INDUSTRIAL REPORT ON FORD MOTOR

CHAPTER 1 INTRODUCTION
Today’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 natural selection – “Survival 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 the 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 of 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 customer 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 calls upon everyone in the organization to “think 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? “Marketing 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.” “Marketing 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.” “Marketing offers some combination of products, services, information, or experiences offered to a market to satisfy a need or want”

Developing marketing strategies. etc. market share. 2. Managing the marketing efforts. Marketing can be called as a game plan for achieving its goals. Planning marketing programs 4. how to do. . These are typically spelt out in terms of financial return. it has to make analysis of what to do. where to do and who is to do it. market presence. Goals have a quality and time frame attached to them. both in quantitative and qualitative terms. 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. 3. This is nothing but strategic planning. The marketer uses research methodologies to identify opportunities.Marketing is an orderly and insightful process for thinking about and planning for markets. Analyzing marketing opportunities. to find individuals all groups of people with unmeet needs or latent interest in some products or service. Goals indicate what a business units wants to achieve whereas strategy is how to get there. Before taking any decision and achieving the goals. The marketing process consists of the following: 1. when to do. Marketing strategies in simple terms are the complete and unbeatable plans designed specifically for attaining the marketing objectives of the firm. is an essential backdrop to strategy formulation. The process starts with researching the market place to understand its dynamics. that is.

This automobile industries even has its influence on the Indian market.e. In this direction. Probably automobile industries occupy a large market share in the worlds market as well as in the Indian market. To know which kind of offers can attract the new customers. To find the area to be improved To find out satisfaction of the customers. promotional strategies of the Ford automotives. Nearly 18% of the total national income is being incurred from the automobile industry. 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. INDUSTRIAL PROFILE One of the fastest growing industries in the world is automobile industry.Thus. To find the reasons for the dissatisfaction To study the channel levels involved in the promotion of Ford TO study and analyze the customer's perception regarding the usefulness/utility of Ford cars. TO study and analyze the distributors perception regarding the promotional and distributional strategies of Ford. Secondary objective: • • • • • • • • • • • To know the effective factors for preferring 4 wheelers(CARS) To know the factor of awareness of the cars. To Study and analyze the Promotional Strategies of Ford To know whether the customers are satisfied with the offers given by the dealer. Promotional Activities towards the customers of four wheelers(cars). From this we can estimate how important is the automobile . OBJECTIVES Primary Objective: To know the influence of various Marketing Strategies. our study deals only with the marketing strategies i.

Though we learnt to localize. Dependence of foreign technology was banned and manufacturers were forced to localize their products. a host of international carmakers rushed in. a radical shift in thinking after decades of treating cars with disdain. import substitution became the order of the day. India’s fixation with socialism and planned economies had a crippling impact on the automotive industry in its formative years. and rewarded the brands that delivered it. It marked the Indian government getting into the far business in the early 1980’s. But most of them were in for a shock as Indian customers rejected their product. The Indian consumer wanted super value.industry in the improvement of GDP of a country. The Japanese and later Korean auto industries were also highly protected in their formative years but they never shut the door on technology. the cars we made were all outdated designs with little or not improvements for decades. Indian customers refused to allow the glitter of prestigious brands blind them to the outdated and overpriced products they were offered. The Maruti 800 went on to become the staple car of India and put a nation on wheels. Issues like quality and efficiency were simply . handsomely. they relentlessly tapped the best talent pools in the world to absorb the know-how to produce good cars. INDIAN AUTOMOBILE INDUSTRY SINCE 1947: Its fascinating drive through history. The automotive industry stagnated under the government’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. which begins as a story of isolation and missed opportunities to one of huge potential and phenomenal growth. Instead. With the liberalization of the economy. In India automobile industry has a growth rate is at the average of 10-12%. They rose to the challenge of the MNC’s and responded The goal at that time for independent India was self-sufficiency. size and quality and structured India as small car market. One of the most important chapters in the Indian automotive industry’s history was written by Maruti. The period also saw the emergence of the Indian players like Tata Motors and Mahindra & Mahindra. Hyundai and Maruthi delivered. This little car set a benchmark for price. and profited. It wasn’t till 1993 that things really started to change for the Indian car buyer. not considered.

India is changing. an American company began a public taxi service with a fleet of 50 cars. crossing 30. POST. the 800. India’s clock. Calcutta and Madras. It would take nearly 50 years before the Indian auto industry could catch up with the rest of the world again. It was during the end of the war that the importance of establishing an indigenous automobile in India was realized. It’s moving forward. We have to see where it has been. around 40. The import/assembly of vehicles grew consistently after the 1920s. Before World War I. 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.INDEPENDENCE: The government clamped down on imports and foreign investments. In 1903.brilliantly with the Indica and the Scorpio. have got their finger on the pulse of the market. India’s largestselling car is not its cheapest car. India’s frugal engineering skill has now caught the world’s imagination. and an increasing number of carmakers are preparing to setup major capacities here. For about 50 years after car arrived in India. AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE: The first motorcar on the streets of India was seen in 1898.000 units by 1930.000 motor vehicles were imported. stood still while the world raced on ahead. It is the Alto. cars were directly imported. Companies like GM and Ford packed their bags and left. People’s aspirations are rising and so are their mistakes. Hindustan Motors and Mahindra & Mahindra set up factories in the 1940s for progressive manufacture rather than assembly from imported components. BROADBANDING ERA: . During the years between the wars. It’s been a long journey but to see where the Indian car industry is going. Premier Motors. Bombay had it first taxicabs by the turn of the century. a small start for an automobile industry was made when assembly plant were established in Bombay. This was ironically due to the license raj that forced Indian carmakers to be innovative and develop products frugally. The Indian auto industry is today bubbling with promise and confidence. And changing fast. Get the right product and the rewards are handsome. thereafter.

every other manufacturer still faced a series of obstacles. The Nova was the last Ambassador In 2004. when in 1985 it introduced the Standard 2000. which had direct access to policy-makers.000. While it was initially launched with the 1489cc engine found in the Ambassador.17. All three traditional carmakers added new models to their ranges – Standard Motors returned to the car business after 10 years. dimpled hood. The car cost Rs. the government announced its famous ‘broad banding’ policy which gave new licenses to brad groups of automotive products such as two and four-wheeled vehicles.In January 1985. 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. 2. transplanted its ageing Ambassador engine into it and the Contessa was born. the licensing system was very much intact. followed by Ambassador 1800 ISZ three years later. It was based on the 1970s vintage Vauxhall victor. It would be another 12 years before the Ambassador got a facelift. THE CONTESSA YEARS: The Hindustan Contessa. The Ambassador Nova was launched in 1990. In 1963. the Contessa was soon given the Isuzu engines. a small tail fin was added on either side of the rear fenders.1.8GLX (Isuzu petrol). launched in 1982. Several new products were launched during this period. was one of the few luxury cars manufactured in the country in the 1980s and 1990s. The Mark IV. powered by the 1489cc petrol engine. the retro look Avigo had classic touch internals like a centrally mounted console. Through a liberal move. THE BIRTH OF THE AMBASSADOR: In 1957. Designed by Mavendra Singh. There were three versions of this car . another minor facelift to the same grille and a much bigger frontal facelift turned out as the Mark III. launched in 1979. HM launched the cosmetically- revised Ambassador under the Avigo name. Except for MUL. HM bought in a 1972 Vauxhall Victor in 1985. a Rover SD1 body with the old two-litre Vanguard engine. The biggest hurdle was the foreignexchange clearance required for these projects. beigecolored seats and wood finish interiors. it underwent a frontal facelift with a closely checkered grille and was named the Ambassador Mark II. In 1975.0DLX (Isuzu diesel) and the rare . and the car was re-christened the Ambassador Mark I. was the last of the Mark cars. along with a new.

But fiat decided to stick it out and committed itself full-fledged manufacture of the Millicento in 1954. easy to drive and reasonably tough. PAL singed up with Fiat to assemble the Fiat 500 in India. . He not only give India its first car factory but also the country’s first aircraft factory – Hindustan Aeronautics Limited and the country’s first modern ship yard. Seth Walchand then moved to second largest automaker Ford. In sep 1964. He wants Indian company to be completely independent. where three largest car manufacturing companies are located. After approaching General Motors they insisted on part ownership. with Indian management capital and employees. PAL and FIAT launched the Fiat 1100 DELITE in India. Seth Walchand Hirachand. which had assembly operations in India. low on running cost.S. Tata Mahindra and Mahindra Maruthi Hindustan motors Premier: The story of premier is the story of one mans vision. In 1952. It was everything that a taxi driver wants. packed their bags and went home. turbo). The Padminies were easy for maintenance in terms of spares and labour cost. but delegated the project to Ford of Canada.A.2. Some of the leading Indian auto players in Indian automobile industry are: ➢ ➢ ➢ ➢ ➢ Premier. The biggest customers for PAL’s were Bombay’s taxi drivers.0T (Isuzu diesel. the tariff commission spelled out future for the auto industry – indigenize or get out. paying royalty or technology transfer payment to western countries. The arrival of FIAT: In 1951. which refused. Henry agreed. Hindustan Shipyard Limited 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. Companies like Ford and GM. phased out by the demand for cheap Japanese cars. The last Contessa rolled out in 2002. Finally the third largest automaker Chrysler agreed and singed in an agreement in Bombay in 1940.

launched in 1994. Estate and Sumo that were designed and developed using rudimentary manual methods. And it was also a product of the government’s eccentric excise duty regulations at that time. The car never went into production and the company went belly-up in 1977. In 2002. This period was a shared birthing time for the Indian commercial vehicle industry – Premier Automobiles in league with Chrysler. The Tata 407. On 29 July 2003. The Sumo was conceptually a brilliant vehicle. Six years later. On 30 December 1998. 2001 also saw the company exit its joint venture with Daimler-Benz. turned out to be the success story of the decade. the company was renamed Tata Motors Limited. The TATA SUMO. it rose like a phoenix from the ashes and changed the Indian automotive sector forever. 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. Telco or the Tata Engineering and Locomotive Company. The 407 immediately captured 70 per cent of the market. Telco’s biggest triumph came in 1985 in the LCV segment. Unlike the Sierra. J R D Tata’s birth anniversary.TATA Motors: Established in 1945. a brand new product from bumper to tail-light. MARUTHI: It began with the promise of being the ‘People’s Car’. the most important landmark of 1998 was not the Safari. 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. Tata launched the Indigo saloon. The . started out making steam locomotives for the Indian Railways. based on the Indica platform. was designed and marketed by Telco to take on the technically superior Japanese products. The Tata juggernaut continued to roll across the Indian auto industry with the launch of the Indigo Marina in 2004. 1998 was a landmark year for Tata – it launched the Tata Safari. Yet. as its full name suggests. Hindustan Motors with General Motors and Ashok Leyland with British Leyland – which all started truck production around the same time. Tata officially launched the much-awaited Indica. The director in charge from the Tata side was Sumant Moolgaonkar.

company – Maruthi Udyog Limited. Ford India. Nancy reports to Arvind Mathew. Marketing. The story of Maruthi dates back to the 1970’s. The Cabinet passed a unanimous resolution for the development and production of a ‘People’s Car’. Human Resources Nancy Reisig is Vice President. LUCY MILLAR – Vice President. . Finance & IT Lucy is the Vice President of Finance and IT at Ford India. The name of the car was chosen as ‘Maruti’ MANAGEMENT PROFILE: ARVIND MATHEW – Managing Director and President Arvind Mathew is the Managing Director and President of Ford India. He took this position in July 2006. Indira Gandhi was the prime minister of India. low-maintenance compact car for the Indian middle-class. SCOTT McCORMACK – Vice President. Sanjay Gandhi. envisioned the manufactured of an indigenous cost-effective. She took up this position in May 2005. Sales & Service Scott McCormack is the Vice President. Human Resources at Ford India. President and Managing Director. Marketing. President and Managing Director. . Her son. President and Managing Director. She took this position in March 2005. Scott reports to Arvind Mathew. She reports to Arvind Mathew. He took this position in August 2005. Ford India. Sales and Service at Ford India. NANCY REISIG – Vice President. Ford India.

