Summer Project Report

Study of Ford Fiesta

Organization: JWT

Submitted in partial fulfillment for award of PGDM 2008-10

Srikant Rajan
PGDMB/48

Institute for Financial Management and Research

1
 Acknowledgement

I would like to thank the entire staff at JWT Chennai for giving me an
opportunity to undertake a project with them. A special mention to the
entire Ford team, my project guide Mr. Vignesh Babu, and mentors Mr.
Don Bosco, Mr. Morarji Anand and Mrs. Vani Iyer for solving our numerous
queries and patiently explaining the entire process of advertising.

And last but not the least, a vote of thanks to my coworkers Cerys
Aleamo, and Teertha Samal.

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 Executive Summary

Ford India produces the Ikon, Fiesta, Fusion and Endeavour at its plant
near Maraimalainagar, near Chennai. The model Fiesta has a very low
petrol car penetration in its segment, in spite of having a highly acclaimed
Duratec engine, reputed for its superior refinement and performance. In
India 65% of sales happen in metros and mini metros, where markets like
Delhi, Mumbai and Chennai account for the highest sales.

Thus this project aims to identify key factors that influence car buyers in
Chennai and establish the basis of segmentation from the consumer
viewpoint. Thus, we plan to identify the operating segment of Ford Fiesta
and hence the target group. The second part of the project undertakes
market research from a sample of the target group and gather the
perception of Ford against competitors and model Fiesta Vs competitor
car models. This is done to establish if the perception associated with the
brand and the specific model are similar and if not investigate the reason
for variation.

Finally we did a segment communication analysis i.e. study all the

communication(press ads only) adopted by Ford Fiesta and competitor
cars in the period 2006-2008 and establish any specific patterns such as
relations to WINPINS, retail sales conversion. We also investigated the
communication pattern adopted at the Point of Sales (POS) i.e. the
showrooms and analyzed the same using the AIDA (Awareness, Interest,
Desire, Action) model of communication.

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 Table of Contents

I. Organization Profile

II. Project Background

• Overview of Indian Automobile Industry

• Ford India Operations

III. Launch of Ford Fiesta

IV. Definition of Project Objectives

V. Identification of Methodology

VI. Segmentation of Car Industry in India

VII. Segment Communication Analysis

VIII. Survey Responses

IX. Data Analysis

X. Dealer Visits and Observations

XI. Final Analysis and Recommendations

XII. Annexure

• Discussion Guide

I. Organization Profile

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JWT is one of the world's largest advertising agency networks. It is one of
the key companies of Sir Martin Sorrell's WPP Group and is headquartered
in New York. The company that was to become JWT was originally founded
by William James Carlton in 1864.In 2005; the agency was "relaunch" by
dropping the name J. Walter Thompson in exchange for JWT.

JWT is reputed to be the first to:

• invent copy and layouts

• build the first full-service advertising agency
• pioneer ad careers for women
• produce the first sponsored TV program
• develop account planning
• create the first international network

Clients of JWT include HSBC, DTC, Ford, Jet Blue, Kellogg, Nestle, Shell,
Pfizer, Unilever, Vodafone, De Beers, White Castle, Safi Airways, Roshan
and the United States Marine Corps.

An agency not known for its creative prowess traditionally has

nevertheless brought home awards that have hitherto remained elusive to
Indian advertising. For instance, The Times of India’s Lead India campaign
by JWT bagged various metals including a Grand Prix, Integrated/ Titanium
Lion, and Design Gold Lion at Cannes resulting in India ranking No. 2 at
Cannes. JWT India acquired live activation company Encompass and
increased geographical presence through a partnership with Mindset in
Hyderabad and they also have a tie-up with ADK.
The specialist divisions – RMG Connect and IPAN continued to show robust
growth through the year, the agency won 76 new businesses including
heavy duty Airtel DTH.
In terms of its portfolio this year, agency launched the Airtel DTH, The
Times of India Chennai, The Times of India’s Teach India initiative and

