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In the race to be a superpower, India is making frequent and astounding advancements in all fields. From power generation to constructing modern roads, every sector has a huge impetus. Rising above all in a very distinct and appreciable way is the Automobile Sector of India. The automobile sector forms one of the fastest growing sectors in the Indian economy and so is the popularity of automobiles in India. A number of cars and other automobiles are imported and exported every year. Indian Automobile market witnesses a large scale manufacturing of cars, bikes, vans, buses and tractors. The Automobile industry in India is the sixth largest in the world with an annual production of over 3.9 million units in 2011. In 2010, India emerged as Asia's third largest exporter of automobiles, behind Japan and South Korea. Every year new and advanced model of cars, bikes and other vehicles are launched by various leading manufacturers suiting the consumer needs. Occupied by various major automobile manufacturers like Tata Motors, Ford Motors, Volkswagen, Maruti Suzuki, Hero Honda, Bajaj Auto, Yamaha Motor etc, Indian Automobile industry has become a battlefield of technology, performance and styling. Automobile industry in India is one of the fastest growing automobile industries and has made its position in the world market. The Indian automobile Industry is currently growing at a remarkable pace of around 18 % per annum. The technological changes and progress successfully led to the progress of automobile sector in India. The main reason behind this tremendous progress is the economic liberalization by Indian government. Ever since the foreign direct investment has been allowed, the automobile market has got its foot on the accelerator. The growth of Indian middle class with increasing purchasing power and availability of trained manpower at reasonable cost is another reason for the eminent growth and has pushed it to new capacities. International automobiles giants have helped Indian automobile sector to enlarge by setting up local basis. The increasing competition in auto companies has opened up many choices for Indian consumers at 2

competitive costs. The Indian Automobile industry is growing in all respects and it is also serving as an important source of employment. Innovation and new product launches are a major factor driving growth in sales of cars. A wide distribution & service station network is a key to growth in India. The automobile sector is expected to witness strong growth and improve its share in global markets too. The analysts believe that by 2030, the Indian automobile market will be one among the top five global markets.

Key players in automobile industry Passenger Cars and Commercial vehicles: Maruti Suzuki Hyundai Tata Mahindra GM Chevrolet Honda Toyota Ford Fiat Skoda


A market is never saturated with a good product, but it is very quickly saturated with a bad one. - Henry Ford

INDIAN AUTOMOBILE INDUSTRY The automotive industry is one of the largest industries worldwide and in India as well. The automotive sector is a vital sector for any developed economy. It drives upstream industries like steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like advertising and marketing, transport and insurance.

The automotive industry can be divided into five sectors: 1) Passenger Cars 2) Multi- Utility Vehicles (MUV) 3) Two- and Three- Vehicles 4) Commercial Vehicles - Light Commercial Vehicles (LCV) / Medium and Heavy Commercial Vehicles (MHCV) 5) Tractors

Despite a head start, the passenger car industry in India has not quite matched up to the performance of its counterparts in other parts of the world. The primary reason has been the all-pervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s. The various layers of legislative Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury.



Initially, in the post-liberalization period, the automotive sector, especially the passenger car segment, saw a boom, derived primarily from economic vibrancy, changes in Government policies, increase in purchasing power, improvement in life styles, and availability of car finance. The passenger car industry was finally deregulated in 1993. However, the automobile industry, which contributed substantially to the industrial growth in FY1996 failed to maintain the same momentum between FY1997 and FY1999. The overall slowdown in the economy and the resultant slowdown in industrial production, political uncertainty and inadequate infrastructure development were some of the factors responsible for the slowdown experienced. In FY2000, the sector experienced a turnaround and witnessed the launch of many new models.

Two things that stunted growth of this industry in the past have been low demand and lack of vision on the part of the original equipment manufacturers (QEMs). However, the demand picked up after the liberalization of the regulatory environment, and global QEMs- who enjoys scale economies both in terms of manufacturing and research and development (R&D) - entered the Indian market. This has resulted in a big shift in the way business is conducted by suppliers, assemblers and marketers.


During April August 2006, the passenger car sales in India at 332159 units, marked a growth of 5.3%over the previous year. The growth in the domestic sales of passenger cars was led by strong growth in volumes reported by compact and mid size segments. While the share of mini and executive segments declined in the period under study, the share of other segments increased. For instance, the share of compact segment in the domestic car sales increased from 59.7% in April August 2005 to 64.9% in April August 2006, mid size segment from 20.5% to 22%, and the share of Premium segment was stagnant at 0.7% in the same period.

New variants launches, easy availability of finance at relatively lower interest rate and price discounts offered by the players have played an important role in driving the sales growth in the domestic passenger car industry.


Traditionally, disposable income was perceived as the key factor driving passenger car demand. But over time, other factors that are known to have an impact on demand have emerged. These include the need for greater mobility, non- availability of public transport services, availability of cheap finance, development of the used-car market, introduction of new technologically superior models, increasing levels of urbanization and changing consumer profiles.


