Ford vs. Ferrari Case Study

Ford vs. Ferrari #

fordferrari.png

Fords perceived value goes up
Ferrari keeps price high but has high margin

Ford has high advertising to create value
-TOugh, durable man

• Pays $50 million for NFL sponsorship
• More for value

Ferrari

• Exclusive, luxury, italian
• zero ad budget
• Limits care sales to boost exclusivity and creates scarcity
• 100 ford dealerships for every 1
• avg 50 with house worth 1 million

You can buy 12 ford fusions for one ferrari
low price with high value
Key takeaways

1. Leverage brand to raise perceived value
2. Emphasizing value, accessibliity and more for less is effective for firms keeping price low
3. exclusivity and scarcity increase perceived value

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