Ford Trystar Attributes

A. Johnson. Reyte on Publishing 2012.

The Trystar, as the name suggests, will be a three-wheeled vehicle with two in the front, and one in the back. The Trystar will be capable of speed suitable for side streets and freeways. The design of the car will be aerodynamics and based on the ability to minimize wind resistance while significantly reducing emissions and (Lutsey, Sperling, 2012). The exterior body of the Trystar is made of fiberglass and the trike comes in 5 basic colors. I.e. Black Metallic, Cherry Red, Silver Metallic, Cream White, and Sky Blue. The Engine and power train consists of a Ford 4 Cylinder 2.3 Liter 150 pounds torque. Horsepower is 155, and standard transmission is a 5 Speed automatic. Suspension for the Trystar is based on Air Lift with Tri Shock Absorbers (Ford.com, 2012). The wheels are 18x9 inch and tires will be BF Goodrich. The comparable power is based off the Ford Mustang GT. The Fuel Cell has a 9.5 Gallon capacity. Trunk Space is approximately 8 cubic feet. The expected EPA mileage is 40 MPG and 50 Highway miles (Ford.com, 2012). The exterior Dimension are Height 58 inches, Width, 62 inches and Length of 130 inches. The weight of the Trystar is about 1,650 pounds. The interior of the Trystar as a one seater is leather trim and standard Ford dashboard for gauges. Interior color is standard Black unless otherwise specified by the buyer. The shift

gear is also standard with both air conditioning and heat. Drink Holder is included along with AM/FM/CD Stereo with Quad Speakers mounted in the front lower Dashboard and Rear of Seating. Production Life Cycle

Product Life Cycle (Rodrigue, 1998). With the initial design of Trystar Ford maintains a monopoly as the only automotive maker investing in research and development of the product. At the beginning of the product life cycle, the idea for building the Trystar is analyzed and market research also begins. The various stages of the Product Life Cycle are planned and executed in successive order based on factors such as the response of the market and demand (Rodrigue, 1998). Since this product has precedence primarily from foreign automakers, the opportunity for Ford to enter the market in the U.S. looks promising. However at the same time, taking such a unique and innovative step in a market where there are other very competitive and successful Trike manufacturers is a risk.

Risk factors affecting Stage one growth are the competitors which have proven success in this industry such as Honda, Harley Davidson, Can Am Spyder and Morgan Automakers. Stage 1 R & D is introduced by concept at the 2010 International Auto Show in the U.S. The first concept Trike will be produced by the second quarter of 2010 during the spring/summer to study the popularity and consumer response. The additional release of the vehicle into the marketplace is scheduled for Spring/Summer 2012 after major advertising and announcements at 2011-2012 Auto Show. The vehicle is expected to have the greatest sales during the warmer months of the year and decline during the winter. The next stage of growth is based on the response of the initial market research and demand for the product. If the product passes the initial scrutiny of Ford executives, production operations, finance, the industry media, and distribution (Rodrigue, 1998). As the concept car is developed, market research will include Ford stakeholders, consumer groups and leading automotive industry professionals to determine the feasibility and popularity of such a vehicle in the U.S. and other markets worldwide. Stage two growth is characterized by any patent on design and the entry of competition. Once the Trystar starts selling, other competitors may enter the market in attempt to capture a segment of this new demand for Trikes. Competition is a growth factor that can affect movement in this stage by slowing sales (Rodrigue, 1998). Ford will have to revisit its production planning and possibly transfer some of the manufacturing to less developed countries to lower costs. During the Fall of 2010 Ford will produce its first Trystar line in a limited quantity based on market demand or orders from consumer interests. These may include the Rental Car industry, which Ford is already affiliated with such as Avis, Hertz, Alamo, and Enterprise. In this way Ford is able to test the popularity of the Trystar with

consumers who rent Ford products. This is also an avenue for selling the vehicle. This will allow Ford to recoup expenses due to competitor sales. With a successful Launch in the Fall of 2011, the product can begin market research in other countries based on the response. Movement through the Growth stage thirdly is affected by the production team that makes plans to distribute in other countries where Trikes are already sold to compete with domestic automakers. By early 2011 the Official Announcement of the new entry Trystar will be released at the 2011 Auto Show. Many Auto industry media will get involved in reviewing, critiquing and comparing the Trystar to competition. With reviews come additional innovative ideas for the next release of the design. Profits will potentially skyrocket during this stage (Rodrigue, 1998). Trystar orders will be filled as the Trike is delivered to Ford dealerships at the most successful dealer locations nationwide. The third stage is Maturity in the market. This will occur during the Spring/Summer months of 2012 when heavy advertising during the previous 12 months will hopefully pay off in wide distribution, availability and high consumer ratings for the Trystar. As the product is improved and new features are developed additional components may be transferred to lower cost labor and production sites in addition to changing distribution channels to reduce costs (Rodrigue, 1998). This will offset building and relocating the vehicles to its most popular markets. Consolidation of manufacturing is affected by reducing or shortening time to market to meet consumer demand. Sales are expected to drop off during the Decline stage of the Product Life Cycle as the cooler season approaches. However there will be a major advertising campaign offering special incentives and rebates on purchases in the Fall/Winter 2012. The product is

