Assignment Paper

Professor John Deighton and Research Associate Leora Kornfeld prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2011, 2012 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545- 7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.

 

J O H N D E I G H T O N

L E O R A K O R N F E L D

 

The Ford Fiesta

Writing in the Wall Street Journal just ahead of the launch of the Ford Fiesta, Dan Neil rhapsodized about the car’s styling, the sweeping curves of the body panels, and the crazy, oversized quad headlamps. “Built like a Russian gymnast,” he declared. “In this segment, it’s hard to build anything that doesn’t look purely twee and adorable (Honda Fit or Chevy Aveo), so even a trace of malice, as the Fiesta has, amounts to car-styling genius.” He concluded, “If you’ve ever rented a small American-brand car overseas and thought “Why can’t we get this back in the States?”—well you

can.”1

“Do Americans think that? I don’t think so,” said Chantel Lenard, group marketing manager for Global Small Car and Midsize Vehicles for the Ford Motor Company. “American brands are not even on the shopping list. The Ford name on a small car doesn’t help it one bit—in fact, it’s a liability. Ford is associated with F-150 trucks.” Lenard reflected on the fact that most of Ford’s customer base, and the traffic in its dealerships, were white, suburban family men. The target customers for the Fiesta would be very different. They would be much more ethnically diverse, they would include women and men, and they would tend to be city dwellers. And most significantly, they would be younger than Ford’s current market. The Fiesta would be targeted at people under 30, known to demographers as “millennials” because they had come of age after 2000. Marketing to millennials under the Ford name would be a challenge.

But Lenard’s team thought it had found a way to connect with its target: put the marketing campaign in the millennials’ hands. People in this demographic were heavy users of social media, and had more faith in what their friends said than what advertisers said. So why not find 100 millennials with large online followings, import 100 Fiestas from Europe (where they had been on the market for some time), and lend them the cars with an invitation to create and share content based on their adventures? The result could be called “The Fiesta Movement.” Not Ford’s Fiesta Movement, but a movement whose energy came from the Fiesta drivers themselves.

At the beginning of July 2009, two months after the start of the Movement and with less than a year to go before launch of the Fiesta, the team was evaluating the Movement’s progress. Was it on track or were mid-course corrections needed? Unquestionably, the campaign was popular with Web marketing pundits, who liked that it was enabling a social network to write a large part of the brand’s narrative. As one put it, the marketer was working with contemporary culture instead of against it.2 Inside Ford, however, there were reservations. Ford’s legal counsel said it was against every customary, prudent way of doing things. And Ford’s senior management was asking tough questions. Was the campaign team abdicating responsibility for the brand’s messaging? What if a car

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broke down and the driver turned negative on the brand? Was the Web buzz going to translate into sales when the car was launched? Some of the bloggers were not even car owners or potential car buyers. There had been more vehicle damage than expected, because some of the big-city bloggers had not driven for a while and their driving skills were rusty. Fortunately there had been no injuries, but there had been an unusual number of flat tires, dents, dings, and near misses. And some of the content had been racier than Ford found acceptable. The bloggers’ love of creative freedom, extending to profane language and bared flesh, taxed Ford’s sense of what was proper for a large corporation.

Chantel Lenard asked her team for advice on two topics—“Control and metrics.” She asked them, “What are we doing to control the messages and activities of the Movement, and is it enough, too little, or too much? What do we need to measure to decide whether it is performing?”

The Ford Motor Company in 2009

The Ford Motor Company, based in Dearborn, Michigan (a suburb of Detroit), was one of the world’s largest automotive manufacturers and distributors. Its brands included Ford, Lincoln, and Mercury. In 2009 the company held a 16.7% share of the U.S. automotive market, edged out only slightly by General Motors (17.6%) and Toyota (17.5%), and substantially ahead of Honda (10.2%),

Nissan (9%), and Chrysler (8.7%).3 The remaining 20% of the U.S. car market was composed of smaller European and Japanese brands. Even though Ford was the most profitable of the U.S. automakers, and had posted positive numbers during the worldwide economic turbulence of 2008

and 2009,4 in the 10 years leading up to 2009, sales of Ford vehicles were down by over 50% (see Exhibit 1).

Ford was best known for its line of rugged trucks, such as the F-series, and Sport Utility Vehicles such as the Explorer, as well as for its classic sports car, the Mustang. The F-series had been the most popular vehicle in the U.S. for 23 years and Ford’s best-selling vehicle in the truck category for 33 years.5

Ford was also known as the only one of the American “big three” automakers that had not filed for bankruptcy or received government bailout money during the 2008 international economic downturn. The global economic crisis had hit the automotive sector hard, and both General Motors and Chrysler had received federal government funding to stave off creditors.

The B Segment

In the North American automotive industry, vehicles were categorized by their interior volume. Vehicles less than 85 cubic feet in volume were classified as A or micro cars; those with 85 to 99.9 cubic feet were called B or subcompact; those with 100 to 109.9 cubic feet were C or compact; and those with 110 to 119.9 cubic feet were CD (see Exhibit 2). The Ford Fiesta was a B segment car. The B segment accounted for 437,000 of the 8 million new passenger vehicles sold in 2008, and was forecast to grow to 713,000 by 2012.

In 2009, American cars in the B segment were priced just below $10,000 at the stripped-down, economy end of the scale and around $18,000 at the fully featured, high end of the scale. B segment cars tended to be bought either as entry-level vehicles by young people upon landing a first job, or by older buyers who prized fuel efficiency and compactness. About two-thirds of buyers were over age 40. (See Exhibit 3 for the full age distribution.)

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The younger B segment demographic was known as millennials. In the U.S. this group had been growing fast, from 14% of the U.S. driving population in 2004 to 28% in 2010.6,7 They were culturally diverse at 19% Hispanic, 14% African American, 4% Asian, and 3% mixed race or other. The

Caucasian proportion, at just under 60%, was the lowest it had ever been.8 Growing up in the 1980s and 1990s, this group was known for its extreme facility with communications technology. Activities such as text messaging, tweeting, posting pictures, videos, and status updates on social media websites were not thought of as “using technology,” but rather as normal parts of life and socializing.

