Final Project Report - Ford Motors and JWT

8/9/2019 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 RajanPGDMB!8

"n#titute for $inancial Mana%ement and Re#earc&

1



Acknowledgement

" would like to t&ank t&e entire #taff at '() *&ennai for %i+in% me an opportunit, to

undertake a project wit& t&em . #pecial mention to t&e entire $ord team/ m, project

%uide Mr i%ne#& Babu/ and mentor# Mr Don Bo#co/ Mr Morarji .nand and Mr#

ani ",er for #ol+in% our numerou# uerie# and patientl, eplainin% t&e entire

proce## of ad+erti#in%

.nd la#t but not t&e lea#t/ a +ote of t&ank# to m, coworker# *er,# .leamo/ and

)eert&a Samal

2



Executive Summary

$ord "ndia produce# t&e "kon/ $ie#ta/ $u#ion and 3ndea+our at it# plant near

Maraimalaina%ar/ near *&ennai )&e model $ie#ta &a# a +er, low petrol car

penetration in it# #e%ment/ in #pite of &a+in% a &i%&l, acclaimed Duratec en%ine/

reputed for it# #uperior refinement and performance "n "ndia 456 of #ale# &appen in

metro# and mini metro#/ w&ere market# like Del&i/ Mumbai and *&ennai account for

t&e &i%&e#t #ale#

)&u# t&i# project aim# to identif, ke, factor# t&at influence car bu,er# in *&ennai and

e#tabli#& t&e ba#i# of #e%mentation from t&e con#umer +iewpoint )&u#/ we plan to

identif, t&e operatin% #e%ment of $ord $ie#ta and &ence t&e tar%et %roup )&e

#econd part of t&e project undertake# market re#earc& from a #ample of t&e tar%et

%roup and %at&er t&e perception of $ord a%ain#t competitor# and model $ie#ta #

competitor car model# )&i# i# done to e#tabli#& if t&e perception a##ociated wit& t&e

brand and t&e #pecific model are #imilar and if not in+e#ti%ate t&e rea#on for

+ariation

$inall, we did a #e%ment communication anal,#i# ie #tud, all t&e

communication7pre## ad# onl, adopted b, $ord $ie#ta and competitor car# in t&e

period 2004-2008 and e#tabli#& an, #pecific pattern# #uc& a# relation# to ("9P"9S/

retail #ale# con+er#ion (e al#o in+e#ti%ated t&e communication pattern adopted at

t&e Point of Sale# 7P:S ie t&e #&owroom# and anal,;ed t&e #ame u#in% t&e ."D.

7.warene##/ "ntere#t/ De#ire/ .ction model of communication

<



Tale of !ontents

" :r%ani;ation Profile

"" Project Back%round

• :+er+iew of "ndian .utomobile "ndu#tr,

• $ord "ndia :peration#

""" =aunc& of $ord $ie#ta

" Definition of Project :bjecti+e#

"dentification of Met&odolo%,

" Se%mentation of *ar "ndu#tr, in "ndia

"" Se%ment *ommunication .nal,#i#

""" Sur+e, Re#pon#e#

"> Data .nal,#i#

> Dealer i#it# and :b#er+ation#

>" $inal .nal,#i# and Recommendation#

>"" .nneure

• Di#cu##ion Guide

"# Organization $rofile

!



JWT i# one of t&e world?# lar%e#t ad+erti#in% a%enc, network# "t i# one of t&e ke,

companie# of Sir Martin Sorrell?# (PP Group and i# &eaduartered in 9ew @ork

)&e compan, t&at wa# to become '() wa# ori%inall, founded b, (illiam 'ame#

*arlton in 184!"n 2005A t&e a%enc, wa# relaunc& b, droppin% t&e name J. Walter

Thompson in ec&an%e for JWT

'() i# reputed to be t&e fir#t toC

• in+ent cop, and la,out#

• build t&e fir#t full-#er+ice ad+erti#in% a%enc,

• pioneer ad career# for women

• produce t&e fir#t #pon#ored ) pro%ram

• de+elop account plannin%

• create t&e fir#t international network

*lient# of '() include SB*/ D)*/ $ord/ 'et Blue/ Eello%%/ 9e#tle/ S&ell/ Pfi;er/

Fnile+er/ odafone/ De Beer#/ (&ite *a#tle/ Safi .irwa,#/ Ro#&an and t&e Fnited

State# Marine *orp#

.n a%enc, not known for it# creati+e prowe## traditionall, &a# ne+ert&ele## brou%&t

&ome award# t&at &a+e &it&erto remained elu#i+e to "ndian ad+erti#in% $or in#tance/

)&e )ime# of "ndia# =ead "ndia campai%n b, '() ba%%ed +ariou# metal# includin%

a Grand Pri/ "nte%rated )itanium =ion/ and De#i%n Gold =ion at *anne# re#ultin% in

"ndia rankin% 9o 2 at *anne# '() "ndia acuired li+e acti+ation compan,3ncompa## and increa#ed %eo%rap&ical pre#ence t&rou%& a partner#&ip wit&

Mind#et in ,derabad and t&e, al#o &a+e a tie-up wit& .DE

)&e #peciali#t di+i#ion# H RMG *onnect and "P.9 continued to #&ow robu#t %rowt&

t&rou%& t&e ,ear/ t&e a%enc, won I4 new bu#ine##e# includin% &ea+, dut, .irtel

D)

"n term# of it# portfolio t&i# ,ear/ a%enc, launc&ed t&e .irtel D)/ )&e )ime# of "ndia

*&ennai/ )&e )ime# of "ndia# )eac& "ndia initiati+e and Pep#i*o# )ropicana)wi#ter "t rebranded Pi;;a ut and ba%%ed deep-pocketed client# like .irtel D)/

5



Birla Sun =ife "n#urance/ Birla Sun =ife Mutual $und# and Ein%fi#&er .irline# '()

"ndia i# one of t&e fa#te#t %rowin%/ and be#t performin% a%enc, office# in .#ia )&e

a%enc, &a# eceeded it# bu#ine## plan# and financial performance ,ear on ,ear

)&i# i# of particular importance %i+en '() "ndia# lar%e re+enue ba#e and e+en

more #i%nificant %i+en t&e current %lobal meltdown )&e '() "ndia client li#t i# a

+eritable J(&o# (&o of o+er 200 clientbrand relation#&ip# Mo#t of t&e#e are eit&er

9umber 1 or 2 in t&eir cate%orie# wit& a market #&are of o+er !06 "n t&e la#t ,ear

t&e a%enc, conducted almo#t 2/500 man da,# of #taff retention and trainin%

initiati+e# wit& pro%ram# t&at are uniue and di#tincti+e

""# %ackground of t&e $ro'ect ( Automoile "ndustry and Ford "ndia

)&e "ndian automobile indu#tr, at pre#ent &old# tent& po#ition in t&e entire world and

&a# #een a %rowt& rate of 186 per annum and an annual production of more t&an 2

million unit# Pa##en%er *ar# and Multi Purpo#e e&icle# %rew b, 1<16 and 54K6

re#pecti+el, in 200K o+er 2008owe+er/ #ale# of Ftilit, e&icle# fell b, 7-

IK!6Major pla,er# in t&e "ndian market include General motor#/ $ord "ndia/ Skoda

.uto/ *&e+rolet/ Maruti/ onda/ ,undai/ )ata and $iat

$ord# fir#t model . of $ord wa# fir#t #een on t&e "ndia road# in t&e ,ear 1K0I $ord

Motor *ompan, +entured in to t&e "ndian market in t&e ,ear 1K24 for t&e fir#t time

and operated independentl, a# a reputed car brand till t&e ,ear 1K5! "n t&e ,ear

1K55/ $ord joined &and# wit& Ma&indra and Ma&indra =imited $inall, in t&e ,ear

1KK8/ t&e $ord Motor *ompan, %ot a #take of K2186 in "ndia and +entured fort& a#

$ord "ndia =td $ord "ndia =td i# part of t&e $ord .#ia Pacific/ w&ic& i# a re%ional

operatin% unit of t&e $ord Motor *ompan,

$ord "ndia produce# +e&icle bodie# for four model# -- t&e #edan# $ie#ta/ $u#ion/ and

"kon/ and t&e 3ndea+our/ a mid-#i;ed SF 7:nl, t&e $u#ion i# al#o #old in t&e FS

$ord "ndia make# about 100/000 +e&icle# per ,ear at it# factor, in *&ennai/ in t&e

#tate of )amil 9adu/ and #ell# about 20/000 +e&icle# a mont& from 1<0 dealer#&ip#

acro## t&e countr, Be%innin% in 2010/ $ord "ndia can cea#e importin% en%ine# from

3urope w&en it open# it# own en%ine plant/ w&ic& i# part of a L500 million epan#ion

plan from parent compan, $ord .# a part of co#t cuttin% mea#ure# $ord &a#

4



re#orted to #ourcin% local part# and it i# e#timated t&at t&e local content in our "kon

and $ie#ta model# are K0 percent and 85 percent re#pecti+el,

owe+er de#pite cuttin% t&e co#t ba#e) $ord "ndia P+t =td wa# back in t&e red in

200I-08/ after po#tin% a profit t&e pre+iou# ,ear :t&er multinational car

manufacturer# H General Motor# "ndia P+t =td/ onda Siel *ar# "ndia =td/ )o,ota

Eirlo#kar Motor P+t =td and ,undai Motor "ndia =td H &a+e po#ted profit# for t&e

,ear/ accordin% to t&eir annual report#

"""# Ford Fiesta

$ord $ie#ta wa# launc&ed in 9o+ember 2005 and i# a #tron% pla,er in t&e Premium

B #e%ment/ competin% wit& brand# like onda *it,/ Maruti S>!/ and ,undai erna

and $iat =inea *urrentl, $ie#ta &old# clo#e to 86 market #&are in t&e #e%ment "t i#

a+ailable in t&e 14 liter petrol +er#ion and t&e 1! liter Die#el option# and come# in I

+ariant# 7< in die#el and ! in petrol and &a# a #ale# #plit of 816 Die#el car# and

1K6 petrol car# Fiesta is known for its very reliable Diesel car.

