Stellantis Marketing Strategy 2024: A Case Study

In this case study, we will explore Stellantis’ marketing strategy for 2024, focusing on its approach to automotive marketing, digital campaigns, and brand strategy. We will analyze how the company utilizes customer segmentation to meet diverse needs, invests in software and electrification, and aims to become a technology-driven leader in the automotive market.

Key Takeaways:

  • Stellantis, formed in 2021 through the merger of Fiat Chrysler Automobiles and the PSA Group, aims to achieve carbon neutrality by 2038.
  • The company plans to hire 4,500 software engineers to enhance its software development expertise.
  • Stellantis is investing in electrification to increase the production of low emission vehicles.
  • By utilizing geographical, demographic, behavioral, and psychographic segmentation in its marketing strategy, Stellantis targets different regions based on unique market dynamics and preferences.
  • Understanding demographic factors helps Stellantis customize products and services for specific customer groups.
  • Behavioral segmentation helps identify customers with similar buying habits and preferences.
  • Psychographic segmentation enables Stellantis to align products with customers’ psychological characteristics, values, and lifestyles.
  • Stellantis has a portfolio of 14 iconic and innovative brands covering all price points and multiple regional markets.
  • The company aims to achieve double-digit margins across the cycle and deliver positive industrial free cash flows in 2024.
  • Stellantis is making a $1.1 billion investment in Zhejiang Leapmotor Technologies Ltd. to strengthen its position in the electric vehicle market.

Stellantis’ Formation and Market Segments

Stellantis, the fourth-largest automaker in the world by sales in 2023, was formed through the merger of Fiat Chrysler Automobiles and the PSA Group. With its formation, Stellantis has brought together 14 iconic car brands, including Jeep, Ram, Alfa Romeo, Maserati, and many more, under one umbrella.

One key element of Stellantis’ marketing strategy is market segmentation, which enables the company to cater to the diverse needs of its customers. Through market segmentation, Stellantis analyzes different segments of the market and tailors its products and marketing efforts accordingly. This strategy allows the company to effectively address regional challenges, understand customer preferences based on demographics and behaviors, and create products that align with customers’ values and lifestyles.

Stellantis’ global reach spans over 30 countries, with manufacturing facilities across Europe, North America, South America, and Asia. This extensive presence enables the company to efficiently serve customers worldwide and adapt to regional market demands. Stellantis has a customer base spread across 130 markets, showcasing its commitment to meeting the needs of diverse consumers around the globe.



Stellantis’ market segmentation approach encompasses several key areas:

Geographical Segmentation

With operations in more than 130 countries, Stellantis understands the importance of tailoring its products and marketing efforts to specific geographic regions. This allows the company to adapt to local regulations, preferences, and needs, ensuring its products resonate well with customers in each market.

Demographic Segmentation

Stellantis recognizes that different demographic groups have unique preferences and needs when it comes to automobiles. By analyzing factors such as age, gender, income, and occupation, Stellantis is able to develop products that cater to specific demographics. For example, models like the Fiat 500 and Jeep Wrangler are targeted towards young, urban consumers, while the Ram trucks appeal to individuals with a need for durability and towing capabilities.

Behavioral Segmentation

Understanding customer behaviors is crucial in developing effective marketing strategies. Stellantis conducts thorough research to identify behavioral patterns and preferences. By analyzing factors such as usage occasions, brand loyalty, and purchase motivations, Stellantis is able to create products and promotional campaigns that resonate with the desires and expectations of its target customers.

Psychographic Segmentation

Psychographic segmentation focuses on understanding consumers’ lifestyles, values, attitudes, and interests. Stellantis evaluates psychographic factors to develop vehicles that align with consumers’ aspirations and self-image. By appealing to specific psychographic segments, Stellantis can create a deeper connection between consumers and its brands.

Through its comprehensive market segmentation approach, Stellantis ensures that its products are designed and marketed with precision and relevance. This strategic focus enables the company to meet the evolving demands of customers worldwide and maintain a strong position in the highly competitive automotive industry.

