1. Fiat 500 Excel-Orators: Aleesha Borbely Amandeep Sandher Coline Leman
Harman Chungh
Harvina Sidhu
Matthew Carlson
Megan Kalsbeek

2. Overview Introduction Problem Statement Target Market Key Findings
Aman
Introduction
Problem Statement
Target Market
Key Findings
SWOT
Competitive Analysis
Three Alternatives
Solution
Implementation Plan
Course Concepts
References

3. Introduction Fiat mission statement Fiat 500 mission statement
Aman
Fiat mission statement
Fiat 500 mission statement
Founded in Torino, Italy
First Fiat Factory
Fiat Zero
Manufactured by Chrysler
Owns 58.5% of Chrysler
Fiat mission statement:
"To build cars with attractive styling and exciting engines, cars that are accessible and improve the quality of everyday life."
Fiat 500 mission statement:
"The association aims to; Promote and keep alive the interest in the Fiat 500, It’s important historical role in Society, It’s design, and to foster the common appreciation and love for the Fiat 500 by promoting friendship and solidarity between people without any discrimination of age, social background, economic status, nationality or race; create, promote and implement initiatives aimed at the conservation and continued use of the Fiat 500 cars on a day to day basis.”
Founded in: Torino, Italy
At the end of 1800s
First Fiat Factory:
Opened in 1900 in Carso, Danite
First year: produced 24 cars
Employed 150 workers
Fiat Zero:
Debuted in 1912
First mass-produced small engine car
Fiat owns: Alfa Romeo, Chrysler, Dodge, Ferrari, Jeep, Lancia, Maserati, and Ram.
1979 Italian cars were at an all time high in US

4. Problem Statement
Aleesha
What product strategies could Fiat use in order to increase market share and create brand awareness by the end of 2014?

5. Target market identification
Aleesha
No defined target market
Our assumptions:
Generation Y
Generation X
Baby boomers
Fiat has no definite target market
We assume that Fiat is trying to market to Gen X, Y, and baby boomers based on Casey Hurbis’s statement who is the Head of Communications for Fiat in North America:
“After being out of the US market for 28 years, the challenge was to introduce the brand to generations X & Y that had little to no awareness of the Fiat brand, and to rekindle the baby boomers who remember Fiat from their youth.”
Gen Y:
Born between
Increased period of births. AKA “echo-boom”
Includes recent to future 21 year olds – the beginning of adult responsibilities and many new consumer activities
Exerts influence on music, sports, computers, video games, and especially wireless phones
Gen x:
~15% of Canadian population
Known as “baby-lust” era, because number of children born/year declined during this period
Consumers are: self-reliant, entrepreneurial, supportive of ethnic diversity and better educated than any previous generation
Not prone to extravagance and are likely to pursue lifestyles that are blend of caution, pragmatism, and traditionalism
Baby boomers:
Growing older
Born last time Fiat was popular in North America
Group accounts for the majority of the purchases made in the consumer product and services categories
Receptive to anything that looks or makes them feel younger

6. Fiat 500 Specialty product
Megan
Specialty product
Came to North America for market development
Return to market
European car of the year 2008
First 500 in North America
Fiat 500 is a specialty product:
Came to North America for market development
Returned to market in July 2006, after 50 years
Won European car of the year in 2008
Fiat 500 in N. America
Redesigned
Boasting a fuel-saving 4.9L/100km ability
Greener more affordable small car
Production started in Dec 2010

7. I N C A D a 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
F I A T S A L E s I N C A D a
Megan
Total Fiat sales in 2012:
8474
Total Fiat sales in 2013 YTD:
5803
Despite the addition of the 500L five door,
September volume of Fiat cut by nearly 1000 cars compared to last year, as 500 sales (despite being 60 units shy of the monthly average in 2013) dropped 40 % year-over year
Fiat 500: 2126 units, down 49 $ year-over-year
Sept 2013: worst sales in 2013
Trailed model’s 2013 monthly sales by average of ~1100 units
500’s worst monthly result since Jan 2012

