Ford’s (NYSE:F) Explorer pushing its way into the hearts of Millennials
2014 has been tough in terms of the stock price of Ford Motor Company (NYSE:F). On the other hand, the company is doing really well regarding its business strategy. Ford (NYSE:F) aims to launch 23 of its vehicles for the next year, and its new Mustang as well as the F-150 is to hit the markets this current year. However, the Ford Explorer is the star currently.
15% of the sales of Ford Explorers are coming in from people trading in their luxury cars including brands like BMW, Mercedes-Benz and Audi. It seems odd to some people as to why people would be trading in their expensive luxury cars for an Explorer, but the managements not surprised as it’s a high end package. Ford’s (NYSE:F) brand manager for Explorer, Matt Zuehlk stated that the company was expecting the trade-ins that are happening for its Explorer Sport.
He continued to say that the car offers excellent world-class performance with comfort as well as technology at a price which is more affordable than other luxury rivals. This is especially for the competitors in large import markets of luxury products like Los Angeles and New York. This shows that the brand image of the company is increasing as it is gaining the attention of high-end customers.
Selling to these high-end customers is also beneficial because they prefer add-ons hence increasing the sale price of the car. Ford (NYSE:F) stated that 24% of consumers for Explorer and 40% of consumers for Explorer Sport are causing an increase of $150,000 per year in revenue. This is much more than the 17% mark that the brand already has incorporated in the previous revenue numbers.
Ford (NYSE:F) knows that customers want cars with better features and options therefore it is exploiting this opportunity to gain more potential in the market. Even though more customers are a plus point, Ford (NYSE:F) is very enthusiastic in targeting young customers which can stick around for more purchases in company products. Ford (NYSE:F) is the industry leader for customer loyalty and the number of customers it has currently are increasing to add more loyalists.
Going way back to the year 2008, Ford (NYSE:F) was the fourth brand ranking wise when millennials were considering buying a car. By the end of the previous year, the company shot up to being the first in this category according to Maritz Research – a marketing research firm based in St. Louis. It is obvious at to which Ford (NYSE:F) automobile caused the highest amount of increase in young customers.
The Ford Explorer takes the credit by helping in improving the brand image and buyer consideration. Everyone knows about the impact that Ford has had in the last five years on the market with its famous Escape and Fusion as well as the different redesigns of its Mustang, F-150 and Explorer. Other automobile companies are trying their best to grab market share but Explorer is winning.