Ford Marketing....the truth!

[Cuey]

Here is a guide of what each car manufacture spent last year on spending with advertising

Last year saw Australians buy more cars than ever. The sales figures went Toyota (22.5 per cent market share), Holden (14.0 per cent) and Ford (10.3 per cent). Logically, the dollars spent advertising these brands should correlate to sales success, but such is the beauty of the advertising world that the figures hardly interact.




Figures released today by Nielsen media research show that new car advertising is on the rise, with an 8% overall increase in car manufacturer spending. Out of the top 50 advertisers for 2007, eight were car manufacturers, but not in the order expected.

Coming in first for manufacturers was General Motors (Holden, Hummer, Isuzu) which spent an estimated $70-75 million, an increase of 47% over 2006. No doubt the majority of that money was spent launching the VE commodore and the Hummer brand.

Mitsubishi Australia, of all manufacturers, came in second, with spending of about $65-70 million - a 44 per cent increase in spending over 2006. Mitsubishi’s advertising budget also included that of Trifty car rentals.




Coming in a close third was Toyota, the world’s largest manufacturer. Despite having the largest market share, Toyota actually decreased its advertising spend by 13% from 2006 (Aurion launch), down to around $65-70 million.
Ford spent $45-50 million in 2006. That figure is expected to rise dramatically this year as the blue oval launches the new Falcon.

Nissan and Renault came in fifth with $35-40 million while Mazda came in sixth with around $30-35 million. DaimlerChrysler (or now known as Daimler and Chrysler) and Honda also spent around $30-35 million.

The Federal government spent the most money thanks to the federal election, costing tax payers around $220 million. The rest of the top positions were taken care of by Coles (175), Telstra (135) Harvey Norman (130) and Woolworths (115) .

[CADSKY]

good to know that ford arnt blowing all there $$$$ on advertising when they have low sales figures

[XR8 Uterous]

Originally Posted by swan_ford

good to know that ford arnt blowing all there $$$$ on advertising when they have low sales figures

Maybe one of the contributing factors to the low sales is the lack of advertising?

[CADSKY]

yeah i mean atleast they dont have low sales figures with high advertising $$$$ spent

[Kryton]

id put the lack of sales down to everyone holding off and waiting for the FG.

[deesun]

I wonder how all those millions relate as a percentage of sales. Eg Fords 45-50 million may be 10% of sales and Holdens 70-75 million may also be 10% of their sales too.

[Jab]

If they spent $45-50 million I have to ask

1. Why do we here (AFF) generally have the perception that FMC AU have poor marketing/advertising ? Is the potential target wrong from an FMC perspective or is it just us (playing devil's advocate) !

2. Do the general populous think the same or even care ?

Although not a marketing type person I have owned a business that imported a product that had two streams, a general product and a product aimed at the enthusiast. FMC seem in my humble opinion to have forgotten to still target the enthusiast client in any marketing. An advertisement targeting this end of the market achieves two things, it makes the current ‘user’ feel good about seeing his/her product being advertised and secondly gives the user of a more ‘generic’ product something to aspire too.

Of course I maybe entirely wrong ! but the marketing/advertising just doesn't seem to be hitting the mark and I would be concerned if I was a FORD exec about 'bang-4-buck'.

Like all here I sincerely hope that we all end up with our mouths agape when the mainstream FG advertising hits.

Jim.

[phillyc]

Originally Posted by deesun

I wonder how all those millions relate as a percentage of sales. Eg Fords 45-50 million may be 10% of sales and Holdens 70-75 million may also be 10% of their sales too.

Sales were about $2Billion for Ford and about $3Billion for Holden. Can't remember where I read it, but it worked out an average of about $20,000 sale price per car.

The ad-spend therefore works out pretty close to 2.5% or about $500 per vehicle for both Ford and Holden. Toyota about 1.5% or $300 per car.

[cycle myth]

It would be good to know if this included tier 1, 2 and 3 advertising.

An even better insight might be the $ value of customer and Dealer incentives (but you will never get that competitive data).

Such a difficult thing to match up the bang for buck outcome......

[DayTE]

But how much of that $45-50mill was part of sponsership and payments of the likes of Symonds and the other cricket blokes as well as things like the Ranger Cup and the likes?

That's one thing I have noticed over the last few years, is that Ford are now sponsering/spending money on other sports again now. I remember Ford pulled its $$$$ from the Aus open to direct it towards the V8's. Which I suppose it's good for the likes of a lot of us Forum members but, from a marketing point of view is it "preaching to the converted"?

