From the quaint lanes of Maranello, Italy, the iconic red car with an engine sound similar to the roar of a metallic wildcat, and a visual appeal that inspires the feeling of a beautiful Christmas morning, rages onwards into the World representing Italian history, the heritage, a sense of belonging and the hopes and dreams of the Tifosi — the most vocal and loyal fans of Scuderia Ferrari spread worldwide.
Enzo Anselmo Ferrari built the luxury sports car brand to follow his passion for motorsports. He set up his business and gave it his surname — Ferrari. Enzo Ferrari was always interested in producing the world’s best sports car. He was not interested in road cars and went ahead to create Scuderia Ferrari in 1929. It was purchased by Alfa Romeo at the time and used in racing. Alfa Romeo is recognized for producing sports cars that are only intended for gentlemen drivers.
Ferrari is one of the world’s most recognizable luxury performance sports vehicle brands, focusing on the design, engineering, manufacture, and sale of the most identifiable luxury performance sports automobiles in the world. It is a brand that stands for exclusivity, innovation, cutting-edge sporting prowess, and Italian design and engineering. Ferrari has grown into one of the most influential brands in the world thanks to its marketing strategy of nurturing and increasing brand value, as well as the exclusivity and desirability that comes with it, during the previous 80 years. All of this has assured that by selling a limited number of vehicles, it has geometrically enhanced the attractiveness of having a Ferrari in their garage, and thus the price that potential consumers are ready to pay. So, it appears that selling fewer units benefited the brand and its shareholders (Public (67.09%), Exor N.V (22.91%), and Piero Ferrari (10% )).
Ferrari has gone a long way in its over 80 years on the market. It used to be solely focused on racing cars. It has focused on road cars since 1969, designing some top-of-the-line models. The cars are, of course, outfitted with cutting-edge technology and amenities to provide maximum comfort while traveling. It takes on the meaning of wealth and gratitude. It was after the production of the fastest racing car, the F60, also known as the Enzo, Ferrari has introduced a number of high-end road cars, including the LaFerrari, Dino, Lusso, Portofino, and many others. It currently produces Grand Turismo Berlinettas, Grand Turismo Coupes, and Grand Turismo Spiders. It also makes supercars and is recognized for producing one-of-a-kind unique editions of its cars for wealthy clients.
Core Branding and Marketing Strategy — The Ferrari Way
- Controlled growth in developing and developed countries: Ferrari has a low-volume production method, which allows it to maintain exclusivity while taking into account shifting market dynamics and socioeconomic changes across the globe.
- New models and improvements are added on a regular basis: Launching at least one new model every year, as well as designing and launching limited edition cars that cater to the client’s need for customization, has helped the company stay ahead of the competition all these years.
- Formula One racing: Scuderia Ferrari, the Formula One racing team, is closely associated with the firm. It has positioned itself as one of the premier teams in Formula One.
- Expansion in luxury and lifestyle categories: The company is collaborating to extend and develop a variety of luxury products and lifestyle categories that provide clients with a sense of exclusivity by complementing it with sports automobiles targeted at strengthening the brand image.
The Brand of Scuderia Ferrari
Ferrari has pretty much nailed it when it comes to fundamental branding. The three crucial ingredients in a successful branding recipe are brand identification, brand communication, and customer requirements, which the company has successfully attributed to Scuderia Ferrari, the company’s F1 racing division. The team has won 224 Grand Prix events, 16 Constructor World Championships, and 15 Drivers’ World Championships since 1950.
Scuderia is an Italian word that means “horse stables,” and Enzo Ferrari wanted to bring the “racing stable” to the people by allowing owner-drivers to participate in races. Enzo Ferrari’s and now Ferrari’s “passion for competition” is the thread that ties the Ferrari tapestry in “One Brand, One Range” from the stables to the racetrack. A Ferrari’s performance on the racetrack and on the road, in the competitive spirit, is not just quick, but faster than the competitors. Scuderia Ferrari is the source of design inspiration for all Ferrari road cars. The word “Ferrari” connotes a strong familial bond that promotes the brand’s principles. Ferraris, it is believed, are not advertised on television because people who can afford them do not sit at home all day watching television. It, on the other hand, does not advertise at all. That is, it does not advertise itself in the conventional sense. Instead, it uses victory in the Formula 1 Grand Prix to promote itself.
