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Case Presentation

Ford Ka
Presented by
Anaghh Sharma -1201006 Mareddy Markandeulu1201028 Prabhakaran-1201035 Preeti Admane -1201037 Bhagyashree Tilekar1201054 Yamuna Pandurangan1201051

FORD - Background
Worlds second largest manufacturer of cars and trucks in 1995.

Year 1994 1995


In France

Sales (in billion) US$107 US$110

Net Income (in billion) US$3.9 US$2

Year
1994 1995

Sales (in billion)


FF18.7 FF17.7

Net Income (in billion)


FF0.64 FF0.28

7.3% unit share of the total passenger car market in France in 1995 Sales in Europe - 26% of total $ sales Distribution of Jaguar cars

Categorization of Cars
Traditional size based market segmentation in the car industry. Europe's market for small cars was changing rapidly. Small cars category A & B - Ford Fiesta, Renault Twingo, Renault Clio,

Peugeot 106 and 205, Opel Corsa


Small car market was more developed in France than in the remaining

European countries- due to taxation policy.


France 1.9 million new cars sold in 1995 Europe 12 million new cares sold in 1995

Car Market in France


43.7 %
Small cars Other cars

Car Market in Europe


32.2 %
Small cars Other cars

Small Cars
Market Share in 1995 1995 Manufacturing
8%

18.1 % 36.6 %

Renault Peugeot Citreon

GM Ford Fiat Re 0

7.6 % 7.6 % 11 % 20.1 %

Market Share in 1995 40

20

Small car categorization done to keep up to the expectations of

second time buyers Divided into 4 categories as below: o A o Basic B provided product attributes that were associated with small cars in the past o Trend B provided better performance and more features o Other B provided attributes of a luxury car
Factors for product market realization 1. Income 2. Age - Small cars were sold to younger and lower income buyers.

Many larger car manufacturers entered the small car market (eg. BMW acquired Rover in 1994). 4. Renault Clio and Renault Twingo remained the market leader in small car market for 4 consecutive years
3.

Buyer characteristics
French car buyers had the below buyer characteristics
Gender Age Marital Status

Household size
No. of children in household Household income Place of Residence

Environmental and Demographic changes


Market for small cars increased due to
Increased road congestion Increased fuel prices Increasing toxic emission

Average size of households

reduced
Increased working women and their

small car preference

Changing target market for small cars

Change in categories for car.


Price was no longer an important factor Improved safety feature More space/functionality Robustness Power steering Greater comfort and performance

Problem Statement
Inspite of increase in small car market, the Net Income was

decreasing. Changed demographics, Customers expected features similar to large cars. Fragmented small car market- not able to satisfy all the segments Success of Renault Twingo resulting in loss of market share

Birth of Ka
Fiesta brand not being able to compete in

Renault Twingo. Developed Ka using the chassis as Fiesta. Idea of marketing on the basis of innovative styling, features and manoeuvrability. Search of target market after the development of car.

Market Research
Methods- Focus groups, Surveys and Personal

Interviews.
Polarised results for styling Interior space less than Twingo

Equal positive and negative ratings by respondents

Recommendations
Marketing as a spacious family car.

Advertisements concentrating on both youth and

senior citizens In the long run- changes in designs targeting difeerent segments such as youth, female, family etc.

THANK YOU

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