1.

1 PURPOSE OF THE STUDY

The purpose of making this project is to Study the Promotional Strategies of Ford Udyog
Limited.
The following are the areas of study
1. Overview of the Automobile Industry
2. Ford’s Vision, Mission & Focus
3. What makes Ford different from others
4. Culture followed at Ford
5. Objectives of the Company
6. Brand Portfolio & Hierarchy
7. Factors influencing the buying behavior of the consumers
8. Market Segmentation
9. Target Promotional
10. Strategic Goal
11. Competition available in the market
12. Business Model
13. Competitive Strategies followed
14. Sales figures
15. International Business

1
1.2 OBJECTIVES OF THE STUDY

Primary Objective
To know the influence of various Promotional Strategies, Promotional
Activities towards the customers of four wheelers (cars).

Secondary objective
• To know the effective factors for preferring 4 wheelers(CARS)
• To know the factor of awareness of the cars.
• To Study and analyze the Promotional Strategies of Ford
• To know whether the customers are satisfied with the offers
given by the dealer.
• To know which kind of offers can attract the new customers.
• To find the area to be improved
• To find out satisfaction of the customers.
• To find the reasons for the dissatisfaction
• To study the channel levels involved in the promotion of Ford
• To study and analyze the customer's perception regarding the
usefulness/utility of Ford cars.
• To study and analyze the distributors perception regarding the
promotional and distributional strategies of Ford.

2
1.3 RESEARCH METHODOLOGY OF THE STUDY

1.3.1 RESEARCH DESIGN

Definition of Promotional research as approved as by the board of
directors of the association of American Promotional association is
“Promotional research is the function which links the customer and
public to the marketer through information – information used to
identity and define Promotional opportunities and problems generate
define and understanding of Promotional as process”.
Simply, Promotional research is the systematic design collection
analysis and reporting of data finding relevant to a specific Promotional
situation facing the company. Carefully planning through all stages of
the research is a necessity.
Objectivity in research is all-important. The heart of scientific method
is the objective gathering of the information.
The function as Promotional research with in the company as to
provide the information and analytical necessary for effective.
• Planning of the future Promotional activity.
• Control of the Promotional operation in the present.
• Evaluation of Promotional results.
A research may under take any of the three types of research
investigation depending upon the problem. This type of research
included
1. Basic research
2. Applied research
3. Designated Fact Gathering

BASIC RESEARCH

3
It is also known as the pure fundamental research, which refers to
those studies, sole purpose of which is the discovery of new
information. It is conducted to extend the horizons on given area of
knowledge with no immediate application to existing problems.

APPLIED RESEARCH
It is attempt to apply the various Promotional technique, which have
been developed as research, first and later on they become applied
research techniques. It is on attempt to apply the basic principles and
existing knowledge for the purpose of solving operational problems.

1.3.2 DATA COLLECTION- PRIMARY & SECONDARY

DATA
DATA COLLECTION
The information needed to further proceed had been collected through
primary and secondary data.

PRIMARY DATA
It consists of information collected for the specific purpose, survey
research was used and he all the details of Ford and their competitors
were contacted. Survey research is the approached gathering
description and information.

CONTACTED METHOD
The information was solicited by administering structured
questionnaire to the customer and dealers, thus getting to know
directly from the dealers their sales before and after sales service.

SECONDARY DATA COLLECTION

4
The secondary data consists of information that already existing somewhere having been
collected for another purpose. Any researcher begins the research work by first going
through secondary data. Secondary data includes the information available with
company. It may be the findings of research previously done in the field. Secondary data
can also be collected from the magazines, news papers, internet other service conducted
by researchers.

1.3.3 SAMPLING DESIGN

1.3.3.1 POPULATION
The survey has been conducted on a target population of Delhi.

1.3.3.2 SAMPLING SIZE

Research is done on 50 respondents of DELHI. Here, large number of samples gives
more reliable result than small number. However it is not necessary to sample the entire
target population or substantial portion to achieve reliable result.

1.3.3.3 SAMPLING METHOD

The sampling method used in this project is RANDOM SAMPLING METHOD.
The 50 respondents are the users of Ford cars and are selected randomly.

1.3.4 Method of data collection

The basic method adopted in conducting the study is a structured questionnaire.
Questionnaire is administered on the sample respondents. How ever there are certain
cases where personal interactive method is followed with customers to find the
satisfaction level.

1.3.4.1 INSTRUMENTS OF DATA COLLECTION

STATISTICAL TOOLS

5
Representation of statistical data by diagram, graphs, charts or pictures is more effective
than tabular representation being easily intelligible to a layman, indeed diagrams is most
essential whenever it is required to convey any statistical information to the general
public.

1.3.4.2 DRAFTING A QUESTIONNAIRE

Drafting a questionnaire is not as simple a job as it looks at first sight. A Promotional
researcher intending to collect primary data has to be extremely careful in deciding what
information is to be collected, how many questions are to be formulated, what should be
their sequence, what should be the wording of each question and what should be the
layout of the questionnaire. All these aspects need considerable time and effort of the
Promotional researcher. If he is able to develop a questionnaire suitable for his field
investigation, he will find that his task of collecting the data has become much easier than
otherwise.

1.3.5 LIMITATIONS
• Resources for collection of data are less.
• Difficult to get response from customer.
• Experience in field of research is difficult job.
• The success of any survey depends upon the quality and integrity of the surveyor
who collects the basic data by expressing the subject under the study and on the
respondents who provides the data required by filling up the questionnaire .The
accuracy of the data collected solely depends upon the cooperation and
truthfulness of the person who is being interviewed.
• Interaction skills as well as the behavior of the respondents also played as a
constraint during the research.

