"Rinascimento" Fiat Brand - A progress Report
Transcription
"Rinascimento" Fiat Brand - A progress Report
“Rinascimento” Fiat Brand – A Progress report Morgan Stanley Automotive Conference Luca De Meo London – June 21, 2006 Head of Fiat Brand Morgan Stanley Automotive Conference – London, June 21, 2006 A Collection of Powerful Brands Units sold (x000) 1,698 1,173 285 114 126 Net Revenues €19.5bn 688k units By Brand / Business 3% 8% 12% 66% 11% 25 Countries (excl. Italy) 447k units Fiat/Lancia Alfa Romeo LCV Financial Services 404k units After sales RoW 159k units 2005 figures (Excl. Ferrari & Maserati / Powertrain) 1/29 Morgan Stanley Automotive Conference – London, June 21, 2006 The reports of my death are greatly exaggerated (Mark Twain) Fortune Panorama Economy January 13, 2003 June 17, 2005 Morgan Stanley Automotive Conference – London, June 21, 2006 2/29 Rebuilding Fiat’s place in the Auto Industry – Off to good start Winners & Losers Western Europe A Segment Ranking (MAY YTD ’05 – MAY YTD’06) FIAT +28% SUZUKI +26% 2005 VW+15% MAZDA +11% SKODA +10% MERCEDES +9% SEAT +6% TOYOTA +6% BMW +6% AUDI +1% CITROEN -1% FORD EU -1% PEUGEOT -3% HYUNDAI -3% GM -3% VOLVO -9% RENAULT -11% NISSAN -15% B Segment Ranking 2006 1 88,109 FIAT PANDA 96,154 2 MCC FORTWO 32,215 PEUGEOT 107 36,956 3 KIA PICANTO 26,093 CITROEN C1 35,745 4 FIAT SEICENTO 19,667 TOYOTA AYGO 35,675 5 CHEVROLET MATIZ 19,389 KIA PICANTO 31,997 6 GM AGILA 17,253 MCC FORTWO 28,749 7 HYUNDAI ATOS 14,868 CHEVROLET MATIZ 28,138 8 SUZUKI ALTO 11,984 FIAT SEICENTO 19,677 9 SUZUKI WAGON R 8,929 HYUNDAI ATOS 16,434 10 DAIHATSU CUORE 3,308 GM AGILA 12,714 125,563 VW POLO 120,035 5 FIAT PUNTO 112,463 GM CORSA 115,798 6 CITROEN C3 112,246 PEUGEOT 206 106,248 7 VW POLO 100,817 CITROEN C3 102,961 8 TOYOTA YARIS 90,028 TOYOTA YARIS 90,761 9 SEAT IBIZA 68,049 SEAT IBIZA 67,301 64,203 NISSAN MICRA 54,126 +18% Norway GM CORSA Sweden 4 +38% -2% -22% -42% Greece 156,849 %Mkt Belgium FORD FIESTA Austria 129,488 Spain RENAULT CLIO France 3 Netherlands 186,548 Finland FIAT PUNTO Switzerland 143,388 Denmark FORD FIESTA %Fiat Portugal 2 (MAY YTD ’05 – MAY YTD’06) +58% Italy 186,667 Ireland RENAULT CLIO UK 147,012 Germany 1 PEUGEOT 206 10 NISSAN MICRA 2006 FIAT PANDA Growth of FIAT by WE market (MAY YTD ’05 – MAY YTD’06) 2005 (MAY YTD ’05 – MAY YTD’06) 3/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Consistent improvement in brand image Reasons for Purchase * 75% Technical Aspects 65% 55% Price/Financial Considerations 45% Driving Characteristics 35% Size 25% Design (Incl. Ergonomics) 15% 5% 2003 2004 2005 Price remains the main reason to buy, though rapidly declining Speed of brand image revitalization to accelerate in ’06 on the back of new products * Data Source: Fiat Brand – Marketing analysis on internal data Morgan Stanley Automotive Conference – London, June 21, 2006 4/29 Key drivers of the new Fiat Simplicity: life is complicated, let’s make it simple. Style: Italy is known for style, so is Fiat Speed: in a fast world, speed (of decision) makes the difference Surprise: the challenger has more room to make his mark Smile: smiling brands are more fun 5/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Putting it into practice New dealership design in partnership with Ikea Doing the unexpected Su rp r ise pli y cit d Smile At the heart of Grande Punto buying decision Spee Sim e St y l Accelerating time to market New, fresh advertising & marketing 6/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Simplicity Reception & Merchandising Area Info point & Car Configuration Salesperson Man Desk Area Lounge Bar & Free Service Area 7/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Style 40 30 I like it 20 10 0 Punto Grande Punto 40 Style 30 20 10 4 0 Int Design Punto 3 Grande Punto 2 1 Like it Style 0 Punto Grande Punto *Data Source: Fiat Brand – Marketing early buyers survey “reasons for purcahse” Morgan Stanley Automotive Conference – London, June 21, 2006 Int Design 8/29 Speed “Time to Market” of Bravo (“C” segment) Y1 Y1 Y2 Y3 Y2 Initial Budget: 32 Months Current Plan: 18 Months • Exclusive use of virtual engineering: no physical prototypes • 18 months from design freeze to production • First units built directly on assembly line using actual tooling 9/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Surprise FIAT - Ducati partnership For Panda “Monster” 10/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Smile 11/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Fiat brand strategy • Strengthen leadership and reinforce profitability in small car segment ¾Punto + Panda = WE n° 1 in A+B segment in ‘06 • Rebuild credibility in C segment ¾Launch of Bravo in Q1 ’07 • Better leverage R&D and OpEx across segments • Pursue revitalization of brand image ¾Quality, technology, safety, customer care • Reinforce distribution capabilities • Cautiously expand