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 c ...