6
FORD MOTOR
It is an American MNC and the world's third largest automaker based on worldwide
vehicle sales. In 2006, Ford was the second-ranked automaker in the US with a 17.5%
market share, behind General Motors (24.6%) but ahead of Toyota (15.4%) and
DaimlerChrysler (14.4%). Ford was also the seventh-ranked American-based company in
the 2007 Fortune 500 list, based on global revenues of $160.1 billion. In 2006, Ford
produced about 6.6 million automobiles, and employed about 280,000 employees at
about 100 plants and facilities worldwide. In 2007, Ford had more quality awards from
J.D Power than any other automaker. Based in Dearborn, Michigan, a suburb of Detroit,
the automaker was founded by Henry Ford and incorporated in June 16, 1903. Ford now
encompasses many global brands, including Lincoln and Mercury of the US, Jaguar and
Land Rover of the UK, and Volvo of Sweden. Ford also owns a one-third controlling
interest in Mazda. Ford has been one of the world's ten largest corporations by revenue
and in 1999 ranked as one of the world's most profitable corporations, and the number
two automaker worldwide. Ford introduced methods for large-scale manufacturing of
cars and large-scale management of an industrial workforce, especially elaborately
engineered manufacturing sequences typified by moving assembly lines. Henry Ford's
combination of highly efficient factories, highly paid workers, and low prices
revolutionized manufacturing and came to be known around the world as Fordism by
1914.

7
HISTORY
Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve
investors, most notably John Francis Dodge and Horace Elgin Dodge who would later
found the Dodge Brothers Motor Vehicle Company. During its early years, the company
produced just a few Model T's a day at its factory on Mack Avenue in Detroit, Michigan.
Groups of two or three men worked on each car from components made to order by other
companies. Henry Ford was 40 years old when he founded the Ford Motor Company,
which would go on to become one of the largest and most profitable companies in the
world, as well as being one of the few to survive the Great Depression. The largest
family-controlled company in the world, the Ford Motor Company has been in
continuous family control for over 100 years.

CORPORATE GOVERNANCE
Members of the board as of early 2007 are Chief Sir John Bond, Richard Manoogian,
Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO),
Edsel Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr.,
John L. Thornton and William Clay Ford (Director Emeritus).The main corporate officers
are Lewis Booth (Executive Vice President, Chairman (PAG) and Ford of Europe), Mark
Fields (Executive Vice President, President [The Americas]), Donat Leclair (Executive
Vice President and CFO), Mark A. Schulz (Executive Vice President, President
[International Operations]) and Michael E. Bannister (Group Vice President; Chairman &
CEO Ford Motor Credit).Paul Mascarenas (Vice President of Engineering, The Americas
Product Development)

FORD IN INDIA
Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which
produced the Escort out of M&M Nasik plant. After meeting initial success, sales of the
Escort was finally replaced by the Ikon in 1999. The Ikon marked a new beginning for
Ford in India. It rolled out of the Marajmalaingar plant near Chennai and by now, the
company had parted ways with M&M and was renamed Ford India Ltd in 1998. The Ikon

8
was the first model by a multinational to be developed specifically for India. Though it
was based on the Fiesta, it was a unique body style and was offered and was offered with
an option of three engines, including a diesel. The car was a big hit. The Ikon underwent
several face-lifts and price cuts to keep demand high. However, fresher competition and a
reputation for high-maintenance saw sales gradually decline. After the arrival of the
modern and highly-capable Fiesta, another made for- India car, with state-of-the-art
engines, the Ikon has been marginalized. The Fiesta has picked up where the Ikon left
and is selling well. Though the Ikon and Fiesta have been the mainstays of Ford’s
production in India, the company has had limited success with other models. The
Mondeo, launched in 2001, was a very talented car by was simply not suited to Indian
conditions and earned a reputation for being exorbitant to maintain. The Endeavour SUV
was launched in early 2004 and has sold well for its niche. The Endeavour has recently
been upgraded in 2007 and this has boosted the appeal of the big SUV. In 2004, Ford
launched the Fusion, which has received a lukewarm response though the recent diesel
variant has perked up sales.

FORTUNE FORD is an authorized dealer for Ford India Limited, who are one
of the leading manufacturers of top quality cars in India, with many variants in the
offering.
Fortune Ford is a 5050% Joint Venture set up between two well known and reputed
families in Hyderabad, the Modis and the Babu Khans. Fortune Ford is a blend of
experience and youth. The experience and good will that Mr. Misbahuddin Babu Khan
and Mr. Pramod Modi enjoy blend very well with the youth and energy of the youngsters
Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world class Ford
Dealership. Fortune Ford markets and services the recently launched truly European Ford
Fiesta, the ever-popular Ford Ikon Flair, the No non-sense car Ford Fusion and the macho
SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales
outlet is located strategically at Somajiguda next to Eanadu. We have two service centers,
one at Chapel Road, Abids opposite Stanley College and other one at Fathebagh,
Santhnagar. These centrally located outlets provide convenient and easy access to both

9
the proud owners as well as prospective buyers. The workforce at Fortune Ford is
committed to excellence in serving all esteemed customers. The Sales Team is made up
of dedicated showroom and field executives who are professionally trained by Ford India
Limited. They are adept at guiding the customer through the entire sales process right
from assisting in the choice of model, colour and features to lending a helping hand in
providing attractive buyback options and also arranging finance at competitive rates. The
Service Centre is armed with the state-of-the art equipment and is in-line with Ford's
exacting Global standards. The service team is technically qualified and trained to
analyze and provide solutions adhering to Quality Care, in order to satisfy even the most
demanding customers. The Fortune Ford dealership maintains a high standard of
excellence in sales and services by sending its personnel for training on a regular basis to
Ford India Limited, to update them with the latest technological advances in the
automotive sphere.

SHOWROOM
We have 5000 sft centrally air conditioned showroom, located in the heart of the city in
Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes
convenient for almost every one residing in and around Hyderabad and Secunderabad.