.utocar reported &i%&wa, efficiencie# of 144 kmpl in t&e onda *it, and 1!K kmpl

in t&e $ie#ta and for cit, condition# t&e onda *it, returned 10K kmpl and t&e $ie#ta

returned K4 kmpl )&u# t&e milea%e i# onl, +er, #li%&tl, more in t&e onda *it,

owe+er t&e $ie#ta &a# a muc& more powerful en%ine at 101 p# a%ain#t I8 on t&e

onda *it, and t&u# deli+er# far more dri+in% plea#ure )&e $ie#ta al#o &a# comfort

and con+enience feature# like leat&er #eat#/ 4 *D in da#& c&an%er/ ke,le## entr,/

foldable rear #eat#/ to name a few Safet, too i# better off wit& .BS and 3BD a# an

option and a ri%id pa##en%er cell protected in t&e front and rear b, crumple ;one#

and at t&e #ide b, impact beam#

)&u# de#pite #uperior feature#/ Ford Fiesta have a very low petrol car

penetration in the segment, in #pite of &a+in% a &i%&l, acclaimed Duratec en%ine/

for it# #uperior refinement and performance "n "ndia 456 of #ale# &appen in metro#

and mini metro#/ w&ere market# like Del&i/ Mumbai and *&ennai account for t&e

&i%&e#t #ale#

I



"*# O'ective of $ro'ect

• "dentif, ke, factor# t&at influence car bu,er# in *&ennai

• )o under#tand perception# of brand ima%e of $ord a%ain#t competitor# and

$ie#ta # competitor car#

• Fnder#tand dealer #ale# mana%er point of +iew o+er fie#ta and competitor

car#

*# +et&odology

• "dentif, t&e pre+alent brand# and car model# in "ndia and #e%ment t&em

"dentif, t&e operatin% #e%ment of $ord $ie#ta

• Primar, inter+iew# wit& a #ample of t&e identified #e%ment to %au%e t&e end

u#er perception of t&e brand#/ #pecific model#

• Dealer +i#it# and ob#er+e interaction# at P:S

• Se%ment communication anal,#i# of competitor car# and identif, trend# if an,

8



*"# Segmentation of t&e !ar "ndustry in "ndia

)&i# proce## be%an wit& a li#t of car model# in "ndia )&i# wa# t&en followed b, t&e

li#tin% of feature# of eac& modelC

• Price

• De#i%n - ),pe#

o ,atc&ackC $i+e door car $our acce## door# and &atc& %ate-full

&ei%&t door at rear to acce## car%o and lu%%a%e #pace Pa##en%er

capacit, !-5

o S-orts .tility *e&icle /S.*0C Suare cro##-#ection/ an en%ine

compartment/ a combined pa##en%er and car%o compartment/ and no

dedicated trunk Pa##en%er capacit, of 5-8 =oadin% capabilit, of a

pickup truck/ pa##en%er carr,in% capacit, of a +an and de#i%ned to run

in different terrain#

o +ulti .tility *e&icle /+.*0C Similar to a #edan &owe+er &a# lar%e

interior #pace on account of remo+able #eat# =ar%e #eatin% #pace7I-

10/ and bi% boot #pace

o Sedan1Saloon C $ourtwo7*oupe door car &a+in% a capacit, !-5 and a

#eparate lu%%a%e #pace

K



• 3n%ine capacit, and power - Performance

• ariant# H Petroldie#el

A# Segment AC

• PriceC 18-<lak&#

• atc&back car

• =ow en%ine capacit,

• Model#C Maruti 800/ 2ow 2ano

%# Segment %C

• PriceC <-5lak&#

• atc&back *ar#

• 3n%ine *apacit,C 1000 **/ .+era%e power 40 b&p

• Model#C .lto/ "ndica/ Santro/ Mati;/ (a%onr/ Swift/ en Palio/ .-#tar/ i10

!# Segment %3C

• PriceC 5-10 lak&#

• 3n%ine *apacit,C 1400 cc )&e power ratin% +arie# from a K0b&p -100

• Hatchback, Sedans and SUV

• )&e #eatin% capacit, i# %reater t&an t&at of t&e Se%ment B and t&e, ma, be

cate%ori;ed a# mid #i;ed car#

• Model#C 3#teem/ "ndi%o/ .ccent/ $ie#ta/ $u#ion/ Sail/ S>!/ =o%an/ "kon/

$abia/ D;ire/ F-./ Sail

Safari/ Sierra/ Scorpio

4# Segment !C

10



• PriceC 10-1!lak&#

• =uur, Sedan# and SF#C include# air ba%#/ anti lock brake#

• 9ot a %reat c&an%e in t&e en%ine capacit,

• Model#C =ancer/ 3lantra/ :cta+ia/ *orolla

)a+era/ Scorpio/ Nuali#/ Safari 7delue +ariant#

E# Segment !43

• Premium luur, #edan and SF

• Price C 1! lak&# O

• )&e primar, difference &ere and between t&e * #e%ment# i# more on t&e

capacit, and power of t&e car

• 3ternall, t&e len%t& of t&e car# in t&e *DO #e%ment i# %reater t&an *

#e%ment

• owe+er t&ere i# not a &i%& increa#e in t&e wei%&t of t&e car

• 3n%ine capacit, 2<50 PowerC 140b&p

• Model#C Sonata/ / )eana/ .ccord

Mondeo/ 3ndea+our/ )uc#on/ Prado

F# $remium !ars:

• )&i# cater# to t&e reuirement# of luur, and performance )&e car# in t&i#

#e%ment &a+e &i%& power ratin%#/ at t&e #ame time incorporate abo+e

mentioned luur, feature#

• PriceC (ide +ariation - no local manufacturin%

• ere t&e model# compri#e of #edan# and *oupe#

• )&e de#i%nin% focu# on *oupe# i# lo%ical a# wit& t&e decrea#e in number of

door# t&e performance ma, be en&anced wit&out au%mentin% t&e en%ine

capacit, 3n%ine *apacit, <000**/ Power 250b&p

4iscoveries

11



• "ncrea#e in t&e de#i%n +ariet, from t&e low7 1 +ariant/ &atc&back to t&e mid

price #e%ment7 #edan/ &atc&back and SF

• =e## model#+ariet, of SF in t&e 5-10 lak&# #e%ment

• .ll tran#ition# into t&e &i%& priced #e%ment %o for a #edan model t&an a

&atc&back )&u# t&e #edan de#i%n t,pe i# a##ociated wit& luur,

• (&en mo+in% from t&e B #e%ment BO * #e%ment /t&e price in ca#e of

,undai +ariant# almo#t double# from t&e BO 75lak& to t&e * 710 =ak&#

#e%ment

• .ntilock breakin% and airba%#/ *D pla,er i# not pre#ent in man, of t&e BO

#edan#

)&u# t&e ba#i# of #e%mentation i# on price from t&e con#umer +iewpoint owe+er

de#i%n pla,er# an important role in t&e &i%& price #e%ment# and performance in t&e

luur, price #e%ment )&e abo+e +ariation in #e%ment be&a+ior ma, be eplained on

t&e ba#i# of Ma#low )&eor, of need#

.# t&e abo+e dia%ram portra,#/ t&ere are different le+el# of car purc&a#er# w&ic&

+ar, wit& t&e intention for purc&a#e )&e t&ree factor# namel, price/ performance

and de#i%n pla, a role in t&e purc&a#e deci#ion of e+er, car intender owe+er t&e

priorit, le+el #&ift# wit& t&e ri#e to t&e top of t&e p,ramid

12



For a car intender at t&e ottom of t&e $yramid) &e i# lookin% for a #mall car and

&i# bud%et i# a con#traint )&u# &e would probabl, con#ider t&e &atc&back# in t&e

#ub b #e%ment or ma,be e+en t&e a #e%ment w&ic& deli+er +alue for mone, in term#

of co#t of owner#&ip a# t&e car# are %enerall, low maintenance and offer %ood

milea%e "f &e i# able to purc&a#e a #edan wit&in t&e #ame price ran%e w&ic& al#o

pro+ide# &im wit& %ood milea%e/ &e would probabl, %o for t&e #edan a# it will %i+e

&im more #tatu# w&ic&/ e+er, man i# concerned wit&

As we move to t&e second level/ t&e intender &a# t&e mone, but ma, #till decide

to purc&a#e a &atc&back 7if &e find# t&i# more con+enient or a #edan Price doe# not

pa, #o muc& of a role &ere a# &e &a# t&e mone, but &e con#ider# t&e u#a%e of t&e

car w&ile &e decide# t&e con#ideration #et and dependin% on t&at pick# out a car t&at

i# be#t #uited to &im

At t&e very to- of t&e $yramid is $erformance and status w&ic& is all im-ortant

to t&e man on to- as &e feels &e is t&e est and deserves somet&ing s-ecial

Price pla,# a minor role &ere a# &e can afford t&e +er, be#t and &e mi%&t pla,

around wit& model t,pe dependin% on &ow &e want# to portra, &im#elf .n

ad+enturou# #port, per#on mi%&t opt for an SF or #omeone lookin% for t&e

luuriou# feel would opt for t&e #edan model

$inall, from t&e indu#tr, +iewpoint t&e #e%mentation of car# i# done on t&e ba#i# of

len%t& of t&e automobile Fp to a certain len%t& of t&e car/ it i# cla##ified a# a #mall

car and i# eli%ible for benefit# Ths Tata !ndigo despite being a sedan in the "#$%

lakhs segments is eligible for ta& advantages as according to the length is

classified as a small car.

1<



Segmentation of t&e !ar "ndustry

1!

1-< lak&#

<-5 lak&#

5-10 lak&#

10-1! lak&#

1! O lak&#



*""# Segment !ommunication Analysis

$ord model $ie#ta fall# into t&e 5-10 lak&# #e%ment "n t&i# #e%ment t&e clo#e#t

competitor# for $ie#ta are t&e onda *it,/ Maruti S>!/ ,undai erna ba#ed on

t&e price )&e leader amon% t&e#e in term# of #ale# i# t&e *it, followed b, erna

and finall, $ie#ta

)o determine t&e po##ible rea#on# for low #ale# of $ie#ta and t&e con#umer

perception we anal,;ed t&e communication pattern# for eac& of t&e +ariant for

t&e period 2004-200KMont&wi#e data re%ardin% t&e #ale# of eac& +ariant wa#

a+ailable wit& u# (e t&en in+e#ti%ated t&e entire pattern of communication a#

followed b, t&e#e model#

)&e communication t,pe i# broadl, cla##ified a#C

• AT5 /Aove t&e 5ine0C )&e#e include print/ di%ital 7mobile Q internet/

billboard#/ )* and radio

• %T5 /%elow t&e line0C )&e#e t,pe# are communication aimed at t&e point

of #ale# of t&e product near t&e con#umer touc& point# ,ere w&ile

designing t&e communication it is assumed t&at t&e consumer is

-ast t&e affective and cognitive stage and into t&e e&avioral stage

We investigated t&e -ress advertisements as t&e -ercentage of -o-ulation

viz uran and rural was t&e same #Again we limited t&e analysis to t&e

metros and did not consider t&e regional advertisements as t&e

corres-onding sales was marginal#

)&e pre## ad+erti#ement# were cate%ori;ed into twoC

15



• *ariale marketing /*+0C )&i# included financin%/ maintenance/

ec&an%e and ot&er offer# #uc& a# free acce##orie#

•

%randC .b#ence of an, of t&e abo+e mentioned offer# and onl, t&eme##a%e con+e,ed b, t&e brand

