Ford Motor Company

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Ford Motor Company

DRIVING AMERICAN INNOVATION CAMPAIGN
LIFE IN DRIVE CAMPAIGN
STORYTELLING CAMPAIGN

1 American Road
Dearborn, Michigan 48126
USA
Telephone: (800) 392-3673
Web site: www.ford.com

DRIVING AMERICAN INNOVATION CAMPAIGN

OVERVIEW

Ford Motor Company, based in Dearborn, Michigan, entered 2005 in a difficult position. The automaker had sold only 3.15 million vehicles in the previous year, a million units less than what it had sold annually at the beginning of the decade. The company had been hem-orrhaging market share as well, dropping to 18.6 percent in 2004 after spending much of the 1990s with more than 25 percent. Competition was especially fierce from Toyota Motor Sales, U.S.A., whose Japanese parent company, Toyota Motor Corporation, in 2004 displaced the Ford Motor Company as the world's second-largest automobile company in terms of sales for the first time (Ford's traditional rival, General Motors, remained number one).

To improve its overall image Ford mounted a brandwide advertising initiative called "Driving American Innovation" in 2005. The company wanted to bolster its reputation for innovation and address criticism from environmentally conscious consumers that the company's vehicles were not fuel efficient. To accomplish this Ford relied on two agencies owned by the communications-services conglomerate WPP Group—Penn Schoen & Berland and Ogilvy & Mather Detroit—to develop an advertising campaign. The effort included television, print, and Internet elements. Television spots and print ads featured the company's CEO, William "Bill" Ford, Jr. The TV commercials combined archival footage of previous Ford Motor Company successes, such as the famous Model T, with images of contemporary Ford vehicles. In the spots Bill Ford discussed how the company was building on its history of innovation and touted new products such as Ford's fuel-efficient hybrid vehicles. The campaign began in October 2005 and ran through the end of the year.

Because the campaign was designed to bolster the entire Ford brand's image, its success was difficult to gauge. According to marketing-information firm J.D. Power and Associates, in 2005 Ford drivers remained loyal to the brand at higher rates than was typical in the industry. Nevertheless, the company continued to lose market share.

HISTORICAL CONTEXT

Based in Dearborn, Michigan, Ford Motor Company was the third-largest automaker in the world in 2005 in terms of units sold. The company was founded in Michigan in 1903 by Henry Ford. In 1908 the company introduced the Model T. The car quickly became one of the most successful vehicles in U.S. automotive history, selling more than 15 million units from its inception through its cancellation in 1927. The Model T helped make Ford the world's largest automaker at that time. In fact, in 1918 nearly half of all cars owned in the United States were Model Ts. While Ford was eventually overtaken by General Motors as the world's largest automobile manufacturer, the company continued to prosper throughout the twentieth century.

By 2005 Ford was employing more than 320,000 people worldwide and selling vehicles under the Ford, Lincoln, Mercury, Land Rover, Mazda, Volvo, Jaguar, and Aston Martin nameplates. The company also faced substantial challenges. In January 2004 the Toyota Motor Corporation, based in Japan, passed Ford to become the second-largest automaker in the world. Toyota was able to overtake Ford in part because the latter's sales fell sharply in the first few years of the twenty-first century.

In 2004 Ford sold 3.15 million units worldwide, more than a million fewer units than it had sold in 2000. The company had maintained a market share of 25 percent through the mid-1990s, but by 2004 that was down to 18.6 percent. More worrisome was the fact that Ford had failed to turn a profit in 2004. As a result there were a number of shakeups at Ford in 2005, as the company introduced a slate of new top executives in September in the hopes of turning around its sales decline. In October 2005, just before the "Driving American Innovation" campaign began, the company reported a quarterly loss of $284 million.

Because Ford sold a number of large vehicles, such as the Explorer sport-utility vehicle (SUV), that got few miles to the gallon, Ford's sales were especially sensitive to high gas prices. In 2005 gas prices rose to as high as $3 per gallon in the United States, in part as a result of market pressures caused by war in the oil-rich nation of Iraq. One way to reduce demand for gasoline was to offer hybrid vehicles. A hybrid vehicle combined two energy sources for propulsion: an internal combustion engine and an electric motor. The electric components reduced the need for gasoline, allowing the car to go further on less gas. In 2005 Ford produced about 24,000 hybrid vehicles. At the time the only Ford hybrid available was the Ford Escape Hybrid SUV, introduced earlier that year.

TARGET MARKET

Ford was interested in promoting the entire brand, not just one or two vehicle lines. This was an unusual move in the industry; most automotive campaigns tended to spotlight a particular vehicle or group of vehicles. Hence the new campaign would have to be accessible to a notably wide audience (essentially, any potential car buyer). The purpose of the campaign was to improve Ford's overall corporate image. The automaker wanted to project an image as an innovative company that was at the cutting edge in designing safer, more environmentally friendly vehicles. In addition, any Ford campaign would have to emphasize performance, because according to internal data, 52 percent of Ford drivers were also racing fans.

Ford was also interested in reaching out to environmentally conscious consumers. Although Bill Ford made environmental innovation a focus of his tenure as CEO, the company drew the ire of many environmental groups. Various organizations, including the Sierra Club, the Bluewater Network, and the Rainforest Action Network, staged protests against the automaker.

COMPETITION

The two automakers that Ford traditionally competed against were General Motors and the Chrysler Group, the U.S. affiliate of Daimler Chrysler. Commonly referred to as the "Big Three," these three major American automakers had dominated the industry for most of the twentieth century. General Motors was the largest automaker in the world, and its Chevrolet brand was the best-selling brand in the United States. Chevrolet's success stretched back for decades: 1 out of every 10 cars in the United States was a Chevrolet in 1964. By 2004 Chevrolet's TrailBlazer sport-utility vehicle was making inroads against the Ford Explorer, the most popular vehicle in the segment. The TrailBlazer moved 283, 384 units in 2004, versus 339, 333 units sold by the Ford Explorer.

By the late twentieth century, however, the U.S. automotive market had changed. Toyota Motor Sales had made substantial gains in the U.S. market. In 2004 it sold 2,060,049 units in the United States alone. Sales were buoyed by vehicles such as the Toyota Camry, a midsize sedan that was the best-selling car in the United States in seven out of eight years between 1997 and 2004 (1997–2000 and 2002–04). Toyota's sales gains were helped by the automaker's reputation for innovation, safety, and quality.

MARKETING STRATEGY

Ford decided to bolster its reputation with a brandwide campaign. Two different agencies, Penn Schoen & Berland and Ogilvy & Mather of Detroit, worked in concert to create this major initiative. Both were part of the WPP Group, a media and communications services holding company. The theme of the campaign was "Driving American Innovation," a title that was intended to reflect both Ford's history of innovation and its stated commitment to developing new technologies, particularly in regard to safety and fuel efficiency. The campaign celebrated the company's enduring "spirit" of innovation. Its centerpieces were two television commercials, the 60-second "Innovation" and the 30-second "Compass." Eventually another 30-second spot, "Rebirth," also appeared, following a similar format.

FORD'S STAR EXECUTIVE

William Clay "Bill" Ford, Jr., was born in Detroit, Michigan, in 1957. He was the great-grandson of Henry Ford, the founder of Ford Motor Company. His father, William Clay Ford, Sr., also worked at Ford as chairman of the company's finance committee. After graduating from Princeton University in 1979, Bill Ford joined Ford Motor Company, working as a product-planning analyst. In 1987 he became managing director of Ford Switzerland, a Ford affiliate based in Europe, before being elevated to the company's board of directors the following year. He became chairman of that board on January 1, 1999, and was named CEO on October 21, 2001.

A professed environmentalist, Bill Ford promised to make the Ford Motor Company a "greener" automaker, speaking out about global warming and air pollution. Upon becoming CEO he directed the company to publish its first report outlining the environmental impact of its vehicles and operations. In addition, he pledged in 2001 to improve fuel efficiency by 25 percent by 2005. He withdrew that goal in 2003, however, saying that market conditions made it untenable. This attracted heavy criticism from environmental groups such as the Sierra Club, which accused him of going back on his word.

In addition to his work at the Ford Motor Company, Bill Ford was a trustee at Princeton. He also served as the vice chairman of the Detroit Lions, a National Football League franchise. His father, William, was the company's president and owner, having purchased the club in 1964.

All three spots combined archival footage from the automaker's history with scenes of the company's CEO, Bill Ford, discussing the Ford brand and its history. Ford, a descendent of the automaker's founder, had been with the company since 1979 and had taken over as CEO in 2001. He had previously starred in a 2002 television campaign. In the commercial titled "Innovation" Ford discussed how important innovation had always been to the Ford Motor Company, calling it "the compass that guides this company moving forward." The spot further illustrated the company's innovation by highlighting famed early Ford vehicles, such as the Model T. The Ford GT, which the company billed as a "supercar," was also shown. The vehicle, which had first appeared in 2003, was an expensive (costing in excess on $150,000) sports car that featured a racing-style design.

Ford, a self-described environmentalist, also discussed the company's efforts to increase the production of hybrid vehicles, which would help reduce the release of greenhouse gasses into the environment by using less gasoline to power their engines. "Innovation" helped underscore this by featuring the Ford Escape Hybrid, a sport-utility vehicle (SUV) with a hybrid engine. The spots were broadcast during hit television programs with wide audiences. These included Oprah Winfrey's syndicated talk show, ABC's prime-time adventure drama Lost, the ABC nighttime soap opera Desperate Housewives, CBS's immensely popular police drama CSI, and televised games of the National Football League.

The campaign also included print and radio components. Some print ads featured blueprint-style images of new Ford vehicles and touted the company's current innovations. One two-page spread that appeared in major dailies, including the Wall Street Journal, consisted of a photograph of Bill Ford along with text from a speech on innovation that was attributed to him.

OUTCOME

In September 2005 the Ford Motor Company announced plans to boost the production of hybrid vehicles to about 250,000 units per year by 2010. The Ford Escape Hybrid garnered the North American Truck of the Year award at the 2005 North American International Auto Show. That year Ford was especially successful with its midsize sedan the Fusion; that vehicle managed to sell more than 23,000 units during the period from its October 2005 introduction to the end of the year. This did not, however, mollify the company's detractors in the environmental movement. In November the Rainforest Action Network staged demonstrations at 12 different Ford dealerships in the Dearborn area in protest of the poor gas mileage of vehicles such as the popular Ford Explorer SUV.

The campaign also appeared to bolster Ford's customer loyalty. According to J.D. Power and Associates, a marketing-information firm, a 51 percent majority of all Ford customers who traded in vehicles in 2005 did so to get another Ford. This was about two percentage points higher than the industry average. The company's market share continued to slip, however, hitting 17.4 percent for the year.

LIFE IN DRIVE CAMPAIGN

OVERVIEW

In October 2005, Ford Motor Company introduced the new Ford Fusion. Inspired by the company's futuristic Ford 427 concept car, the Fusion was a four-door sedan aimed at young, upwardly mobile drivers. It replaced the discontinued Taurus model. The Fusion was launched into a competitive segment that featured established vehicles such as the Nissan Altima, the Honda Accord, and the best-selling car in the U.S. market, the Toyota Camry. Ford hoped that the Fusion's unique visual design, which included a distinctive three-bar front grille, would help the vehicle stand out.

The J. Walter Thompson agency, also based in Detroit, was responsible for developing a launch campaign for the Fusion. The resulting "Life in Drive" campaign kicked off in October 2005 and featured a mix of traditional and new-media advertising. Its centerpiece was a series of television commercials. There were several 15-second spots, along with two 30-second spots. The spots often ran back-to-back, with a 15-second commercial leading into one of the two longer spots. The 15-second spots all featured a contrast between "life"—illustrated by images of people performing dull, frustrating tasks, such as trying to open a CD case—and "Life in Drive," where the viewer saw the Fusion on a drive through a hip cityscape depicted via quick cuts. The campaign also featured an innovative online component, which included a "Photo Fusion" feature on the Ford website. Consumers could post pictures of themselves along with brief descriptions of what the photos contained. Posters were then given an opportunity to view other consumers' pictures based on shared keywords in their descriptions. This interactive program was meant to attract young consumers who were comfortable with seeking information online.

The campaign met with solid success. Ford sold more than 23,000 units between the Fusion's October 2005 debut and the end of the calendar year, with sales climbing every month. The vehicle sold so well that dealers reported having trouble keeping the new Fusion in stock, forcing Ford to increase production of the vehicle.

HISTORICAL CONTEXT

The Ford Motor Company was founded by Henry Ford on June 16, 1903. Based in Detroit, Michigan, the company was responsible for one of the most important innovations in automobile manufacturing, the assembly line. This 1913 innovation helped make Ford the second-largest automaker in the world (after General Motors) for much of the twentieth century. By the beginning of the twenty-first century the Ford Motor Company was selling vehicles under eight different brands: Ford, Lincoln, Mercury, Land Rover, Mazda, Volvo, Jaguar, and Aston Martin.

Ford decided to create a new four-door family sedan to replace the Taurus, an older model that consumers no longer found exciting. After considering other names, the company called the new vehicle the Ford Fusion. The design of the vehicle was inspired in part by the Ford 427, a concept vehicle that had been met with general acclaim at a number of auto shows. The Fusion featured a spacious interior, a stiff chassis for better handling, and a distinctive exterior design. The car was meant to look sleek and speedy, in contrast to other, more staid midsize sedans, such as the Taurus. Most notable was the vehicle's three-bar front grille and its unique triangular taillights.

Ford also created a racing version of the Fusion, which competed in National Association for Stock Car Auto Racing (NASCAR) events. In fact, Ford's racing division provided some input on the car's design. Internal data showed that Ford's market share was 6 percent higher among NASCAR fans than it was nationally. The Fusion would debut at the Ford Championship weekend at the Homestead-Miami Speedway, which featured the final race of the 2005 NASCAR Busch series. The event was planned for November 17 and 18, 2005.

In October 2005 Ford introduced the Fusion for model year 2006, with a base price of $17,795. Ford was already in the midst of a strong year, with sales up 12 percent from 2004 through September. It hoped to be able to establish the Fusion as a vehicle that could sell up to 160,000 units annually.

TARGET MARKET

The Fusion was designed to appeal to consumers between the ages of 25 and 35. These consumers were identified by the company as being strongly interested in music and technology. Ford wanted to connect with middle-income consumers who were both established in their careers and upwardly mobile. While some of these buyers gravitated toward sportier cars, such as the Ford Mustang, or toward large SUVs, internal data at the automaker led Ford to believe that drivers in this age group were becoming more interested in midsize sedans. In effect, the Fusion would serve as the next step for the young drivers who had previously driven smaller cars such as the Ford Focus. As a family sedan the Fusion was especially geared toward young families, people with younger children, or those considering starting a family soon.

COMPETITION

The Fusion competed most directly with other midsize vehicles. These included imports such as the Honda Accord, the Nissan Altima, and the Volkswagen Jetta and domestic models such as GM's Chevrolet Malibu. The giant of the midsize field, however, was the Toyota Camry. First introduced in 1980, the Camry had been the biggest-selling car in the United States in seven out of the eight years between 1997 and 2004. In 2004 it sold an impressive 426,990 units. It usually sold for between $19,000 and $25,000. The Camry was not a flashy car; its popularity rested primarily on its reputation for quality. It was a safe, durable vehicle and held its resale value well.

Ford hoped that by pricing the Fusion between $17,995 and $21,000, it would distinguish itself from its competitors. Prices for the other major midsize cars on the market began around $18,400 and could climb as high as $25,000 for so-called luxury versions of the vehicles. Ford believed that its aggressive pricing might help offset the fact that many established brands had built-in customer bases.

