Fiat Case Study - ZEN Portfolios

Report
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

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