Oservations

A# 6ear ( 7889

•

)&e ,ear 2004 #aw t&e cit, model relea#in% onl, +alue marketin%ad+erti#ement# no ad+erti#ement# b, an, ot&er model

• )&e later uarter erna relea#ed onl, brand ad+erti#ement# - launc& p&a#e

• 'an 04- Mar 04 onl, M for $ord $ie#ta/ .pril 04-9o+ 04 onl, Brand7 Ee,

competitor action bein% launc& of erna in Sep 04 and cit, anni+er#ar, edition

from Sep 04 H 9o+ 04

%# 6ear ( 788

• @ear 200I *it, continued wit& M communication but decrea#ed t&e

freuenc, and finall, relea#ed no ad+erti#ement# in t&e mont&# of Marc& Q

.pril 0I*orre#pondi%l, erna branc&ed off into M ad+erti#ement# and

durin% Marc& Q .pril 0I relea#ed onl, brand ad+erti#ement#

• $rom Ma, 0I H .u% 0I/ *it, relea#ed M and brand ba#ed ad+erti#ement#

but erna limited communication onl, to brand ad+erti#ement#• )&e la#t uarter of 200I *it, / erna focu#ed on M communication but

freuenc, decrea#ed

• "n 200I S>! relea#e onl, brand ad# in t&e #econd uarter 7launc& time/ .pril

0I/ no ad+erti#ement# in t&e t&ird uarter and M ad+erti#ement# from t&e

Dec 0I

• $ord $ie#ta onl, brand ad# from 'an 0I H .pril 0I/ Ma, 0I-jul, 0I M / .u%

0I H :ct 0I a%ain brand

14



!# 6ear 788;

• onda *it, continue# it# emp&a#i# on alue ad#/ t&e mont&# of $eb/

Marc& and .pril #a, relea#e of brand ad+erti#ement# )&e #ame period#aw corre#pondin% action b, S>! and erna but freuenc, of

.d+erti#ement# wa# %reater in ca#e of *it,

• erna *ommunication pattern i# #imilar to *it, &owe+er no ad# from .u%

-08 to Dec -08

• S>! &ea+, emp&a#i# on brand ba#ed ad+erti#ement/ brand

ad+erti#ement# onl, durin% 'an H .pril 08

!ommunication $attern 7889

1I

Communication Pattern

1 2 1

20

15

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Feb-

06

Mar-

06

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06

May-

06

Jun-

06

Jul-06 Aug-

06

Sep-

06

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06

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06

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06

Months

City !M



Honda City - Value Vs Brand Ads

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Hyundai Verna - Value Vs Brand

2

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!ommunication $atterns < 788

18



!ommunication $attern < 788;

Hyundai Verna - Value Vs Brand

"2

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SX4 - Value Vs Brand

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Honda City - Value Vs Brand

" "

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5

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1K



4iscoveries

Trends oserved for !ity) *erna and S=>

• )&e launc& p&a#e focu#e# eclu#i+el, on brand ad+erti#ement# to increa#e

awarene## 7."D.

• )&e#e continue for one uarter and t&en M ad+erti#ement# take o+er

• owe+er t&e competitor action focu#e# on brand ad+erti#ement# in t&i#

uarter/ probabl, to increa#e awarene## of t&e percei+ed #uperiorit, of t&eir

product• $reuenc, of M ad+erti#ement eceed# brand ad+erti#ement# at an, time

• Maimum number of M communication in 'une / 'ul, mont&#

• .mon% t&e #e%ment - =ow "ntere#t=ow intere#t/ =o,alt, Bonu# Q .cce##orie#

dominate t&e M# offered in t&e la#t ,ear#

• *on#i#tent M# pro+ided b, onda *it, include# - =ow "ntere#t Q =ow Down

pa,ment

• ,undai erna &ad con#i#tentl, offered =o,alt, Bonu# Q +ariable ca#&

di#count#

• S>! &a# been con#i#tentl, offerin% R#10/000 =o,alt, bonu# Q t&ere &a# al#o

been ca#& di#count# up to R#25/000

Trends for Ford Fiesta

• $ie#ta did not &a+e an, con#i#tent :ffer - t&e offer keep# c&an%in% e+er,

mont&

• Maimum number of brand communication rat&er t&an M

• December08 Price off ad deli+ered t&e &i%&e#t P&one "9S in t&e brand?#

&i#tor,/ w&ile (inPin to retail con+er#ion #tand# at onl, K6 for $ord $ie#ta

• The press advertisements taken into accont comprised only of '%( of

the total advertisements)

20



A"4A +odel of !ommunication

*"""# Survey ?es-onses

. #ur+e, re%ardin% t&e perception of car# in t&e $ie#ta #e%ment wa# undertaken to

determine t&e con#umer perception of t&e communication pattern# adopted )&e

met&odolo%, of t&e #ur+e, wa#C

• :b#er+e interaction# at $ord and competitor car #&owroom# to determine t&e

efficac, of B)= ad+erti#in% and determine t&e dealer pitc&

"nterviews wit& car owners

A# Target @rou-

*rospective car byers in the age grop of +% to '% who are considering the

following set of cars S-', Fiesta, inea, /ity, Verna.

