The Product Life Cycle of the Ford F Series
Q1. Explain how Ford's product/service (new car sales) is positioned in the market. Create a positioning statement for the product/service and explain its rationale
Ford’s service is positioned in the market towards capturing truck and SUV sales. While the Mustang is still in production, Ford has ended the Taurus line and is slashing focus on sedans. Focus from here out for Ford will be on SUVs, EVs and trucks. The positioning statement for Ford is thus: The auto market is transitioning away from sedans towards larger vehicles (SUVs and trucks) and towards energy-efficient vehicles such as EVs and hybrids. Ford’s farewell to the Taurus, a much-respected model for many years is emblematic of the shift in directional thinking. The Expedition, Bronco and F-150 will be the new face of the Ford Motor Co. for the years to come.
The rationale for this position is that the market has changed and the demand has moved away from sedans towards bigger and better vehicles. The sports car niche remains, which is why the Mustang is still a popular product, but the SUV market has risen and the EV market is now on the rise. Ford trucks are still among the most popular in the truck market. Ford F-Series trucks trail only Chevrolet and GMC truck sales and still outpace Dodge Ram truck sales (Luft, 2020).
Q2. Discuss techniques of building brand equity. Which brand elements would be most useful in differentiating Ford Motor CO's product/service from competitors? Explain the brand promise of the product/service
Building brand equity is important if a company is going to drive consumer sentiment (Farquhar, 1989). Since brand equity represents the commercial value that a brand possesses, it is crucial that the company pay attention to the brand and how it shapes customer perceptions. The value of the brand is all in the perception of the consumer. Thus, if the company appeals to the consumer’s interests, it will be seen as having...
The F-Series truck is widely esteemed as one of the most respectable and dependable trucks on the market. The Mustang is known for being a quality, affordable sports car. The Ford Expedition and Bronco are both long-running models that are seen as having quality. Ford should leverage its history, which is something new brands cannot do. Ford goes back a century. New manufacturers like Tesla are building on hype. Ford can show that it is the real thing with a real history to prove it. The brand promise of Ford is “Go...…convenience, shopping, specialty, or unsought good? Select one type and omit the others
The Ford F-Series product is classified as specialty since it tailors to a certain demand among consumers—the need to be able to haul materials with a machine. The specialty product
classification is one in which the consumer is willing to make a special buying effort (Enis & Roering, 1980). The Ford F-Series is certainly that. A consumer must be willing either to take on a significant load of debt to purchase one or must save up for years in order to make this purchase. It is not a small decision because it is a costly product to buy.
However, as Tienhaara, Ahtiainen and Pouta (2013) point out, consumers buy specialty goods because they perceive them to have special value, and this is where Ford’s lasting brand equity comes into play. The company’s brand is one that appeals to generations of consumers because it has been around for generations and people trust it. It is literally part of families. Thus, people perceive a value in the F-Series that they do not see in other brands that they are not loyal to. A truck by Toyota or by Tesla does not have the same appeal because it has not been around for decades and decades the way the Ford brand has been around. Ford’s specialty product is special because people perceive Ford to be…