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PepsiCo’s Tropicana Twister. It rebranded Pizza Hut and bagged deep-
pocketed clients like Airtel DTH, Birla Sun Life Insurance, Birla Sun Life
Mutual Funds and Kingfisher Airlines. JWT India is one of the fastest
growing, and best performing agency offices in Asia. The agency has
exceeded its business plans and financial performance year on year. This
is of particular importance given JWT India’s large revenue base and
even more significant given the current global meltdown. The JWT India
client list is a veritable ‘Who’s Who’ of over 200 client/brand relationships.
Most of these are either Number 1 or 2 in their categories with a market
share of over 40%. In the last year the agency conducted almost 2,500
man days of staff retention and training initiatives with programs that are
unique and distinctive.

II. Background of the Project – Automobile Industry and Ford India

The Indian automobile industry at present holds tenth position in the

entire world and has seen a growth rate of 18% per annum and an annual
production of more than 2 million units. Passenger Cars and Multi Purpose
Vehicles grew by 1.31% and 5.69% respectively in 2009 over
2008.However, sales of Utility Vehicles fell by (-) 7.94%.Major players in
the Indian market include General motors, Ford India, Skoda Auto,
Chevrolet, Maruti, Honda, Hyundai, Tata and Fiat.

Fords first model "A" of Ford was first seen on the India roads in the year
1907. Ford Motor Company ventured in to the Indian market in the year
1926 for the first time and operated independently as a reputed car brand
till the year 1954. In the year 1955, Ford joined hands with Mahindra and
Mahindra Limited. Finally in the year 1998, the Ford Motor Company got a
stake of 92.18% in India and ventured forth as Ford India Ltd. Ford India
Ltd. is part of the Ford Asia Pacific, which is a regional operating unit of
the Ford Motor Company.

Ford India produces vehicle bodies for four models -- the sedans Fiesta,
Fusion, and Ikon, and the Endeavour, a mid-sized SUV. (Only the Fusion is

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also sold in the US). Ford India makes about 100,000 vehicles per year at
its factory in Chennai, in the state of Tamil Nadu, and sells about 20,000
vehicles a month from 130 dealerships across the country. Beginning in
2010, Ford India can cease importing engines from Europe when it opens
its own engine plant, which is part of a $500 million expansion plan from
parent company Ford. As a part of cost cutting measures Ford has
resorted to sourcing local parts and it is estimated that the local content
in our Ikon and Fiesta models are 90 percent and 85 percent respectively

However despite cutting the cost base, Ford India Pvt Ltd was back in the
red in 2007-08, after posting a profit the previous year. Other
multinational car manufacturers – General Motors India Pvt Ltd, Honda Siel
Cars India Ltd, Toyota Kirloskar Motor Pvt Ltd and Hyundai Motor India Ltd
– have posted profits for the year, according to their annual reports.

III. Ford Fiesta

Ford Fiesta was launched in November 2005 and is a strong player in the
Premium B segment, competing with brands like Honda City, Maruti SX4,
and Hyundai Verna and Fiat Linea. Currently Fiesta holds close to 8%
market share in the segment. It is available in the 1.6 liter petrol version
and the 1.4 liter Diesel options and comes in 7 variants. (3 in diesel and 4
in petrol) and has a sales split of 81% Diesel cars and 19% petrol cars.
Fiesta is known for its very reliable Diesel car.

Autocar reported highway efficiencies of 16.6 kmpl in the Honda City and
14.9 kmpl in the Fiesta and for city conditions the Honda City returned
10.9 kmpl and the Fiesta returned 9.6 kmpl. Thus the mileage is only very
slightly more in the Honda City. However the Fiesta has a much more
powerful engine at 101 ps against 78 on the Honda City and thus delivers
far more driving pleasure. The Fiesta also has comfort and convenience
features like leather seats, 6 CD in dash changer, keyless entry, foldable
rear seats, to name a few. Safety too is better off with ABS and EBD as an

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option and a rigid passenger cell protected in the front and rear by
crumple zones and at the side by impact beams.

