ASM Ford Ka Pulkit Jain
Pulkit Jain
1481197
1. What is your opinion of Ford’s strategy (up to and including the development of the Ka) in the small car market in France?
After initial success from Fiesta, Ford got a little complacent. By launching three different versions of Fiesta, one targeting basic buyers focused on just transportation, second targeting families focused on safety and third targeting Trend B segment focusing on features. The introduction of three such different models in the same market was done in order to capture greater market share. However, this strategy backfired and cannibalized all the three variants resulting in loss in brand image and sales.
With competitors launching products in the market alongside of Ford, the market became more aware and less loyal. As the consumer’s access to information and switching cost to an alternate suppliers was practically zero, the market became more and more segmented resulting in more and different demands from the consumers. Few companies were able to foresee the shift and launched products strategically, acquiring market share. In response,
Ford with Fiesta fell behind due to the cannibalization effect. Hence, Ford was compelled to launch new product based on an extensive research on the customer needs and demands.
However, due to lost in sales and market share, Ford was struggling to identify the right market space to target and design a marketing strategy.
In the end, I would like to say that the initial market response from Fiesta was very good, which was over-utilized in order to capture market share. This then resulted in brand confusion and finally resulted in lost in sales and market share. They had to launch Ka in a rush sacrificing the optimized allocation of resources and some on quality.
Page 1 of 7
Pulkit Jain
1481197
2. What were some of the major car-buying dimensions that emerged from the psychographics study? The data are provided in the Ford Ka Psychographics file posted on
TLE. Perform a factor
1481197
1. What is your opinion of Ford’s strategy (up to and including the development of the Ka) in the small car market in France?
After initial success from Fiesta, Ford got a little complacent. By launching three different versions of Fiesta, one targeting basic buyers focused on just transportation, second targeting families focused on safety and third targeting Trend B segment focusing on features. The introduction of three such different models in the same market was done in order to capture greater market share. However, this strategy backfired and cannibalized all the three variants resulting in loss in brand image and sales.
With competitors launching products in the market alongside of Ford, the market became more aware and less loyal. As the consumer’s access to information and switching cost to an alternate suppliers was practically zero, the market became more and more segmented resulting in more and different demands from the consumers. Few companies were able to foresee the shift and launched products strategically, acquiring market share. In response,
Ford with Fiesta fell behind due to the cannibalization effect. Hence, Ford was compelled to launch new product based on an extensive research on the customer needs and demands.
However, due to lost in sales and market share, Ford was struggling to identify the right market space to target and design a marketing strategy.
In the end, I would like to say that the initial market response from Fiesta was very good, which was over-utilized in order to capture market share. This then resulted in brand confusion and finally resulted in lost in sales and market share. They had to launch Ka in a rush sacrificing the optimized allocation of resources and some on quality.
Page 1 of 7
Pulkit Jain
1481197
2. What were some of the major car-buying dimensions that emerged from the psychographics study? The data are provided in the Ford Ka Psychographics file posted on
TLE. Perform a factor