Army Institute of Business Administration

(AIBA), Jalalabad Cantonment

Marketing Analysis of
Ford Automobile
Company

Submitted by:
Sakif Ryhan, ID: 27
Ashraful Alim, ID: 29. Submitted to:
Tasnim Huda Proma, ID: 14. Shahriar Tanim

Ahasanul Mahbub Zubayer, ID: 11. Lecturer, AIBA

Muhaiminul Ahmed Shohag, ID: 05.

 Letter of Transmittal
May 21, 2017

Shahriar Tanim

Lecturer
Army Institute of Business Administration (AIBA)
Jalalabad Cantonment.

Dear Sir

With due respect, I would like to inform you that, we are submitting the attached report
entitled The Marketing analysis of Ford.

This report examines the SWOT analysis, the marketing strategy and marketing mix of Ford.
The automobile market is changing rapidly and the implications of these changes, will be
discussed. Also, discussed about how can Ford sustain in this growing market, and some
possible recommendations for the problems.

I hope you find this report satisfactory.

Sincerely yours,

Sakif Ryhan, ID: 10116027.

Ashraful Alim, ID: 10116029.
Tasnim Huda Proma, ID: 10116014.
Ahasanul Mahbub Zubayer, ID 10116011.
Muhaiminul Ahmed Shohag, ID: 10116005.

Batch: BBA-3
Army Institute of Business Administration,
Sylhet.

1|Page
 Table of Contents

Executive Summery ................................................................................................................. 3

Introduction .............................................................................................................................. 4
Objectives ...................................................................................................................... 4
Need for the study………………………………...…………….………………………........................................4
Methodology………………………………………………………………………………………………………………………….……….5

Company Overview…………………….....................……………………………………......................................6-7

SWOT Analysis………………………………………………………………………………………………………………………….…8

SWOT in Action……………………………………………………………………………………………………….……….9

Competitor Analysis……………………………………………………………………………………………….…….……….9-10

Competitors of Ford ……………………………………………………………..……………………………….…….…10

Competitor Product Summary…………….…………………………………………….……………………………10

Competitor Strengths and Weaknesses….……………………………….……….……………………………10

Opportunities and Threats for The Competitors…………………………………….…………………...10

Competitor Strategies and Objectives……………………………………………………………………………10

Market Outlook……………………………………………………………………………………………………………….10

Logo & Tagline……………………………………………………………………………………………………………………….…11

Mission Statement………………………………………………………………………………………………………………….…12

Marketing Strategies………...................................................................................................….13-15

Market Segmentation…………………………………………………………………………………………………...13

Target Market…………………………………………………………………………………………………………………14

Positioning…………………………………………………………………………………………………………………14-15

Marketing Mix…………………………………………………………………………………………………………………….15-16

Product & Placement…………………………………………………………………………………………………….16

Promotion & Pricing………………………………………………………………………………………………….…16

Conclusion………………………………………………………………………………………………………………………….….….17

Recommendation………………………………………………………………………………………………………….17

References………………………………………………………………………………………………………………………………...18

Appendix……………………………………………………………………………………………………………………………….….19

2|Page
 Executive Summary
Ford Motor Company is the most financially stable car manufacturer. It has faced many ups
and downs during the economy fall. With a strong financial position, we believe that the
company need not to seek government funding. But for that the sales rate need to meet the
target market. In present market, all the car companies are facing big challenges because of
growing competition. The whole report consists about some marketing analysis of ford. Now
a day the motor company market has become very competitive. In this competitive motor
company market ford need some strategies to sustain in the growing market. To eliminate the
strategic challenges some strategies ford, need to apply. In the report, we will know about how
the ford company is doing their market strategies and marketing mix. Which will push them to
achieve their goals and expectations in future.

The motor industry is changing rapidly. All the companies bringing innovation and some
market strategies to sustain in this fast-growing market. Therefore, ford need to analyze the
market and its competitors for doing good and sustain in the market. Throughout this report,
we are going to know about ford’s strategies, marketing mix and what is the current position
of ford and what should be the further steps to gain more market share.