During its early years. 1919) Ford was launched in a converted factory in 1903 with $28. Henry Ford was 40 years old when he founded the Ford Motor Company. the Ford Motor Company has been in continuous family control for over 100 years. The largest family-controlled company in the world. the company produced just a few Model T's a day at its factory on Mack Avenue in Detroit. 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.History Henry Ford (ca. most notably John Francis Dodge and Horace Elgin Dodge who would later found the Dodge Brothers Motor Vehicle Company. FORD IN INDIA: . Groups of two or three men worked on each car from components made to order by other companies. Michigan.000 in cash from twelve investors.

Though the Ikon and Fiesta have been the mainstays of Ford’s production in India. The Mondeo. However. sales of the Escort was finally replaced by the Ikon in 1999. the company had parted ways with M&M and was renamed Ford India Ltd in 1998. The Ikon marked a new beginning for Ford in India. the Modis and the Babu Khans. with many variants in the offering. was a very talented car by was simply not suited to Indian Fortune Ford is a 50:50% Joint Venture set up between two well known and reputed families in Hyderabad. the Ikon has been marginalized. After meeting initial success. After the arrival of the modern and highly-capable Fiesta. another made-for-India car. Pramod Modi enjoy blend very well with the youth . The car was a big hit. The Ikon was the first model by a multinational to be developed specifically for India. Misbahuddin Babu Khan and Mr. Fortune Ford is a blend of experience and youth. It rolled out of the Marajmalaingar plant near Chennai and by now. it was a unique body style and was offered and was offered with an option of three engines. Ford launched the Fusion. The Ikon underwent several face-lifts and price cuts to keep demand high. The Endeavour SUV was launched in early 2004 and has sold well for its niche. The Fiesta has picked up where the Ikon left and is selling well. launched in 2001. conditions and earned a reputation for being exorbitant to maintain. which produced the Escort out of M&M Nashik plant. the company has had limited success with other models. who are one of the leading manufacturers of top quality cars in India. with state-of-the-art engines. In 2004. which has received a lukewarm response though the recent diesel variant has perked up sales. Though it was based on the Fiesta. The Endeavour has recently been upgraded in 2007 and this has boosted the appeal of the big SUV. Fortune Ford is an authorized dealer for Ford India Limited. fresher competition and a reputation for high-maintenance saw sales gradually decline. including a diesel. The experience and good will that Mr.Ford started its innings with the Mahindra-Ford joint venture formed in 1994.

The Service Centre is armed with the state-of-the art equipment and is in-line with Ford's exacting Global standards. The workforce at Fortune Ford is committed to excellence in serving all esteemed customers. to update them with the latest technological advances in the automotive sphere. These centrally located outlets provide convenient and easy access to both the proud owners as well as prospective buyers. Nirav and Siraj to make Fortune Ford a truly world class Ford Dealership. We have two service centers. the ever-popular Ford Ikon Flair. Fortune Ford markets and services the recently launched truly European Ford Fiesta.and energy of the youngsters Bashir. Ashish. FORD MISSION AND VISION . Santhnagar. the No non-sense car Ford Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The service team is technically qualified and trained to analyze and provide solutions adhering to Quality Care. colour and features to lending a helping hand in providing attractive buyback options and also arranging finance at competitive rates. The sales outlet is located strategically at Somajiguda next to Eanadu. Abids opposite Stanley College and other one at Fathebagh. in order to satisfy even the most demanding customers. one at Chapel Road. 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. They are adept at guiding the customer through the entire sales process right from assisting in the choice of model. The Sales Team is made up of dedicated showroom and field executives who are professionally trained by Ford India Limited.

Strong Ford Asia. Intense competition from Japanese companies. Mazda. To achieve the Customer Satisfaction and Market Share objectives of Ford India in the Segment and in the Areas of operation. could lead to further deterioration in the North American operations of Ford. Vision Metro Ford will keep in pace with Growth Plan of Ford India in providing the required Sales and Service infrastructure for the convenience of prospective Customers. To provide a congenial working environment to all Employees along with fair compensation and other welfare benefits. The company manufactures and distributes automobiles in 200 markets across six continents. The Ford Asia. convenient and reasonable to ensure Customer’s delight. efficient. CHAPTER 2 SWOT ANALYSIS Ford Motor Company (Ford) is one of the largest automotive manufacturers in the world. Africa and Ford Mazda operations Weakening North American automotive operations Growing Ford Europe and PAG operations Tarnished brand image . Africa and Ford Mazda could prove to be a significant revenue and profit driver in the coming years. Lincoln.Mission Metro Ford will strive to provide a pleasant buying experience to all our prospective Customers. To provide after-sales-service which is prompt. from the time he / she expresses the interest to purchase a Ford Car till the Car of his / her choice is delivered in perfect condition. however. Africa and Ford Mazda operations recorded strong performance in fiscal 2005. Strengths Weaknesses Strong Ford Asia. Jaguar. Ford. The company's automotive vehicle brands include Aston Martin. Land Rover. Mercury and Volvo.

024 million in fiscal 2005. Revenues from Ford Asia. Africa and Ford Mazda reached $8. the automotive division recorded lossbefore taxesof $3.895 million in fiscal 2005. This has forced the financial services divisionto resort to securitizing of retail auto loans. Weaknesses Weakening North American automotive operations Ford's automotive operations in North America recorded a weak performance in . Jaguar. up from $155 million in fiscal 2004. In fiscal 2005. this segment recorded an income before taxes of $297 million in fiscal 2005.008 million in fiscal 2004. up 18. Ford MotorCredit. Inrecent years. revenues of this division have fallen in recent years. upfrom $5. Yet financial services division continues to remain profitable. up 11. As aresult. Growing Ford Europe and PAG has enabled the company to offset revenue decline in the Americas division. thefinancial servicesdivision has recorded income before taxes of $5. Growing Ford Europe and PAG The Ford Europe and Premier Automotive Group (PAG) recorded strong revenue growth in fiscal 2005.3% over 2004. Ford Europe and PAG accounted for 34% of total revenues. is largely responsible for keeping the company afloat.Profitable financial services division The financial services division. The Ford Europe and PAG primarily include the sale of Fordbrand vehicles in Europe and Turkey as well as sale of PAG brand vehicles (Volvo. Land Rover and Aston Martin). auto leases and lines of credit to cardealers on its books for raising money. As a result. More importantly. the company was able to record a net profit of $2. Ford Motor Credit continues to offset losses of the automotive operations and enables the company to remain in black.891 million. the problems of automotive division have adversely affected the creditrating of the financial services division. Strong Ford Asia. Revenues from Ford Europe and PAG reached $60.245 million in 2005. In contrast.5% over 2004. Africa and Ford Mazda could prove to be a significant revenue and profit driver in the coming years. Africa and Ford Mazda operations recorded strong performance in fiscal 2005. up from $82 million in fiscal 2004.Profitable financial services division Large unfunded pension and other obligations Opportunities Threats The way forward plan Rising raw material prices Hybrid vehicles Increasing competition Opportunities in India and China Low capital spending Strengths Strong Ford Asia.258 million in 2005. Africa and Ford Mazda operations The Ford Asia.

Opportunities . In 2001.811 million.497 million. Stagnating truck sales in the US. Total health care and life insurance obligations of Ford stood at $39. Ford recalled new Escape sports utility vehicle five times in four months owing to quality issues During January 2005. truck sales account for only 56% of total vehicle sales. replacing 13 million tires made by Bridgestone/Firestone. health care and life insurance obligations would negatively impact the cash flow position of the company.5% of total revenues in fiscal 2005. including the US and non-US plans. Truck sales accounted for 67. the largest in North America. Ford's total pension obligations. Tarnished brand image has negatively impacted Ford's sales in the US. Large unfunded pension and other obligations Ford has significant unfunded pension. as compared to an income before taxes of $684 million in fiscal 2004.274 million at the end of 2005.3% in fiscal 2004 to 18. health care and life insurance obligations.000 pickup trucks and sport utility vehicles because of a fire risk from overheating of the speed control switch. Revenues from automotive operations in North America fell by 2. Ford recalled about 792. Ford relies more on truck sales than other vehicle manufacturers.595 million. totaled $74. resulting in unfunded health care and life insurance obligations of $32.4% to approximately $80.600 million in fiscal 2005. on account of high fuel prices. The company's share of the US light vehicle market. whereas in case of most other vehicle manufacturers. while pension assets (US and non-US) totaled $63.2% in fiscal 2005. According to a leading consumer magazine. Ford's automotive operations in North America accounted for about 45.784 million. Japanese competitors such as Toyota have also taken market share away from Ford. Unfunded pension. has fallen from 19. Furthermore.777 million. has hurt Ford more than the others.500 million in fiscal 2005. while the plan assets stood at $6. The weakening of automotive operations in North America is due to competition from Japanese companies and a market shift away from fuel-guzzling light trucks such as sports utility vehicles toward more fuel efficient vehicles. an eight year old Toyota is as reliable as a three year old Ford with 54 problems per 100 vehicles. By the end of 2005. automotive operations in North America recorded a loss before taxes of $2.2% of its US vehicle sales. which resulted in unfunded pension obligations of $10.fiscal 2005. Any continued weakening of automotive operations in North America would adversely affect the financial and market position of the company.

