Ford Ka Assignment Team Segmentation Exercise Team 15 7653315 76355156 76012153 OU !arketing a""roach for #ord $a %& high'( 'ike'( to succeed )!O* succeed )!O* ) ) other a""roaches -./)U&. a""roaches -./)U&. of our due di'igence in strategica''( "ositioning #ord $a in a segment ith high "rofit "otentia' and stabi'it( of "reference 1. Paste the original segmentation matrix that one of your team members created for the original class discussion discussion of the Ford Ka case. It does not matter which team member’s you use, just choose the one that you think is t he most well done the team member does not need to be identified!. identified!. "ased on that segmentation matrix, indicate which segments! you had #lanned to target and why. $his will not be graded as #art of the assignment. $he #ur#ose of including including it is to ser%e as a #oint of com#arison com#arison as you answer answer the remaining remaining assignment &uestions below.
e i'' target the &t('ists rou" !arried, age 35460, income > 175$ because according to the ord )ssociation ask in .hibit 10, $a /hoosers ha8e a "ositi8e "reference for &t('ish "h(sica' design, eterna' a""earance for sma'' car, rather than the "ractica' functiona'it( %n addition, based on .hibit 6, those ho "refer enau't ingo the car that $a /hooser "ut on their to" 3 be'ongs to the age grou" of 35460, married, and ith a househo'd income of >175$
2 $he original case assignment asked whether different demogra#hic %ariables se#arate 'Ka (hoosers) from 'Ka *on+(hoosers) Follow the -P-- instructions for uestion /0 at the end of this document to run a cross+tab analysis on choice and inter#ret the out#ut by answering the following a. 2hich, if any, demogra#hic %ariables ha%e a relationshi# with choice 3x#lain what you find. e ha8e identified three 8ariab'es that ha8e a re'ationshi" ith choice9 !arita' &tatus, )ge, and %ncome hese 8ariab'es ha8e an im"act on choice in the fo''oing a(s9 4ssum#tion If the #ercentage %ariation is within close #roximity of 156, we ha%e chosen to recognise the %ariation as significant for consideration. 1 !arita' &tatus: )ccording to the data, )mong !arried "eo"'e 56; tend to be $a choosers 8s =72 *on4choosers, hereas among &ing'es 31 tend to be $a choosers 8s === *on4choosers he ga" beteen choosers 8s non4choosers, based on our assum"tion, indicates that this is a differentiab'e 8ariab'e !oreo8er, 121 of $a /hoosers identif( as i8ing together ith a "artner,? hich e identified as cou"'es ho share resources hus, e fee' it is a fair assum"tion to grou" $a /hoosers ho are married ith those ho are 'i8ing together, making u" a tota' of 6; of $a /hoosers 8ersus 555 of $a *on4/hoosers 2 )ge: e ha8e identified a strong 8ariance in the "ercentage of $a choosers 31 8s non4choosers 20@ for the age bracket of =04 ==, hich indicates that this bracket ma( be a strong differentiab'e 8ariab'e beteen $a choosers and non4choosers 3 %ncome: )mong $a /hoosers, e ha8e identified income to be a maAor inf'uence of choice, as those ho earn 250k and abo8e make u" =22 of $a /hoosers 8ersus 27@ of $a *on4/hoosers b. 7ow do the results com#are to your earlier o#inion based on your earlier analysis of the case b. 2hat im#lications do the results ha%e on the marketing #lan b hi'e these resu'ts are fair'( simi'ar to those of the origina' segmentation matri, the origina' ana'(sis re'ies on demogra"hic data from other cars ie enau't ingo and Beugeot 106, hich decreases the re'iabi'it( and accurac( he crosstab ana'(ses offer a more detai'ed and c'ear corre'ation beteen demogra"hic 8ariab'es and $a /hoosers and *on4/hoosers c -( identif(ing the abo8e demogra"hic 8ariab'es as ha8ing an im"act on choice, e ma( need to strategica''( "osition our marketing "'an to cater to these 8ariab'es )'though this marketing "'an offers