Source: Society of Indian Automobile Manufacturers (SIAM)

Passenger Vehicles Segment This segment is constituted of two types of vehicles which are the cars and the SUVs. Cars hold a major section with 78% of the market. SUVs are come under the premium vehicles in the industry, thus they hold a lower share in the market. The domestic PV market has grown by 15% over the last decade. The market leaders in this segment are Maruti Suzuki who has been in the same state since decades. Being one of the first entrants in the sector the company has enjoyed phases of monopolistic market in India. Although not much has changed in the market scenario, Maruti still holds the maximum share of 46% in the PV segment. They are followed by Tata motors at 15% share and Hyundai Motors at 14% share. Tata Motors has recently launched the new Rs 1 lakh car and has opened a new avenue in the market for the small cars manufacturing. 7

Hyundai Motors India on the other hand has established India as its manufacturing hub. Other share holders such as Toyota aim at capturing 10% of the market by the year 2010; Honda and Ford are the leading players in the Indian premium cars segment. Most of the leading manufacturers in the world have their presence in India as Joint ventures or subsidiaries. India is slowly emerging as a global hub for small car manufacturing industries. This is evident from the export statistics of the market. Hyundai Motors India are the leaders of the export market with 66% of the market share. Major section of the production of Hyundai Motors is exported to South America, Africa and Europe. The company uses India as a manufacturing and export hub of compact cars around the world. Maruti Suzuki follows Hyundai with 24% of market share. Major section of the exports of Maruti goes to Latin America and the Middle East.

Domestic Market Share for 2009-10 Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers 15.86 4.32 3.58 76.23

C.FUTURE OF THE INDUSTRY The Indian automotive market offers tremendous opportunities due to a strong GDP growth, increased urbanization, an expanding middle class, and an upward migration of disposable incomes and availability of easy financing options. The Indian automotive industry is dominated by two-wheelers, while cars account for about 10.7 percent of the total industry. The potential for growth is enormous.

The Indian Governments Automotive Mission Plan 2006-2016 states that the Indian passenger car market is expected to reach 3 million by 2015, making India as one of the top 10 car markets in the world. India is also expected to remain as the second-largest two-wheeler manufacturer, the largest tractor and three-wheeler manufacturer and the fourth-largest truck manufacturer in the world by 20151. The main considerations driving customer preference are mainly reliability and economy.






The Ford Motor Company is an American multinational corporation based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and Mercury brands, Ford also owns Volvo Cars in Sweden, and a small stake in Mazda in Japan and Aston Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. Ford has agreed to sell Volvo to Geely Automobile in a deal expected to be completed in the third quarter of 2010.On June 2, 2010, Ford announced that it would discontinue the Mercury brand in the fourth quarter of 2010. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914. Ford is currently the second largest automaker in the U.S. and the fourth-largest in the world based on number of vehicles sold annually, directly behind Volkswagen. In 2007, Ford fell from second to third in US annual vehicle sales for the first time in 56 years, behind only General Motors and Toyota. However, Ford occasionally outsells Toyota in shorter periods (most recently, during the summer months of 2009). By the end of 2009, Ford was the third largest automaker in Europe (behind Volkswagen and PSA Peugeot Citron). Ford is the seventh-ranked overall American-based company in the 2008 Fortune 500 list, based on global revenues in 2008 of $146.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide. During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million in 2009. Despite the adverse conditions, Ford ended 2009 with a net profit of $2.7 billion. Starting in 2007, Ford received more initial quality survey awards from J. D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at the top of their categories and fourteen vehicles ranked in the top three.



Type Industry Founded Founder(s) Headquarters Area served

Public (NYSE: F) Automotive June 16, 1903 Henry Ford Dearborn, Michigan, United States Worldwide William C. Ford, Jr. (Executive Chairman) Alan R. Mulally (President & CEO) Mainstream/Performance vehicles Automotive parts Automotive finance, Vehicle leasing, Vehicle service US$ 118.308 billion (2009)

Key people



Revenue Operating income

US$ 2.957 billion (2009)


Net income Total assets Total equity

US$ 2.717 billion (2009) US$ 197.890 billion (2009) US$ -6.515 billion (2009) 87,700 (US, 2008) 213,000 (World, 2008) Ford Credit Ford division Lincoln Mercury Automotive Components Holdings Volvo (cars only) Troller






The Ford Motor Company was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John and Horace Dodge (who would later found their own car company). Henry's first attempt under his name was the Henry Ford Company on November 3, 1901, which became the Cadillac Motor Company on August 22, 1902. During its early years, 14

the company produced just a few cars 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 world's largest and most profitable companies, as well as being one to survive the Great Depression. As one of the largest family-controlled companies in the world, the Ford Motor Company has been in continuous family control for over 100 years. 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 of The Americas), Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice President, President of International Operations) and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Credit) Paul Mascarenas (Vice President of Engineering, The Americas Product Development) Recent company developments During the mid to late 1990s, Ford sold large numbers of vehicles, in a booming American economy with soaring stock market and low fuel prices. With the dawn of the new century, legacy healthcare costs, higher fuel prices, and a faltering economy led to falling market shares, declining sales, and sliding profit margins. Most of the corporate profits came from financing consumer automobile loans through Ford Motor Credit Company. By 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM to junk status, citing high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding market share, and dependence on declining SUV sales for revenues. Profit margins decreased on large vehicles due to increased "incentives" (in the form of rebates or low interest financing) to offset declining demand.


