Fiat Stilo Case
|Fundamentals of Marketing |Fiat Stilo: Positioning |
1. Problem Statement: Since the mid 1990’s, and despite the economic boom in the Spanish market, Fiat’s market share has dropped from 7% to 3.5% (symptoms), bringing it down from the leading car manufacturer to the seventh place by 2001. This was mainly due to fact that Fiat’s brand image was associated with cars that were of poor quality and unreliable (problem). Therefore, Fiat need to move towards the C segment where the automotive industry was moving increasingly, from the A and B segments (causes) (2000 50% of sales in 2000), where they mainly concentrated on.
2. Situation Analysis: ● Company: ○ The main objective of the company is to improve profitability and volume and improve prestige by re-launching the brand in Segment C in Spain. ● Customers: ○ 5-door: Predominantly male; reluctant to change; attracted to innovation, safety, comfort, versatility; and Mid-high standard of living; ○ 3-door: Mainly male, high percentage of female; not reluctant to change; attracted to character, agility, sport, designer value, aggressive look; and high purchasing power, usually it’s the first car. ● Competition: The table in Appendix D summarizes who are Fiat’s competitors, their strengths, weaknesses, strategies and prices: (See Appendix D) ● Collaborators: ○ Distributors: i. The Link, online sales system: the center of all Fiat activities and its network; ii. The unified dealership networks policy between Fiat, Alfa Romeo and Lancia. This allowed a significant costs reduction and improved client assistance.
3. Alternatives: A. Marketing strategy: to offer high quality car with higher prices and to capture clients who did not yet consider Fiat as an alternative. a.
1. Problem Statement: Since the mid 1990’s, and despite the economic boom in the Spanish market, Fiat’s market share has dropped from 7% to 3.5% (symptoms), bringing it down from the leading car manufacturer to the seventh place by 2001. This was mainly due to fact that Fiat’s brand image was associated with cars that were of poor quality and unreliable (problem). Therefore, Fiat need to move towards the C segment where the automotive industry was moving increasingly, from the A and B segments (causes) (2000 50% of sales in 2000), where they mainly concentrated on.
2. Situation Analysis: ● Company: ○ The main objective of the company is to improve profitability and volume and improve prestige by re-launching the brand in Segment C in Spain. ● Customers: ○ 5-door: Predominantly male; reluctant to change; attracted to innovation, safety, comfort, versatility; and Mid-high standard of living; ○ 3-door: Mainly male, high percentage of female; not reluctant to change; attracted to character, agility, sport, designer value, aggressive look; and high purchasing power, usually it’s the first car. ● Competition: The table in Appendix D summarizes who are Fiat’s competitors, their strengths, weaknesses, strategies and prices: (See Appendix D) ● Collaborators: ○ Distributors: i. The Link, online sales system: the center of all Fiat activities and its network; ii. The unified dealership networks policy between Fiat, Alfa Romeo and Lancia. This allowed a significant costs reduction and improved client assistance.
3. Alternatives: A. Marketing strategy: to offer high quality car with higher prices and to capture clients who did not yet consider Fiat as an alternative. a.