Fiat
“ONE LESS WORRY”
TEAM EH!
William Chen, Mike Butterfield, Nicole Whiting, Jacquie Kine, Mike Xu, Ryan Briscoe
INTRODUCTION
Powerful company in the global automotive industry
 Although Fiat is successful in Europe, the Canadian market is different
PROBLEM
What product strategies can Fiat use to increase sales in Canada to 12,000 total units per year in
the fiscal year of 2014?
AGENDA
1.
Introduction
2.
Problem
3.
Key facts
4.
SWOT
5.
Competitive analysis
6.
Target market
7.
Alternatives
8.
Solution
9.
Implementation plan
KEY FACTS
Fiat owns 54% stake in Chrysler
8464 Fiats sold in 2012
 Chrysler controls distribution of Fiats in
Canada
 Fiats marketing strategy is based on mass
marketing in Canada with no specific target
 Increase car sales in 2012, over 2011
Loss of 1.41 million Euros in 2012
 Major ownership in Ferrari, Maserati,
and Alfa-Romeo
SWOT
STRENGTHS
WEAKNESSES
Financially, strong
Operating at a loss
Technologically advanced in
subsidiaries
No clear marketing in Canada
Worldwide distribution
Weak reputation
OPPORTUNITIES
THREATS
Canadian Vehicle market grew 6% in
2012
Fiat faces a multitude of threats,
including rising steel prices
Upcoming Global Events
Europe in economic crisis
Longer Wait to Buy out minority Chrysler
Shareholders
Trend for more fuel efficient cars
COMPETITIVE ANALYSIS
CAR
PRICE
SEATS
SAFETY RATING
FUEL ECONOMY
Jeep Grand
Cherokee
Overland
$55,295
5
8/10 stars
9.8 L/100km city
7 L/100km hwy
VW Touareg
TDI Clean Diesel
Comfortline
$53,975
5
9/10 stars
10.8L/100km city
6.7L/100km/Hwy
Ford Escape SE
Eco Boost
$26,499
5
8/10 stars
31/47 city/hwy
mpg
9.1/6.0 city/hwy
L/100km
Hyundai Santa Fe
XL
$31,888
7
9/10 stars
3.3L Gas
9.9 L/100km
TARGET MARKET
MAIN DIMENSIONS
VARIABLES
TARGET
Geographic
Segmentation
Region
Urban Areas
British Columbia, Quebec,
Ontario, Alberta
81 % of population are “urban dwellers”
TARGET MARKET
Demographic
Segmentation
Age
Gender
Birth Era
Income
Marital Status
Family Size
25-54
Female & Male
Generation Y in their 25-45
93 700 average yearly income
for 2 parent families , blended families with
children
64 100 for one person earner
Families
Married or Living with a
Common Law Partner
2-3 Persons
Psychological
Segmentation
Personality
Lifestyle PRIZM C2
“work hard , play hard mentality”
Fast track families
Blended families
Behavioral
Segmentation
Value
Value consciousness
ALTERNATIVES
OPTION 1-Bring the 500e to Canada
ADVANTAGES
Fills the Eco-friendly market
DISADVANTAGES
Electric cost more to manufacture
(need research)
Popular in California and New Dependant on marketing campaign
for success (Competing model offers
York
better dashboard technology)
Will fall in line with Fiat
reputation
Needs charging stations
OPTION 2-Bring Freemont to Canada
ADVANTAGES
Fills a gap Fiat’s line up
Priced equal or less than
competitors
Use existing Dodge
manufacturing facilities
DISADVANTAGES
Fiat has never done a SUV in
Canada
Will need new marketing
budget (starting from scratch)
Crossover/SUV Market
extremely competitive
OPTION 3-Reposition & Rebrand 500L
ADVANTAGES
Guarantee increase in income due
to repositioning the branding
DISADVANTAGES
Dependant on marketing campaign
for success
Minimal product changes necessary Will take a lot more
money/time/effort to change
people’s mind about the 500L
Good, cheaper alternative to the
Fiat Freemont for potential family
Will need to fully redesign car to be
cars
successful
Breadth & Depth
Depth
Fiat Freemont
Fiat 500L
Fiat 500E
Depth
Breadth
Freemont
Breadth

Fiat 500E
Fiat 500L



SOLUTION
Fiat Freemont
Bring the Freemont to Canada
Option 2, bring the Freemont to Canada
Short term solution to increase sales and while building on a long term plan
Backup plan: Reposition the 500L (no clear marketing direction)
IMPLEMENTATION
A Quick Primer on the 4 P’s
The Freemont is a 7 seat SUV built on the Dodge Journey platform
Dodge has manufacturing plants in Canada
(Brampton and Windsor Ontario)
Price: = $29,999 Australian price = $36,852
New product – high competition.
