T oday¶s society is warm with urbanization and demonstration effect. With a view

towards it, there are drastic changes coming up in all sectors even in the automobile industries. The following information gives an insight about it. In the present context the companies operate on the principle of nat ural selection ± ³Survival Of The Fittest´. Only those companies will succeed which at best match to the current environmental imperatives ± those who can deliver what people are ready to buy. But real marketing does not involve the art of selling what t he manufacturers make. Organizations gain market leadership by understanding consumer needs and finding solutions that delight consumers. If customer value and satisfaction are absent, no amount of promotion or selling can be compensate. Hence the aim o f marketing is to build and manage profitable customer relationship . This is a part of the strategic marketing done by every company to achieve it objectives and goals. To maximize the profits and longterm plans every organization has to follow a strategic planning. Marketing is much more than just an isolated business function ± it is a philosophy that guides the entire organization towards sensing, serving and satisfying consumer needs. The marketing department cannot accomplish the company¶s c ustomer relationship-building goals by itself. It must partner closely with other departments in the company and with other organization throughout its entire value ± delivery network to provide superior customer value and satisfaction. Thus marketing ca lls upon everyone in the organization to ³think customer´ and to do all they can to help build and manage profitable customer relationship. Marketing is all around us, and we need to know that it is not only used by manufacturing companies, wholesaler and retailers, but also by all kinds of individuals and organizations There are four major, powerful themes that go to the heart of modern marketing theory and practice, they are: 1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS. 2. BUILDING AND MANAGING STRONG BRANDS. 3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE. 4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE. What marketing is what it does and what it offers ?


³Marketing is a social and managerial process whereby individual and groups obtain what they need and want through creating and exchanging products and value with others.´ ³Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.´ ³Marketing offers some combination of products, services, information, or experiences offered to a market to satisfy a need or want´ Marketing is an orderly and insightful process for thinking a bout and planning for markets. The process starts with researching the market place to understand its dynamics. The marketer uses research methodologies to identify opportunities, that is, to find individuals all groups of people with unmeet needs or lat ent interest in some products or service. The marketing process consists of the following: 1. Analyzing marketing opportunities. 2. Developing marketing strategies. 3. Planning marketing programs 4. Managing the marketing efforts. Before taking any decision and achieving the goals, it has to make analysis of what to do, how to do, when to do, where to do and who is to do it. This is nothing but strategic planning. Goals indicate what a business units wants to achieve whereas strategy is how to get there. Marketing strategies in simple terms are the complete and unbeatable plans designed specifically for attaining the marketing objectives of the firm. Marketing can be called as a game plan for achieving its goals. Strategy choice will depend on whether the firm or the marketer plays the following roles:  Market leader  A challenger  A follower  A nicher The identification of objectives, both in quantitative and qualitative terms, is an essential backdrop to strategy formulation. Goals have a quality and time frame att ached to them. These are typically spelt out in terms of financial return, market share, market presence, etc. [2]

Thus, the concept of market oriented strategic planning arises with the link between the products the link between the products the manufacturer is dealing in and the market conditions. In this direction, our study deals only with the marketing strategies i.e. promotional strategies of the Ford automotives.



One of the fastest growing industries in the world is automobile industry. This automobile industries even has its influence on the Indian market. Probably automobile industries occupy a large market share in the worlds market as well as in the Indian market. Nearly 18% of the total national income is being incurred from the automobile industry. From this we can estimate how important is the automobile industry in the improvement of GDP of a country. In India automobile industry has a growth rate is at the average of 10-12%.

Its fascinating drive through history, which begins as a story of isolation and missed opportunities to one of huge potential and phenomenal growth. India¶s fixation with socialism and planned economies had a crippl ing impact on the automotive industry in its formative years. The goal at that time for independent India was self-sufficiency. Issues like quality and efficiency were simply not considered. Dependence of foreign technology was banned and manufacturers were forced to localize their products; import substitution became the order of the day. Though we learnt to localize, the cars we made were all outdated designs with little or not improvements for decades. The automotive industry stagnated under the gov ernment¶s stifling restrictions and the Indian car buyer was saddled with cars of appalling quality and even then there was a waiting list that at one point stretched to eight years! This attempt at self -reliance failed miserably because of the industry¶s isolation from the best technology. The Japanese and later Korean auto industries were also highly protected in their formative years but they never shut the door on technology. Instead, they relentlessly tapped the best talent pools in the world to abs orb the know-how to produce good cars. One of the most important chapters in the Indian automotive industry¶s history was written by Maruti. It marked the Indian government getting into the far business in the early 1980¶s, a radical shift in thinking aft er decades of treating cars with disdain. The Maruti 800 went on to become the staple car of India and put a nation on wheels. This little car set a benchmark for price, size and quality and structured India as small car market. It wasn¶t till 1993 that things really started to change for the Indian car buyer. With the liberalization of the economy, a host of international carmakers rushed in. But most of [4]

