igor Posted September 5, 2007 Share Posted September 5, 2007 http://www.autosavant.net/2007/09/fords-car-swap.html Ford's Car Swap Another Marketing Campaign So Close, But So Far, From Perfection | By Igor Holas | 09.04.2007 | www.autosavant.net | Ford is introducing a new marketing and incentive campaign under the MTV-inspired “Swap your Ride” campaign: This follows what was quite an incentive-lacking summer for Ford and dreary sales results for August. In a summer when even the infallible Toyota and Honda joined the usual suspects of Chrysler, GM, Nissan and Hyundai in deep discounts and aggressive value-focused promotion, Ford stuck to their steady and relatively modest “Year End Clearance” program. In this program, the sweetest deals were $2007 off and 0% financing on trucks, well below competing offers from other automakers. Not surprisingly, then, Ford posted a 14% decline in August sales. Ford has a major image problem on their hands: almost half of the US consumer base will not consider Ford for their next vehicles; regardless of whether Ford actually offers a vehicle in the competitive group they are considering. Ford is trying to remedy the situation by careful use of rental fleets for their newly redesigned models, trying to trick potential buyers into getting behind the wheel of a new Ford, with the hope that they’ll enjoy the experience. However, it has been suggested that the only efficacious way Ford can turn around the shunning of the Ford brand among consumers is by replicating tactics Mark Fields successfully tested in Brazil; namely, paying consumers to test drive the new Ford vehicles. I was excited because I thought the “Swap your Ride” campaign was this kind of maverick new program, but unfortunately it is not. MORE AT LINK: http://www.autosavant.net/2007/09/fords-car-swap.html Igor Quote Link to comment Share on other sites More sharing options...
Anthony Posted September 5, 2007 Share Posted September 5, 2007 So let me get this straight...this guy is murdering Ford for not trying to rely heavily on rebates? The media just can't get their vices figured out. Quote Link to comment Share on other sites More sharing options...
Michael Reynolds Posted September 5, 2007 Share Posted September 5, 2007 ^ And that my friend is problem No. 1. People expect to walk into a Ford showroom and get a billion dollars off. If the writer wants huge discounts go visit a GM showroom somewhere. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 5, 2007 Share Posted September 5, 2007 No. Igor wants Ford to pay people some nominal amount (say $50) for taking a test drive. I don't consider that, in this market, to be a smart idea. Quote Link to comment Share on other sites More sharing options...
igor Posted September 5, 2007 Author Share Posted September 5, 2007 So let me get this straight...this guy is murdering Ford for not trying to rely heavily on rebates? The media just can't get their vices figured out. NO SUCH THING .... The COMPLETE OPPOSITE .. not HIGHER REBATES - INNOVATIVE Rebates / incentives .. In Brazil, Ford shot up the sales charts by PAYING (small amount, say $50) for people to come and drive their new models .. This got tons of people into the showrooms and a lot of the people bought the car. Alternatively, with a slogan like "swap your ride" you would think the rebates on the hood would be "competitive" - meaning only available to those that are swapping out core competition vehicles for Ford vehicles (Camry for a Fusion., Murano for an Edge etc) - this has worked well for Hyundai. Finally, with the tone of the marketing campaign the third thing Ford could have done is offer 24hour or longer test drives .. - literally letting you swap you car for a Ford for a couple of days so people can experience the new Fords. I SAID NOTHING about offering MORE Rebates . .I just want them to be INNOVATIVE about the campaigns .. And yes, that is my article - I am truly baffled of HOW you read out the "more incentives needed" mesage from the article . Igor Quote Link to comment Share on other sites More sharing options...
Michael Reynolds Posted September 5, 2007 Share Posted September 5, 2007 (edited) Unfortunately, for regular schmucks like you and me, the actual “Swap Your Ride” is nowhere near as exciting; the campaign simply offers $1000 cash-on-the-hood for most vehicles, nothing else. Sorry, but I think what is in bold sums that up kiddo. That sentence is very open ended. It could mean rebates, it could mean 'FREE SYNC FOR ALL', it could mean a naked chick/dude on the hood. Edited September 5, 2007 by Michael Reynolds Quote Link to comment Share on other sites More sharing options...
igor Posted September 5, 2007 Author Share Posted September 5, 2007 (edited) Sorry, but I think what is in bold sums that up kiddo. That sentence is very open ended. It could mean rebates, it could mean 'FREE SYNC FOR ALL', it could mean a naked chick/dude on the hood. I see ... oh well .. the "nothing else" was not meant to ADD MORE CASH ON THE HOOD .. it was about more incentive to actually visit Ford's showroom ... that is what I wanted .. oh well - I will not edit it now. Ford has no problem with take rate - if people come the the dealer, a good portion buys the car, but not enough people consider Fords for their purchase - so Ford's main concern should be the consideration rate - getting people into the showrooms .. and that is quite a tricky proposition - the three atrategies outlined in the article and my post above were all tried and reasonably successful in achieving the shopwrom traffice and increasing the brand consideration rate. Igor Edited September 5, 2007 by igor Quote Link to comment Share on other sites More sharing options...
