New Product Launch Marketing Plan, Part I

Topics: Fiat, City car, Automotive industry Pages: 6 (1456 words) Published: March 5, 2014


New Product Launch Marketing Plan, Part I
New Product Launch Marketing Plan, Part I
International: Fiat
Market Needs and Market Growth
“Vehicle shipments in NAFTA totaled 2,238,000 units for FY 2013, representing a 6% increase over FY 2012. In the U.S., vehicle shipments were 1,876,000 (up 7% from FY 2012), in Canada 269,000 (up 5%) and 93,000 for Mexico and other.” (Fiat 2013 Full Year Q4 Results, 2014) “Fiat forecast that group trading profit this year will rise to between 3.6 billion euros and 4 billion euros from 3.39 billion euros in 2013. The forecast is lower than a range of 4.7 billion to 5.2 billion euros given in October 2012 and below analysts’ forecast of 4.15 billion euros” (Automotive News Europe Home, 2014). Fiat vehicles mainly sold to Europe and Latin America. For Italians, the Brazilian market is almost as important as the European market. These two regions market is not very good due to economic crisis. But Chrysler mainly occupies stronger advantage in North America. In third quarter of 2013, its earnings in the North American market increased by more than 20%. In addition, both the Chrysler and Fiat so far have occupied important shares in Chinese market. Therefore, the Chinese market will be the key to Fiat profitable. According to the Wall Street Journal, the amount of global automotive will have a 4% growth in 2014, while the American and European markets also have 3% growth in 2014 (2014). This means that the slow recovery of the global economy will drive the automotive consumer over global. With oil prices rising, more people are favoring economical vehicles, such as electric hybrid. Ford expects electric hybrid cars will occupy 20-30% of the car market next decade, therefore, Ford, Toyota, Nissan and other major car companies have launched their own electric hybrid car. SWOT Analysis

Strengths. Fiat has a long international history and presence. Fiat boasts an environmental consciousness that is ahead of its competitors such as CO2 emissions and the use of renewable energy in the manufacturing process (Fiat.com, 2014). Weaknesses. A weakness may be the number of recalls on Fiat 500 in previous years resulting in a lack of trust in the brand. The global recession and decreased buying power of consumers may create a resistance to purchasing new automobiles. Opportunities. The Fiat name has been associated with Chrysler Group and it’s over-taking of the remaining equity in the US-based company (Fiat.com, 2014). Sochi 2014 has also been seen as a global marketing venue. Threats. Threats include the recovering auto industry in the United States with other international options for small, subcompact cars (that also focus on fuel efficiency). Potential Competition

Luxury brands have entered the subcompact car market in Europe. Fiat’s price isn’t a match for the people who are willing to pay a little more for the name of a BMW or Audi (Automotive News Europe, 2013). Product Offering and Product Definition

Fiat’s Panda Classic is available in 36 countries on four continents (Fiat.com). The Panda is a five door vehicle with climate control, extra storage and fuel economy. Multiple safety features are also included such as airbags, controlled crumple zones, and anti-whiplash head rests (Fiat.com). Product Identification

Fiat Panda.
Justification
Fiat’s Panda is one of the few models available in numerous countries, making a broader presence in the global market. The Panda is a smaller automobile, small enough to navigate tight cities streets yet roomy enough to transport families, friends and luggage. Domestic

Market Needs and Market Growth
Fait 500 is a small European designed 2-door car. Though the manufacturer has seen an increase in sales and overall profit, the brand has struggled in US markets. This is due to a disconnect between the brand and the American car market. The organization attempted to win over the American consumer...
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