ACADEMIC TASK
Course Code: MKT201 Course Title: PRINCIPLES OF MARKETING
Course Instructor: Dr. Rajesh Vemula
Academic Task No.: 01 Academic Task Title:
Date of Allotment: 27-08-2024 Date of submission:17-09-2024
Student’s Roll no: RQ2304B45 Student’s Reg. no:12301879
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as specified at the time of assigning the task by the instructor)
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academic tasks)
Declaration:
I declare that this Assignment is my individual work. I have not copied it from any other
student’s work or from any other source except where due acknowledgement is made
explicitly in the text, nor has any part been written for me by any other person.
Student’s Signature: VAKATI AKHIL TEJA
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INTRODUCTION
HISTORY OF LAMBORGHINI S.P.A:
Established in 1963 by Ferruccio Lamborghini, Lamborghini S.p.A. is a Sant'Agata
Bolognese-based premium sports vehicle manufacturer in Italy. After becoming a prosperous
tractor manufacturer, Ferruccio was not happy with his Ferraris' dependability and set out to
improve the grand touring car. When the 350 GT made its debut in 1964, Lamborghini's
reputation for performance and elegant engineering was cemented.
The world's first mid-engine supercar, the groundbreaking Miura, was unveiled by
Lamborghini in 1966. It was created by Marcello Gandini and established Lamborghini as a
formidable rival to Ferrari. It raised the bar for sports vehicle design.
However, the oil crisis and the worldwide economic collapse of the 1970s brought with them
financial troubles. In 1972, Ferruccio liquidated his shares, and Lamborghini filed into
bankruptcy in 1978.
When the Mimran brothers took over the business in the early 1980s, they brought stability
and the renowned Countach, which turned into a decade-defining vehicle.
Chrysler acquired Lamborghini in 1987, which paved the way for the 1990 creation of the
Diablo. Despite the Diablo's popularity, Lamborghini was once more sold, this time to the
Indonesian business MegaTech in 1994.
When Lamborghini was purchased by Audi, a division of the Volkswagen Group, in 1998, the
brand saw a resurgence. Under Audi, Lamborghini dramatically increased the brand's sales,
quality, and dependability with the introduction of new models including the Gallardo (2003)
and Murciélago (2001).
Further innovation came in the 2010s with the Huracán and Aventador models, and in 2018
Lamborghini's market was enlarged with the launch of the Urus SUV.
Lamborghini is still a pioneer in the high-performance car industry today because it combines
performance, luxury, and cutting-edge technology.
PRODUCT:
Lamborghini has a wide range of models available with them and dealerships in
other countries.
I have selected my favorite super car model of Lamborghini, that is
HURACÁN STERRATO.
PRICE:
A sports car inspired by rallies, the Huracán Sterrato has an air intake snorkel on
top of its roof, all-terrain tires, and an elevated suspension. It is enjoyable to
drive off-road and can manage both the road and the racetrack.
Which makes the car value up to Rs.4.61 Crores.
PROMOTION STRATEGIES:
Lamborghini uses a variety of complex marketing methods that draw on
technical marketing principles to maintain its position as a top luxury sports
vehicle brand. some of Lamborghini's significant marketing initiatives, which I
found out are:
1. Brand Positioning & Differentiation
Lamborghini markets itself as an ultra-luxurious, high-performance sports
vehicle manufacturer. The brand uses distinction as a strategy, emphasizing
exclusivity, performance, and Italian workmanship. Lamborghini's
positioning is further bolstered by pushing limited production versions,
unique designs, and innovative engineering, which set it apart from
competitors like as Ferrari and McLaren.
2. Target market segmentation and niche marketing
Lamborghini employs target market segmentation to target high-net-
worth people (HNWIs), automotive aficionados, and luxury lifestyle
buyers. The brand uses psychographic segmentation to target clients that
value exclusivity, status, and performance. Lamborghini employs niche
marketing to appeal to a tiny but highly profitable sector prepared to pay
a premium for its products.
This Photo by Unknown Author is licensed under CC BY-SA-NC
3. Integrated marketing communications (IMC)
Lamborghini uses Integrated Marketing Communications (IMC) to offer
a consistent brand message across many channels such as digital
marketing, social media, print advertising, events, and influencer
relationships. The IMC strategy guarantees that all promotional elements
work together to produce a consistent brand narrative that maintains
Lamborghini's luxury and performance image.
This Photo by Unknown Author is licensed
under CC BY-SA
4. Experiential Marketing
The corporation makes significant investments in experiential marketing
to create memorable brand encounters. Customers can engage directly
with the brand through events like as exclusive test drives, global
automobile debuts at high-profile locations, and private previews for
potential buyers and influencers. These encounters foster an emotional
connection and generate word-of-mouth marketing, which is critical for
premium businesses.
5. Content marketing and storytelling
Lamborghini uses content marketing to connect with its target audience
through intriguing narrative. The brand produces high-quality video
content, blog posts, and social media pieces that highlight the legacy,
innovation, and distinctive design of its vehicles. By focusing on material
that emphasizes the lifestyle and emotional appeal of owning a
Lamborghini, the brand broadens its value proposition beyond product
features.