I still belive that Ford could be a lot more agressive with their marketing though.

[AUXRVIII]

Originally Posted by EL XR6

Maybe one of the contributing factors to the low sales is the lack of advertising?

So what would be the excuse for Mitsubishi?
Ford Oz's range of vehicle isn't as extensive as Holden so their ad spending shouldn't match.

[Nikked]

Right now we need an ad like this:

Show Some lions frollicking out in the desert plains, (perhaps higlight the falcons economy with the lions thristy) with some close up images of the Xr6-t/Xr8's grill with the engine grunting. then a attack type scene (perhaps like the Territor turbo adds.) leaving only a lion carcass behind.

New falcon, New Breed

[1970XW351]

Originally Posted by T6Ute

I still belive that Ford could be a lot more agressive with their marketing though.

How true, when we first won bathurst after the big drought, there was the "lion spanking" ad to congratulate the boys... last year after backing up the win... nada. As for ads aimed at the enthusiast amongst us... they are still using the original FPV ad with the nuclear blast footage... I haven't seen a new ford ad for ages! the latest being that infernal Mondeo ad which is pretty dull to say the least.... I'm convinced there are loyal ford boys and girls out there who would gladly come in and help out with an ad for no more than a carton of finest libation.... So why can't the folks that are (I assume) paid quite handsomely for their marketing "expertise" do a half decent job of making people see the brand as being worthy of consideration? Don't get me wrong, there have been some great ads in the past, just seems to have petered right out over the last year or so...

[XRNIL8]

Originally Posted by Nikked

Right now we need an ad like this:

Show Some lions frollicking out in the desert plains, (perhaps higlight the falcons economy with the lions thristy) with some close up images of the Xr6-t/Xr8's grill with the engine grunting. then a attack type scene (perhaps like the Territor turbo adds.) leaving only a lion carcass behind.

New falcon, New Breed

Why aren't you working in Ford Exec or Advertising department?

[Jayden]

lots of fast close up shots. focus on quality cinematography with an inspiring soundtrack. no expensive CG for the hell of it. its not that hard and it doesn't need a corny spin that tries to appeal to some type of person ie. family / woman / bloke. holden avoids that as its disasterously alienating. I loathed the fg unveiling act btw. grab the enemy by the balls or be eaten I believe.

[IDT]

I have a question regarding sales. Do the non Australian built Ford and GM products count as Ford/Holden sales respectively. If sold in this country? and if so are they weighted. Can anyone give a definative answer?

The reason I ask is because if a European built Ford is sold here and Ford Oz get the credit when sales numbers are calculated then does Ford Europe gets the credit for it as well. If they do then as far as I am concerned that is double dipping and the annual sales fiqures (internationally at least) are over inflated and not at all accurate.

I also believe (and this is opinion only) if you rebadge another manufacturers car and sell it as your own then they should not count. Even if you share a parent company. To me that is exactly the same as dealing in second hand cars and as far as I am concerned if they do count then every Ford owned company that makes cars should count as Ford sales in OZ as well.

Yeah I know I am on my soap box. But hey, who/what defines the difference between an importer and a manufacturer?

[woodsy109]

Mazda have obviously spent their money wisely. All I ever hear on TV is zoom zoom!

[XAGSV8]

It shouldn't be about the dollars spent. It should be about the quality of advertising.

[Elks]

Originally Posted by woodsy109

Mazda have obviously spent their money wisely. All I ever hear on TV is zoom zoom!

To right Woodsy. Simple message about an intangible and repeat it often. As per "oh what a feeling".

And FoMoCo's tag line is?......

[cycle myth]

Getting the message right is one thing.

BUT does that mean you would spend more on brand (i.e. zoom zoom) or spend more money on the dealer channel support with advertising and paying for retail based offers (like falcon $32,888 drive away)???

[FlipXW]

Originally Posted by myts

And FoMoCo's tag line is?......

You'd be popular too .

[DanielXR8]

Ok so Ford does a bang up job on advertising and spends a mint. That won't make my local dealer any better, or the dealer that was near the place I lived before this one. The FG Falcon can be bloody brilliant, but if I have to deal with the same dealer principal I have for Ford in my home town, it will remain a no sale for me and I suspect many others.

