Brand Development through Brand Extension and Licensing: Pininfarina Extra

The case is set in March 2012, after the death in 2008 of Andrea Pininfarina President of the company, and the consequent change in governance in favor of his younger brother Paolo and Pietro Angori (the new CEO), and the effects of the post-crisis period, with a fundamental refocus of company’s assets and operation, including a series of resizing and divestments. Thus, this paper describes the days of the decision of how to increase the importance, and exploit the full-potential, of non-automotive related design activities. Management challenges included the decision on a) introducing a broad series of new products through Pininfarina Extra, b) how to organize the activities in macro-areas beyond the historical core business (“delivering the most exciting and elegant sport car”), c) how to limit the risks of Brand extension, and d) how to decide on make/license. The management should then reflect on how to maximize the design capabilities of the company, outside of the automotive sector, to capture its full Brand potential. The case has been developed outside-in, through public information only.