international reach 12/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Small Cars, Big Business 100% 23% 75% PANDA OLD VS PANDA NEW - MIX 3% 18% 25% 27% 4% 12% 33% 51% 49% 50% 73% 51% 45% 22% 22% 2005 2006 63% 25% 45% 33% 0% 2001 2002 Old Panda BASE 2003 2004 MEDIUM Panda Cross 1.3 75 cv €17,990 Megane 1.5 dCi/86 cv €18,450 HIGH Panda Margin by Version HIGH MEDIUM Panda Cross BASE 13/29 Morgan Stanley Automotive Conference – London, June 21, 2006 New 500: Fiat for the people, Fiat by the people “New 500” Internet Site 8,000 “500” designed 300,000 Registered Users 4,000,000 Contacts 1st Day More than 8,000 contacts The 500 Edge Stylish Iconic Italian Design Performance Multijet & Starjet Engines Accessible Price / Equipment Ratio Morgan Stanley Automotive Conference – London, June 21, 2006 Ecological Euro 4/5 Natural Power PDF Safety Euro NCAP, Airbags, ESP 14/29 New C Segment product highlights Style Sexy Italian hatch Quality Shooting for Japanese reliability & superior perceived quality Technology Targeting EuroNCAP 5 stars, new generation of turbo gasoline engines & advanced on-board electronics competitively priced 15/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Product range coverage of the market 40 35 30 25 20 15 35 31 25 10 19 24 12 5 0 Fiat Auto PSA Renault Toyota Ford VW Gr Total Models * Data Source: Fiat Brand – Marketing analysis on Global Insight data Morgan Stanley Automotive Conference – London, June 21, 2006 16/29 5 highest-selling models account for 90% of sales 100% 90% 80% 70% 60% 50% 92% 40% 90% 85% 90% 88% 88% 87% 82% 30% 20% 10% 29% 33% 29% 29% 23% 33% 33% 29% 0% Fiat Citroen Peugeot Opel Toyota Renault VW Ford Weight of 5 highest selling models on total product range for each company % of sales 5 highest selling models on total volume for each company 17/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Reducing costs without compromising brand repositioning Total Product Cost = 100 Specific Components 13% Internally shared components 22% Powertrain 1) Substantial reduction in engineering, development, product cost 2) Flexibility to retain differentiation 25% 40% Platform brand Stand alone > 10% cost reduction 20% 10% 10% Specific Components Internally shared components Externally shared Components 25% Shared powertrain 35% Shared platform Shared Distinctiveness Tradition 2008 2004 Modernity Affordability Morgan Stanley Automotive Conference – London, June 21, 2006 18/29 Product strategy focused on key customer targets Yesterday •Seniors twice market average, 18-29 year old only half market average •Ranked last in first family car and in household income Today New drivers New women Tomorrow New families New C Segment car + new familly car 19/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Growing appeal to younger customers & families Grande Punto buyers average age profile vs. main competitors Average 43 y 50 40 30 20 48.7 44.1 44.6 41.4 G. Punto F C 37.4 41.3 41.9 42.7 P P2 T PO 10 0 Punto Age breakdown Grande Punto vs. Punto buyers 30 Punto G. Punto 25 20 15 10 5 30.9 26.2 14.5 16.6 17.9 19.1 16.5 18.9 18.6 20.8 0 18 to 29 30 to 39 40 to 49 50 to 59 > 60 20/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Quality and technology sustaining brand image Eco Technology Quality 10% to 27% unit warranty cost reduction TGW / 100 Vehicles 200 Panda Fiat Auto Croma Punto Best Competitors Alfa 159 0 2000 - 2004 (Model Year) 2005 (Model Year) Fuel- and emission- efficient engine range Ranked among the top-3 carmakers with lowest CO2 emissions in 2005 Overall C02 emissions ~10% lower than ACEA average; more than 85% of engine range better than ACEA average Source: EUROPEAN SURVEY – 3 MONTH IN USE Safety Each of the new models launched in 2005 achieved top 5star EuroNcap rating Technology 159 + GSM + GPS 21/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Customer Care Takes in charge Customers’ requests, needs and expectations and gives answers First automaker to provide PanEuropean toll-free assistance number for each brand Contacts with customer increase Set up of a + 20 % from 54.000 to 65.000 contacts - 67,4% from 23 days to 7,5 days (I Q ’06 Italy) Customer Center Case closing time reduction Fiat Auto (last 6 months Europe) Manages Customer satisfaction and Loyalty improvement projects starting from the voice of the Customers (JDP Customer Care Approach – Pilot Project UK) Cross-Functional Task Force dedicated to the improvement in the different areas of competence (Product, Service and Network) Monitoring and control Results’ Visibility Product TASK FORCE Service Network Listening to Customer Requirements Morgan Stanley Automotive Conference – London, June 21, 2006 Integrated improvement Approach based on the system of listening and improvement provided by JD Power The methodology applied is 6 Sigma 22/29 Dealer network – Assessment Coverage gap Number of