Marketing Plan On Alfa Romeo

PRICING STRATEGY:

Price of a product is very important and determines the demand for the same. The Alfa Romeo MiTo, being new to the Australian car market and considering the pedigree of the Alfa Romeo brand and the world class product itself, we should define the price using the Value based pricing logic with sensitivity towards the cost based pricing logic since this is not a mass market.

Its nearest competitor is the Mini cooper being sold via the BMW network. It is very important to have the price very close to a similarly equipped Mini. The value proposition for the said costs has to be well communicated to the prospective customers. The finally defined cost should cover all the internal costs that have been incurred towards the development of the MiTo.

PROMOTION STRATEGIES:

‘Sales promotions are tools that are used to make an immediate sale by influencing customer perceptions and behaviour and to build market share’ (Kotler et all, 2010, p. 478)

There are number of methods of sales promotions. For the Alfa Romeo MiTo, sales promotions are to be done by offering free test rides, patronage rewards, point-of-purchase incentives and event marketing.

Competing in the premium small car market, prospective customers can be offered free test drives that they can book via the internet or telephone. The car can be brought to their door step for a free test drive. This would also give us the opportunity personal selling.

Value differentiation can be done by having get-togethers for Alfa Romeo owners at scenic spots away from their day to day activities. This would promote the unique driving experience that is provided by the MiTo. Rewards can also be provided to retain the customer when he chooses to change his Alfa Romeo by offering discounts on his next upgrade model available on the Alfa Romeo range.

Point-of-purchase incentives are provided to instantly make the sale. Offering free insurance, extended warranty etc could be offered to make the sale once the customer has shown interest in the MiTo. These offers are to be used judiciously.

Traditionally Alfa Romeo has not out sold its competitors. All the Alfa Romeo cars have received positive comments from its customers.

Alfa Romeo has that racing heritage and heritage of famous personalities attached to it. Hence it is very important to communicate these virtues completely to the prospective customers. Alfa Romeo is a part of the Fiat group of automobiles which supports the Scuderia Ferrari F1 team in Formula1 racing and the Fiat Yamaha team in MOTOGP. Both high profile teams and winners of titles in their respective series in the recent past and are expected to be title contenders this current year. Leveraging Fiat’s involvement with these teams and having promotional campaigns at these races would help communicate effectively the racing pedigree of the brand. This would further improve the brand value in the mind of the customers.

DISTRIBUTION STRATEGIES:

It is very important to have enough stock so as to cater to the customer. Sales volumes of the MiTo are not going to be high and all Alfa Romeo cars are manufactured in Italy, hence it is very important to maintain the correct levels of inventory. Inventory is equivalent to money. Only when the inventory is sold there is revenue for the company.

The Alfa Romeo MiTo being a niche product there is a considerable amount of customisation that is provided as options to the customers. The cars with all the critical and standard components and the outer shell can be assembled in Italy. The interior options can be stocked at selected points to service the dealers. It is not necessary for all the dealers to stock the MiTo with all the colour options. The fast moving colours should be available with all the dealers where as the slow moving ones can be split and stocked among the dealers and transferred to the specific dealer as the need arises. The interior options that are picked by the customer can be assembled at the dealers point.

The overall objective would be to service the new order from the customer within seven working days after the customer makes the token payment for the delivery of the car.