FIAT 500

DRIVEN BY PASSION. FIAT.

SITUATIONAL ANALYSIS
BACKGROUND
Fiat Automobiles is more than a European company, Fiat Automobiles is a brand that has been in the making for over a century. Since 1899, at the dawn of the Italian industrialization, Fiat has played a significant, leading role in producing extensive lines of automobiles built with innovative technology and tied with deep-knitted sentiment. In 1900, the first factory was opened in Corso Dante, Italy, and ever since, the production has never stopped (Fiat). Fiat is continuously renovating its designs in order to keep abreast of the evolution of the automobile industry. The company is currently offering 16 models, including the classic remake of the Fiat 500. The original Fiat 500 was first built in 1957, after the devastation of World War II. The original Fiat 500 offered a sense of liberation, in which Italians were given the mobility to roam freely with confidence on the streets of Italy. Over 50 years later, the Fiat 500 is back and teams with Chrysler Group to starts its engine, for the first time, on the streets of the United States (Fiat USA).

COMPANY OVERVIEW

STRENGTHS
Strong historical brand in Europe Innovative Known for its creativity, practicality, and versatility Presence of Fiat manufacturing plant abroad Commit to responsible environmental practices Economical prices compared to the competition US dollar weak against Euro (cheaper to manufacture in US) Alliance with Chrysler

WEAKNESS
Little brand awareness in US market Poor marketing efforts Competing against other car companies with greater consumer brand value in US New entrant in the subcompact and specialty small car segment Small cars not as relevant and standard as in Europe Brand is a household third or fourth vehicle

OPPORTUNITIES
Expand to third world countries Subcompact and specialty car segment expected to increase to 1.4 million in 2015 Increasing gas prices (consumers search for fuel efficient cars) Trend to redesign and reintroduce historical successful models (VW Beetle, BMW Mini) Trend toward Maids environmentally friendly practices

THREATS
Decline of US economy Competitions credibility in US Government regulations Left US market 25 years ago with bad reputation

CUSTOMERS
There are many aspects that influence a consumers decision to purchase a car. The Fiat 500 will be marketed as a trendy, innovative, fuel-efficient car. Being a reintroduction of a historical and successful model will also be a marketing point because it will evoke nostalgic thoughts. Consequently, the primary target market will focus on young and trendy consumers are interested in new products. Self-expression is important to these

consumers and the Fiat 500 caters to that need through customization. Younger adults are more willing to try out new brands and products more so than those who are brand loyalist; therefore, it is important to communicate the brand to these consumers.

COMPETITORS
Competitors of the Fiat 500 include BMW Mini Cooper (Germany), Volkswagen Golf (Germany), Ford Fiesta (United States), Honda Fit (Japan), Nissan Versa (Japan) and Mazda 2 (Japan). The most notable competitor is the Mini Cooper, which ranks top of the class in performance due to its powerful engine, making the automobile zippier and fun to drive (US News). The Fiat 500, however, beats the Mini Cooper in two major areas: cargo space and price. Fiat 500 models offers maximum passenger/cargo capacity of 970 lbs. and 30 cu. ft. with the seats folded down, as the Mini Cooper basic model offers only 816 lbs and 24 cu. ft. The Fiat 500 base price of $15,500 is $4,600 less (-23%) than the Mini Cooper base price of $21,100. The Mini Cooper is also more expensive than Fiat 500s top model and takes premium gas. The second notable competitor is the Volkswagen Golf, known for its available diesel option, which is commendable for its fuel economy. The third notable competitor is the Ford Fiesta, known for its hybrid-like fuel economy, comfortable yet upscale interior and lower pricing. Negative aspects include a sparsely-equipped base model. The fourth notable competitor is the Honda Fit, known for its fuel economy, larger interior dimensions and slightly lower pricing. Negative aspects include limited technological functions. The fifth notable competitor is the Mazda 2, known for its higher fuel economy and lower pricing. Negative aspects include small cargo space and limited technological functions.

