By Israel Akhuetie | Nexford University | MKT3251 | Final Project | Dr. Michael Rodriguez | Nov 20, 2023 LUXURY CAR MARKET Report (Ferrari) Aspects Details Market Size By 2031 USD 1035 billion Growth Rate CAGR of 6.6% Forecast period 2021 - 2031 By Vehicle Type By Fuel Type Aspects By Vehicle Class Entry-level luxury Mid-level luxury Ultra luxury By Region North America Europe Asia-Pacific LAMEA Hatchback Sedan Sports utility vehicle Others ICE Electric and hybrid (alliedmarketresearch, 2023) Details Key Market Players Tesla, BMW AG, Volkswagen AG, INFINITI (NISSAN MOTOR CORPORATION), Ferrari N.V., Rolls-Royce plc, Volvo Car Corporation, Lexus (TOYOTA MOTOR CORPORATION), Aston Martin Lagonda, Daimler AG COmpare Buggatti Ferrari Classes: Grand tourer Classes: Grand tourer Body styles: Coupe, targa top Body styles: Coupe, targa top Layouts: Longitudinal mid-engine, permanent four- Layouts: Longitudinal mid-engine, permanent wheel drive four-wheel drive Transmission: 7-speed DSG sequential Transmission: 7-speed DSG sequential Horsepower: 1001 Horsepower: 1001 Headquarters: Molsheim, Alsace, France Headquarters: Molsheim, Alsace, France Cost: $1.4 million Cost: $1.4 million Production Output: 38 vehicles (2011), 40 vehicles (2010) Production Output: 38 vehicles (2011), 40 vehicles Key People: Ettore Bugatti, Jean Bugatti (2010) Nature of Business: Automobiles manufacturing and Key People: Ettore Bugatti, Jean Bugatti distribution Nature of Business: Automobiles manufacturing Founded by: Ettore Bugatti in 1909 and distribution Number of Employees: 73 (Aug 2012) Founded by: Ettore Bugatti in 1909 Parent Company: Volkswagen AG Number of Employees: 73 (Aug 2012) ( Diffen LLC, 2023) Parent Company: Volkswagen AG ( Diffen LLC, 2023) Luxury Automobile Pricing Strategies (Ferrari) Penetration Pricing Psychological Pricing Product Line Pricing Customer Satisfaction Economy Pricing Customer Value-Based Pricing Pricing Analytics Target Market and User Personas Ferrari Affluent Executive Alex: Demographics: Male, aged 35-50, high income Interests: Luxury lifestyle, fine craftsmanship, status symbols Persona: Alex is a successful executive who enjoys the finer things in life. He values the iconic status and brand recognition associated with Ferrari. Alex desires a highperformance sports car that represents his success and complements his luxurious lifestyle. (Shergill, n.d.) BUYING CYCLE MAP ATTRACT RESEARCH CONSIDERATION Once aware of Ferrari, potential buyers begin researching the brand and its models. During this stage, potential buyers narrow down their options and consider specific Ferrari models that align with their preferences PURCHASE At this stage, the buyer has made the decision to purchase a Ferrari and proceeds with the buying process ADVOCACY Satisfied Ferrari owners may become brand advocates, sharing their positive experiences with others. SWOT ANALYSIS FOR FERRARI S W O T Decline in demand due to reduced consumer purchasing power. Financial constraints and limited access to financing for potential buyers. A shift in consumer preferences towards more practical and cost-effective options. Increased competition from other luxury car manufacturers offering discounts or more affordable models. Global economic uncertainty impacts consumer confidence and willingness to make luxury purchases (HBR, 2023). Potential supply chain disruptions affecting production and availability of parts. Enhance Brand Awareness Generate a 15% increase in brand mentions and positive sentiment on social media within three months. Drive Customer Engagement and Loyalty Achieve an average engagement rate of 5% on social media platforms within six months. Increase Sales and Revenue Increase the amount customers spend on average per purchase by 15% within three months using targeted upselling and cross-selling techniques Experiential Events Events serve as effective means to raise awareness among potential customers and foster loyalty among existing customers. Social Media We will create