Chapter 11. Developing and Managing Products

A new product is a product that is new to the world, the marketing, the producer, the seller. new products are important to sustain growth and profits and to replace obsolete items. Ferrari produces about 7,318 in this past year as they try to produce and design a car that makes it different from the previous one. They have been very successful, so sucessful that Ferrari thinks they sell to many cars and are going to cut down production to about 7,000. There is no doubt that there is a high demand for this line of cars but why would you cut something down when it would only make your business grow? Ferrari chairman Luca Cordero Montezemolo told reporters the reason for this was " to protect the brands exclusivity."

Ferrari has its own product development center located in Maranello, Italy. This building plays a role for Ferrari, showing that they are stable and mature and serious about their company and the needs. Ferrari doesn't just make a product and stick it right in its street legal cars and let it hit the market, NO WAY! That's why they use their F138 in formula races to test their products on how they would function as a car but when its pushed to the maxium speed how it affects the car and passenger with it. their developments consist of little minor new innovated parts on the car to making a new product, in the end they product products to help the consumer. For example Ferrari just recently came up with a new product that was a sidepod panel with a side bridge bending over the sidepod shoulder. You may ask how does this make it such a big product. When it comes down to automotive every inch of the car is a product itself alone its built and produced differently then all the others and they all play different roles in making the car what it is and how it runs. The product Ferrari came up with is designed to better control the airflow over the sidepod in a attempt to enhance the way the coanda exhaust works. This in simpler words means with a car comes responsibility in which the driver may not be able to control, this is a way they regenerate how the air hits the top of the car making it so that in such bad case that it would smooth over the sides and not interfere with the driving itself, making this safer for he consumer.