Akhil Menon

LAMBORGHINI

LAMBORGHINI• Type – Private

• Industry – Automobile Manufacturing

• Ownership – Audi AG

• Founded – Sant’ Agata Bolognese, Italy as Automobili Ferruccio Lamborghini S.p.a

• Founder – Ferrucio Lamborghini

• Head Quarters – Sant’ Agata Bolognese, Italy

• Area Served – Worldwide

• Key people – Stephan Winkelmann (President)

• Parent Company – Audi AG

• Category – Sports Cars & Super Cars

• Sector – Automobile

• Tagline/Slogan – Feels Italian wherever you are (But I’m two German sports cars)

• USP – Superior Handling & Performance.

HISTORY

Ferrucio Lamborghini, was also the founder of Lamborghini Trattori (which was one of the pioneer manufacturers of agricultural equipments). He founded Automobili Lamborghini to make high-end sports car in the year 1963 after being dismissed by Enzo Ferrari.

OWNERSHIP

•Hard times befell the company ownership when the sales declined in the wake of the 1973 worldwide financial downturn and the then oil crisis.

• This lead to three time ownership change in the same decade, including a bankruptcy in 1978 before Chrysler corporation took over control.

•Chrysler sold Lamborghini to Malaysian investment group Mycom Setdco and later to Indonesian group V’power corporation.

•Lack of success continued through the 1990s until Mycom Setdco and V’power sold the ownership to the Audi AG subsidiary of Volkswagen Group on 27th July 1998.

LOGO• The world of bull fighting has always been a keypart of Lamborghini’s Identity.

• The logo has been derived from Feruccio Lamborghini’s love for bull fights. For Instance, Gallardo is named after a famous breed of fighting bull.

• Most of the models have been named after famous stud bulls.

• The name stands for reliability, technically excellence and quality.

• 120 dealerships worldwide.

• Headquartered in Sant Agata Bolognese in North Eastern, Italy.

• Manufactures some of the world’s most sought after super sports cars.

• Their latest is the Aventador LP 700 – 4, which has taken them to a new milestone in the super sports car segment.

• Lamborghini’s flagship models are 350 GT, Miura, Espada, Countach, Diablo, Murcielago, Reventon Coupe, Reventon Roadster, Gallardo LP – 560, Spyder, Gallardo LP 570-4, Superleggera.

STP

Segment – The upper class of the society.

Target Group – The rich & affluent from the urban.

Positioning - Premium Super sports car for people who want superior performance.

SWOT ANALYSIS

Strength - It has been known for superior handling & high speed performance.

Technology sharing with sister & parent concerns – Audi & Volkswagen.

A small workforce of just around 850 employees who design and satisfy the global demand by producing around 1800 vehicles a year.

• Established the standard of a mid-rear engine layout & rear wheel drive design for sports cars & super sports cars.

• Has been one of the top of the mind brand recall brands owing to its stylish looks and power performance.

Weakness

Being a super sports car, it has always been allegedly under the scanner of environmentalists who feel fuel consumption is too high.

Due to its pricing and premiuim nature, the sales are quickly affected by the macro-economics events like the late 2000s crisis which lead to halving of its annual sales.

OPPORTUNITY• To increase customer relations events & activities which will showcase and enhance the

ownership experience.

• To increase the global reach as currently it has been restricted to a few regions.

• To do away with the regional quota system & sell on the basis of demand, it was seen that when they launched their models in India – the demand far exceeded the supply.

THREATS

The threat is the niche regional players & custom modifiers who have the regional presence & ability to make a car to exact taste of the buyer.

Government policies against high fuel consumption.

STRUCTURE• As in 2011, Lamborghini was a structured wholly owned subsidiary of AUDI AG named

Automobili Lamborghini S.P.A

• Automobili Lamborghini S.p.A. controls five other principal subsidiaries.

• Ducati Motor Holding S.p.A., a reputed manufacturer of motorbikes

• Italdesign Giugiaro S.p.A. - prototyping firm that provides services to the entire Volkswagen Group

• MML S.p.A. (Motori Marini Lamborghini) is a manufacturer of marine engine blocks

• VOLKSWAGEN GROUP ITALIA S.p.A., sells Audi and other Volkswagen Group vehicles in Italy.

COMPETITORS • Ferrari

• Porsche

• Jaguar

• Aston Martin

Sales - By sales, the most important markets in 2004 for Lamborghini's sports cars are the U.S. (41%), Germany (13%), Great Britain (9%) and Japan (8%). Prior to the launch of the Gallardo in 2003, Lamborghini produced approximately 400 vehicles per year; in 2011 Lamborghini produced 1,711 vehicles