'Wow' factor revving up Ferrari

The auto company values the unique design and the interiors of the car more than the sales and revenue figures.

Italy's most popular automobile brand Ferrari values the "wow" factor more than the sales and revenue figures, when it comes to judging the brand equity.

"Wow" reflects uniqueness in the curvy design and enchanting interiors of the world's leading sports car, which is made to order and has a waiting period of more than 18 months for its aficionados.

The company remains paranoid about protecting its legacy at any cost, even if it means foregoing an opportunity to develop a cheaper and smaller car to cater to the rising demand around the world, especially from developing countries.

"We want to remain an aspirational brand associated with our niche clientele. Our prime target is to maintain exclusivity," Davide Kluzer, Ferrari spokesperson, told Business Standard, adding that the brand Ferrari was never meant for mass consumption.

The only assembly line of Ferrari is located at Maranello, Italy, where each car is crafted and customised by deft hands. Understandably, the two-door signature Ferrari is not opening shop in India, not anytime soon.

"The Indian market is very important for us. We are studying it carefully before Ferrari makes entry in this burgeoning market," he averred.

Kluzer underscored that the company does not want to do things in a hurry in the context of the Indian market, which is one of the fastest growing economies in the world along with Brazil, Russia and China. North America remains the largest market for Ferrari, accounting for roughly 30 per cent of its total sales.

China, where the company sold close to 180 cars last year, is also emerging as a large potential market for the marquee brand.

Last year, Ferrari clocked sales of 6,400 cars and earned revenues of 1,668 million Euros. This year, the company is hoping to touch the sales figure of 7,000. "We grew by over 15 per cent in 2007 over the previous year." However, the thrust is to reduce the waiting period for the Ferrari patrons from 18 months to below 15 months.

Commenting on the sub-prime crisis in the US and its impact on Ferrari sales, Kluzer exclaimed that so far it had not impacted the sales in the US. In fact, the company posted a growth of 7 per cent there.

Kluzer also waxed eloquent on Tata Motors acquiring the Jaguar and Land Rover brands from Ford. "One may wonder that the Indian roads are potholed, but I have been to China, Latin America and several other countries and can say that the quality of roads generally are similar everywhere ... it does not make much of a difference," he justified.

Kluzer was in Lucknow as part of the Magic India Discovery Tour, which is traversing through 57 Indian cities covering a total of 13,220 km in 74 days spanning 12 legs. It will end in Mumbai on May 8. The convoy of 10 cars include two 612 Scagliettis, the flagship Ferrari model.

The Tour was flagged off by Tata Group Chairman Ratan Tata in Mumbai on February 25 in the presence of Ferrari's holding company Fiat's Vice-Chairman John Elkann. The India tour is a major brand-building exercise to test the Indian market, create a buzz around Ferrari and gauge the response of the people.

At present, there are about 25 Ferraris in the country, mostly bought through private dealers. Automobile giant Fiat owns 85 per cent of Ferrari, while 10 per cent of the equity is held by Piero Ferrari, the son of Ferrari founder Enzo Ferrari.

Interestingly, Fiat has a business collaboration with Tata Motors to market its vehicles in India through the latter's dealership. However, the Ferrari official was mum over the possibility of taking the same route to sell the super car in India.

Besides, another endeavour of Ferrari is to develop a vehicle that consumes less fuel leading to less pollution. "We spent 15-20 per cent of our revenues on R&D to use lighter material," Kluzer informed. In the Detroit Auto Show in January this year, the company showcased a prototype Spider model, whose engine used 85 per cent ethanol-blended fuel.

Ferrari holds training sessions for its customers in some countries, where they are taught to have fun while driving safely. Kluzer was also all praises for the Indian people and culture.