Background
Lee Iacocca enjoyed an impressive career at Ford. He joined the company in 1946 as an engineering trainee. Clearly a high-flyer Iacocca’s star rose quickly with him moving into sales and marketing where he became instrumental in Ford’s product planning function. One car in particular would help propel him to the very top of the Ford food-chain, however. As the swinging sixties arrived Iacocca was lamenting Ford’s lack of a fun but attainable sportscar – something that a recent graduate would want to drive……and be able to afford. As a result, a tight brief was compiled and development started amidst strict secrecy in 1962. The brief stipulated that the new car should be able to seat four adults, cost less than $2,500 and weigh less than 2,500 pounds. In order to meet that ambitious price point extensive access to the Ford parts bins would be required with the Fairlane and Falcon becoming the key donors.
The new car, now named Mustang, was launched at New York’s World Fair in April 1964 and simultaneously released via Ford’s huge dealer network countrywide. This was supported by one of the biggest coordinated product launches in American business history. At a time when car advertisements focussed on technical specifications, Ford did something significant – they sold the sizzle and not the sausage. Advertisements hardly touched on specifications but sold a lifestyle instead. Young, attractive actors were seen swimming, skiing, sailing and generally enjoying life in a Mustang. Ford bought slots on all three major American television networks on launch day. The commercials aired during prime-time programmes including Hazel (NBC), Perry Mason (CBS) and The Jimmy Dean Show (ABC). Over 27M Americans lapped up Ford’s coordinated marketing output. And it worked. Over 22,000 orders were placed on the launch day alone. More than 400,000 cars were sold in the first year and the millionth Mustang was sold during 1966. This unprecedented success gifted Lee Iacocca the role of President of the Ford Motor Company in 1970. The car itself would continue to sell in droves and inspired a lineage that numbers over 10.5M units to date.