“One Less Worry” campaign
Marketing Budget
Revenue 12000 units sold x (average vehicle cost) $22,000 = $260,000,000
Our marketing budget for the full year is $26, 000,000
Divided into two semi-annual periods
13,000 000 for (January 1,2014- June 1,2014)
Step1: Retailer Promotional Allowance
Program
(January 1, 2014- February 31,2014)
What is Chryslers Promotional Allowance Program?
Current system gives 1:1 ratio in the first quarter
The Plan: offer 2:1 in January and February to motivate dealerships
(13% of Semi-annual period budget = $1,000,000)
Step 2: Benefits, Commissions and Share
Matching
(January 1,2014-June 1,2013)
It starts with internal motivation:
Two training sessions and information packages
Additional 5% commission for sales staff
30% Employee share matching program
35% of first semi-annual period budget= 4,500 000
Step 3: Promotional Hype Campaign
(December 20,2013-January 20, 2014)
Launch January first – “First to own a Freemont in Canada”
Utilize McDonalds corporate alliance
Campaign directed toward Fiatcanada.com/bethefirst
 Url for analytics and tracking
15% of the first semi-annual period budget=2,000,000
Step 4:Debut of Fiat Freemont
(January 1st ,2014– March 31st ,2014)
TV (primetime)
◦ Airing Tuesday, Thursday and Sunday (between 6-9pm 1 commercial per hour)
◦ Major news channels to mesh with our demographic (CBC) for Vancouverites
◦ Global, CBC, CTV
37% of the first semi-annual period budget ($4,500,000)
Step 4:Debut of Fiat Freemont
(January 1st ,2014– March 31st ,2014)
Radio (7% radio $900,000)
◦ Airing morning commute (7-9am and 4-6pm)
◦ Targeting NEWS 1130am, coincides with our target market
Online (1% of budget $132,000)
◦ SEM $11,000 per month (covers full city)
Step 5: Continue with most effective
campaigns
(June 1, 2014- July 1, 2014)
Scale back numbers for marketing budget
Assess which mediums worked in which markets
How did consumers respond?
Focus remainder of budget on what works: $9,400,000
Step 6: Events promos/ SCR/ co-branding
(June 1st ,2014– July 31st,2014)
Sponsor local soccer (little league)
FIFA Commercial
(Events Budget = $3,600,000)
Step 7: Year End Evaluation
(December 2014)
Review numbers and goals. Did we sell 12,000 units total in 2014
Were they feasible? What needs improving?
Conclusion
References
Cain, T. (2013, July 3). Fiat brand sales figures . Retrieved from
http://www.goodcarbadcar.net/2013/07/fiat-brand-usa-canada-sales-figures.html
Fiat group's world. (2013, September 13). Retrieved from
http://fiatgroupworld.com/2013/09/15/fiat-freemont-2012-full-year-analysis
Fiat Freemont (2013, June, 28) Retrieved from
http://www.fiat.com/com/freemont
http://www.carsguide.com.au/news-and-reviews/car-reviews-road-tests/fiat_freemont_review1