How Ferrari Has Maintained Exclusivity With Its Marketing Strategies

The brand Ferrari needs no introduction. Despite its size of operations in rolling out cars, which is nominal when compared to other automakers, this 80-year-old brand continues to amaze people of all generations.?

Marketing strategy

Founded in 1929 by Enzo Ferrari, initially, it functioned as a racing stable by the name Scuderia Ferrari. This continued until 1947 when Ferrari sold its first road-going car, the 125 S. The performance of the car at multiple races resulted in increased interest among buyers. However, though Enzo Ferrari did not want to manufacture road-going cars, he was forced to do so, to keep his passion for motorsports alive.

However, due to the small scale of operations, the company could only manufacture a lesser number of cars, thereby prompting demand to always be greater than supply. For example, Ferrari could sell only two cars in 1947, and this attitude of limited selling of vehicles to maintain exclusivity still continues, which forms the very essence of the brand.

This thought process of maintaining exclusivity is taken so seriously that even today if a customer has the potential and interest to buy a Ferrari, the company refuses to sell if they do not deem the buyer to be fit. Also, the customer has to be a prior owner of at least a secondhand Ferrari, thereby increasing brand appeal for both customers and sellers in the new and used car segments.

Pricing strategy

The Veblen effect states that customers see high-priced goods to be worth more just because they cost more. All luxury brands have been built on this notion. Thus, demand increases with a price increase. Ferrari has built its pricing strategy on this basis since it was established.

Brand Image

Ferrari has always been equated with prestige and a sense of pride. The company has continuously invested in maintaining and increasing its brand value. One way it does so, is by producing a limited number of cars, thereby maintaining exclusivity.

This investment is done in all aspects, like the logo and red color (rosso corsa). Its logo is instantly recognized by most of the people in the world and the red color is the most sought-after in car production. Though home to many auto giants like Maserati and Lamborghini, Italian people are crazy behind Ferrari and are some of the most loyal fans in the world.

So, we see what maintaining exclusivity in production has done to this mega brand. It is unlikely that there will be a brand as magnanimous as Ferrari in history ever.

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