Ford is a fast-growing company that has been in the market for over 100 years. It has won the hearts of buyers worldwide, as it 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.
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
As mentioned earlier, because of the coronavirus, there was a recession in the global economy. Scottsdale has also been affected by this, changing the demographic and geographic standards. The demographic shift has taken place downward. The population’s average age has decreased and is now 34.4 years (City Data 2020). It is a good indicator since age is in the target group of millennials. The geography has not changed due to the pandemic; people totally could not travel and move because of restrictions. The average annual income is $ 60,931, which is almost the same as in nearby states (City Data 2020).
Married couples predominate in the household population (Statistical Atlas 2020). Their percentage is 54.6%, which is a substantial gap between the people groups of singles and unmarried couples. According to City-Data, 80% of people commute to work alone by car (City Data 2020). It is a good indicator for securing machine sales. The coronavirus pandemic has severely affected unemployment rates worldwide, but Scottsdale is actively fighting the problem; in the summer, the unemployment rate was only 9%. (City of Scottsdale, 2020). The state has one of the lowest unemployment rates in years.
Best Customer Description
The predominant race is white (non-Hispanic); this parameter coincides with the data for the country. Millennials spend most of their time on social media, in particular on Instagram. Creating a brand page on this platform will allow potential buyers to keep abreast of the latest news and purchase opportunities. Also, this is a great way to advance through various promotions and discounts for subscribers. For example, a company might offer a 5% discount to 2020 university and college graduates who buy a car within a week. Older millennials are addicted to watching TV. On TV, it’s essential to launch catchy ads that meet a specific target audience’s needs. For example, the machine with extended quality assurance with a restriction on age.
According to statistics, 80% of the population are employed, and most of the workers are hired in medicine; business is in second place, after tourism and so on (Statistical Atlas, 2020). As mentioned earlier, residents mostly get to work alone by car; for this, the company can also develop a specific action. On the way to work, people listen to the radio, and an excellent advertisement would be an interview with a star on the topic of Ford and sales promotions. Scottsdale is a resort area, and outdoor enthusiasts love to travel to Mazatsal Mountains. It is a more extended trip that requires luxury cars.
To successfully maintain a business and ensure stable sales, it is necessary to use an integrated approach through all social media in various formats. Millennials differ significantly in age, with people aged 25 and 39 having different values, lifestyles, and desires. Younger representatives work, spend a lot on social networks, and most often live with their parents, and their hobbies can be both active and quiet rest. To get to the nearest point of active recreation, people choose more comfortable cars. The easiest way to get the attention of young people is through social networks. The most popular and influential of these is Instagram.
It is an excellent platform to show the beauty and functionality of various types of Ford cars and organize promotions and contests. For example, a game with reposts works well; people have to share a particular post of the company, and later a winner will be chosen, who will be presented with branded things of a local Ford. It is necessary to strengthen advertising on social networks with other resources, such as radio, for a more practical effect. On the radio, you can talk about exciting promotions and subsequent support for salon buyers.
The extended warranty will increase customer loyalty and tilt their choice in the right direction. People in their 30s are more receptive to advertising on TV, and the credibility of the person who talks about the product plays a role for them. The stars have a more significant influence on the masses; then, this age group will also hear advertisements on the radio. Advertising should be sufficient but not too intrusive; then, the person will make the essential choice in favor of the purchase.
Targeted advertising is to be used to appeal to the best customer and increase sales. Interior technology, connectivity, fuel efficiency, and cost of ownership are considered to resonate the most with the target audience (Thomas, 2019). Millennials view cars as an opportunity to stay connected, with 72% indicating the vehicle’s importance to their social life (Bedgood, 2020). Moreover, 56% of the auto shoppers from the target group heavily rely on digital research before making a purchase (Bedgood, 2017).
Hence, a creative approach should be used to highlight the functionality, efficiency, and attractive features of Ford cars. Social media advertising should include videos and pre-rolls to showcase the top-rated connectivity features: navigation system, satellite radio, Bluetooth, MP3 player, and mobile integration (Bedgood, 2020). Such an approach will make the clients feel the comfort and functionality of Ford cars. Radio and TV advertising should also support the feeling of efficiency, reliability, significance, and luxury to meet the older millennials’ expectations.
Millennials are known to prefer video content and social media more than previous generations. Broadcast stations such as ABC 15 Arizona, ABC15, KNXV-TV Phoenix, Fox Sports Net Arizona, and Cox Cable were defined as the top-rated in Scottsdale (MapQuest, 2021). DIRECTV, Cox Cable, and DISH TV are considered the leading cable networks in the region (CableTV, 2021). Millennials prefer comedy, action/adventure, and romance categories and show relative tolerance towards advertising, with a preferred length of 9.90 minutes (Friedman, 2019).
Hence, Ford should make use of such preferences and incorporate advertising videos in this timeframe to reach people in their 30s. On the radio, one can integrate short advertising of 30-60 seconds, along with broadcasting events that involve celebrities to increase customer loyalty. The best time to broadcast is in the morning and evening when most people drive to work or return home. Instagram was defined as the most influential platform for marketing to millennials. Social media advertising should primarily involve video content to capture attention, along with the effective use of photos and graphics such as logos and other brand assets.
To ensure the success of a suggested marketing strategy that involves multiple channels and platforms, I would implement the following five steps. Planning is critical, so I would invest some time to plan out future moves and consider data and performance indicators of previous campaigns. Besides, aligning marketing campaign goals and activities is essential to identify whether the chosen channels are appropriate. Then, I suggest collecting data to measure and assess performance throughout the campaign to align the activities based on the desired outcomes. Quality content is the essence of advertising, so high-quality videos and advertising in terms of content and creativity are needed to ensure success.
The advertising should not be intrusive, so one needs to maintain the balance. Particularly, the Instagram brand page should focus on appealing to millennials as active users through beautiful imagery without traditional sales messages. It is an efficient way to support the brand name and engage the audience. Therefore, involving users to interact on social media and share content with friends is another step to success. In summation, a complex approach to advertising through cable and regional television, radio, and social media should be based on the needs and preferences of the identified target audience.
Bedgood, L. (2017). How to attract more millennials into your dealership. V12. Web.
Bedgood, L. (2020). Millennial car shoppers are ready to buy – what your dealership needs to know. V12. Web.
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Friedman, W. (2019). Gen Z, millennials have higher tolerance for TV ads, study finds. Media Post. Web.
Thomas, M. (2019). Marketing to millennials in automotive. Perficient. Web.
Turner, G. (2019). Dearborn’s Ford, California’s Autonomic, Seattle’s Amazon Web Services Partner on vehicle connectivity. DBusiness. Web.
Tv stations in Scottsdale. (2021). MapQuest. Web.