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FALL 2012 / AD CAMPAIGN PLANS BOOK

Be More.

500L CAMPAIGN STRATEGY

EIGHTY SIX
Felicia Berger / Kaitlin Lamontagne / Peiwei Liu / Chelsea Chen

ae - 86

// FaLL 2012

Be More.
TABLE OF CONtENtS

1. EXEcUtIVE SUMMARY 2. SItUAtION ANALYSIS


FIAT Competitors consumers collaborators climate swot

3 4

3. POSItIONING StAtEMENt
target segment Differentiation

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4. SALES OBJEctIVES 5. BUDGEt 6. COMMUNIcAtION OBJEctIVES 7. IMC StRAtEGY 8. IMC BUDGEt BREAKDOWN 9. IMC COMpONENt StRAtEGY
Advertising (print/Television) promotions events new media

15 16 17 18 19 19

AE - 86

public relations out of home

Felicia Berger Kaitlin Lamontagne Peiwei Liu Chelsea Chen

10. CREAtIVE PROpOSAL 12. AppENDIcES AND REFERENcES

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CAMPAIGN STRATEGY

FIAT 500L

EXecUtiVe sUmmary

EXEcUtIVE SUMMARY

New York. Boston. Chicago. Los Angeles. What do these cities all have in common? Theyre all major metropolises in the United States that suffer from overcrowded streets and parking lots. Places where its easier to find a penny from 1954 than a parking spot on Monday morning. Theyre all locations where people give up the right to personal space in favor of squeezing like sardines in a metro or transit just to make it to work on time. Or go to the store. Or visit family and friends. They are all cities where sacrifices are being made in the name of convenience. Not anymore. The Fiat 500L will revolutionize the way city dwellers do life by providing a compact car with so much room, theyll think its bigger on the inside. And the fact that it holds all the elegance of Italy is icing on the cake. Consumers are looking for a vehicle that isnt limited by compact spaces or little passenger seating. They want a car that will get them from point A to point B in class and they want the price within their budget. The Fiat 500L has the high quality and compact size of a Fiat vehicle with double the room as before. And its for everyone -- moms, workers, businessmen and students. AE86 has created a multi-media campaign that will assist Fiat in overtaking the compact car market. This report provides an analysis of Fiats current situation, the position of competitors, details on current consumers, an analysis of collaborators, a P.E.S.T. and S.W.O.T. analysis, a positioning statement, sales objectives, communications objectives and a fully comprehensive IMC strategy that includes scheduling, budgeting and creative samples. Small parking spots? No problem. Introducing the Fiat 500L.

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sitUatiON aNaLysis: Fiat

SItUAtION ANALYSIS
Introduction A situation analysis gives an overview of the current market the Fiat 500L is about to enter and the state of Fiat itself. This is important to look at to ensure that all bases for the campaign are in line with Fiats mission and spot in the market. Category and Description Fiat 500L is the new 5 passenger multi-purpose vehicle that will be launching in 2013. The L stands for Large; it is the new addition to the 500 range that Fiat brought to the US market, which will expand the brands style and efficiency in the growing B-segment. 3 Mission Statement To build cars with attractive styling and exciting engines, cars that are accessible and improve the quality of everyday life. 1 Fiat 500L Specs Engine: Two petrol engines include the 101 HP 1.4 liter in-line four-cylinder engine from the standard 500 and a 0.9-litre TwinAir version, as well as one turbodiesel 1.3 MultiJet II engine. Transmission: Manual (5-speed)/Automatic (6-speed) Size package: 163.0 inches long, 70.1 inches wide, and 65.4 inches tall. Doors: 4 Seats: 5 Driveline: Front Wheel Drive Horse Power: N/A Torque: N/A Fuel Economy City/Hwy: N/A MSRP: Estimated at 16,000 in Europe, $20,000 in USA. 13 entire generation and country, as well as their technological and stylistic innovations. Strong yet essential, it perfectly sums up the Fiats mission and goal. 2 Similar Products and Strategies The marketing campaign for the Fiat 500 was a multi-media campaign that combined television, outdoor, print, digital and experiential initiatives and focused in the brands key markets together with complementary national advertising efforts. They created the new tag line, Simply More, which set the tone for campaign. Drive-in television spots started out with a vintage film of the Fiat 500, and then it turned into modern day driving, emphasizing the trend where old things become new and cool again. For smart phone users, Fiat launched the Fiat Source touch-based application. The new app digitally showcases the new 2012 Fiat 500 vehicle line and is free to the public to download from iTunes. Fiat has an active social media presence on Facebook, Twitter and YouTube. This campaign captures the perfect combination of wit and charm and is designed to engage current and potential customers, as well as increase brand and product awareness in key markets, said Laura Soave, Head of FIAT Brand North America. 11 Sales and Market Shares Released early 2011, the Fiat 500 sales are low compared to competitors. As advertising increased, Fiat experienced 5 months of increased sales for 2012. Since the return of the Fiat brand to the U.S. market, Chryslers (owned by Fiat) market share has risen to over 11%. Though there is little information on the Fiat 500 specifically, it does claim .05% of the market in California. 5

The Fiat Mission Fiat is an Italian automobile manufacturer founded in 1899, a modern symbol for Italian design. Its mission is to combine technology and sentiment in one and build a role in the daily life of an
Table 1.1 Fiat 500 Sales and Marketshare

FIAT 500 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012

Today 3,710 4,004 4,003 3,849 3,712 3,227 1,991

Last Year 3,038 1,803 1,759 882 500 0 0

Vol. Change 22% 122% 128% 335% 642% New New

Current total 24,416 20,706 16,702 12,699 8,850 5,138 1,911

Last Year 7,982 4,944 3,141 1,382 500 0 0

Vol. Change 206% 319% 432% 819% 1670% New New

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FIAT 500L

SitUatiON aNaLysis: cOmpetitOrs

cOMpEtItION ANALYSIS
Promotional History/Philosophy and Expenditures Beginning in the United States around the turn of the 20th century, Fiat was known for small, compact cars that were advertised through mostly sexist billboards and magazine advertisements. Fiat returned to the U.S. market in January of 2011 after a 20+ year absence, ready and eager to break back into the market. They wanted the Fiat 500 models to provide an entirely new generation of drivers with the best of Italian motoring: craftsmanship, style and safety, combined with fun-to-drive small-car efficiency. 7 With the goal of targeting young, female adults, Fiat partnered with Jennifer Lopez to produce a Superbowl commercial that showed little of the actual car. Critics attacked the spot and Fiat switched advertising agencies. They dropped the idea of targeting young females with the Fiat 500 and tried appealing to young men with the Fiat 500 Abarth. To accomplish this, another spot starring Charlie Sheen appeared during the 2012 Superbowl (giving Fiat over 50% SOV for television that month). Fiat is one of the top 100 spenders in the U.S. for advertising. The company spent $873 million in 2010 and $371.3 million in the first half of 2011. For all of 2011, Fiat-Chrysler combined spent $1.8 billion.12 Fiat Branding Strategy Proudly displayed on the Fiat website is the phrase Sometimes, to move forward you need to take a step backwards. This phrase accurately portrays Fiats determination to return back to its root, not only by returning to the U.S., but by reverting back to the companys original mission to build cars with attractive styling and exciting engines, cars that are accessible and improve the quality of everyday life. 1 While Fiat is plagued with a negative brand image, it has started taking steps to improve it by shifting its focus. Fiat pledges to strive toward a continuous, rapid overhaul of products, continue technological research, improve quality of designs and build new, constructive relationships with customers. The first mark of this transition was demonstrated by releasing a new, modern logo for the brand. 5 For the Fiat 500L, the companys goal is to brand the car as a vehicle that is able to contain all of lifes greatest emotions all together: children, friends, journeys. Every time great emotions become great experiences. 1 Introduction The goal of a competitive analysis is to test the state of the marketplace for the given product. It is important to know who the competition is before the new product launches in order to find a way to break into the market and gain market share and consumers. This section will look at the main competitors of the Fiat 500L, the size and trends in the category, how much competitors are spending, and end with a look at collaborators and advertising. Competitors Mini Cooper Countryman The Countryman is the closest competitor to the 500L with respect to the parent brand. Mini started with a small subcompact model and introduced larger versions to appeal to more consumers. Fiat is using the same strategy as it is reintroducing the brand to the US. The Countryman is similar in size, the largest difference being 3.5 shorter in height. The Countryman offers a large amount of cargo space, decent gas mileage, and a price close to the estimated price for the 500L.7 Nissan Juke The Juke is a compact crossover shaped with more dynamism than the boxes that are the Countryman and 500L. It is close in size to the 500L with all dimensions within 3 of each other. The Juke offers less cargo volume than the Countryman but still a decent 36 cubic feet. The price range is also similar to the 500L and Countryman with prices starting at $20,000, and slightly better fuel economy than the Countryman. Nissan pitches the Juke at a younger crowd, mostly the Generation Y. 3 Kia Soul The Soul is the competitor closest in size to the 500L with the only difference being the Soul is 1 shorter in height. However, the Soul is significantly cheaper than the 500L with pricing starting at $14,400. Of the competitors, the Soul offers the best cargo volume and fuel economy. It is a breakthrough vehicle for Kia with respect to design and quality. Kia also pitches the Soul to Generation Y using pop culture facets such as video games and the latest hot music artists.4 Scion xB The xB is the oldest model of the competitors, debuting as a 2005 model. It is 4 longer than the 500L but is the same height and width. The xB offers the least amount of cargo volume among the competitors. The xB begins pricing at $16,300 making it slightly cheaper than the 500L estimated pricing but offers less-than-stellar fuel economy. The xB was a popular hit in the customization crowd but has tapered off in popularity in recent years.1

