Marketing Strategy of

Ferrari and Lamborghini

History of Ferrari
Ferrari - Ferrari is an Italian company which has
produced sports cars since 1947, but traces its
roots back to 1929 when Enzo Ferrari formed
the Scuderia Ferrari racing team. In January
2016, Ferrari officially split off from its former
parent company Fiat Chrysler Automobiles.
The 125 S, as it was known, embodied the
passion and determination of the company’s
founder.
He devoted his entire life to designing and
building sports cars and, of course, to the track.
Having been made an official Alfa Romeo driver
in 1924, within five years he had gone on to
found the Scuderia Ferrari on Viale Trento
Trieste in Modena which assisted mostly
gentlemen drivers in racing their cars.
All racing activities ground to a halt, however,
with the outbreak of the Second World War
and, in late 1943, Auto Avio Costruzioni moved
from Modena to Maranello. The end of the war
saw Ferrari design and build the 1,500 cm³ 12-
cylinder 125 S, which made its competitive
debut in the hands of Franco Cortese at the
Piacenza Circuit on May 11th 1947.
Timeline:

1. 1947 - Ferrari 159 S

2. 1957 - Ferrari 250 California

3. 1967- Dino 206 GT
4. 1977- 308 GTS
5. 1987- Ferrari F40
6. 1997- 335 F1 Spider

7. 2007- 430 Scuderia

8. 2017- 812 Superfast
Founder:
Enzo Ferrari

Founded 13 September 1939; 83 years ago in

Modena, Italy

Key People:
John Elkann, Executive Chairman since 2018

Piero Ferrari, Vice Chairman, Second and only

living son of Enzo Ferrari
Headquarters:

Maranello, Emilia-Romagna, Italy

This is the factory where Ferraris are born.

Housed in the location originally chosen by
company founder Enzo Ferrari in 1947, the
165,000-square-metre plant, in Maranello,
 Italy, produces 8,400 cars a year and employs
1,300 workers

Evolution of Ferrari:
Brand Ambassador:
 Mr. Enrico Galliera, Chief Marketing Officer at
Ferrari

Slogans:

Some of the Ferrari slogans are: "Only those

who dare truly live" and "We are the
competition".
Marketing Strategy:

Ferrari took its exclusivity in marketing

strategy to the extent that even if a potential
customer has enough money to buy a Ferrari,
the company will refuse to sell to them if they
feel that their profile does not meet its
approval. Purchasing a new Ferrari is a
challenging process and almost all the time
requires proof of prior ownership. The
customer is required to show evidence that
they have owned or currently own at least a
used Ferrari.
The ownership of a Ferrari is not just limited to
ownership of the vehicle but also gives the
customer an entry into the highly Coveted
“Ferrari Owners Club.” The Ferrari Owners Club
is an actual club consisting of only Ferrari
owners (be it brand new or used) who get
exclusive invites to extravagant events
worldwide as Ferrari unveils its new models.
The Veblen Effect is the basis upon which all
luxury brands have been built, and Veblen
Effect is a 200-year-old theory that implies that
consumers perceive higher-priced goods to be
worth more simply because they cost a lot
more. As a result, demand of product increases
with increase in price, in contradiction to the
law of demand.
Ferrari seems to be a big believer in this theory
from the inception of its road cars division in
1947 to the present day. The marketing and
pricing strategy of Ferrari points towards a
strong belief in this theory.

Product:
The product strategy and mix in Ferrari
marketing strategy can be explained as follows:
Ferrari mainly manufactures sports cars but
they are also into road cars. All their cars are
high performance and expensive. The first car
to be built was the Ferrari 125 S in 1940. This
was followed by Ferrari 159 S, Ferrari 166 Inter,
Ferrari 166 S, Ferrari 166 Intersport and Ferrari
166 MM. In 1950s they came up with 44
different models some of them are 195 Inter,
195 S, 275 S, 340 America, 212 Inter, 342
America, 212 Export, 250 S, 225 S, 340 Mexico,
250 Europa, etc. In 1960s they came out with
45 different models, in 1970s 16 models, in
1980s 28 models, in 1990s 23 models, in 2000
20 models and finally in 2010 9 models. The
marketing mix product strategy of Ferrari
covers all the cars offered by the company. The
current lineup are F12 Berlinetta, GTC4Lusso,
488GTB, 488 Spider, GTC4Lusso T, Ferrari
California T, LaFerrari Aperta, F12tdf and
LaFerrari. Each car is unique and the designs
are inspirations from sports prototypes Gran
Turismo or Scuderia Ferrari in Formula 1. They
even have the option on personalization giving
drivers a unique experience. Ferrari also has
various models for GT Racing namely 458
Challenge EVO, 458 Italia GT and Ferrari FXX K.
Price:
Ferrari vehicles are mainly targeted at a niche
segment that are willing to pay a high price for
their products owing to quality and brand.

