2016 Marketing Plan For Palmen Fiat

Prepared by: Jonathan Kirk, Mattew Ciaglia, Jeff Weaver, Hannah Hathaway, Mack Folkert

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Palmen Fiat Marketing Plan 2016

Palmen Fiat is a growing car dealership located in Kenosha Wisconsin that is interested in expanding their target market to include young adults and college students ranging between 18-24 years old. Currently the majority of the market for fiats is older, more established consumers, but in order for fiat sales to increase and continue to grow for years to come the dealership wants to attract younger buyers. This marketing plan is structured to address the key issues, marketing objectives, and marketing tactics to reach new goals aimed at the young adult market. Different surveys, data collection, and research were utilized to acquire novel information about college students on Carthage campus. This provided valuable data that came straight from the target market and delivered key insights into the views of fiats and the brand. A total of 100 college student responses were collected and analyzed to produce the major key issues involved in targeting this group. They key findings from this were young adults seek SUV type vehicles over compact-sporty and smaller vehicles, however there is still an 81% potential interest in buying a smaller, affordable, vehicle if the attributes and benefits are fitting. The research also indicated that fiats are viewed as impractical and unreliable when compared to other dealership competitors like Ford and Jeep. Fiat only had a 3% hit on the survey when asked about their cars/dealership compared to others, therefore tactics and objectives were focused on trying to increase the perceived value of fiat in the eyes of young adults. Even though the data showed Fiat not being a top brand choice, different marketing tactics, such as special warranties for college students and effective advertisement, can change the current view and increase sales. Further key results from the surveys showed fiats perceived value was low, however by utilizing lease plans or promotional offers the value has the ability to increase. For the upcoming year of 2016, this marketing plan provides key insights and strategies to gain the young adults as an additional market. The budget for this plan is $50,000 and the goal is to see overall sales increase to +150 fiats sold per year and dealers to sell +10 cars to young adults per month. Kenosha is a great area to gain young adults as new consumers, because of major colleges Carthage, Parkside, and Gateway. Utilizing this planʼs key issues, objectives, and tactics the potential to grow is high and soon college students will see the great benefits in owning a new fiat.

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Cars of Interest

A total of 100 college students were asked what kind of cars are you interested in buying?

27%

33%

30%

2%

8%

Key Observations: Overall 33% of the target market desired Mid-size SUV and 30% preferred

compact-sporty cars, which indicated 63% of the target market is not interested in buying smaller vehicles.

27% of the target market is interested in smaller vehicles, thus there is potential to

maintain or increase this percentage of individuals. The key issue from this information is that 63% of the college student-young adult

target market preferred SUV-Compact Sport cars over smaller vehicles.

Total Fiat sales should be +120 cars per year for 2016 Sales force aim for +10 car sales per month across the Fiat brand

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Potential Purchase of Small Vehicle A total of 100 college students were asked could you ever see yourself owning an affordable, small car?

Key Observations: Overall 52% of the target market could see themselves owning a small, affordable

car, such as a fiat. Furthermore, 29% might see themselves owning one, but may have some concerns

of having one. It is evident from this graph that there is an 81% potential of the target marketing

owning a vehicle such as fiat, but car concerns or other competition create issues.

52%

29%

10%

7%

2%

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Words to Describe Fiat A total of 100 college students were asked to describe in a few words, what comes to mind when you think of Fiat?

Key Observations: Almost half the target market, 47%, used the word small or similar words to

describe fiat. The other majority, 32%, thought of fiat as Italian or foreign. From this data it is clear that fiat is viewed as a small, Italian vehicle, which was

how they are portrayed on advertisement, but the target market typically used these terms in a negative way and viewed them as small and impractical.

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Reliability of Fiat-Chrysler Brand A total of 100 college students were asked when thinking of reliability, what car brands come to mind?

Key Observations: Only 3% of the survey participants thought Fiat-Chrysler were reliable when

compared to other top competitors. The target market viewed Ford as the most reliable with 32% The perceived image of fiat is unreliable; therefore, efforts need to be made to

increase the reliability, before energy is spent on sales.

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30%

27%

33%

10%

$

Money Spent on New Vehicle A total of 100 college students were asked if you were to buy a new car, how much would you be willing to spend on it?

