33617603 Final Project Report Ford Motors and JWT

8/6/2019 33617603 Final Project Report Ford Motors and JWT

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Summer Project Report

Study of Ford Fiesta

Organization: JWT

Submitted in partial fulfillment for award of PGDM 2008-10

Srikant Rajan

PGDMB/48

Institute for Financial Management and Research

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Acknowledgement

I would like to thank the entire staff at JWT Chennai for giving me an

opportunity to undertake a project with them. A special mention to the

entire Ford team, my project guide Mr. Vignesh Babu, and mentors Mr.

Don Bosco, Mr. Morarji Anand and Mrs. Vani Iyer for solving our numerous

queries and patiently explaining the entire process of advertising.

And last but not the least, a vote of thanks to my coworkers Cerys

Aleamo, and Teertha Samal.

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Executive Summary

Ford India produces the Ikon, Fiesta, Fusion and Endeavour at its plant

near Maraimalainagar, near Chennai. The model Fiesta has a very low

petrol car penetration in its segment, in spite of having a highly acclaimed

Duratec engine, reputed for its superior refinement and performance. In

India 65% of sales happen in metros and mini metros, where markets like

Delhi, Mumbai and Chennai account for the highest sales.

Thus this project aims to identify key factors that influence car buyers in

Chennai and establish the basis of segmentation from the consumer

viewpoint. Thus, we plan to identify the operating segment of Ford Fiesta

and hence the target group. The second part of the project undertakes

market research from a sample of the target group and gather the

perception of Ford against competitors and model Fiesta Vs competitor

car models. This is done to establish if the perception associated with the

brand and the specific model are similar and if not investigate the reason

for variation.

Finally we did a segment communication analysis i.e. study all the

communication(press ads only) adopted by Ford Fiesta and competitor

cars in the period 2006-2008 and establish any specific patterns such as

relations to WINPINS, retail sales conversion. We also investigated the

communication pattern adopted at the Point of Sales (POS) i.e. the

showrooms and analyzed the same using the AIDA (Awareness, Interest,

Desire, Action) model of communication.

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Table of Contents

I. Organization Profile

II. Project Background

• Overview of Indian Automobile Industry

• Ford India Operations

III. Launch of Ford Fiesta

IV. Definition of Project Objectives

V. Identification of Methodology

VI. Segmentation of Car Industry in India

VII. Segment Communication Analysis

VIII. Survey Responses

IX. Data Analysis

X. Dealer Visits and Observations

XI. Final Analysis and Recommendations

XII. Annexure

• Discussion Guide

I. Organization Profile

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JWT is one of the world's largest advertising agency networks. It is one of

the key companies of Sir Martin Sorrell's WPP Group and is headquartered

in New York. The company that was to become JWT was originally foundedby William James Carlton in 1864.In 2005; the agency was "relaunch" by

dropping the name J. Walter Thompson in exchange for JWT .

JWT is reputed to be the first to:

• invent copy and layouts

•

build the first full-service advertising agency• pioneer ad careers for women

• produce the first sponsored TV program

• develop account planning

• create the first international network

Clients of JWT include HSBC, DTC, Ford, Jet Blue, Kellogg, Nestle, Shell,

Pfizer, Unilever, Vodafone, De Beers, White Castle, Safi Airways, Roshan

and the United States Marine Corps.

An agency not known for its creative prowess traditionally has

nevertheless brought home awards that have hitherto remained elusive to

Indian advertising. For instance, The Times of India’s Lead India campaign

by JWT bagged various metals including a Grand Prix, Integrated/ Titanium

Lion, and Design Gold Lion at Cannes resulting in India ranking No. 2 at

Cannes. JWT India acquired live activation company Encompass and

increased geographical presence through a partnership with Mindset in

Hyderabad and they also have a tie-up with ADK.

The specialist divisions – RMG Connect and IPAN continued to show robust

growth through the year, the agency won 76 new businesses including

heavy duty Airtel DTH.

