owning a Ferrari.
 The Ferrari Eco-events: the concept
We have been asked to respond to Ferrari needs of developing an innovative, suitable Life Cycle marketing pillars for its new hybrid technology. We think that our idea of operational
marketing has to start taking into consideration the following inputs:

Luxury Exclusivity Performance Sustainability Strategy

Our idea is based on a series of half-yearly events called “The Ferrari Eco Event” that they will take place where Ferrari is born: Maranello and its objective is to be the link among these five
elements.
Let’s analyse how can we gain…
• Luxury/Exclusivity?: The event can only be accessed by invitation. The people who can participate in the event are the one that already owns a Ferrari car or the one that are on the waiting
list. Our idea wants to focus also on the importance of being a member of the Ferrari Family, we want to make the guests feel the exclusivity and luxury to be part of it.

• Performance?: During the event is possible to visualize the new Sport and GT models of Ferrari (the hybrid and in the future the electric) and to test them in the Maranello’s track. The
guests can feel and try the new driving experience and the performance of the hybrid/electric technology.

• Sustainability and Strategy?: These series of events have 3 main purposes that are linked to Ferrari’s strategy:
1. To strengthen the Ferrari customer community, especially creating one who cares about environmental issues. These events want to transmit to the customers the hybrid/electric
revolution which is beginning to happen inside Ferrari’s DNA.

2. As the Maranello’s firm is launching more cars’ model compared to Marchionne’s era, Ferrari can exploit the power of these events to present its future hybrid/electric models in
order to fir Ferrari’s challenge.
 Structure & Business plan of the event
The Ferrari Eco-event will take place in the same location where there was the world premiere of the SF90 Stradale. We believe that at the first event there will be almost two thousand of
clients or slightly more (as there were at the SF90 Stradale’s launch), therefore we suggest that it has to last 3 days in order to manage in the best way the clients’ affluence.

The speech The presentation & The driving experience Structure:

showroom The event is opened with a speech in which the main topic is sustainability. The top
management of Ferrari will explain in details new goals of the company as far as
sustainability is concerned, for example future reduction of CO2 in the manufacturing of
new cars or new partnerships with eco-friendly firms. In this first part of the event, the
House of Maranello will launch new hybrid and future electric models. Indeed this event
has two purposes during the speech part:
1. To let client know which is the direction of Ferrari sustainability position and new
commitments.
2. To present new models in order to meet the pillars of the new strategy.
Between the first and the second part of the event, it will be prepare a buffet of international food and beverage, this is a moment where the guests can share their ideas and thought each other.
In the second part of the event, the guests will have the possibility to take a closer look at the new models presented during the speech part. Our idea is to create a showroom where there will
be exposed new and old models of hybrid and electric cars in order to show the customers the evolution of Ferrari’s design, technology and the research behind such high-performance cars.
Finally it will be possible for a restricted set of guests to test in the Maranello circuit the new hybrid/electric models before launched. We think that this final part can conclude the journey of
the customers that they started when they took part in the event. They can have a complete vision of what is the mission of Ferrari as regards sustainability and they will have a unique
experience of understanding and testing the product.
As the result of our analysis done in the previous slides, especially in the brand and customer section, as far as we are concerned we believe that it is necessary to strengthen the community of
clients and this is the reason we create this kind of event

Business plan:
Our idea has the objective to minimize the expenses, indeed we think that the choice of Maranello can avoid costs of location and can minimize logistic costs of cars transportation. So the
main cost drivers are:
• Labor costs due to the preparation of the event.
• Management costs for the guest’s affluence including food and beverage.
• Sponsorship of the event.
Finally, as far as revenues are concerned we think that the only immediate revenue driver is the one the guests will pay to book the driving experience, but the real purpose of this event is to
generate revenues focusing on the long term perspective. Indeed this event wants to astonish and to fascinate customers in order to make them purchase the new hybrid and future electric
models.