8. Dec 2012 % Change 2012 Year End YTD % Change Fiat 500 449 +58.1 % 8474
+52.2%
Megan
Sept 2013
% Change
Year to Date
YTD % Change
Fiat 500
455
-34.3 %
5803
-18.6 %
FSales in Dec 2012 were 58.1% higher than what they were in Dec 2011
As a whole sales in 2012 were 52.2% greater than the year 2011
Sales in Sept 2013 were 34.3% lower than what they were in Sept 2012
Sales in the year 2013, until Oct, are 18.6% lower than the year 2012

9. Auto sales in Canada Subcompact car sales Overall new vehicle market
Megan
Subcompact car sales
Overall new vehicle market
September 2013
Up 4% from last year
Chrysler Canada Inc.
Canadian subcompact sales: down 6.8%
Overall car sales + overall new vehicle market: up 3.5%
Sept 2013:
Set new record as market booms breaking last set record in 2002
149,092 vehicles bought
Up 4% from 143,143 from a year earlier
Chrysler Canada Inc. sales rose 1.5%

10. Show where Fiat 500 lands in the small car sales in Canada

11. Market Trends Leasing Fuel economy Gadget full cars
Matt
Leasing
Fuel economy
Gadget full cars
Changing mid-size cars
Gen Y car chase
Leasing:
Car leasing dropped to less than 10% with the financial crisis in 2008
Over the last couple of years it is slowly beginning to ride
2) Fuel economy:
Car companies are serious about dramatically improving the fuel economy in virtually every vehicle they sell
3) Gadget full cars:
Cars are loaded with different multimedia features
Even budget rides come with navigation system, satellite radio, Bluetooth interface, voice activation and no end of infotainment options including state of the art surround sound.
4) Mid-size cars battle:
4 door family sized cars
Newest cars come with boasting sleek and sporty designs wrapped around comfortable packaging for five
5) Gen Y car chase:
Gen Y buyers: bunch of demands and no patience for “old” ways
Internet savvy; don’t like to haggle dealerships
Want good fuel economy in a reliable ride that feels just like an extension of their smart phones

12. Assumptions Focus on small and sexy car Using a stereotype
Good ads that need brushing up
Appearance
Brand is not well-known
Intriguing
Coline
Advertisements are good, but need to promote more specs (beats, eco-friendly, go-kart handling, safety, Eco:Drive, etc.)
Model appearance is not as appealing to North Americans
Late entry into the market is the reason their brand isn’t well known
They think people will watch their commercials after being intrigued and do their own research about the car after
Main focus in ads is the small-car spec
They’re only marketing their weakness of how unappealing the car is, hence all the “sexy” ads
Using a stereotype: just because its European, its sexy

13. Fiat 500 SWOT – Internal Strengths Weaknesses Eco-friendly car
Megan
Eco-friendly car
Small car
Affordable
Safety
Multimedia
Unstable history
Late arrival in North America
Exterior aesthetic
Strengths:
Eco-friendly:
(4.9L/100km)
Eco:Drive:
Free app analyzes your driving style from Fiat 500 to computer/smartphone and suggests ways to adjust your driving for better fuel efficiency and lower emissions
For 6th year in a row, Fiat has recorded lowest levels of CO2 emissions of any major European car company
Multiair engine:
Electronically controlled hydraulic system that regulates engine’s intake values to maximize efficiency with every stroke
Result: fuel economy up to 58 MPG on highway
Small car:
101hp with 5-speed manual transmission
Affordable:
Pricing at $13,395+
Safety:
Bi-halogen projector headlamps:
Focus more light on objects in your path
Eye-catching “curve around” styling helps ensure you’re more visible to other drivers
7 airbags:
Advanced multistage driver and passenger airbags
Driver’s knee bag, side curtain and seat mounted
Electronic Stability Control + All Speed Traction Control & Hill Start Assist
Advanced systems that apply selective braking and throttle control behind scenes to help you get where you’re going confidently and safely
Insurance Institute for Highway Safety (IIHS) named it a 2013 Top Safety Pick
Multimedia:
Blue&Me Hands-Free: allows control of audio system and bluetooth phone
Voice-activated TomTom navigation: hands-off approach
“Follow Me Home” Function: headlights stay on when you leave the car; ~3.5 min
Beats by Dre- Beats Audio:
Premium sound system
Crystal clear sound is produced by 7 available premium speakers
6.5 inch dual-voice coil subwoofer and eight-channel amplifier with Beats Audio digitial sound processing algorithm
Weaknesses:
Unstable history
Late Arrival in North America
2010
Exterior aesthetic:
Appeal more to European consumer than North America

