Ford Fiesta

Case 5: Ford Fiesta

Problem:

Ford is trying to reintroduce the Fiesta into the growing B-segment using a user-generated guerilla marketing campaign, “The Fiesta Movement.” Ford is concerned that it does not have enough control over the “Fiesta Movement” (FM) campaign, that the metrics to measure whether the campaign is a success, that the campaign does not have a far enough reach, and ultimately that it will not allow them to reach the sales goals for the Fiesta.

Solution:

Ford should see the campaign all the way through, while developing a advertising plan to target older buyers, who represent 2/3rd’s of B-segment buyers, when the Fiesta hits the market. The campaign has exceeded most benchmarks, especially in terms of changing the reputation of the brand, and actions like controlling the participants’ messages or taking cars from participants so there are more Fiestas available for test drives could quickly lead to backlash and bad PR, ruining the authenticity of the campaign.

Company:

Ford is one of the world’s largest auto manufacturers and distributors, with brands like Ford, Lincoln, and Mercury. In 2009 it has a 16.7% of the US auto market, trailing only GM and Toyota (by less than 1%). Ford was able to stay profitable through the recession and unlike the other “Big 3” US automakers, did not take any government bailout money despite an over-50% decline in sales the past 10 years. Ford is best know for its rugged trucks (F-series) and classic sports cars (Mustang), but is trying to re-enter the growing B size class segment, subcompact cars, in the US, with its’ Fiesta, a car that had been successful in Europe, but struggled when first introduced in the US in the late 1970’s.

Competition:

Ford’s competitor in the US market included GM and Toyota, as well as Honda, Nissan, Chrysler and many other small European and Japanese companies. In the B-segment, though, the main competitors were Toyota, Honda, and Nissan, who had just released a new,...