Fiat 500 by Diesel - Essay Example

Topic: Fiat 500 by Diesel FIAT 500 BY DIESEL Fiat is a multinational car manufacturer corporation that operates in 61 countries employing over 223000 people in charged with a mission of manufacturing both commercial and non-commercial automobiles. One of the divisions manufactures small economical, colorful car which traces its history back in 1930sknown as Fiat500. 1.1. Current Product The current product of fiat is The New Special Fiat 500 by Diesel which has been manufactured in, Sydney, Australia; Berlin, Germany and other major cities in Europe. According to their press release 2010, the car is special and has been designed using blue-sky technology added on to its features as illustrated in the Table1.In this model, consumers derive performance, status and approval due to its stylish trend, special features in the interior design, spacious boot at the rear which can accommodate bulky loads and a new sophisticated engine that is powerful and can race more kilometers without a stop-over. The car is small, economical in fuel consumption which implies that it is cost saving which places the consumer at a better purchasing power. It is also fun to drive, the car having being made mainly for youth city dwellers that are affluent and who need better fashionable designs. The product has a wide variety of attributes, like for instance, new midnight indigo blue colour; a set of aggressive 16 inch alloys wheels; imitation air intake integrated into the rear hatch opposite one of the most famous logos of Italian fashion; the yellow brake clippers for the 1.4 liter version making 100 HP and quite a few satin chrome painted features, including the moldings which evoke the atmosphere of diesel fashion world. The new special model offers a wide variety of additional products, mainly consumers, known as Fiat 500 Accessories that consists of graphics and badges for consumers to choose from. They include a wide variety of badges that are offered in affordable prices, a psychological make-up that could show that this class of consumers is loyal to their country as well as to fiat products. It also offers mats and mudflaps for consumers to ensure the car remains clean, as it is driven by a higher richer city dwellers youth. It also accompanies multiple services amongst which include car care services, safety instructions and other merchandise services to satisfy the consumers. The New Fiat 500 by Diesel has a depth of product lines, currently featuring five models in European markets: punto Evo model, panda model, bravo model, Doblo model and Qubo model.2 The consumers are willing to willing to spend some time looking for the car due to its excellent features that has made it popular, environmentally- friendly and fuel- saving. Its power unit, the 0.9-litre Twin Air is a unique engine that has won international standards and is currently the engine of the year in the latest awards (The 2011 GreenFleet awards City car manufacturer of the year)3. 1.2. Current Pricing The current pricing strategy is competitive and affordable (ranging from ?11600 to ?15500). The consumers are willing to spend some time looking for the car due to its brilliant features highlighted above: environmentally- pleasant and fuel-saving. This is mainly attributable to its class of consumers, mainly the rich city dwellers youth who do not care much about price. The product is in a competitive market position as other car manufactures also exhibit high sophisticated technologies and produce at low costs. However, Fiat group, the car manufacture division has excellent models for the rich and higher social class who will not care much about the price due to their higher incomes and quest for recognition in society. The fiat 500 by Diesel model is a luxurious good, and as such, the rises in prices or even if prices are higher than the competitor’s, it does not reduce demand but instead it increases it as consumers care more about recognition and admiration than prices from their fellow low-class consumers who utilizes products from other similar firms in the same automobile industry4. This class of consumers do not base their purchasing decisions on price but rather fashion, performance, colour (aesthetics) and quality. This is attributed in the product development strategies of engine improvements, spacious interior designs, flexible roof that can be opened to regulate air conditions, assertive and sporty appearance, enhanced black alloy wheels, barnished metal effects on dashboard and excellent front t and rear moldings amongst other remarkable features. In addition to these remarkable qualities, its acceleration can be attained in a short period among many features. During product design, the costs are of the essence as they determine how many profits to be realized from the sales. They can incur marginal costs even higher than the current average costs by other firms since they know their targeted consumers. 