A global brand study shows that Ferrari’s brand value is up and it has extended its brand strength advantage over second-place Porsche.
Ferrari’s brand value increased 40% to $6.15 billion, according to valuation and strategy consultancy Brand Finance, which values the brands of thousands of the world’s biggest companies annually.
Brands are first evaluated to determine their power and strength based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation, and given a corresponding letter grade up to AAA+.
Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value. The world’s 100 most valuable auto brands are then ranked and included in the Brand Finance Auto 100.
Not only is Ferrari the world’s most powerful auto brand, it is among the top 10 strongest brands from any industry. Its brand strength has improved by three points this year to 92, leading to an upgrading of its brand rating to the maximum AAA+ designation.
The strength of Ferrari’s brand is all the more remarkable, given its increasingly commercial approach and improving revenues.
Former Ferrari Chairman Luca di Montezemolo enforced a strict production cap of 7,000 vehicles, convinced that this was essential to maintaining perceived exclusivity and brand strength. However, since Sergio Marchionne took command, and particularly since Ferrari’s IPO, a less puritanical approach has been employed. The annual production cap has been raised to 9,000. This increased commercial exploitation of the brand has seen brand value surge 40% to US$6.15 billion this year.
“The fact Ferrari has boosted revenues without compromising brand strength suggests that it has found the perfect formula to sustainably exploit brand equity to maximize shareholder value,” said Brand Finance CEO David Haigh in a release.