Ford Windstar Case Study
FORD WINDSTAR CASE ANALYSIS
SUMMARY
Minivan history and development Minivans designed for families, for people with two or more children and who were tired of cramming into sedans for long and short-hour trips. Minivan is divided into 2 categories: LWB and SWB. It was first introduced by Dodge Caravan on 1983 and then followed by General Motors and Ford.
SUMMARY
Ford Windstar o Ford Windstar was introduced in Canada in 1991. o Windstar was the first to be given 5 stars rating by NHTSA o Windstar is way back behind when it comes to introducing product innovations. sliding fourth door flip-fold seat o Quality problems and product recall. o Limited choice
Ford Windstar
Pontiac Montana
Honda Odyssey
Grand Caravan
Chevrolet Venture
Toyota Previa
SUMMARY
Below Table 1 show % of market share in LWB segment in 1999 and 2001 1999 Windstar Pontiac Montana Grand Cadavan Honda 44% 9% 19% 3.3% 2001 30% 14% 27.4% 11%
Highlight of the case
Ford Windstar
Question 1: Assess the various promotional tactics available to Brian. Which one(s) make financial sense. Why?
Brian Tafler had considered the followings:• Direct Mail Campaign • Repositioning Through Advertising • Value Pricing • Sales Incentives • Leasing • Cash Offers
Direct Mail Campaign
Lease Renewal Customers • Targeted to about 5000 customers • Highlighted the new features i.e Safety System and Family Entertainment System • Current Lease renewal Rate : 40% • Expected : 45 to 50% returning lease customers • Offered: $500 loyalty discount
Direct Mail Campaign (cont..)
Potential New Customer • Focus – the customer who leased a minivan from other manufacturer • Offered - $500 switching incentive • Expected – 2 to 3% customer switched to Ford
Repositioning Through Advertisement
Tier 1 • Manufacturer paid and control the advertising • Focused- Building brand image • Impact- can be seen after few years Tier 2 • The dealer and manufacturer associates for the advertising • Focused- promoting
SUMMARY
Minivan history and development Minivans designed for families, for people with two or more children and who were tired of cramming into sedans for long and short-hour trips. Minivan is divided into 2 categories: LWB and SWB. It was first introduced by Dodge Caravan on 1983 and then followed by General Motors and Ford.
SUMMARY
Ford Windstar o Ford Windstar was introduced in Canada in 1991. o Windstar was the first to be given 5 stars rating by NHTSA o Windstar is way back behind when it comes to introducing product innovations. sliding fourth door flip-fold seat o Quality problems and product recall. o Limited choice
Ford Windstar
Pontiac Montana
Honda Odyssey
Grand Caravan
Chevrolet Venture
Toyota Previa
SUMMARY
Below Table 1 show % of market share in LWB segment in 1999 and 2001 1999 Windstar Pontiac Montana Grand Cadavan Honda 44% 9% 19% 3.3% 2001 30% 14% 27.4% 11%
Highlight of the case
Ford Windstar
Question 1: Assess the various promotional tactics available to Brian. Which one(s) make financial sense. Why?
Brian Tafler had considered the followings:• Direct Mail Campaign • Repositioning Through Advertising • Value Pricing • Sales Incentives • Leasing • Cash Offers
Direct Mail Campaign
Lease Renewal Customers • Targeted to about 5000 customers • Highlighted the new features i.e Safety System and Family Entertainment System • Current Lease renewal Rate : 40% • Expected : 45 to 50% returning lease customers • Offered: $500 loyalty discount
Direct Mail Campaign (cont..)
Potential New Customer • Focus – the customer who leased a minivan from other manufacturer • Offered - $500 switching incentive • Expected – 2 to 3% customer switched to Ford
Repositioning Through Advertisement
Tier 1 • Manufacturer paid and control the advertising • Focused- Building brand image • Impact- can be seen after few years Tier 2 • The dealer and manufacturer associates for the advertising • Focused- promoting