Thus despite superior features, Ford Fiesta have a very low petrol car
penetration in the segment, in spite of having a highly acclaimed
Duratec engine, for its superior refinement and performance. In India 65%
of sales happen in metros and mini metros, where markets like Delhi,
Mumbai and Chennai account for the highest sales.

IV. Objective of Project

• Identify key factors that influence car buyers in Chennai

• To understand perceptions of brand image of Ford against

competitors and Fiesta Vs competitor cars

• Understand dealer /sales manager point of view over fiesta and

competitor cars

V. Methodology

• Identify the prevalent brands and car models in India and segment
them. Identify the operating segment of Ford Fiesta

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• Primary interviews with a sample of the identified segment to gauge
the end user perception of the brands, specific models

• Dealer visits and observe interactions at POS

• Segment communication analysis of competitor cars and identify

trends if any

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VI. Segmentation of the Car Industry in India

This process began with a list of car models in India. This was then
followed by the listing of features of each model:

• Price

• Design - Types

o Hatchback: Five door car. Four access doors and hatch gate-
full height door at rear to access cargo and luggage space.
Passenger capacity 4-5

o Sports Utility Vehicle (SUV): Square cross-section, an

engine compartment, a combined passenger and cargo
compartment, and no dedicated trunk. Passenger capacity of
5-8. Loading capability of a pickup truck, passenger carrying
capacity of a van and designed to run in different terrains.

o Multi Utility Vehicle (MUV): Similar to a sedan however has

large interior space on account of removable seats. Large
seating space(7-10), and big boot space

o Sedan/Saloon : Four/two(Coupe) door car having a capacity

4-5 and a separate luggage space

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 • Engine capacity and power - Performance

• Variants – Petrol/diesel

A. Segment A:

• Price: 1.8-3lakhs
• Hatchback car
• Low engine capacity
• Models: Maruti 800, Now Nano

B. Segment B:

• Price: 3-5lakhs
• Hatchback Cars
• Engine Capacity: 1000 CC, Average power 60 bhp
• Models: Alto, Indica, Santro, Matiz, Wagonr, Swift, Zen Palio, A-star,
i10

C. Segment B+:

• Price: 5-10 lakhs

• Engine Capacity: 1600 cc. The power rating varies from a 90bhp
-100.
• Hatchback, Sedans and SUV
• The seating capacity is greater than that of the Segment B and they
may be categorized as mid sized cars.
• Models: Esteem, Indigo, Accent, Fiesta, Fusion, Sail, SX4, Logan,
Ikon,
Fabia, Dzire, U-VA, Sail
Safari, Sierra, Scorpio

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D. Segment C:

• Price: 10-14lakhs
• Luxury Sedans and SUVs: includes air bags, anti lock brakes.
• Not a great change in the engine capacity.
• Models: Lancer, Elantra, Octavia, Corolla
Tavera, Scorpio, Qualis, Safari (deluxe variants)

E. Segment CD+

• Premium luxury sedan and SUV

• Price : 14 lakhs +
• The primary difference here and between the C segments is more
on the capacity and power of the car.
• Externally the length of the cars in the CD+ segment is greater than
C segment.
• However there is not a high increase in the weight of the car.
• Engine capacity 2350 Power: 160bhp
• Models: Sonata, , Teana, Accord
Mondeo, Endeavour, Tucson, Prado

F. Premium Cars:

• This caters to the requirements of luxury and performance. The cars

in this segment have high power ratings, at the same time
incorporate above mentioned luxury features.
• Price: Wide variation - no local manufacturing
• Here the models comprise of sedans and Coupes.
• The designing focus on Coupes is logical as with the decrease in
number of doors the performance may be enhanced without

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 augmenting the engine capacity. Engine Capacity 3000CC, Power
250bhp.

Discoveries

• Increase in the design variety from the low( 1 variant, hatchback) to

the mid price segment( sedan, hatchback and SUV)
• Less models/variety of SUV in the 5-10 lakhs segment
• All transitions into the high priced segment go for a sedan model
than a hatchback. Thus the sedan design type is associated with
luxury
• When moving from the B segment → B+ → C segment ,the price in
case of Hyundai variants almost doubles from the B+ (5lakh) to the
C (10 Lakhs) segment.
• Antilock breaking and airbags, CD player is not present in many of
the B+ sedans

Thus the basis of segmentation is on price from the consumer viewpoint.