3|Page
 Introduction
Day by day our whole society is getting urbanized. So, in coming days there are huge changes
coming in different sectors even in the automobile industries. A company can gain more market
share and growth by understanding consumer needs. This understanding make a company
dominating in the whole market. If a company do not achieve the customer value and
satisfaction they will not sustain in this competitive market. A company need to know the way
to build and manage things smoothly because the aim of marketing is to build and manage.

Strategic marketing is very important for any organization. It helps to achieve its expectations
and goals. An organization must follow its strategic plans to maximize its profit and maximize
its shareholder’s wealth.

Ford company is not doing much well in the market. So, they need to boost back in the market.
This report will tell us about the strengths, opportunities of ford and the weaknesses, threats of
ford motor company. Also, we will know some strategies and the 4P’s of ford company and to
sustain in the market what are they doing and what they need to do.

Objectives
• To know the upcoming innovations and factors of the cars.
• To Analyze some strategies of Ford.
• To know about the customer satisfaction and value.
• To develop the relationship customer and financial groups.
• To analyze the customer's thinking and wants regarding ford cars.

Need for the study

• To understand about the product that need to promote.

• To study growth and expectation of Ford.
• To know the competitor in the market.

4|Page
 Methodology

The present report constitutes the construction and study of marketing analysis of Ford
automobile company on the basis of empirical data collected about Ford from various internet
sources, newspapers and books. The report follows a critical assessment of the marketing mix,
marketing strategy and SWOT analysis for this company. The discussion on the marketing
strategy and SWOT analysis data and opinion collected from the study conducted while the
formation of the strategy as well as the recommendations. The report dealing with the critical
examination of SWOT analysis of Ford.

Technique adopted for data collection

(A) Internet Survey.

(B) Newspaper.

(C) Opinion Generation.

(D) Books.

5|Page
 Company Overview

Name Ford Motor Company.

Logo

Industries
Automotive and Financial Services.
served

Geographic
Worldwide (62 countries).
areas served

Headquarters Dearborn, Michigan, U.S.

Current CEO Mark Fields.

Revenue (US$) 151.800 billion (2016) 1.5% increase over 149.558 billion (2015).

6|Page
 Profit (US$) 4.596 billion (2016) 37.7% decrease over 7.373 billion (2015).

Employees 201,000 (2017).

Fiat Chrysler Automobiles, General Motors Company, Honda Motor

Company, Hyundai-Kia Automotive Group, PSA Peugeot Citroën,
Main
Renault-Nissan B.V., Suzuki Motor Corporation, Toyota Motor
Competitors
Corporation, Volkswagen AG Group and many other automotive
companies.

Henry Ford was the founder of Ford motor company in 1903. The company developed the first
product in 1909 named Model T. also produced planes and vehicles for the Allies in World
War II. Since 1904, ford has operated internationally. Ford opened its first branch in Canada
to gain access to Commonwealth markets. In first half of the 21st Century, Ford remained the
dominant car manufacturer in the market. Toyota exported its first automobile to the United
States in 1956 and started to gain market share. Ford’s automotive segment designs,
manufactures, and services cars, trucks, SUVs, and vehicle parts. This sector is primarily
broken down by region: North America, South America, Europe, and Asia Pacific Africa.

7|Page
 SWOT analysis of Ford

➢ Strengths

• Financially sound: Ford is a very financially sound company among all its
competitors.

• Good relationship with dealers: Having good relationship with dealers increasing their
brand image as well as bringing new consumers.

• Strong brand image: From the day one Ford has an excellent brand image.

• Innovative Products: Ford has introduced some innovative cars to the market.

➢ Weakness

• Less profit in different areas: Some cars are not bringing profit to the companies.

• Rate of sells is lower: Because of less diversification the sells rate is much lower.

• Unutilized resources: Resources are not fully utilized because of ineffective R&D.

➢ Opportunities

• Market demand of cars: With the increasing population cars demand is increasing.

• Requirements of new category cars: People of different class looking for some new
category cars.

• The restructured industry: The industry is restructuring with new technologies. Ford
can capitalize this opportunity.

➢ Threats

• Huge number of competitors: Number of competitor of ford is significantly high.

• Declining of car price: Because of high competition car prize is declining.

• Government rules and regulations: Govt taxation rules and other rules and regulation
decreases the amount of sell.

