FORD MOTORS

HISTORY OF FORD

Henry Ford (ca. 1919)

Type Founded

: Public company : Jun 16, 1903

Headquarter : Dearborn, Michigan, U.S. Founder : Henry Ford

Area Served : Worldwide Key People : William C. Ford Jr. (Executive Chairman) Alan R. Mullay (President& CEO) Industry : Automotive

Ford Motor Company is an American multinational corporation and the world's fourth largest automaker based on worldwide vehicle sales. 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 brands, including Lincoln and Mercury of the U.S. and Volvo of Sweden.

WHAT IS MARKETING STRATEGY?

Marketing strategy: A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organizations overall corporate strategy and serves as a guide for specific marketing programs and policies. Marketing strategy is based on a situation analysis- a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. From this situation analysis, a firm develops an understanding of the market and the various opportunities it offers, the competition and the market segments or target markets the company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objectives of the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them. For example, if the marketing objectives of a business unit stipulate that next year, it should achieve a sales revenue of Rs. 1,000 crores and a net profit of 15 percent of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale and profit will come, which product lines/products/brands will accomplish this task and how. Marketing strategy forms an integral part of marketing planning. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

MARKETING STRATEGIES OF FORD: Product differentiation based on operational efficiency: FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its offer on the plank of service. It has gone in for a new norm in customer service: fix it right-the first time-on time. Ford is also supplying videotapes showing how repairs have to be done. Adopting Offer to Suit Target Segment: Ford modifies its models for India: Ford modified its models for the Indian target segments as shown below: Higher ground clearance to make the car more compatible to the rougher road surface in India. Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian roads. Changes in cooling requirement, with greater airflow to the rear. Higher resistance to dust. Compatibility of engine with the quality of fuel available in India. Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe.)

Strategic segmentation of cars:

The Ford in India has launched the car only for few segments of people. The segmentation of car buyers based on price preferences are:Family car segment: These cars form a reasonably sizeable segment of the market (around 15 percent). Preferred price range is from 5 lakh to 6 lakh. FORD IKON AND FORD FUSION come under this type of segment. Premium car segment: This segment represents buyers who need a real world-class car and are willing to pay the due price. Preferred price range starts from 8 lakh. FORD FIESTA comes under this segment of cars. SUV segment: The buyers of this segment like to have big vehicles.

And these cars are also useful for sport riding and even on hill areas. There body is designed similar to off-road vehicles, which can withstand to Indian roads. FORD ENDEAVOUR occupies this segment. Strategic Promotions by FORD: Ford follows the promotions at two levels, they a 1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level. In the first step the products of vehicles manufactured by the Ford Automotives are directly promoted by the manufacturer by himself. He follows many promotional strategies like:1. Advertising through television and newspaper. 2. Internet or interactive marketing. 3. Direct marketing.

Sales promotion:The sales promotion is done in the GSR Ford at three levels:-

1. Showroom sales 2. Corporate sales 3. Field sales Conducting Customer Delight Program:This unique program conducted by the GSR ford. This program conducts to retain the old customers of the ford. The old customers of the GSR ford are meet personally and they requested to give there feedback by filling the in the questionnaire which is prepared for them.

STRATEGIC SALES STANDARDS:Fortune Ford maintains strategic sales standards in the following manner. ! The Sales faculty is clean, tidy and inviting, making customers comfortable while purchasing products and availing services. ! Customers are courteously acknowledged within two minutes of their arrival and are advised that a Sales Consultant will be available upon request! The Sales Consultants appearance and dress will be of the highest standards! An advisory relationship is established between the customer and the Sales Consultant, who listens to the customer, identifies their needs and ensures that they are met. ! A pleasant, non-pressured purchase experience will be provided during which a thorough

demonstration of the vehicle features and benefits will be made. ! A test drive will be offered to all customers. ! Using a check list, the Sales Consultant delivers the vehicle in perfect condition when promised. ! Customers will be contacted within one week after delivery to ensure total satisfaction.

MAINTAINING SERVICE STANDARDS:! An efficient service facility allows a customer to avail all the service provided by Fortune Ford, in a clean and welcoming environment. ! An appointment is available within 5 working days of the customers request. ! Customers are courteously acknowledged within two minutes of their arrival and the write-up will begin with five minutes. ! Service needs are courteously identified, accurately recorded on the repair order and verified with the customer. ! The vehicle is serviced right on the first visit. ! The vehicle is ready on the agreed upon time. ! A through explanation of work done, warranty coverage and charges is given to the customer. ! All service repair work will be followed up within five working days. ! Each vehicle will be washed before being returned to the customer.

EXTENDED WARRANTY:Fortune Ford gives an extended warranty to its customers where there will be extended time duration in the warranty.

Extended Warranty: Is an extension of Factory Warranty Offers almost similar coverage as Factory Warranty Comes with a time-bound (e.g. 1yr/2yrs but unlimited mileage cap) Covers all Mechanical and Electrical Failures Covers labour.

