1. Fiat
“One less worry”

2. TEAM EH!
William Chen, Mike Butterfield, Nicole Whiting, Jacquie Kine, Mike Xu, Ryan Briscoe

3. INTRODUCTION Powerful company in the global automotive industry
Although Fiat is successful in Europe, the Canadian market is different

4. 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?

5. AGENDA Introduction Problem Key facts SWOT Competitive analysis
Target market
Alternatives
Solution
Implementation plan

6. KEY FACTS 8464 Fiats sold in 2012 Fiat owns 54% stake in Chrysler
Fiats marketing strategy is based on mass marketing in Canada with no specific target
Loss of 1.41 million Euros in 2012
Fiat owns 54% stake in Chrysler
Chrysler controls distribution of Fiats in Canada
Increase car sales in 2012, over 2011
Major ownership in Ferrari, Maserati, and Alfa-Romeo

7. SWOT Operating at a loss Financially, strong
STRENGTHS
Financially, strong
Technologically advanced in subsidiaries
Worldwide distribution
WEAKNESSES
Operating at a loss
No clear marketing in Canada Weak reputation
OPPORTUNITIES
Trend for more fuel efficient cars
Upcoming Global Events
Canadian Vehicle market grew 6% in 2012
THREATS
Fiat faces a multitude of threats, including rising steel prices
Europe in economic crisis Longer Wait to Buy out minority Chrysler Shareholders

8. 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
9/10 stars
10.8L/100km city
6.7L/100km/Hwy
Ford Escape SE
Eco Boost
$26,499
31/47 city/hwy
mpg
9.1/6.0 city/hwy L/100km
Hyundai Santa Fe XL
$31,888 7
3.3L Gas
9.9 L/100km

9. TARGET MARKET

10. TARGET MARKET MAIN DIMENSIONS VARIABLES TARGET Geographic Segmentation
Region
Urban Areas
British Columbia, Quebec,
Ontario, Alberta
81 % of population are “urban dwellers”
Demographic
Age
Gender
Birth Era
Income
Marital Status
Family Size
25-54
Female & Male
Generation Y in their 25-45
average yearly income
for 2 parent families , blended families with
children
for one person earner
Families
Married or Living with a
Common Law Partner
2-3 Persons
Psychological
Personality
Lifestyle PRIZM C2
“work hard , play hard mentality”
Fast track families
Blended families
Behavioral
Value
Value consciousness
TARGET MARKET

11. ALTERNATIVES

12. OPTION 1-Bring the 500e to Canada
DISADVANTAGES
Electric cost more to manufacture (need research)
Dependant on marketing campaign for success (Competing model offers better dashboard technology)
Needs charging stations
ADVANTAGES
Fills the Eco-friendly market
Popular in California and New York
Will fall in line with Fiat reputation

13. 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

14. OPTION 3-Reposition & Rebrand 500L
ADVANTAGES
Guarantee increase in income due to repositioning the branding
Minimal product changes necessary
Good, cheaper alternative to the Fiat Freemont for potential family cars
DISADVANTAGES
Dependant on marketing campaign for success
Will take a lot more money/time/effort to change people’s mind about the 500L
Will need to fully redesign car to be successful

15. Breadth & Depth

16. SOLUTION

17. Fiat Freemont

18. 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)

19. IMPLEMENTATION

20. 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

21. Marketing Budget
Revenue 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, for (January 1,2014- June 1,2014)

22. 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)

23. 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,

24. 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

25. 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)

26. 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)

27. 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

28. 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)

29. 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?

30. Conclusion

31. References
Cain, T. (2013, July 3). Fiat brand sales figures . Retrieved from Fiat group's world. (2013, September 13). Retrieved from
Fiat Freemont (2013, June, 28) Retrieved from