Marketing Planning for Ferrari: Analysis, Implementation, and Control

This study explores the marketing planning process for Ferrari, including analysis, implementation, and control. It discusses the SWOT and PESTLE analysis models, the STP model, and the benefits and barriers to planning. The study also examines the implementation of promotional strategies and physical evidence, as well as the time frame and budget for the marketing plan. Finally, it discusses the importance of feedback and control in evaluating the effectiveness of the marketing campaign.

Marketing
Planning/Campaign
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Table of Contents
INTRODUCTION...........................................................................................................................3
ANALYSIS......................................................................................................................................3
SWOT analysis............................................................................................................................3
PESTLE analysis.........................................................................................................................3
STP model....................................................................................................................................4
PLANNING.....................................................................................................................................4
Smart Goals..................................................................................................................................4
Benefits and barriers to planning.................................................................................................5
IMPLEMENTATION......................................................................................................................5
Choice 1.......................................................................................................................................5
Choice 2.......................................................................................................................................6
Time frame and budget................................................................................................................7
CONTROL.......................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing planning refers a process of organizing which consists of several strategies
which are being developed to accomplish marketing goals. This study is based on Ferrari which
is an Italian luxury sports car manufacturer. This study is going to show importance of using
different models to analyse business environmental factors and taking competitive advantages.
ANALYSIS
SWOT analysis
SWOT analysis model plays an important role as it helps company in analysing its
internal environmental factors in order to accomplish goals (Gürel and Tat, 2017.). Some
strengths, weaknesses, opportunities and threats of Ferrari sport car manufacturer are:
Strengths
 It has strong brand image.
 It invests in technology and innovation which is the main key of its success.
 Strong presence in the racing world.
Weaknesses
 It has limited service network as well as distribution channels.
 Due to waiting list model it is decreasing position in the competitive market.
Opportunities
 Business expansion in other countries.
 Differentiating product portfolio.
Threats
 Changing customers needs is one of the main threat.
 Increasing competition due to products innovation.
PESTLE analysis
It is other effective model by which company can know external factors and their impacts
on its performance. By analysing all these factors, it can make changes in its strategies
accordingly.
Political
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 Ferrari is operating in different countries and many of them have political tension. These
tensions are limiting growth opportunities.
Economic
 Host country government is focusing and supporting industries in improving
infrastructure. This support is increasing growth opportunities for this company.
Social
 Changing behaviours and trends in demographic like migration trends, ageing population
can have negative impacts.
 On the other hand, increasing use of online and social media and its capability of
managing it is increasing customers base.
Technological
 It has ability and financial stability which makes it able to invest in advanced technology
which is beneficial for it.
 On the other hand, it is increasing competition in the industry which can create some
problems (Shalhoub, Marsh and Ippolito, 2017).
Legal
 Following all laws like employment protection and consumer protection is helping it to
improve its working environment.
 Some changes in legislations put pressure on this company to make changes in ways of
performing which can increase overall cost of the company.
Environmental
 Maintaining sustainability and increasing environmental population is putting pressure on
it to focus on maintaining sustainability.
 It is stated that Ferrari is now focusing on making its products sustainable.
From the above, it can be said that company requires making some changes in its
strategies as there are several factors which are not in its favour. So by focusing on increasing
strengths, it can accomplish goals.
STP model
Segmentation:
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 Main segment is sport cars mainly for elite customers. People with the age group of 25-
49 or high earners are main segment. So, overall it can be said that financially successful
people are main segment and target market.
Targeting:
 It is targeting niche markets as well as elite customers who seek for brilliant sporty
driving experience is the main target of Ferrari.
Its many of products or sports car are costly so few people can afford it so, it mainly targets
people with high income as well as strong background (Arora and Sharma, 2018).
Positioning:
 It is positioned as a premium sports car manufacturing company who provides effective
and excellent features of sporty driving experience.
So, it can be said that by analysing its target market that it has positioned in the
prestige segment.
PLANNING
Smart Goals
 One of the main goal of Ferrari is to increase profit margin up to 25% within next year.
 To win and increase employees loyalty and increasing employee retention to the great
extent.