The facilities offered from the showroom are

1. Very easy finance facility with in-house finance team to cater to your every car finance
requirements. All the leading finance counters are available like ICICI, HDFC, KOTAK,
SUNDARAM, SBI, etc.
2. Exchange offer for any of your used car. Free spot evaluation for any used car.
3. Professionally trained and courteous sales staff to take care of every relevant need of
the customers. 5.Full range of Ford cars with all colors and models to choose from.
4. A good stock of Ford genuine accessories to make your Ford ownership more
delightful and safe.

10
5. A well maintained fleet of test drive cars to give you the feel and experience the drive
dynamics on actual driving conditions before take the purchase decisions. You can call
our sales help line for test drive or fill the on-line test drive requisition form.

Significant milestones
• The first Indian built Ford Escort rolled off the assembly line in 1996.
• The Company was able to deliver Ford Escorts in seven major cities
simultaneously, in just a month after booking.
• The Special Value Pack program was launched in 1997, with commemorative
'Freedom', followed by the petrol and diesel driven 'Anniversary'. Recent SVPs
have included the Orion, Alpha and Sport - E.
• Ford Escort won the J D Power Award in India Quality Survey in 1997.
• Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in
the Customer Satisfaction Survey.
• Quality Care, Ford's branded service initiative, provides car owners with superior
services at its dealership countrywide.
• The new, integrated manufacturing plant was dedicated in March 1999, where
FORD IKON is manufactured.
• Ford India launched Ford Assured on April 24 2000, a new initiative to buy and
sell used cars of all makes.

11
FORMULATING THE PROMOTIONAL STRATEGY
Basically, formulation of Promotional strategy consists of three main tasks
1. Selecting the target market,
2. Positioning the offer,
3. Assembling the Promotional mix.
This implies that the essence of the Promotional strategy of a firm for a given productor
brand can be grasped from the target market chosen, the way it is positioned and how the
Promotional mix is organized. The target market shows to whom the unit intends to sell
the products; positioning and Promotional mix together show how and using what
uniqueness or distinction, the unit intends to sell. The three together constitute the
Promotional strategy platform of the given product.

SELECTING THE TARGET MARKET

To say that target market selection is a part of Promotional strategy development is just
stating the obvious. It does not fully bring out the import of the inseparable likage
between the two. When the selection of the target market is over, an important part of the
Promotional strategy of the product is determined, defined and expressed. Promotional
targeting simply means choosing one’s target market. It needs to be clarified at the outset
that market targeting is not synonymous with market segmentation. Segmentation is

12
actually tee prelude to target market selection. One has to carry out several tasks besides
segmentation before choosing the target market. Through segmentation, a firm divides
the market into many segments. But all these segments need not form its target market.
Target market signifies only those segments that it wants to adopt as its market. A
selection is thus involved in it. Promotional segmentation is a process that throws up not
one but several market segments. There may be segments that are sizeable and the ones
that are not so sizeable. There may be segments assuring immediate profits and the ones
that call for heavy investments in market development. There may also be segments that
show great potential, but display tough barriers to entry. As such, the question, which
segment/segments, the firm should select as its target market, assumes crucial
importance.

STRATEGIC MARKET SEGMENTATION

Market Segmentation is “dividing up a market into distinct groups that (1) have
common needs and (2) will respond similarly to a Promotional action”, which was said
by Eric N.Berkowitz, Roger A.Kerin, and William Redulius.
The Segmentation process involves five distinct steps

• Finding ways to group consumers according to their needs.

• Finding ways to group the Promotional actions – usually the products offered –
available to the organization.
• Developing a market-product grid to relate the market segments to the firm’s
products or actions.
• Selecting the target segments toward which the firm directs its Promotional
actions.
• Taking Promotional actions to reach target segments. Markets can be segmented
using several relevant bases. For example, demographic characteristics of
consumers, such as age, sex, income/purchasing capacity, education level etc,
form one base for segmentation. Geographic characteristics constitute another;
and buying behavior of the consumers forms yet another base.

The various types of segmentations are

13
 • Geographic segmentation
• Demographic segmentation
• Psychographic segmentation
• Buyer behavior
• Benefits segmentation
• Volume of purchase segmentation

POSITIONING
Positioning is a platform for the brand. It facilitates the brand to get through to the target
consumers. It is defined as “the art and science of fitting the product or service to one or
more segments of the broad market in such a way as to set it meaningfully apart from
competition.” Positioning is the act of fixing the locus of the product offer in the minds of
the target consumers. In positioning, the firm decides how and around what parameters,
the product offer has to be placed before the target consumers. The significance of
product positioning can be easily understood from David Ogilvy’s words “The results of
your campaign depends less on how we write your advertising than on how your product
is positioned”.

DEFINITIONS OF PRODUCT POSITIONING

Sengupta, in his book Brand Positioning says, “ The aim of product positioning is to
create a perception for our brand in the prospect’s mind so that it stands apart from
competing brands… we must cover that space in the consumer’s mind as if we had won a
long-term lease. We must find a strong position in that mind and sit on it….”
Micheal Rothschild, in his book Promotional Communications – From Fundamentals to
Strategies says, “Positioning refers to the place a brand occupies in the mind in relation to
a given product class. This place was originally a product-related concept. Concerning

14
market structure. The concept now refers to the place that the brand holds in the
consumer’s mind related to perceptions and preferences”.

DEVELOPING A POSITIONING STRATEGY

To create a position for a product or service, Trout and Ries suggest that managers ask
them selves six basic questions.

1. What position, if any, do we already have in the prospect’s mind?

2. What position do we want to own?
3. What companies must be outgunned if we are to establish that position?
4. Do we have enough Promotional money to occupy and hold the position?
5. Do we have the guts to stick with one consistent positioning strategy?
6. Does our creative approach match our positioning strategy?

