Fiat is an Italian automaker established in 1899 that is known for iconic cars like the 500. In 2007, Fiat launched a new 500 model and involved over 3.7 million potential customers in its design and marketing. Customers contributed ideas online and helped select accessories. Fiat utilized emotional and street marketing techniques to launch the new 500 and target customers aged 18-50. The car began at affordable price points between 10,500-14,500 euros through various financing options.

2. What is Fiat? Fiat is the acronym of Fabbrica Italiana Automobili Torino. It was established on the 11th July 1899 by Giovanni Agnelli, and now it is one of the most important Italian holding company.

3. The story of a myth Some cars are important only for their technological or stylistic innovation Other cars are called to mind for their importance in the everyday life of generation and generation of people Only few cars are remembered for both the elements: THE NEW 500: TECHNIQUE AND FEELINGS

4. Launched into the market 4th July 2007 SPECIFICATIONS: Innate elegance sense Small dimension, but spacious and comfortable Agile and sprintable TARGET: 18-50 years old

5. The new fiat’s bet 500 wants you It is a project that exploited the web to make the people involved in the planning and design of the car. The website fiat500.com was visited by 3,700 million people that contributed to the creation of the new 500, a product that didn’t exist before.

6. Internet Marketing Mix Features: Sharing of emotions and ideas Creation of a space of co-planning and collaboration “ we believe in a marketing ever growing interactive, where the consumer becomes “consum-actor” and so the protagonist”. Fabio Galetto, Marketing Manager

7. Collaborative Innovation 4 steps in collaboration with customers to develop the product idea: Ideas’ Creation Ideas’ Selection Product’s Developing Product’s Launch

8. Ideas’ Creation Customers are: Engaged in the design . 500 days before the launch Fiat invited potential buyers to a web site to design accessories for the car. 8000 did so! Now there are over 100 accessories available. Accessories customers find relevant and appealing. The most popular, a clear glass roof. Second most popular, Italian colors as racing strips. Italian pride (emotion). Engaged in Customization of their Car . Ford and Chrysler offered online "build your car" tools for years. Fiat has taken it a step further. They add emotions. One example is by listing the passionate ways existing users describe accessories. Fiat has engineered a way to get customers engaged online and offline.

9. Customers are: Engaged in the Launch . Customers generated the themes for advertising. Think about it! Who knows how to reach potential customers in a more meaningful way than customers who are already involved?

10. Also consumers were invited to create a Fiat 500 adv, to create a Fiat 500 video, to design a Fiat 500 car, to design a Fiat 500 mascot, to send in a Fiat 500 photograph, to design Fiat 500 sticker art, to design the Fiat 500 website, to say "Fiat 500" in their language, and finally enter the Fiat 500 – Design Boom competition (judges included Giorgio Armani and the President of the Fiat Group). Ideas’ Selection

11. Product’s Developing FIAT, with the collaboration of more than 3,700,000 potential customers, has developed the new 500. It was the first to be built with a shared social and design typical of Web 2.0.

12. Product’s Launch Fiat utilized two differents ways to launch Fiat 500: Emotional Marketing Street Marketing

13. Emotional Marketing The Law of Heart (Emotion) Marketing strategies without emotion will not work. Emotion stimulates the mind 3000 times faster than rational thought. It's an emotional world we live in. Many people say we live in a rational world but nothing could be further from the truth. Emotions drive our behavior. The world is driven by emotions. Rational thought leads customers to be interested but it is emotion that sells. People really aren't much interested in attributes; they want to know if they can have a product that suits their personality. It is all about values. Emotional marketing is better in many instances than rational marketing that focuses on product attributes. Capturing minds is one thing; capturing hearts is quite another.

14. Street Marketing Street marketing is a form of communication that takes place in the street and tries to entertain the audience in order to make the public the actor of the promotion.

15. Price Fiat Automobile CEO defines the new Fiat 500 inclusive and not exclusive because with it Fiat wants to offer all the fundamental contents for the consumer without an increase on the price. There are three on road prices: 10.500, 12.500 and 14.500 Euros Two available financial formulas : “ 500 cents” allows the customer to have the car, and gives them a choice from all Fiat 500 models paying only 5 Euros a day. "50to500” this allows the buyer to pay the car in two installments: 50% immediately and 50% after two years

16. Placement Direct channel distribution: the customer can personalize its own fiat 500 and buy it on-line. Indirect channel distribution: Fiat has a lot of agents in Europe ( about 500.000) to bring Fiat 500 everywhere the customers want.

17. Customers’ Response In Italy: excellent results In France: Fiat 500 has had good performance In U.K. : customers have criticized the price. In Spain: Spanish people don’t like Fiat 500’s design, because they think that it looks like old Micra (Nissan). In German: At moment bad results, the automobile’s market is saturated.