Slow Focus sales force Ford into action

DanielXR8 · 20-11-2007, 06:59 PM

Interesting article, however Mr Winslows comments that “teaching” dealers how to sell cars like Fiesta, Focus and the new Mondeo after years of having a comparatively easy time selling large cars in a very small field of competitors." and "Do we think our dealers are good? Yes, we do."

At least as far as my local dealer is concerned I can tell Mr Winslow "He hasn't learn't a dam thing about selling cars in the 21st century and as for the dealer being good enough. No he isn't."

He does give some clues to the real problem with dealers with this.. " And do we have training in place to do that? Yes, we do. Only time will tell how successful we are.”
When is Ford going to bite the bullet and pay whatever legal fees and compensation it needs to pay to get out of its franshise agreements and start again.

The two keys problems at Ford are the dealer network and poor quality control on locally built cars. Ford need to fix both to survive. They have no other options in a market as competitive as Australia's.

Slow Focus sales force Ford into action

Different: The Focus ‘Journey’ TV ad concentrates on the brand rather than the best deal.

Marketing boss alters small-car pitch after brand message fails to win expected sales

By DAVID HASSALL 20 November 2007

FORD Australia has been forced to change its small-car advertising strategy in a concerted bid to reverse a disturbing sales decline for Focus, which has failed to capitalise on the trend to small cars.

With Ford’s total market share in Australia dropping to 9.2 per cent in October – its lowest share in living memory – the Blue Oval is fighting for respectability, and the man at the battlefront is sales and marketing chief Mark Winslow.

Mr Winslow could not say if Ford’s market share had ever been so low in its history and – while noting that 10 per cent in the present boom market represents strong overall volume – he is still unhappy about the situation.

“Do we think it’s good enough? Absolutely not. We’re much better than a 10 per cent market share,” he told GoAuto last week.

Noting that large-car sales had gone from 23 per cent of the market two years ago to just 13 per cent this year – a worrying trend ahead of the all-important “Orion” Falcon launch next year – Mr Winslow said it was vital for Ford to secure a long-term stake in the growing small- and light-car markets with Focus and Fiesta.

However, Focus sales last month dropped by some 37.9 per cent compared to the same month last year, slipping below 1000 sales, while Toyota Corolla sales increased 10.8 per cent for the month and the Mazda3 was up by some 20.9 per cent.

Not only did the Focus lose ground to Corolla and Mazda, but in the last two months it dropped behind the Mitsubishi Lancer, Nissan Tiida and Holden Astra.

Mr Winslow conceded that Ford Australia had essentially shot itself in the foot on two counts – by not having enough base Focus CL models in stock and by running a three-month general brand campaign instead of retail advertisements.

“It was completely our fault,” said Mr Winslow. “We didn’t order in the right specification, so we dropped the ball.

“We didn’t have enough $19,990 CL cars on the ground. Basically, we had all sorts of value packs out there (like) our safety pack. That’s a supply issue.

“There are 23 competitors in that (small-car) market, so those people want to come to the dealership and they virtually want to drive away with the car, and we weren’t able to (provide that).”

Mr Winslow said the problem had been identified early and CL stock is now on hand.

Regarding the recent advertising campaign – which features various Focus and Fiesta models as well as customer types under the slogan “Everyone’s Journey is Different” – Mr Winslow was unapologetic, but admitted it was a mistake to put all its eggs in one general basket.

“What we’ve been doing with our small cars advertising is going with a brand bent rather than retail advertising,” he said.

“All our research is telling us that we have very good cars – it’s very well specified, it’s competitive with price, it more than compares on a feature-benefit basis with Mazda3s and Corollas – but people really need to be told about the Ford brand in small cars, so we came up with the ‘Everyone’s Journey is Different’ campaign, which is very much a brand ad as opposed to a retail/merchandising ad. We’ve been running that for the last 90 days.

“We look at our ad tracking and it’s really doing a lot for us in terms of people recognising our small-car range, but it probably doesn’t have the call to action – we’re not saying enough about the product, so our dealers are telling us that you’ve got a great story and you need to tell it more succinctly, so that’s what we’ll be doing.”

Although Mr Winslow said there will now be more ‘Focus’ on retail advertising, he defended the brand campaign and said it will continue.

“The core problem we had is that Falcon has been so strong for us for the last 50 years, so when you do market research you say, ‘What are people’s perceptions?’, and (they say), ‘I know about Falcon and I know about Territory, but I don’t know much about small cars’.

“So the way we addressed that research was to go into a brand campaign saying everyone’s journey is different, here are our range of small cars. It doesn’t yell price and it doesn’t yell we’ve got DSC and Corolla hasn’t. It’s more: ‘Here is our range of small cars for everybody’s wants and needs’.

“We will continue to do that because we need to continue to do it and the research shows that it is working, but what we need to do now is tell the comparative features and benefits versus Corolla and Mazda3. And we stand up very, very well – but our dealers are saying you’ve got to go and tell people.

“The sales closing rates in our dealerships are very, very strong. People come in on Focus and they generally leave with a car. That’s actually from telling people about the car, about the features and benefits, and how it compares. So we have to do those two things, tell people about the brand but really tell them about the product.”

Mr Winslow is happy with the strength of the Ford national dealer network, but admits that the company is still “teaching” dealers how to sell cars like Fiesta, Focus and the new Mondeo after years of having a comparatively easy time selling large cars in a very small field of competitors.

“Our business has been built on large cars and SUVs so we’ve had to ‘transition’ our dealers,” he noted.

“Are we happy? No, we’re not. Do we think our dealers are good? Yes, we do. Can we do better? Yes. And do we have training in place to do that? Yes, we do. Only time will tell how successful we are.”

He is unconcerned, though, about the decision to shift from cheap Korean vehicles to more expensive sources at a time when Holden has gone in the opposite direction, swapping its European Barina, Astra and Vectra for Daewoo-sourced models.

“You’ve got some competitors saying, ‘OK, I’m going to sell on price and I’m going to source from somewhere where I can get a low price’.

“We made the decision a number of years ago to go with European, German-engineered, high-quality, high features and that’s where we are in the marketplace. We think that, longer term, that will build the Ford brand a lot better than discounted cars.

“We’re selling Fiesta and Focus as competitively as we can. If you have a look at where we are with a CL Focus versus a Corolla and you add up the features and put a price on those features, then we are very competitive at $19,990. Very competitive versus Mazda3, more than competitive versus Corolla, very competitive versus Lancer.

“We made a very clear choice; we don’t want to go down the $17,990 path. We believe we have a quality car.

“The market has changed – it’s now one-third light and small cars – you have to be in it for the long-term and I don’t think you can guarantee you’ll be in it for the long term if the only way you can drive volume is by discounting the vehicle. I may be proved wrong.

“You have a look at Toyota sales and a very high percentage of their sales occur at the base level whereas if you look at Mazda3 sales – I know they’ve just dropped their prices at their base level, but a large percentage of their sales occur at sort of two-thirds of the way up their price scale because they’ve got so much repeat purchases. The Mazda3 and the Mazda 323 before it have been around for 20 years that I can remember, so their repeat purchase is very, very high.

“Being a third of the market, you cannot afford not to be in this market. One of Ford’s great advantages is its dealer network. If we are to maintain that distribution network, not competing actively and successfully in a third of the market just isn’t an option. So we’ll keep at it till we get it right.”

BigAL_250 · 20-11-2007, 07:06 PM

Did I hear that right, a senior Ford exec saying Ford marketing is shite. Wow, nice of them to say that, maybe they will do something about it now.

XR8putts · 20-11-2007, 07:08 PM

Quote:

Originally Posted by bigal_1701

Did I hear that right, a senior Ford exec saying Ford marketing is shite. Wow, nice of them to say that, maybe they will do something about it now.

Don't hold your breath. :togo:

Bossxr8 · 20-11-2007, 07:25 PM

I can't believe he said that we need to learn how to sell small cars. What a load of crap. Ford absolutely dominated the small car market during the 80's with the Laser, Telstar, Meteor etc and with Laser, Festiva etc during the 90's. Saying they are no good at selling small cars is just a total copout. Why not just admit your dealers are largely just a bunch of fools who are arrogant and rude, have no product knowledge and couldn't sell cold drinks to an arab. You can't paint them all with the same brush but some Ford car salesman are totally useless.

Falcon Freak · 20-11-2007, 07:33 PM

Ford's biggest problem is their image. Try to talk about Ford to the average citizen and watch their eyes glaze over as they loose interest.

