Ford Ka
Decisions to be Made:
The primary decision Gilles Moynier must make is determining the target market for the Ford Ka. Effective targeting is highly dependent on meaningful segmentation, so selecting an appropriate segmentation methodology from the variety of alternatives is another important decision Moynier must make. Moynier’s decisions must align with Ford’s objectives and also unite all the major stakeholders behind the Ka. Once the Ka’s target is identified, Moynier can develop the product’s positioning, finalize its marketing strategy and begin planning tactics.
Relevant Facts & Issues:
Ka’s Non-Traditional Development: Due to the importance of the French small car market to their operations, Ford developed the Ka prior to researching consumer needs in order to quickly respond to the success of the Twingo, a stylish urban car developed by Renault. Twingo’s success enabled Renault to supplant PSA as the small car share leader in 1993. With a 36.6% share in 1995, Renault has significant leverage over Ford at 7.6%. To remain relevant in the French small car market, Ford accelerated their new product development process and developed the Ka using the chassis of another Ford model. This constrained the Ka’s interior space, but still enabled it to compete on styling, features, and handling. Ultimately, the Ka was developed with only a quarter of the normal budget and this provided a cost advantage relative to the Fiesta, its other small car offering. Success with the Ka could signal a new competency in terms of reacting to competitive offerings
Ka’s Value Proposition: Ka provides distinct advantages relative to its competition. Besides outstanding fuel economy, it offers better performance and features versus the Twingo (see Exhibit 2 for comparative details). Ford’s positioning research showed people were looking for more from their small cars and were willing to pay more as a result.
Ford’s Objectives: Ford desires to grow their current
The primary decision Gilles Moynier must make is determining the target market for the Ford Ka. Effective targeting is highly dependent on meaningful segmentation, so selecting an appropriate segmentation methodology from the variety of alternatives is another important decision Moynier must make. Moynier’s decisions must align with Ford’s objectives and also unite all the major stakeholders behind the Ka. Once the Ka’s target is identified, Moynier can develop the product’s positioning, finalize its marketing strategy and begin planning tactics.
Relevant Facts & Issues:
Ka’s Non-Traditional Development: Due to the importance of the French small car market to their operations, Ford developed the Ka prior to researching consumer needs in order to quickly respond to the success of the Twingo, a stylish urban car developed by Renault. Twingo’s success enabled Renault to supplant PSA as the small car share leader in 1993. With a 36.6% share in 1995, Renault has significant leverage over Ford at 7.6%. To remain relevant in the French small car market, Ford accelerated their new product development process and developed the Ka using the chassis of another Ford model. This constrained the Ka’s interior space, but still enabled it to compete on styling, features, and handling. Ultimately, the Ka was developed with only a quarter of the normal budget and this provided a cost advantage relative to the Fiesta, its other small car offering. Success with the Ka could signal a new competency in terms of reacting to competitive offerings
Ka’s Value Proposition: Ka provides distinct advantages relative to its competition. Besides outstanding fuel economy, it offers better performance and features versus the Twingo (see Exhibit 2 for comparative details). Ford’s positioning research showed people were looking for more from their small cars and were willing to pay more as a result.
Ford’s Objectives: Ford desires to grow their current