The last notable competitor is the Nissan Versa, known for its large cargo space and lower pricing. Negative aspects include sluggish acceleration and limited features. Listed below are the key specifications and rankings scored from US News & World Report, a magazine publication and online site that features rankings in academics, hospitals, financial services and automobiles. A) Mini Cooper: - ranks top performance in engine - more powerful engine - higher fuel economy - available customization - higher pricing - less cargo space - U.S. News & World Report Scores: Overall: 8.6 Performance: 8.4 Exterior: 8.4 Interior: 6.6 Safety: 9.4 B) Volkswagen Golf: - ranks top performance in class - more powerful engine - higher fuel economy - higher pricing - more cargo space - U.S. News & World Report Scores: Overall: 9.2 Performance: 8.6 Exterior: NA Interior: 8.7 Safety: 10.0 C) Ford Fiesta: - ranks top performance in class - higher fuel economy - lower pricing - more cargo space - U.S. News & World Report Scores: 4

Overall: 9.4 Performance: 9.4 Exterior: 8.4 Interior: 8.9 Safety: 9.6 D) Honda Fit: - ranks top performance in class - higher fuel economy - lower pricing - more cargo space - U.S. News & World Report Scores: Overall: 9.2 Performance: 8.4 Exterior: 7.3 Interior: 8.8 Safety: 10.0 E) Mazda 2: - ranks average performance in class - higher fuel economy - lower pricing - less cargo space - U.S. News & World Report Scores: Overall: 8.6 Performance: 8.9 Exterior: 6.5 Interior: 8.0 Safety: 8.8 F) Nissan Versa: - ranks average performance in class - higher fuel economy - lower pricing - more cargo space - U.S. News & World Report Scores: Overall: 7.8 Performance: 7.2 Exterior: 7.1 Interior: 8.6 Safety: 4.8

COLLABORATORS
A) Chrysler: Fiat formed a global strategic alliance with Chrysler who filed for Chapter 11 bankruptcy. This alliance allowed Fiat to enter the US market. B) Gucci: Fiat Auto and Italian design house Gucci have introduced the 500 by Gucci, a special edition of the iconic Fiat 500. Collaboration between Italys top brands C) Microsoft: Fiat Auto and Microsoft jointly developed Blue& Me, which is a system that offers Bluetooth connectivity, USB and voice-controlled hand free telephone kit. Available on all new Fiat cars

COMPETITIVE ADVANTAGE
The Fiat 500 is more than a car, it is moving history. With its first designs produced in 1957, after World War II, the Fiat 500 has evolved into a symbolic icon of an Italian legend. Consumers now have the opportunity to purchase the classic remake, stocked and redesigned with a revolutionary engine, and completely customize the automobile to make it their own for a reasonable price. In-demand automobiles are either known for its cutting edge technology and stylistic functions or for its nostalgic memories of a generation and even a country. Customers of the Fiat 500 can have it all (Fiat USA). Winner of 60 international awards, including 2008 European Car of the Year and 2009 World Car Design of the Year, the Fiat 500 has barely touched the surface of the US 6

market. The most notable advantage in the Fiat 500 is its engine, which is equipped with Air Technologies (eco-technological solutions) and recognized as the Single Most Innovative Engine Technology of 2010 by the International Engine Technology of the Year Awards panel. The engine provides an ecological mode of transportation, reducing its average CO2 emissions by 10% in the last four years. In 2010, Fiat (for the fourth year running) has been recorded as the brand with the lowest levels of CO2 emissions in Europe by JATO Dynamics (Fiat, Fiat USA). The next notable advantage is its complete customization. Potential customers of the Fiat 500 can choose between three trim levels: Pop, Sport, and Lounge. Pop is the most basic model as Lounge has the most added features. The Fiat 500 offers customers the opportunity to build their very own Fiat automobile, choosing from a range of 14 exterior colors, four seat colors, 9 graphic designs, four seat designs and two types of wheels. Another notable advantage in the Fiat 500 is its affordability, which is priced lower than some of its main competitors. Standard prices for the Fiat 500 range from $15,500 $19,500, depending on its trim levels. Pop is scaled at the lower end of the range as Lounge, with more added features, is scaled at the higher end of the range (US News). The Fiat 500 offers more than just complete customization, advanced technological functions and sentimental value to consumers the Fiat 500 can be an environmental and economical choice as well.