However design players an important role in the high price segments and
performance in the luxury price segment. The above variation in segment
behavior may be explained on the basis of Maslow Theory of needs.

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As the above diagram portrays, there are different levels of car
purchasers which vary with the intention for purchase. The three factors
namely price, performance and design play a role in the purchase decision
of every car intender. However the priority level shifts with the rise to the
top of the pyramid.

For a car intender at the bottom of the Pyramid, he is looking for a

small car and his budget is a constraint. Thus he would probably consider
the hatchbacks in the sub b segment or maybe even the a segment which
deliver value for money in terms of cost of ownership as the cars are
generally low maintenance and offer good mileage. If he is able to
purchase a sedan within the same price range which also provides him
with good mileage, he would probably go for the sedan as it will give him
more status which, every man is concerned with.

As we move to the second level, the intender has the money but may
still decide to purchase a hatchback (if he finds this more convenient) or a
sedan. Price does not pay so much of a role here as he has the money but
he considers the usage of the car while he decides the consideration set
and depending on that picks out a car that is best suited to him.

At the very top of the Pyramid is Performance and status which is

all important to the man on top as he feels he is the best and
deserves something special. Price plays a minor role here as he can
afford the very best and he might play around with model type depending
on how he wants to portray himself. An adventurous sporty person might
opt for an SUV or someone looking for the luxurious feel would opt for the
sedan model.

Finally from the industry viewpoint the segmentation of cars is done on

the basis of length of the automobile. Up to a certain length of the car, it
is classified as a small car and is eligible for benefits. Thus Tata Indigo

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despite being a sedan in the 5-10 lakhs segments is eligible for
tax advantages as according to the length is classified as a small
car.

15
 1-3 lakhs
3-5 lakhs

5-10 lakhs Segmentation of the Car

10-14 lakhs Industry
14 + lakhs

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VII. Segment Communication Analysis

Ford model Fiesta falls into the 5-10 lakhs segment. In this segment
the closest competitors for Fiesta are the Honda City, Maruti SX4,
Hyundai Verna based on the price. The leader among these in terms of
sales is the City followed by Verna and finally Fiesta.

To determine the possible reasons for low sales of Fiesta and the
consumer perception we analyzed the communication patterns for
each of the variant for the period 2006-2009.Monthwise data regarding
the sales of each variant was available with us. We then investigated
the entire pattern of communication as followed by these models

The communication type is broadly classified as:

• ATL (Above the Line): These include print, digital (mobile &
internet), billboards, TVC and radio.
• BTL (Below the line): These types are communication aimed at
the point of sales of the product near the consumer touch points.
Here while designing the communication it is assumed
that the consumer is past the affective and cognitive
stage and into the behavioral stage.

We investigated the press advertisements as the percentage of

population viz urban and rural was the same .Again we limited
the analysis to the metros and did not consider the regional
advertisements as the corresponding sales was marginal.

The press advertisements were categorized into two:

• Variable marketing (VM): This included financing,

maintenance, exchange and other offers such as free
accessories.

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 • Brand: Absence of any of the above mentioned offers and only
the message conveyed by the brand.

Observations

A. Year – 2006

• The year 2006 saw the city model releasing only value marketing
advertisements no advertisements by any other model
• The later quarter Verna released only brand advertisements -
launch phase
• Jan 06- Mar 06 only VM for Ford Fiesta, April 06-Nov 06 only
Brand( Key competitor action being launch of Verna in Sep 06 and
city anniversary edition from Sep 06 – Nov 06)

B. Year – 2007

• Year 2007 City continued with VM communication but decreased the

frequency and finally released no advertisements in the months of
March & April 07.Correspondigly Verna branched off into VM
advertisements and during March & April 07 released only brand
advertisements
• From May 07 – Aug 07, City released VM and brand based
advertisements but Verna limited communication only to brand
advertisements
• The last quarter of 2007 City , Verna focused on VM communication
but frequency decreased
• In 2007 SX4 release only brand ads in the second quarter (launch
time, April 07), no advertisements in the third quarter and VM
advertisements from the Dec 07.
• Ford Fiesta only brand ads from Jan 07 – April 07, May 07-july 07 VM
, Aug 07 – Oct 07 again brand .

