Case Presentation Ford Ka Presented by Anaghh Sharma -1201006 Mareddy Markandeulu- 1201028 Prabhakaran-1201035 Preeti Admane -1201037 Bhagyashree Tilekar- 1201054 Yamuna Pandurangan- 1201051
FORD - Background Worlds second largest manufacturer of cars and trucks in 1995. Year Sales (in billion) Net Income (in billion) 1994 US$107 US$3.9 1995 US$110 US$2 In France Year Sales (in billion) Net Income (in billion) 1994 FF18.7 FF0.64 1995 FF17.7 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. Europes 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 Car Market in Europe 32.2 43.7 % % Small cars Small cars Other Other cars cars
Small Cars Market Share in 1995 1995 - GM 7.6 % Manufacturing Ford 7.6 % 8% Fiat 11 % Market Share Renault Re… 20.1 % in 1995 Peugeot18.1 % Citreon 0 20 40 36.6 %
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 realization1. Income2. Age - Small cars were sold to younger and lower income buyers.3. 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
Buyer characteristicsFrench car buyers had the below buyercharacteristics Gender Age Marital Status Household size No. of children in household Household income Place of Residence
Environmental and Demographic changesMarket 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.