KEY STRATEGIC DECISIONS

ENVIRONMENT
Fiat 500 gets great gas mileage, 30 city/38 highway/33 combined mpg (EPA rated, 27city /34 highway mpg six-speed automatic.) With the bad economy, and such high gas prices, the fiat 500 is a good economical decision when it comes to buying a car. The Fiats gas tank is about 10 gallons, which is 30% less than a normal cars gas tank. Even with the small gas tank, it still gets 300 miles per tank. Driving a Fiat would create less pollution, and would help save the world.

SAFETY
The Fiat has seven airbags, which comes standard (the 7th is drivers knee air bag). The car is equipped with double seatbelt pretensions to tighten in a crash event sequence. All the four Fiat seats include three point belts and reactive head restraints. The Fiat has breakaway foot pedals in high impact frontal crashes to protect feet. The interior trim is flame resistant. The Fiat has a lower forward vision angle of 8%, so the driver is more upright to improve vision.

PERFORMANCE
The Fiat manual gets better mileage, 30/38 MPG. It does not require premium fuel. The Fiat 500 has patented Multi-Air valve technology. All models have a stainless steel exhaust system standard. The Fiat has hydraulic cam followers and never needs a valve adjustment. The automatic transmission has a one touch shifter + or -. It has a dashboard Sport switch to sharpen the steering and auto trans shift points. The Fiat has a 2 second hill holder that keeps manual car from rolling back. Fiat 500 traction control standard.

The Fiats HBA hydraulic braking control compensates for pressure in panic stops and lowers actuation time for maximum braking force. Fiat braking EBD reads wheel speed data for faster brake response times. The Fiat ESP calculates wheel longitude and lateral grip, cutting in when wheel slip is beyond parameters by adjusting throttle input and opposite wheel brake bias. Fiats ASR reduces wheel slip at all speeds and adjusts torque for grip detected.

INTERIOR
The Fiat has more space within the wheelbase devoted to passenger room. Fiat drivers fit up to the 90th percentile adult, up to 6 1 without bumping headliner. The rear seat passengers cover a 70th percentile, up to 59 without bumping liner. The Fiat has 32.2 rear seat leg room 25. There is 6.5 cubic foot trunk space. It has a longer luggage floor w/ seats upright, even though its shorter outside. The Fiat 500 has a longer luggage floor with the seats folded down too. It holds 30 cu. ft. of cargo w/ seats folded down. The front passenger seat in base model has a storage compartment. There is an outboard top seatback lever and in board lower lever for rear passenger egress. Centralized pod instrument bezel on the Fiat is directly in front of the driver. Fiat driver switches, controls and levers are easy to reach.

And the gear shifter is closer at hand. The Fiat center armrest is standard; it offers heated seats & mirrors. The Fiat 500 has an HVAC system with micron air filter for the cabin, even on base models. The 500 offers equivalent temperature sensors, changing settings based on inside and outside conditions of temperature, humidity and airflow. The Fiat has EcoDrive, a download computer application to review actual driving habits. It also includes an air compressor for tires as standard equipment. Tom-Tom docking feature on Fiat eliminates wires or plug-ins to cigar lighter. The Fiat offers superior Blue & Me interactive link w/ steering wheel controls & USB port. The Fiat BOSE 6 speaker Audio system requires 50% less energy & 30% smaller.

EXTERIOR
Fiat has 14 exterior colors but only two are $500 extra. The Fiat is tall with more upright seating position for better road view. Fog lights on Fiat Sport & Lounge are standard. The Fiat Lounge has fixed glass sunroof standard. The Fiat has quieter DBA noise level at idle and at speed on the road. It has low emissions as well as lowest in class. The Fiat has Bi-Halogen Headlights with daytime running lights.

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MEDIA STRATEGY
COMMUNICATION OBJECTIVES
Establish awareness of the new Fiat 500 released to the US Create buzz and word of mouth Generate interest in information and test drives; bring consumers to dealerships

STRATEGIC PLAN DEVELOPMENT

Our large focus is the general public; however the best start will be with single young adults, students or recent graduates. Demographically: Men/Women ages 18-34, with a median income of $30,000, single and with no kids.