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C. Year 2008

• Honda City continues its emphasis on Value ads, the months of

Feb, March and April say release of brand advertisements. The
same period saw corresponding action by SX4 and Verna but
frequency of Advertisements was greater in case of City.
• Verna Communication pattern is similar to City however no ads
from Aug -08 to Dec -08
• SX4 heavy emphasis on brand based advertisement, brand
advertisements only during Jan – April 08

Communication Pattern 2006

Communication Pattern

20

15
City VM
11

4
1 2 1 2 1
0
Feb- Mar- Apr- May- Jun- Jul-06 Aug- Sep- Oct- Nov- Dec-
06 06 06 06 06 06 06 06 06 06
Months

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 Honda City - Value Vs Brand Ads

8
6 Value
5
4 4 4 Brand
3 3
2 2 2
1 1 1 1

Jan- Feb- Mar- Apr- May- Jun- Jul-07 Aug- Sep- Oct- Nov- Dec-
07 07 07 07 07 07 07 07 07 07 07
Months

Hyundai Verna - Value Vs Brand

3 3

2 2 2 2 Value
Brand
1 1 1 1

Jan- Feb- Mar- Apr- May- Jun- Jul-07 Aug- Sep- Oct- Nov- Dec-
07 07 07 07 07 07 07 07 07 07 07
Month

Communication Patterns - 2007

…………………………………………………………………………………………………
………………………………………….....

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 Communication Pattern - 2008

Hyundai Verna - Value Vs Brand

Value
4 Brand
3 3 3 3
2
1 1 1 1

Jan- Feb- Mar- Apr- May- Jun- Jul-08 Aug- Sep- Oct- Nov- Dec-
08 08 08 08 08 08 08 08 08 08 08
Month

SX4 - Value Vs Brand

10
9
8
Value
Brand
3 3 3
2
1 1 1 1 1 1 1 1

Jan- Feb- Mar- Apr- May- Jun- Jul-08 Aug- Sep- Oct- Nov- Dec-
08 08 08 08 08 08 08 08 08 08 08
Month

Honda City - Value Vs Brand

8
7
Value
5
4 4 4 Brand
3 3 3 3
2 2 2
1 1 1 1

Jan- Feb- Mar- Apr- May- Jun- Jul-08 Aug- Sep- Oct- Nov- Dec-
08 08 08 08 08 08 08 08 08 08 08
Month

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Discoveries

Trends observed for City, Verna and SX4

• The launch phase focuses exclusively on brand advertisements to

increase awareness (AIDA).
• These continue for one quarter and then VM advertisements take
over.
• However the competitor action focuses on brand advertisements in
this quarter, probably to increase awareness of the perceived
superiority of their product.
• Frequency of VM advertisement exceeds brand advertisements at
any time.
• Maximum number of VM communication in June , July months
• Among the segment - Low Interest/Low interest, Loyalty Bonus &
Accessories dominate the VMs offered in the last years
• Consistent VMs provided by Honda City includes - Low Interest &
Low Down payment
• Hyundai Verna had consistently offered Loyalty Bonus & variable
cash discounts
• SX4 has been consistently offering Rs.10,000 Loyalty bonus & there
has also been cash discounts up to Rs.25,000

Trends for Ford Fiesta

• Fiesta did not have any consistent Offer - the offer keeps changing
every month.
• Maximum number of brand communication rather than VM.
• December’08 Price off ad delivered the highest Phone INS in the
brand's history, while WinPin to retail conversion stands at only 9%
for Ford Fiesta.