%# Sam-le

• )&e #tud, compri#ed of bot& telep&onic inter+iew# a# well a# an online

ue#tionnaire

21

Attention

Action

De(ire

)ntere(t

Cognitive

%e*avior

A++ective



• Due to lack of re#pon#e# to t&e telep&onic inter+iew/ muc& of t&e #tud, re#ult

i# ba#ed on t&e re#pon#e# to t&e online ue#tionnaire

• )&e online ue#tionnaire wa# limited to contact# t&at were per#onall, known

and #ome contact# pro+ided b, t&e compan, )&i# wa# done to en#ure t&at

t&e #tud, wa# kept di#creet

• De to all the restrictions and difficlty obtaining interviews, the final

sample si0e was limited to thirty.

)&e u#er #ur+e, focu#ed onC

• "dentif,in% t&e parameter u#er# de#ire in a car/ t&e re#pondent#

were c&o#en #o t&at t&e $ie#ta #e%ment i# adeuatel, repre#ented

)&e#e parameter# were a##i%ned #core# on a #cale of 1-5

• )&e perception of t&e u#er# re%ardin% petrol and die#el powered

+e&icle# )&i# data coupled wit& t&eir current car t,pe and t&e

ratin%# a##i%ned to car feature# can be utili;ed t&e fa+orable and

unfa+orable parameter# wit& eac& fuel t,pe

• Ratin% t&e brand and t&e model# on a #cale of 1-5)&i# data could

be u#ed to determine t&e fa+orable a#pect# of t&e brand and t&e

model per #e and determine pattern# if an,

)&e abo+e input# coupled wit& $ord# communication pattern and competitor

communication pattern to identif, t&e perception of $ord $ie#ta

"=# 4ata Analysis

A# Feature ?atings

Defined a# t&e followin%C

22



• Price

• PerformanceC ow t&e car dri+e#/ run# or in %eneral perform#/ meant to be

an indicator of power

• Brand 9ame

• $uel 3fficienc,

• Safet,

• Maintenance 3a#eReliabilit,C $reuenc, of breakdown# or nece##it, of

repair#

• =uuriou# "nterior#Silence in *ar *omfortRefinementC .ll #&ow #imilar

re#pon#e#

• Performance rank# t&e &i%&e#t a# t&e feature de#irable in a car/ followed

b, maintenance ea#e and reliability

• However the rating given to power does not vary widely from

performance

%# %rand ?atings

4efined as:

• Spare part# a+ailabilit,

• .fter Sale# #er+ice

• Maintenance co#t

• Milea%e

2<



Brand Ratings

For& ,on&a ,yun&ai Maruti

Spare -art( Availability

A+ter (ale( (ervice

Mileage

Maintenance co(t

• Maruti #core# t&e &i%&e#t on maintenance ea#e/ #pare part# a+ailabilit,

and after #ale# #er+ice followed b, ,undai and onda $ord rank# t&e

lea#t on t&e#e parameter#

• Maruti i# a%ain t&e &i%&e#t on milea%e feature but t&e difference i# +er,

le## amon% onda and ,undai $ord a%ain rank# t&e lea#t

!# +odel ?atings

4efined as:

• St,li#&ne##C )&e > factor a##ociated wit& t&e model

• $uel 3fficienc,

• Reliabilit,C )&e con#i#tenc, in performance

• PerformanceC )&e power deli+ered w&ile dri+in%

• *omfort

2!



Model Ratings

City Fie(ta .inea S/4 !erna

Styli(*ne((

Fuel e++iciency

0eliabilty

-er+or1ance

Co1+ort

• *it, lead# in #t,li#&ne## followed b, =inea and S>!erna and $ie#ta

Rank# t&e #ame

• *it, lead# in fuel efficienc,/ S>! and =inea rank# t&e #ame and $ie#ta and

erna rank t&e lea#t

• /ity leads in reliability and S-', inea and Fiesta rank the same

• *it, lead# in performance parameter followed b, $ie#ta

• *it, a%ain lead# in comfort followed b, S>!/ =inea and $ie#ta

4iscoveries

• .ll t&e re#pondent# own a petrol powered +e&icle

• Maintenance co#t and price i# percei+ed to be +ar, widel, 7506 appro

between petrol and die#el +ariant#/ &owever -erformance is not -erceivedto c&ange

• Reliabilit, i# percei+ed to be #imilar amon% petrol and die#el +ariant#

• Ser+ice ualit, and a+ailabilit, of #er+ice center# are percei+ed a# t&e mo#t

de#irable feature# wit& t&e purc&a#e of a car 3tendedfree warrant, feature#

rank low on de#irabilit, #cale#

• D"@ kit# and cu#tomi;ed maintenance plan# rank #econd on de#irabilit,

feature#

25



T&us a -etrol car is -erceived to offer a low1&ig& maintenance cost and among

rands Ford ranks least on t&e features of s-are -arts availaility)

maintenance cost after sales service and mileage# ,owever t&e &ig&est rating

among t&ese is for s-are -arts availaility#

Finally Fiesta model ranks &ig& on reliaility score w&ic& -rovides a good

o--ortunity#

=# 4ealer "nteractions

.t all dealer# we went in a# po##ible bu,er# )&e followin% were taken into

con#iderationC

• *ommunication at t&e P:S7 in term# of u#e of po#ter#/ dan%ler# etc

• Dealer pitc&C e+aluated on ba#i# of information of pre#ent car and t&e

competitor car#/ manner of pre#entation

1e evalated the dealer pitch according to the 2!D2 model.