PRODUCT POSITIONING AND BRAND POSITIONING

It is essential to understand the relationship between products positioning and brand
positioning. Though in discussions, the two terms are synonymously and interchangeable
used, technically they are different. Product positioning denotes the specific product
category/product class in which the given product is opting to compete. And brand
positioning denotes the positioning of the brand viz-a viz the competing brands in the
chosen product category. It is evident that for any product, before entering the market it
has to sequentially carry out the two exercises, product positioning and brand positioning.
In the first step, the product category where the new entrant should enter and compete,
i.e. against what all products it has to compete, has to be decided. In this step, it is the
broad function that the product is trying to serve that matters. This choice of product
category will decide the nature of the competition the product is going to face. Once
product category positioning is decided, the position for the new entrant against
competing brands in the chosen product category has to be analyzed and fixed.

ISSUES IN PRODUCT POSITIONING

15
 • Where is the new offer going to compete? As what?
• Which product function/customer need is it trying to meet?
• What other product categories serve this need? In other words, what are the
substitute products that serve the same need?
• Where is the real gap, where is such a new offer most welcome and wanted by the
market?
• What are company’s competencies to fight here?

ISSUES IN BRAND POSITIONING

In deciding the Brand positioning, the issues are

• Which are the competing brands in the chosen product category?

• What are the unique claims/strengths of the various brands?
• What position do they enjoy in consumer’s evaluation and perception?
• What is the most favored position…? And yet vacant?
• Can the new brand claim the needed distinction and take the position and satisfy
the need?

The major dimension of Promotional strategy relates to positioning of the offer. The
firm has already selected the target market and decided its basic offer. Now, what is the
conjunction between these two entities? How do they get connected? What is the
interface?

In other words,” What is the locus the firm seeks among the customers in the chosen
target market with its offering?

How would the firm want the consumer to view and receive the offer?

16
These are the issues the firm has to grapple with in positioning. And, while formulating
the Promotional mix too, the firm will agitate over these issues. The Product
Differentiation and Positioning discusses the multifarious issues involved in the subject.

PRODUCT REPOSITIONING
Products do undergo ‘repositioning’ as they go along their life cycle. In some cases, even
products that are fairing well are repositioned. This is done mainly to enlarge the reach of
the product offer and to increase the sale of the product by appealing to a wider target
market. The product is provided with some new features or it is associated with some
new target segments.

PROMOTIONAL DECISIONS
Promotion has been defined as the coordination of all seller initiated efforts to set up
channels of information and persuasion in order to sell goods and services or promote an
idea. While implicit communication occurs through the various elements of the
Promotional mix, most of an organization’s communications with the market the basic
tools used to accomplish an organization’s communication objectives are often referred
to as the promotional mix.

ADVERTISING
Advertising is defined as any paid form of non personal communication about an
organization, product, service, or idea by an identified sponsor. The paid aspect of this
definition reflects the fact that the space or time for an advertising message generally
must be bought. An occasional exception to this is the public service announcement,
whose advertising space or time is donated by the media. Advertising is the best-known
and most widely discussed form of promotion, probably because of its pervasiveness. It is
also very important promotional tool, particularly for companies, whose products and
services are targeted at mass consumer markets. It is a very cost-effective method for
communicating with large audiences. It can be used to create brand images and symbolic
appeals for a company or brand.

17
DIRECT PROMOTIONAL
One of the fastest-growing sectors of the U.S. economy is direct Promotional, in which
organizations communicate directly with target customers to generate a response and a
transaction. It has become such an integral part of the IMC program of many
organizations and often involves separate objectives, budgets, and strategies; we view
direct Promotional as a component of the promotional mix. Direct Promotional is much
more than direct mail and mail order catalogs. It involves a variety of activities, including
database management, direct selling, telePromotional and direct response ads through
direct mail, the Internet, and various broadcast and print media. One of the major tools of
direct Promotional is direct response advertising, whereby a product is promoted through
an ad that encourages the consumer to purchase directly from the manufacturer.

INTERACTIVE/INTERNET PROMOTIONAL
Interactive media allow for the back-and-forth flow of information whereby users can
participate in and modify the form and content of the information they receive in real
time. Unlike traditional forms of Promotional communications such as advertising, which
are one-way in nature, the new media allow users to perform a variety of functions such
as receive and alter information and images, make inquiries, respond to questions and of
course make purchases. In addition to the Internet, other forms of interactive media
include CDROMs, Kiosks, and interactive television.

SALES PROMOTION
The next variable in the promotional mix is sales promotion, which is generally defined
as those Promotional activities that provide extra value or incentives to the sales force,
the distributors, or the ultimate consumer and can stimulate immediate sales, sales
promotion is generally broken into two major categories namely Consumer-oriented and
Trade-oriented activities.
Consumer-oriented sales promotion is targeted to the ultimate user of a product or service
and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various

18
point-of-purchase materials. Trade-oriented sales promotions are targeted towards
Promotional intermediaries such as wholesalers, distributors and retailers.

PUBLICITY/PUBLIC RELATIONS
Publicity refers to non personal communications regarding an organization, product,
service, or idea not directly paid for or run under identified sponsorship. It usually comes
in the form of a news story, editorial or announcement about an organization and its
products and services. Like advertising, publicity is not directly paid for by the company.
An advantage of publicity over other forms of promotion is its credibility. Another
advantage of publicity is its low cost, since the company is not paying its time or space in
a mass medium such as TV, radio or newspapers. Public relations are defined as “the
management function which evaluates public attitudes, identifies the policies and
procedures of an individual or organization with the public interests and executes a
program of action to earn public understanding and acceptance”. Public relations
generally have a broader objective than publicity, as its purpose is to establish and
maintain a positive image of the company among its various publics.

PERSONAL SELLING
It is a form of person-to-person communication in which a seller attempts to assist and
persuade prospective buyers to purchase the company’s product or service or to act on an
idea. Unlike advertising, personal selling involves direct contact between buyer and
seller, either face-to-face or through some form of telecommunications such as telephone
sales. Personal selling involves more immediate and precise feedback because the impact
of the sales presentation can generally be assessed from the customer’s reactions.