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 • The press advertisements taken into account comprised
only of 40% of the total advertisements)

AIDA Model of Communication

Cognitive Attention

Interest

Affective

Desire

Behavior
Action
VIII. Survey Responses

A survey regarding the perception of cars in the Fiesta segment was

undertaken to determine the consumer perception of the communication
patterns adopted. The methodology of the survey was:

• Observe interactions at Ford and competitor car showrooms to

determine the efficacy of BTL advertising and determine the dealer
pitch.

Interviews with car owners

A. Target Group

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Prospective car buyers in the age group of 30 to 40 who are
considering the following set of cars – SX4, Fiesta, Linea, City,
Verna.

B. Sample
• The study comprised of both telephonic interviews as well as an
online questionnaire.

• Due to lack of responses to the telephonic interview, much of the

study result is based on the responses to the online questionnaire.

• The online questionnaire was limited to contacts that were

personally known and some contacts provided by the company. This
was done to ensure that the study was kept discreet.

• Due to all the restrictions and difficulty obtaining

interviews, the final sample size was limited to thirty.

The user survey focused on:

• Identifying the parameter user’s desire in a car, the

respondents were chosen so that the Fiesta segment is
adequately represented. These parameters were assigned
scores on a scale of 1-5.

• The perception of the users regarding petrol and diesel

powered vehicles. This data coupled with their current car
type and the ratings assigned to car features can be
utilized the favorable and unfavorable parameters with
each fuel type

• Rating the brand and the models on a scale of 1-5.This

data could be used to determine the favorable aspects of
the brand and the model per se and determine patterns if
any.

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The above inputs coupled with Fords communication pattern and
competitor communication pattern to identify the perception of Ford
Fiesta.

IX. Data Analysis

A. Feature Ratings

Defined as the following:

• Price
• Performance: How the car drives, runs or in general performs,
meant to be an indicator of power
• Brand Name
• Fuel Efficiency
• Safety
• Maintenance Ease/Reliability: Frequency of breakdowns or
necessity of repairs
• Luxurious Interiors/Silence in Car /Comfort/Refinement: All show
similar responses

• Performance ranks the highest as the feature desirable in a car,

followed by maintenance ease and reliability
• However the rating given to power does not vary widely
from performance

B. Brand Ratings

Defined as:

• Spare parts availability

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 • After Sales service
• Maintenance cost
• Mileage

Brand Ratings

Spare Parts Availability

After sales service
Mileage
Maintenance cost

Ford Honda Hyundai Maruti

• Maruti scores the highest on maintenance ease, spare parts

availability and after sales service followed by Hyundai and
Honda. Ford ranks the least on these parameters

• Maruti is again the highest on mileage feature but the difference

is very less among Honda and Hyundai. Ford again ranks the
least.

C. Model Ratings

Defined as:

• Stylishness: The X factor associated with the model

• Fuel Efficiency
• Reliability: The consistency in performance
• Performance: The power delivered while driving
• Comfort

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 Model Ratings

Stylishness
Fuel efficiency
Reliabilty
Performance
Comfort

City Fiesta Linea SX4 Verna

• City leads in stylishness followed by Linea and SX4.Verna and

Fiesta Ranks the same
• City leads in fuel efficiency, SX4 and Linea ranks the same and
Fiesta and Verna rank the least
• City leads in reliability and SX4, Linea and Fiesta rank the
same
• City leads in performance parameter followed by Fiesta
• City again leads in comfort followed by SX4, Linea and Fiesta

Discoveries

• All the respondents own a petrol powered vehicle

• Maintenance cost and price is perceived to be vary widely (50%
approx) between petrol and diesel variants, however
performance is not perceived to change.
• Reliability is perceived to be similar among petrol and diesel
variants
• Service quality and availability of service centers are perceived as
the most desirable features with the purchase of a car.
Extended/free warranty features rank low on desirability scales

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 • DIY kits and customized maintenance plans rank second on
desirability features

Thus a petrol car is perceived to offer a low/high maintenance

cost and among brands Ford ranks least on the features of spare
parts availability, maintenance cost after sales service and
mileage. However the highest rating among these is for spare
parts availability.

Finally Fiesta model ranks high on reliability score which provides

a good opportunity.