Competition in the B Segment

Toyota and Honda, Ford’s biggest competitors in the subcompact car space, had the advantage of never having left the B segment market, whereas the Fiesta, Ford’s best known subcompact, had been absent from this market in the U.S. since 1981. A subsequent Ford subcompact was the unpopular Aspire (1994–1997), immortalized as one of the world’s worst cars in a 2007 book of that name.9 While Ford focused on other vehicle classes, Toyota and Honda maintained strong presences in the subcompact market in the ‘80s, ‘90s and 2000s, and Nissan introduced a new B segment entrant in 2007 with its low-priced offering, the Versa. (See Exhibit 4 for recent sales figures in the B segment.) As a result, Ford was generally not in the consideration set of young buyers looking for small, economical vehicles.

The reputation of Japanese cars with consumers was largely positive at this time. Such cars were considered high quality, a good value, and environmentally friendly (see Exhibit 5). By contrast, many people associated American cars with a suburban, conservative lifestyle, and a lack of style. And then there was the taint of operational failure that had made the government bailout of the auto industry in 2009 a necessity. While Ford was not one of the companies that had participated in the program, the stigma of U.S. cars as a class suffered.

History of the Ford Fiesta

The Ford Fiesta had been designed for Europe in response to the 1973 oil crisis and the introduction of smaller, front-wheel-drive vehicles by competitors Fiat and Renault. The Fiesta was a big hit from its launch in 1976 and for the next 30 years, setting sales records and winning awards worldwide.

The exception to this global success was in the United States, where Ford sold Fiestas from 1978 to 1981 but then withdrew them, finding them too small and cramped for American consumers. The car’s place in the Ford U.S. line was taken by a larger Europe-designed car, the Escort, which was better suited to young professionals and those with small families. The American public took to the Escort with zeal. It was the top-selling U.S. car for most of the 1980s, buoying Ford to the position of

the world’s most profitable auto maker.10

At the Frankfurt Motor Show in September 2007, Ford staged a dramatic unveiling of the Verve, its concept car that would eventually become the company’s new B segment car. A blogger for the auto review site Jalopnik wrote: “The Ford Verve Concept was designed for the generation that grew up with mobile phones . . . [it] introduces a completely new aesthetic—a new approach to the form and function of interacting with underlying technologies . . . Every button and switch was crafted

with the kind of minute attention to detail that characterizes good mobile phone design.”11

Ford was optimistic that there would be an American market for the new Fiesta. Indeed, the new Fiesta would bear little resemblance to its “econobox” ancestor from the 1978–1981 era. At just over

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160 inches (4 meters) in length, the Fiesta was, to be sure, a very small car. It would therefore have to make up with style what it lacked in size. The sprightly little vehicle would be made available in eye- catching colors and offer high-tech features such as keyless entry, seven shades of ambient lighting, and the Ford Sync in-car communications and entertainment system—extras traditionally associated with cars at higher price points.

In early 2008, Ford began to prepare the U.S. consumer to think differently about Ford with a campaign it called “Drive One.” A series of short 15-second spots was created that showed actual owners sharing a single, favorite aspect of a Ford. The spots were unscripted, with a guerilla-style documentary feel, and ran on websites, social media, and television. For example, a driver named Kristen said, “Everybody loves when they come in at night that I can change the color of the lighting.” David shared the joys of the car’s keyless entry, particularly, “If you’re wearing skinny jeans and don’t want a big clump of keys in your pocket,” while Marissa told viewers about the “Awesome little sensors” in the back of the car that help her swerve around things like trash cans when she’s backing up. “Thank you, car,” said Marissa in the ad.12

The Idea

The Ford advertising account in the United States was one of the industry’s largest, and, to service it, the global communications holding company WPP assembled a group known as Team Detroit from among its subsidiaries: three advertising agencies—JWT, Y&R and Ogilvy; the direct marketer Wunderman; and the media buyer Mindshare.

Lenard asked Connie Fontaine, manager of Brand Content and Alliances at Ford, to join her with Team Detroit as it brainstormed the Fiesta launch. Fontaine’s job at Ford was to identify partners and programs to give visibility to Ford in places other than car dealerships and test drive events. She had led a number of Ford’s more imaginative media partnerships including its sponsorship of the top- rated television show American Idol, and its “Warriors in Pink” initiative, which raised awareness and funds for breast cancer research.

Ford wanted a 9% share of unit sales in the B segment for Fiesta, yet Lenard and Fontaine agreed from the start that their target would be the 11% of B segment drivers in the millennial age group, reasoning that it would be easier to move up the age demographic curve than down. Yet millennials were notoriously difficult to engage. Fontaine felt that if the company was going to successfully speak to millennials, known for being quick to parody attempts to co-opt youth culture, then it had to go further than just partnering with youth-oriented movies, products, and celebrities.

The automotive industry had tried innovative marketing approaches with some conspicuous failures. Jim Farley, Ford’s group vice president of Global Marketing, recalled an episode of the Oprah Winfrey television show in which she gave a car to every member of her studio audience. “I was worried that we would do what Pontiac did with Oprah, where it would turn into a giveaway and we wouldn’t get anything out of it.”13 Another unsuccessful attempt at innovation had been Chevrolet’s 2006 invitation to the public to create ads for the Chevy Tahoe. In partnership with NBC television’s The Apprentice, viewers were invited to produce their own ads for the new Chevy Tahoe, using tools posted on the website. What happened next was not what execs at Chevrolet or their ad agency had in mind. Thousands of videos critical of the company began to circulate on the Internet almost immediately, implicating Chevrolet and its line of SUVs in everything from melting polar ice caps to the war in Iraq.

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The germ of the idea that emerged from the deliberations of Team Detroit and Ford was: Ford would literally hand over cars, and figuratively hand over its brand, to 100 drivers, called Agents. In exchange for six months of all-expenses-paid use of a new Fiesta, the selected drivers would be asked to use social media to share their Fiesta experience with friends and followers. They would blog, tweet, post photos to Flickr, and make YouTube videos, all of which would move organically through their social networks. The idea was given the name Fiesta Movement.

