Ford Motor Company (F) Is One Step Ahead of Its Rivals

I think what makes this strategy successful is the power that word of mouth has. People are much more inclined to listen to people they trust, and these agents, with large audiences of loyal readers, are in a great position to spread the good word of Ford’s Fiesta. Moreover, this is a new era of social networking and media advertising. Connecting to the younger consumer will require new tactics like Ford’s campaign. Keith Koeppen, Ford’s advertising and media manager, makes a great point regarding this demographic unit:

“Consumers — Millennials in particular — like being a part of the brands they feel represent them. … This demographic is accustomed to creating content about their lives, so it just makes sense to give their creativity a bigger platform with greater scale.”

Here’s the kicker: The Millennial generation represents much more purchasing power than people may realize — an estimated $170 billion, with the age group representing 79 million people. That’s the largest group since the baby boomers, and it dwarfs the 48 million in Generation X. This segment will soon be primed to outspend any other, and it will take a unique advertising campaign to reach these consumers, who grew up with cell phones and digital media. Ford is in a prime position over its competitors in advertising to this group, which could be a huge boost to its future sales.

Bottom line
Millennials will command a growing share of vehicle purchases in the near future, and the Fiesta attracts more Millennials than any other Ford vehicle. To gain such a following from my generation means that Ford understands how it needs to tell its story differently through social media.

To use social media successfully is to be on the cutting edge of marketing, which is often difficult for companies. Ford continues to stay one step ahead of competitors with its marketing in general, and it looks to keep that advantage as the next generation commands more vehicle sales. It’s important to learn from the past and keep an eye on the rearview mirror, but when I look for investments, I want a forward-thinking management, which Ford represents to the fullest. I have full confidence in Ford’s future, and I think other investors should as well.

The article Ford Is One Step Ahead of Its Rivals originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford and General Motors and owns shares of Ford.

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