6. Luxury and Emotional Branding
Lamborghini's marketing approach is based on luxury branding ideas that
emphasize scarcity, exclusivity, and status. The brand uses emotional
branding to create advertisements that inspire strong emotions about
speed, power, and status, developing a profound emotional connection
with its clients. This method promotes brand loyalty and justifies
premium pricing.
7. Digital and Social Media Strategies
Lamborghini's digital marketing strategy leverages channels such as
Instagram, YouTube, and Facebook to reach a global audience. To
increase interaction and cultivate a strong community of followers, the
brand employs social media marketing to publish visually appealing
material such as car reveal videos, behind-the-scenes glimpses, and
customer testimonials. Influencer marketing may also be used to increase
reach and reputation by collaborating with automotive influencers and
lifestyle bloggers.
8. Event Marketing and Sponsorships
Lamborghini uses event marketing to exhibit its products to potential
buyers by attending prominent automobile shows (such as the Geneva
Motor Show) and luxury events. Sponsorship marketing involves
associating the business with luxury and leisure events that are consistent
with its brand values, increasing its visibility among affluent customers.
9. CRM and personalization
Lamborghini use sophisticated Customer Relationship Management (CRM)
systems to manage relationships with customers and prospects. This method
allows for personalization in marketing efforts, such as sending tailored
event invitations, providing exclusive previews of new models, and
modifying post-purchase experiences, all of which assist to nurture consumer
connections and increase brand loyalty.
10.Omnichannel Marketing Strategy
The brand uses an omnichannel marketing strategy to ensure a consistent
consumer experience across all touchpoints. Whether a client interacts
with Lamborghini online (via the website or social media) or offline (at
dealerships and events), the experience is uniform and cohesive,
emphasizing the brand's luxury and performance narratives.
COMPETITORS:
Lamborghini competes in the premium sports car and supercar category against
other high-end automotive companies noted for their performance, exclusivity,
and luxury appeal. Lamborghini's key competitors include Ferrari, Porsche,
McLaren, Aston Martin, Bugatti, and Bentley. Each of these brands has its own
distinct selling feature, such as legacy, innovation, or design, and they all
compete for market share in the luxury and ultra-luxury car segments.
“MARKET CAPITALIZATION OF LAMBORGHINI: $41 billion”
• Ferrari N.V.
Market capitalization: around $54 billion.
Overview: Ferrari, known for its racing background and premium sports
cars, is a direct competitor with a larger brand following and higher
market value than Lamborghini.
• Porsche AG
Market capitalization: around $91 billion.
Overview: Provides a selection of high-performance sports vehicles and
SUVs. Porsche's bigger product variety and higher market value
distinguish it from Lamborghini.
• McLaren Automotive
Valuation: around $2 billion.
Overview: Concentrates on lightweight, high-performance supercars.
McLaren's valuation is lower, but its performance is comparable to
Lamborghini's.
• Aston Martin Lagonda
Market capitalization: around $1.5 billion.
Overview: Famous for its premium grand touring cars and relationship
with James Bond. Aston Martin has a smaller market value and
concentrates on various characteristics of luxury than Lamborghini.
• Bugatti Automotive S.A.S.
Market Capitalization: Not publicly traded, estimated value of around $2
billion (based on parent firm VW Group).
Overview: Specializing in ultra-luxury hyper cars such as the Chiron.
Bugatti, like Lamborghini, focuses on extreme performance and
exclusivity.
• Bentley Motors Ltd.
Market Capitalization: Not publicly traded, estimated value of around $7
billion (based on parent firm VW Group).
Overview: Known for its premium grand tourers and SUVs. Bentley's
emphasis on grandeur contrasts with Lamborghini's performance-oriented
attitude.
SEGMENTING, TARGETING AND POSITIONING OF
LAMBORGHINI
1) Segmentation.
Segmentation entails breaking a larger market into distinct groups based on
common criteria. Lamborghini employs segmentation to discover distinct
client groups that share its brand values and product offerings.
➢ Demographic segmentation:
Income: Targets high-net-worth individuals (HNWIs) and ultra-high-net-
worth individuals (UHNWIs) who can afford to buy premium sports
automobiles
Age: Targets predominantly middle-aged (35-55) to older people (55+),
who are more likely to have large disposable income.
Gender: Traditionally aimed at male purchasers, Lamborghini has
expanded its appeal to accommodate upscale female clients.
➢ Psychographic segmentation:
Lifestyle: Designed for clients that value exclusivity, prestige, and one-
of-a-kind experiences.
Personality: Ideal for thrill seekers, adventurers, and people who value
performance, speed, and cutting-edge technology.
Values and Interests: Designed for people who are passionate about
luxury autos, motorsports, and automotive innovation.
➢ Behavioural Segmentation:
Usage Rate: Targets clients who are automotive fanatics, collectors, or
frequently upgrade their vehicles.
Loyalty Status: Targets brand loyalists who have previously purchased a
Lamborghini and are more inclined to do so again.
Benefits sought: Customers seek prestige symbols, excellent
performance, creative technology, and exclusivity.