As the team began to expand on the idea and sell it internally, they had to respond to doubts from skeptics. There were no models in showrooms, one pointed out. What was the point of promoting a car that could not be purchased for another year? Another noted, “Even if we could guarantee that the drivers will be wildly entertaining, it wouldn’t be enough to generate the impact Fiesta needs.” There was concern that Ford could not control what the drivers said about the cars and what they did with the cars. There was a string of “what ifs.” What if there was a serious accident, what if the cars

were involved in criminal activities, what if the drivers failed to return them?14

In response, the team emphasized the magnitude of the task they faced. The launch could not rely on the coattails of the Ford brand, linked in buyers’ minds with F-150 trucks, Mustangs, wheat fields, and country singers, nor on Ford’s icon, the blue oval. It had to build new imagery, communicated with Agent-generated content, depicting people engaged in relevant, useful, and entertaining activities. The team wanted the Fiesta to become part of the national conversation about Ford for a new generation. The team needed to make the Fiesta brand, and with it the Ford brand, desirable and not merely defensible. They hoped to create a car that America wanted so badly that it would be launched with a waiting list, as had been the case with such launches as the Prius, the Smart Car, and the Audi R8, among others. And the team wanted the Fiesta launch to be a blueprint for a new process within the company that could carry over to its other product launches.

The idea behind the Movement was expanded into a creative brief (Exhibit 6), a set of criteria for recruiting Agents, an Agent training manual, and a set of Agent missions. With these documents in place, Ford management signed off and in September 2008, the Fiesta Movement became an official Ford initiative.

Designing the Movement

Recruiting Agents

The team formulated a list of the qualities they were looking for in the 100 Agents. The team wanted people who thrived on discovering new things and telling others about those new things, people who were viewed as fun, clever, and in the know, and people whose lives, both online and offline, were filled with adventure and variety. For this group, social media was integrated into their daily lives, not viewed as an obligation or afterthought. People in this group were natural storytellers, energetic and imaginative, and already knew how to create online content that attracted an audience. Other factors taken into consideration would be geographical distribution and cultural diversity that reflected the demographic. The idea of a vibrancy scale came up as shorthand for the attributes desired in Fiesta Movement drivers, and the team agreed that such a scale would be used as a tool for selecting drivers for the program.

Interested parties were asked to upload videos to YouTube containing their pitches. Connie Fontaine remarked: “I watched a lot of reality TV, so I knew these people were out there.” Her hunch proved to be reliable, when over 4100 video applications were received, representing all 50 states, and all walks of life. One entry, from a 23-year-old Asian-American male calling himself “Timothy de

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la Ghetto,” offered a list of reasons why he should be chosen for the Fiesta Movement: his looks, his irresistible charm, his shamelessness, and his ability to operate a motor vehicle. He said in his pitch:

I’m here to tell the YouTube community and the universe that Asian people can actually drive,” he insisted. “And I’ve got like 65,000 subscribers, OK? I’m not like so big on YouTube, like [Internet celebrities] SxePhil or Tay Zonday. They can probably buy a new car with the money they make from a few videos. I’m in between. I’m not super YouTube celebrity status. I’m at 65 [thousand] haven’t broken 100, which means hey, I’m still broke enough to be down

for this thing.15

Another entrant, Kristina, confessed to the camera:

Driving is a big part of my life. I’ve gone on tour and driven half way across the country and even though people tell me I’m crazy for doing these things I just love it . . . but my history of cars is a long list of grandma cars. I need something fun. I’m not the type of girl that belongs

in a grandma car!16

Not only singles applied to be Agents. There were pairs of friends, and husband-and-wife teams, some with children, some without, and some expecting. The applicants were writers, realtors, construction workers, graphic designers, students, actors, engineers, artists, and accountants.

Using the vibrancy scale, this group was whittled down to 100, and their names were announced at the New York Auto Show in April 2009. The list included one Internet culture celebrity, Judson Laipply, whose video “The Evolution of Dance” was among YouTube’s all-time most viewed videos, and a small number of bloggers with followings in the millions, but the majority counted their audience in the thousands, and some had not yet built any significant audience. (See Exhibit 7 for breakdown of Agent demographics.) Each month a central dispatch office known as Mission Control would issue theme-based missions for completion. The Agents agreed to produce one video per mission and were encouraged, though it was not part of their contractual obligation, to tweet, post status updates, photos, and blog entries. The content was posted online on YouTube, Facebook, Twitter, Flickr, and blogs, as well as on Ford’s official microsite at fiestamovement.com (see Exhibit 8). Although Agents were selected for their strong social networks, Ford publicists from each region of the U.S. were made available to them, at no cost, if they wanted additional guidance or assistance getting coverage for their stories.

As the Fiesta Agents prepared to hit the road, Ford organized test drives of the new car throughout the U.S., at locations ranging from college campuses to concerts to events such as the “Taste of Chicago” festival. Fontaine’s goal was to hit 100 cities and offer 100,000 test drives.17 In gauging the success of the events, the number of test drives taken was just one component of the program. Also of interest to Ford were the “walkarounds” (people who took a closer look at the car) and those who signed up for an email mailing list who, if interested would later become “handraisers” and join a waiting list for the new Fiesta.

Sending Agents Out on Missions

Within Ford and Team Detroit, those selected were thought of as amplification agents, using their talents and social networks to create interest and excitement for the brand that would proliferate as postings were viewed and shared.

Mission Control handled the logistics for the Fiesta Movement. Its job was to be the central point of contact for 100 drivers spread across the country. Mission Control dispatched the monthly

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missions the Agents were to complete, and also provided 24/7 assistance to the Agents. Any questions Agents had that related to the Fiesta Movement were to go through Mission Control, as were reports and approvals for incidents such as repairs. A special Mission Control emergency number was provided in the event of an accident or injury.

For each month of the movement, from May to October 2009, there would be a theme. The May theme was Travel and the June theme was Technology. Within each theme, Team Detroit created missions, posted on Mission Control’s website. (See Exhibit 9 for missions associated with the Travel theme.) Agents chose one mission to tackle, and once a mission was selected by an Agent, it was removed from the list and was not available to others. Agents were therefore encouraged to check the list regularly. They were also encouraged to select and complete missions quickly, since once they had done so they would be able to view missions for the next theme.

As resources for the missions, Ford enlisted the cooperation of what it called Partners, such as MIT, the Electronic Entertainment Expo, Legoland, UCLA Medical Laboratories, NASA, the Sirius satellite music service, Bluetooth, Segway, the makers of the Rock Band video game, the iRobot home cleaning robots, and the Pandora music streaming service.