Key Facts Stellantis Market Segmentation Approach
Number of Brands 14 iconic car brands
Global Reach Operations in more than 130 countries
Manufacturing Hubs Italy, France, United States, Brazil
Geographical Segmentation Customized products and marketing for specific regions
Demographic Segmentation Tailored products for different age, gender, and income groups
Behavioral Segmentation Understanding usage occasions, loyalty, and motivations
Psychographic Segmentation Creating vehicles that resonate with consumers’ lifestyles and values

Geographical Segmentation

Stellantis, the global automotive powerhouse, operates in more than 130 countries, catering to a diverse customer base around the world. With a strong presence in key markets, Stellantis strategically utilizes geographical segmentation to drive market penetration and deliver tailored marketing strategies.

Stellantis has a vast brand portfolio that includes well-known names such as Fiat, Chrysler, Jeep, Peugeot, Citroën, and Opel/Vauxhall. By leveraging the strengths and unique characteristics of each brand, Stellantis effectively caters to the specific demands and preferences of customers in different regions.

Operating across Europe, North America, South America, and Asia, Stellantis has established numerous manufacturing facilities and R&D centers. This extensive geographical footprint allows the company to optimize its operations, manufacturing processes, and supply chain management.

To further solidify its commitment to sustainability, Stellantis aims to achieve carbon neutrality by 2038 while reducing its carbon dioxide emissions. The company has set sustainability goals focused on eco-friendly practices and is investing in sustainable manufacturing processes.

Stellantis understands the importance of innovation and sustainability in shaping the future of the automotive industry. The company is heavily investing in electric and autonomous vehicles, aiming to transition its vehicle lineup to electric and hybrid models by 2025. By 2030, Stellantis plans for a significant portion of its sales in major markets to be electric vehicles, aligning with its business strategy focused on electrification and sustainability.

With a strong emphasis on diversity and ethical responsibility, Stellantis ensures that its operations align with global standards. The company operates approximately 400 manufacturing facilities and R&D centers globally, showcasing its extensive reach and commitment to the automotive industry.

Regional Vehicle Segments Revenue Breakdown (%) Profit Margin (%)
North America (U.S., Canada, Mexico) 65% 6.5%
Enlarged Europe (EU countries, United Kingdom)
Middle East & Africa (Turkey, Morocco, Egypt, Algeria)
South America (Central America, Caribbean islands)
China and India & Asia Pacific (Asia, Pacific countries)
Luxury Brand Segment – Maserati

With its global market expansion plans, focused investments in innovation and technology, operational efficiency, brand strategy, customer-centric approach, and commitment to sustainability and corporate responsibility, Stellantis is well-positioned to capitalize on its geographical segmentation strategy and emerge as a leader in the automotive industry.

Demographic Segmentation

Demographic segmentation plays a vital role in Stellantis’ marketing strategy. By analyzing factors such as age, gender, and occupation, the company gains valuable insights into the diverse needs and preferences of different customer groups. This valuable information enables Stellantis to develop targeted marketing campaigns and create customized products and services that cater specifically to the unique demographics of its customer base.

One important aspect of demographic segmentation is age segmentation, which allows marketers to target specific generational cohorts. Stellantis recognizes the distinct characteristics and preferences of generations such as Generation Z, Millennials, Generation X, and Baby Boomers. By tailoring their offerings and messaging to each generation, Stellantis can effectively engage with and capture the attention of their target audience.

Gender segmentation is another vital demographic factor considered by Stellantis. By tailoring products and messaging based on gender preferences, the company can better meet the specific needs and desires of male and female consumers alike. This approach ensures that Stellantis’ offerings resonate with customers, driving greater brand affinity and loyalty.

Furthermore, income segmentation is an important demographic element utilized by Stellantis. By targeting consumers with varying disposable incomes, from affluent individuals to budget-conscious shoppers, the company addresses the diverse purchasing power of its customer base. This allows Stellantis to position its products and pricing strategies accordingly, ensuring accessibility to a broader range of consumers.