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Competitors Sales and Market Share2 Brand Mini Nissan Kia Toyota (Scion) Sales YTD 43,632 774,577 386,809 817,612 Sales 2011 37,636 681,115 331,796 585, 193 % Change +15.9 +13.7 +16.6 +39.7 Market Share YTD 0.4 8.0 4.0 8.4 Market Share 2011 0.4 8.0 4.0 6.9

Table 1.2 Sales and Marketshare. This table reects numbers up to September 4, 2012. (wsj.com)

Sales Trends of the Category9 Brand Mini Kia Scion Nissan Model Cooper Countryman Soul xB Juke Sales June 2012 1,819 10,199 1,869 3,101 Sales June 2011 1,426 11,314 828 2.031

Table 1.3 Sales Trends, June 2011 vs. June 2012. Automotive News Data Center, July 9, 2012

The B-segment, sub-compact cars, is a fast-growing segment within the auto industry. As gas prices continue to rise consumers are searching for better fuel economy among vehicles. This specific category of B-segment vehicles, the sub-compact crossovers, offer sufficient seating capacity and more cargo volume but holds excellent fuel economy and price. Predictions see a significant increase in sales of these smaller cars to become a trend that continues in future years with sales increasing 12.1% in 2012 and an expected increase of 7.2% in 2013.8 Marketing Strategies of the Competing Brands Mini Cooper Countryman Getaway Minis strategy for the Countryman is to present it as versatile. The vehicle is meant for adventures that may involve alternate terrain and up to 5 passengers. Television spots display this versatility along with the vehicles handling, enjoyability, comfortable and spacy back seat, and usability of its four doors and center rail feature. The target market in all advertising seems to be fun-seeking people in their late 20s or early 30s.9 Nissan Juke Built to Thrill The Juke is also pitched toward established 30 year olds but who live in urban areas. Flaunted features are the navigation options, bluetooth capabilities, handling, and the turbo engine option. The advertising depicts how your status or cool-factor is increased when seen driving a Juke. 11 Kia Soul A new way to roll Kia wants consumers to admire the Soul for its unique and funky appearance. The target market is Generation Y and this is evident in Kias use of LMFAO music, a hit pop group, in a key television spot for the Soul. More hit music is used in other spots. Along with the funky appearance, Kia chose a funky approach to branding their advertising. They use personified hamsters to represent

the consumers of the vehicle. Kia presents bluetooth capability, accessories, price, and fuel economy as desirable features about the vehicle. Kia also involves consumers by holding a contest for users to make a music video with provided audio to win a Kia Soul. 12 Scion xB What moves you In the early years of the xB, Scions main strategy was to exhibit the incredible customization capabilities of the vehicle, many of which could be done before the car left the dealer lot. All tv spots for the xB displayed this customizability. There are also thousands of communities and clubs for Scion owners. Recent advertising for the xB is more conservative presenting fuel economy and technological capabilities. However, some print advertising describes its uniqueness, and hideousness, as a reason to want to drive one. The target market for the xB and other Scions is young, first time buyers who are on a budget but want something to make their own. 13 Projected qualities and Personalities Mini Countryman The Mini Countryman is a fairly new vehicle in the United States. The brand image for this Mini Countryman is that they cope with BMW and want consumers to feel that when they are driving the Mini Countryman, but with the BMW brand image. In addition, the Mini Countryman is famous for cutting-edge, sporty, stylish aspects.9 Nissan Juke The Nissan Juke debuted in 2010 in the United States, by October 10, 2010 Nissan received more than 30,000 orders.10 The brand image for the Nissan Juke is simple and clear. Ride high, stand out and move quickly. The body design for the Juke looks futuristic and its easy to differentiate from other cars.11

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Kia Soul The Kia Soul continues to use personified hamsters and music to promote to consumers. The Souls brand image is all about creativity, optimism and positivity. Kia brands the Soul as a lifestyle for their target consumers who can differentiate their own image.12 Scion xB Scion xB is all about the BOX, the brand image for the xB is all about the individual who enjoys customizing and accessorizing the box the way they want.13 Marketing Communication Expenditures The Mini Countryman Marketing plan is estimated to be $45 million with traditional and social media, including radio, outdoor and live events at different locations.14 Each year Nissan spends about $260 million advertising in the United States and a large amount is used by the Nissan Juke. Nissan will primarily promote the Juke with social media more than any other media.15 Kia spends about $300 million for advertising annually. As the Kia Soul gains popularity, Kia will spend more money on the Soul exclusively this year.16 Marketing Communication activities The Mini Countryman, Nissan Juke and Kia Soul use traditional and social media to promote their car. All three of them use outdoor, mobile, and transit advertising. In addition, all three have sweepstakes and contest in a specific location throughout the United States. Sales promotions are decided by individual dealerships, so consumers need to ask their local dealerships for more details. 13 Competitors Activities Summarized Brand Kia Marketing Spending $300 million

Creative Approaches Mini Countryman approaches with a gateway to adventures idea. One of the TV ads shows the Mini Countryman duplicate to many more that are driving in different locations and directions.17 Nissan Juke developed an exclusive mobile app for consumers who own the Juke, and supports Android 2.2 or above. The app does not need to be downloaded from the app store, instead it runs live from the Nissan official website. The app will allow users to trigger motion sensors that detect movement of the car, activate rising car acceleration sounds, and record motion values on the dynamic interface in Adobe Flash Player. Users can view their level of adrenaline and JUKE energy on the apps accelerometer, and they can post their scores on Facebook for their friends to view.18 Kia Soul is driven by hit music and hamsters. Since the debut of the Kia Soul, hamsters and music are the main source for promotion. All of the Kia Soul television commercials feature hamsters dancing with the latest hit song. For example, one of the Souls TV commercials show three hamsters dancing in a shooting video game setting with a dark world background and robots shooting at each other and features the hit song Party Rock Anthem by LMFAO.19 Scion xB creative approach is a website want2Bsqure.com that contains six words symbolizing the six sides of the box. Each side has unique visual and box culture about the xB, and people are able discover another side of Scion. Moreover, each site has multiplayer games and other discoverable items, the site encourages users to play, poke, click and learn more about the new xB. Visitors will get reward points when they discover new items and they can use those points in exchange for t-shirts, hats, TVs etc. The website is to get people involved with the Scion xB and by getting involved they will be rewarded as a result.20

Qualities/Personalities unique, funky, young, good value for the price, customizable, interactive, creative, it is a lifestyle. urban, loaded with features, quick, fuel efficient, self-affirmative, stand-out, futuristic versatile, off-road capabilities, enjoyable, roomy, unique, sporty, high-class, stylish. customizable, community oriented, unique, young, personal.

