FIAT 500L CAMPAIGN STRATEGY

EIGHTYSIXFelicia Berger / Kaitlin Lamontagne / Peiwei Liu / Chelsea Chen

500l CAMPAIgn STRATEgY

FALL 2012 / AD CAMPAIGN PLANS BOOK

Be More.

2FIAT 500LCAMPAIGN STRATEGY

AE - 86 //fAll 2012

Table of ConTenTs

1. exeCuTive summary

2. siTuaTion analysis• FIAT

• CompeTITors

• Consumers

• CollAborATors

• ClImATe

• swoT

3. PosiTioning sTaTemenT• TArgeT segmenT

• DIFFerenTIATIon

4. sales objeCTives

5. budgeT

6. CommuniCaTion objeCTives

7. imC sTraTegy

8. imC budgeT breakdown

9. imC ComPonenT sTraTegy• ADverTIsIng (prInT/TelevIsIon)

• promoTIons

• evenTs

• new meDIA

• publIC relATIons

• ouT oF home

10. CreaTive ProPosal

12. aPPendiCes and referenCes

3

4

14

15

16

17

18

19

19

22

28

ae - 86Felicia BergerKaitlin LamontagnePeiwei LiuChelsea Chen

Be More.

FIAT 500LFIAT. BE MORE. CAMPAIGN STRATEGY 3

new York. boston. Chicago. los Angeles. what do these cities all have in common? They’re all major metropolises in the united states that suffer from overcrowded streets and parking lots. places where it’s easier to find a penny from 1954 than a parking spot on monday morning. They’re all locations where people give up the right to personal space in favor of squeezing like sardines in a metro or transit just to make it to work on time. or go to the store. or visit family and friends. They are all cities where sacri-fices are being made in the name of convenience.

not anymore.

The Fiat 500l will revolutionize the way city dwellers do life by providing a compact car with so much room, they’ll think it’s bigger on the inside. And the fact that it holds all the elegance of Italy is icing on the cake. Consumers are looking for a vehicle that isn’t limited by compact spaces or little passenger seating. They want a car that will get them from point A to point b in class and they want the price within their budget. The Fiat 500l has the high quality and compact size of a Fiat vehicle with double the room as before. And it’s for everyone -- moms, workers, businessmen and students.

Ae86 has created a multi-media campaign that will assist Fiat in overtaking the compact car market. This report provides an analysis of Fiat’s current situation, the position of competitors, details on cur-rent consumers, an analysis of collaborators, a p.e.s.T. and s.w.o.T. analysis, a positioning statement, sales objectives, communications objectives and a fully comprehensive ImC strategy that includes sched-uling, budgeting and creative samples.

small parking spots? no problem.

Introducing the Fiat 500l.

exeCuTive summary

ExECuTIvE SuMMARY


IntroductionA situation analysis gives an overview of the current market the Fiat 500l is about to enter and the state of Fiat itself. This is important to look at to ensure that all bases for the campaign are in line with Fiat’s mission and spot in the market.

Category and DescriptionFiat 500l is the new 5 passenger multi-purpose vehicle that will be launching in 2013. The “l” stands for “large”; it is the new addition to the 500 range that Fiat brought to the us market, which will expand the brand’s style and efficiency in the growing b-segment. 3

Mission Statement“To build cars with attractive styling and exciting engines, cars that are accessible and improve the quality of everyday life.” 1

Fiat 500L Specsengine: Two petrol engines include the 101 hp 1.4 liter in-line four-cylinder engine from the standard 500 and a 0.9-litre TwinAir version, as well as one turbodiesel 1.3 multiJet II engine.Transmission: manual (5-speed)/Automatic (6-speed)size package: 163.0 inches long, 70.1 inches wide, and 65.4 inches tall.Doors: 4seats: 5Driveline: Front wheel Drivehorse power: n/ATorque: n/AFuel economy City/hwy: n/Amsrp: estimated at €16,000 in europe, $20,000 in usA. 13

The Fiat MissionFiat is an Italian automobile manufacturer founded in 1899, a modern symbol for Italian design. Its mission is to combine tech-nology and sentiment in one and build a role in the daily life of an

entire generation and country, as well as their technological and stylistic innovations. strong yet essential, it perfectly sums up the Fiat’s mission and goal. 2

Similar Products and StrategiesThe marketing campaign for the Fiat 500 was a multi-media cam-paign that combined television, outdoor, print, digital and experi-ential initiatives and focused in the brand’s key markets together with complementary national advertising efforts. They created the new tag line, “simply more”, which set the tone for campaign. Drive-in television spots started out with a vintage film of the Fiat 500, and then it turned into modern day driving, emphasiz-ing the trend where old things become new and cool again. For smart phone users, Fiat launched the “Fiat source” touch-based application. The new app digitally showcases the new 2012 Fiat 500 vehicle line and is free to the public to download from iTunes. Fiat has an active social media presence on Facebook, Twitter and YouTube.

“This campaign captures the perfect combination of wit and charm and is designed to engage current and potential customers, as well as increase brand and product awareness in key markets,” said laura soave, head of FIAT brand north America. 11

Sales and Market Sharesreleased early 2011, the Fiat 500 sales are low compared to competitors. As advertising increased, Fiat experienced 5 months of increased sales for 2012.

since the return of the Fiat brand to the u.s. market, Chrysler’s (owned by Fiat) market share has risen to over 11%. Though there is little information on the Fiat 500 specifically, it does claim .05% of the market in California. 5

siTuaTion analysis

SITuATIon AnAlYSIS: fIAT

Table 1.1 Fiat 500 Sales and Marketshare

FIAT 500 Today Last Year Vol. Change Current total Last Year Vol. Change

July 2012 3,710 3,038 22% 24,416 7,982 206%

June 2012 4,004 1,803 122% 20,706 4,944 319%

May 2012 4,003 1,759 128% 16,702 3,141 432%

April 2012 3,849 882 335% 12,699 1,382 819%

March 2012 3,712 500 642% 8,850 500 1670%

February 2012 3,227 0 new 5,138 0 new

January 2012 1,991 0 new 1,911 0 new


SITuATIon AnAlYSIS: CoMPETIToRS

ComPeTiTion analysisPromotional History/Philosophy and Expendituresbeginning in the united states around the turn of the 20th cen-tury, Fiat was known for small, compact cars that were advertised through mostly sexist billboards and magazine advertisements.

Fiat returned to the u.s. market in January of 2011 after a 20+ year absence, ready and eager to break back into the market. They wanted the Fiat 500 models to provide ‘an entirely new gen-eration of drivers with the best of Italian motoring: craftsmanship, style and safety, combined with fun-to-drive small-car efficiency.” 7

with the goal of targeting young, female adults, Fiat partnered with Jennifer lopez to produce a superbowl commercial that showed little of the actual car. Critics attacked the spot and Fiat switched advertising agencies. They dropped the idea of targeting young females with the Fiat 500 and tried appealing to young men with the Fiat 500 Abarth. To accomplish this, another spot star-ring Charlie sheen appeared during the 2012 superbowl (giving Fiat over 50% sov for television that month).

Fiat is one of the top 100 spenders in the u.s. for advertising. The company spent $873 million in 2010 and $371.3 million in the first half of 2011. For all of 2011, Fiat-Chrysler combined spent $1.8 billion.12

Fiat Branding Strategyproudly displayed on the Fiat website is the phrase “sometimes, to move forward you need to take a step backwards.” This phrase accurately portrays Fiat’s determination to return back to its root, not only by returning to the u.s., but by reverting back to the company’s original mission “to build cars with attractive styling and exciting engines, cars that are accessible and improve the quality of everyday life.” 1

while Fiat is plagued with a negative brand image, it has started taking steps to improve it by shifting its focus. Fiat pledges to strive toward a continuous, rapid overhaul of products, continue technological research, improve quality of designs and build new, constructive relationships with customers. The first mark of this transition was demonstrated by releasing a new, modern logo for the brand. 5

For the Fiat 500l, the company’s goal is to brand the car as a vehicle that is “able to contain all of life’s greatest emotions all together: children, friends, journeys. every time great emotions become great experiences.” 1

IntroductionThe goal of a competitive analysis is to test the state of the mar-ketplace for the given product. It is important to know who the competition is before the new product launches in order to find a way to break into the market and gain market share and consum-ers. This section will look at the main competitors of the Fiat 500l, the size and trends in the category, how much competitors are spending, and end with a look at collaborators and advertising.

