Fiat Case Study - ZEN Portfolios
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Transcript Fiat Case Study - ZEN Portfolios
FIAT 500
Excel-Orators:
• Aleesha Borbely
• Amandeep Sandher
• Coline Leman
• Harman Chungh
• Harvina Sidhu
• Matthew Carlson
• Megan Kalsbeek
OVERVIEW
Introduction
Problem Statement
Target Market
Key Findings
SWOT
Competitive Analysis
Three Alternatives
Solution
Implementation Plan
Course Concepts
References
INTRODUCTION
Fiat mission statement
Fiat 500 mission statement
Founded in Torino, Italy
First Fiat Factory
Fiat Zero
Manufactured by Chrysler
Owns 58.5% of Chrysler
PROBLEM STATEMENT
What product strategies could Fiat use in order to increase
market share and create brand awareness by the end of
2014?
TARGET MARKET IDENTIFICATION
No defined target market
Our assumptions:
Generation Y
Generation X
Baby boomers
FIAT 500
Specialty product
Came to North America
for market development
Return to market
European car of the year
2008
First 500 in North
America
F
I
A
T
S
A
L
E
S
Month
Sales 2012
Sales 2013
January
321
328
February
533
411
March
1207
855
April
1211
825
May
810
801
June
839
728
July
765
744
August
750
626
September
693
455
October
474
-
November
422
-
December
449
-
I
N
C
A
N
A
D
A
Fiat 500
Fiat 500
Dec 2012
% Change
2012 Year
End
YTD %
Change
449
+58.1 %
8474
+52.2%
Sept 2013
% Change
Year to Date
YTD %
Change
455
-34.3 %
5803
-18.6 %
AUTO SALES IN CANADA
Subcompact car sales
Overall new vehicle
market
September 2013
Up 4% from last year
Chrysler Canada Inc.
MARKET TRENDS
1.
Leasing
2.
Fuel economy
3.
Gadget full cars
4.
Changing mid-size cars
5.
Gen Y car chase
ASSUMPTIONS
Focus on small and sexy
Brand is not well-known
car
Using a stereotype
Good ads that need
brushing up
Appearance
Intriguing
FIAT 500 SWOT – INTERNAL
Strengths
Weaknesses
Eco-friendly car
Unstable history
Small car
Late arrival in North
Affordable
America
Exterior aesthetic
Safety
Multimedia
FIAT 500 SWOT – EXTERNAL
Opportunities
Threats
Booming market
High competition
Cooperation with
Trend to declined sales
Chrysler
Increased gas prices
Changing commuter habits
COMPETITIVE ANALYSIS – MINI COOPER
Strengths
Weaknesses
Safety
Expensive
Iconic design
Maintenance service
Made by BMW
Interior
COMPETITIVE ANALYSIS: FORD FOCUS
ELECTRIC
Strengths
Weaknesses
No gas needed
Low driving range
Eco-friendly
Charging stations
Customization options
Distribution
Reduced maintenance
Charging
costs
Low/mile operating cost
Expensive
BOSTON MATRIX
Relative Market Share
(Cash Generation)
Low
High
Stars:
Question Marks:
Dodge
Cash Cows:
Low
Market Growth Rate
(Cash Usage)
High
Ferrari
Fiat
$
Dogs:
Lancia
ALTERNATIVE 1 - REPOSITIONING
Advantages
Disadvantages
1.
Defined target market
1.
Costly
2.
Competitive advantage
2.
Risky
3.
Distinction/separation from
competitors
3.
Can cause confusion
ALTERNATIVE 2 – CO-BRANDING
Advantages
Disadvantages
1.
Boosting brand image
1.
Brand image dilution
2.
Benefits from other company
2.
Complex agreements
3.
Expanding outside the
automobile industry
3.
Culture clash
ALTERNATIVE 3 – MARKETING
RESEARCH
Advantages
Disadvantages
1.
