From Memes to Market Drops: What Ferrari Luce Teaches Us About Modern Psychology and Business Strategy

Okay, let's get a few things straight before I start off with the blog... I'm a car guy.

I love everything about them: car culture, motors, exotic cars, sports cars, design concepts, etc. And yes, I am a Ferrari fan. If you don't follow the automotive world, Ferrari recently unveiled their new top-secret electric vehicle project, which turned out to be called the Ferrari Luce ('Light' in English)—a long-awaited addition to the Ferrari lineup. This new car created huge controversy, not just from an automotive point of view, but it also had a notable impact from the business side as well.

This article is not a piece on personal tastes and preferences with reference to Luce's design. I have my personal opinion on it, as do many thousands more around the world who have quite openly shared their thoughts publicly to reporters, social media platforms, blogs, etc.

And that's the point I'd like to talk to you about today—how people's views and perceptions are changing, and how businesses should take note and be mindful of how to communicate and market new products.

While reading over the countless memes, comments, and pictures circling social media about the Ferrari Luce, I noticed that the great majority were negative, distasteful, and sometimes just offensive—not just toward the car's design, but toward Ferrari the company, and even worse, toward the people who designed the car and who run the company. I get it; people are upset because the car is not what they expected. They need a scapegoat to let off steam.

But is it really necessary to take it out on the company and its people?

Most of those who saw the car for the first time did so by watching its unveiling via social media video, a video clip, or a few pictures online. Based on what they briefly saw online, many jumped to conclusions. They judged the car only by its aesthetics, its outward design, and its color. They judged it based on who designed it, who managed the project, and who called the shots. Then, when the majority of comments online became negative, it became easier for everyone else to jump on the bandwagon and follow suit.

I am not saying this to defend Ferrari. Nor am I saying this to criticize people's opinions and freedom of speech. Far be it from me. I say this because this quick jumping to conclusions and outward judging without all the facts is superficiality. It's strange, isn't it? In an age of 'deep AI research' and complex models to solve deep problems, we are slowly losing our ability to objectively reason, patiently wait for the full picture to emerge, collect all the facts from those responsible, and then form our personal opinion.

How many of those negatively commenting actually...

• Saw the car in person?
• Drove it?
• Talked with the designer?
• Listened to the manufacturer explaining the 'why' behind their choices?

A car is not just about aesthetics. I mean sure, for many it was a shock, because Ferrari has traditionally made emotional, loud, and petrol-motor-driven sports cars. And a 4-door, 5-seater electric car disrupted this traditional brand of car.

But before jumping to conclusions and writing off not just the car, but a historic brand and the people managing it... could we try to be less superficial and dig deeper to gain insight into the 'why' things were done the way they were done?

This is not the first time this happens in the automotive world. We have many examples of car debuts that shocked the world or left many disappointed, but that later turned out to be loved by many or considered historically significant cars. Just to name a few: the 1955 Citroën DS, the 1934 Chrysler Airflow, the 1960 Chevrolet Corvair, and the 1974 Aston Martin Lagonda.

The point is: We are all entitled to an opinion and are free to express it in a polite, respectful way, after we've taken in all the facts and heard all sides of the matter. But once it's out there in public, it's out there! And businesses should keenly take note of this.

This brings me to my next point: The business side of what happened with the Ferrari Luce car debut.

The Luce project was kept top secret and heavily guarded during the official media presentation. Very little was known about this Ferrari EV project in the years and months leading up to the unveiling. Strict rules were applied for select reporters and photographers for the debut, and once media coverage was allowed to flow, so did the negative reviews I mentioned above. Soon after, Ferrari stock started to decline in the stock market. It took a bad hit.

Now the question is: Could all of this have been prevented?

Businesses need to realize that we live in an era of ultra-fast, polarizing, and divisive digital communication. Social media is an extension of a person's voice and an introspect of a person's mind. Businesses need to make good use of this to shape their communication and marketing strategies. Unveiling a new product for a world-famous company will always incur a measure of risk. Opinions of people will always differ—you can't make everyone happy. But when your company is listed on the stock market and so many stakeholders are invested in your brand, it is a must to have your communication strategy down to perfection, and the product itself be vetted for customer satisfaction and appeal before it goes public.

Now I have to admit that I don't have all the details here on what Ferrari did or did not do leading up to the unveiling from a marketing and communication point of view.

The point, however, is clear: Businesses need to adapt to modern times of how people think and communicate. Businesses need to strike a balance between how they communicate new products to their customers and how they develop new products according to what customers need and expect—not just from a technological point of view but also from an emotional point of view.

Emotions are heavily integrated into any purchasing experience—that is a fact of business. How much more so than for a world-class luxury automaker like Ferrari! Emotion and passion are at the very core of their cars, but not just by those who designed and built the cars—it is also the drivers, the fans, the Tifosi! They are the ones that drive the passion into the cars and into the brand itself.

And companies that know how to manage and make the most of their clients' emotions have the greatest success in business!

Written by: Ruben Scapin