Nissan Mini Scion


Table 1.4

$260 million $45 million N/A

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FIAT 500L

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CONSUMER INFORMAtION
Introduction The consumer analysis provides insight to the mind of the target audience, including where they are, what they like, what they do, how they perceive us as compared to our competitors, their purchase and usage frequency and volume, along with their loyalty to the Fiat brand and the average response model for the purchasing of a car. Demographics Age: 18-29 Gender: Male Education: AA or higher Income: $45,000 and $75,000 Psychographics Fiat 500L consumers believe in themselves: value creativity and luxury fashionable self-confident family is most important to them and understands them the most are passionate: love what they do for a living travel, busy life, coffee breaks fun-loving simple goals, great effort to reach them start small and build toward bigger things are unique: different than others inspirational, energetic, self-confident outspoken live life to the fullest, includes family in the fun Lifestyle Fiat is a lifestyle, more than just an Italian automobile company. It represents how far imagination can actually go and turn into fruition. Their consumers lifestyle varies, but we make an assumption after our observation. Lifestage: apartment, home-owner, city-life growing family, family social gatherings social meetings with friends hang out with the kids on the weekends Lifestyle: trendy, fashionable shop in malls and online 3 credit cards: gas, frequent flyer card, spending card spend 2/3 of their income and do not save much but spends on the family Perceptions of Competitors Luxury

Practical

Distinctive

Economy
Diagram 3.1 This perceptual map demonstrates where the Fiat brand and its competition within our category lie on a scale comparing the cost of the vehicle and its originality. The more practical a car is the less unique it is compared to other vehicles. Fiat is positioned in the slightly luxurious and more distinctive quadrant.

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Living your emotions

Social Integration

Social Afrmation

Facts: 18-24 year olds are buying less cars, down 17% since 2005 driving is less important to our consumer 46% of our consumer would rather have internet and electronics than a car 21-34 year olds account for only 27% of all cars sold in the US in 2011, down from 35% in 19852 In addition, much of the demographic is composed of students in urban locations who are used to walking, taking taxis, or using forms of public transportation such as the bus or metro. To them, it is normal to not own a car or to borrow the car of a family member. The longer they live without their own car, the more comfortable they are without it3.

Controlling your emotions


Diagram 3.2 This perceptual map displays the Fiat brand and its competitors on a scale that compares how emotional and fun the vehicle is compared to how the vehicle portrays its owner in the eye of the public. The owner or driver is more interesting if they stand out from everyone else.

Response Model Unlike older generations, the current target audience has very little exposure to Fiat. Due to Fiats 27 year absence in America, consumers are more familiar with competing brands. If they have had an experience with Fiat, it is usually from their parents or grandparents, who complain about the reliability of the car and customer service. When they come into contact with one of the newer models, they are surprised by the space and efficiency of the vehicles (Facebook Survey).The response model for buying a car is the innovation adoption model: awareness, interest, evaluation, trial and adoption. Purchase and Usage Frequency and Volume

Consumer Loyalty The root of customer loyalty in the automotive industry lies in the purchasing experience. The customer must find engagement in both the pre- and post-purchase periods. Automakers must focus on relevancy and emotions rather than logic to keep that brand at the heart of consumers.4 Examples of social media engagements and communications: most brands have facebook pages brands in our category host YouTube channels with information and how-to videos some brands offer interactive programs: Kia Souls music video challenge, Nissan Jukes app on Facebook Mini continues communication with buyers post-purchase as a way to improve their product5

Awareness
Promotion Advertising Events New Media Public Relations

Interest
Discussion Social Media Interaction Attraction

Evaluation
Research Brand Website Peer Discussion Customer Reviews

Trial

Adoption

Test Drive

Purchase

Diagram 3.3 Response model for the purchase of an automobile.

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FIAT 500L

SitUatiON ANaLysis: COLLaBOratOr aNaLysis

Other factors that influence brand loyalty: history of the vehicle or brand: Fiat left the US auto market due to poor brand perception because the quality of their vehicles had slid downhill brands develop programs to keep consumers involved in the brand loyalty is based on the key idea that gaining a consumers loyalty is based on their experience with the vehicle, both pre- and post-purchase6. Ways brands in our category develop loyalty: Scion xB has clubs that allow people to flaunt the customization of their vehicle. Kia overhauled their quality and began creating vehicles that people could keep for years Nissan launched a consumer appreciation program titled You+ Nissan Care ensuring customers a quick and quality repair or service.

Partnerships Fiat is not only a brand but a corporate umbrella. The group oversees multiple Italian brands: Fiat, Lancia, Alfa Romeo, Maserati, and Ferrari. Furthermore, Fiat and Chrysler Group recently formed a partnership to assist Chrysler and its dying brands in surviving the economic downturn. Fiat currently owns a majority stake, 58.5%, of Chrysler Group.2 This allowed Fiat access to significant distribution channels and Chrysler benefits from the sharing of platforms and drivetrain technologies including engines, transmissions, and fuel-saving technology.3
Partnership Fiat Group Chrysler Group Special Editions Development

Brands

Fiat Lancia Alfa Romeo Maserati Ferrari plantform sharing, technology sharing, Fiat is the parent brand of others

Chrysler Dodge RAM SR-t Jeep Mopar

Gucci/ Jennifer Lopez Abarth/ Charlie Sheen special interest groups, media partnerships

Tata Chery Mazda Ford GM Suzuki platform sharing (one feible per brand)

COLLABORAtOR ANALYSIS
Introduction This section discusses companies that collaborate with Fiat to produce a quality vehicle. Supply Chain There are currently 2,300 companies that supply Fiat parts worldwide10, such as Royal Dutch Shell. The top 60 suppliers produce 57% of all purchased vehicles9. In October 2011, Fiat created Group Purchasing, a system that oversees worldwide purchasing to ensure that all vehicles are created with the same standards and pieces.9 This ensures global continuity for the Fiat brand. While there are many suppliers, Fiat does have ownership and partnerships with companies throughout the entire process. Fiat owns Teksid SpA, which is the largest iron foundry group in the world. Their iron is used to produce automotive components. 10 Production is overseen by Comau Systems. This company became a pioneer in the use of industrial robots for the assembly of motor vehicles and has provided Fiat with state of the art assembly factories that are located worldwide. 10 Distributors As part of marriage between Fiat and Chrysler Group, Fiat vehicles are distributed in the US through Chrysler distribution channels. The Fiat 500, the only model currently on sale in the US, is also assembled in Chrysler plants in the US and Mexico.1

Benets

plantform sharing. Disturb sharing, Fiat assembly US vs mountains

Table 4.1 Fiat partnerships and benets of each3

Service Providers Below are the 4 Fiat Dealers near Orange County area8 Champion FIAT 9715 Firestone Blvd Downey, CA 90241-5509 Orange Coast FIAT 2524 Harbor Blvd Costa Mesa, CA 92626-6144 Sierra FIAT of Duarte 1125 Central Ave Duarte, CA 91010-2425 FIAT of Ontario 1201 Auto Center Dr Ontario, CA 91761-2209

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Ad Agencies and Sales Promotion Fiats first ad agency was Impatto located in Southside, Michigan. Impatto was the agency that helped Fiat run the first national advertising campaign for the 500 models in the United States in 2011. Fiat does not have a timetable of when they will have a new ad agency. Also, one of the commercials featuring Jennifer Lopez was created by an unidentified Chrysler agency.5 In addition, another commercial featuring Charlie Sheen, called Fiat Enlisted Ultimate Bad Boy, was a spot developed by two Chrysler agencies, Doner and Richards group.6

