Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offerings emblazoned with its horse logo. It has also licensed its logo to 68 different products, from sunglasses to guitars. If consumers begin to doubt the luxury status of the cars because anyone can afford a pair of sunglasses, Ferrari might be at risk of

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Brand dilution occurs when a brand's image and reputation are diluted by associating it with products or services that are of lower quality or status. In this case, if Ferrari's logo is licensed to too many products that are not in line with their luxury sports car brand, it may lead consumers to question the authenticity and exclusivity of the brand, which is a sign of brand dilution.

Ferrari Is Well Known as a Brand of Luxury Sports