Competitors

Mini Cooper CountrymanThe Countryman is the closest competitor to the 500l with respect to the parent brand. mini started with a small subcompact model and introduced larger versions to appeal to more consum-ers. Fiat is using the same strategy as it is reintroducing the brand to the us. The Countryman is similar in size, the largest differ-ence being 3.5” shorter in height. The Countryman offers a large amount of cargo space, decent gas mileage, and a price close to the estimated price for the 500l.7

Nissan JukeThe Juke is a compact crossover shaped with more dynamism than the boxes that are the Countryman and 500l. It is close in size to the 500l with all dimensions within 3” of each other. The Juke offers less cargo volume than the Countryman but still a de-cent 36 cubic feet. The price range is also similar to the 500l and Countryman with prices starting at $20,000, and slightly better fuel economy than the Countryman. nissan pitches the Juke at a younger crowd, mostly the generation Y. 3

Kia SoulThe soul is the competitor closest in size to the 500l with the only difference being the soul is 1” shorter in height. however, the soul is significantly cheaper than the 500l with pricing start-ing at $14,400. of the competitors, the soul offers the best cargo volume and fuel economy. It is a breakthrough vehicle for Kia with respect to design and quality. Kia also pitches the soul to generation Y using pop culture facets such as video games and the latest hot music artists.4

Scion xBThe xb is the oldest model of the competitors, debuting as a 2005 model. It is 4” longer than the 500l but is the same height and width. The xb offers the least amount of cargo volume among the competitors. The xb begins pricing at $16,300 making it slightly cheaper than the 500l estimated pricing but offers less-than-stel-lar fuel economy. The xb was a popular hit in the customization crowd but has tapered off in popularity in recent years.1



the consumers of the vehicle. Kia presents bluetooth capability, accessories, price, and fuel economy as desirable features about the vehicle. Kia also involves consumers by holding a contest for users to make a music video with provided audio to win a Kia soul. 12

Scion xB “What moves you”In the early years of the xb, scion’s main strategy was to exhibit the incredible customization capabilities of the vehicle, many of which could be done before the car left the dealer lot. All tv spots for the xb displayed this customizability. There are also thousands of communities and clubs for scion owners. recent advertising for the xb is more conservative presenting fuel economy and tech-nological capabilities. however, some print advertising describes its uniqueness, and hideousness, as a reason to want to drive one. The target market for the xb and other scions is young, first time buyers who are on a budget but want something to make their own. 13

Projected qualities and PersonalitiesMini CountrymanThe mini Countryman is a fairly new vehicle in the united states. The brand image for this mini Countryman is that they cope with bmw and want consumers to feel that when they are driving the mini Countryman, but with the bmw brand image. In addition, the mini Countryman is famous for cutting-edge, sporty, stylish aspects.9

Nissan JukeThe nissan Juke debuted in 2010 in the united states, by october 10, 2010 nissan received more than 30,000 orders.10 The brand image for the nissan Juke is simple and clear. ride high, stand out and move quickly. The body design for the Juke looks futuristic and it’s easy to differentiate from other cars.11

The b-segment, sub-compact cars, is a fast-growing segment with-in the auto industry. As gas prices continue to rise consumers are searching for better fuel economy among vehicles. This specific category of b-segment vehicles, the sub-compact crossovers, offer sufficient seating capacity and more cargo volume but holds excel-lent fuel economy and price. predictions see a significant increase in sales of these smaller cars to become a trend that continues in future years with sales increasing 12.1% in 2012 and an expected increase of 7.2% in 2013.8

Marketing Strategies of the Competing BrandsMini Cooper Countryman “Getaway”mini’s strategy for the Countryman is to present it as versatile. The vehicle is meant for adventures that may involve alternate ter-rain and up to 5 passengers. Television spots display this versatility along with the vehicle’s handling, enjoyability, comfortable and spacy back seat, and usability of its four doors and center rail fea-ture. The target market in all advertising seems to be fun-seeking people in their late 20s or early 30s.9

Nissan Juke “Built to Thrill”The Juke is also pitched toward established 30 year olds but who live in urban areas. Flaunted features are the navigation options, bluetooth capabilities, handling, and the turbo engine option. The advertising depicts how your status or “cool-factor” is increased when seen driving a Juke. 11

Kia Soul “A new way to roll”Kia wants consumers to admire the soul for its unique and funky appearance. The target market is generation Y and this is evident in Kia’s use of lmFAo music, a hit pop group, in a key television spot for the soul. more hit music is used in other spots. Along with the funky appearance, Kia chose a funky approach to brand-ing their advertising. They use personified hamsters to represent

Competitors Sales and Market Share2

Brand Sales YTD Sales 2011 % Change Market Share YTD

Market Share 2011

Mini 43,632 37,636 +15.9 0.4 0.4

Nissan 774,577 681,115 +13.7 8.0 8.0

Kia 386,809 331,796 +16.6 4.0 4.0

Toyota (Scion) 817,612 585, 193 +39.7 8.4 6.9Table 1.2 Sales and Marketshare. This table reflects numbers up to September 4, 2012. (wsj.com)

Sales Trends of the Category9

Brand Model Sales June 2012 Sales June 2011

Mini Cooper Countryman 1,819 1,426

Kia soul 10,199 11,314

Scion xb 1,869 828

Nissan Juke 3,101 2.031Table 1.3 Sales Trends, June 2011 vs. June 2012. Automotive News Data Center, July 9, 2012



Creative Approachesmini Countryman approaches with a gateway to adventures idea. one of the Tv ads shows the mini Countryman duplicate to many more that are driving in different locations and directions.17

nissan Juke developed an exclusive mobile app for consumers who own the Juke, and supports Android 2.2 or above. The app does not need to be downloaded from the app store, instead it runs live from the nissan official website. The app will allow users to trig-ger motion sensors that detect movement of the car, activate rising car acceleration sounds, and record motion values on the dynamic interface in Adobe Flash player. users can view their level of adrenaline and ‘JuKe energy’ on the app’s accelerometer, and they can post their scores on Facebook for their friends to view.18

Kia soul is driven by hit music and hamsters. since the debut of the Kia soul, hamsters and music are the main source for promo-tion. All of the Kia soul television commercials feature hamsters dancing with the latest hit song. For example, one of the soul’s Tv commercials show three hamsters dancing in a shooting video game setting with a dark world background and robots shooting at each other and features the hit song “party rock Anthem” by lmFAo.19

scion xb creative approach is a website want2bsqure.com that contains six words symbolizing the six sides of the box. each side has unique visual and box culture about the xb, and people are able discover another side of scion. moreover, each site has multi-player games and other discoverable items, the site encourages users to play, poke, click and learn more about the new xb. visi-tors will get reward points when they discover new items and they can use those points in exchange for t-shirts, hats, Tvs etc. The website is to get people involved with the scion xb and by getting involved they will be rewarded as a result.20

Kia SoulThe Kia soul continues to use personified hamsters and music to promote to consumers. The soul’s brand image is all about creativity, optimism and positivity. Kia brands the soul as a lifestyle for their target consumers who can differentiate their own image.12

Scion xBscion xb is all about the “boX”, the brand image for the xb is all about the individual who enjoys customizing and accessorizing the box the way they want.13

Marketing Communication ExpendituresThe mini Countryman marketing plan is estimated to be $45 million with traditional and social media, including radio, outdoor and live events at different locations.14

each year nissan spends about $260 million advertising in the united states and a large amount is used by the nissan Juke. nis-san will primarily promote the Juke with social media more than any other media.15

Kia spends about $300 million for advertising annually. As the Kia soul gains popularity, Kia will spend more money on the soul exclusively this year.16

Marketing Communication activitiesThe mini Countryman, nissan Juke and Kia soul use traditional and social media to promote their car. All three of them use outdoor, mobile, and transit advertising. In addition, all three have sweepstakes and contest in a specific location throughout the united states. sales promotions are decided by individual dealer-ships, so consumers need to ask their local dealerships for more details. 13

Competitors Activities Summarized

Brand Marketing Spending Qualities/Personalities

Kia $300 million unique, funky, young, good value for the price, customizable, interactive, creative, it is a lifestyle.