much of t he same em"hasis as the one that ou'd ha8e "re8ious'( been designed based on our origina' ana'(sis, e are no in a "osition to focus on a much more concise segment )s such, e i'' need to market the #ord $a in a a( that offers no gender bias, so that it i'' resonate ith both ma'e and fema'e dri8ers #urthermore, in order to resonate ith "otentia' bu(ers in the identified age bracket, and ith the identified income bracket, a certain focus shou'd be made toards marketing the #ord $aCs 'uur( accessories U'timate'(, the marketing "'an shou'd focus on the more so"histicated bu(ers ho are com"ariti8e'( e'' "'aced financia''( than the a8erage car bu(er
3. $he original case assignment asked whether there are distinct attitudinal segments. Follow the -P-- instructions for uestion /8 at the end of this document to run 8 different cluster analyses and inter#ret the out#ut by answering the following a. 2hich of the three cluster analyses is the most useful to you as a manager In other words, which analysis gi%es you the clearest %iew of the market 2hy e ana'(Ded the three different c'uster ana'(ses b( co'or coordinating the sam"'es res"onses to gi8e us a 8isua' re"resentation of hat is im"ortant, and hat is not (Appendix A). e did this b( assigning a co'or to each of the three ranges: 143=; E Fisagree 354==; E *eutra' =547 E )gree his shoed us that the most usefu' c'uster ana'(sis to us, as managers, as the four4c'uster ana'(sis, as it segmented c'uster 1 107 sam"'e siDe from the three4 c'uster ana'(sis into to indi8idua' segments *e c'uster 1 and ne c'uster 3 of 75 and 32 sam"'e siDes res"ecti8e'( dis"'a(ing distinct "s(chogra"hic beha8iors9 for instance, the ne'(4created c'uster 3 demonstrates a desire f or high "erformance and dee" care for their car, something that does not a""ear in c'uster 1 #urthermore, e found the fi8e4c'uster ana'(sis to be of 'ess 8a'ue, as to c'usters 2 G 3 had o8er'a""ing "references both "ositi8e and negati8e, "re8enting us from identif(ing se"arate, and indi8idua' segments = $ake the out#ut from the 9+cluster analysis and inter#ret the out#ut by answering the following a. (reate a new segmentation matrix that summari:es the %arious #sychogra#hic characteristics and attitudes of each segment. b. Follow the -P-- instructions for uestion /9 at the end of this document to run a cross tab analysis on the 9 segments to identify choice #references and demogra#hic characteristics of each segment. ;se the results to add rows to your segmentation matrix that summari:e the choice #references and demogra#hic characteristics of each segment. c. *ame the segments using terms that you feel are re#resentati%e of each segment’s attitudes. P!#ER "!"& PRAGMATISTS FASI!"ISTA $RI%ER '!"F!RMISTS
ea*io+r
&afet( first
Ha'ue car image
Bractica'
#ashion conscious
o(a'ist
rend( st('e
.conomica' .n8ironmenta''( friend'( reat car as a commodit( not associate it ith identit( Urban users
*ot "rice sensiti8e /ar is "art of identit( &ho4off Urban users
Berformance dri8en Ii4&"ec minded *o "reference ith res"ect to siDe of car ess "rice sensiti8e
Ia8e basic needs Bractica' J /omfortab'e Foes not "refer sma'' cars
Ha'ue their car
*o need for se'f %dentit(
Femand Kua'it(
)nti4!ainstream Urban users
Marita, stat+s
*eutra'
*eutra'
*eutra'
Age
*eutra'
*eutra'
&keed in age grou"s =04==
Income
&keed abo8e %ncome >250$
&keed in 200$4 300$
*eutra'
&keed toards fema'e users at 615 &keed toards users >=0 (ears o'd &keed toards users ha8ing income 100$4200$