ASSEMBLING THE PROMOTIONAL MIX

Assembling the Promotional mix means assembling the four Ps of Promotional in the
best possible combination. Involved in this process are the choice of the appropriate
Promotional activities and the allocation of the appropriate Promotional effort/resources
to each one of them. The firm has to find out how it can generate the targeted sales and

19
profit. It considers different Promotional mixes with varying levels of expenditure on
each Promotional activity and tries to figure out the effectiveness of different
combinations in terms of the possible sales and profits. It then chooses the
combination/mix of products, price, place and promotion that is best according to its
judgment. Since Promotional is essentially an interaction between the Promotional mix
and environmental variable, and since the latter and non-controllable, Promotional
becomes synonymous with assembling and managing the Promotional mix. Of course,
while assembling the Promotional mix, the Promotional manager will take due note of the
environmental variables. Not only will he take due not of them, he will ensure that his
Promotional mix suits the environmental variables. And, its it factor that renders the task
much more complex. Marketing mix the sole vehicle for creating and delivering
consumer value the four elements mentioned above- product, distribution, promotion and
pricing constitute the Promotional mix of the firm. The Promotional mix is the sole
vehicle for creating and delivering customer value. It can be easily seen that all activities
and programmers’, which a marketer designs and caries out in his effort at winning
customers, relate to one or the other of the above four elements- product, place,
promotion and pricing. It can also be seen that in each of these elements, there are several
sub-elements. For example, packaging is one of the sub-elements of product and
warehousing is one of the sub-elements of distribution.

THE FOUR PS OF PROMOTIONAL

It was James Culliton, a noted Promotional expert, who coined the expression
Promotional mix and described the Promotional manager as a mixer of ingredients. To
quote him, `The Promotional man is a decider and an artist – a mixer of ingredients, who
sometimes follows a recipe developed by others and sometimes prepare his own recipe.
And, sometimes he adapts his recipe to the ingredients that are readily available and
sometimes invents some new ingredients, or, experiments with ingredients as no one else
has tried before. Subsequently, Niel H.Borden, another noted Promotional expert,
popularized the concept of Promotional mix. It was Jerome McCarthy, the well-known
American professor of Promotional, who first described the Promotional mix in terms of

20
the four Ps. He classified the Promotional mix variables under four heads, each beginning
with the alphabet “P”.
· Product
· Place
· Price
· Promotion

McCarthy has provided an easy-to-remember description of the Promotional mix

variables. Over the years, the terms – Promotional mix and Four Ps of Promotional have
come to be used synonymously. Assembling and managing the Promotional mix is the
crux of the Promotional task. And, it is through the Promotional mix that the Promotional
manager achieves the Promotional objectives.

PROMOTIONAL STRATEGIES FALL UNDER TWO

CATEGORIES
We have seen that target market selection, positioning and Promotional mix formulation
together constitute Promotional strategy. We have also seen that a firm can assemble the
Promotional mix elements in many different ways, depending on the relative weightage it
assigns to the different elements. The scope to carve out different combinations is, in fact
immense. As a result, business firms are able to employ an abundance of strategies and
strategy stances in their relentless race to stay ahead of competition. However, a close
scrutiny will reveal that all these strategies can be fitted into two broad categories
1. Price oriented Promotional strategy
2. Differentiation oriented Promotional strategy

In other words, there are only two broad routes available for forging Promotional
strategies any strategy has to be ultimately either a price-oriented strategy or a
differentiation oriented strategy.

21
PRICE ORIENTED PROMOTIONAL STRATEGY
Firms taking to the price route in Promotional strategy compete on the strength of
pricing. They use price as their competitive lever. They juggle the price of their product
to suit the prevailing competitive reality. They can afford to offer lower prices and still
make the targeted profits. They elbow out competition with the cushion they enjoy in the
matter of pricing. Price route requires cost leadership; evidently, a firm opting for the
price route will have to have a substantial cost advantage in their operations. It should be
enjoying an overall cost leadership in the given industry and its lower cost should enable
it to secure above average returns inspite of strong competition. The cost advantage can
emanate from different factors like, scale economies, early entry, a large market share
built over a period of time, locational advantage, or synergy among the different
businesses. The firms whole strategy, in fact will revolve around building such cost
advantage. To successfully practice a price-led strategy, a firm should have consciously
taken to the idea sufficiently early in its evolutionary process and prepared itself for
adopting such a strategy.

DIFFERENTIATION ORIENTED PROMOTIONAL

STRATEGY
The differentiation route of strategy revolves around aspects other than price. It works on
the principle that a firm can make its offer distinctive from all competing offers and win
through the distinctiveness. And, a firm adopting such route can price its product on the
perceived value of the attributes of the offer and not necessarily on competition-parity
basis. Maximum scope for exploiting differentiation remains with the product. While all
the 4Ps of Promotional are important elements from the point of view of strategy, the
other Ps normally go as elaborations of the offer, while the product forms its core.
Product differentiation is of vital importance in product management and has great
potential in forgoing successful Promotional strategies.

The product can be differentiated along two major planks

• Tangible product attributes and functions,

22
 • Intangible characteristics and emotional associations.

The tangible product attributes and functions are

• Differentiation based on ingredients,
• Differentiation based on functional value,
• Differentiation based on additional features,
• Packaging contributing to differentiation,
• Differentiation based on Quality, Operational Efficiency, Technology, Service.

DIGITAL PROMOTIONAL
Digital Promotional is the practice of promoting products and services using digital
distribution channels to reach consumers in a timely, relevant, personal and cost-effective
manner. Whilst digital Promotional does include many of the techniques and practices
contained within the category of Internet Promotional, it extends beyond this by
including other channels with which to reach people that do not require the use of The
Internet. As a result of this non-reliance on the Internet, the field of digital Promotional
includes a whole
host of elements such as mobile phones, sms/mms, display / banner ads and digital
outdoor.