Geographic segmentation is also a crucial aspect of Stellantis’ marketing efforts. Categorizing consumers based on location, climate, and cultural differences enables the company to tailor its offerings to specific regions or markets. For example, Stellantis identifies North America as a significant market for electric vehicles and focuses its efforts on meeting the growing demand for sustainable transportation solutions in this region.

By employing behavioral segmentation, Stellantis gains insights into consumer behaviors, usage rates, purchase occasions, and loyalty status. This allows the company to develop targeted strategies that effectively engage customers at different stages of the purchasing journey. Understanding consumer behaviors and preferences enables Stellantis to deliver personalized experiences, strengthen customer relationships, and drive brand loyalty.

Overall, demographic segmentation empowers Stellantis to refine its marketing strategies, develop targeted campaigns, and create customized products and services tailored to the unique needs and preferences of its diverse customer segments. By understanding the distinct characteristics and requirements of different demographics, Stellantis can forge deeper connections with its customers and remain at the forefront of the ever-evolving automotive industry.

Behavioral Segmentation

Stellantis understands the importance of customer behavior in shaping effective marketing strategies. With advanced analytics and machine learning algorithms, the company can precisely target audiences based on their specific buying habits and preferences. By leveraging data analytics and customer insights gathered from customer interactions, market research, and behavioral tracking, Stellantis gains valuable information to inform segmentation, targeting, and positioning (STP) decisions.

Behavioral segmentation allows Stellantis to tailor personalized marketing strategies that resonate with individual customers. By analyzing key performance indicators (KPIs) like customer acquisition cost (CAC), customer lifetime value (CLV), and conversion rates, the company gains insights into the success of its STP initiatives. Regular market research, consumer feedback, and A/B testing further enhance Stellantis’ understanding of its target audiences, enabling the development of resonant messaging, offers, and creative variations.

Effective implementation of STP requires collaboration across departments such as marketing, sales, product development, and customer service. This seamless cooperation ensures consistency and coherence in Stellantis’ marketing efforts, allowing for a unified approach to engage with customers at different stages of the buying journey.

Psychographic Segmentation

Psychographic segmentation plays a crucial role in understanding customer attitudes, interests, and aspirations. By analyzing customers’ psychological characteristics, values, and lifestyles, Stellantis aims to develop a deep understanding of its target audience. This approach allows the company to create resonating marketing messages and design products that align with customers’ unique identities and aspirations.

To effectively implement psychographic segmentation, Stellantis utilizes the VALS framework, which classifies consumers into distinct groups based on their psychographic profiles. Through this framework, the company recognizes that different customer segments have varying levels of affinity for the Jeep brand.

Among the VALS types, Thinkers, Achievers, and Innovators exhibit high levels of Jeep ownership. Innovators, in particular, boast the highest incomes among the VALS types, showcasing their strong purchasing power and potential as luxury vehicle buyers. On the other hand, Experiencers demonstrate the greatest aspiration for the Jeep brand, with 18% indicating their intention to purchase a Jeep vehicle.

By identifying these psychographic segments and their specific preferences, Stellantis can tailor its marketing strategies and product offerings to better resonate with each target audience. Whether catering to the adventurous spirit of Experiencers or appealing to the status-conscious Innovators, Stellantis strives to create a strong emotional connection with its customers.

Stellantis’ Focus on Electric Vehicles

Stellantis is making significant strides in the electric vehicle (EV) market, with a strong focus on capturing the U.S. market. The company recognizes the growing demand for EVs and is strategically aligning its product strategy to cater to American consumers’ preferences.

One key aspect of Stellantis’ approach is offering electric versions of popular vehicle types that resonate with U.S. customers. This includes electric pickups, SUVs, and muscle cars. By providing EV options in these segments, Stellantis aims to appeal to the American love for larger vehicles while promoting sustainable mobility.

In line with its commitment to electrification, Stellantis plans to offer over 75 battery electric vehicle (BEV) models by 2030. This extensive lineup demonstrates the company’s dedication to providing a diverse range of electric options to meet the needs of different customer segments. Stellantis aims to achieve a 50% sales mix of passenger car BEVs in the U.S. market by 2030.

