GROUP A59 58 51 41 2559 58 51 41 25

FIAT INDIA

OBJECTIVETo determine key factors for low market share in india

SCOPE OF STUDYSCOPE OF STUDYTo provide insight into current Marketing Strategy of FIAT INDIA

To determine the reasons, undermining their Market share

To come up with an appropriate Business Model

LIMITATIONS OF STUDYThe products are limited but possess many variantsThe products are limited, but possess many variants

On the grounds of low market share, statistics for a particular

i i t il blversion is not available

Hence, the study is conducted on a general product, i.e. CAR

AGENDA

GLOBAL OVERVIEW

INDIAN SCENARIOINDIAN SCENARIO

MARKETING STRATEGY (CURRENT STATUS, BUSINESS OBJECTIVE, SALES

STATISTICS, OFFERINGS, ECONOMICAL CLIMATE, BUSINESS CYCLE,

GROWTH ESTIMATES, COMPETITION, SALES & DISTRIBUTION)

ISSUES NEED TO BE ADDRESSEDISSUES NEED TO BE ADDRESSED

SWOT ANALYSIS

BUSINESS MODEL

REFERENCESREFERENCES

P d t C t A t bilProduct Category: Automobile

P d t T P CProduct Type: Passenger Car

B d FIATBrand: FIAT

M d l LINEA/ PUNTOModel: LINEA/ PUNTO

Fabbrica Italiana Automobili TorinoGlobal Overview

FIAT S.p.A, Turin based Large Industrial Group

Global Overview

Founded in 1899, by Giovanni Agnelli & Group

Presence in 190 countries across the world

118 R&D Centers and 203 Plants World Wide

R fi d it f th CRefined its focus on the Cars

Business Group: World Wide

Source: Corporate Fact Sheet: FIAT GROUP

FIAT India Automobiles Ltd.Indian Scenario

FIAT began selling its vehicles in India in 1905

Tied up with sales agency –Tied up with sales agency

Bombay Motor Cars Agency

In 1959 Fiat entered into a license agreement with,

Premier Automobiles Limited (PAL)( )

Current presence through a 100 per cent subsidiary

FIAL i 50 50 JV b t FIAT S A & TATA M tFIAL is 50-50 JV between FIAT S.p.A & TATA Motors.

It owns state-of-the-art facility at Ranjangaon.

FIAT India Automobiles Ltd.

Indian Scenario

Products: passenger cars, both petrol & diesel models.

Also sells through part of Tata Motors' dealer network.

Sales Network: 175 Dealers across Cities & Small town.

Despite of highly competitive cars in its Indian

portfolio sales figures remains moderateportfolio, sales figures remains moderate.

Marketing Strategy – FIAT INDIA

Current Position

Market Share – Passenger Cars

Source: ACMA Report - Indian Auto Component Industry An Overview

Business Objective

Sales Statistics: Indian Scenario

Total Industry Sales

2009 10 1 5 illi2009-10 : 1.5 million

units Sol

d

FIAT experienced 207%Units

growth of Domestic

MarketMarket

84% growth of ExportsYearFIAT INDIA (Li / P t )FIAT INDIA (Linea/ Punto)

Product Strongest Element of

Technology

Marketing Mix

Offer Cars as Basic Product

EnginesSafety

Presence in Segment

A: Micro Car

B S ll C (H t h B k)

Success

B: Small Car (Hatch Back)

C: Mid Size Sedans

Petrol & Diesel VariantsFactors Petrol & Diesel Variants

Will launch CNG cars

Offer Petrol & Diesel EngineDesignStyle

Offer Petrol & Diesel Engine

to other car makers

Will supply engines toComfort

Will supply engines to

commercial vehicle

manufacturermanufacturer

Product Offerings

Product Offeringsd i ifi i Cl i h l iProduct Engine specification Class Variants Technology Price

Grande Punto

1.2 fire petrol 1.4 Fire petrol

Hatchback ActiveDynamic

Blue & Me Rs. 445300/-Rs.477076/-Punto 1.4 Fire petrol Dynamic

EmotionEmotion

Emotion PK

Rs.477076/Rs.508571/-Rs.560760/-Rs.621499/-

1.3 Multijet engine Diesel

1.3 Multijet Diesel 90 HP

ActiveDynamicEmotionE ti

Rs.531292/-Rs.565914/-Rs.611020/-R 668718/HP Emotion

Emotion PKRs.668718/-Rs.702923/-

Fiat Linea

1.4 fire petrol Sedan ActiveDynamic

Blue & Me Rs.661552/-Rs 688782/-Linea Dynamic

EmotionEmotion PK

Rs.688782/-Rs.756838/-Rs.789311/-

1.3 advanced multijet Rs.758905/-jdiesel Active

DynamicEmotion

E ti PK

/Rs.790324/-Rs.837447/-Rs.895039/-

Emotion PK

Awards: FIAT LINEA

‘Car of the year’ award by UTVi Autocar: 2008

‘Mid i f th ’ b b th UTVi A t 2009 ‘Midsize car of the year’ by both UTVi Autocar: 2009

