Fiat Stilo

Situation Analysis

Market Situation for Fiat in General:

Fiat wants to launch the Fiat Stilo because it is considered a great opportunity by all directors of

the company as a way to re-launch the brand image in Spain and to strength the whole company.

The Company faced the following problems in 2001:

Fiat used to be the leading car manufacturer in the 80ies but became

only number 7.

Big European competitors within the same segment.

There are short term interests as market shares and strategic objectives as the improvement of

the company image.

Customers:

For the customers Fiat = Smart Design, Practical, useful vehicle with safety features and comfort

but Weak, small, poor quality product = low prices

Fiat Stilo: Practical, useful vehicle, safety and comfort

Offers far more advanced features than traditional competitors (i.e.

functions of a MVP)

3 door Stilo: sports car design- young image, safety

5 door Stilo: versatility, comfort and safety

Competitors:

In General in the C-Segment the competitors would be:

VW Golf, Peugeot 307, Renault Megane, Ford Focus, Opel Astra, Citroen Xsara.

We believe our Main – Competitor is the Ford Focus. The Reason to buy the Ford Focus

according to our figures is Price, Brand, and Design. But the weak points are the safety options

and we offer them with the Fiat Stilo so in our opinion we can get this Market share.

We as the Sales Department would launch the Fiat Stilo with the following steps:

The sales department keeps in mind the clients who considered the Fiat as a purchase

alternative: These clients associate the brand with price attributes.

We want to improve the Market share right away and than improve the profitability little by little.

We want a car that is not to expensive so that the sales budget can be achieved.

In general we will start measuring and control is all parts of the car management which should be

quite easy now with the new tool “link”. By monitoring our initiatives we will increase our

implementation effectiveness.

Our main objective is to achieve a high market share in the least amount of time possible.

We are sure that our clients will value in the short term technical and safety improvements which

will improve image in the medium term.

1. Objective Target and Positioning

Overall Objective: Position Fiat Stilo in C-Segment (which will not be easy because Fiat in

general is positioned in B-Segment) and boost our market share

Reduce sales costs

More trade leverage in bargaining with distributors

Build loyalty

Primary Objective (assigned and tagged with a deadline):

Boost sales

Improve the Image of Fiat

Keep clients and long-term sales

Target group/Potential buyers: We will focus mainly in the male population since 80% of C

segment buyers are in this category.

2. Price Strategy

Price strategy following the “Focus” one:

Low visual prices for lesser-equipped