Marketing of Fiat Company Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Marketing planning of Fiat Company. Answer: Introduction Marketingplanning involves deciding on themarketing strategies that the firm will use to help it to attain its overall strategic objectives (Kotler and Armstrong, 2010). Through strategic planning, the firm is in a better position to decide what it wants to do with each business strategy so that overall goals and objectives are achieved in its operations. The business will be able to launch a new product or build sales for the existing product. As such, this marketing plan outlines the strategies that can be adopted by Fiat, an Italian automobile manufacturer operating in Brazil. The marketing plan covers the following aspects: marketing analysis, competitive analysis, brand analysis, objectives and goals as well as marketing mix analysis. This plan outlines the steps that can be taken by the company in order to increase its car sales in Brazil. Marketing/Industry Analysis The major notable aspect about the automobile industry in Brazil is that the market is significantly growing as the customers now have access to loans from different financial institutions in order to buy cars (The Brazil Business, 2017). The car market is a growing sector in Brazil, as credit has become more available for consumers who want to buy a car. This makes Brazil the 4th best-selling car nation and this has influenced different companies to bring their products to the country. The market is attractive for the automobile manufacturers since it is comprised by quite a number of potential customers who can buy the vehicles offered by Fiat in this particular case. The other aspect about the automobile industry in Brazil is that it heavily relies on imports despite the fact that it has the largest industry in Latin America (The Brazil Business, 2017). On the other hand, it can also be noted that the cars in Brazil are generally expensive compared to North America and this has an impact on the buying potential of the customers. On top of this, the automobile industry in Brazil has been affected by poor performance of the economy. For instance, in 2015, the sales of cars, buses, heavy and light trucks were 2,570,000 units and this represented a decline of 26.7% as compared to the previous year 2014 (The International Trade Association (2016). This trend is likely to continue like that which calls for holistic measures by Fiat Company to boost its car sales. This can be achieved through continuous research about the needs and interests of the consumers so that the company can design its brand in such a way that it can appeal to the interests of many people. The company can customize its vehicles such that they can satisfy the needs of the customers. It is also important for the company to conduct research about the operations of the other competitors so that it can implement better strategies that gives it competitive advantage over them. It is important for the company to be proactive by scanning the environment and making contingent plans that can be implemented in case change is required in its operations. The environment in which Fiat operates is dynamic hence the need for Fiat to constantly improve its operations so that it keeps pace with all the changes that may take place within it. Competitive Analysis Fiat is the best-selling automobile brand in Brazil since the company records high sales volumes annually (The Brazil Business, 2017). This simply means that the company does not operate in isolation since there are other actors in the automobile industry. In order to plan effective marketing strategies, it is imperative for the firm to find out what it can do about its competitors so that it can gain competitive advantage over them (Strydom, 2006). The automobile industry in Brazil is comprised of more than 20 competitors and some of them include the following: Chevrolet, Hyundai, Toyota, Ford, Nissan, Renault, BMW as well as Mercedes Benz among other top automobile brands (The Brazil Business, 2017). Identifying the firms competitors is very important since it helps the firm to have knowledge about other actors in the automobile industry. This stage should never be taken for granted since it gives the company some form of guidance in formulating its business strategies that can hel p it to gain competitive advantage. The next stage in conducting competitor analysis is that company should then put measures in place that enables it to assess the objectives, strategies, strengths and weaknesses of the competitors as well as the reaction patterns (Kotler and Armstrong, 2010). The marketing managers at Fiat Company need to gain understanding of their competitors objectives as well as philosophy of doing business so that they can anticipate their reaction to different changes that can take place in the environment in which it operates. The other issue that should be taken into consideration by Fiat Company is that it should gather as much information as possible about the weaknesses and strengths of the competitors so that it can formulate strategies that give it competitive edge over them. It is also important for the company to select the companies to attack using the knowledge about their weaknesses as well as strengths. The company can also consider the strategy of offering vehicles that save fuels and that are also environmental friendly. This is likely to boost its sales since the vehicles offered will appeal to the interests of many people. The other plan that should be adopted by fiat is to review the price of its vehicles downwards so that it can be in a position to attract many buyers. This strategy is known as overall cost leadership where the company strives to achieve lower production and distribution costs which ultimately lead to lower prices of the final products offered in the market (Cant, 2007). The other