1.3. Current Distribution The current New Fiat 500 by diesel is limited in supply only just 10,000 units have been designed and produced. The reason is that this model was created as an alternative for young brand lovers aimed at expressing personality, an urban survival vehicle meant to deal with traffic jams in cities. The Fiat 500 by Diesel is found in more than 61 countries in various markets majorly cities- , Australia, UK, Italy, Germany, Poland, France and American markets (US, Canada among others).According to the Fiat Gallery press release, it is noted that consumers can order a car directly from the manufactures’ plant which saves costs of a longer chain of distribution channel. The new model has remarkable features that attract and retain this high class of customers in the market. First, it has a 16-inch alloy wheels with diesel logos, brake calipers painted yellow which makes it colorful and attractive and a unique side trim with the words ‘DIESEL’ besides a special mirror faring. Second, the models have sophisticated engines (the 69bhp 1.2 unit, 75bhp 1.3 multijet unit with DPF and a 100 bhp with 1.4 16v unit).Third, it has a dressed up interior with wording ‘DIESEL’ neatly decorated on its seats. This makes the car show status symbol for the consumers and the manufactures. All this attributes have affected the manner in which it is distributed around the globe5. 1.4. Current Promotion Fiat group has a well and organized `marketing communication mix (promotional mix) strategies aimed at creating awareness for their product in the market, increasing sales volume for a value and grow and survive in a tightly competitive business world characterized by high quality, low-cost products that exhibit shorter product cycles, speed and customer excellence orientations. This Fiat 500 by diesel consists of the following promotional mix. First, there is advertising which comes in print, broadcast, internet, outdoor forms among others. Fiat 500 by diesel is been heavily advertised in a German language edition, where the image of the model is positioned at the centre and a man dressed in black suits sitting at the floor of the garage looking intently at what appears to broken glass and spilled milk. There is also a woman at the driver’s seat that seems to be looking at the milk. The word ‘diesel’ is at the right site of the website suggesting that this brand uses diesel.6 Second, Fiat 500 by Diesel employs various sales promotional tools like showrooms, premiums, discounts, coupons, speciality advertising and demonstrations, for instance, recently, the fiat500 by diesel was been advertised in Germany, Italy and in UK in trade shows and other customer-focused demonstrations in the showrooms.. The main goals of these promotional include the following: first, to create awareness of the product: its existence, price, features and its value to the consumers. Third, it employs personal selling techniques using high technical specialists, who instill confidence in consumers on the internet and instructional manuals. Fourth, there is a massive public relations campaign that employs a number of tools like organizing of parties, special events and improving corporate images using other sponsorship programs. This has created a favorable brand image for the company and consequently enhanced profits, competitive position and recognition in the industry. Lastly, there is direct marketing that is achieved through emails send to customer, telephone just to find out the performance of this product in the market. All are aimed at creating its awareness about price, product features, location and some of other unique attributes for a value for the customer and the company. Segmentation Theory 2.1). Segmentation is the act of dividing up of a total market into its constituent parts by some method. This is due to different product categories, different brand personalities, attracts different customers with different income streams among other attributes .It is the key marketing success. This helps in product and service development, for instance, it allows variations in colour, other product attributes suitable for different customers with different social class, origins, places, personalities and age. It aims at satisfying divergent needs of diverse customers. It is based on four traditional forecasting methods namely: geographic, demographic, psychographic and behavioral patterns. 2.2). The benefits of segmentation are first, it enables strategic managers to better forecast the consumer purchasing patterns. Second, it enables manufacturers to cater for a wide variety of customers with different features. Third, it also enables the produce to differentiate their products to suit the needs of customers, to focus the customer services, pricing strategies and the promotional techniques applied7. 3.0. Target Market Identification 3.1. Geographic Segmentation The Fiat 500 by Diesel is segmented into all this four categories. First, it has been segmented into geographic locations as they found in different cities in Europe like Paris, London, and Rome, Berlin among others8.Second, it can also be found in major towns like Sydney, Melbourne among others. This makes these cars appealing especially in Australian urban centers. They check this car in show rooms. 3.2. Demographic Segmentation The Fiat 500 by Diesel targets the high-income male and female youth of ages 16 -35, of a high class social class. This gives them recognition and prestige in their society. Since it is meant to be a ‘city survival car’, it mainly found in congested cities and other places. This is because it is incredibly efficient and economical to drivers due to its incredible features. It is a car model created for all whether as its roof tops can be adjusted to allow air, it windscreen wipers for rain season and can even survive a longer journey. 