In the face of demand for higher fuel efficiency and falling sales of minivans, Ford moved to introduce a range of new vehicles, including "Crossover SUVs" built on unibody car platforms, rather than more body-on-frame chassis. In developing the hybrid electric powertrain technologies for the Ford Escape Hybrid SUV, Ford licensed similar Toyota hybrid technologies to avoid patent infringements. Ford announced that it will team up with electricity supply company Southern California Edison (SCE) to examine the future of plug-in hybrids in terms of how home and vehicle energy systems will work with the electrical grid. Under the multimillion-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer settings," according to Ford. In December 2006, the company raised its borrowing capacity to about $25 billion, placing substantially all corporate assets as collateral to secure the line of credit Chairman Bill Ford has stated that "bankruptcy is not an option". In order to control its skyrocketing labor costs (the most expensive in the world), the company and the United Auto Workers, representing approximately 46,000 hourly workers in North America, agreed to a historic contract settlement in November 2007 giving the company a substantial break in terms of its ongoing retiree health care costs and other economic issues. The agreement includes the establishment of a companyfunded, independently run Voluntary Employee Beneficiary Association (more commonly known as a VEBA) trust to shift the burden of retiree health care from the company's books, thereby improving its balance sheet. This arrangement took effect on January 1, 2010. As a sign of its currently strong cash position, Ford contributed its entire current liability (estimated at approximately USD$5.5 Billion as of December 31, 2009) to the VEBA in cash, and also prepaid USD$500 Million of its future liabilities to the fund. The agreement also gives hourly workers the job security they were seeking by having the company commit to substantial investments in most of its factories. The automaker reported the largest annual loss in company history in 2006 of $12.7 billion and estimated that it would not return to profitability until 2009. However, Ford surprised Wall Street in the second quarter of 2007 by posting a $750 million profit. Despite the gains, the company finished the year with a $2.7 billion loss, largely attributed to finance restructuring at Volvo. 16

On June 2, 2008, Ford sold its Jaguar and Land Rover operations to Tata Motors for $2.3 billion. In January 2008, Ford launched a website listing the ten Built Ford Tough rules as well as a series of webisodes that parodied the show COPS (TV Series). During November 2008, Ford, together with Chrysler and General Motors, sought financial aid at Congressional hearings in Washington D.C. in the face of worsening conditions caused by the automotive industry crisis. The three companies presented action plans for the sustainability of the industry. The Detroit based automakers were unsuccessful at obtaining assistance through Congressional legislation. GM and Chrysler later received assistance through the Executive Branch from the T.A.R.P. funding provisions. On December 19, the cost of credit default swaps to insure the debt of Ford was 68 percent the sum insured for five years in addition to annual payments of 5 percent. That means it costs $6.8 million paid upfront to insure $10 million in debt, in addition to payments of $500,000 per year.In January 2009, Ford announced a $14.6 billion loss in the preceding year, making 2008 its worst year in history. Still, the company claimed to have sufficient liquidity to fund its business plans and thus, did not ask for government aid. Through April 2009, Ford's strategy of debt for equity exchanges, erased $9.9 B in liabilities (28% of its total), in order to leverage its cash position. These actions yielded Ford a $2.7 billion profit in fiscal year 2009, the company's first full-year profit in four years. Global markets

Initially, Ford Motor Company models sold outside the U.S. were essentially versions of those sold on the home market, but later on, models specific to Europe were developed and sold. Attempts to globalize the model line have often failed, with Europe's Ford Mondeo selling poorly in the United States as the Ford Contour, while U.S. models such as the Ford Taurus have fared poorly in Japan and Australia, even when produced in right hand drive. The small European model Ka, a hit in its home market, did not catch on in Japan, as it was not available as an automatic. The Mondeo was dropped by Ford Australia, because the segment of the market in which it competes had been in steady decline, with buyers preferring the larger local model, the Falcon. One recent exception is the European model of the Focus, which has sold strongly on both sides of the Atlantic. 17

From 2003, Toyota outsold Ford Motor worldwide. From the second quarter 2006, Toyota has passed Ford as the #2 automaker, by sales, in the United States. Ford is in partnership talks to license hybrid technology from the Toyota Motor Corporation in a deal that could help establish Toyota's system as a standard for the industry. In Australia and New Zealand, the popular Ford Falcon has long been considered the average family car and is considerably larger than the Mondeo, Ford's largest car sold in Europe. Between 1960 and 1972, the Falcon was based on a U.S. model of the same name, but since then has been entirely designed and manufactured in Australia, occasionlly being manufactured in New Zealand. Like its General Motors rival, the Holden Commodore, the Falcon uses a rear wheel drive layout. High performance variants of the Falcon running locally built engines produce up to 362 hp (270 kW). A ute (short for "utility," known in the US as pickup truck) version is also available with the same range of drivetrains. In addition, Ford Australia sells highly tuned limited-production Falcon sedans and utes through its performance car division, Ford Performance Vehicles. In Australia, the Commodore and Falcon have traditionally outsold all other cars and comprise over 20% of the new car market. In New Zealand, Ford was second in market share in the first eight months of 2006 with 14.4 per cent.More recently Ford has axed its Falcon-based LWB variant of its lineup - the Fairlane and LTD ranges, and announced that their Geelong engine manufacturing plant may be shut down from 2013. They have also announced local manufacturing of the Focus small car starting from 2011.


In 2010 Ford reported a first quarter net income of $2.1 billion, or 50 cents per share, and pre-tax operating profit of $2 billion, or 46 cents per share. Ford posted a pre-tax profit for full-year 2009 (excluding special items), reflecting its improving performance throughout the year with strong pre-tax profits in the third and fourth quarters. Based on Ford's improving business performance, the gradually strengthening economy and its updated assumptions, Ford now expect to be profitable 18

with positive Automotive operating-related cash flow in 2010, and it expect continued improvement in 2011.