them were in for a shock as Indian customers rejected their product. Indian customers refused to allow the glitter of prestigious brands blind them to the outdated and overpriced products they were offered. The Indian consumer wanted super value, and rewarded the brands that delivered it, handsomely. Hyundai and Maruthi delivered, and profited. The period also saw the emergence of the Indian players like Tata Motors and Mahindra & Mahindra. They rose to the challenge of the MNC¶s and responded brilliantly with the Indica and the Scorpio. This was ironically due to the license raj that forced Indian carmakers to be innovative and develop products frugally. carmakers are preparing to setup major capacities here. India is changing. And changing fast. It¶s moving forward. India¶s largest-selling car is not its cheapest car, the 800. It is the Alto. People¶s aspirations are rising and so are their mistakes, have got their finger on the pulse of the market. Get the right product and the rewards are handsome. The Indian auto industry is today bubbling with promise and confidence. It¶s been a long journey but to see where the Indian car industry is going. We have to see where it has been. India¶s frugal engineering skill has now caught the world¶s imagination, and an increasing number of

The first motorcar on the streets of India was seen in 1898, Bombay had it first taxicabs by the turn of the century. In 1903, an American company began a public taxi service with a fleet of 50 cars. For about 50 years after car arrived in India, cars were directly imported. Before World War I, around 40,000 motor vehicles were imported. During the years between the wars, a small start for an automobile industry was made when assembly plant were established in Bombay, Calcutta and Madras. The import/assembly of vehicles grew consistently after the 1920s, crossing 30,000 units by 1930. It was during the end of the war that the importance of establishing an indigenous automobile in India was realized. Premier Motors, Hindustan Motors and Mahindra & Mahindra set up factories in the 1940s for progressive manufacture rather than assembly from imported components. The cars they chose to make were the latest in the world when they were introduced in India in the formative years of the industry.

The government clamped down on imports and foreign investments. Companies like GM and Ford packed their bags and left. India¶s clock, thereafter, stood still while the [5]

world raced on ahead. It would take nearly 50 years before the Indian auto industry could catch up with the rest of the world again.

In January 1985, the government announced its famous µbroad banding¶ policy which gave new licenses to brad groups of automotive products such as two and four wheeled vehicles. Through a liberal move, the licensing system was very much intact. A manufacturer had to submit a phased -manufacturing programme to the Ministry of Industry specifying the indigenization progress and allowing for almost complete indigenization within five to seven years. The biggest hurdle was the foreign-exchange clearance required for these projects. Except for MUL, which had direct access to policy makers, every other manufacturer still faced a series of obstacles. Several new products were launched during this period . All three traditional carmakers added new models to their ranges ± Standard Motors returned to the car business after 10 years, when in 1985 it introduced the Standard 2000, a Rover SD1 body with the old two-litre Vanguard engine. HM bought in a 1972 V auxhall Victor in 1985, transplanted its ageing Ambassador engine into it and the Contessa was born.

In 1957, a small tail fin was added on either side of the rear fenders, along with a new, dimpled hood, and the car was re -christened the Ambassador Mark I. The car cost Rs.17,000. In 1963, it underwent a frontal facelift with a closely checkered grille and was named the Ambassador Mark II. It would be another 12 years before the Ambassador got a facelift. In 1975, another minor facelift to the same grille and a much bigger frontal facelift turned out as the Mark III. The Mark IV, launched in 1979, was the last of the Mark cars. The Ambassador Nova was launched in 1990, followed by Ambassador 1800 ISZ three years later. The Nova was the last Ambassador powered by the 1489cc petrol engine. In 2004, HM launched the cosmetically -revised Ambassador under the Avigo name. Designed by Mavendra Singh, the retro look Avigo had classic touch internals like a centrally mounted console, beige -colored seats and wood finish interiors.


The Hindustan Contessa, launched in 1982, was one of t he few luxury cars manufactured in the country in the 1980s and 1990s. It was based on the 1970s vintage Vauxhall victor. While it was initially launched with the 1489cc engine found in the Ambassador, the Contessa was soon given the Isuzu engines. Ther e were three versions of this car - 1.8GLX (Isuzu petrol), 2.0DLX (Isuzu diesel) and the rare 2.0T (Isuzu diesel, turbo). The last Contessa rolled out in 2002, phased out by the demand for cheap Some of the leading Indian auto players in I ndian automobile industry are:  Premier,  Tata  Mahindra and Mahindra  Maruthi  Hindustan motors Japanese cars.

