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Fiat Grande Punto


A Marketing Plan

Anubhav Srivastava (76) Anuj Bahl (64) Sagar Arora (9) Rishabh Narang (66)

Marketing Management

Fiat Grande Punto Acknowledgement

On the outset we would like to express our sincere gratitude to Asst.Prof SANJIT ROY, Marketing Management, for giving us the opportunity to work on the project on Fiat Grande Punto We would also take this opportunity to thank the teaching assistant and the student coordinator for their guidance and support and all our friends for their valuable suggestions and support.

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Fiat Grande Punto Executive Summary


Fiats foray into India was marked by the Padmini in the 70s and the 80s. Not till 2001, did the company try to revamp its image in the country. In 2001, Fiat launched the Palio, whose celebrity endorser was Sachin Tendulkar. However, the Palio was not a successful car. Fiat was plagued by distribution and servicing problems. Also, it faced a brand management problem with people mostly associating the brand with the obsolete Padmini. In 2006, Fiat had a 50-50 joint venture with the Tatas. The collaboration is now Fiat India with 99 distribution centres in the country. Till last year, the market share of Fiat India in the Indian market was about 0.7%. Fiat Indias latest offering is the Grande Punto, a car belonging to the premium hatchback segment. It launched the car in June2009. The car has been launched in 5 variants, in both the petrol and diesel formats. The brand ambassador of the Grande Punto is Yuvraj Singh. With the Grande Punto, Fiats aiming at a market share of 11-12% by 2012 in India. In the short term, Fiats plan is to sell about 2000-2500 cars in a month. Our project analyses Fiats current situation and marketing plan, its comparison with its chief competitors and we have also proposed our own marketing plan for the Fiat Grande Punto.

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Fiat Grande Punto


Table of Contents
Executive Summary ................................................................................................................... 3 Introduction ............................................................................................................................... 5 Product Features ....................................................................................................................... 6 SWOT Analysis ........................................................................................................................... 9 Automotive Industry of India ................................................................................................. 13 Market Research ..................................................................................................................... 15 STP............................................................................................................................................ 19 Segmentation ............................................................................................................... 19 Targeting ...................................................................................................................... 22 Positioning ................................................................................................................... 22 Branding................................................................................................................................... 23 Distribution .............................................................................................................................. 24 Competitors ............................................................................................................................. 25 Honda Jazz.................................................................................................................... 25 Maruti Swift ................................................................................................................. 26 Promotion ................................................................................................................................ 27 Marketing Plan ........................................................................................................................ 31 Segmentation ............................................................................................................... 31 Targeting ...................................................................................................................... 31 Positioning ................................................................................................................... 32 Distribution .................................................................................................................. 32 Servicing and Customer Satisfaction ........................................................................... 32 Promotion & Advertisement........................................................................................ 33

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Fiat Grande Punto Introduction


A Quick Launch

The third generation Fiat supermini to bear the name Punto, codenamed Project 199, the Grande Punto was unveiled at the 2005 Frankfurt Motor Show and went on sale later that year. Styled by Giugiaro, the car is based on the Fiat/GM SCCS platform. Whilst the model shares some of its name with the previous Punto, a large number of its components are new, including a new chassis and body shell. Grande Punto and the Linea sedan were both introduced in India during the Delhi Auto Expo in January 2008. Then on 17th June 2009, Italian car manufacturer Fiat launched its small car Grande Punto, in both petrol and diesel variants, in the Indian market. The Grande Punto rolled out from the companys Ranjangaon plant in Maharashtra, India, in four variants with three engine options. The launch of Grande Punto came a week after Honda launched its small car Jazz in India. The car is retailed through over 100 Tata-Fiat dealers network across the country. Fiat India Automobiles is a 50-50 joint venture between Italy-based Fiat Spa and domestic Indian auto major, Tata Motors. Rajeev Kapoor, CEO, and Fiat India Automobiles (FIAL), said: "The launch of Grande Punto marks a new milestone for Fiat in India as we bring the quintessentially Italian designs to Indian shores." The all-new international bestseller comes to India in three engine options - the 1.4-litre FIRE Petrol and the 1.3-litre MultiJet diesel were expected options, but Fiat has also thrown in the surprise 1.2-litre petrol option to reap in the excise benefits. The car will be available in four varying trims - the Active, Dynamic, Emotion and fully-loaded Emotion PK. The Grande Punto is finally rolling and it should be Fiat India's mainstay for the next three to four years. While the Palio was conceived in the same mould as a car for emerging markets, the Grande Punto is a departure from this line of thinking because no longer do growing aware markets like India want watered down versions. Thus, the Grande Punto, which clearly exhibits the correct line of thought and action from Fiat India, could possibly become the next icon of Fiat.

