After launching Fiat UNO for about five months, PT Federal Mobil faced a sales problem that is below its target. PT Federal Mobil then wanted to review its marketing strategy and to look for other marketing strategy ideas, in order to improve the sales volume.



The methods of data collection were group discussions, market survey and interviews. From the data collected, it is obvious that there are negative perceptions toward the Fiat make. These negative perceptions such as: easy to overheat, unavailability of spare-parts, etc., are multiplied by the fact that the previous Fiat dealer has been inactive for about eight years.



To overcome these probleK1S, PT Federal Mobil is recommended to adopt the moderate break-even volume strategy, that has a slightly higher break-even volume than the present strategy. PT Federal Mobil can increase its advertising and promotion expenses a little, and it can also decrease the contribution margin by giving bonus to the customers and the sales persons. The result t is to increase the break-even volume but not too much.



To improve the marketing strategy, PT Federal Mobil is recommended to continue implementing the positioning strategy (no specific target market in terms of age and sex), but it is better to change the main theme of Fiat UNO present advertisement to emphasize fuel economy and ASTRA. The Supportive themes are: comfort, safety, durable engine and spacious, since these are the main attributes people are looking for in buying a car.



It is recommended that Fiat UNO is targeted to small families (2 to 4 persons), with total income of at least two mi 11 ion r11piahs per month, who are living in the medium to big cities, with the psychographics criteria: conscious about fuel economy, safety, performance & quality; but also like to have spacious and complete accessories in the car.



In supporting the preceding strategy, PT Federal Mobi1 is recommended to "pull" the prospective customer by giving one year free car insurance as well as spare parts & service, and guarantee the resale value of Fiat UNO.



In implementing the "push" strategy, PT Federal Mobil is recommended to give a special bonus to their sales persons as well as their dealers' sales persons in order to motivate them more.



To be able to communicate effectively and to get a bigger impact of Fiat UNO's advertisement, Test Drive is recommended. And PT Federal Mobil should give something to respondents to reduce their reluctance to come to a Test Drive. The emphasis of the Test Drive is more to change people perceptions.



Research location:PT Federal Mobil

Supervisor: Timothy J. Malloy

Accepted: December 10, 1989.