Key Observations: Only 33% of the target market are willing to pay the price range of fiats typical

new car cost range, $15,000-25,000 A concern is that 2/3 or 67% of college students and young adults are not willing

to pay $15,000-25,000 on a new car. This is the price range for most new fiats, which means the perceived value of

fiats is a concern and needs to be addressed for the target market.

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Top Dealers

A total of 100 college students were asked to mark the top two dealers they would consider purchasing from?

Key Observations: Only 3% of people answered Fiat as a top dealer to buy from. The vast majority marked down Ford (48%) or Jeep (38%) as their top dealers to

purchase new or used vehicles from. Fiat is not viewed as a top dealer and the competition is heavily favored for dealers

that have a larger range of SUVs.

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Top Promotional Events for Target Market Participants of the survey were asked to describe their favorite events to attend while being in college – answers were divided between males and females

Top Events for Males Top Events for Females

Males Responses Females Responses

Key Observations: For both males and females their favorite places to attend were sporting

events (Ex. Baseball Games) with 46% and 36% Social events and popular concerts are another event that has high

potential for attracting the target market with 39% for males and 28% for females.

Promotional offers and advertising events should take place at these types

of locations (Sporting Games or Concerts) in order to attract the target market.

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1. Seeking SUV-Sporty vehicle over the compact cars

Young adults and college students are looking for a vehicle capable to haul their athletic gear, travel luggage, and other passengers. These are tasks, which the Fiat line can accommodate, but the local target market does not perceive Fiat as having that utility value.

2. Fiat is viewed as a small or impractical car Even though Fiat is a small-compact car young adults view it as impractical, whether it is because of the long Midwestern winters, or the overall design of the car. If a potential buyer views the fiat as impractical, then efforts need to be made to change their mindset/view.

3. Fiats are not seen as reliable About 97% of the target does not find Fiat as a reliable brand; instead, they look to dealers such as Ford, Jeep, and Lexus.

4. 67% of target market is not willing to spend $15-20k on a new car The typical price range of a Fiat is anywhere from upper $16-32k, which drives away the target market, because it is not within their price range.

5. Fiat is not a top brand choice Only 3% of the target market view Fiat as a top brand choice, while top competitors Ford and Jeep capture the majority of young adults.

6. Lack of promotions at local sporting events and concerts Promotion at local sporting events and concerts could improve Fiatʼs relationship with their target market of college students and young adults. Survey participants stated their favorite events to attend include sports and concerts.

The target market is young adults and college students between the ages of 18-24, looking to purchase their first car.

Total Fiat sales should be +150 cars per year for 2016.

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1. Compare 500x to Mini Cooper Countryman by 2. Extend current warranties to fit someone on a budget. 3. Add 10 year powertrain option 4. Promote success stories of Fiat 5. Leasing 6. Increase social media awareness 7. Internet advertising 8. Create a Red Bull branded Fiat to go around Campuses 9. Promote 2015 college graduate retail bonuses on all models 10.Bring Fiat booths to sporting events 11.Sweepstakes with a car showing 12. Sponsor local concerts and music festivals

1. To position 500x as an SUV

2. To show that small can be practical

3. To increase customer perception of reliability (increase “pull”)

4. To increase Fiatʼs perceived value

5. To raise awareness of the Fiat brand

6. To adjust promotional efforts towards target market

Total Budget for 2016 will be set at $50,000

January 1st, 2016 – Planning and production on TV commercial – Sweepstakes Begins February - Start producing the Youtube advertising video $750 March – Wilmot Raceway $4,000 – $6,000 per season through September April-May – Kingfish Start playing – outfield sign $6,000 for the season June - Extend warranties on older models at beginning of summer before new models come

out - 24th–June 28th and June 30-July 5th $2,500 – $10,000 July – Air TV Commercials – $15,000 budget for add space and production August – Focus on social media and internet presence(Twitter campaign Fiat success

stories, etc) September – Local advertising car around campus through November December – Sweepstakes winner 2-year lease $5,000

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#1. Compare 500x to Mini Cooper Countryman

Run a commercial comparing the 500x to the Countryman while showing that the 500x is better. There is a section on the Palmen Fiat website that does this, but many people may not know what the difference is.  