Job Market & Interest Rates The US job market is improving. More people are going back to work and are now willing to spend money on purchasing or leasing a new vehicle. Furthermore, loan interest rates are at a record low. Some automakers, including Fiat, are even offering 0% financing on certain vehicles.2 Fuel Economy Standards Fuel economy standards have been mandated. Under the Corporate Average Fuel Economy standards automakers must average 54.5mpg in their vehicles by the year 2025. Some larger vehicles may qualify for more lenient standards.3 Distribution Fiat is doing well and looking to expand into untapped markets. Currently, Fiat Brand Chief for North America, Tim Kuniskis, states that Fiat is looking to add around 30 more dealerships nationwide in markets yet explored by Fiat.4 Social Trends Protecting the Environment With the New Corporate Average Fuel Economy Standards we talked about earlier, more people will protect the environment by switching to a smaller car. Research shown that the slice of the new vehicle pie taken by small cars has grown by 50 percent over the last five years.9 Appearance is Key Looks is the appearance of a car that your eyes get interested in. It could be the shape of its body, the rear lights, the front grill, steering wheel, the rev counter or the fuel filler cap.10 Just like Fiat, it is a fun and attractive car to drive. The uniqueness that you cannot get from another car. Fiat will catch your attention when it passes by. Crossovers rather than minivans/SUVs 3 main demographics that drives this growth. Boomers, now often empty nesters and entering retirement, are trading down in size. Meanwhile, half of first-time buyers under age 30 are choosing small cars. Another demographic shift favoring small cars is the urbanization of America, we saw more people living in cities than in suburban/rural areas.9 Technological Industry Trends The advancement of technology affects industries globally. The auto industry is seeing improvements in safety, fuel efficiency, and user interfaces. Hybrid powertrains are increasingly popular with sales up as high as 55% in one month.16 This is threatening to Fiat

P.E.S.T. ANALYSIS
Introduction An overlook into the political, legal, economic, social and technological aspects affecting Fiat and the automotive industry as a whole. Political/Legal Environment Taxes The government receives a large portion of their income from vehicle taxes. While the numbers vary all around the country, the current range in California is between 8.25%-10.2%.8 This is a concern for automobile makers because the taxes are often in political headlines as politicians argue to raise taxes. 7 NHTSA Regulations The National Highway Traffic Safety Administration regulates the automotive industry, providing and enforcing guidelines for safety. The NHTSA is also in charge of rating vehicles each year in terms of safety. The 2013 Fiat 500 recently made the governments list of cars that received 5 stars out of 5 for safety. 6 Recalls Fiat recently recalled all Fiat 500 vehicles built between October 24, 2011 and October 26, 2011. These vehicles were assembled with contaminated brake fluids and, as a result, degraded sealing components within the braking system. The vehicles were recalled to avoid the potential loss of braking abilities and could raise the risk of a crash occurring. 5 Economic Conditions Recession Recovery In September 2012, overall US auto sales increased 13%. Fiat automotive sales increased 51% while competitor Scions sales increased 76%.1 This is a positive trend and will hopefully ride out the recession.

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sitUatiON ANaLysis: S.W.O.T.

because at this time they do not offer a hybrid, electric, or diesel powertrain. In addition, vehicles are beginning to feature user interfaces much like smartphones. Many automakers have developed their own interface, such as MyFord Touch and Mercedes-Benz mbrace2. These systems allow users to monitor driving habits, remotely control your vehicle from a smartphone, use voice command, search the web, download useful apps, etc. They also include real-time traffic and social media connectivity.18 Lastly, safety technology in vehicles are becoming standard not only due to demand but due to NHTSA regulations. This is making vehicles more expensive and harder to acquire by a younger target market. Affordability is a large factor in purchasing decisions made by our target market: 18-29 year old males so if Fiat is required to add safety features that add a few thousand dollars onto the price of the vehicle, our target consumer may be discouraged from purchasing the car.19 Product Detail Fuel Efficient Fuel efficiency has become huge in the auto market due to the high price of gasoline and consumers buying vehicles that are fuel efficient and help them save money. Fiats newly designed engine, a MultiAir 1.4-liter, can deliver 31 mpg city and 40 mpg highway with their custom powertrain optimization and the five-speed manual transmission (automatic uses more gasoline).11 Hands-Free Connection Fiat offers a Blue&Me hands-free connection that will let drivers play music, make calls, switch radio channels and switch songs by voice control. Drivers will never get distracted by their entertainment while driving.12 Body and Cages Although the Fiat 500L models body and cages are B-segment, Fiats computer-designed steel safety cage takes the energy away from driver and passengers by absorbing it in defined front and rear crumple zones. The high-performance Antilock Brake System and Electronic Stability Control collaborate to help the driver control and stabilize the vehicle when stability is at risk.13

ParkSense Fiat Rear Park Assist System will warn the driver if there is a small or large object behind them. The warning is an audible and gives the driver a heads-up.14 Driving Mode Fiat offers different driving experiences through unique powertrain modes. When the driver deploys the sport mode, the driver quickly will notice the elevated steering response, engine, and shifting response for a feeling of quickness, stability and control.15

S.W.O.T.
Strengths Diversified business portfolio Fiats diversified business portfolio, including the ownership of automobiles, components and production systems, and publishing and services business allows Fiat to shield itself from fluctuations in certain product categories and allows it to benefit from opportunities available in various segments. 3 Extensive brand portfolio/Alliance with Chrysler Fiat owns a large line of automobiles, including Fiat, Abarth, Alfa, Romeo, Lancia, Ferrari, Maserati, Fiat Professional, Chrysler, Dodge, Ram, SRT, Mopar and Jeep. 2 Fiats partnership with Chrysler allows it to integrate into markets and locations it may not have been able to enter otherwise. 2 Strong research and development capabilities Thanks to 77 different research and development centers, Fiat is able to continually invest in research and technological innovations, continually striving on improving safety systems, energy efficiency, emissions reduction, workplace safety and logistics. 3 Target market not aware of previous poor reputation No one in the millennial generations knows Fiat or their reputation, therefore removing a huge stigma from its name. This allows Fiat to be able to enter the market and profit. 1

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sitUatiON ANaLysis: S.W.O.T.

S.W.O.t. OVERVIEW
STRENGTHS
- Diversified business portfolio - Extensive brand portfolio - Strong research and development capabilities - Target market not aware of previous poor reputation - Alliance with Chrysler - Integrative navigation system

WEAKNESSES
- product recalls - small fiat brand line that is inferior in size - low quantity in brand portfolio - previous brand image

OPPORTUNITIES
- Growing worldwide demand for automobiles - Increasing demand from consumers for diesel engines

THREATS
- increasing raw materials costs - Auto industry competing for target market with laptops and smartphones - intense competition

Integrative navigation system GPS maker TomTom and Fiat are partnering for new connected navigation system will be used in the Fiat 500L. It is rare that automakers are going with non-integrated systems such as the TomTom Go Live with their vehicles rather than integrating navigation into the car.12 Weaknesses Product Recalls Contaminated brake fluid warranted the first recall on Fiats only model available in the U.S. Although it was a small number of vehicles involved in the recall it may still influence negative perceptions.5 Small Fiat brand line that is inferior in size to those of competitors/Low quantity in brand portfolio Because Fiat is essentially new to the U.S. market they are very small in awareness and market share. Fiat also only offers one vehicle in their U.S. brand portfolio.2 Our product, the 500L, will be a necessary expansion to the Fiat line in order to appeal to more consumers.6 Previous brand image Fiat withdrew from the U.S. market because of quality issues and the inability to keep up with American regulations and consumer demands.7 Any negative perception of the quality of the brand

could carry over from 30 years ago and potentially influence consumers today. Opportunities Growing worldwide demand for automobiles MarketLine estimates that the automotive industry will grow consistently over the next three years, and is expected to record a volume of 146.9 million units in 2015, an increase of approximately 21.5% from 2012. This growth is primarily due to the higher disposable incomes and easier vehicle financing options available worldwide.10 Increasing demand from consumers for diesel engines Fiat 500L offers a MultiJet II engine. Multijet is the most quite, cost-effective and cleanest diesel engine. Its Eco turbo which modulates air flow at low rpm more efficiently, you can save up to 3% on fuel and up to 20% on nitrogen oxide emissions. Driving pleasure is also enhanced because of the 20% more torque on this MultiJet II engine.11 Threats Increasing raw materials prices Copper has been increased to 7,500 per ton at the end May 2012 when the price only 6,500 per ton back in October 2011. Also, the carbon steel sales price was 788 per ton during May 2012 compared to 778 per ton in December 2011. Due to increase of