The story of premier is the story of one mans vision, Seth Walchand Hirachand. He not only give India its first car factory but also the country¶s fi rst aircraft factory ± Hindustan Aeronautics Limited and the country¶s first Shipyard Limited modern ship yard, Hindustan

Building India¶s first auto factory
Seth Walchand Hirachand has first started the trails to establish an Indian car manufacturing plant in Indian for which he went to U.S.A. where three largest car manufacturing companies are located. He wants Indian company to be completely independent, with Indian management capital and employees, paying royalty or technology transfer payment to western countries. After approaching General Motors they insisted on part ownership. Seth Walchand then moved to second largest automaker Ford; Henry agreed, but delegated the project to Ford of Canada, which refused. Finally the third largest automaker Chrysler agreed and singed in an agreement in Bombay in 1940.


The arrival of FIAT :

In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the tariff commission spelled out future for the auto industry ± indigenize or get out. Companies like Ford and GM, which had assembly operations in India, packed their bags and went home. DELITE in India. The biggest customers for PAL¶s were Bombay¶s taxi drivers. The Padminies were easy for maintenance in terms of spares and lab our cost, low on running cost, easy to drive and reasonably tough. It was everything that a taxi driver wants. But fiat decided to stick it out and committe d itself full-fledged manufacture of the Millicento in 1954. In sep 1964, PAL and FIAT launched the Fiat 1100

TAT A Motor s:
Established in 1945, Telco or the Tata Engineering and Locomotive Company, as its full name suggests, started out making steam locomotives for the Indian Railways. Telco¶s tryst with vehicle manufacture came in 1945 when it signed a 15 -year agreement with Daimler-Benz AG of Germany to manufacture commercial vehicle. The director in charge from the Tata side was Sumant Moolgaonkar . This period was a shared birthing time for the Indian commercial vehicle industry ± Premier Automobiles in league with Chrysler, Hindustan Motors with General Motors and Ashok Leyland with British Leyland ± which all started truck production around the same time. Telco¶s biggest triumph came in 1985 in the LCV segment. The Tata 407, a brand new product from bumper to tail-light, was designed and marketed by Telco to take on the technically superior Japanese products. The 407 immediately captured 70 pe r cent of the market. The TATA SUMO, launched in 1994, turned out to be the success story of the decade. The Sumo was conceptually a brilliant vehicle. And it was also a product of the government¶s eccentric excise duty regulations at that time. 1998 was a landmark year for Tata ± it launched the Tata Safari. Unlike the Sierra, Estate and Sumo that were designed and developed using rudimentary manual methods, the Safari was made with modern manufacturing and design processes to ensure new-found levels of quality and to take the company a step closer to its ambition of becoming a global carmaker.


Yet, the most important landmark of 1998 was not the Safari. On 30 December 1998, Tata officially launched the much -awaited Indica. 2001 also saw the company exit its joint venture with Daimler-Benz. In 2002, Tata launched the Indigo saloon, based on the Indica platform. On 29 July 2003, J R D Tata¶s birth anniversary, the company was renamed Tata Motors Limited. The Tata juggernaut continued to roll across the Indian auto industry with the launch of the Indigo Marina in 2004.

The story starts some time in the 1940¶s. Pandit Nehru has a dream of building a modern, industrially advanced nation. And inspired by Nehru¶s vision are two brothers, Kailash Chandra Mahindra and Jagadish Chandra Mahindra. K.C.Mahindra during his tenure in the United States had met Berney Roos. Roos was the inventor of rugged µGeneral Purpose¶ vehicle or the Jeep. The Jeep had earned reputation in the battle fields of World War II. On October 2 nd 1945, the Mahindra brothers joined hands with Ghulam Mohammed to set up a company to assemble American Willys Jeeps in India. The collaboration between M&M and its original partner Kaiser Jeep Corporation and later American Motor Corporation is for the phased manufacture of CJ3B Jeep. The company is named Mahindra and Mohammed. But after Independence Ghulam Mohammed migrates to Pakistan. With his departure Mahindra & Mohammed is renamed by Mahindra & Mahindra in 13 th January 1948. The first vehicles are assembled in Mazaogaon in Bombay. The first M&M built Willys Overland Jeep rolled out of the Mazaogaon plant on 3 June 1949. Five years later, in 1954, the first completely indigenous Jeep rolled out of the factory floor. At one point 70 per cent of the sales were assured by army and government.

