Market Analysis of Ferrari-Free-Samples-Myassignmenthelp.com

Question: You are required to develop a Consumer Behaviour Report to be submitted to the Managing Director of a Medium to High Involvement brand and Product line of your choice to outline the key issues facing the Company in terms of Consumer Behavioural Issues. Answer: Introduction Consumer behaviour is the conduct of an individual and the manner they perceive the product and what all measures it considers before making any measures. The report concentrates on situational analysis to know the market condition and then target market is focussed through segmentation. The decision making skills have been analysed by focussing on the decision making process. The market strategies are also concentrated by discussion over the social, psychological and personal factor that are likely to affect the decision making of customer and influence their mind. Finally to study the entire market the 4Ps should be learnt so as to reach the best decision. The report argues on the market analysis and consumer behaviour in context of Ferrari. For that the history of Ferrari has been discussed along with the vision and mission of the company. The market share and the competitors of Ferrari have been quoted followed by the swot and Pestel analysis. Thereafter the market segmentation is quoted and the decision making of target market is done which explains the entire process. Afterwards the market strategy has been elucidated which influence the decision making of the person; these factors are social, psychological and personal factor. The final assessment is conducted by researching over the marketing mix of Ferrari to take the final decision. Situational analysis History of Ferrari The company Ferrari was initiated on 1947 and the first ever Ferrari appeared on the entry point of Via Abetone Inferiore situated in Maranello. The product line of Ferrari is Enzo Ferrari which was launched in Modena in the year 1898 and exhausted in 1988 (Ferrari, 2017a). Thereafter another inauguration of Ferrari was Scuderia Ferrari which was initiated in Viale Trento Trieste located in Modena, Italy. Sergio Marchionne is the Chairman and CEO of Ferrari and Piero Ferrari is the Vice Chairman of company (Ballaban, 2014). Vision and mission statement The vision of Ferrari is that it is the excellence developed by Italy which is the dream car for many people in the world. It depicts the sporty nature and luxury. The mission that company carries is that it signifies the Italian excellence and stay of the prime position on the roads as well on tracks (Ferrari, 2017b). Market analysis Ferrari Corporation focuses on the team work and symbolises that human resource is the precious resource and the motive of company is to rule on the world. The competitors of Ferrari are Porsche, Lamborghini, Mercedes, McLaren and Aston Martin (Ound, 2012). Figure 1 Market share of Ferrari and its competitors (Source: Munoz, 2017). The market strategy that Ferrari adopted is studying about social influence, psychological aspects and influence of personal factor on the business. SWOT Strength Innovative and quality conscious. Uniqueness in design (Ferrari, 2017c). Focus on the customer satisfaction. Weakness As it is the luxury product thus production is low. Advance booking is needed and customer has to wait for 18 months. Less resources and rising cost. Opportunity Global economy is developing rapidly thus increasing the purchasing power of customers. Varieties available in market. Production could be increased. Threat Environmental factors affect the production. Huge competitors. Fluctuations in foreign economy. PESTEL Political Changes in environmental policies. Changes in global policies. Changes in the automobile sector. Economic Issues of recession. Development in the branch countries. Variation in foreign exchange. Social High remittance of CO2. Lack of renewable resources. Technological Developing advanced technology. Increasing patent. Ecological Climate concerns have been paid. Environment friendly practices. Legal Changes in legal policies. Customer safety. Standard emission of fuel. Target market description Segmentation Segmentation focuses on various aspects that influence the buying decision of the customer. The segmentation is divided in four elements that are geographical, demographical, psychographic and behavioural. Geographical area involves the region which is focussed for attracting customers and where more luxury crowd turns up. Demographical segmentation includes the age, gender, income status, psychological and physical aspect of the customer. Then is the psychographic aspect which includes the lifestyle and purchasing power of customers. The behavioural aspect focuses on the study of stimuli and emotions of the person; it is related to feelings, love and compassion towards the product (Zoller, 2017). Geographical The worldwide area has been covered. It is spread all over the world at the posh location where the rich crowd gets collected. Demographical Target age section is young population above 30 specifically men with huge income (Ferrari, 2017d). Psychographic It involves the group of enthusiastic and energetic people who mostly belong to the urban areas. The lifestyle of people who aspire for Ferrari is lavish and luxury and who believes in show off within the society. Behavioural The premier customers are there who are loyal towards the company. Target market decision making process The company has chosen the niche market and targeted lavishness. The target market of Ferrari is rich customers who are conscious about status and seek importance. This segmented area also decides to enjoy the similar service in area of two wheelers as well that includes the motorbike which might come up as the style statement for youngsters Decision making process Step 1: Problem recognition First of all the need is analysed as to what customer aspire for. In case of Ferrari the customer rests at the self-esteem