1. Case Presentation
Ford Ka
Presented by
Anaghh Sharma -1201006
Mareddy Markandeulu-
1201028
Prabhakaran-1201035
Preeti Admane -1201037
Bhagyashree Tilekar-
1201054
Yamuna Pandurangan-
1201051
2. 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
3. Categorization of Cars
Traditional size based market segmentation in the car industry.
Europe's 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
4. 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
Peugeot
18.1 %
Citreon 0 20 40
36.6 %
5. 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 realization
1. Income
2. 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
6. Buyer characteristics
French car buyers had the below buyer
characteristics
Gender
Age
Marital Status
Household size
No. of children in household
Household income
Place of Residence
7. Environmental and Demographic changes
Market 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
8. 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
9. 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
10. 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.
11. 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
12. 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.
