Ferrari Case Study

The value proposition of a firm can be defined as a business statement that a firm uses to summarize the reasons listed why a consumer should buy a product or use a service. This statement aimed to convince potential consumers about the product or services of the firm that it would more valuable compared to other available product. Hence value proposition is very important for business purpose.

For practical purpose to understand value proposition, a case study of world famous Ferrari Auto Company has been done. Ferrari is among the world’s leading luxury brands focused on the design, engineering, production, and sale of the world’s most recognizable luxury performance sports cars. The Ferrari brand symbolizes exclusivity, innovation,
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Ferrari strive to maintain and enhance the power of the brand and the passion inspire in clients and the broader community of automotive enthusiasts by continuing rigorous production and distribution model, which promotes hard-to-satisfy demand and scarcity value in Ferrari cars. (Ferrari, 2016).


If we fit Ferrari in this frame, the company has strong value proposition for the customers. The company has tight controls over the quality production, brand image and quantity of the production. The cars produced by the Ferrari are also very innovative and often exceed the customers’ expectations.

Innovations are important part of Ferrari’s value proposition. As per the company’s official website, Innovation is part and parcel of Ferrari’s DNA. Innovations are essential part of every Ferrari segment, product, process, working method. The market segment and targeted customer satisfaction make it complete working solution for the company. The value curve of the company can be drawn in the following
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The Formula 1 team also does a big promotion of the brand by winning most of races. The merchandising is done on a royalty & license basis to other brands. Apart from the racing activities, the car is promoted by high end motor shows that will display these vehicles.

• Place: Ferrari dealerships exist in more than 60 countries. Company has plan extend its dealerships to other countries & markets. However the company would only offer through high end outlets that are mostly controlled with the view of making sure that they meet the values of the brand.

With these marketing strategies, Ferrari is positioned in the prestige segment of the car market with a differential advantage based on high performance and exclusivity. Because of the pricing it enjoys the premium class exclusivity. Because of its carefully brand image and promotions, Ferrari is a status symbol consisting of extreme performance, power and design. KPIs and the 4P’s are very effective for the Ferrari. Question No 3: While talking about talent management in Ferrari, it is important to quote the founder of Ferrari auto, Enzo

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