BUZZ PROMOTIONAL (WORD OF MOUTH)

Word of mouth, is a reference to the passing of information by verbal means, especially
recommendations, but also general information, in an informal, person-to-person manner.
Word of mouth is typically considered a face-to-face spoken communication, although
phone conversations, text messages sent via SMS and web dialogue, such as online
profile pages, blog posts, message board threads, instant messages and emails are often
now included in the definition of word of mouth. There is some overlap in meaning
between word of mouth and the following rumor, gossip, innuendo, and hearsay;

23
however word of mouth is more commonly used to describe positive information being
spread rather than negative, although this is not always the case. Word-of-mouth
promotion, also known as buzz Promotional and viral advertising, is highly valued by
advertisers. It is believed that this form of communication has valuable source credibility.
Research points to individuals being more inclined to believe WOMM than more formal
forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that
the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e.
they are not receiving an incentive for their referrals). In order to promote and manage
word-of-mouth communications, marketers use publicity techniques as well as viral
Promotional methods to achieve desired behavioral response. Influencer Promotional is
increasingly used to seed WOMM by targeting key individuals that have authority and a
high number of personal connections.

EVANGELISM PROMOTIONAL
It is an advanced form of word of mouth Promotional (WOMM) in which companies
develop customers who believe so strongly in a particular product or service that they
freely try to convince others to buy and use it. The customers become voluntary
advocates, actively spreading the word on behalf of the company. Evangelism literally
comes from the three words of 'bringing good news' and the Promotional term justly
draws from the religious sense, as consumers are literally driven by their beliefs in a
product or service, which they preach in an attempt to convert others.

EFFECTIVE SALES PROMOTION

Sales promotion consists of diverse collection of incentive tools mostly short term,
designed to stimulate quicker and greater purchase of particular products of services by
the consumer. Sales promotion is the only method that makes use of incentives to
complete the push-pull promotional strategy of motivating the sale force, the dealer and
the consumer in transacting a sale.

PRICE-OFFS OFFER

24
Price-off offers refers to offering the product at lower than the normal price. This
encourages immediate sales, attracts non-users, induces product trail and counters
competition.

PREMIUM
Premium refers to the offer of an article of merchandise as an incentive in or to sell the
product.

COUPONS
In order to encourage product trail, stimulate re-purchase rate and build loyalty through
news papers.

DEALER STOCK DISPLAY CONTESTS

It is a type of point of purchase advertising which uses the show windows of the dealer
for providing exposure to the sponsor’s products. Dealer participating enthusiastically
and creatively are awarded

DEFENDING MARKET SHARE

While trying to expand total market size, the dominant firm must continuously defend it
current business against rival attacks. This step is very much essential for the market
leader firm because the challenger firms are constantly to exploit the weaknesses of the
leader firms.

EXPANDING MARKET SHARE

Market leaders can improve their profitability by increasing their market share. But for
few market leaders whose share in the total market is insignificantly high, the expansion
of market share n the total market may be proved both as expensive and risky. Therefore

25
it is better for such leader firms in spending their time in building up the market size
rather than expanding the market share. The reason for this action may be attributed to
two factors
1. The market leader firms might attract the provisions of various anti-trust
legislations. The rival competitors will try to force the Government to bring
legislations against the “MONOPOLISATION”
2. The second reason being the economic factors. The cost of making further gains
in the market share after a large share has been achieved may rise fast and reduce
the profit margin.

HARASSMENT STRATEGY
The market leader firm will resort to an harassment strategy in order to promote its
market share. As a part of this strategy, the leader form might approach the suppliers and
threaten to reduce its purchases. If the latter supply the upstart firm, sometimes it might
put pressure on distributors not to carry the competitor’s product. The salesman of leader
firm might speak negatively about competitors. It may also try to hire away the better
executives of an aggressive firm. Sometimes, the market leader firm will try to restrain
these competitions through legal devices. It might push legislation that would be more
unfavorable to the competitors than to itself. The aim of defensive strategy is to reduce
the profitability of attack, divert attacks to less threatening areas, and lessen the intensity
of attack. Any attack is likely to hurt profits. But the defender’s form and speed of
response can make an important difference in the profit consequences.
There are 6 defense strategies that a dominant firm can use
1. Position Defense
The basic idea of defense is to build an impregnable fortification around one’s territory.

2. Flank Defense
The market leader should not only guard its territory but also erect outposts to protect a
weak front or possibly serve as an invasion base for counter attacking.

3. Preemptive Defense

26
A more aggressive defense maneuver is to launch an attack on the enemy before the
enemy starts its offense against the leader. Preemptive defense assumes that an ounce of
prevention is worth more than a pound of cure.

4. Counteroffensive Defense
Most market leaders, when attacked will respond counterattack. The leader cannot remain
passive in the face of a competitor’s price cut, promotion blitz, product improvement, or
sales territory invasion. The leader has the strategic choice of meeting the attacker
frontally, maneuvering against the attacker’s flank, or launching a princer movement to
cut off the attacking formation from their base operation.

5. Mobile Defense
Mobile defense involves more than the leader aggressively defending it territory. In
mobile defense, the leader stretches it domain over new territories than serve as future
centers for defense and offense.

6. Contraction defense
Large companies recognize that they can no longer defend all the territory. Their focus
are spread too thin, and competitors are nibbling away on several funds. The best course
of action then appears to be planned contraction (also called strategic withdrawal).

INNOVATION STRATEGY
The market leader may innovate several strategies in respect of new product ideas,
customer services, means of distribution, cost cutting discovery. In addition to these, a
leader may discourage its competition particularly challenge firm.

FORTIFICATION STRATEGY

27
In order to protect its market share, the market leader may try to keep it product prices
reasonable in relation to the perceived valued of the offer and competitors offer. The
leader produces it brand in a variety of sizes and firms.

