2010 Ford Taurus Hits Targets in Cross Shopping
October 12, 2009

When Ford product planners began to contemplate a possible new generation Taurus, they decided they should either move the next Taurus upmarket so it wouldn't be positioned right on top of the popular Ford Fusion as the previous one was - or forget about being in the segment altogether.

The automaker moved forward with a more upscale Taurus, introduced this summer as a 2010 model, and it appears to be doing what product planners intended, according to Edmunds.com's analysis of Taurus shoppers and what else they are considering.

The analysis shows:
- the new Taurus is being cross-shopped less with other Ford models than the old one, and the Ford models it is being cross-shopped against are more upscale ones;
- the new Taurus' most cross-shopped list shows more upscale competitors in the mix, including some luxury brands and hot imports that weren't on the old Taurus' cross-shop list;
- off the top 10 list are more downmarket competitors.

Ford's Target Markets

Ford product planners had three sub-categories of the large car (C- and D- segment) market in mind as they developed the newest Taurus, Amy Marentic, Ford group marketing manager of large cars and crossovers, told AutoObserver in an interview.

With the Taurus' emphasis on technology, a premium powertrain and exterior styling, the primary target segment Ford is the "style and power" customer; those who might buy a Chrysler 300 or Dodge Charger. The goal for that subset was 40 percent of new Taurus buyers, said Marentic.

Rounding out Taurus sales, Ford intended, would be loyal Taurus buyers -- included in the "practical and popular" subset - and buyers who might opt for Buicks and Ford Crown Victoria, with an average age of 70.

Marentic said Ford's early indications suggest the Taurus is hitting the market: the average buyer age has dropped six years from 64 to 58; the new Taurus is selling faster than the old one with days-to-turn (the days from delivery to the dealership to sale to the customer) at 10 days; and is achieving higher penetration of key markets, including the African-American market.

Richer Mix, More Tech 

Also promising is the richer mix - thus higher transaction prices - of the new Taurus versus the old one. Ford reports 95 percent of Taurus orders are being equipped with all of the technology available.

Marentic said navigation systems, which used to be only 4 percent of the mix, are up to 25 percent of orders. Push button start is running at more than 50 percent. "Even the Taurus SHO is running at a higher mix than we expected," she said, acknowledging richer mixes often occur during the early going of a product launch.

Also promising is a geographic trend Ford is seeing with the new Taurus. Detroit, home of Ford Motor Co. and thousands of its employees, and Chicago, where the Taurus is made, were top markets for the old Taurus and remain top markets for the new one. However, California now ranks No. 2 for selling the Taurus.

"Dealers in California are asking for bigger allocations so they can run special promotions since they don't have a lot of inventory," Marentic said.

Less Ford Cross-Shopping

Edmunds.com's analysis of the new Taurus top 10 most cross-shopped competitors versus the old Taurus, based on August sales figures, shows the Taurus being cross-shopped with fewer Ford vehicles - two Ford models versus three. The Ford Fusion tops Edmunds' list of vehicles most cross-shopped with the new Taurus. Marentic says Ford's research ranks the new 2010 Buick LaCrosse first; Edmunds.com ranks it second.

The Ford cross-shops are more upscale models on the new Taurus than the old one. For instance, the new Taurus is cross-shopped with the Lincoln MKS whereas the old Taurus was cross-shopped with the Ford Focus and Ford Taurus X (a crossover once known as the Freestyle).

 

  New Competitors for New Taurus

New competitors have made the Taurus' most cross-shopped, Edmunds.com noted. Behind the Fusion, the Taurus is most often cross-shopped with the new 2010 Buick LaCrosse. In addition, the LaCrosse is most often shopped against the Taurus. Of course, both are brand new, are in their launch phase and are being heavily advertised.

New to the new Taurus' most cross-shopped list besides the LaCrosse are the entry-luxury Cadillac CTS and the highly acclaimed Infiniti G37. Also new to the list is the Hyundai Genesis, a more upscale, sporty model than the Hyundai Sonata that was on the old Taurus' cross-shop list.

The rest of the vehicles on the new Taurus' top 10 most cross-shopped list are the usual suspects, but with the order changed. The Honda Accord has dropped to the No. 3 spot from second lace. The Chevrolet Malibu from three to four. The Toyota Camry fell from the No. 5 spot to the No. 8 spot. And the Nissan Altima fell from No. 7 to No. 9.

Dropping from the top 10 list were the Chevrolet Impala, Toyota Avalon, Hyundai Sonata and the already mentioned Hyundai Sonata.

Strong Sales Start

"We're cautiously optimistic," said Marentic.

Indeed, Taurus sales are off to a good start. In September, the Taurus bucked the industry trend with sales of 5,077, a whopping 60 percent higher than a year ago and 49 percent more than August. - By Michelle Krebs, Senior Analyst and Editor at Large

Photos by Ford

1 - 2010 Ford Taurus

2 - Amy Marentic, Ford group marketing manager of large cars and crossovers, poses with the 2010 Ford Taurus.

3 - Customers are ordering high-ticket high-tech on the new Taurus. 

 

 

Posted by Michelle Krebs at 10:19 AM under Analysis , Companies , Featured , Ford | Comments (2) | digg this | Seed Newsvine

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