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Ford Ka – What we know Paris – Feb. 1996 Brand Manager – Gilles Moynier · Objective: Determine the Target Market for the Ford Ka – Ford’s smallest model Ford Background USA-Incorporated in 1903 – Ford entered European market soon after 1995 · 2nd largest manufacturer of cars and trucks o behind GM · 1995 – Sold 6.6 million vehicles WW - $110 billion, net income of 2 billion o 1994 - $107billion, net income of $3.9 · Sales in Europe = 26% of total dollar sales o Sold first cars in France in 1907 · 47 automotive factories manufacturing locations across Europe · In France: Largest non-French manufacturer o 7.3% unit share of total passenger car market o Sales: o Behind domestic manufacturers § PSA (30.2%) (Peugeot (17.7%) & Citroen (12.5%)) § Renault (29.2%) o Sales: FF17.7 billion, Net Income FF 0.28billion § Down from FF18.7 billion and FF0.64billion o Ford France in charge of developing the Ka marketing strategy for all of Europe Small Car Market in France · Rapidly changing · 1995 - Small cars (A&B) accounted for 43.7% of the 1.9MM new cars sold o Market more developed in France § Versus 32.2% of the 12MM new cars sold in Europe § Largely due to taxation policy – owners of small cars pay significantly less in taxes than owner’s of big cars o Manufacturers of small cars (like PSA, Renault or Fiat) concentrated on achieving low production costs through high volume (Not differentiation through product features and quality as in the luxury market) · 1990s – market became increasingly competitive – new models, upgrades of existing ones o Manufacturers of larger cars started to show interest in small car market (Exhibit 4a) · Series of environmental and demographic changes significantly affected the French car market and made small cars more attractive ENVIRONMENTAL o Increased Road congestion o Problem of parking in large cities o Fuel prices were high through the ‘90s due to Tax accounting for 85% of retail price § Small cars – lower in fuel consumption – another advantage o Environmentally conscious people appreciated the reduced toxic emissions associated with smaller cars DEMOGRAPHIC (Exhibit 7) o Avg HH size declined to less than 3 § – increased feasibility of small cars as a primary source o Increase in working women – led to increase in women buyers § Women tend to have a relatively higher preference for small cars § · Increasingly fragmented o Reflecting an increase in the variety of consumer needs and manufacturers’ positioning strategies o Price – no longer the most important factor § Older customers – valued advantages of small cars but expected features similar to large cars § Positioning research (conducted for Ford in Jan.
Approximate Word count = 1631
Approximate Pages = 6.5
(250 words per page double spaced)
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