1. Decisions/problem:
The primary decision that Gilles Moyner, brand manager from Ford France must make is how to segment the new Ford Ka, a new small car that will be presented in the Paris Motor Show (1996). Within the understood that traditional size based market segmentation and alternatives segmentations did not work.
GoldFarb Corporation is in charge of presenting Ford possible strategies. The objective is to develop a marketing strategy, targeting and segmentation, since the managers and marketing firm can´t decide where to place it.
The problem is that they couldn’t make first the research of consumer needs, the Ford Ka is already developed, so they have to find the appropriate target for the product.
Situation Analysis
2. Market Analysis:
Small Car Market in France.
In France small cars accounted for 43.7% of the 1.9 million new cars sold in 1995. This specific market is more developed in France than any other country on Europe due to taxation policy. (A car owner will pay less tax if he buys a small car)In 1990´s the small market became increasingly competitive with the launch of new models and upgrading of others.Many cars companies started to manufacture small cars although they haven’t done it in the past years (BMW and Mercedes Benz).The problem of increased road congestion, the problem of parking in many European locations and the increasing fuel prices, made the small car very attractive to consumers.
3. Environmental Analysis:
Fuel prices remained high throughout due to tax which accounts more than 85% of retail price of fuel also environmentally conscious people also appreciated reduced toxic emissions associated with smaller cars.
Another reason of the high preference for this type of cars is that average size of households declined to less than three and this change increased the feasibility of small cars as a primary source of family transportation and finally in France for the last years have been