BEHAVIORS
They are trendy, stylish, and sophisticated They are independent thinkers and like to have flexibility with personalization Travel on average 15,098 miles per year They travel to and from work and/or school 8-21% of long distance travel (50miles or more) is commuting to school or work

MEDIA OBJECTIVES
A reach of 85 percent and a frequency of 6.0 during the initial launch of the campaign. A reach of 75 percent and a frequency of 3.0 during in the months following the initial launch.

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BUDGET

Budget Break-Down
5.50% 7.50% 12% 47% Television Print Out of Home Radio Social Media 28%

Promotional Strategy Television Print Out of Home Social Media Radio Total

Percentages % 47% 28% 12% 5.5% 7.5% 100%

Dollars $ $4.7 million $2.8 million $1.2 million $550,000 $750,000 $10 million

KEY STRATEGIES
With this research, we are able to establish our key strategies:

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For the most part we determined that it would be most effective to use traditional vehicles because our target market is involved heavily with traditional media sources. High frequency strategy (continuous)

WHO (TARGET)
Young Adult Students/Young Working Professionals Men/Women, single, ages 18-34, without kids Likely to be looking for a fuel efficient, trendy, luxurious but affordable car

WHERE
The car will be launched nationally in December 2010; we will focus mainly on major metropolitans with high amounts of mixed city/highway driving. As well as major universities; Los Angeles County, New York-Northern New Jersey, Chicago, Dallas-Forth Worth, Philadelphia, Huston, Seattle, Boston, San Francisco-Oakland.

WHEN (TIMING/SEASONALITY)
Launch October 2010 to coincide with the Holiday season; also to coincide with the release date of the car in December 2010 Additional efforts will be placed in the months leading up to summer and the memorial day weekend as well as increased gas prices (March-April-May)

WHAT (VEHICLE SELECTION)

Internet/Social Network: Create a Facebook and twitter account for FIAT USA. Outdoor/Out of Home Advertising: Use traditional billboards and transit advertising to intersect young adults during their daily routine.

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Magazines: Car and Driver, Motor Trend, Road and Track, and Auto Week are great sources for consumers to get information as well as informative and entertaining reviews of new cars.

Television: The average American spent 142 hours watching television in 2010 With 36% of hour-long shows being commercials, television advertisements have a high viewing rate. Radio: With 21.5 hours per week spent listening to the radio, people ages 18-34 still are reachable via the radio.

MESSAGE STRATEGY
CREATIVE BRIEF
A) Why are we advertising?

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Fiat, an Italian auto manufacturer has its first launch of the Fiat 500 in the United States for 2012. This campaign is to gain brand awareness and develop a brand image. We want to drive business and create brand awareness in the United States. B) Who are we talking to? Primary audiences: young adults, students, single-adults, career-oriented, trendy Secondary audiences: public at large, new U.S. market parents of students and teenagers. C) How do they think and feel? Young, single consumers want variety, modern and stylish products. They are career driven, fun, active, sophisticated, impulsive, niche-oriented, and look for new innovative products. They want sporty and more high-end cars for an affordable price. Today consumers want fuel efficient and environmentally friendly vehicles that will benefit them when it comes to cost and mpg. D) What is the CENTRAL THOUGHT to work from? The Fiat 500 gives you luxurious Italian style combined with innovative safety that makes you feel trendy and sophisticated. It is small, fun to drive, fuel efficient and affordable in comparison to others in its class. E) Why should the consumer believe this? It is an Italian made car, new to the U.S. 5 star safety rating from the Euro NCAP for driver and passenger safety Get 30/38 MPG Seven standard airbags Customize it (multiple colors)

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F) Tone Fun, trendy, sophisticated, innovative G) Executional considerations Campaign will be primarily executed in print but should be adaptable to outdoor, transit, etc. OC BSA has promotional opportunities connected with Angels Stadium.

COMPETITIVE LANDSCAPE
Mini Cooper is our main competitor. A strategy they use quite often for advertising is a world and visual play on the word mini. They have done advertising by placing a Mini Cooper in a huge toy box make it resemble a toy car with the slogan reading, its more fun in a mini. Fiat could definitely learn from their campaigns because we are also a small and fun car, much like the Mini Cooper.