3.3. Psychographic Segmentation The Fiat 500 by Diesel model targets high-profile personality as it is a car for a ‘lifestyle’. It is a status symbol for the consumers who cherish lavish living lifestyles. This makes them draw admiration from their peers and friends who use non-fiat models. It is car for the affluent society who would wish t o be quoted in high places and command respect and awe, for instance, the celebrities who would wish to keep a higher personal profile. It is a car model for those who need to appear in public sceneries, who are interested in sporting activities and whose would like to give opinions on a wide variety of issues. This has enabled car designers and product development engineers to tailor-make this product to appeal, meet and even exceed the needs of this special category of customers9. 3.4. Behavioral Patterns The Fiat 500 by Diesel targets that class of consumers who prefer different and fashionable tastes, which make consumers display a regular purchasing patters (‘change every time a new and more fashionable model is created and brought to the market’).This brands is fuel saving, comftable ,status symbol which makes feel them ‘special’ and admired. The model has excellent performance and long lasting, a fact that makes these consumers’ attitude towards the model good as it has been commented by the customers. The consumers are on the watch-out for a newer and even superior similar model as they think it will offer more benefits-both tangible and intangible, for instance, being a masterpiece in both comfort and technology10. 4.0. Rationale for the Target Market Chosen One of the powerful ingredients for a successful marketing strategy is the ability to identify and evoke emotions and feelings of the targeted consumers. The marketing department, or rather the marketer utilizes various tools like business logo, signs, websites and even bronchus. This is because colors speak less but say a lot about your subconscious, which either creates a positive or negative reaction in the first 30-90 seconds11 .This, is a psychology of colors that is aimed at impressing, motivating, diverting and persuading your prospects to buy from the firm. It is critical silent type of communication that greatly influences the perceptions of the consumer about particular products in the market. The Fiat 500 by diesel models is on exception as they appear in diverse attractive and appealing colors. First, the products appear in blue colors which according to survey is the second most powerful color although, sometimes it can be cold and depressing. According to marketing psychologists, blue signifies security, authority, faithfulness and dignity. This makes me the target of the top class people who command authority in society, who are affluent and have secure sources of income. (Table A).Second, these fiat products come in black color. Black tends to suggest authority, power, boldness, seriousness, is distinguishing and classic and occasionally for those who would wish to create dramatic displays. This real is the song at the Fiat Showrooms, which have lots of black cars suitable for youth who would to create dramatic sceneries and move without been identified. Black is also suitable for a cold regions as it absorbs the heat making the car warm and comftable all the time (table B) Fiat 500 by diesel is also designed in white colors, which tends to suggest refined purity, devotion, contemporary and truthfulness. It suggests that consumers are devotional to their responsibilities, truthful and can be used in all weather including hot conditions, as it reflects the extra heat making it comftable to drive. Example is the Fiat 500 twin air. (Table C).Third, Fiat 500 by Diesel is made in yellow color, which will tend to suggest warmth, sunshine, cheerfulness, happiness and has a good appeal for intellectual and it is said to appeal to high personality class because of its good accent(table D). The Fiat 500 showroom also displays red car models of the Fiat 500 by diesel which will tend to suggest excitement, strength, sex, passion, vitality, aggressiveness and commands attention. The target market is for youth who would wish to be ‘seen’ and be ‘heard’ in high places. It is also offered for the age active in sexual issues, who have fresh passions and aggressive with their actions (table E).Next, there is also the pink models of the product. Pink suggest feminity, gentleness, well-being ands innocence. This will make the brand appealing an d attractive to female youth would want to display their feminine norms(table F).The product also comes in a green color which will tend to display healthy, fertility, freedom, freshness, healing and can symbolize wealth especially if it is used by businesses. This is relevant for Fiat 500 by diesel as it used by the few wealthy-class citizens (table G).The product is also offer in various colors meant for a variety of customers in different markets, in different regions, used by different personalities12. Customers respond more to this non-verbal signals like color more than the verbal messages. This has made the product engineers and marketers conscious of this critical variable in the marketing mix. At Fiat 500 by diesel plant, color is an imperative factor that underplays its promotional tools and techniques. (4). Table showing different images of Fiat 500 by diesel with different colors for different customers Car model color Relevant target