FIAT 500X Crossover: Marketing Mix and Global Business Challenges

This report provides a comprehensive analysis of the international marketing management strategies employed for the FIAT 500X Crossover. It begins with an introduction to international marketing and an overview of the FIAT 500X Crossover case study. The report then delves into the changing global business environment, identifying key challenges in marketing management practices, and the importance of adapting to political, economic, social, technological, legal, and environmental factors. A detailed marketing plan for the 500X crossover is developed, followed by a thorough examination of the marketing mix elements. The report concludes with recommendations for improving the company's international marketing efforts and product launches. The analysis also highlights the importance of identifying opportunities, understanding product demand, and adapting to the dynamic international market. This report is perfect for students looking to understand the intricacies of international marketing and is available for download from Desklib, a platform offering AI-powered study tools for students.

INTERNATIONAL
MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background information on the case of FIAT 500 X Crossover................................................3
Changing global business environment and challenges over marketing management practices4
Developing of marketing plan.....................................................................................................7
Detailed analysis of marketing mix for case study organization..............................................13
CONCLUSION AND RECOMMENDATION.............................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
International marketing is being defined as the multination process relating to planning
and execution of the decisions relating to the marketing and promoting of goods and services and
attainment of the objectives of business within the international market. This involves taking
decisions relating to the conception of marketing of product or service, pricing, promotion and
distribution of the new goods and services within the international market. The present study is
based on the country FIAT automobiles which are an Italian automobile manufacturer which is
formerly part of Fiat Chrysler Automobile. The company was founded in the year 1899 by
Giovanni Agnelli and Gianni Agnelli. The present report is based on case study of FIAT and the
international marketing management concept which are relevant to product launch of 500X
crossover. Further the report will outline changing global business environment and challenges
which comes in way of marketing management practices. Moreover, the marketing plan will be
made for launching of the new 500X crossover. Furthermore, a detailed analysis of marketing
mix of the case stud organization. In the end recommendation will be provided for better
working of the company and better launch of the product.
MAIN BODY
Background information on the case of FIAT 500 X Crossover
In the present report, the product of FIAT that is FIAT 500 X Crossover iconic launch
was discussed. The present study is based on the successful revamping of its iconic 500 model of
the Italian manufacturer FIAT who launched the 500X crossover. In addition to this for working
in the highly competitive market the company partnered with YouTube in order to produce an
advertisement and try to measure the impact of this advertisement. The impact was measured in
terms of ad recall, brand awareness and the search volume of the product FIAT 500 X Crossover.
This approach of company was helpful in managing the working and launching of the product in
effective manner. In addition to this FIAT was determined to measure the incremental impact of
campaign of the campaign with help of the Brand Lift survey (FIATs 500X Crossover ad drives
audience engagement on YouTube, 2016). With this it was seen that there were 13 million views
of the product launch and with this the ad remained one of the top three most viewed videos
during 2015. The completion rate of the advertisement was very impressive and was 84 %.

There are various different aspects relating to international marketing management which
were relevant at time of the product launch (Tanasiichuk and et.al., 2019). The international
marketing management is being defined as the performance of business activities which are
designed in order to plan for the price, promotion and directing the flow of the goods and
services to the consumers within the international market. There are many different aspect of the
international marketing management which affect the launch of the product. These aspects at
time of the product launch in international market for FIAT are as follows-
Identification of the opportunity- this is the major aspect as if the opportunity undertaken
will not be in accordance with the latest trends then this will not be successful. Hence, for FIAT
this is the most important aspect to be considered. This is pertaining to the fact that when the
company will not be analysing the current market requirement and grab a wrong opportunity
then this will affect the working environment of the company to a great extent.
Demand of the product- this is also an important aspect which need to be analysed at time
of the international product launch. This is pertaining to the fact that if the demand of the product
is not there then this will affect the launch of the product and it will not be that successful.
Changing global business environment and challenges over marketing management practices
At time of the international marketing management the most essential aspect is to manage
the global business environment to a great extent. This is pertaining to the fact that when the
business operates in the international market then they have to take care of the domestic market
environment as well as the international marketing environment. The major reason pertaining to
this fact is that when the company operates at the international market then they will have to
undertake the working pattern of the international market. Hence, for this it is essential for the
company to continuously analyse the global business environment. Also, if the business
environment is not of favour of the company then this will affect the working pattern of the
company. The business environment of international automobile industry involves the following
factors-
 Political- when it comes to political factors then at that time comes the changes which
undertake the fluctuations in the political sector of the country. In the international
market the political condition affect the working and operations of the company to a great
extent (Morgan, Feng and Whitler, 2018). This is pertaining to the fact that when the
company will involve the political requirement of two countries that is the domestic

