"Rinascimento" Fiat Brand - A progress Report

Transcription

“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
The reports of my death are greatly exaggerated (Mark Twain)
Fortune
Panorama Economy
January 13, 2003
June 17, 2005
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
+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
2005
3/29
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
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
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
Simplicity
Reception & Merchandising Area
Info point & Car Configuration
Salesperson Man Desk Area
Lounge Bar & Free Service Area
7/29
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”
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
Surprise
FIAT - Ducati partnership
For Panda “Monster”
10/29
Smile
11/29
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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.
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