MARKETING STRATEGY OF FORD MOTORS

By
Samir Pandey
National Collage of Computer Studies
NCCS Reg No: 6439
NCCS Roll no: 33

A term paper submitted to

Marketing department
Faculty of management
National Examinations Board

In partial fulfillment of the course of marketing of grade XII as per

The requirement of NEB
Kathmandu, Nepal
December,7
Acknowledgment

Writing a report in class 12 is a very crucial and compulsory task provided by NEB, so
every student gains knowledge practically. I enjoy writing this report very much. A
student like me who enjoys writing gains knowledge. There was no practice of fieldwork
assignment in the former 2-year programs. Now, I should be grateful to say that the
standard of our class 12 level has become graduation level.
I would like to express my genial respect to MR. Ahok Bhandari subject teacher and
report advisor of the National Collage of Computer Studies and my grateful for their
valuable suggestion to prepare this report.
I would like to extend my deep appreciation and all the cordial thanks to all these
teachers, friends, collage staff and the librarian staff who directly helped me in
completion of these studies
Thank you Samir Pandey
NCCS
Paknajol, KTM
Nepal.
s

Table of Contents
CHAPTER 1........................................................................................................................1
1.1 INTRODUCTION:....................................................................................................1
1.2 Objectives...................................................................................................................2
1.3 Significance of Study.................................................................................................2
1.4 Limitation of Study....................................................................................................2
1.5 Research Methodology..............................................................................................3
1.5.1 Primary Data.......................................................................................................3
1.5.2 Secondary data....................................................................................................3
CHAPTER 2........................................................................................................................4
2.1 Marketing Strategy of Ford........................................................................................4
2.1.1 Product differentiation based on operational efficiency.....................................4
2.1.2 Adopting Offer to Suit Target Segment..............................................................4
2.1.3 Strategic segmentation of cars:...........................................................................5
2.2 Strategic Promotions by FORD:................................................................................5
2.2.1 Maintaining Data Bank:......................................................................................6
2.2.2 Relationship Marketing:.....................................................................................6
2.2.3 Sales Promotion:.................................................................................................6
2.2.4 Conducting Customer Delight Program:............................................................6
2.2.5 STRATEGIC SALES STANDARDS:...............................................................7
2.3 Maintaining service standard.....................................................................................7
2.4 Ford Sale by Markets.................................................................................................8
CHAPTER 1

1.1 INTRODUCTION:

FORD MOTOR Company, commonly known as Ford is an American multinational

company that has its main headquarters in Dearborn, Michigan, a suburban of Detroit.
The company sells automobiles and commercial vehicles under the name Ford, and most
luxury cars under the brand Lincoln. The company is listed on the new York stock
exchange and is controlled by the Ford family; they have minority ownership but the
majority of the voting power. 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 ; by 1914, these methods
were known around the world as Fordism. Ford's former UK subsidiaries Jaguar
and Land Rover, acquired in 1989 and 2000 respectively, were sold to the Indian
automaker Tata Motors in March 2008. Ford owned the Swedish automaker Volvo from
1999 to 2010.In 2011, Ford discontinued the Mercury brand, under which it had marketed
entry-level luxury cars in the United States, Canada, Mexico, and the Middle East since
1938.
Ford is the second-largest U.S.-based automaker (behind General Motors) and the fifth-
largest in the world (behind Toyota, VW, Hyundai-Kia and General Motors) based on
2015 vehicle production. At the end of 2010, Ford was the fifth largest automaker in
Europe. The company went public in 1956 but the Ford family, through special Class B
shares, still retain 40 percent voting rights. During the financial crisis at the beginning of
the 21st century, it struggled financially, but it has since returned to profitability. Ford
was the eleventh-ranked overall American-based company in the 2018 Fortune 500list,
based on global revenues in 2017 of $156.7 billion.  In 2008, Ford produced
5.532 million automobile sand employed about 213,000 employees at around 90 plants
and facilities worldwide.