This Photo by Unknown Author is licensed under CC BY-SA
2. Targeting.
Choosing the most desirable segments found during the segmentation process
and concentrating marketing efforts on them is known as targeting. To
concentrate on a very particular market segment, Lamborghini uses a
concentrated targeting method, sometimes referred to as niche marketing. This
enables Lamborghini to efficiently and successfully customize its marketing
initiatives.
➢ Primary Target Market:
High-Net-Worth Individuals (HNWIs) and Ultra-High-Net-
Worth Individuals (UHNWIs): Lamborghini targets wealthy
individuals who seek luxury, status, and performance. These
customers view Lamborghini cars as both an investment and a
status symbol.
Car Enthusiasts and Collectors: Focuses on those who have a
passion for supercars and often have a collection of high-end
vehicles. These customers are interested in limited editions and
exclusive models.
Luxury Lifestyle Consumers: Targets customers who live a
luxury lifestyle and are interested in the exclusivity, prestige, and
social status associated with owning a Lamborghini.
➢ Secondary Market of Interest:
Tech-Savvy Younger Wealthy Consumers: Lamborghini has
begun focusing on a younger generation of affluent consumers
who are tech-savvy and who desire luxury vehicles that combine
performance, versatility, and cutting-edge technology. Examples
of these models are the Urus SUV and hybrid supercars.
3. Positioning
Establishing a brand's perception within the intended audience is the goal of
positioning. Lamborghini uses a differentiated positioning approach to set itself
apart from other high-end and performance automobile manufacturers. It
markets itself as a producer of opulent, high-performance sports vehicles that
blend Italian exclusivity, creativity, and workmanship with an unmatched
driving experience.
Positioning Text:
"Lamborghini is positioned as the ultimate luxury sports car brand that delivers
unmatched performance, cutting-edge technology, and Italian artistry to affluent
individuals who seek exclusivity, status, and thrilling experiences on the road."
Performance and Speed: Lamborghini markets its vehicles as having great
performance, with top speeds that appeal to thrill-seekers and potent engines.
Their marketing emphasizes this by calling them "everyday supercars" with
tremendous performance and power.
Prestige and Exclusivity: The brand highlights the restricted number of
vehicles it produces, which makes each vehicle valuable and distinctive. Every
model's uniqueness elevates it to the level of a luxury good.
Innovation and Technology: Lamborghini uses cutting-edge aerodynamics,
lightweight construction, hybrid drivetrains, and driving dynamics, among other
automotive innovations. In the sports vehicle market, this presents the brand as
inventive and forward-thinking.
Design & Italian ancestry: The company makes a point of showcasing its
Italian ancestry by highlighting exquisite craftsmanship, original design, and a
bold, standout style.
Emotional Appeal: Lamborghini positions its cars as not just vehicles but as
emotional experiences. The brand uses storytelling to evoke feelings of power,
passion, freedom, and exclusivity.
RECOMMENDATIONS
1. Strengthen Interaction on Digital Platforms
Utilize upcoming Platforms: To interact with younger, tech-savvy audiences,
concentrate on using digital channels and upcoming social media platforms.
Invest in interactive material so that prospective buyers may experience
Lamborghini cars in a virtual environment. Examples of this type of content
include augmented reality apps and virtual reality experiences.
2. Intensify Brand Exclusiveness
Limited Edition Models: Keep highlighting exclusivity by working with high-
end brands and producing limited-edition models.
VIP parties: To bolster the brand's luxury positioning, host private parties or
chauffeur-driven experiences for affluent people.
3. Green Projects
Green Technology: To appeal to people who care about the environment, hasten
the development of hybrid or electric vehicles while upholding the brand's
standards for luxury and performance.
Sustainable Practices: To draw in environmentally conscientious customers,
highlight Lamborghini's dedication to sustainable production and materials.
4. Improved Customer Experience Personalization: To improve the luxury
experience, provide more individualized options for vehicle customization and
the purchase process.
Post-Purchase Support: To guarantee continuous satisfaction and foster
enduring brand loyalty, enhance after-sales services and customer support.
5. International Market Growth
New Markets: Look at prospects in developing nations including regions of
Asia and the Middle East that are seeing an increase in the number of wealthy
people.
Localized marketing refers to adjusting marketing tactics to suit regional
cultural norms and trends in order to establish stronger connections with target
markets.
CONCLUSION:
In summary, Lamborghini's marketing plan effectively maintains its esteemed
reputation, although there are several crucial areas where more innovation
might strengthen its place in the market.
Increasing digital interaction via new media and interactive content will draw in
younger, tech-savvy consumers.
Maintaining the exclusivity of the brand through VIP events and limited-edition
models will keep high-net-worth individuals interested in it.
Using eco-friendly technologies and conscientious business practices to
promote sustainability will appeal to people who care about the environment.
Enhancing the client experience with customized alternatives and first-rate post-
purchase assistance will promote enduring loyalty.
Growing affluent demographics can be targeted by specialized marketing tactics
and market expansion.
Furthermore, utilizing influencer collaborations and captivating content
marketing will improve brand awareness and allure.
Lamborghini's strategy will be further improved by incorporating user feedback
and cultivating a passionate community.
***THANK YOU***
