ferrari goes one brand extension too far

Influx Insights — 2007-10-24T11:02:39Z

Ferrari’s marketing team is having a lot of fun extending the brand and opening up stores to celebrate and sell the brand. The progress has been relentless and broad, ranging from the obvious clothing lines and key chains to the more surprising Acer laptop. The rapid build of these extensions is starting to look reminiscent of fellow Italian brand, Gucci, when, at one point in the late 70s it had over 1500 product licenses.

Marketing experts will tell you that brand extensions are fine as long as they remain true to the brand’s DNA. There’s also another theory based on credits and debits, which states brands can do what they like as long as they continue to out perform on the positive aspects of their core DNA. In the case of Ferrari, this means winning drivers and constructors titles in Formula One, which they achieved in Brazil last weekend and the continued production of head-turning automobiles.

However, their latest extension may suggest that madness is creeping into the system, or the team invited the editor of The Onion to make a pick. A 7,000 Euro Ferrari-branded Segway isn’t something that one would naturally expect from Ferrari, it’s as far from the brand’s DNA as it could possibly be and its dangerously touching the point of ridicule.

Perhaps I am completely missing the point and this is the first signal of a new “electric powered” Ferrari brand.

Posted by Ed Cotton

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ferrari goes one brand extension too far