In terms of its portfolio this year, agency launched the Airtel DTH, The Times of India Chennai, The Times of India’s Teach India initiative and

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PepsiCo’s Tropicana Twister. It rebranded Pizza Hut and bagged deep-

pocketed clients like Airtel DTH, Birla Sun Life Insurance, Birla Sun Life

Mutual Funds and Kingfisher Airlines. JWT India is one of the fastest

growing, and best performing agency offices in Asia. The agency hasexceeded its business plans and financial performance year on year. This

is of particular importance given JWT India’s large revenue base and

even more significant given the current global meltdown. The JWT India

client list is a veritable ‘Who’s Who’ of over 200 client/brand relationships.

Most of these are either Number 1 or 2 in their categories with a market

share of over 40%. In the last year the agency conducted almost 2,500

man days of staff retention and training initiatives with programs that are

unique and distinctive.

II. Background of the Project – Automobile Industry and Ford India

The Indian automobile industry at present holds tenth position in the

entire world and has seen a growth rate of 18% per annum and an annual

production of more than 2 million units. Passenger Cars and Multi Purpose

Vehicles grew by 1.31% and 5.69% respectively in 2009 over

2008.However, sales of Utility Vehicles fell by (-) 7.94%.Major players in

the Indian market include General motors, Ford India, Skoda Auto,

Chevrolet, Maruti, Honda, Hyundai, Tata and Fiat.

Fords first model "A" of Ford was first seen on the India roads in the year

1907. Ford Motor Company ventured in to the Indian market in the year

1926 for the first time and operated independently as a reputed car brand

till the year 1954. In the year 1955, Ford joined hands with Mahindra and

Mahindra Limited. Finally in the year 1998, the Ford Motor Company got a

stake of 92.18% in India and ventured forth as Ford India Ltd. Ford India

Ltd. is part of the Ford Asia Pacific, which is a regional operating unit of

the Ford Motor Company.

Ford India produces vehicle bodies for four models -- the sedans Fiesta,Fusion, and Ikon, and the Endeavour, a mid-sized SUV. (Only the Fusion is

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also sold in the US). Ford India makes about 100,000 vehicles per year at

its factory in Chennai, in the state of Tamil Nadu, and sells about 20,000

vehicles a month from 130 dealerships across the country. Beginning in

2010, Ford India can cease importing engines from Europe when it opensits own engine plant, which is part of a $500 million expansion plan from

parent company Ford. As a part of cost cutting measures Ford has

resorted to sourcing local parts and it is estimated that the local content

in our Ikon and Fiesta models are 90 percent and 85 percent respectively

However despite cutting the cost base, Ford India Pvt Ltd was back in the

red in 2007-08, after posting a profit the previous year. Other

multinational car manufacturers – General Motors India Pvt Ltd, Honda Siel

Cars India Ltd, Toyota Kirloskar Motor Pvt Ltd and Hyundai Motor India Ltd

– have posted profits for the year, according to their annual reports.

III. Ford Fiesta

Ford Fiesta was launched in November 2005 and is a strong player in the

Premium B segment, competing with brands like Honda City, Maruti SX4,

and Hyundai Verna and Fiat Linea. Currently Fiesta holds close to 8%

market share in the segment. It is available in the 1.6 liter petrol version

and the 1.4 liter Diesel options and comes in 7 variants. (3 in diesel and 4

in petrol) and has a sales split of 81% Diesel cars and 19% petrol cars.

Fiesta is known for its very reliable Diesel car.

Autocar reported highway efficiencies of 16.6 kmpl in the Honda City and

14.9 kmpl in the Fiesta and for city conditions the Honda City returned

10.9 kmpl and the Fiesta returned 9.6 kmpl. Thus the mileage is only very

slightly more in the Honda City. However the Fiesta has a much more

powerful engine at 101 ps against 78 on the Honda City and thus delivers

far more driving pleasure. The Fiesta also has comfort and convenience

features like leather seats, 6 CD in dash changer, keyless entry, foldable

rear seats, to name a few. Safety too is better off with ABS and EBD as an

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option and a rigid passenger cell protected in the front and rear by

crumple zones and at the side by impact beams.

