Ford Ka Hbs Case

1788 Words Mar 22nd, 2012 8 Pages
Executive summary
The Ford Ka cannot be marketed to a specific demographic segment, as defined by traditional variables such as income, age, or marital status. Willingness to purchase the Ka was for the most part not dependent on membership in these traditional segments. Alternatively, we propose Ford develop a campaign toward a certain segment defined by attitudinal and psychographic variables. We plan to target this segment with tailored advertising campaigns addressing their unique worldview, and adopt higher-end pricing to maximize profit from what ultimately must be a niche product with a small number of loyal followers. Segmentation of the overall car market
The overall market in France, in 1995, was segmented almost exclusively
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Psychographic question responses identify distinct attitudinal segments
The survey included 62 questions designed to capture the respondents’ attitudes about cars, car features, car manufactures, car buying habits, and general consumer tendencies. First, we ran a factor analysis to reduce those 62 questions into a smaller set of core underlying issues. Our scree plot indicated there were 4 key factors: “Form Over Fashion”, indicating the extent to which consumers preferred technical features over a stylish car; “Sport Car Junky”, indicating the extent to which consumers were willing to sacrifice practicality for a car with more zip; “Car Avoidance”, indicating the extent to which consumers were enthusiastic about cars and the automotive industry; and “Frequent Driving”, indicating the extent to which consumers expected to make heavy use of their car. We categorized the 62 questions to these four factors based on which one had the strongest factor weighting.

Segmentation approach and target buyer identification
To identify attitudinal segments, we used a K-means cluster on the same 62 attitudinal questions, and generated 4 clusters. The four clusters can be described by the following groups that summarize how each group responded to the attitudinal questions, as summarized by their average factor score (see figure 7.) 1. Pragmatists: Not fashion conscious; just wants a reliable car with solid features that will get them from A-to-B. Spends

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