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Fiat Grande Punto

Product Features
Fiat Grande Punto car appears with the choice of three engines: two of petrol and one diesel. The Fiat Grande Punto has a colourful look and the well designed sleek quality is the major feature of the car. It has relaxed and spacious seats and also a music system that can be worked by the control system festooned on the steering wheel. Fiat Grande Punto has been presented with active variants to be fitted with a 1.2L petrol engine, while the Dynamic and Emotion version have a 1.4L petrol engine. The car also features a 1.3L multi-jet diesel engine, which is presumed for its greater presentation and petroleum economy. Car Variants Fiat Grande Punto 1.4 Petrol Dynamic Fiat Grande Punto 1.3 JTD Diesel Dynamic Fiat Grande Punto 1.9 JTD Diesel Emotion Fiat Grande Punto 1.9 JTD Diesel Sport

Petrol

Model

Displacement

Power

Torque

0100 km/h

Top speed

1.2 8V Fire

1242 cc

65 PS (64 hp/48 kW) @5500 rpm

102 Nm (75 lbft) @3000 rpm

14.5

155 km/h (96 mph)

1.4 8V Fire

1368 cc

77 PS (76 hp/57 kW) @6000 rpm

115 Nm (85 lbft) @3000 rpm

13.2

165 km/h (103 mph)

1.4 16V StarJet

1368 cc

95 PS (94 hp/70 kW) @6000 rpm

125 Nm (92 lbft) @4500 rpm

11.4

178 km/h (111 mph)

1.4 16V TJet

1368 cc

120 PS (118 hp/88 kW) @5000 rpm

206 Nm (152 lbft) @1750 rpm

8.9

195 km/h (121 mph)

1.4 16V TJet

1368 cc

155 PS (153 hp/114 kW) @5500 rpm

230 Nm (170 lbft) @3000 rpm

8.2

208 km/h (129 mph)

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Fiat Grande Punto

1.4 16V TJet

1368 cc

180 PS (178 hp/132 kW) @5750 rpm

272 Nm (201 lbft) @2750 rpm

7.5

215 km/h (134 mph)

Diesel

Model

Displacement

Power

Torque

0100 km/h

Top speed

1.3 16V MultiJet

1248 cc

75 PS (74 hp/55 kW) @4000 rpm

190 Nm (140 lbft) @1750 rpm

13.6

165 km/h (103 mph)

1.3 16V MultiJet

1248 cc

90 PS (89 hp/66 kW) @4000 rpm

200 Nm (148 lbft) @1750 rpm

11.9

175 km/h (109 mph)

1.6 16V MultiJet

1598 cc

120 PS (118 hp/88 kW) @ 3750 rpm

320 Nm (236 lbft) @ 1750 rpm

9.6

190 km/h (118 mph)

1.9 8V MultiJet

1910 cc

120 PS (118 hp/88 kW) @4000 rpm

280 Nm (207 lbft) @2000 rpm

10.0

190 km/h (118 mph)

1.9 8V MultiJet

1910 cc

130 PS (128 hp/96 kW) @4000 rpm

280 Nm (207 lbft) @2000 rpm

9.5

200 km/h (124 mph)

Other Specifications Tyre Size: 205/45 R17 Seating Capacity: 5 Brakes: Front Disk, Rear Drum Suspension: Independent McPherson Struts, Coil Springs Steering: Power Kerb Weight: 1170.00 kgs Trip Meter: 2 Gears: 5 Manual