Nissan $260 million urban, loaded with features, quick, fuel ef-ficient, self-affirmative, stand-out, futuristic

Mini $45 million versatile, off-road capabilities, enjoyable, roomy, unique, sporty, high-class, stylish.

Scion n/A customizable, community oriented, unique, young, personal.

Table 1.4


Consumer informaTionIntroductionThe consumer analysis provides insight to the mind of the target audience, including where they are, what they like, what they do, how they perceive us as compared to our competitors, their pur-chase and usage frequency and volume, along with their loyalty to the Fiat brand and the average response model for the purchasing of a car.

DemographicsAge: 18-29gender: maleeducation: AA or higherIncome: $45,000 and $75,000

PsychographicsFiat 500l consumers believe in themselves: • value creativity and luxury • fashionable • self-confident • family is most important to them and understands them the mostare passionate: • love what they do for a living • travel, busy life, coffee breaks • fun-loving • simple goals, great effort to reach them • start small and build toward bigger thingsare unique: • different than others • inspirational, energetic, self-confident • outspoken • live life to the fullest, includes family in the fun

LifestyleFiat is a lifestyle, more than just an Italian automobile company. It represents how far imagination can actually go and turn into frui-tion. Their consumers’ lifestyle varies, but we make an assumption after our observation.

lifestage: • apartment, home-owner, city-life • growing family, family social gatherings • social meetings with friends • hang out with the kids on the weekends

lifestyle: • trendy, fashionable • shop in malls and online • 3 credit cards: gas, frequent flyer card, spending card

• spend 2/3 of their income and do not save much but spends on the family

Perceptions of Competitors

Diagram 3.1This perceptual map demonstrates where the Fiat brand and its competi-tion within our category lie on a scale comparing the cost of the vehicle and its originality. The more practical a car is the less unique it is compared to other vehicles. Fiat is positioned in the slightly luxurious and more distinctive quadrant.

SITuATIon AnAlYSIS: ConSuMERS

Luxury

Economy

Practical Distinctive


SITuATIon AnAlYSIS: ConSuMERS

Diagram 3.2This perceptual map displays the Fiat brand and its competitors on a scale that compares how emotional and fun the vehicle is compared to how the vehicle portrays its owner in the eye of the public. The owner or driver is more interesting if they stand out from everyone else.

Response Modelunlike older generations, the current target audience has very little exposure to Fiat. Due to Fiat’s 27 year absence in America, consumers are more familiar with competing brands. If they have had an experience with Fiat, it is usually from their parents or grandparents, who complain about the reliability of the car and customer service. when they come into contact with one of the newer models, they are surprised by the space and efficiency of the vehicles (Facebook survey).The response model for buying a car is the innovation adoption model: awareness, interest, evaluation, trial and adoption. purchase and usage Frequency and volume

Facts: • 18-24 year olds are buying less cars, down 17% since 2005 • driving is less important to our consumer • 46% of our consumer would rather have internet and electronics than a car • 21-34 year olds account for only 27% of all cars sold in the us in 2011, down from 35% in 19852

In addition, much of the demographic is composed of students in urban locations who are used to walking, taking taxis, or using forms of public transportation such as the bus or metro. To them, it is normal to not own a car or to borrow the car of a family member. The longer they live without their own car, the more comfortable they are without it3.

Consumer LoyaltyThe root of customer loyalty in the automotive industry lies in the purchasing experience. The customer must find engagement in both the pre- and post-purchase periods. Automakers must focus on relevancy and emotions rather than logic to keep that brand at the heart of consumers.4

examples of social media engagements and communications: • most brands have facebook pages • brands in our category host YouTube channels with information and how-to videos • some brands offer interactive programs: Kia soul’s music video challenge, nissan Juke’s app on Facebook • mini continues communication with buyers post-pur-chase as a way to improve their product5

Living your emotions

Controlling your emotions

Social Integration Social Affirmation

Diagram 3.3Response model for the purchase of an automobile.

Awareness Interest Evaluation Adoption

Promotion

Advertising

Events

New Media

Public Relations

Test Drive Purchase

Research

Brand Website

Peer Discussion

Customer Reviews

Discussion

Social MediaInteraction

Attraction

Trial


SITuATIon AnAlYSIS: CollAboRAToR AnAlYSIS

PartnershipsFiat is not only a brand but a corporate umbrella. The group oversees multiple Italian brands: Fiat, lancia, Alfa romeo, mase-rati, and Ferrari. Furthermore, Fiat and Chrysler group recently formed a partnership to assist Chrysler and its dying brands in surviving the economic downturn. Fiat currently owns a major-ity stake, 58.5%, of Chrysler group.2 This allowed Fiat access to significant distribution channels and Chrysler benefits from the sharing of platforms and drivetrain technologies including engines, transmissions, and fuel-saving technology.3

Partner-ship

Fiat Group

Chrysler Group

Special Editions

Develop-ment

Brands FiatLanciaAlfa Ro-meoMaseratiFerrari

ChryslerDodgeRAM SR-tJeepMopar

Gucci/Jennifer Lopez

Abarth/Charlie Sheen

TataCheryMazdaFordGMSuzuki

Benefits plantform sharing, technology sharing, Fiat is the parent brand of others

plantform shar-ing. Disturb sharing, Fiat assembly US vs mountains

special interest groups, media partner-ships

platform sharing (one feible per brand)

Table 4.1 Fiat partnerships and benefits of each3

Service Providersbelow are the 4 Fiat Dealers near orange County area8

Champion FIAT9715 Firestone blvdDowney, CA 90241-5509

Orange Coast FIAT2524 harbor blvdCosta mesa, CA 92626-6144

Sierra FIAT of Duarte1125 Central AveDuarte, CA 91010-2425

FIAT of Ontario1201 Auto Center Drontario, CA 91761-2209

other factors that influence brand loyalty: • history of the vehicle or brand: Fiat left the us auto market due to poor brand perception because the quality of their vehicles had slid downhill • brands develop programs to keep consumers involved in the brand • loyalty is based on the key idea that gaining a con-sumer’s loyalty is based on their experience with the vehicle, both pre- and post-purchase6.

ways brands in our category develop loyalty: • scion xb has clubs that allow people to flaunt the customization of their vehicle. • Kia overhauled their quality and began creating ve-hicles that people could keep for years • nissan launched a consumer appreciation program titled You+ nissan Care ensuring customers a quick and quality repair or service.

CollaboraTor analysis

IntroductionThis section discusses companies that collaborate with Fiat to produce a quality vehicle.

Supply ChainThere are currently 2,300 companies that supply Fiat parts world-wide10, such as royal Dutch shell. The top 60 suppliers produce 57% of all purchased vehicles9. In october 2011, Fiat created

“group purchasing”, a system that oversees worldwide purchasing to ensure that all vehicles are created with the same standards and pieces.9 This ensures global continuity for the Fiat brand.while there are many suppliers, Fiat does have ownership and partnerships with companies throughout the entire process. Fiat owns Teksid spA, which is the largest iron foundry group in the world. Their iron is used to produce automotive components. 10

production is overseen by Comau systems. This company became a pioneer in the use of industrial robots for the assembly of motor vehicles and has provided Fiat with state of the art as-sembly factories that are located worldwide. 10

DistributorsAs part of marriage between Fiat and Chrysler group, Fiat vehicles are distributed in the us through Chrysler distribution channels. The Fiat 500, the only model currently on sale in the us, is also assembled in Chrysler plants in the us and mexico.1


SITuATIon AnAlYSIS: ClIMATE

Job Market & Interest RatesThe us job market is improving. more people are going back to work and are now willing to spend money on purchasing or leasing a new vehicle. Furthermore, loan interest rates are at a record low. some automakers, including Fiat, are even offering 0% financing on certain vehicles.2

Fuel Economy StandardsFuel economy standards have been mandated. under the Corpo-rate Average Fuel economy standards automakers must average 54.5mpg in their vehicles by the year 2025. some larger vehicles may qualify for more lenient standards.3

DistributionFiat is doing well and looking to expand into untapped markets. Currently, Fiat brand Chief for north America, Tim Kuniskis, states that Fiat is looking to add around 30 more dealerships nationwide in markets yet explored by Fiat.4

Social TrendsProtecting the Environmentwith the new Corporate Average Fuel economy standards we talked about earlier, more people will protect the environment by switching to a smaller car. research shown that the slice of the new vehicle pie taken by small cars has grown by 50 percent over the last five years.9

Appearance is Key“looks” is the appearance of a car that your eyes get interested in. It could be the shape of its body, the rear lights, the front grill, steering wheel, the rev counter or the fuel filler cap.10 Just like Fiat, it is a fun and attractive car to drive. The uniqueness that you cannot get from another car. Fiat will catch your attention when it passes by.

