Ford Escape

1. Ford Escape Raquel Silva, Ryan Johnson, Casey Moroney, Yuanyuan Sun

2. Introduction Car Research • Customers’ perceptions & attitudes • Features customers most value • Figure out new car development

3. Data Collecting • Perceptual Mapping Survey • Conjoint Analysis Survey

4. How do you find information?Consider television and internet advertisements to reach this market.

5. How fast do you drive?Speed and acceleration may not be the most important feature to college student drivers

6. How many people do you drive with?Smaller cars may be ideal for this market segment

7. How many miles a day do you drive?MPG may not be the most important feature since most students drive 11-20 miles per day

8. How long do you plan to keep your car?Durability and quality of the car is an important feature to our market segment. About half of the group plans to keep their car over 9 years

9. Gender? We may consider advertising to male commuter students.

10. Gas fill ups per month? Year in college? We should consider advertising to juniors and seniors in college. Although students drive about 11-20 miles per day, gas fill ups are frequent. We may try to keep MPG in mind to keep gas fill ups at a minimum.

11. In a relationship? Employed? Because our market segment is mostly employed and not in a relationship we can consider advertisements portraying the same type of customer.

12. Perceptual MapsOur perceptual maps will show how Ford Escape is perceived by customers.

13. Perceptual Maps • Attributes • Family Car • Durability • Good MPG • Reliability • Safety • Flashy • Style • Safe • USA-made • SUV • Poor Value

14. Brands

15. Total Variance Explained • Our TVE is 66% • This means we captured 66% of the market • Industry standard for this statistical test is 60%

16. Grand Map

17. Axis Names

18. Brand Preference

19. Clusters

20. Spaces & Gaps

21. Reposition

22. To Summarize…

23. Conjoint Analysis • In the consumer’s mind, the Ford Escape: • Is of poor value • Is cramped • Has a poor image

24. Features • Space • Noise • Prestige • Image • MPG • Quality • Car type

26. Statistical Quality • Data captured from 30 surveys, with an adjusted R squared above 30% • Regression analysis turned up a significance F of 0.02%, which shows that these results are not due to luck

28. Intercept • The intercept suggests a market entry barrier • A product’s parts must add up to at LEAST the level of the intercept in order to be considered by the target market • A high intercept suggests a mature market

30. Product Comparison • Ford Escape • Crowded 0.22 • Subdued 0.22 • Cheap 0.22 • Family 0.22 • <20 MPG 0.25 • Poor Quality 0.05 • SUV 0.22 • TPU 1.40 • Honda Accord • Comfortable 0.33 • Subdued 0.22 • Luxury 0.46 • Family 0.22 • >24 MPG 0.22 • Reliable 0.28 • Sedan 0.08 • TPU 1.81 • Camaro • Comfortable 0.33 • Loud 0.29 • Flashy 0.44 • Sporty 0.26 • <20 MPG 0.25 • Reliable 0.28 • 2 door 0 • TPU 1.85 • BMW • Comfortable 0.33 • Subdued 0.22 • Flashy 0.44 • Rugged 0.31 • 21-24 MPG 0.34 • Reliable 0.28 • Sedan 0.08 • TPU 2.0

31. Current Market Share

32. Market Share Calculations • Excape: • =exp(1.4)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)] • =17% • Accord: • exp(1.81)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)] • =25.6% • Camaro: • exp(1.85)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)] • =26.6% • BMW: • exp(2)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)] • =30.9

33. Market Simulation • Ford Escape • Crowded 0.22 • Subdued 0.22 • Luxury 0.46 • Family 0.22 • <20 MPG 0.25 • Poor Quality 0.05 • SUV 0.22 • TPU 1.64 • Honda Accord • Comfortable 0.33 • Subdued 0.22 • Luxury 0.46 • Family 0.22 • >24 MPG 0.22 • Reliable 0.28 • Sedan 0.08 • TPU 1.81 • Camaro • Comfortable 0.33 • Loud 0.29 • Flashy 0.44 • Sporty 0.26 • <20 MPG 0.25 • Reliable 0.28 • 2 door 0 • TPU 1.85 • BMW • Comfortable 0.33 • Subdued 0.22 • Flashy 0.44 • Rugged 0.31 • 21-24 MPG 0.34 • Reliable 0.28 • Sedan 0.08 • TPU 2.0

34. Market Simulation-Escape Prestige marketed as “luxury Up 3.6%

35. Market Share Calculations • Excape: • =exp(1.64)/[exp(1.4)+exp(1.81)+exp(1.85)+exp(2)] • =20.6% • Accord: • exp(1.81)/[exp(1.64)+exp(1.81)+exp(1.85)+exp(2)] • =24.8% • Camaro: • exp(1.85)/[exp(1.64)+exp(1.81)+exp(1.85)+exp(2)] • =25.3% • BMW: • exp(2)/[exp(1.64)+exp(1.81)+exp(1.85)+exp(2)] • =27.4

36. Market Reaction • Ford Escape • Crowded 0.22 • Subdued 0.22 • Luxury 0.46 • Family 0.22 • <20 MPG 0.25 • Poor Quality 0.05 • SUV 0.22 • TPU 1.64 • Honda Accord • Comfortable 0.33 • Subdued 0.22 • Luxury 0.46 • Family 0.22 • >24 MPG 0.22 • Reliable 0.28 • Sedan 0.08 • TPU 1.81 • Camaro • Comfortable 0.33 • Loud 0.29 • Flashy 0.44 • Sporty 0.26 • 21-24 MPG 0.34 • Reliable 0.28 • 2 door 0 • TPU 1.94 • BMW • Comfortable 0.33 • Subdued 0.22 • Flashy 0.44 • Rugged 0.31 • 21-24 MPG 0.34 • Reliable 0.28 • Sedan 0.08 • TPU 2.0

37. Down 0.4%

38. CA Summary • Prestige is the most important feature to the consumer • Even after Camaro reacts, total market share is still up 3.2%

39. Recommendations • Looking at both the conjoint analysis and perceptual map we see that the Ford Escape will change its reputation if they add certain attributes • Primary Attribute- Prestigious • In order to reach this target market, Ford should stress the attribute of prestigious

40. Learning Memo • Look at different competing car brands • Add more attributes • Price • Survey a different group of people • Loop and Lincoln park • Different ages/year in school