What’s Fueling Ferrari’s Brand Power?
Ferrari celebrates its 5% increase for 2013. A record 2.3 billion euros is a great milestone, but what else is up its sleeve? Frankly, very few come close to the prestige of Ferrari. It’s revered as the great of the greats. It’s a legend among automakers, and frankly, it’s often the sports car of choice.
Not only is its power in the engine, but it’s in its brand as well. Ferrari President Luca di Montezemolo shares a few words about this ever-booming power brand.
Luca di Montezemolo, Ferrari President, says, “It means that despite the dimension of the company we have done a very good job in recent years to improve the exclusivity, the brand awareness and the strong capacity of this fantastic brand.”
This 70-year-old Italian car maker topped Brand Finance’s 500 list. Not only is Ferrari sexy, but it makes money. Maybe not as much as Apple (AAPL), but it’s still in great standing. 2013 was indeed Ferrari’s best financial year. What can top 2.3 billion euros and a 5% increase in revenue?
It’s simple supply and demand. It’s strategy was to intentionally reduce output (supply) so that the brand would be more desirable. David Haigh, CEO of Brand Finance, argues that the decisions was a wise move.
David Haigh, CEO of Brand Finance, says, “They actually cap the number of cars they produce at 7,000 and up the price. They actually managed to increased their turnover, increased their profits and probably increased their customers love for them by making themselves more exclusive.”
After putting the brakes on building new cars, Ferrari argues that this decision will help maintain the value of its used cars, as well as protect its prestige. But, don’t be confused. Ferrari is still investing in new models.
Luca di Montezemolo, Ferrari President, says, “Last year we presented two brand new cars, La Ferrari and 458 Speciale, just to prove how busy we are in terms of innovative technology and new models.”
Enter latest new model, the California T, which Ferrari will present at the Geneva car show next month.