Ford Ka Hbs Case
Executive summary
The Ford Ka cannot be marketed to a specific demographic segment, as defined by traditional variables such as income, age, or marital status. Willingness to purchase the Ka was for the most part not dependent on membership in these traditional segments. Alternatively, we propose Ford develop a campaign toward a certain segment defined by attitudinal and psychographic variables. We plan to target this segment with tailored advertising campaigns addressing their unique worldview, and adopt higher-end pricing to maximize profit from what ultimately must be a niche product with a small number of loyal followers. Segmentation of the overall car market
The overall market in France, in 1995, was segmented almost exclusively by primary demographics. The industry served this market with ten different product categories breaking cars down by economy, size, features, and utility. However, during the 1980s and early 1990s, changes in French tax law raised the price of fuel dramatically, making smaller, more fuel-efficient cars more desirable. This effect was amplified by increased road congestion, parking difficulty in urban areas, and a growing number of women drivers, leading a new trend for smaller cars to be increasingly popular choices for drivers at all income levels. By 1995, 71.7% of all cars sold were in the mini, small, or lower medium car categories. This rapid movement of customers to the small category attracted drivers who had been accustomed to the premium features of the mid-sized and large cars. Their demand drove the development of small cars that would have the features, performance, or handling characteristics that customers preferred. Four new product categories emerged within the small car category matched to customers’ needs: A—economy, practical; Basic-B—stylish, good value; Trend-B—high performance, features; Other-B—luxury and sports derivatives.
Ford’s Strategy
By 1992, the success of the Twingo had redefined the entire B
The Ford Ka cannot be marketed to a specific demographic segment, as defined by traditional variables such as income, age, or marital status. Willingness to purchase the Ka was for the most part not dependent on membership in these traditional segments. Alternatively, we propose Ford develop a campaign toward a certain segment defined by attitudinal and psychographic variables. We plan to target this segment with tailored advertising campaigns addressing their unique worldview, and adopt higher-end pricing to maximize profit from what ultimately must be a niche product with a small number of loyal followers. Segmentation of the overall car market
The overall market in France, in 1995, was segmented almost exclusively by primary demographics. The industry served this market with ten different product categories breaking cars down by economy, size, features, and utility. However, during the 1980s and early 1990s, changes in French tax law raised the price of fuel dramatically, making smaller, more fuel-efficient cars more desirable. This effect was amplified by increased road congestion, parking difficulty in urban areas, and a growing number of women drivers, leading a new trend for smaller cars to be increasingly popular choices for drivers at all income levels. By 1995, 71.7% of all cars sold were in the mini, small, or lower medium car categories. This rapid movement of customers to the small category attracted drivers who had been accustomed to the premium features of the mid-sized and large cars. Their demand drove the development of small cars that would have the features, performance, or handling characteristics that customers preferred. Four new product categories emerged within the small car category matched to customers’ needs: A—economy, practical; Basic-B—stylish, good value; Trend-B—high performance, features; Other-B—luxury and sports derivatives.
Ford’s Strategy
By 1992, the success of the Twingo had redefined the entire B