FF

Wally · 20-11-2007, 08:29 PM

Well just incase someone from Ford marketing reads this forum .... not so long ago I accompanied one of the family to a Ford dealer to get her a small car. I was staggered at how nonchalant and intractable the sales rep and his Dealer Principle were in doing a deal. It was either the ticket price way or the highway, so we hit the highway and bought another brand two hours later.

merlin · 21-11-2007, 08:48 AM

What advertising campaign is he talking about? I havn't seen an ad for the new Mondeo or Focus yet...

One guy at work was looking at medium sized cars like CAmry and Mazda 6 and I suggested the Mondeo - he said "whats that?, I didnt even know it existed..."

Grasshoppr · 21-11-2007, 10:41 AM

I totally agree that the average salesman that live in the ford show room are useless. I have just spent the past week looking into a new car and had the XR5 as one of my options. One of the dealers that I previously had a relationship with was nothing short of hopeless.

I stated my intentions clearly and numerous times but he never listened, nor did actually understand anything about the car. After a "quick" test drive around the block I knew more about the car than he did (seat adjustments aren't hard to know!) and he still treated me like a Ma and Pa off the street. I am trading in a Typhoon FFS, I think it is pretty easy to pick what type of things I am looking for in a car and a 2 min drive around the block does not provide an understanding of "how a car handles and feels" :togo:

In contrast to this, when I walked into the VW dealership, they were professional, totally understood what type of buyer I am and what my expectations were. This is why I am now leaving the Blue Oval - car quality, service and sales people all suck.

My 20c worth anyway.

**Polyal** · 21-11-2007, 10:54 AM

Quote:

Originally Posted by BLKPhoon

I totally agree that the average salesman that live in the ford show room are useless. I have just spent the past week looking into a new car and had the XR5 as one of my options. One of the dealers that I previously had a relationship with was nothing short of hopeless.

I stated my intentions clearly and numerous times but he never listened, nor did actually understand anything about the car. After a "quick" test drive around the block I knew more about the car than he did (seat adjustments aren't hard to know!) and he still treated me like a Ma and Pa off the street. I am trading in a Typhoon FFS, I think it is pretty easy to pick what type of things I am looking for in a car and a 2 min drive around the block does not provide an understanding of "how a car handles and feels" :togo:

In contrast to this, when I walked into the VW dealership, they were professional, totally understood what type of buyer I am and what my expectations were. This is why I am now leaving the Blue Oval - car quality, service and sales people all suck.

My 20c worth anyway.

I agree with that. Would love Ford to revoke dealership licenses and pis s off the dead weight.

As for the Focus add, I really liked it; problem I see if so many conflicting reports vs image. If they just upped the service and quality they would be kicking butt; but thats the hard way to do it.

Ford as always had an image problem, but now the market is so competitive that they have the product, but their distribution channels and promotion suck.

edit: also, they need to stick with the brand promotion, but also have the "deal" adds on the side. FORD NEED TO PUSH THE GERMAN THING HARDER! Or just quality in general, even if the Falcon isn't to the same standard of the other smaller Fords...yet

They have the Falcon with the ZF, best gearbox in the country, the focus, fiesta, and now Mondeo while the competition offer cheaper and inferior alternatives (objectively and subjectively).

If you have a competitive advantage then push it, and push it hard!

nommic · 21-11-2007, 11:44 AM

I've seen that new Mondeo ad on TV, the one where it says "more than just good looks"... FFS tell us something useful about the car! Give some example of areas where it beats the competition. The car does look good in the ad, but people will just see the name "Mondeo" and associate it with the old model. They'd better have some better marketing in the pipeline.

Same thing with the Falcon... does anyone remember what happened at Bathurst? Seems Ford has forgotten already. The BFII Fairmont Ghia had a nice ad running for a while (although the car is so sexual it could sell itself), but I've not seen anything positive about the product for a while. They should be trying to get rid of the current stock very hard RIGHT NOW, otherwise they will have issues when Orion comes out. I can just picture Ford being completely recalcitrant and not changing their marketing strategy right up until the day Orion comes out.

apolloxbgt · 21-11-2007, 01:20 PM

What is really sad out of all this,is that the tiida is outselling the focus!They would have to be the cheapest looking,ugliest car in that segment (if not most segments) and they're outselling the Foci,that in itself sums up how much marketing has to do with sales in that segment.

