Under Alan Mulally, Ford has been following the One Ford plan, leveraging its global assets and building vehicles that people wanted and valued. The One Ford plan embodies Ford’s global business strategy and it was time to bring it to India as a market where Ford had been present since 1995.
Tracing Fords’ India journey
Ford started in India through a joint venture company with Mahindra and Mahindra (M&M) with 50:50 equity participation. Mahindra Ford India Ltd was formed to assemble and distribute the company’s first product, the Ford Escort. In February 1999, Ford Motors increased its stake to 85 per cent and the company was rechristened Ford India Ltd. In 2005, Ford India became a wholly owned subsidiary of Ford Motor Company, after divestment of its crossholding portfolio with M&M.
During this period, the company launched many products including Ford Escort, Ford Fusion, Ford Endeavour and, most importantly, a midsize car specifically for the Indian market—the Ford Ikon. Ford Ikon was the first car which gave Ford a view of the attributes important to Indian buyers. There was overwhelming response in the Indian car market to the Ford Ikon, reflected in its excellent sales. It became the largest selling car in its category in the corresponding year. Ford Ikon proved that it is imperative to understand the special needs of the market in order to be successful.
With continued growth of core global platforms, the B segment was the most competitive for Ford to play a role in and ensure success in India. Ford remained committed to playing a pivotal role in the next phase of growth in India’s automotive industry, which is expected to grow up to 7 million vehicles by 2020.
Ford was also not new to the segment which had been outpacing the industry for almost a decade to come. Ford Figo was the first product with which Ford marked its entry into the volume-driven small-car segment. The Figo was a distinct product, targeted squarely at first-time car buyers, enticing them with an unmatched value proposition packed with convenience features uncommon to its segment.
The Figo aided Ford in capturing new customers, with a whopping 60 per cent of them being first-time buyers. Till today, Ford Figo continues to take the B growth story forward along with the other products like the Ford Fiesta which targets the enthusiast consumer and demonstrates Ford’s technological prowess.
Ford India had delivered a successful product in Figo but as the customers grew and aspired to move up the ladder, there was a need to grow along and elevate their experience by bringing a distinct product that stood out from the crowd and created a segment of its own.
The quest for differentiation
The challenges for Ford were diverse—continue to be a strong player in the B segment; spot voids in the already crowded segment; identify a product from its global portfolio without making it a force fit and, most importantly, understand the evolution of the quintessential ‘smart and aspiring customers’ from the B segment.
After copious amounts of coffee and numerous meetings spanning several months, Ford identified ‘Sameer’, a young, dynamic individual, more than thirty years of age, married with one child, living with parents in a very Indian set-up with an average monthly household income between ₹70,000 and ₹100,000.
Being a well-informed urban citizen who had benefitted from India’s economic growth, Sameer seemed interested in a vehicle that was fresh off the shelf, a head-turner and a reflection of his young, confident outlook. Sameer owned a hatchback, probably a Swift, an i20 or a Figo, and aspired to upgrade to a bigger, bolder vehicle that matched his growing social stature. His ideal vehicle would give him the freedom to commute hassle-free within the city and also head out for those perfect weekend holidays.
The challenge was to find a differentiator as a marketer! In the exhaustive time spent on research, Ford found out that most of the customers like Sameer were upgrading to three-box sedans even though they actually aspired to own an SUV. The research revealed that customers wanted a vehicle that offered the manoeuvrability and fuel economy of a compact car, with the practicality and robustness of an SUV. However, in absence of any suitable choices to suit their pockets, they settled for sedans.
SUVs were notionally considered off-roaders and introducing an SUV in the B segment seemed a contradiction in terms!
For a company looking for a suitable answer, the stakes were high but so was the confidence. Everybody knew that the time to challenge the quintessential notion of SUV had come!
Venturing into an all-new category
Ford turned to the One Ford plan and worked with global teams to develop a vehicle that best suited the needs of the target customer in India.
The brand EcoSport was created a decade ago in South America, where an innovative new SUV, especially suited to the compact-car market, was first introduced. The name combines the economical value this product offers customers with lifestyle appeal and sporting spirit that make it inviting and ready for work or play.
Now, with the second generation, Ford Motor Company was harnessing the power of One Ford to create innovative new global products to meet customers’ aspirations but not before they had been tested for safety, affordability and fuel efficiency.
But it could not be a force fit. As part of the product development process, Ford involved Indian engineers to conduct extensive tests and ensure that the vehicle was optimally customized to deliver on the aspirations of Indian customers.
Ford EcoSport was targeted at changing the definition of SUVs. As an essential SUV, Ford EcoSport had to enable drivers to discover new possibilities in busy urban lives. Its intuitiveness had to keep them connected without losing out on safety and convenience.
Positioning the Ford EcoSport: Capable, Contemporary and Compact
‘EcoSport has a tough, robust attitude that says “I can play with the big boys”,’ said J. Mays, group vice president, Design, and chief creative officer, Ford Motor Company, about the car. ‘But it also makes you want to play. EcoSport is perfect for crowded urban streets and it inspires you to seek adventure away from the city too.’
