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Fiat Chrysler global CMO says brand purpose not scale key to success in crowded market

Olivier FranscoisFiat Chrysler’s global head of marketing says he is not concerned that the Fiat brand will never reach a significant scale in the Australian market, believing instead its unique position will work to its benefit.

Fiat Chrysler has just one volume brand in the Australian market – Jeep – which has lifted sales on the back of the I Bought a Jeep campaign.

Speaking exclusively with Mumbrella Olivier Francois admitted he viewed Australia as a “crowded” marketplace which means brands like Fiat need to push the idea of brand purpose harder.

While an average of more than 2000 jeeps are sold in Australia each month, other Chrysler brands including, Alfa Romeo, and, of course, Chrysler itself, all have monthly sales under 200 cars each. The Fiat brand boasts sales of just under 300 in an average month compared to brands such as Holden and Toyota which can sell several thousand.

Francois, who overseas marketing for all of FCA including Jeep, Dodge, RAM, Chrysler and Fiat, was in Australia this week to launch Fiat’s new crossover version of the Fiat 500, the 500X.

https://www.youtube.com/watch?v=YAcLViTHDOo

The 500X is the brand’s first move into the SUV market.

Francois said he is comfortable that a brand like Fiat will never be a volume player, saying its unique approach to automotive marketing is hitting home runs in the US and giving Chrysler’s suite of brands a unique position.

He said Australia represented a major challenge with one of the most crowded markets per capita in the world.

“There are 47 brands and over 300 name plates in your marketplace, so I can’t just show up in your marketplace and pretend that you need me. No, I must have a purpose, a reason why,” said Francois.

He has engineered a marketing path of success for Fiat Chrysler and for 68 consecutive months in the US Chrysler has seen month on month sales rises – an astonishing feat for a company that was placed in bankruptcy just six years ago.

He said the strategy of tapping into popular culture and aligning FCA brands with musicians has been behind the success and he expects to be able to replicate, creating a unique attraction for Fiat in Australia with a local approach to the global brand, although there are no current plans to sign local artists

“We must play to the currency of desire. That we do something to get people excited,” he said.

“The last thing the Australian market needs is another nameplate or another brand. (But) Fiat is not a normal brand, it embodies an experience that couldn’t be found in the market before. Being Italian allows you to bring something unique to the market.”

While FCA brands in the US had played on huge stages such as the Superbowl, where it debuted its marketing for the new crossover car, he admitted the lack of such a platform in Australia meant that personalisation and getting close to customers was a key to driving Fiat.

The new Fiat 500X is one of the most customisable cars in the market, with a dozen colours and other options such as a Beats by Dre sound system, allowing it to be treated as a fashion accessory as well as a mode of transport.

Simon Canning

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