a content calendar that features a mix of educational and promotional contents that aligns with our brand values and resonates with our target audience. Online Advertising Paid advertising will be strategically employed to target and attract potential buyers, guiding them through our sales funnel where they will be nurtured and ultimately converted into customers. Four-Week Marketing Campaign Strategy Experiential Events (Virtual Showroom) Social Media Paid Advertising Pricing Strategies For Ferrari Premium Pricing Buy/Rent/Lease options Entry-level Models Price Segmentation Options and Customization After-sales services Limited Edition Series The promotion strategy should focus on reinforcing Ferrari's brand image, highlighting its unique selling points, and engaging with potential customers during a recession. Leveraging digital channels, social media, and influencers can help reach a wider audience and generate excitement around the brand. Collaborations with luxury lifestyle brands or events can create synergies and enhance brand perception. Emphasizing the long-term value, craftsmanship, and driving experience of owning a Ferrari can resonate with customers looking for enduring quality and emotional satisfaction. NEGATIVE SOCIAL MEDIA FEEDBACK Negative comments or feedback on social media platforms (Lauron, 2023). EVENT LOGISTICS CHALLENGES Issues related to venue, logistics, or unforeseen circumstances affecting the event experience. AD CAMPAIGN PERFORMANCE Poor ad performance leading to low engagement and ROI. In Summary References Diffen LLC. (2023, September 28). Bugatti vs ferrari - difference and comparison | diffen. Www.diffen.com. https://www.diffen.com/difference/Bugatti_vs_Ferrari alliedmarketresearch. (2023, March). Luxury car market size, share, industry analysis. growth, value. Allied Market Research. https://www.alliedmarketresearch.com/luxury-car-market-A05980#:~:text=Luxury%20cars%20can%20be%20defined autobei.com. (n.d.). Importance of pricing strategy in the automotive sector. Autobei. https://autobei.com/insights/importance-of-pricing-strategy-in-theautomotive-sector.html Bello, R. D. (2020, November 28). Luxury automotive customer journey toward 2030: What’s next? RccDB Cars - Automotive | Business | Research. https://www.rccdbcars.com/automotive-blog/luxury-automotive-customer-journey-toward-2030-whats-next Enochson, H. (2019). 27 examples of key performance indicators. OnStrategy. https://onstrategyhq.com/resources/27-examples-of-key-performance-indicators/ HBR. (2023, September 1). Should you launch products during a recession? Harvard Business Review. https://hbr.org/2023/09/should-you-launch-productsduring-a-recession#:~:text=The%20study%20revealed%20an%20exception Kulkarni, S. (2020, March 20). Bugatti: Targeting a niche market. Www.linkedin.com. https://www.linkedin.com/pulse/bugatti-targeting-niche-market-shashankkulkarni/ Lauron, S. (2023, May 29). 5 expert tips for effective social media risk management. Social Media Marketing & Management Dashboard. https://blog.hootsuite.com/social-media-risk-management/#:~:text=Damage%20to%20reputation McCormick, K. (2022, August 16). Customer journey map how-to (+7 templates & examples). WordStream. https://www.wordstream.com/blog/ws/2022/09/19/customer-journey-map-templates Shastri, A. (2021, September 27). SWOT analysis of ferrari explained | IIDE. IIDE. https://iide.co/case-studies/swot-analysis-of-ferrari/ Shergill, A. (n.d.). Ferrari Case Study. Amardeep Shergill. https://amardeep-shergill.com/ferrari-case-study Sirohi, A. (2019, April 8). How to develop a social media strategy. Constant Contact. https://www.constantcontact.com/blog/how-to-develop-a-social-mediastrategy/ Sirohi, A. (2021, May 11). Top 7 event marketing strategies & ideas. Constant Contact. https://www.constantcontact.com/blog/event-marketing-strategies/ Vaughan, P. (2022, February 21). How to create detailed buyer personas for your business. Hubspot. https://blog.hubspot.com/marketing/buyer-persona-research