strategy that should be adopted by Fiat Company pertains to product leadership where it strives to provide superior value by offering continuous stream of leading edge products and services (Kotler and Keller, 2006). The marketing leaders should also be open to new ideas and work towards new solutions so as to be in a better position to attract many customers as well as to create loy alty among the already existing consumers. These strategies help the company to gain a large market share. Customer Analysis Fiat offers different types of vehicles including small cars, light and heavy trucks to different customers in the market. However, it can be seen that there are quite a number of attributes that are sought by the customers when they make decisions to purchase the different types of vehicles offered by the firm. The following plans should be considered by Fiat Company in its operations so that it can gain a large market share. According to Cant (2006), the customers are attracted to the product by various attributes hence the need to conduct what is termed customer value analysis in order for the marketers to gain understanding of what the consumers really want. This type of analysis focuses on what benefits the target customers value and how they rate the relative value of various competitors offers (Kotler and Armstrong, 2010). In this case, Fiat Company should continuously identify the values that are of interest to the targeted customers so that it can be able to modify them in such a way that they continue to attract them. Consistency in upholding customer value will significantly help the company to create loyalty among the consumers. The other issue is that the company should put measures in place that enables it to assess the performance of the competitors on the identified attributes that are valued by the consumers. In this case, the company should focus on attributes such as efficiency as well a s environmental friendliness of the cars offered to different customers since these are more valued by the customers than any other factors. In order to carefully analyse the customer base, it is essential for Fiat Company to conduct market segmentation on the basis of different factors. Basically, market segmentation involves the division of customers on the basis of their interests towards a particular product or service (Cant, 2007). The company should target the customers on the basis of their level of income since it has been observed that Brazils economic performance has a bearing on their buying behaviour of different cars. The company should focus on selling small cars that are efficient and environmental friendly since these are easy to maintain. It is also important to take into consideration the factors such as benefits that are likely to be obtained by the customers from purchasing the vehicles offered by the company. When the marketers know the customer preferences, they are then in a position to design their marketing strategies in such a way that they will appeal to the interests of many people. Brand Analysis A brand is a term or symbol that identifies the product or services of the seller and differentiates them from those of the competitors (Kotler and Armstrong, 2010). In most cases, the consumers view a brand as the most important part of the product and it helps to give value to it. The other element is that branding helps the customers to identify with the product and they expect to get the features what they desire from it. For instance, Fiat brand is comprised of different vehicles such as Punto as well as Fiat 500e, X and L series. This brand stands for legacy and discovery and it also helps people to be in charge of their own destiny (Fiat, 2017). Therefore, effort should be made to ensure that the brand is constantly improved in order to give the consumers maximum satisfaction from using. Engine performance should be constantly improved as the consumers seek to define their destiny through the use of this brand. The company should also ensure that brand visibility is enhanced through constant improvement of various design features of the vehicles offered to different clients. The vehicle should look attractive to the potential buyers so that they can make informed decisions to purchase it. The marketers should conduct research in order to gather the views of the customers so that they can relay them to the manufacturers for consideration when they produce other vehicles. This will help the company to improve the appearance of the vehicles and they are likely to be appreciated by many people which will help it to generate more sales. In the long run, the company will be able to gain large market share over the other competitors in the automobile industry. The company should also utilise effective advertising to enhance brand visibility so that many customers can gain awareness of its existence. Whilst it is important for the company to use conventional forms of advertising such as print and electronic media, it is important for it to harness the use of outdoor advertising since this enhances brand visibility. The company should use billboards that are erected along major highways in the country as well as other busy and strategic locations like garages to increase Fiats brand visibility to different potential customers. This significantly helps the customers to identify with the brand and they are constantly reminded about it as they always see it in different places while performing other errands. Objective and Goals Objectives and goals are usually set in order to determine what the company really wants to achieve in its operations (Strydom, 2006). As such, Fiat should put measures in place in order to achieve certain objectives that can help it to gain a large market share against the background of many competitors operating in the same industry. Thus, the major objective is for the company to increase