In 2009, Ford gained market share in the United States for the first time since 1995. It also gained market share in many global markets, including Europe, Brazil, Argentina, Venezuela, Taiwan and South Africa.

Market share increased even further in the first quarter of 2010. Ford increased its overall U.S. market share that quarter by 2.6 percentage points to 16.5 percent and its retail market share was 14.1 percent. This was the largest quarterly U.S. market share gain since 1977. In Europe Ford achieved a 9.4 percent market share, and Ford was the bestselling brand in 19 of the European markets in March 2010.

Ford completed the transfer of its UAW retiree health care liabilities to the UAW Retiree Medical Benefits Trust ("UAW VEBA Trust") on December 31, 2009.

In 2009 Ford committed that every all-new or redesigned vehicle it introduce will be best in class or among the best in class for fuel economy in its segment. Since then, it has followed through on this commitment with vehicles introduced in both the United States and Europe, and it will continue to do so in future product launches.

In early 2009, Ford began selling the new 2010 Ford Fusion and Mercury Milan. The hybrid versions of these vehicles lead their segments in fuel economy. These vehicles have won dozens of awards, including Motor Trend Car of the Year for 2010 and Car of the Year at the 2010 North American International Auto Show. They have also led sales increases for Ford, posting record sales in 2009.

The new Ford Fiesta, which went on sale in Europe in 2008, was the bestselling vehicle in all of Europe for the first quarter of 2010. Ford began production of the Fiesta in our Asia Pacific and Africa region in 2009 and will bring the vehicle to the United States in the second quarter of 2010.

Ford was the bestselling brand of crossover vehicles in the United States in 2009.


Every consumer metric about the Ford brand including favorable opinion, consideration, shopping and intention to buy ended the year at record levels. Favorable opinion was up more than 20 percent from the beginning of the year and intention to buy Ford increased more than 30 percent.

Ford, Lincoln and Mercury vehicles achieved the highest customer satisfaction and the fewest number of "things gone wrong" among all full-line manufacturers, according to the 2010 first quarter Global Quality Research System survey for the United States. In 2010, the initial quality of Ford, Lincoln and Mercury brand vehicles in the United States improved by 8 percent compared to last year.



Human Resources Department Finance Department Marketing & Sales Department Purchase Department Production Department Health & Safety Department

GENERAL RESOURCES Audio conferencing services Recruiting resources Look & Style Arena Competitive product intelligence Global Information Management (GIM) Creative design + Usability Innovation IT Strategic Research & Advisory Services (SRS) Telecommunication
















FORD INDIA PRIVATE LIMITED (FIPL) It is a state of art facility spread across 350 acres, of which 179 acres are used, 71 acres for supplier part and Visteon and 100 acres are for future use. There are nearly 3800 employees. The investment is approximately Rs.1700 cores with the capacity of producing 100000 vehicles per annum. FIPL has 164 dealership facilities in 97 cities. Ford investment in Chennai gears it for the eco-friendly volume production and position. Ford India is to become a major export producer.

FORD TECHNOLOGY SERVICE INDIA (FTSC) It is a center of excellence in Asia pacific Africa(APA) region designed to capitalize on Inias IT skilled manpower and low cost. It is delivers affordable best in class IT and call center technology solution for Ford APA as well as the extended Ford enterprise.

FORD BUSINESS SERVICE CENTER (FBSC) It was established in 1998 to provide accounting, finance and operational services. More than 100 qualified salaries employees are working in FBSC. A 24*5 service center supporting Ford operations across US, Europe, Asia pacific and 130 different IT systems.




Price(lacs) Ground clearance(mm) Boot space(L) Fuel tank capacity(L) Steering type Engine Type Fuel system Displacement(cc) Max. Power (ps/rpm) Max. Torque (nm/rpm) Transmission type

3.51-5.32 168 284 45 Hydraulic power assisted Petrol 16 valve DOHC SEFI 1196 71/6250 102/4000 5 speed manual Diesel 8 valve SOHC Advanced common rail 1399 69/4000 160/2000



Price(lacs) Ground clearance(mm) Boot space(L) Fuel tank capacity(L) Engine Type Fuel system Displacement(cc) Max. Power (ps/rpm) Max. Torque (nm/rpm) Transmission type construction

7.26-7.33 168 430 45 Petrol 4 cylinder in-line 16 valve DOHC SEFI Diesel 4 cylinder in-line 8 valve SOHC Advanced common rail

1596 1399 101/6500 68/4000 146/3400 160/2000 5 speed manual All aluminium alloy


Price(lacs) Mileage

5.50 10.8


Kerb weight(kg) Engine Type costruction Fuel system Displacement(cc) Compression Ratio Max. Power (ps/rpm) Max. Torque (nm/pm) Transmission type


4 Cylinder, 8-V SOHC, Rocam Petrol All Aluminium Alloy SEFI 1299 9.75:1 70 / 5500 105 / 2500 5 speed manual


Price(lacs) Ground clearance(mm) Fuel tank capacity(L) Engine

1639056(4*2) 168 71 4*2


4*4 26

Type Displacement(cc) Max. Power (ps/rpm) Max. Torque (nm/rpm) Transmission type Valve system Fuel system

TDCI with VGT TDCI with VGT 2499 2953 143/3500 156/3200 330/1800 380/2500 5 speed manual 5 speed automatic DOHC,16 valves Direct Injection Common Rail


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: 27

Higher ground clearance to make the car more compatible to the rougher road surface in India. Stiffer rear springs to enable negotiating the ubiquitous patholes 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 segment of people. The segmentation of car buyers based on price preferences are: Family car segment:

These cars forms 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 to 12 lakh. FORD FIESTA, FORD MONDEO come under this segment of cars. SUV segment:


The buyers of this segment like to have a big vehicles. And these cars are also useful for sport riding and even on hill areas. There body is designed similar to offroad vehicles, which can withstand to Indian roads.FORD ENDEAVOUR occupies this segment.