Every Ferrari car has a different price based on

the model and engine type. The prices start
around $170,000 US and the recent model i.e.
Ferrari 458 GTB is priced at $280,000 US. Their
Vintage cars are a huge investment as
maintaining the cars cost a lot of money. Their
value appreciates with time and finally add up
to millions of dollars after some years.

Ferrari Place & Distribution Strategy:

Ferrari dealers are found all over the world:
America, Asia Pacific, Europe, Middle East and
Africa. Currently have around 52 dealerships
worldwide and are expanding to newer
markets. Their merchandise is sold at various
stores all over the world and even online.
Myntra and Snapdeal sell Ferrari merchandise
online in India.
Besides this they have their own online store
on their official Ferrari website.

Ferrari Promotion & Advertising Strategy:

Since the beginning of time Ferrari is involved
in Formula 1 and that is where they acquire
maximum promotion. The promotional strategy
in the marketing mix of Ferrari is very different
from other automobile brands as it is catering
to a very premium niche segment. Owing to
Formula 1 they have immense awareness
worldwide even in places they still don’t exist.
In India particularly where Ferrari is not very
well known they have still managed to acquire
a huge customer base. Besides these, their
merchandising plays a very important role in
promotion. Ferrari World Abu Dhabi is the first
and only Ferrari branded theme park that was
opened in 2007 with the world’s fastest roller
coaster Ferrari Rossa located here. Ferrari
recently launched an app for mobiles called SF
All Access to get all the latest content about
Ferrari directly on your phone.
Target Market:

Segmentation helps the brand in understanding

the packet of offerings, features which will be
suitable for the particular set of customers.
Ferrari uses demographic and psychographic
segmentation strategies.
Ferrari uses selective targeting since the
company doesn’t want everyone to own the
brand and so, therefore, it does a background
check and its target customers are the famous
personalities, celebrities globally.
The brand has positioned itself as luxury sports
car Maker Company closely associated with
some of the renowned racing events
worldwide. The brand uses value-based
positioned strategy to give its owners a sense
of pride in owning the masterpiece.
SWOT Analysis:

Strengths in the SWOT analysis of Ferrari:

● Extremely strong brand image.

● Products that are a fine combination of
beauty & aesthetics combined with
unforgettable performance.
● The brand has connected to itself an aura of
mystique
● Is looked upon as a status symbol
● Takes on new challenges on a constant
basis with a head on attitude.
 ● Innovation & technology are key drivers
behind every product.
● A very inspired, well taken care of &
satisfied work-force who are proud to be
attached with the brand. This was further
expressed publicly when Ferrari was voted
the “Best Place to Work in Europe 2007”.

Weaknesses in the SWOT analysis of Ferrari :

● Ferrari’s business model, based around low
volumes, removes the possibility of
employing certain technological solutions
● That same business model also limits their
sales volumes even though a lot more
demand is present in the market.
● Due to their “waiting list” model, they lose
out on customers to the competition.
● A big challenge lying in wait is fuel efficiency
& emissions which are growing in
 importance everyday, thanks to spreading
concerns over the environment.