MARKETING STRATEGY

Ford designated the Detroit-based ad agency J. Walter Thompson with developing a launch strategy for the new Fusion. The resulting campaign, released in October 2005, was named "Life in Drive," and it mixed traditional television and print advertising with online efforts and live events. Print ads appeared in USA Today and in local newspapers. The campaign was preceded by a series of Fusion Flash Concerts, featuring bands such as alternative hip-hop stars the Roots, popular rapper Fat Joe, and rock bands Staind and Collective Soul. The Staind event was a particular success, drawing 12,000 people to a free concert in Boston. Organizers had only expected a showing of about 500.

The "Life in Drive" campaign began in earnest with a series of 15-second teaser spots directed by Grammy-winning director Joseph Kahn, who had previously directed music videos for rock band U2 and rapper Eminem, among others. One commercial, "Trash Day," began with a half-dressed man taking out the garbage. He was too late and missed the garbage truck, and a voice-over declared, "This is life." Suddenly, rock music blared, and a series of quick cuts showed a Fusion driving around a city. The voice-over returned to say, "This is life in drive." Another 15-second spot, "Doggie," showed a young woman cleaning up after her dog, leading to the same voice-over and quick cuts. The spot titled "CD" featured the same setup, only this time it began with someone having difficulty opening a CD case. Each commercial closed with the text tagline "Life in D," which then gave way to the Ford Fusion logo. The "D" resembled the "D" (for "drive") that appeared on the Fusion's gearshift.

Kahn also directed two 30-second spots for the campaign. These premiered on October 31, 2005. The most important, "Particle," drew attention through its prominent use of the Apple iPod as a prop. A portable music player known for its distinctive white color and sleek design, the iPod was first introduced in 2001 and quickly became the most popular digital-music player on the market. It was particularly popular among drivers in the Fusion's target demographic. Some critics felt that by trying to associate itself with a trendy new product, Ford risked allowing the Fusion to look stale and uncool by comparison. One critic noted that the Fusion did not even have an adapter that would allow the iPod to play in the vehicle.

"Particle" began with a man on a subway listening to the device. As he listened, particles that looked like bubbles began to rise out of the iPod. These bubbles then drifted up from the subway car and onto a dance floor, where they circled a young woman. The bubbles continued to circulate, moving past rollerbladers and a flat-screen television. Finally they reached a traffic intersection, where they "fused" together to become a Ford Fusion vehicle. The other 30-second spot, "Ignition," featured a similar theme. This time the Fusion itself generated the energy, which in turn revitalized a worn-out urban neighborhood. Both commercials ended with a voice-over declaring, "a car shouldn't just use energy, it should create it," before concluding that the Fusion represented "more innovation from Ford." Often Ford packaged one of the 15-second spots back-to-back with one of the longer commercials, creating a 45-second advertising block.

FUSION FLASH CONCERTS

A key part of the Ford Motor Company's introduction of the Ford Fusion in 2005 was its sponsorship of a series of free concerts in the months leading up to the vehicle's launch. The series was a joint effort between Ford and Sony Pictures Digital, a division of the Sony Corporation of America. After registering on a special Ford Fusion website, consumers were notified about the concerts via text message. These concerts were inspired by "flash mobs," outdoor gatherings created on the spur of the moment by using the text-messaging features of cell phones and other mobile communication devices. Often organizers of flash mobs would alert a small number of people about a gathering, and then word would spread organically as those people contacted others.

The first Fusion Flash Concert was held in July 2005 in New York City. It featured the alternative hip-hop act the Roots. Later concerts presented a mix of rock acts, including Collective Soul, the Wallflowers, Yellowcard, Pete Yorn, and Staind, as well as hip-hop performers Jermaine Dupri, Fat Joe, and Frankie J. Each band appeared at their own individual concerts. Registered consumers were notified about each performance at the last minute, meaning that the entire event would come together in a "flash." Each concert took place in a different urban area, including Dallas, Philadelphia, Los Angeles, and Chicago. The most successful of the Flash concerts was the hard-rock band Staind's August 9 appearance in Boston, which drew an audience of 12,000 people.

The campaign quickly branched out into new media. In November Ford began an effort at three major Web portals: Yahoo!, AOL, and MSN. The Fusion was represented via prominent ads and banners on all three sites. Ford also used an innovative "Photo Fusion" feature on its own website. The feature allowed customers to post personal pictures on the site. When they did so, consumers were also asked to describe their photos. Based on those descriptions, the Photo Fusion feature would then show other consumers' pictures to the poster, based on similar keywords in both descriptions. This interactive system was meant to appeal to young consumers who were more interested in actively navigating the Web than in watching TV commercials. The company also posted selected "Life in Drive" television spots on the company's website.

OUTCOME

The Fusion met with solid success. After its October 2005 introduction the vehicle saw sales increase every month. By November Ford had already sold 15,481 units (a number that included precampaign sales). In December the Fusion sold 7,568 units, its best monthly figures for 2005. According to internal studies, customers rated the Fusion's unique design as the number one reason for purchasing the vehicle. The car managed this without the heavy incentives, such as cash rebates, that many automakers used to help sell new vehicles. The vehicle proved so popular that Ford dealers had a difficult time keeping it in stock. As 2006 began, Ford ramped up production to meet the ever-growing demand. In an effort to expand its appeal, the company also announced that it would develop a hybrid version of the Fusion for model year 2008.

STORYTELLING CAMPAIGN

OVERVIEW

For 15 years Ford Motor Company, the number two automaker among Detroit's big three, had advertised its vehicles with the slogan "Have you driven a Ford lately?" In 1998 the company launched a new campaign with the tag line "Ford Cars: Built to Last." The campaign, developed by advertising agency J. Walter Thompson, used a storytelling approach and ran in print and broadcast media as well as on the Internet. It was based on the notion that people enjoyed hearing other people's stories.

The "Storytelling" campaign centered around everyday people who owned Ford vehicles, and the ads used humor and emotion to reach consumers. As its spokesperson Ford chose John Corbett, best known as the philosophical disc jockey on the television series Northern Exposure, a man with a pleasant, relatively low-key demeanor that fit well with the campaign. His role in the commercials closely resembled his work from the hit show, in which he had been something of a narrator. Corbett and country superstar Alan Jackson, another Ford spokesman, appeared together in an ad for National Ford Truck Season beginning in October 1998, and they were also featured on the company's website.

The company launched the campaign during the Winter Olympics in February 1998 with six television spots. The campaign included ads for the Mustang, Taurus, Escort ZX2, and pickup truck models. Six months later, Ford decided to expand the campaign to all of its 1999 vehicles.

HISTORICAL CONTEXT

The Ford Motor Company, founded in 1903, has experienced its share of highs and lows. Its founder, Henry Ford, was described by Ed Crews in an August 11, 1998, article in the Richmond (Virginia) Times-Dispatch as "a mythic figure in American business history. He comes down to us as a contradictory mix of inspired tinkerer, backyard mechanic, captain of industry, eccentric and capitalist oppressor. Sometimes it is impossible to see where the myth ends and the man begins."

In 1908 Ford introduced the popular Model T. Also known as the "Tin Lizzie," it was said to be the "universal car," built to be rugged, reliable, and easy to operate. When Ford incorporated the assembly line into his company's production process, he revolutionized not only the auto industry but also all industries. Increased efficiencies allowed Ford to keep prices down and expand into overseas markets. By 1915 Ford had produced its millionth car. In 1916 Ford made half of all the American cars built and accounted for 40 percent of the world's auto production.

But success may have blinded Henry Ford to the need for change. By the 1920s competing automakers were producing models with more style, comfort, and power than the Tin Lizzie. Ford dragged his feet on producing a new model, and the company continued to make the Model T into the late 1920s. Only when it became absolutely clear that the car would not sell at any price did Ford throw in the towel. He shut down production for six months in order to retool the plants for a new model. The successor Model A enjoyed good sales, but by 1932 General Motors (GM) had taken the number one spot from Ford, and GM held it for decades.