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Fiat Grande Punto


Dimensions Width: 1687 mm Length: 4030 mm Height: 1490 mm Additional Features Equipped with ABS and electronic brake-force distribution (EBD) Safety features like brake pedals that will break on impact, pretension on front seatbelts, load limiters and fastened sensor Generous space and greater visibility

Price Range Petrol: 3,99,000 5,61,000 Diesel: 4.85,000 6,11,000 Total: 3,99,000 6,11,000
Fiat Grande Punto

Variants 1.2 Petrol (Active) 1.4 Petrol (Dynamic)

All prices ex-showroom, Delhi Rs.3,99,000/Rs.4,66,000/-

1.4 Petrol (Emotion)

Rs.5,06,000/-

1.4 Petrol (Emotion PK)

Rs.5,61,000/-

1.3 Diesel (Active) 1.3 Diesel (Dynamic)

Rs.4,85,000/Rs.5,16,000/-

1.3 Diesel (Emotion)

Rs.5,56,000/-

1.3 Diesel (Emotion PK)

Rs.6,11,000/-

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Fiat Grande Punto SWOT analysis


Strength, Weakness, Opportunity, Threat
Strengths Looks and features: Car with all the latest design and looks European designs Best in class ride and handling Solid body build and good boot space New technological enhancements steering mounted audio control systems connectivity with mobile devices(Bluetooth) my car settings and programmable service interval Excellence in preventive security

Safety:

Fiat Grande Punto is a premium B-segment category car that is highly successful in Europe and given the Euro NCAP five-star rating for passenger safety. So we can say its reliable to
drive on Indian roads.

Pricing: The Fiat Grande Punto has an aggressive pricing plan vis--vis its competitors. Whereas cars of same category like Skoda, Fabia and Jazz are priced at nearly 7 Lakhs, the Grande Punto is priced at 4-6 Lakhs, which is a huge difference to attract price-centric consumers. Competitive price makes it fantastic value-for-money. Drivability and Sustainability: As the car accelerates, the ride quality truly tells about the drive quality of fiat. On the highway, the Punto can simply smother the worst of roads without breaking into the smallest sweat. You feel confident and stop slowing down for rough patches which no other hatch can match. It has a strong chassis engineering which makes it extremely well suited to the Indian roads. In a survey about automobile car in Europe it was rated better than its competitors like Jazz and Swift in drivability.

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Fiat Grande Punto


Weaknesses Mileage: Fiat Grande Punto has below par mileage due to its weight (1170 kg). The Punto gives a mileage of only about 8-9 kmpl as compared to its competitors which have over 11 kmpl. Quality & Interiors: The quality falls short, as compared to Skoda and Honda, with inconsistent fit and finish and the main concern is the lack of quality control. It also has a cramped rear set due to the spacious boot-space provided. Promotions/Advertisement: Fiat is far behind, in comparison to its competitors, in terms of advertisement. Nearly seventy percent of the sample had either never seen or rarely seen a fiat advertisement. Distribution channels: Fiat lacks the scale to compete with large players in the markets in which it operates. Many of its competitors such as General Motors, Ford Motor and Daimler are larger in size Brand image: Fiat has a brand image of being a product for elderly people since many decades. It carries the image set by the Fiat Padmini way back in 60s and 70s and is seen as a non-youth car. Service: Even after the partnership with Tata, Fiat only has a network of 99 dealers whereas Maruti boasts over 1000 dealer network. Opportunities Growing automobile Industry: The automobile industry has been showing a good growth rate (10%) over the past few years. Although the growth is mainly due to the 2-wheeler segments, the 4-wheeler has also shown a considerable growth rate. Threats Competitive pressure: Fiat has launched Grande Punto at a time when there are already highly reputed competitors with equally good product (Suzuki Swift, Hyundai i20, Skoda Fabia etc.).