Strategic Promotions by FORD: Ford follows the promotions at two levels, they are: Promotions of product directly by the manufacturer. 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: Advertising through television and newspaper. Internet or interactive marketing. Direct marketing.

In the second step the dealer of the vehicles promotes the vehicles. The various promotional strategies followed by the Fortune Ford at dealer are Advertising though news papers, radios, palm plates. In this all the features of the product and its prices are given in detail to the customer. In televisions the scrolling are given about the product and its features.

Hoardings: A heavy picture of the product which comprises of its attributes and special features are displayed on the roadsides in the form of hoardings. It is a bit expensive strategy but attracts many people who pass by that roadside. This type of advertisement is prepared for those segments of people who cannot afford their time in reading newspapers and watching televisions.


While travelling from their home to office, moving on their business activities they may watch these hoardings. These hoarding are especially setup at the road signal stops. Maintaining Data Bank: In this the dealer collects personal/bio-data(address and contact number) of many people from various organizations and different sector who are ready to buy the vehicles and who change the vehicles regularly. These people are met-in person or contacted through their contact number. The various new features and new offers regarding the vehicles are advocated to them and are given discounts on group purchase of vehicles, i.e. if 5 or more friends in the group purchase the cars at a time then they are given special discounts on the vehicles. Free Insurance: The Fortune Ford gives a special offer of free insurance on the purchase of each vehicle to its new customers. Relationship Marketing: Fortune Ford pays a special attention towards its old customers. To retain the old and existing customers it conducts a corporate meet at a luxurious hotel. The event aims at knowing the problems of the customers regarding the vehicles and also service feedback. In this way it maintains an effective relationship with the customers and gains the reputation and goodwill in the minds of the customers.





It provides a clear description of each step of the sales process and explains how to sell a vehicle based on the value of its features and benefits rather then on the overall price of the vehicle. It also provides helpful ideas for improving the productivity and volume potential. 31

Sales process Ford typically uses a 10-step Showroom Experience Sales process. Two more steps are there i.e. prospecting (before greeting) and follow up (after exit interview).


Step 1 Greeting

Step 2 Need Assessment

Step 3 Vehicle Selection

Step 4 Product Presentation

Step 5 Vehicle demonstration

Selection Step 6 Trade-In Appraisal Step 7 Price Discussion Step 8 Financial Products & services Step 9 Vehicle Delivery Step 10 Exit Interview

Follow up

STEP 1: GREETING Objective: Make customers feel welcome and begin to collect information from them. Process Flow:


Customer arrives

Desk SC* notices customer

Desk SC welcomes customer

Desk SC determines purpose of visit

Desk SC gets appropriate SC to work with customer

Desk SC enters customer data into showroom Traffic Log

SC provides general dealer information

Step 2: SC completes Greeting section of customer record Need Assessment

*SC- Sales Consultant

STEP 2: NEED ASSESSMENT Objective: Ask open ended questions to identify the customers purchase motivators. Process Flow:


SC finds out who is making purchase decision

SC builds customer relationship by asking leading questions

SC asks about purchase motivators Supervisor verifies that SC has identified customers purchase motivators

SC finds out how the customer wants to buy

SC obtains agreement on purchase motivators

Step 3: Vehicle selection

SC completes Needs Assessment section of customer record

STEP 3: VEHICLE SELECTION Objective: Match a Ford vehicle to the customers purchase motivators Process Flow:


SC restates customers purchase motivators

SC discusses make , model, style, options

Sc presents brand image

Sc discusses vehicles that meet customers purchase motivators

Supervisor verifies that SC has recommended an appropriate vehicle

SC recommends vehicle

SC completes the vehicle selection section of customer record

Step 4: Product Presentation

STEP 4: PRODUCT PRESENTATION Objective: Present a vehicle to the customer by employing the ways the vehicle fulfills the customers purchase motivator Process Flow: 35

SC restates customers purchase motivators

SC explains how vehicle meets customers need

SC summarizes standard/optional features

Sc presents brand image

SC provides competitive comparison

Supervisor helps SC present vehicle features that match customers purchase motivator

SC performs six position vehicle walk around focusing on features/benefits that match purchase motivators Step 5: Vehicle Demonstration

SC completes the Product Presentation section of Customer Record

STEP 5: VEHICLE DEMONSTRATION Objective: Allow the customers to drive the selected vehicle and highlight how the vehicles features and benefits match the customers purchase motivators Process flow:


SC confirms availability of vehicle SC performs safety and security check

SC drives to predetermined point

SC demonstrate vehicle operation

SC allows customer to drive remainder of route

Supervisor verifies that SC presents vehicle features and benefits during demo Supervisor monitors Customer Record to access customer response

SC and customer return vehicle to dealership

SC asks for customer feedback

SC asks customer to buy

SC completes the vehicle Demonstration section of customer record Step 6: Trade-In appraisal

STEP 6: TRADE-IN APPRAISAL Objective: Evaluate the value of customers existing vehicle to include trade-in appraisal in a profitable vehicle purchase Process Flow: 37

