Fiat Presentation Thingie
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Transcript Fiat Presentation Thingie
Identify the Problem
Not enough North Americans are buying the Fiat 500
Fiat has a rather small market share over in North America
Fiat has not built a strong enough brand image in this new
market
Causes of Problem
Fiat brand vehicles have a reputation for being poor quality
(Fix It Again Tony)
Bad reputation from the 1970’s
Economic Recession fears and the US economic slump
New Generations are not familiar with brand name
Problem Statement
Which product strategies can Fiat use to increase their
market share in North America by 50% by the end of 2014?
About Fiat S.p.A
Founded in Turin, Italy in 1899
Is the largest car manufacturer in Italy since 1910
Inspired vehicles compete well in Europe
Unsuccessfully entered the US market twice
Acquisition of Chrysler signified a third attempt
Fiat released the Fiat 500 in North America last year
About the Fiat 500
Successful in Europe, especially in Italy, France and the UK
Many awards including European Car of the Year
Above average reliability index according to consumers
Not selling well in North America
Did not meet the sales goals last year
Sales rising steadily
Fiat hasn’t shed the reputation it has earned in America
SWOT Analysis
Strengths
Above average reliability
Potential for widespread distribution through Chrysler
Biggest car manufacturer in Italy
Aligned with Ferrari and Maserati
Strategic management (Sergio Marchionne)
Lowest CO2 emissions of any car manufacturer
Fiat brand reputation for style
SWOT Analysis
Weakness
Small Product line
Many product recalls 2011-2012
Bad reputation in North America (Fix it again Tony)
New Brand
Lack of Scale
Only makes a 1/3 of the revenue than competitors.
170 dealerships in US
SWOT Analysis
Opportunities
Positive outlook for hybrid and electric vehicles
Gradual fade away of market for SMART Cars (SMART
Fortwo)
Fast growing market for subcompacts
Increasing gas prices
SWOT Analysis
Threats
Stiff competition
Mini
Green Cars
Labour strikes impacting production
Increases in prices of raw materials
Global economy is still in recession
Competitive Analysis
Fiat 500
2012
Smart
Fortwo
2011
Mini
Cooper
Hardtop
2011
Ford
Fiesta SE
Hatchbac
k 2012
Toyota
Yaris 3Door L
2012
Scion IQ
2011
Honda Fit
2012
Price
(MSRP)
$15,500
USD
$12,490
USD
$20,100
USD
$15,500
USD
$14,115
USD
$16,020
USD
$15175
USD
Gas
Mileage
30.5 MPG
37 MPG
33 MPG
33 MPG
34 MPG
37 MPG
30 MPG
Power
101 HP
70 HP
121 HP
120 HP
106 HP
94 HP
117 HP
City Gas
Mileage
27 MPG
33 MPG
29 MPG
29 MPG
30 MPG
36 MPG
27 MPG
Seating
capacity
4
passenger
s
2
passenger
s
4
passenger
s
5
passenger
s
5
passenger
s
2
passenger
s
5
passenger
s
Engine
Type
1.4L 4cylinder
1.0L 3cylinder
1.6L 4cylinder
1.6L 4cylinder
1.5L 4cylinder
1.3L 4cylinder
1.5L 4cylinder
Warranty:
BumpertoBumper
4
years/50,0
00 miles
2
years/24,0
00 miles
4
years/50,0
00 miles
3
years/36,0
00 miles
3
years/36,0
00 miles
3
years/36,0
00 miles
3
years/36,0
00 miles
Perceptual Map
Classy (Expensive)
Mini Cooper
Volkswagen Beetle
Conservative
Ford
Fiesta
Toyota
Yaris
Sporty/ trendy
Honda Fit
Smart
Fortwo
Fiat 500
Practical (Affordable)
Scion iQ
Market Size
Top 10 Subcompact Cars in the US for August
2012
Nissan Juke
Kia Rio 5%
7%
Kia Soul
19%
Mini Cooper
7%
Fiat 500
6%
Nissan Versa
17%
Ford Fiesta
9%
Honda Fit
7%
Hyundai
Accent
10%
Chevrolet
Sonic
13%
Market Segments
Demographic
Age
16 through 65
Gender
Male and Female
Family Size/Martial Status
Single or Married
With or without children
Empty nest
Income
Under 10k through 45k
Occupation
Student
Career Beginning
Retired
Self employed
Education
High School
College
Degree
Geographic
Region
America
Canada
Mexico
Density
Urban
Suburban
Metropolitan
Market Segments
Behavioural
Psychographic
Benefits Sought
Mid-quality
Low price
Style/flavour
Safety
Usage Rate
Light to Medium
User Status
Prospect
Non-user
First-time
Loyalty Status
Medium to Strong
Liberal
Urban lifestyle
Environmentally conscious
Strong emphasis on style
Basic transportation needs
1st Segment
Students
Young (Generation Y)
Low income
Urban and Suburban dwelling
Basic Transportation Needs (point A-B)
Parents purchase
Emphasis on safety, style, and practicality
2nd Segment
Young Urban Professionals
Middle aged (Generation Y and X)
Finished school
Starting their career
First or second time purchasers
Single or starting a family
Emphasis on style
3rd Segment
Baby Boomers
Ages 45 - 65
Established family looking for a secondary vehicle
Empty Nesters or Retired with only basic transportation
needs
Larger disposable income (up sell on accessories)
Emphasis on style and practicality
Position Statement
For urban dwelling eco-conscious individuals who desire a
smaller, stylish car with excellent performance capabilities, and
a reasonable price.