Thus despite superior features, Ford Fiesta have a very low petrol car penetration in the segment, in spite of having a highly acclaimed

Duratec engine, for its superior refinement and performance. In India 65%

of sales happen in metros and mini metros, where markets like Delhi,

Mumbai and Chennai account for the highest sales.

IV. Objective of Project

• Identify key factors that influence car buyers in Chennai

• To understand perceptions of brand image of Ford against

competitors and Fiesta Vs competitor cars

• Understand dealer /sales manager point of view over fiesta and

competitor cars

V . Methodology

• Identify the prevalent brands and car models in India and segment

them. Identify the operating segment of Ford Fiesta

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• Primary interviews with a sample of the identified segment to gauge

the end user perception of the brands, specific models

• Dealer visits and observe interactions at POS

• Segment communication analysis of competitor cars and identify

trends if any

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VI. Segmentation of the Car Industry in India

This process began with a list of car models in India. This was then

followed by the listing of features of each model:

• Price

• Design - Types

o Hatchback : Five door car. Four access doors and hatch gate-

full height door at rear to access cargo and luggage space.

Passenger capacity 4-5

o Sports Utility Vehicle (SUV): Square cross-section, an

engine compartment, a combined passenger and cargo

compartment, and no dedicated trunk. Passenger capacity of

5-8. Loading capability of a pickup truck, passenger carrying

capacity of a van and designed to run in different terrains.

o Multi Utility Vehicle (MUV): Similar to a sedan however has

large interior space on account of removable seats. Large

seating space(7-10), and big boot space

o Sedan/Saloon : Four/two(Coupe) door car having a capacity

4-5 and a separate luggage space

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• Engine capacity and power - Performance

• Variants – Petrol/diesel

A. Segment A:

• Price: 1.8-3lakhs

• Hatchback car

• Low engine capacity

• Models: Maruti 800, Now Nano

B. Segment B:

• Price: 3-5lakhs

• Hatchback Cars

• Engine Capacity: 1000 CC, Average power 60 bhp

•

Models: Alto, Indica, Santro, Matiz, Wagonr, Swift, Zen Palio, A-star,i10

C. Segment B+:

• Price: 5-10 lakhs

• Engine Capacity: 1600 cc. The power rating varies from a 90bhp

-100.• Hatchback, Sedans and SUV

• The seating capacity is greater than that of the Segment B and they

may be categorized as mid sized cars.

• Models: Esteem, Indigo, Accent, Fiesta, Fusion, Sail, SX4, Logan,

Ikon,

Fabia, Dzire, U-VA, Sail

Safari, Sierra, Scorpio

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D. Segment C:

•

Price: 10-14lakhs• Luxury Sedans and SUVs: includes air bags, anti lock brakes.

• Not a great change in the engine capacity.

• Models: Lancer, Elantra, Octavia, Corolla

Tavera, Scorpio, Qualis, Safari (deluxe variants)

E. Segment CD+

• Premium luxury sedan and SUV

• Price : 14 lakhs +

• The primary difference here and between the C segments is more

on the capacity and power of the car.

• Externally the length of the cars in the CD+ segment is greater than

C segment.

• However there is not a high increase in the weight of the car.

• Engine capacity 2350 Power: 160bhp

• Models: Sonata, , Teana, Accord

Mondeo, Endeavour, Tucson, Prado

F. Premium Cars:

• This caters to the requirements of luxury and performance. The cars

in this segment have high power ratings, at the same time

incorporate above mentioned luxury features.

• Price: Wide variation - no local manufacturing

• Here the models comprise of sedans and Coupes.

• The designing focus on Coupes is logical as with the decrease in

number of doors the performance may be enhanced without

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augmenting the engine capacity. Engine Capacity 3000CC, Power

250bhp.

Discoveries

• Increase in the design variety from the low( 1 variant, hatchback) to

the mid price segment( sedan, hatchback and SUV)

• Less models/variety of SUV in the 5-10 lakhs segment

• All transitions into the high priced segment go for a sedan model

than a hatchback. Thus the sedan design type is associated with

luxury• When moving from the B segment → B+ → C segment ,the price in

case of Hyundai variants almost doubles from the B+ (5lakh) to the

C (10 Lakhs) segment.

• Antilock breaking and airbags, CD player is not present in many of

the B+ sedans

Thus the basis of segmentation is on price from the consumer viewpoint.

However design players an important role in the high price segments and

performance in the luxury price segment. The above variation in segment

behavior may be explained on the basis of Maslow Theory of needs.

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As the above diagram portrays, there are different levels of car

purchasers which vary with the intention for purchase. The three factors

namely price, performance and design play a role in the purchase decisionof every car intender. However the priority level shifts with the rise to the

top of the pyramid.

For a car intender at the bottom of the Pyramid, he is looking for a

small car and his budget is a constraint. Thus he would probably consider

the hatchbacks in the sub b segment or maybe even the a segment which

deliver value for money in terms of cost of ownership as the cars are

generally low maintenance and offer good mileage. If he is able to

purchase a sedan within the same price range which also provides him

with good mileage, he would probably go for the sedan as it will give him

more status which, every man is concerned with.

As we move to the second level, the intender has the money but may

still decide to purchase a hatchback (if he finds this more convenient) or a

sedan. Price does not pay so much of a role here as he has the money but

he considers the usage of the car while he decides the consideration set

and depending on that picks out a car that is best suited to him.

At the very top of the Pyramid is Performance and status which is

all important to the man on top as he feels he is the best and

deserves something special. Price plays a minor role here as he can

afford the very best and he might play around with model type depending

on how he wants to portray himself. An adventurous sporty person might

opt for an SUV or someone looking for the luxurious feel would opt for the

sedan model.

Finally from the industry viewpoint the segmentation of cars is done on

the basis of length of the automobile. Up to a certain length of the car, it

is classified as a small car and is eligible for benefits. Thus Tata Indigo

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despite being a sedan in the 5-10 lakhs segments is eligible for

tax advantages as according to the length is classified as a small

car.

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Segmentation of the Car

Industry

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1-3 lakhs

3-5 lakhs

5-10 lakhs

10-14 lakhs

14 + lakhs



VII. Segment Communication Analysis

Ford model Fiesta falls into the 5-10 lakhs segment. In this segment

the closest competitors for Fiesta are the Honda City, Maruti SX4,Hyundai Verna based on the price. The leader among these in terms of

sales is the City followed by Verna and finally Fiesta.

To determine the possible reasons for low sales of Fiesta and the

consumer perception we analyzed the communication patterns for

each of the variant for the period 2006-2009.Monthwise data regarding

the sales of each variant was available with us. We then investigated

the entire pattern of communication as followed by these models

The communication type is broadly classified as:

• ATL (Above the Line): These include print, digital (mobile &

internet), billboards, TVC and radio.

• BTL (Below the line): These types are communication aimed at

the point of sales of the product near the consumer touch points.

Here while designing the communication it is assumed

that the consumer is past the affective and cognitive

stage and into the behavioral stage.

We investigated the press advertisements as the percentage of

population viz urban and rural was the same .Again we limited

the analysis to the metros and did not consider the regional

advertisements as the corresponding sales was marginal.

The press advertisements were categorized into two:

• Variable marketing (VM): This included financing,

maintenance, exchange and other offers such as free

accessories.

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• Brand: Absence of any of the above mentioned offers and only

the message conveyed by the brand.

Observations

A. Year – 2006

• The year 2006 saw the city model releasing only value marketing

advertisements no advertisements by any other model

• The later quarter Verna released only brand advertisements -

launch phase• Jan 06- Mar 06 only VM for Ford Fiesta, April 06-Nov 06 only

Brand( Key competitor action being launch of Verna in Sep 06 and

city anniversary edition from Sep 06 – Nov 06)

B. Year – 2007

• Year 2007 City continued with VM communication but decreased thefrequency and finally released no advertisements in the months of

March & April 07.Correspondigly Verna branched off into VM

advertisements and during March & April 07 released only brand

advertisements

• From May 07 – Aug 07, City released VM and brand based

advertisements but Verna limited communication only to brand

advertisements• The last quarter of 2007 City , Verna focused on VM communication

but frequency decreased

• In 2007 SX4 release only brand ads in the second quarter (launch

time, April 07), no advertisements in the third quarter and VM

advertisements from the Dec 07.

• Ford Fiesta only brand ads from Jan 07 – April 07, May 07-july 07 VM

, Aug 07 – Oct 07 again brand .

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C. Year 2008

• Honda City continues its emphasis on Value ads, the months of

Feb, March and April say release of brand advertisements. Thesame period saw corresponding action by SX4 and Verna but

frequency of Advertisements was greater in case of City.

• Verna Communication pattern is similar to City however no ads

from Aug -08 to Dec -08

• SX4 heavy emphasis on brand based advertisement, brand

advertisements only during Jan – April 08

Communication Pattern 2006

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Communication Pattern

1 2 1

20

15

11

0

42 1

Feb-

06

Mar-

06

Apr-

06

May-

06

Jun-

06

Jul-06 Aug-

06

Sep-

06

Oct-

06

Nov-

06

Dec-

06

Months

City



Honda City - Value Vs Brand Ads

34 4

6

4

12

3

12

1

8

5

21

Jan-

07

Feb-

07

Mar-

07

Apr-

07

May-

07

Jun-

07

Jul-07 Aug-

07

Sep-

07

Oct-

07

Nov-

07

Dec-

07

Months

V

Br

Hyundai Verna - Value Vs Brand

2

1 1

2

1

3 3

1

2 2

Jan-

07

Feb-

07

Mar-

07

Apr-

07

May-

07

Jun-

07

Jul-07 Aug-

07

Sep-

07

Oct-

07

Nov-

07

Dec-

07

Month

V

Br

Communication Patterns - 2007

…………………………………………………………………………………………………

………………………………………….....

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Communication Pattern - 2008

Hyundai Verna - Value Vs Brand

32

3 34

8

3

11 1 1

Jan-

08

Feb-

08

Mar-

08

Apr-

08

May-

08

Jun-

08

Jul-08 Aug-

08

Sep-

08

Oct-

08

Nov-

08

Dec-

08

Month

V

Br

SX4 - Value Vs Brand

1 12

1

10

89

3 3

1 1 1

3

1 1 1 1

Jan-

08

Feb-

08

Mar-

08

Apr-

08

May-

08

Jun-

08

Jul-08 Aug-

08

Sep-

08

Oct-

08

Nov-

08

Dec-

08

Month

Val

Br

Honda City - Value Vs Brand

3 3

7

5

3

8

4 4

21 1 11

32

4

2

Jan-

08

Feb-

08

Mar-

08

Apr-

08

May-

08

Jun-

08

Jul-08 Aug-

08

Sep-

08

Oct-

08

Nov-

08

Dec-

08

Month

V

Br

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Discoveries

Trends observed for City, Verna and SX4

• The launch phase focuses exclusively on brand advertisements to

increase awareness (AIDA).

• These continue for one quarter and then VM advertisements take

over.

• However the competitor action focuses on brand advertisements in

this quarter, probably to increase awareness of the perceivedsuperiority of their product.

• Frequency of VM advertisement exceeds brand advertisements at

any time.

• Maximum number of VM communication in June , July months

• Among the segment - Low Interest/Low interest, Loyalty Bonus &

Accessories dominate the VMs offered in the last years

• Consistent VMs provided by Honda City includes - Low Interest &

Low Down payment

• Hyundai Verna had consistently offered Loyalty Bonus & variable

cash discounts

• SX4 has been consistently offering Rs.10,000 Loyalty bonus & there

has also been cash discounts up to Rs.25,000

Trends for Ford Fiesta

• Fiesta did not have any consistent Offer - the offer keeps changing

every month.

• Maximum number of brand communication rather than VM.

• December’08 Price off ad delivered the highest Phone INS in the

brand's history, while WinPin to retail conversion stands at only 9%

for Ford Fiesta.

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• The press advertisements taken into account comprised

only of 40% of the total advertisements)

AIDA Model of Communication

VIII. Survey Responses

A survey regarding the perception of cars in the Fiesta segment was

undertaken to determine the consumer perception of the communication

patterns adopted. The methodology of the survey was:

• Observe interactions at Ford and competitor car showrooms to

determine the efficacy of BTL advertising and determine the dealer

pitch.

Interviews with car owners

A. Target Group

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Attention

Action

Desire

Interest

Cognitive

Behavior

Affective



Prospective car buyers in the age group of 30 to 40 who are

considering the following set of cars – SX4, Fiesta, Linea, City,

Verna.

B. Sample

• The study comprised of both telephonic interviews as well as an

online questionnaire.

• Due to lack of responses to the telephonic interview, much of the

study result is based on the responses to the online questionnaire.

•

The online questionnaire was limited to contacts that werepersonally known and some contacts provided by the company. This

was done to ensure that the study was kept discreet.

• Due to all the restrictions and difficulty obtaining

interviews, the final sample size was limited to thirty.

The user survey focused on:

• Identifying the parameter user’s desire in a car, the

respondents were chosen so that the Fiesta segment is

adequately represented. These parameters were assigned

scores on a scale of 1-5.

• The perception of the users regarding petrol and diesel

powered vehicles. This data coupled with their current cartype and the ratings assigned to car features can be

utilized the favorable and unfavorable parameters with

each fuel type

• Rating the brand and the models on a scale of 1-5.This

data could be used to determine the favorable aspects of

the brand and the model per se and determine patterns if any.

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The above inputs coupled with Fords communication pattern and

competitor communication pattern to identify the perception of Ford

Fiesta.

IX. Data Analysis

A. Feature Ratings

Defined as the following:

• Price

• Performance: How the car drives, runs or in general performs,

meant to be an indicator of power

• Brand Name

• Fuel Efficiency

• Safety

• Maintenance Ease/Reliability: Frequency of breakdowns or

necessity of repairs

• Luxurious Interiors/Silence in Car /Comfort/Refinement: All show

similar responses

• Performance ranks the highest as the feature desirable in a car,

followed by maintenance ease and reliability

• However the rating given to power does not vary widely

from performance

B. Brand Ratings

Defined as:

• Spare parts availability

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• After Sales service

• Maintenance cost

• Mileage

Brand Ratings

Ford Honda Hyundai Maruti

Spare Parts Availab

After sales service

Mileage

Maintenance cost

• Maruti scores the highest on maintenance ease, spare parts

availability and after sales service followed by Hyundai and

Honda. Ford ranks the least on these parameters

• Maruti is again the highest on mileage feature but the difference

is very less among Honda and Hyundai. Ford again ranks the

least.

C. Model Ratings

Defined as:

• Stylishness: The X factor associated with the model

• Fuel Efficiency

• Reliability: The consistency in performance

• Performance: The power delivered while driving

• Comfort

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Model Ratings

City Fiesta Linea SX4 Verna

StylishnesFuel efficie

Reliabilty

Performan

Comfort

• City leads in stylishness followed by Linea and SX4.Verna and

Fiesta Ranks the same

• City leads in fuel efficiency, SX4 and Linea ranks the same and

Fiesta and Verna rank the least

• City leads in reliability and SX4, Linea and Fiesta rank the

same

• City leads in performance parameter followed by Fiesta

• City again leads in comfort followed by SX4, Linea and Fiesta

Discoveries

• All the respondents own a petrol powered vehicle

•

Maintenance cost and price is perceived to be vary widely (50%approx) between petrol and diesel variants, however

performance is not perceived to change.

• Reliability is perceived to be similar among petrol and diesel

variants

• Service quality and availability of service centers are perceived as

the most desirable features with the purchase of a car.

Extended/free warranty features rank low on desirability scales

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• DIY kits and customized maintenance plans rank second on

desirability features

Thus a petrol car is perceived to offer a low/high maintenance

cost and among brands Ford ranks least on the features of spare

parts availability, maintenance cost after sales service and

mileage. However the highest rating among these is for spare

parts availability.

Finally Fiesta model ranks high on reliability score which provides

a good opportunity.