country and the international country in which they want to launch the product.
Currently, the tax rates are very high and this will affect the operations of FIAT in
negative manner. this is particularly because of the reason that when the company will
operate in the international market then they will have to pay high taxes and this will
affect the profitability of the company.
 Economic factor- this involves the changes taking place in the economy and the related
factors like the changes in the interest rates, inflation, purchasing power of the consumer
and many other the factors (Samiee, 2020). In the present economic condition the
purchasing power of the consumer has increased and because of this they are switching to
luxury goods and services. Hence, this will create a positive impact over the working of
the company. This is pertaining to the fact that when the purchasing power of the
consumer will increase then they will switch over to the luxury goods and this will be an
opportunity for FIAT as their product will run in good and high manner and sales will
increase to a great extent.
 Social factor- this involves the changes within the mind of the consumer and the
requirement of the consumer to a great extent. Hence, for the success of the company it is
essential that they make use of the requirement and demand of the consumer. This is
particularly because of the reason that when the company will undertake and inculcate
the demand of the consumer then this will attract the consumer to a great extent.
Currently the requirement of the consumer involves the use of the luxury product and
services and if they will get this then it will attract most of the consumer. Hence, the
launch of FIAT 500X crossover will attract the most of the consumer as this is a luxury
product and will attract large number of consumers and this will assist them in attracting
majority of them.
 Technological factor- this is the changes in the use of technology within the automobile
industry as a whole that is in both domestic and international market. This is pertaining to
the fact that when the company will involve the use of the latest technology then this will
attract large number of the consumers (Rana and et.al., 2020). This is particularly because
of the reason that when the company will involve all the latest features within their cars
then this will attract the consumers to a great extent. Hence, the product of FIAT will be

liked by the consumers to a great extent and this will improve the sales and profitability
of the company within the international market.
 Legal factor- this involves the making use of and complying with the latest laws and
legislations which need to be followed by the company at time of undertaking the
operations. If the company will not be complying with the latest laws and rules and
regulations then this will build the trust among the consumer that company is complying
and adhering to all the different laws. Hence, this will make a good and clear picture of
the company among the consumers as they will be in condition to work and operate in
good and effective manner. Hence, this trust will increase the sales of the company and
the profitability of the company will increase.
 Environmental factor- in the present competitive era, this is the most important and
essential aspect which needs to be followed by companies at time of the running of the
operations. This is particularly because of the reason that when the company will not be
taking care of the environment then this will not create a good image among the
consumers and will spoil the image of the company in market. Hence, for this the most
essential aspect is to involve all the different environmental aspect in the operations of
the company (Gnizy, 2019). In addition to this when the company undertakes the
protection of the environment then this will increase the loyalty of the consumer towards
the company and increases the trust of the company and deals within the success of the
company.
From the above discussion it is clear that global business environment also affects the
working of the company within the international market. Hence, it is essential for the company
FIAT that they must undertake the market research from time to time and this will affect the
working to a great extent. Hence, it can be seen that there are many factors which affects the
working of the company and posses challenges within the international marketing management.
This is pertaining to the fact that when the tax rates will be high then this will affect the working
of the company to a great extent. Hence, this is a challenge for FIAT in the international
marketing management as this will reduce the sales of the company as they will have to pay
more of the taxes. In addition to this another major challenge which is being posed by the
company while operating in the international market. This is pertaining to the fact that when the
company will invest in new technology then the cost of the company will increase. Hence, this is