Crossovers rather than minivans/SUVs3 main demographics that drives this growth. boomers, now often empty nesters and entering retirement, are trading down in size. meanwhile, half of first-time buyers under age 30 are choosing small cars. Another demographic shift favoring small cars is the urbanization of America, we saw more people living in cities than in suburban/rural areas.9

TechnologicalIndustry TrendsThe advancement of technology affects industries globally. The auto industry is seeing improvements in safety, fuel efficiency, and user interfaces. hybrid powertrains are increasingly popular with sales up as high as 55% in one month.16 This is threatening to Fiat

Ad Agencies and Sales PromotionFiat’s first ad agency was Impatto located in southside, michigan. Impatto was the agency that helped Fiat run the first national advertising campaign for the 500 models in the united states in 2011. Fiat does not have a timetable of when they will have a new ad agency. Also, one of the commercials featuring Jennifer lopez was created by an unidentified Chrysler agency.5 In addition, another commercial featuring Charlie sheen, called “Fiat enlisted ultimate bad boy”, was a spot developed by two Chrysler agen-cies, Doner and richards group.6

P.e.s.T. analysis

IntroductionAn overlook into the political, legal, economic, social and tech-nological aspects affecting Fiat and the automotive industry as a whole.

Political/Legal EnvironmentTaxesThe government receives a large portion of their income from vehicle taxes. while the numbers vary all around the country, the current range in California is between 8.25%-10.2%.8 This is a concern for automobile makers because the taxes are often in political headlines as politicians argue to raise taxes. 7

NHTSA RegulationsThe national highway Traffic safety Administration regulates the automotive industry, providing and enforcing guidelines for safety. The nhTsA is also in charge of rating vehicles each year in terms of safety. The 2013 Fiat 500 recently made the govern-ment’s list of cars that received 5 stars out of 5 for safety. 6

RecallsFiat recently recalled all Fiat 500 vehicles built between october 24, 2011 and october 26, 2011. These vehicles were assembled with contaminated brake fluids and, as a result, degraded sealing components within the braking system. The vehicles were recalled to avoid the potential loss of braking abilities and could raise the risk of a crash occurring. 5

Economic ConditionsRecession RecoveryIn september 2012, overall us auto sales increased 13%. Fiat automotive sales increased 51% while competitor scion’s sales increased 76%.1 This is a positive trend and will hopefully ride out the recession.


SITuATIon AnAlYSIS: S.W.o.T.

ParkSenseFiat rear park Assist system will warn the driver if there is a small or large object behind them. The warning is an audible and gives the driver a heads-up.14

Driving ModeFiat offers different driving experiences through unique pow-ertrain modes. when the driver deploys the sport mode, the driver quickly will notice the elevated steering response, engine, and shifting response for a feeling of quickness, stability and control.15

s.w.o.T.

StrengthsDiversified business portfolioFiat’s diversified business portfolio, including the ownership of automobiles, components and production systems, and publishing and services business allows Fiat to shield itself from ‘fluctuations in certain product categories’ and allows it to benefit from ‘op-portunities available in various segments. 3

Extensive brand portfolio/Alliance with ChryslerFiat owns a large line of automobiles, including Fiat, Abarth, Alfa, romeo, lancia, Ferrari, maserati, Fiat professional, Chrysler, Dodge, ram, srT, mopar and Jeep. 2 Fiat’s partnership with Chrysler allows it to integrate into markets and locations it may not have been able to enter otherwise. 2

Strong research and development capabilitiesThanks to 77 different research and development centers, Fiat is able to continually invest in research and technological innova-tions, continually striving on improving safety systems, energy efficiency, emissions reduction, workplace safety and logistics. 3

Target market not aware of previous poor reputation no one in the millennial generations knows Fiat or their reputa-tion, therefore removing a huge stigma from it’s name. This allows Fiat to be able to enter the market and profit. 1

because at this time they do not offer a hybrid, electric, or diesel powertrain.

In addition, vehicles are beginning to feature user interfaces much like smartphones. many automakers have developed their own interface, such as myFord Touch and mercedes-benz mbrace2. These systems allow users to monitor driving habits, remotely con-trol your vehicle from a smartphone, use voice command, search the web, download useful apps, etc. They also include real-time traffic and social media connectivity.18

lastly, safety technology in vehicles are becoming standard not only due to demand but due to nhTsA regulations. This is mak-ing vehicles more expensive and harder to acquire by a younger target market. Affordability is a large factor in purchasing deci-sions made by our target market: 18-29 year old males so if Fiat is required to add safety features that add a few thousand dollars onto the price of the vehicle, our target consumer may be discour-aged from purchasing the car.19

Product DetailFuel Efficient Fuel efficiency has become huge in the auto market due to the high price of gasoline and consumers buying vehicles that are fuel efficient and help them save money. Fiat’s newly designed engine, a multiAir 1.4-liter, can deliver 31 mpg city and 40 mpg highway with their custom powertrain optimization and the five-speed manual transmission (automatic uses more gasoline).11

Hands-Free ConnectionFiat offers a blue&me hands-free connection that will let drivers play music, make calls, switch radio channels and switch songs by voice control. Drivers will never get distracted by their entertain-ment while driving.12

Body and Cages Although the Fiat 500l model’s body and cages are b-segment, Fiat’s computer-designed steel safety cage takes the energy away from driver and passengers by absorbing it in defined front and rear crumple zones. The high-performance Antilock brake sys-tem and electronic stability Control collaborate to help the driver control and stabilize the vehicle when stability is at risk.13


SITuATIon AnAlYSIS: S.W.o.T.

s.w.o.T. overview

could carry over from 30 years ago and potentially influence consumers today.

OpportunitiesGrowing worldwide demand for automobilesmarketline estimates that the automotive industry will grow consistently over the next three years, and is expected to record a volume of 146.9 million units in 2015, an increase of approxi-mately 21.5% from 2012. This growth is primarily due to the higher disposable incomes and easier vehicle financing options available worldwide.10

Increasing demand from consumers for diesel enginesFiat 500l offers a multiJet II engine. multijet is the most quite, cost-effective and cleanest diesel engine. Its eco turbo which modulates air flow at low rpm more efficiently, you can save up to 3% on fuel and up to 20% on nitrogen oxide emissions. Driving pleasure is also enhanced because of the 20% more torque on this multiJet II engine.11

ThreatsIncreasing raw materials pricesCopper has been increased to 7,500 per ton at the end may 2012 when the price only 6,500 per ton back in october 2011. Also, the carbon steel sales price was 788 per ton during may 2012 compared to 778 per ton in December 2011. Due to increase of

Integrative navigation system gps maker TomTom and Fiat are partnering for new connected navigation system will be used in the Fiat 500l. It is rare that automakers are going with non-integrated systems such as the TomTom go live with their vehicles rather than integrating navigation into the car.12

WeaknessesProduct Recalls Contaminated brake fluid warranted the first recall on Fiat’s only model available in the u.s. Although it was a small number of vehicles involved in the recall it may still influence negative perceptions.5

Small Fiat brand line that is inferior in size to those of competitors/Low quantity in brand portfoliobecause Fiat is essentially new to the u.s. market they are very small in awareness and market share. Fiat also only offers one vehicle in their u.s. brand portfolio.2 our product, the 500l, will be a necessary expansion to the Fiat line in order to appeal to more consumers.6

