MARKET ENVIRONMENT ANALYSIS ON FIAT INDIA

Micro Environment Factors Affecting FIAT India

• Competitors

• One of the biggest threats in any business and in any industries are its competitors

• In Automobile industry competitors are wealthy, big and tough to deal with, as they are big in size especially the foreign rivals such as Volkswagen, Fiat, BMW etc.,

• Competition can be either in margin based segments such as premium cars and volume based such as mid segment cars

• FIAT India falls under the mid segment category where it competes directly with companies such as maruthi Suzuki, Tata Motors and Volkswagen

• FIAT India has loosened lots of its ground to their competitors for a long time, as the market penetration for FIAT India is low compared with its rivals.

Sales Figures of FIAT India

• FIAT India holds a market share around 0.6% and it is expected to grow around 50% YoY

• Companies are born to serve customers and to earn profit from them

• Customers are King in any business

• Customer Satisfaction is a key element for success of any business and it’s one among the effective tool for customer retention

• FIAT India is one among the few automobile company, which has a low level of customer satisfaction due to its poor aftersales service and some technical glitches.

• It has recently acquired Chrysler, which FIAT is very proud off

• In India FIAT has failed to offer quality after sales service and a strong product lineup

• FIAT India can focus on launching its partnership alliance cars such as Abarth (Expected in India, October), Alfa Romero and it can even try bring in its recently acquired Chrysler in the Indian market as the market even has premium segment.

RETAIL NETWORK

• FIAT India’s Retail network has few flaws, which affects its business by decreasing its sales unit

• FIAT and TATA’S Retail network was a nightmare for both the companies

• FIAT Turned Independent

• FIAT India has 150 Dealers around India, Where the network is more than its Demand

• FIAT incurs more expense on maintaining its network rather than benefiting from them

• It needs to cut down its network and limit it to 15 Cities around India. So that it can offer better experience to customers and it will benefit to the dealer.

MACRO ENVIRONMENT FACTORS AFFECTING FIAT INDIA

• Socio Cultural Changes

• Culture is all about trends in usage and yes, there is a culture followed in Automobiles too

• Automobile industry has transformed dramatically from a single cylinder engine to Turbo jet engine technology

• customers change their preferences according to the market trends

• Recent times there is a high demand for Compact SUV’s and Hot Hatches its because of its stylish looks and appeals

• FIAT has only two model under its Roof namely FIAT Punto and FIAT Linea

• FIAT needs to launch new products as per the trend and not as per tradition

FIAT CAFÉ CONCEPT

FIAT CAFÉ • New trend within motorsport enthusiast is that going for

an automotive club meets and hanging around for a cup of coffee

• FIAT observing this trend launched its own FIAT CAFÉ to give a different experience for its customers. But unfortunately it was a flop

• FIAT should have offered new product lineups instead of proving café experience

• Café experience can be given when a strong customer base is being created

• FIAT India should concentrate more on new customer attraction and being strong at it.

• FIAT products are designed to scream Italian beauty and quality from every corner but few technical glitches are diminishing its goodwill

• Technical glitches such as poor electronic output and hard steering gives customers an unpleasant experience and which doesn’t tends them to opt for the product

• Fixing all these technical glitches might create a positive image and could boost up the sales figures