Benefits to customer: Protection from manufacturing and material defects Car can be repaired at any Ford out let across the country Unlimited number of claims No excess to pay One up-front payment only Inflation protection from rising costs of parts and labour All repairs carried out by qualified Ford technicians

 Warranty can be transferred when vehicle is sold better resale value Total peace of mind

TOTAL MAINTENANCE PLAN:What is Total Maintenance Plan? Cost of ownership is the key factor while considering vehicle purchases As part of regular maintenance, customers spend on a) Maintenance parts that are to be replace at specific intervals b) Replacement of worn out parts c) Labour charge for the above A comprehensive maintenance plan by Ford will serve as a good tool to improve the service experience and minimize concerns on cost of ownership of the vehicle Total Maintenance Plan (TMP) is a complete service solution provided to the customer. This enables the customer to have total peace of mind in the form of a Maintenance Holiday

Benefits to the customer: Total peace of mind Fixed price for next 2 to 3 years Increased residual value of the car Only Ford genuine parts are used Can avail this service across the country at all Ford authorized outlets Transferable Incase of total loss, can be cancelled Ford factory backed programme Diagnosis/repairs as per recommended standards and practices Vehicles serviced by Ford trained and certified technicians

TATA MOTORS

History of Tata Motors

Type Founded

: Public company : 1945

Headquarter : Mumbai, Maharashtra, INDIA Founder : JRD Tata

Area Served : Worldwide Key People : Ratan Tata, Chairman Ravi Kant, Vice Chairman Industry : Automotive

Tata Motors is an Automobile Company in India and is a very high earning company. Its
revenues reportedly in the year 2008-2009, are 14 billion. But its achievements do not stop there. It is among the world's top automobile companies, reportedly the 4th largest truck manufacturer.

Marketing strategies of Tata motors

1. PRODUCT (Brand, Packaging, Innovations, Quality): a. Brand: Advertising is often used to make consumers aware of a products special low price or its benefits. But an even more important function of advertising is to create an image that consumers associate with a product, known as the brand image. The brand image goes far beyond the functional characteristics of the product. The products of Tata Motors have many special characteristics to them, but when consumers think of it, they not only think of its features, but they may also associate it with quality, performance, and class. All of these meanings have been added to the product by advertising. Consumers frequently buy the product not only for its functional characteristics but also because they want to be identified with the image associated with the brand. Tata Motors have been successful in creating and maintaining a professional brand image. b. Packaging: A vehicle cannot have a material packaging. Here, packaging refers to and effective assembly of features. Tata Motors provide many innovative features to suit the target customers and the product. E.g. Tata Safari Dicor has Reverse Guide System which includes a weather-proof camera to help the driver while reversing the vehicle. c. Innovations: The various motives behind buying an automobile are Need, Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to bring new innovations in their product. Tatas have an industrial experience of over 100 years and they are well known with the Psychology of Indian customers, who desire more at less price. This experience has helped them to develop products which fulfill the expectations of Indian consumers. d. Quality Control: Tata Motors have their Quality Control standards and the QC Dept. ensures that the customer does not face any inconveniences of a defective product. 2. PRICE (Pricing Strategy, Alterations, Discounts) a. Pricing Strategy: The prices are fixed keeping in mind a number of factors. As told by Mr. Desai, prices have to be at par with the prices of the competitors. Tata Motors give a relative price advantage as compares to its competitors. The various determinants of price are i. Market Condition ii. Costs incurred iii. Profit percentage desired by the Co.

iv. Dealer Profit

b. Alterations: The Company does not allow any alterations to any of the features of the product. If there is an alteration which affects the performance of the engine, then the warranty becomes void. However, there may be alterations in the accessories, if desired by the customer. c. Discounts: Discounts are decided by the Co. every month. Any further discounts made from the profits of the dealer. However, the Co. may compensate the dealer for the discounts allowed to a certain extent. 3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations) a. Personal Selling: There is minimal personal selling involved. The Sales Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers. b. Advertising: Advertising is a form of commercial mass communication designed to promote the sale of a product or service. Tata Motors is responsible for the advertising of its products. The dealer does play any role in the advertising. The various media used for advertising are T.V., Newspapers, Magazines, Hoardings, and Internet etc. The dealer conducts point-of-purchase displays to advertise the products. The advertisements done by the Company helps the dealer to capitalize on the market. c. Sales Promotion: The purpose of sales promotion is to supplement and coordinate advertising and personal selling; Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion during festivals such as festive discounts during Diwali. d. Public Relations : Public Relations is a management function that creates, develops, and carries out policies and programs to influence public opinion or public reaction about an idea, a product, or an organization. The Co. takes serious measures to maintain good public relations. The Co. follows business ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires. 4. PLACE (Channels of Distribution, Physical Distribution) a. Channels of Distribution: In case of vehicles, dealership method of distribution and sales is generally adopted. Tata Motors have also adopted dealership method of distribution of its products. The dealers purchase products from the Co. at a negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within these prices. As the Co. deals in commercial and passenger vehicles, there may be a single or distinct dealerships to market its commercial and passenger vehicles in a town. However, if there is a single dealership appointed, then the commercial and passenger vehicles are managed under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively.

Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities of vehicles are ordered by a Govt. Dept. or a private company. The sales, distribution and billing of these are looked after by the Co. itself. b. Physical Distribution: The commercial vehicles are manufactured at Jamshedpur, Lucknow and Pantnagar whereas the passenger vehicles are manufactured at Pune plant. From the plant, the finished product is transported to the dealerships. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The dealerships are strategically located in the target and potential markets to ensure efficient and timely availability of its products in the market.

HYUNDAI MOTORS

History of Hyundai Motors

Type Founded

: Public company : 1967

Headquarter : Seoul, South Korea Founder : Chung Ju-Yung

Area Served : Worldwide Key People Industry : Chung Mong-Koo, Chairman& CEO : Automotive