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The sports car brand Ferrari when focused, I analyzed their success and marketing strategies in different markets, one the German and second Italian market and worldwide. For information I used business theories such as the product life cycle, marketing mix, analysis of positioning and segmentation. These two large economically stable countries are different; Ferrari does not make many differences in the way of selling cars. The company being recognized by its rearing- stallion logo is up to speed. The Italian Co. volume sales to build its status brand by producing 6,400 high-performance sports cars a year, with the initial price about $140,000. GT and sports model include models like Spider, Scaglietti and Ferrari California. The company's F1 model brings Ferrari drivers close to the racing experience. Since 1947, the exclusive cars have been manufactured in Maranello, Italy and sold through strategically selected dealerships. Fiat S.p.A group holds 85% stake in Ferrari , Piero Ferrari, son of Ferrari's founder, owns 10%. Throughout the history of the company it has been noted for its continuous participation in racing mainly on Formula 1 where they have achieved great success. For the growth the company has launched a Ferrari World Theme Park in Abu Dhabi in the year 2010 which is also leading them to gain profits as people are attracted towards it. The sales have been increasing at an increasing rate from 2004-2008, in 2008 they had performed above average with a record breaking sales of above 6587 cars in a year for the first time, as result their turnover increased by 16% while the profit has been increased by ravishing 75%. But due recession hitting in fall 2008, the sales volume drastically fell by 85% in November 2008 (the sales reduced to 92 cars from 600 cars a month). As a result in 2009 there has been a fall in sales, turnover and profit.
The history of Ferrari is incomplete without mentioning that Enzo Ferrari worked for Alfa Romeo from 1920-1929, after which he raced for another 10years for Alfas. From the time he was 12 he knew he wanted to be a race driver, the dream which he achieved at Alfa and adopted the cavallino, or prancing horse, insignia for his Alfa race car. In 1929 Enzo left Alfa to start his privately owned Alfa Romeo racing team known as Scuderia Ferrari in Modena. Scuderia Ferrari did not race cars with the name Ferrari; the Ferrari shop built its first car in Modena in 1937 the Alfa Romeo 158 Grand Prix Racer. The first championship they got was in 1952-1953 season. Ferrari started making sports cars in order to finance his Grand Prix and Le Mans adventures. Ferrari headed the company until he stepped down in 1971 and died in his hometown of Modena. His name is the most famous in motor sports. In 1952 the emblem of the prancing horse was created which is still used today.
THE MARKET ENVIORNMENT:-
The geographical market: - in today's market Ferrari is facing tough competitors like Lamborghini, Porsche, BMW and Aston Martin. To survive in the market the competitors try and make highly innovative designs and high quality performance.
They are in an automotive industry and have a subsidiary type of business and it was started by Enzo Ferrari. The headquarters of Ferrari are located in Maranello, Italy. It had remarkable revenue â‚¬1,921 million (2008). The owners of Ferrari are Fiat group 85%, Mubadala Development Company 5%.
Political: - the environmental protection laws in the company have come out with launching eco-friendly system in the car which will reduce pollution in the atmosphere, which politically will affect the taxation system as the consumer's demand will increase.
Economic: - in the economic conditions Ferrari tries to be successful and profitable at any time because it affects its capital cost and demand. The timing and relative success of the company can be influenced by the economic conditions. The government decision plays an important role in the company's progress.
Social: - it depicts the demand and taste of the consumer demanded by the company which varies with the fashion and disposable income. Ferrari organization should be aware of the demographic changes such as the structure of the population by ages, affluence, regions and numbers working.
Technology: - the company tries to launch the latest technology for its automobiles as a competitive advantage for itself but it should keep in mind that technological breakthroughs can create new industries which might prove a treat to itself. On the other hand new technology could provide a useful input, in both manufacturing and service industries.
The main competitors: - in the market of Ferrari the competitors it faces are Lamborghini, BMW, Porsche and Aston Martin which has better performance and color and high quality maintenance Ferrari could face tough competition in the following.
Sales and profit trend: - The Middle Eastern and Far Asian sales of the competitive company has increased from 15.0-21.8% and also increased the unit sales from 2406-2430, which means the growth of 1%. The profit reports a decrease in worldwide sales for the first six months of the financial year 2009, in spite of which the company is still maintaining overall profitability among the major markets.
Market Share: - the company car tax efficiency, class-leading residual values and whole life costs have resulted in competitors winning a record share of the UK contract hire and leasing market. The competitors' share of market has reached an all-time high of 8.8%-2.7% points up on the previous results.
Target Markets: - the competitors target market is upper-class people with high level of income. They focus on a person who mostly looks for luxury. In the future automobiles will have tough competition for selling the most environmental friendly vehicles.
Sales and profit trend: - Ferrari announced "a significant increase in both profits and sales" for the second quarter of 2010, driven by the success of two new models, the California and 485, as well as demands for Ferrari 599 GTO. Revenue rose 8.6% year on year to EUR488m Euro and vehicle unit sales were 2.6% up at 1,615 units. Trading profit was up 10% to EUR77m.
Market share: - the company's total sales were 3,226 cars for customers around the world but it was 8% less compared to the year 2008. The market share price was up but was low on sales as the share increased by 10 to 32.8% in 2009.
Business sector: - the company was found in 1947 by Enzo Ferrari in Italy. They had highest sales was in the year 2008 despite seeing the period of recession. It has achieved one of the highest awards which were in the year 1997 (FCA) which was given in the annual meet, it also achieved the Platino Award for its reorganization.
Project focus: - the product of the company is an automobile, the brand name is Ferrari, it has launched models such as- Ferrari 308 GT4, Ferrari 550 Maranello, Ferrari 360 Modena & Spider, Ferrari Challenge Stardale, Ferrari 430 Monza and many more. Their main segment is focused on F1 races. It mostly races in Italian and Australian Grand Prix.