Restructuring / Turnaround Strategies Case Study

Case Title:

New Fiat 500: Revival of a Heritage Brand

Abstract:
Fiat Auto, a leading player in the automobile industry, has lost market share and sustained losses between 1999 till 2003. Its new strategy enabled Fiat to turnaround its auto business and return to profitability in the fourth quarter of 2006. But the company feared a reversal of fortunes. Keeping in mind the changing market trends and consumer behavior, Fiat decided to broaden its product portfolio. It decided to relaunch its heritage brand ‘Fiat 500’. In addition to increasing its market share, the relaunch was also expected to secure its turnaround.

Pedagogical Objectives:

• To analyse and discuss heritage branding
• To discuss Fiat’s decline and its return to profitability in auto industry
• To discuss the challenges faced by Fiat in the process of reviving its Fiat 500 brand
• To understand the role of promotion and advertising while relaunching an erstwhile brand
• To analyse whether Fiat can restore the past glory by introducing Fiat 500 amidst competition from the existing players like Toyota, Volkswagen, etc and adapt to the changing trends in the automobile industry.

Keywords : Fiat 500; Heritage Brand; Branding; Fiat’s Decline; Fiat’s Turnaround; Brand Nostalgia; Brand Revival; Automobile Industry; Sergio Marchionne; Restructuring - Turnaround Strategies Case Study; New Product Launch