Arab Today, arab today experts favor sparing use of exclusive ferrari label
Last Updated : GMT 11:53:13
Arab Today, arab today
Arab Today, arab today

Newly spun off from Fiat Chrysler

Experts favor sparing use of exclusive 'Ferrari' label

Arab Today, arab today

Arab Today, arab today Experts favor sparing use of exclusive 'Ferrari' label

Ferrari Chairman Sergio Marchionne
Detroit - Arab Today

Newly spun off from Fiat Chrysler, Ferrari has touted its growth potential in luxury goods, yet branding experts warn expanding beyond cars could be a long and difficult slog.

Ferrari Chairman Sergio Marchionne has argued that Ferrari should be seen as "a unique expression of art and technology," more like Hermes or Prada than an automaker.

Ferrari "is not really a car," Marchionne said. "It has nothing to do with the rest of the schmucks."

But shares of Ferrari, long associated with its iconic prancing horse logo, have fallen 21 percent since its initial public offering in New York in October. Ferrari last week added a second listing in Milan, also under the "RACE" ticker.

Ferrari's cars certainly do sell for otherworldly prices compared with the industry as a whole.

In 2014, Ferrari garnered 2.3 billion euros for selling just 7,300 cars with an operating profit margin of 14 percent. Its market capitalization of eight billion euros is only slightly less than that of Peugeot Citroen, which sells 430 times as many cars per year.

Ferraris boast a starting price of about 200,000 euros. Ferrari enthusiasts have likened the vehicles to dancing works of art.

"Ferrari is one of the strongest brands in the world, regardless of sectors, not just within the auto industry," said Robert Haigh, marketing and communications director if Brand Finance, a consultancy.

"It inspires an almost religious devotion, an incredibly powerful, emotional pull," he said. "They have that in common with a very few brands."

Yet elements of Ferrari's growth strategy have begun to look less solid of late.
Ferrari has discussed increasing annual vehicle production from 7,700 to 9,000 around 2019.

The boost is to serve growing markets in China and the Middle East, two regions wracked of late by slowing growth and, in the case of the Middle East, much lower oil prices.

- A Ferrari toaster? -

Marchionne has also discussed additional efforts to cash in on the Ferrari brand by expanding its non-car offerings, an idea that raises worries with some branding experts.

"You can get overexposure, that for Ferrari that may be a particular issue, since it stresses exclusivity so much in its branding," said Bruce Clark, an associate professor of marketing at Northeastern University in Boston.

"If there's a Ferrari logo on each other item that you see, people start saying: 'Well how really exclusive is this brand?'"

Marchionne has acknowledged this fear, vowing to be "very, very careful" with new ventures.

"The most important thing is not to do anything big and stupid," Marchionne said last week.

"If you put Ferrari on a toaster, it doesn't go faster.... You can not stick it everywhere, otherwise it loses it value."

Ferrari currently garners about 10-20 percent of its revenues from items such as watches, clothing and leather goods.

Especially lucrative has been custom-painting, an offering that can bring in 10,000-15,000 euros per car and gives a personal touch that is popular with the well-heeled, who are also invited to drive the cars around Ferrari racetracks.

"The bespoke tailoring of vehicles has proven to be massively profitable for (Ferrari)," said Ian Fletcher, an automotive analyst at consultancy IHS.

Ferrari also plans to open a second amusement park in Spain following the first such venture in Abu Dhabi.

But Jacqueline Kacen, a marketing professor at the University of Houston, said Ferrari must be careful before it takes on too many different concepts.

"Services are a lot harder to execute than products in some regards, to maintain that high quality and that sense of luxury and exclusivity," she said.

"As you're expanding into a luxury brand, you can't alienate your core customers."

Marketing professor Clark said Ferrari also must not lose site of its core product.

"What does Ferrari stand for? Speed, luxury, exhilaration, passion, performance, success," he said.

The cars need to stay great and to "win races," he said. "If they have trouble with that, that starts eroding over time."
Sourtce :AFP

arabstoday
arabstoday

GMT 07:21 2017 Monday ,18 September

Rickshaws to jump start India's all-electric drive

GMT 05:58 2017 Monday ,18 September

Five trends at the Frankfurt auto show

GMT 07:13 2017 Thursday ,14 September

Carmakers see promise of bonanza in eastern Europe

GMT 13:15 2017 Tuesday ,12 September

Car-sharing means fewer cars, busier roads in 2030

GMT 10:27 2017 Sunday ,10 September

Top luxury and performance in a compact body

GMT 16:37 2017 Thursday ,07 September

BMW joins push for electric cars

GMT 16:16 2017 Thursday ,07 September

Jaguar cars set to go electric from 2020
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today experts favor sparing use of exclusive ferrari label Arab Today, arab today experts favor sparing use of exclusive ferrari label

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today experts favor sparing use of exclusive ferrari label Arab Today, arab today experts favor sparing use of exclusive ferrari label

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Lufthansa chief eyes up to 78

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Rouhani at UN defends Iran nuclear deal

GMT 09:41 2017 Thursday ,21 September

Rouhani at UN defends Iran nuclear deal
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Actress Ream Hhagag prepares for a new film

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday