1. Case PresentationFord Ka Presented byAnaghh Sharma -1201006Mareddy Markandeulu-1201028 Prabhakaran-1201035 Preeti Admane -1201037Bhagyashree Tilekar-1201054Yamuna 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 FranceYearSales (in billion)Net Income (inbillion)1994FF18.7FF0.641995FF17.7FF0.28 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. Europes 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 remainingEuropean 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 Europe32.243.7%%Small cars Small cars OtherOther cars cars 4. Small Cars Market Share in 19951995 -GM 7.6 % Manufacturing Ford7.6 % 8%Fiat11 %Market Share Renault Re20.1 %in 1995 Peugeot18.1 % Citreon 0 204036.6 % 5. Small car categorization done to keep up to the expectations ofsecond time buyers Divided into 4 categories as below: o A o Basic B provided product attributes that were associated withsmall 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 realization1. Income2. 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 characteristicsFrench car buyers had the below buyercharacteristics Gender Age Marital Status Household size No. of children in household Household income Place of Residence 7. Environmental and Demographic changesMarket for small cars increased due to Increased road congestion Increased fuel prices Increasing toxic emission Average size of householdsreduced Increased working women and theirsmall 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 wasdecreasing. Changed demographics, Customers expected featuressimilar to large cars. Fragmented small car market- not able to satisfy all thesegments Success of Renault Twingo resulting in loss of market share 10. Birth of Ka Fiesta brand not being able to compete inRenault Twingo. Developed Ka using the chassis as Fiesta. Idea of marketing on the basis of innovativestyling, features and manoeuvrability. Search of target market after the development ofcar. 11. Market Research Methods- Focus groups, Surveys and PersonalInterviews. 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 andsenior citizens In the long run- changes in designs targetingdifeerent segments such as youth, female, familyetc. 13. THANK YOU