Market Analysis Current and Potential customers The entry-level market continues to drive market growth, evidenced by the

Ford Figos strong performance it was South Africas third best-selling car in May Our strong sales performance is not driven by government or fleet deals, but by real customer demand, Ford South Africa have interestingly targeted a similar customer profile. India's Sandeep', when it comes to a shake down, is not that much different from South Africa's Jean' allowing for cultural differences. They are young, raring to go career-wise, and obviously, with substantial disposable income. 22-29 years, Jean is connected, has just moved out of her parents' and got her first job. Our target group is younger couples, with their feet on the ground, and head in the clouds, wanting to demonstrate that they are doing well in life,
Ford S.As current and potential customers for the entry level Ford Figo can be classified into the following categories: Ford has designed the Figo keeping in mind the aspirations and needs of the young and ambitious professional. Ford's new Figo is quite a funky little city car with an interesting cosmopolitan DNA In pavement pose it's quite a pretty little compact which is likely to appeal as much to the younger set of first-time new car buyers as it will to the last time new car buyers, with special appeal methinks to the species from Venus. Johannesburg - Consumers have an increasing number of options in the affordable vehicle market.

While the Volkswagen Polo Vivo achieved outstanding sales last year, the cheaper Toyota Yaris Zen was gaining ground and the Ford Figo was also widening its footprint, but this year will see even more additions to the segment. General public:

Students- These are consumers which are either in university or high school. Their ages range from 18 year olds to 22 year old. Entry level career people- These are people that have just started working and still in their entry positions in their respective companies. Their ages range from 22 to 25 year old. Established career people- These are the people that have established themselves in the work place. Their ages can range from anything from 26 to 55 years old. Retired people- These are people that have retired from work and are now living of their retirement earnings. Their ages start from around 56 years old. Potential customers

The car, despite its size, is projected as large enough to live in. Jean lives out of the vehicle. That is how we have designed it. There is space to load gym bags, a cycle, and stuff in to it, according to Mr. Nemeth. By the time the first order of 5,000 cars is completely rolled out, Ford South Africa will begin to target customers in the average age group 30-39 years too. Our target group is younger couples, with their feet on the ground, and head in the clouds, wanting to demonstrate that they are doing well in life, said Michael Boneham, President and Managing Director, Ford India, who flagged off the first shipment from Chennai to South Africa elaborated. Sandeep,' the Indian prototype for the target audience, is young, and ambitious, while being rooted to family values and traditions. Sandeep wants to give attention to his family, spend time with his wife, and aspires to do well in his job.

(ii)What do customers do with the firms products? Ford India's Figo, built on the global small car architecture, is now cruising the streets of South Africa, and is being hard sold to the group that typifies its Italian etymology cool'.
Customers use VW vehicles for various activities, depending on the type of customer and the need that that particular customer has, and the various activities are categorized as following:

For private use- Consumers use the Ford Figo for different activities but usually just to help them get from point A to point B faster and easier than other means of transport. For business use- Companies and government use VW vehicles to help them conduct business activities faster, effectively and more efficiently. As source of income- Some companies use VW vehicles as their main product offering to their customers.eg, Europ Cars rents VW cars to its customers.

(iii)Where do customers purchase the firms products?

Depending on the type of customer, the quantity of units being purchased and the needs for that particular customer, the firms products are available from different vendors (dealerships) or directly from the manufacturer. Customers that buy in large quantities, like the government, can get special deals for their purchases when purchasing directly from the manufacturer, while customers purchasing in single units would have to go to VW dealerships or certified secondhand dealerships, in order to get the products.

(iv)When do customers purchase the firms products?

Different customers purchase the firms products at different times depending on the need, the economic conditions, the type of customer and the quantity needed by that particular customer. Government, for example, would purchase new vehicles only when it can purchase in large quantities rather than singular units, whereas ordinary consumers would purchase the VWs vehicles when the interest rates are reasonable and they have a certain need for the vehicle.eg, to get to work faster. The inflation rate also plays an important role in consumers decision to purchase a new or used vehicle.

