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MARKETING MANAGEMENT
THE FORD FIESTA
Farid SR & Iksan Adityo Mulyo
Harvard Business Review
Lecturer : Dr. Iyus Wiadi
THE FORD FIESTA
FORD FIESTA MOVEMENT (FFM)
Topics
01 Introduction & Overview
02 Company Background
03 Problem Definition
04 Market Research Competition
05 Industry Marketing Techniques
06 Ford Fiesta Movement
07 Analysis
08 Segmentation
09 Positioning
10 Conclusion
FORD FIESTA
Overview of the Presentation
In early 2009, Ford Motor Company began its new marketing
campaign to reposition themselves within the auto industry and
reintroduce their class B vehicle, the Ford Fiesta, into the US market.
This campaign was coined as the "Ford Fiesta Movement" (FFM) and
was not a typical marketing campaign for an automaker. This
presentation will analyze their marketing strategy & determine what
their next step should be.
Overview
The FORD Motor Company in 2009
The Ford Motor Company, based in Dearborn, Michigan (a suburb of
Detroit), was one of the world’s largest automotive manufacturers and
distributors. Ford was best known for its line of rugged trucks, such as the
F-series, and Sport Utility Vehicles such as the Explorer, as well as for its
classic sports car, the Mustang.
In the ten years leading up to 2009 sales of Ford vehicles were down by
over 50%.
Honda
Ford
Toyota
General Motors
10.2% 16.7% 17.5% 17.6%
Problem Definition
The target customers for the Fiesta
would be very different.
Introducing a new compact car in the
US market provided many challenges
for Ford.
01 02 04
03 05
Much more
ethnically diverse,
women & men, and
city dwellers
Target customers
Millenials under 30
years old.
Target customers
Ford had been
absent from B
Segment market in
the U.S. since 1981..
Competition in B
Segment
Ford was generally
not in the
consideration set of
young buyers looking
for small,
economical vehicles.
Competition in B
Segment
The stigma of U.S.
cars as a class
suffered.
Competition in B
Segment
Market Research until 2009
Exhibit 3 (Full age
distributions)
B segment cars tended to be
bought either as entry level
vehicles by young people upon
landing a first job, or by older
buyers who prized fuel efficiency
and compactness. About two
thirds of buyers were over age
40.
72.9%
Exhibit 4 (2009’s sales
figures in the B segment)
Ford was generally not in the
consideration set of young
buyers looking for small,
economical vehicles.
0%
80%
40%
55%
65%
Industry Marketing Techniques
The target customers for the Fiesta would
be very different than most Ford’s
customer base.
People in this demographic were heavy
users of social media, and had more faith
in what their friends said than what
advertisers said.
Hire 100 millennials with large online
followings, lend them the cars with an
invitation to create and share content
based on their adventures
TARGET
Targetted Millenials, much more
ethnically diverse, men, women
& would tend city dwellers
MARKETING CAMPAIGN
Put the marketing campaign
in the millennials’ hands &
test drive of the new car.
Influencer
Buzz Marketing
Official Ford Initiative
Ford Fiesta Movement
In order that influencer will tell
other consumers (their followers)
of their own favorable
experiences after use Ford
Fiesta.
Ford Fiesta Movement
Post
Content
Sending
Agents Out
on Missions
Monthly
Theme
Missions
Mission
Control
Recruiting
Agents
The Agents agreed to
produce one video per
mission. The content was
posted online on YouTube,
Facebook, Twitter, Flickr,
and blogs, as well as on
Ford’s official microsite at
fiestamovement.com.
Whittled down to 100,
and their names
were announced at
the New York Auto
Show in April 2009.
Each month a
central dispatch
office.
Agents using their talents
and social networks to
create interest and
excitement for the brand
For each month of
the movement, from
May to October
2009, there would
be a theme.
Before and during the
execution of a mission,
Agents were encouraged
to use sent alert to their
followers what upcoming
videos.
Mission Control would issue
theme-based missions for
completion. All flows of
information to and from the
Agents would go through
mission control.
