NAME-HARI PRAKASH MISHRA ACL-1 ASSIGEMENT – MARKETING FUNDAMENTAL . Comment on the segmentation and targeting strategy of Ford Mustang. The third stage of the market segmentation process is the creation of a specific Market mix to fulfill the needs, as well as market conditions of each specific target“ Segment (Wilkie, 1990; Gunter & Furnham, 1992; Kotler, 1994).
Although many authors Limit the market segmentation process to market identification rather on the key elements Of the entire process, most companies fail to give due importance to other stages in Market segmentation such as product positioning and mix development (Sarabia, 1996). Once the firm has chosen a market segment it must choose a generic competitive strategy. At this point it is also necessary to review the selected strategy across segments and explore general strategic approaches.
In some cases it might become apparent that a Counter-segmentation strategy is applicable. In other cases, the development of distinct Mixes for each segment uncovers inconsistencies or lack of resources at the corporate Level and so it is necessary to revert to the segment evaluation stage. According to Kotler (1994, p. 293) the only sustainable generic strategy in a Segmented market is differentiation. He explains that the only other generic competitive strategy alternative (low cost) is not sustainable in a segmented market.
In addition, a strategy successful at differentiating must generate customer value, provide perceived value, and be difficult to copy. At this point in the process the company selects those ways in which it will Distinguish itself from its competitors. In most cases the differentiation involves multiple Elements. In fact, “most successful differentiation strategies involve the total Eureka Facts, the Smart Marketing Information organization, its structure, systems, people, and culture. ” (Aaker, 1996). One way to Differentiate is through brand equity building.
A strategy based on brand is likely to be Sustainable because it creates competitive barriers. A brand strategy permits the strategist to work with complex concepts and not limit the differentiation strategy to just a few Competitive differences. This approach is consistent and reinforces the STP approach. A successful brand strategy builds barriers to protect the selected position by creating Associations of the positioning variables with the brand name in the prospect’s mind. THE FORD MUSTANG Ford Motor Company was built on superior products and that still exists today.
They have an exceptional line of cars and trucks, which ranges from the Model-T to today’s Ford Focus and F-Series, the bestselling car and truck in the world. Their current product line up is the strongest in their history and is still getting stronger. This year they added the new Ford Explorer, Thunderbird and Expedition in North America, Ford Fiesta in Europe, the new Lincoln Blackwood and Navigator, Land Rover Freelancer and Range Rover, Jaguar X-Type, Aston Martin Vanquish, Mercury Mountaineer, and the Mazda Sport Wagon.
These vehicles will help distinguish them from their competition. All of their products and services benefit from their diverse family brands. They acquired the Land Rover in 2000, 1999 they acquired Volvo and Kwik-Fit, 1989 they acquired Jaguar, 1987 they acquired Aston Martin and Hertz, and in 1979 they acquired Mazda. This all lends in a hand in building strong, lasting relationships with their customers and to help their business grow. Ford believes that a major factor in their success is their role as a positive contributor to the community.
They introduced this plan in early 2000 Factors in the production and marketing of this car are noted: styling, targeting, pricing — given the wide range of accessories. The paper discusses the radical nature of the advertising campaign on a national basis for this car. 5p. 6f. 3b10332 HARLEY DAVIDSON. Discusses the firm’s target market, product strategy, price, place, promotional activities. Influence of Japanese exports and how HD had to request tariff protection; HD’s near-demise and subsequent recovery. 8p. 34f. 13b. organization, its structure, systems, people, and culture. (Aaker, 1996). One way to differentiate is through brand building. A strategy based on brand is likely to be Sustainable because it creates competitive barriers. A brand strategy permits the strategist to work with complex concepts and not limit the differentiation strategy to just a few Competitive differences. This approach is consistent and reinforces the STP approach. A Successful brand strategy builds barriers to protect the selected position by creating Associations of the positioning variables with the brand name in the prospect’s mind.
Factors in the production and marketing of this car are noted: styling, targeting, pricing — given the wide range of accessories. The paper discusses the radical nature of the advertising campaign on a national basis for this car. Factors in the production and marketing of this car are noted: styling, targeting, pricing — given the wide range of accessories. The paper discusses the radical nature of the advertising campaign on a national basis for this car. 5p. 6f. 3b10332 HARLEY DAVIDSON. Discusses the firm’s target market, product strategy, price, place, promotional activities.
Influence of Japanese exports and how HD had to request tariff protection; HD’s near-demise and subsequent recovery. Marketing Strategy Key Points: • 2007 Mustang continues to build upon the all new, from-the-ground-up 2005 Mustang • V6 buyers continue to get an exciting offering with the V6 Exterior Sport Appearance Package, and the Pony Package. Tape Stripe Delete option is still available on both of these packages. • V6 new for 2007 is the availability of 17″ wheels (64D) as a free standing option. GT buyers continue to get the option of 4 wheel combinations, 2 17″ (64D & 64F) and 2 18″ (64E & 64W) • GT new options for 2007 o GT Appearance Package (54G) which includes Hood Scoop, Bright Rolled Exhaust Tips, and Pony Emblem Engine Cover o GT California Special (54C) which includes 18″ Polished Aluminum Wheel (64W) Dove or Parchment interior environments, Black leather seats with unique Cal Special contrasting Dove or Parchment “GT Leather” inserts, California Special badged floor mats, unique front fascia, larger air intake, chin spoiler 1. ” lower than GT, unique fear fascia with race care like “diffuser”, side scoops, unique tape stripe, and bright rolled exhaust tips. • V6 & GT new interior options include: o Sport Appearance Package w/Color Accent (18M) – includes the 2006 Interior Sport Appearance Package plus Black interior components (seats, carpet, mats, and front door panel inserts), Cloth or leather seats providing contrast in Graphite & Parchment Interiors and aluminum pedal covers o Premier Trim w/Color Accent Pkg (68B) – includes wrapped & stitched IP brow and center console lid, upgraded door armrests (w/stitching) and aluminum pedal covers.
Available in Chamois, Red, and Black leather seats with door trim inserts on 5 interior color combinations o Comfort Group (53B) – includes heated driver and passenger seats, 6-way power passenger seat and electrochromic mirror with compass o Freestanding option of heated seats (65A) • Optional driver and passenger seat side-mounted air bags (43A) provide side impact head protection and rollover protection. This option no longer requires the Interior Upgrade Package (18G), side-mounted air bags include Dark Charcoal Aberdeen pattern front door panel inserts. Mustang also continues to offer audio and entertainment options that place Mustang at the forefront of technology and performance. These include: ? New for 07 • SIRIUS™ Satellite Radio (50S) • Auxiliary Audio Input Jack ? Continuing for 07 • Shaker 500 Audio System (912) offered on Deluxe and Premium configurations • Shaker 1000 Audio System (918) offered on Deluxe and Premium configurations for GT and Premium on V6 Recommended Mix: Series Retail Mix V6 Mustang Coupe “Deluxe” 35% V6 Mustang Coupe “Premium” 10% Mustang GT Coupe “Deluxe” 8%
Mustang GT Coupe “Premium” 12% V6 Mustang Convertible “Deluxe” 8% V6 Mustang Convertible “Premium” 9% Mustang GT Convertible “Deluxe” 8% Mustang GT Convertible “Premium” 10% Key Options Rates: Anti-Lock Brakes w/Traction Control on V6 (552) 35% Side Air Bags (43A) 30% V6 Exterior Sport Appearance Pkg. (54V) 30% V6 Pony Pkg. (54P) 20% GT California Special 5% GT Appearance Package 15% Convertible Soft Boot (59B) 35% Premier Trim with Color Accent (68B)) 15% Interior Upgrade Pkg. (18G) 75% Sport Appearance Package w/Color Accent 20%
Shaker 500 Audio System option on Deluxe arrays (912) 15% Shaker 1000 Audio System (918) 20% SIRIUS™ Satellite Radio System (50S) 30% Mustang GT Coupe and the wisdom on the street is that Ford did a good job in capturing the essence of the muscle car in this iteration of the Mustang. The sleek style and the sound of the exhaust were top pleasers. Ford must be doing something right. Its Mustang accounts for 50 percent of sports cars sold in the United States Is the positioning of Ford Mustang correct? I think the positioning of Ford Mustang is correct
The Ford Mustang is a popular sports car. It was originally based on the Ford Falcon. The first production Ford Mustang, a white convertible with black interior, rolled off the assembly line in Dearborn, Michigan on March 9, 1964. It was later introduced to the North American public at the New York World’s Fair on April 17, 1964 and via all three American television networks on April 19 that year by the Ford Motor Company. It was the most successful product launch in automotive history, setting off near-pandemonium at Ford dealers across the continent.
The original Mustang is considered to be the inspiration for the term pony car, and prompted many imitators. The list would continue to grow through much of the Mustang’s history, adding trim packages like the Interior Decor Group (or “pony interior”) and GT package (which included disc brakes, handling package, and other items), as well as additional engine choices and convenience items. About the market The timing of the car’s introduction coincided perfectly with the first wave of the postwar “baby boom” which was heading off to work in a strong economy.
Incredibly, no domestic manufacturer up until that time had anything remotely resembling an affordable yet youthful and sophisticated automobile aimed at this burgeoning market, and Iacocca knew it. Despite his repeated attempts to receive the go-ahead to produce such a car, his proposals fell on mostly deaf ears. Because the company was still smarting financially after the demise of the Edsel Division in late 1959, upper management at Ford under Robert McNamara (later United States Secretary of Defense under Lyndon Johnson) wasn’t willing to take such a major risk.
The option list included several powertrain combinations. The buyer could choose a four-speed manual transmission ($115. 90 or $188. 00 with six-cylinder or eight-cylinder engines, respectively) or three-speed Cruise-O-Matic automatic transmission ($179. 80 or $189. 60). The standard six-cylinder engine could be replaced with a 260 cu. in. (4. 2 L) V8 with 164 hp (122 kW) for $116. 00 or a 289 cu. in. (4. 7 L) V8 with 210 hp (157 kW). With the latter and four-speed manual, Road & Track recorded a 0-60 mph (0-96 kph) time of 8. seconds, with the standing quarter mile in 17 seconds at 85 mph. Starting in June 1964, the new “K-code” High Performance engine became available, with 271 hp (202 kW). The HiPo engine included a handling package (stiffer springs and shock absorbers, stiffer front anti-roll bar, fast-ratio steering, and wider tires) optional on other Mustangs. At $442. 60 (not counting the mandatory four-speed transmission) it was the single most expensive Mustang option, and only 7,273 of the 680,992 Mustangs sold in 1965 were so equipped. Positioning
Once a company has chosen its target market segments, it must decide what positions to occupy in those segments. A product’s position is the way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products. Consumers are overloaded with information about products and services. They cannot reevaluate products every time they make a buying decision. To simplify buying decision making, consumers organize products into categories—they “position” products and companies in their minds.
Marketers do not want to leave their products’ positions to chance. They plan positions that will give their products the greatest advantage in selected target markets and then design marketing mixes to create the planned positions. In the fast-food hamburger business, Wendy’s promotes never-frozen meat, hot off the grill; Burger King is known for its flame-broiled food, and Rally’s double drive-through uses low prices to position itself in the marketplace. 17 ? the Mustang in mid-1962, which gave the design team only eighteen months to design and develop the car.
Not only did the project wrap up in under eighteen months, it wrapped up under budget as well thanks to the decision to use as many existing mechanical parts as possible. As far as the design itself was concerned, Ford stylists basically threw out the company handbook on design limitations, pushing the stamping technology of the time to its limit in such design areas as the sweep of the rear lower valence and the remarkably complicated front end stampings and castings. Curved side glass was used as well, but at a price since the technology to produce distortion-free curved safety glass was still fairly young.
And though most of the mechanical parts were directly taken from the Falcon, the Mustang’s body shell was completely different from the Falcon’s, sporting a longer wheelbase, wider track, lower seating position and overall height and an industry first: The “torque box. ” This was an innovative structural system that greatly stiffened the Mustang’s unitized body construction and helped contribute to its excellent handling, at least compared to other cars of the time. And it smells like cheese. Some major changes to the Mustang occurred at the start of 1965 model year production, a mere five months after its introduction.
First was an almost complete change to the engine lineup. The 170 in? (2. 8 L) I-6 engine made way for a new 200 in? (3. 3 L) version which had 120 hp (89 kW) at 4400 rpm and 190 ft·lbf (258 N·m) at 2400 rpm. Production of the 260 in? (4. 2 L) engine ended with the close of the 1964 model year with a new, 200 horsepower (149 kW), two-barrel 289 in? (4. 7 L) taking its place as the base V8. A 225 horsepower (168 kW), four-barrel 289 in? (4. 7 L) was next in line followed by the unchanged “Hi-Po. The DC generator was replaced by a new AC alternator on all Fords and the now-famous Mustang GT was introduced, available with either four-barrel engine and any body style. Additionally, back-up lights were added to the car in 1965. Originally, the Mustang was available as either a hardtop or convertible. During the car’s early design phases, however, a fastback model was strongly considered. When the 1965 model year production began in September, 1964, the Mustang 2+2 fastback, with its swept-back rear glass and distinctive ventilation louvers made its debut as well.
Intended to be and considerable engine work, boosting output to 306 horsepower (228 kW). Even the car’s basic body structure was stiffened up front with an angled brace intended for the export models and so-called “Monte Carlo” bar triangulating the under hood shock absorber towers. Though Shelby’s influence on the car diminished as Ford’s influence grew, the 1965-1970 GT-350 and its big-block brother, the 1967-1970 GT-500 are among the most highly sought-after automobiles in the world. So too are the high-performance models offered over the years by other automotive tuners following in Shelby’s footsteps…
Much of the appeal–and the profit–in such a low-priced car came from the options list. Although Ford was not the first to offer an extensive array of options for buyers to choose from (Pontiac being arguably the industry leader in that regard), the Mustang’s optional equipment list enabled buyers to customize their cars to their tastes and budget. It also resulted in typical transaction prices hundreds of dollars above the base price, making the Mustang a profitable car for both dealers and manufacturer. Positioning Strategy Positioning strategy: marketing mix elements that influence the consumer’s perception of a brand Examples of brand positioning Lifestyle| Grey Poupon is “high class”| Price leadership| Southwest Airlines “no frills”| Attributes| Bounty is “quicker picker upper”| Product class| Mazda Miata is sporty convertible| Competitors| Northwestern Insurance is the “quiet company| Occasions| Wrigley’s gum used when smoking not permitted| Users| Levi’s Dockers targeted to men in 20s and 30s| Quality| At Ford, “Quality is Job 1”| Marketers can follow several positioning strategies. They can position their products based on specific product attributes.
Motel 6 advertises its low price; Hilton advertises its locations. Products can also be positioned on the needs they fill or the benefits they offer. Bennigans advert ises itself as a fun place, while many bars promote their image as a meeting place for singles. The big thrill in 2008 was the Mustang GT Coupe and the wisdom on the street is that Ford did a good job in capturing the essence of the muscle car in this iteration of the Mustang. The sleek style and the sound of the exhaust were top pleasers. Ford must be doing something right. Its Mustang accounts for 50 percent of sports cars sold in the United States.
But first…a little sidetrack…In his book, The Mustang Dynasty, John M. Clor refers to the period since 2005 as “back to the future” and it is an interesting take on the Mustang story. Clor’s theory is that the original Mustang success was more serendipity than good planning. He states that the Mustang is different from any other car, before or since, but that the Mustang nearly did not make it. The Falcon-based youth-targeted car started with a budget of $40 million which was barely enough to money to even think of a new car design. On top of that, the designers were given a mere year and a half to come up with the dream car.
It was like this, the Fairlane Committee that included Lee Iacocca and Don Frey among others were really putting the pressure on the Ford board of directors. Basically to keep the Fairland Committee off their backs, the board gave them the minimum money and a tight timeline. The rest is history. The Fairland Committee succeeded in spite of the lack of support. Color made the point that the Mustang has been the only “bright spot” in the Ford array of vehicles. The reason for this is that Ford keeps coming out with special models that appeal to the Mustang lovers, which is considered to be an image conscious market.
Factors in the production and marketing of this car are noted: styling, targeting, pricing — given the wide range of accessories. The paper discusses the radical nature of the advertising campaign on a national basis for this car. 5p. 6f. 3b10332 HARLEY DAVIDSON. Discusses the firm’s target market, productWhat this means is that Ford has one true constant in its production that has been successful over time and that is the Mustang. So in order to keep people coming back, Ford has to concentrate on the Mustang and it does this by looking to the past and reviving what Clor calls its “supposedly glorious past. It’s tough. Ford has to look ahead and capture the hearts of a very different target market while promoting a past that may not have been as great as it now seems. There is a line about people – the older we get, the better we were. Ford has this kind of thing going with the Mustang – the older it gets, the better it was. This is the gist of Clor’s book. It make interesting reading. It also makes a person think about whether this is the way it really was. Because of the affection that many have for the classic Mustang, I don’t agree that the older it gets, the better it was.
It was always better. But Clor is right about how Ford keeps the Mustang alive and thriving with its special models. In anticipation of the next unveiling, people do speculate on what the next special model will be. So back to the dream car…. Will it appeal like the Mustang GT Coupe? Will it rest on the laurels of previous Mustangs? Rumors suggest a retractable hardtop convertible and more hp but nothing really startlingly different in spite of its need to compete with the Camaro and the Challenger. The next really exciting new look is apparently slated for 2010. |