the major challenges being posed in front of FIAT as now they will have to arrange for more
finance in order to invest within the technology. Thus, it can be stated that when the company
will operate in the international market then they will have to face many different types of
problem and challenges which will affect the working of the company to a great extent within the
international market.
Developing of marketing plan
Marketing plan is defined as a report or document which outlines the marketing strategy
of the company which they are going to follow in the near future for success of the company.
This is particularly because of the reason that when the company operates in the international
market then they have to decide for the strategy that how they are going to enter within the
market and how they will sustain the international competition. Thus, for this it is essential for
the company that they must make an effective marketing plan and it will assist the company in
providing a guideline that how the company is going to manage and improve the expansion
within the international market. Hence, for this marketing plan of FIAT for the launch of 500X
crossover is as follows-
Mission
The mission of FIAT way to grow and creating value by supplying the good and innovative
product and services in order to provide maximum customer satisfaction and satisfaction to all
the stakeholders of the company.
Vision
The vision of FIAT is to create mobility which involves the truly human dimension so that there
is proper connect with the consumer and they are happy with the services of FIAT.
Objectives
The major objectives of the FIAT for the development of the business and to attain mission and
vision of the company are as follows-
To increase the sales of the company by 23 % till the mid of 2021.
To increase sales of 500X crossover by at least 35 % till the third quarter of 2021.
To increase in the investment in marketing of the product and services by 25 % till the August
2021.
SWOT analysis
Strengths Weakness

The major strength of the company is that it
has a large base of employees approximately
130000 globally and has the production
capacity of 2 million cars per year.
Another major strength of the company is it is
world’s ninth largest car making company and
in Italy it is the largest company.
FIAT has joint venture with many different
companies like in India with TATA motors and
in China with Chery motors.
There are many different brands associated
with FIAT like Alpha Romeo, Ferrari,
Masserati and many others.
The major weakness of the company is that it
has limited market share as compared to the
other big brands of car.
In addition to this another major weakness of
the company is that FIAT was unable to
become a leading car player within the
emerging economies.
Along with this another major weakness of
FIAT is over reliance on some of the few
brands. The company is over reliant over the
success of the two brands that is Punto and
Panda in Europe and thought that these brands
will work in other countries as well.
Opportunity
The major opportunity for the company is that
they can have a focus on the development of
hybrid cars and cars which are fuel efficient for
the future.
In addition to this another major opportunity
for FIAT is to tap the emerging market across
the world and build a global brand.
Furthermore, another major opportunity is to
have a more focus on the advertising so that it
can increase the sales of the company to a great
extent (Farrell, 2020).
Threat
Intense competition is the major threat for
FIAT as the competition is very high and
intense and this affect the working of the
company within the international market.
Another major threat for FIAT is the ever
increasing prices of fuel which result in the
reduction of the sales of car within the market
and this decreases profitability of the company.
In addition to this, another crucial threat for the
company is that there is less cheap substitute
mode of transport for the people like buses,
metros and because of this they do not prefer to
buy their own vehicles. Hence, this can also
result in decrease in the sales of the company.
STP

Element Description
Segmentation Segmentation is defined as the dividing of the
consumers into different groups based on some
common characteristics. The different types of
segment are like demographic, geographic,
behavioural and psychographic. For the
effective launch of the 500X crossover the
major segment being focused by the company
is based on demographic and psychographic.
This is particularly selected as this involves a
wide range of consumer and this will attract
them and sales of company will increase.
Targeting Targeting is being defined as the selection of
some particular target consumer out of the
segment being selected (Tien, Phu and Chi,
2019). This is very essential for company to
select the appropriate target as they will focus
on that particular target only. Hence, for the
launch of the 500X crossover the company will
focus on the high income group from the
demographic segment. From the psychographic
segment the company will majorly focus on the
people who have a major focus on luxury
product and this will attract the consumers who
have the attraction towards the luxury products
and services.
Positioning This is defined as creating the image of the
product and services of the company in such a
manner that whenever the specific feature is
named the consumer have the name of the
brand only. Hence, for the purpose of