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Fiat Grande Punto


Economic Situation: Amidst the current economic scenario, consumers would be apprehensive about buying new cars. Due to economic turmoil, fluctuation in market (Steel & raw material costs), rise in fuel prices (Diesel & petrol) consumers are very particular about value for money. Coming two years would be very challenging for Fiat as competitors like Nisan, Ford are launching new cars in same segment and there is no news yet from Fiat about the launch of new cars. Threat of Substitutes The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases. The four-wheeler segment faces high threat of substitutes. With the higher growth of the two-wheeler segment, that segment has been able to attract the majority of automobile consumers, especially youth, which form the major chunk of the target segment. Also, the advancement of public transport (like metros and new tech buses) can hamper the growth rate of the sector Switching Cost: Negligible cost while switching to public transport and just the initial investment while switching to a two-wheeler, which can recovered in a very short time given the maintenance charges (mileage etc) of the two-wheeler. Buyer Inclination: The youth group are more inclined to shift to two-wheeler whereas the higher age-group consumers and people with a higher income range are less likely to shift to two-wheeler or public transport. Price Performance Trade-offs: Both the two-wheelers and public transport give much higher performance in monetary terms with extremely low initial investment and much lower maintenance costs. Threat of New Entrants It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. New technological advances and patents will also affect the industry. Access to Inputs: With relatively easy access to inputs, entry of new firms wont be hard if capital is available. Capital Requirements: High initial capital is needed for the setup of a new firm in this sector. With no major Govt. policies or helps, it is not too easy to arrange the capital and start up a new firm. Economies of Scale: The automobile industry gives good returns. It has a reasonably quick breakeven period and the main constraint is the competition.

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Fiat Grande Punto


Bargaining Power of Buyers The power of buyers is the impact that customers have on a producing industry. With relatively lower number of firms in this sector, the bargaining power of buyers is relatively low. Fiat has built its positioning as low priced car with extra features which have not been seen before. Bargaining Leverage: Even if there isnt much scope for bargaining the firms cant charge high prices on the products owing to the competition. Buyer Volume: The ratio of buyers-to-sellers is quite high and there is scope for improvement in market share especially for Fiat (1.68%) in India. Brand Identity: Although Fiat has a strong hold internationally, it fails to create a strong brand identity in India. Even after the tie up with Tata for servicing, it hasnt been able to create a brand image. Bargaining Power of Suppliers It is also described as market of inputs. Suppliers of raw materials, components, labour, and services (such as expertise) to the firm can be a source of power over the firm. In the automobile industry, the bargaining power of suppliers is very low. Supplier Concentration: The firms usually set up industries near the suppliers and there isnt much of bargaining power from the supplier side in the automobile industry. Differentiation of Inputs: There is relatively very little differentiation of inputs as the car makers generally stress more on design and features rather than the basic model/structure inputs. Presence of Substitute Inputs: Since there is little differentiation, there isnt any notable presence of substitute inputs. Threat of Forward Integration: Suppliers usually specialize in their own field and there is not any major threat of any forward integration. Although in some cases, the car manufacturers have backward integration (as in the case of Tata). Internal Rivalry For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc. Industry Concentration: Although there is relatively lower number of firms competing, there is extremely high competition with some major players like Maruti, Honda etc. Fiat also has a very low market share (1.68%). Costs/Value: Fiat has aggressive pricing plan to compete in the sector but there is an image of it not living up to the high value.

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Fiat Grande Punto Automotive Industry of India


The Indian auto industry has the potential to emerge as one of the largest in the world. It is currently 11th largest passenger car in the world and is expected to be the seventh largest market by 2016. The chart below shows the historical and projected sales of passenger cars in India. We can see that after the decrease in 2008, due to the global recession the sales are again forecasted to rise. The Indian car industry is expected to have sales of 1.8 Million by the end of 2011.

Sales (mn)
2 1.5 1.38 1 0.5 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 1.14 1.80 1.55 1.32 1.46 1.60

The Indian auto industry is highly competitive with a number of global and Indian auto companies present. All major global players in passenger vehicles segment have a presence in India. There are more than a dozen manufacturers in the industry. Most of the leading global players have a presence in India in the form of joint ventures or subsidiaries. The attached table and chart shows the market share of the leading car manufactures in India.

