Ford Ka Market Research

1. Traditionally, companies segment the customers according to income and age, so that according to the segmentation, small cars target young people with lower income. But now, the market has evolved, and for consumer, the price is no longer the principle factor, they simply search more diversification.

The Ford Ka has been developed after series of environmental and demographic changes in late 80s and early 90s. First, there was an increase of traffic and many problems to park in the largest cities. Second, fuel prices remained very high in France, so that having small cars had the advantages of low fuel consumption, reduced toxic emissions and reduced the taxation that were higher for big cars. There was also a change in the average size of household that had declined to less than three, so that small cars could become a primary source of family transportation.

Furthermore, in those years, the number of women working increased in France, as well as women buyers who prefer small cars.

Finally, Ford developed the Ford Ka in order to compete against the newly launched Renault Twingo which had a dramatic success (within 12 months, the Twingo had gained a market share of 8.9% in France).

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