International Marketing Management Report: FIAT's Global Strategy

This report provides a comprehensive analysis of FIAT's international marketing management, focusing on the launch of the FIAT 500X crossover in overseas markets. It begins with an overview of FIAT and the key aspects of international marketing management, including market research, infrastructure, product localization, and inbound/outbound marketing. The report then examines the changing global business environment and the challenges it poses to FIAT's marketing practices, such as government policies, corporate social responsibility, ethics, cultural differences, technological advancements, and increasing industry competition. A detailed marketing plan for the FIAT 500X is presented, including company overview, mission, vision, and strategic planning. The report further explores FIAT's marketing mix, consumer analysis, and the relationship between consumer analysis elements and effective marketing strategies. Finally, the report offers recommendations and concludes with a summary of key findings.

International
Marketing
Management
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Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Background information of FIAT and a brief explanation on the various aspects of
International Marketing management.........................................................................................1
Task 2...............................................................................................................................................3
The changing global business environment and the challenges this poses on the marketing
management practices of FIAT...................................................................................................3
Task 3...............................................................................................................................................5
Marketing plan of FIAT for overseas launching of FIAT 500X crossover................................5
TASK 4............................................................................................................................................9
Marketing mix of FIAT along with the relationship between three elements of consumer
analysis and to establish how these three elements help the Brand to establish effective
marketing strategies....................................................................................................................9
Task 5.............................................................................................................................................12
Recommendation......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Globalisation is an actuality and is in control in international market, where there is no
need to surprise when a company perform better in foreign soil in compare to the
domestic market. International marketing is a common term refers to the global business
activities of goods and services, in modern business scenario international marketing is
said to be modern thought which means the application of the marketing principle on a
worldwide level. In international marketing decision regarding to the marketing mix are
not to be taken based on the single country but for different countries. Fiat, an Italian
automotive company should develop international marketing because it has to promote or
deliver its brand new FIAT 500X and establish its showroom and other facilitates in the
other countries which are emerging and the company has scope of growth in those
counties (Farrell, 2020). Therefore following report present the International marketing
management tactics and process in context of FIAT to launch its brand new edition in
international marketplace by creating a marketing plan for the new product. Also, report
governs the detail analysis of international marketing mix of the FIAT while evaluating
the necessary skills needed for launching new product in an overseas marketplace.
Task 1
Background information of FIAT and a brief explanation on the various aspects of International
Marketing management.
FIAT is an Italian auto-mobile manufacturing company particular known as the largest
auto-mobile manufacturer in the Europe and the third in the world following General Motors and
Ford. With the ramping success of FIAT 500, company is being planning to launched the 500X
crossover in the global market which delivered some unique iconic in compare to the 500 model.
In order to promote its brand new product in ultra-competitive market FIAT France is planning
to partner with the YouTube, a social media video platform to produce an ad and evaluate the
striking affect in status of ad call back, brand awareness and search volume traffic on its website
(Asseraf and Shoham, 2019). FIAT partnered with YouTube to stream video ad entirely on
YouTube earlier launching on the other media this is because 80% of the users around the world
spend 30 minutes on the YouTube and it has been emerging as the everlasting platform for many
marketer to promote product on the global reach.
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FIAT using principle of international marketing to sustain its business growth in the
developing countries where there is scope of growth for the firm. FIAT using application of
interactional marketing because it has global operations though its 16 brands of cars that it
shipped and manufacturer on the foreign soils. Company as per the above case partnered with the
YouTube in order to identify a target audience and boost engagement with the 500X crossover
ad to drive lifts in add call-back increase brand knowingness and traffic on website. In context to
this scenario various aspects of the international marketing management are as follows- Research-
Market research is critical aspect in international marketing management when a
company wants to launch its product in internal business. FIAT use research as the tool for
curation of the video content ad that they going to stream on YouTube, market research of the
specific country and competitor within the country help company to curtain content while
considering personas of the targeting customer and deliver ad that meet to the company vision
and product launch goal (Sangra, 2020). Infrastructure
Infrastructure is considering to be dry set of administrative details that FIAT has
developed, while operating in other country company has to create a state of feeling by creating a
set infrastructure which is known as the showroom so that people can go there as ad recall
formula to enquire further about the product. Product must be localised
While streaming its video on YouTube the content should be based on local country
rather than of home country i.e. France. By marketing localisation is a tool where the black
magic of international marketing is applied to curtain and leverage opportunity to accommodate
local culture expectations in the video ad. Inbound and Outbound marketing- Inbound marketing tools are particularly social
media platform and SEO to increase search volume and drive traffic to website.
