Advertising Analysis - Lamborghini

By: Brian Farrell & Chris Finck Adv 275

History/Background Automobili Lamborghini S.p.A., commonly referred to as Lamborghini, is an Italian automaker based in the small Italian town of Sant’Agata Bolognese. Ferruccio Lamborghini, an automobile manufacturer, founded the company in 1963, with the objective of producing a luxury car to compete with established brands like Ferrari.

Lamborghini released its first models in the mid1960s. They were immediately recognized for their power, comfort, and refinement. The company gained wide acclaim in 1966 for the Miura sports coupé, which established mid-engine design as the standard layout for high-performance cars of the era. After a decade of rapid growth, the company began to struggle as sales plunged in the wake of the 1973 oil crisis and the resulting world financial recession. After going through bankruptcy and three changes in ownership, Lamborghini came under the corporate umbrella of the Chrysler Corporation in 1987. The American company failed to return the automaker to profitability and sold it to Indonesian interests in 1994. Lamborghini’s lack of success continued through the 1990s, until the company was sold in 1998 to AUDI AG (Audi), a member of the Volkswagen Group. Audi’s ownership marked the beginning of a period of stability and increased productivity for Lamborghini, with sales drastically increasing over the course of the 2000s. The world financial crisis in the late 2000s saw Lamborghini’s sales drop by nearly half by 2009, leading CEO Stephen Winkelmann to predict continued poor sales for supercar makers.

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Each Lamborghini model is named after a bull in Italian. In 1965, at the Turin Auto Show, a man named Nuccio Bertone approached the Lamborghini booth stating, “I’m the one who can make the shoe fit onto your foot.” Bertone was the man who eventually created the body style for the Lamborghini Chassis. This aggressive, yet elegant looking vehicle was named the Miura. According to Lamborghini, noone knows why Ferruccio named it after an aggressive bull. They state that this was the perfect name for the car because while Miura’s are aggressive in times they also happen to be very intelligent animals.

Since the beginning of Lamborghini each car has been given its own unique name after a Spanish bull. The real first innovation came around 2001, known as the Murcielago. This car was named after the fierce fighting bull. After that came many others such as the Gallardo, Aventador, and more recently, Huracan. Many car enthusiasts see Lamborghinis as a statement of wealth, yet it is more than that. It showcases a group of people that love to experience the rush that these “spanish bulls” give off. As you accelerate a Lamborghini, it is said that you can feel the sheer power of 850 horses (or bulls). It is an experience that can't be copied.

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Branding Strategy Lamborghini has implemented a branding strategy that has not only revolutionized how the world views them but has also brought in a sense of entitlement to any owners of a Lamborghini. Manfried von Imbior is the General Manager of The Auto Gallery Los Angeles. When asked about the Lamborghini branding strategy, he replied that at the dealer level it was very important to get the cars out into the public for everyone to see.

They would let him go out on nights around the city to promote Lamborghini Beverly Hills with the public placement of the product. For example, during Hollywood bowl concerts, he would park a Gallardo or Aventador close to the entrance in order to attract people who might upload a photo of it to social media.

Manfried von Imbior also mentioned that the showroom has a large role in the brand’s public perception. By creating a clean and simple, yet elegant look, customers felt comfortable inside the showroom knowing that they could potentially become part of a very small and exclusive group of automobile owners. Along with Lamborghini branding themselves as a high-end luxury supercar, they have begun to branch out into a lifestyle by partnering with other high-end brands. This will give a Lamborghini owner the full experience. In an article back in 2009, Lamborghini began a fashion line stating that “The philosophy behind the Collezione Automobili Lamborghini fashion line is synonymous with the traits of each Lamborghini super sports car: Extreme, Uncompromising and unmistakably Italian. The Automobili Lamborghini Boutique embodies this culture to offer customers access to a more glamorous and exclusive world.� By creating a cross-over between industries the products begin to compliment each other which adds business to the company.

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Aggressive...

Uncompromising...

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According to Lamborghini Director of Branding and Design, Manfred Fitzgerald, it took 9 years to create a distinct image of their three brand values: aggressive, uncompromising, and Italian.

