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MEMO
ON
FORD INDIA LTD.
Presented By:
Group 2 – Peter Drucker
Akanksha Arora - Business Development
(8001)
Garima Singh - CEO (8014)
Utsav Shah – CMO (8045)
Pritesh Lodha – COO (8084
Vishal Shah – CFO (8107)
Ashish Trivedi – CMO (8117)
Agenda
About Ford, India
Industry overview
Marketing strategies
Positive practices adopted by Ford
Challenges
Brief financial analysis
SWOT
Competitive analysis
Strategies for Indian market
Recommendations
The road ahead
Ford India Ltd
Started in 1995 with M&M ltd.
50 – 50 JV
Source: www.team-bhp.com
Car market in India – Major
players
Segmentation
a) Geographic Segmentation: metro cities e.g. Delhi,
Noida, Mumbai, Kolkata Bangalore, Pune etc
b) Demographic Segmentation:
3. on the basis of Age: middle age people (25-40)
4. on the basis of Income: upper middle level or the
high-level income groups
c) Psychographic Segmentation:
on the basis of the Lifestyle: segmentation is done
on the basis of the attitude, interests and lifestyle
etc of the potential customers
d) Behavioral segmentation:
2. on the basis of Benefits Provided: such as
quality, service, economy, speed comfort etc.
3. on the basis of the Readiness stage: awareness
and interest among the customers about the brand
e) Strategic Segmentation of Cars:
5. Family car segment: e.g. FORD IKON’ AND
‘FORD FUSION’
6. Premium car segment: e.g. FORD FIESTA’,
‘FORD MONDEO’
7. SUV segment: e.g. ‘FORD ENDEAVOUR’
Targeting
Ford Ikon - Entry-level middle class group
New products
Ford small car
Ford electric car
Fuel efficient vehicles
Services
Quality care
Ford assured
Quick service centers
SSP(schedule service plan)
Place
Target metro cities
Strategic Distribution network
vHMIL
vJai Hind
Pricing
Ford Ikon: Rs. 5,45,200
Website
Dealer development
Go green strategy
Ford offers
Community sponsorship
Selling strategy
Corporate sale
Field sales
Showroom sales
Positive practices
adopted
Excellence in manufacturing
Constant monitoring of the supplier base
Maintaining quality and customer satisfaction
Degree of localization
Challenges
Uncertainty and fluctuations in the Indian car market.
Global increase in crude prices will impact the purchasing decision of the
potential customers to buy the petrol engine models.
To combat the increasing usage of LPG fuelled or electric cars in the world.
H
igh
Low Existing
Supplier Industry Buyer
Competitors
H
Modera
igh te
Low
Substitute
Competitive Profile
Matrix
Ford has to work upon certain factors where it is ranking less and has
to develop strategies in order to have an edge over its competitors.
Choosing the type of
strategy to adopt
No strategy is right or wrong
Depends on the goals, present situation, resources, intents and
vision of the company
Competitive
Defensive
Conservative
SPACE matrix (Strategy Position ACtion
Evaluation)
A four quadrant matrix to determine the type of strategy to
be adopted
SCALE
+1 +2 +3 +4 +5 +6 -6 -5 -4 -3 -2 -1
Poor Best Poor Best
Continued…
SCALE
+1 +2 +3 +4 +5 +6 -6 -5 -4 -3 -2 -1
Poor Best Poor Best
Calculations for SPACE
Financial Strengths: 19/5 = 3.8
Environmental Stability (ES): -22/9 = -2.44
Competitive Advantage (CA): 23/7= 3.29
Industry Strength (IS): -17/6 = -2.83
Y Axis
FS + ES = 3.8 + (-2.44) = 1.36
X Axis
CA + IS = 3.29 + (-2.83) = .46
SPACE Matrix
○ Target customers : upper middle class, who wont mind the price
hike if they get good quality
Maintain or increase share of current products through
promotions and providing quality product.
Introducing loyalty schemes
2. Market Development
Increasing its market share through
Expanding dealer and service center networks
○ Availability
Europe
○ Local content in Ford Fiesta & Ikon are 85% & 90% resp.
3. Product Development
New version of Ford Fiesta for the younger
generation
Based on customer experience, it appeals the
young, suave and style-oriented professionals
It surrounds its occupants with eye-catching
luxury and comfort and sumptuous interiors
4. Diversifications
Vertical diversification
Setting up integrated and flexible engine manufacturing
plant in India
Current capacity of 60K units per annum to be increased
to 2.5 Lakhs
Concentric Diversification
Launching new crossover cars in the long term in India
Recommendations
Launch A Small Car before its too late
Networking with suppliers and Localization
Effective media campaign for India
Ford India: The Proposed
Roadmap
Enter into SMALL CAR market, which is the highest selling
(70%) market in India.
(Petrol version) prized small car High fuel efficiency approved by ARAI
Prized at 3.5 – 4.0 Lacs Stylish international design
1100 CC Engine 3 year service warranty
(Less govt duty for engines less than Availability of options such as ABS,
1200 cc)
Airbags for consumers who want to give
A whole new design and R&D for the car premium price for safety
customized to the Indian market
Effective and Innovative media
BS Stage IV emission norms
campaign bundled with a good PR work
Following the Industry and category
for the car
benchmarks in offerings of comfort,
safety and performance Availability of Nationwide ford service
Ford India: The Proposed
Roadmap
Enter into ELECTRIC & HYBRID CAR market, which is growing
Why? How?
Environmental Concerns A strong R & D
Fuel Price Develop a Hybrid vehicle
Seen as NEXT Era of Develop an Electric Powered
Automobiles car
Lower Running Cost Lobbying with Industry
associations & Govt. of India to
reduce the taxes and duties.
Effective Marketing
Suggestions to FORD
India
Suggestions to FORD
India (cont)
Thank You..!
Thank You..!