positioning the product among the consumers
the major focus of FIAT is on managing
quality. This is essential as if the quality of the
cars will be good and high then consumer will
have a perception that if high quality is asked
then it is FIAT only.
Marketing mix
Element Description
Product The product is defined as the bundle of
services which the company provides to its
consumer for satisfying the needs of the
consumers. Currently the company is having
the product of FIAT 500X crossover which is a
model which comes in turbo charged 1.3 litre
four cylinder engines (Poulis, 2020). This
product involves a nine- speed automatic
transmission and all wheel drive standard and
is the quickest crossover within this class. In
addition to this, the product of company also
involves different range of cars like TIPO
range, 500 range, 500X range, 500L range,
PANDA range, QUBO, PUNTO, DOBLO and
many other different categories of cars.
Price The pricing is defined as setting up of price
which they will charge from the consumers
against which the product or the service will be
sold. The pricing strategy of FIAT is
competitive pricing strategy. Under this
strategy the company first analyses the prices
of their competitors and the set the prices of

product and services. This is particularly
because of the reason that when the company
will analyse the prices of competitors then this
will increase their knowledge that what are the
prices currently going on in the market. The
company will charge the prices in accordance
with the prices of the competitors.
Place Place is defined as the area or the place where
the product and service is being provided to the
consumers (Nagy, Bennett and Graham, 2019).
For the place the company has physical stores
all over the world and from their they provide
services to the consumers. The company has its
presence in countries like America, Africa,
Asia, Australia, Europe and many other
countries.
Promotion For the launch of the FIAT 500X crossover,
the use of digital technology for the promotion
of the product was used. Under this the
company, partnered with YouTube in order to
produce an ad for analysing the impact on the
ad recall, search volume and the brand
awareness of the people for the product that is
FIAT 500X crossover.
Financial budget
This is defined as the estimation of the income and expenses which can occur in the near
future by the company. These involve all the possible income and expenses which the company
can bear in order to manage and maintain the sales and operations of the company. The financial
projection of the year of the product of 500X crossover is as follows-
Particulars Jan Febr Mar Apr May Jun July Aug Septe Oct Nove Dece

uar
y uary ch il e ust mber ober mber mber
Cash
inflows
Opening
cash inflow
600
0
1725
0
302
46
434
91.0
4
569
88.1
5
707
40.3
2
847
50.5
6
990
21.8
3
1135
57
128
359.
1
1434
30.9
1587
75.2
Sales
revenue
200
00
2040
0
208
08
212
24
216
49
220
82
225
23.2
5
229
73.7
1
2343
3
239
02
2438
0
2486
7
Other
income
500
0 5000
500
0
500
0
500
0
500
0
500
0
500
0 5000
500
0 5000 5000
Total cash
inflows
310
00
4265
0
560
54
697
15.2
836
36.7
9
978
21.9
4
112
273.
8
126
995.
5
1419
90.2
157
261
1728
10.8
1886
42.7
Cash
outflows
Material
450
0 3060
312
1.2
318
3.62
4
324
7.29
6
331
2.24
2
337
8.48
7
344
6.05
7
3514.
978
358
5.27
8
3656.
983
3730.
123
Labor
250
0 2500
250
0
250
0
250
0
250
0
250
0
250
0 2500
250
0 2500 2500
Other
expenses
235
0 2444
254
2
264
3
274
9
285
9
297
3.5
309
2 3216
334
5 3479 3618
Administrati
on expenses
440
0 4400
440
0
440
0
440
0
440
0
440
0
440
0 4400
440
0 4400 4400
Total cash
outflows
137
50
1240
4
125
62.9
6
127
27.0
5
128
96.4
6
130
71.3
8
132
51.9
9
134
38.5
1363
1.12
138
30.0
6
1403
5.56
1424
7.84
Cash deficit
/ surplus or
closing cash
balance
172
50
3024
6
434
91
569
88
707
40
847
51
990
21.8
3
113
557
1283
59
143
431
1587
75
1743
95
Monitoring and controlling
This is the most essential aspect of the success of the company as if the marketing plan is
implemented and not controlled in effective manner then it will not get successful. Hence, for the
success of the plan the most essential aspect is the effective controlling system. Hence, for this