Identify the Problem
 Not enough North Americans are buying the Fiat 500
 Fiat has a rather small market share over in North America
 Fiat has not built a strong enough brand image in this new market Causes of Problem
 Fiat brand vehicles have a reputation for being poor quality
(Fix It Again Tony)
 Bad reputation from the 1970’s
 Economic Recession fears and the US economic slump
 New Generations are not familiar with brand name

Problem Statement
 Which product strategies can Fiat use to increase their market share in North America by 50% by the end of 2014?

About Fiat S.p.A
 Founded in Turin, Italy in 1899
 Is the largest car manufacturer in Italy since 1910
 Inspired vehicles compete well in Europe
 Unsuccessfully entered the US market twice
 Acquisition of Chrysler signified a third attempt
 Fiat released the Fiat 500 in North America last year

About the Fiat 500
 Successful in Europe, especially in Italy, France and the UK
 Many awards including European Car of the Year
 Above average reliability index according to consumers
 Not selling well in North America
 Did not meet the sales goals last year
 Sales rising steadily
 Fiat hasn’t shed the reputation it has earned in America

SWOT Analysis
Strengths
 Above average reliability
 Potential for widespread distribution through Chrysler
 Biggest car manufacturer in Italy
 Aligned with Ferrari and Maserati
 Strategic management (Sergio Marchionne)
 Lowest CO2 emissions of any car manufacturer
 Fiat brand reputation for style

SWOT Analysis
Weakness
 Small Product line
 Many product recalls 2011-2012
 Bad reputation in North America (Fix it again Tony)
 New Brand
 Lack of Scale
 Only makes a 1/3 of the revenue than competitors.
 170 dealerships in US

SWOT Analysis
Opportunities
 Positive outlook for hybrid and electric vehicles
 Gradual fade away of market for SMART Cars (SMART
Fortwo)
 Fast growing market for subcompacts
 Increasing gas prices

SWOT Analysis
Threats
 Stiff competition
 Mini
 Green Cars

 Labour strikes impacting production
 Increases in prices of raw materials
 Global economy is still in recession

Competitive Analysis
Fiat 500
2012

Smart
Fortwo
2011

Mini
Cooper
Hardtop
2011

Ford
Fiesta SE
Hatchbac
k 2012

Toyota
Yaris 3Door L
2012

Scion IQ
2011

Honda Fit
2012

Price
(MSRP)

$15,500
USD

$12,490
USD

$20,100
USD

$15,500
USD

$14,115
USD

$16,020
USD

$15175
USD

Gas
Mileage

30.5 MPG

37 MPG

33 MPG

33 MPG

34 MPG

37 MPG

30 MPG

Power

101 HP

70 HP

121 HP

120 HP

106 HP

94 HP

117 HP

City Gas
Mileage

27 MPG

33 MPG

29 MPG

29 MPG

30 MPG

36 MPG

27 MPG

Seating capacity 4 passenger s

2 passenger s

4 passenger s

5 passenger s

5 passenger s

2 passenger s

5 passenger s

Engine
Type

1.4L 4cylinder

1.0L 3cylinder

1.6L 4cylinder

1.6L 4cylinder

1.5L 4cylinder

1.3L 4cylinder

1.5L 4cylinder

Warranty:
BumpertoBumper

4 years/50,0 00 miles

2 years/24,0 00 miles

4 years/50,0 00 miles

3 years/36,0 00 miles

3 years/36,0 00 miles

3 years/36,0 00 miles

3 years/36,0 00 miles

Perceptual Map
Classy (Expensive)

Mini Cooper

Volkswagen Beetle
Conservative

Ford
Fiesta

Toyota
Yaris

Sporty/ trendy

Honda Fit

Smart
Fortwo

Fiat 500

Practical (Affordable)

Scion iQ

Market Size
Top 10 Subcompact Cars in the US for August 2012
Nissan Juke; 6%
Kia Rio; 7% Kia Soul; 19%
Mini Cooper; 7%

Fiat 500; 6%
Nissan Versa; 17%
Ford Fiesta; 9%

Honda Fit; 7%
Chevrolet Sonic; 13%
Hyundai Accent; 10%

Market Segments
Demographic
 Age
 16 through 65
 Gender
 Male and Female
 Family Size/Martial Status
 Single or Married
 With or without children
 Empty nest
 Income
 Under 10k through 45k
 Occupation
 Student
 Career Beginning
 Retired
 Self employed
 Education
 High School
 College
 Degree

Geographic
 Region
 America
 Canada
 Mexico

 Density
 Urban
 Suburban
 Metropolitan

Market Segments
Behavioural
 Benefits Sought





Mid-quality
Low price
Style/flavour