Ford's New Ads Take On Rivals
Ford's New Ads Take On Rivals
Marketing Executive Hopes Combative Approach Burnishes Image
By GINA CHON; The Wall Street Journal - May 1, 2007
Ford Motor Co.'s new North American marketing chief hopes a more combative advertising strategy will put the company's vehicles back on America's shopping list.
Barry Engle, who became general manager of Ford division marketing in January, is the latest in a string of executives to tackle Ford's slumping U.S. sales and diminished image. Sales of cars and light trucks bearing the Ford brand name and its blue-oval logo fell by 8% last year and are down by 15% for the first three months of this year. Ford brand sales in 2006 were one million vehicles behind the brand's sales in 2000.
"I want it to be cool to buy a Ford again," Mr. Engle says.
His tasks could be a formidable one. Chicago-area resident Scott Young, who had been a loyal Ford customer for more than 30 years, says he has been turned off by bad experiences at dealers and quality problems he has had with Ford vehicles. He says he will likely buy a Honda the next time he shops for a vehicle. "I don't know what they could do to get me to change my mind," Mr. Young said.
Mr. Engle's latest hook is a new ad campaign that kicks off today for Ford's the F-150 pickup truck, its best-selling model and one of its most profitable. One of the new commercials talks about safety and the F-150's five-star crash-test rating, which takes a jab at the new Toyota Tundra's four-star rating. The ad doesn't specifically name Toyota, but a Ford engineer in the ad says "some of the others didn't do as well."
"We're getting out there to tell our story and ask the customers to judge for themselves," said Ben Poore, Ford's truck-marketing manager. Toyota Motor Corp. spokesman Bill Kwong said the company is still studying the four-star rating because internal test showed that the Tundra deserved five stars.
Sales for the F-series this year are down 14% through March, but it is ahead of the new Chevrolet Silverado by about 20,000 vehicle sales, Autodata Corp. says. The F-Series has a significant lead over the Tundra, which Toyota redesigned to be more competitive against the pickups of the Big Three. But Toyota is pushing to more than double sales in the segment.
The new F-150 ad illustrates the more aggressive Us versus Brand X style that Mr. Engle is pushing at Ford, after last year's expensive Bold Moves campaign failed to arrest Ford's decline. An online documentary, which was part of the Bold Moves strategy and aimed at showing a company in the midst of a turnaround, fizzled before the stated goal of 50 episodes because of the intrusiveness of cameras in the workplace. And two marketing executives who were architects of the Bold Moves campaign have left the company.
For another important product, the Edge small sport-utility vehicle, Ford's ad agency enlisted the help of playwright and director David Mamet. The ads boast that the vehicle is quieter than a Lexus and quicker than a BMW.
Mr. Engle acknowledged that companies usually avoid giving free advertising to rivals. But he said the challenge ads are meant to "provoke people to try our products and making sure we are on the list." Mr. Engle also said Ford needs to face the fact that consumers are pitting the company's vehicles against those from Honda Motor Co. and Toyota when choosing what to buy. As a result, he aimed at giving Ford's marketing a more confident tone.
That approach spawned the Ford Challenge advertising campaign, which asks consumers to compare Ford vehicles to their toughest competitors. The first television, print and online ads, launched at the beginning of this year, focused on the Ford Fusion midsize sedan. The commercials showed consumers comparing the Fusion favorably against a Toyota Camry and a Honda Accord, both of which were mentioned by name.
Honda spokesman Sage Marie said the Ford ad serves as validation that the Accord is a benchmark for the segment. Toyota's Mr. Kwong said Ford wasn't making an "apples to apples" comparison because the ad features an all-wheel-drive Fusion compared with a front-wheel-drive Camry.
At first, the Fusion got what Ford insiders call the "launch and abandon" treatment, as ads for the car largely disappeared several months after the vehicle hit showrooms after its October 2005 launch. Mr. Engle found that at the end of 2006, two-thirds of consumers weren't aware the Fusion existed. "In the past, we gravitated disproportionately on our new stuff."