Mission Control would
handled the logistics,
to be the central point
of contact for 100
agents, dispatched the
monthly missions the
Agents were to
complete, and also
provided 24/7
assistance to the
Agents.
Agents chose one mission
to tackle & incented to
select and complete
missions quickly.
Agents shot and edited
the video, sent it to Ford.
Once approved, Ford
posted the videos to a
central site. Then agents
free to post them to their
personal blogs or
websites.
SWOT Analysis
SWOT
STRENGTHS
Ford have a unique ability to
analyze their markets and create
a demand for their products. Led
an initiative to change their brand
image in order to incorporate the
small car class B segment and
have done so effectively.
OPPORTUNITIES
Ford have a room for
improvement, and/or expansion.
They can also work to change
their brand image (as stated
above) and also provide features
which are aligned with market
demands.
WEAKNESS
The Fiesta, Ford’s best known
subcompact, had been absent
from this market in the U.S. since
1981. And , the stigma of U.S.
cars as a class suffered.
THREATS
Using social networking to
market products requires that the
company give up control over
what is said about the products.
This is risky. This threat however
can be offset by continuously
monitoring and being prepared to
respond to a crisis
S
O
W
T
Ford Fiesta Market Segmentation
Ford should identifying their market segmentation to reach
the target of their sales. An 9% share of unit sales in the B
segment for Fiesta.
Market Segmentation
Milenials (people under 30 years old), men, women,
ethnically diverse & city dwellers
Demographic Segmentation
B Segment cars can gives the customers a fuel
consumption efficiency to drive in a long distance.
And city Lovers,Urbanites ,who are moved to make
the city buzz.
Geographic Segmentation
Reasonable price. In 2009 cars in the B segment
were priced just below $10,000 and tended to be
bought either as entry level vehicles .
Psychographic Segmentation
City lovers get excited about Fiesta from an
engaging drive to engaging features to engaging
styling, Fiesta draws you in.
Behaviour Segmentation
Ford Fiesta Market Positioning
Low Price
High Quality
Fuel
Economy
Attractive
Low Price
Priced just below $10,000 at the stripped down, economy end of the
scale and around $18,000 at the fully featured, high end of the scale.
Attractive
Where it’s headed in traffic – it moves with purpose. Does its best
work with jackrabbit starts, quick stops, lightning fast gear changes
and taking the corners a smidge too fast thanks to dual-clutch
technology and an obsessively precise wheel
High Quality
Fiesta being a small city car that does more than check the box on
economy – from an engaging drive to engaging features to
engaging styling.
Fuel Economy
Fiesta have 40 mpg consumption.
Based on Ford Fiesta’s market segmenting & positioning, Fiesta was positioned as
Middle Class vehicle, that can reached by all class, both High Class & Low Class.
Result of Ford Fiesta Movement
RESULT
Ford Fiesta
Movement
Monthly Website Visits
The Fiesta website recorded 289,000 unique
visitors in the two months to May. of whom
19% completed an exercise in which they
configured the options on a Fiesta to reflect
their preferences, and 14% gave their email
addresses to get updates.
Content Creation
Ford’s goal = 600 videos for the six months
of the program, yet two months into the
program the Agents had already posted 655.
Each of the videos had been viewed about
1,600 times on average. The most popular
video had been viewed 200,000 times. The
Agents had blogged 632 times about the
Fiesta, posted 5,535 photographs to their
blogs and Flickr, and tweeted 7,787 times.
Familiarity & Share
The proportion of people intending to buy
Ford Fiesta is 42%. The Fiesta beat the
benchmark comfortably, which is 23%.
In press mentions of B segment cars during
February and March, Fiesta led with a 33%
share of voice, ahead of the Honda Fit at
28%, the Toyota Yaris at 24% and the
Nissan Versa at 15%.
Test Drives
6,000 test drives (1,000 provided by Agents)
and 30,000 walk-arounds. The
demographic profile of the drivers was 65%
male, 55% under age 34, and 81% non-
Ford owners.
