1.1 Problem statement
On which target groups should Ford focus with the selling of their new Ford Ka on the French small car market, to obtain a third of Renault’s market share within three years? 1.2 Market definition
The market in which Ford Ka will operate, is the small car market in France. By small car market we mean category A & B, cars that are less than 390 cm long. Other cars are excluded, because the lack of information about this cars.
2. Internal analysis
2.1 Financial performance
Ford word-wide: Ford’s overall sales in 1995 were 110 billion dollars. Their net income was 2 billion dollars. In 1994, overall sales were 107 billion dollars and net income was 3.9 billion dollars. So, in comparison with 1994, there is an increase of 2.8% in overall sales and a decrease of 48.72% in net income. Ford France: in 1995, overall sales were 17.7 billion dollars and net income was 0.28 million dollars. In 1994 overall sales were 18.7 billion dollars and net income was 0.64 million dollars. So, in comparison with 1994, there is an increase in overall sales of 5.65 % and an increase in net income of 128.57%.
Ford had a 7.3% unit share of the total passenger car market in France in 1995, which made it the largest non-French manufacturer in France. In the small car market, Ford had a unit market share of 7.6% with the Fiesta in France. 2.2 Performance measurement
There are several problems in Ford’s French marketing department. There is no general idea of the right segmentation approach. There is a lot of discussion about what the right approach is to make the segmentation. This could be due to a problem of communication and cooperation between members in the department. In the case there are several statements that refer to this problem, for example: Marie-Louise was really surprised that she was asked for her opinion. There is also a problem in the relationship of senior management and the marketing department. This we can see from...