Vehicle model
Mahindra MM 540 Commander Mahindra Armada Voyager van Escort (M&M-ford) Bolero Scorpio [9]

Year of launching
1985 1991 1993 1996 1996 1996 2002

Scorpio launched in 2002, a completely indigenous product that took Mahindra &
Mahindra 6 long years to design and develop. The Scorpio has played a critical role in changing the perception and brand image of the country. The 2.6 litre turbo -diesel engine developed 109bhp. The Scorpio has been the vehicle of M&M¶s change, from a utility vehicle-maker to a lifestyle SUV manufacturer.

It began with the promise of being the µPeople¶s Car¶. The car never went into production and the company went belly -up in 1977. Six years later, it rose like a phoenix from the ashes and changed the Indian automotive sector forever. The company ± Maruthi Udyog Limited. The story of Maruthi dates back to the 1970¶s. Indira Gandhi was the prime minister of India. Her son, Sanjay Gandhi, envisioned the manufactured of an indigenous cost-effective, low-maintenance compact car for the Indian middle -class. The Cabinet passed a unanimous resolution for the development and production of a µPeople¶s Car¶. The name of the car was chosen as µMaruti¶.

The Car that changed India:
The Maruthi 800 was essentially a Suzuki SS80, which was called the Fronte in Japan and Alto in most of the other markets. The 796cc, in-line, three-cylinder power plant produced 39.5bhp at 5500rpm. Maruthi marked the beginning of a revolution in the Indian automobile industry. The Maruthi 800, with its compact size, nimble handling and perky engine, offered the Indian motorist a cheaper, friendlier alternative. On 14 th December 1983, Harpal Singh became Maruthi¶s first customer as he received the keys of h is Maruthi 800 car from Prime Minister Indira Gandhi. The car cost Rs.48,000. The new Maruthi, launched in June 1986, cost approximately Rs 15,000 more than the outgoing model.

The new Maruthi:
In 2005, Maruthi launched the Swift, for the first time in its 20-year history. The Swift signaled the importance of the Indian market in the world. A team of engineers from Maruthi worked on the design of the Swift in Hamamatsu, Suzuki¶s headquarters in Japan.


Maruthi 800 Maruthi Omni Maruthi Gypsy Maruthi 1000 Maruthi Zen Maruthi Esteem Maruthi Baleno Maruthi Wagon R Maruthi Alto Maruthi Versa Maruthi Swift Maruthi Zen Estilo Maruthi SX4 Maruthi Suzuki Grand Vitara

Year of launching
1983 1984 1985 1990 1993 1994 1999 1999 2000 2001 2005 2006 2007 2007

The other cars which have their share in the Indian Auto Mobile industry are:
The Indian auto industry has exploded in the last 14 years. And car markers are learning some very hard truths. While the economic reforms process was kicked of f in 1991, it was only in 1993 that the automobile industry was finally delicensed and the restrictions were removed. Between 1993 and 95, government regulations limited a foreign company¶s stake to a maximum of 51 percent of the equity. Hence the only method of entry for an MNC then was through a joint venture with a local partner. The most preferred partner was an existing automaker. In 1994 -95 saw the announcement of quite a few JV¶s.  Premier and Peugeot to form PAL -Peugeot.  GM and CK Birla to form GM India.  Mercedes Benz and Tata Motors.  M&M and Ford to form Mahindra-Ford India. In 1995, the government announced its decision to allow foreign auto companies to enter with a 100% stake or wholly -owned subsidiaries. This changed the dynamics of joint ventures in India.


The other automobile industries which play a crucial role in the India n automobile industry are:  Daewoo Motors India.  General Motors India  Mercedes-Benz  Hyundai Motors  Honda SIEL  Toyota  Skoda India



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factories, highly paid workers, and low prices revolutionized manufacturing and came to be known around the world as Fordism by 1914.


Henry Ford (ca. 1919)

Ford was launched in a converted factory in 1903 with 

28,000 in cash from twelve

investors, most notably John Francis Dodge and

orace Elgin Dodge who would later

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

Cor orate governance:
Members of the board as of early 2007 are: Chief Sir John Bond, Richard Manoogian, Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), Edsel Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr., John L. Thornton and William Clay Ford (Director Emeritus). [8] The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG) and Ford of Europe), Mark Fields (Executive Vice President, President [The Americas]), Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice President, President [International Operations]) and Michael E. Bannister (Group Vice [15]

President; Chairman & CEO Ford Motor Credit).[9]. Paul Mascarenas (Vice President of Engineering, The Americas Product Development)

Ford started its innings with the Mahindra -Ford joint venture formed in 1994, which produced the Escort out of M&M Nashik plant. After meeting initial success, sales of the Escort was finally replaced by the Ikon in 1999. The Ikon marked a new beginning for Ford in India. It rolled out of the Marajmalaingar plant near Chennai and by now, the company had parted ways with M&M and was renamed Ford India Ltd in 1998. The Ikon was the first model by a multinational to be developed specifically for India. T hough it was based on the Fiesta, it was a unique body style and was offered and was offered with an option of three engines, including a diesel. The car was a big hit. The Ikon underwent several face -lifts and price cuts to keep demand high. However, fresher competition and a reputation for high -maintenance saw sales gradually decline. After the arrival of the modern and highly -capable Fiesta, another made-for-India car, with state-of-the-art engines, the Ikon has been marginalized. The Fiesta has picked up where the Ikon left and is selling well. Though the Ikon and Fiesta have been the mainstays of Ford¶s production in India, the company has had limited success with other models. The Mondeo, launched in 2001, was a very talented car by was simply n ot suited to Indian conditions and earned a reputation for being exorbitant to maintain. The Endeavour SUV was launched in early 2004 and has sold well for its niche. The Endeavour has recently been upgraded in 2007 and this has boosted the appeal of the big SUV. In 2004, Ford launched the Fusion, which has received a lukewarm response though the recent diesel variant has perked up sales.

Fortune Ford is an authorized dealer for Ford India Limited, who are one of the
leading manufacturers of top quality cars in India, with many variants in the offering.


Fortune Ford is a 50:50% Joint Venture set up between two well known and

reputed families in Hyderabad, the Modis and the Babu Khans. Fortune Ford is a blend of experience and youth. The experience and good will that Mr. Misbahuddin Babu Khan and Mr. Pramod Modi enjoy blend very well with the youth and energy of the youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world class Ford Dealership.
Fortune Ford markets and services the recently launched truly European Ford

Fiesta, the ever-popular Ford Ikon Flair, the No non-sense car Ford Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales outlet is located strategically at Somaji guda next to Eanadu. We have two service centers, one at Chapel Road, Abids opposite Stanley College and other one at Fathebagh, Santhnagar. These centrally located outlets provide convenient and easy access to both the proud owners as well as prospective buyers. The workforce at Fortune Ford is committed to excellence in serving all esteemed customers. The Sales Team is made up of dedicated showroom and field executives who are professionally trained by Ford India Limited. They are adept at guiding the cu stomer through the entire sales process right from assisting in the choice of model, colour and features to lending a helping hand in providing attractive buyback options and also arranging finance at competitive rates. The Service Centre is armed with the state-of-the art equipment and is in -line with Ford's exacting Global standards. The service team is technically qualified and trained to analyze and provide solutions adhering to Quality Care, in order to satisfy even the most demanding customers. The Fortune Ford dealership maintains a high standard of excellence in sales and services by sending its personnel for training on a regular basis to Ford India Limited, to update them with the latest technological advances in the automotive sphere.

We have 5000 sft centrally air conditioned showroom, located in the heart of the city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes convenient for almost every one residing in and around Hyderabad and Secunderabad. [17]

The facilities offered from the showroom are :
1 . Very easy finance facility with in-house finance team to cater to your every car finance

requirements. All the leading finance counters are available like ICICI, HDFC,


2 . Exchange offer for any of your used car. Free spot evaluation for any usedcar. 3 . Professionally trained and courteous sales staff to take care of every relevant needs of

the customers.
4. Ford preferred insurance for cashless transactions in the event of claims. Special offers

on Insurance renewals. You can also renew your insurance by just making call to our Service marketing help line 9848885962.
Showroom @ Somajiguda

5.Full range of Ford cars with all colors and models to choose from. 6. A good stock of Ford genuine accessories to make your Ford ownership more delightful

and safe.
7. A well maintained fleet of test drive cars to give you the feel and experience the drive

dynamics on actual driving conditions before take the purchase decisions. You can call our sales help line for test drive or fill the on -line test drive requisition f orm.

Significant milestones

The first Indian built Ford Escort rolled off the assembly line in 1996.



The Company was able to deliver Ford Escorts in seven major cities simultaneously, in just a month after booking. The Special Value Pack program was launc hed in 1997, with commemorative 'Freedom', followed by the petrol and diesel driven 'Anniversary'. Recent SVPs have included the Orion, Alpha and Sport - E. Ford Escort won the J D Power Award in India Quality Survey in 1997. Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in the Customer Satisfaction Survey. QualityCare, Ford's branded service initiative, provides car owners with superior services at its dealership countrywide. The new, integrated manufacturing plant was de dicated in March 1999, where FORD IKON is manufactured. Ford India launched Ford Assured on April 24 2000, a new initiative to buy and sell used cars of all makes. On September 11, 2000. Ford India launched the Ford IKON SXi ± the stylish µjosh¶ machine Ford India has started exporting Ford IKON Ford India launched the Ford Mondeo.


y y






2001 2002 y y

Ford India show cases a wide s ectrum of exciting cars at the Auto Ex o

Ford India Limited announced a strategic partnership with Hindustan Motors Limited (HML). Certified QS 9000: 1998, 3 rd edition on March 21, 2002 Ford India received the QS 9000 award from TÜV Süddeutschland. New Ikon Variant 1.6 EXi was launched



y y y y y

The New Ford Ikon NXT launched - The Next Level of Josh. Adding Refinement to Josh - Ford India launches Ikon NXT µFinesse.¶ Ford Celebrates Centennial in India.
Ford India launches Ikon NXT SXi.

Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study. [19]


Ford launches Ikon Flair at Rs. 4.95 Lakhs.

2004: Autocar SUV of the Year ± Winner Ford Endeavour. 2007:

FORD Motor Company of Southern Africa achieves three wins and two seconds on this year total economy run DOE AWARDS FORD two grants for vehicle fuel efficiency research . FORD MONDEO IS AUTO EXPRESS car of the year. LAND ROVER DISCOVERY 3 scoops category win at TOWCAR AWARDS 2007 FORD MONDEO is the Caravan Club TOWCAR of the year 2008.

y y y y

ARVIND MATHE ± Managing Director and President

Arvind Mathew is the Managing Director and President of Ford India. He took this position in August 2005.

LUCY MILLAR ± Vice President, Finance & IT

Lucy is the Vice President of Finance and IT at Ford India. She took up this position in May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India.


± Vice President, Marketing, Sales &

Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He took this position in July 2006. Sc ott reports to Arvind Mathew, President and Managing Director, Ford India.


NANCY REISIG ± Vice President, Human Resources

Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford India.

SANDIP SANYAL ± Vice President, Su Management

ly and Total Value

Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford India. He took this position in September 2005. S andip reports to Arvind Mathew, President and Managing Director, Ford India.
STEVE BRIDGMAN ± Country Manager, Ford Credit





Type Construction Fuel System Displacement (cc) Compression Ratio Max. Power (ps/rpm) Max. Torque (nm/pm) Emission Stage
erb eight ( g)

4 Cyl. In ± Line, 16 ± V DOHC All Aluminium Alloy SEFI 1596 9.75:1 101 / 6500 146 / 3400 Bharat Stage III 1143 Manual 5 Speed 174 11.3

Transmission MaxS eed ( Kmph) Mileage




(4X2) (4X4)

16.16 17.17

Type Displacement (cc) Max. Power (PS/rpm) Max. Torque (kgm/rpm) Ignition System Valve System Fuel System Emission Compression SOHC, 12 Valves Indirect Injection Mechanical Pump Exhaust Gas Recirculation (EGR) Meeting Bharat Stage III Norms
erb eight ( g)

2.5 litre, 4 Cylinder in-line, Turbocharged & inter-cooled diesel 2499 116/3500 28.5/2000

1933/1958 Manual 5 Speed 142 8.2

Transmission MaxS eed ( Kmph) Mileage




1.4 EXI

1.6 ZXI

1.6 SXI

1.4EXI (TDCi)

1.4 ZXI (TDCi)

1.4 SXI (TDCi)

Price(in lacs)








4 Cylinder in-Line, 16 Valve DOHC

4 Cylinder in-Line, 8 Valve SOHC

Construction Fuel System Displacemen t Compression Ratio Max. Power Output Max. Torque Nm/rp m Emmision Compliance
Transmission Ty e erb eight ( g)

All-aluminium Alloy SEFI cc 1388 1596 1596 High Pressure Common Rail 1399 1399 1399

9.75:1 82/6000

9.75:1 101/650 0

9.75:1 101/650 0 146/340 0

18:1 68/4000

18:1 68/4000

18:1 68/4000


127/400 0

146/340 0

160/200 0

160/200 0

160/200 0

Bharat Stage III 5 Speed Manual

MaxS eed ( Kmph) Mileage

170/178 14.75/13.6



PRICE(lacs) Engine:

5.50 4 Cylinder, 8-V SOHC, Rocam Petrol SEFI 1299 70/5500 105/2500 5 Speed Manual 978 148 10.8

Type Fuel system Displacement (cc) Max. Power (ps/rpm) Max. Torque (Nm/rpm)
Transmission Ty e erb eight ( g) MaxS eed (Kmph) Mileage



PRICE(lacs) Engine:


Engine type Displacement Max. power Max. torque Compression ratio Valves Fuel injection Emission level Construction
Transmission Ty e erb eight ( g)