Before and during the execution of a mission, Agents were encouraged to use their social networks to alert their followers that a video would be coming. Once they had shot and edited the video, they sent it to a private network for approval by Ford. Once approved, Ford posted the videos to a central site, Fiestamovement.com (Exhibit 8), and Agents were also free to post them to their personal blogs or websites. Visitors to Fiestamovement.com were encouraged to sign up for test drives and to learn more about the Fiesta. (Exhibit 10 depicts the process.)

For a mission entitled “Twitter Taxi,” Agents Whit Scott and Thomas Knoll used their Fiesta and their Twitter accounts to see who needed a ride in their hometown of San Francisco. They sent out a tweet letting people know that their free ride service was in effect, and within minutes received tweets in response, with location information for the pick-up. Cameras rolled throughout. Not being professional cab drivers, they didn’t always know the quickest route. “We cost less, but you can tell,”18 remarked Knoll in the video. Among the fares Scott and Knoll picked up was Julien, who had recently moved to California from France. The Agents seized the opportunity of having a person from France in their car and asked—and discovered—where the best croissants in the Bay Area could be found. As people spoke to each other in the Fiesta, their Twitter handles, or names, appeared on screen.

For their first mission, Fiesta Agents Emma and Brad were challenged to be “mules for a day,” and deliver items using their new car. They connected with the gourmet food gift company Harry and David, where the executive vice president of Corporate Relations informed the Agents on

camera, “we make, grow or bake 90% of what we sell in the catalog.”19 In the next scene, Emma and Brad appeared in hairnets, white coats, and latex gloves, working in the Harry and David assembly line. For their mission they assembled gift boxes for families of soldiers deployed overseas. They then loaded up their Fiesta with as many crates as it could accommodate and delivered the goods to the National Guard, where the gift boxes would be forwarded to the families of servicemen and women. Other Agents seized upon the expressive opportunities of the Movement. For the “Style & Design” mission, one enlisted the services of a Portland, Maine artist and had the Fiesta ‘wrapped’ in a custom lime-green and yellow geometric paint job. Another went one better and designed her wedding dress and accessories to match her lime-green Fiesta. Another’s enthusiasm for the campaign took the form of a tattoo.

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Measures of Investment and Results

At the beginning of July 2009, two months after the Agents began blogging, Lenard’s team estimated that it had invested about $2 million in cars and infrastructure, and was spending about $500,000 per month to maintain the program. This investment was substantially less than had been spent on the “Drive One” campaign that had run for three months in early 2008, but substantially more than had ever been spent on a car not yet for sale. The team looked at early measures of the campaign’s effectiveness.

The Movement’s main objective had been to build familiarity with the Fiesta nameplate. They set the benchmark at 23%, the proportion of people intending to buy a car in the B segment who reported being familiar with the Nissan Cube one quarter before it was launched in June 2010. The Fiesta beat the benchmark comfortably, scoring 42%. A year or more after launch, B segment cars typically scored on familiarity in the range of 65% to 75%.

The benchmark for monthly visits to the Fiesta website was set at 144,000, the number achieved by the Ford Flex (a crossover or SUV-style vehicle) in the quarter just before its launch in mid-2008. In May and June 2009, the Fiesta website recorded 289,000 unique visitors for the two months combined, of whom 19% completed an exercise in which they configured the options on a Fiesta to reflect their preferences, and 14% gave their email addresses to get updates.

Test drives, normally a measure of the effectiveness of a marketing campaign, were limited by the small number of vehicles configured to meet U.S. driving requirements and available to be test- driven. In May, Ford had displayed this limited stock of cars in public places and had recorded 6,000 test drives (1,000 provided by Agents) and 30,000 walk-arounds. The demographic profile of the drivers was 65% male, 55% under age 34, and 81% non-Ford owners.

The team also gathered campaign input measures, chief among them the number of pieces of original content generated by Agents. Videos posted on YouTube and FiestaMovement.com were the most important form of original content. Ford’s goal had been 600 videos for the six months of the program, yet two months into the program the Agents had already posted 655. Each of the videos had been viewed about 1,600 times, on average. The most popular video had been viewed 200,000 times, while many had about 100 views. The Agents had blogged 632 times about the Fiesta, posted 5,535 photographs to their blogs and Flickr, and tweeted 7,787 times. Each photograph was seen 108 times, and the average Tweet went out to 400 followers.

In press mentions of B segment cars during May and June, Fiesta led with a 33% share of voice, ahead of the Honda Fit at 28%, the Toyota Yaris at 24% and the Nissan Versa at 15%. At 92% favorable or neutral, the sentiment of these mentions was more positive than for competitors.

Conclusion

Early results of the campaign seemed promising. Press coverage had been extensive, familiarity with the nameplate was high, and traffic was coming to the website, though a smaller fraction was registering on the site than normal. It concerned some of the team that none of the hundreds of pieces of video had truly gone viral. Perhaps, they thought, Ford could help the viral process along by giving advertising and press relations support to the best pieces of user-generated content. Others argued that the goal was not virality, but to show the brand repeatedly on the network of each Agent—their Facebook friends, their Twitter followers, their Flickr contacts, and their YouTube subscribers. Lenard contended that it would be difficult to integrate mainstream media into the

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campaign. No budget had been requested for advertising because it was against Ford practice to advertise before there was inventory to sell. And while individual Agents had been assigned publicists, Ford was reluctant to play favorites among the Agents and support one piece of content over another.

And yet team members were reluctant to give up on expanding the reach of the campaign. Could Ford lend its clout to recruit celebrities and put them at the disposal of the bloggers, borrowing consumer interest in celebrity culture to draw attention to the car? Should some kinds of assignments be favored over others to expand reach?

The team also wondered: Should Ford eliminate Agents who had failed to generate a significant following? And with test drives running below target, should some agent cars be converted for test drives? Traditionally, test drives had a high correlation with purchase interest. Would test drives be a more effective use of the vehicle resources than the Movement?

Some of the Agents had balked at Ford’s list of missions, and were beginning to propose their own ideas. One had volunteered to drive across the United States at Ford’s expense. Another was particularly passionate about a social agenda and proposed a mission to publicize the cause. What leeway should Ford allow its Agents to follow their own direction?