#2. Extend current warranties to fit someone on a budget. Extend 3yr/36k miles free maintenance to 5yr/60k in order to further the perceived reliability of not only the Fiat brand, but of the Palmen Motors brand as well. Offer Fiat buyers free carwashes at any and all of the Palmen locations. Ziegler Fiat of Schaumburg (a close competitor) does this.

#3. Add 10-year powertrain option Fiat currently offers a 6 year/85,000 mile powertrain warranty and a 7 year/100,000 mile powertrain warranty. If Fiat were to make it 7 years/95,000 miles to extend this to 10 years and 105,000 miles, the perception of the reliability of Fiats among potential customers should increase.

#4. Promote success stories of Fiat Show and provide PR that tells successful stories about fiat owners and the rush they get when driving their fiat, or how they wouldnʼt want to drive any other car but their personalized fiat.

#5. Leasing Young adults arenʼt looking for full time commitments. Leasing a vehicle is great for this reason. Monthly payments on a brand new car are more convenient for someone dealing with college debt. Group Buying Cali Story

-March of 2015, in California, Fiat offered $83/month for three years on a brand-new Fiat 500e electric car, with a $1,000 down payment after incentives. Fiat Chrysler Automobiles was offering $2,100 off the $32,000 MSRP for lease customers, bringing the down payment on an $82.75 per month, three-year lease deal to $11,000. Other discounts then include the $7,500 Federal tax credit and the $2,500 California state purchase rebate, which brought the final down payment to $1,000.

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#6. Increase social media awareness Twitter Campaigns - Hire an intern to focus heavily on Kenosha Palmen Social media. Pictures of younger adults. Add Fiat image to palmen homepage. college kid standing in front of the 500x foot up on a soccer ball.

#7. Internet advertising A running ad series that is exclusively found on YouTube. This ad series will show the Fiat in sporty environments (athlete driving Fiat filled with equipment to sports practices, Fiat driving through different obstacle courses, etc.) #8. Create a Red Bull (or other) branded Fiat to go around Campuses

Red Bull branded Mini Coopers are seen around many college campuses handing out free Red Bull to the students. Red Bull has student brand managers on 250 college campuses that host, and promote via social media, events such as a recent student chariot race at the University of Georgia. If Fiat partnered with Red Bull, the relationship with its target market of college students/young adults would improve. -In addition to a Red Bull branded Fiat, Fiat could develop an app that students could download that tracks the Red Bull Fiatʼs course, which would also improve their internet presence. The car can also be branded to other companies in the area that are looking to pair up with fiat and promote their business to the same target market.

#9. Promote 2015 college graduate retail bonuses on all models There is a lack of commercials to promoting Palmen Fiat to begin with. If commercials are made and run promoting Palmenʼs College Graduate Bonus, they will help bring in the younger target demographic. Right now it is hidden on the Palmen website.

#10. Bring Fiat booths to sporting events

The Kingfish are sponsored by Lynch Chevrolet for promotional giveaways. If Palmen Fiat were to sponsor giveaways as well, brand awareness should increase. There is also plenty of advertising space on the outfield fence. This could be another option to increase brand awareness.

#11. Sweepstakes with a car showing Print a 10x5 banner with a picture of the Fiat 500x saying “More Fiat, More fun” with a 500x sitting in-front of it. Enter to win a two-year lease on the all new Fiat 500x.

Leasing is great, plus free two years is a good start for first time buyers.

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This could go great at the booths mentioned below at the sporting and entertainment events. – also have links to the Palmen webpage with the sweepstakes on it.

Twitter and Facebook as well as the Youtube video mentioned earlier can have links to this sweepstakes.

It gets the Fiat name out in a highly effective ʻbuzzʼ manner - Spreads by word of mouth around people at the event.

Allow a check-box to learn more about Fiat on the sweepstakes ticket. Build the email list as well as gain market research. – average age of contestants Gives reasons for people to go to the website

#12. Sponsor local concerts and music festivals Milwaukee Summerfest brings in almost 80,000 people a day, and almost

1,000,000 people per week. Even if Palmen Fiat were to set up and sponsor a small cooling tent with a new Fiat parked nearby, thousands of people would still see it. With Summerfest being in the city, and with Fiat being a useful city car, interest in the Fiat will grow among Summerfest visitors.