X. Dealer Interactions

At all dealers we went in as possible buyers. The following were taken into

consideration:

• Communication at the POS( in terms of use of posters, danglers etc)

• Dealer pitch: evaluated on basis of information of present car and

the competitor cars, manner of presentation.

We evaluated the dealer pitch according to the AIDA model.

A. DSC Hyundai

POS Communication

• There was a change in Verna model. The car is now available in

only six colours, however the brochure still displays all the previous

colours as the new brochure is not available.

• The Verna is on display in the showroom

• Tech Spec Stand

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• Standees

Dealer Pitch

• The car offers 11 to 12 mileage with the AC in city driving

conditions.

• It has a clutch lock which no other car in the series has. This ensures

that when starting the car the clutch does not have to be pressed

very hard and thus the clutch plate will not wear out as quickly as in

other cars.

• Kenwood music system is included within the price of the models.

• The VTVT engine offers the best pickup in the class

• Honda City has the fuel tank in front of the driver seat. Two cars

were burnt because of this in Mumbai.

• Diesel cars are selling very well as compared to the petrol sales.

• Overall sales are about 20 per month.

B. Maruti Dealers (ABT)

POS Communication

• Colour chip Stand

• Tech Spec desk top display ( SX4 vs Honda City)

• Car on display

• Brochures

• Posters ( Men are Back)

Dealer Pitch

• He stressed on the reliability of Maruti

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• For the first three times within the period of a yr, the servicing is

free.

• The Service centre just next to the outlet and so it is very

convenient for the customer to get his car serviced.

• Spares are very easily available as Maruti certified spares can be

bought anywhere.

• Admitted that the car is low on mileage as compared to the Fiesta.

• Sales average about 30 per month.

C. Fiat Showroom (Tafe)

POS Communication

• Toy Linea in showcase

• Linea on display

• Posters

Dealer Pitch

• Blue and me: This is a blue tooth service which allows you to receive

calls without picking up your handset.

• The Car is the most stylish one within the set

• Kenwood system is included for no extra cost in the higher end

models

• Climate control

• Sales are 30 per month

• Price inclusive of leather interiors

30



D. Sundaram Honda

POS Communication

•

The new Honda city on display

• Posters & Standees

Dealer Pitch

• An increase in the power from 100 bhp to 116 bhp

• Comes with a 1.5 liters engine

• Leather interiors available in base model

• Provision of i-pod compatible accessories

E. MPL Ford

POS Communication

• ‘New ford fiesta- styled to perform’ poster

• Same poster on help desk

• ‘Fall in Dura love – ford fiesta’ poster

•

1.6s color chip display• Accessories display and poster

• Tech spec stand

Dealer Pitch

• Successful in petrol and diesel versions

•

Provides zip and drive pleasure with sporty looks

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• Honda City: Better power to weight ratio in terms of handling. The

earlier city was a bigger hit. In the new version, weight of the car

has been decreased in order to increase mileage

•

Maruti SX4: successful with small cars, heavier than fiesta, andlimited visibility.

• Verna: Only petrol variant is offering good VFM, user confidence on

account of large number of cars seen on the road.

XI. Analysis and Recommendations

As seen above the target group has low price sensitivity but high

preference for designs. Since a majority of cars in the given segments are

sedan designs an opportunity would exist in designing either a hatchback

(only Linea) or an SUV.

Secondly the communication pattern followed by Ford Fiesta does not

show any given structure as opposed to other models such as City, Verna

and SX4.Fiesta communication shows a high emphasis on brand based

communications. This in turn has lead to increased awareness of

Ford Fiesta per se compared to other models as indicated by the

corresponding WinPin. However the retail conversion scores are the

least this may be due to mismatch between subsequent communications.

• The mass level – Low frequency of VM combined with improper

timing

• Inability to generate interest at the corresponding POS

locations( Dealer Pitch)

The POS communication is similar in all the outlets in terms of the

accessories used viz props, standees, Tech spec stand. However the

dealers pitch shows difference:

• Honda: Emphasis on power and drivability. Additionally there is also

emphasis on special features such as iPod compatibility.