Concern lingered as to whether the Fiesta Agents’ content was changing people’s opinion about Ford. While interesting, their content was not always about the car. Should it be more focused on specific features of the vehicle? Should Agents be asked to describe or demonstrate the vehicles advantages? Or should Ford just stay the course? If Ford tried too hard to shape the efforts of its Agents, it would surely dilute the feeling of authenticity that permeated the Movement. And yet no one on the team could be sure that the first two months of positive trends in impressions and familiarity would translate into purchase. The ultimate measure of success, everyone knew, would be Fiesta sales.

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Exhibit 1 Calendar Year Ford Sales, 2000–2009

(Number of vehicles sold or leased across the Ford, Lincoln, Mercury, Jaguar, and Volvo brands)

 

Year Units Sold or Leased

2000 4,202,820

2001 3,971,364

2002 3,623,709

2003 3,483,719

2004 3,331,676

2005 3,153,875

2006 2,901,090

2007 2,507,366

2008 1,988,376

2009 1,620,888

 

Source: Compiled from monthly and annual sales figures posted at www.theautochannel.com.

 

 

 

 

Exhibit 2 Vehicle Size Classes

Size Class

Description Examples

A Microcar Smart For Two, Fiat 500, Toyota iQ

B Subcompact Ford Fiesta, Honda Fit, Toyota Yaris, Toyota Scion, Nissan Versa

C Compact Ford Focus, Toyota Corolla, Honda Civic

CD Mid-size Ford Fusion, Honda Accord, Toyota Camry, VW Passat

 

Source: Compiled by casewriters.

 

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Exhibit 3 B Segment Purchaser Information

 

Respondent Age

Percent Who Purchased

B Segment Cars

16 or under 0.2%

17–25 3.4%

25–30 8.1%

30–35 5.6%

35–40 6.0%

40–45 8.1%

45–50 13.1%

50–55 14.3%

55–60 11.5%

60–65 9.4%

65–70 6.6%

70–75 4.8%

75–80 3.5%

80–85 1.6%

85–90 0.5%

 

Source: Adapted from Primary Study 2008 Q1–Q4 Ford NVCS, October 2007–September 2008.

Total users surveyed: 3,481.

 

 

 

Exhibit 4 B Segment Car Sales in U.S. (in units), 2007–2009

 

2007 2008 2009

Toyota Scion xD 10,948 27,665 14,999

Toyota Yaris 84,799 102,328 63,743

Honda Fit 56,432 79,794 67,315

Nissan Versa 81,196 80,308 67,815

Source: Compiled from monthly and annual sales figures posted at www.theautochannel.com.

 

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Exhibit 5 Brand Perceptions by Category, 2008–2010

Consumer Reports asked respondents to name the top brand across a series of attributes, including value, quality, environmentally friendly/green, and safety. The table below shows where Ford, Honda, and Toyota ranked among the top five in these attributes.

2008

Brand Value Perception

Quality Perception

Green Perception

Safety Perception

Honda 30% 24% 26% 17%

Toyota 24% 33% 49% 20%

Ford 20% Not in top 5 16% 17%

Read as: 30% of those polled who are aware of the Honda brand rated Honda as number one in the category of value.

2009

Brand Value Perception

Quality Perception

Green Perception

Safety Perception

Honda 29% 24% 31% 18%

Toyota 27% 32% 48% 16%

Ford 19% Not in top 5 11% 19%

 

 

2010

Brand Value Perception

Quality Perception

Green Perception

Safety Perception

Honda 26% 25% 23% 17%

Toyota 26% 30% 51% 18%

Ford 22% 22% 19% 22%

 

Copyright © 2008–2010 by Consumers Union of U.S., Inc., Yonkers, NY 10703-1057, a nonprofit organization. Adapted with

permission for educational purposes only. No commercial use or reproduction permitted. www.ConsumerReports.org.

 

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Exhibit 6 Fiesta Communications Development/Creative Brief

Segment Snapshot: The relatively new American B Car segment is currently a 3-horse race between Yaris, Fit, and Versa. Enter Fiesta, Ford’s all new B Car. In the attempt to grab 9% market share, Fiesta features truly engaging driving dynamics along with “kinetic” styling. The city-based B segment (owners either live there or drive there), typically defined by price or personality alone, is about to get a wake-up call from Fiesta’s one-two punch of performance and style. Marketing Objective: Use the Fiesta launch as a support point in Ford’s case for car legitimacy in America – already named as a finalist for World Car of the Year, it’s proof to America that Ford “gets it.” Customer: The Fiesta customer is an optimist that surrounds themselves with people and things that make them feel alive. Key insight: City Lovers. Urbanites who are moved to make the city buzz. They thrive on the 24/7 energy of big city life. They love knowing they are in the middle of it all, where the action is. Their lives are “exciting” – they’re out and about, being a part of the city life they adore. Unable to sit still, they like the idea of needing to be somewhere other than where they are at the moment. They want a lively small car that fits their energetic personality and their city lifestyle – easy to park and fun to maneuver, they want a zippy, sporty feel. They want their vehicle to look like more than basic transportation. They want it to look like it belongs in the city. They are very interested in in-car technology that keeps them connected (Bluetooth connectivity, MP3 connection). Where are they now? Ford loyalists: 38% Anticipated top-disposed models are Focus (1/3), Fusion, Taurus, and Escape. Conquest: 34% – Import cars. Over half of the segment sales come from C, C/D, and D/E car segments. 91% of B segment sales are imports. Product Key Insight: The Key to the City: The only city car built to be vibrant Primary Messaging: City lovers get excited about Fiesta being a small city car that does more than check the box on economy – from an engaging drive to engaging features to engaging styling, Fiesta draws you in. Good Looking: Fiesta’s effervescent look comes from the sum of its design parts – drenched in premium paint and draped in exotic lighting, Fiesta radiates a get-in-we’re-going-now vibe that you don’t want to walk away from. Inside, the glow of ambient lighting and a cell-phone inspired dash amplify anticipation of the drive, while Sync physically engages your senses. Upgrades like leather seats and a Push Button Start feel snappy.