 To increase customers base and increase customers traffic on its website upto 35% in 10
months.
Benefits and barriers to planning
Marketing planning is not an easy task as there are several barriers occur. On the other
hand an effective planning can give several benefits which are discussed below:
Benefits
 As per the planning it is focusing on China. It is stated that there (China) is increasing
numbers of wealthy consumers which can give it opportunities to increase sales.
 It is going to launch new 15 products upto 2022 and giving opportunities to investors.
 In its marketing plan it has focused on promoting its product Pista, version of its 488
sports car model that has proven beneficial (Ferrari Operating Profit, 2020).
Barriers
 Confusion between tactics and strategy.
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 Some organizational barriers.
 Lack of professionals and knowledge of promoting products.
IMPLEMENTATION
Choice 1
There are several elements of marketing mix which helps Ferrari in accomplishing goals and
giving all informations to customers. Among all elements of marketing mix, promotion is one of
the main element on which it focuses the most such as:
Promotion
Advertising and promotional strategy of Ferrari is the main key of the success of
marketing planning. In this context, it is stated that its strategy of promotion is different from its
competitors as it mainly caters to premium niche segment. It has promoted its products to those
areas in which it does not operate. Nowadays almost all knows about the brand Ferrari. In
addition, it is also stated that it provides a driving courses program in which the focus of this
company is on merchandising. It does not only provide sports car but it also has variety of
products such as: watches, perfumes, clothing (Davari Farid and et.al., 2019).
In addition, it can also be said that rather, merchandising, it focuses on social media or
digital marketing and for that it has launched an app for mobiles which is known as SF all access
which allows its customer to get all informations and make themselves updated about the latest
content of Ferrari.
Advantages
 It helps it out in increasing sales.
 It is an effective promotional strategy which supports it to bring customers in the store
who generally do not prefer to come in the market for shopping.
 This strategy also help customers in selecting their products easily or locate products
when they come into store.
Disadvantages
 One of the main disadvantage of this strategy is it is expensive because it requires
investment in order to change appearance.
 Increasing numbers of customers can increase cost of the company as they require to
increase payroll. Employee seek for hike if they deal with many customers and give
longer hours to deal with customers.
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Choice 2
Rather, promotion other main element which is helping out in accomplishing marketing
goals and making marketing planning successful is physical evidence.
Physical evidence
Physical evidence means appearance of products and packaging which attracts customers
to buy products. One of the main strength and characteristics of Ferrari is physical evidence of its
products as people get attracted whenever they see its products. In this context, it is stated that
this company sells its products in several colours packaging by which customers can easily
identify on retail shelves. Shelves which is provided by Ferrari also have in distinct colours and
design. So, by having distinct colours customers do not face difficulties in locating shelves in a
busy retail stores (Freeman, 2016).
It is also stated that this company has a strong official online website which allows
customers to views all its products, features and all informations regarding products. All images
which are being posted on its website and social media are in the highest quality which are being
taken from various angles. It also makes able to customers to view the whole image and analyse
it.
Advantages
 One of the main advantage of this physical evidence of Ferrari is it gives all informations
to customers about features, effectiveness, and they easily compare its products with
others.
 Its packaging and using different colours makes it able to identify and locate ots products
than others.
 It attracts customers to the great extent and visit website.
Disadvantages
 Packaging and using distinct colours requires investment which can increase overall
operational cost of the company.
 It is time-consuming process which also requires labours for completing this function in
an efficient manner.
 Sometimes it becomes difficult to come up with new ideas and there are chances of
imitating or imitability.
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Time frame and budget
Time frame plays an important role in marketing planning. It allows company in planning
and completing all functions accordingly and focusing on tasks effectively. By dividing it into
some months as per the tasks performed by the company in marketing planning can help it out ti
the great extent. The main aim of marketing planning is to increase sales and attract target
market to the great extent. For this purpose, there is requirement of 2-3 months.
Month 1
In the first month, the main work is to bring some innovation and creative ideas in order
to make products and planning successful and differ than its competitors. One of the main
important element on which company needs to focus and perform in the first month is think
about promotion. Required and available suppliers, different ways of promotion in order to select
the best one. So, in this first month, company will focus on promotional strategy.