2 million units. or 26% by 2008. which represents a majority of actions within the restructuring plan's 2006-2012 period. Ford sales were up 46% in 2005.4 million units to 2.7 million units in 2010 while light vehicle production in India is forecast to increase from 1.3 million units in 2005 to 7. Ford reinforced its commitment to the Indian market during 2005 by launching the Ford Fiesta. Demand outlook for steel has . Ford launched a restructuring plan to improve the performance of its automotive business in North America. Since then steel prices have stabilized and recovered some of the lost ground.The way forward plan In the beginning of 2006. Ford is planning to expand its capacity to produce up to a quarter of a million hybrid vehicles a year. Hot rolled coil prices averaged $579 a ton during the first four months of 2006. with 14 manufacturing facilities to be idled. While in China. The North American capacity is likely to be realigned to match demand. after declining by about 30% in 2005.000-30. Growing vehicle markets in India and China would provide an opportunity for the company to diversify its revenues. The price of hot rolled steel coil rose from $386 per ton in January 2004 to a high of $653 per ton in November 2004 and thereafter fell to a low of $493 per ton in July 2005 owing to de-stocking in inventories and changeover of China from a net importer to a net exporter. more than half of Ford. This plan aims to make the North American business more customer-focused. resulting in significant cost savings and reduced employment of 25. Threats Rising raw material prices Steel prices. Hybrid vehicles By 2010. have stabilized. Ford's focus on hybrid electric vehicles could help in turning around its North American operations. 'The way forward plan' focuses on restoring Ford's North American automotive operations to profitability by 2008. Light vehicle production in China is expected to increase from 4.000 employees. Lincoln and Mercury products are expected to switch over to hybrid electric engines. but could rise to higher levels if industry consolidation continues. Hybrid engines are more fuel efficient and less polluting than conventional gasoline and diesel engines.5 million units during the same period. China and India are expected to drive global demand for light vehicles through much of this decade. higher fuel prices and growing environment-consciousness. product-driven and efficient. Capacity will be reduced by 1. Demand for hybrid vehicles is increasing worldwide owing to stringent emission standards.

Oil prices reached as high as $78. After establishing a strong market position in the passenger cars segment. is lower than its competitors.193 per vehicle and Toyota's $2.8% in 2001 to 18. another Japanese competitor. Low capital spending Ford's capital spending.2% during the same period. Toyota.766 per vehicle. In 2005.2% in 2005 thanks to competition from Japanese companies among other reasons.strengthened in recent months owing to pick up in global industrial production and restocking due to low inventory levels. Recovering steel prices and rising polymer prices could adversely affect the company's profit margins.4 a barrel during July 2006. Ongoing industry consolidation in the steel industry. meanwhile.1% to 6. Toyota. is aggressively pursuing market share in the light trucks segment through its Tundra range of trucks. while Honda's share has improved from 6. An aging vehicle range would adversely affect growth prospects of Ford. In June 2006. Consequently. High crude oil prices have also led to an increase in polymer prices. however. could push prices to higher levels. which could affect its competitiveness going forward. while Honda would replace 93% of its existing vehicle range with new models during the same period. Arcelor merged with Mittal Steel to form the largest steel company in the world.4% in 2005. Increasing competition Ford's market share in the US light vehicle market has declined from 22. Ford is facing intense competition from Japanese vehicle manufacturers such as Toyota and Honda.937 per vehicle. Ford's capital spending was $1. Japanese companies are now eyeing the lucrative light trucks segment. Toyota's share of US light vehicle market has risen from 10% in 2001 to 13% in 2005. for instance. . Plastic materials are used extensively in the automotive industry.9% in 2001 to 8. as compared to Honda's $3. Hot rolled coil prices are expected to average $572 a ton in 2006. for instance. Ford would be able to replace only 59% of its existing vehicle range with new models during 2006-2009. improved its market share from 4. Japanese companies could lead to further deterioration in the North American operations of Ford. Nissan. is poised to replace 90% of its existing product range during 2006-2009. including research and development expenditure.

Marketing strategy is the complete and unbeatable plan. the design for achieving them. a firm develops an understanding of the market and the various opportunities it offers. It is partially derived from broader corporate strategies. its product lines. it is the job of marketing strategy to indicate how and wherefrom this sale and profit will come.CHAPTER 3 Marketing strategy and analysis: analysis A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. defining how the organization will successfully engage customers. From this situation analysis. As the customer constitutes the source of a company's revenue. prospects. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. Marketing strategy forms an integral part of marketing planning. designed specifically for attaining the marketing objectives of the firm/business unit. Marketing strategy is based on a situation analysis. A marketing strategy is most effective when it is an integral component of corporate strategy. For example. it should achieve a sales revenue of Rs. if the marketing objectives of a business unit stipulate that next year. and competitors in the market arena. the competition and the market segments or target markets the company wishes to pursue.000 crore and a net profit of 15 percent of sales revenue. or its individual brands. A strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies. corporate missions. marketing strategy is closely linked with sales.a detailed assessment of the current marketing conditions facing the company. and corporate goals. 1. the marketing strategy provides . which product lines/products/brands will accomplish this task and how. A key The marketing objectives indicate what the firm wants to achieve.

pricing. MARKETING AND PROMOTIONS PROCESS MODEL: Development of marketing program requires an in-depth analysis of the market. Marketing Strategy and analysis Target marketing process Market planning program development promotion to Promotional decisions target market Opportunit y analysis Identifyin g markets Product decisions final consumer buyer  Cons ume rs Busi ness es Ultimate Competitiv e analysis Market segmentati on Pricing decisions Target marketing Selecting & Target marketing Channel of distributi on decisions Positioning through marketing strategies ➢ Adver tising ➢ Direct mark eting ➢ Intera ctive mark eting ➢ Sales prom otion ➢ Public ity and public relati ons ➢ Perso nal sellin g  Purchase Promotion to trade Resellers This input. This analysis may make extensive use of market research as an input into the planning process. Each of .component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. provides the basis for the development of marketing strategies in regard to product. distribution and promotion decisions. in turn.

defined and expressed. Selecting the target market. the way it is positioned and how the marketing mix is organized. 2. Assembling the marketing mix. It does not fully bring out the import of the inseparable likage between the two. formulation of marketing strategy consists of three main tasks: 1. positioning and marketing mix together show how and using what uniqueness or distinction. 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 unit intends to sell. the promotional program element must be combined with all other program Formulating the marketing strategy: Basically. One has to carry out several tasks besides segmentation before choosing the target market. since this plan serves as the road map to follow in achieving marketing goals. SELECTING THE TARGET MARKET: To say that target market selection is a part of marketing strategy development is just stating the obvious. The target market shows to whom the unit intends to sell the products.these steps requires a detailed analysis. elements in such a way as to achieve maximum impact. Positioning the offer. Segmentation is actually tee prelude to target market selection. When the selection of the target market is over. each element in the market mix must contribute to a comprehensive integrated marketing program. Of course. 3. The three together constitute the marketing strategy platform of the given product. Marketing targeting simply means choosing one’s target market. an important part of the marketing strategy of the product is determined. Once the detailed market analysis has been completed and marketing objectives have been established. . It needs to be clarified at the outset that market targeting is not synonymous with market segmentation.

➢ Selecting the target segments toward which the firm directs its marketing actions. ➢ Taking marketing actions to reach target segments. another base. income/purchasing characteristics constitute another. form one base for segmentation. As such. the question. and William Redulius. sex. Roger A. the firm should select as its target market.Berkowitz. STRATEGIC MARKET SEGMENTATION: Market Segmentation is “dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action”.Kerin.Through segmentation. There may be segments that are sizeable and the ones that are not so sizeable. education level etc. There may also be segments that show great potential. Geographic demographic characteristics of consumers. capacity. which was said by Eric N. A selection is thus involved in it. assumes crucial importance. Target market signifies only those segments that it wants to adopt as its market. but display tough barriers to entry. Marketing segmentation is a process that throws up not one but several market segments. ➢ 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. which segment/segments. a firm divides the market into many segments. The various types of segmentations are  Geographic segmentation  Demographic segmentation  Psychographic segmentation  Buyer behavior  Benefits segmentation  Volume of purchase segmentation For example. and buying behavior of the consumers forms yet . The Segmentation process involves five distinct steps: ➢ Finding ways to group consumers according to their needs. There may be segments assuring immediate profits and the ones that call for heavy investments in market development. But all these segments need not form its target market. such as age. Markets can be segmented using several relevant bases.

the product offer has to be placed before the target consumers. 1. in his book Marketing Communications – From Fundamentals to Strategies says. This place was originally a productrelated concept…. if any. in his book Brand Positioning says. “Positioning refers to the place a brand occupies in the mind in relation to a given product class.” Positioning is the act of fixing the locus of the product offer in the minds of the target consumers.POSITIONING: Positioning is a platform for the brand. preferences”. the firm decides how and around what parameters. What position do we want to own? . “The results of your campaign depends less on how we write your advertising than on how Definitions of product positioning: Sengupta. Trout and Ries suggest that managers ask them selves six basic questions. The concept now refers to the place that the brand holds in the consumer’s mind related to perceptions and Developing a Positioning Strategy: To create a position for a product or service. What position. We must find a strong position in that mind and sit on it…. Concerning market structure. The significance of product positioning can be easily understood from David Ogilvy’s words: your product is positioned”. It facilitates the brand to get through to the target consumers. do we already have in the prospect’s mind? 2. In positioning.” Micheal Rothschild. “ 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. It is defined as “the 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 meaningfully apart from competition.

3. Product positioning denotes the specific product category/product class in which the given product is opting to compete. the two terms are synonymously and interchangeable used. Once product category positioning is decided. In this step. product positioning and brand positioning. What companies must be outgunned if we are to establish that position? 4. i. the issues are: Which are the competing brands in the chosen product category? What are the unique claims/strengths of the various brands? . it is the broad function that the product is trying to serve that matters. It is evident that for any product. the position for the new entrant against competing brands in the chosen product category has to be analyzed and fixed. before entering the market it has to sequentially carry out the two exercises. technically they are different. what 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? ISSUES IN BRAND POSITIONING: In deciding the Brand positioning. Do we have enough marketing money to occupy and hold the position? 5. Though in discussions. Does our creative approach match our positioning strategy? PRODUCT POSITIONING AND BRAND POSITIONING: It is essential to understand the relationship between products positioning and brand positioning. has to be decided. This choice of product category will decide the nature of the competition the product is going to face. ISSUES IN PRODUCT POSITIONING: 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.e. And brand positioning denotes the positioning of the brand viz-a viz the competing brands in the chosen product category. against what all products it has to compete. Do we have the guts to stick with one consistent positioning strategy? 6. the product category where the new entrant should enter and compete. In the first step.

even products that are fairing well are repositioned.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 will agitate over these issues. And. 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. Now. The Product Differentiation and Positioning discusses the multifarious issues involved in PRODUCT REPOSITIONING : Products do undergo ‘repositioning’ as they go along their life cycle. 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. while formulating the marketing mix too. the subject. The product is provided with some new features or it is associated with some new target segments. what is the conjunction between these two entities? How do they get connected? What is the interface? In other words. PROMOTIONAL DECISIONS: 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. In some cases. The promotional mix . While implicit communication occurs through the various elements of the 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 firm has already selected the target market and decided its basic offer.

The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. Unlike traditional forms of marketing communications such as advertising. whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. and strategies. product. service. whose products and services are targeted at mass consumer markets. It is a very cost-effective method for communicating with large audiences. telemarketing and direct response ads through direct mail. It has become such an integral part of the IMC program of many organizations and often involves separate objectives. direct selling. budgets. It is also very important promotional tool. An occasional exception to this is the public service announcement. or idea by an identified sponsor.Advertisin g ➢ ➢ Advertising: Direct marketin g Interactiv e/ internet Sales promotio n Publicity/ Public relations Personal selling Advertising is defined as any paid form of non personal communication about an organization. ➢ Direct Marketing: One of the fastest-growing sectors of the U. including database management. and various broadcast and print media.S. economy is direct marketing. particularly for companies. probably because of its pervasiveness. in which organizations communicate directly with target customers to generate a response and a transaction. the new media allow users to perform a . Advertising is the best-known and most widely discussed form of promotion. One of the major tools of direct marketing is direct response advertising. whose advertising space or time is donated by the media. It involves a variety of activities. which are one-way in nature. ➢ ➢ 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. It can be used to create brand images and symbolic appeals for a company or brand. we view direct marketing as a component of the promotional mix. the Internet. Direct Marketing is much more than direct mail and mail order catalogs.

rebates. Another advantage of publicity is its low cost.variety of functions such as receive and alter information and images. identifies the policies and procedures of an individual or organization with the public interests and executes a program of action to earn public understanding and acceptance”. other forms of interactive media include CD-ROMs. make inquiries. Kiosks. sweepstakes. or idea not directly paid for or run under identified sponsorship. Public relations are defined as “the management function which evaluates public attitudes. and interactive television. or the ultimate consumer and can stimulate immediate sales. contests. ➢ 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 . ➢ Publicity/Public Relations: Publicity refers to non personal communications regarding an organization. product. An advantage of publicity over other forms of promotion is its credibility. editorial or announcement about an organization and its products and services. publicity is not directly paid for by the company. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers. service. sampling. sales promotion is generally broken into two major categories: Consumer-oriented and Trade-oriented activities Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing. Like advertising. premiums. ➢ Sales Promotion: The next variable in the promotional mix is sales promotion. distributors and retailers. Public relations generally have a broader objective than publicity. It usually comes in the form of a news story. In addition to the Internet. as its purpose is to establish and maintain a positive image of the company among its various publics. the distributors. since the company is not paying its time or space in a mass medium such as TV. radio or newspapers. which is generally defined as those marketing activities that provide extra value or incentives to the sales force. respond to questions and of course make purchases. and various point-of-purchase materials.

relate to one or the other of the above four elements. It can be easily seen that all activities and programmes. Not only will he take due not of them. Personal selling involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer’s reactions. vehicle for creating and delivering customer value. he will ensure that his marketing mix suits the environmental variables. personal selling involves direct contact between buyer and seller.service or to act on an idea. marketing becomes synonymous with assembling and managing the marketing mix. It considers different marketing mixes with varying levels of expenditure on each marketing activity and tries to figure out the effectiveness of different combinations in terms of the possible sales and profits. place and promotion that is best according to its judgment. either face-to-face or through some form of telecommunications such as telephone sales. Involved in this process are the choice of the appropriate marketing activities and the allocation of the appropriate marketing effort/resources to each one of them. And. promotion and pricing. It then chooses the combination/mix of products. MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND DELIVERING CONSUMER VALUE The four elements mentioned above. distribution. ASSEMBLING THE MARKETING MIX: MIX Assembling the marketing mix means assembling the four Ps of marketing in the best possible combination. place. It can also be seen that in each of these elements. the marketing manager will take due note of the environmental variables. promotion and pricing constitute the marketing mix of the firm. there are several sub-elements. Of course. elements of distribution. while assembling the marketing mix. For example. which a marketer designs and caries out in his effort at winning customers. packaging is one of the sub-elements of product and warehousing is one of the subThe marketing mix is the sole The Four Ps of Marketing: . its it factor that renders tha task much more complex.product. price. Since marketing is essentially an interaction between the marketing mix and environmental variable.product. Unlike advertising. The firm has to find out how it can generate the targeted sales and profit. and since the latter and non-controllable.

It was James Culliton. DIFFERENTIATION ORIENTED MARKETING STRATEGY . it is through the marketing mix that the marketing manager achieves the marketing objectives. or.Borden. To quote him. Assembling and managing the marketing mix is the crux of the marketing task. However. Over the years. who first described the marketing mix in terms of the four Ps. We have also seen that a firm can assemble the marketing mix elements in many different ways. It was Jerome McCarthy. business firms are able to employ an abundance of strategies and strategy stances in their relentless race to stay ahead of competition. who coined the expression marketing mix and described the marketing manager as a mixer of ingredients. MARKETING STRATEGIES FALL UNDER TWO CATEGORIES: We have seen that target market selection. The scope to carve out different combinations is. And. a noted marketing expert. experiments with ingredients as no one else has tried before. Subsequently. each beginning with the alphabet “P”. the terms – Marketing mix and Four Ps of marketing have come to be used synonymously. who sometimes follows a recipe developed by others and sometimes prepare his own recipe. He classified the marketing mix variables under four heads. Niel H. in fact immense. And. PRICE ORIENTED MARKETING STRATEGY 2. popularized the concept of marketing mix. depending on the relative weightage it assigns to the different elements. another noted marketing expert. `The marketing man is a decider and an artist – a mixer of ingredients. a close scrutiny will reveal that all these strategies can be fitted into two broad categories 1. • • • • Product Place Price Promotion McCarthy has provided an easy-to-remember description of the marketing mix variables. positioning and marketing mix formulation together constitute marketing strategy. the well-known American professor of marketing. As a result. sometimes he adapts his recipe to the ingredients that are readily available and sometimes invents some new ingredients.

evidently. The product can be differentiated along two major planks: . a firm adopting such route can price its product on the perceived value of the attributes of the offer and not necessarily on competition-parity basis. scale economies. They use price as their competitive lever. a firm opting for the price route will have to have a substantial cost advantage in their operations. a firm should have consciously taken to the idea sufficiently early in its evolutionary process and prepared itself for adopting such a strategy. While all the 4Ps of marketing are important elements from the point of view of strategy. there are only two broad routes available for forging marketing strategies: any strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented strategy.In other words. a large market share built over a period of time. while the product forms its core. Product differentiation is of vital importance in product management and has great potential in forgoing successful marketing strategies. And. It works on the principle that a firm can make its offer distinctive from all competing offers and win through the distinctiveness. They juggle the price of their product to suit the prevailing competitive reality. Price route requires cost leadership. Maximum scope for exploiting differentiation remains with the product. in fact will revolve around building such cost advantage. The firms whole strategy. It should be enjoying an overall cost leadership in the given industry and its lower cost should enable it to secure above average returns inspite of strong competition. or synergy among the different businesses. The cost advantage can emanate from different factors like. DIFFERENTIATION ORIENTED MARKETING STRATEGY: STRATEGY The differentiation route of strategy revolves around aspects other than price. They can afford to offer lower prices and still make the targeted profits. earlyu entry. PRICE ORIENTED MARKETING STRATEGY: STRATEGY Firms taking to the price route in marketing strategy compete on the strength of pricing. They elbow out competition with the cushion they enjoy in the matter of pricing. To successfully practice a price-led strategy. the other Ps normally go as elaborations of the offer. locational advantage.

The tangible product attributes and functions are Differentiation based on ingredients. Technology. Dealer participating enthusiastically and creatively are awarded . stimulate re-purchase rate and build loyalty through news papaers. Differentiation based on Quality. Service. Intangible characteristics and emotional associations. Differentiation based on additional features. designed to stimulate quicker and greater purchase of particular products of services by the consumer. induces product trail and counters competition. Price-Offs Offer: Price-off offers refers to offering the product at lower than the normal price. 2. Operational Efficiency. EFFECTIVE SALES PROMOTION: Sales promotion consists of diverse collection of incentive tools mostly short term. Packaging contributing to differentiation. attracts non-users. This encourages immediate sales. Dealer stock display contests: contests It is a type of point of purchase advertising which uses the show windows of the dealer for providing exposure to the sponsor’s products. Premium: Premium refers to the offer of an article of merchandise as an incentive in or to sell the product. Coupons: In order to encourage product trail. Sales promotion is the only method that makes use of incentives to complete the push-pull promotional strategy of motivating the sale force. Differentiation based on functional value. Tangible product attributes and functions.1. the dealer and the consumer in transacting a sale.

The aim of defensive strategy is to reduce the profitability of attack. It might push legislation that would be more unfavorable to the competitors than to itself. If the latter supply the upstart firm. There are 6 defense strategies that a dominant firm can use: .DEFENDING MARKET SHARE: SHARE While trying to expand total market size. EXPANDING MARKET SHARE: SHARE Market leaders can improve their profitability by increasing their market share. Any attack is likely to hurt profits. The market leader firms might attract the provisions of various anti-trust legislations. sometimes it might put pressure on distributors not to carry the competitors product. the expansion of market share n the total market may be proved both as expensive and risky. But the defender’s form and speed of response can make an important difference in the profit consequences. This step is very much essential for the market leader firm because the challenger firms are constantly to exploit the weaknesses of the leader firms. divert attacks to less threatening areas. The salesman of leader firm might speak negatively about competitors. Therefore it is better for such leader firms in spending their time in building up the market size rather than expanding the market share. the leader form might approach the suppliers and threaten to reduce its purchases. It may also try to hire away the better executives of an aggressive firm. the dominant firm must continuously defend it current business against rival attacks. and lessen the intensity of attack. But for few market leaders whose share in the total market is insignificantly high. As a part of this strategy. the market leader firm will try to restrain these competitions through legal devices. The second reason being the economic factors. The reason for this action may be attributed to two factors: 1. Sometimes. HARASSMENT STRATEGY: The market leader firm will resort to an harassment strategy in order to promote its market share. The cost of making further gains in the market share after a large share has been achieved may rise fast and reduce the profit margin. The rival competitors will try to force the Government to bring legislations against the “MONOPOLISATION” 2.

