Ford is a fast-growing company that has been in the market for over 100 years. She has won the hearts of buyers worldwide, as she is constantly improving, being responsible for the quality and the following technology. Scottsdale has several official distributors that provide car models for any customer. They have both alternative models from recent years and used older cars of a lower price segment.
What You Told Us
There is competition in the automotive market, people most often buy cars on the Internet, and the branch’s task is to attract traffic to its website and showrooms. According to a study, people come to a car dealership to see or test a car when they leave 2-3 selected options for themselves. Millennials are the best buyers for several reasons. It is a generation of young adults born from 1981 to 1996. The youth have little trust in the brand, and some continue to live with their parents and listen to their advice. For millennials, the salon offers special funding conditions and helps with the payment of student debt. Additionally, personal assistance is offered in learning how to manage a car. If the company can gain their trust, youth will become lifelong customers and testimonials that will attract new buyers. The dealership’s sales target is 100 cars per month. The conversion rate is about 60%. Hence it is needed to interest 165 potential clients. Standard advertising methods are not very effective. Therefore the company decided to expand them to cable and regional television, radio, and social media in a complex.
Each sales channel will hold a competition for its target audience, with the major prize for a Ford SUV for the one who will try to win the most.
Industry Conditions – National Data
The Global Economy went through a crisis because of the Coronavirus pandemic in 2020, causing a national decline. The demographic shift was 0.35% (Frey, 2021). This number is tiny concerning expected population growth, which has not been the case since 1900. America is one of the fastest-growing developed countries because of the baby boom after World War II and the immigration rise from 1980 to 1990. According to the study, Ford sales are high, with SUVs and Trucks dominating positions. When looking at the best-selling segment, new cars continue to dominate overused vehicles. According to NADA Data, ad spending for 2020 is $7.48 billion, down from previous years (2020). At the same time, the price of advertising for one car sold is $582. It should be noted that the level of the target audience by age increased by 11% (Frey, 2021). In other words, there are more millennials, which means a higher chance of a sale. The company needs to assess the state of the market, advertise budgets adequately, and require the target audience to generate sales ideas.
Local Market Conditions
In the local market, there is high competition between offline sales outlets. Buyers have many alternatives and choose up to 2-3 models on the Internet, which adds to the competition. Potential clients come to the salon only to sit in the car or take a test drive. Furthermore, millennials have an alternative like Uber and Lyft, which they use when they need to go somewhere. It has become more challenging to attract customers as the economy has fallen because of the coronavirus, and some people have lost their jobs. However, Scottsdale has a low unemployment rate and is trying to maintain its position during the crisis (City of Scottsdale, 2020). The median household income is $ 60,931, allowing people to buy medium and luxury cars (City Data, 2020). Many millennials continue to live with their parents and listen to their advice. Over the past year, there has been a demographic shift, and the population has become slightly younger, with an average age of 34.4 years (City Data, 2020). Additionally, people have low levels of trust and little brand loyalty.
Some of the Local Market Conditions are appropriate for the potential clients of the salon. Age, household income, and employment are favorable factors. The rest of the elements are harmful, which you need to work on and win clients over to your side.
Best Customer Description
Millennials are young adults between the ages of 25 and 39. They are the best buyers because they still live with their parents, which means they don’t have to pay for the house. Simultaneously, men still have debts for their studies; therefore, special funding programs with help are necessary. The adherence to sitting on social networks is inherent in all our potential clients, and they are to some extent dependent on Instagram and Facebook. Hence the company can exert influence through these channels. Older reps are more likely to watch TV and listen to the radio, so these methods are also crucial for advertising distribution. Hobbies are outdoor activities and mountaineering, for which millennials travel to the nearby Mazatzal peak mountain range. They need a car with many technical features for longer journeys that Ford is constantly adding to new vehicles.
Idea
We need to get millennials into the dealership with social media help. The idea is to organize an auto show for every potential buyer to appreciate the cars of interest and make the right choice. Besides, show attendees aged 25–39 will be provided with one-to-one instructional help and assistance with student loan repayments. To ensure good sales, it is necessary to spread this information to as many of the target audience as possible, for which we will use social media. The organization of contests on Instagram and Facebook with reposts and comments will provide popularity. It is necessary since the algorithms of these social networks promote posts to the recommended ones if they are active among the subscribed audience and leave comments on the last five posts on the Ford Instagram/Facebook page. The competition’s major prize is a Ford SUV, and the winner will be the one who attracts the most visitors to the show. Each participant will be given a unique code by which guests will be registered for the offline event. The same competition should be organized on television and radio for the older generation with a celebrity. A famous personality will inspire trust, and the desire to win an SUV will force people to attract new potential buyers. If a person comes to the event, he will be more supportive of the purchase since he has already taken a step toward the dealership and spent time and effort. I believe this idea will work, as the Ford administration will save money on traditional advertising that people may ignore and attract new potential buyers. As a result, the price of a raffled car may be even less than the standard advertising costs.
References
City of Scottsdale economic development department. (2020). Economy report. Web.
Frey, W. H. (2021). What the 2020 census will reveal about America: Stagnating growth, an aging population, and youthful diversity. Brookings. Web.
Manzi, P. (2020). NADADATA overview. Web.
Phoenix, Arizona (AZ) profile: population, maps, real estate, averages, homes, statistics, relocation, travel, jobs, hospitals, schools, crime, moving, houses, news, sex offenders. (2020). City-Data.Com. Web.