Outbound marketing is set of tools particularly emails, pop up message and SMS data
generated whenever user click on video ad to know more about the product.
Positioning- Positioning is all about building trust in the mind of customer through its YouTube
video ad when launching its FIAT 500X in the global marketplace. However, the right
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positioning will make company product (FIAT 500X) much easier to sell in the long run
(TREVISAN, 2020).
Task 2
The changing global business environment and the challenges this poses on the marketing
management practices of FIAT
Globalisation is a reality and every business industry must accept this fact that
globalisation has changes the business environment of the home and foreign country.
Nevertheless, the changing global business environment has brought the set of changes in the
economic activity of almost every country in the word and this also create a massive worldwide
development for FIAT also as it shipped 60% of its manufacturing to foreign. Following are the
key changing global business environment aspect -
Global political, economic and technological trends are promising opportunity for FIAT with the
changing global business environment to expend its business. World is heading towards the
sustainable development and many governments also argue the company to look for
environmental cause (Morales, 2018). Hence, this creates opportunity for FIAT to manufacturer
hybrid and electric cars that do no emission carbon.
 Government policy regarding the national and internal business is changing which creates
both opportunity and threats for FIAT. Brigit disrupt the supply chain of FIAT and also
made complex for FIAT for shipping its FIAT 500X in EU and UK. Other than this, FDI
is the red hot topic many countries are offering 100% FDI and free trade policy for the
economic development of the country.
 The rapid technological development in field of information technology is changing the
global business environment which modern marketer are using digital technology for the
user engagement and awareness of the product and FIAT is also doing the same thing to
promote its FIAT 500X via partnering with YouTube to stream its video ad with
worldwide reach.
 Globalisation give rise to the liberalisation and privatisation which made free trade policy
and FDI regulation that made easy for FIAT to conduct business in international level.
 Integration of world economy facilitates FIAT to acquire more raw material, skilled
taskforce, maximum reach to the supplier for its brand new product FIAT 500X.
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Hence, the way of doing business in global environment is changing which often creates
challenges for the FIAT to launch its brand new crossover model 500X in foreign market.
Following are the key challenges of the changing global business environment that affect
marketing management practices of FIAT- National & international business policy
Government of the particular country wants to do what they willing to do, they formulate
trade policies and then change their minds and make new one this generally disrupt the
marketing management practices of the FIAT (Cantoni and et. al, 2019). As globalisation
reduces trade barriers and open the internal border door for FIAT, still there are many obstacles
and challenges lies such as Brixit dilate the supply-chain management of the FIAT as it found
more complex to launch its product in the UK due to existence of the Brexit. The tariffs and
trade regulations are acting as the barrier in the globalisation especially in the country where
there is cold-trade war such as FIAT France found it more difficult to launch its FIAT 500X in
the China and US market due to state alliances policies. Corporate social responsibility
Another major challenge in the changing global business environment is regards to the
rise of CSR trend in the modern business. Global business environment requires from decision
makers new attribute of the social responsibility which bend FIAT to be accountable to its
stakeholder not only within the home country but on worldwide level (Bagozzi and et. al.,
2018). Social responsibility is further divided on the economic responsibility that to product
goods and service of value to society that FIAT can repay to its creditors and shareholders,
discretionary responsibility that company should use for the welfare of the society such as
charitable events and working for a cause to gain media coverage that improves FIAT brand
credibility and equity.
 Ethics-
Ethics are the next red hot topic in the global business environment, company which do
business in accordance to the ethics tends to enjoy more brand equity. Ethics influence the
various components of the management and operations of FIAT during its launching of FIAT
500X which includes human resource, research & development company mission and even the
international marketing management of the company, this is because business ethics are basic
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guidelines that FIAT can choose to precede to gain public approval which have both empirical
and normative aspects.
 Cultural difference-
FIAT is operating in many countries thus they see many cultural diversities at their
workplace. Cultural difference is opportunity for them to have diversify workforce but
sometimes this diversify workforce disrupt the business operations because of sense of disrespect
to another one culture and discrimination at the workplace that rises up the cases of conflict at
the workplace which affect the international marketing practices of the firm (Grant, 2019). The rapid phase of technology change-
Technological revalorisation is the major driven factor of the globalisation, if a business
still relays on the traditional business technology it will be die sooner because their competitor is
using modern day technology. FIAT previously focus on the traditional promotion method which
is term to be less effective in the complex business environment. Increasing industry rivals-
Free trade regulation and 100% FDI offer entry of many auto-mobile sector simple, FIAT
is the largest car manufacturer in the Europe but still inferior of the growing industry rival
because its model is offering less SUV cars and fuel tank is smaller than to ford and charging
more prices. This create more difficult for FIAT to counter its industry rival and made business
to rethink about their international marketing strategies.