But after Ford renewed its push on the Fusion with the Ford Challenge ads this year, Fusion sales accelerated, up by almost 33% in 2007 through March over a year earlier.
Mr. Engle is using some of the lessons he learned as president of Ford Brazil. Five years ago, Ford faced product and marketing-strategy problems there similar to those it faces now in the U.S. When Mr. Engle took over the marketing position in North America, he realized there was a lot more the marketing team could do with the Fusion, which was the market leader in South America.
Mr. Engle's next high-profile project will be this summer's relaunch of the sedan formerly known as the Ford Five Hundred, which will be renamed the Taurus. Mr. Engle declined to discuss the campaign details because it was too early, but he did say the Five Hundred was another great product that suffered from lack of awareness and appreciation.
By GINA CHON; The Wall Street Journal - May 1, 2007
Ford Motor Co.'s new North American marketing chief hopes a more combative advertising strategy will put the company's vehicles back on America's shopping list.
Barry Engle, who became general manager of Ford division marketing in January, is the latest in a string of executives to tackle Ford's slumping U.S. sales and diminished image. Sales of cars and light trucks bearing the Ford brand name and its blue-oval logo fell by 8% last year and are down by 15% for the first three months of this year. Ford brand sales in 2006 were one million vehicles behind the brand's sales in 2000.
"I want it to be cool to buy a Ford again," Mr. Engle says.
His tasks could be a formidable one. Chicago-area resident Scott Young, who had been a loyal Ford customer for more than 30 years, says he has been turned off by bad experiences at dealers and quality problems he has had with Ford vehicles. He says he will likely buy a Honda the next time he shops for a vehicle. "I don't know what they could do to get me to change my mind," Mr. Young said.
Mr. Engle's latest hook is a new ad campaign that kicks off today for Ford's the F-150 pickup truck, its best-selling model and one of its most profitable. One of the new commercials talks about safety and the F-150's five-star crash-test rating, which takes a jab at the new Toyota Tundra's four-star rating. The ad doesn't specifically name Toyota, but a Ford engineer in the ad says "some of the others didn't do as well."
"We're getting out there to tell our story and ask the customers to judge for themselves," said Ben Poore, Ford's truck-marketing manager. Toyota Motor Corp. spokesman Bill Kwong said the company is still studying the four-star rating because internal test showed that the Tundra deserved five stars.
Sales for the F-series this year are down 14% through March, but it is ahead of the new Chevrolet Silverado by about 20,000 vehicle sales, Autodata Corp. says. The F-Series has a significant lead over the Tundra, which Toyota redesigned to be more competitive against the pickups of the Big Three. But Toyota is pushing to more than double sales in the segment.
The new F-150 ad illustrates the more aggressive Us versus Brand X style that Mr. Engle is pushing at Ford, after last year's expensive Bold Moves campaign failed to arrest Ford's decline. An online documentary, which was part of the Bold Moves strategy and aimed at showing a company in the midst of a turnaround, fizzled before the stated goal of 50 episodes because of the intrusiveness of cameras in the workplace. And two marketing executives who were architects of the Bold Moves campaign have left the company.
For another important product, the Edge small sport-utility vehicle, Ford's ad agency enlisted the help of playwright and director David Mamet. The ads boast that the vehicle is quieter than a Lexus and quicker than a BMW.
Mr. Engle acknowledged that companies usually avoid giving free advertising to rivals. But he said the challenge ads are meant to "provoke people to try our products and making sure we are on the list." Mr. Engle also said Ford needs to face the fact that consumers are pitting the company's vehicles against those from Honda Motor Co. and Toyota when choosing what to buy. As a result, he aimed at giving Ford's marketing a more confident tone.
That approach spawned the Ford Challenge advertising campaign, which asks consumers to compare Ford vehicles to their toughest competitors. The first television, print and online ads, launched at the beginning of this year, focused on the Ford Fusion midsize sedan. The commercials showed consumers comparing the Fusion favorably against a Toyota Camry and a Honda Accord, both of which were mentioned by name.