Over the years Ford introduced many successful models, including the Thunderbird, Escort, Taurus, and, perhaps most notably, Mustang. It also produced the Edsel, a spectacular flop, and from time to time the company suffered financial setbacks. Ford became known for its pickup trucks and sport utility vehicles, including the F-Series truck and the Explorer. Despite its successes, however, for the most part Ford remained an also-ran to number one General Motors. In addition, Ford and other U.S. automakers eventually had to contend with inroads made by foreign auto manufacturers, primarily the Japanese.

TARGET MARKET

The "Storytelling" campaign was developed with both male and female consumers in mind. For instance, "Hands," a commercial for the F-Series truck, showed close-ups of the hands of a hardworking but sensitive mechanic named Joe. Shots of Joe's hands working with a blowtorch and gripping the wheel of his Ford truck were interspersed with shots of him holding a small child. Jan Klug, Ford Division's marketing communications manager, said, "The 'Hands' story is the highest rated F-Series spot we have tested among men and women. It really touched a chord with consumers, who could relate to a guy and his truck balancing work and family."

Ford took care to ensure that the campaign would appeal to women even if it did not target them exclusively. Three of the six television spots used to launch the campaign featured women. One spot informed viewers of Ford's support for Race for the Cure, a national breast cancer charity. In addition, because "Built Ford Tough," the popular tag line used for trucks, tested poorly with women, Ford dropped the idea of also using it for its car ads. Instead, the tag line "Built to Last" tag was created for Ford cars.

Seven months after the campaign launch, Adweek reported that Ford intended to increase its spending on ads that targeted Hispanic and African American consumers and, for the first time, to make some of the advertising targeting African Americans part of the general market pool. Uniworld, New York, was hired to handle the African-American marketing, while Zubi Advertising of Miami handled the Hispanic advertising.

COMPETITION

Ford, General Motors, and Chrysler (which in November 1998 merged with Daimler-Benz AG to become DaimlerChrysler AG) made up Detroit's big three automakers. For years GM had enjoyed the number one spot in U.S. auto manufacturing, followed by number two Ford and number three Chrysler. In November 1997, however, Ward's Auto World reported that all three were losing market share in passenger cars to light trucks and sport utility vehicles. At the same time there was increasing pressure on the Detroit automakers to keep prices down. GM offered various financial incentives, including cut-rate financing programs and cash rebates on 1998 cars and light trucks. Ford and Chrysler offered similar incentives as well. The Wall Street Journal reported in November 1997 that, despite healthy sales and a robust economy, U.S.-based automakers were also facing increased price pressures from Japanese imports as a result of the weak yen and reduced production costs.

During 1998 General Motors reportedly lost market share, and in August 1998 the Wall Street Journal noted that "GM's total sales and market share fell below those of No. 2 automaker Ford Motor Company for the first time since a national strike against GM in 1970." Ford's market share for April 1999 was reported to have dropped by 0.9 percent from that of the previous three months, however.

MARKETING STRATEGY

The launch of a new advertising campaign in February 1998 was a major event for the company. According to Art Spinella, the automotive director for CNW Marketing Research, "Ford tends to hand on to its ad campaigns for a long time." The new campaign featured a new tag line. The slogan that Ford had used for 15 years—"Have you driven a Ford lately?"—was replaced with "Ford Cars: Built to Last." The tag line "Built Ford Tough" continued to be used in truck advertising.

The television ads told stories of everyday people with humor and emotion in order to strike a chord with consumers. In choosing a spokesperson, Ford looked for someone who was not such a megastar that he or she would overshadow the product. Corbett, known from Northern Exposure, tested well. In fact, his role in the commercials closely resembled his role in the television series, in which he served as something of a narrator.

In a written statement issued several months after the campaign had started, Ford described its approach as "down-to-earth" and "a real change in Ford's approach to advertising." According to Ford's Klug, "When we launched the campaign in 1998, we discovered that everyone has a favorite story about a car or truck. This campaign is all about communicating on an emotional level—not just price and features." According to Ford, the spots dealt with "the human spectrum of experience, from the humorous to very emotional themes." Klug noted that the campaign "is all about building mind-changing communication, and to do that we need to make an emotional connection with our customers. One of the benefits of the campaign is the ability to tell stories that capture the personality of individual vehicles, but in a consistent, unified way that conveys the values that stand behind the Ford name."

