Description
contains market research in the small car automoblie market, strategy, Ford Ka and segmentation plans.
Ford Ka
The Market Research Problem
Company Background
• • • • • • Second largest manufacturer in the world Europe accounted for 26% of the total dollar sales 47 automotive manufacturing locations across Europe Largest Non-French manufacturer 7.3% unit share of total passenger car market in France “Ka – a major initiative in the French Market”
The Small Car Market in France
Table 1 (category A & B):
• A car less than 390 cms long • Accounted for 43.7% of the 1.9 mn new cars sold in 1995 • More developed in France than in other parts of Europe • Sold to younger, lower income buyers (exhibit 3) • Small car market becoming increasingly competitive • Largest manufacturer being RENAULT (36.6%) Exhibit 5 : market share info 92’-95’ Exhibit 6 : demographic description of buyers
•
Fragmentation of the Small Car Market
Environmental and demographical changes (congestion, less parking space, fuel efficiency)
Exhibit 7: (changes in the demographic profile) 1. Average size of household declined 2. Working women • Increase in fragments increase in segments, different positioning • Table 2: Different Categories, Description, Examples (classification of the small car segment) • A category 6%, Basic B category: 40%, Trend B category: 52% and the Other B category 2% • Good value to Aspirational value ( Table 3: Customer Group – Major Needs)
Ford’s Strategy
• Ka – a response to the small market • “New Fiesta” – didn’t meet customer expectation • Success of Renault Twingo (Exhibit 4a)
– Identified a latent demand in the market
Birth of Ka
• Reaction had to be prompt • Saved time cut developmental cost • To use innovative styling, features and maneuverability to market the same • Ka couldn’t change the consumer perception of a small car
Market Research
• Two stages: – First: focus groups form 3 potential targets • First time buyers • Single working professionals • Multi-car households (Thirty focus group sessions conducted on the basis of demographic and lifestyle information) – Second: more structured personal interviews with potential customers (perception of the co and the competitors)
Initial Meeting
• Figure 1: Ranking of the Ford Ka from a list of Ten Small Cars • No one clear target emerging • Strong reactions about styling: like it or dislike it • Not a life stage car • 45% customers in top three, 30% in the last Exhibit 10 Perceptual maps
Segmentation
• • A gender segmentation – 38% of all cars driven by women Attitudinal segmentation 1. Freedom Lovers 2. Attention Seekers 3. Sensible Classics 4. No-Nonsense Neutrals
doc_585052316.ppt
contains market research in the small car automoblie market, strategy, Ford Ka and segmentation plans.
Ford Ka
The Market Research Problem
Company Background
• • • • • • Second largest manufacturer in the world Europe accounted for 26% of the total dollar sales 47 automotive manufacturing locations across Europe Largest Non-French manufacturer 7.3% unit share of total passenger car market in France “Ka – a major initiative in the French Market”
The Small Car Market in France
Table 1 (category A & B):
• A car less than 390 cms long • Accounted for 43.7% of the 1.9 mn new cars sold in 1995 • More developed in France than in other parts of Europe • Sold to younger, lower income buyers (exhibit 3) • Small car market becoming increasingly competitive • Largest manufacturer being RENAULT (36.6%) Exhibit 5 : market share info 92’-95’ Exhibit 6 : demographic description of buyers
•
Fragmentation of the Small Car Market
Environmental and demographical changes (congestion, less parking space, fuel efficiency)
Exhibit 7: (changes in the demographic profile) 1. Average size of household declined 2. Working women • Increase in fragments increase in segments, different positioning • Table 2: Different Categories, Description, Examples (classification of the small car segment) • A category 6%, Basic B category: 40%, Trend B category: 52% and the Other B category 2% • Good value to Aspirational value ( Table 3: Customer Group – Major Needs)
Ford’s Strategy
• Ka – a response to the small market • “New Fiesta” – didn’t meet customer expectation • Success of Renault Twingo (Exhibit 4a)
– Identified a latent demand in the market
Birth of Ka
• Reaction had to be prompt • Saved time cut developmental cost • To use innovative styling, features and maneuverability to market the same • Ka couldn’t change the consumer perception of a small car
Market Research
• Two stages: – First: focus groups form 3 potential targets • First time buyers • Single working professionals • Multi-car households (Thirty focus group sessions conducted on the basis of demographic and lifestyle information) – Second: more structured personal interviews with potential customers (perception of the co and the competitors)
Initial Meeting
• Figure 1: Ranking of the Ford Ka from a list of Ten Small Cars • No one clear target emerging • Strong reactions about styling: like it or dislike it • Not a life stage car • 45% customers in top three, 30% in the last Exhibit 10 Perceptual maps
Segmentation
• • A gender segmentation – 38% of all cars driven by women Attitudinal segmentation 1. Freedom Lovers 2. Attention Seekers 3. Sensible Classics 4. No-Nonsense Neutrals
doc_585052316.ppt