Previous brand imageFiat withdrew from the u.s. market because of quality issues and the inability to keep up with American regulations and consumer demands.7 Any negative perception of the quality of the brand

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

- DIversIFIeD busIness porTFolIo- eXTensIve brAnD porTFolIo- sTrong reseArCh AnD DevelopmenT CApAbIlITIes

- TArgeT mArKeT noT AwAre oF prevIous poor repuTATIon

- AllIAnCe wITh ChrYsler- InTegrATIve nAvIgATIon sYsTem

- proDuCT reCAlls- smAll FIAT brAnD lIne ThAT Is InFerIor In sIze

- low quAnTITY In brAnD porTFolIo- prevIous brAnD ImAge

- InCreAsIng rAw mATerIAls CosTs- AuTo InDusTrY CompeTIng For TArgeT mArKeT wITh lApTops AnD smArTphones

- InTense CompeTITIon

- growIng worlDwIDe DemAnD For AuTomobIles- InCreAsIng DemAnD From Consumers For DIesel engInes


PoSITIonIng STATEMEnT

self-Assesment -These consumers see themselves as a unique indi-vidual, that they are different than others. They are inspirational, energetic and self-confident. They speak up and give help when they have a chance to.

Lifestyle & Lifestages1

Target consumers usually live in metropolitan areas; younger con-sumers might live in an apartment across the street from school or work. other consumers have a growing family and will usually own a house. They also enjoy going out for dinner with their friends, have some beer and just relax. During weekends, they like to stay home and watch movies with their kids.They spend money on outfits; they make sure they have the new-est clothing style since Fiat owners are trendy and fashionable. They shop in the mall, online and at convenient stores while they get gas. They usually have 3 credit cards.Size: Number of Potential Purchasers and Justification2

potential buyers: 33,500 people

based on the mrI plus report we can infer that approximately 30% of the total male population in the united states are poten-tial buyers. This is due to the average of 30% of the male popula-tion fitting any one demographic of our product’s consumer.8

Product Characteristics

Product USP and other featuresThe Fiat unique selling proposition is a trendy, b-segment vehicle that is made in Italy and is small but seems large.3 other features include an in-car espresso maker, heated seats, beats audio, usb input, and 7 air bags.4

Desired Brand Image and Justification Fiat represents trendy, cool and sexy. It also tells stories about urban adventures and family bond. our consumers need to feel like their vehicle is more than just a car-it’s a means to an end that is desirable.

Basic Creative Themewe’re going for high-end in a little package. brand heritage and aesthetics will be the basis for the creative theme of the ImC campaign.

price of raw materials, Fiat needs to increase the sales price of their car and if prices keep increasing, it will negatively impact Fiat’s expansion and its profit.9

Automobile industry competing for target market with laptops and smartphonesFiat’s target market is generation Y and they are buying smart-phone instead of automobiles for various reasons. First, genera-tion Y has a tight budget because of the slow recovering recession. second, generation Y is cutting back their driving. They might prefer biking, public transportation, carpool, and car sharing service like zip.8

Intense competitionThe auto industry is extremely competitive, especially in the united states. many Fiat competitors are offering similar product quality, pricing, technology, safely and fuel economy. The ac-cumulation of an over produced number of vehicles, competitive competition and the recent recession create a large threat to the Fiat brand and potential earnings. 13

PosiTioning sTaTemenT

Target Characteristics1

Demographics1

18-29 years old males AA degree or higher $45,000 - $75,000 located in major cities around the u.s. white, non-hispanic

Psychographics1

mindset-The Fiat 500l target consumers believe in themselves and value their creative and luxurious lifestyle. They are fashion-able and self-confident. Family is most important to them.

passion- Fiat consumers are passionate about what they do. They might go on a road trip once in awhile, have a cup of coffee in the afternoon or live a busy life in their field. one thing they all have in common is that they are having fun in life and feel fantastic every day. Their goals are simple- they do what they love and put 100% effort into it to make sure they’re satisfied with the outcome.


sales objeCTives

SAlES objECTIvES

From the diagram 4.1, it is clear to see that Chrysler/Fiat plans on investing more into the compact car market, where the 500l resides. It is safe to assume then that they expect an increase in sales each year.

IMC Budget and JustificationIn order to earn a part of the market share, it is common to spend the same percent of sales as percentage a company wishes to hold in the market. For this case, the projected sales amount is $389,987,500 and Fiat is looking to gain 0.4% of the small car market. by multiplying those numbers together, the amount Fiat should spend in their ImC budget is $155,995,000.

based on the launch of the mini Cooper Countryman, a product similar to our own, we formulated that our budget would be $7, 019,775. This number is 1.8% of Fiat usA’s total revenue for 2011, the same percentage mini spent for the Countryman during the year of its launch.

Desired Sales VolumeUnits: 19,499Dollars: $389,987,500Market Share: 0.4%

Rationale for Sales Objectiveour desired sales goals are based upon the sales performance of our closest competitor, the mini Cooper Countryman. we took the total sales for the first full year that the vehicle was on sale (2011) and found the percentage that those sales accounted for in the total amount of sales of the small car segment. we then multiplied that percentage against the projected total sales for 2013. That number is then multiplied by the estimated average price of the vehicle to retrieve the sales goal in monetary units. our desired market share is calculated in the same manner using mini’s market share in 2011.

Desired Sales Goal Calculations

Fiat/Chrysler’s Five Year Sales Planvehicles based on Fiats will be engineered by Chrysler people to meet Chrysler needs. product spending is to average $4.5 billion per year with $23 billion overall (Capex of $15 billion). 56% of sales made in 2014 are projected to be based on Fiat’s platforms. The engine mix is expected to be 14% diesel (up from 9% now), 38% four-cylinder, 37% six-cylinder, and 11% 8-cylinder (down from 18%). The large and full size market is expected to fall from 55% to 42% by 2014.9

a Total small Car sales 2011 goodCarbadCar.net7 2,318,047

b mini Cooper Countryman sales 2011 goodCarbadCar.net5 16,683

C % of Total sales Accounted for by mini Countryman

(row b / row A) x 100 0.7%

d projected small Car sales for 2013 [(row A x 0.121) + A] x 0.072 +[ (row A x 0.121) + A]8

2,785,625

e projected Fiat 500l sales 2013 (ve-hicle units)

row C x row D 19,499

f projected Fiat 500l sales 2013 (dollar units)

row e x $20,000 $389,987,500

Diagram 4.1


budgET

Diagram 4.1

From the diagram 4.1, it is clear to see that Chrysler/Fiat plans on investing more into the compact car market, where the 500l resides. It is safe to assume then that they expect an increase in sales each year.

budgeT

Full Advertising Budget: $7,019,775

Component % of budget $ amount

Promotions 7% $491, 284

Ad (print) 10% $701,977

Ad (television) 40% $2,807,910

Events 15% $1,052,996

New Media 10% $701,977

Public Relations 3% $210,593

Out of Home 15% $1,052,996

Diagram 5.2 Media Expenditure Percentages

Diagram 5.1 Budget Distribution in dollars and percentages

Fiat & Chrysler Group sales plans


CoMMunICATIon objECTIvES

CommuniCaTion objeCTives

There are 33,400,000 potential consumers in the united states.

1) Awarenessof these 33,400,000 potential consumers, Fiat’s goal will be to reach 70% of them, or 23,380,000.

2) Interestof the 23,380,000 would are aware of the brand, Fiat will aim to make 30% of them interested in the product, or 7,014,000.

3) evaluationof the 7,014,000, Fiat’s goal will be to have 15% of them reach the evaluation stage, or 1,052,100.

4) Trialof the 1,052,100, Fiat’s goal will be to have 9% of them try out the car, or 94,689.

5) AdoptionIf 20% of the 94,689 test out the car and decide to buy the 500l, Fiat will reach their goal of selling 20,000 units.

Diagram 5.3 Budget distribution over months in 2013

Potential Consumers33,400,000

Awareness/Reach23,380,000

Interest7,014,000

Evaluation1,052,100

Trial94,689

Purchase19,499

70%

30%

15%

9%

20%

Diagram 5.1 communication objectives fl ow chart


Theme: Promoting the Italian StyleFiat owns maserati, Alfa romeo, Ferrari and a compilation of other Italian brands that people are familiar with. The exotic nature of the Italian car, such as the Ferrari and the other cars, is what we’re going to sell. we’re going for high-end in a little package.