point of sales adequate to to meet volume objectives and face competition ≈ 2 000 Quality gap Volume lost due to coverage inefficiency ≈ 60k units Volume lost through dealer underperformance ≈ 60k units Average dealer profitability below 1% After-sales customer satisfaction consistently in market bottom tier Network with low fulfilment of standards (45%) and insufficient corporate identity (exterior 36%, indoor 21%) New environment a threat for established brands but an opportunity for challengers New entrepreneurs attracted by Fiat growth story 23/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Dealer network – Work in progress * FIAT Dealers Overall Satisfaction* 8,1 8,0 Germany France 7,9 UK 7,8 Spain 7,7 7,6 7,5 2003 120 2004 2005 Corporate identity coverage up to May 2006* * TARGET 2006 Up to May 06 100 80 60 Average 30% 40 20 Best Practice (over 30% of target) * Data Source: Fiat Brand – Marketing analysis on internal data Morgan Stanley Automotive Conference – London, June 21, 2006 K Sp ai n Po rt ug al Be lg N iu et m he rl an ds Near The Target (around 30%) U It al y G er m an y Au st ria D en m ar k H un ga Cz ry ec k Re p. Ir el an Sl ov d ak Re p. G re ec e Po la Sw nd itz er la nd Fr an ce 0 Need Acceleration (around 10%) * * Data Source: Fiat Brand – Marketing 24/29 Dealer network – The fix 2006-2008 Objectives Raise network profitability by 1 p.p.(2006) Reduce number of underperforming dealers to below 15% (2007) Reach 100% standards compliance (image & processes) (2007) Achieve 100% quality coverage (2007) Execution Lowering cost of mandate Make Fiat mandate easiest to manage Develop market’s most innovative and economical corporate identity concept with IKEA Fully extend e-link, one of the market’s most advanced customer interface software Establish Fiat-owned dealerships in strategic locations where no candidate is currently available (Paris, Brussels, London, Munich, Madrid…) Implement JD power customer care based approach (UK pilot project) Recruit 100 new dealers through taskforce-based approach, seduction package – 112 new dealers appointed in ’06 YTD, incl. 29 Fiat dealers 25/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Cautiously expand international reach Partnership with Severstal Auto Reinforce local organization Introduce European range to enhance brand image Partnership with Tata Leveraging strong Fiat Brazil organization in other SA markets • Re-launch Fiat brand with strong importer Combine global brand coordination and multi-centric operational approach • Leverage Fiat Auto regional expertise to develop business and products (Brazil -> South America; Turkey -> Eastern Europe…) • Introduce new-generation products on top of “world car platform” (Idea in Brazil, Grande Punto in Turkey) • Recruit strong importers in new countries (Australia, Egypt…) • Leverage industrial partnerships to develop commercial presence (Severstal Auto in Russia; Tata in India…) 26/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Conclusions • Our priority is to improve the brand image to the level of our traditional European competitors • We believe in the opportunity to concentrate our investments on few stronger products building on our leadership in small cars • New regulation improves our opportunity to challenge competition in distribution • We intend to selectively seize opportunities in markets outside Western Europe • The new Fiat believes in simplicity, speed (of decision and execution), surprise, style & smile 27/29 Morgan Stanley Automotive Conference – London, June 21, 2006 Safe Harbor Statement Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company’s businesses include its automotive, automotive-related and other sectors, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses. Forwardlooking statements with regard to the Group’s businesses involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for automotive and automotive-related products; factors affecting the agricultural business including commodities prices, weather, and governmental farm programs; general economic conditions in each of the Group’s markets; legislation, particularly that relating to automotive-related issues, agriculture, the environment, trade and commerce and infrastructure development; actions of competitors in the various industries in which the Group competes; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; political and civil unrest; and other risks and uncertainties. Morgan Stanley Automotive Conference – London, June 21, 2006 28/29 Contacts Fiat Investor Relations team Marcello Ledda phone: +39-011-006-3290 Vice President Barbara D’Andrea Vincenzo Torrisi Zaira Laganà phone: phone: phone: +39-011-006-2052 +39-011-006-2749 +39-011-006-2709 fax: email: +39-011-006-3796 [email protected] website: www.fiatgroup.com 29/29 Morgan Stanley Automotive Conference – London, June 21, 2006