Flank Defense: The market leader should not only guard its territory but also erect outposts to protect a weak front or possibly serve as an invasion base for counter attacking. when attacked will respond counterattack. and competitors are nibbling away on several funds. INNOVATION STRATEGY: The market leader may innovate several strategies in respect of new product ideas. Mobile Defense: Mobile defense involves more than the leader aggressively defending it territory. Preemptive Defense: A more aggressive defense maneuver is to launch an attack on the enemy before the enemy starts its offense against the leader. Preemptive defense assumes that an ounce of prevention is worth more than a pound of cure. 5. 4. means of distribution. 6. Counteroffensive Defense: Most market leaders. Contraction defense: Large companies recognize that they can no longer defend all the territory. cost cutting discovery. In addition to these. Their focus are spread too thin. The leader has the strategic choice of meeting the attacker frontally. promotion blitz. or sales territory invasion. 2.1. The leader cannot remain passive in the face of a competitor’s price cut. maneuvering against the attacker’s flank. Position Defense: The basic idea of defense is to build an impregnable fortification around one’s territory. 3. customer services. a leader may discourage its competition particularly challenge firm. In mobile defense. the leader stretches it domain over new territories than serve as future centers for defense and offense. or launching a princer movement to cut off the attacking formation from their base operation. The best course of action then appears to be planned contraction (also called strategic withdrawal). . product improvement.

engaging in a massive promotional expenditure that the aggressive challenger cannot match. Ford is also supplying videotapes showing how repairs have to be done. ➢ Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian roads. ➢ Location of horn buttons on the steering vehicles. for cars sold in India. The leader firm may engage in the price war whenever a new challenger is considering to enter in its market. The leader produces it brand in a variety of sizes and firms. Adopting Offer to Suit Target Segment: Ford modifies its models for India: Ford modified its models for the Indian target segments as shown below: ➢ Higher ground clearance to make the car more compatible to the rougher road surface in India.FORTIFICATION STRATEGY: In order to protect its market share. the market leader may try to keep it product prices reasonable in relation to the perceived valued of the offer and competitors offer. ➢ Higher resistance to dust. This strategy will frighten the potential competitions and make then to withdraw from entering the market. ➢ Compatibility of engine with the quality of fuel available in India. It has gone in for a new norm in customer service: “fix it right-the first time-on time”. with greater airflow to the rear. (As the India motorist uses the horn more frequently. CONFRONTATION STRATEGY: STRATEGY If leader firm faces an extremely aggressive challenger. the market leader will engage any promotional war. In such a situation. whose actions demand a quick and direct response. ➢ Changes in cooling requirement. MARKETING STRATEGIES OF FORD: Product differentiation based on operational efficiency: FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its offer on the plank of service. 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: .

• Premium car segment: This segment represents buyers who need a real world-class car and are willing to pay the due price. Advertising through television and newspaper. Direct marketing. 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. 3. The various promotional strategies followed by the Fortune Ford at dealer are . they a 1) Promotions of product directly by the manufacturer. ‘FORD IKON’ AND ‘FORD FUSION’ come under this type of segment. 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). There body is designed similar to offroad vehicles. Strategic Promotions by FORD: Ford follows the promotions at two levels. 2) Promotions at dealer level. ‘FORD FIESTA’. which can withstand to Indian roads. Preferred price range is from 5 lakh to 6 lakh. ‘FORD MONDEO’ come under this segment of cars. 2. Internet or interactive marketing. And these cars are also useful for sport riding and even on hill areas. ‘FORD ENDEAVOUR’ occupies this segment.The Ford in India has launched the car only for few segment of people. In the second step the dealer of the vehicles promotes the vehicles. Preferred price range starts from 8 lakh to 12 lakh. • SUV segment: The buyers of this segment like to have a big vehicles.

e.1. This type of advertisement is prepared for those segments of people who cannot afford their time in reading newspapers and watching televisions. In this way it maintains an effective relationship with the customers and gains the reputation and goodwill in the minds of the customers. Relationship Marketing: Fortune Ford pays a special attention towards its old customers. moving on their business activities they may These hoarding are especially setup at the road signal 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. 2. Free Insurance: The Fortune Ford gives a special offer of free insurance on the purchase of each vehicle to its new customers. The various new features and new offers regarding the vehicles are advocated to them and are given discounts on group purchase of vehicles. While travelling from their home to office. These people are met-in person or contacted through their contact number. Advertising though news papers. radios. . stops. To retain the old and existing customers it conducts a corporate meet at a luxurious hotel. watch these hoardings. Hoardings: A heavy picture of the product which comprises of its attributes and special features are displayed on the roadsides in the form of hoardings. In televisions the scrolling are given about the product and its features. i. The event aims at knowing the problems of the customers regarding the vehicles and also service feedback. palm plates. It is a bit expensive strategy but attracts many people who pass by that roadside. if 5 or more friends in the group purchase the cars at a time then they are given special discounts on the vehicles. In this all the features of the product and its prices are given in detail to the customer.

. In this questionnaire their problems regarding the vehicle and also their post sale service experience are taken.O’s.E. Managers etc. 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. If there exists any problem. 3. This is a technique to attract the new customers by satisfying the old customers and gaining goodwill in the market. Conducting Customer Delight Program: This is a unique program conducted by the Fortune Ford. Showroom sales: In this the customers walk in to the showrooms to know about the details of the product. 2. Sales executives give a detailed note on the products features. 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. This is a program conducted to retain the old customers of the Ford. then the Fortune Ford service men try to resolve the problems of their customers as soon as possible and makes the customer satisfied. . tidy and inviting. ✔ The Sales faculty is clean. various offers given by the manufacturer and also by the dealer to the customer and enhances the sales of the vehicles. STRATEGIC SALES STANDARDS: Fortune Ford maintains strategic sales standards in the following manner. Specially trained sales executives who are present in the showrooms give a detailed explanation about the product to the customers.Sales Promotion: The sales promotion is done in the fortune ford at three levels: 1. 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. making customers comfortable while purchasing products and availing services. 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.

✔ The Sales Consultant’s appearance and dress will be of the highest standards. ✔ Using a check list.✔ Customers are courteously acknowledged within two minutes of their arrival and are advised that a Sales Consultant will be available upon request. ✔ Customers will be contacted within one week after delivery to ensure total satisfaction. ✔ Each vehicle will be washed before being returned to the customer. accurately recorded on the repair order and verified with the customer. ✔ An appointment is available within 5 working days of the customer’s request. ✔ A test drive will be offered to all customers. ✔ All service repair work will be followed up within five working days. ✔ The vehicle is serviced right on the first visit. What is Extended Warranty? ♦ Factory Warranty covers only for a specific period of time/mileage. ✔ A pleasant. EXTENDED WARRANTY: Fortune Ford gives an extended warranty to its customers where there will be an extended time duration in the warranty. in a clean and welcoming environment. ✔ An advisory relationship is established between the customer and the Sales Consultant who listens to the customer. warranty coverage and charges is given to the customer. ✔ Service needs are courteously identified. MAINTAINING SERVICE STANDARDS: ✔ An efficient service facility allows a customer to avail all the service provided by Fortune Ford. ✔ Customers are courteously acknowledged within two minutes of their arrival and the write-up will begin with five minutes. non-pressured purchase experience will be provided during which a thorough demonstration of the vehicle features and benefits will be made. identifies their needs and ensures that they are met. . ✔ The vehicle is ready on the agreed upon time. ✔ A through explanation of work done. the Sales Consultant delivers the vehicle in perfect condition when promised.

♦ After the factory warranty expires. customer is exposed to the risk of parts failures. This is applicable for any machine/equipment/vehicle. customers spend on a) Maintenance parts that are to be replace at specific intervals b) Replacement of worn out parts c) Labour charge for the above ♦ A comprehensive maintenance plan by Ford will serve as a good tool to improve the service experience and minimize concerns on cost of ownership of the vehicle ♦ Total Maintenance Plan (TMP) is a complete service solution provided to the customer. Extended Warranty: ♦ ♦ ♦ ♦ ♦ Is an extension of Factory Warranty Offers almost similar coverage as Factory Warranty Comes with a time-bound (eg. hence increases the resale value. What does it NOT cover? ♦ Does not cover wear and tear of parts ♦ Does not cover scheduled service items ♦ Does not cover accident repairs Benefits to customer ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Protection from manufacturing and material defects Car can be repaired at any Ford out let across the country Unlimited number of claims No excess to pay One up-front payment only Inflation protection from rising costs of parts and labour All repairs carried out by qualified Ford technicians Warranty can be transferred when vehicle is sold – better resale value Total peace of mind TOTAL MAINTENANCE PLAN What is Total Maintenance Plan? ♦ Cost of ownership is the key factor while considering vehicle purchases ♦ As part of regular maintenance. This enables the customer to have total peace of mind in the form of a “Maintenance Holiday” What does it cover? . 1yr/2yrs but unlimited mileage cap) Covers all Mechanical and Electrical Failures Covers labour Why is extended warranty needed? ♦ Offers peace of mind motoring ♦ Protects against unexpected and non-budgeted expenses ♦ Can be transferred.

Lower Suspension Arms. can be cancelled Ford factory backed programme Diagnosis/repairs as per recommended standards and practices Vehicles serviced by Ford trained and certified technicians RESEARCH METHODOLOGIES AND LIMITATIONS: MARKETING RESEARCH: Definition of marketing research research as approved as by the board of directors of the association of American marketing association is: “Marketing research is the function which links the customer and public to the marketer through information – information used to identity and define marketing opportunities and problems generate define and understanding of marketing as process”. Shock Absorbers etc. .♦ Scheduled servicing like Engine Oil change. Clutch Plates. Objectivity in research is all-important. Carefully planning through all stages of the research is a necessity. The heart of scientific method is the objective gathering of the information. Brake Discs.. Spark plugs etc. Fuel filter. Simply. marketing research is the systematic design collection analysis and reporting of data finding relevant to a specific marketing situation facing the company. Oil filter. ♦ Non-scheduled maintenance like Brake Pads/Shoes. ♦ Mechanical/Electrical repairs ♦ Labour for all the above What does it NOT cover? ♦ Accident repairs ♦ Tyres ♦ Fuel Benefits to the customer ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Total peace of mind Fixed price for next 2 to 3 years Increased residual value of the car Only Ford genuine parts are used Can avail this service across the country at all Ford authorized outlets Transferable Incase of total loss.

DESIGNATED FACT GATHERING: It refers to a research where the investigation attempts to gather some predetermined data. A research may under take any of the three types of research investigation depending upon the problem.The function as marketing research with in the company as to provide the information and analytical necessary for effective. which have been developed as research. first and later on they become applied research techniques. Basic research 2. Applied research 3. It is on attempt to apply the basic principles and existing knowledge for the purpose of solving operational problems. Designated Fact Gathering BASIC RESEARCH: It is also known as the pure fundamental research. Define the problems and research objectives Develops the research plan Collect the information . STEPS IN MARKETING RESEARCH: Marketing research process can be out through following steps. sole purpose of which is the discovery of new information. APPLIED RESEARCH: It is attempt to apply the various marketing technique. It is conducted to extend the horizons on given area of knowledge with no immediate application to existing problems. ➢ Evaluation of marketing results. These type of research included: 1. ➢ Control of the marketing operation in the present. which refers to those studies. ➢ Planning of the future marketing activity.

