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Direct Marketing Lights the Ford Way Forward

September 8, 2009 | by Bruce Britt
Brand Marketing, Case Studies, Integrated Marketing, Large Business
 

Opened mailbox with light shinning out

It’s the question every business is now forced to ponder: how to steer through a long, crippling recession? Those seeking authoritative, real-world advice would be wise to consult the brass at Ford Motor Co.

In late 2008, just as a brutish economic downturn was blindsiding the American auto industry, Ford began a monthly market share surge that would prompt the company to boost 2009 production by 16 percent. Now, having dodged the consumer retrenchment that helped throw its U.S. competitors into turmoil, sales are up and Ford has former naysayers examining the company’s efforts for clues to success.

Of course, when the auto crisis exploded into full national view last year, many observers thought that Ford, the second-largest of the Detroit Three, would be the hardest hit. However, it has been Ford’s two domestic rivals that have suffered more. One’s CEO was canned by the President of the United States. The other automaker was sold to foreign interests. Both were recipients of large (and somewhat unpopular) government-funded bailouts that required drastic job cuts and plant closures. And even with the bailouts, both still were forced into Chapter 11.

Meanwhile, Ford has steadily moved toward recovery. The company refused the bailouts (a marketing coup in itself as it enhanced the impression that Ford’s circumstances weren’t as dire as others’.) And though Ford has certainly had its battles — the domestic auto industry has lost more than 400,000 jobs in the last decade — the company has avoided bankruptcy and other ugly public episodes that have befallen competitors. And more significant, Ford has begun to enjoy renewed success. In August, it reported that sales of new cars and trucks had edged up 1.6% in July from a year earlier, fueled by the government’s “Cash For Clunkers” program. The rise was the first year-over-year monthly sales increase for a Detroit automaker since January 2008.

Even a cursory peek under the hood of Ford’s success reveals some obvious keys to its reemergence: decisive leadership, innovative new vehicles and a streamlined lineup. An integrated marketing strategy has boosted Ford’s public perception and allowed the company key opportunities to recast the conversation about its products.

This is because, along with helping to bump sales, the marketing campaigns have also helped create an impression that Ford is stable and poised to ride out the recession. While other carmakers are forced to grapple with consumer fears about their solvency, the value of their warranty guarantees and the impact of foreign ownership, Ford is able to talk about its cars and trucks.

“Our biggest challenge is to improve favorable opinion and consideration,” says Ford senior director of marketing Matt VanDyke. “We’ve got to demonstrate to consumers that they need to put us on the shopping list. People know Ford, but they don’t know about the independent studies that show our quality is equal to, or better than, (foreign cars and trucks). So we’re inviting people to explore what we offer.”

Mixing in Mail

In extending this invitation, Ford has blended a range of marketing media in an effort to maintain a running conversation with a variety of consumers. Its marketing efforts have included massive Web portals, e-mail campaigns, personalized URLs and well-timed direct mail campaigns aimed at holding the brand faithful and luring competitors’ customers. Ford officials think the conversations have helped lead to conversions. “When we develop integrated marketing campaigns for model launches, direct mail is a key ingredient for us to be successful,” says VanDyke.

Tapping its customer database, Ford communicates with consumers who opt in based on Web site preferences or showroom leads. Most recently, Ford used direct mail to promote the 2010 Fusion. “We’ve looked at Ford sedans owners and those likely to be downsizing from bigger vehicles,” VanDyke says. “We reach out to those model owners and inform them about the Fusion, and invite them to come in and test drive and experience it.”

Another weapon in Ford’s direct mail arsenal is my FORD magazine, an opt-in, branded overview publication. “People want to know what we’re doing as a company, and (my FORD) provides a lot of that information,” VanDyke says. “It’s an incredibly efficient direct marketing tool that allows us to offer people our new product information in advance, general customer interest stories and private offers to generate additional sales for our brands.”

VanDyke says Ford customers consistently relate to the importance of direct mail. “Over and over, people tell us that when they print out pictures from our website on their personal printers, it doesn’t have that same emotional connection as the pieces we craft for projects like my FORD,” VanDyke says. “We will continue to make those pieces because customers continue to want it.”

A World of URLs

But customers also want the benefits of digital marketing components, and Ford is blending the Web into its marketing practices to satisfy them. According to VanDyke, more than 80 percent of Ford customers go online before they go into the showroom, which could explain the company’s pervasive online presence. At the company’s main site, consumers can spec out models, build and price vehicles and watch rich videos to experience and understand the product.

“What we find is that with the Internet, we can really provide the information people want while capturing the information they want to share with us,” VanDyke says. “By the time people show up in the showroom, they know exactly what they’re looking for.”

In July, the company launched www.fordvehicles.com, which also highlights the benefits of its cars and trucks. An additional site, www.fordstory.com, includes information about the company, sustainability, green technologies and other topical issues.

The company also recently launched letfordrecycleyourride.com, a site dedicated to explaining Ford’s role in the “Cash For Clunkers” program, which lets consumers trade in less fuel-efficient cars for vouchers toward more eco-friendly rides. Ford augmented the site’s message with more than 4 million direct-response mailings that further explained how customers could take advantage of the program. The four-page, 10”x6” foldover mailers included information on new Ford products eligible for the federal program, along with eligibility requirements, local dealer information and a reminder that the government program can be combined with Ford incentives. The mailers were followed up with additional postcard and e-mail appeals.

Ford has mixed its Web and mail efforts with social networks, too. “We allow people to aggregate the (digital) content, share it with their friends and Facebook pages and learn how to follow us on Twitter,” says VanDyke. “With all this, we’re still scratching the surface in the kinds of things that we can do.”

Momentum in the Marketplace

Early indications suggest that the marketing push is working even better than some might have expected. Analysts and consumers have taken notice of the leaner, meaner Ford. Beginning in 2007, the company received more initial quality survey awards from J.D. Power and Associates than any other automaker. As of July ’09, Ford’s market share had improved eight out of nine months. The Ford Fusion posted 2008 sales of 147,569 (June 2009 sales were 18,561 — a 26 percent increase over a year ago). “We’ve got dealers and customers demanding more,” says VanDyke.

Still, Ford isn’t done. Says VanDyke: “There’s a really positive sense of accomplishment here, but it’s far from satisfaction.” He says that carmakers have to continue to fight negative perceptions by getting messages out to customers through whatever channels work best. He points to Ford’s promotions of the government program as an example of how good marketing can aid industry recovery — and he’s particularly impressed with a more traditional element of the campaign. “The reason direct mail is such a great way to do this is because it’s targeted,” he says. “It’s personal and it’s relevant explicitly to the people we are able to reach out to.”

Brand Marketing, Case Studies, Integrated Marketing, Large Business
 
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