Conclusion
So far, it seems that the FFM has created some buzz and has been successful in their
efforts. They passed the benchmark of familiarity comfortably, social media
engagement increase. huge amount of test drives participants, passed the goal of
social media content, led the share of segment B cars and the most impressive part of
this marketing strategy outcome was the fact that 81% of test drive consumers were
new consumers who had never owned a Ford vehicle previously. Therefore, their
efforts to enhance their brand image within the class B car segment were successful.
Branding
Huge engagement on
social media generated
brand awareness prior to
launch, influenced the
minds of a difficult-to-reach
audience, build the value of
the brand and helped push
car sales up after launch.
Relationship
These relationships created
within their target market
allowed Ford to market
themselves as “real people”
just like their “friends”. Ford
was able to create a brand
by creating a conversation
with “friends”.
Budget Efficiency
A viral component was built in
so these Agents through their
social networks would reach
out to a larger proportion of
the target audience without
incurring cost of promotion by
the company. Most of the
budget was spent on the cars
and infrastructure rather than
on advertising
Recommendation
Campaign
Social Networking Campaign
Ford can consider this campaign, or
something similar, for other models if the
target market utilizes social networking at
an acceptable usage rate. From study
(Pingdom, 2010), these statistics suggest
that older generations are active on social
networking sites and that Ford could target
these individuals with different car models
aimed at different demographics.
Implemented to Different Segmentation
& Product
Sales
Turning These Leads into Sales
Ford should actively engage these leads
to maintain interest and convert them to
sales. Ford could publish a Ford Fiesta
newsletter providing information on the
Ford Fiesta movement and updates on
when the car will become available.
Extend the Ford Fiesta movement with
new agents and have those agents
complete missions and hold events in the
various locations the leads are located
with smaller scale. Additionally, Ford can
offer its leads the opportunity to pre-order
the car with a guaranteed delivery date to
provide an incentive for pre-ordering.
Maintain & Developing the Marketing
Strategy
Consumer Driven
Consumer Driven vs Product
Driven
This will allow Ford to communicate
with consumers and determine what
they need to do to meet consumer
needs. In an ever changing
environment, marketing strategies
must transform accordingly and this
kind of virtual concept marketing are
accomplishing just that.
Considering & Sensing External
Environment
Marketing is no longer about
the stuff that you make, but
about the stories, you tell..
THANK YOU
FARID SR & IKSAN ADITYO MULYO

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Ford Fiesta Business Review - Iksan Adityo Mulyo & Farid SR (Management Business).pptx

  • 1. MARKETING MANAGEMENT THE FORD FIESTA Farid SR & Iksan Adityo Mulyo Harvard Business Review Lecturer : Dr. Iyus Wiadi
  • 2. THE FORD FIESTA FORD FIESTA MOVEMENT (FFM)
  • 3. Topics 01 Introduction & Overview 02 Company Background 03 Problem Definition 04 Market Research Competition 05 Industry Marketing Techniques 06 Ford Fiesta Movement 07 Analysis 08 Segmentation 09 Positioning 10 Conclusion
  • 4. FORD FIESTA Overview of the Presentation In early 2009, Ford Motor Company began its new marketing campaign to reposition themselves within the auto industry and reintroduce their class B vehicle, the Ford Fiesta, into the US market. This campaign was coined as the "Ford Fiesta Movement" (FFM) and was not a typical marketing campaign for an automaker. This presentation will analyze their marketing strategy & determine what their next step should be. Overview
  • 5. The FORD Motor Company in 2009 The Ford Motor Company, based in Dearborn, Michigan (a suburb of Detroit), was one of the world’s largest automotive manufacturers and distributors. Ford was best known for its line of rugged trucks, such as the F-series, and Sport Utility Vehicles such as the Explorer, as well as for its classic sports car, the Mustang. In the ten years leading up to 2009 sales of Ford vehicles were down by over 50%. Honda Ford Toyota General Motors 10.2% 16.7% 17.5% 17.6%
  • 6. Problem Definition The target customers for the Fiesta would be very different. Introducing a new compact car in the US market provided many challenges for Ford. 01 02 04 03 05 Much more ethnically diverse, women & men, and city dwellers Target customers Millenials under 30 years old. Target customers Ford had been absent from B Segment market in the U.S. since 1981.. Competition in B Segment Ford was generally not in the consideration set of young buyers looking for small, economical vehicles. Competition in B Segment The stigma of U.S. cars as a class suffered. Competition in B Segment