IMC Elements:Promotions: Test Drive/Trial (7%= $491,284.25)To encourage consumers to actually sit behind the seat of our vehicle, we will offer a $10 gift card for test driving the Fiat 500l.

Advertising: Awareness [Print /TV ] (see Appendix A)Print (10% = $701,977)print advertisements featuring the Fiat 500l will appear in 5 spe-cific periodical types: automotive, men, general editorial, sports, and news and editorial weeklies. The new York Times will run a weekly ad in the sunday edition under the general information section. since this is only to gain awareness, only 10% of the budget was allocated to print.

Television (40% = $2,807,910)Commercial spots featuring the 500l will appear throughout pro-fessional sporting events on the weekends as well as special profes-sional sporting events. Due to high costs of buying spots and creating television ads, 40% of the overall budget was designated to television. other appearances will be during late night televi-sion on weekdays. According to the mrI report, these day parts and show types are the most watched among our target audience offering the best reach through television.

Events: Awareness/Trial (15%=$1,052,996.25)To raise awareness for the Fiat 500l, Fiat will sponsor major sporting events such as the super bowl.

New Media [Digital]: Awareness/Interest/Evaluations (10%=$701,977.50)since our targets are internet heavy users, pop-up ads and banner ads will have a major effect in raising awareness for the Fiat 500l. Fiat 500l online ads will be placed on websites, such as YouTube, Yahoo or other news sites. Facebook is now a useful tool for con-sumer and brand interaction. In order to gain interest in the 500l, we will post news items on the Fiat Facebook page constantly, al-lowing our fans to get an inside look at the Fiat 500l. one of the benefits of online ads is that it is possible to change the creative and placements through time. Therefore, having evaluation on Fiat’s website is very helpful in terms of gaining feedback on our ads and seeing how people feel about the 500l. The large amount allocated to new media will cover costs to completely take over targeted websites with Fiat ads.

Public Relations: Interest (3%=$210,593.25)To gain more positive images and awareness, we will hold differ-ent events in urban cities to promote the Fiat 500l. These events include test driving, raffles and contests. In addition, we will invite journalists to come to a test drive event and encourage them to write positive articles about the Fiat 500l before the official release date. roughly 3% of the budget will be necessary to host this event.

Out of Home: Awareness (15%=$1,052,996.25)we will use billboard, transit, and alternative advertising as our secondary medium to gain more awareness. billboards offer a way to achieve wide exposure and, when combined with special light-ing and other technology features, are quite effective at gaining attention. Transit advertising is an ideal way to attract our target market who lives and work in metropolitan areas. Also, it offers an repetitive message exposure. lastly, alternative advertising attracts our target consumer in places they may not expect our advertise-ment would appear. To ensure that the ads remain long enough and are located everywhere, 15% of the budget was designated to transportation.

IMC STRATEgY

imC sTraTegy


For the campaign of the Fiat 500l, we have chosen to follow a pulsing schedule when scheduling the various media. pulsing is the idea schedule due to many factors. while cars are sold all year long, there are periods where consumers are more likely to pur-chase cars than others. In addition, competitors normally have great bargains that would hurt Fiat sales if Fiat promotions are not run at the same time. since the Fiat 500l is a new product, the word needs to spread, which means it needs to be constantly advertised throughout the entire year. pulsing strategy allows Fiat to continue advertising all year, but leaves room for higher periods of advertising than others, it is perfect for the campaign.

IMC Budget Breakdown

Advertising: Awareness [Print /TV ] (50% = $3,509,887)Print (10% = $701,977)specifi c titles are Car and Driver, road & Track, maxim, motor Trend, Consumer reports, rolling stone, espn, Time, sports Illustrated, men’s health, people, and the sunday edition of the new York Times. Full page ads will run in Car and Driver monthly as well as other titles but some will run just one ad in peak advertising months. The new York Times will run a weekly ad in the sunday edition under the general information section during peak advertising periods.

below is a snapshot of spending per vehicle in the print category.

Television (40% = 2,807,910)As a sponsor of super bowl XlvII (see events), the Fiat 500l will be featured in short spots during the pre-game report. The Fiat 500l will also appear in spots throughout the baseball playoffs and world series. Jimmy Kimmel live and saturday night live will be the primary late-night shows that will feature the 500l commercial spots.

- lATe nIghT TelevIsIon spoTs run AbouT $35,0004 so we plAn To spenD

AbouT $120,000 on The proDuCTIon CosT oF A 90 seConD CommerCIAl

ThAT CAn run mulTIple TImes AnD be CuT vArIous wAYs To mAXImIze eF-

FICIenCY oF The spoT. These spoTs wIll run In vArIous TImes Through-

ouT The speCIFIeD lATe nIghT shows.

- A speCIAl 2 mInuTe CommerCIAl wIll be proDuCeD For The superbowl

sponsorshIp ThIs wIll be A $1.5 mIllIon eFForT.

- spoTs wIll plAY DurIng The nbA plAYoFFs In lATe AprIl.

- spoTs wIll plAY DurIng The FInAl gAmes oF The mlb seAson In sepTem-

ber AnD InTo oCTober wITh The worlD serIes.

imC sTraTegy breakdown

IMC CoMPonEnT bREAkdoWn

Magazine Frequency Ad Specs Cost per rating Unit Cost (approx) Total Cost (approx)

Car and Driver 12 full page color $0.10 $17,250 $207,000

maxim 12 1/2 page color $0.06 $10,333 $124,000

espn 12 1/2 page color $0.06 $9,350 $112,200

TIme 52 1/2 page color $0.07 $4,615 $240,000Diagram 8.1 Print media spending


IMC CoMPonEnT bREAkdoWn

Promotions: Test Drive/Trial (7%= $491,284.25)To encourage consumers to actually sit behind the seat of our vehicle, we will offer a $10 gift card for test driving the Fiat 500l. This incentive will entice our target audience, who might need an extra push to motivate them further to buy the car. The allocated portion of $491,284.25 should cover the expenses to provide enough gift cards to test drivers who have a copy of the promo-tion. Assuming we need 40,000 people to test drive x $10 per gift card, that leaves $91,284.25 to cover mailing expenses. The main pushes for test driving will occur in January, may, september and December, allowing us to hit every main car sales event during the year.

Events: Awareness/Trial (15%=$1,052,996.25)To raise awareness for the Fiat 500l, Fiat will sponsor major sporting events. The target demographic tends to follow sports in one way or another, so by sponsoring sporting events, we should reach a decent amount of people. mrI data (appendix A) sug-gests the best sport to sponsor is football. since this is a highly competitive American sport, 15% of the overall budget will be designated to becoming a sponsor of the super bowl. According to mrI+ data, there are over 100,000 men who regularly watch the super bowl, with around 35,000 of them falling within our target demographic.

New Media [Digital]: Awareness/Interest/Evaluations (10%=$701,977.50)In terms of promoting the new Fiat 500l, we will focus on 3 methods of online advertising strategies to raise awareness and gain interest on the 500l. First is to utilize search engine market-ing (sem). As a core element of an online marketing strategy, sem is high on response, and because it is response-oriented, sem is better at targeting audiences. our budget will set at $18,000 for paid search each month on various search engines like google, Yahoo and bing.

second is Display/banner on websites. we will place 300x250 (75,000 pixels) banner ad on target websites. It cost anywhere around $10-30 per thousand impressions.2 our budget will set at $10,000 per month. Third is media buying, since it is the most expensive spot in online advertising, we will spend approximately $25,000 each month to have Fiat 500l advertised on high traffic websites such as YouTube, Cnn, espn, etc.

social media are also utilized in engaging with our fans, gaining feedback and increasing sales. Fiat will have Facebook fanpage and Twitter account available for our fans, and we will also put ads and sponsor stories on Facebook during launching. The cost is based on numbers of impressions (Cpm). our budget will set at $5,000 during sales season.