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Fast Moving: Fiesta has places to be. It knows where it’s headed in traffic – it moves with purpose. Does its best work with jackrabbit starts, quick stops, lightning fast gear changes and taking the corners a smidge too fast thanks to dual-clutch technology and an obsessively precise wheel – all while handily achieving best in class fuel economy. Secondary Messaging: Must drive home Fiesta’s FE (Fuel Efficiency) and DQR (Durability, Quality & Reliability) stories Best in Class for fuel economy: Ford’s got another 40 mpg vehicle – tell everybody and their brother. Durability & Reliability: Fiesta has 32 years of road presence under its belt. The idea that Ford has “worked out the kinks” is a solid DQR pre-sell for Ford doubters. Quality: Fiesta has a new level of detailing that sends other small cars home with their tails between their legs. Communications (Reasons to Drive One): Made to Thrill: Fiesta squeezes every last drop out of city living Fiesta knows size doesn’t matter. It’s not going to apologize for being small and it’s not going to beg you to get in. Fiesta draws you in by saying “C’mon, don’t you have somewhere to go?” Fiesta looks slick wearing accessories, but channel will dictate what gets shown where. No drifting, no fast and furious – Fiesta thrills, but it doesn’t get you arrested.

Consumer Response: Desire to be a part of Fiesta’s vibrant life.

How we’ll know it worked: Pre-launch: TBD Consumer Engagements Launch: TBD Net Positive Impact on Ford Brand Favorability as measured by BEAT (Brand Equity and Awareness Tracking) in addition to overall nameplate awareness.

Source: Ford Motor Company.

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Exhibit 7 Agent Characteristics