Alternative 1
Improve Product Quality
Increasing safety features
Changing problematic areas or components
Increasing passenger comfort
Increasing engine size and horsepower
Increase/extending product warranty
Improve Product Quality
Advantages and Disadvantages
Advantages
Improves brand reputation
in North America
Increases consumer
confidence in the Fiat brand
Improve customer
relationship management
Disadvantages
High labor and capital costs
for remodeling product
components and extending
warranty
Product changes may affect
other features (e.g. fuel
consumption, size and
shape)
May increase the overall
pricing of the product
Alternative 2
Establish brand image and equity
Change the positioning of product through emphasis on style
Promoting traditional Italian Style
Aligning the brand with Ferarri and Maserati
Collaborate with designer brands
Louis Vuitton
Prada
Armani
(add brands images)
Establish brand image and equity
Advantages and Disadvantages
Advantages
Solidifies mental model
Makes the product
recognizable
Differentiates the product
from competitors
Disadvantages
Costs time and capital to
develop
May alienate consumers
who are averse to certain
brands
Dilutes focus of other
aspects of the product
Alternative 3
Expanding Product Line
Currently 5 models:
POP
Lounge
Sport
Convertible
Turbo (Abarth)
Introducing more models of the current product
Hybrid
Electric
All-Wheel Drive
Larger
Luxury Sport
Expanding Product Line
Advantages and Disadvantages
Advantages
Able to reach more market
segments
Caters to specific needs of
market segments
Reinforces Fiat’s
customizable brand image
Disadvantages
High cost for product
development
May dilute mental image
held by market
Logistics of distribution are
complex
Implementation
Obtaining resources
Borrowing capital for R&D may be more expensive
Utilize more Chrysler plants to increase production space
Designing a marketing organization
Use Product Development teams already in place
Marketing for North America will be handled by Laura Soave
Developing a schedule
Ensure the Product line is available by next fall
Timing allows proper preparation for promotion
North American International Auto Show
Super Bowl
New York Fashion Week
Course Concepts
Developing marketing
Market-Product Strategies
Goal Setting
Market Segmentation, Targeting and Positioning
Situational (SWOT) Analysis
Competitive Analysis
Managing the product lifestyle
Modifying the product, Modifying the market, Repositioning the
product, Brand Management, Multibranding, Creating perceptual
benefits
Strategic Marketing Process
Bibliography
Best Affordable Small Car Rankings. (2012, October 19). Retrieved
from U.S. News & World Report. U.S. News & Report LP, n.d.
Fiat 500 (2007). (2012, October 19). Retrieved from Wikipedia The Free
Encyclopedia. Wikipedia®:
http://en.wikipedia.org/wiki/Fiat_500_%282007%29
Fiat History. (2012, October 19). Retrieved from Official Web Site of Fiat
Canada.
Wall Street Journal. (2012, October 02). Retrieved from Auto Sales Markets Data Center: http://online.wsj.com/mdc/public/page/2_3022autosales.html
Snavely, B. (2012, March 23rd). At last, Fiat gaining a foothold in U.S.
car market. Retrieved from DRIVEON USA TODAY:
http://content.usatoday.com/communities/driveon/post/2012/03/at-lastfiat-gaining-a-foothold-in-us-car-market/1#.UIa7SYKKImd
Trudell, T. E. (2012, March 12). Fiat Tries Again in the U.S. Retrieved
from Business Week: http://www.businessweek.com/articles/2012-0308/fiat-tries-again-in-the-u-dot-s-dot
Wunker, S. (2012, February 1st). Fiat's Smart U.S. Launch Strategy —
Really. Retrieved from Harvard Business Review:
http://blogs.hbr.org/cs/2012/02/fiats_smart_us_launch_strategy_really.ht
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