Acct
Three C’s and STP Analysis
Ford Ka: Breaking New Ground in the Small Car Market
GROUP 26
#1
The successful role of marketing manager is to make the business do what suits the interests of the customer. However, the role of marketing in Ford Ka was product-orientated as Ka was the best-fit model Ford already had to compete with Twingo at that time. Ford was living up to using customer insight it learned from the success of Twingo. But it was not living up to conduct market research, which could lead Ford to design a small car that would better fit customer needs and market trends.
#2
1. Market Attractiveness Analysis:
General Market Trends:
Within the B categories (Basic-B, Trend-B and Luxury-B), the Basic-B category is growing at the fastest pace (1992-1995), in great part due to Twingo’s fast growth;
Renault Clio is losing market share at fast pace;
Twingo is gaining market share at fast pace;
Citroen AX and other cars with flat market share start losing market share to Twingo;
Assumption: Revenue calculated with average price of each model in 1995 and assuming average for missing prices. Price growth for following years is 4% given than market in general is growing per descriptions on the case.
Given how the Ka was conceived and developed (using Fiesta chassis) we are able to price Ka slightly lower than Twingo to give us price advantage (Kaprice=95%*Twingo price [$67,300] = KaPrice is $63,900).
Optimistic Scenario:
Total car sales grow at 8%.
Percentage of total car sales captured by A and B categories grows at 6% but stays BELOW 50%.
When the KA is launched in 1997, it is able to capture same market share as the Twingo when it was released, 9.1%. Units sold are 99,023.
Neutral Scenario:
Total car sales grow at 4.3%.
Percentage of market captured by A and B also grows by 4.3%.
When the KA is launched in 1997, it is able to capture slightly smaller market share than the Twingo when it was released (KA: 8.8% vs. Twingo:
Ford Ka: Breaking New Ground in the Small Car Market
GROUP 26
#1
The successful role of marketing manager is to make the business do what suits the interests of the customer. However, the role of marketing in Ford Ka was product-orientated as Ka was the best-fit model Ford already had to compete with Twingo at that time. Ford was living up to using customer insight it learned from the success of Twingo. But it was not living up to conduct market research, which could lead Ford to design a small car that would better fit customer needs and market trends.
#2
1. Market Attractiveness Analysis:
General Market Trends:
Within the B categories (Basic-B, Trend-B and Luxury-B), the Basic-B category is growing at the fastest pace (1992-1995), in great part due to Twingo’s fast growth;
Renault Clio is losing market share at fast pace;
Twingo is gaining market share at fast pace;
Citroen AX and other cars with flat market share start losing market share to Twingo;
Assumption: Revenue calculated with average price of each model in 1995 and assuming average for missing prices. Price growth for following years is 4% given than market in general is growing per descriptions on the case.
Given how the Ka was conceived and developed (using Fiesta chassis) we are able to price Ka slightly lower than Twingo to give us price advantage (Kaprice=95%*Twingo price [$67,300] = KaPrice is $63,900).
Optimistic Scenario:
Total car sales grow at 8%.
Percentage of total car sales captured by A and B categories grows at 6% but stays BELOW 50%.
When the KA is launched in 1997, it is able to capture same market share as the Twingo when it was released, 9.1%. Units sold are 99,023.
Neutral Scenario:
Total car sales grow at 4.3%.
Percentage of market captured by A and B also grows by 4.3%.
When the KA is launched in 1997, it is able to capture slightly smaller market share than the Twingo when it was released (KA: 8.8% vs. Twingo: