Strategic Marketing Management - Alfa Romeo 159

Thèmes abordés

Alfa Romeo 159, Strategic Marketing

Résumé du document

This pptx is a full analysis (more than 60 slides) of the failure of the Alfa Romeo 159 on the French market. It presents an external point of view and an internal one to come up with the SWOT.

Then, the final part is regarding all the strategy implementation possible in order to make this car and its services better !

Extraits

[...] Driving characteristics Appearance Reliability in use Safety Economy: price and fuel consumption Both Audi and BMW are well known for their ‘German' (high) quality and Alfa Romeo Source: Brand Loyalty of Vehicle Buyers Brand Loyalty of Vehicle Buyers by Pentti Korpela BRAND PERCEPTION Alfa Romeo brand has a reputation for poor quality - Undeserved but Alfa Romeo has a bad reputation about quality “When it comes to quality in cars, don't look for it in Italy” “They can be compared to some Italian cars. Good looking, but very bad quality” “We all know how much Italian cars enjoy being broken.” “I do like Italian cars, and would consider a 155 V6. But, relatively bad build quality and poor reputation for reliability just puts me off . ” Source: blogs.car.com VALUE PROPOSITION VALUE PROPOSITIONS APPEALING DESIGN EMOTIONAL/ SELF –EXPRESSIVE BENEFITS QUALITY PRODUCT ATTRIBUTE BENEFITS Source: Strategic Market Management by David A. [...]

[...] Source : CCFA COMPETITOR ANALYSIS Customer Choices They need a substitute product With at least some of these functionalities/characteristics A compact executive car, efficient, not the same as “Mr everybody” with a sportive design Analysis of 2 main competitors BMW Series 3 Reputation for powerful engines Design inspired by old history of the brand A bit more expensive Audi A4 Design very appreciated in France Innovation Capacity Engines a bit less powerful MARKET ANALYIS Key Figures The segment D (one of the submarkets) represents only of the market The Alfa Romeo which evolves in this submarket only owns of market shares Source: ccfa, leblogauto, turbo, automoto, webcarcenter Cars sold in France since 2007 < number > MARKET ANALYSIS Segment D in France in 2009 (sales in thousands per car models) Source: ccfa, leblogauto, turbo, automoto, webcarcenter SEGMENT D or M2: The Alfa Rome 159 evolves within the segment D. This segment D-segment (European automobile classification) represents all the cars which are larger than a small family carand smaller than an executive car. [...]

[...] Strategic Market Management Company: Alfa Romeo Product: the Alfa Romeo 159 Market: French Market The problem : Why the 159 does not sell well on the French market ? STRATEGY IMPLEMENTATION External Analysis Internal Analysis S.W.O.T. Strategy Implementation EXTERNAL ANALYSIS EXTERNAL ANALYSIS Customer Analysis Competitor Analysis Market Analysis Environmental Analysis Segmentation Alfa Romeo 159 Private Owner Family Young Retiree Commercial Owner Company Car Independant Professional Owner Source: Alfa Romeo France, Fiat Group & l'Argus Auto & AutoPlus CUSTOMER ANALYSIS CUSTOMER ANALYSIS Summary of Customer Motivations Differentiation Wish Design : Sport expression but still elegant Price sensibility : less expensive than German cars For most of them : Brand loyalty and common life style Real Alfa Romeo fans : more than a “simple” car, they buy a brand & the history (sport cars) and a life style : “le virus Alfiste” Source: Interviews of Alfa 159 owners& l'Argus Auto & AutoPlus CUSTOMER ANALYSIS Unmet needs The “failure” of the 159 on the French Market reasons : Unmet needs + All the strategic mistakes (main reason) Sport design, very secure and excellent road handling (better than BMW . [...]

[...] Maserati + = High Quality Source: Strategic Market Management by David A. Aaker and Damien McLoughlin < number > GROWTH STRATEGIES < number > GROWTH STRATEGIES Communicate on the AR 159 to create growth in the “hostile car market” Increase the quality of the brand in customer's mind Help to improve the sales of the new 159  “Giulia” (launch in 2012) Develop the brand as a “Premium full line brand” (Product plan of FIAT 2010-2014 for Alfa Romeo) Source : FIAT Product Plan Sell cars by offering premium equipment (electric mirror, GPS, ) To clear the 159 from the stock before the new launch To satisfy customers by driving in a more “luxury” car Can reach the objective of FIAT to develop the brand as a premium provider of cars GROWTH STRATEGIES Raise commercial segment by using enterprise offers Existing service (cercle-entreprises-fiatgroup.fr) Don't work well as you can't check out (price, service ) each car Pointed up to companies the excellent “EcoDrive” service Which allows to follow (CO2 emission, costs per 100 km of each cars on the company cars portfolio) with a simple application In addition to this efficient system give “Business Pack” with different services to increase the power of attraction Source : Cercle Entreprise FIAT Group GROWTH STRATEGIES Raise commercial segment by using enterprise offers Propose the AR159 to different leasing companies As this market is going more and more important after the crisis (Leasing = Rent a car with the option to buy it) This a new market and a place can be taken by giving advantages to companies (maintenance contract to a discount price)  Show the Quality Process of the Group GROWTH STRATEGIES Development of new products As a part of FIAT Group, Alfa Romeo can create extended line product based on existing product An association with Abarth / Maserati To realize limited edition Which can represents the aspects of sportsmanship/design/powerful Common production platform between Maserati & Alfa Romeo For prestige product of both brands Cost cutting to be more aggressive on the market than the German Competitors Source : Sport Prestige GROWTH STRATEGIES FURTHER STRATEGIC OPTIONS < number > COMMUNICATION Sources of brand equity Awareness What is Alfa Romeo? [...]

[...] For instance, the same segment represents 20% in Germany. About the trend of this segment, The segment “D” dropped from 2,7 millions sales/years to 2 million for 10 years in Europe. So, it's a decreasing market in which is very difficult to improve your sales figures. The sales of the Alfa Romeo 159 keep decreasing. [...]