Manufacturers Maruti Suzuki Ltd Hyundai Motor India Ltd Tata Motors Ltd Honda Siel Cars India Ltd General Motors India Pvt Ltd Ford India Pvt Ltd Mahindra Renault Others Total Section j

2006/07 5,49,317 1,94,870 1,79,007 59,452 16,986 39,820 n/a 37,130 10,76,582

2007/08 6,18,168 2,16,307 1,67,058 59,373 45,265 30,962 25,891 66,398 12,03,531

% chg y-o-y 13 11 -7 0 166 -22 n/a 79 12

Market Share% 51.36 17.97 13.88 4.93 3.76 2.57 2.15 5.53 100 Page 13

Fiat Grande Punto

2.57 3.76 4.93

2.15 5.53
Maruti Suzuki Ltd Hyundai Motor India Ltd Tata Motors Ltd Honda Siel Cars India Ltd

13.88

51.36

General Motors India Pvt Ltd Ford India Pvt Ltd

17.97

Mahindra Renault Others

Market Share of Car Manufactures in India

Growth drivers for the Indian automotive industry

Government Policies

- Overall economic growth - Lower taxes and duties

- Contemporary products - Shorter life cycle

New Product Launches

Indian Automotive Industry

Increasing consumer demand

Cost Competiveness - Export Competiveness - Reduced cost to customer - Manufacturing Hub

- Growth in Income level - Easier Financing

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Fiat Grande Punto

TARGETING
Referring to the market survey results carried out, we are targeting the following: Age group: 20-29 years Tier-I cities population for the next two years Income level classification: Upper Middle Class and Higher Income Level groups

Out of the total population of India, about 29.2% is urban. We are targeting Fiat Grande Punto to the population living in Tier-I cities, namely, Delhi, Mumbai, Chennai, Kolkata, Ahmadabad, Hyderabad, Pune etc. Out of this entire population, the higher income group (upper middle class and higher income individuals) are the targets. These are the people who will have the want directed towards a car priced the way Punto is priced (4-6 Lakhs). Out of the above population a narrower target is according to age demographics. The people of the age group 20-29 years are being targeted. These are the fun loving people who are not much concerned about the utility of a vehicle but are most interested in the style and power of a vehicle. These are the people who would be students, or, in the initial stages of their careers and who would feel the need for a car of this kind but not have the buying power to go for something priced higher. After analyzing the potential market and consumer preferences, a potential market of about 120000 cars exist in tier-I cities itself. After establishing the Grande Punto in this segment, it can be extended to tier II cities as well, which would open up a larger market. Hence, Fiats target of gaining 11-12% market share by 2012 in the premium hatchback segment of cars can be met.

POSITIONING
Punto is positioned as an aggressive, sporty car. In doing this it is trying to cater to the needs of the youngsters who do not have the buying power to opt for an expensive car, but who have the need for something stylish. Punto with its 75 Bhp-90 Bhp variants provides an opportunity for good pickup and powerful performance but does not have the required fuel efficiency to be passed on as a family car. The population above 30 years in India usually has started a family and therefore feel the need of a car which provides greater utility, comfort and economy features, than one which is stylish and sporty.

The USP of the Punto is that it has style, grace and at the same time has a very youthful and sporty appeal. It provides all of these features at extremely competitive prices. Hence, youngsters, purchasing a car for the first time, as well as parents buying a car for their
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Fiat Grande Punto


children would prefer the Grande Punto. It provides the right features, the right looks and style at the right price for this segment of the population.

Branding
Sometimes, to move forward you need to take a step backwards. That is just what Fiat has done recently, by returning to the companys original mission, namely to build cars with attractive styling and exciting engines, cars that are accessible and improve the quality of everyday life. Fiat has decided to create a new brand logo: strong yet essential, it perfectly sums up the brands new philosophy and historic continuity, through a modern reinterpretation of the famous shield that graced Fiat cars between 1931 and 1968.

