Ferrari Performance Analysis Essay Example

Ferrari Performance Analysis Paper â€Å"Whats red, Italian and goes from 0 km/h to 100 km/h in three and a half seconds? † Ask this from any person on the street and you for sure will hear only one answer â€Å"Ferrari†. It was founded by Enzo Ferrari in 1943, the first Ferrari was built in 1947 and that is when the legend begins. Now it is hard to think of any other car that can make anyone feel more exclusive. It`s not just a sport car you own it`s quality, passion, luxury and status that comes with it. We chose it for our group presentation for all of those reasons and also because it is an outstanding, not usual brand, with a very special marketing strategy and a small group of exclusive costumers. In order to have a clear understanding of company’s position, potential and direction we used many business measurement tools. First of all, PEST analysis, which helped us to get a better idea about macro-environment in which Ferrari operates. By establishing main Political, Economical, Social and Technological factors we were able to assess current market situation, predict future challenges that company will have to face and think about possible solutions for those problems. After analyzing external factors we`ve identified strengths, weaknesses, opportunities and threats (SWOT analysis) in order to understand overall strategic position of the business. In other words, now we were able to evaluate on Ferraris’ internal environment and have a clear view of company’s perspectives, limitations and possible improvement areas. We will write a custom essay sample on Ferrari Performance Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Ferrari Performance Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Ferrari Performance Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer To complete our environmental research we used Porters Five forces to find out about competition in the industry, potential of new entrants into industry, power of suppliers and customers, threat of substitute products Ferrari`s marketing strategy is also something that makes this company very special. This car is a legend in a world of supercars, everyone knows what a prancing horse logo or at list heard of it. However it never used a penny on advertisement. And indeed, have we seen a single advert about Ferrari? So how come we all know about it? To find the answer for this question have become an interesting challenge for our group. To evaluate our answer we used 4Ps theory or marketing mix theory which looks at the product, price, promotion and place, because a successful marketing mix is a base for successful company. The successful use of marketing mix means putting the right product in the right place, at the right price, at the right time. And from what we found in our investigation Ferrari have been doing quite well at that. It managed to produce a unique car, in which every detail is about passion- passion for speed, passion for quality, passion for excludability and luxury. Having a Ferrari is like having a piece of legend. So, here we have a unique product. Further Ferrari pricing strategy is a marketing masterpiece in itself. â€Å"Luxury sets price, price does not set luxury† ( Daye D. , 2010) -this phrase fully demonstrates Ferrari pricing principles. They know what is the right price for the product they offer as you don`t buy just a car, you buy status and quality. Next step, promotion. And here is where we found an answer for the first question that made us so passionate about this topic. To promote their product they simply did what they were best at doing- racing and building an ideal car for speed lovers. Such a simple but such a genius marketing strategy with passion going through its` every detail. Also the company have developed a market of merchandising that helped to expand the brand and increase customer awareness. And finally- the right place†¦ Ferrari is the most valuable exponent of the top quality Italian and German showrooms. No one but exclusive customers can enter these showrooms and this again shows company’s targeting principles- do not waste time on anyone who is not a potential customer. After using 4 Ps theory we`ve learned about main principles of the company and had a better knowledge of the way it works. We also found (From PEST and SWOT analysis) that as any company Ferrari faces some challenges. And that is why after finding enough information we tried to recommend some ways to resolve those problems. Our solutions are the result of group discussions as well as good individual research. We`ve made some basic recommendations such as: invest more money in CO2 emission problem and research and development in order to stay best in technology. Also one of the recommendations was to collaborate with other exclusive brands to produce even more exclusive Ferrari related products, for example collaborate with Rolex to produce exclusive watches. Those are quite common solution for common problems. However, as a group we also came up with some radical and rand new recommendations such as building a Ferrari hotels where only Ferrari owners would be able to stay or inventing a new brand in collaboration with other popular brand, to make something more affordable to middle classes but with a bit of Ferrari in it. This could help to increase their sales, however some would argue that more profits will come at cost of reputation of Ferrari as an exclusive brand that not everyone can afford. To su m up our group work: every member showed a lot of interest, creativity, passion and initiative. Everyone’s opinion was considered when making a decision and discussing the topic. However, more practice needed to improve our presentation skills: luck of confidence and practice have prevented us from making this topic as interesting to the audience as it was for ourselves. So if there is something that should have been done differently – is the amount of time spent on practice. Other than that I found that doing presentation with the group of people who are passionate about the topic was a great experience. Bhasin, H. (2010). Marketing mix Ferrari. [Online] Available at: [Accessed 1st Dec 2011] Bhasin, H. (2010). SWOT Ferrari. [Online] Available at: ; http://www. oogle. com/search? ie=UTF-8=UTF-8=navclient=1=italy_sports_cars_2006#sclient=psy-ab=en=hp=ferrari+marketing+mix=1=ferrari+marketing+=1=g4==e=0l0l2l134l0l0l0l0l0l0l0l0ll0l0=on. 2,or. r_gc. r_pw. ,cf. osb=12ad4e0eba6dfc1f=1246=636; [Accessed 1st Dec 2011] Daye,D. (2008). Italys Master of Marketing Strategy. [Online] Available at: [Accessed 1st Dec 2011] Fiat Group. (2008). Annual Report. [Online] Available at: [Accessed 5th Dec 2011]. SOS emarketing . (2010). Luxury Marketing . [Online] Available at: [Accessed