its sales of motor vehicles to different customers. For instance, the total sales of vehicles by all automobile marketers in Brazil represented a decline of 26.7% as compared to the previous year 2014 (The International Trade Association (2016). This implies that Fiats sales were also not spared from this negative development in the market. As such, it should put measures in place to increase the sales of its vehicles by about 19 % in order to offset the negative sales that have been witnessed in recent years. This can only be possible if the company puts measures in place to attract the customers so that they can buy its model brand. This will help to boost the sales of different vehicles to the targeted customers which also helps the company to generate more revenue in its operations. This will also improve its viability and sustainability in the long run. Customer retention strategies should also be implemented through offering product support services. When the customers have bought the vehicles offered by Fiat, the company should have a responsibility to offer follow up services to retain them. For example, Fiat holds regular telephonic interviews with owners and also receives different views from the buyers about what they expect from the company. This goes along with the aspect of creating loyalty among the targeted customers. This is the objective that should be considered by the company where it can implement loyalty programs so as to be in a position to create mutual trust with the customers. These programs can include free vehicle services to the customers that are deemed as loyal to the organisation. This strategy can also help the customers to attract other potential buyers which help the company to gain competitive advantage over other rival players in the sector. Marketing Mix Analysis Marketing mix involves the use of the following elements: product, price, place as well as promotion to design strategies that can be used by the company to attract customers for its offerings (Strydom, 2006). Fiat company should make concerted efforts to make sure that the product is designed in such a way that it appeals to the interests of the targeted customers. In other words, the company should strive to make sure that customer satisfaction is achieved from its operations. Product value should be enhanced so as to help the customers to identify with the product. In most cases, the targeted consumers are influenced to make decisions to buy a particular product as a result of its price. It is therefore imperative for Fiat Company to ensure that the prices of the vehicles offered to the customers in Brazil are reasonable and affordable. It is important for the company to make sure that the customers derive value for money by paying fair prices while at the same time deriving value from the vehicles purchased. The element of place is also very important in determining the marketing mix of the product offered by the company. In this particular case, it is imperative for Fiat Company to make sure that the vehicles it offers are readily available in the market. The customers usually do not enjoy a situation whereby they face numerous challenges to access a particular product in the market since this can deter them from purchasing it. The company should open distribution centers in major strategic places that can be easily accessed by many people. The element of promotion is also very important for the company since this can positively influence the customers to buy the vehicles it offers. Different forms of advertising should be utilised by the company in order to reach many customers as well as to raise their awareness about the brand offered by the company. The other promotional strategy is to offer price discounts on selected brands so as to attract new buyers. This will help the company t o gain competitive advantage since it can generate more revenue from increased sales of the products offered. Overall, this is one of the major objectives of the company to increase its sales following a recent decline that has been attributed to poor economic conditions obtaining in Brazil over the past three years. Conclusion In conclusion, it can be observed that Fiat Company needs to implement an effective marketing plan in a bid to increase its car sales in Brazil which have been affected by the recent negative performance of the countrys economy. As noted, the automobile industry in Brazil is characterised by competition since there are also other players with similar offerings. The other issue is that since the competitors are varied, it is imperative for the company to segment the market on the basis psychographic as well as income level factors since these mainly influence the buying behaviour of the consumers especially for products like cars. Effort should also be made to implement loyalty programs that are meant to retain the customers. This gives the company competitive advantage such that it can be in a better position to grab a large market share in this particular sector. Above all, the marketers within the company should take steps to constantly conduct market research so that they are awar e of the needs of the customers in order to design suitable products. References Cant, J. (2000), Introduction to marketing, CT: JUTA Fiat 2017. Official website. https://fiat.com/ Fiat 2017. Fiat our Legacy. https://www.fiatusa.com/en/fiat-nation/fiat-history/ Kotler, P. Armstrong, G. (2010). Principles of marketing. Cape Town, CT: Pearson. Kotler, P. Keller, K.L. (2006). Marketing Management, 12th Edition. Upper Saddle River, NJ: Prentice Hall. Strydom, J. (2006). Marketing principles. CT: JUTA. The Brazil Business 2017, Top 20 Brazil car Brands. https://thebrazilbusiness.com/article/top-20-car-brands-in-brazil The International Trade Association, 2016. Brazil Automotive Industry. https://www.export.gov/article?id=Brazil-Automotive-Industry