Public Relations (3%=$210,593.25)

Activity New Year in a FIAT Mother Knows Best Father Knows Best Journalist Reviews

Where los Angeles nYC las vegas los Angeles

When 1/1/2013 5/12/2013 6/16/2013 11/28/201312/3/2013

What test drives, contests, raffles

test drives, contests, raffles

test drives presentations, test drives

Cost $60,000 $60,000 $50,000 $40,000Diagram 8.3 Snapshot of public relations events

Number of Television Spots per MOnth

Month Jan. Feb. Mar. Apr. May June

# of spots 4 4 2 4 2 2

Cost per mo. $330,342 $330,342 $165,171 $330,342 $165,171 $165,171

Month July Aug. Sept. Oct. Nov. Dec.

# of spots 2 2 4 4 2 2

Cost per mo. $165,171 $165,171 $330,342 $330,342 $165,171 $165,171Diagram 8.2 Cost per unit = $82,585


IMC STRATEgY bREAkdoWn

New Year in a FIATThis promotion includes test drives, contests and raffles. since, this is the first Fiat promotional event, our estimated budget is to be 60,000 dollars including rental equipment, location, services, etc. The reason Fiat will hold their first event during new years is because many families are going to shopping, dining out, vaca-tions, etc. This is a good opportunity for Fiat to gain awareness and attract more people to know the brand.

Mother Knows BestThis promotion is same as the first one that includes test drives, contests and raffles. The estimated budget is also 60,000, despite that new York City is an expensive location. The budget will cover rental equipments, locations, services just like the first one. since, it’s mother’s day many fathers, daughters and sons will take their moms to shop and dine out. mother’s day is a good chance to advertise the 500l to the target market.

Father Knows BestThis event is focused on test drives only because las vegas is a place where people want to have fun and experience new things. The budget is estimated to be $50,000. That covers rentals, loca-

tions and equipment. Father’s day is a perfect time to promote the sport side of Fiat and let our target market experience a compact b-segment car can be as sporty as the bmw 128i sedan.

Journalist PreviewsThe fourth and fifth event will be held before the release date of Fiat 500l. In these two events we will invite journalists come to a Fiat dealership in los Angeles to the Auto show for a test drive and answer all the questions they may have. Also, we will give a presentation to them explaining the benefits, features, safety and current incentives of the Fiat 500l. The cost of this two events are around $40,000.

Out of Home (15%=$1,052,996.25)Fiat will spend 9% ($631,780) of the budget allowed on bill-board and 3% ($210,593.25) on transit and 3% ($210,593.25) on alternative advertising. we will use the same amount of transit advertising each month according to the budget. Finally, we will use alternative advertising monthly that is allowed by the budget. each gas pump ad is $25 to $75 per month8 and different mall ads are range from $75 to 10,000.9

Out of Home Schedule

Type Location Cost #, When

Billboard lA, Chicago, miami, nYC, san Francisco, houston, Dallas, phoenix, Atlanta, philadelphia, DC, boston

$25,000 - $30,000/mo. 5-7 in Jan, Feb, may, June, Dec2-3 in remaining months

Mall lA, Chicago, miami, nYC, san Francisco, houston, Dallas, phoenix, Atlanta, philadelphia, DC, boston

$75-$10,000/mo. 5-7 in Jan, Feb, may, June, Dec2-3 in remaining months

Taxi las vegas, nYC, lA $200 - $500/mo. 5-10/city monthly

Bus las vegas, nYC, lA $150 - $4,500/mo. 5-10/city monthly

Airport Detroit, lA, Chicago, nY, Atlanta

$1,500 - $14,500/mo. 5-7 in Jan, Feb, may, June, Dec2-3 in remaining months

Gas Pump lA, Chicago, miami, nYC, san Francisco, houston, Dallas, phoenix, Atlanta, philadelphia, DC, boston

$25 - $75/mo. 25-50/city monthly

Diagram 8.4 Nearby suburbs of these major cities will also feature the out-of-home advertising specified.

FIAT. Be More.

An Italian Fit For All.

All that...AND an espresso machine.

With 14.1 cubic feet of cargo space the entirely new FIAT 500L bests the Mini Cooper Countryman by almost two cubic feet. Visit www.fiatusa.com to customize your Italian coach.


Tagline: bE MoRE.slogan: ThE ITAlIAn fIT foR All

CREATIvE PRoPoSAl

CreaTive ProPosal

Above: half page color print ad

OverviewThe FIAT 500 is the second model to arrive in the united states from the Italian automaker. It is larger, more spacious, yet still small enough to be an efficient vehicle with both gas mileage and exterior dimension. It can fit in small spaces in the city or subur-bia. It can haul everything a small family needs. It is cool enough to sponsor the 2013 superbowl. It even comes with a built-in espresso machine. with that, this FIAT is The Italian Fit For All. Be More.


CREATIvE PRoPoSAl: PRInT MEdIA

FIAT. Be More.An Italian Fit For All

The entirely new 2013 FIAT 500L. With the same Italian style and appeal as its little sibling, this all new coach provides more room while retaining a compact exterior.

Perfect for hauling family, friends, pets, and cargo while

allowing that one space left at the mall to be occupied...by you.

It’s alright. You won’t need that full space anyway.

FIAT 500L: Ample room starting at $20,999*

*MSRP excludes destination and delivery charges, tax, title and registration fees. Dealer sets actual price.

Above: full page color print ad


CREATIvE PRoPoSAl: TElEvISIon


CREATIvE PRoPoSAl: SPonSoRShIP

Events promotion - Superbowl XLVII sponsorship


CREATIvE PRoPoSAl: PRoMoTIonS

Test Drive Promotion


CREATIvE PRoPoSAl: nEW MEdIA

Facebook promotion

Internet Banner Ad

Search Engine Marketing


CREATIvE PRoPoSAl: ouT of hoME

Bus Shelter Ad

Transit Ad

Billboard Ad

The Italian Fit For All.


Situation Analysis1. http://www.fiatusa.com/en/about_us.html2. http://www.fiat500usa.com/2011/08/inside-fiat-500-marketing-campaign.html3. http://www.bloomberg.com/news/2012-03-15/u-s-auto-dealers-who-survived-debacle-see-record-sales.html4. http://www.fiat500usa.com/search/label/Fiat%20Sales5. http://www.npr.org/2012/01/04/144335485/fiats-first-year-back-in-the-u-s-marred-by-missteps6. http://content.usatoday.com/communities/driveon/post/2012/05/chrysler-general-motors-ford-april-sales-up/1#.UFYPDaMtnYQ7. http://www.fiat.com/cgi-bin/pbrand.dll/FIAT_COM/fbrand/fbrand.jsp?BV_SessionID=@@@@1600458139.1347851577@@@@&BV_EngineID=ccciadfhklhgmkkcefecejgdfkhdfji.0&categoryOID=-10737629678. http://adage.com/article/news/francois-fights-fiat-fiasco/230033/?page=29. http://adage.com/article/adages/fiat-500-spot-features-a-baby-playing-super-bowl-spot/233317/10. http://adage.com/article/adages/fiat-enlists-ultimate-bad-boy-ads-charlie-sheen/233045/11. http://www.rc.edu/wp-content/uploads/2011/07/2012-Ent.-Media_Adv-Mkt-Resrch-Handbook.pdf12. http://adage.com/article/news/advertising-age-100-leading-national-advertisers/235573/13. http://www.conceptcarz.com/z21130/Fiat-500L.aspx

Competition Analysis1. http://www.automobilemag.com/reviews/editors_notebook/1105_2011_scion_xb/2. http://online.wsj.com/mdc/public/page/2_3022-autosales.html#autosalesE3. http://www.consumerreports.org/cro/cars/new-cars/cr-recommended/best-in-cargo-capacity-fuel-economy-1205-fuel-economy-cargo-haul/index.htm4. http://editorial.autos.msn.com/listarticle.aspx?cp-documentid=11091275. http://www.autoblog.com/2012/03/06/2012-fiat-500l-geneva-2012/6. http://www.caranddriver.com/news/2014-fiat-500l-news7. http://www.miniusa.com/#/learn/FACTS_FEATURES_SPECS/Top_Features-m8. Standard & Poor’s Industry Surveys, Autos and Auto Parts. June 21, 20129. Automotive News, Crain Communications Inc., July 9, 2012.