14. Fiat 500 SWOT – External Opportunities Threats Booming market
Coline
Booming market
Cooperation with Chrysler
Increased gas prices
High competition
Trend to declined sales
Changing commuter habits
Opportunities:
Booming market?
Green Canadian Consumer:
People are becoming more eco friendly
Increasing gas prices:
Threats:
High competition:
Eco friendly cars are increasing
More small cars coming around
Changed habits:
People are becoming greener, therefore:
Making more use of transit
Biking
Walking

15. Competitive analysis – Mini Cooper
Matt/Harman
Strengths
Weaknesses
Safety
Iconic design
Made by BMW
Expensive
Maintenance service
Interior
Strengths:
Safety:
Automatic Stability Control + Traction
Prevents wheels from spinning
Braking:
Anti-lock Braking System as standard and Cornering Break Control
Ensured by 4 disc brakes
Electronic Brakeforce Distribution manages the balance of the braking force between front and rear axle
Brake Assist speeds up the process
Enables maximum braking pressure therefore minimizes braking distance
Dynamic Stability Control:
Prevents unstable driving situations by intervening in the engine management
Applies braking force to individual wheels at front and rear if necessary
Also includes Hill Assist
Lighting:
Bi-xenon headlights: adapt to direction of the road
Runflat tires:
Emergency running properties
6 airbags:
Driver and passenger airbags protect the head and upper body during head on collision
Side and head airbags reduce risk of injury during side impact
“Complete all-around protection”:
Rigid collapsible steering column acts as a protective shield
Providing optimum protection in case of impact from front, rear, side or roll over
Iconic design:
Classic look
Made by BMW:
Reputable company
Well known
Weaknesses:
Expensive:
Starting at $23,920
Maintenance service:
Service needed way before set/approximated kms
Parts/supplies take too long to come in/ don’t come in on time
Interior:
Big speed gauge in the center of the dashboard

16. Competitive Analysis: Ford Focus electric
Matt/Harman
Strengths
Weaknesses
No gas needed
Eco-friendly
Customization options
Reduced maintenance costs
Low/mile operating cost
Low driving range
Charging stations
Distribution
Charging
Expensive
Strengths:
No gas needed:
Saves gas money
Eco-friendly:
Zero emissions
Customization options:
Technologically advanced design which provides extensive customization options
Reduced maintenance costs over gas engines
Very low/mile operating costs
Weaknesses:
Low driving range:
100 mile driving range/charge
Charging stations
Very limited
Not many
Limited distribution
Charging:
Must be plugged to recharge, unlike hybrid gas/electric vehicles
Long charging times
Expensive:
$33,199

17. ? $ BOSTON MATRIX Stars: Dodge Question Marks: Fiat Cash Cows: Ferrari
Relative Market Share
(Cash Generation)
Harman
High
Low ?
Stars:
Dodge
Question Marks:
Fiat
Cash Cows:
Ferrari
Dogs:
Lancia
Market Growth Rate
(Cash Usage)
High $
Low

18. Alternative 1 - Repositioning
Harvina
Advantages
Disadvantages
Defined target market
Competitive advantage
Distinction/separation from competitors
Costly
Risky
Can cause confusion
Repositioning: (Changing a brand's status in comparison to that of the competing brands. Repositioning is effected usually through changing the marketing mix in response to changes in the market place, or due to a failure to reach the brand's marketing objectives.
Advantages:
Defined target market
Competitive advantage
Brand position becomes more clear, which allows Fiats target market to identify better with it
Can provide clear distinction/separation from competitors
Disadvantages:
The major challenge of repositioning is that you have invested money and time to build up one image, and now you want to completely undo that effort to change perceptions. The risk with proactive repositioning is that you may move away from a steady position and audience into a new market or position that doesn't work out as you planned. Additionally, repositioning can lead to confusion in the marketplace, especially if you don't make a committed effort to the new position. If you waffle between the old and new, customers will more likely turn to a brand with a clear position.

