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.

2
 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.

3
 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

4
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 PepsiCo’s Tropicana
Twister. It rebranded Pizza Hut and bagged deep-pocketed clients like Airtel DTH,

5
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 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

6
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
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.

7
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

• 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

8
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

9
 • 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

D. Segment C:

10
 • 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 augmenting the engine
capacity. Engine Capacity 3000CC, Power 250bhp.

Discoveries

11
 • 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.

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.

12
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 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.

13
 1-3 lakhs
3-5 lakhs

5-10 lakhs Segmentation of the Car Industry

10-14 lakhs
14 + lakhs

14
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:

15
 • Variable marketing (VM): This included financing, maintenance,
exchange and other offers such as free accessories.
• 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 .

16
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

17
 Honda City - Value Vs Brand Ads

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

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

18
 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

19
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.
• The press advertisements taken into account comprised only of 40% of
the total advertisements)

20
 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
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.

21
• 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.

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:

22
 • 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

• After Sales service
• Maintenance cost
• Mileage

23
 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

24
 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
• DIY kits and customized maintenance plans rank second on desirability
features

25
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

• Standees

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

26
 • 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

• 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.

27
 • 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

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

28
 • 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
• 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

29
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.

• 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.

30
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?

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)

31
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?

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 Highly
Preferred Preferred
1 2 3 4 5
Price
Performance/Power
Brand name/Badge
Fuel efficiency
Safety
Image
Maintenance ease
Reliability/Consistent
performance
Trunk Space

32
 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
Large number of
service centers
Warranty/Guarantee/Fr
ee 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?

33
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)

Purchas Maintenance
e Price Cost Mileage Performance Reliability
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.

34
 Stylish Fuel Safet Reliability Performanc Comfor Status
efficienc y e t Symbol
y
Honda City
Hyundai
Verna
Maruti SX4
Fiat Linea
Ford Fiesta

21. What is your perception on Ford Fiesta?

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?

35
36