CAMPAIGN OVERVIEW
INTERNET ADVERTISING
A) Social Media: i. Facebook o Two daily posts on the FIAT USA Facebook homepage with purpose of creating brand awareness o Which Fiat 500 are You? interactive quiz o Find the Missing Fiat 500 contest: Three times a week for a month, a picture of a parked Fiat 500 will be taken in a well-known metropolitan city

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but only showing certain parts of the Fiat. Contestants must find where the Fiat 500 is parked at, using only the uploaded picture as a clue. Contestants must then take a picture of the Fiat 500, like the homepage, and then upload it on the page. The first ten people to do this each day will be entered in a random drawing and if chosen, will win a prize. o The page will have photo albums of events involving the Fiat 500, such as car shows as well as winners of the Find the Missing Fiat 500 contest. Owners of Fiat 500s will also have the opportunity to tag their own customized version. ii. Twitter o The Twitter page will facilitate brand awareness by tweeting everything about the Fiat 500 about 5-10 times a day, such as pictures, facts, competitive advantages, etc. o The Twitter page will promote Facebooks Find the Missing Fiat 500 contest by tweeting a link to the page. The winners pictures will be tweeted. This will help cross-promote Twitter and the Facebook page. o We will collaborate with Twitter and buy a promoted trending topic Fiat500. This will be on the top of the trending topics of the day. B) Online Commercials: i. MTVs Jersey Shore Jersey Shore is one of the highest rating programs for people in our target market. It is a successful show that has garnered record ratings for MTV. It is the networks most

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viewed series telecast ever. It premiered in December 2009 with 1.3 million viewers and ended the season with 4.8 million viewers. The latest season had 8.8 million viewers. For the next season of Jersey Shore, the cast members will be driving around in Fiat 500s customized to their own likings. Known for being over the top, the customization feature will go along with that characteristic and will grab the attention of viewers. The next season is going to be filmed in Italy, another good reason for using this show as a vehicle to promote the Fiat 500 being an Italian car.

OUT OF HOME ADVERTISING

There will be various billboards throughout the cities we are targeting. We will also be using the guerilla marketing tactic by placing just a blank outline of a Fiat (almost like a color page) and people can just grab it and color it. We are also launching a Follow the Fiat campaign where only parts of the Fiat are featured on a billboard and it will lead to a dealership. A) Billboard #1

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B) Billboard #2

C) Find the Fiat billboard campaign

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D) Color the Fiat 500 Guerilla Marketing The following picture (with crayons attached) will be placed all around the cities in Los Angeles County and Orange County, including college campuses and downtown area.

PRINT ADVERTISEMENTS
A) Which Fiat Flavor are You? This print advertisement focuses on the new 2012 Fiat 500 Pop model and its details. The ad highlights the Pop model in a variety of colors, including Azzurro (blue), Argento (grey), Bianco (white) and Rosso (red). The automobiles will be on top of lollipop sticks, which resemble different flavors of lollipops, and emphasize to consumers the

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mobility in choosing any Fiat 500 car design. The ad ultimately illustrates the customization and personalization options found in every Fiat 500 purchase.

B) The Fiat and the Furious This print advertisement focuses on the new 2012 Fiat 500 Sport model and its details. The ad highlights the Sport model in racing graphic designs, such as body side stripe decal. Fiat will team with the new film Fast Five, part of the The Fast and Furious series, which premieres on Friday, April 29, 2011. The automobiles will be lined in an

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informal race track, which will be similar to feature scenes in the film. The ad ultimately illustrates the sportiness of the vehicle, perfect for any race car enthusiast.

C) Lounge in Luxury This print advertisement focuses on the new 2012 Fiat 500 Lounge model and its details. The ad highlights the Lounge model as convertibles in front of a grand home and pool. The automobiles will replace lounge chairs, and emphasize to consumers the comfort and lavish style of the model.