SC reviews vehicle disposition methods

SC explains and gains approval to start the appraisal process

SC drives and evaluates vehicle

SC completes used vehicle appraisal

Sc approves used vehicle appraisal

SC presents used vehicle appraisal

SC links trade- in to sale

SC completes Trade-In section of Customer record

Step 7: Price Discussion

STEP 7: PRICE DISCUSSION Objective: Sell vehicle based on value to maintain profitability levels Process Flow:


SM provides factory price incentives before negotiation

SC highlights value of customers purchase motivator

SC restates how vehicle benefits match customers purchase motivator

SC reminds customer of ford brand competitive advantages SC asks for the sale

SC completes negotiation section of customer record

SC responds to objections by discussing features and benefits

Supervisor helps with negotiation if SC reaches impasse

SC obtains signed offer to buy Step 8: Financial Products and Services

SC thanks customers

STEP 8: FINANCIAL PRODUCTS AND SERVICES Objective: Offer finance products and services to meet customer needs and increase profitability Process Flow: 39

SC/finance team explains finance process and alternatives

SC/Finance team determines customer needs preferences and priorities

SC/FT presents leasing, financing and cash transaction options to meet customer needs

SC/FT presents insurance products to meet customer needs

Supervisor help SC present finance products that match customers purchase motivators

SC/FT presents insurance products to meet customer needs

SC completes financial products section of the customer record

SC/FT processes customer finance application Step 9: SC/FT reviews terms before getting customer signature Vehicle Delivery

STEP 9: VEHICLE DELIVERY Objective: Deliver vehicle to the customer on time in perfect condition Process Flow: 40

SC explains delivery process to customer

SC schedules delivery with service department

Supervisor submits paperwork for delivery

SC inspects and reviews vehicle

SC completes Delivery of the customer record

SC introduces customer to service department

SC makes first service appointment

SC presents vehicle, vehicle operation

SC explains warranty and maintenance if applicable

Step 10: Exit Interview

SC thanks customer

STEP 10: EXIT INTERVEIW Objective: Ensure the customers satisfaction with the showroom experience and for follow up Process Flow: 41

Did custome r buy?


Was custome r satisfied ? Yes

No Geo grap hica l Ext end NC R No Reg ion

Supervisor asks why the customer did not buy

Supervisor resolves any customer concerns

Tim e SC reviews customers preference 4 for follow up contact wee ks SC sets up initial follow up call

SC/Supervisor asks customer to completes Delivery Customer Satisfaction report

SC completes Exit Interview section of Customer record


Satisfying the customers and participating in marketing objectives. 42

To do the entire selling job. Identification of sales strategy. Achieving the sales target of the organization. Proper co-ordination with the subordinates. Follow-up of customers in a proper manner. Customer handling in a proper manner. Customer relationship management. Maintaining a healthy relationship with all the subordinates. Reporting the progress to the managers. .





Research is systematic investigation into a subject to discover facts, theories, applications etc. Methodology is the system of methods followed by a particular discipline. Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Redman and Mory define research as a systematized effort to gain new knowledge. What is a research problem? The term problem means a question or issue to be examined. Research Problem refers to some difficulty /need which a researcher experiences in the context of either theoretical or practical situation and wants to obtain a solution for the same. This section needs to convince the sponsor to continue reading the proposal. You should capture the readers attention by stating the management dilemma, its, background, its consequences, and the resulting management question. The importance of answering the management question should be emphasized here if a separate module on the importance/benefits of study is not included later in the proposal. In addition, this section should include any restrictions or areas of the management question that will not be addressed. Problem statements too broadly defined cane not be addressed adequately in one study. It is important that the management question distinguish the primary problem from related problem clearly. Be sure your problem statement is clear without the use of idioms or clichs. After reading this section, the potential sponsor should know the management dilemma and the question, its significance, and why something should be done to change the status quo.




Primary Objective: To know the influence of various Marketing 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.



RESEARCH DESIGN It is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure or solve marketing research problem. Descriptive Research The kind of research used in the study is descriptive research which is highly formal and structured in nature. It basically helped in examining the amount of association which exists between corporate advertising, dealership sales process and the purchase motivators for customers. The information needed was clearly specified in the form of questionnaire and sample was large and representative. SAMPLING UNIVERSE The sampling universe for studying the impact of advertisement on auto customers consists of all the customers who are seeking to buy a new car of any brand. The sampling universe for the studying the satisfaction level of customers with the Dealership Sales Process of Ford consists of only the Ford customers who bought car from Harpreet Ford dealer at Moti Nagar in the month of June. The sampling universe for the short term project on Study on Endeavour consists of only those customers who purchased Ford Endeavour from the Dealer at Moti Nagar i.e. Harpreet Ford in the month of May SAMPLING TECHNIQUE A sample of 150 respondents was selected for the research of age above 18 years through Convenience Sampling Method. Convenience sampling is a non-probability sampling technique 47

where subjects are selected because of their convenient accessibility and proximity to the researcher. Since the population of auto customers is too large so it is impossible to include every individual thus convenience sampling technique is the most preferred form because it is fast, inexpensive, easy and the subjects are readily available.

