According to the Wall Street Journal, the amount of global automotive will have a 4% growth in 2014, while the American and European markets also have 3% growth in 2014 (2014). This means that the slow recovery of the global economy will drive the automotive consumer over global. With oil prices rising, more people are favoring economical vehicles, such as electric hybrid. Ford expects electric hybrid cars will occupy 20-30% of the car market next decade, therefore, Ford, Toyota, Ionians and other major car companies have launched their own electric hybrid car. SOOT Analysis Strengths.
Fiat has a long international history and presence. Fiat boasts an environmental consciousness that is ahead of its competitors such as CO emissions and the use of renewable energy in the manufacturing process (Fiat. Com, 2014). Weaknesses. A weakness may be the number of recalls on Fiat 500 in previous years resulting in a lack of trust in the brand. The global recession and decreased buying power of consumers may create a resistance to purchasing new automobiles. Opportunities. The Fiat name has been associated with Chrysler Group and it’s over- taking of the remaining equity in the Us-based company (Fiat. Com, 2014).
Socio 2014 has also been seen as a global marketing venue. Threats. Threats include the recovering auto industry in the United States with other international options for New Product Launch Marketing Plan, By Collaborating small, subcompact cars (that also touch on tulle efficiency). Potential Competition Luxury brands have entered the subcompact car market in Europe. Fiat’s price isn’t a match for the people who are willing to pay a little more for the name of a BMW or Audio (Automotive News Europe, 2013). Product Offering and Product Definition Fiat’s Panda Classic is available in 36 countries on four continents (Fiat. M). The Panda is a five door vehicle with climate control, extra storage and fuel economy. Multiple safety features are also included such as airbags, controlled crumple zones, and anti-whiplash head rests (Fiat. Com). Product Identification Fiat Panda. Justification Fiat’s Panda is one of the few models available in numerous countries, making a broader presence in the global market. The Panda is a smaller automobile, small enough to navigate tight cities streets yet roomy enough to transport families, friends and luggage. Domestic Faith 500 is a small European designed 2-door car.
Though the manufacturer has seen an increase in sales and overall profit, the brand has struggled in US markets. This is due to a disconnect between the brand and the American car market. The organization attempted to win over the American consumer with targeted commercial campaigns featuring Charlie Sheen, which were successful. The Fiat brand does have a market for “inexpensive, fun to drive small cars, with room for four adults” however, the core issue of the brand lies with space; “there isn’t enough passenger or cargo volume in the standard 500 for it to have mass appeal here” (2013).
In order to appease this market the organization is launching the Faith LULL in the summer of 2014. The newer model has 40% more space than the previous model. SOOT Analysis Strengths. This Italian company was founded in 1899 (Fiat Nation, 2014). Fiat brand cars, specifically the Fiat 500, have been sold in over 100 countries (Fiat Nation, 2014). The conservative design equates to modest fuel economy (KGB. Com Editors, 2012). Weaknesses. This small car has limited seating and cargo capacity. Persons who live outside of the city or have larger families may not find this car useful.
If the body sign doesn’t satisfy the customer, other competitors such as Honda Fit or Ford Fiesta offer more room and styles (KGB. Com Editors, 2012). Opportunities. With the growing trend of fuel-efficient sub-compact vehicles, Fiat may have arrived to the domestic market Just in time. Threats. Numerous other sub-compact cars are also on the market and may provide significant savings or advantages based on what the consumer favors. In addition, a recent crash test study by the Insurance Institute for Highway Safety listed Fiat as one of the makes that did not fare well in crash tests (Hirsch, 2014).
Potential Competition The domestic market is ripe with potential competitors. According to Fiat’s website, the primary competitors include the Kea Soul, Ionians Cube, Scion CB, Honda Fit, Mini Cooper, and Ford Fiesta. Product Offering and Product Definition The 2014 Fiat LULL has a starting price of $19,100; with four well-equipped models adding two more doors plus best-in-class interior volume. With 120. 1 cubic feet it provides tort comfortable accommodations tort dive passengers.