Automotive Marketing

I was with my family this weekend at the Irvine Spectrum, a popular open-door shopping and entertainment center in Orange County, California. I happened to stumble upon the Ford Fiesta Lounge display, and of course couldn't help but inspect every inch of it, especially given my prior experience in experiential marketing at Mazda North American Operations.

As expected, the display was professional, and every aspect truly aimed at reaching that young and trendy customer Ford is seeking with the launch of the new Fiesta. Bright colors, upbeat music, use of Apple iPads throughout, and young attendants ready to answer any question you may have.

Although I had already seen the Fiesta at auto shows, somehow the car looked even more attractive in that setting, especially the hatchback in that bright green used in advertising. The trunk space was surprisingly roomy, and there is no doubt that Ford was trying to convey that the Fiesta is no cheap entry-level car, with the use of leather seats in both display cars, a feature not commonly expected in that category. That option, however, will typically take the sticker price closer to $20K, at which point you might as well consider an entry level Focus or base Fusion.

Will consumers buy into the new Fiesta and into small cars? Judging from the several product entries into that category, OEMs are betting consumers will. Polk forecasts that the small car segment will gain a growing share of the industry, with Fiesta joining the ranks of competitors Honda Fit and Toyota Yaris.

Will the Fiesta, and this type of automotive marketing, help Ford gain share in import-friendly territories such as California? Ford definitely hopes so. While Ford's share in the U.S. (retail excluding fleet) rose from a low of 10.6% in 2008 to a 12.8% year-to-date through May 2010 (Polk registrations), Ford's share in CA only grew by 0.8 pt share (7.4% to 8.2%) in the same timeframe. With California accounting for 16.9% of Toyota Yaris U.S. registrations (15.8% for Honda Fit), you can count on Ford to keep experimenting with initiatives such as the Ford Fiesta Lounge.

Posted by Stephan Gallon, PolkInsight Advisor, Polk (07.28.2010)