Fiat Stilo

Problem Statement:

Fiat wants to re-launch their brand image in Spain, which has been highly damaged during the last decade. Fiat Auto Espana must come up with a marketing plan for the FIAT STILO model that enables them to gain position in the current market.

Situation Analysis: The facts below and others are also summarized in a SWOT analysis in Exhibit 1.

Company (PSI)

* Bad perception.

* Loss of market share.

* Management conflict.

o Sales wants to improve market share first and then improve profitability little by little.

o Marketing wants to improve profitability first and then market share.

* Changes happening.

o Dealerships are an example.

* Have been unsuccessful in trying to improve brand image.

* Large company, resources available.

* HQ based in Italy.

* Experienced company.

Customers

* Perception: Low quality, Small Vehicles.

* Market moving to mid segment.

* Buyers demand more features.

* 80% of buyers in the C segment are male.

* Generally middle class.

* Mainly 2 vehicles per household.

* Commonly live in cities.

* Use vehicles to go to work.

Competitors

* Aggressive marketing campaigns.

* Golf & Peugeot = High value.

* Weaknesses:

o Features.

o Design.

* Strengths:

o Price.

o Prestige.

o Technology.

Context:

* Company unable to improve brand image, hence loss of market share for the past years.

* Brand image in Europe more prestigious than in Spain.

* Segment C estimated to keep growing.

Alternatives:

Option One: Attack the male market.

This strategy focuses on the 80% of the market in segment C, that belongs to male buyers. It is also important for this strategy to sub-segment into 3-door car buyers, and 5-door car buyers.

PROS CONS

* Give a customer what they desire.

* Customer based marketing.

* Segmentation, not Mass marketing.

* Product differentiation.

* Largest part of segment C. * High competition.

* Low buying power.

* Offers little change.

Option Two: Attack the female market.

Create a marketing campaign focused on the female market. They currently represent 20% of the market share, which means that their needs are not being satisfied. There will be a sub-segmentation to differentiate the 3 and 5-door car buyers.

PROS CONS

* Attack an unattended market.

* Satisfy the customer's needs.

* Customer based marketing.

* Segmentation, not mass marketing.

* Less competition.

* Product differentiation.

* High buying power for customers.

* Not influenced by past Fiat experience. * Women might not be interest in a larger share of segment C.

* Forgetting about the male market (current majority of buyers).

* Might not be cost efficient.

* Risky campaign because of the novel factor.

Option Three: Attack the male and female market.

Create a marketing campaign focused on the male and female market. The male and female markets are also properly segmented as well as segmenting each gender sub-segment in 3 and 5-door car buyers.

PROS CONS

* Attack the whole market.

* Satisfy the customer's needs.

* Customer based marketing.

* Segmentation, not mass marketing.

* Product differentiation. * Women and men campaigns can collide and create a negative effect.

* Might be too ambitious.

* Might offer little change.

Complementary Option A: Let the user customize the product.

This option can be used with as a complement of any of the main options. It works by letting the customer customize the product's specification details and engine specifications as she wishes, similar to the way that Dell computers work. (www.dell.com)

PROS CONS

* Suits better the consumer.

* Gives the product and the brand an edge over the competition.

* Gives an image of a modern, futuristic company.

* Might enrich the web page.

* Client selects the price/specs. ratio

* Can be fun to customize the car.

* The customer identifies with the product.

* Tackles everyone. * More costly.

* More time to develop the idea.