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1.2 Objectives
To know the effective factors preferring four wheelers(CARS)
To know the factor of awareness of cars
To study and analyze promotional strategies of ford
To know which kinds of offers can attract new customers
To find the areas to be improved
To study and analyze the customers perception regarding the usefulness of Ford cars
To know whether the customers are satisfied by the offers given by the dealers
To study and analyze the customers perception regarding the usefulness of Ford cars.
To analyze the marketing strategy of ford in Nepal
To study the levels involved in Ford
To know the factors of awareness of cars

1.3 Significance of Study

To study about the marketing process of Ford in south east Asia
To know about the different pricing of Ford cars.
To know about the annual profit made by ford
To know about the promotional activities of ford
To know the total sales of ford cars in Asia

1.4 Limitation of Study

The research is only done for study purpose. The research being a student has a very
limited time and resources. The study is confined only to marketing strategy of Ford cars
in South East Asia. Therefore it may not be representing the overall strategy of ford.
The degree of validity of information provided totally depends on the provider of the
information.

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This report has been prepared within the time prescribed by NCCS higher secondary
school in certain time; hence it is not complete study of every aspect.
Making data for the project
Collected data from more than 10 websites
Collecting data and research about the Ford motors

1.5 Research Methodology

For the purpose of completion of this project we have obtained data mainly from
secondary source. The data collected are evaluated effectively and converted into
information. The primary source of data consists of obtaining information from the
concerned department by interviewing. The secondary source of data consists of the
journals, articles, and other forms of data that directly or indirectly helped us in the
preparation of the report.

1.5.1 Primary Data

A primary data source is an original data source, that is, one in which the data are
collected firsthand by the researcher for a specific research purpose or project. Primary
data can be collected in a number of ways. However, the most common techniques are
self-administered surveys, interviews, field observation, and experiments. Primary data
collection is quite expensive and time consuming compared to secondary data collection.
Notwithstanding, primary data collection may be the only suitable method for some types
of research.

1.5.2 Secondary data

Secondary data are data that have been previously collected or gathered for other
purposes than the aim of the academic article’s study. This type of data is already
available, in different forms, from a variety of sources. The secondary data used in the
completion of report are mainly from the internet as many of the data of the company is
centralized in the internet.

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CHAPTER 2

2.1 Marketing Strategy of Ford

A marketing strategy is a process or model to allow a company or organization focus
limited resources to the best opportunities to increase the sales and thereby achieve a
sustainable competitive advantage over the long term. Fords target market is market is
highly varied and spams the global economy. The firm the second largest auto maker
based on US fifth in the world.

2.1.1 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 new norm in customer service: “fix it right –the first time-on time”.
Ford is also supplying video tapes showing how repairs have to be done.

2.1.2 Adopting Offer to Suit Target Segment

Ford modifies its segment to Nepalese market according to the needs and requirement of
the Nepalese market.
 Higher ground clearance to make the car more compatible to the rougher road
surface in Nepal.
 Stiffer rear springs to enable negotiating potholes on Indian roads.
 Changes in cooling requirement, with greater airflow to the car.
 High resistance to dust.
 Comp ability of engine with the quality of fuel available in Nepal.
 Location of horn button on the steering of the vehicle (As the Nepalese motorist
uses the horn more often , for the cars sold in Nepal the horn buttons are kept on
the steering wheel and not on a lever on the side as sold in Europe )

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2.1.3 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 for a reasonably sizeable segment of the market
(around 15 percent).
Preferred price range is from 5 lakh to 6 lakh
FORD FIGO' come under this type of segment.
Premium car segment: This segment represents buyers who need a real world-class car
and Preferred price range starts from 8 lakh to 12 lakhFORD FIESTA' comes under this
segment of cars.
• SUV segment: The buyers of this segment like to have big vehicles.
And these cars are very useful for sport riding and even on hill areas. Their body is
designed
Similar to off-road vehicles, which can withstand to Indian roads.
*FORD ENDEAVOUR occupies this segment.
2.2 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 Automotive 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

