Q: write a problem statement that addresses the situation described in the case above and SWOT analysis with 3 points for each, and then discuss the alternatives and list 2 pros and cons for each.

Case:

As marketing manager at the Ford Motor Company of Germany, Mary is responsible for overseeing the positioning of Ford brands and services to specific target markets. Currently one of Ford's priority special markets is women, especially those 24 to 54 years old.

While many automotive marketing activities have traditionally targeted men, recently Ford has been proactive in targeting women, recognizing that women represent a large and potentially profitable target segment for car and truck sales. To date, however, men still represent a much larger purchasing segment than women, for both cars and trucks.

To facilitate the effective targeting of Ford products to Canadian women, Mary participated in various new product launch teams at Ford and was instrumental in the founding the Ford of Germany's Women Council and the Canadian chapter of the Women's Automotive Association International. She also helped build a product development/launch team consisting of only women. 100% of the members of this team were female designers and engineers certainly an advantage the business would have if targeting female car buyers.

In the late 2000s, management at Ford Germany realized that the company was not getting a large share of the women's market. Ford had captured almost 23% of the Canadian car market by 2008, but it had less than 15% share of the total sales to women. Mary s research of the market highlighted the importance of women consumers to Ford. Women influence 80% of all vehicle purchases. If Ford did not do a better job of understanding and targeting women, it was going to have a hard time improving the overall share of the market.

Although Ford is a recognizable name and one of the worlds most valuable automotive brands, according to Interbrand, a brand consultancy, its brand value fell 12% last year. And its competitors have more of a name in minivans. Currently, Dodge Caravan, is the #1 minivan brand and it is not idly sitting by to watch its market share erode. The Caravan had a 5 years head start on manufacturing and marketing minivans and rumours exist that its next generation has innovative product features designed for women in mind. Compounding Fords challenges is the fact that Canadian automobile sales have been in decline over the past year because of the economic recession brought on by COVID-19 impacts.

Mary identified some characteristics of the women car buyer segment. Those women who are involved in vehicle purchases, 44% are between the ages of 25 and 54 and half of them do not have a spouse. These characteristics had some important implications for Ford's target marketing activities. For example, communicating with these consumers by showing a happy nuclear family in ads, which Ford had done in the past, was probably not connecting with a large part of the segment.

Research also showed that women take more time than men to search for information before making a car purchase - six to nine months, compared to less than three months for men- and that women like to purchase from a company that they feel cares about customers and their community. With respect to the actual product, women car buyers are looking for a reliable car that is durable, offers good value, is easy to handle, and has a good warranty. Additionally, Mary was intrigued about the trend towards all-electric powered vehicles with some experts predicting a five-fold increase in electric sales in the next 5 years.

Mary felt there was an opportunity to target a specific vehicle - the Ford Northstar - to women. The Northstar made sense for a couple of reasons. First, 1/3 of all trucks sold in Germany were sold to women, and the majority of these vehicles were minivans. So, women, especially mothers, were interested in minivan products. Second, the Northstar made sense from an internal point of view.

Ford wanted to improve its performance in the minivan product category since it ranked fifth out of the five largest automakers in that market. The Northstar had achieved a Five Star safety rating, the top safety rating for any minivan. This was a potential selling point to mothers who were concerned for the safety of their children.

Mary had two options presented to her.

Option 1: the first option was to identify women, and mothers specifically, as the primary target market for the Northstar. This would involve changing every aspect of the marketing for the Northstar, starting with the design of the vehicle through to the ads and sales efforts, to meet the needs of mothers. With this option, it would be the first time that a woman would be considered the primary target segment for a Ford car or truck.

Option 2: The second option was to target the Northstar to both males and females. The design of the vehicle would not need to change so there would be less investment. Ford would communicate the Northstar on the basis of their brand name more than the functionality of a minivan. This option would be less risky for Ford.

What should Mary do?