New Product Launch Marketing Plan
New Product Launch Marketing Plan, Part I New Product Launch Marketing Plan, Part I International: Fiat Market Needs and Market Growth “Vehicle shipments in NAFTA totaled 2,238,000 units for FY 2013, representing a 6% increase over FY 2012. In the U. S. , vehicle shipments were 1,876,000 (up 7% from FY 2012), in Canada 269,000 (up 5%) and 93,000 for Mexico and other. ” (Fiat 2013 Full Year Q4 Results, 2014) “Fiat forecast that group trading profit this year will rise to between 3. 6 billion euros and 4 billion euros from 3. 39 billion euros in 2013. The forecast is lower than a range of 4.
7 billion to 5. 2 billion euros given in October 2012 and below analysts’ forecast of 4. 15 billion euros” (Automotive News Europe Home, 2014). Fiat vehicles mainly sold to Europe and Latin America. For Italians, the Brazilian market is almost as important as the European market. These two regions market is not very good due to economic crisis. But Chrysler mainly occupies stronger advantage in North America. In third quarter of 2013, its earnings in the North American market increased by more than 20%. In addition, both the Chrysler and Fiat so far have occupied important shares in Chinese market.
New Product Launch Marketing Plan Essay Example
Therefore, the Chinese market will be the key to Fiat profitable. According to the Wall Street Journal, the amount of global automotive will have a 4% growth in 2014, while the American and European markets also have 3% growth in 2014 (2014). This means that the slow recovery of the global economy will drive the automotive consumer over global. With oil prices rising, more people are favoring economical vehicles, such as electric hybrid. Ford expects electric hybrid cars will occupy 20-30% of the car market next decade, therefore, Ford, Toyota, Nissan and other major car companies have launched their own electric hybrid car.
SWOT Analysis Strengths. Fiat has a long international history and presence. Fiat boasts an environmental consciousness that is ahead of its competitors such as CO2 emissions and the use of renewable energy in the manufacturing process (Fiat. com, 2014). Weaknesses. A weakness may be the number of recalls on Fiat 500 in previous years resulting in a lack of trust in the brand. The global recession and decreased buying power of consumers may create a resistance to purchasing new automobiles. Opportunities. The Fiat name has been associated with Chrysler Group and it’s over-taking of the remaining equity in the US-based company (Fiat.
com, 2014). Sochi 2014 has also been seen as a global marketing venue. Threats. Threats include the recovering auto industry in the United States with other international options for small, subcompact cars (that also focus on fuel efficiency). Potential Competition Luxury brands have entered the subcompact car market in Europe. Fiat’s price isn’t a match for the people who are willing to pay a little more for the name of a BMW or Audi (Automotive News Europe, 2013). Product Offering and Product Definition Fiat’s Panda Classic is available in 36 countries on four continents (Fiat. com).
The Panda is a five door vehicle with climate control, extra storage and fuel economy. Multiple safety features are also included such as airbags, controlled crumple zones, and anti-whiplash head rests (Fiat. com). Product Identification Fiat Panda. Justification Fiat’s Panda is one of the few models available in numerous countries, making a broader presence in the global market. The Panda is a smaller automobile, small enough to navigate tight cities streets yet roomy enough to transport families, friends and luggage. Domestic Market Needs and Market Growth Fait 500 is a small European designed 2-door car.
Though the manufacturer has seen an increase in sales and overall profit, the brand has struggled in US markets. This is due to a disconnect between the brand and the American car market. The organization attempted to win over the American consumer with targeted commercial campaigns featuring Charlie Sheen, which were successful. The Fiat brand does have a market for “inexpensive, fun to drive small cars, with room for four adults” however, the core issue of the brand lies with space; “there isn’t enough passenger or cargo volume in the standard 500 for it to have mass appeal here” (2013).
In order to appease this market the organization is launching the Fait 500L in the summer of 2014. The newer model has 40% more space than the previous model. SWOT Analysis Strengths. This Italian company was founded in 1899 (Fiat Nation, 2014). Fiat brand cars, specifically the Fiat 500, have been sold in over 100 countries (Fiat Nation, 2014). The conservative design equates to modest fuel economy (KBB. com Editors, 2012). Weaknesses. This small car has limited seating and cargo capacity. Persons who live outside of the city or have larger families may not find this car useful.
If the body design doesn’t satisfy the customer, other competitors such as Honda Fit or Ford Fiesta offer more room and styles (KBB. com Editors, 2012). Opportunities. With the growing trend of fuel-efficient sub-compact vehicles, Fiat may have arrived to the domestic market just in time. Threats. Numerous other sub-compact cars are also on the market and may provide significant savings or advantages based on what the consumer favors. In addition, a recent crash test study by the Insurance Institute for Highway Safety listed Fiat as one of the makes that did not fare well in crash tests (Hirsch, 2014).
Potential Competition The domestic market is ripe with potential competitors. According to Fiat’s website, the primary competitors include the Kia Soul, Nissan Cube, Scion xB, Honda Fit, Mini Cooper, and Ford Fiesta. Product Offering and Product Definition The 2014 Fiat 500L has a starting price of $19,100; with four well-equipped models adding two more doors plus best-in-class interior volume. With 120. 1 cubic feet it provides for comfortable accommodations for five passengers. It is designed on the new, small but wide, vehicle architecture adding 27
inches more in length, plus six inches more in height and width, all to deliver an EPA Large Car size interior with comfort, added versatility and 42 percent more space. (2) Product Identification Fiat 500 and 500L Justification Fiat’s main competitors are the Mini Cooper and Smart ForTwo. With the sales of the Smart car brand declining, the Mini Cooper sets the standard in the US. Mini’s U. S. sales fell 1. 6 percent in the first 10 months of this year to 38,538, said Autodata Corp. In the same period, sales of Smart’s U. S. model, the ForTwo, declined 61 percent to 5,146, the Woodcliff Lake, New Jersey-based researcher said (Higgins, 2012).
The new expanded size models allows for more driving experiences for a smart size international vehicle. The premier package includes a no charge technology features. This adds to the overall value for the brand. Survey questions to collect additional consumer data 1. Do you purchase mainly in the physical retail store or online? 2. What range includes your age? a. Younger than 18 b. 18-24 c. 25-34 d. 35-44 e. 45-54 f. 55-64 g. 65 or older 3. Are you: a. Male b. Female c. Transgender 4. How many children 17 years or younger live in your household? 5. What is your annual household income? a. Below $20,000 b. $20,000-$29,999 c.
$30,000-$39,999 d. $40,000-$49,999 e. $50,000-$74,999 f. $75,000-$99,999 g. $100,000+ 6. Are you the person in your household responsible for purchases? 7. Please indicate when you last made a major purchase? a. 0-3 months ago b. 3-6 months ago c. 6-12 months ago d. 12-24 months ago e. 24+ months ago 8. What statement best describes you: a. You take pride in having the latest products. b. You could care less about the new products being offered. 9. What feature would make X brand more desirable to you? 10. How important is cost in your purchasing decision? a. Very important b. Somewhat important c. Somewhat unimportant d. Not important