Honda spokesman Sage Marie said the Ford ad serves as validation that the Accord is a benchmark for the segment. Toyota's Mr. Kwong said Ford wasn't making an "apples to apples" comparison because the ad features an all-wheel-drive Fusion compared with a front-wheel-drive Camry.
At first, the Fusion got what Ford insiders call the "launch and abandon" treatment, as ads for the car largely disappeared several months after the vehicle hit showrooms after its October 2005 launch. Mr. Engle found that at the end of 2006, two-thirds of consumers weren't aware the Fusion existed. "In the past, we gravitated disproportionately on our new stuff."
But after Ford renewed its push on the Fusion with the Ford Challenge ads this year, Fusion sales accelerated, up by almost 33% in 2007 through March over a year earlier.
Mr. Engle is using some of the lessons he learned as president of Ford Brazil. Five years ago, Ford faced product and marketing-strategy problems there similar to those it faces now in the U.S. When Mr. Engle took over the marketing position in North America, he realized there was a lot more the marketing team could do with the Fusion, which was the market leader in South America.
Mr. Engle's next high-profile project will be this summer's relaunch of the sedan formerly known as the Ford Five Hundred, which will be renamed the Taurus. Mr. Engle declined to discuss the campaign details because it was too early, but he did say the Five Hundred was another great product that suffered from lack of awareness and appreciation.
^ It's about time SOMEBODY does! You listening GM? Dale Jr. can only sell so many cars for you. How about some head to head comparisons? Or will GM just show that they're behind? "Feel good" and "patriotic" commercials DON'T CUT IT.
If I were to base what I bought on commercials alone, I'd have a new Tundra and Fusion in my driveway. I find both ad campaignes VERY effective.
If I were to base what I bought on commercials alone, I'd have a new Tundra and Fusion in my driveway. I find both ad campaignes VERY effective.
I'm glad to see commercials that focus on content rather than artistic creativity and feel good messages. I'm no marketing brain or anything so I don't know if that's the BEST choice, but it sure speaks more to me, as a car nut. Then again they've always done that off and on.
To let your competitors brag about their specs and not return fire is to, at least in the eye of the consumer, concede that they offer superior specs than you.
To let your competitors brag about their specs and not return fire is to, at least in the eye of the consumer, concede that they offer superior specs than you.
^ It's about time SOMEBODY does! You listening GM? Dale Jr. can only sell so many cars for you. How about some head to head comparisons? Or will GM just show that they're behind? "Feel good" and "patriotic" commercials DON'T CUT IT.
If I were to base what I bought on commercials alone, I'd have a new Tundra and Fusion in my driveway. I find both ad campaignes VERY effective.
If I were to base what I bought on commercials alone, I'd have a new Tundra and Fusion in my driveway. I find both ad campaignes VERY effective.
Remember Miller's "President of Beer" ads? Miller sales rose, but only after Budweiser responded to their barbs.
Right now people consider the Toyota Tundra a noncompetitor with the big guys. Their sales have mostly been to foreign car owners - few conquests. GM and Ford should continue for now to pretent that they're trucks are too good to compete with the pretender.
Are you sure about that? Sales are up 74% over April 2006, up to 14,200 trucks sold. Yeah, small potatoes to Ford and GM numbers, but that's QUITE and increase. I'm sure the ads haven't helped
In February, when they came out sales were similar to what they had been previously. Last month they were a little over 13K, this month over 14K. I see a pattern, and not one I'm very fond of.
http://www.prnewswire.com/cgi-bin/st...4578147&EDATE=
In February, when they came out sales were similar to what they had been previously. Last month they were a little over 13K, this month over 14K. I see a pattern, and not one I'm very fond of.
http://www.prnewswire.com/cgi-bin/st...4578147&EDATE=
Last edited by Silverado C-10; May 1, 2007 at 02:21 PM.