  • 7. Market Research until 2009 Exhibit 3 (Full age distributions) B segment cars tended to be bought either as entry level vehicles by young people upon landing a first job, or by older buyers who prized fuel efficiency and compactness. About two thirds of buyers were over age 40. 72.9% Exhibit 4 (2009’s sales figures in the B segment) Ford was generally not in the consideration set of young buyers looking for small, economical vehicles. 0% 80% 40% 55% 65%
  • 8. Industry Marketing Techniques The target customers for the Fiesta would be very different than most Ford’s customer base. People in this demographic were heavy users of social media, and had more faith in what their friends said than what advertisers said. Hire 100 millennials with large online followings, lend them the cars with an invitation to create and share content based on their adventures TARGET Targetted Millenials, much more ethnically diverse, men, women & would tend city dwellers MARKETING CAMPAIGN Put the marketing campaign in the millennials’ hands & test drive of the new car. Influencer Buzz Marketing Official Ford Initiative Ford Fiesta Movement In order that influencer will tell other consumers (their followers) of their own favorable experiences after use Ford Fiesta.
  • 9. Ford Fiesta Movement Post Content Sending Agents Out on Missions Monthly Theme Missions Mission Control Recruiting Agents The Agents agreed to produce one video per mission. The content was posted online on YouTube, Facebook, Twitter, Flickr, and blogs, as well as on Ford’s official microsite at fiestamovement.com. Whittled down to 100, and their names were announced at the New York Auto Show in April 2009. Each month a central dispatch office. Agents using their talents and social networks to create interest and excitement for the brand For each month of the movement, from May to October 2009, there would be a theme. Before and during the execution of a mission, Agents were encouraged to use sent alert to their followers what upcoming videos. Mission Control would issue theme-based missions for completion. All flows of information to and from the Agents would go through mission control. Mission Control would handled the logistics, to be the central point of contact for 100 agents, dispatched the monthly missions the Agents were to complete, and also provided 24/7 assistance to the Agents. Agents chose one mission to tackle & incented to select and complete missions quickly. Agents shot and edited the video, sent it to Ford. Once approved, Ford posted the videos to a central site. Then agents free to post them to their personal blogs or websites.
  • 10. SWOT Analysis SWOT STRENGTHS Ford have a unique ability to analyze their markets and create a demand for their products. Led an initiative to change their brand image in order to incorporate the small car class B segment and have done so effectively. OPPORTUNITIES Ford have a room for improvement, and/or expansion. They can also work to change their brand image (as stated above) and also provide features which are aligned with market demands. WEAKNESS The Fiesta, Ford’s best known subcompact, had been absent from this market in the U.S. since 1981. And , the stigma of U.S. cars as a class suffered. THREATS Using social networking to market products requires that the company give up control over what is said about the products. This is risky. This threat however can be offset by continuously monitoring and being prepared to respond to a crisis S O W T
  • 11. Ford Fiesta Market Segmentation Ford should identifying their market segmentation to reach the target of their sales. An 9% share of unit sales in the B segment for Fiesta. Market Segmentation Milenials (people under 30 years old), men, women, ethnically diverse & city dwellers Demographic Segmentation B Segment cars can gives the customers a fuel consumption efficiency to drive in a long distance. And city Lovers,Urbanites ,who are moved to make the city buzz. Geographic Segmentation Reasonable price. In 2009 cars in the B segment were priced just below $10,000 and tended to be bought either as entry level vehicles . Psychographic Segmentation City lovers get excited about Fiesta from an engaging drive to engaging features to engaging styling, Fiesta draws you in. Behaviour Segmentation
  • 12. Ford Fiesta Market Positioning Low Price High Quality Fuel Economy Attractive Low Price Priced just below $10,000 at the stripped down, economy end of the scale and around $18,000 at the fully featured, high end of the scale. Attractive Where it’s headed in traffic – it moves with purpose. Does its best work with jackrabbit starts, quick stops, lightning fast gear changes and taking the corners a smidge too fast thanks to dual-clutch technology and an obsessively precise wheel High Quality Fiesta being a small city car that does more than check the box on economy – from an engaging drive to engaging features to engaging styling. Fuel Economy Fiesta have 40 mpg consumption. Based on Ford Fiesta’s market segmenting & positioning, Fiesta was positioned as Middle Class vehicle, that can reached by all class, both High Class & Low Class.
