Lead agency: Mindshare
Ford Ranger is the leading brand in the Pickup Truck segment and it contributes more than 50% of the total Ford market share in Vietnam. The Truck segment is the new emerging category for the people who have reached a level in their life where they can spend money to pursue their hobbies and passions. There are many economic dynamics which contribute to auto sales growth like tariff or price benefits. The key consideration to buy a Pick-up Truck by the consumer is the key features and not so much the price. Ford Ranger, therefore, wanted to increase its penetration in the truck segment to 54% and maintain the number one position.
There are a lot of challenges in the period such as:
- The import duty on cars will be dropped down to 0% from 30% effective from January 2018. This potentially may defer the consumer's buying decision in 2017 because there will be huge reduction in price in 2018.
- Many other car manufacturers like GM, Toyota reduced their car prices which made the situation more challenging, aggravating competition leading to change in consumer focus from features to price only.