8|Page
 SWOT in Action

➢ Use of Strengths to avoid Threats.

• Getting into new deals with competitors.

• Making good relationship with other automakers.
• Hire effective marketers.

➢ Use of Strengths to take advantage of Opportunities.

• Develop market in populated areas.

• Bring more innovation in development of cars.
• Investing money for more social advertising.

➢ Overcoming Weaknesses by take advantage from Opportunities.

• Produce cars for middle class lower middle class people to grab market share.

• Utilizing the resources fully to know the customer needs and demands.

➢ Minimize Weaknesses to avoid Threats.

• Remove unprofitable areas.

Competitor Analysis

Competitors of Ford:

There are a lot of automobile companies in the market. Basically, Ford is facing some
challenges due to having a lot of competitors. Such as, Fiat Chrysler Automobiles, General
Motors Company, Honda Motor Company, Hyundai-Kia Automotive Group, Suzuki Motor
Corporation, Toyota Motor Corporation, Volkswagen AG Group and many other automotive
companies.

9|Page
Product Summary of Competitors:

There are many competitors of Ford company. They are giving to their consumers different
innovative and sustainable products. They are bringing lots of diversification in their product
line. Companies like Toyota, Fiat, Honda and Suzuki they always looking forward to know
customer needs and expectations. According to that they are providing services and making
their product. Suzuki automobiles providing cars and motorbike according to their target
segments. Toyota is targeting the middle-class family and continuously introducing new low
cost car in the market.

Strengths and Weaknesses of The Competitors:

Likewise ford its competitors also have some strengths and weaknesses. Such as Toyota
company has a weakness of less innovation but its strength is superior brand image. Toyota
company is not bringing innovation in their product line but they are holding a good market
share with a superior brand image. On the other hand, Suzuki company has good R&D sectors
but it a weakness of higher inventory.

Opportunities and Threats for The Competitors:

Some opportunities of the competitors are the change of industry, increasing population,
increasing demands and threats are the competitive market and loyalty of different customer to
different brands.

Strategies and Objectives of Competitors:

Different automobiles have different strategies for their companies. Toyota is following the
market penetration strategy. They sell their product as much as possible in the existing market
and gain higher market share. On the other hand, Fiat, Honda and Suzuki is following the
product development strategy. They are bringing new products frequently in the existing
market.

Market Outlook:

Ford is giving a dominating competition to the competitors but the sustainability is quite unsure
because of some weaknesses. Therefore, in present time it is hard to measure that which is
holding a better position than other. Ford must go for higher sales rate than other to gain higher
market share so that the outlook of the market will be very positive for Ford Company.

10 | P a g e
 Logo & Tag line

ccc

1903-1907 1907-1909 1909-1911

1911-1912 1912-1927 1927-1957

2000-2003
1957-1976 1976-2000

2003-Present

11 | P a g e
 Mission statement

We are a global family with a proud heritage passionately committed to providing personal
mobility for people around the world. We anticipate consumer need and deliver outstanding
products and services that improve people's lives.
Ford’s mission statement is “One Team. One Plan. One Goal.” This mission statement is also
known as the “One Ford” mission, which is part of the “One Ford” plan that was unveiled in
2008 under CEO Alan Mulally’s leadership. Ford explains that the expanded form of its
mission statement is as follows:
• One Team: “People working together as a lean, global enterprise for automotive leadership,
as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and
Community Satisfaction.”
• One Plan: “Aggressively restructure to operate profitably at the current demand and
changing model mix; Accelerate development of new products our customers want and
value; Finance our plan and improve our balance sheet; Work together effectively as one
team.”
• One Goal: “An exciting viable Ford delivering profitable growth for all.”
Ford Motor Company’s current mission statement is a response to the challenges it
experienced, especially in relation to market risks and the American recession and global
financial crisis that started in the late 2000s. Prior to implementing the One Ford mission
statement, the company had disparate product lines in different markets. With the One Ford
mission statement, the company now focuses on creating consistency in product and service
design and quality globally. The mission statement emphasizes teamwork to achieve synergy
at Ford.

12 | P a g e
 Marketing strategy

An Organization must have to do marketing strategy in order to achieve the expectation and
goal. Good market strategy ensures a smooth way to organization goal. This increases
profitability and helps to gain high market share and growth.

There are few steps of doing marketing strategy. Such that Market Segmentation, Target
Market & Market Positioning.

Market Segmentation

Market segmentation is simply dividing customer into groups according to some

characteristics. This groups or segments have common needs and respond similarly to a
marketing action. Market segmentation enables companies to target different categories of
consumers who ensure the full value of certain products and services differently from one
another.

Geographic Segmentation: Ford company is coming with new types of cars. They are now
trying to established market in India and England. They already have started promoting about
their cars in YouTube channel named Ford Company UK. They are now going for diversifying
strategy. So, going for new market will increase their sells rates also it will increase the brand
image in the market.

Demographic Segmentation: Ford company basically segmenting the group of people whose
income scale is not very high. Ford mainly aims for the young age people who has a good
income source also the ladies and the consumer who has average income. Ford designs their
cars for these type of people. By following this strategy Ford decreases a lot of competition in
the market.

Physiographic Segmentation: Ford Company has introduced new car named Ford Fiesta. It
has come up with a very reasonable price and affordable for every medium class of people.

Behavioral Segmentation: Ford is giving benefits to the consumer of safety and fuel
efficiency. Ford fuel efficiency is one of the best. It provides maximum fuel efficiency.

13 | P a g e
 Target Market

Target market is a specific group of consumers for which an organization work and give all the
marketing efforts. Target market should be well defined. It is the first element of a
proper marketing strategy. The success of a product or service in a marketplace is possible with
a proper marketing mix. So that organizations must have a clear definition of their target
market.
Ford target market basically depends on its different products. That means ford different cars
focuses different target customers.

• For the entry level car owners ford has introduced Ford Fiesta.
• For young people and young executives ford has Ford Fusion.
• For small family ford has Ford Taurus.
• For Chauffeur services and Police Departments ford has Ford Crown Victoria.
• Ford Escape is for the middle age people
• Ford Expedition is a family car also for the people who loves travelling.
• Ford Edge is for ages 25-50 and have a higher income.
• Ford Flex is for basically large family and a travel car.
• Ford Trucks is for work needs to carry different things from place to place.
• Ford Transit Connect: Business.
• Everyone love to have a Ford Mustang.

This is target market of Ford Motor Company for its different products.

Positioning

Positioning is to the place a company or product as a brand in the mind of the customer and
how it is different from other products from competitors in the market. To position products or
brands, companies must emphasize the distinguishing features of their brand or they should try
to create a suitable image through the marketing mix. After a brand achieve a strong position,
in the market it can become difficult to reposition it.

One of the most powerful marketing concepts is positioning. Positioning has become a regular
marketing activity or strategy for any organization.

14 | P a g e
Positioning must provide a message to the consumer which has not done by ford in past. The
previous tag line of ford was “Drive One”. It didn’t provide any information to the customer
about the benefits of its products. But no ford has come up with an excellent tagline which
clearly reflects the ford current benefit of ensuring fuel efficiency.

Marketing Mix

The marketing mix is the set of marketing tools which includes product, price, place, and
promotion. Ford Motor Company’s marketing mix (4Ps) increases their ability to connect with
its target customers. Basically, organization used to make a proper marketing plan with a well-
defined marketing mix. Ford company is holding the position of second largest U.S.-based
automaker and its position is the fifth in the world. To hold this position, ford need a well-
defined marketing mix and critical analysis and strategies. This marketing mix and strategies
also can ensure Ford’s possibilities in reaching its target markets around the world. Ford Motor
Company’s marketing mix make a smooth way to reach its target customers worldwide.

➢ Products

Ford’s offers variety of products to the consumers. Ford’s main product lines are as follows:

1. Automobiles.
2. Trucks.
3. Buses.

According to types of consumer product Ford Motor Company is providing Specialty products.
Ford has a strong brand preference loyalty. It provides luxury goods. However, Cars is not for
every class of people. The distribution of its products is exclusive. They promote their product
very carefully for their target customer.

➢ Placement

Placement is referring to focuses on the venues or locations used to reach and sell to customers.
Basically, the movement of product from producer to consumer is place in the 4P’s of
marketing mix.

15 | P a g e
1. Dealerships.
2. Auto parts stores.
3. Ford Parts website.