It can be a great car, great ads etc, but until Ford get the dealer network in order and work hard to restore consumers faith in the quality and commitment of Ford to its customers, a great ad is just that. Ford is on the nose with too many people and has a history of not doing the right thing that has deservedly given it a bad name with many consumers. Fixing that should be where the money is spent first. A nice ad won't get you to buy from a bad dealer or company and thats where Ford is at. Hasn't anyone else noticed that ALL Ford product sells below where it should be in the market?

Comparing Ford with Holden is a lost cause as well, as Holden is competing with Ford to see who can get the worst reputation amongst consumers. Toyota for commercial and Mazda for retail is the benchmark that we should be comparing Ford against and demanding better from them.

Ford must get its house in order and then advertise that!

Dan

[Hybrid34]

ahh, no wonder ford ad's are soo cheap n crappy, i compare all the ads holden and toyota make..even some suzuki ads their so much better, really appealing..as for ford they jsut show you the car in a show room and say its a great price....
they really need to make the cars more appealing through tv/....

[jakkes]

how ever does/designs fords adds needs to be throne of a tall bridge
their the worst of all the car adds the cricket ones really pi$$ me of

i also think ford has forgotten that there enthusiasts do a lot of advertising for them they need to do some thing to get us excited/Bragg about

[vztrt]

Originally Posted by XAGSV8

It shouldn't be about the dollars spent. It should be about the quality of advertising.

I assume by this you mean the rate of return or ROI, mo point in spending a crap load of money if it doesn't sell the product.

[robertjp]

"it's an FG officer......."

[GK]

Originally Posted by DanielXR8

Ok so Ford does a bang up job on advertising and spends a mint. That won't make my local dealer any better, or the dealer that was near the place I lived before this one. The FG Falcon can be bloody brilliant, but if I have to deal with the same dealer principal I have for Ford in my home town, it will remain a no sale for me and I suspect many others.

A nice ad won't get you to buy from a bad dealer or company and that's where Ford is at.

Dan

I can understand your sentiments here, but a dodgy dealer wouldn't stop me going to another Ford dealer for a car I really wanted.

If you live in a small town with one Ford dealer, as I used to, and you drive around with a new FG, that dealer and everyone else in your town will know you've bought it elsewhere.

If you have to drive 200 km round trip to get it serviced where you bought it and choose to do so, in a small town, that speaks volumes.

GK

[04redxr8]

Originally Posted by DanielXR8

Ok so Ford does a bang up job on advertising and spends a mint. That won't make my local dealer any better, or the dealer that was near the place I lived before this one. The FG Falcon can be bloody brilliant, but if I have to deal with the same dealer principal I have for Ford in my home town, it will remain a no sale for me and I suspect many others.

It can be a great car, great ads etc, but until Ford get the dealer network in order and work hard to restore consumers faith in the quality and commitment of Ford to its customers, a great ad is just that. Ford is on the nose with too many people and has a history of not doing the right thing that has deservedly given it a bad name with many consumers. Fixing that should be where the money is spent first. A nice ad won't get you to buy from a bad dealer or company and thats where Ford is at. Hasn't anyone else noticed that ALL Ford product sells below where it should be in the market?

Comparing Ford with Holden is a lost cause as well, as Holden is competing with Ford to see who can get the worst reputation amongst consumers. Toyota for commercial and Mazda for retail is the benchmark that we should be comparing Ford against and demanding better from them.

Ford must get its house in order and then advertise that!

Dan

I have a somewhat different experience.

Around mid 2003, I decided to go and buy a new work Ute. I had always been a Holden man and only had 1 Ford (a '91 XF Falcon ute that was falling apart). I only bought the XF because I wasn't making much money at the time ('96) and the Falcon was about $6000 cheaper than a similar Commodore Ute. I never like the XF (poor build quality) but I drove it into the ground anyway.

I went out to look at a new ute. First stop- Ford Dealer. I don't remeber the marketing at the time, but I remember it had 182 Kw 6. I was intrigued. I went in, had a look, went for a drive (quite impressed) and sat down to negotiate a price. The dealer then asked for my details and said "I will call you tomorrow with the best price I can do. Thought Ok, sounds weird, but why not? He called back informing me that an XL SE was available and that my total discount was about $5000. (Se pack and fleet buyers).

Next, over to the Holden dealer. Saw the Ute i wanted on the lot, and enquired about. Dealers first question, "How much do you want to pay for it?" I offered $5000 less than his retail price. "No, no, can't do it for that." Anyway, took it for for a drive and thought, this handles very badly. Next day, Holden dealer rings, asks "How much you want to pay for it??" I say the same price i said before. This continues every day for a week. I get one courtesy call from the Ford dealer, just to inform me, that the SE's are going to be stopped soon. Thats all.