Task 3
Marketing plan of FIAT for overseas launching of FIAT 500X crossover
Marketing Plan of FIAT
 Company overview-
FIAT is an Italian automobile manufacturing company which remark as the largest car
manufacturing company in Europe and third largest manufacture in the world. FIAT in 2014
merge with Chrysler Automobile through which it is known as FIAT and Chrysler automobile
company. FIAT group at present has 16 different variant model which they are shipping and
manufacturing at different level. Some of the famous model includes Ferrari, Jeep, Alfa Romero
and Ram etc. as per the research FIAT shipped more than 4.8 million vehicles.
 Mission-
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FIAT has the mission to grow and generate value by adhering innovative products and
services for maximum customer satisfaction while being legitimate accountable to the interested
business stakeholders. The mission statement of the company is realistic and clear
 Vision –
FIAT has long term vision to form a mobility which has truly human dimension and to build cars
that user will enjoy to drive and further willing to buy again (Jia, 2019). In that Sense Company
has crates strategic planning by being so generic and specific to their future directional path.
 Objective-
To being one of the loveable automobile brand in the world by offering iconic model of the
cars that people love to drive and willing to buy further and triple up the benefits and improve
the quality of the product.
 Problem statement-
Since, with the ramping success of iconic model FIAT 500 company has not introduces any
new product in the market moreover, there is need of improvement which company need to
address in its new product to crossover the success of FIAT 500 by increasing fuel tank capacity.
 Competitive analysis-
In the automobile industry most of the automobile compete each other based on the design,
technology, offering, brand value and model. In that sense FIAT has direct competition with
companies like Toyota, Suzuki, Honda, Hyundai and Volkswagen etc. FIAT has unique design
and it is quite offering affordable luxury cars compare to its competitors.
 Marketing approach-
To launch its brand new 500x model in overseas market company has created marketing
approach by partnering with YouTube to stream video ad before launching on the other media
because YouTube deliver more user engagement as 70% of internet user spent approx.
(Wise and et. al, 2018). 10 minutes on watching YouTube. Another marketing approach is to
measure the incremental impact of the company with a brand lift survey.
 Marketing objective
◦ To identify a target audience and stream its video ad for encouraging engagement of
the user with the 500X crossover add.
◦ To launch video ad on YouTube before any other platforms.
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◦ To drive lifts in ad recall and increase the brand awareness and boost search volume.
◦ To analyse the various aspect of international marketing.
◦ To increase the sale by 30% within the next 3 years of FIAT 500X. Target Market: Target market is an approach through which company curtain its
segmented audience, market for positioning in the targeted marketplace. STP model helps
in target market which are as follows-
Segmentation- Market segmentation provide company a good knowledge insight about
the customer and marketplace. The normal bases for segmentation are as follows-
◦ Geographic area- Company is targeting on the overseas market for launching its
product.
◦ Demographic- FIAT segments market areas for its product are adult mainly both
male and female of age 30+.
◦ Psychological area- Psychological area includes life-style and personality aspects,
the model 500X is suitable for the upper middle class people who loves to drive and
gain remarkable experience.
◦ Behavioural- Behavioural factors include attitude, perception and knowledge factors,
company is mainly focusing on the people who is addict to drive something new and
has lift drive attitude (Matricano and et. al, 2019).
Targeting- Market segmentation discloses the FIAT’s market opportunities after
identifying the key opportunities company can target the audience by evaluating he many
types of market segments and made justification where they want to deliver. FIAT examine
that it sees growth in Asian and gulf countries by targeting the 30+ people. FIAT distribute
its target market because of having unique design in its brand new product i.e. FIAT 500X.
To launch its model in the overseas market, company is focusing on the use of differentiated
targeting strategy.
Positioning- The last step in the product launching is regards to positioning of the
Product in the market. Company is using YouTube as the promotional tool to use it as
value based instrument and create boastful image enriched with experience in the mind of
the customers. In positioning strategy through YouTube, FIAT try to explain user that
model 500X is a premium brand and people will surely love it in first sight.
 SWOT analysis
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 FIAT has joint venture business
operations in Italy, France, India,
Turkey, Russia and China that offer it
global sales and distribution network.
 FIAT is using YouTube as the
advertising tool which has high brand
visibility to attract millions of people
on worldwide level (Abdallah,
Dahiyat and Matsui, 2019).
 FIAT focus on innovation, and
attractive design attribute.