To support its ambitious EV goals, Stellantis has allocated significant investment. The company plans to invest over €50 billion in electrification over the next decade. This investment will drive the development and production of advanced electric technologies, including battery cells, packs, and innovative integration systems.

Furthermore, Stellantis is actively building a global network of gigafactories to ensure sufficient battery production capacity. By 2030, the company aims to establish six gigafactories capable of delivering up to 400 gigawatt-hours of batteries annually. This strategic move will enable Stellantis to meet the growing demand for EVs and support its expansion in key markets, including the U.S.

Stellantis’ commitment to sustainability extends beyond electrification. The company aims to incorporate green materials into its vehicles, with a target of launching the first vehicles containing 40% recycled and bio-sourced materials by 2030.

Moreover, Stellantis is exploring various innovative battery technologies, such as solid-state, sodium-ion, and lithium-sulfur, to enhance the performance and range of its EVs. The company is also implementing low-emissions propulsion technologies, including zero tailpipe emissions hydrogen fuel cell power for its light commercial vehicles.

To further strengthen its position in the EV market, Stellantis has established key partnerships. One notable collaboration is with Leapmotor, a leading Chinese electric vehicle manufacturer. Through this joint venture, Stellantis aims to leverage Leapmotor’s EV ecosystem in China to meet its Dare Forward 2030 electrification targets.

With its focused product strategy, substantial investment, and commitment to sustainability, Stellantis is well-positioned to drive the adoption of electric vehicles in the U.S. market and propel the future of sustainable mobility.

Stellantis’ EV Statistics 2025 2030
Total BEV Nameplates 75
Total EV Sales (units) 5 million
Investment in Electrification (€) €30 billion Over €50 billion
Battery Production Capacity (gigawatt-hours/year) Up to 400

Stellantis’ Transformation Plan

Stellantis, the global automotive leader, has devised an ambitious transformation plan to adapt to the evolving market dynamics and drive future growth. Recognizing the need to stay ahead in a rapidly changing industry, the company is focusing on two key areas: software development and electrification.

As part of the Stellantis Transformation Plan, the company aims to strengthen its expertise in software development. This includes expanding its team of software engineers and embracing digital technologies to enhance its offerings. By investing in software development capabilities, Stellantis seeks to meet the increasing customer demand for advanced features, connectivity, and personalized experiences.

Furthermore, Stellantis is committed to accelerating the transition to electrification. With a goal to offer environmentally-friendly alternatives to traditional combustion engines, the company plans to launch a range of battery-electric vehicles (BEVs) in the U.S. market this year. This endeavor aligns with the global shift towards sustainable mobility and supports Stellantis’ commitment to reducing its carbon footprint.

In addition to addressing customer preferences and sustainability goals, Stellantis’ transformation plan also involves expanding its global market presence. The company aims to have more than 25% of its revenues generated from regions outside North America and Enlarged Europe, ensuring a diversified revenue stream and minimizing reliance on specific markets.

To support its decarbonization efforts, Stellantis has established the Circular Economy Business Unit, which follows a 4R strategy: reman, repair, reuse, and recycle. By embracing circular economy practices, the company aims to reduce waste and extend the lifecycle of its products, contributing to a more sustainable future.

Stellantis’ Transformation Plan Highlights

Here are some key highlights of Stellantis’ transformation plan:

  • Aims to reach one-third of global sales online by 2030, embracing digitalization and e-commerce.
  • Free2move, Stellantis’ mobility solutions provider, plans to expand its worldwide presence to 15 million active users by 2030.
  • Reported net revenue of $92.8 billion in North America in 2023, with strong profit margins of 15.4%.
  • Acknowledges challenges in car distribution and prioritizes cost reduction and increased competitiveness, particularly in the electric vehicle segment.
  • Engages strategic semiconductor providers to enhance its all-new STLA platforms and technologies, aiming for continuous production and mitigating supply chain risks.

Stellantis’ transformation plan reflects the company’s commitment to innovation, sustainability, and meeting the evolving needs of customers. By investing in software development and electrification, Stellantis is well-positioned to lead the automotive industry’s transformation towards a cleaner, connected, and sustainable future.