CONFRONTATION STRATEGY
If leader firm faces an extremely aggressive challenger, whose actions demand a quick
and direct response. In such a situation, the market leader will engage any promotional
war, engaging in a massive promotional expenditure that the aggressive challenger cannot
match. The leader firm may engage in the price war whenever a new challenger is
considering to enter in its market. This strategy will frighten the potential competitions
and make then to withdraw from entering the market.

Analysed Survey Report

1. Which of the following Ford car you own?

a) Fiesta
b) Ikon
c) Endeavour
d) Fusion

Data analysis

Name of the car % of customers

Fiesta 49
Ikon 27
Endeavour 15
Fusion 9

Total 100%

28
Interpretation: This question is meant for taking the information regarding the most
preferred car in the Ford cars. From the above graph it is found that most preferred
vehicle of Ford cars is Fiesta.

2. What do you like most about your Ford car?

a) Style/design
b) Comfort
c) Ford brand
d) Service

Data analysis

Customer’s preference No of customers

Style/design 9
Comfort 23
Ford brand 13
Service 5

Interpretation: This question is meant to know the customers preferences and likes
towards the cars. From the data we can position our product to the comfort seeking group
of people.

3. What do you feel great about your car when compared to other cars
in the market?

29
a) Fuel efficiency
b) Durability
c) Low maintenance
d) Sound quality
e) Brand name

Data analysis

Customer’s perspective No of customers

Fuel efficiency 2
Durability 7
Low maintenance 9
Sound quality 12
Brand name 20

Interpretation: From this question we can position the cars according to the
customer’s perspectives. Many of the Ford customers are buying the cars by seeing its
Brand Name only. The no. of customers satisfied with the fuel efficiency are very low.

4. How did you come to know about this car before

purchasing?

a) From friends, relatives (buzz)

b) Advertisements
c) Car experts
d) Sale’s persons visit
e) Auto magazines

Data analysis

Source of awareness No. of customers

Friends, relatives 9
Advertisements 25
Car experts 3
Sale’s persons visit 8
Auto magazines 5

30
Interpretation: Most of the Ford customers came to know about their vehicle through
advertisements only. The major media that attracted the customers is television.

5. Can you share your experience with after sale service support?

a) Very much satisfied

b) Satisfied
c) Ok
d) Not satisfied

Data analysis

Post service experience No. of customers

Very much satisfied 6
Satisfied 15
Ok 25
Not satisfied 4

Interpretation: This question is prepared to know the service levels of the authorized
dealer. Most of the customers are just telling ok about the service. Only a very few
customers are very much satisfied with the service. Even some of the customers are not
satisfied with the service given by the authorized service men.

6. Where do you get your car serviced regularly?

a) At authorized service centre

b) At a local workshop near my home

Data analysis

Place of service No. of customers

At authorized service centre 41
At a local workshop near home 9

Interpretation: Most of the Fortune Ford customers are interested to service their
vehicles only at the authorized dealers. From this we come to know what the importance
of authorized service centers for car is.

31
7. Which bank do you prefer in getting financial help while purchasing
a car?

a) ICICI
b) HDFC
c) SBI
d) Others

Data analysis

Name of the bank No. of customers

ICICI 21
HDFC 6
SBI 20
Others 3
Interpretation: Most of the customers prefer ICICI and SBI banks for taking
financial help while purchasing a car. Customers are asking for 0%
interest on financial help provided by the banks.

8. Which type of finance do you prefer?

a) In house finance
b) Out house finance
c) No difference between the two

Data analysis

Type of finance No. of customers

In house finance 30
Out house finance 12
No difference between the two 8

Interpretation: To know the customers opinion about the finance and their interests
in preferring the finance from various sources, this question is prepared. Most of the
customers prefer only in house finance compared to outhouse finance.

32
9. To which media do you get expose regularly?

a) Televisions
b) Magazines
c) News papers
d) F.M/Radio

Data analysis

Media No. of customers

Televisions 26
Magazines 7
News papers 16
F.M/Radio 1

Interpretation: From this analysis we come to know that most of the customers are
interested in watching televisions, which is a good media for communicating with people
and delivering our intentions about product.

10. Which kind of T.V. channels do you watch regularly?

a) National news channels

b) Regional news channels
c) Sports channels
d) Entertainment channels

Data analysis

T.V. Channels No. of customers

National news channels 10
Regional news channel 16
Sports channels 4
Entertainment channels 20

33
Interpretation: This question is meant to know the interests and preferences of
customers towards T.V. channels. More than quarter of the sample size showed interest
only on the entertainment channels and next preference goes to the regional news
channels.

11. What’s your opinion on the price list of Ford cars?

a) Affordable by common man
b) Affordable only by rich man
c) Cant say

Data analysis
Customer opinion on pricelist of ford car No. of customers
Affordable by common man 6
Affordable only by rich man 42
Can’t say 2

Interpretation: More than 80% of customers think that Ford cars are affordable only
by rich men. These cars are too expensive for an economic/common man of the society.

12. What kinds of offers do you like or expect from the dealer?
a) Free insurance
b) Special discount on sale of cars
c) Extending the service period
d) Finance availability with 0% interest

Data analysis
Offers No. of customers

34
Free insurance 9
Special discount on sale of cars 3
Extending the service period 27
Finance availability with 0% interest 11

Interpretation: By the result of this question we come to know about the various
promotional techniques/offers which attract the customers. From the above analysis many
customers are expecting the extension in the service period from the various offers given
to them.

13. What more do you expect from your dealer?

a) Information about new cars
b) Information about service and mileage
c) Assistance regarding loans and insurance
d) Understanding customer needs

Data analysis
Expectations of customer No. of customers
Information about new cars 2
Information about service and mileage 34
Assistance regarding loans and insurance 4
Understanding customer needs 10

Interpretation: Most of the customers are expecting the information about service
and mileage regarding the cars from the dealer. From the above analysis we come to
Know about the customer’s expectations and their post purchase service demands from
the dealer.