 FIAT has limited market share as
compared to other big car brand like
Ford and Toyota.
 FIAT depends on its joint venture for
launching of its cars which affect
launch on same date on global level.
 FIAT can make use of its strong
global brand presence to launch its
product in global level
 Fast growing automobile market in
the developing in BRICS countries.
 FIAT can focus on developing hybrid
and electronic car on its crossover
model of 500X as these cars are fuel
efficient cars for future and need of
the future automobile sector.
 Basically the models of FIAT offer
limited fuel tank capacity compare to
other SUV model.
 Shortage of skilled workforce in
undeveloped countries can be treated
as the threat for the firm.
 Currency fluctuation is the major
threat because it has global
operations.
 Monitoring
Monitoring and evaluation of the marketing plan is necessary for the FIAT to measure the
effectiveness of the marketing plan. FIAT can measure and monitor the plan by evaluating
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Strength Weakness
Opportunity Threats

the long term and short term revenue which firm is earning. Some other ways to measure and
monitor the marketing plan are-
 KPI- FIAT can use a performance indicator to measure the effectiveness of the
international marketing by YouTube video streaming by evaluating the ad recall and
search volume that is being increased in form of views (Torelli and Stoner, 2019).
 Benchmarking- Benchmarking evaluate and tracking the how marketing campaign is
being passed out, how much they are benchmark activity occupy with marketing plan
and what effect business performance has leverage against their rivals and industry
standards.
TASK 4
Marketing mix of FIAT along with the relationship between three elements of consumer analysis
and to establish how these three elements help the Brand to establish effective marketing
strategies.
Marketing mix are the elements which a company is consider while forming business
marketing strategies that FIAT has developed to develop marketing plan for launching its iconic
crossover model FIAT 500X in the overseas market. Marketing mix of FIAT are as following-
Product- FIAT is largest automobile producer in the world in the Europe and has diverse range
of product under its business portfolio that they are shipping and manufacturing for the world.
Generally all the model of FIAT are highly differentiates with different attribute feature are
being offered to customers that its competitors don’t offer, so all the model of FIAT are consider
to be unique in design and innovative that helps the brand to earn brand equity in the global
market and easily launch its iconic range of product by a strong brand presence. FIAT operates
16 different brands around the globe which all has innovative design and feature that people
would love it on first sight. FIAT keep innovating its model design and feature and launch
different types of cars to target different types of audience around the world
(Cherunilam, 2020). The product designing of FIAT is linked with positioning a branding. FIAT
in its card is committed to reducing carbon emission as of result it use alternative fuel and
engaging customer in eco-responsible behaviour I it’s FIAT 500, TIP range and now doing same
thing in its crossover model Range 500X.
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 Price- FIAT is more conscious over its pricing strategy and it address its target market
while designing pricing strategy for its mode and create transparency in its pricing policy
which is consider as the utmost importance to FIAT. The current pricing strategy that
they are following for its brand new product is based on competitive based pricing
strategy but the company can over surge price in compare to its competitors as its model
design and engineering features are supreme in compare to other same cars. So, in that
sense FIAT encouraged value-based pricing systems as it is found that many of its
models are of superior quality in compare to its rivals (Caputo, 2019). After the product
reached the maturity or on a certain time, Fiat cut down its prices to make it more
appealing and economical for targeted customers. Place- FIAT trust in operating in global supply chain and it has global dealership and
joint venture network to deliver high quality feature in manufacturing and servicing its
product in the global marketplace. At present the head office is at London and it is origin
as the Italian automobile company and has merger with American brand Chrysler. FIAT
in present date operating its business successfully in 40 countries, hence it has wide range
of sales and distribution network. FIAT has manufacturing hub in Italy, USA, Mexico,
and Russia and in France. Other than these FIAT has bonding and ties up with several
agents around the world which offer it to launch its product around 550 metro cities
across the world. Promotion- FIAT understand the true meaning of the promotion activity and its role in
the contemporary business environment and in global business change. FIAT has using
both traditional and modern prospective of promotional tool to attract its targeted market
customer towards its lucrative and appealing products (Kheiry, 2019). Other than this
FIAT has philanthropic strategy which assist social inclusion and economic and cultural
growth that often receive media coverage that increase the brand awareness along with
brand equity and reputations. FIAT believes giving true experience of drive of its cars
that why it often ask experts and journalist to try test drive and give their feedback and
review regarding the products. Currently company is opting integrated marketing
campaign and heavenly investing in this program as it offer world reach option for the
company. For overseers launching of its FIAT 500X which is crossover of ramping
success of FIAT 500, company has elected to stream its video ad before any other media
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