From these brand values, the company was able to create a CICD, or Corporate Identity Corporate Design. “The brand is just the basis of that which we will set out to do in the future,” says Fitzgerald. “Anything that we do has to be authentic. It has to be recognized as a Lamborghini product from the first sight.”

One reason Lamborghini is so recognizable is because they strive to maintain an image of exclusivity by appealing to wealthy demographics. Showrooms in Beverly Hills or pictures featuring Dubai license plates (above) appeal to this ideal of wealth.

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Life-Cycle of Lamborghini Pioneering Stage --

When it comes to the advertising lifecycle, a sportscar is a unique product. A product is said to be in the pioneering stage until people appreciate the fact that they need it. But how many consumers truly NEED a Lamborghini when they could get from point A to point B using a much more affordable car? When Lamborghini is in the pioneering stage for a new model, they don’t try to appeal to the general population. This is why you’ve never really seen a Lamborghini TV commercial running during your average time slot. Instead, they hold private expositions, publish press releases, and use their website as primary means of advertising in the pioneering stage. In this way, the company does not waste money exposing their product to a demographic which cannot afford it.

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Competetive Stage --

Once a consumer accepts that he is going to buy a luxury sportscar, there is going to be competition. The consumer asks the question,“Which brand should I buy?”

Lamborghini’s top competitors are Ferrari, Bugatti, Aston-Martin, Mercedes-Benz, and Audi. In order to gain favor among the target consumer demographic, Lamborghini has to do something to set itself apart from these competing brands. Luxury supercars usually compete with each other for “higher numbers” or stronger specifications, like higher horsepower, acceleration time, MPG, etc. But these specifications are not always the most appealing features to advertise. The picture below is an example of a Lamborghini advertisement in the competetive stage, claiming that “It’s not a car,” like competing brands’ products. With this ad, Lamborghini has made a statement that it is MORE than just a car, “It’s a weapon.”

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Target Audience When it comes to advertising an automobile, or any product for that matter, a brand must analyze who exactly it is that they are reaching out to. Car companies like Honda, Toyota, Ford, and Chevrolet often run television commercials, for example, during all hours of the day in order to reach out to lower, middle, and upper class demographics. This is because these companies are advertising cars that are affordable and appealing to a variety of income levels and therefore their product will be seen by everyone watching TV. Lamborghini, however, has one target audience: the upper class. So, instead of spending money to run commercials that will be seen by consumers who could never own a Lamborghini, the company runs minimal advertisements, except for the occassional online graphic ads, upscale magazine ads, etc.

In the Lamborghini graphic advertisements seen below, it is clear that the brand is reaching out to non-Italian, upper class, English-speaking consumers. They are trying to tell the target audience that by driving a Lamborghini, you can feel elegant and Italian no matter where you are.

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Media Choices Relative to Target Audience -Lamborghini’s target audience, as mentioned above, includes both a wealthy, older, and more exclusive demographic as well as a younger demographic in order to inspire potential future customers. However, Lamborghini manages to reach these target audiences without too much use of media. The brand does not run primetime television commercials, or post common billboards. Instead, they show promotional videos at exclusive product events (which can be later found on the internet), post graphic advertisements online, and feature their products in motion pictures and video games. Lamborghini prides itself on the fact that their cars basically “sell themselves� without the need for too much media intervention.

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International Advertising -With its marketing and manufacturing headquarters in Italy, the Lamborghini supercar brand is known all over the world. The top countries for Lamborghini sales are the United States, China, and Italy. So how does the company reach out to these other countries?

When Lamborghini releases a new product, they hold exclusive expositions in the countries that tend to have the most consumers in their target demographic. For example, when the Lamborghini Huracan was released, events were held in Orange County, USA, Dubai, and China to showcase their most recent innovation. Lamborghini also hosts races, such as their Super Trofeo Europe, Super Trofeo Asia, and Super Trofeo USA. They also have the Lamborghini Accademia programs, which provides consumers with the opportunity to drive the cars on high performance tracks, all while learning everything there is to know about the cars. These international events give consumers the opportunity to experience a Lamborghini in action, either by driving one or by watching the professionals race these supercars.