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pOsitiONiNG statemeNt

price of raw materials, Fiat needs to increase the sales price of their car and if prices keep increasing, it will negatively impact Fiats expansion and its profit.9 Automobile industry competing for target market with laptops and smartphones Fiats target market is Generation Y and they are buying smartphone instead of automobiles for various reasons. First, Generation Y has a tight budget because of the slow recovering recession. Second, generation Y is cutting back their driving. They might prefer biking, public transportation, carpool, and car sharing service like Zip.8 Intense competition The auto industry is extremely competitive, especially in the United States. Many Fiat competitors are offering similar product quality, pricing, technology, safely and fuel economy. The accumulation of an over produced number of vehicles, competitive competition and the recent recession create a large threat to the Fiat brand and potential earnings. 13

Self-Assesment -These consumers see themselves as a unique individual, that they are different than others. They are inspirational, energetic and self-confident. They speak up and give help when they have a chance to. Lifestyle & Lifestages1 Target consumers usually live in metropolitan areas; younger consumers might live in an apartment across the street from school or work. Other consumers have a growing family and will usually own a house. They also enjoy going out for dinner with their friends, have some beer and just relax. During weekends, they like to stay home and watch movies with their kids. They spend money on outfits; they make sure they have the newest clothing style since Fiat owners are trendy and fashionable. They shop in the mall, online and at convenient stores while they get gas. They usually have 3 credit cards. Size: Number of Potential Purchasers and Justification2 Potential Buyers: 33,500 people Based on the MRI Plus Report we can infer that approximately 30% of the total male population in the United States are potential buyers. This is due to the average of 30% of the male population fitting any one demographic of our products consumer.8 Product Characteristics Product USP and other features The Fiat unique selling proposition is a trendy, B-segment vehicle that is made in Italy and is small but seems large.3 Other features include an in-car espresso maker, heated seats, Beats audio, USB input, and 7 air bags.4

POSItIONING StAtEMENt
Target Characteristics1 Demographics1 18-29 years old Males AA degree or higher $45,000 - $75,000 Located in major cities around the U.S. White, Non-Hispanic Psychographics1 Mindset-The Fiat 500L target consumers believe in themselves and value their creative and luxurious lifestyle. They are fashionable and self-confident. Family is most important to them. Passion- Fiat consumers are passionate about what they do. They might go on a road trip once in awhile, have a cup of coffee in the afternoon or live a busy life in their field. One thing they all have in common is that they are having fun in life and feel fantastic every day. Their goals are simple- they do what they love and put 100% effort into it to make sure theyre satisfied with the outcome.

Desired Brand Image and Justification Fiat represents trendy, cool and sexy. It also tells stories about urban adventures and family bond. Our consumers need to feel like their vehicle is more than just a car-its a means to an end that is desirable. Basic Creative Theme Were going for high-end in a little package. Brand heritage and aesthetics will be the basis for the creative theme of the IMC campaign.

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saLes OBJectiVes

SALES OBJEctIVES
Desired Sales Volume Units: 19,499 Dollars: $389,987,500 Market Share: 0.4% Rationale for Sales Objective Our desired sales goals are based upon the sales performance of our closest competitor, the Mini Cooper Countryman. We took the total sales for the first full year that the vehicle was on sale (2011) and found the percentage that those sales accounted for in the total amount of sales of the small car segment. We then multiplied that percentage against the projected total sales for 2013. That number is then multiplied by the estimated average price of the vehicle to retrieve the sales goal in monetary units. Our desired market share is calculated in the same manner using Minis market share in 2011. From the diagram 4.1, it is clear to see that Chrysler/Fiat plans on investing more into the compact car market, where the 500L resides. It is safe to assume then that they expect an increase in sales each year. IMC Budget and Justification In order to earn a part of the market share, it is common to spend the same percent of sales as percentage a company wishes to hold in the market. For this case, the projected sales amount is $389,987,500 and Fiat is looking to gain 0.4% of the small car market. By multiplying those numbers together, the amount Fiat should spend in their IMC budget is $155,995,000. Based on the launch of the Mini Cooper Countryman, a product similar to our own, we formulated that our budget would be $7, 019,775. This number is 1.8% of Fiat USAs total revenue for 2011, the same percentage Mini spent for the Countryman during the year of its launch. 2,318,047 16,683 0.7% 2,785,625 19,499 $389,987,500

Desired Sales Goal Calculations A Total Small Car Sales 2011

GoodCarBadCar.net7 GoodCarBadCar.net
5

B C D E F

Mini Cooper Countryman Sales 2011 % of Total Sales Accounted for by Mini Countryman Projected Small Car Sales for 2013 Projected Fiat 500L Sales 2013 (vehicle units) Projected Fiat 500L Sales 2013 (dollar units)

(Row B / Row A) x 100 [(Row A x 0.121) + A] x 0.072 +[ (Row A x 0.121) + A]8 Row C x Row D Row E x $20,000

Diagram 4.1

Fiat/Chryslers Five Year Sales Plan Vehicles based on Fiats will be engineered by Chrysler people to meet Chrysler needs. Product spending is to average $4.5 billion per year with $23 billion overall (Capex of $15 billion). 56% of sales made in 2014 are projected to be based on Fiats platforms. The engine mix is expected to be 14% diesel (up from 9% now), 38% four-cylinder, 37% six-cylinder, and 11% 8-cylinder (down from 18%). The large and full size market is expected to fall from 55% to 42% by 2014.9

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BUDGET

Fiat & Chrysler Group sales plans

Diagram 4.1

From the diagram 4.1, it is clear to see that Chrysler/Fiat plans on investing more into the compact car market, where the 500l resides. It is safe to assume then that they expect an increase in sales each year.

BUDGET
Full Advertising Budget: $7,019,775 Component Promotions Ad (print) Ad (television) Events New Media Public Relations Out of Home % of budget 7% 10% 40% 15% 10% 3% 15% $ amount $491, 284 $701,977 $2,807,910 $1,052,996 $701,977 $210,593 $1,052,996

Diagram 5.1 Budget Distribution in dollars and percentages

Diagram 5.2 Media Expenditure Percentages

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COMMUNICATION OBJECTIVES

Diagram 5.3 Budget distribution over months in 2013

COMMUNICATION OBJECTIVES
There are 33,400,000 potential consumers in the united states. 1) Awareness of these 33,400,000 potential consumers, Fiats goal will be to reach 70% of them, or 23,380,000. 2) Interest of the 23,380,000 would are aware of the brand, Fiat will aim to make 30% of them interested in the product, or 7,014,000. 3) evaluation of the 7,014,000, Fiats goal will be to have 15% of them reach the evaluation stage, or 1,052,100. 4) Trial of the 1,052,100, Fiats goal will be to have 9% of them try out the car, or 94,689. 5) Adoption If 20% of the 94,689 test out the car and decide to buy the 500l, Fiat will reach their goal of selling 20,000 units.