position where the only thing that matters is self-efficiency and status in the society and carrying this view the search has to be made. Step 2: Information search When mind makeup has been done search in context of Ferrari is made. The quality, costing, eco-friendly concerns are focussed along with the customers and expert review. Step 3: Evaluation After collecting the required information in context of the luxury cars and comparing it with the competitors the entire analysis is made. The data is measured and reviews gathered are studied thoroughly to arrive at final decision. Step 4: Purchase At last when the features, costing, quality, reviews and life span of product is analysed and evaluation process have been accomplished successfully the final purchases are made and for the concern of status, quality and position in world Ferrari becomes the choice of customers. Step 5: Post purchase evaluation The post purchase evaluation is the feedback that is received from the customer after availing the services. At this point the positive and negative impacts are noted down and satisfaction level of known. Measures are taken by the company to solve the issues that most of the customer faced (NAP, 2017) Social influences on buying behaviour The external factors highly influence the decision making process of the person. These forces change the need and perspective of the customer to make purchases. Such factors establish the competition in the market and render the chance to entrepreneurs to establish their business and target the niche market (Smith, 2016). The 2 external attributes that socially affect the decision making of the person are: family and society. Family Family involves the core family, friends and relatives that highly influence the decision and choice of the customer. Every person has the different view and perceives things in entirely different manner. This is likely to influence the decision of the person as various alternatives are suggested to them and they chose one best out of it (Dahl, 2013). Social class The impact of society on the decision making is another crucial aspect. The social aspect involves family as well as the status and mindset of the society which quotes the marital status, career of the customer. How much the pocket does allows and cost of maintenance charges should also be kept in mind while making purchases (Solomon, 2014). Psychological influences on buying behaviour Psychology is the mindset of customers that helps in increasing the interest in purchasing the product to fulfil the unmet needs. The psychological aspects constitutes of motivation, perception, learning, attitude and beliefs. Motivation It could be better understood with the help of Maslows hierarchy. The person who needs the basic amenities gets satisfied at the initial level only. In context of the brand Ferrari and its product car the motivational level is to gain something that depicts the status and living standard of the person. As per the current situation customer stands on the second last stage of Maslows need hierarchy which states the self-esteemed position in the society. They are not for the basic needs, these kinds of things are just to establish the standard and set up a higher position in the society (Vainikka, 2015). Perception The perception is the mind set and image that the person carries regarding the product they are planning to purchase. The perception helps in setting the brand positioning as well. Considering the purchase of Ferrari the name itself says it all that the person need something stylish, luxury and sporty. The perception constitutes of selecting the purchase, organising the collected information and thereafter interpreting the information to reach the final decision. Also the decision of the customer is highly influenced by the people around them (Rahman, 2015). Ferrari is the name that reflects comfort and lavishness, also to some people car is the statement of style while some consider it as a four wheeler that makes transportation easy for the long distance. Thus, along with need the attitude towards the product should also be defined in a clear manner so that retention might be achieved which at last lead to customer loyalty. Personal factors influences on buying behaviour Another crucial element that affects the decision making of the customer is personal factor that involves lifestyle, economic status, occupation, personality, age and self-esteem. In order to purchase the car the first thing that matters is what the age of the customer is, is he eligible to drive or not. Also the occupation of the person depends upon the decision making, by occupation it is meant about the designation of the employee. The top level manager of large organisation who has high pay scale might agree over Ferrari while other low level manager would settle at ford or Polo Vento. Therefore, only the need or desire to achieve something is not necessary for that better designation, personality, adequate age and the equivalent purchasing power is highly needed (Farah Fawaz, 2016). The two basic factors have been discussed as under: Personality Every person has the different personality and way of thinking. The personality of the person changes with the change in age, time, qualification, income and other personal reasons. The personality is the mash up of likings-disliking, habits, attitude towards the thing, way of perception and other multiple things. For the sake to make purchase decision in context of buying Ferrari the overall personality of person has to be analysed. The economic condition, ego, attitude towards Ferrari, thoughts in relation to the car, is this just a car of the status symbol and various other factors matters in constructing a personality and making the buying decision (Gil, Dwivedi Johnson, 2017). Lifestyle Lifestyle depicts the way a person carries out his/her life. The ambitions, level of spending, perception towards certain things and importance of getting luxury items and