The Ferrari brand sells nearly as much merchandise as it does cars

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Ferrari is one of the most desired luxury car brands in the world. To Italians around the world, the Ferrari brand screams the passion they hold for the Italian culture. As other brands hope to claim their value by selling more, Ferrari makes their money by actually selling fewer cars. This is a great case study for marketers to build desire for your brand. With all the pent-up desires, Ferrari sells nearly as much merchandise as it does cars.

Ferrari Logo Beloved Brand

While most marketers ask “what consumers do we want to get” when thinking of a target market, I ask a slightly different question of “who wants us?” 

You should be looking for those who are already motivated and bringing them in first. Then use their energy to help fuel passion for your brand. 

Once you have the most motivated consumers, you can tap into their desires and build a tight bond with these brand fans. You will see the bond becomes a source of power for your brand to drive profits. 

The reason you want to create brand love: more profits.

The 3 pillars of Ferrari's success

Ferrari spends nothing on advertising, everything on the F1 race:

They put all their money into the Scuderia Ferrari F1 racing team, knowing that a win in front 500 million viewers each week fuels that desire for the brand. While Ferrari was the dominant winning team from 2000-2007, most recently they have struggled on the track behind Mercedes. Scuderia is Italian for a stable reserved for racing horses, closely linked the prancing horse in the Ferrari logo. Ferrari supplies engines for 4 of the F1 race teams. 

No matter what part of the world, whether in Australia, Britain or Brazil, it is the screaming Ferrari fans with their faces painted red, who are the most passionate among the crowd. The passion of these fans will continue to fuel Ferrari on the race track to catch up with Mercedes. They have to. It is crucial to the brand’s success.

Ferrari Race Team

Ferrari stands for Italian passion:

The brand idea is “Italian Excellence that makes the world dream” They clearly understand the brand’s role in tapping into the pride of Italians around the world. Most fans of Ferrari will never own a car. It will be a lifelong dream. Instead, these brand fans will buy tee shirts, hats, sunglasses, key chains and anything that projects their association with the brand. The branded merchandise accounts for $2.5 billion in sales each year, slightly more than the revenue from selling cars.

Ferrari limits production on cars:

Since back in the 1990s, Ferrari has found tremendous success in using the pent-up desire to fuel their success. While everyone should want a Ferrari, not everyone should have one.  This keeps the price high. By focusing on extraordinary vehicle design and exclusivity, Ferrari is able to sell luxury cars with high-profit margins. Increasing profitability with high margins has been a key driver of revenue growth for Ferrari. Ferrari reported EBITDA margins of 25%, which is quite high as compared to other luxury car manufacturers as well as the industry average.

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The purpose behind the Ferrari brand is clear

“We build cars, symbols of Italian excellence the world over, and we do so to win on both road and track. Unique creations that fuel the Prancing Horse legend and generate a “World of Dreams and Emotions”.

Very motivating to consumers in the marketplace, as well as internally, for everyone who works on the Ferrari brand.

Luca Cordero di Montezemolo, the former Chairman of Ferrari talked about the link between the history and traditions. “I want to maintain the link with the past, with the tradition and with the history but don’t want to be in the prison of the history. I want to be in the prison of the future.”

The two issues for Ferrari in the future:

 

  1. How will they improve their performance on the F1 track, to beat Mercedes, and keep the passion of their fans alive?
  2. With changing regulations on fuel emissions, around the world, how can the brand advance on Hybrid technology so that it can maintain its standing as a modern car?

It looks like as we head into the F1 season of 2017, there will be pressure for the Ferrari brand to step up their performance on the track. All those fans with their faces painted red want victories.

For marketers, who are your most motivated consumers? And, how can you turn them into passionate brand fans?

Our virtual Brand Management Mini MBA gives you access to our world-class brand training

Our Brand Management Mini MBA is a virtual brand training certificate program designed for ambitious marketers in the real world. Upon completion, you will earn a certificate that will solidify your resume and LinkedIn profile.

  • Learn about strategic thinking, brand positioning, brand plans, advertising decisions, and marketing analytics. We provide 36 training videos that allow you to learn at your own pace, whether you want to complete them in one week or one year. 
  • We provide reading from our bestselling Beloved Brands playbook, a Brand Management workbook to try out each of the exercises, and a download of our Brand Toolkit with all the PowerPoint slides you can use for your presentations.
  • Learn from Graham Robertson, a former VP of Marketing, who brings a wealth of real-world brand management experience from Johnson & Johnson, General Mills, Coke, and Pfizer. For over a decade, Graham has been a brand advisor to the NFL Players Association, Jack Links, Shell, Reebok, Honda, The Mayo Clinic, Miller beer, and Pfizer.
  • Our Brand Management Mini MBA certificate program gives you access to world-class brand training, which is usually reserved for those working at major corporations. While this type of program would typically cost thousands of dollars, you can get all the content and tools for $750 USD. 

Our Brand Toolkit has every template slide you need to run your brand

If you are running a consumer-driven brand or you are a consultant looking after clients, our Brand Toolkit has every PowerPoint slide you would need.

  • Our comprehensive Brand Toolkit package has over 120 PowerPoint slides with templates for brand plan presentations, brand positioning presentations, and business review presentations. You will get slides for a creative brief, brand concept, brand credo, and brand story.
  • You will get blank slides for you to populate. Each line has key definitions. And, we provide a fully completed brand toolkit using Gray’s Cookies.
  • Bonus: We include reading on strategic thinking and how to write brand plans from our Beloved Brands playbook with many of our models in our Brand Toolkit.

Examples of the slides we include in our Brand Toolkit

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Email: graham@beloved-brands.com

Phone: 416–885–3911

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Designed for the ambitious marketer who is looking to upgrade their marketing skills

If you are looking to solidify your marketing skills, our Brand Management Mini MBA will teach you about strategic thinking, brand positioning, brand plans, advertising decisions, and marketing analytics.

With our Mini MBA, you get 36 training videos that allow you to learn on your own schedule. We provide chapters of our playbook ‘Beloved Brands’ and workbooks to complete the exercises in real-time. Once you master the skills, you can use our Brand Toolkit ($200 value) which includes every slide you need to run your brand. 

PowerPoint Templates

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Every template slide you need to run your brand

Our comprehensive Brand Toolkit package has over 120 PowerPoint slides with templates for brand plan presentations, brand positioning presentations, and business review presentations. Also, you will get slides for a creative brief, brand concept, brand credo, and brand story.

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