ford escape
DESCRIPTION
Ford Escape. Raquel Silva, Ryan Johnson, Casey Moroney , Yuanyuan Sun. Introduction. Car Research Customers’ perceptions & attitudes Features customers most value Figure out new car development. Data Collecting. Perceptual Mapping Survey Conjoint Analysis Survey. - PowerPoint PPT PresentationTRANSCRIPT
Ford Escape
Raquel Silva, Ryan Johnson, Casey Moroney, Yuanyuan Sun
Introduction
Car Research
• Customers’ perceptions & attitudes
• Features customers most value
• Figure out new car development
Data Collecting
• Perceptual Mapping Survey
• Conjoint Analysis Survey
internet television billboards newspaper other none0
5
10
15
20
25
30
35
26
31
7
13
0
Information Type
# of People
How do you find information?Consider television and internet advertisements to reach this market.
51%
36%
7%7%
20mph30mph40mph50mphFaster than 50mph
How fast do you drive?Speed and acceleration may not be the most important feature to college student drivers
How many people do you drive with?Smaller cars may be ideal for this market segment
60%
31%
9%
0 to 1 2 to 34 to 56 or more
How many miles a day do you drive?MPG may not be the most important feature since most students drive 11-20 miles per day
22%
40%
20%
18%
0 to 1011 to 2021 to 3031 to 4041 to 5051 or more
7%
20%
24%
49%
1-2 years3-4 years5-6 years7-8 years9 years or more
How long do you plan to keep your car?Durability and quality of the car is an important feature to our market segment. About half of the group plans to keep their car over 9 years
64%
36%male female
42%
58%chicagosuburbs
City or suburbs?Gender?
We may consider advertising to male commuter students.
Year in college?
7%
22%
71%
freshman
sophomore
junior
senior
62%
31%
7%
1 to 23 to 4more than 4
Gas fill ups per month?
We should consider advertising to juniors and seniors in college. Although students drive about 11-20 miles per day, gas fill ups are frequent. We may try to keep MPG in mind to keep gas fill ups at a minimum.
64%
36%
yesno
Employed?
31%
69%
yes no
In a relationship?
Because our market segment is mostly employed and not in a relationship we can consider advertisements portraying the same type of customer.
Perceptual MapsOur perceptual maps will show how Ford Escape is perceived by customers.
Perceptual Maps Attributes• Family Car• Durability• Good MPG• Reliability• Safety• Flashy• Style• Safe• USA-made• SUV • Poor Value
Brands
Total Variance Explained•Our TVE is 66%•This means we captured 66% of the
market •Industry standard for this statistical test
is 60%
Grand Map
Axis Names
Brand Preference
Clusters
Spaces & Gaps
Reposition
To Summarize…
Conjoint Analysis•In the consumer’s mind, the Ford Escape:
▫Is of poor value▫Is cramped▫Has a poor image
Features•Space•Noise•Prestige•Image•MPG•Quality•Car type
Spac
ious
Crowde
dLo
ud
Subd
ued
Flashy
Cheap
Spor
ty
Family
Car
Less
than
20 m
pg
Greate
r tha
n 23
Poor
Qua
lity
Runs F
orev
er
2-doo
rSU
V
Inter
cept
0.00
0.20
0.40
0.60
0.80
1.00
1.20
.31.33.22
.29.20.22
.44.46
.22 .26.31.22 .25
.34.22
.05
.28.22
.00.08
.22
1.00Perceived Value
Statistical Quality•Data captured from 30 surveys, with an
adjusted R squared above 30%•Regression analysis turned up a
significance F of 0.02%, which shows that these results are not due to luck
Best CarComfortable 0.33Loud 0.29Luxury 0.46Rugged 0.3121-24 MPG 0.34Reliable 0.28SUV 0.22Total 2.23
Worst CarCrowded 0.22Quiet 0.2Cheap 0.22Family 0.22Greater than 24 mpg 0.22Poor Quality 0.052-door 0Total 1.13
Intercept•The intercept suggests a market entry