bb62 Posted September 5, 2007 Share Posted September 5, 2007 No. Igor wants Ford to pay people some nominal amount (say $50) for taking a test drive. I don't consider that, in this market, to be a smart idea. Richard, I agree with you here. I don't think that people's resistance to Ford is the feel of their products at first glance (which is all a test drive will give you). I think that it is the very IDEA of driving a Ford that turns people off. Ford as a brand has been so tarnished that the younger generation wants nothing to do with it whereas only the older generations who haven't been screwed by Ford are still willing to consider the brand (and these people are dying off). Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 5, 2007 Share Posted September 5, 2007 So there's just no hope then. Well, last guy out turn off the lights. Sad, really, we didn't even make it to the end of September, 2007. Bummer, but your logic is irrefutable. The old folks that have bought the 'worst' Ford products (Pinto, 3.8L, etc.) 'haven't been screwed by Ford', whereas the younger generation won't buy a Ford product (except the Mustang). Yep. Best to just quit now. No point in carrying on. Can't do anything to change that. ---- The reason why I considered a paid test drive to be foolish is because it's likely to be thoroughly abused if generally offered, and unlikely to result in solid results if selectively targeted. Ford did do $50 gift cards about 3 years ago with the launch of the Five Hundred, and haven't done it since. I'm guessing because it really didn't work. Quote Link to comment Share on other sites More sharing options...
atomaro Posted September 5, 2007 Share Posted September 5, 2007 ---- The reason why I considered a paid test drive to be foolish is because it's likely to be thoroughly abused if generally offered, and unlikely to result in solid results if selectively targeted. Ford did do $50 gift cards about 3 years ago with the launch of the Five Hundred, and haven't done it since. I'm guessing because it really didn't work. The Free Ipod when I bought the 05 Escape was sweet. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 5, 2007 Share Posted September 5, 2007 The Free Ipod when I bought the 05 Escape was sweet. Key word: bought. I do like the idea Ford has used before of 'gifts' instead of cash (e.g. Dell with a Focus, gas grille with an F150, iPod with an Escape). It's something I'd like to see Ford do more often (or bundling options such as the Escape "Sun and Satellite" moonroof and sat-radio subscription). You have to offer the cash as well, though. Quote Link to comment Share on other sites More sharing options...
68Cougar Posted September 5, 2007 Share Posted September 5, 2007 When Hyundai was all but written off in this market, they put a great warranty on their cars. Ford should consider such a method to return traffic to their dealerships. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted September 5, 2007 Share Posted September 5, 2007 When Hyundai was all but written off in this market, they put a great warranty on their cars. Ford should consider such a method to return traffic to their dealerships. Yeah, we see what the Lifetime Warranty did for Chrysler's sales so far (down 8.7% in August). Ford has a relatively competitive warranty already across the board -- better than Honda's and Toyota's...and the model most people would likely most worry about the warranty on -- the Focus -- already has a 100K powertrain warranty. Quote Link to comment Share on other sites More sharing options...
Michael Reynolds Posted September 5, 2007 Share Posted September 5, 2007 When Hyundai was all but written off in this market, they put a great warranty on their cars. Ford should consider such a method to return traffic to their dealerships. And built better cars. You left that out. Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted September 5, 2007 Share Posted September 5, 2007 (edited) Ford was very much in the same situation in the early 60’s in Europe. Ford were talking about the same things globalisation & falling sales, its entire range was as dull as ditchwater and unexciting to drive. Ford of Britain introduced the stunning new Cortina in 1962, which became an industry legend. Ford of Germany introduced new Taunus, both models very much turned Fords fortunes around within Europe at the time, this all lead to a very exciting & creative time for Ford in Europe. Ford of Europe was then established, and launched the awesome Escort in 1968 that did not need I-pods & huge cash discounts to shift them, they just sold because they were so bloody exciting, it was the car folk wanted, not the gismos, discounts, huge discounts, & $50 handouts to test drive. Ford then launched the Mustang inspired Capri in 1969 a sharply dressed mix of sports car and family saloon, one in every four Fords sold in Europe in 1970 was a Capri. Ford used to produce some of the most stunning and evocative cars in Europe in this halcyon period of time, which killed off British Leyland who had a very boring bland range of dull cars. Ford need to start building exciting cars again if it wants to re-engage with buyers, and get them back into the showrooms again. Fords exciting new Fiesta concept will be launched at the Frankfurt motor show, so the seeds of recovery for Ford are just around the corner, and l don’t think Ford will need to hand $50 to test drive them, folk will naturally want to buy them if they are exciting. Edited September 5, 2007 by Ford Jellymoulds Quote Link to comment Share on other sites More sharing options...