First introduced as a concept at the New Delhi Auto Show in 2012, Ford EcoSport took the world by storm. The new EcoSport had a completely modern look, shaped by Ford’s new global design language, aerodynamic honing for fuel efficiency, a short, raked hood and distinctive profile. It combined the agility and practicality of a compact car with high ground clearance, a command driving position and integrated lower-body cladding for robustness.
The product: Leading on firsts
There were several firsts in the product introduction. The all-new Ford EcoSport was all set to make driving addictive and intuitive with an array of smart segment-first features. The urban SUV was going to be the first in its class to offer Ford SYNC, the voice-activated in-car connectivity system co-developed with Microsoft. SYNC was also going to feature emergency assistance, which helps occupants place a call to the emergency services operator directly in the event of an accident. The Ford EcoSport was set to be the first-ever vehicle in India in this category of automobiles to offer this extremely advanced and potentially life-saving feature.
Even though positioned in the burgeoning B-segment (comprising hatchbacks and compact sedans) which made up more than half of passenger vehicle sales in India, EcoSport’s distinct styling, compelling design and a host of convenience features were seen as path-breaking by an audience spoilt for choice.
Taking fuel efficiency to a new high, the 1.01 125 PS EcoBoost engine—which was 20 per cent more fuel efficient than a traditional 1.6l engine and low on emissions—was also introduced for the first time in India in EcoSport.
Meeting the urban road requirements such as ground clearance (200 mm), Ford was set to redefine what SUVs stood for and made people hold on to their next car purchase for ‘the most awaited product of 2013’!
Promotion to manage the odds against
The Ford EcoSport was first unveiled at the 2012 Auto Expo and launched eighteen months later in June 2013. The EcoSport, given its compelling positioning and promise of
great technology, mustered a lot of interest from potential consumers and industry experts throughout this period. The biggest challenge at the time was to keep the momentum and interest alive considering the long gestation period between the unveiling and introduction of EcoSport in India.
With the launch of EcoSport still far away, Ford had a huge task ahead of it of building aspiration among Indian customers known for their informed, value-conscious and tough-to-please mindsets. The answer to the challenge lay in Ford’s marketing strategy which was closely guided by the media consumption habits of the Indian consumer.
‘Took the one less travelled by…’
While the market was still dominated by traditional media, the order was changing at a fast clip.
Instead of devising separate campaigns for traditional media and then moving to a novel medium, in a first, Ford reversed the process and started the campaign with a thrust on digital with EcoSport Urban Discoveries.
In essence, the EcoSport Urban Discoveries campaign was an initiative that gave people a chance to discover their cities like never before by getting behind the wheel of the all-new Ford EcoSport before its official market launch in India. EcoSport Urban Discoveries was a 360-degree pre-launch campaign across twelve major cities in India that set the stage for Ford EcoSport’s launch in mid-summer 2013.
The campaign went live on 1 March 2013, hosted online at www.ecosportdiscoveries.co.in. This website was the central content aggregation and dissemination platform—one that helped Ford capture all the consumer stories in a single place.
The platform allowed for rich interactions using maps, photos, videos, vote/follow and conversation features integrated with Facebook and Twitter. With this platform at its centre, the campaign to date has proved to be the largest socially led ‘reality show’ in the Indian automotive space.
The EcoSport Urban Discoveries roadshow kicked off with a unique domino topple installation on the theme of urban discoveries with 80,000 domino tiles toppling to create the EcoSport Urban Discoveries motif. The entire act was live streamed, further widening the scope of the audience.
Keeping it real!
Built around real people and their real experiences, the EcoSport Urban Discoveries campaign informed the audience that the Ford EcoSport was on its way and helped remove any negative sentiment around it.
Potential consumers were at the heart of the integrated campaign while building the narrative of the Ford EcoSport’s positioning as a desirable urban SUV that customers would want and value. The campaign had one broad objective—to create extraordinary buzz around the soon-to-be launched Ford EcoSport.
In yet another industry first, the consumer took precedence and the EcoSport Urban Discoveries campaign gave nearly 100 consumers the opportunity of driving and experiencing the Ford EcoSport ahead of its market introduction. The long-term aim was to establish EcoSport as the most desirable compact-SUV
Ford used a three-pronged approach, with earned, owned and paid media in every leg of the EcoSport campaign, till the launch of the car. This also included extensive outreach to media influencers, key opinion leaders, Ford evangelists and analysts.
The campaign was supported by outreach across twelve cities—Delhi, Mumbai, Bangalore, Pune, Cochin, Hyderabad, Kolkata, Chandigarh, Kochi, Ludhiana, Jaipur and Ahmedabad—covering the length and breadth of the country.
Adding to the word
Ford installed EcoSport Urban Hub in malls across these cities where visitors could touch and feel the EcoSport in an environment for which it had been developed. It was an urban SUV and an EcoSport Urban Hub offered customers the right urban environment to experience this great vehicle. With this campaign, Ford achieved over 16 million impressions on Facebook and Twitter along with a reach to about 5.2 million people.