X. Dealer Interactions

At all dealers we went in as possible buyers. The following were taken into
consideration:

• Communication at the POS( in terms of use of posters, danglers etc)

• Dealer pitch: evaluated on basis of information of present car and
the competitor cars, manner of presentation.

We evaluated the dealer pitch according to the AIDA model.

A. DSC Hyundai

POS Communication
• There was a change in Verna model. The car is now available in
only six colours, however the brochure still displays all the previous
colours as the new brochure is not available.

• The Verna is on display in the showroom

• Tech Spec Stand

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 • Standees

Dealer Pitch
• The car offers 11 to 12 mileage with the AC in city driving
conditions.

• It has a clutch lock which no other car in the series has. This ensures
that when starting the car the clutch does not have to be pressed
very hard and thus the clutch plate will not wear out as quickly as in
other cars.

• Kenwood music system is included within the price of the models.

• The VTVT engine offers the best pickup in the class

• Honda City has the fuel tank in front of the driver seat. Two cars
were burnt because of this in Mumbai.

• Diesel cars are selling very well as compared to the petrol sales.

• Overall sales are about 20 per month.

B. Maruti Dealers (ABT)

POS Communication
• Colour chip Stand

• Tech Spec desk top display ( SX4 vs Honda City)

• Car on display

• Brochures

• Posters ( Men are Back)

Dealer Pitch
• He stressed on the reliability of Maruti

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 • For the first three times within the period of a yr, the servicing is
free.

• The Service centre just next to the outlet and so it is very

convenient for the customer to get his car serviced.

• Spares are very easily available as Maruti certified spares can be

bought anywhere.

• Admitted that the car is low on mileage as compared to the Fiesta.

• Sales average about 30 per month.

C. Fiat Showroom (Tafe)

POS Communication
• Toy Linea in showcase

• Linea on display

• Posters

Dealer Pitch
• Blue and me: This is a blue tooth service which allows you to receive
calls without picking up your handset.

• The Car is the most stylish one within the set

• Kenwood system is included for no extra cost in the higher end

models

• Climate control

• Sales are 30 per month

• Price inclusive of leather interiors

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D. Sundaram Honda

POS Communication
• The new Honda city on display

• Posters & Standees

Dealer Pitch
• An increase in the power from 100 bhp to 116 bhp

• Comes with a 1.5 liters engine

• Leather interiors available in base model

• Provision of i-pod compatible accessories

E. MPL Ford

POS Communication

• ‘New ford fiesta- styled to perform’ poster

• Same poster on help desk
• ‘Fall in Dura love – ford fiesta’ poster
• 1.6s color chip display
• Accessories display and poster
• Tech spec stand

Dealer Pitch

• Successful in petrol and diesel versions

• Provides zip and drive pleasure with sporty looks

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 • Honda City: Better power to weight ratio in terms of handling. The
earlier city was a bigger hit. In the new version, weight of the car
has been decreased in order to increase mileage
• Maruti SX4: successful with small cars, heavier than fiesta, and
limited visibility.
• Verna: Only petrol variant is offering good VFM, user confidence on
account of large number of cars seen on the road.

XI. Analysis and Recommendations

As seen above the target group has low price sensitivity but high
preference for designs. Since a majority of cars in the given segments are
sedan designs an opportunity would exist in designing either a hatchback
(only Linea) or an SUV.

Secondly the communication pattern followed by Ford Fiesta does not

show any given structure as opposed to other models such as City, Verna
and SX4.Fiesta communication shows a high emphasis on brand based
communications. This in turn has lead to increased awareness of
Ford Fiesta per se compared to other models as indicated by the
corresponding WinPin. However the retail conversion scores are the
least this may be due to mismatch between subsequent communications.

• The mass level – Low frequency of VM combined with improper

timing

• Inability to generate interest at the corresponding POS

locations( Dealer Pitch)

The POS communication is similar in all the outlets in terms of the

accessories used viz props, standees, Tech spec stand. However the
dealers pitch shows difference:

• Honda: Emphasis on power and drivability. Additionally there is also

emphasis on special features such as iPod compatibility.

