hey marketing execs. wonder why...

Over 50MM Euros in merch revenues in 2012... would you say that's a pittance?


UPDATE 1-High-flying Ferrari to protect brand by making fewer cars | Reuters

 

No one complains when Porsche or Jaguar or BMW or Mercedes sells merchandise. Because nobody cares. At my BWM dealer the waiting area looks like a Toys R Us store with kiddie trikes and skateboards and Teddy Bears with BMW logos on the T shirt.

Most of the royalty money is in toys, models, and video games. The coffee mugs and etc are chicken feed.

Are we going to complain they make money from video games?

 

I'm not complaining about anything - just pointing out that 50MM Euros is nothing to sneeze at.

 

many posts but none that look at the Ferrari order book... all of the production is spoken for and production is adjusted to meet the order book... Ferrari doesn't make a car until there is an order for it... the production limit is set at a comfortable level of capacity and maximum profit... there is a que of orders waiting to be produced... advertising would only increase the demand, costs and wait time... there is a cliche' that production should be one less than demand, which stimulates desire by not being able to get one, making the next one more desirable... traditional auto makers compete for ever greater market share which makes their business model dependent on advertising to generate ever increasing sales

 

FF?

 

OK but who is the order from, private buyer or the dealer?

Every Jaguar is built to order, but that order could be from a dealer ordering for stock.
Do Ferrari dealers order for stock? I don't know, I'm just asking. If their contract with Ferrari means they have to order x cars per year and they haven't reached that amount with buyers then maybe they order for stock.

 

There are exceptions to every rule. I think they did make some FF's to help sell them. It's easier to sell a car like this if you can sit in it and see it.

They might have done the same thing with the 612.

 

I don't think their advertising strategy is necessarily based on production numbers. When is the last time you saw a TV commercial for a Rolex? These brands are household names and advertising might even hurt their prestigious status.

 

Correct. There is an excess of demand. Ferrai caps allocations. Not every buyer that wants one can buy a new Ferrari. That is the part what creates the demand.

 

I guess there are folks here who don't like seeing Ferrari logos splashed all over stuff that really have little to do with cars. I think that's understandable since most of us own an Fcar partly because of its exclusivity.

But I think in Ferrari's case, aside from easy money, it has a legitimate reason for hawking all this cheap memorabilia and it's not directly related to the Fcars we drive. It's because of the Tifosi aspect in the F1 scene and the F1 brand. You have to admit, F1 racing is more important to Ferrari than our precious Fcars. Ferrari fuels its involvement in motor racing with whatever it can sell in a positive manner, with regard to its image in motor racing, currently centred around F1 racing.

Most Ferrari Tifosi around the world are just ordinary working people who need a bit of passion in their everyday lives. F1 is a great excuse for a passion that most people can't get too deeply in trouble with. So the larger F1 teams oblige by selling all manners of memorabilia, with Ferrari stuff being the most dominant and desirable.

Fueling the passions of Ferrari Tifosi around the world keeps the craziness and passions around the F1 circuits alive and well. There is a lot of travel/tourism/hospitality and advertising money being spent at each event, on TV, on the circuit, wherever fans will look for F1 and Ferrari content. So I think in the end, the accessible Ferrari memorabilia buying and collecting help fuel the interest of the public, which in turn fuels the advertising efforts of many other brands, various media and consumer spending. It makes people excited and happy, happy enough to spend money on silly things that make them feel better, keeps them out of trouble and helps the economy go around.

So I think the silly Ferrari menorabilia's not just about Ferrari and it's certainly not really about the Fcars we drive.

 

That's true in the states but in Europe as well?

 

+1

 

If he did, FerrariChat would have a new thread on Monday morning titled "Arrogant Ferrari Dealer Wouldn't Even Talk To Me."