Potential Consumers 33,400,000

70%
Awareness/Reach 23,380,000

30%
Interest 7,014,000

15%
Evaluation 1,052,100

9%
Trial 94,689

20%
Purchase 19,499

Diagram 5.1 communication objectives ow chart

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imc strateGy

IMc StRAtEGY
Theme: Promoting the Italian Style Fiat owns Maserati, Alfa Romeo, Ferrari and a compilation of other Italian brands that people are familiar with. The exotic nature of the Italian car, such as the Ferrari and the other cars, is what were going to sell. Were going for high-end in a little package. IMC Elements: Promotions: Test Drive/Trial (7%= $491,284.25) To encourage consumers to actually sit behind the seat of our vehicle, we will offer a $10 gift card for test driving the Fiat 500L. Advertising: Awareness [Print /TV ] (see Appendix A) Print (10% = $701,977) Print advertisements featuring the Fiat 500L will appear in 5 specific periodical types: automotive, men, general editorial, sports, and news and editorial weeklies. The New York Times will run a weekly ad in the Sunday edition under the general information section. Since this is only to gain awareness, only 10% of the budget was allocated to print. Television (40% = $2,807,910) Commercial spots featuring the 500L will appear throughout professional sporting events on the weekends as well as special professional sporting events. Due to high costs of buying spots and creating television ads, 40% of the overall budget was designated to television. Other appearances will be during late night television on weekdays. According to the MRI report, these day parts and show types are the most watched among our target audience offering the best reach through television. Events: Awareness/Trial (15%=$1,052,996.25) To raise awareness for the Fiat 500L, Fiat will sponsor major sporting events such as the Super Bowl. New Media [Digital]: Awareness/Interest/Evaluations (10%=$701,977.50) Since our targets are internet heavy users, pop-up ads and banner ads will have a major effect in raising awareness for the Fiat 500L. Fiat 500L online ads will be placed on websites, such as YouTube, Yahoo or other news sites. Facebook is now a useful tool for consumer and brand interaction. In order to gain interest in the 500L, we will post news items on the Fiat Facebook page constantly, allowing our fans to get an inside look at the Fiat 500L. One of the benefits of online ads is that it is possible to change the creative and placements through time. Therefore, having evaluation on Fiats website is very helpful in terms of gaining feedback on our ads and seeing how people feel about the 500L. The large amount allocated to new media will cover costs to completely take over targeted websites with Fiat ads. Public Relations: Interest (3%=$210,593.25) To gain more positive images and awareness, we will hold different events in urban cities to promote the Fiat 500L. These events include test driving, raffles and contests. In addition, we will invite journalists to come to a test drive event and encourage them to write positive articles about the Fiat 500L before the official release date. Roughly 3% of the budget will be necessary to host this event. Out of Home: Awareness (15%=$1,052,996.25) We will use billboard, transit, and alternative advertising as our secondary medium to gain more awareness. Billboards offer a way to achieve wide exposure and, when combined with special lighting and other technology features, are quite effective at gaining attention. Transit advertising is an ideal way to attract our target market who lives and work in metropolitan areas. Also, it offers an repetitive message exposure. Lastly, alternative advertising attracts our target consumer in places they may not expect our advertisement would appear. To ensure that the ads remain long enough and are located everywhere, 15% of the budget was designated to transportation.

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IMC COMPONENT BREAKDOWN

IMC STRATEGY BREAKDOWN


For the campaign of the Fiat 500l, we have chosen to follow a pulsing schedule when scheduling the various media. pulsing is the idea schedule due to many factors. while cars are sold all year long, there are periods where consumers are more likely to purchase cars than others. In addition, competitors normally have great bargains that would hurt Fiat sales if Fiat promotions are not run at the same time. since the Fiat 500l is a new product, the word needs to spread, which means it needs to be constantly advertised throughout the entire year. pulsing strategy allows Fiat to continue advertising all year, but leaves room for higher periods of advertising than others, it is perfect for the campaign.

IMC Budget Breakdown

Advertising: Awareness [Print /TV ] (50% = $3,509,887) Print (10% = $701,977) specific titles are Car and Driver, road & Track, maxim, motor Trend, Consumer reports, rolling stone, espn, Time, sports Illustrated, mens health, people, and the sunday edition of the new York Times. Full page ads will run in Car and Driver monthly as well as other titles but some will run just one ad in peak advertising months. The new York Times will run a weekly ad in the sunday edition under the general information section during peak advertising periods. below is a snapshot of spending per vehicle in the print category.

Television (40% = 2,807,910) As a sponsor of super bowl XlvII (see events), the Fiat 500l will be featured in short spots during the pre-game report. The Fiat 500l will also appear in spots throughout the baseball playoffs and world series. Jimmy Kimmel live and saturday night live will be the primary late-night shows that will feature the 500l commercial spots.
- lATe nIghT TelevIsIon spoTs run AbouT $35,0004 so we plAn To spenD AbouT $120,000 on The proDuCTIon CosT oF A 90 seConD CommerCIAl ThAT CAn run mulTIple TImes AnD be CuT vArIous wAYs To mAXImIze eFFICIenCY oF The spoT. These spoTs wIll run In vArIous TImes ThroughouT The speCIFIeD lATe nIghT shows. - A speCIAl 2 mInuTe CommerCIAl wIll be proDuCeD For The superbowl sponsorshIp ThIs wIll be A $1.5 mIllIon eFForT. - spoTs wIll plAY DurIng The nbA plAYoFFs In lATe AprIl. - spoTs wIll plAY DurIng The FInAl gAmes oF The mlb seAson In sepTember AnD InTo oCTober wITh The worlD serIes.

Magazine Car and Driver maxim espn TIme

Frequency 12 12 12 52

Ad Specs full page color 1/2 page color 1/2 page color 1/2 page color

Cost per rating $0.10 $0.06 $0.06 $0.07

Unit Cost (approx) $17,250 $10,333 $9,350 $4,615

Total Cost (approx) $207,000 $124,000 $112,200 $240,000

Diagram 8.1 Print media spending

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imc cOmpONeNt BreaKDOwN

Number of Television Spots per MOnth

Month # of spots Cost per mo. Month # of spots Cost per mo.

Jan. 4 $330,342 July 2 $165,171

Feb. 4 $330,342 Aug. 2 $165,171

Mar. 2 $165,171 Sept. 4 $330,342

Apr. 4 $330,342 Oct. 4 $330,342

May 2 $165,171 Nov. 2 $165,171

June 2 $165,171 Dec. 2 $165,171

Diagram 8.2 Cost per unit = $82,585

Promotions: Test Drive/Trial (7%= $491,284.25) To encourage consumers to actually sit behind the seat of our vehicle, we will offer a $10 gift card for test driving the Fiat 500L. This incentive will entice our target audience, who might need an extra push to motivate them further to buy the car. The allocated portion of $491,284.25 should cover the expenses to provide enough gift cards to test drivers who have a copy of the promotion. Assuming we need 40,000 people to test drive x $10 per gift card, that leaves $91,284.25 to cover mailing expenses. The main pushes for test driving will occur in January, May, September and December, allowing us to hit every main car sales event during the year.

New Media [Digital]: Awareness/Interest/Evaluations (10%=$701,977.50) In terms of promoting the new Fiat 500L, we will focus on 3 methods of online advertising strategies to raise awareness and gain interest on the 500L. First is to utilize Search Engine Marketing (SEM). As a core element of an online marketing strategy, SEM is high on response, and because it is response-oriented, SEM is better at targeting audiences. Our budget will set at $18,000 for paid search each month on various search engines like Google, Yahoo and Bing. Second is Display/Banner on websites. We will place 300x250 (75,000 pixels) banner ad on target websites. It cost anywhere around $10-30 per thousand impressions.2 Our budget will set at $10,000 per month. Third is Media Buying, since it is the most expensive spot in online advertising, we will spend approximately $25,000 each month to have Fiat 500L advertised on high traffic websites such as YouTube, CNN, ESPN, etc. Social media are also utilized in engaging with our fans, gaining feedback and increasing sales. Fiat will have Facebook fanpage and Twitter account available for our fans, and we will also put ads and sponsor stories on Facebook during launching. The cost is based on numbers of impressions (CPM). Our budget will set at $5,000 during sales season.

Events: Awareness/Trial (15%=$1,052,996.25) To raise awareness for the Fiat 500L, Fiat will sponsor major sporting events. The target demographic tends to follow sports in one way or another, so by sponsoring sporting events, we should reach a decent amount of people. MRI data (appendix A) suggests the best sport to sponsor is football. Since this is a highly competitive American sport, 15% of the overall budget will be designated to becoming a sponsor of the Super Bowl. According to MRI+ data, there are over 100,000 men who regularly watch the Super Bowl, with around 35,000 of them falling within our target demographic.