At the end of the week, I have had enough of the Holden dealer ringing every day, asking the same thing. I say to him, forget it, I am going to buy the Ford. He starts ranting about how Holden does not need to compete with Ford, and how the inline 6 is prehistoric (His motor still had pushrods ). He then offers me the Holden for a further $1000 less than I originally offered him. I had enough, and went and bought the Ford.

Over the next 6 months it really grew on me. We then decided to go the Brisbane motor show. We saw a Holden Berlina wagon that we liked and asked how much? Came back at $52,000 on road for a V6. Any way, drove a new one away for $44,000 on road and got a good trade for our VT sedan.

Heres where it got interesting for me. I had a new Holden, and a new Ford side by side, and I was a dyed in the wool Holden man. The Holden was the biggest piece of rubbish I had ever owned. My 1979 HZ kingswood was a far superior car in handling, braking, drive, everything. When things started to go wrong with the cars, that was where I noticed the biggest difference.

Ford bent over backwards, to solve any problem (I only had a couple of minor issues). While Holden did the same 2 repairs for the one problem, and then declared there was nothing wrong it. We went to four different dealers, (even 1 interstate). First contact with each dealer resulted in, "yes there is a problem and we know how to fix it." 2 attempts later, and its "no, there is nothing wrong with it."

This supposed "luxury Wagon" was back at the dealers every 3 months. At the 2 week old mark, qoing into turn too quick, hard on the brakes, and the ABS didn't even work. I locked up and kept going straight. The handing and bodyroll were appalling, the brakes felt like that they had permanent brake fade, and all this was supposed to be "normal" on a car retailling $52,000.

After getting through to Holden head office at the 3 yr mark, they sent an engineer to look at the the car. He too, declared there was nothing wrong it. Facing the end of my warranty period, I traded this bucket, on a 2004 XR8. I got $18,500 for the wagon with 40,200 klms on it. (it also had full leather trim and was in new car condition), We paid $31,500 for the XR with 65,000 klms. (It looks like its still holding its value well), and we actually enjoy owning the car. (Were even members of the XR6 and XR8 club of Queensland). I also traded the BA XL SE, on a BFII trayback, No more Holdens in this household.

Sorry for the essay, but this was a life changing experience for me.

Ned

[GS608]

Originally Posted by myts

And FoMoCo's tag line is?......

Wasn't it something like Can't get enough of this, for the BA?

either way they really need a good tag line, Holden have holden go which is pretty crap, mazda and zoom zoom, and oh what a feeling toyota. yep ford need a tagline something catchy that everyone remembers

[DanielXR8]

Originally Posted by GK

I can understand your sentiments here, but a dodgy dealer wouldn't stop me going to another Ford dealer for a car I really wanted.

If you live in a small town with one Ford dealer, as I used to, and you drive around with a new FG, that dealer and everyone else in your town will know you've bought it elsewhere.

If you have to drive 200 km round trip to get it serviced where you bought it and choose to do so, in a small town, that speaks volumes.

GK

I live in a country town and did exactly what you suggested GK. The dealer was not impressed and I heard quite a bit on the grapevine about it. Then when I tired of the hassle of leaving town for servicing I got a Mazda locally. Long story short, Ford dealer tried to sue me for loosing business and harming his reputation and demanded the posts I made on this site be withdrawn (which they were).

Still most people won't go to that much trouble, they just don't buy the brand if they have no other choice pf dealer and many would question why they should go to that much trouble anyway. In my opinion that happens often enough that Ford should make fixing the dealers their top priority. Even in a large city like Melbourne, why should you need to "shop around" the same brand of dealers for service? Price ok, but service? Says to me there is a much bigger problem at Ford then a bad tv commercial. The BA Falcon and SX Territory were good advertising campaigns that bought a lot of people in to Ford showrooms and sold them a car.

Then far too many Ford dealers spent the subsequent years reminding them why they shouldn't have. Ford doesn't help by not paying enough money for warranty work and ignoring many legitimate complaints about faults in cars. That experience will stay with consumers and be spoken about at family and work gatherings, years after the commercial is off the air and forgotten. I think Ford is now at a tipping point. If they don't get their corporate house in order and realise that they are not good enough when it comes to the customer experience, they will be a minor player in Australia in ten years time.

Strong words, but the writing is already on the wall and Ford and some enthusiasts are choosing not to see it. Doesn't mean its not there.
That was really the point I was trying to make.