Scuderia Ferrari, the Formula One team, is the oldest surviving team in the Grand Prix. For those who don’t know their Formula One from their shift key, “formula” refers to a set of rules that all participants must follow, “1” refers to the highest level of single-seat auto racing sanctioned by the Fédération Internationale de l’Automobile (FIA), and “Grand Prix” means “Great Prizes.” The Grand Prix is a series of events with a points system that decides the World Championship winners for both drivers and constructors. With F1 cars capable of lateral acceleration in excess of 5g (fighter jet pilots are not permitted to operate above 9g) and speeds of up to 220mph (360kph), the technological capability of the cars is reliant on electronics, aerodynamics, suspension, and design to provide winning performances. Ferrari has the most title winners of all the teams racing in Formula One today. During Michael Schumacher’s tenure, the team also had the most consecutive years at the top: 5 years from 2000 to 2004.
Because Formula One is the greatest level of racing, it is the best media for communicating the brand’s promise of high performance. Ferrari takes all of the technological and design characteristics of F1 cars and applies them to road cars, resulting in a premium performance for everyone who invests in one. With Ferrari (and Mercedes) being the only teams in F1 to build both engine and chassis in-house, the promise of matching good performance from F1 to road cars is well-founded, and it matches Enzo Ferrari’s desire to give owner-drivers “a racing car for the street”.
The Prancing Horse Logo
There is a common notion that branding is only about logos, however, branding is all about how a product interacts with people. Every ‘touchpoint’ is another opportunity to communicate brand values, therefore consistency is crucial. The Ferrari logo is made up of two parts: content and colors.
The origins of the Cavallino Rampante (Prancing Horse) are heroic. It was Francesco Baracca’s personal emblem during WWI when he was Italy’s most accomplished airman. Baracca was a Cavalry Officer before becoming a fighter pilot, and his plane’s fuselage was painted with the Cavallino Rampante. The Baracca family offered Enzo Ferrari the opportunity to use the insignia for the Ferrari trademark after his death, which he accepted. However, the Cavallino Rampante represents more than only Baracca’s valor and achievement; it also represents Enzo Ferrari’s heritage, as he served in the 3rd Alpine Artillery Division during WWI, with horses providing the army’s artillery and cavalry with force before it was mechanized. It also serves as a visual reminder of Enzo Ferrari’s desire to bring driver-owners onto the racetrack (ref. stables).
The logo’s colors convey a similar message. The Ferrari logo is predominantly Modena Yellow, the birthplace of Enzo Ferrari, where the company was founded, and where Francesco Baracca received his military training. While Ferrari cars are traditionally Red: “the color of blood, the color of passion, the color of love”. This color combination emphasizes the concept of history, legacy, and belonging. Sitting atop the logo are the colors of the Italian flag: Green, White, and Red. Ferrari’s logo is very meaningful if a logo is a visual expression of everything a corporation stands for. It symbolizes boldness, a competitive spirit, a strong desire to succeed, and familial heritage. Ferrari’s promise to its customer base is based on these values, which have promoted over 80 years of expertise in engineering and driving performance.
Promoting Brand Awareness
Some of the main tactics used by the Ferrari branding and web design team to successfully market itself include:
- Targeting — Every day, tens of thousands of people visit the official Ferrari website. Ferrari’s marketers are able to determine whether visitors’ behaviors match those of targeted consumers using modern tracking tools. Following the identification of targeted consumers, Ferrari places banner advertising on other websites targeted at that clientele in order to entice them back to the website.
- Search Marketing — When users search for Ferrari-related content on Google, the business uses this data to serve up relevant advertisements that direct them back to Ferrari’s landing sites. These landing sites are specifically designed to emphasize a Ferrari feature, such as their 7-year authentic maintenance package.
- Display Advertising — Ferrari has also created one-of-a-kind and visually appealing digital advertisements that appear on relevant websites with the appropriate content and to the appropriate audience. All of their advertisements and landing pages are designed to reflect Ferrari’s aesthetic appeal while being impeccably functional and successful.
- Direct Mail — Traditional marketing strategies are also used by this big brand to portray a sense of luxury. The company reaches potential clients through direct mail after compiling a list of names. This classic marketing tactic is intended to reflect Ferrari’s outstanding quality and customization, as well as provide potential buyers with a better understanding of the complete Ferrari experience.
