INSEAD the business school for the world

Selected Case

published: 01 May 2004

  • Topic: Marketing
  • Industry: Automobile
  • Region: Europe

Abstract:
In response to the changes in the European small car market, Ford decided to launch a second small car, the Ford Ka. The Ford Ka has already been developed, the production capacity determined, and the launch set for October 1996 in France. Before Gilles Moynier can get to the specifics of the marketing strategy, he must decide who the target customer for the Ford Ka should be. The (B) case reveals that Ford chose an attitudinal segmentation and presents initial sales results. The change in the segmentation approach made it difficult to assess the success of the launch and to determine what needed to be done next to continue to build the brand.

Pedagogical Objectives:
The Ford Ka case introduces students to the fundamental marketing problem of market segmentation and target selection. Ford’s situation does not fit the “textbook” model exactly and thus, the case is an opportunity for students to see how theory is applied in the real world. Ford’s problem is not unique. Often firms want to introduce an existing product into a new market. At a more detailed level, the case can be used to highlight the difference between segment formation and segment identification and the importance of considering implementation issues of a marketing strategy. The case also exposes students to typical market research tools used for market segmentation.

Keywords:
Segmentation, Segment Identification, Target Selection, Product Introduction in New Markets, Internal Marketing

Related:


Share