1999

2007

The logo changes are part of rebuilding process by which Fiat is trying to revive its brand positioning. Somehow, Fiat has never been able to replicate its international success in India. Mileage: a problem of perception has also existed when it comes to specific products. According to analysts, there is also a perception among consumers that the Fiat cars are non-economical when it comes to mileage. Palio was seen as petrol-guzzler even if Fiat claimed an above average mileage (like 11-12 kmpl). Servicing: Fiat has long faced the problem of its servicing. It has an extremely low image profile when it comes to servicing and has been stereotyped as a bad service good product company. Even after the alliance with Tata, it hasnt done much to improve its image although it was witnessed an increase in sales. Awareness: Fiat has a pathetic awareness with only (28.6%) of the population coming across regular advertisements of Fiat. Fiat might also have erred on the branding strategy for both the Palio and Sienna with regard the Sachin Tendulkar association. With Sachin also endorsing two-wheeler, it diluted the brand appeal of fiat.

Fiat now contends that it is placing a lot of emphasis on training and after sales services. The company is also focusing on organisational efficiencies and is now following a make to order production process. This, in effect, implies that Fiat is producing cars as per orders placed by the dealer network across the country. Fiat feels that this was an extremely effective strategy that was flexible and ensured operational efficiencies.

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Fiat Grande Punto


After successive failures since its re-entry into the market in the early 1990s, Fiat is finally addressing the weakest link in its strategy: customer confidence in the company and its vehicles. The marketing and after-sales service tie-up with Tata Motors is a key part of its comeback plans.

Distribution
Distribution is one of most key aspects for any car manufactures as it defines how much visibility the brand would have and effects on the after sales services. In early 50s to 80s, Fiat was the only well-known car brand in India other than Ambassador. While Ambassador was for the officialdom and families, Fiat was the car of the yuppie, forward-looking folks. The main reason for such strong brand image was the strong dealership and distribution system. However due to intense competition in 1980, Fiat lost its dominance over the Indian automobile industry. In the 1990s, the company tried to introduce new models such as Palio, Sienna, Uno and Adventure; however they could not compete with Maruti due to weak distribution network in the major cities. This challenge has been haunting them ever since and even today, Fiat is trying to recoup from the falter. But it all further strengthens the importance of distribution. A car is only as good as its dealer network. Fiat has struggled to get its distribution, product, services and communication strategy right. The issues with Fiat have always been the same. The company has faced a vicious cycle of not being able to support either the product or the dealer adequately. They had a problem of being uncommunicative and there were several issues with product and availability and as a result very few dealers were interested in tying up with them. Dealers say that Fiat has always had problems with its products. For instance, when the Palio was launched in September 2001, Fiat was selling around 4,500 cars a month compared to selling barely 900 now. Even dealer support was inadequate. That's because the Palio was launched with eight to 10 variants, with each variant in eight colours. The larger issue for Fiat was that its products were launched with a bang but then sales tapered off till they were phased out. So what is Fiat doing now? It is expanding its dealer network. Fiat has been venturing into new methods to increase dealership network including the deal with Tata in 2006, by which Tata Motors dealerships in select metro cities, including Delhi, Mumbai, Chennai and Kolkata, will sell Fiat cars. Later on, the dealership agreement extended to non metro cities. Three years hence, Fiat has a dealership network of 99, which is still way beyond the main competitor of Maruti. Fiat Dealers = 99
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Fiat Grande Punto


Honda Dealers = 107 Maruti Dealers = 779 Recently, Tata Motors entered into an understanding with Bank of India for financing Fiat cars that are sold through the Tata-Fiat dealer network. As per the agreement, customers can avail loans/finances of special interest rate ranges (9.75-10.25%).

Competition
1. Honda Jazz
Jazz was launched in June, 2009 in the premium hatchback segment by the Honda in India. The Jazz consists of newly developed four-cylinder 1.2-liter i-VTEC engine, featuring Programmed Fuel Injection that delivers maximum output of 90 PS (66 kW) @ 6,200 rpm and Torque of 110 Nm (11.2 kg-m) @ 4800 rpm while giving impressive fuel economy of 16.1 km/l, as per ARAI test data. Hondas design principle Man Maximum Machine Minimum has defined the underlying approach in the design concept of the Honda Jazz that calls for maximizing the space available for passengers and minimizing the space occupied by mechanical components. Jazz offers futuristic, sporty, and aerodynamic exteriors, combined with new-age interiors, along with the best in class safety technology.

