Ford Ka: The Market Research Problem

The Ka aims to compete against Renault Twingo in the market, where the cost estimates corresponded with Ford’s overall objective to gain market share. Ford’s faces a major challenge where they are unable to grasp an understanding of customer behaviour and preferences as the Ka was created prior to gaining an accurate analysis of consumer needs. They have found changes within the market including environmental (rising congestion and fuel pricing) as well as demographic (increase in female drivers). Ford is unaware of the potential in targeting particular segments in regards to characteristics circling upon gender or attitudinal segmentation, which arose from market research and analysis of consumer behavioural and attitudinal trends.

Customers who did not find the Ka beneficial rated the Peugeot 106 and Volkswagen Polo higher, thus allowing Ford to understand who their main competitors are. In response to this, deploying a segmentation strategy now that the company has gained a thorough understanding of their potential and existing customer base, where gender and attitudinal segments can be potentially targeted towards. Deploying a gender segmentation will be cost efficient, and will create a diversified product in the eyes of consumers. Attitudinal segmentation is highly costly where multiple segments will be targeted towards and does not present a long term solution. In support of gender-based segmentation, market research found that 38% of drivers are female and a majority of females prefer the Ka. Therefore, the Ka should be positioned as a luxury small female car which is responsive to environmental changes.