Another problem is that the Foci is Fords cash cow,they are they're biggest selling privately purchased car,so low Focus sales = low profits all round.

5.0failane · 21-11-2007, 02:21 PM

It is a sad state that the dealers are in. I know of two people looking to buy a small car and both arent price concious. The first wanted a 'shopping trolly' for the wife money no object, paid cash ended up with a corolla. They new very little about the new focus and it seem the ford salesman didnt either so the walked next door and bought a corolla cause toyota's are reliable. The second is a mates wife wants a new car just doesnt want a ricey lancer so I suggested a focus. So far they have had no luck getting a test drive or a sales man interested in selling a focus so again they are now eyeing a corolla.

T3ts50 · 21-11-2007, 02:38 PM

I considered buying a Fiesta a few years back (when petrol prices hit 1.20). When I went a dealership to have a look at one, the salesmen was very disinterested in selling the car to me, gave no useful information about the car to the point I thought my cat could sell a better car than him. Im not saying all dealers are like this, most Ive come across seem to be good at their job.

apolloxbgt · 21-11-2007, 03:32 PM

Quote:

Originally Posted by T3ts50

most Ive come across seem to be good at their job.

Reading through this thread it would seem most arn't.

After I bought my new focus, I had a heated argument with the dealer because I wanted the bodykit,and they told me they didn't have one for a sedan.I got another dealer to fax me the part no's and pictures and faxed them into the offending dealer,but bought the kit from the one that supplied me with the part no's.

If I was a salesman/yard owner I would make it my business to know what options I can flog off to people to make extra $$$,especially on the top selling private car,thats where all the gravy is for them.

autolover08 · 21-11-2007, 04:05 PM

Quote:

Originally Posted by apolloxbgt

Reading through this thread it would seem most arn't.

After I bought my new focus, I had a heated argument with the dealer because I wanted the bodykit,and they told me they didn't have one for a sedan.I got another dealer to fax me the part no's and pictures and faxed them into the offending dealer,but bought the kit from the one that supplied me with the part no's.

If I was a salesman/yard owner I would make it my business to know what options I can flog off to people to make extra $$$,especially on the top selling private car,thats where all the gravy is for them.

I have to say that's pretty bad, that dealer turned away a very healthy margin of profit.
Not good at all.

autolover08 · 21-11-2007, 04:03 PM

Quote:

Originally Posted by T3ts50

I considered buying a Fiesta a few years back (when petrol prices hit 1.20). When I went a dealership to have a look at one, the salesmen was very disinterested in selling the car to me, gave no useful information about the car to the point I thought my cat could sell a better car than him. Im not saying all dealers are like this, most Ive come across seem to be good at their job.

I generally agree, but remember if your not ready to actually buy a car and are just 'browsing' they will not be as interested.
I've sold used cars before and the motor industry has a saying 'buyers are liars' in some cases, like bad dealers, customers can be just as bad.
Lets face it a Ford dealer, compared to a VW dealer would come across time wasters more often.

T3ts50 · 21-11-2007, 04:16 PM

Quote:

Originally Posted by autolover08

I generally agree, but remember if your not ready to actually buy a car and are just 'browsing' they will not be as interested.
I've sold used cars before and the motor industry has a saying 'buyers are liars' in some cases, like bad dealers, customers can be just as bad.
Lets face it a Ford dealer, compared to a VW dealer would come across time wasters more often.

I can see your point and I was in the position to buy, but if I was just a "tyre kicker" I would have asked to look at GT or XR6 Turbo. I asked reasonable questions that anyone would normally ask. When I bought my XR6 I had an enthuistic dealer trying to sell me the car even though I told him Im just looking. He offered me a test drive, a drink and ask about finance and after sales support was fantastic. When I looked at the Fiesta I received none of that.

autolover08 · 21-11-2007, 04:46 PM

Quote:

Originally Posted by T3ts50

I can see your point and I was in the position to buy, but if I was just a "tyre kicker" I would have asked to look at GT or XR6 Turbo. I asked reasonable questions that anyone would normally ask. When I bought my XR6 I had an enthuistic dealer trying to sell me the car even though I told him Im just looking. He offered me a test drive, a drink and ask about finance and after sales support was fantastic. When I looked at the Fiesta I received none of that.

Well your first experience was great and your second was terrible...Thats always been the case with motor dealers, a little like shopping at woolworths or coles!
Did you end up buying from the dealer that gave you great service? How long after that terrible experience did you buy a fiesta?