A# 4S! ,yundai

$OS !ommunication

• )&ere wa# a c&an%e in erna model )&e car i# now a+ailable in onl, #i

colour#/ &owe+er t&e broc&ure #till di#pla,# all t&e pre+iou# colour# a# t&e

new broc&ure i# not a+ailable

• )&e erna i# on di#pla, in t&e #&owroom

• )ec& Spec Stand

• Standee#

4ealer $itc&

• )&e car offer# 11 to 12 milea%e wit& t&e .* in cit, dri+in% condition#

24



• "t &a# a clutc& lock w&ic& no ot&er car in t&e #erie# &a# )&i# en#ure# t&at

w&en #tartin% t&e car t&e clutc& doe# not &a+e to be pre##ed +er, &ard and

t&u# t&e clutc& plate will not wear out a# uickl, a# in ot&er car#

• Eenwood mu#ic #,#tem i# included wit&in t&e price of t&e model#

• )&e )) en%ine offer# t&e be#t pickup in t&e cla##

• onda *it, &a# t&e fuel tank in front of t&e dri+er #eat )wo car# were burnt

becau#e of t&i# in Mumbai

• Die#el car# are #ellin% +er, well a# compared to t&e petrol #ale#

• :+erall #ale# are about 20 per mont&

%# +aruti 4ealers /A%T0

$OS !ommunication

• *olour c&ip Stand

• )ec& Spec de#k top di#pla, 7 S>! +# onda *it,

• *ar on di#pla,

• Broc&ure#

• Po#ter# 7 Men are Back

4ealer $itc&• e #tre##ed on t&e reliabilit, of Maruti

• $or t&e fir#t t&ree time# wit&in t&e period of a ,r/ t&e #er+icin% i# free

• )&e Ser+ice centre ju#t net to t&e outlet and #o it i# +er, con+enient for t&e

cu#tomer to %et &i# car #er+iced

• Spare# are +er, ea#il, a+ailable a# Maruti certified #pare# can be bou%&t

an,w&ere

2I



• .dmitted t&at t&e car i# low on milea%e a# compared to t&e $ie#ta

• Sale# a+era%e about <0 per mont&

!# Fiat S&owroom /Tafe0

$OS !ommunication

• )o, =inea in #&owca#e

• =inea on di#pla,

• Po#ter#

4ealer $itc&

• Blue and meC )&i# i# a blue toot& #er+ice w&ic& allow# ,ou to recei+e call#

wit&out pickin% up ,our &and#et

• )&e *ar i# t&e mo#t #t,li#& one wit&in t&e #et

• Eenwood #,#tem i# included for no etra co#t in t&e &i%&er end model#

• *limate control

• Sale# are <0 per mont&

• Price inclu#i+e of leat&er interior#

4# Sundaram ,onda

$OS !ommunication

• )&e new onda cit, on di#pla,

• Po#ter# Q Standee#

4ealer $itc&

• .n increa#e in t&e power from 100 b&p to 114 b&p

28



• *ome# wit& a 15 liter# en%ine

• =eat&er interior# a+ailable in ba#e model

• Pro+i#ion of i-pod compatible acce##orie#

E# +$5 Ford

$OS !ommunication

• J9ew ford fie#ta- #t,led to perform po#ter

• Same po#ter on &elp de#k

• J$all in Dura lo+e H ford fie#ta po#ter

• 14# color c&ip di#pla,

• .cce##orie# di#pla, and po#ter

• )ec& #pec #tand

4ealer $itc&

• Succe##ful in petrol and die#el +er#ion#

• Pro+ide# ;ip and dri+e plea#ure wit& #port, look#

• onda *it,C Better power to wei%&t ratio in term# of &andlin% )&e earlier cit,

wa# a bi%%er &it "n t&e new +er#ion/ wei%&t of t&e car &a# been decrea#ed in

order to increa#e milea%e

• Maruti S>!C #ucce##ful wit& #mall car#/ &ea+ier t&an fie#ta/ and limited

+i#ibilit,

• ernaC :nl, petrol +ariant i# offerin% %ood $M/ u#er confidence on account

of lar%e number of car# #een on t&e road

="# Analysis and ?ecommendations

2K



.# #een abo+e t&e tar%et %roup &a# low price #en#iti+it, but &i%& preference for

de#i%n# Since a majorit, of car# in t&e %i+en #e%ment# are #edan de#i%n# an

opportunit, would ei#t in de#i%nin% eit&er a &atc&back 7onl, =inea or an SF

Secondl, t&e communication pattern followed b, $ord $ie#ta doe# not #&ow an,

%i+en #tructure a# oppo#ed to ot&er model# #uc& a# *it,/ erna and S>!$ie#ta

communication #&ow# a &i%& emp&a#i# on brand ba#ed communication# This in

trn has lead to increased awareness of Ford Fiesta per se compared to other

models as indicated by the corresponding 1in*in owe+er t&e retail con+er#ion

#core# are t&e lea#t t&i# ma, be due to mi#matc& between #ub#euent

communication#

• )&e ma## le+el H =ow freuenc, of M combined wit& improper timin%

• "nabilit, to %enerate intere#t at t&e corre#pondin% P:S location#7 Dealer

Pitc&

)&e P:S communication i# #imilar in all t&e outlet# in term# of t&e acce##orie# u#ed

+i; prop#/ #tandee#/ )ec& #pec #tand owe+er t&e dealer# pitc& #&ow# differenceC

• ,ondaC 3mp&a#i# on power and dri+abilit, .dditionall, t&ere i# al#o

emp&a#i# on #pecial feature# #uc& a# iPod compatibilit,

• ,yundai C 3mp&a#i# on #ucce## in petrol and die#el +ariant#/ #pecial feature#

of in built mu#ic #,#tem and clutc& lock facilitie#

• S=> C 3mp&a#i# on maintenance ea#e and free #er+ice feature#

• FordC 3mp&a#i# onl, on dri+in% plea#ure and #port, look# Sch

commnication may not generate interest as it is not differentiable from

other cars in this category.

