GROUP A

59 58 51 41 25
FIAT INDIA
OBJECTIVE
To determine key factors for low market share in india

SCOPE OF STUDY
ƒ To provide insight into current Marketing Strategy of FIAT INDIA
ƒ To determine the reasons, undermining their Market share
ƒ To come up with an appropriate Business Model

LIMITATIONS OF STUDY
ƒ The products are limited,
limited but possess many variants
ƒ On the grounds of low market share, statistics for a particular
version
i i nott available
is il bl

ƒ Hence, the study is conducted on a general product, i.e. CAR

AGENDA
ƒ GLOBAL OVERVIEW

ƒ INDIAN SCENARIO

ƒ MARKETING STRATEGY (CURRENT STATUS, BUSINESS OBJECTIVE, SALES

STATISTICS, OFFERINGS, ECONOMICAL CLIMATE, BUSINESS CYCLE,

GROWTH ESTIMATES, COMPETITION, SALES & DISTRIBUTION)

ƒ ISSUES NEED TO BE ADDRESSED

ƒ SWOT ANALYSIS

ƒ BUSINESS MODEL

ƒ REFERENCES
P d t Category:
Product C t A t
Automobile
bil

P d t Type:
Product T P
Passenger C
Car

B
Brand:
d FIAT

M d l
Model: LINEA/ PUNTO
 Fabbrica Italiana Automobili Torino
Global Overview
ƒ FIAT S.p.A, Turin based Large Industrial Group

ƒ Founded in 1899, by Giovanni Agnelli & Group

ƒ Presence in 190 countries across the world

ƒ 118 R&D Centers and 203 Plants World Wide

ƒ Refined
R fi d its
it focus
f on the
th Cars
C
Business Group: World Wide

Source: Corporate Fact Sheet: FIAT GROUP

FIAT India Automobiles Ltd.
Indian Scenario
ƒ FIAT began selling its vehicles in India in 1905
ƒ Tied up with sales agency –
Bombay Motor Cars Agency
ƒ In 1959 Fiat entered into a license agreement with,
Premier Automobiles Limited (PAL)
( )
ƒ Current presence through a 100 per cent subsidiary
ƒ FIAL is
i 50-50
50 50 JV between
b t FIAT S.p.A
S A & TATA Motors.
M t
ƒ It owns state-of-the-art facility at Ranjangaon.
FIAT India Automobiles Ltd.
Indian Scenario

ƒ Products: passenger cars, both petrol & diesel models.

ƒ Also sells through part of Tata Motors' dealer network.

ƒ Sales Network: 175 Dealers across Cities & Small town.

ƒ Despite of highly competitive cars in its Indian

portfolio sales figures remains moderate.

portfolio, moderate
Marketing Strategy – FIAT INDIA
Current Position

Market Share – Passenger Cars

Source: ACMA Report - Indian Auto Component Industry An Overview

Business Objective
 Sales Statistics: Indian Scenario

ƒ Total Industry Sales

2009 10
2009-10 : 15
1.5 million
illi
Units Sold

units

ƒ FIAT experienced 207%

growth of Domestic

Market

Year ƒ 84% growth of Exports

FIAT INDIA (Linea/
(Li / Punto)
P t )
Product ƒ Strongest Element of
Marketing Mix
Technology ƒ Offer Cars as Basic Product
ƒ Presence in Segment
A: Micro Car
Safety Engines
B Small
B: S ll Car
C (Hatch
(H t h Back)
B k)
C: Mid Size Sedans
Success
ƒ Petrol & Diesel Variants
Factors
ƒ Will launch CNG cars
ƒ Offer Petrol & Diesel Engine
Style Design
to other car makers
ƒ Will supply engines to
Comfort commercial vehicle
manufacturer
Product Offerings
Product Offerings
Product
d Engine
i specification
ifi i Cl
Class Variants
i Technology
h l Price
i

Grande 1.2 fire petrol Hatchback Active Blue & Me Rs. 445300/-
Punto 1.4 Fire petrol Dynamic Rs.477076/-
Rs.477076/
Emotion Rs.508571/-
Emotion Rs.560760/-
Emotion PK Rs.621499/-
1.3 Multijet engine Active Rs.531292/-
Diesel Dynamic Rs.565914/-
1.3 Multijet Diesel 90 Emotion Rs.611020/-
HP E
Emotion
ti R 668718/
Rs.668718/-
Emotion PK Rs.702923/-
Fiat 1.4 fire petrol Sedan Active Blue & Me Rs.661552/-
Linea Dynamic Rs 688782/-
Rs.688782/-
Emotion Rs.756838/-
Emotion PK Rs.789311/-
1.3 advanced multijet
j Rs.758905/-
/
diesel Active Rs.790324/-
Dynamic Rs.837447/-
Emotion Rs.895039/-
E
Emotion
ti PK
Awards: FIAT LINEA
‘Car of the year’ award by UTVi Autocar: 2008

‘Mid i car off the

‘Midsize th year’’ by
b both
b th UTVi Autocar:
A t 2009

‘Midsize car of the y

year’ by
y CNBC Overdrive: 2009

‘BBC TopGear Medium Saloon 2008’ by TopGear

Awards: GRANDE PUNTO

Autocar Magazine's Coveted Design Award: 2008

Brazil's 'Carro Do anno 2008' (Car of the Year 2008)

Auto Inter-Americana
Inter Americana 2008
Market Opportunities & Industry Trends
ƒ Huge Population over 1.1 billion signifies large
market
ƒ 100% FDI allowed for the Indian Automotive Sector
ƒ High Distinctiveness in Demand for all segments of
cars
ƒ Substantial rise in Disposable Income
ƒ India is expected to be Global Hub for Automobile
Manufacturing
g
ƒ Passenger Car Segment, expected growth at CAGR
of 15% over next 5 years
Economical Climate

Pyramid structure
of the Indian
market is slowly
collapsing and
being replaced by
a diamond

Source: National Council of Applied Economic and Research (NCAER)

Business Cycle: Economic Melt Down

ƒ Globally Auto industry

industry'ss growth was poised
ƒ Growth in Rapidly Emerging Economies (BRIC
Nations), although slowed, still outpacing growth
y
anywhere else in the world,,
ƒ As the demographics of REE’s market, include first-
ti
time vehicle
hi l owners to
t large
l extent.
t t
ƒ Level of car adoption is relatively low, 11 cars in use
per 1,000 people.
Growth Projection: Globally

Source: The Best year of Auto Industry are still to come – Ronald Haddock & John Jullen
Competition
ƒ Fierce Competition from Hyundai and Ford
ƒ Maruti Suzuki is market leader with ~50%
50% of share
ƒ FIAT INDIA is gearing up for High Level Competition
ƒ FIAT plans to combat Maruti Suzuki’s ALTO with 1 liters
small car,, by
y 2012
ƒ FIAT started exporting cars to SAARC nations following
the foot
f steps off Marutii & Hyundaii
ƒ Message to Competitors:
Maruti may have 50% market share in India but we are
nowhere behind,
behind fight us to maintain the demand.
demand
Factors of Competition

Product Mix Price

ƒ Hatchback ƒ At Par with competitors

ƒ Sedan ƒ Except FIAT 500
ƒ Mi
Micro C
Car
ƒ Large variants within
segment

Service Spare Parts

ƒ Tie-up with TATA ƒ More focused issue

ƒ Initiated FIAT FIRST ƒ Easy availability
ƒ Genuine Parts
ƒ Competitively Priced
FIAT FIRST

Long Service
Interval

Growing Service Customer Long Warranty

Network Coverage
Centric
Initiative

24 X 7 Road Genuine Spare

p
Side Assistance Parts
Sales & Distribution

Efficient Supply Chain

Fiat has a 50:50 JV with Tata Motors,

Motors shares their dealer network

Currently sells through 175 dealerships of JV, across 130 Cities

40 Exclusive Dealers

Need to get rid of shared Sales & Service Network

Promotion

Punch Lines
Linea: Admiration Guaranteed
G aranteed
Punto (Petrol/ Diesel): Crafted for True Fan
Punto (90hp): India’s Most Powerful Diesel
Hatchback
500: Every FIAT is 500% FIAT

FIAT appointed AICAR as Marketing Advisor in India

Advertising company: Orchard Advertising (sister concern of

Leo Burnett India)
Issues to Address
ƒ Current Marketing Strategy does not work out
ƒ Despite of competitive products,
products sales was moderate
ƒ Need to increase Exclusive Dealership Network
ƒ JV may be a possible threat for future
ƒ Promotion is the weakest p
part of FIAT INDIA,, even FIAT
officials admit the fact
ƒ There is
i a need to educate the customers regarding
i
their Hi-Tech Products & competitiveness
ƒ Strong Promotion campaigns required to completely
wipe out the deteriorated brand image
SWOT Analysis (FIAL)

ƒ High Quality Products ƒ Deteriorated Brand Image

ƒ Technology ƒ Wrong perception about
ƒ Strong Dealer Network Indian Market
ƒ Business Expansion ƒ Poor Customer Care
ƒ Heavy Investment ƒ Spare Part Issues
ƒ Century long presence ƒ Limited Product Range
in industry ƒ Insufficient Promotion

ƒ New Market Segments ƒ Shared Dealer Network

ƒ Brand Reviving ƒ Stiff Competition
ƒ Consumer perception
ƒ Increased Exclusive
Dealership
Business Model
Business
Objective

CRM Strategic
Planning

Passenger & Luxury Cars, SUV, Target Customised Promotion

MUV, Commercial Vehicles Markets Programmes

Training Dedicated Sales Separate areas/ Increased

Programmes
g Teams for Models Exclusive Dealer Manpower

Information Customer

FIAT FIRST
References

ƒ www.fiat.com

ƒ www.fiatindia.com

ƒ www.timesofindia.indiatimes.com/business

ƒ www.rushlane.com/fiat-india

ƒ www.tatatechnologies.com
t t t h l i

ƒ www.teambhp.com
www teambhp com

ƒ www.zigwheels.com
Thank You