-Kenosha events are a big reason the community is a choice destination for many. The Kenosha area hosts many concerts, open-mic nights, and other live music performances every year. Kenosha Fusion Performing Arts Association is dedicated to providing various types of live performances. If Fiat were to co-host or sponsor some of Fusionʼs events, or other associations like it in the Kenosha area, brand recognition would increase, and relationships with the target market would improve.

Look into sponsorships at Wilmot Raceway. Wilmot is located right in the middle of the allotted Palmen geographic location. The races will bring in many car enthusiasts, and again its only car sponsorship is Lynch. An example of a promotion could be “Mini Sprints sponsored by Palmen Fiat.” Small sprint car, small road car.

The Brat Stop in Kenosha is a popular place for concerts in the area. Palmen Fiat could sponsor a portion of the cost it would take to bring in particular bands. Shows are 21 and over so the ages of concert attendees fall right into the early stage of the target market.

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Potential Concerts-Summer Fest Demographics Milwaukee- 1 Million Attend on average per 2-week event.

SummerFest/Rock ʻn Sole Run: Cost for Promotional Area • Rock ʻn Sole Run:

• Bronze Package: $2,500 • Silver Package: $5,000 • Gold: $7,500 • Platinum: $10,000

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Raw Data Responses from all Males 40 Males Fiat Response Liked Events

1 Small, Italian, Slow Baseball Games

2 Cheap, Impractical Parties/Sports Games

3 Weak, Slow Concerts, Summer Bash

4 Girly Anything besides class

5 Too Small Parties Concerts

6 Not ever Party

7 N/A Sporting Games

8 Small, Italian Sports and Parties

9 Carlos Estevez Concerts

10 Unique, Affordable Concerts

11 Nothing Campus/College Events

12 Italian, SLow Football/Basketball Outdoor Activites

13 Foreign, too small Parties with friends

14 Cute, Italian, Fuel effiecient No Response

15 Tiny, Weak, SLow Football Games/ Concerts

16 Italian, Small Baseball/Softball games

17 Affordable, small, impractical Bars-Nights when they have deals

18 N/A Parties

19 European hockey

20 Italian Volleyball

21 Italian, Women Sporting Events

22 Small, European Bars

23 Italy Sporting Events

24 Italian Parties

25 Foreign, Tiny Concerts

26 Bulky Minicooper Sporting Events

27 Small Sporting Events

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28 Dinky, Italian Work

29 ABarth, Small Concerts

30 Memes N/A

31 Small, Italian Music

32 Small, Foreign Concerts

33 N/A Volleyball

34 Small car Sporting Events

35 unsafe Sports

36 Weak Sporting Events, Car Shows, Country Concerts

37 Small car Sporting events and social gatherings

38 squares and pudding pie I attend events that provide free food. Yum.

39 small sporting events

40 Has no idea Sporting events, concerts

Raw Data Responses from all Females 40 Females Fiat Response Liked Events

1 Tiny/Little Wrigely Bars 2 What's a Fiat? Weddings 3 Cute, Unsafe School Events 4 No Parties 5 Compact, Affordable Sporting Events 6 Small, Powerful Sports Games 7 Worse than minis/bugs Soriority Parties 8 Variety, owns Chrysler Concerts on School 9 Funny, Italian Involve the sunny Beach 10 Small, Janky Parties 11 Tiny, Toy Did not answer 12 Small Concerts/Festivals 13 N/A Volleyball Games

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14 Tiny Sporting Events 15 Small, FOreign Sporting Events 16 Expensive Sporting Events 17 Don't know Parties, Class, Sports 18 Small, FOreign Fun Events With food 19 Car Musical Performaces 20 Car Theator 21 Small, FOreign Parties 22 Tiny, Cute Sports 23 Foreign No Answer 24 Italy Volleyball Games 25 Italian Concerts 26 I don't know Concerts 27 Small Sporting Event 28 Death trap volleyball games, parties, sorority events 29 small car campus activities/events 30 slow, italian philanthropies, social gatherings, football

games 31 Small, cute No Answer 32 weird, small sports evens or parties