Marketing on Ford Fiesta

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FOM Study Programme
Master of Business Administration (MBA)
Module: Marketing Assignment: 1/2
Author: Christian Gondek
1st Academic Semester 2010/2011
Essen, 21.01.2011

Executive Summary - Part I
The Ford Motor Company (FMC) is one of the biggest and most successful automotive manufacturers in the world based on a long tradition of automotive development. Since 1931, the plant in Cologne has produced more than forty million vehicles. The focus of this assignment is to analyse the latest version of the product Ford Fiesta (FF) for the German market which has been introduced in 2008. First of all, the product will be introduced followed by a market analysis including demographic, geographic and behavioural segmentation in order to determine the prototype of the customer Ford of Germany (FOG) targets. It has been assumed that the customer is female, 28 years old or close to that age, living in or next to big or capital cities and is mainly focussed on design and life-style aspects. The analysis of marketing objectives and strategy starts with Porter’s model of Five Forces shown in the appendix. In order to analyse the environment, the SWOT analysis has been chosen. As part of the SWOT’s analysis of the external environment, a PEST framework has been applied. Finally, the competition of FOG and the product itself will be demonstrated. In order to present a clear positioning within FOG for the FF, data of the Kraftfahrzeugbundesamt (KBA) have been used to create a BCG portfolio analysis of FOG’s products with the highest market share. The unique selling proposition (USP) is defined by the understanding of the customers’ requirement, the benchmark of the FF and its main competitors exemplified by a benchmark of the Auto Motor Sport magazine (AMS), a two-dimensional positioning of the FF and a final definition of its USP. FOG has achieved to launch the new FF at the optimal point of time and gained a momentum which has resulted in high market share in the market of smaller cars and was based on the right type of target group and a precise positioning of its product. This assignment is based on publicly accessible data only. Table of Content - Part I

Executive Summary ... ii
Table of Content ... iii
List of Abbreviations... iv
List of Figures ... iv
List of Tables... iv
1. Introduction ... 1
2. The product Ford Fiesta ... 2
3. Market Analysis ... 4
3.1 Demographic segmentation ... 4
3.2 Geographic segmentation ... 5
3.3 Behavioural segmentation ... 5
3.4 Prototype of the customer ... 6
4. Marketing Objectives and Strategy... 7
4.1 SWOT Analysis ... 7
4.2 PEST Analysis ... 8
4.3 Competition of Ford of Germany and the Ford Fiesta ... 9 4.4 Position within Ford ... 11
5. Unique Selling Proposition ... 13
5.1 Understanding customers’ requirement ... 13
5.2 Benchmark of the Ford Fiesta and its main competitors ... 14 5.3 Positioning of the Ford Fiesta ... 15
5.4 Definition of the Ford Fiesta’s USP ... 15
6. Conclusion ... 16
Appendix 1: Porter’s model of 5 Forces ... 17
Appendix 2: PEST-Analysis ... 18
Bibliography ... 19

1. Introduction - Part I
Ford of Germany (FOG) has introduced the first model of the Ford Fiesta (FF) in 1976. Already in 1979, the production and sale of the first model has started. Ford Motor Company’s (FMC) product range consists of several models placed in different price levels. The FF represents a model of the so called small car line which is positioned in a lower price range. From a company’s perspective, the amount of revenue of vehicles sold determines also the revenue generated by additional services within the customer life cycle.1 The market of the small cars is a very aggressive market since profits are low and success depends on a high number of sales and a mature market2 with low growth rates in the past. This has resulted in a shorter product life cycle of the product, whereas companies have reacted by a variety of modifications to meet customers’ requirements...
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