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BMW VS Ferrari Students: Heather Russell, Michael Esposito, Cindy Tsai, Thomas Stasko, Ezzana Leakemariam Teacher: Dianne Ness      Subject: Integrated Marketing Communications Demographic Segmentation – defines market according to the following: Segmenting

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Bmw vs ferrari l.jpg

BMW VS Ferrari

Students: Heather Russell, Michael Esposito, Cindy Tsai, Thomas Stasko, Ezzana Leakemariam

Teacher: Dianne Ness     

Subject: Integrated Marketing Communications

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Demographic Segmentation – defines market according to the following:


  • Demographic Segmentation – defines market according to the following:

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Segmenting following:

Psychological Segmentation- identifies market

according to lifestyle characteristics

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Segmenting following:

  • Geographic Segmentation- The identification of target markets based on the regional, urban, or rural locations of the customers

  • Both car companies have different models of vehicles to help each individual accomplish a safe drive where ever they are coming from.

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The positioning strategies: following:

Product Differentiation

BMW – cars communicate valued differences and distinguish it from other competitors by image (described as a premium brand), quality (uses cutting edge technology) and design (very sleek and unique)

  • FERRARI – is a car in the Super luxury sub-category and is distinctly more expensive compared to the luxury cars such as BMW, Lexus, and Mercedes.

    Brand Leadership Positioning

    BMW- has maintained its leadership brand positioning for many years. Its success is the result of a consistent strategy and is oriented towards meeting the needs of customers.

    FERRARI- it is probably the only car maker that never worry at competition price its name is unmatchable.

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The positioning strategies: following:

Head-On Positioning (comparative positioning)

  • BMW- There is a sign of a little comparison between BMW and perhaps Mercedes but the ads don’t usually show it. It is only in minds of customers who tend to compare these two cars quite often.

  • FERRARI- It is a one of a kind automobile that doesn’t need to be compared to other brands since it has a well-developed name in the car’s market.

    Innovation Positioning

  • BMW- uses continuous innovation. As an example we have an innovation of a completely redesign the 3-series model with even better power than ever before, a stiffer suspension, taillight lenses.

  • FERRARI- the latest innovation is the 360 Modena. The 360 Modena combines Ferrari heritage with innovation.

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The positioning strategies: following:

Price Positioning

  • BMW- In this case searching for the best possible value is a little complicated because cars like BMW has ranked on a high-end price level and are relatively expensive and therefore their customers are usually well off people.

  • FERRARI- Similar situation, as with BMW although Ferrari cars are designed and sold to a more serious group of customers since the price can be very costly.

    Lifestyle Positioning

  • BMW- Young urban professionals usually drive these luxury cars. It is a question of a status and is associated with it.

  • FERRARI- Baby boomers by purchasing Ferrari might see this as an opportunity to boost up their image position.

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Product following: BMW

  • Wide selection of models

  • Different styles to meet the customers needs

  • BMW Universal Bluetooth

  • iPod with BMW

  • BMW accessories

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Product following: Ferrari

  • High performance vehicles

  • Carrozzeria Scagliette - program to allow clients to personalizing their cars

  • A statement of class

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Place following: BMW

  • A lot of locations to serve the customer better

55 Auto Park Circle


4505 Dixie Road


1155 Leslie Street


8111 Kennedy Road


480 Steeles Avenue West


11 Sunlight Park Road


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Place following: Ferrari

  • 2 locations in Toronto

  • 1 location in Vancouver

  • 1 location in Montreal

  • Located in Yorkville and Woodbridge

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Promotion following: BMW

  • CRM Activities

    • CRM is, how BMW:

      • Finds you

      • Gets to know you

      • Keeps in touch with you

      • Tries to ensure you get what you want

      • Checks you are getting what you were promised

  • Telemarketing

    • Follow-up on each mailing to assure greatest response

  • Radio Exposure

    • Reach out to customers during sales events

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    Promotion following: BMW

    • Brochure

      • Information on models and the overall company

    • E-Newsletter

      • A quarterly “What’s New” e-newsletter

    • Billboards

      • Create local dealership awareness

    • Banners

      • Advertise within local business locations

      • Images with call-to-action

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    Promotion following: Ferrari

    • F1

      • Advertise through the use of their F1 race car

    • Brochure

      • Information about the different models

    • Reputation

      • Relay on word of mouth

      • Since the car only meets a small amount of societies demands (cost) they expect customers who have interest to visit a dealership for more information

      • Ferrari knows all of their clients

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    Price following:


    • Least expensive BMW: 323i (3 series) - $35,200

    • Most expensive BMW: 760Li (7 series) - $174,500

    • Ferrari

    • Least expensive Ferrari: 360 Modena - $170,200

    • Most expensive Ferrari : Enzo - $700,000

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    Brand Loyalty – The degree of attachment to a particular brand expressed by a consumer

    Both BMW and Ferrari are in the BRAND INSISTENCE stage.

    - the consumer searches the market for the specific brand

    consumer buys one brand only

    if the brand is not available the purchase is postponed

    All of their clients are dedicated to only purchasing that type of car and continue doing so each time they need a new vehicle.


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    USP brand expressed by a consumer

    • BMW Status: BMW is able to distinguish its self from its competition because it is more then just a luxury car.

      BMW has meet the demands of customers craving luxury while also offering versatility to customers.

    • Ferrari Status: If you purchase a Ferrari you are making a statement that you are better and more powerful then any other person driving any other brand.

      Its more then just a car. It’s a lifestyle. The client develops a relationship with the car and learns about its needs and how to make the car last.