Out of a total sample of 150 respondents, the research on impact of advertisement was conducted on 100 auto customers and the study on Dealership sales process of Ford was conducted by asking feedback questions to the 110 Ford customers. Study on Endeavour was carried out on 45 respondents out of which only 26 gave valid responses. Questionnaire
According to Ruane (2005, p. 123), a questionnaire is a self-contained, self-administered instrument for asking questions . The questionnaire was divided into structured and unstructured questions accordingly. A structured question may either entail multiple choices, dichotomous questions, or a scale, whereas an unstructured question is an open-ended question, which implies that the respondents answer in their own words (Malhotra, 2004).


The structured questions that were asked were either dichotomous or scales. In dichotomous questions, the respondents could only choose between two response alternatives, such as Yes or No, making it easy to code and analyze. This is also known as nominal scale. A ratio scale was also used which allowed the respondents to rank order the various automobile brand according to their preference, i.e. 1 5, where 5 represents very good and 1 indicates very bad.


Finally, in combination with the structured questions, unstructured questions were also asked, where the respondents were able to clarify and express in detail their responses and opinions (Neuman, 2003).

DATA COLLECTION METHOD The data used for this study were obtained from basically two sources. Primary and Secondary. However, the major data for the work were collected by means of questionnaire. One hundred and fifty (150) copies of questionnaire were administered on the auto customers. The major areas covered included Dilshad Garden and Moti Nagar in Delhi and data was collected basically by interacting with the auto customers at the above mentioned two dealership locations for a period of 3 weeks. The respondents were selected randomly at each of the locations on the basis of convenience. The secondary data that were also of great assistance were extracted from the companys HPSS sales consultant toolkit, newspapers like Economic times, Hindustan times, magazines like Auto car and other research papers found online.






Interpretation:As shown in the pie chart most of the auto customers are male i.e. 82 % and only 18% are female. 51


Interpretation:Auto customers exist in all the age groups. Maximum numbers i.e. almost 70% are found in the age group 18 to 30 years as can be seen from the pie chart. Only 21% of the customers belong to the age group of 30 to 40 years who are 52

seeking for a new car. Thus, people of age 18 to 40 forms the main target market for auto companies.


Interpretation:As can be seen from the pie chart that 64% of the data is missing. This shows that mostly people are reluctant in disclosing their annual incomes. Out of the rest 36% who gave their annual incomes 51% of the auto customers had an annual income of 3 to 6 lakh. 30% had an annual income of 6 to 10 lakh and 13 % had 10 to 15 lakh. 53

Just 5% respondents had an annual income greater than 15 lakh.


Interpretation:Auto customers are of different occupations but they mostly belong to either business class or service class. 38% of the respondents interviewed belonged to service class. 34% belong to business class and 18% are students Rest 10% include home maker, retired people, people working in Indian Army or NGO. 54


Interpretation:Advertising acts as a major source of awareness among customers but at the same time customers gather a lot of information through Buzz marketing i.e. through word of mouth. Sales promotion activities and magazines are also able to give almost 35% of the customers what they are looking for. Other reasons through which a customers knows about the brands quality and performance is by its personal usage.



Interpretation:65 out of 100 respondents stress on performance while they go for purchasing a new car. 54 auto customers look out for comfort and 42 look for safety as the most important feature along with other factors such as maintenance, price and fuel efficiency. Only 38 customers out of 100 take design and look of the car into consideration while purchasing it.



Interpretation:More then 50% of the auto customers consider recommendations from people and around 38% of auto customers consider consumer opinion i.e. those customers who have already used the product as the most trustable form of advertisement so its very necessary for an automobile company to create positive brand image in front of its customer and avoid any such activities which might lead to even a single unsatisfied customer. Other advertisements forms such as T.V., newspaper, magazines and the brand website have also been able to gain trust of around 20% to 30% of auto customers. Thus a balance is needed to be maintained amongst all these forms of ads in order to keep all the customers satisfies and provide them the required information.


Other forms of ads make a very small percentage of the total. CHANNELS MOSTLY WATCHED BY AUTO CUSTOMERS:

Interpretation:Almost 38% of the customers prefer to watch news channels, 34% of the customers like to watch entertainment channels and 27% prefer to watch sports channels.



Interpretation:As can be seen from the bar graph that almost an equal no. of auto customers i.e. 50 prefer to surf both social networking and mal sites. Almost 40 customers showed interest in technology sites and very few like the blog sites.


Interpretation:57% of the customers feel that the more they are exposed to a particular advertisement the more they would be aligned towards that brand or car and thus it would influence their purchase decision while 42% of the customers belief that frequency of ad doesnt make any difference to them till the quality and service offered by any car is good.



Most of the auto customers are male falling into the age group of 18 to 30 years having an annual income of 3 to 6 lakh and belonging to mostly service or business class. Maximum numbers of customers prefer Honda as a brand cause of the superior quality of the product offered by them. Most of the customers believe that corporate advertising does not influence their purchase decision, it just helps to build the brand awareness and positioning. Quality of the product serves as the main reason for preferring a particular automobile brand. Recommendations from people and the customer opinions or blogs posted online serves are the most trusted form of advertisements amongst auto customers Performance of the car acts as the top most feature which customers take into consideration while purchasing a new car. Comfort and safety stands at the second place for consideration while making a purchase decision for car. Most of the ads recalled by the automobile customers was an unaided recall. In this Maruti topped the list because of its long term existence. Many other recently launched cars ads like Figo, Polo etc were also amongst the recalled list. Ads of automobiles focusing on features and technology used in cars are able to generate enough curiosity amongst the customers and able to pull the customers out of their houses to the showrooms in order to have detailed knowledge about the car. Around 60% of the customers think that using a celebrity for the promotion of car is just wastage of money for the manufacturer and they stress on using a common man in the ads for better association with the ad. Even by holding expert talks a lot of trust can be gained of auto customers.