14. How do you feel when an unknown sales person approaches you by
knowing your full details to demonstrate about any product?

35
a) I will not respond
b) Lost my privacy
c) Interested in knowing (if I feel a need of it)

Data analysis
Customer opinion No. of customers
I will not respond 11
Lost my privacy 5
Interested in knowing (if I feel a need of it) 34

Interpretation: This question is prepared indirectly to know about the customer’s

opinion about the Data Bank maintenance by the Fortune Ford. In reply majority of the
customers gave a positive reply by showing interest in knowing about the cars when a
sales person gives a detailed description about the cars.

15. What’s your opinion on a Brand Ambassador for the cars?

a) Very necessary
b) Not needed
c) Waste of money for manufacturer

Data analysis
Customer opinion on ambassador No. of customers
Very necessary 43
Not needed 7
Waste of money for manufacturer 0

36
Interpretation: This question is meant to know about the importance of Brand
Ambassador for a car in the customer’s point of view. Most of the Ford customers think
that a Brand Ambassador is very necessary for promoting a car.

16. What’s your opinion about the previous Ambassador Abhishek Bachan
for the car Ford Fiesta?
a) Full filled the purpose
b) Unable to attract customers
c) He was not apt for it.

Data analysis
Customer opinion No. of customers
Full filled the purpose 38
Unable to attract customers 10
He was not apt for it 2

Interpretation: Most of the Ford customers think that the previous Brand
Ambassador Abhishek Bachan for the car Ford Fiesta full filled the purpose and he was
able to increase the sales of the cars Fiesta.

17. Whom do you suggest as a right person for promoting a car?

a) Sports person
b) Film stars
c) Car expert
d) Any celebrity

37
Data analysis
Customer suggestion No. of customers
Sports person 18
Film star 21
Car expert 7
Any celebrity 4

Interpretation: Most of the customers of Ford suggest a film staras the best
ambassador. Because many of them get attracted only to their favorite film stars other
than other brand ambassadors.

18. What other brand(s) did you seriously consider before making this car
Purchase?
a) Hyundai
b) Chevrolet
c) Maruthi
d) TATA
e) Toyota

Data analysis
Brand name No. of customers
Hyundai 19
Skoda 12
Maruthi 5
Honda 9
Toyota 5

38
Interpretation: Most of the Ford customers are opting for Hyundai when they are
asked to consider a brand other than Ford. Skoda occupies the second place in their
preference.

FINDINGS

General findings are

• All the respondents own a petrol powered vehicle.
• Maintenance cost and price is perceived to be vary widely (50% approx) between
petrol and diesel variants, however performance is not perceived to change.
• Reliability is perceived to be similar among petrol and diesel variants.
• Service quality and availability of service centers are perceived as the most
desirable features with the purchase of a car. Extended/free warranty features rank
low on desirability scales.
• DIY kits and customized maintenance plans rank second on desirability features.

Thus a petrol car is perceived to offer a low/high maintenance cost and among brands
Ford ranks least on the features of spare parts availability, maintenance cost after sales
service and mileage. However the highest rating among these is for spare parts
availability.

39
Finally Fiesta model ranks high on reliability score which provides a good opportunity.
At all dealers we went in as possible buyers. The following were taken into consideration

• Communication at the POS( in terms of use of posters, danglers etc)

• Dealer pitch evaluated on basis of information of present car and the competitor
cars, manner of presentation.

SUGGESTIONS
• Please try to increase the number of Service centers.
• Keep Service Stations at main locations of the city, like Banjara Hills, Jubilee
Hills, Begumpet etc., where many customers feel it easy to go to service centers.
• There is no proper response from the service men at service station. Please recruit
efficient service men in the service centers.
• The service men in the service centers are unable to understand the problems told
by us, and they are not resolving the cars problems.
• Provide information on service and mileage regularly.
• Please provide information about new cars along with their price lists at least
once in 6 months.
• Advertisements through televisions can influence many categories of people. So
try to concentrate on this segment. We don’t see or find much of the Ford car
advertisements in T.V except Fiesta.
• Try to provide financial facility at 0% interest.

40
 • Customer should be educated about the maintenance of the vehicle. i.e.
maintenance tips should be provided.
• Mileage of the cars is not up to the expectations.
• Mileage of Fiesta is very worst its giving only 9 to 11 kms per liter. Please try to
rectify it.
• The quality of the sun proof coating used is of very low quality, vehicle colour is
getting shaded very quickly.
• Please send the specially appointed feed back taking staff on Sunday evenings
only.
• The sales people present in the showroom respond to us properly when we come
to purchase a new car, but they do not respond when we come to tell our problems
regarding the cars.

Although Ford Motor Company is one of the largest companies in the world, we can
still attribute accounting trends to some of the key events in Ford's history.
In 1990, Ford acquired Jaguar Cars, Ltd. Jaguar was a company suffering
terrible loses due to poor quality, and lack of sales. Jaguar has been in the
black since Ford purchased them until 1994. It is important to note that Ford's
net income trend from 1991 to 1995 illustrates this. In 1992, the Ford Taurus
became the number one selling car in the United States, which helped increase
1992 net earnings, and in 1994 the Ford Falcon was the top selling car in
Australia, helping maintain the trend of increasing net income. It is important
to note that Ford's net income has increased from 1991 to 1994, and then
decreased in 1995. There are several possible causes for this change in the
trend. In 1995, Ford acquired 20% equity in a major Chinese truck manufacturer,
and launched several new vehicles; including the Ford Contour, Ford Mondeo,
Mercury Mystique, Ford F-150, and Ford Taurus. These additional investments and
expenses help explain the decrease in net income in 1995. Overall, the company

41
has done well, and with reorganization in 1996 to decrease spending and increase
efficiency, Ford is striving for future periods of growth.

42