d. 7ow does your new segmentation matrix com#are to the original matrix you created for class discussion. In other words, how has the data changed your #erce#tion of segments he ne segmentation matri, hich as de8e'o"ed using a far greater number of data, differs substantia''( from the one origina''( created for c'ass discussion Ioe8er, the origina' segmentation matri as based on 'imited information based on to segments: $a /hoosers and *on4/hoosers he abo8e matri identifies 8ariations in the "s(chogra"hic beha8ior beteen the four segments, hich enab'es us to c'ose'( ana'(se the factors that are im"ortant to each segment hus, the abo8e matri has gi8en us a far c'earer idea of hat is im"ortant to each segment
<. (reate a table that e%aluates the four segments using the target market selection criteria learned in class. 2hich segments! would you target and why 'riteria e''4defined )ccessib'e /om"etitor %ntensit( &tabi'it( of Breference Brofit Botentia'
P!#ER $RI%ER Les Les
"!"& '!"F!RMISTS Les Les
PRAGMATISTS
FASI!"ISTA
Les Les
Les Les
!edium
!edium
Iigh
!edium
Iigh
Iigh
!edium
o
!edium
Iigh
Iigh
!edium
-ased on the segmentation matri and se'ection criteria tab'e abo8e, e decided to target segment 2 #ashionista to market the #ord $a car his segment is the most a""ea'ing in terms of "rofit "otentia' and stabi'it( of "reference e used a "rocess of e'imination to se'ect the most a""ea'ing market &egment = *on4/onformists, for instance, does not "refer sma'' cars as their choice and has a 'o stabi'it( of "reference, hich is indicated b( the statement that the( "referred a cu't car hus, this does not 'ook 'ike an a""ea'ing market for the #ord $a &egment 3 Boer Fri8er 'ooks a""ea'ing from a "rofitabi'it( "ers"ecti8e, but has a 8er( high com"etition intensit( as this segment is Kuite indifferent about car siDe9 thus other big car com"etitors ha8e an u""er hand in this market %n addition, this segment cares more about a carCs "erformance, and the barrier to "ro8ide simi'ar high s"ec, high "erformance? 8ehic'es is not high for com"etitors his u'timate'( 'ea8es us ith broader com"etitors in the market )dditiona''(, the market siDe for segment 3 is re'ati8e'( sma'' com"ared to other segments
he remaining to segments, 1 Bragmatists and 2 #ashionista, ha8e a 8er( different a""roach in terms of identif(ing themse'8es ith their car herefore, communication to these to segments i'' ha8e to be different, hich indicates that e ha8e to choose one or the other as our target market &egment 2 is more a""ea'ing as it is much 'ess concerned ith budget as 'ong as the "eo"'e from this segment can identif( ith the car he market siDe is a'so re'ati8e'( 'arge com"ared to the other three segments %n addition, segment 1 ou'd "refer to bu( a car from the same manufacturer, and the crosstab ana'(sis shoed that @13 of the segment had a'read( "urchased a car before his "oses a substantia' risk ith the assum"tion that a 'arge "ro"ortion of these "urchases ere not #ord mode's #urthermore, segment 1 has a higher "ro"ortion of $a *on4/hoosers, at 307 8ersus 167 in segment 2 =. 2hat did you learn from this exercise 2hat are the im#lications for how you a##roach segmentation in the future his eercise c'ear'( demonstrated that it is im"erati8e to kno hat the market demands in order to "'ace (our "roduct according'(, gi8ing it the best chance to succeed o do this, the co''ection of re'e8ant data is crucia', and must be fo''oed b( a 8er( thorough ana'(sis and s(stematic a""roach he c'uster ana'(ses "erformed on the #ord $a data a''oed us to c'ear'( segment the market, and strategica''( focus on a segment that e be'ie8e the #ord $a i'' resonate ith most he takeaa(s from this eercise for us as a grou" are that itCs not Aust data that is crucia', but the right data e 'earned that it is im"erati8e to gather re'e8ant data of the market and take a ste"4b(4ste" a""roach to segment the market his, in turn, i'' a''o us to understand hat the customer needs are straight from the source, rather than 'etting this idea be affected b( our on "ers"ecti8e
Appendix A
ed:
1 E 3=;
Le''o:
35 E ==;
reen:
=5 E 7
