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Ford first introduced the Fiesta in 1976 in response to the gas crisis. It was marketed as an economy car and although it had little success in the United States, it did well in Europe where smaller cars are the norm.  In 2008, Ford decided to re-launch the Fiesta and market it to Millennials (those consumers born between 1979 and 1994).  The company began its rebranding endeavor by scanning the macroenvironment.  Consumers shopping for cars are attracted by different factors such as good gas mileage, ease of handling, external esthetics, advanced technology, etc.  Ford targeted college graduates in urban areas looking for economy in mileage as well as amenities that give a full-size car feeling.  Technology was built into the Fiesta as a given and they successfully integrated demographics, technology, economy, and social issues like low fuel usage as a green initiative. The end result-a car with a sporty feel that exceeded fuel economy standards and customer expectations!  Ford’s goal is to retain customers and serve them as they grow into other vehicles offered by the company.


Discussion question # 1



When analyzing the market, what were the primary macro-environmental factors that Ford used to re-launch the Fiesta in the United States, and how were they capitalized upon?


Discussion question # 2

We know that the re-introduction of the Fiesta failed.  Why?  What factors do think contributed to this failure?