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The Ill F(i)ated Company

Discussion in 'Fiat India News' started by kedarbendre, Nov 4, 2011.

  1. I agree with all of you. I have had 3 generations of FIAT (Premier Padmini, Uno and then Linea). Despite several blunders, I think FIAT is now headed in the right direction.

    1. Branding: FIAT has done a poor job at it. No one really knows that this brand owns Alfa Romeo, Maserati, Lancia and Ferarri. Though I believe that Ferarri is a little distant child and they don't even have the Ferarri logo in FIAT headquarter reception (from what I know), but this can be used. FIAT had plans to open Branding stores in all metropolitan cities which will highlight its heritage and the brands that come under its umbrella.

    2. Customer Service: FIAT now has customer service second to none. I have experienced Maruti service and trust me, FIAT is much better. The company site has a "CEO Corner" and if you raise an issue there, you are bound to get proper response. One of my friend was cheated into paying more by ABS Motors Gurgaon for his parking sensors on his Linea. He later figured out the price variation through FIAT website. The dealer frantically called him after he raised this on "CEO Corner" and returned the entire amount to him as a gesture of goodwill.

    Having said that. There are several areas where FIAT is still failing and is not in line with today's world.

    1. Customer Engagement/Marketing: While organizations in various fields are trying to build/rebuild image using their happy customer base, FIAT doesn't seem to be close to such innovation. Look at the new FORD ad campaign. Leagues ahead of FIAT. The fact that this form exists in India is a testiment of existence of a huge fan following. The have to figure out a way to explode this into a massive customer led marketing effort.

    2. Company Profiling/history: Almost everyone in Diesel world knows the contribution of FIAT towards modern common rail engines. That is the reason behind development of such an amazing MJD engine. But does a commoner who reaches out to buy a Maruti/TATA know about this, I don't think so. The only way is to start actively informing customer's about the brand history, instead of waiting for customers' to stumble upon such info.

    3. Company Structure: Let's say someone has a brilliant patented product. Common business sense says that one should not share the product, especially with competition. But FIAT is structured differently. They have a different business unit for powertrains which has its own P&L. They are the ones responsible for sharing of engine platform with competition. Imagine... No Swift DDIS (which has waiting of 3 months since introduction), No Indica with advanced engine.. Only Punto with 1.3 MJD. What option would an Indian customer had if this was the current scenario? All diesel buyers in premium hatchback will be limited to chose between FABIA, Pricy i20 and Grande Punto. You can imagine the sales numbers of FIAT in India then. Can't blame the CEO of Fiat-India for this though. But FIAT should learn from this loss of revenue which now runs into billions.

    4. Awards/Recognitions: Fiat's ranking on JD Power Customer Satisfaction was second to Maruti Suzuki (849) at 801 with Industry Average at 801. Fiat didn't do much about using this apart from a few ads in newspapers. Here is the blunder.... In 2011 survey FIAT dropped to thrid last above Skoka and M&M only.

    5. Dealer Satisfaction: Ever figured out why the sales experience is so poor when you plan to buy a FIAT. Fiat scores a second last on dealer satisfaction with Auto Manufacturers, just above TATA (2011 India Dealer Satisfaction with Automotive Manufacturers Study | JDPower.com). If dealers are not happy, they don't translate into happy customers.

    FIAT seriously needs to move its team into top gear to drive change.
    6 people like this.
  2. Srini

    Srini Regolare

    Excellent analysis dexter!!
  3. jayadev

    jayadev Esperto

    Kannur, India
    Grande Punto 1.3 90 HP
    That is something of news and exactly spoke my mind.
    Last edited: Nov 19, 2011
  4. J Ravi

    J Ravi Esperto

    Now, there is no CEO Corner in FIAT India website. They have removed it for the reasons known to themselves.
  5. amit

    amit Superiore

    Navi Mumbai
    Is this something to be proud off? When the CEO / CEO's staff needs to get involved in sorting out a minor issue of some dealer in the country overcharging a customer for parking sensors then there is something seriously wrong with the processes set in place by the manufacturer.
    Last edited: Nov 19, 2011
  6. This certainly isn't anything to boast of. Please note that the CEOs corner/section on any website is usually managed by a team which reports into CEO only because he/she is interested in such an activity. In case of FIAT India, they better do so to improve the company's image.

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