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What could be changed to make ads better for the target audience?

Lamborghini is well- respected among the exotic supercar community.

Manfried stated that “the cars really sell themselves to the public.�

Because of this, not many Lamborghini advertisements are put up to the public.

When a new car is released, such as the new Huracan, a teaser video will be made which is shown to the media.

Eventually the media will promote the advertisement themselves, and this will sell the car even more.

In the Huracan release video, a younger man is featured as some sort of spy trying to escape from a city before a heavy storm hits. In order to escape as fast as possible, he is given a Lamborghini Huracan to drive.

Though this ad may feature exciting special effects and action scenes, the plot is pretty unclear and it doesn’t particularly apply to the Lamborghini target audience - upper class consumers like celebrities and corporate executives.

The Huracan promotional video would certainly intrigue a viewer much in the same way as the placement of a Lamborghini in the Batman movies. But does this type of ad really inspire a consumer to purchase a Lamborghini? Instead, perhaps Lamborghini should have created an ad that would appeal more to a sense of wealth, success, and/ or Italian culture. This would attract both older and more wealthy consumers, the ideal target audience for an expensive and exotic supercar.

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Taglines and Logos -Lamborghini has an iconic logo that brands itself everytime it is seen. According to the textbook, a logo is the combination of some pictorial or design element with a tagline. Logos are a part of the name people use to speak of a product, also known as the trademark of a company. Trademarks are proper terms that identify the products and services of a business and distinguish them from the products and services of others. The Lamborghini logo as shown below distinctively shows an aggressive looking bull along with a shield in the background and the Lamborghini trademark above it. After some research, famouslogos.us states that “The Lamborghini logo was created taking inspiration from Taurus (bull), the zodiac sign of the founder of the company. Ferruccio Lamborghini’s passion for the bullfighting sport is also reflected in the logo. Most of the Lamborghini car models are named after famous bulls.”

As for the shape of the logo they state “the Lamborghini logo depicts a coat of arms and demonstrates a gold snorting bull on the front. The bull represents consistency, power and fortitude.

The logo possesses immense recogni-

tion globally.” And lastly for the color of the logo “The golden bull with a black background of the Lamborghini logo holds great resemblance to the black horse and yellow background of the Ferrari logo. The resemblance was not merely a coincidence, since Lamborgini has a longstanding enmity with Ferrari.”

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Ad Copy --

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Clearly Lamborghini goes for the simple yet elegant feel when creating ads for their supercars. As seen above the Ad copy are two simple sentences stating that elegance can be combined with an aggressive adrenaline rush. Lamborghini’s seem to give off a sense of steam when being driven just like the raging gallardo pictured.

Just let the car do the talking...

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Appeals Used in Ads -Although Lamborghinis sell themselves, outside design firms get creative with the product in advertising projects. For example, in the “Lamborghini Feels Italian” campaign, which was developed at Philipp und Keuntje, Hamburg, Germany, the art directors created the statement that no matter where you are a Lamborghini will always feel italian. They took photos in the USA, England, and Mexico and then added a subtle amount of the Italian culture.

On top of that, at the bottom right of each picture they stressed the fact that Lamborghini was born in Sant’Agata Bolognese.

Through sleek, beautiful, simple, and powerful advertisement designs, Lamborghini ads mimic the brand’s core values: to be uncompromising, aggressive, and Italian.

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Design Principles --

Beginning with unity, the Lamborghini type blends with the car color and then a nice flow with the supercars aerodynamic design. There is also sequence on it, as you can tell when reading from left to right and then from the top to bottom. The designer brought an emphasis on the car by having a polished look to the Huracan. As you can see on the ground there is quite a bit of contrast adding a distinctive look to the Huracan. This makes the color pop a lot more to the naked perspective eye. There is also a perfect balance on the Lamborghini in the advertisement so that it looks natural to the perspective viewer. Color also plays a huge roll in the ad. The vibrant green pops showcasing the car to the viewer as a powerful, aggressive, energetic work of art...