The dealerships of ford are the most effective place for distributing most of its products. Most
of the sales revenues had been achieved through these dealerships. Also, ford is selling their
cars via website directly to the customers. Ford has huge number of auto parts stores. They are
selling their products directly to their consumers via auto parts stores.

➢ Promotion

Ford company is promoting their products frequently via different sources. The got two
YouTube channels also they are doing TV advertising globally of their different cars.

1. Advertising.
2. Sales promotions.
3. Public relations.

Ford is using advertisement as the main strategy to promote its products globally. Basically,
the TV advertisements and online advertisements in social media is much more effective than
others. Also, they got agents who promote about their features towards the customers. On the
other hand, ford sponsors in different events, sports etc.

Pricing

Depending on the market ford make their pricing strategies.

1. Competition pricing.
2. Premium pricing strategy.

The competition pricing strategy is for sustain in the high competitive market. Ford applies this
pricing strategy for its products like Ford Fiesta and SUV Trucks. Also, Ford follows the
premium pricing strategy for some of its products to set higher price because Ford has some
luxury cars. Therefore, they need to apply the premium strategy.

16 | P a g e
 Conclusion

Ford product have few target markets and we have done some research of how Ford Motor
Company use SWOT analysis to sell their maximum product and utilize the resources. We also
know how Ford Motor Company uses 4 elements of marketing mix to sell the product to the
customer.

Ford is growing its sales rate and market share via some its products. Now the key is to success
is bringing innovation and introducing cars with some extraordinary features. Because now
people are looking for innovation and features. They need to target this and go for
diversification. They need to get into new market so that the sale rate get increases more.
Eventually it will become a premium brand for all and a market dominating brand for its
competitors.

Recommendations
Although ford is holding a good position in the market. But the market is changing rapidly also
the competition increasing. So, sustain in the competitive market and for the growth ford must
find some ways to remain dominant. With some proper steps ford can sustain in this growing
market and gain high market share and they will keep going with a great sells rate.

There are some recommendations are given below for Ford.

• Keep going with the motto of fuel efficiency.

• Improve the research and development sectors.
• Introduce new cars with innovative features.

17 | P a g e
 References

1. William D Perreault Jr, & E Jerome McCarthy (2006), Marketing Strategy Planning, Basic
Marketing, A Global - Managerial Approach (15th ed., pp. 37-43), McGraw Hill Education
India: Choudhary Mudran Kendra, New Delhi.

2. William D Perreault Jr, & E Jerome McCarthy (2006). Place & Development of Channel
System, Basic Marketing, A Global - Managerial Approach (15th ed., pp. 296-302), McGraw
Hill Education India: Choudhary Mudran Kendra, New Delhi.

3. Ryan H, 5 November 2014, Arcas Advertising, viewed on 11 May 2017, http://arcasadver

tising.com/brand-positioning-ford/

4. Edward F, Feb 5, 2017, Panmore Institute, Ford Motor 4P’s analysis, viewed on 11 May
2017, http://panmore.com/ford-motor-company-marketing-mix-4ps-analysis

5. Ford Motor Company, 2015, Annual Reports, viewed on 11 May 2017 http://shareholder.
ford.com/reports-and-filings/annual-reports

6. Ovidijus J, March 20, 2017, Strategic Management Insight, viewed on 11 May 2017,
https://www.strategicmanagementinsight.com/swot-analyses/ford-swot-analysis.html

18 | P a g e
 Appendix

Necessity of Innovation in Ford Company

Ford company did well in past. But the ratio is not stable. Growth is not going in a proper
flow. The net income of four years (2013-2016) clearly prove the first statement.

Ford Net Income

8
7
6
5
4
3
2
1
0
2013 2014 2015 2016
Net Income Margin

Fig: Ford net income 2013 – 2016

Therefore, we need a critical analysis that will help us to identify the problems and find some
possible solution for it. All the information was collected from internet survey and articles.
Using the collected data, we have a critical analysis of ford using SWOT analysis. After
analyzing all the information and data the possible solution has been given. Alternatively,
ford must ensure the customer value by giving some benefits. Because in future this simple
strategy can increase the rate of sell again.

19 | P a g e