Consumer Analysis1. http://www.theatlanticcities.com/technology/2012/08/young-people-arent-buying-cars-because-theyre-buying-smart-phones-instead/2873/2. http://money.cnn.com/2012/09/17/news/economy/young-buying-cars/index.html3. http://www.theatlantic.com/business/archive/2012/03/why-dont-young-americans-buy-cars/255001/4. http://aftermarketerclub.com/blog/2010/11/the-top-three-customer-loyalty-trends-for-2011/5. http://www.forbes.com/sites/scottdavis/2011/10/31/mini-cooper-amazon-and-mcdonalds-are-customers-lovin-it/6. http://econsultancy.com/us/press-releases/5560-nissan-launches-you-nissan-care-its-new-customer-commitment

Collaborator Analysis1. http://www.motorauthority.com/news/1035799_chrysler-handling-distribution-of-fiat-500-in-u-s2. http://in.reuters.com/article/2012/09/26/fiat-chrysler-idINL5E8KQDEV201209263. http://www.caranddriver.com/news/fiat-and-chrysler-announce-strategic-alliance-car-news4. http://www.iol.co.za/motoring/cars/fiat/mazda-set-to-expand-fiat-partnership-1.13047835. http://www.adweek.com/news/advertising-branding/fiat-na-splits-impatto-1351366. http://adage.com/article/adages/fiat-enlists-ultimate-bad-boy-ads-charlie-sheen/233045/>7. http://www.fiat.com/cgi-bin/pbrand.dll/FIAT_COM/service/service.jsp?BV_SessionID=@@@@0282566851.1349033305@@@@&BV_EngineID=cccfadfhlkdkmgdcefecejgdfkhdfji.0&com.broadvision.session.new=Yes&Failed_Reason=Session+not+found&Failed_Page=%2fFIAT_COM%2fservice%2fservice.jsp8. http://www.fiatusa.com/hostc/fad/findDealers.do?zipCode=&dealerCode=&city=&state=&dealerName=9. http://www.fiatspa.com/en-US/sustainability/social_responsibility/concessionari/overview/Pages/default.aspx10. http://en.wikipedia.org/wiki/Fiat#Partnership_with_Mazda

P.E.S.T. Analysis1. http://search.autonews.com/v/64163268/sept-winners-losers-10-3-12.htm?q=september+winners2. http://www.theledger.com/article/20121004/NEWS/121009703?p=23. http://www.autonews.com/article/20120903/OEM01/309039979/14244. http://www.autonews.com/apps/pbcs.dll/article?AID=/20120709/RETAIL07/307099982/13065. http://www.cars.com/fiat/500/2012/recalls/6. http://www.nhtsa.gov/About+NHTSA/Press+Releases/2012/NHTSA+Announces+Model+Year+2013+Vehicles+to+be+Rated+Under+Government+5-Star+Safety+Ratings+Program7. http://www.sacbee.com/2011/06/15/3701396/california-democrats-ready-to.html8. http://www.ehow.com/about_6310175_california-auto-sales-tax-law.html9. http://www.automobilemag.com/features/news/1004_current_trends_in_small_cars/viewall.html

APPEndICES & REfEREnCES

aPPendiCes & referenCes



10. http://www.thejakartaglobe.com/blogs/appearance-power-or-fuel-efficiency-things-to-consider-before-buying-a-car/52862111. http://www.fiatusa.com/en/2013/50012.http://www.fiatusa.com/en/2013/500/13.http://www.fiatusa.com/en/2013/500/14.http://www.fiatusa.com/en/2013/500/lounge/15.http://www.fiatusa.com/en/2013/500/16. http://www.autoweek.com/article/20120420/CARNEWS/12042997017. http://www.autonews.com/apps/pbcs.dll/article?AID=/20121008/RETAIL07/310089991/how-tech-pitches-boost-service-plans18. http://www.mbusa.com/mercedes/mbrace19. http://www.edmunds.com/car-reviews/top-10/top-10-high-tech-car-safety-technologies.html

S.W.O.T. Analysis1. “Situation Analysis.” AE-86. Comm 451B. 17 September 2012. 10 October 2012.2. “Company Spotlight: Fiat.” Marketwatch: Automotive 12.8 (2012): 7-15. Business Source Premier. Web. 8 Oct. 2012.3. “Fiat S.P.A SWOT Analysis.” Fiat Spa SWOT Analysis (2012): 1-11. Business Source Premier. Web. 8 Oct. 2012.4. http://www.caradvice.com.au/61295/alfa-romeo-mito-gains-new-multijet-ii-diesel-in-uk-europe/5. http://news.consumerreports.org/cars/2011/11/recall-2012-fiat-500-and-dodge-journey-for-bad-brake-fluids.html6. http://news.consumerreports.org/cars/2012/02/sneak-peek-larger-five-door-2014-fiat-500l.html7. http://www.edmunds.com/fiat/8. Weissmann, Jordan. “Young People Aren’t Buying Cars Because They’re Buying Smart Phones Instead.” The Atlantic Cities. The Atlantic Media Company, 8 Aug. 2012. Web. 15 Oct. 2012.9. http://www.theatlanticcities.com/technology/2012/08/young-people-arent-buying-cars-because-theyre-buying-smart-phones-instead/2873/10. “Fiat S.P.A SWOT Analysis.” Fiat Spa SWOT Analysis (2012): P.11. Business Source Premier. Web. 14 Oct. 2012.11. “Fiat S.P.A SWOT Analysis.” Fiat Spa SWOT Analysis (2012): P.9. Business Source Premier. Web. 14 Oct. 2012.12. Fiat Air Technologies. Web. 14 Oct. 2012. <http://www.airtechnologies.fiat.com/default.aspx>13. http://www.slashgear.com/tomtom-provides-connected-navigation-system-for-fiat-500l-05237222/14. “Fiat S.P.A SWOT Analysis.” Fiat Spa SWOT Analysis (2012): P.9. Business Source Premier. Web. 14 Oct. 2012.

Positioning Statement1. Consumer Analysis2. http://ureporter.mriplusonline.com/selectdemo.asp3.http://www.thecarconnection.com/news/1077769_2013-fiat-500l-brews-controversy-with-in-car-espresso-maker4. http://www.fiatusa.com/en/lineup/5. http://www.economia.uniroma2.it/public/dsi/file/essays/DSI_Pattuglia.pdf6. http://timothyblotz.com/2012/03/20/fiats-branding-machine-what-are-you-looking-at/7. http://www.thecarconnection.com/news/1066355_2012-fiat-500c-commercial-starring-jennifer-lopez-explained8.


Sales Objective1. http://usnews.rankingsandreviews.com/cars-trucks/Fiat_500/2. http://www.fiat500usa.com/3. http://www.goodcarbadcar.net/2011/01/scion-xb-sales-figures.html4. http://www.goodcarbadcar.net/2011/01/kia-soul-sales-figures.html5. http://www.goodcarbadcar.net/2011/01/mini-countryman-sales-figures.html6. http://www.goodcarbadcar.net/2011/01/nissan-juke-sales-figures.html7. http://www.goodcarbadcar.net/2012/01/us-car-sales-december-2011-year-end.html8. Competition Analysis9. http://www.allpar.com/corporate/chrysler-group/five-year-plan.htm

IMC StrategyAppendix A: MRI Report on Print Media and Television for Target Market

IMC Component StrategiesA) MRI Database: People watching the Super Bowl

1. http://www.bluelinemedia.com/billboard-advertising2.http://www.promisemedia.com/online-advertising-strategies/online-rate-card-tips-and-guidelines3. http://www.timemediakit.com/us/rates-specs/national.html4. http://articles.latimes.com/2010/jan/25/business/la-fi-ct-latenight25-2010jan255. http://www.maximmediakit.com/print/specs/6. http://mediakit.espn.go.com/index.aspx?id=1737. http://www.bluelinemedia.com/transit-advertising8. http://www.bluelinemedia.com/gas-station-advertising9.http://www.bluelinemedia.com/mall-advertising


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FIAT 500L CAMPAIGN STRATEGY