2.0L 16V DOHC Petrol 1999 cc 142.7 PS/6000 rpm 185 Nm/4500 rpm 10:8:1 16V DOHC Sequential electronic fuel injection (SEFI) Bharat Stage III All Aluminium Alloy
Ford MTX-75 manual 5-s eed with synchromesh

MaxS eed (Kmph) Mileage

200 8.6




evelopment of marketing program requires an in -depth analysis of the market. his analysis may make extensive use of market research as an input into the planning process.

arketing Strategy and analysis arget marketing process arket planning program devel opment target market

promotOpportunity analysis Identifying markets Product decisions

ion to
Promotional decisions

Ultimate consumer

final buyer 
 Consumers Businesses

Pricing decisions Competitive analysis Market segmentation

Target marketing

Selecting & Target marketing

Channel of distributio n decisions 

Advertising  Direct marketing  Interactive marketing  Sales promotion  Publicity and public relations  Personal selling

Purchase Promotion to trade

Positioning through marketing strategies



This input, in turn, provides the basis for the development of marketing strategies in regard to product, pricing, distribution and promotion decisio ns. Each of these steps requires a detailed analysis, since this plan serves as the road map to follow in achieving marketing goals. Once the detailed market analysis has been completed and marketing objectives have been established, each element in the market mix must contribute to a comprehensive integrated marketing program. maximum impact. Of course, the promotional program element must be combined with all other program elements in such a way as to achieve

Formulating the marketing strategy:

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

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


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

As such, the question, which

segment/segments, the firm should select as its target market, assumes crucial

Market Segmentation is ³dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action´, which was said by Eric N.Berkowitz, Roger A.Kerin, and William Redulius. The Segmentation process involves five distinct steps:  Finding ways to group consumers according to their needs.  Finding ways to group the marketing actions ± usually the products offered ± available to the organization.  Developing a market-product grid to relate the market segments to the firm¶s products or actions.  Selecting the target segments toward which the firm directs its marketing actions.  Taking marketing actions to reach target segments. Markets can be segmented using several relevant bases. education level etc, form one base for segmentation. The various types of segmentations are  Geographic segmentation  Demographic segmentation [29] For example,

demographic characteristics of consumers, such as age, sex, income/purchasing capacity, Geographic characteristics constitute another; and buying behavior of the consumers forms yet another base. 

Psychographic segmentation  Buyer behavior  Benefits segmentation  Volume of purchase segmentation

Positioning is a platform for the brand. It facilitates the brand to get through to the target consumers. It is defined as ³the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it mean ingfully apart from competition.´ Positioning is the act of fixing the locus of the product offer in the minds of the target consumers. In positioning, the firm decides how and around what parameters, the product offer has to be placed before the target c onsumers. The significance of product positioning can be easily understood from David Ogilvy¶s words: ³The results of your campaign depends less on how we write your advertising than on how your product is positioned´.

Definitions of roduct ositionin g: Sengu ta , in his book Brand Positioning says, ³ The aim of product positioning is to

create a perception for our brand in the prospect¶s mind so that it stands apart from competing brands« we must cover that space in the consumer¶s mind as if we had won a long-term lease. We must find a strong position in that mind and sit on it«.´
Micheal Rothschild , in his book Marketing Communications ± From Fundamentals to

Strategies says, ³Positioning refers to the place a brand occupies in the mind in relation to a given product class. This place was originally a product-related concept«. Concerning market structure. The concept now refers to the place that the brand holds in the consumer¶s mind related to perceptions and preferences´.

Develo ing a Positioning Strategy:
To create a position for a product or service, Trout and Ries suggest that managers ask them selves six basic questions. 1. What position, if any, do we already have in the prospect¶s mind? [30]

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

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

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


In deciding the Brand positioning , the issues are: Which are the competing brands in the chosen product category? What are the unique claims/strengths of the various brands? [31]

What position do they enjoy in consumer¶s evaluation and perception? What is the most favoured position«? And yet vacant? Can the new brand claim the needed distinction and take the position and satisfy the need? The major dimension of marketing strategy relates to positioning of the offer. The firm has already selected the target market and decided its basic offer. Now, what is the conjunction between these two entities? How do they get connected? What is the interface? In other words. What is the locus the firm seeks among the customers in the chosen targer market with its offering? How would the firm want the consumer to view and receive the offer? These are the issues the firm has to grapple with in positioning. And, while formulating the marketing mix too, the firm will agitate over these issues. The Product Differentiation and Positioning discusses the mul tifarious issues involved in the subject.