Month 2
In this month, company will focus on packaging which is the main element of the
marketing. For effective packaging it will require creative ideas so, for that it will hire and
employ people who are specialized in packaging and making products attractive. Uploading
images from all angles on official websites and other social media platforms will be the main
function. The main aim of performing this activity in this second month is to grab attention of
customers and attract them to the great extent.
Month 3
Marketing planning and new campaign will take 3 months and in the last or 3rd month
company will focus on budgeting in order to know all expenses as per the planning. The main
aim of making budget is to see whether it is increasing overall cost or not.
Budget
There are different ways of preparing budget. So, it requires to analyse all types and
select the best one which has the least disadvantages and a lot of advantages. Easy and simple
method of preparing budget has been selected which include:
Promotion
Instagram £3 per day and around £60 per
month
There is a specific limit of
advertisement on social media
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platforms and by analysing
different limit and quality of
advertisement it has been
selected.
There will be requirement to
print approximate 400-500
posters.
Website £4 per day and around £120
per month
Twitter £2-3 per day and around £60-
90 per month
Posters £3 per day and around
£1300/400-500 posters
Physical evidence
Packaging Approximate £0.02 per
packaging. £400
For packaging it will require
printing 20, 000 limited edition
packages.
Total cost of promotion and
packaging
£1940
Table 1: Budget
So, from the above, it can be said that it can increase cost of the company but it has
strong financial stability which can help it out in taking competitive advantages. By investing in
promotion and packaging it can accomplish its goals.
CONTROL
There are several ways of knowing effectiveness and controlling. One of the best way of
knowing effectiveness of campaign is feedback. By taking feedback from customers and viewing
traffic on social media, company can see that to which extent customers prefer and like their
products (Mullakhmetov and et.al., 2016).
From the feedbacks and social media trafficking it is analysed that number of customers
and visitors are increasing day by day. It shows that marketing planning and campaign is on the
right track and has effectiveness. In three months planning we can see differences in each month.
In first month company focused on promotion and in second month focused on packaging and in
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third month it focused on budget and survey. Here is the example of social media trafficking of
each month by which company can modify changes in its strategies if required.
Activities October November December
Promotion or
advertisement
Physical evidence or
packaging
Survey
Table 2 Controlling table
So, from the above, it can be said that marketing campaign of Ferrari got successful. All
activities done by this company was effective. The main aim of marketing planning of increasing
sales achieved. Ferrari is the strongest brand and one of the main key of its success its making an
effective use of all analysis model which helped it out in analysing all factors which have both
positive and negative impacts on it.
CONCLUSION
From the above study, it has been summarized that marketing function or planning played
a vital role as it helped company in promoting their goods. This study has also shown importance
of using different models and controlling function for smoothing performance. Development of
STP, SWOT and PESTLE analysis model helped companies in accomplishing goals.
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REFERENCES
Books and journals
Arora, S.K. and Sharma, C.N., 2018. Common Mistakes in Planning of Sewer Networks and
STPs. In Environmental Contaminants (pp. 361-370). Springer, Singapore.
Davari Farid, R. and et.al., 2019. Marketing mix for the promotion of biological control among
small-scale paddy farmers. International journal of pest management. 65(1). pp.59-65.
Freeman, J., 2016. The Catholicon Anglicum (British Library, Add. MS. 89074): An Analysis of
the Physical Evidence of its Production and Binding. Electronic British Library
Journal. 5. pp.1-14.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social
Research. 10(51).
Mullakhmetov, K.S. and et.al., 2016. Control in marketing-based management. Academy of
Marketing Studies Journal. 20(2). pp.13-19.
Shalhoub, J., Marshall, D.C. and Ippolito, K., 2017. Perspectives on procedure-based
assessments: a thematic analysis of semistructured interviews with 10 UK surgical
trainees. BMJ open. 7(3). p.e013417.
Online
Ferrari Operating Profit. 2020. [Online]. Available through
<https://www.fool.com/investing/2020/02/06/ferrari-q4-2019-earnings-profit.aspx>
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