First Name Last Name Age

Facebook Twitter

Highest YouTube

views Blog Vibrancy

Alan Graham 38 200 4500 6,000,000 5

Rigel Celeste 32 100 11 700,000 3,500,000 5

Andrew Didorosi 22 1800 900 300,000 2,500,000 5

Rustin Morre 28 400 160 50,000 1,000,000 5

Rafael (team) Fine 26 1300 300 27,000 1,000,000 5

Eli Newell 32 500 50 112 1,000,000 5

Daniel Grozdich 29 2000 2000 26,443 800,000 5

Melissa Compagnucci 26 600 400 404,503 500,000 4

Bridget O’Neill 23 650 500 157,186 300,000 5

Paul Stamatiou 22 1200 10000 250,000 5

Doug Levy 31 200,000 5

Olga Kay 26 2300 3000 23,500 150,000 5

Jake Bronstein 30 1366 1700 12,229 150,000 5

Davey G. Johnson 34 450 200 2,300 120,000 5

Robert Fiorentino 28 258 144 388 120,000 4

Jake Davis 29 100,000 5

Bill Lockwood 500 17,000 87,000 3.5

Jason McMurry 30 1111 1305 9,000,000 85,000 5

Kristina Horner 21 1000 3250 14,000 80,000 5

Jeremy Tanner 26 1219 111 50,000 4

Sarah Austin 5000 20000 1,000,000 38,000 5

Creede Fitch 30 191 97 30,000 5

Alaina Shearer 30 200 1500 34,474 25,000 5

Jody Gnant 32 1000 2500 4,909 25,000 5

Marc Nischan 40 400 50 22,000 3

Mallory (team) Shiplet 22 1000 70 100,000 17,000 5

Steve Ouch 34 1000 17000 1,293 16,000 5

Cassie Duncan 23 1500 50 105 15,000 3

Sebas. (team) Serdar 41 1,500,000 10,000 5

John Herman 22 700 725 1,500 10,000 4

Kelly Olexa 40 1000 5300 10,000 5

Natasha Westcoat 27 300 2800 10,000 3

Kyle Libra 23 900 1800 350,000 7,500 5

Brigitte Dale 28 850 1500 200,000 6,200 5

Deena Marie Manzanares 23 950 824 11,813 5,000 5

Raul Martinez 36 400 10,261 5,000 4

Mark (team) Schoneveld 33 600 1300 100,000 4,000 4

Craig Benzine 28 220 806 11,271 3,488 4

Derek Dow 26 1000 11,890 3,000 4

Kara Kay 32 100 30 3,000 4

Mandy (team) Kocevar 29 100 135 3,000 5

Noah Kagan 27 3200 1286 3,000 5

Alexis Morrell 24 850 36 1,800 4

Derek Johnson 24 2000 5000 1,500

Ryan Basilio 27 700 110 700,000 1,000 5

Eric Gunnar Rochow 300 695 336 900 4

Brad Nelson 29 120 100 850 3

Vanessa Villanova 30 50 384 117,688 800 4

Charlie Brumfield 26 40 50 10,000 750 3

Maria

de los Angeles Lemus 42 200 700 9,333 700 3

Patrick Latimer 32 10 12 6,453 360 1

James Wedmore 26 500 4500 800 200 2

Brian Bonn 24 753 339 364 200 3

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511-117 The Ford Fiesta

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First Name Last Name Age

Facebook Twitter

Highest YouTube

views Blog Vibrancy

Ryan Dembroski 26 475 85 100 3

Judson Laipply 33 4700 250 115,000,000 5

Ian Sklarsky 27 400 6,000,000 5

Joe Penna 22 467 2,900,000 5

Tim Chantarangsu 23 1000 2,600,000 5

Jill Hanner 32 1278 3390 2,300,000 5

Thomas Knoll (team) 28 504 2916 1,300,000 5

Beto Lopez 35 644 300,000 5

Seth Beck 31 150 40 300,000 5

Winston Robinson 28 100 37 259,763 3

Jeni Searcy 21 200 332 86,000 5

Dartanion London 31 450 750 80,000 4

Jamy Donaldson 39 557 50,000 3

Michael Aranda 23 800 46,000 5

Grace Piper 36 600 1500 39,346 4

Chris Thompson 26 919 20,000 5

Brittani Taylor 26 650 1250 16,000 5

Doug Jones 30 14,128 4

Casey Payne 29 450 520 9,000 4

Benjamin Hopkins 21 700 8,000 2

Brian Thomas 22 600 6 7,000 3

Meghan Mathes 22 2000 5,000 3

Eric Tollar 22 900 16 4,000 4

Natasha Tsakos 30 300 4,000 3

Angela Arrington 22 70 2,350 2

Alison Haislip 28 3000 4566 1,390 5

Hugh Weber 32 716 224 4

Tanya Kruiter 25 500 60 180 3

Alex Morrison 30 450 2

Alicia Kenworthy 23 750 430 3

Becca Jones 27 400 100 2

Bliss Dennen 32 500 150 3

Bridget Froelich 24 300 15 2

Bryan Redeker 30 113 2

Courtney Force 20

Dylan Klymenko 23 600 55 3

Earl Courtney

Vallery Hans 31 100 3

Hilary McHone 36 370 5

Jenna Lyng 22 600 50 3

John Trepp 39 600 20 3

Jonathan Nafarrete 27 200 54000 5

Kambui Brown 32 44 40 2

Mark Kleis 24 500 4

Melissa Reilley 29 400 1800 4

Rhett Anderson 22 300 30 2

Taylor (team) Barr 24 580 770 4

Zachary Shaw (team) 29 200 24 3

 

Source: Ford Motor Company.

 

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The Ford Fiesta 511-117

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Exhibit 8 Screenshot from Ford Microsite fiestamovement.com

 

 

Source: Ford, “Fiesta Movement,” Ford website, http://www.ford.com/fiestamovement/.

 

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Exhibit 9 Travel Theme Missions

Mission Title One-sentence Description Your Mission

Motion of the Ocean Take someone to the ocean who’s never been

Find someone you know, or don’t, who has never been to the ocean in their life, drive them there, take pics

Fast Food Nation Go to your favorite fast food joint. Order 1 of everything and give it all away

Find your favorite fast food joint in town, and order one of everything. Then go to a public place and give it all away to whoever wants it. You’re not allowed to eat any of it.

Do You Have Any Idea Where You Are?

Blindfold a friend and take them away. Grab a friend, blindfold them, drive them to a place they know and see if they can guess where they are.

This is Your Life Tell us your life story Recount your life by traveling to spots in your life, tell it to us like you were now rich and famous.

Show Us Around Travel to every major landmark in your town

Get in your Fiesta, grab a friend, his every major “landmark” in your town and give us a tour. Talk to a guide, read some plagues, carpet the town.

Amateur Jump Shots Get tourists to do “jump” photo shots at a tourist destination.

Travel to your nearest tourist hotspot and convince 10 people to do jump shots for you, while you capture the moment.

Yo Buddha’s Revenge Travel to see the world’s biggest Yo-Yo Travel to the National Yo-Yo Museum (320 Broadway Street) to see the world’s largest Yo- Yo. Buy a Yo-Yo and attempt the Buddha’s Revenge trick – experts there will teach you.

“The British Are Coming” Recreate Paul Revere’s midnight ride, at midnight

Drive the route of Paul Revere’s Midnight ride one night at 12am. On the way, discuss this part of American history and the difference between your drive in the car versus on a horse.

13 shots Visit the first Starbucks and order the most expensive drink and try to drink it.

Go to the first Starbucks. Order the Venti 13 shot Soy Hazlenut, Vanilla cinnamon white mocha with extra white mocha & caramel. Try it but be warned: it’s a health risk

On the Road Recreate part of Jack Kerouac’s route across the country

Drive at least 100 miles across the route taken in Jack Kerouac’s “On the Road”. Listen to the book on tape en route. Tell your story.

Who the Hell Are You? Visit a family member or old friend that you’ve been out of touch with for years

Visit a friend (make it a surprise) that you haven’t seen in years.

Neither Rain nor Snow Be a mule for a day. Pick up a package & deliver it

Be a mule for a day. Pick up a package & deliver it.

Running on Empty Drive until you run out of gas Go fill up your tank (and pack a spare tire), and drive until you run out of gas. You’re not allowed to drive down the same road twice on your journey. See how far you can get or see how close you can stay.

Milk It Go to farmers market, visit one of the stands’ farms, and milk an animal

Travel to closest market, get a farmer to take you to his farm, and milk one of their farm animals – cow, goat, whatever. And drink the milk if you dare!

American Pictorial Go to tourist destination & offer to take pictures for couples & families.

Travel to a sought after tourist destination and take at least 10 pictures for tourists on the spot.

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The Ford Fiesta 511-117

19

Elope Get married in Vegas. Seriously Find a mate, find 10 witnesses, and get married in the most bizarre chapel you can find

Pacific Pilgrimage Drive the entire west cost of the US. Drive the entire distance of the West Coast of the US, from the Seattle to San Diego (or the other way around)

I Scream, You Scream Turn your car into an ice cream truck Turn your car into an ice cream truck, and drive to the beach or an event and give it all away. You must give away every piece of ice cream and you must photograph every person you give an ice cream to.

Visit the Dead Visit the mummy caves of Canyon de Chelly

Hire a Navajo guide, visit the Canyon of the Dead, and look for the mummy caves

Punchbowls, Cataracts, & Horsetails

Find and visit the largest waterfall in your state

Locate and visit the largest waterfall in your state. Get as close as you can – get wet (but don’t get hurt)

Road Trip Take a road trip with three of your friends

Grab three of your friends, pack up the car, and drive at least 100 miles out of town to a destination of your choice. Go to a park, go visit another friend, go see a site – whatever you decide to do, but you have to decide as a group. Spend at least 1 hour there and document everything.

Fiesta Fiesta Have a party in your car Invite (with real invitations) 3 people to a party taking place in your car. Think of a great theme – costumes are a plus. On the day of, pick each person up. Have party supplies ready to go (the crazier the better). And, make sure there’s a cake, drinks, blowers, and hats. Tie balloons to the car- make a festive fiesta. Go to a place you might have a get-together, like a park, but everyone stay in the car for the party.

Crossing Over Cross the borders of as many states as possible.

Drive to as many other states as you can in one day. When you’re there, collect some kind of token as proof – either buy a souvenir or take something free (and legal), like a beach pebble from California.

Plates Drive around and take photos of at least 10 different states’ license plates

Grab a partner, hit the road, find at least 10 other state license plates on the road with you.