I have noticed that GM is mentioning and comparing their vehicles to the competition a bit more. In this area anyway, there's an Envoy commercial that plays a lot which states "More standard horsepower than Dodge and Toyota and more cargo capacity than Nissan".
I agree with the elevation of lesser rivals theory when you run targeted ads, to a point. Targeted ads seem to be effective when you're the new kid (Fusion, Tundra) but are detrimental when you're already the established player in the class. I too am a little tired of the worn "Our Country" truck ads, it would be nice if they could get down to statistics and specs. We're just starting to see that with Chevy pushing the power and fuel economy of the 5.3 half tons.
Toyota is still not on pace to sell their planned 200,000 Tundras this year (sold 14,000 of them in April) so I don't believe it is in GM's best interests to directly engage Tundra. Especially when they still lack a widely available 6 speed.
EDIT:
That percentage certainly sounds impressive, but consider that in April 2006 Toyota was still selling the end-of-its-life and thoroughly unimpressive previous-gen Tundra. By that point, the truck had been on the market many years and the die-hard import guys had long since bought up their share.
I agree with the elevation of lesser rivals theory when you run targeted ads, to a point. Targeted ads seem to be effective when you're the new kid (Fusion, Tundra) but are detrimental when you're already the established player in the class. I too am a little tired of the worn "Our Country" truck ads, it would be nice if they could get down to statistics and specs. We're just starting to see that with Chevy pushing the power and fuel economy of the 5.3 half tons.
Toyota is still not on pace to sell their planned 200,000 Tundras this year (sold 14,000 of them in April) so I don't believe it is in GM's best interests to directly engage Tundra. Especially when they still lack a widely available 6 speed.

EDIT:
Originally Posted by Silverado C-10
Are you sure about that? Sales are up 74% over April 2006, up to 14,200 trucks sold.
Last edited by Z28Wilson; May 1, 2007 at 02:22 PM.
Even so, they still sold between 110-120 trucks from 03 to 06, which is pretty consistent, considering the rise in fuel costs over the past couple of years. *IF* they can keep a pace of 14K per month, that's still a significant gain. Was the sales surge pre-orders for crew-maxes? Was it because Toyota was offering 5K in incentives (YES, 5K!) on the new trucks? Who knows, I'm just saying everyone needs to stay on their game. The Tacoma rules the midsize market. And it only took it a couple years to take over GM and Ranger sales.
Even so, they still sold between 110-120 trucks from 03 to 06, which is pretty consistent, considering the rise in fuel costs over the past couple of years. *IF* they can keep a pace of 14K per month, that's still a significant gain. Was the sales surge pre-orders for crew-maxes? Was it because Toyota was offering 5K in incentives (YES, 5K!) on the new trucks? Who knows, I'm just saying everyone needs to stay on their game.
Originally Posted by Silverado C-10
The Tacoma rules the midsize market. And it only took it a couple years to take over GM and Ranger sales.
Isn't it disheartening to see GM and Ford give up the midsized truck market? I know it is to me. Not to even try, just let others have it. That Tacoma is a great truck for its market though.
A rise from 120,000/year to 170,000/year is certainly not what Toyota was looking for, especially after investing all that money into a new plant (and studying the possibility of opening a second Tundra plant!) Really, I don't consider that to be all that impressive considering the new Tundra is leaps and bounds ahead of the old one. So far the sales figures tell me the last Tundra owners are buying them, as well as some potential Titan customers. There are stories of them picking off formerly Domestic truck guys but those seem to be random anecdotes, not necessarily the norm. Now, I realize it is still early so we'll have to wait and see. But I would highly, HIGHLY doubt that GM is underestimating Toyota in anything at this point, and I don't feel a lack of attack-style ads on the new Tundra signifies that they aren't concerned.
I do find it humorous that Toyota has basically "bombed" in their attempt to be competitve in the NASCAR cup series and that the Tundra sales have been far from what they had hoped and expected. I'll bet they're wondering
they did wrong
"I want it to be cool to buy a Ford again," Mr. Engle says.