DATA COLLECTION: The information needed to further proceed had been collected through primary and secondary data. PRIMARY DATA: It consists of information collected for the specific purpose. internet other service conducted by researchers. SECONDARY DATA COLLECTION: The secondary data consists of information that already existing somewhere having been collected for another purpose.Analysis and interpretation Present the finding. Secondary data can also be collected from the magazines. survey research was used and he all the details of Ford and their competitors were contacted. Survey research is the approached gathering description and information. thus getting to know directly from the dealers their sales before and after sales service. METHODS OF DATA COLLECTION: . In this problem description studies have been undertaken. CONTACTED METHOD: The information was solicited by administering structured questionnaire to the customer and dealers. news papers. It may be the findings of research previously done in the field. Any researcher begins the research work by first going through secondary data. Secondary data includes the information available with company. RESEARCH METHOD: It must be classified on the basis of the major purpose of the investigation. as the objective of the project is to conduct the market shares study to determine the share of market received by the company to the competitor.

launched in June 1986. How ever there are certain cases where personal interactive method is followed with customers to find the satisfaction level.5bhp at 5500rpm. The Maruthi 800.000. nimble handling and perky engine. Suzuki’s headquarters in Japan. Maruthi launched the Swift. Questionnaire is administered on the sample respondents. On 14th December 1983.48. friendlier alternative. Harpal Singh became Maruthi’s first customer as he received the keys of his Maruthi 800 car from Prime Minister Indira Gandhi. three-cylinder power plant produced 39. The new Maruthi. The car cost Rs. A team of engineers from Maruthi worked on the design of the Swift in Hamamatsu. outgoing model.000 more than the The new Maruthi: In 2005. which was called the Fronte in Japan and Alto in most of the other markets. offered the Indian motorist a cheaper. for the first time in its 20-year history. The 796cc. Maruthi marked the beginning of a revolution in the Indian automobile industry. with its compact size. The Swift signaled the importance of the Indian market in the world. Model Maruthi 800 Maruthi Omni Maruthi Gypsy Maruthi 1000 Maruthi Zen Maruthi Esteem Maruthi Baleno Maruthi Wagon R Year of launching 1983 1984 1985 1990 1993 1994 1999 1999 . cost approximately Rs 15. in-line. The Car that changed India: The Maruthi 800 was essentially a Suzuki SS80.The basic method adopted in conducting the study is a structured questionnaire.

Between 1993 and 95. The most preferred partner was an existing automaker. the government announced its decision to allow foreign auto companies to enter with a 100% stake or wholly-owned subsidiaries. ➢ General Motors India ➢ Mercedes-Benz ➢ Hyundai Motors ➢ Honda SIEL ➢ Toyota ➢ Skoda India . ➢ GM and CK Birla to form GM India. In 1995.Maruthi Alto Maruthi Versa Maruthi Swift Maruthi Zen Estilo Maruthi SX4 Maruthi Suzuki Grand Vitara 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. This changed the dynamics of joint ventures in India. In 1994-95 saw the announcement of quite a few JV’s. The other automobile industries which play a crucial role in the Indian automobile industry are: ➢ Daewoo Motors India. ➢ Premier and Peugeot to form PAL-Peugeot. While the economic reforms process was kicked of f in 1991. And car markers are learning some very hard truths. ➢ M&M and Ford to form Mahindra-Ford India. ➢ Mercedes Benz and Tata Motors. government regulations limited a foreign company’s stake to a maximum of 51 percent of the equity. it was only in 1993 that the automobile industry was finally delicensed and the restrictions were removed. Hence the only method of entry for an MNC then was through a joint venture with a local partner.

CEO Industry Automotive Products Automotive goods and services Revenue Operating income Net income US$120.0 billion (2006)[1] US$-12. Jr Key people Executive Chairman Alan Mulally . USA Area served Worldwide William Clay Ford.1 billion (2006) [1] US$-15.000 (2007)[2] Ford Credit Ford division Divisions Lincoln Mercury Premier Automotive Group Automotive Components Holdings Subsidiaries Jaguar Land Rover Volvo (cars only) Slogan Bold Moves Have you driven a Ford lately? Built Ford Tough . Michigan. 1903 Founder Henry Ford Headquarters Dearborn.President.6 billion (2006)[1] Employees 283.Ford Motor Company Type Public (NYSE: F) Founded June 17.

including Lincoln and Mercury of the US.6%) but ahead of Toyota (15. 1903. Ford produced about 6. to Khairtabad RTA. Ford was also the seventh-ranked American-based company in the 2007 Fortune 500 list. Ford had more quality awards from J. and low prices revolutionized manufacturing and came to be known around the world as Fordism by 1914.D Power than any other automaker.6 million automobiles.com Ford Motor Company is an American multinational corporation and the world's third largest automaker based on worldwide vehicle sales. In 2006.4%) and DaimlerChrysler (14. Jaguar and Land Rover of the UK. Ford also owns a one-third controlling interest in Mazda.Built for Life in Canada Feel the difference Make Everyday Exciting Website www. Michigan. In 2006. Based in Dearborn. Ford now encompasses many global brands. a suburb of Detroit. adjacent to Eenadu office and just opp. Ford introduced methods for large-scale manufacturing of cars and largescale management of an industrial workforce. Henry Ford's combination of highly efficient factories. The facilities offered from the showroom are : . SHOWROOM We have 5000 sft centrally air conditioned showroom. In 2007. especially elaborately engineered manufacturing sequences typified by moving assembly lines.4%). based on global revenues of $160.ford. located in the heart of the city in Somajiguda.5% market share. the automaker was founded by Henry Ford and incorporated in June 16. Ford was the second-ranked automaker in the US with a 17. This makes convenient for almost every one residing in and around Hyderabad and Secunderabad. and Volvo of Sweden. and the number two automaker worldwide.1 billion. behind General Motors (24. Ford has been one of the world's ten largest corporations by revenue and in 1999 ranked as one of the world's most profitable corporations.000 employees at about 100 plants and facilities worldwide. and employed about 280. highly paid workers.

4. A good stock of Ford genuine accessories to make your Ford ownership more delightful and safe. 7. SUNDARAM. 2. HDFC.E. in just a month after booking. Special offers on Insurance renewals. followed by the petrol and diesel driven 'Anniversary'. Exchange offer for any of your used car. SBI. 5. and Ford cars with all models to choose 6. You can also renew your insurance by just making call to our Service marketing help line 9848885962. Alpha and Sport .1. 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. Ford preferred insurance for cashless transactions in the event of claims. Significant milestones • • • The first Indian built Ford Escort rolled off the assembly line in 1996. Free spot evaluation for any usedcar. You can call our sales help line for test drive or fill the on-line test drive requisition form. 3. All the leading finance counters are available like ICICI. Professionally trained and courteous sales staff to take care of every relevant needs of the customers. with commemorative 'Freedom'. Recent SVPs have included the Orion. . etc. Very easy finance facility with in-house finance team to cater to your every car finance requirements. The Company was able to deliver Ford Escorts in seven major cities simultaneously. • Ford Escort won the J D Power Award in India Quality Survey in 1997.Full range of colors from. KOTAK. The Special Value Pack program was launched in 1997.

a new initiative to buy and sell used cars of all makes. The new. 2004: Autocar SUV of the Year – Winner Ford Endeavour. On September 11. Ford's branded service initiative. Supply and Total Value Management . QualityCare. 2002 Ford India received the QS 9000 award from TÜV Süddeutschland. Power India Sales Satisfaction Study. Ford India launched the Ford IKON SXi – the stylish ‘josh’ machine Ford India has started exporting Ford IKON Ford India launched the Ford Mondeo.’ Ford Celebrates Centennial in India. Ford India show cases a wide spectrum of exciting cars at the Auto Expo Ford India Limited announced a strategic partnership with Hindustan Motors Limited (HML).D. SANDIP SANYAL – Vice President. New Ikon Variant 1.Ford India launches Ikon NXT ‘Finesse. 4. LAND ROVER DISCOVERY 3 scoops category win at TOWCAR AWARDS 2007 FORD MONDEO is the Caravan Club TOWCAR of the year 2008. Certified QS 9000: 1998. 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. 2000. 3rd edition on March 21. provides car owners with superior services at its dealership countrywide. in the Customer Satisfaction Survey. where FORD IKON is manufactured. Ford India launches Ikon NXT SXi.95 Lakhs. Ford launches Ikon Flair at Rs. integrated manufacturing plant was dedicated in March 1999.The Next Level of Josh.• • • • • • 2001 2002 • • • • 2003: • • • • • • Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998.6 EXi was launched The New Ford Ikon NXT launched . FORD MONDEO IS AUTO EXPRESS car of the year. Ford India launched Ford Assured on April 24 2000. Ford India Ranks Highest in J. Adding Refinement to Josh.

Ford India. formal . CHAPTER 4 Top of Form ORGANIZATIONAL STRUCTUR organigational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. President and Managing Director. Sandip reports to Arvind Mathew. Supply and Total Value Management (TVM) at Ford India. When a work group is very small and face-to-face communication is frequent. He took this position in September 2005.Sandip Sanyal is the Vice President.

but in a larger organization decisions have to be made about the delegation of various tasks. and for managers. and geographical or product markets. . vertically-arranged organizational structures. revenue. its size in terms of employees. The best organizational structure for any organization depends on many factors including the work it does. The second section provides additional details of traditional. Over time these definitions are assigned to positions in the organization rather than to specific individuals.S. is that organizational structure has a certain inertia—the idea borrowed from physics and chemistry that something in motion tends to continue on that same path. The following sections explain these patterns and provide the historical context from which some of them arose. procedures are established that assign responsibilities for various functions. employees' responsibilities typically are defined by what they do. function. but still operational steel mills such as U. Changing an organization's structure is a daunting managerial task. The first section addresses organizational structure in the twentieth century. why are the old. It is these decisions that determine the organizational structure. and the geographic dispersion of its facilities. Next is a discussion of combination structures. In an organization of any size or complexity. and the immensity of such a project is at least partly responsible for why organizational structures change infrequently. as this section discusses. who they report to. who reports to them. capitalizing on the innovativeness of their employees? Part of the reason. and the range of its businesses (the degree to which it is diversified across markets). but there are a few basic principles that apply and a small number of common patterns. Thus. Steel and Bethlehem Steel structured using vertical hierarchies? Why are newer steel mini-mills such as Chaparral Steel structured more horizontally. or matrix organizations. The relationships among these positions are illustrated graphically in an organizational chart (see Figures 1a and 1b).structure may be unnecessary. There are multiple structural variations that organizations can take on. This is followed by descriptions of several alternate organizational structures including those arranged by product. ORGANIZATIONAL STRUCTURE DURING THE TWENTIETH CENTURY Understanding the historical context from which some of today's organizational structures have developed helps to explain why some structures are the way they are. The discussion concludes by addressing emerging and potential future organizational structures. For instance.

Also influential were Fayol's ideas of invoking unity within the chainof-command.At the beginning of the twentieth century the United States business sector was thriving. because his writings were not translated into English until 1949. where power is ascribed to positions rather than to the individuals holding those positions. Henry Ford's plants were typical of this . It also was influenced by Taylor's scientific management. or bureaucratic structure. authority. and standard operating procedures. and thinkers like Frederick Taylor in the United States and Henri Fayol in France studied the new systems and developed principles to determine how to structure organizations for the greatest efficiency and productivity. bureaucracy is the inevitable result. a hierarchical reporting structure through a tightly-knit chain-ofcommand. task specialization. which in their view was very much like a machine. discipline. and the subordination of individual interests to the superordinate goals of the organization combined to result in organizations arranged by functional departments with order and discipline maintained by rules. Industry was shifting from job-shop manufacturing to mass production. Job specialization. and other aspects of organizational power and job separation. Yet. German sociologist and engineer Max Weber had concluded that when societies embrace capitalism. This classical view. regulations. This created the context for verticallystructured organizations characterized by distinct job classifications and top-down authority structures. Management thought during this period was influenced by Weber's ideas of bureaucracy. or what became known as the traditional or classical organizational structure. Even before this. or the "one best way" to accomplish a task using scientifically-determined studies of time and motion. of organizations was the dominant pattern as small organizations grew increasingly larger during the economic boom that occurred from the 1900s until the Great Depression of the 1930s. Weber's work had little influence on American management practice until the middle of the twentieth century.