Opportunities in the SWOT analysis of Ferrari :

● Growth in the global market for high-
performance super-cars due to growing
economies & developing nations.
● Expansion of the brand through entering
into new & important automotive markets
like India wherein competitors like Porsche
have already set up base.
● Enlargement of customer base (increase
appeal of their products to a more variety
of buyers) through adding comfort,
roominess, luggage space, engines that are
more user friendly, and so on, while at the
same time maintaining traditional Ferrari
characteristics–performance, style,
exclusivity. Ferrari has been exploiting this
aspect for a while & it has been a key
 contributor to their success in the past 15
years.
● Development of technology (for example
interfacing electronics with mechanical
systems) has opened up new avenues to
explore for their products.
● Packaging i.e. the concept of the car, is
another area which still has years to
explore.

Threats in the SWOT analysis of Ferrari :

● Automotive policies being pushed by

countries & continents all over the world
which are being strictly enforced like the
emission norms of 130g/km of CO2 are very
 difficult to keep up with due to the
performance oriented nature of the engines
built by Ferrari.
● Tough competition from other iconic super
car brands like Lamborghini & Porsche
● A competing brand like Porsche does not
follow the same low volumes, high on
exclusivity model which is followed by
Ferrari & hence sells a lot more of its
products & captures a large chunk of the
market share.
● Once again, competitors like Lamborghini &
Porsche are expanding their product range
to high performance SUV’s wherein Porsche
has already been very successful with its
“Cayenne” model, all over the world & in
particular, in India, which has lead to its
success in the Indian market. Ferrari has not
announced any plans for such a product
(high-performance SUV) as of yet i.e.-2009.
History of Lamborghini

Lamborghini Countach LP5000 QV,

Lamborghini Diablo SV and Lamborghini
Murciélago
Automobile Lamborghini S.p.A. is an Italian
brand and manufacturer of luxury automobiles.
Lamborghini's production facility and
headquarters are located in Sant ‘Agata
Bolognese, Italy. Italian manufacturing magnate
Ferruccio Lamborghini founded the company in
1963 with the objective of producing a refined
grand touring car to compete with offerings
from established marques such as Ferrari. The
company's first models were introduced in the
mid-1960s and were noted for their refinement,
power and comfort. Lamborghini gained wide
acclaim in 1966 for the Miura sports coupé,
which established rear mid-engine, rear wheel
drive as the standard layout for high-
performance cars of the era.
Lamborghini grew rapidly during its first
decade, but sales plunged in the wake of the
1973 worldwide financial downturn and the oil
crisis. Ferruccio Lamborghini sold ownership of
the company to Georges-Henri Rossetti and
René Leimer and retired in 1974, Lamborghini's
model line was expanded from the Countach to
include the Jalpa entry-level sports car and the
LM002 high performance off-road vehicle.
Chrysler sold Lamborghini to Malaysian
investment group Mycom Setdco and
Indonesian group V'Power Corporation in 1994.
In 1998, Mycom Setdco and V'Power sold
Lamborghini to the Volkswagen Group where it
was placed under the control of the group's Audi
division. New products and model lines were
introduced to the brand's portfolio and this
increased productivity for the brand.
 TIMELINE

At the 1963 Turin Auto Show, the 350 GTV

showed Lamborghini could create cars .The
GTV had a striking new body design by
Franco Scaglione. The prototype that
started it all.
 Probably some of the most expensive
Lamborghini models in existence today are
these P538, in fact this is a car that wasn't
built at the Lamborghini factory but by one
of the people who were there in the very
early days, Mr. Giotto Bizzarrini himself. The
latter designed the engine for the 350 GTV,
and detuned it afterwards to fit the 350 GT
needs of a quiet Gran Turismo. After that,
Giotto Bizzarrini worked with Renzo Rivolta
on his 'Iso', but later decided to build a race
car, this became the P538.
 The first supercar definitely stood out in
looks, tech and performance. The Miura
was the fastest production car in the world
with a top speed of 163 mph and 0 to 60
mph in 6.3 seconds. It set new standards.
At the 1982 Geneva Motor Show, the Countach
finally got the 5-liter engine it was originally
design for. This was the first Countach update
in four years. Power was up 50 hp compared to
the 4 liter engine.
 This car was a test bed for new technologies,
but was not initially intended to be sold. The
SV-R was a very competitive car and a new race
car wasn't needed at that time, also the styling
for the GT2 was surprisingly similar to those of
the Swiss based Affolter tuned cars.