  • 13. Result of Ford Fiesta Movement RESULT Ford Fiesta Movement Monthly Website Visits The Fiesta website recorded 289,000 unique visitors in the two months to May. of whom 19% completed an exercise in which they configured the options on a Fiesta to reflect their preferences, and 14% gave their email addresses to get updates. Content Creation Ford’s goal = 600 videos for the six months of the program, yet two months into the program the Agents had already posted 655. Each of the videos had been viewed about 1,600 times on average. The most popular video had been viewed 200,000 times. The Agents had blogged 632 times about the Fiesta, posted 5,535 photographs to their blogs and Flickr, and tweeted 7,787 times. Familiarity & Share The proportion of people intending to buy Ford Fiesta is 42%. The Fiesta beat the benchmark comfortably, which is 23%. In press mentions of B segment cars during February and March, Fiesta led with a 33% share of voice, ahead of the Honda Fit at 28%, the Toyota Yaris at 24% and the Nissan Versa at 15%. Test Drives 6,000 test drives (1,000 provided by Agents) and 30,000 walk-arounds. The demographic profile of the drivers was 65% male, 55% under age 34, and 81% non- Ford owners.
  • 14. Conclusion So far, it seems that the FFM has created some buzz and has been successful in their efforts. They passed the benchmark of familiarity comfortably, social media engagement increase. huge amount of test drives participants, passed the goal of social media content, led the share of segment B cars and the most impressive part of this marketing strategy outcome was the fact that 81% of test drive consumers were new consumers who had never owned a Ford vehicle previously. Therefore, their efforts to enhance their brand image within the class B car segment were successful. Branding Huge engagement on social media generated brand awareness prior to launch, influenced the minds of a difficult-to-reach audience, build the value of the brand and helped push car sales up after launch. Relationship These relationships created within their target market allowed Ford to market themselves as “real people” just like their “friends”. Ford was able to create a brand by creating a conversation with “friends”. Budget Efficiency A viral component was built in so these Agents through their social networks would reach out to a larger proportion of the target audience without incurring cost of promotion by the company. Most of the budget was spent on the cars and infrastructure rather than on advertising
  • 15. Recommendation Campaign Social Networking Campaign Ford can consider this campaign, or something similar, for other models if the target market utilizes social networking at an acceptable usage rate. From study (Pingdom, 2010), these statistics suggest that older generations are active on social networking sites and that Ford could target these individuals with different car models aimed at different demographics. Implemented to Different Segmentation & Product Sales Turning These Leads into Sales Ford should actively engage these leads to maintain interest and convert them to sales. Ford could publish a Ford Fiesta newsletter providing information on the Ford Fiesta movement and updates on when the car will become available. Extend the Ford Fiesta movement with new agents and have those agents complete missions and hold events in the various locations the leads are located with smaller scale. Additionally, Ford can offer its leads the opportunity to pre-order the car with a guaranteed delivery date to provide an incentive for pre-ordering. Maintain & Developing the Marketing Strategy Consumer Driven Consumer Driven vs Product Driven This will allow Ford to communicate with consumers and determine what they need to do to meet consumer needs. In an ever changing environment, marketing strategies must transform accordingly and this kind of virtual concept marketing are accomplishing just that. Considering & Sensing External Environment
  • 16. Marketing is no longer about the stuff that you make, but about the stories, you tell.. THANK YOU FARID SR & IKSAN ADITYO MULYO