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Research Employed-Because the Lamborghini brand is so well-known, their research is gained solely based upon how the average consumer reacts. Anytime a special edition supercar is released, such as the Lamborghini Superleggera, online social media sites such as Youtube and car enthusiast forums will post endless amounts of photos of the car. At the dealer level, according to the GM of Ferrari/Maserati, just by having the car out in the city it will attract a lot of potential customers. He stated that “You have all these young adults and kids that are the future generations and by showing them the car, they may end up being able to purchase one later on in life.�

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-Sales PromotionLamborghini’s sales are primarily made from showcasing the car on the streets. In an interview, Lamborghini CEO Stephan Winkelmann stated that in marketing, product placement, merchandising, and anything that creates the feeling around the car are most important. Seeing cars in films such as Batman: The Dark Knight produces publicity for the brand. He also states that for kids it’s less about looking at posters and more about computer games and video game placement, like the Forza Motorsport video game series.

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Appendices -Chris was given a special opportunity to speak with the general sales manager at The Auto Gallery Ferrari/Maserati. The following is the interview with him: Background info/How Manfried got into the industry: His father was a diesel mechanic in Canada. Worked for Cummins. Started accumulating valuable professional tools and skills. Bought a beater Porsche and within a year restored it and fixed it up. He mowed lawns for a while in order to pay for it. Then he went on to go work at Rusnak Porcshe. Went for the sales job at Porsche, and eventually got the sales job at Porsche.

What is your branding strategy for the Lamborghini’s that you sell?

At the dealer level: Wanted exposure of the brand‌ Getting the car out there for the visual. Showroom.. visual impact. Presence on the website. Social Media.

Placement..Would allow him to drive around public.

Would go to events such as Hollywood Bowl and place Lamborghini in certain areas for everyone to see.

Difference between Lamborghini and Ferrari owners: Lamborghini customers are a little more into their car and the drive. Ferrari owners tend to just own the car. Get their satisfaction from just owning the car.

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What type of audience do you target and how: The exotic cars sell themselves. Commercials dont exist because they sell themselves. Have commercials that play on a loop in showrooms.

Tie it to the luxury brand.

Lamborghini owners like the experience of driving

Digital Strategy: One month worth of weekly trivia. Someone who got them all right went into a raffle and got a free test drive.

Exposure. The younger fans may become the future owners.

The car being at a hot restaurant. Ferrari coops with Ublo (designer watch company).

Grabbing other luxury brands to come together to collaborate.

Do you have an outside agency do your advertising or in-house: Both. Had a corporate agency to organize events. Lux communications based in america but international marketing company that corporate lamborghini chose. Person that organized events.

She collaborated with Manfried. Her sole purpose was to reach out to people and create public and social awareness.

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Appendices -The following is from an interview with Manfred Fitzgerald, director of Brand and Design for Lamborghini.

- He spent 9 years creating a distinct image: aggressive, uncompromising, and Italian… 3 brand values.

- Didn’t have a clear idea of what Lamborghini stood for, everyone interpreted it a different way.

- He started from brand values and created a CICD, corporate identity corporate design - “Its very important for a luxury brand like ours to have such a clear idea and clear vision of where you want to bring the brand and where you want to go… you have to be very consistent in your approach.”

- The brand is just the basis of that which they will set out to do in the future.

- “Anything that we do has to be authentic, has to be recognized as a Lambo product from first sight.”

- How does lambo move into a new market?

- “Need a good understanding of the market… that does not mean that we will cater to the market in a special way… we won’t do products for a market… we have a global product, it has to work EVERYWHERE, market understanding has to be there… have to understand and penetrate our brand values, we have to be understood as a luxury brand.”

- Apparently a few years ago the Chinese didn’t know Lambo, so they had to make it where they perceive Lambo as something they’d like to possess.

- Lamborghini has called themselves the “bad boys of the supercars.”