The 6.2 liter V12 engine an evolution of the

Diablo 6.0 power plant. The highlight of the
new engine is two new variable systems. This
car lives up to its namesake, Murcielago, the
strongest fighting bull of all time.
 The Sesto Elemento was a masterpiece of
extreme lightweight engineering that showed
that Lamborghini could do some amazing things
with the carbon-fiber technology. The 2,202 lb
carbon fiber car was a revelation. V10 power
unit and the permanent all-wheel drive in a
body so light it had an insane power-to-weight.

FOUNDER
Ferruccio Lamborghini lived from 28 April 1916
till 20 February 1993. He was an Italian
industrialist. In 1963, he created Automobili
Lamborghini, a maker of high-end sports cars in
Sant'Agata Bolognese.

KEY PERSON
 HEADQUARTERS

EVOLUTION OF LAMBORGHINI
BRAND AMBASSADOR

slogon
 We are Lamborghini. Dream, inspire, lead,
wait, last: see the future and write your
history

Lamborghini Product Strategy:

The product strategy and mix in Lamborghini
marketing strategy can be explained as follows:
Lamborghini is one of the most popular sports
car brand in the world. Lamborghini started out
when the founder after returning back from
World War II, started piecing together tractors
from spare parts which were available to him.
The tractor business gained immense popularity
and hit out overnight as a successful business
venture, giving the founder the confidence to
venture into the luxury vehicles market.
Lamborghini is actually a manufacturer of
luxury supercars, sports cars and SUVs and is
headquartered in Sant'Agata Bolognese, Italy.
Lamborghini is also known for producing sports
car engines and V12 engines which are used for
offshore power boat racing. The automobile
range of Lamborghini at present, includes two
model lines in its marketing mix, both of which
are mid-engine two seater sports cars. In the
mid-80s, Lamborghini also ventured into the
field of motorcycles when it produced 1000cc
sports motorcycles. Lamborghini’s superior
performance with modern looks and one of the
most advanced braking systems, makes it a
popular choice amongst all car enthusiasts. The
fastest ever Lamborghini is the Le Mans version
of the Murcielago R-GT model. It can go up to a
maximum speed of about 370 km/hour.

Lamborghini Price/Pricing Strategy:

Below is the pricing strategy in Lamborghini
marketing strategy:
Being a luxury car maker, Lamborghini creates
a market of buyers who are looking for class
coupled with elegance and performance as the
criteria for making a vehicle purchase.
To offer the class and luxury associated with the
product, the pricing strategy in its marketing
mix is extremely premium. After sales services
and individual sub-parts are extremely
expensive for buying as well. Lamborghini
ranges in price between 300,000 dollars for the
most commonly available to models like
Huracan to 4500,000 dollars for exclusive
vehicles like Lamborghini Veneno Roadster.
Published by MBA Skool Team, Last
Updated: November 23, 2017
Marketing Strategy of Lamborghini analyses the
brand with the marketing mix framework which
covers the 4Ps (Product, Price, Place,
Promotion). There are several marketing
strategies like product innovation, pricing
approach, promotion planning etc. These
business strategies, based on Lamborghini
marketing mix, help the brand succeed in the
market.
Lamborghini marketing strategy helps the
brand/company to position itself competitively
in the market and achieve its business goals &
objectives.
Let us start the Lamborghini Marketing Strategy
& Mix to understand its product, pricing,
advertising & distribution strategies:
In this article:
● Product Strategy
● Pricing Strategy
● Place and Distribution Strategy
● Promotional and Advertising Strategy

Lamborghini Product Strategy:

The product strategy and mix in Lamborghini
marketing strategy can be explained as follows:
Lamborghini is one of the most popular sports
car brand in the world. Lamborghini started out
when the founder after returning back from
World War II, started piecing together tractors
from spare parts which were available to him.
The tractor business gained immense popularity
and hit out overnight as a successful business
venture, giving the founder the confidence to
venture into the luxury vehicles market.
Lamborghini is actually a manufacturer of
luxury supercars, sports cars and SUVs and is
headquartered in Sant'Agata Bolognese, Italy.
Lamborghini is also known for producing sports
car engines and V12 engines which are used for
offshore power boat racing. The automobile
range of Lamborghini at present, includes two
model lines in its marketing mix, both of which
are mid-engine two seater sports cars. In the
mid-80s, Lamborghini also ventured into the
field of motorcycles when it produced 1000cc
sports motorcycles. Lamborghini’s superior
performance with modern looks and one of the
most advanced braking systems, makes it a
popular choice amongst all car enthusiasts. The
fastest ever Lamborghini is the Le Mans version
of the Murcielago R-GT model. It can go up to a
maximum speed of about 370 km/hour.
Image: Wikimedia

