The only way to manufacture a more exclusive product then six handmade Ferrari’s is by making the purchase of each car invitation only.
In the past week of class we learned about the different manufacturing processes used to make products. Between process focus, repetitive focus, product focus and mass customization we learned the pros and cons of each set up. What we are looking at here is a highly specialized and customizable version of process focus manufacturing. Ferrari, as we all know, likes to operate in a process focus environment targeting most affluent consumers on the market. Ferrari is tied to high price high quality products, just like the Rolex example in class. All of us assume a Ferrari is among the highest quality product on the market, even when placed side by side with many of its supercar counterparts.
Ferrari, with the six new Sergio cars, took product focus to the extreme. They traded in on their name to entice potential customers to pay upwards of a million dollars for the new line cars. Instead of worrying about forecasting or any type of market research, Ferrari built a car with the intention they would sell effortlessly. The result in an invitation-only model has clearly paid off for Ferrari, as all six Sergio’s have already been sold. While the identities of the new owners are kept confidential, we are told the invitations were given to previous loyal Ferrari owners.
With this heavy process focus comes the ability for massive customization options. Along with the usual online customizations that can be implemented into manufacturing, such as colors and finishes, the team went above and beyond to meet consumer satisfactions. After the purchase of a new Sergio, a life size clay model of the car is created so buyers know exactly what they are getting.
I personally think this is a great way to manufacture a car for optimal appeal. The ultra-rich pride themselves on the exclusivity of the items they own. Ferrari took a shortcut to creating a uniquely exclusive product with a one of a kind manufacturing and sales model. Being this highly process focused I cannot see anyone who bought this car having even the slightest bit of buyers remorse. I also think that creating a clay model of the car to aid the customer’s options in the customization process is ingenious. Many times when customizing a product online some parts do not come out exactly as intended. Unfortunately color and sizing mishaps can happen due to computer monitor resolutions or bugs with rendering software. Ferrari found an exact way to replicate the final product allowing so that every little customer specific nuance is included in their one of a kind Sergio.
What do think of having this low of a production run?
How to do you think the clay models influenced sale?
9 thoughts on “Whats more exclusive then 6 hand made Ferraris?”
Interesting post. I saw an article on this a few days ago as well and was shocked at how exclusive they are being for this new model. Ferrari has built the reputation of being high priced sports cars that the average person wouldn’t be able to afford. Personally I think only making 6 models for this model could build their reputation even more. With regards to the clay models I think it did influence sales because if you are spending that much money for a car I would like to see what is being built before anything else happens.
With a custom product like a Ferrari it is possible to get super detailed in the production process. Custom products are simply cooler than anything else, like you said, nobody else can have this car. It doesn’t matter if it takes long or how much it costs. It’s awesome because the company is focused simply on making the best possible product instead of an economically feasible one. I make songs with the same idea. I don’t try to make a new song quickly because if I did it would sound rushed. Then I would listen to it a few months later and regret that I didn’t add something to the original recording. Quality is all that matters at the end of the day. You should look into the Pagani factory when you get a chance. It’s a lesser known brand that makes amazing custom race cars with very low production volumes.
I think what Ferrari is doing is helping them stronger their position in the market. It is costly producing only six cars but at the same time loyal customers of Ferrari are willing to pay the high price to own one of the six cars. At the same time this strategy shows that Ferrari is focused on producing a high quality product in low volume. The customization option makes the product unique too. Even though they will only produce only six cars, there will be no loss for Ferrari for this type of production strategy. One of the main gains is the loyal customers coming back and buying Ferrari.
Ferrari’s production run is, in my opinion, a good idea to up their market stance. They will be an even more exclusive brand among the rich which draws more desire from other consumers who can afford it. Since this car is extremely exclusive, the demand will go up and possibly drive the value and price of the cars up. The amount of customization and the clay model also helped those consumers know exactly what they are getting so they can have the possible option to decline the invite if they do not want what this car has to offer.
This is a very interesting post. I think the reason that Ferrari can get away with producing such a low volume of cars is because of their already established brand. Its such a great marketing tool and it actually enhances it. People tend to value things more that aren’t available to everyone else. The clay models only help the sales process because potential buyers get a chance to see a model before arriving at the event.
The high-end car market is an interesting segment to look at because of the exclusivity and prestige that is associated with it. This is a great post because it takes the idea of the product focus concept to a new level. Ferrari already caters to a specific section of the market, and they have found a way to make it even more elite. I think that the clay model especially signifies this because they went to the extreme to show the individualized product that clients would be receiving. Overall, this is a great idea because this model entices an even more select segment of the high-end car market, similar to Aston Martin’s One-77 that also had a limited production of only 77 vehicles. Aston Martin had the same result of all of the cars being sold almost immediately, which shows how successful this kind of low production concept can be in the end.
Coming from a fan of Ferrari, it’s no surprise that this is an invitation-only buy, as it is not the first time they have utilized that selling-format. They also recently unveiled the F60 America, which was limited to 10 cars with a $2.5 million dollar price tag. Ferrari also has a program in which they will custom-build a one-off car as well; if you were so financially inclined. Getting to your questions, I like the idea of limited production runs for a couple of reasons. From a wealthy consumer, the idea of exclusivity that you touched on is huge. People of that status don’t want to be at a stop light next to another Sergio or F60, and with the 16 total cars in the world between the 2 models, I think the chances are pretty good that they’ll get their wish. As far as the clay model influencing their decision; I don’t think they needed to see it, since the people who bought this car, would likely buy anything Ferrari puts out anyway.
Niche, pricy, one of kind items are in high demand. People want a way to differentiate themselves, as do the companies producing these products. In Ferrari’s case, this was probably a smart move. While it probably cost them a lot to manufacture these six customized cars, the return rate was probably much higher. Having an invitation to purchase makes those six people feel different and more special than their peers. However, I think this tactic is a one time shot. If they continue to make more cars and invite more people, the less important and special people will view it.
I believe the clay models definitely impacted sales as it shows the innovation of the company with practical functionality for those seeking to purchase one of these fine rides as they can see exactly what they are about to purchase and help get rid of any notion of buyer’s regret which is the primary fear of those about to purchase something extremely expensive.
This process and move by Ferrari also seemed to create a high amount of publicity surrounding the brand- most of it free from car fanatics writing articles or blogging about it. The company made profit from selling these models, and also captured free attention from consumers. Great move by Ferrari, and great post by you!