68Cougar Posted September 5, 2007 Share Posted September 5, 2007 Yeah, we see what the Lifetime Warranty did for Chrysler's sales so far (down 8.7% in August). Ford has a relatively competitive warranty already across the board -- better than Honda's and Toyota's...and the model most people would likely most worry about the warranty on -- the Focus -- already has a 100K powertrain warranty. Chrysler has had other issues that Ford hasn't had to face, including being sold. Ford's warranty is competitive, but needs to be better than just competitive, just like their cars just can't be good enough but the best they can be. And built better cars. You left that out. That's implied. You can't have a great warranty and shitty cars for very long. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted September 5, 2007 Share Posted September 5, 2007 Chrysler has had other issues that Ford hasn't had to face, including being sold. Ford's warranty is competitive, but needs to be better than just competitive, just like their cars just can't be good enough but the best they can be. Yeah...Ford hasn't had to face any tough problems lately. Quote Link to comment Share on other sites More sharing options...
68Cougar Posted September 5, 2007 Share Posted September 5, 2007 Yeah...Ford hasn't had to face any tough problems lately. Now you know I didn't say they were problem free. Quote Link to comment Share on other sites More sharing options...
Michael Reynolds Posted September 5, 2007 Share Posted September 5, 2007 Chrysler has had other issues that Ford hasn't had to face, including being sold. Ford's warranty is competitive, but needs to be better than just competitive, just like their cars just can't be good enough but the best they can be.That's implied. You can't have a great warranty and shitty cars for very long. I'm not talking quality, I'm talking cars that were actually competitive. You can slap a 3,000,000,000,000,000 mi/Till Hell Freezes Over warranty on something that people don't want and they will STILL keep on walking. Peace of mind only goes so far. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 5, 2007 Share Posted September 5, 2007 I'm not talking quality, I'm talking cars that were actually competitive. You can slap a 3,000,000,000,000,000 mi/Till Hell Freezes Over warranty on something that people don't want and they will STILL keep on walking. Peace of mind only goes so far. 100 percent agreed there mike.....anyone that bases their buying decision on a warranty deserves what they get.......along with a Fugly wife Quote Link to comment Share on other sites More sharing options...
LincolnFan Posted September 5, 2007 Share Posted September 5, 2007 100 percent agreed there mike.....anyone that bases their buying decision on a warranty deserves what they get.......along with a Fugly wife Note to self: don't cheat with a wife whom her husband drives a Hyundai/Kia. Quote Link to comment Share on other sites More sharing options...
68Cougar Posted September 5, 2007 Share Posted September 5, 2007 100 percent agreed there mike.....anyone that bases their buying decision on a warranty deserves what they get.......along with a Fugly wife You guys are funny! I'm not saying sell cars on warranty alone. That would be foolish, and poor business sense. Quote Link to comment Share on other sites More sharing options...
Michael Reynolds Posted September 5, 2007 Share Posted September 5, 2007 I know you aren't, but you are advocating that a segment leading warranty is going to make a big deal. Quote Link to comment Share on other sites More sharing options...
ANTAUS Posted September 6, 2007 Share Posted September 6, 2007 One of my friends called me because she thought the husband was cheating on her. Here the poor girl was trying to think of hiring an investigator to follow her husband, so she calls me for advice. I tell her "Wait till he goes take a shower, and go into his car, into his Navigation system, and see the last addressed he visited". Within 3 days later...BUSTED. She literally caught him in the cheatee's swimming pool skinny dipping. I'm "shocked" she didn't throw the Radio into the swimming pool and be done with it. So back to bad decisions and ugly wives.... Quote Link to comment Share on other sites More sharing options...
Former Ford ZM Posted September 6, 2007 Share Posted September 6, 2007 Focus and a Dell was a HORRIBLE PROGRAM! That was during my time. Do you have any idea how many people did not get their computer? I was dealing with that for months after the promo was over. Many dealers just ended up buying a computer on their own dime and giving it to the customer. A testdrive offer doesn't do much either I think. And those are nothing new. I'd actually get some mailings, send a roommate over to the dealer, and then split the cash or giftcard. But you guys hit it on the nose, us Gen X'rs don't consider Ford. I can count on my hand how many I know in my social circle have purchased a new Ford since their days of driving the handme down beater as a highschooler or college kid. Quote Link to comment Share on other sites More sharing options...
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