The structure of every organization is unique in some respects. It was replaced by concerns that traditional organizational structures might prevent. promote creativity and innovation—both of which were necessary as the century wore on and pressures to compete globally mounted. automaker by the 1920s. employees. as the emerging Ford Motor Company grew into the largest U. TRADITIONAL ORGANIZATIONAL STRUCTURE While the previous section explained the emergence of the traditional organizational structure. The "one best way" to do a job gradually disappeared as the dominant logic. Studies of employee motivation raised questions about the traditional model.S. and geographic dispersion. came increasing complexity. rather than help. bureaucratic structures intact as public attention shifted to World War II. however. Along with increasing growth.S. Problems in U.Figure 1a Organizational Structure growth. economic growth.S. The Great Depression temporarily stifled U. business structures became apparent and new ideas began to appear. but all organizational structures develop or are consciously designed to . powering organizations that survived the Great Depression toward increasing size in terms of sales revenue. but organizations that survived emerged with their vertically-oriented. Postwar rebuilding reignited economic growth. this section provides additional detail regarding how this affected the practice of management.

enable the organization to accomplish its work. Typically, the structure of an organization evolves as the organization grows and changes over time. Researchers generally identify four basic decisions that managers have to make as they develop an organizational structure, although they may not be explicitly aware of these decisions. First, the organization's work must be divided into specific jobs. This is referred to as the division of labor. Second, unless the organization is very small, the jobs must be grouped in some way, which is called departmentalization. Third, the number of people and jobs that are to be grouped together must be decided. This is related to the number of people that are to be managed by one person, or the span of control—the number of employees reporting to a single manager. Fourth, the way decision-making authority is to be distributed must be determined. In making each of these design decisions, a range of choices are possible. At one end of the spectrum, jobs are highly specialized with employees performing a narrow range of activities, while at the other end of the spectrum employees perform a variety of tasks. In

Figure 1b Organizational Structure
traditional bureaucratic structures, there is a tendency to increase task specialization as the organization grows larger. In grouping jobs into departments, the manager must decide the basis on which to group them. The most common basis, at least until the last few decades, was by function. For example, all accounting jobs in the organization can be grouped into an accounting department, all engineers can be grouped into an engineering department, and so on. The size of the groupings also

can range from small to large depending on the number of people the managers supervise. The degree to which authority is distributed throughout the organization can vary as well, but traditionally structured organizations typically vest final decision-making authority by those highest in the vertically structured hierarchy. Even as pressures to include employees in decision-making increased during the 1950s and 1960s, final decisions usually were made by top management. The traditional model of organizational structure is thus characterized by high job specialization, functional departments, narrow spans of control, and centralized authority. Such a structure has been referred to as traditional, classical, bureaucratic, formal, mechanistic, or command and control. A structure formed by choices at the opposite end of the spectrum for each design decision is called unstructured, informal, or organic. The traditional model of organizational structure is easily represented in a graphical form by an organizational chart. It is a hierarchical or pyramidal structure with a president or other executive at the top, a small number of vice presidents or senior managers under the president, and several layers of management below this, with the majority of employees at the bottom of the pyramid. The number of management layers depends largely on the size of the organization. The jobs in the traditional organizational structure usually are grouped by function into departments such as accounting, sales, human resources, and so. Figures 1a and 1b illustrate such an organization grouped by functional areas of operations, marketing and finance.

BASIS FOR DEPARTMENTALIZATION
As noted in the previous section, many organizations group jobs in various ways in different parts of the organization, but the basis that is used at the highest level plays a fundamental role in shaping the organization. There are four commonly used bases.

FUNCTIONAL DEPARTMENTALIZATION.
Every organization of a given type must perform certain jobs in order do its work. For example, key functions of a manufacturing company include production, purchasing, marketing, accounting, and personnel. The functions of a hospital include surgery, psychiatry, nursing, housekeeping, and billing. Using such functions as the basis for structuring the organization may, in some instances, have the advantage of efficiency. Grouping jobs that require the same knowledge, skills, and resources allows them to be done efficiently and promotes the development of greater expertise. A disadvantage of functional groupings is that people with the same skills and knowledge may develop a narrow departmental focus and have difficulty

appreciating any other view of what is important to the organization; in this case, organizational goals may be sacrificed in favor of departmental goals. In addition, coordination of work across functional boundaries can become a difficult management challenge, especially as the organization grows in size and spreads to multiple geographical locations.

GEOGRAPHIC DEPARTMENTALIZATION.
Organizations that are spread over a wide area may find advantages in organizing along geographic lines so that all the activities performed in a region are managed together. In a large organization, simple physical separation makes centralized coordination more difficult. Also, important characteristics of a region may make it advantageous to promote a local focus. For example, marketing a product in Western Europe may have different requirements than marketing the same product in Southeast Asia. Companies that market products globally sometimes adopt a geographic structure. In addition, experience gained in a regional division is often excellent training for management at higher levels.

PRODUCT DEPARTMENTALIZATION.
Large, diversified companies are often organized according to product. All the activities necessary to produce and market a product or group of similar products are grouped together. In such an arrangement, the top manager of the product group typically has considerable autonomy over the operation. The advantage of this type of structure is that the personnel in the group can focus on the particular needs of their product line and become experts in its development, production, and distribution. A disadvantage, at least in terms of larger organizations, is the duplication of resources. Each product group requires most of the functional areas such as finance, marketing, production, and other functions. The top leadership of the organization must decide how much redundancy it can afford.

CUSTOMER/MARKET DEPARTMENTALIZATION.
An organization may find it advantageous to organize according to the types of customers it serves. For example, a distribution company that sells to consumers, government clients, large businesses, and small businesses may decide to base its primary divisions on these different markets. Its personnel can then become proficient in meeting the needs of these different customers. In the same way, an organization that provides services such as accounting or consulting may group its personnel according to these types of customers. Figure 2 depicts an organization grouped by customers and markets.

production. These personnel then work under the . For example. and marketing. for this project. engineering. it obtains personnel from functional departments such as research. Functional departmentalization commonly is combined with product groups on a project basis. One approach that attempts to overcome the inadequacies is the matrix structure. which is the combination of two or more different structures. a product group wants to develop a new addition to its line.Figure 2 Customer/Market Organization Figure 3 Matrix Structure MATRIX ORGANIZATIONAL STRUCTURE Some organizations find that none of the afore-mentioned structures meet their needs.

STRATEGIC BUSINESS UNITS As corporations become very large they often restructure as a means of revitalizing the organization. and distribution of their own product or service line. Growth of a business often is accompanied by a growth in bureaucracy. Rather than duplicating functions as would be done in a simple product department structure. Continued changes in the organization or in the external business environment may make this bureaucracy a hindrance rather than a help. while managers of geographic regions have responsibility for the success of the business in their regions. not simply because of the size or complexity of the organization but also because of a sluggish bureaucratic way of thinking. The disadvantages of a matrix organization arise from the dual reporting structure. maintaining functional departments promotes functional expertise. One approach to encourage new ways of thinking and acting is to reorganize parts of the company into largely autonomous groups. as positions are created to facilitate developing needs or opportunities. Large multinational corporations that use a matrix structure most commonly combine product groups with geographic units. Product managers have global responsibility for the development. other bases can be related in a matrix. but in practice power struggles between the functional and product manager can prevent successful implementation of matrix structural arrangements. top management is responsible for arbitrating such conflicts. manufacturing. In some cases. The organization's top management must take particular care to establish proper procedures for the development of projects and to keep communication channels clear so that potential conflicts do not arise and hinder organizational functioning. In theory at least. highly specialized staff may divide their time among more than one project. One advantage of a matrix structure is that it facilitates the use of highly specialized staff and equipment. which can vary greatly. In addition. These personnel are responsible to two managers (as shown in Figure 3). while at the same time working in project groups with experts from other functions fosters cross-fertilization of ideas. resources are shared as needed.manager of the product group for the duration of the project. Besides the product/function matrix. .

Figure 4 SBU Structure called strategic business units (SBUs). but mostly downward. all parts of the organization need each other. but may be a hindrance in rapidly changing environments. The SBUs might be based on product lines. Figure 4 depicts SBUs organized by geographic area. geographic markets. who reports to whom. Such vertical integration is sometimes necessary. with full profit and loss responsibility invested in the top management of the unit—often the president of the unit and/or a senior vice president of the larger corporation. In any organization. EMERGING TRENDS IN ORGANIZATIONAL STRUCTURE Except for the matrix organization. decision making flows vertically up and down the layers. This arrangement can be seen as taking any of the aforementioned departmentalization schemes one step further. who has responsibility and authority for what parts of the organization. the different people and functions do not operate completely independently. this is an issue of interdependence. Such units generally are set up like separate companies. A detailed organizational chart of a large corporation structured on the traditional model would show many layers of managers. Important developments in organizational design in the last few decades of the twentieth century and the early part of the twenty-first century have been attempts to understand the nature of interdependence and improve the functioning of . In general terms. To a greater or lesser degree. This manager is responsible to the top management of the corporation. all the structures described above focus on the vertical organization. and so on. that is. or other differentiating factors.

In contrast. where managers. suppliers. Decision-making and goal-setting processes are shared at all levels. companies also have drastically reduced the number of managers as part of a downsizing strategy. the organic model of organization is relatively simple because it de-emphasizes job specialization. but also to streamline the organization in order to improve communication and decision making. The use of computer networks and software designed to facilitate group work within an organization can speed communications and decision making. to develop the horizontal connections and de-emphasize vertical reporting relationships. department management. A common way that modern business organizations move toward the organic model is by the implementation of various kinds of teams. for problem solving) or on a permanent basis as the regular means of conducting the organization's work. cross-functional teams may be established. and customers connect digitally rather than physically. involving workers in problem solving and . At other organizational levels. technicians. Part of the impetus toward the organic model is the belief that this kind of structure is more effective for employee motivation. Examples include production cells in a manufacturing firm or customer service teams in an insurance company. plant management. A different perspective on the issue of interdependence can be seen by comparing the organic model of organization with the mechanistic model. and centralized authority and accountability.g. The traditional. mechanistic structure is characterized as highly complex because of its emphasis on job specialization. Some organizations establish self-directed work teams as the basic production group. highly formalized emphasis on definite procedures and protocols. and communication ideally flows more freely throughout the organization. not just to reduce salary expense. Some U. One approach is to flatten the organization. In a virtual sense.organizations in respect to this factor. and section management. Aid Association for Lutherans is a large insurance organization that has adopted the self-directed work team approach. At times. despite the advantages of coordination that these structures present. either on an ad hoc basis (e. and decentralizes authority. they may hinder tasks that are interdependent. The rapid rise of such technology has made virtual organizations and boundarlyless organizations possible. Even more effective is the use of intranets to make company information readily accessible throughout the organization. distributors. Yet. technology is another means of flattening the organization. this involves simply eliminating layers of middle management.. is relatively informal.S. Various studies have suggested that steps such as expanding the scope of jobs. some Japanese companies—even very large manufacturing firms—have only four levels of management: top management. For example.