barrier▫A product’s parts must add up to at LEAST
the level of the intercept in order to be considered by the target market
▫A high intercept suggests a mature market
Sound; 0.08
Image; 0.08
Space; 0.10
MPG; 0.11
Type; 0.20
Quality; 0.21
Prestige; 0.22
Feature Importance
Product Comparison• Ford Escape• Crowded 0.22• Subdued 0.22• Cheap 0.22• Family 0.22• <20 MPG 0.25• Poor Quality
0.05• SUV 0.22
• TPU 1.40
• Honda Accord• Comfortable
0.33• Subdued 0.22• Luxury 0.46• Family 0.22• >24 MPG 0.22• Reliable 0.28• Sedan 0.08
• TPU 1.81
• Camaro• Comfortable
0.33• Loud 0.29• Flashy 0.44• Sporty 0.26• <20 MPG 0.25• Reliable 0.28• 2 door 0
• TPU 1.85
• BMW• Comfortable
0.33• Subdued 0.22• Flashy 0.44• Rugged 0.31• 21-24 MPG 0.34• Reliable 0.28• Sedan 0.08
• TPU 2.0
Current Market Share
Ford Escape; 0.1695705978894
17
Honda Accord; 0.2555119927319
93Camaro, 0.26593963497082
5
BMW; 0.3089777744077
65
Market Share
Market Share Calculations• Excape:
▫ =exp(1.4)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)]▫ =17%
• Accord:▫ exp(1.81)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)]▫ =25.6%
• Camaro:▫ exp(1.85)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)]▫ =26.6%
• BMW:▫ exp(2)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)]▫ =30.9
Market Simulation• Ford Escape• Crowded 0.22• Subdued 0.22• Luxury 0.46• Family 0.22• <20 MPG 0.25• Poor Quality
0.05• SUV 0.22
• TPU 1.64
• Honda Accord• Comfortable
0.33• Subdued 0.22• Luxury 0.46• Family 0.22• >24 MPG 0.22• Reliable 0.28• Sedan 0.08
• TPU 1.81
• Camaro• Comfortable
0.33• Loud 0.29• Flashy 0.44• Sporty 0.26• <20 MPG 0.25• Reliable 0.28• 2 door 0
• TPU 1.85
• BMW• Comfortable
0.33• Subdued 0.22• Flashy 0.44• Rugged 0.31• 21-24 MPG 0.34• Reliable 0.28• Sedan 0.08
• TPU 2.0
Market Simulation-Escape Prestige marketed as “luxury
Ford Escape, 0.20608731113
1072
Honda Accord; 0.24794520547
9452Camaro,
0.253424657534247
BMW; 0.27397260273
9726
After Initial Marketing
Up 3.6%
Market Share Calculations• Excape:
▫ =exp(1.64)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)]▫ =20.6%
• Accord:▫ exp(1.81)/[exp(1.64)+exp(1.81)+exp(1.85)+exp(2)]▫ =24.8%
• Camaro:▫ exp(1.85)/[exp(1.64)+exp(1.81)+exp(1.85)+exp(2)]▫ =25.3%
• BMW:▫ exp(2)/[exp(1.64)+exp(1.81)+exp(1.85)+exp(2)]▫ =27.4
Market Reaction• Ford Escape• Crowded 0.22• Subdued 0.22• Luxury 0.46• Family 0.22• <20 MPG 0.25• Poor Quality
0.05• SUV 0.22
• TPU 1.64
• Honda Accord• Comfortable
0.33• Subdued 0.22• Luxury 0.46• Family 0.22• >24 MPG 0.22• Reliable 0.28• Sedan 0.08
• TPU 1.81
• Camaro• Comfortable
0.33• Loud 0.29• Flashy 0.44• Sporty 0.26• 21-24 MPG
0.34• Reliable 0.28• 2 door 0
• TPU 1.94
• BMW• Comfortable
0.33• Subdued 0.22• Flashy 0.44• Rugged 0.31• 21-24 MPG 0.34• Reliable 0.28• Sedan 0.08
• TPU 2.0
Ford Escape; 0.20126826891
2826
Honda Accord; 0.23856425555
9225Camaro,
0.271683745477554
BMW; 0.28848373005
0395
Camaro Responds
Down 0.4%
CA Summary•Prestige is the most important feature to
the consumer•Even after Camaro reacts, total market
share is still up 3.2%
Recommendations• Looking at both the conjoint analysis and
perceptual map we see that the Ford Escape will change its reputation if they add certain attributes
• Primary Attribute- Prestigious• In order to reach this target market, Ford should
stress the attribute of prestigious
Learning Memo•Look at different competing car brands•Add more attributes
▫Price•Survey a different group of people
▫Loop and Lincoln park▫Different ages/year in school