Stellantis’ Competitive Advantage

Stellantis, as the fourth-largest automaker in the world, have strategically leveraged market segmentation strategies to gain a competitive edge. By understanding the diverse needs and preferences of their customers, Stellantis can tailor their offerings and marketing campaigns to effectively reach and engage target audiences.

Stellantis operates in five distinct portfolios: luxury vehicles (Maserati), premium vehicles (Alfa Romeo, DS, and Lancia), global SUVs, American brands (Dodge, Ram, and Chrysler), and European brands (Abarth, Citroën, Fiat, Opel, Peugeot, and Vauxhall). This wide range of brands enables Stellantis to cover various market segments efficiently, positioning themselves as a comprehensive automotive solution provider.

In terms of market share, Stellantis holds the position of the fourth-largest automotive company in the US and the second-largest in Europe for new passenger vehicle sales. This strong market presence allows Stellantis to leverage economies of scale and establish a significant foothold in key regions.

Furthermore, Stellantis trades at a low valuation compared to its competitors, with a P/E ratio of 2.74, a P/B ratio of 0.64, and a forward dividend yield of over 9%. These favorable valuation metrics can attract investors looking for undervalued opportunities in the automotive sector.

Stellantis is also committed to the transition towards electric vehicles (EVs) in response to growing demand and sustainability concerns. The company aims for all new vehicles in Europe and half of its American output to be fully electric by 2030. This forward-thinking strategy positions Stellantis as a leader in the industry’s electrification transformation.

To drive growth and profitability, Stellantis has set ambitious goals for net cash synergies. By the end of 2022, the company achieved €7.1 billion in net cash synergies, surpassing the €5 billion annual synergy target for 2024. These synergies showcase Stellantis’ ability to leverage its diverse brand portfolio and operational efficiencies.

As an investment opportunity, Stellantis is expected to generate an annual return of 8.6%, based on historical free cash flows and probabilistic scenarios. This makes it an attractive option compared to alternatives such as the ten-year treasury bond and the US stock market.

However, it is important to consider the challenges Stellantis faces in the context of the industry-wide shift to electrification. By 2040, an estimated three quarters of all new-vehicle sales worldwide will be fully electric. Stellantis must navigate this transition while also managing factors like market saturation, the impact of Covid-19, economic changes, and increasing interest rates.

Additionally, the global automotive industry faces supply chain risks, exemplified by the recent microchip shortage that has disrupted production. China’s dominant production capacity for key EV battery materials like lithium, graphite, and nickel also poses potential challenges for Stellantis.

To fully assess the future success of Stellantis, investors must diligently evaluate the impact of the industry’s electrification transformation and how the company’s market segmentation strategies position them to overcome these challenges and continue thriving in a rapidly evolving market.

Conclusion

Stellantis, the fourth-largest automaker in the world, has formulated a strategic marketing plan for 2024 that focuses on customer segmentation, digital campaigns, and brand strategy. By understanding diverse customer needs and investing in software and electrification, Stellantis aims to lead the cultural shift towards electric mobility and achieve market leadership. The company’s comprehensive lineup of 14 iconic car brands, including Jeep, Ram trucks, Alfa Romeo, and Maserati, positions it strongly in the global automotive market.

Stellantis’ commitment to sustainability is evident in its goal to achieve carbon neutrality by 2038. With a workforce representing over 160 nationalities, Stellantis operates in more than 30 countries and tailors its offerings to cater to regional preferences across 130 markets worldwide. The company expects to generate significant revenue through 34 million “monetisable” cars by 2030, reinforcing its market presence and financial growth.

Additionally, Stellantis recognizes the importance of personalized after-sales predictive marketing tools and has entered into an agreement with FIDCAR to deploy this technology across its European dealerships. Through the use of artificial intelligence and the co-developed mobile application “FIDCAR Check,” Stellantis aims to enhance customer satisfaction and ROI. Furthermore, Stellantis is undergoing a digital transformation to increase efficiency and drive business growth, while its transition to a ‘vertical’ agency distribution model in Europe showcases its commitment to a more streamlined and efficient sales experience.

