Chrysler - FIAT Branding Strategies This paper is about the branding strategies of the joint firm of Chrysler-FIAT. Branding strategies are particularly important to devise in this case as both the firms had opposite image before strategic alliance. After joining hands, they started working on common grounds for mutual benefits. Branding strategies are subset of marketing strategies. The marketing strategies cater for making the target market realise the need of the product or service which a company is offering. It is also related to defining the target market.
It also deals with the need for launching new product and making changes in the existing product based on the feedback from customers and market conditions. Marketing strategies also deal with generating and satisfying the need of the product. Keeping in view the essence of branding strategies and marketing department, Chrysler-FIAT should focus on creating positive image of the firm. The positive image attracts the customer and the product rating increases when the alternates are evaluated in the process of purchase by the customer. Positive image is created through removing discrepancies between the actual and perceived level of quality of the product.
The positive word of mouth is also a tool for promoting positive image of the product. The satisfied customers spread good word of mouth while the unsatisfied customers tend to spread bad worth of mouth. In the perspective of automobile industry of which Chrysler-FIAT is a part, the features of the market are different as compared to the other products. It is because of the element of durability and high cost associated with automobile. Its target market is also limited in terms of age group and income group.
It is not easy for every individual to purchase a car. People tend to purchase car when they are employed and have savings as well. The new trends of car financing services offered by banks make car more accessible by individuals. Keeping in view the increasing trend of car financing by almost all commercial banks, the car manufacturers need to adapt their supply to the market to meet the changing demand (Lan, Gao & Ball et al, 1594). It is to be noted that car financing is to be availed by the people who can not afford to buy the car at full down payment.
They are price conscious hence focus on product’s core use more than its value added features and luxurious factors. Usually size of the car is also small and the financing plan is spread over years. In the period of financing, the market conditions may change however the car manufacturer and the leasing party are bound to stand with their initial plan. Short Term Branding Strategies for Chrysler-Fiat Keeping in view its present performance, Chrysler-FIAT should focus on following short term branding strategies.
These strategies help Chrysler-Fiat to devise its business plans for the next couple of years. Chrysler-FIAT should focus on the image of price competitiveness of the small car. It can attract more house hold customers to own car. With the increasing individualism in the society, the concept of owning assets by the individuals is growing. Transportation infrastructure has made travelling easier and people tend to go to nearby towns and cities for job and education. Chrysler-FIAT should portray the image of fuel efficiency.
It can lead to strong positive image creation as fuel prices are raising globally on continuous basis. The affordability of vehicles has largely become the function of fuel prices. People make one time decision of purchasing vehicle by opting for the lease and financing offers by the bank. At times, it becomes difficult for them to manage the running expenses of the vehicle. Chrysler-FIAT should focus on setting the image that its car is not only easy to afford on purchase basis but also on running and maintenance basis.
Chrysler-FIAT should offer rental car business on its own. It can lead to a strong competitive advantage in the market as mostly the car rental business is run by third party. Offering new cars on rent to the customers can open another source of revenue to the organisation. Chrysler-FIAT should have partnership with banks to offer its product at an affordable rate which is attractive for the customers. The organisations are becoming more digital and market integration in the ultimate business solution. Partnership with banks can not only help Chrysler-FIAT to make car more affordable to the customers but also gove leverage to the finances of Chrysler-FIAT. Long Term Branding Strategies for Chrysler-Fiat These strategies help Chrysler-Fiat to devise its business plans for the next 5 or more years. Penetrating the global market particularly American and European market should be the long term branding strategy.
The global market is increasingly becoming open and competitive. Business expansion is the goal of every commercial organisation and branding the cross cultural product can give the organisation a strong plus (Kali & Reyes, 595).
The strategic alliance between two firms of Chrysler and FIAT is not the end of story. Same practice can take place with the players present in other areas of the world as well (Netessine & Shumsky, 813). Chrysler-FIAT can add new target market to its portfolio by offering medium size cars as well. This step will change the brand of Chrysler-FIAT to a greater extend. It will affect the production capacity and facility of the organisation as well. Chrysler-FIAT may need additional financing for this project.
There will be huge cost requirements for market survey to analyse the need of big car and then market it in a way that it remains environment friendly and fuel efficient. Chrysler-FIAT may highlight the design and production process of car manufacturing to make its target market aware of the environment friendly approach they have. It can not only lead to CSR activity but also competitive advantage and increased customer base (Perrini, Pogutz and Tencati, 75). CSR is the topic of debate in the 21st century and the organisation undertaking this activity can win competitive edge and customer loyalty. Works Cited Kali & Reyes.
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