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 ...