Ford Escape

Raquel Silva, Ryan Johnson, Casey Moroney, Yuanyuan Sun

Introduction

Car Research

• Customers’ perceptions & attitudes

• Features customers most value

• Figure out new car development

Data Collecting

• Perceptual Mapping Survey

• Conjoint Analysis Survey

internet television billboards newspaper other none0

5

10

15

20

25

30

35

26

31

7

13

0

Information Type

# of People

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

51%

36%

7%7%

20mph30mph40mph50mphFaster than 50mph

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

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

60%

31%

9%

0 to 1 2 to 34 to 56 or more

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

22%

40%

20%

18%

0 to 1011 to 2021 to 3031 to 4041 to 5051 or more

7%

20%

24%

49%

1-2 years3-4 years5-6 years7-8 years9 years or more

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

64%

36%male female

42%

58%chicagosuburbs

City or suburbs?Gender?

We may consider advertising to male commuter students.

Year in college?

7%

22%

71%

freshman

sophomore

junior

senior

62%

31%

7%

1 to 23 to 4more than 4

Gas fill ups per month?

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.

64%

36%

yesno

Employed?

31%

69%

yes no

In a relationship?

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

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

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

Brands

Total Variance Explained•Our TVE is 66%•This means we captured 66% of the

market •Industry standard for this statistical test

is 60%

Grand Map

Axis Names

Brand Preference

Clusters

Spaces & Gaps

Reposition

To Summarize…

Conjoint Analysis•In the consumer’s mind, the Ford Escape:

▫Is of poor value▫Is cramped▫Has a poor image

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

Spac

ious

Crowde

dLo

ud

Subd

ued

Flashy

Cheap

Spor

ty

Family

Car

Less

than

20 m

pg

Greate

r tha

n 23

Poor

Qua

lity

Runs F

orev

er

2-doo

rSU

V

Inter

cept

0.00

0.20

0.40

0.60

0.80

1.00

1.20

.31.33.22

.29.20.22

.44.46

.22 .26.31.22 .25

.34.22

.05

.28.22

.00.08

.22

1.00Perceived Value

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

Best CarComfortable 0.33Loud 0.29Luxury 0.46Rugged 0.3121-24 MPG 0.34Reliable 0.28SUV 0.22Total 2.23

Worst CarCrowded 0.22Quiet 0.2Cheap 0.22Family 0.22Greater than 24 mpg 0.22Poor Quality 0.052-door 0Total 1.13

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

Sound; 0.08

Image; 0.08

Space; 0.10

MPG; 0.11

Type; 0.20

Quality; 0.21

Prestige; 0.22

Feature Importance

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

Current Market Share

Ford Escape; 0.1695705978894

17

Honda Accord; 0.2555119927319

93Camaro, 0.26593963497082

5

BMW; 0.3089777744077

65

Market Share

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

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

Market Simulation-Escape Prestige marketed as “luxury

Ford Escape, 0.20608731113

1072

Honda Accord; 0.24794520547

9452Camaro,

0.253424657534247

BMW; 0.27397260273

9726

After Initial Marketing

Up 3.6%

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

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

Ford Escape; 0.20126826891

2826

Honda Accord; 0.23856425555

9225Camaro,

0.271683745477554

BMW; 0.28848373005

0395

Camaro Responds

Down 0.4%

CA Summary•Prestige is the most important feature to

the consumer•Even after Camaro reacts, total market

share is still up 3.2%

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

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