many more factors together form a lifestyle of the person. Also the lifestyle depends upon the society from where the person belongs. If a person is multi-millennium but the society where he/she resides focuses more on investing the fund rather than rotating it in the market and fulfilling the luxurious desire than the thoughts of the person also catches the same direction where the person stays, if they do the things of their mind then there are chances that they might face the criticism (Atwal Williams, 2017). Market strategy recommendations 4Ps of marketing mix Product From the societal point of view it is symbol of luxury. From the psychological point of view it is fastest moving leading sports car. From personal perspective it is the efforts and lavishness that one deserves after attaining certain designation (Liu, Li, Chen Balachander, 2017). Price Society measures the richness with the increasing cost of the car. Psychologically the vintage car costs $175,000 and the budget has to be set accordingly. Personally along with the cost of car the maintenance cost should also be added before making purchases. Place The distribution channels in all the three factors remain the same. The outlets of Ferrari are established in 52 countries and still it is planning to expand in the targeted countries. Promotion The promotions also do not differ socially, psychologically and personally, only the perception changes. Merchandising option is used to promote the product. The goodwill is the best way to promote things as the name says it all. Certain companies even take licensing permission to promote their product by connecting it to Ferrari so as to depict the quality (Haseeb, 2016). Conclusion Hence, the conclusion could be drawn that consumer behaviour is the vast topic that has to study specifically and then also the seller could not predict the buyers decision as it is highly fluctuating. There are various factors that affect the decision making of the person. The report is in context of purchasing Ferrari and for that first of all situational analysis has to be done which includes the background, vision, mission, swot and pestle analyst is to study the entire market situation. Thereafter the target market could be investigated which discusses the segmentation of the product. The effect of target market on the decision making which explains the decision making process that a customer undergoes. Along with this the market strategy that affects the decision making are also analysed which includes social influences, psychological influences and lastly the personal impact has been discussed. To finalise the marketing strategy and understand the buying behaviour 4Ps of the m arketing are investigated as well for developing the clear market knowledge. References Atwal, G., Williams, A. (2017). Luxury brand marketingthe experience is everything!. InAdvances in Luxury Brand Management(pp. 43-57). Palgrave Macmillan, Cham. Ballaban. M. (2014). Who will control Ferrari now? Viewed on 19th November 2017. https://jalopnik.com/who-will-control-ferrari-now-1652197657. Dahl, D. (2013). Social influence and consumer behavior.Journal of Consumer Research,40(2), iii-v. Farah, M. F., Fawaz, R. S. (2016). A Comparison of the Influence of Personal and Cultural Values on the Consumption of Luxury Goods across Arab Regions: Levant versus Gulf.Contemporary Management Research,12(2), 139. Farah, M. F., Fawaz, R. S. (2016). A Comparison of the Influence of Personal and Cultural Values on the Consumption of Luxury Goods across Arab Regions: Levant versus Gulf.Contemporary Management Research,12(2), 139. Ferrari. (2017a). Look back to the beginning. Viewed on 19th November 2017. https://auto.ferrari.com/en_EN/ongoing-heritage/company/history/. Ferrari. (2017b). Ferrari DNA. Viewed on 19th November 2017. https://corporate.ferrari.com/en/about-us/ferrari-dna. Ferrari. (2017c). Italian excellence the rest of the world can only dream of. Viewed on 19th November 2017. https://corporate.ferrari.com/en/about-us. Ferrari. (2017d). Demographics of Ferrari owners? Viewed on 19th November 2017. https://www.ferrarichat.com/forum/threads/demographics-of-ferrari-owners.223187/. Gil, L. A., Gil, L. A., Dwivedi, A., Dwivedi, A., Johnson, L. W., Johnson, L. W. (2017). Effect of popularity and peer pressure on attitudes toward luxury among teens.Young Consumers,18(1), 84-93. Haseeb. (2016). Marketing plan of Ferrari. Viewed on 19th November 2017. https://marketingdawn.com/marketing-plan-of-ferrari/. Liu, Y., Li, K. J., Chen, H., Balachander, S. (2017). The Effects of Products Aesthetic Design on Demand and Marketing-Mix Effectiveness: The Role of Segment Prototypicality and Brand Consistency.Journal of Marketing,81(1), 83-102. Munoz. F. (2017). Super luxury car sales posted a double digit growth as world billionaires expand. Viewed on 19th November 2017. https://www.jato.com/luxury-car-sales-posted-a-double-digit-growth-as-world-billionaires-expand/. NAP. (2017). Consumer decision making, information needs, and communication strategies, viewed on 19th November 2017. https://www.nap.edu/read/9698/chapter/6. Ound. I. (2012). Ferrari main competitors. Viewed on 19th November 2017. https://www.ferrarichat.com/forum/threads/ferrari-main-competitor.483378/. Rahman. S. (2015).Ferrari- positioning strategy. Viewed on 19th November 2017. https://sunnyrahman05.blogspot.in/2015/04/ferrari-positioning-strategy.html. Smith. K. (2016). Car and millennial: investigating the impact of social media. Viewed on 19th November 2017. https://www.brandwatch.com/blog/millennials-cars-investigating-the-impact-of-social-on-sales/. Solomon, M. R. (2014).Consumer behavior: Buying, having, and being(Vol. 10). Upper Saddle River, NJ: Prentice Hall. Vainikka, B. (2015). Psychological Factors Influencing Consumer Behaviour. Zoller. S. (2017). How to segment your target market successfully: a Porsche case study. Viewed on 19th November 2017. https://www.stephenzoeller.com/targetmarket-segment-porsche/