In yet another first of its kind, the digital and on-ground engagement was further supported by an international media drive, which not only helped create great and credible content for the Ford EcoSport but also set the stage for the vehicle’s launch and subsequent bookings of a record 30,000 units within just seventeen days of its launch.
The international media drive had media representation from more than six countries. An engaging drive programme—Tech Deep Dive— gave Ford an opportunity to showcase the capabilities and technological prowess of its urban SUV.
The media shared its first-hand experience of driving the EcoSport through articles, tweets, Facebook statuses and videos. It worked like a charm!
The content created through the media engagement programmes helped Ford reach out to more than 270 million readers through articles and 82 minutes of broadcast time, resulting in 277,933,065 unique visitors on Ford India’s social channels. With over 1,850 tweets since the start of Tech Deep Dive, Ford EcoSport gained consistent exposure of around 100,000 impressions daily.
Consumers were at the heart of the campaign and Ford engaged them consistently through digital platforms. Ford has, over the years, been successfully connecting with its consumers on social media. Carrying the legacy forward, Ford’s faith in letting consumers drive the product through positive feedback worked wonders. Real people from every walk of life and their real experiences gave a new buzz to Ford EcoSport like none other. The strategy helped Ford generate conversations about the product. The interest and anticipation grew organically and was augmented in the traditional media to gain scale.
Appealing to the cost-conscious Indian
Apart from getting the product, promotion, positioning and target audience right, it was paramount for Ford to get the fifth ‘P’ of price also right for the EcoSport.
In a market like India, price might be the last stage but could prove to be the make or break. In addition to pricing, Ford had the arduous task of positioning EcoSport to target the heart of the market.
Starting late 2012, the differentiated tax structure made room for a unique category of compact sub-4 metre vehicles. The excise duty on sub-4 metre vehicles was reduced to 12 per cent, that is, half what was levied on large vehicles. The EcoSport perfectly fitted the sub-4 metre criteria and that gave the vehicle scope to be priced lower and compete at aggressive price points.
A lot was at stake from January 2012 till June 2013 when the final price was to be announced and Ford did not disappoint. With a commitment to delivering a great-looking product that packed in outstanding value, the Ford EcoSport India launch raised the bar in India’s fast-growing compact utility segment with its compelling value-for-money proposition, giving customers in the sub-4 metre segment a refreshingly new option.
Launching the product at a highly competitive price, Vinay Piparsania, executive director, marketing, sales and service, Ford India said, ‘EcoSport sets new standards in India’s SUV industry classification.’
And he was right as the product had redefined the segment. One of the main reasons attributed to the success of Ford EcoSport in India is its aggressive price tag, owing to which the car has found many takers in India. With the EcoSport, Ford perfectly mastered the art of pricing its vehicle according to market expectations.
A sub-4 metre SUV, Ford EcoSport really baffled competition, courtesy its competitive price and an entry-level tag in India. As a matter of fact, its launch pricing of ₹5.59 to ₹9 lakh (ex-showroom Delhi) perhaps gave all premium hatchbacks a run for their money!
As one of the most anticipated launches, the live streaming of the launch event trended for over twenty hours on Twitter. With most number of tweets from Delhi and Mumbai, three out of the top ten Google trends from India were about the EcoSport launch. The price announcement for EcoSport received over 6,700 likes, more than 800 comments and close to 1,600 shares on photos posted on Facebook.
Ford EcoSport was the #1 hot search on 26 June 2013 on Google India and became the most engaged auto brand in India on Facebook. The announcement appeared in 400 media publications the day after, with 90 per cent of the news reports carrying pictures, and in twenty-five broadcast stories amounting to one hour of a
irtime.
No signs of slowing down!
Since its launch, the high interest rates and rising fuel prices have dealt a body blow to car sales in India and top car makers have failed to push volumes.
However, consumers continue to be in love with the value proposition being offered by Ford EcoSport, resulting in both bookings as well as the waiting period continuing to grow despite the overall slowdown. Over 100,000 EcoSports were being driven on Indian roads as of December 2014, and more are to reach customers in the near future. Besides, they are being exported to various growing and mature markets. Setting yet another benchmark of success, Ford India’s most awarded urban SUV, the EcoSport, celebrated the 100,000 sales milestone in domestic wholesales and exports combined in August 2014 and is fast approaching 200,000—with 40 per cent market share and no discounts being offered since the India launch.
The recognition
Marketing successes are often celebrated through awards and recognition of which too Ford EcoSport has had more than a fair share. With over thirty awards and counting, Ford EcoSport has been one of India’s most awarded vehicles ever in its debut year—allowing Ford to relive the success first created by Ford Figo. This most awarded vehicle added yet another laurel to its achievements when it emerged as the highest ranked SUV in the J.D. Power 2014 India Initial Quality Study (IQS). The initial quality study (IQS), is considered a benchmark in the industry that measures new-vehicle quality after the first ninety days of ownership. Ford EcoSport registered least problems per 100 vehicles—an unmatched performance in its segment.
Awards are an important criterion to evaluate success and the EcoSport has been crowned the most awarded car in India. It has also won the prestigious Bloomberg TV Autocar car of the year.
Storm the Norm Page 18