Fiat To launch Brand Stores, Without TATA!!!

New Delhi: As its partnership with Tata Motors failed to yield desired results, Fiat is charting out a new strategy to turn around its fortunes. The Italian car major plans to open exclusive companyowned brand stores in major cities, apart from hiring a consultant to suggest revival path. The brand stores would be an indirect way of starting its own retail format without involving Tata Motors, though the company has denied this. The stores will help in generating inquiries (and hence sales), with the aim of marketing Fiat cars.

Fiat has been a laggard in the Indian market, despite having competitive products like Punto and Linea and failed to ride the boom in car sales. Alarmed, it is now taking steps to highlight the brand more aggressively, “something that will be done through the exclusive brand stores,” Rajeev Kapoor, MD of Fiat’s India operations, told TOI. The company, which has seen sales fall 8% in the first six months of this fiscal at a time when the overall car market boomed 34%, will open the brand stores, or “image points”, at Delhi, Mumbai, Pune, Chennai and Bangalore. “These stores will display the “real” Fiat brand, and would be a place for meetings, a place for small gatherings and events," Kapoor said. Fiat will also display its merchandise and accessories at these brand stores, which will also serve authentic Italian coffee. “We want the customers to experience what the Fiat brand stands for as we feel that the focus at the dealerships is more on selling cars than on brand promotion.” Fiat, known globally for style and flair, is trying to recreate the model that it has developed in several countries to highlight its brand. Globally, the company has several image points to showcase brands like Fiat, Lancia, Alfa Romeo and Maserati.

Kapoor, however, emphasised that the stores will not mean setting up of an independent retail network by Fiat. “This will remain confined to the joint Tata-Fiat dealerships. But yes, the stores will help in generating sales inquiries and pass them on to the dealerships.”

Fiat has also hired global consultancy firm Accenture to suggest ways to improve its position in India. “It will have a comprehensive look at our retail network in India and point out weaknesses and ways to address them.”
Fiat and Tata Motors have a 50:50 joint venture, Fiat India Automobiles.

----

As Per TOI - 21 Oct. 2010

I am holding back my judgement on this.

As I see it : these are going to be only stores to showcase the brand. These are not going to be "showrooms" where you can book cars, get test drives etc. These are only going to points for generating inquiries.

If this plan is to materialise, I think Fiat should ALSO arrange for test drives at these stores. Imagine you are a customer, you go to this store and just get to SEE the car. If you have to test drive it you will have to go to a Tata showroom !! For me : that is dumb.

Tata Stores can be at the back end. As far as possible Fiat SHOULD NOT expose customers to a tata showroom. Take the bookings at these "brand stores", arrange for test drives etc and then the Fiat sales personnel handles all the work with Tata.

If I am buying a car, I want to go to ONE place for all transactions related to the car. I don't want to go to a "brand store" to see it and to a "showroom" to test drive it and book it. I don't give a damn to which Tata Fiat dealer the sales guy goes.

Net Net : make this "brand store" a "ONE STOP SHOP" for purchasing a Fiat car.

I feel it is a good move for creating Brand image, which is the biggest problem currently. Since it is unlikely for Fiat to break JV and open its own dealers/service center, this move will create some image. It will be good if they take customers interest in Fiat cars and use Tata service in back-end.

Looks Accenture's report is going to be vital for Fiat's plan in India.

I really liked, what Bajaj did for Pulsar 220 by opening ProBiking Lounge at major cities. It was first of its kind and lifted Pulsar image to a different level. Bajaj made it very clear that they are serious about biking and wants to get away from that old scooter tag.

I visited the ProBiking lounge, it was completely a different feeling. Loved the environment, got chance to look at the engine thoroughly which were kept on display. Not only engine but the entire parts used on Pulsar 220. I even took the test drive in there closed RPM room. later when I insisted that I want to drive it on road, they arranged the bike and immediately after the test ride, I booked the bike on the spot.

Fiat is doing the same, and I guess it will be first of its kind and will definitely build the TRUE Brand awareness, specially among the Indian customer who blindly follows "Bhed Chaal" when it comes to decide upon which car to buy!!!

I loved the Idea and yes as Amogh rightly mentioned it will add more value if they also arrange a test drive and Booking option as well.

GOOD LUCK FIAT!!!

So next teamfiat meet can be arranged there, officially. :mrgreen:

Oh yessss!