No Point Mentioning These Bats Recreate a road scene from Fear & Loathing in Las Vegas

Get a friend, get your costumes, and get in character. You’re going to recreate any one of the driving scenes in Fear & Loathing in Las Vegas. Just be careful on the road – and no drugs

It’s a Quest, A Quest For Fun Recreate a road scene from National Lampoon’s Vacation

Get 3 friends, pick your roles, and dress up like it’s 1983. Recreate a scene from Vacation from inside the car – anyone except the car jumping 50 yards

Band On The Run Be a roadie for a band Bands have lots of fun. Your mission is to help one band transport their gear by loading your vehicle with as much of their gear as possible and driving to their next destination

Get Your Kicks Historical drive down Route 66 It’s a long stretch of classic American road, but it doesn’t show up on most modern GPS systems. So plan your route ahead of time – you need to drive 100 miles of it straight

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511-117 The Ford Fiesta

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through, without leaving the road, and without stopping

Your Chariot Awaits Post an ad on Craigslist volunteering to be a personal drive for one day

Post an ad on Craigslist offering you and your Ford Fiesta to chauffer someone around for an entire day. They must prove their need for entire day of your services. It can be as simple as a carpool / commute before and after a work day, or it can be a person with an entire day’s worth of errands to run

The Hunt is One Take our list of 20 items, and go find them in your city

We will send you a list of 20 items you need to find in a course of a day. You are not allowed to use anything you or, your family, or any friends already own. Of course you can use the internet for researching purposes, but you can’t buy any items online.

International Eats Eat 6 meals from 6 different restaurants that represent cuisine from the 6 populated continents.

Fill your own tank with 6 meals from 6 restaurants representing the 6 populated continents. Though if you eat a piece of ice, the Antarctic penguins would be honored that you hit all 7.

Come On, Feel the Noise Head out of town until you are away from the hustle and bustle

Start in the heart of your city, show us how loud it is, travel mile by mile, until you find a little peace and quiet. Until the car engine is the last thing you hear.

Yo Mamma Kidnap your mom and take her someplace she’s never been

Show up one morning, grab your mom, blindfold her, and take her somewhere she’s never been in her life. The furthest you can go, and the more outlandish and out-of-character for your mom the better

Fiesta-gating Show up at a sporting event you’d never attend with all the workings of a great tailgating party for complete strangers

Pick a local sporting event, stock up on food and drinks, show up and court some strangers.

Truck Stop Operation Challenge a trucker in Operation (the game)

Drive out to our truck stop, set up, and play Operation with drivers to help keep them awake.

Monumental (Wyoming Edition) View Devils Tower

Monumental (Maryland Edition) Visit Fort McHenry

Monumental (Virginia Edition) Visit George Washington Birthplace

Monumental (California Edition) Visit Giant Sequoia

Monumental (Montana Edition) Visit Little Bighorn Battlefield

Monumental (Washington Edition) Visit Mt. St. Helens

Monumental (DC Edition) Visit President Lincoln and Soldiers’ Home

 

Monumental (Alabama Edition) Visit Russell Cave

Monumental (Nebraska Edition) Visit Scotts Bluff

Monumental (Utah Edition) Visit Timpanoogos Cave

 

Source: Ford Motor Company.

 

For the exclusive use of F. Pearson, 2018.

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The Ford Fiesta 511-117

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Exhibit 10 Life-cycle of Fiesta Movement Content

 

 

 

Source: Ford Motor Company.

 

For the exclusive use of F. Pearson, 2018.

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Endnotes

1 Dan Neil, “Small Wonder: The Fiesta Delivers,” Wall Street Journal, May 8–9, 2010.

2 Grant McCracken, “How Ford Got Social Media Right,” www.cultureby.com January 7, 2010, accessed April 28, 2010.

3 Market Data Center, Wall Street Journal, http://online.wsj.com/mdc/public/page/2_3022-autosales. html#autosalesE, accessed April 29, 2010.

4 “Ford CEO: “2010 will be solidly profitable,” May 13, 2010, http://www.washingtontimes.com/news/ 2010/may/13/ford-ceo-2010-will-be-solidly-profitable/, accessed June 21, 2010.

5 News Center, Ford, http://www.ford.com/about-ford/news-announcements/press-releases/press- releases-detail/pr-ford-fseries-does-it-again2658-31720, accessed April 28, 2010.

6 U.S. Census Bureau, 2008 American Community Survey 1-Year Estimates, http://factfinder.census.gov/ servlet/STTable?_bm=y&-qr_name=ACS_2008_1YR_G00_S0101&-geo_id=01000US&-ds_name=ACS_2008_1YR_ G00_&-_lang=en&-redoLog=false&-state=st, accessed May 4, 2010.

7 “Ford Reveals Small-Car Vision for North America,” Ford, http://media.ford.com/article_display. cfm?article_id=27479, accessed June 7, 2010.

8 Scott Keeter and Paul Taylor, “The Millennials,” Pew Research Center, December 11, 2009, http://pew research.org/pubs/1437/millennials-profile, accessed April 15, 2010.

9 Craig Cheetham, The World’s Worst Cars: From Pioneering Failures to Multimillion Dollars Disasters (USA: Barnes & Noble, 2007).

10 James B., Treece, Richard A Melcher et al., “Can Ford Stay on Top?,” BusinessWeek, September 1987, accessed May 6, 2010, from ABI/INFORM Global.

11 Ray Wert, “Frankfurt Auto Show: Ford Verve Concept Reveals Design Future Of Ford Fiesta,” September 11, 2007, http://jalopnik.com/298474/frankfurt-auto-show-ford-verve-concept-reveals-design- future-of-ford-fiesta, accessed May 12, 2010.

12 Company sources.

13 Mark Rechtin, “Fiesta viral marketing: Chapter 2,” Automotive News, December 14, 2009, via ProQuest, accessed February 17, 2010.

14 Company sources.

15 http://www.youtube.com/watch?v=-MVWIdOdmWI, accessed June 1, 2010.

16 http://www.youtube.com/watch?v=5IsFqje7ASM, accessed June 8, 2010.

17 http://www.ford.com/about-ford/news-announcements/press-releases/press-releases-detail/pr-bepart- of-ford26rsquos-fiesta-30344, accessed June 8, 2010.

18 http://www.youtube.com/watch?v=7alRzma5kF4, accessed June 8, 2010.

19 http://www.youtube.com/watch?v=YVkJOMueqf8, accessed June 8, 2010.