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h 4th largest auto maker founded by Henry Ford in 1903

h Ford Motors- strong market position

h 1990s- Lowest costs & high quality in the US Automobile industry


h mustomers dissatisfied with the process of buying a vehicle; sellers

didn͛t pay heed to the customer͛s needs.

h Sales people had tactics to lure customers into paying more.

h Limited usage of Ford dealerships for non warranty repairs.

h Sales strategy of Saturn(division of GM) was different from it͛s


h mustomers were unhappy with Ford͛s dealerships and Ford͛s ability to

change dealer͛s behaviour was limited.


h monsolidating Ford dealers in a market in a single liability company(FIEmo).
h Î 
h most reduction
h Service enhancement

h !

hMazda and Jaguar (occasionally)
h Also on agenda: Satellite light-service-only locations(garages)

a) Development of an intranet.
b) monstruction of customer loyalty database.
c) Prediction system for vehicle sales.

a) Each location had a head sales manager and head service manager.
b) Sales and service managers reported to central collection management.



  Î Î Î

c) Role of mollection Management was to:

i. Oversee Operations
ii. mreate Strategy
iii. Facilitate sharing of information across the locations

a) Selecting appropriate individuals and putting them in the right positions.
b) Training programme.
c) HR managers tried to influence change among the employees.
a) Initial focus of marketing was introducing the Auto mollection
concept and explain its benefits; murrent plans included base of
written materials and media communication and more targeted
b) Website for each Auto mollection.
c) Development of customer relationship centres.

! Î
" #: One price selling. No negotiations.
" #   : Low pressure sales; Everything was to be customer

: Based on number of vehicles sold, not profit made
on price of each vehicle.
"   : Savings from economies of scale; increase in cost due to
increase in employee benefits.


h Dramatic change- sales & h 3- step process
profits declined
h Slow & steady; less risk; time-
h Quick; but high risk consuming

h If benefits highlighted h Reduced market resistance

effectively-- will create a
bigger pool of prospective


mustomers were dissatisfied with the process Efforts to increase customer satisfaction by
of buying a vehicle. charging fair prices, providing better
services etc.
mustomers usually didn͛t find what they were Greater selection; customers had various
looking for . brands and options to choose from
People rarely used Ford Dealerships for Services were promised to be customer
servicing their vehicles . needs driven low pressure.
mustomers were usually confused by quoting ͚One price policy͛ was now adopted.
a low price in advertisements.