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

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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 are willing to pay the due price. 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 boarding’s. These hoarding are
especially setup at the road signal stops.
2.2.1 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.
2.2.2 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.
2.2.3 Sales Promotion:
The sales promotion is done in the fortune ford at three levels:
1. Showroom sales: In this the customers walk in to the showrooms to know about the
details of the product Specially trained sales executives who are present in the
showrooms give a detailed explanation about the product to the customers. Sales
executives give a detailed note on the products features, various offers given by the
manufacturer and also by the dealer to the customer and enhances the sales of the
vehicles.
2. Corporate sales: A special team of sales executives are sent to some big corporate
sectors and there they personally meet the heads of the organizations like C.E.O's,
Mamagers etc., and explain about the vehicles and the offers and special schemes
provided by the dealer to them on bulk purchase of the vehicles and try to promote the
sales of the vehicles.
3. Field sales: The sales executives conduct some events with the corporate working
people and try to demonstrate the product features and its benefits and try to promote the
product and increase its sales.
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2.2.4 Conducting Customer Delight Program:
This is a unique program conducted by the Fortune Ford. This is a program conducted to
retain the old customers of the Ford. The old customers of the Fortune Ford are meet
personally and they are requested to give their feedback by filling in the questionnaire
which is specially prepared for them in this questionnaire their problemes regarding the
vehicle and also their post sale service experience are taken If there exists any problem
then the Fortune Ford service men try to resolve the problems of their customers as soon
as possible and makes the customer satisfied. This is a technique to attract the new
customers by satisfying the old customers and gaining good will in the market.
2.2.5 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 Consultant's 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
through demonstration of the vehicle features and benefits will be made.
 A test drive will be offered to all the customer
 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.
2.3 Maintaining service standard
 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 customer's 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 first visit.

 The vehicle is ready on the agreed upon time.

 A through explanation of work is done, warranty coverage and charge is given to

the customer
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  All service repair work will be followed up within five working days

 Each vehicle will be cleaned upon retruning to the customer.

2.4 Ford Sale by Markets

Fords marketing intent is to capitalize on safety and efficiency and provide the
global markets with awareness and interest of their new hybrid vehicles to
ultimately influence trial and action. As a result, an increase in global market
share and brand equity will provide ford with increased revenues and leverage
against Toyota and their hybrid campaing. Below is the current state of fords
growth the past four years and shows where ford should capitalize its efforts.
(000 units)

3500

3000

2500

2000

1500

1000

500

0
North America Europe South America Asia

2006 2007 2008 2009

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2.5 Safety Regulation of Ford
As the road conditions of south east Asian countries are very bad a car needs to be very
sturdy in design and should have better build quality and better suspension than European
models. But the quality of automobiles in Nepal and India is degrading day by day. Many
cars manufacturers don’t consider adding safety features in cars. Most of the cars
imported in Nepal have very bad build quality and most of the cars have only 2 star
safety rating and some of them even don’t do safety test approved by global standard but
only claim that their cars have supreme build quality. Ford being a globally renowned
brand focuses on the build quality of their vehicle. Ford vehicles are priced little higher
but the safety they provide at that range is incomparable to other cars. 70% of the people
while buying car in Nepal don’t care about the safety. Many people go for mileage and
economy but the major factor of higher sale of ford cars in Nepal is because of their
supreme build quality and higher safety than other cars. Some of the safety features
provded by the ford cars are as follow:
1. Airbags
Ford cars come with driver, passenger, curtain and side airbags - that’s 6 in all, to give
your family the protection it deserves. The Ford Endeavour, in fact, comes with an
additional driver's knee airbag as well. All with advanced sensors that ensure a swift and
controlled response on impact.
2. Emergency assist
Emergency Assist is a potentially life-saving component of Ford SYNC. In the unlikely
event of an accident that activates an airbag or shuts off the fuel pump,
SYNC Emergency Assistance automatically calls emergency services and shares your
exact GPS location.
3. Better Braking
Anti-lock Braking System (ABS) with Electronic Brake Force Distribution (EBD)
balance brake force between front and rear wheels and prevent wheels from locking. This
increases the overall stability of the vehicle and easy to cruise in high speed without any
worries. Anti-lock Braking helps to come to a sudden stop without locking the tires
which improves control over the vehicle.
4. Superior material
All Ford vehicle’s fuel lines are manufactured with alloys that are more conductive,
which prevents sparks. Fuel tanks in Ford vehicles are reinforced and laid out in a manner
that ensures that they remain intact even on impact. Additionally, fuel supply to the
engine is cuts off automatically in case of any impact on the fuel tank.
5. Better wiring

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Ford vehicles use only thick gauge wires to enable better load distribution and higher
load capacity. Special wire clamps are imported to satisfy the highest standards of safety
we set for ourselves at Ford. Additionally, the wire insulation has a special anti-static
coating that keeps electric impulses flowing without any chance of accumulation.

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