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

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


The prom otional mi x


Direct marketing

Interactive/ internet marketing

Sales promotion

Publicity/ Public

Personal selling 

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

Direct Marketing: ne of the fastest-growing sectors of the .S. economy is direct marketing, in which organizations communicate directly with target customers to generate a response and a transaction. It has become such an integral part of the I direct marketing as a component of the promotional mix. irect arketing is much more than direct mail and mail order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing and direct response ads through direct mail, the Internet, and various broadcast and print media. program of many organizations and often involves separate objectives, budg ets, and strategies, we view


One of the major tools of direct marketing is direct res onse advertising , whereby a product is promoted through an ad that encourages the consumer to purchas e directly from the manufacturer. 

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

Sales Promotion:
The next variable in the promotional mix is sales promotion, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales, sales promotion is generally broken into two major categories: Consumer-oriented and Trade-oriented activities Consumer-oriented sales promotion is targeted to the ult imate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers, distributors and retailers. 

Publicity/Public Relations:
Publicity refers to non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial or announcement about an organization and its products and services. company. An advantage of publicity over other forms of promotion is its credibility. a mass medium such as TV, radio or newspapers. [34] Another advantage of publicity is its low cost, since the company is not paying its time or space in Like advertising, publicity is not directly paid for by the

Public relations are defined as ³the management function which evaluates public attitudes, identifies the policies and procedu res of an individual or organization with the public interests and executes a program of action to earn public understanding and acceptance´. Public relations generally have a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics. 

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


Product differentiation based on o erational 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: ³ fix it right-the first time-on time´. Ford is also supplying videotapes showing how repairs have to be done.

Ado ting Offer to Suit Target Segment:
Ford modifies its models for India:

Ford modified its models for the Indian target segments as shown below:  Higher ground clearance to make the car more compatible to the rougher road surface in India.  Stiffer rear springs to enable negotiating the ubi quitous 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. µFORD IKON¶ AND µFORD 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. µFORD FIESTA¶, µFORD 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. µFORD ENDEAVOUR¶ occupies this segment.

Strategic Promotions by FORD:
Ford follows the promotions at two levels, they a

1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level. In the first step the products of vehicles manufactured by the Ford Automotives are directly promoted by the manufacturer by himself. He follows many promotional strategies like 1. Advertising through television and newspaper. 2. Internet or interactive marketing. 3. Direct marketing. 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 news papers, 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.

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 giv en 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.

Relationshi Marketing:
Fortune Ford pays a special attention towards its old custom ers. 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 relationshi p with the customers and gains the reputation and goodwill in the minds of the customers.

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. Cor orate 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, Managers 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. [38]

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.

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 problems 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 goodwill in the market.

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


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 the first visit.  The vehicle is ready on the agreed upon time.  A through explanation of work done, warranty covera ge and charges is given to the customer.  All service repair work will be followed up within five working days.  Each vehicle will be washed before being returned to the customer.



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

hat is Extended


j Factory Warranty covers only for a specific period of time/mileage. j After the factory warranty expires, customer is exposed to the risk of parts failures.

This is applicable for any machine/equipment/vehicle.



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


Why is extended warranty needed? j Offers peace of mind motoring j Protects against unexpected and non -budgeted expenses j Can be transferred, hence increases the resale value. What does it NOT cover? j Does not cover wear and tear of parts j Does not cover scheduled service items j Does not cover accident repairs Benefits to customer j Protection from manufacturing and material defects j Car can be repaired at any Ford out let across the country j Unlimited number of claims j No excess to pay j One up-front payment only j Inflation protection from rising costs of parts and labour j All repairs carried out by qualified Ford technicians j Warranty can be transferred when vehicle is sold ± better resale value j Total peace of mind

What is Total Maintenance Plan? j Cost of ownership is the key factor while considering vehicle purchases j As part of regular maintenance, customers spend on

a) Maintenance parts that are to be replace at specific intervals b) Replacement of worn out parts c) Labour charge for the above


j A comprehensive maintenance plan by Ford will serve as a good tool to improve

the service experience and minimize concerns on cost of ownership of the vehicle
j Total Maintenance Plan (TMP) is a complete service solution provided to the

customer. This enables the customer to have total peace of mind in the form of a ³Maintenance Holiday´
What does it cover? j Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark plugs etc. j Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch Plates,

Lower Suspension Arms, Shock Absorbers etc..
j Mechanical/Electrical repairs j Labour for all the above What does it NOT cover? j Accident repairs j Tyres j Fuel Benefits to the customer j Total peace of mind j Fixed price for next 2 to 3 years j

Increased residual value of the car

j Only Ford genuine parts are used j Can avail this service across the country at all Ford authorized outlets j Transferable j Incase of total loss, can be cancelled j Ford factory backed programme j Diagnosis/repairs as per recommended standards and practices j Vehicles serviced by Ford trained and certified technicians













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