Lamborghini Price/Pricing Strategy:

Below is the pricing strategy in Lamborghini
marketing strategy:
Being a luxury car maker, Lamborghini creates
a market of buyers who are looking for class
coupled with elegance and performance as the
criteria for making a vehicle purchase.
To offer the class and luxury associated with the
product, the pricing strategy in its marketing
mix is extremely premium. After sales services
and individual sub-parts are extremely
expensive for buying as well. Lamborghini
ranges in price between 300,000 dollars for the
most commonly available to models like
Huracan to 4500,000 dollars for exclusive
vehicles like Lamborghini Veneno Roadster.

Marketing Strategy of Lamborghini analyses the

brand with the marketing mix framework which
covers the 4Ps (Product, Price, Place,
Promotion). There are several marketing
strategies like product innovation, pricing
approach, promotion planning etc. These
business strategies, based on Lamborghini
marketing mix, help the brand succeed in the
market.
Lamborghini marketing strategy helps the
brand/company to position itself competitively
in the market and achieve its business goals &
objectives.
Let us start the Lamborghini Marketing Strategy
& Mix to understand its product, pricing,
advertising & distribution strategies:

Lamborghini Product Strategy:

The product strategy and mix in Lamborghini
marketing strategy can be explained as follows:
Lamborghini is one of the most popular sports
car brand in the world. Lamborghini started out
when the founder after returning back from
World War II, started piecing together tractors
from spare parts which were available to him.
The tractor business gained immense popularity
and hit out overnight as a successful business
venture, giving the founder the confidence to
venture into the luxury vehicles market.
Lamborghini is actually a manufacturer of
luxury supercars, sports cars and SUVs and is
headquartered in Sant'Agata Bolognese, Italy.
Lamborghini is also known for producing sports
car engines and V12 engines which are used for
offshore power boat racing. The automobile
range of Lamborghini at present, includes two
model lines in its marketing mix, both of which
are mid-engine two seater sports cars. In the
mid-80s, Lamborghini also ventured into the
field of motorcycles when it produced 1000cc
sports motorcycles. Lamborghini’s superior
performance with modern looks and one of the
most advanced braking systems, makes it a
popular choice amongst all car enthusiasts. The
fastest ever Lamborghini is the Le Mans version
of the Murcielago R-GT model. It can go up to a
maximum speed of about 370 km/hour.

Image: Wikimedia
Lamborghini Price/Pricing Strategy:
Below is the pricing strategy in Lamborghini
marketing strategy:
Being a luxury car maker, Lamborghini creates
a market of buyers who are looking for class
coupled with elegance and performance as the
criteria for making a vehicle purchase.
To offer the class and luxury associated with the
product, the pricing strategy in its marketing
mix is extremely premium. After sales services
and individual sub-parts are extremely
expensive for buying as well. Lamborghini
ranges in price between 300,000 dollars for the
most commonly available to models like
Huracan to 4500,000 dollars for exclusive
vehicles like Lamborghini Veneno Roadster.

Lamborghini Place & Distribution Strategy:

