The most important talent that Henry Ford had as a marketer was that he understood the paradigm structure of his market. In short, he understood how his market works. He knew what things had to be done in order to create a brand. In 1908 there were 88 car companies in America. Several of these companies had multiple brands. Just as today, Henry Ford had to market in a space that was flooded with products. How did create a brand for his Model T?
Henry surveyed his market and he understood the paradigm of the car market of 1908. The United States had a geographic vastness. The American people needed dependable transportation to conquer this vastness. The nation and its individual people needed a means to move quickly. The brand which could create a car “for the masses” would control this market. The success of the brand would hinge on low price. This is key point in explaining why the Model T was successful. Ford positioned the Model T against the other 88 plus brands on price. A car had to be developed that anyone and everyone could afford. Ford understood that the car was not a toy for the rich, but a necessity for everyone.
The world that Henry Ford envisioned happened. He was able to develop a no frills car. People knew that if they purchased a Ford, it could come in any color they wanted as long as it was black. He understood that at this point, the vast majority of Americans wanted a car that they could afford and that would run properly. He developed a machine that was practical with no frills . The Model T was a success. Overnight, Ford captured 50% of the market. More importantly, now anyone could afford to a car and drive
This car changed how people lived. They now had a means for dependable transportation. They could get to jobs quickly. The car gave workers greater opportunities. A middle class developed. That middle class created whole new industries, like road side hotels and service stations
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