FAQ

What is Stellantis’ marketing strategy for 2024?

Stellantis’ marketing strategy for 2024 focuses on customer segmentation, digital campaigns, and brand strategy to position itself as a leader in the automotive market. The company aims to meet diverse customer needs, drive innovation, and lead the cultural shift towards electric mobility.

How does Stellantis utilize customer segmentation?

Stellantis employs market segmentation, including geographical, demographic, behavioral, and psychographic segmentation, to cater to the specific needs of its customers. This approach allows the company to effectively address regional challenges, understand customer preferences, and create products that align with customers’ values and lifestyles.

What is Stellantis’ approach to geographical segmentation?

Stellantis strategically sells its products in specific geographic areas to maximize market penetration and tailor its offerings to local demands. By recognizing unique market dynamics and customer preferences in different regions, Stellantis can effectively address regional challenges and opportunities, resulting in increased market share and customer satisfaction.

How does Stellantis utilize demographic segmentation?

Demographic segmentation is a crucial aspect of Stellantis’ marketing strategy. By analyzing factors such as age, gender, and occupation, the company understands the specific needs and preferences of different customer groups. This information allows Stellantis to develop targeted marketing campaigns and customize its products and services to cater to the diverse demographics of its customer base.

How does Stellantis employ behavioral segmentation?

Stellantis utilizes behavioral segmentation to identify customers with similar buying habits and preferences. By understanding consumer behavior and decision-making processes, the company can create more effective marketing strategies. This approach helps Stellantis drive customer engagement and loyalty by delivering personalized experiences based on individual preferences.

What is Stellantis’ approach to psychographic segmentation?

Psychographic segmentation focuses on analyzing customers’ psychological characteristics, values, and lifestyles. Stellantis aims to gain a deep understanding of its customers’ attitudes, interests, and aspirations. By delving into the psychographics of its target audience, the company can develop resonating marketing messages and create products that align with customers’ unique identities and aspirations.

How is Stellantis focusing on electric vehicles (EVs) in the U.S. market?

Stellantis is taking a “segmented” approach to conquer the U.S. market with its electric vehicle (EV) offerings. The company is focusing on electric pickups, SUVs, and muscle cars, aligning its products with the American love for larger vehicles. By offering EV versions of popular models, Stellantis aims to make a compelling case for EV adoption among American consumers and meet their diverse needs in different regions.

What is Stellantis’ transformation plan?

Stellantis has developed a comprehensive transformation plan that focuses on investing in software development and electrification. The company aims to enhance its expertise in software development by hiring more software engineers and harnessing digital technology to meet evolving customer needs. Additionally, Stellantis is investing in electrification to offer environmentally-friendly alternatives to traditional combustion engines and contribute to a cleaner, more sustainable future.

What is Stellantis’ competitive advantage?

Stellantis’ competitive advantage lies in its market segmentation strategies. By effectively reaching and engaging target customers through geographical, demographic, behavioral, and psychographic segmentation, Stellantis can deliver tailored products, experiences, and marketing campaigns that differentiate the company from its competitors. This comprehensive market segmentation approach allows Stellantis to understand its customers’ needs and preferences, stay ahead of the competition, and continue delivering innovative solutions.

How does Stellantis plan to achieve market leadership?

Stellantis’ marketing strategy for 2024, which includes customer segmentation, digital campaigns, and brand strategy, aims to position the company as a market leader in the automotive industry. By leveraging market segmentation and investing in software and electrification, Stellantis aims to meet diverse customer needs, drive innovation, and lead the cultural shift towards electric mobility. Through its strategic approach and understanding of customer preferences, Stellantis is well-equipped to define the future of the automotive industry and achieve market leadership.
About the author

Nina Sheridan is a seasoned author at Latterly.org, a blog renowned for its insightful exploration of the increasingly interconnected worlds of business, technology, and lifestyle. With a keen eye for the dynamic interplay between these sectors, Nina brings a wealth of knowledge and experience to her writing. Her expertise lies in dissecting complex topics and presenting them in an accessible, engaging manner that resonates with a diverse audience.