32



• Hyundai : Emphasis on success in petrol and diesel variants, special

features of in built music system and clutch lock facilities.

• SX4: Emphasis on maintenance ease and free service features

• Ford: Emphasis only on driving pleasure and sporty looks. Such

communication may not generate interest as it is not

differentiable from other cars in this category.

As seen with other model of cars in this segment, the commonality in all

the dealer pitch is power and performance. However in addition to this

they also adopt some other characteristics to generate user interest and

may propel him to the next stage of desire and subsequent action.

However the comparison between similar models in this segment was

adopted which may generate interest. As indicated by the survey,

reliability is the most preferred characteristic in a car and the

understandably DIY kits and maintenance ease rank as most desirable

post purchase features. Thus the pitch may emphasis on the reliability

aspect of Fiesta, also allow potential customers to design their own

maintenance schedules.

XII. Annexure

A. Discussion Guide

1. Name:

2. Age:

3. Occupation:

4. Interests /hobbies:

5. List the brand of cars you are aware of?

6. Which car do you currently own? Petrol or Diesel?

7. When did you buy the car/s? What were the specific reasons to choosethat car?

33



8. Where did you first hear about your current car?

Newspaper (Specify), Auto magazine (specify), Promotional event, TV

Commercial, Friend or colleague

9. Who primarily influenced you to choose the specific car?

Friend/colleague (What car he owns?), Sales personnel, Family preference

(Relationship?), Self, Media (Articles in Internet / TV/ Paper), others

(specify)

10. How satisfied are you with your current car?

Extremely satisfied, Satisfied, Neutral, Dissatisfied, Very dissatisfied

Specific reasons for preference if any?

11. How often do you use your car?

Daily commute, Weekend trips/ Family trips, Business trips

12. What is your perception about Petrol cars and Diesel cars?

34



13. What are the parameters you would associate as important in a car?

(Rate on a scale of 1-5, 1 being least preferred and 5 being highly

preferred)

Least

Preferre

d

Highly

Preferred

1 2 3 4 5

PricePerformance/Powe

rBrand

name/Badge

Fuel efficiency

Safety

Image

Maintenance easeReliability/Consiste

nt performance

Trunk Space

Luxurious InteriorsSilence inside the

car

Comfort

Refinement

Special

features( specify)

14. Please rank the essential support required with the purchase of a car

(on a scale of 1-5, 1 being least desirable and 5 being the most desirable)

Least

Desirable

Most

Desirable

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Large number of

service centersWarranty/Guarantee/

Free service

DIY kitsCustomized

Maintenance plans

15. When do you intend purchasing your next car?

Within 2 months

2 – 6 months

6months – 12 months

After a year

Others (specify)

16. What brand will it be? Why?

17. Fuel type?

Petrol

Diesel

18. Kindly rank the following w.r.t to similarity between Petrol and Diesel

cars (1 being highly similar and 5 being dissimilar)

Purcha Maintenanc Mileage Performan Reliabili

36



se

Price e Cost ce ty

Purchase PriceMaintenance

Cost

Mileage

Performance

Reliability

19. Kindly rate the following brands on a scale of 1-5, 1 being least/poor

rating and 5 being excellent on that parameter.

20. Kindly rate the following brands on a scale of 1-5, 1 being least/poor

rating and 5 being excellent on that parameter.

Stylish Fuel

efficien

cy

Safet

y

Reliabili

ty

Performan

ce

Comfo

rt

Status

Symbo

lHonda City

Hyundai

Verna

Maruti SX4

Fiat Linea

Ford Fiesta

21. What is your perception on Ford Fiesta?

Brand Spare parts

availability

After sales

services

Mileage Maintenance

cost

Ford

Maruti

Hyundai

Honda

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22. What are the fuel options available in Ford Fiesta? (Unaided)

23. What is the price range of Ford Fiesta?

24. How do you rate Ford Fiesta against these brands?

Honda City Hyundai Verna

Maruti

SX4 Fiat LineaSuperior

Equivalent

Inferior

Reasons

25. What will make you consider buying a Ford Fiesta Petrol?

33617603 Final Project Report Ford Motors and JWT

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