19. Alternative 2 – Co-branding
Advantages
Disadvantages
Coline
Boosting brand image
Benefits from other company
Expanding outside the automobile industry
Brand image dilution
Complex agreements
Culture clash
Advantages:
Boosting brand image while increasing profits
Able to reach out to more and new prospects with your new products/services
Benefits form other company:
Can bring in benefits from partnering company’s loyal customers
Expanding outside the automobile industry:
Products are introduced through other industries/markets
Disadvantages:
Brand dilution:
Brand isn’t just linked to another brand but it also combines with its values and image
Customers can be flustered between both brands
If one brand experiences a disaster it reflects on the other brand as well
Complex Agreements:
Requires a mutually beneficial agreement between two companies that protects legal integrity and systems of both brands
Long processes to reach agreement
Culture Clash:
Each franchise brand comes pre-loaded with a particular corporate or business culture that includes assumptions about best practices. Even in cases where businesses share similar cultures, the businesses should expect a relatively high cost for adapting the two cultures to work in a co-branded franchise. In situations where the companies do not share a consistent set of values, the differing assumptions driving each culture may turn a co-branded franchise project that looks good on the surface into a constant struggle for everyone involved. At the very least, businesses should investigate whether the other company or companies share compatible core values on major operational issues and financial management.

20. Alternative 3 – Marketing research
Advantages
Disadvantages
Aman
Customer involvement
Target market
Knowledge
Unclear information
Costly
Outdated Research
Advantages:
Customer is directly involved
Research provides an insight to consumer needs and wants
Target market:
Clearer view over who to target and who not
Knowledge:
Know before hand if consumers will like the product or any other change or not
Disadvantages:
Unclear information:
Gathered information may not work for many peoples ideas/values
Not all the needs/wants of the consumer may be able to be met
Extremely Costly when compared to conducting secondary research
Outdated research:
By the time research is conducted and put to implementing; people’s thoughts/ideas may change

21. Solution Repositioning Why? Possible target markets:
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
Fiat’s brand position in the market has become confusing, so we believe repositioning it is the best option
This allows for a more defined target market
Creates brand awareness among consumers
The alternative we chose is Repositioning because we think that Fait needs to take the “top of the mind” approach to its promotion and advertising. The more often the consumer is reminded of the brand the more likely they are to think Fiat 500 when it comes to purchasing that new car. Fiat has the competitive advantage on its Interior &  stylistic design also its innovation and fuel economy. It is the most affordable compact car in its class. Repositioning Fiat to promote these advantages will give the 500 the edge it needs to take the lead over its competitors and increase market share and brand awareness. We need to start a “media Blitz” so the consumer need to see Fiat absolutely everywhere. The consumer need to know why they should buy the fiat over its competitors. So rather than simply taking sexy approach. We need to promote what the consumer will  benefit from the car and what makes it unique and valuable.
Possible target Markets:
Trendsetters- men and women in the public eye who catch consumers’ attention with their unique character. With people developing a sense of trust for them, trendsetters inspire people with their style, attitude, belief and advice
1. The Suburban Commuter
lives in the suburbs & commutes to the city
Usually younger because they cant afford to live in the city .
Want to save money on gas so fuel economy is important
spend a lot of time in the vehicle s interior and entertainment ie. sound system are important to them
Price conscience
likes to car pool, so four seater is appealing
Men & Women: Age 20-35
2. The Urban Consumer
Small car makes it easier to park and has better mobility around the city
Stylish and hip. Features and aesthetics are important to them
Enjoy affordable luxury
Are eco-friendly and appreciate sustainability  
Can be “trend setters”
Men and Women Age 20-35
3.  The Independent Student
not much disposable income but need a reliable, economical car at an affordable price.
like to keep up with new trends
responds well to innovation, unique features, and aesthetics  
Men & Women: Age 19-30

22. Marketing mix Product Price Place Promotion Product: (Harvina)
Change the look to better appeal to the North American Consumers
Change the specs to introduce the Fiat 500 to consumers that like more power in their cars
Henry Ford once said “the customer could have any color car, as long it was black” Mass customization is the reverse; it gives every customer the ability to choose any color.
Price: (Harvina)
Keep selling price of Fiat as is
Implementation plan costs?
Place: (Harvina)
North America could potentially still be a very profitable area for Fiat
Get more of their own dealerships, instead of selling through Chrysler
At least one/major city
More toward city life that have small/tight streets as compared to country siders
Promotion: (Aleesha)
Promote Fiat as a luxury compact car as more affordable in its class
Promote the interior of Fiat as it provides a competitive advantage over competition
Promote specs rather than just the look (small and sexy)
Talk safety
Multimedia
Eco-friendly features
“Media Blitz” – needs to be everywhere
Promote how consumer will benefit buying a Fiat over another car
Newspaper ads, radio ads, trade shows, viral marketing (social media), Billboard ads, etc.
TV commercials promoting JD Power and Associates awards and reviews
No one knows about these
Provide loyalty programs for customers

23. timeline Stage 1: Stage 2: Promotions Stage 3: Trade shows
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 – New York International Auto Show
Stage 1 (complete):
Conducting research as to why Fiat isn’t selling as much as they’d like to
Make any changes to the Fiat itself
Stage 2: Promotions:
Nov-April: A full 6 months of Online advertising, social media & viral marketing, Youtube, Flickr, Instagram, Facebook, Twitter, etc. Google social media platforms
Dec – April: 5 months of weekly half page, full colour Newsprint ads in national papers. Vancouver Sun, The Province, New York Times, Washington Post, L.A Times, Detroit Press, Toronto Star, etc.
Jan – April: Launch frequent Television Commerials (variety of channels) just before attending the trade shows
Feb – April: 3 months of Radio, Billboard, and Bus ads
Stage 3:
Jan 18-26, 2014: Attend the North American International Auto Show (NAIAS) in Detroit
April 18-24, 2014: Attend the New York International Auto Show

24. “

25. Course concepts Classification of consumer goods Target market
Market segmentation
SWOT analysis
Competitive Analysis
Positioning
Market research
Marketing Mix
Aman
B2C marketing
Classification of consumer goods:
Specialty good
Target market:
Fiat has an undefined target market
Market segmentation:
Segmenting market based on demographic, psychographic, behavioral, and geographical characteristics when defining target market and in plan of action
SWOT analysis:
Analyzing Fiat’s internal strengths and weaknesses, as well as its external opportunities and threats
Competitive analysis:
Strengths and weaknesses of Mini Cooper and Ford Focus electric compared to Fiat 500
Positioning:
Strategy
Marketing research:
Alternative strategy
Marketing mix:
Used in the repositioning strategy where the 4 Ps were altered

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Barth, L. (2013, August 14). Car brands: Who owns what? Consumer Reports. Retrieved October 2013, from ConsumerReports.org: what/index.htm
Beats Audio. (n.d.). Retrieved October 2013, from Beatsbydre:
Cain, T. (2013, January 22). December 2012 and 2012 Year End Small Car Sales in Canada. Retrieved October 2013, from Good Car Bad Car: figures.html

27. Cain, T. (2011, January 1). Fiat 500 Sales Figures
Cain, T. (2011, January 1). Fiat 500 Sales Figures. Retrieved October 2013, from Good Car Bad Car:
Cain, T. (2013, October 16). Small Car Sales Figures in Canada - September 2013 YTD. Retrieved October 2013, from Good Car Bad Car: small-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 : topics-in-the-auto-industry/article /?page=all
Crocker, J. (2013, October). Drive My Brand: FIAT's Search for Success. Retrieved October 2013, from Google-Think Insights:
Fiat. (n.d.). Retrieved October 2013, from Fiat Canada:
Fiat 500. (n.d.). Retrieved October 2013, from MSN Autos:
History. (n.d.). Retrieved October 2013, from Fiat: US/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: business/chryslers-us-sales-rose-1-per-cent-in-september/article /

28. McCausland, E. (2013, October 1)
McCausland, E. (2013, October 1). Chrysler September Sales: Fiat and Jeep Have Tough Month. Retrieved October 2013, from Motor Trend: sales-fiat-and-jeep-have-tough-month html#axzz2glT6jVe8
Mini Cooper. (n.d.). Retrieved October 2013, from Mini:
Origins and development. (n.d.). Retrieved October 2013, from Fiat 500 Club Italia: