GROUP A
59 58 51 41 25
FIAT INDIA
OBJECTIVE
To determine key factors for low market share in india
SCOPE OF STUDY
To provide insight into current Marketing Strategy of FIAT INDIA
To determine the reasons, undermining their Market share
To come up with an appropriate Business Model
LIMITATIONS OF STUDY
The products are limited,
limited but possess many variants
On the grounds of low market share, statistics for a particular
version
i i nott available
is il bl
Hence, the study is conducted on a general product, i.e. CAR
AGENDA
GLOBAL OVERVIEW
INDIAN SCENARIO
MARKETING STRATEGY (CURRENT STATUS, BUSINESS OBJECTIVE, SALES
STATISTICS, OFFERINGS, ECONOMICAL CLIMATE, BUSINESS CYCLE,
GROWTH ESTIMATES, COMPETITION, SALES & DISTRIBUTION)
ISSUES NEED TO BE ADDRESSED
SWOT ANALYSIS
BUSINESS MODEL
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
FIAT S.p.A, Turin based Large Industrial Group
Founded in 1899, by Giovanni Agnelli & Group
Presence in 190 countries across the world
118 R&D Centers and 203 Plants World Wide
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
FIAT began selling its vehicles in India in 1905
Tied up with sales agency –
Bombay Motor Cars Agency
In 1959 Fiat entered into a license agreement with,
Premier Automobiles Limited (PAL)
( )
Current presence through a 100 per cent subsidiary
FIAL is
i 50-50
50 50 JV between
b t FIAT S.p.A
S A & TATA Motors.
M t
It owns state-of-the-art facility at Ranjangaon.
FIAT India Automobiles Ltd.
Indian Scenario
Products: passenger cars, both petrol & diesel models.
Also sells through part of Tata Motors' dealer network.
Sales Network: 175 Dealers across Cities & Small town.
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
Total Industry Sales
2009 10
2009-10 : 15
1.5 million
illi
Units Sold
units
FIAT experienced 207%
growth of Domestic
Market
Year 84% growth of Exports
FIAT INDIA (Linea/
(Li / Punto)
P t )
Product Strongest Element of
Marketing Mix
Technology Offer Cars as Basic Product
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
Petrol & Diesel Variants
Factors
Will launch CNG cars
Offer Petrol & Diesel Engine
Style Design
to other car makers
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
Huge Population over 1.1 billion signifies large
market
100% FDI allowed for the Indian Automotive Sector
High Distinctiveness in Demand for all segments of
cars
Substantial rise in Disposable Income
India is expected to be Global Hub for Automobile
Manufacturing
g
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
Globally Auto industry
industry'ss growth was poised
Growth in Rapidly Emerging Economies (BRIC
Nations), although slowed, still outpacing growth
y
anywhere else in the world,,
As the demographics of REE’s market, include first-
ti
time vehicle
hi l owners to
t large
l extent.
t t
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
Fierce Competition from Hyundai and Ford
Maruti Suzuki is market leader with ~50%
50% of share
FIAT INDIA is gearing up for High Level Competition
FIAT plans to combat Maruti Suzuki’s ALTO with 1 liters
small car,, by
y 2012
FIAT started exporting cars to SAARC nations following
the foot
f steps off Marutii & Hyundaii
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
Hatchback At Par with competitors
Sedan Except FIAT 500
Mi
Micro C
Car
Large variants within
segment
Service Spare Parts
Tie-up with TATA More focused issue
Initiated FIAT FIRST Easy availability
Genuine Parts
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
Current Marketing Strategy does not work out
Despite of competitive products,
products sales was moderate
Need to increase Exclusive Dealership Network
JV may be a possible threat for future
Promotion is the weakest p
part of FIAT INDIA,, even FIAT
officials admit the fact
There is
i a need to educate the customers regarding
i
their Hi-Tech Products & competitiveness
Strong Promotion campaigns required to completely
wipe out the deteriorated brand image
SWOT Analysis (FIAL)
High Quality Products Deteriorated Brand Image
Technology Wrong perception about
Strong Dealer Network Indian Market
Business Expansion Poor Customer Care
Heavy Investment Spare Part Issues
Century long presence Limited Product Range
in industry Insufficient Promotion
New Market Segments Shared Dealer Network
Brand Reviving Stiff Competition
Consumer perception
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
www.fiat.com
www.fiatindia.com
www.timesofindia.indiatimes.com/business
www.rushlane.com/fiat-india
www.tatatechnologies.com
t t t h l i
www.teambhp.com
www teambhp com
www.zigwheels.com
Thank You