In the '80s, outside of Thunderbird, Ford ran with the same group of virturally unchanged or cars just about the entire decade. Yet they were cool. Why?
Ford put performance, quality, and thought outside the box. Mustangs got yearly performance upgrades! You could get AWD on a Tempo! You could get Mustangs highest performing engine on a...... Lincoln!
Even V6 Thunderbirds had dual exhausts!
The bread and butter Ford Taurus could be had with the most advanced high performance engine in it's class.....made by Yamaha....with a stick!
Ford of Germany was so hot that Ford had the guts to risk importing a couple of those cars here. They weren't ashamed to use the hot Escorts of Europe to sell the much different Escorts here.
Ford's advertizing guys came up with such classics as: "Quality is Job one!" and "Have you driven a Ford lately?"
The lisence plate frame on my '85 Mustang was bought at my local Ford dealer and had a deviation of that tagline. It said "Have you chased a Ford lately?"

Ford established an aftermarket book and inventory that drawfed everyone else's.
Don Peterson made Ford chassis engineers take a Bondurant course, and made race driver Jackie Stewart a paid consultant.
Ford was against the ropes as it is now. It had to run with a fleet of existing models and only modest budgets. But Ford managed to establish itself as not only a high quality brand, but also a "Cool" brand. IMO, it takes more than simply calling out others (though it's a start). It's actually getting out to gatherings of young import buyers (as opposed to brainstorming in some advertising boardroom) and actually find out why certain cars and brands are cool instead of simly grabbing a word or a phrase and running with it without a clue.
Ford has all the ingredients right now. They have what seems to be a killer engine program. They have a wider variety of RWD platforms of anyone here in the US. They have an excellent European lineup (and parts bin). They have a majority stake in Mazda and their parts bin (and Mazda based cars). They still have a Performance division (if not SVT itself). Ford is on a quality roll right now. Fusion is actually a cool car waiting for the right attention.
At the very least, Ford has the ability to run a holding action and regain traction till new models come out, and gain some new fans in the process. But it's going to take more than " Our brand versus Brand X" commercials.
The sad thing is that it's far cheaper to create a modified engine or parts to personalize (and therefore make something actually cool) than it is to spend advertizing simply telling someone something is cool.
I'm glad to see commercials that focus on content rather than artistic creativity and feel good messages. I'm no marketing brain or anything so I don't know if that's the BEST choice, but it sure speaks more to me, as a car nut. Then again they've always done that off and on.
To let your competitors brag about their specs and not return fire is to, at least in the eye of the consumer, concede that they offer superior specs than you.
To let your competitors brag about their specs and not return fire is to, at least in the eye of the consumer, concede that they offer superior specs than you.
Let me OFT again!
To let your competitors brag about their specs and not return fire is to, at least in the eye of the consumer, concede that they offer superior specs than you
"As American as Apple Pie!!"
Good going. Cus advertising works. The comparos that are done should be like what Ford is doing. Do the comparo's. Do everything that makes the cars as good as Toyota and Honda. If not as good pick out the things they dont have. Like the V8 Impala with MOD that Toyota does not have. The crash standards that the Tundra does not meet.
This is one thing I have been saying all along. "This is our country" is not cutting it.
Someones gotta wake up..
The one thing no one should do is underestimate Toyota…Detroit certainly did when, not all that long ago, Toyota and the rest were selling tiny, underpowered tin cans that could barely be classified as “cars” by American standards.
The Tundra is far from a failure and I wouldn't count it out of the picture.
A rise from 120,000/year to 170,000/year is certainly not what Toyota was looking for, especially after investing all that money into a new plant (and studying the possibility of opening a second Tundra plant!) Really, I don't consider that to be all that impressive considering the new Tundra is leaps and bounds ahead of the old one.
------------------------------
Toyota Braces for Slower Sales
Of 2007 Tundra Pickup Trucks
By NORIHIKO SHIROUZU
September 27, 2006 8:27 a.m.