Public Relations (3%=$210,593.25) Activity Where When What Cost New Year in a FIAT Los Angeles 1/1/2013 test drives, contests, raffles $60,000 Mother Knows Best NYC 5/12/2013 test drives, contests, raffles $60,000 Father Knows Best Las Vegas 6/16/2013 test drives $50,000 Journalist Reviews Los Angeles 11/28/2013 12/3/2013 presentations, test drives $40,000

Diagram 8.3 Snapshot of public relations events

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imc strateGy BreaKDOwN

New Year in a FIAT This promotion includes test drives, contests and raffles. Since, this is the first Fiat promotional event, our estimated budget is to be 60,000 dollars including rental equipment, location, services, etc. The reason Fiat will hold their first event during new years is because many families are going to shopping, dining out, vacations, etc. This is a good opportunity for Fiat to gain awareness and attract more people to know the brand. Mother Knows Best This promotion is same as the first one that includes test drives, contests and raffles. The estimated budget is also 60,000, despite that New York City is an expensive location. The budget will cover rental equipments, locations, services just like the first one. Since, its mothers day many fathers, daughters and sons will take their moms to shop and dine out. Mothers day is a good chance to advertise the 500L to the target market. Father Knows Best This event is focused on test drives only because Las Vegas is a place where people want to have fun and experience new things. The budget is estimated to be $50,000. That covers rentals, loca-

tions and equipment. Fathers day is a perfect time to promote the sport side of Fiat and let our target market experience a compact B-segment car can be as sporty as the BMW 128i sedan. Journalist Previews The fourth and fifth event will be held before the release date of Fiat 500L. In these two events we will invite journalists come to a Fiat dealership in Los Angeles to the Auto Show for a test drive and answer all the questions they may have. Also, we will give a presentation to them explaining the benefits, features, safety and current incentives of the Fiat 500L. The cost of this two events are around $40,000. Out of Home (15%=$1,052,996.25) Fiat will spend 9% ($631,780) of the budget allowed on Billboard and 3% ($210,593.25) on transit and 3% ($210,593.25) on alternative advertising. We will use the same amount of transit advertising each month according to the budget. Finally, we will use alternative advertising monthly that is allowed by the budget. Each gas pump ad is $25 to $75 per month8 and different mall ads are range from $75 to 10,000.9

Out of Home Schedule Type Billboard Location LA, Chicago, Miami, NYC, San Francisco, Houston, Dallas, Phoenix, Atlanta, Philadelphia, DC, Boston LA, Chicago, Miami, NYC, San Francisco, Houston, Dallas, Phoenix, Atlanta, Philadelphia, DC, Boston Las Vegas, NYC, LA Las Vegas, NYC, LA Detroit, LA, Chicago, NY, Atlanta LA, Chicago, Miami, NYC, San Francisco, Houston, Dallas, Phoenix, Atlanta, Philadelphia, DC, Boston Cost $25,000 - $30,000/mo. #, When 5-7 in Jan, Feb, May, June, Dec 2-3 in remaining months

Mall

$75-$10,000/mo.

5-7 in Jan, Feb, May, June, Dec 2-3 in remaining months

Taxi Bus Airport Gas Pump

$200 - $500/mo. $150 - $4,500/mo. $1,500 - $14,500/mo. $25 - $75/mo.

5-10/city monthly 5-10/city monthly 5-7 in Jan, Feb, May, June, Dec 2-3 in remaining months 25-50/city monthly

Diagram 8.4 Nearby suburbs of these major cities will also feature the out-of-home advertising specied.

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creatiVe prOpOsaL

cREAtIVE PROpOSAL
Overview The FIAT 500 is the second model to arrive in the United States from the Italian automaker. It is larger, more spacious, yet still small enough to be an efficient vehicle with both gas mileage and exterior dimension. It can fit in small spaces in the city or suburbia. It can haul everything a small family needs. It is cool enough to sponsor the 2013 Superbowl. It even comes with a built-in espresso machine. With that, this FIAT is The Italian Fit For All.

Be More.
TAGLINE: SLOGAN: Be MOre. THe ItaLiaN Fit FOr ALL

All that... AND an espresso machine.

An Italian Fit For All.


With 14.1 cubic feet of cargo space the entirely new FIAT 500L bests the Mini Cooper Countryman by almost two cubic feet. Visit www.fiatusa.com to customize your Italian coach.

FIAT. Be More.

Above: half page color print ad

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creatiVe prOpOsaL: priNt meDia

Its alright. You wont need that full space anyway.


The entirely new 2013 FIAT 500L. With the same Italian style and appeal as its little sibling, this all new coach provides more room while retaining a compact exterior. Perfect for hauling family, friends, pets, and cargo while allowing that one space left at the mall to be occupied...by you. FIAT 500L: Ample room starting at $20,999*
*MSRP excludes destination and delivery charges, tax, title and registration fees. Dealer sets actual price.

FIAT. Be More. An Italian Fit For All

Above: full page color print ad

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creatiVe prOpOsaL: teLeVisiON

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creatiVe prOpOsaL: spONsOrsHip

Events promotion - Superbowl XLVII sponsorship

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creatiVe prOpOsaL: prOmOtiONs

Test Drive Promotion

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creatiVe prOpOsaL: New meDia

Facebook promotion

Internet Banner Ad

Search Engine Marketing

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creatiVe prOpOsaL: OUt OF HOme

Bus Shelter Ad

The Italian Fit For All.

Transit Ad

Billboard Ad

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appeNDices & reFereNces

AppENDIcES & REFERENcES


1. http://www.atusa.com/en/about_us.html 2. http://www.at500usa.com/2011/08/inside-at-500-marketing-campaign.html 3. http://www.bloomberg.com/news/2012-03-15/u-s-auto-dealers-who-survived-debacle-see-record-sales.html 4. http://www.at500usa.com/search/label/Fiat%20Sales 5. http://www.npr.org/2012/01/04/144335485/ats-rst-year-back-in-the-u-s-marred-by-missteps 6. http://content.usatoday.com/communities/driveon/post/2012/05/chrysler-general-motors-ford-april-sales-up/1#.UFYPDaMtnYQ 7 . http://www.at.com/cgi-bin/pbrand.dll/FIAT_COM/fbrand/fbrand.jsp?BV_SessionID=@@@@1600458139.1347851577@@@@&BV_EngineID=ccciadf hklhgmkkcefecejgdfkhdfji.0&categoryOID=-1073762967 8. http://adage.com/article/news/francois-ghts-at-asco/230033/?page=2 9. http://adage.com/article/adages/at-500-spot-features-a-baby-playing-super-bowl-spot/233317/ 10. http://adage.com/article/adages/at-enlists-ultimate-bad-boy-ads-charlie-sheen/233045/ 11. http://www.rc.edu/wp-content/uploads/2011/07/2012-Ent.-Media_Adv-Mkt-Resrch-Handbook.pdf 12. http://adage.com/article/news/advertising-age-100-leading-national-advertisers/235573/ 13. http://www.conceptcarz.com/z21130/Fiat-500L.aspx

Situation Analysis

1. http://www.automobilemag.com/reviews/editors_notebook/1105_2011_scion_xb/ 2. http://online.wsj.com/mdc/public/page/2_3022-autosales.html#autosalesE 3. http://www.consumerreports.org/cro/cars/new-cars/cr-recommended/best-in-cargo-capacity-fuel-economy-1205-fuel-economy-cargo-haul/index.htm 4. http://editorial.autos.msn.com/listarticle.aspx?cp-documentid=1109127 5. http://www.autoblog.com/2012/03/06/2012-at-500l-geneva-2012/ 6. http://www.caranddriver.com/news/2014-at-500l-news 7 . http://www.miniusa.com/#/learn/FACTS_FEATURES_SPECS/Top_Features-m 8. Standard & Poors Industry Surveys, Autos and Auto Parts. June 21, 2012 9. Automotive News, Crain Communications Inc., July 9, 2012.