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TELEVISION COMMERCIAL
A) Storyboard: The commercial starts out with the target market creating his perfect Fiat from scratch He chooses the color he wants (RED) He chooses the graphic he wants (RACING STRIPE) Then he chooses color of the interior (RED/WHITE)

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 And off he is to be FAST, be FREE, and be FIAT

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RADIO COMMERCIAL
A) Memorial/Labor Day The radio commercial will introduce the new 2012 Fiat 500 during the Memorial and Labor Day holidays. The ad will describe the car, its MPG and key features, as well as it making a comeback from Europe. B) Talking Fiat This commercial will have a telephone ring, and a Fiat answer the phone. The customer on the line is searching for a new small, fuel efficient vehicle, and asks the Fiat questions about the car. The Fiat responds with all its benefits and features it has to offer to new hip consumers, emphasizing its fuel efficiency.

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CONCLUSION
The focal point of the campaign is to create brand awareness in the U.S. market, a task that can be deemed unfeasible to some. Tit2Wi Agency has researched the company FIAT 500 and prepared appropriate actions in targeting the right consumers. Tit2Wi will implement a variety of promotions, including technological solutions (i.e. social media) as well as unconventional solutions (i.e. guerilla marketing). With the help of Tit2Wi Agency, FIAT 500 will be able to generate large amounts of revenue as well as establish a brand identity through the agencys innovative, modern marketing solutions.

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WORKS CITED
"2012 Fiat 500 Reviews, Pictures and Prices - U.S. News Rankings and Reviews." Best Car, Truck and SUV Ratings, Pictures, and Reviews from U.S. News - U.S. News Rankings and Reviews. Web. 23 Apr. 2011. <http://usnews.rankingsandreviews.com/carstrucks/Fiat_500/>. "Average Annual Miles per Driver by Age Group." Home | Federal Highway Administration. Web. 23 Apr. 2011. <http://www.fhwa.dot.gov/ohim/onh00/bar8.htm>. "Average Time Spent Online per U.S. Visitor in 2010." The ComScore Data Mine | Colorful, Bite-sized Graphical Representations of the Best Discoveries We Unearth from Our Data. Web. 23 Apr. 2011. <http://www.comscoredatamine.com/2011/01/averagetime-spent-online-per-u-s-visitor-in-2010/>. "BTS | Long-Distance Travel by Income, Gender, and Age." RITA | Bureau of Transportation Statistics (BTS). Web. 23 Apr. 2011. <http://www.bts.gov/publications/transportation_statistics_annual_report/2004/h tml/chapter_02/long_distance_travel_by_income_gender_and_age.html>. "Commuting Patterns in Multi-Centered Urban Settings: The Case of Southern California | Newgeography.com." Newgeography.com | Economic, Demographic, and Political Commentary about Places. Web. 23 Apr. 2011. <http://www.newgeography.com/content/0065-commuting-patterns-multicentered-urban-settings-the-case-southern-california>. "Fiat / News and Events." Fiat.it. Web. 23 Apr. 2011. <http://www.fiat.com/cgibin/pbrand.dll/FIAT_COM/news/news.jsp?contentOID=1075310662>.

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"FIAT USA | Brand Information." FIAT USA - Home. Web. 23 Apr. 2011. <http://www.fiatusa.com/en/about_us.html>. Langer, Gary. "What's the Average Commuting Distance for Americans?" Ask Questions, Find Answers - Askville. Web. 23 Apr. 2011. <http://askville.amazon.com/averagecommuting-distance-americans/AnswerViewer.do?requestId=2554434>. "MotoringFile Archive 75 Reasons to Buy a Fiat 500 over a MINI?" MotoringFile | MotoringFile | MINI News, Reviews and Opinion. MINI Cooper, Cooper S, Clubman, Countryman. Web. 23 Apr. 2011. <http://www.motoringfile.com/2011/04/06/75reasons-to-buy-a-fiat-500-over-a-mini/>. "Time Spent Watching TV Continues Growing - NYTimes.com." A Guide to the Media Industry - Media Decoder Blog - NYTimes.com. Web. 23 Apr. 2011. <http://mediadecoder.blogs.nytimes.com/2008/11/25/time-spent-watching-tvcontinues-growing/>.

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