98
+6%
4,013 $m
Automotive
When a European automaker in choppy market conditions increases sales five percent, revenue eight percent, and operating profit 12 percent, management usually congratulates employees and immediately increases sales projections. Not Ferrari. The legendary sports car maker wants to pull back from record global sales of 7,318 units to just under 7,000. Ferrari recognizes that to protect the brand’s exclusivity and business model it cannot rely solely on perception. Its 2013 Geneva Motor Show reveal of LaFerrari at the same event of its rival F1 competitor’s car created a lot of drama even though the hyper hybrid sold out before the show even started. With a one million-plus euro price tag, 700 requests were made but only 499 fulfilled. Internal clarity plays a critical role in unlocking the value of the Ferrari brand, an institutional discipline that helped LaFerrari become the first vehicle designed in-house and extended the halo to its parent company’s portfolio of brands. In fact, the Ferrari-managed Maserati is helping both brands take on competitors. The brand achieves consistency across its touchpoints, including its Formula 1 team, 50 retail stores worldwide—even a Ferrari amusement park in Abu Dhabi. If its leadership team can continue to globally execute in a disciplined manner, Ferrari would be a textbook case of how a brand, and what stands behind it, can grow the business and deliver higher revenues and margins.