DETROIT -- Even as gas prices settle back to $2-a-gallon levels, the manufacturing side of Toyota Motor Corp. is still so worried about firm fuel costs that it's preparing for a slow start for the newest generation of the big Toyota Tundra pickup truck.
Toyota's big pickup truck, for a good part of the last decade, has lagged behind the hulking beasts from Detroit. Too small to be considered a real truck and lacking power in towing and hauling, each year Toyota sold a little over 100,000 vehicles, about 5% of the U.S. full-size truck market.
With the new truck, Toyota believed those days of catch-up may finally be over. They redesigned the truck -- Toyota's third try since the mid-1990s to crack the Chevy-Ford-Dodge stranglehold on the large pickup market -- to match or top the Detroit half-ton trucks in size and most measures of power. They were confident enough in the truck that it tooled up enough production capacity at an existing plant in Princeton, Ind., and a brand-new factory in San Antonio, Texas, to churn out more than 300,000 Tundras a year, triple the current sales level for the truck.
Still, when Toyota sales executives discussed their expectations earlier this month for the Tundra's potential on the marketplace, they said Toyota aims to sell just 200,000 Tundras a year. The goal would double the truck's current market share in America's full-size pickup truck market but would leave idle more than a third of the company's manufacturing capacity for the new Tundra -- a source of inefficiency Toyota normally despises and avoids at all costs.
The new Toyota Tundra is expected to go on sale in Feb. 2007.
Toyota sales officials said its goal to sell 200,000 new Tundras a year is a conservative estimate of demand and sees it highly probable for the company to beat the goal. But senior Toyota manufacturing officials, contradicting the sales officials' relative optimism, admitted privately they're beginning to worry about the longer term prospects of the new Tundra as U.S. consumers show signs of being spooked by firm gasoline prices and a possible slowdown in the U.S. economy. Toyota fears those consumers may opt for more fuel efficiency vehicles, or continue to delay purchases for a long time.
Roughly 2.4 million of big pickup trucks were sold in 2005 -- by far the single largest segment in the U.S. auto industry. This year, sales are down 14%, hurt by high gasoline prices and a slowdown in the housing market that has caused contractors and builders to delay new purchases.
To prepare for the worst, those manufacturing officials said they have begun exploring the possibility of bringing more truck-based vehicles to Indiana to produce on the same assembly line where the Tundra and the Sequoia are being built today. The Indiana plant needs to be more flexible, they said, especially if Toyota decides to go ahead and build a second line in San Antonio and make San Antonio a factory dedicated to production of half-ton trucks and bigger heavy-duty pickups -- a move Toyota confirms is considering actively.
The executive said it wasn't likely for Toyota to stop producing Tundras in Indiana altogether and let the Texas plant be the sole source of full-size pickup trucks.
Despite the pessimism on the manufacturing side of the company, Toyota sales officials insisted they should be able to sell more than 200,000 Tundras if marketing plans for the truck prove effective and the Texas and Indiana plants are able to ramp up production quickly. That's because there is a sizable core of buyers in the market that need pickup trucks for work or leisure no matter what happens to gasoline prices. For those consumers, a truck's capabilities in towing and hauling, as well as its payload and horse power, are far more important that it expects high gasoline prices aren't going to hurt sales of the new Tundra.
He would not provide an estimate for the new Tundra's fuel economy but pledges to beat the fuel efficiency of General Motors Corp.'s new Chevy Silverado truck, which started reaching dealerships this month. "We focused on improving performance of the truck significantly, but that doesn't mean we sacrificed fuel economy," Obu said. "Expect us to beat the Silverado."
More at link, subscription required http://online.wsj.com/article/SB1159...l?mod=ITPWSJ_1
He would not provide an estimate for the new Tundra's fuel economy but pledges to beat the fuel efficiency of General Motors Corp.'s new Chevy Silverado truck, which started reaching dealerships this month. "We focused on improving performance of the truck significantly, but that doesn't mean we sacrificed fuel economy," Obu said. "Expect us to beat the Silverado."