- Lamborghini is a stand-alone company, have a great autonomy, the Research and Development is in house as well as design, - The core of research and development is carried out in Italy and design - “My team and I live Lamborghini because we live here, we don’t get commissioned work like other studios, we have intimate touch, enables us to bring out the beauty.”

- How does he plan to diversify in terms of brand extension?

- “Diversification is a necessity… a luxury brand is allowed to play in other fields, obviously this is our core business, but the merchandising has taken a huge step in recent years, as long as you stay authentic and stay credible, any path out there is allowed.”

- Lambo is still in the brand building phase, any step has to be thought about more than once.

- Product placements in big Hollywood films… he discards a lot of stuff on his desk - Mission Impossible 3 and The Dark Knight – those were a brand fit - They were a perfect fit… The Dark Knight, they had the script and went thru it with the producers and they just really thought it fit with the Lambo brand - Bruce waynes car, multimillion dollar, avenger, hero, etc, what do you insist on?

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-I don’t like to see our products in the context of being driven by villains…

- Mission impossible was a luxury setting, its important to see our products in a normal context

- Wanted to take us out of context of being niche of a niche, just exotic car brand… wanted to make lambo seem more normal

-We are a part of the life and that’s what were striving to do · Exclusivity is key to a brand like lambo… how do you keep demand high in a recession?

And, wealth is geographical, how do you ensure that there isn’t a concentration of lambos?

- “We have a lot of white spots on the map, therefore we still see potential to bring our products to the market without diluting brand image and exclusivity.

- How do you ensure exclusivity? How do you make sure that the brand stays clean and safe and that you keep that demand going?

-”Not being tempted to do anything out of the normal… we have a clear strategy for the future, we will stick to that, and its just about not doing anything erattic.”

-”Quick whims are not us… we stick to what we plan.”

-How did you survive during the auto market recession?

-”We think wealth is still out there, people have enough money to buy our products, it is a geographical approach though… they expect growth in some countries and they find markets which have enough at their disposal and that are in a fortunate enough situation that they can spend money.”

- Not a car manufacturer, SUPERCAR manufacturer - Ad personum solution: allows customer to customize Lamborghini -How important is that?

-”I think its vital in thinking about future of brand… we were in the past a technical oriented brand, but his vision for the future is becoming a modern company: which means having a great focus on the customer… does NOT mean we will be influenced by the customer on the design, they will NOT go to customer and ask for opinion on design, their obligation is to SURPRISE people with the designs and let them see how they realize the dreams they haven’t dreampt so far.”

-”We have an abnormal process – my designers are able to do everything in 3D from the first sketch on… we can cut corners, we work so fast that we get a package deliver and we work with the package from the first moment, the software programs are normal but we are using that which is out there as an industry standard.”

- “The underlying process is that we work hand in hand with Research and Development… its not where they send ideas/designs back and forth, and it’s a yes this workds or a no this doesn’t work, its all being worked on hand in hand from the get go.”

- Where do you look for inspiration?

-”Everywhere… fortunate to live in Italy, where there’s so many inspirations, but we have our ears and eyes open everywhere we go… we’re influenced heavily by other industries, I don’t think just going with auto industry would get us anywhere… everything is changing, commuting, communicating, everything is changing heavily and that inspires us for future products.”

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Appendices --

References

- History. (n.d.). Retrieved April 01, 2014, from http://www. lamborghini.com/en/history/1963-1964/ - History. (n.d.). Retrieved April 01, 2014, from http://www. lamborghini.com/en/history/1965-1966/ - History. (n.d.). Retrieved April 01, 2014, from http://www. lamborghini.com/en/history/1998-nowadays/ - Introducing: Lamborghini Collezione Fashion Line. (n.d.). Retrieved April 04, 2014, from http://www.fashionwindows. net/2009/12/lamborghini-collezione-fashion-line/ - Lamborghini HuracĂƒÂĄn Spotted Filming Again (Video). (n.d.).

Retrieved April 08, 2014, from http://blog.dupontregistry.com/ lamborghini/lamborghini-huracan-spotted-filming-video/ - http://www.meettheboss.tv/search/node/lamborghini

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