‘Midsize car of the year’ by CNBC Overdrive: 2009 y y

‘BBC TopGear Medium Saloon 2008’ by TopGear

Awards: GRANDE PUNTOAutocar Magazine's Coveted Design Award: 2008

Brazil's 'Carro Do anno 2008' (Car of the Year 2008)

Auto Inter Americana 2008Auto Inter-Americana 2008

Market Opportunities & Industry Trends

Huge Population over 1.1 billion signifies large

marketmarket

100% FDI allowed for the Indian Automotive Sector

High Distinctiveness in Demand for all segments of

carscars

Substantial rise in Disposable Income

India is expected to be Global Hub for Automobile

Manufacturingg

Passenger Car Segment, expected growth at CAGR

of 15% over next 5 years

Economical Climate

Pyramid structurePyramid structure

of the Indian

market is slowlymarket is slowly

collapsing and

being replaced bybeing replaced by

a diamond

Source: National Council of Applied Economic and Research (NCAER)

Business Cycle: Economic Melt Down

Globally Auto industry's growth was poisedGlobally Auto industry s growth was poised

Growth in Rapidly Emerging Economies (BRIC

Nations), although slowed, still outpacing growth

anywhere else in the world,y ,

As the demographics of REE’s market, include first-

ti hi l t l t ttime vehicle owners to large extent.

Level of car adoption is relatively low, 11 cars in use

per 1,000 people.

Growth Projection: Globally

Source: The Best year of Auto Industry are still to come – Ronald Haddock & John Jullen

CompetitionFierce Competition from Hyundai and Ford

Maruti Suzuki is market leader with ~50% of shareMaruti Suzuki is market leader with 50% of share

FIAT INDIA is gearing up for High Level Competition

FIAT plans to combat Maruti Suzuki’s ALTO with 1 liters

small car, by 2012, y

FIAT started exporting cars to SAARC nations following

f f i ithe foot steps of Maruti & Hyundai

Message to Competitors:

Maruti may have 50% market share in India but we are

nowhere behind fight us to maintain the demandnowhere behind, fight us to maintain the demand.

Factors of Competition

Product Mix Price

HatchbackSedanMi C

At Par with competitorsExcept FIAT 500

Micro CarLarge variants withinsegment

Service Spare Parts

Tie-up with TATAInitiated FIAT FIRST

More focused issueEasy availabilityEasy availabilityGenuine PartsCompetitively Priced

FIAT FIRST

Long Service IntervalInterval

Customer Growing Service Network

Long Warranty CoverageCentric

Initiative

Network Coverage

24 X 7 Road Genuine Spare Side Assistance

pParts

Sales & Distribution

Efficient Supply Chain

Fiat has a 50:50 JV with Tata Motors shares their dealer networkFiat has a 50:50 JV with Tata Motors, shares their dealer network

Currently sells through 175 dealerships of JV, across 130 Cities

40 Exclusive Dealers

Need to get rid of shared Sales & Service Network

Promotion

Punch Lines

Linea: Admiration G aranteedLinea: Admiration Guaranteed

Punto (Petrol/ Diesel): Crafted for True Fan

Punto (90hp): India’s Most Powerful Diesel

Hatchback

500: Every FIAT is 500% FIAT

FIAT appointed AICAR as Marketing Advisor in India

Advertising company: Orchard Advertising (sister concern of Leo Burnett India)

Issues to Address

Current Marketing Strategy does not work out

Despite of competitive products sales was moderateDespite of competitive products, sales was moderate

Need to increase Exclusive Dealership Network

JV may be a possible threat for future

Promotion is the weakest part of FIAT INDIA, even FIATp ,

officials admit the fact

i iThere is a need to educate the customers regarding

their Hi-Tech Products & competitiveness

Strong Promotion campaigns required to completely

wipe out the deteriorated brand imagewipe out the deteriorated brand image

SWOT Analysis (FIAL)

High Quality ProductsTechnology

Deteriorated Brand ImageWrong perception aboutTechnology

Strong Dealer NetworkBusiness ExpansionHeavy Investment

Wrong perception aboutIndian MarketPoor Customer CareSpare Part IssuesHeavy Investment

Century long presencein industry

Spare Part IssuesLimited Product RangeInsufficient Promotion

New Market SegmentsBrand RevivingConsumer perception

Shared Dealer NetworkStiff Competition

Consumer perceptionIncreased ExclusiveDealership

Business ModelBusiness

Objective

Strategic Planning

CRM

TargetMarkets

Customised Promotion Programmes

Passenger & Luxury Cars, SUV, MUV, Commercial Vehicles

Separate areas/ Exclusive Dealer

Dedicated Sales Teams for Models

Increased Manpower

Training Programmes

Information Customer

g

FIAT FIRST

References

www.fiat.com

www.fiatindia.com

www.timesofindia.indiatimes.com/business

www.rushlane.com/fiat-india

t t t h l iwww.tatatechnologies.com

www teambhp com

Thank You

www.teambhp.com

www.zigwheels.com Thank You