expected to decline in popularity in the U.S. but gain momentum possibly in other countries. The Trike at this point will be targeted primarily for export to capture sales in foreign markets. Any excess inventories will also be slotted for export. Production alternatives are put in place to save as much expense as possible. If the Trystar was successful the line will be continued and production begun in Fall 2012 for a new release with any new features that have been developed. If the Trystar was unsuccessful according to projections, it may be removed or retired from the market entirely. This will mark the end of the Product Life Cycle for the Trystar. Marketing is affected by the Product Life Cycle as it will require extensive Market Research in the early Research & Development and Growth Stages. Once the product begins selling well, marketing will changeover in the Growth Stage to measure more consumer and the auto media industrys response to the vehicle (Rodrigue, 1998). This may drive new plans for adding innovative features to the vehicle. Prompting a second release of an updated product as mentioned in the Decline Stage. Thereby extending the Product Cycle. Marketing is also affected in the Maturity stage as it will center more around selling any overstock of product by offering incentives to buyers. During the decline stage marketing will shift to oversea consumers where the product is being exported. Product Differentiation The attributes that affect differentiation are most often the quality. With Ford being a leader in the automotive industry for many years, this is definitely a strength for the Trystar. Ford is well recognized for having several vehicles that are the Motortrend Car of the Year, and receiving a 5 Star Safety rating. Though the Trystar is a new release in the

marketplace, consumers trust Ford to produce a quality product and many are Ford Loyal consumers that only purchase Ford products. This may be the drawback to a consumer purchasing a Trike from a competitor with less recognition or due to brand loyalty. In addition Ford has their own Credit Company, Ford Motor Credit and a worldwide presence. This allows the Automaket to offer the Trystar at various pricing point strategy to capture the highest return on investment. By adding or taking away various components, they can provide pricing options to suit different target consumers budget. For example, offering the used product from partnerships with Rental Car companies to meet college, young adult, and senior consumer budgets. While at the same time offering a fully loaded vehicle to career and professional consumers. This will allow differentiation to occur to capture the customers perceived expectations of potentially owning a Trystar. Another major differentiating factor is the attractiveness of the Trystar to the consumer looking for fueling economy and mileage savings. Lastly, a differentiating factor of the Trystar is its appeal to the green movement or environmental conservation conscious consumer. Those interested in using less fossil fuel modes of transportation. Product Positioning Fords first entry in the Trike market, puts them at an advantageous position over the other top two American Automakers being the first to market and gaining the monopoly for the first stage of the product life cycle (Nielson, 2012). This will allow Ford to get out first to over GM and Chrysler to capture Brand loyal consumers who prefer to buy American or Ford first. Having a high mileage, low fuel consumption alternative that the other two top American Manufacturers do not have is huge in positioning for Ford.

Pricing Strategy

The pricing Strategies that may work best for the Ford Trystar are Premium, Skimming pricing, Competition pricing, and Optional Pricing. Since Ford is the only American automaker of the big Three to release a Trike, they may take advantage of premium pricing. Here the price is set slightly higher than other competition due to providing premium quality and service above and beyond the competition (Learnmarketing.net, 2012). Ford can offer special Incentives relating to Servicing the Vehicle due to dealerships nationwide, such as 5 year/50,000 mile warranty. Therefore a Trystar is worth a premium price. This would be offered during the First stage or R & D of the product. Skimming price is a strategy involving a higher price followed by a graduated price drop based on offering to additional target markets (LearnMarketing.net, 2012). The purpose is

to get the most buyers at each successive marketing niche. The hope is to get the most out of the specific market being advertised or targeted over the product life cycle. For example by the Decline stage of the product life cycle, pricing will offer more incentives to get any buyers who have declined from purchasing up untill the product is basically off the market. Competition price strategy sets price according to competition and then using quality, high mileage, award winning ratings, low fuel cost, or service as a selling point over competitors versus the actual product cost. For example the pricing once competition enters would begin to drop to a more competitive yet profitable margin. Optional price strategy considers adding or removing car options or components to give consumers different price considerations. Adding body moldings or even a convertible option might be something consumers are willing to pay more for. While, choosing for a manual transmission versus a standard, may be suitable pricing for a budget conscious consumer.

References Ford.com. (2012). Hybrids and crossovers. Retrieved June 20, 2012 from http://www.ford.com/?searchid=35041264|1184032024|11430330 LearningMarketing.net. (2012). Marketing concepts. Retrieved June 20, 2012 from http://www.learnmarketing.net Lutsey, Sperling, MIT Research. (2012). Vehicle fuel consumption and size tradeoffs. Retrieved June 20, 2012 from http://web.mit.edu/mitei/research/studies/documents/fueling-transportation/OTRin20354-6.pdf MotorTrike. (2012). Why choose motor trike. Retrieved June 20, 2012 from http://www.motortrike.com/ Nielson, L. (2012). Product Positioning and Differentiation. Hearst Communications News. Rodrigue, J.P. (1998). Geography of transport systems. Dept. of Global Studies Geography. Hofstra University, N.Y.