(v)Why and how do customers select the firms products?

Why Customers select the firms products for the following reasons, depending on what that particular customers are: Low fuel consumption- customers buy VW vehicles because they can get more mileage, per litre of petrol, out of the vehicle. Stylish designs- Some customers buy VW vehicles because of the vehicles stylish interior and exterior designs.

Payment plan and maintenance- Other customers buy VW cars because they can receive a good payment plan for the purchase, and good maintenance of vehicles at VW spares. The brand- Other customers buy VW vehicles simply because it is a brand they grew up with. They buy VW cars just because it identifies who they are as a person.

Customers buy VW cars for these reasons and many more others, and as a combination of the above-mentioned reasons. How How customers select VW cars depends on what the customers is looking for out of the vehicle. Others select the vehicles based on price while others look at engine performance. The following are but a few reasons how customers select VW cars: Price- Some customers want cars that fit into their price range.eg, a person that just started working will want a simple car that he/she can afford. Engine performance- Other customers look for a car that drives to certain speeds per 100 kHz.eg rather than buying a Golf VI TDI, a customer might buy a Golf VI R32 because of the performance level of the R32. Space capacity- Customers also look at the space capacity of the car, how many people can fit in the car, and also the boot capacity, how big the car boot is. Car features- Some people look for certain features when buying a car. It could be safety, entertainment or luxury features, or a combination of all 3.eg, Air-Brake systems, airbags, power steering, surround sound system, etc.

(vi)Why do potential customers not purchase the firms products?

Potential customers might not be purchasing VW cars for a number of reasons, but the abovementioned reasons why customers purchase VW vehicles are usually the same reason why potential customers purchase VWs competitors products. Potential customers might also not be purchasing VW vehicles simply because their not looking for a new car, or because the VW brand does not appeal to who they are or represent the type of people they see themselves as. OBJECTIVES Unparalleled August 2, 2011 of car news, the South African branch company of Ford Motor Company FMCSA Last 15.4% by sales volume,exceed market expectancy. Among them Ford Figos sales volume is 1226, play an important role in Fords brand increased The Chinese sales manager Gavin Golightly of FMCSA says: Fords brand kept growth continuously, sales volume increases by 29% compared with the same period of last year its July,

market share increased by 1.1%. Fords success depends on Ford Figo to a great extent, the sales achievements of this car have been all very outstanding all the time, the top 5 positions of sales volume that and been keeping riding and using the car all the time. Ford Motor Company of Southern Africas (FMCSA) May sales performance nearly tripled that of the market driven by strong sales of Figo, Fiesta, Bantam and Ranger. Ford passenger car sales also grew more than three times the South Africa new vehicle market trend.

FMCSA dealer sales accounted for 94.5% of total company sales, indicating the continued strong consumer demand for Ford and Mazda products. Our strong sales performance is not driven by government or fleet deals, but by real customer demand, said FMCSAs Vice President Marketing, Sales and Service, Dean Stoneley.

May 2011 new vehicle sales recovered well after the challenging short sales month of April 2011 to post 6.1% growth in the market over May 2011, according to the National Association of Automobile Manufacturers of South Africa (Naamsa).

The South African market outlook remains positive, said Stoneley. The disaster in Japan doesnt appear to have had a major impact on sales as stock levels remain relatively stable.

Passenger car sales grew 12.1% over the same period last year, while the Light Commercial Vehicle (LCV) market declined 7.9%. New vehicle sales ended May on 41 555 units.

The entry-level market continues to drive market growth, evidenced by the Ford Figos strong performance it was South Africas third best-selling car in May, continued Stoneley. June will be a critical month for industry to round out the half-year sales results and begin formulating a clearer forecast for the rest of the year.

COMPETITORS Nissan Micra VW Vivo Tata Indica Toyota Yaris zen Mazda mazda 2 Citroen