.# #een wit& ot&er model of car# in t&i# #e%ment/ t&e commonalit, in all t&e dealer

pitc& i# power and performance owe+er in addition to t&i# t&e, al#o adopt #ome

ot&er c&aracteri#tic# to %enerate u#er intere#t and ma, propel &im to t&e net #ta%e

of de#ire and #ub#euent action

<0



owe+er t&e compari#on between #imilar model# in t&i# #e%ment wa# adopted w&ic&

ma, %enerate intere#t .# indicated b, t&e #ur+e,/ reliabilit, i# t&e mo#t preferred

c&aracteri#tic in a car and t&e under#tandabl, D"@ kit# and maintenance ea#e rank

a# mo#t de#irable po#t purc&a#e feature# )&u# t&e pitc& ma, emp&a#i# on t&e

reliabilit, a#pect of $ie#ta/ al#o allow potential cu#tomer# to de#i%n t&eir own

maintenance #c&edule#

=""# Annexure

A# 4iscussion @uide

1 9ameC

2 .%eC< :ccupationC

! "ntere#t# &obbie#C

5 =i#t t&e brand of car# ,ou are aware of

4 (&ic& car do ,ou currentl, own Petrol or Die#el

I (&en did ,ou bu, t&e car# (&at were t&e #pecific rea#on# to c&oo#e t&at car

8 (&ere did ,ou fir#t &ear about ,our current car

9ew#paper 7Specif,/ .uto ma%a;ine 7#pecif,/ Promotional e+ent/ ) *ommercial/

$riend or collea%ue

K (&o primaril, influenced ,ou to c&oo#e t&e #pecific car

$riendcollea%ue 7(&at car &e own#/ Sale# per#onnel/ $amil, preference

7Relation#&ip/ Self/ Media 7.rticle# in "nternet ) Paper/ ot&er# 7#pecif,

<1



10 ow #ati#fied are ,ou wit& ,our current car

3tremel, #ati#fied/ Sati#fied/ 9eutral/ Di##ati#fied/ er, di##ati#fied

Specific rea#on# for preference if an,

11 ow often do ,ou u#e ,our car

Dail, commute/ (eekend trip# $amil, trip#/ Bu#ine## trip#

12 (&at i# ,our perception about Petrol car# and Die#el car#

1< (&at are t&e parameter# ,ou would a##ociate a# important in a car 7Rate on a

#cale of 1-5/ 1 bein% lea#t preferred and 5 bein% &i%&l, preferred

=ea#t

Preferred

i%&l,

Preferred

1 2 < ! 5

Price

PerformancePower

Brand nameBad%e

$uel efficienc,

Safet,

"ma%e

Maintenance ea#e

Reliabilit,*on#i#tent

performance

)runk Space

<2



=uuriou# "nterior#

Silence in#ide t&e car

*omfort

Refinement

Special

feature#7 #pecif,

1! Plea#e rank t&e e##ential #upport reuired wit& t&e purc&a#e of a car 7on a #cale

of 1-5/ 1 bein% lea#t de#irable and 5 bein% t&e mo#t de#irable

=ea#t

De#irable

Mo#t

De#irable=ar%e number of

#er+ice center#(arrant,Guarantee$r

ee #er+ice

D"@ kit#

*u#tomi;edMaintenance plan#

15 (&en do ,ou intend purc&a#in% ,our net car

(it&in 2 mont&#

2 H 4 mont&#

4mont&# H 12 mont&#

.fter a ,ear

:t&er# 7#pecif,

14 (&at brand will it be (&,

<<



1I $uel t,pe

Petrol

Die#el

18 Eindl, rank t&e followin% wrt to #imilarit, between Petrol and Die#el car# 71

bein% &i%&l, #imilar and 5 bein% di##imilar

Purc&a#

e Price

Maintenance

*o#t Milea%e Performance Reliabilit,

Purc&a#e PriceMaintenance

*o#t

Milea%e

Performance

Reliabilit,

1K Eindl, rate t&e followin% brand# on a #cale of 1-5/ 1 bein% lea#tpoor ratin% and 5

bein% ecellent on t&at parameter

20 Eindl, rate t&e followin% brand# on a #cale of 1-5/ 1 bein% lea#tpoor ratin% and 5

bein% ecellent on t&at parameter

Brand Spare part#

a+ailabilit,

.fter #ale#

#er+ice#

Milea%e Maintenance

co#t

$ord

Maruti,undai

onda

<!



St,li#& $uel

efficienc

,

Safet

,

Reliabilit, Performanc

e

*omfor

t

Statu#

S,mbol

onda *it,

,undai

erna

Maruti S>!

$iat =inea

$ord $ie#ta

21 (&at i# ,our perception on $ord $ie#ta

22 (&at are t&e fuel option# a+ailable in $ord $ie#ta 7Fnaided

2< (&at i# t&e price ran%e of $ord $ie#ta

2! ow do ,ou rate $ord $ie#ta a%ain#t t&e#e brand#

onda *it, ,undai erna

Maruti

S>! $iat =ineaSuperior

3ui+alent

"nferior

Rea#on#

25 (&at will make ,ou con#ider bu,in% a $ord $ie#ta Petrol

<5

Final Project Report - Ford Motors and JWT

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Transcript of Final Project Report - Ford Motors and JWT