Competition Analysis

1. http://www.theatlanticcities.com/technology/2012/08/young-people-arent-buying-cars-because-theyre-buying-smart-phones-instead/2873/ 2. http://money.cnn.com/2012/09/17/news/economy/young-buying-cars/index.html 3. http://www.theatlantic.com/business/archive/2012/03/why-dont-young-americans-buy-cars/255001/ 4. http://aftermarketerclub.com/blog/2010/11/the-top-three-customer-loyalty-trends-for-2011/ 5. http://www.forbes.com/sites/scottdavis/2011/10/31/mini-cooper-amazon-and-mcdonalds-are-customers-lovin-it/ 6. http://econsultancy.com/us/press-releases/5560-nissan-launches-you-nissan-care-its-new-customer-commitment

Consumer Analysis

1. http://www.motorauthority.com/news/1035799_chrysler-handling-distribution-of-at-500-in-u-s 2. http://in.reuters.com/article/2012/09/26/at-chrysler-idINL5E8KQDEV20120926 3. http://www.caranddriver.com/news/at-and-chrysler-announce-strategic-alliance-car-news 4. http://www.iol.co.za/motoring/cars/at/mazda-set-to-expand-at-partnership-1.1304783 5. http://www.adweek.com/news/advertising-branding/at-na-splits-impatto-135136 6. http://adage.com/article/adages/at-enlists-ultimate-bad-boy-ads-charlie-sheen/233045/> 7 . http://www.at.com/cgi-bin/pbrand.dll/FIAT_COM/service/service.jsp?BV_SessionID=@@@@0282566851.1349033305@@@@&BV_Engin eID=cccfadfhlkdkmgdcefecejgdfkhdfji.0&com.broadvision.session.new=Yes&Failed_Reason=Session+not+found&Failed_Page=%2fFIAT_ COM%2fservice%2fservice.jsp 8. http://www.atusa.com/hostc/fad/ndDealers.do?zipCode=&dealerCode=&city=&state=&dealerName= 9. http://www.atspa.com/en-US/sustainability/social_responsibility/concessionari/overview/Pages/default.aspx 10. http://en.wikipedia.org/wiki/Fiat#Partnership_with_Mazda

Collaborator Analysis

1. http://search.autonews.com/v/64163268/sept-winners-losers-10-3-12.htm?q=september+winners 2. http://www.theledger.com/article/20121004/NEWS/121009703?p=2 3. http://www.autonews.com/article/20120903/OEM01/309039979/1424 4. http://www.autonews.com/apps/pbcs.dll/article?AID=/20120709/RETAIL07/307099982/1306 5. http://www.cars.com/at/500/2012/recalls/ 6. http://www.nhtsa.gov/About+NHTSA/Press+Releases/2012/NHTSA+Announces+Model+Year+2013+Vehicles+to+be+Rated+Under+Government +5-Star+Safety+Ratings+Program 7 . http://www.sacbee.com/2011/06/15/3701396/california-democrats-ready-to.html 8. http://www.ehow.com/about_6310175_california-auto-sales-tax-law.html 9. http://www.automobilemag.com/features/news/1004_current_trends_in_small_cars/viewall.html

P.E.S.T. Analysis

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appeNDices & reFereNces

10. http://www.thejakartaglobe.com/blogs/appearance-power-or-fuel-efciency-things-to-consider-before-buying-a-car/528621 11. http://www.atusa.com/en/2013/500 12.http://www.atusa.com/en/2013/500/ 13.http://www.atusa.com/en/2013/500/ 14.http://www.atusa.com/en/2013/500/lounge/ 15.http://www.atusa.com/en/2013/500/ 16. http://www.autoweek.com/article/20120420/CARNEWS/120429970 17 . http://www.autonews.com/apps/pbcs.dll/article?AID=/20121008/RETAIL07/310089991/how-tech-pitches-boost-service-plans 18. http://www.mbusa.com/mercedes/mbrace 19. http://www.edmunds.com/car-reviews/top-10/top-10-high-tech-car-safety-technologies.html

1. Situation Analysis. AE-86. Comm 451B. 17 September 2012. 10 October 2012. 2. Company Spotlight: Fiat. Marketwatch: Automotive 12.8 (2012): 7-15. Business Source Premier. Web. 8 Oct. 2012. 3. Fiat S.P .A SWOT Analysis. Fiat Spa SWOT Analysis (2012): 1-11. Business Source Premier. Web. 8 Oct. 2012. 4. http://www.caradvice.com.au/61295/alfa-romeo-mito-gains-new-multijet-ii-diesel-in-uk-europe/ 5. http://news.consumerreports.org/cars/2011/11/recall-2012-at-500-and-dodge-journey-for-bad-brake-uids.html 6. http://news.consumerreports.org/cars/2012/02/sneak-peek-larger-ve-door-2014-at-500l.html 7 . http://www.edmunds.com/at/ 8. Weissmann, Jordan. Young People Arent Buying Cars Because Theyre Buying Smart Phones Instead. The Atlantic Cities. The Atlantic Media Company, 8 Aug. 2012. Web. 15 Oct. 2012. 9. http://www.theatlanticcities.com/technology/2012/08/young-people-arent-buying-cars-because-theyre-buying-smart-phones-instead/2873/ 10. Fiat S.P .A SWOT Analysis. Fiat Spa SWOT Analysis (2012): P .11. Business Source Premier. Web. 14 Oct. 2012. 11. Fiat S.P .A SWOT Analysis. Fiat Spa SWOT Analysis (2012): P .9. Business Source Premier. Web. 14 Oct. 2012. 12. Fiat Air Technologies. Web. 14 Oct. 2012. <http://www.airtechnologies.at.com/default.aspx> 13. http://www.slashgear.com/tomtom-provides-connected-navigation-system-for-at-500l-05237222/ 14. Fiat S.P .A SWOT Analysis. Fiat Spa SWOT Analysis (2012): P .9. Business Source Premier. Web. 14 Oct. 2012.

S.W.O.T. Analysis

1. Consumer Analysis 2. http://ureporter.mriplusonline.com/selectdemo.asp 3.http://www.thecarconnection.com/news/1077769_2013-at-500l-brews-controversy-with-in-car-espresso-maker 4. http://www.atusa.com/en/lineup/ 5. http://www.economia.uniroma2.it/public/dsi/le/essays/DSI_Pattuglia.pdf 6. http://timothyblotz.com/2012/03/20/ats-branding-machine-what-are-you-looking-at/ 7 . http://www.thecarconnection.com/news/1066355_2012-at-500c-commercial-starring-jennifer-lopez-explained 8.

Positioning Statement

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appeNDices & reFereNces

1. http://usnews.rankingsandreviews.com/cars-trucks/Fiat_500/ 2. http://www.at500usa.com/ 3. http://www.goodcarbadcar.net/2011/01/scion-xb-sales-gures.html 4. http://www.goodcarbadcar.net/2011/01/kia-soul-sales-gures.html 5. http://www.goodcarbadcar.net/2011/01/mini-countryman-sales-gures.html 6. http://www.goodcarbadcar.net/2011/01/nissan-juke-sales-gures.html 7 . http://www.goodcarbadcar.net/2012/01/us-car-sales-december-2011-year-end.html 8. Competition Analysis 9. http://www.allpar.com/corporate/chrysler-group/ve-year-plan.htm

Sales Objective

Appendix A: MRI Report on Print Media and Television for Target Market

IMC Strategy

A) MRI Database: People watching the Super Bowl

IMC Component Strategies

1. http://www.bluelinemedia.com/billboard-advertising 2.http://www.promisemedia.com/online-advertising-strategies/online-rate-card-tips-and-guidelines 3. http://www.timemediakit.com/us/rates-specs/national.html 4. http://articles.latimes.com/2010/jan/25/business/la--ct-latenight25-2010jan25 5. http://www.maximmediakit.com/print/specs/ 6. http://mediakit.espn.go.com/index.aspx?id=173 7 . http://www.bluelinemedia.com/transit-advertising 8. http://www.bluelinemedia.com/gas-station-advertising 9.http://www.bluelinemedia.com/mall-advertising

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