Why Ford Edsel failed? the reasons, the consequences, the learning. =the relaunch strategy ,

1. FORD EDSEL
“TITANIC OF AUTOMOBILE”

2. INTRODUCTION
Edsel was the son of Henry Ford.
Ford introduced Edsel in 1957
Advertising slogan “THE EDSEL IS
COMING”.
Expensive advertisement , the TV
show “The Edsel show”.
High expectations of the consumers
1958 FORD EDSEL

3. FEATURES OF FORD EDSEL
PROS CONS
Rare, unique design Huge steering
Classic , royal feeling Over Hype
Huge accommodation Long car
Interior designing Huge front end, felt like a boat
Luxury Over-Priced

4. Ford motors already spent $200 million bringing
Edsel to market.
Desire for more success , after thunderbird has
over shadowed the value of market research.
Only managed to sell 64,000 Edsel out of 200,000.

5. WHAT WENT WRONG??

6. THE STYLE AND DESIGN
FACTORS
• Unexpected Response
• Named as "car grill" and
"horse collar“
• Some cars reached customers
incomplete, where some parts
were missing.

7. PRODUCT NAME (BRANDING)
1. Had 10,000 names to chose
from.
2. They decided to name it
"Edsel“
3. Can't be easily pronounced,
and meaningless.

8. MARKETING STRATEGY
1. Marketing Research failure due
to self-image. (“Halo Effect”)
2. By looking at competitors
rather than customers, Ford
wanted to create a brand in
“Medium Segment”.
3. More of a Product-centric
approach rather than
Customer-centric approach.

9. ECONOMY
1. Released when United States
of America was entering the
recession.
2. Overpriced in comparison to
other Ford modules such as
Mercury.
3. A bigger engine which
implied higher fuel
consumption.

10. OTHER REASONS
1. No different assembly line for
Edsel; assembled in both Mercury
and Ford factories
2. Many vehicles at the dealers had
notice written of the parts not
installed
3. Didn’t train dealership level
mechanics with the complicated
system of the car
4. Ford name was not written in the
car

11. LESSONS LEARNT FROM FORD MOTORS EXPERIENCE
• Customers drive the definition of the product due to their humanly
behaviour, and their behaviour is driven by their individual needs.
• It is very important to evaluate the current marketing needs, look
into the estimated market size and the potential.
• In order to stay ahead of any competitive threats it can only be done
through new innovation through successful product development.
• In order to design and produce the new product, the organisation
must make the right product decision before launching the new
product to full-scale.

12. APPLYING THE LESSONS LEARNT TO NEW PRODUCTS
1. The importance of Designing and Quality Control.
• When designing the new product for the next generation it is
imperative to point out the need for a good structured design
and quality control whilst focusing on the customer's needs,
which involves asking the right questions before production and
thought.
2. Product Naming (Branding)
• Companies must concentrate more on branding the product
rather than the physical item. The idea of branding is to invoke
the buyers mind.

13. 3. The importance of Marketing Research
• The new product for the next generation must have a critical
market research and survey which can define the exact targeted
customers. The approach should me customer-centric.
4. Analysing Current Economy
• Determining a well balanced price with the economy can help
the success of the product to reach its potential selling target.
APPLYING THE LESSONS LEARNT TO NEW PRODUCTS

14. CONCLUSION
1. Ford Motors had regained some of their
reputation by learning from the mistake
they have made during the Edsel
production, and used this failure as a
resource of innovation to produce their
next car model Mustang.
2. No longer was the market segmented
primarily on income groups; the new
principle of segmentation was what we now
call “lifestyles.”
3. Ford’s response was the Mustang, a car that
gave the company a distinct personality and
re-established itself as an industry leader.

15. THANK YOU