Customer involvement
Unclear information
2.
Target market
Costly
3.
Knowledge
Outdated Research
SOLUTION
Repositioning
Why?
Brand position has become confusing
A defined target market
Fiat brand is not well known
Possible target markets:
The suburban commuter
The urban consumer
The independent student
MARKETING MIX
Product
Price
Place
Promotion
TIMELINE
Stage 1:
Conducting research
Making changes
Stage 2: Promotions
Nov – April: Viral marketing
Dec – April: Newsprint
Jan – April: Television commercials
Feb – April: Radio, Billboard, Bus ads
Stage 3: Trade shows
Jan 18-26, 2014 – North American International Auto Show
April 18-24. 2014 – New York International Auto Show
“
COURSE CONCEPTS
Classification of consumer goods
Target market
Market segmentation
SWOT analysis
Competitive Analysis
Positioning
Market research
Marketing Mix
REFERENCES
2013 Focus. (n.d.). Retrieved October 2013, from Ford:
http://www.ford.ca/cars/focus/trim/?trim=electric
Barth, L. (2013, August 14). Car brands: Who owns what? Consumer Reports.
Retrieved October 2013, from ConsumerReports.org:
http://www.consumerreports.org/cro/news/2009/06/car-brands-who-ownswhat/index.htm
Beats Audio. (n.d.). Retrieved October 2013, from Beatsbydre:
http://www.beatsbydre.com/beats-audio/
Cain, T. (2013, January 22). December 2012 and 2012 Year End Small Car Sales in
Canada. Retrieved October 2013, from Good Car Bad Car:
http://www.goodcarbadcar.net/2013/01/canada-december-2012-small-car-salesfigures.html
Cain, T. (2011, January 1). Fiat 500 Sales Figures. Retrieved October 2013, from Good Car Bad
Car: http://www.goodcarbadcar.net/2011/01/fiat-500-sales-figures.html
Cain, T. (2013, October 16). Small Car Sales Figures in Canada - September 2013 YTD. Retrieved
October 2013, from Good Car Bad Car: http://www.goodcarbadcar.net/2013/10/canadasmall-car-sales-figures-september-2013-ytd.html
Cato, J. (2012, August 22). Trending topics in auto industry. Retrieved October 2013, from The
Globe and Mail : http://www.theglobeandmail.com/globe-drive/new-cars/auto-news/trendingtopics-in-the-auto-industry/article4491650/?page=all
Crocker, J. (2013, October). Drive My Brand: FIAT's Search for Success. Retrieved October 2013,
from Google-Think Insights: http://www.google.com/think/articles/search-revs-fiat-brand.html
Fiat. (n.d.). Retrieved October 2013, from Fiat Canada: http://www.fiatcanada.com/en/500
Fiat 500. (n.d.). Retrieved October 2013, from MSN Autos:
http://autos.ca.msn.com/showroom/new-cars/gallery.aspx?cp-documentid=29059022&page=6
History. (n.d.). Retrieved October 2013, from Fiat: http://www.fiatspa.com/enUS/group/history/Pages/default.aspx
Keenan, G. (2013, October 1). Vehicle sales hitting top speed in Canada. Retrieved October
2013, from The Globe and Mail: http://www.theglobeandmail.com/report-onbusiness/chryslers-us-sales-rose-1-per-cent-in-september/article14621411/
McCausland, E. (2013, October 1). Chrysler September Sales: Fiat and Jeep Have Tough Month.
Retrieved October 2013, from Motor Trend: http://wot.motortrend.com/chrysler-septembersales-fiat-and-jeep-have-tough-month-411907.html#axzz2glT6jVe8
Mini Cooper. (n.d.). Retrieved October 2013, from Mini: http://www.mini.ca/en/mini/cooper/
Origins and development. (n.d.). Retrieved October 2013, from Fiat 500 Club Italia:
http://www.500clubitalia.it/index.php/component/content/article/436