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 • Hyundai: Emphasis on success in petrol and diesel variants, special
features of in built music system and clutch lock facilities.

• SX4: Emphasis on maintenance ease and free service features

• Ford: Emphasis only on driving pleasure and sporty looks. Such

communication may not generate interest as it is not
differentiable from other cars in this category.

As seen with other model of cars in this segment, the commonality in all
the dealer pitch is power and performance. However in addition to this
they also adopt some other characteristics to generate user interest and
may propel him to the next stage of desire and subsequent action.

However the comparison between similar models in this segment was

adopted which may generate interest. As indicated by the survey,
reliability is the most preferred characteristic in a car and the
understandably DIY kits and maintenance ease rank as most desirable
post purchase features. Thus the pitch may emphasis on the reliability
aspect of Fiesta, also allow potential customers to design their own
maintenance schedules.

XII. Annexure

A. Discussion Guide

1. Name:
2. Age:
3. Occupation:
4. Interests /hobbies:

5. List the brand of cars you are aware of?

6. Which car do you currently own? Petrol or Diesel?

7. When did you buy the car/s? What were the specific reasons to choose
that car?

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8. Where did you first hear about your current car?

Newspaper (Specify), Auto magazine (specify), Promotional event, TV

Commercial, Friend or colleague

9. Who primarily influenced you to choose the specific car?

Friend/colleague (What car he owns?), Sales personnel, Family preference

(Relationship?), Self, Media (Articles in Internet / TV/ Paper), others
(specify)

10. How satisfied are you with your current car?

Extremely satisfied, Satisfied, Neutral, Dissatisfied, Very dissatisfied

Specific reasons for preference if any?

11. How often do you use your car?

Daily commute, Weekend trips/ Family trips, Business trips

12. What is your perception about Petrol cars and Diesel cars?

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13. What are the parameters you would associate as important in a car?
(Rate on a scale of 1-5, 1 being least preferred and 5 being highly
preferred)

Least
Preferre Highly
d Preferred
1 2 3 4 5
Price
Performance/Powe
r
Brand
name/Badge
Fuel efficiency
Safety
Image
Maintenance ease
Reliability/Consiste
nt performance
Trunk Space
Luxurious Interiors
Silence inside the
car
Comfort
Refinement

Special
features( specify)

14. Please rank the essential support required with the purchase of a car
(on a scale of 1-5, 1 being least desirable and 5 being the most desirable)

Least Most
Desirable Desirable

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 Large number of
service centers
Warranty/Guarantee/
Free service

DIY kits
Customized
Maintenance plans

15. When do you intend purchasing your next car?

Within 2 months

2 – 6 months

6months – 12 months

After a year

Others (specify)

16. What brand will it be? Why?

17. Fuel type?

Petrol
Diesel

18. Kindly rank the following w.r.t to similarity between Petrol and Diesel
cars (1 being highly similar and 5 being dissimilar)

Purcha Maintenanc Mileage Performan Reliabili

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 se
Price e Cost ce ty
Purchase Price
Maintenance
Cost
Mileage
Performance
Reliability

19. Kindly rate the following brands on a scale of 1-5, 1 being least/poor
rating and 5 being excellent on that parameter.

Brand Spare parts After sales Mileage Maintenance

availability services cost

Ford
Maruti
Hyundai
Honda

20. Kindly rate the following brands on a scale of 1-5, 1 being least/poor
rating and 5 being excellent on that parameter.

Stylish Fuel Safet Reliabili Performan Comfo Status

efficien y ty ce rt Symbo
cy l
Honda City
Hyundai
Verna
Maruti SX4
Fiat Linea
Ford Fiesta

21. What is your perception on Ford Fiesta?

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22. What are the fuel options available in Ford Fiesta? (Unaided)

23. What is the price range of Ford Fiesta?

24. How do you rate Ford Fiesta against these brands?

Maruti
Honda City Hyundai Verna SX4 Fiat Linea
Superior

Equivalent

Inferior

Reasons

25. What will make you consider buying a Ford Fiesta Petrol?

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