Ford Ka Case Study
Q1 1. They are reactive instead of being proactive. They didn’t analyze the market enough in order to forecast needs and consumers’ desires. 2. They create a product first and then they sought how to sell it without previous analyses. It looks like they know their segments because they launched the KA as a reaction to the Twingo (+8.
9% M. S. in a year) and the market changes, so they copied it. However they do not know which target to choose and how to position their product offer on the market.In the hurry, it seems that they mixed up segmentation and targeting.
The way they launched the KA is against the established modern marketing view. Q2 Taking into account that they launched the KA to challenge the Twingo position on the small cars market, we know that they tried to satisfy the needs of the following segment: compact cars easily maneuverable but above all stylish and attractive because today’s consumers value that image more than before. They need fun when driving in a boring crowded city.They want a compact car but moreover with space inside to feel like in a big car with the same safety and reliability for a lower price. Knowing that, Ford should now target consumers who seem to be the most profitable segment(s) and likely to buy their new model.
They did several surveys and they found out two possibilities: targeting according to socio-demographic descriptions or according to psychographic descriptions. As we noticed before, consumers need more than just a small functional car, they need psychological identifications, and they need to demonstrate something through their car.According to that view, I consider that it would me more relevant to choose a target between the following attitudes: sensible classics (SC), no-nonsense neutrals (NNN), attention seekers (AS) and freedom lovers (FL). Now let’s look at the figures. If we look at the exhibit 13 we can see that the last two groups of consumers put the KA in the top 3 pick.
According to the exhibits 11a&b, it seems to be normal that sensible classics and no-nonsense neutrals don’t like the car because it is too flashy and non-conformist whereas they are classics.They don’t need to be noticed. Then, if we compare the figures from KA choosers with those in the 4 types of psychographic segmentation, we noticed a paradox because those that fit the best with figures are NNN and FL however in the exhibit 13 it appears clearly that NNN put the KA in their 3 bottom choices. So, I’m hesitating between AS and NNN, but when I’m looking at the relative size of the segments, I’ll go for AS because of a bigger segment potential of 31%;26%.Hence, if Ford has decided to tackle the FL and AS segments, KA is addressed to a potential 44% market size (people) which seems to be large enough when we are looking at the Twingo market share and the 42,7% of total unit market sales of category B.
Moreover when thinking about positioning the Ford KA on the market, it is clear that AS and FL are compatible in terms of brand image whereas NNN and FL doesn’t really fit. If we look at the characteristics of the Ford KA, we clearly noticed a futuristic and flashy car, easy to drive particularly in crowded cities.However in comparison with the Twingo, the Ka is not spacious and doesn’t look a like a funny, nice car but looks more aggressive. When looking at the characteristics of the Twingo and the KA, the KA looks superior in terms of performance but also in terms of environmental issues and savings money because it consumes less gasoline. They can play on those variables to attract more people and challenge the Twingo. Hence, Ford should position their KA as a flashy futuristic car that is performing with little gasoline consumption and then good for the environment.