fiat india
DESCRIPTION
FIAT INDIATRANSCRIPT
GROUP A59 58 51 41 2559 58 51 41 25
FIAT INDIA
OBJECTIVETo determine key factors for low market share in india
SCOPE OF STUDYSCOPE OF STUDYTo 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 STUDYThe products are limited but possess many variantsThe products are limited, but possess many variants
On the grounds of low market share, statistics for a particular
i i t il blversion is not available
Hence, the study is conducted on a general product, i.e. CAR
AGENDA
GLOBAL OVERVIEW
INDIAN SCENARIOINDIAN SCENARIO
MARKETING STRATEGY (CURRENT STATUS, BUSINESS OBJECTIVE, SALES
STATISTICS, OFFERINGS, ECONOMICAL CLIMATE, BUSINESS CYCLE,
GROWTH ESTIMATES, COMPETITION, SALES & DISTRIBUTION)
ISSUES NEED TO BE ADDRESSEDISSUES NEED TO BE ADDRESSED
SWOT ANALYSIS
BUSINESS MODEL
REFERENCESREFERENCES
P d t C t A t bilProduct Category: Automobile
P d t T P CProduct Type: Passenger Car
B d FIATBrand: FIAT
M d l LINEA/ PUNTOModel: LINEA/ PUNTO
Fabbrica Italiana Automobili TorinoGlobal Overview
FIAT S.p.A, Turin based Large Industrial Group
Global Overview
Founded in 1899, by Giovanni Agnelli & Group
Presence in 190 countries across the world
118 R&D Centers and 203 Plants World Wide
R fi d it f th CRefined its focus on the Cars
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 –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 i 50 50 JV b t FIAT S A & TATA M tFIAL is 50-50 JV between FIAT S.p.A & TATA Motors.
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 moderateportfolio, sales figures remains 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 1 5 illi2009-10 : 1.5 million
units Sol
d
FIAT experienced 207%Units
growth of Domestic
MarketMarket
84% growth of ExportsYearFIAT INDIA (Li / P t )FIAT INDIA (Linea/ Punto)
Product Strongest Element of
Technology
Marketing Mix
Offer Cars as Basic Product
EnginesSafety
Presence in Segment
A: Micro Car
B S ll C (H t h B k)
Success
B: Small Car (Hatch Back)
C: Mid Size Sedans
Petrol & Diesel VariantsFactors Petrol & Diesel Variants
Will launch CNG cars
Offer Petrol & Diesel EngineDesignStyle
Offer Petrol & Diesel Engine
to other car makers
Will supply engines toComfort
Will supply engines to
commercial vehicle
manufacturermanufacturer
Product Offerings
Product Offeringsd i ifi i Cl i h l iProduct Engine specification Class Variants Technology Price
Grande Punto
1.2 fire petrol 1.4 Fire petrol
Hatchback ActiveDynamic
Blue & Me Rs. 445300/-Rs.477076/-Punto 1.4 Fire petrol Dynamic
EmotionEmotion
Emotion PK
Rs.477076/Rs.508571/-Rs.560760/-Rs.621499/-
1.3 Multijet engine Diesel
1.3 Multijet Diesel 90 HP
ActiveDynamicEmotionE ti
Rs.531292/-Rs.565914/-Rs.611020/-R 668718/HP Emotion
Emotion PKRs.668718/-Rs.702923/-
Fiat Linea
1.4 fire petrol Sedan ActiveDynamic
Blue & Me Rs.661552/-Rs 688782/-Linea Dynamic
EmotionEmotion PK
Rs.688782/-Rs.756838/-Rs.789311/-
1.3 advanced multijet Rs.758905/-jdiesel Active
DynamicEmotion
E ti PK
/Rs.790324/-Rs.837447/-Rs.895039/-
Emotion PK
Awards: FIAT LINEA
‘Car of the year’ award by UTVi Autocar: 2008
‘Mid i f th ’ b b th UTVi A t 2009 ‘Midsize car of the year’ by both UTVi Autocar: 2009
‘Midsize car of the year’ by CNBC Overdrive: 2009 y y
‘BBC TopGear Medium Saloon 2008’ by TopGear
Awards: GRANDE PUNTOAutocar Magazine's Coveted Design Award: 2008
Brazil's 'Carro Do anno 2008' (Car of the Year 2008)
Auto Inter Americana 2008Auto Inter-Americana 2008
Market Opportunities & Industry Trends
Huge Population over 1.1 billion signifies large
marketmarket
100% FDI allowed for the Indian Automotive Sector
