Thursday, July 19, 2012

The Plight of the Immigrant – Fiat Gets Lost Coming to America…


BrandChannel recently published an article on Fiat’s new positioning strategy and advertising campaign.  It seems like the complexities of the automobile industry have given the marketer a bit of an identity crisis – it can’t seem to decide whether it is “imported from Detroit” or from Italy.

Back in the day when Chrysler was on the verge of bankruptcy – in 2009 to be exact – Italian car maker Fiat, along with the U.S. government stepped in to take ownership and save the day.  It was under Fiat’s watch that Chrysler launched its “Imported from Detroit” campaign, in grand fashion at the 2011 Super Bowl.



Today, Fiat is once again appealing to the “roots” of its cars.  This time the Italian roots of its flagship Fiat brand.


What Fiat is banking on – whether through its Chrysler division or flagship brand – is that the old school theory of the “country of origin effect” (COE) still resonates in the new school automobile market of 2012.  Back in the day – especially the 1970’s and 1980’s – brands could play on our national pride and encourage us to “Buy American” when Japanese carmakers started to make serious inroads in our domestic market.  The economy was good.  The patriotic appeal worked.

2012 is a whole new animal.  The economy is slumping – longer and harder than any economist expected.  The number of unemployed remains shockingly high, and new jobs are being created, but at a snail’s pace.  Given this reality – does country of origin even matter anymore?  Given that American manufacturers GM & Ford topped the list for market share of cars and light trucks in America in 2011, it is hard to tell.  Japanese car maker Toyota ranked 3rd. 

Still, is buying dependent on the nationality of the brand, or some other factor that provides value on a more personal level? 

While nationality is something that is intangible and subjective, Fiat has a very compelling point of difference – that of size – which can be leveraged in the market place.  I don’t understand why the brand isn’t capitalizing on this.   Plunkett’s Industry Research confirms that car buyers are looking for smaller, more fuel efficient cars that save them money at the gas pump.  Add to that benefits of eco-friendly (less gas, less emission) and greater “park-ability,” and Fiat would have something far more concrete and valuable upon which to hitch its star.

Granted, the new spot is playful, and fun to watch.  But are American's really looking for a car that has "come to party?"  

The old joke, which questioned the quality of Fiat, was that the brand name was actually an acronym – FIAT – standing for “Fix It Again, Tony.” It seems like Tony should go back to the drawing board with his MARCOM strategy, and fix it, again…

No comments:

Post a Comment