T3ts50 · 21-11-2007, 04:51 PM

Quote:

Originally Posted by autolover08

Well your first experience was great and your second was terrible...Thats always been the case with motor dealers, a little like shopping at woolworths or coles!
Did you end up buying from the dealer that gave you great service? How long after that terrible experience did you buy a fiesta?

Never bought a Fiesta, and went to another dealer (which gave the great service) when I bought the XR.

Grasshoppr · 26-11-2007, 02:23 PM

Quote:

Originally Posted by autolover08

I generally agree, but remember if your not ready to actually buy a car and are just 'browsing' they will not be as interested.
I've sold used cars before and the motor industry has a saying 'buyers are liars' in some cases, like bad dealers, customers can be just as bad.
Lets face it a Ford dealer, compared to a VW dealer would come across time wasters more often.

You might be surprised to know that the sales guy I purchased the VW off has sold 12 this week. I will place money on the fact that the ford dealership I went to might not even be close to this number, in total sales.

When money is not part of the equation (car allowance through work) service and knowledge are the only things that make the difference!

kocho · 26-11-2007, 05:17 PM

When the Mondeo came out, we asked to be put down for a test drive. We physically went and saw it and asked. Still no phone call.

Ford dealerships and the people there are run by older, un-enthusiatic fat people. Sad but true. Being very general, but thats what they are like at the 3 dealerships around me.

Disciple · 26-11-2007, 05:24 PM

Quote:

Originally Posted by kocho

When the Mondeo came out, we asked to be put down for a test drive. We physically went and saw it and asked. Still no phone call.

Ford dealerships and the people there are run by older, un-enthusiatic fat people. Sad but true. Being very general, but thats what they are like at the 3 dealerships around me.

Kinda like the people who buy them.

:

robjh80 · 26-11-2007, 08:41 PM

I went to a Ford dealer here in Brisbane a couple of years back when I was in the market for the Fiesta, the salesman who was "attending" to us went out the back supposedly to get an ad out of the paper put in by another dealership to show us their alledged "false advertising",.... trouble was he didn't come back for about half an hour, anyway we kept ourselves amused by looking over the cars some more..........."turns out the salesman went home for lunch."

nommic · 26-11-2007, 09:00 PM

Hahaha, talk about fat and un-enthusiastic :P

MeestaNob! · 26-11-2007, 10:04 PM

All Ford dealerships are sucktacular and almost all their salesmen wouldn't know shyte from clay.

They really are awful. Shame the cars are so good, nobody will ever get to know.

bingoTE50 · 26-11-2007, 10:57 PM

My opinion is this. I have had some interviews for vehicle sales. I like cars and read up on all types. I have been in sales since 1984 albeit not retail cars . I have run my own business for five years and sold it as a going concern, and have a National Sales position right now. I answered a advertisement last year which was written in a way that suggested that a Sales Managers role was on offer .I got there and they told me
" you have to start from the bottom". I told the guy before we started I am not interested in working for 25k retainer plus commission. Why would I when I earnt 60k at the time and was looking for 80k.This is the problem ,how many people who are sales professionals would work for that. The guy told me they have a large turnover of sales guys , no wonder !! They give any cowboy a job who shows some enthusiasm for the hours , and pay him a pittance and he is hoping he is going to make 70k a year ,which only the very good guys get. If they paid a decent retainer say 40k plus commission some people may take time to make it a career. The good guys these days chase brands to keep their income flowing and have no real Company pride .
Ford have some first class small cars now and I would have to agree with the boss at Ford , that they have to learn to sell the product instead of discounting it. This takes skill and customer service from all stakeholders.How often do you negotiate a price to meet your budget then they take you to a accessory girl who looks nice and tries to sell you paint protection etc. WTF .. why don't they negotiate this before you settle on a deal , they would have more chance selling more of these things. How about the service department , they tell you all about their service after you have signed and in general when you pick up your new car. again WTF .. Why is this not done during the sales pitch to highlight the expertise of the dealership . I just do not understand their sales process !!

Grasshoppr · 27-11-2007, 07:57 AM

The turn over is so high, and it will be due to the crap pay if that is the case. The previous sale person that I bought F6 off was excellent, but when I went to his dealership he had moved to a different car maker. They might not all be bad but it seems that more are than not at Ford.