High Distinctiveness in Demand for all segments of
carscars
Substantial rise in Disposable Income
India is expected to be Global Hub for Automobile
Manufacturingg
Passenger Car Segment, expected growth at CAGR
of 15% over next 5 years
Economical Climate
Pyramid structurePyramid structure
of the Indian
market is slowlymarket is slowly
collapsing and
being replaced bybeing replaced by
a diamond
Source: National Council of Applied Economic and Research (NCAER)
Business Cycle: Economic Melt Down
Globally Auto industry's growth was poisedGlobally Auto industry s growth was poised
Growth in Rapidly Emerging Economies (BRIC
Nations), although slowed, still outpacing growth
anywhere else in the world,y ,
As the demographics of REE’s market, include first-
ti hi l t l t ttime vehicle owners to large extent.
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
CompetitionFierce Competition from Hyundai and Ford
Maruti Suzuki is market leader with ~50% of shareMaruti Suzuki is market leader with 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 2012, y
FIAT started exporting cars to SAARC nations following
f f i ithe foot steps of Maruti & Hyundai
Message to Competitors:
Maruti may have 50% market share in India but we are
nowhere behind fight us to maintain the demandnowhere behind, fight us to maintain the demand.
Factors of Competition
Product Mix Price
HatchbackSedanMi C
At Par with competitorsExcept FIAT 500
Micro CarLarge variants withinsegment
Service Spare Parts
Tie-up with TATAInitiated FIAT FIRST
More focused issueEasy availabilityEasy availabilityGenuine PartsCompetitively Priced
FIAT FIRST
Long Service IntervalInterval
Customer Growing Service Network
Long Warranty CoverageCentric
Initiative
Network Coverage
24 X 7 Road Genuine Spare Side Assistance
pParts
Sales & Distribution
Efficient Supply Chain
Fiat has a 50:50 JV with Tata Motors shares their dealer networkFiat has a 50:50 JV with Tata 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 G aranteedLinea: Admiration Guaranteed
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 sales was moderateDespite of competitive products, sales was moderate
Need to increase Exclusive Dealership Network
JV may be a possible threat for future
Promotion is the weakest part of FIAT INDIA, even FIATp ,
officials admit the fact
i iThere is a need to educate the customers regarding
their Hi-Tech Products & competitiveness
Strong Promotion campaigns required to completely
wipe out the deteriorated brand imagewipe out the deteriorated brand image
SWOT Analysis (FIAL)
High Quality ProductsTechnology
Deteriorated Brand ImageWrong perception aboutTechnology
Strong Dealer NetworkBusiness ExpansionHeavy Investment
Wrong perception aboutIndian MarketPoor Customer CareSpare Part IssuesHeavy Investment
Century long presencein industry
Spare Part IssuesLimited Product RangeInsufficient Promotion
New Market SegmentsBrand RevivingConsumer perception
Shared Dealer NetworkStiff Competition
Consumer perceptionIncreased ExclusiveDealership
Business ModelBusiness
Objective
Strategic Planning
CRM
TargetMarkets
Customised Promotion Programmes
Passenger & Luxury Cars, SUV, MUV, Commercial Vehicles
Separate areas/ Exclusive Dealer
Dedicated Sales Teams for Models
Increased Manpower
Training Programmes
Information Customer
g
FIAT FIRST
References
www.fiat.com
www.fiatindia.com
www.timesofindia.indiatimes.com/business
www.rushlane.com/fiat-india
t t t h l iwww.tatatechnologies.com
www teambhp com
Thank You
www.teambhp.com
www.zigwheels.com Thank You