Examples included an ad in which two friends—Charlie and Ray—made a wager over the capabilities of the F-Series truck. Charlie bet that Ray's truck would not be able to tow an 8,000—ton ship, and, of course, he lost. Another example was an Escort ad in which two women in a ZX2 tried to elude a strange van that was chasing them. When the van passed them, they realized that it was Publishers Clearing House trying to give them a prize.

Ford reportedly earmarked $80 million for the campaign, double the amount spent the year before. Six 30-second television spots were introduced during the coverage of the Winter Olympics, with the models advertised including the Mustang, Taurus, Escort ZX2, and F-Series pickup truck. One of the ads focused on Ford history, and another emphasized Ford's commitment toward Race for the Cure.

OUTCOME

After six months of running the ads, Ford decided to expand the campaign to all of its vehicles—cars and trucks—with the release of the 1999 models. Corbett was enlisted to appear in 13 new commercials, which included the "Hands" spot and another called "Charlie's Parents," in which two overprotective parents took comfort in knowing that a Taurus was helping keep their son Charlie from harm. Another humorous spot showed two women talking about their boyfriends' Mustangs, only to realize that they might be talking about the same man. In addition to the 13 new spots, several old ones were carried over from the 1998 campaign.

JOHN CORBETT: FROM STEELWORKER TO SPOKESPERSON

John Corbett, an ex-steelworker from West Virginia who went into acting after being injured on his job, was probably best known for his role as small town disc jockey Chris Stevens in Northern Exposure. Corbett also served a shorter stint on the Fox sci-fi series The Visitor, in which he played a passenger on an alien spaceship that crash-landed in Utah.

The Ford campaign was not Corbett's first experience as an auto spokesperson. During his time on Northern Exposure, Corbett also provided the voice-over for Isuzu Trooper commercials. A spokesman for the Isuzu advertising agency said that Corbett was chosen because "we wanted someone who was observant, who had a compassionate voice that would present a situation and then make it relevant." Perhaps Ford observed those same qualities in Corbett when it signed him on as its storyteller.

Ford also decided to change its 1999 marketing strategy to focus on its primary brands—Ford, Lincoln, Mercury, Jaguar, and Mazda—rather than individual models. Jim Schroer, Ford's executive director of marketing strategy and brand management, believed that past marketing efforts had tended to promote specific name-plates, such as Taurus and Explorer, too heavily and did not connect with or reinforce the primary brand. "The change is to make sure each nameplate strengthens the primary brand it is under," he said.

Spinella of CNW Marketing Research predicted, "This new campaign looks like it has some legs under it and Ford should be able to use it for another 10 to 15 years." Ford's Klug thought that the storytelling approach was effective. "Storytelling is part of the human DNA," she said. "People can really relate to it. You can tell stories that revolve around the personalities of our products."

FORD TRUCK ADS COME ON STRONG

For its 1999 advertising efforts Ford decided to do more than just tell nice stories about its trucks. In fact, in a departure from precedent the company decided to come on stronger. In addition to referring to competitors by name, Ford's truck advertising took on a somewhat confrontation tone. Paul Morel, Ford Division's truck group brand manager, called the ads "very hard-hitting and confident for a very tough and competitive market." In one ad a factory foreman announced to the plant that a Ford F-Series truck in the parking lot had its lights on, and he watched in dismay as all of the workers cleared out to check on their trucks. One print ad showed a Ford F-Series truck driving through the rain with the text "You're not going to find a better truck anywhere. Not even if you look under a rock." The reference was reportedly to advertising for the General Motors C/K Series truck in which Bob Seger sang "Like a Rock."

"Ford hasn't been doing in-your-face advertising with their competitors before. So I think the strategy they're taking with their truck represents forward thinking," said Tanya Gazdik, the Detroit bureau chief for Adweek.