market. Table A Fiat 500 by diesel blue in color in their showroom This example of Fiat 500 by diesel targets affluent youth who have stable and consistent sources of income, for instance, the sports like soccer and athletes. Table B Panda my life Black This excellent example targets those powerful and influential youths who cherish lavish and luxurious lifestyles. It is also for those who would care less about the places to tour especially in upcountry. Table C Fiat 500 by diesel white in color This white fiat 500 by diesel suggest targets those regions that may hotter or in unfavorable e weather conditions. It targets those consumers who have positive attitudes those white as a color and like truth and purity in their life. The car is popular with those who associate white being religious. Table D Because it symbolizes cheerfulness and happiness, it mainly targets the youths who contemplates happiness as their sole goal in life. Those who just loves being happy with their life. According to Maslov,thse are people who have reached their self actualization and they are satisfied with their current lifestyles Table E Red symbolizes strength, excitement, sex and passion, it targets youths who will love romance and are currently active with their social lives. In their showrooms, red is an attractive and appealing to the eyes. Some youths like because it could show how ‘dangerous’ they are and that attention should be accorded to them whenever they come into scene. Table F Pink is a cool color and such it will lure the eyes of females youths who would wish to be associated with genteelness, well-being and innocence. It is also a target for the youth and sometimes business who wish to display a message of being environmentally-friendly especially with regards safety, pollution- related technology amongst other attributes. Table G Green signifies a healthy environment and would be a target for those environment-conscious youths and other environmentalists; this could also indicate a status for the rich wealth youths. Source: Fiat 500 by Diesel press release, 2011.(www.500bydiesel) Examples below show some of the accessories that accompany the Fiat 500 by Diesel, latent benefits that accrue to those consumers. Top of Form Fiat 500 Barcode Badge - Pair Price: ?50.00 Rating: Fiat 500 Barcode Badge - Pair. Fitting into side moulding. Qty: view product... Bottom of Form Top of Form Fiat 500 Black Chequered Badge - Pair Price: ?51.00 Rating: Fiat 500 Black Chequered Badge - Pair. Fitting into side moulding. Qty: view product... Bottom of Form Top of Form Fiat 500 Red Chequered Badge - Pair Price: ?51.00 Rating: Fiat 500 Red Chequered Badge - Pair. Fitting into side moulding. Qty: view product... Bottom of Form Top of Form Fiat 500 Italian Flag Badge - Pair Price: ?38.00 Rating: Fiat 500 Italian Flag Badge. A pair of Fiat 500 Italian Flag Design Badges. Qty: view product... Bottom of Form Top of Form Fiat 500 Black Sport Badge - Pair Price: ?51.00 Rating: Fiat 500 Black Sport Badge - Pair. Fitting into side moulding. Qty: view product... Bottom of Form Top of Form Fiat 500 Red Sport Badge - Pair Price: ?51.00 Rating: Fiat 500 Red Sport Badge - Pair. Fitting into side moulding. Qty: view product... Bottom of Form Top of Form Fiat 500 Red Line Black Badge with 500 Logo - Pair Price: ?51.00 Rating: Fiat 500 Red Line Black Badge with 500 Logo - Pair. Fitting into side moulding. Qty: view product... Bottom of Form Top of Form Fiat 500 Red Badge with 500 Logo - Pair Price: ?50.00 Rating: Fiat 500 Red Badges with 500 Logo - Pair. Fitting into side moulding. Qty: view product... Bottom of Form Source: fiat 500 by diesel press release, 2011. 5.0 References 1. Bobbitt, Malcolm, 2008. FIAT 500 & 600: 1955 to 1992: Saloons/Sedans, Multipla, Giardiniera & 126, Guide. Washington: Veloce. 2. Chandrasekhar, Mala, 2006. Marketing Management: Text & Cases. New York: McGraw-Hill Education. pp478 3. Communications Fiat Group in the, United Kingdom. London: Corporate Communications, 4. Dennis J. Cahill, 2006. Lifestyle market segmentation Haworth series in segmented, targeted, and customized marketing Routledge 5. Donnely H and Peter, P.2009. Marketing management, 9th edition; knowledge and skills, sage.p478 6. Jerry James Ston, 2010.Fiat 500 Gets New Multijet Diesel Engine and 60 MPG. February 17, 2010 7. Kurt Geer.2010. The Psychology of Colors in Advertising and Marketing. (www.natural-agingocom.) Accessed on 9th Nov.2011. 8. Kotler, Peter, and Armstrong G. 2006. Principles of Marketing. New York: McGraw-Hill. pp 230-235. 9. Norbye, Jan P. 1978.Modern diesel cars: Modern. Tab Books. 10. Rayopport, Jeffery.F.2001. Ecommerce. New York: McGraw-Hill. P8, 198-199. 11. Robison, B and Pearce II, Strategic Management: Formulation, implementation and control, 9th edition, New York: mcgraw-hill PP 90-109. 12. Roxanne Hovland, Wilcox, 1989. Advertising in society: classic and contemporary readings on advertising's role in society. NTC Business Books. 13. Roxanne, Hovland, Joyce M.Wolburg, 2010.Advertising, Society, and Consumer Culture. London: M.E. Sharpe. pp 69. 14. The press release, 2011, Fiat 500 by Diesel 15. TL. Morello, Lorenzo Rosti Rossini, Andrea Tonoli, Giuseppe Piaf,2010. The Automotive Body: Volume I: Components Design, Volume I-V, of The Automotive Body, Lorenzo Morello. Oklahoma: Springer. 16. Welch, Ivan.2011. The Little Book of Fiat 500: the little book. New York: Green umbrella. Read More