45% of the customers come across an automobile ad in a day just once or twice and 57% believe that frequency of ad has an effect on their purchase decision.




Satisfying the customers and participating in marketing objectives.

To do the entire selling job. Identification of sales stategy. Achieving the sales target of the organization. Proper co-ordination with the subordinates. Follow-up of customers in a proper manner. Customer handling in a proper manner. Customer relationship management. Mantaining a healthy relationship with all the subordinates. Reporting the progress to the managers. .



Advertising is a subset of promotion mix which is one of the 4ps in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, advertising serve as a major tool in creating product awareness and condition the mind of a potential consumer to take eventual purchase decision. Automobile ads just act as Reinforcement Ads which help in convincing the current purchasers that they have made the right choice. They basically act as source of awareness for the new products launched by the auto industry. Since advertisements and buzz marketing constitutes the main source for generating awareness amongst the customers, hence efforts should be made for maintaining a positive word of mouth publicity, showing only unique and relevant things in the ads and delivering what is promised to the customers.

Brand/Reputation and Quality acts as the most likely purchase influencer overall and is a dominating decision-influence for consumers in Asia Pacific when it comes to make investment in cars. Almost 51% of the customers take the brand into consideration before purchasing a car.

Thus, understanding the customers expectations and focusing more on the quality and performance along with better after sales services can make any automobile company reach up to heights.


Maruti Suzuki still holds a market share of 47% due to its low cost after sales services and large no. of service stations all over India. Thus Ford still needs to increase the no. of service stations and decrease the maintenance cost in order to attract more customers and bring its market share at par with other competitors.

Even Prior Experience in terms of earlier usage of the product serves as the first and foremost consideration when buying a car. Maruti being the oldest player in the market has an edge in this consideration. Thus, Ford needs to develop better means for influencing and attracting the customers.

Advertising mainly online advertising serves as the main source of awareness amongst auto customers due to the shifting interest of customers towards internet. Thus Ford should focus more on online marketing of products along with traditional means of advertising in order to reach both types of customers.

Buzz marketing also acts as a great source of awareness for the customers. So there is a strong requirement by Ford to keep its earlier customers completely satisfied in order to maintain its good reputation in the market.

The kind of promotional activities which Ford is doing currently for Figo should also be done for its other cars.

Ford has an excellent sales process but it needs to ensure that it is completely followed by the sales consultant and in an orderly manner. The dealers also need to ensure that the all the customers undergo a uniform sales process in order to increase the level of satisfaction amongst the customers.









Name of the respondent: Sex: Age: (a) (b) (c) (d) (e) (f) between 18 to 25 yrs between 25 to 30 yrs between 31 to 40 yrs between 41 to 50 yrs between 51 to 60 yrs above 60 yrs Male Female Annual Income: (a) between 3 to 6 lakh (b) between 6 to 10 lakh (c) between 10 to 15 lakh (d) above 15 lakh

Occupation: (a) Business (b) Service (c) Any other _____________________ Phone no/Email id: Location: Q1. Rank the various automobile brands according to your preference Maruti Ford Hyundai Honda


Tata Toyoto General motors

Q2. Why do you prefer a particular brand (a) (b) (c) (d) (e) (f) Advertising Quality Maintenance Price Availability Any other reason ______________________

Q3. How did you come to know about this brand (a) (b) (c) (d) (e) (f) Advertising Sales promotion Word of mouth Auto magazines Dont remember Any other source __________________

Q4. Which feature you consider most important in a car (a) (b) (c) (d) (e) (f) (g) (h) Design / Style Performance Comfort Safety Environment friendly Maintenance Price Fuel efficiency

Q5. What form of advertising you trust the most (at least two) (a) (b) (c) (d) (e) (f) Recommendations from people Consumer opinion/ blogs posted online Brand websites Newspaper Magazines T.V. 69

(g) (h) (i) (j)

F.M. Search Engine ads Online banner ads Billboards (outdoor advertising)

Q6. What channels you like to watch on T.V. (a) (b) (c) (d) (e) News channels Sports channels Regional channels Entertainment channels Any other _________________

Q7. What programs you like to watch on T.V. (a) __________________ (b) __________________ (c) __________________ Q8. What all sites you like to surf on net (a) (b) (c) (d) (e) Social networking sites Mail sites Message boards or blogs sites Technology sites Any other

Q9. Which automobile ad can you recall right now _______________________________ Q10. What does the ad convey to you or the main message you get from the ad ________________________________________________ Q11. Does the ad arouses you to YES Seek more information about the car Go to the showroom Search on the internet Discuss/ask friends or colleagues about the car NO


Have a test drive Purchase the car No influence

Q12. What you like the most about this ad


Q13. What you dislike __________________________ Q14. Whats your opinion about using a brand ambassador for cars (a) Very necessary (b) Not needed (c) Wastage of money for manufacturer Q15. Whom do you suggest as a right person for promoting a car (a) (b) (c) (d) (e) (f) Sports person Any celebrity Film stars Car experts Common man Any other______________

Q16. How many times in a day do you come across an automobile ad (a) 1 to 2 times (b) 3 to 5 times (c) More than 5 times Q17. Do you think frequency of the ad affects your purchase decision (a) Yes (b) No Thank you very much for your time and answers! The information provided by you will be kept confidential and will be used for academic purpose only.