Market Share of Honda FY2007-08: 5% of total market share Pricing and Variants:

Variants Jazz Jazz Mode Jazz Active

Prices( Rs Lakhs) 7.43 7.73 7.78

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Fiat Grande Punto


Targeting: Youth in age group of 20-30 Positioning: The Jazz will cater to a unique group of people who want the latest and most stylish models with the best of technology, safety and practicality in their car. Distribution Network: 105 authorised dealership facilities, across the country Latest Sales: It sold 1075 units in the month of August, 2009 USP: Brand name of Honda, futuristic design, great mileage and best in class technology

2. Maruti Swift
Swift was launched by MUL in the year 2005. Maruti Swift is a 16 valve 4-cylinder, 1300 cc engine generating power of solid 87bhp @ 6000 rpm. It is equipped with various safety features and well advanced equipments.

Market Share of Maruti Suzuki FY 2007-08: 51% of total market share Pricing and Variants:

Variants MARUTI SWIFT LXI MARUTI SWIFT VXI MARUTI SWIFT VXI (with ABS) MARUTI SWIFT Glam MARUTI SWIFT LDI MARUTI SWIFT VDI MARUTI SWIFT VDI (with ABS) MARUTI SWIFT ZXI

Prices( Rs Lakhs) 4.22 4.53 4.73 4.74 4.83 5.18 5.37 5.38

Targeting: Mid age adults in the age group of 25-39 years

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Fiat Grande Punto


Positioning: Swift is positioned around its style, modern looks and young attitude in addition to its fuel efficiency and performance. Distribution Network: 779 authorised dealership facilities, across the country Latest Sales: Maruti Swift has crossed the 300,000 unit mark in cumulative domestic sales, within just three years and nine months of its launch. It is now the fastest selling model in its segment USP: Brand name of Maruti, amazing service, fuel efficiency and performance.

Promotion
The automobile manufacturer Fiat has been promoting its latest entry into the hatch back segment with Grande Punto way back since January 2008 although the final launch of the car did not happen until June 2009. The promotion strategies of Punto include: Viral marketing: fiat has been aggressively advertising its Punto through various blogs like Carwale.com Zimbio.com Maxalley BlogSpot

This policy of the company has ensured that the name of its product has been known quite extensively in the markets. It has served the purpose of making known the product, its expected features, expected price. It had also generated quite a bit of a suspense and craze in the minds of prospective customers. With its positioning statement mentioning it as an aggressive sporty hatchback the youngsters have been busy asking questions and posting comments about the Punto on these blogs. The blogs mention the features and the comparisons of the car prices with primary competitor i.e. Maruti Suzuki swift. Swift has a reputation and market presence to reckon with in the Indian markets and any comparison with it, gave added spotlight to Punto. On some of these blogs the questions raised by the audience have been addressed by the executives of FIAT, or the advertisement agency Maxus that is handling the FIAT account. This has given credibility to the claims on the blogs and has also shown

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Fiat Grande Punto


interest on the part of manufacturer thereby showing loyalty towards the customer and his requirements. FIAT has had to face tough times owing to its deteriorating brand image. The people associate FIAT with its premier Padmini and 118 NE models till date. This is another area that FIAT has needed to work on. The entire brand image of the company has been made to change. The logo of FIAT has been made square, for instance. The branding strategy of the company has been discussed separately. Another major activity of FIAT has been showcasing the PUNTO in various automobile exhibitions across the country throughout the two years leading up to the launch. The various exhibitions include: AUTO EXPO 2008 Motor pulse 2008

These are the major auto exhibitions that FIAT has used to showcase its PUNTO alongside LINEA during 2008 and 2009 up to June 2009. Showcasing FIAT in these exhibitions has introduced the car in the public minds and has generated interest in the public. The basic purpose of the automobile manufacturer has thus been served. The superior features of the automobile have been showcased and displayed. The consumers were allowed to take a test-drive. This allowed them to not only experience the PUNTO but also gave valuable feedback to FIAT using which improvements could be made in the product. FIAT has been priced aggressively compared to its primary competitor SWIFT and this fact has been heavily propagated in all the exhibitions countrywide.

