What is Fiat?Fiat is the acronym of Fabbrica Italiana

Automobili Torino.

It was established on the 11th July 1899by Giovanni Agnelli, and now it is one of the most important Italian holding company.

The story of a mythSome cars are important only for their

technological or stylistic innovationOther cars are called to mind for their

importance in the everyday life of generation and generation of people

Only few cars are remembered for both the elements:

THE NEW 500:TECHNIQUE AND FEELINGS

Launched into the market 4th July 2007SPECIFICATIONS:• Innate elegance sense• Small dimension, but spacious and

comfortable• Agile and sprintable

TARGET: 18-50 years old

The new fiat’s bet 500 wants you

It is a project that exploited the web to make the people involved in the planning and design of the car.

The website fiat500.comfiat500.com was visited by 3,700 million people that contributed to the creation of the new 500, a product that didn’t exist before.

Internet Marketing Mix Features:Sharing of emotions and ideasCreation of a space of co-planning and collaboration

“we believe in a marketing ever growing interactive, where the consumer becomes “consum-actor” and so the protagonist”.

Fabio Galetto, Marketing Manager

Collaborative Innovation

4 steps in collaboration with customers to develop the product idea:

•Ideas’ Creation

•Ideas’ Selection

•Product’s Developing

•Product’s Launch

Ideas’ Creation

Customers are: Engaged in the designEngaged in the design. 500 days before the launch Fiat invited

potential buyers to a web site to design accessories for the car. 8000 did so! Now there are over 100 accessories available. Accessories customers find relevant and appealing. The most popular, a clear glass roof. Second most popular, Italian colors as racing strips. Italian pride (emotion).

Engaged in Customization of their CarEngaged in Customization of their Car. Ford and Chrysler offered online "build your car" tools for years. Fiat has taken it a step further. They add emotions. One example is by listing the passionate ways existing users describe accessories.

Fiat has engineered a way to get customers engaged online and offline.

Customers are:Engaged in the Launch. Customers generated

the themes for advertising. Think about it! Who knows how to reach potential customers in a more meaningful way than customers who are already involved?

Also consumers were invited to create a Fiat 500 adv, to create a Fiat 500 video, to design a Fiat 500 car, to design a Fiat 500 mascot, to send in a Fiat 500 photograph, to design Fiat 500 sticker art, to design the Fiat 500 website, to say "Fiat 500" in their language, and finally enter the Fiat 500 – Design Boom competition (judges included Giorgio Armani and the President of the Fiat Group).

Ideas’ Selection

Product’s DevelopingFIAT, with the collaboration of more than 3,700,000 potential customers, has developed the new 500.

It was the first to be built with a shared social and design typical of Web 2.0.

Product’s LaunchFiat utilized two differents ways to launch Fiat 500:

• Emotional Marketing

•Street Marketing

Emotional MarketingThe Law of Heart (Emotion)

Marketing strategies Marketing strategies without emotion will not work.   Emotion stimulates the mind 3000 times faster than rational

thought. It's an emotional world we live in. Many people say we live in a rational world but nothing could be further from the truth.

Emotions drive our behavior. The world is driven by emotions. Rational thought leads customers to be interested but it is emotion that sells. People really aren't much interested in attributes; they want to know if they can have a product that suits their personality. It is all about values. values.

Emotional marketing is better in many instances than rational marketing that focuses on product attributes. Capturing minds is one thing; capturing hearts capturing hearts is quite another.

Street MarketingStreet marketing is a form of communication that takes place inthe street and tries to entertainthe audience in order to make the public the actor of the promotion.

PriceFiat Automobile CEO defines the new Fiat 500 inclusive and

not exclusive because with it Fiat wants to offer all the fundamental contents for the consumer without an increase on the price.

There are three on road prices: 10.500, 12.500 and 14.500 Euros

Two available financial formulas : “500 cents” allows the customer to have the car, and

gives them a choice from all Fiat 500 models paying only 5 Euros a day.

"50to500” this allows the buyer to pay the car in two installments: 50% immediately and 50% after two years

PlacementDirect channel distribution: the customer can

personalize its own fiat 500 and buy it on-line.

Indirect channel distribution: Fiat has a lot of agents in Europe ( about 500.000) to bring Fiat 500 everywhere the customers want.

Customers’ Response• In Italy: excellent results

•In France: Fiat 500 has had good performance

•In U.K. : customers have criticized the price.

•In Spain: Spanish people don’t like Fiat 500’s design, because they think that it looks like old Micra (Nissan).

•In German: At moment bad results, the automobile’s market is saturated.