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- 1. FORD WINDSTAR CASE ANALYSIS PREPARED BY: FAIZATUL AMRAH AISHAH WAN HAMIZA WAN HAZIRA
- Minivan history and development
- Minivansdesigned for families, for people with two or more children and who were tired of cramming into sedans for long and short-hour trips.
- Minivan is divided into 2 categories:LWBandSWB .
- It was first introduced by Dodge Caravan on 1983 and then followed by General Motors and Ford.
- Ford Windstar
- Ford Windstar was introduced in Canada in 1991.
- Windstar was the first to be given 5 stars rating by NHTSA
- Windstar is way back behind when it comes to introducing product innovations.
- sliding fourth door
- flip-fold seat
- Quality problems and product recall.
- Limited choice
4. Ford Windstar 5. Rivals Pontiac Montana Honda Odyssey Chevrolet Venture Grand Caravan Toyota Previa 6. SUMMARY
- Below Table 1 show % of market share in LWB
- segment in 1999 and 2001
11% 3.3% Honda 27.4% 19% Grand Cadavan 14% 9% Pontiac Montana 30% 44% Windstar 2001 1999 7.
- Highlightofthe case
8. Question 1: Assess the various promotional tactics available to Brian. Which one(s) make financial sense. Why? Ford Windstar 9.
- Brian Tafler had considered the followings:-
- Direct Mail Campaign
- Repositioning Through Advertising
- Value Pricing
- Sales Incentives
- Cash Offers
10. DirectMail Campaign
- Lease Renewal Customers
- Targeted to about 5000 customers
- Highlighted the new features i.e Safety System and Family Entertainment System
- Current Lease renewal Rate : 40%
- Expected : 45 to 50% returning lease customers
- Offered: $500 loyalty discount
11. Direct MailCampaign(cont..)
- Potential New Customer
- Focus the customer who leased a minivan from other manufacturer
- Offered - $500 switching incentive
- Expected 2 to 3% customer switched to Ford
12. Repositioning Through Advertisement
- Tier 1
- Manufacturer paid and control the advertising
- Focused- Building brand image
- Impact- can be seen after few years
- Tier 2
- The dealer and manufacturer associates for the advertising
- Focused- promoting particular brands within region and for short time.
- Tier 3
- The dealer paid for the advertising
- Focused- To attract customers with price,
- promotion and incentives
13. Repositioning Through Advertisement (cont)
- Shortcoming of Tier1, 2 and 3
- Manufacturer focused on building brands, dealers interested in immediate sales
- Cost of advertising/promotion ofminivan increased i.e 10% since 1998
- Advertisement spending in Tier 1 and 2.
- Tier 2- Price of LX model to fight the SWB market
- Brian need to target customers byprice oriented strategyor byimage advertising .
14. Value Pricing
- Tier 1 Advertising
- Bundled attractive features
- No charge for Family Entertainment Systems worth $1500 in its Sport, SEL and Limited
- Rivals- offered the features for top-of-line models
- Improve the selling of vehicle mixed.
15. Sales Incentives
- To trigger sales
- Benefits the buyer of subvented lease or financing rates, cash-backs and other discounts.
- Incentives offered by domestic manufacturers were higher than imports.
- In 2002- 55% sales of Windstar in Canada were lease.
- Ford offered 24 to 36 months rates
- Windstar offered 48 to 60 months rates
- Rivals-GM & Chrysler offered 24, 36 and 48 months rate. Imports none.
- General Motor Acceptance and Ford Credit provides attractive lease and financing options
- Interest rate charged to customers 0 to 2%
17. Leasing (cont)
- Longer lease- lower monthly outlay
- Shortcoming- customers will not be back almost 12 to 24 months.
- Customer satisfaction was lower after 3 or 4 years
- Benefits sales mix would be larger proportion to lease.
18. Cash Offers
- Cash discount offered to buyer and salesperson
- Cash $2000 on Windstar purchased
- Red Carpet Lease Cash- $500 cash on Windstar lease
- Renewal Offer - $1000 cash on returning lease
- Christmas Bonus- $500 cash to purchase and lease in December
- Sales person incentive-$100 for every vehicle sold in 30 days
- Period Golf Vacation- for top salesperson in each region
- Produced- 2% of volume in next 3 months
19. Financial Sense
- Brian should considered :
- Repositioning Trough Advertisement by using structure Tier 2.
- Value pricing
- Cash Offers
20. Repositioning Trough Advertisement by using structure Tier 2
- Associated manufacturer and dealers, cost will be shared by them
- Promoting Windstar and price promotion
- Attacking region by region and also globally.
21. Value Pricing
- Create excitement by creating the value package
- Also can be swap in Tier 2 advertising instead of Tier 1.
- Improve sales mix
- 55 % Windstar in Canada were leases
- Offered longer lease rate . Up to 60 months
- Will lower customer monthly outlay
- Lower interest rate- 2%
- Sales mix will be larger in proportion
23. Cash Offers
- Cash discount to buyer/salesperson
- Increased in volume in next 3 months
- 70% of non-leased vehicles were financed.
- Each $1000- will produce additional 2% in volume.
24. Ford Windstar Question 2: Assess the alternatives in terms of their attractiveness to target consumers and the effect on the Ford Windstar brand? 25. Windstar and Safety
- Important element of the Windstar
- 5-star rating by NHTSA
- Led the industry
- Personal Safety System (PSS)
- Important consideration for families
26. Purchase Consideration 14 Important Attributes * *change over time 27. Top 3 Reasons For Purchase 32% 30% 30% MPV 44% 28% 33% Sienna 50% 21% 39% Odyssey 28% 28% 27% Caravan 28% 29% 22% Montana 30% 42% 23% Venture 28% 25% 34% Windstar Reliability Value for MoneyPrice / Deal Overall Quality Safety OEM's Reputation Fuel Economy Seating Capacity 28. Performance of Windstar Not Translated into Higher Market Share
- Value for money
- Windstar 40%
- Leaders score 50%
- Windstar performance is far behind the market leader in term of the price & value for money
29. Performance of Windstar Not Translated into Higher Market Share
- Value for money
- Innovative Ideas
- Easy to convert for people or cargo
- Have luxurious interior finish
- Proud to own
- Meets the needs of you & your family
- Provide peace of mind
- Superior ride
- Power to keep you out of harms way
- Distinctive styling
- Drive like a car
Lacking: Leading: 30. Buying Process
- Consideration Phase
- Image and brand perception
- Active Shopping Phase
- Image and Features
- Buying Phase
- Features and Price
- The study on how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experience to satisfy their needs and wants.
32. Consumer Behavior What Influences Consumer Behavior?
- Cultural factors
- Social factors
- Reference groups
- Roles and statuses
- Personal Factors