- Exclusivity and Deprivation Marketing — Ferrari’s high-performance supercars are extremely rare and only offered to the wealthiest individuals. The company has a tiny number of exclusive dealerships in 52 countries and is proud of its employees, who are proud to be affiliated with this supercar brand. Through deprivation marketing, the customers are made to wait for their Ferrari, thereby creating demand amongst them.
- Merchandising — For individuals who cannot afford a Ferrari, the company has turned to merchandise and market relationships with companies like Oakley and Microsoft XBOX to raise brand awareness. Ferrari merchandise ranges from model car collectors to Ferrari branded luggage, sunglasses, watches, and gaming gear, allowing the general public to access and engage with the brand. This is a subtle allusion to the fact that not all car enthusiasts are members of the rich elite; car aficionados, much like Enzo Ferrari, come in all ages, creeds, socioeconomic backgrounds, and genders. Much like the two current F1 drivers of Ferrari — Charles Leclerc and Carlos Sainz, every other person owning a Ferrari product is the face of the brand.
- The Ferrari Restaurant — There is a restaurant in Maranello serving Emilian cuisine called Cavallino, for consumers to experience the Ferrari taste. It reinterprets the spirit of Ferrari within the walls of the original restaurant, established by Enzo Ferrari in 1950. Totally transformed and revitalized, the restaurant is inspired by Ferrari’s values: the union of technology and craftsmanship, quality, and performance.
Ferrari’s challenges throughout the global pandemic and the brand’s future plans.
Consistency and genuineness are two crucial characteristics that have contributed to the brand’s long-term viability. Ferrari’s principles, unwavering pursuit of excellence, and sense of belonging with a wide range of stakeholders at all levels have all remained critical parts of a brand that can remain relevant and contemporary throughout time within this framework. Ferrari demonstrated during COVID-19 that, even in the uncharted environment of a global pandemic, the brand’s ability to react, giving answers and solutions far beyond the norm, is a core component of the brand’s DNA. The early introduction and ongoing evolution of Ferrari’s Back on Track initiative, which provides a safe working environment for all of the company’s employees, has become a model for other countries to follow. Furthermore, Ferrari’s contribution to the local community through client and direct sponsorship reaffirmed the company’s long-standing socially conscientious stance. It is definitely planning to carve out its own distinct and leading position amid the industry’s changing dynamics. Electrification progresses, and the first hybrid (SF90 Stradale) is now part of the larger offering. The carbon footprint is undoubtedly on their minds, and it will remain so in the coming years. The ever-increasing notion of customization is already a part of a tight relationship with the clients, and the Tailor-Made programme makes it a reality. This is a significant trend that they believe will continue in the coming years.
Brand Review
Thousands of fans, proudly referring to themselves as the Tifosi, wearing Rossa Corsa or Racing Red and waving Ferrari flags may be seen at every Formula One race. Despite the fact that the majority of these people will never buy or experience a Ferrari product, their emotional attachment to the brand is unrivaled. Ferrari’s achievement in the last 80 years is truly extraordinary in terms of forging strong emotional bonds with its followers and customers.
How can Ferrari create an emotional connection with its supporters that defies logic? It’s simple: they respect people who excel at the activities they enjoy the most. Ferrari’s enthusiasm for speed, racing, and design is adored by millions of motorsports and racing fans all over the world. Its 80-year legacy of outstanding performance in motorsports, particularly in Formula One, is a major contributor to the mystique. The Ferrari brand is not just renowned, but it has also come to symbolize the triumph of Italian pride. The story-telling side of branding is very strong, and Ferrari has done an outstanding job of exploiting its success in motor racing to create an emotional connection with its audience.
Ferrari has also made excellent use of its brand equity. Its revenue is no longer derived merely from the sale of sports vehicles or the winning of races. Ferrari has generated new revenue sources that exist solely as a result of its brand. Its licensing and retail division, for example, has become a model for sporting franchises all over the world. In fact, Ferrari admits that licensing its name, badge, and prancing stallion insignia generates roughly half of its revenue. It’s known as “soldi trovati” or “found money” at Ferrari.
Ferrari’s success cannot be defined in terms of revenue, sales, or market capitalization. The success of Ferrari must be judged in terms of brand equity and value. It is now more to do with the emotion that is “we are Ferrari” or #essereFerrari.