Following is the distribution strategy in the
Lamborghini marketing mix:
Lamborghini has more than 135 dealers across
50 countries and worldwide deliveries of cars
are as huge as 3457 units as per the latest
information available from dealers. Presently,
USA is the largest market with more than 1000
units sold per year followed closely by Japan,
UK, Germany, Canada, the Middle East and
China. There are two types of dealerships
commonly prevalent in the distribution of
Lamborghini cars across the world. The first
type of dealership is the official Lamborghini
dealership which is recognized by the company.
The second type is a one in which smaller and
generally used models of cars are sold and
repurchased.
The official dealership is present across the
prominent countries of the world and costs
millions of dollars to setup.
Lamborghini Promotion & Advertising Strategy:
The promotional and advertising strategy in the
Lamborghini marketing strategy is as follows:
Lamborghini manifests itself through its iconic
logo that symbolizes the raging bull. The origins
of the logo come from the terms that the founder
of Lamborghini was a Taurus himself.
Lamborghini also sells licenses to other brands
to manufacture various Lamborghini centred
consumer goods including clothing, accessories,
electronics items, bags and laptops. They are
into selling and promotion through the idea of
concept cars. Throughout history, they invest
significantly in developing concept cars
including the very first prototype called as the
350GTV. The stitching work in these cars
through history, has been done by women only,
men are not allowed to be a part of this division.
Lamborghini also has a museum of two storeys
dedicated to convey the evolution, growth and
history of the Lamborghini cars throughout the
years. They also showcase a number of modern
and vintage models. Important milestone in the
history of Lamborghini are also highlighted by
means of the museum. The museum is located
right next to the headquarters in Italy. There is
an academy dedicated to teaching enthusiasts
the art of driving on ice and snow. It is called
the Lamborghini Winter Academy and is all
about teaching individuals how to have fun
driving a Lamborghini model in the beautiful
and scenic Alps Mountains. Because of the
immense popularity and loyal customer base
that it has, the company does not engage in
promotions through television commercials or
hoardings. This is not an everyday product and
needs to be promoted through events, print ads
in class magazines and so on. Hence this
completes the Lamborghini marketing mix.

Lamborghini Place & Distribution Strategy:

Following is the distribution strategy in the
Lamborghini marketing mix:
Lamborghini has more than 135 dealers across
50 countries and worldwide deliveries of cars
are as huge as 3457 units as per the latest
information available from dealers. Presently,
USA is the largest market with more than 1000
units sold per year followed closely by Japan,
UK, Germany, Canada, the Middle East and
China. There are two types of dealerships
commonly prevalent in the distribution of
Lamborghini cars across the world. The first
type of dealership is the official Lamborghini
dealership which is recognized by the company.
The second type is a one in which smaller and
generally used models of cars are sold and
repurchased.
The official dealership is present across the
prominent countries of the world and costs
millions of dollars to setup.
SWOT ANAYLISES
 Strengths
● Brand Recall and Image: Lamborghini has
worldwide recognition. The legacy and
heritage of the company and its brilliant
performance made it a very strong and
recognizable brand globally.
● Small workforce: The company has
comparably small staff. Despite the quantity
of the staff they manage to meet their
yearly production quantities successfully
and cut on employee costs.
● Exclusivity: Lamborghini produces a limited
number of cars each year, which makes
their cars coveted and exclusive. As a result,
owning a Lamborghini becomes luxury and
give a status.
 WEAKNESSES
● High Price: Lamborghini cars are known for
their extremely high pricing. The company’s
cars are known by everyone but not many
can effort to own them
● Fuel Waste: The powerful cars produced by
Lamborghini eat up huge quantities of fuel.
This possesses not only high costs but also
the damage to the environment. 

Opportunities
● Correspond to the Demand: The company
annual production is far less from the actual
demand. Production based on demand can
help them enlarge strengthen their
customer base and place in the market.
● Hybrid Cars: Lamborghini already has the
concept of the hybrid car. The company
may become even more demanded and
powerful by bringing this concept to life in
the nearest future.

Threats
● Competition: Lamborghini is in the
extremely competitive automobile industry
with competitors like Porsche, Ferrari, etc.
This environment makes it hard to maintain
its position and grow further.
● Regulations: The regulations related to
automotive policies become stricter and
more popular in many countries.
Lamborghini may face difficulties as its cars
mainly have fuel engines.
● Ferrari and Lamborghini are two powerful and
legendary names in the automobile industry.
● Ferrari and Lamborghini have many similarities in
their heritage, strategies, operations, etc.
● It is hard or even impossible to find someone who
has never dreamed about driving or owning a
Ferrari or Lamborghini car.
● Let’s look at these two legends more thoroughly
and discuss their marketing strategies in detail.