Recommendations:
FIAT needs to continue with its work with the viral marketing. In fact now it needs to encourage the various customers come forward and express their experience of using FIAT PUNTO. Once the word of the existing customers gets round more of the people would be influenced by the claims made by the company. More number of people would find the specifications genuine and dependable. Other than this the prospective customers would find a pedestal to interact and ask their queries that they may have about the product or the brand or the company as a whole. FIAT needs to introduce discounts and competitions whereby it can advertise the product. These events like game shows on national holidays or Sundays could be events where people can hang out with families and have a good time. The experience they have at these events will add to the FIAT experience that people associate with the company and go a long way in its brand building.
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Fiat Grande Punto Marketing Plan


Launch
Fiat launched the Grande Punto, a car belonging to the premium hatchback segment in 17th June, 2009. Before this Fiat foray into this segment was marked by fiat Palio and fiat Palio Stile, both of which were average performers in the market. Fiats market share before launch of Fiat Punto was 0.7%. After the launch of Punto and linea, fiat sales are expected to become higher. Its short term marketing objective is to sell 2000-2500 cars in a month and eventually will become a major player in this segment with 11-12 % of market segment by 2011. It faces competition majorly from Maruti Suzuki Swift, Honda Jazz, Hyundai I20 and Maruti Ritz. Earlier we have mentioned and described in detail the present the present marketing plan of fiat. Following is the summary of what we suggest Fiat should do to obtain its marketing objectives. Product: Fiat Grande Punto Variants: 5 (1200cc 1400cc) 3 petrol and 2 diesel variants Price: 3.99-6.11 Lac

Segmentation
The marketing should be segmented on the basis of income level of the population as well as the age group of the population. Based on income: The potential market for the grande Punto consists of the population which belongs to the upper middle class and higher income level. This is so they can afford the grande Punto and have sufficient buying power. Through our survey we saw that about 49 % of people prefer to buy a car in the 3-6 Lac price range Based on Age group: It is necessary to segment the market based on age group because different cars hold different significance and value between people of diverse age group. We propose to segment the market into children and teenagers (0-20 years) young adults (20-29), pre middle age (30-39 years) and middle aged people (above 40).

Targeting
Our Target customer base includes young adults (20-29 years) belonging to Tier-1 cities in the upper middle class and high income group. The target group is based on the both the age factor as well as the income segment combining which a better target segment is reached which will have a much better conversion rate as against only the income group or age group alone.
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Fiat Grande Punto

Positioning
The Grande Punto has to be positioned as a sporty, stylish vehicle for young adults who may be students or working professionals buying their first car. It has to be positioned as a value for money buy since it is very competitively priced and also provides features (Bluetooth connectivity, steering mounted controls etc.) which are not yet available in other premium hatchback competitors. Basically the points of difference to be stressed upon are the looks, pricing features and 5 star safety ratings.

Distribution
Fiat in 2006 formed collaboration with Tatas in the field of distribution and servicing. This was to offset the disadvantage that Fiat has earlier faced with Palio and Palio stile, even though both of them were technologically impressive and generated good customer satisfaction level among them who bought them, yet their reach was limited due to Fiats poor distribution channels. Currently Fiat India has 99 distributions dealerships, however as compared to Maruti Suzuki which has more than 700 dealerships centres. This number is still dismally low. Hence its imperative for the Fiat-Tata collaboration to open such more distribution dealerships and target Tier -2 cities also to tap that unexplored market.

After Sales Services & Customer Satisfaction


Fiat biggest weakness lies in the poor after-sales services that it provides to the customers. Even those in Tier-1 Cities find the service centres too few and inaccessible. Fiat needs to improve in this aspect drastically and most importantly change customers perception about its service. To this end fiat needs to ensure the following: Increase the number of service centres. Train Fiat service personnel to be more responsive to customers complaints.

As seen from our survey 77% of the respondents opted for doorstep servicing. This was just an illustration to indicate that people want their car servicing process to be as simple as possible.

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