Saturn Corporation. rather than a pyramid. These teams make most. . Representatives from each team form the decision circle of the module. Among organizations of all sizes. It was started with a "clean sheet of paper. A number of modules form a Business Team.S. which oversees manufacturing. alliances. and ambidextrous organizations are impacting managers' thinking about their organizational structure. concepts such as agile manufacturing. Several such teams make up a wider circle called a Work Unit Module. just-in-time inventory management. The president of Saturn." with the intention to learn and incorporate the best in business practices in order to be a successful U. which makes decisions affecting more than one team or other modules. finally. a subsidiary of General Motors (GM). The early twenty-first century has been dominated by the thinking that changing organizational structures. Indeed. called a Work Unit. mergers. can be a necessary condition for competitive success. Representatives of each Business Team form the Manufacturing Action Council. THE FUTURE Industry consolidation—creating huge global corporations through joint ventures. few leaders were likely to blindly implement the traditional hierarchical structure common in the first half of the century. reports to GM headquarters. if not all. of which there are three in manufacturing. decision making is done on a consensus basis. decisions that affect only team members. At the center is the self-directed production cell. The organizational structure that it adopted is described as a set of nested circles. and other kinds of interorganizational cooperative efforts—has become increasingly important in the twenty-first century. auto manufacturer. and fostering open communications bring greater job satisfaction and better performance. emphasizes horizontal organization. At all levels. Leaders from the modules form the decision circle of the Business Team. at least in theory. while still a monumental managerial challenge. The first half of the twentieth century was dominated by the one-size-fits-all traditional structure.planning.

0L Zetec HP and 4. They are unnecessary and could lead to engine damage that is not covered by Ford warranty. They are unnecessary and could lead to engine damage that is not covered by Ford warranty. Do not use supplemental engine oil additives. Only use oils "Certified For Gasoline Engines" by the American Petroleum Institute (API).CHAPTER 5 RECOMMENDATION Ford 2004 MY Engine Oil Recommendations Most Engines SAE 5W-20 engine oil is recommended. cleaners or other engine treatments. 2. SAE 5W-30 engine oil is recommended. SAE 5W-20 oil provides optimum fuel economy and durability performance meeting all requirements for your vehicle's engine. To protect your engine's warranty use Motorcraft SAE 5W-30 or an equivalent SAE 5W-30 oil meeting Ford specification WSS-M2C205-A. cleaners or other engine treatments. Do not use supplemental engine oil additives. Only use oils "Certified For Gasoline Engines" by the American Petroleum Institute (API).0L Engines Look for this certification trademark. To protect your engine's warranty use Motorcraft SAE 5W-20 or an equivalent SAE 5W-20 oil meeting Ford specification WSS-M2C153-H. Change your engine oil according to the appropriate schedule listed in the Scheduled . Change your engine oil according to the appropriate schedule listed in the Scheduled Maintenance Guide.

This specification was released originally for service fill engine oils meeting the 2001 model vehicle requirements.4 ASTM L-38 meeting requirements of ILSAC GF-2 may be conducted to replace ASTM Sequence VIII.2. mg 30 max (TEOST MHT-4) 3. REQUIREMENTS Material specification requirements are to be used for initial qualification of materials. Sections titled QUALITY SYSTEM REQUIREMENTS. and APPROVAL OF MATERIALS apply only to engine oils supplied directly to Ford Motor Company and it's affiliates. 3.2.4 min OR Date Action Revisions 2001 01 12 Revised M. following change: Viscosity Increase at 40 °C 200% max 3. ENGINEERING MATERIAL SPECIFICATION Material Name Specification Number OIL.2.1 This requirement changes the ILSAC GF-3 ASTM Sequence IIIF test performance criteria to the following: ` ASTM Sequence IIIE Test Performance shall meet conducted double length all specifications of (128 hrs) with no oil the 64 hr test with the change during test.Maintenance Guide. All required engine tests shall be conducted in accordance with the most recently approved procedures as described in ASTM Special Technical Publication 315 and the applicable ASTM Standards Research Reports and Information Letters. APPLICATION This material is used for lubrication of gasoline engines. ILSAC GF-3. following changes: Viscosity Increase at 40 °C 200% max Average Piston Varnish 8.2. 3. SCOPE This material specification defines the minimum acceptable performance requirements and physical/chemical properties of engine oils to be used in Ford Motor Company vehicles. Riley ENGINEERING MATERIAL SPECIFICATION WSS-M2C153-H ASTM Sequence IIIF Test Performance shall meet conducted double length all specifications of (160 hrs) with no oil the 80 hr test with the change during test. SUPPLIER'S RESPONSIBILITY. J. J.3 ASTM Sequence VE meeting requirements of ILSAC GF-2 may be conducted to replace the ASTM Sequence IVA and Sequence VG tests.2 PERFORMANCE Shall be licensed to display the API Certification Mark and meet all the requirements of the “ILSAC Minimum Performance Standard for Passenger Car Engine Oils GF-3” (October 2000) with the following exceptions: 3. ENGINE. Riley 2000 04 10 Activated M. All tests under surveillance by ASTM must be .2 High Temperature Deposits.1 QUALITY SYSTEM REQUIREMENTS Material suppliers and part producers must conform to the Company's Quality System Requirements. SAE 5W-20. WSS-M2C153-H SERVICE FILL 1. 2. 3. 3.

3. ENGINEERING MATERIAL SPECIFICATION WSS-M2C153-H 3. which require prior Engineering approval.5 SUPPLIER'S RESPONSIBILITY All materials supplied to this specification must be equivalent in all characteristics to the material upon which approval was originally granted. and Materials Engineering activities (with reasons) of the proposed changes.3. Product Engineering materials referenced in this document and/or the affected engineering drawing.3 Contaminants Shall be free of carcinogens.3. 3. if requested. the Supplier shall notify the affected Purchasing. 2. The restrictions are identified in Restricted Substance Management Standard WSS-M99P9999-A1. ENGINEERING MATERIAL SPECIFICATION Material Name Specification Number OIL. Prior to making any changes to the material originally approved under this specification. 4. ENGINE.1 Copper Corrosion.2 Physical Appearance and Odor Shall be clear and bright with no objectionable odor.3 PHYSICAL/CHEMICAL PROPERTIES 3. Substance restrictions imposed by regulations or Company direction applies to the materials addressed by this document.3. The affected Ford Fuels and Lubricants Engineering activity reserves the right to request certification documentation from any company claiming to meet this specification. APPROVAL OF MATERIALS This specification is intended to define the performance and/or properties of finished parts or systems of combined materials. This specification was released originally for service fill engine oils meeting the 2002 model vehicle requirements for viscosity grades other . further instructions will be provided. max 1b (Dark Orange) (ASTM D 130 or ISO 2160.4 QUALIFICATION It is the supplier's responsibility to have the technical evidence and documentation certifying that a given formulation (base oil/additive combination) meets all requirements described in this specification. 3 hrs at 100 °C) 3. metals not removed in refining or from previous use. 3. ILSAC GF-3. No base stock interchange (BOI) or viscosity grade read across (VGRA) is permitted to approve engine oils to this specification. SERVICE FILL WSS-M2C205-A 1. Upon notification of the Company. SCOPE This material specification defines the minimum acceptable performance requirements and physical/chemical properties of engine oils to be used in Ford Motor Company vehicles. toxins. are shown in the Engineering Material Approved Source List under the specification cited. An Engineering Material Approved Source listing is not applicable for this specification. whether or not such changes affect the material's ability to meet the specification requirements. APPLICATION This material is used for lubrication of gasoline engines. Note: Suppliers should be prepared to provide test data and samples demonstrating compliance to this specification.conducted using test equipment monitored by and calibrated to the requirements of the ASTM Test Monitoring Center.

3 h at 100 C) 3. Upon notification of the Company. 3.3.2 PERFORMANCE Shall meet all the requirements of "The ILSAC GF-3 Minimum Performance Standard For Passenger Car Engine Oils" and shall be licensed to display the API Certification Mark. and APPROVAL OF MATERIALS apply only to engine oils supplied directly to Ford Motor Company and it's affiliates. APPROVAL OF MATERIALS This specification is intended to define the performance and/or properties of finished parts or systems of combined materials. max 1b (Dark Orange) (ASTM D 130 or ISO 2160. the Supplier shall notify the affected Purchasing. 3.1 QUALITY SYSTEM Material suppliers and part producers must conform to the Company's Quality System requirements. Sections titled QUALITY SYSTEM REQUIREMENTS. Product Engineering materials referenced in this document and/or the affected engineering drawing.than SAE 5W-20.1 Copper Corrosion. whether or not such changes affect the material's ability to meet the specification requirements.2 Physical Appearance and Odor Shall be clear and bright with no objectionable odor. Note: Suppliers should be prepared to provide test data and samples demonstrating compliance to this specification. are shown in . The restrictions are identified in Restricted Substance Management Standard WSS-M99P9999-A1. An Engineering Material Approved Source listing is not applicable for this specification. and Materials Engineering activities (with reasons) of the proposed changes. 4.5 SUPPLIER'S RESPONSIBILITY All materials supplied to this specification must be equivalent in all characteristics to the material upon which approval was originally granted. Date Action Revisions 2001 03 13 Activated M. metals from refining or previous use. 3. Riley ENGINEERING MATERIAL SPECIFICATION WSS-M2C205-A 3.4 QUALIFICATION It is the supplier's responsibility to have the technical evidence and documentation certifying that a given formulation (base oil/ additive combination) meets all requirements described in this specification. Substance restrictions imposed by regulations or Company direction applies to the materials addressed by this document. 3. 3. REQUIREMENTS Material specification requirements are to be used for initial qualification of materials. which require prior Engineering approval. further instructions will be provided. SUPPLIER'S RESPONSIBILITY. Prior to making any changes to the material originally approved under this specification.3. J. The affected Ford Fuels and Lubricants Engineering activity reserves the right to request certification documentation from any company claiming to meet this specification.3. toxins. 3.3 Contaminants Shall be free of carcinogens. if requested.3 PHYSICAL/CHEMICAL PROPERTIES 3.

Cleaner Air Ford endorses the use of reformulated "cleaner-burning" gasolines to improve air. However. many fuels contain metallic additives. If the problems persist. Ask your fuel supplier about gasolines that meet the World-wide Fuel Charter. Ford 2004 MY Regular Fuel Recommendation Choosing the right fuel Use only UNLEADED FUEL. Gasolines that meet the World-wide Fuel Charter should be used when available. Fuel quality If you are experiencing starting. Do not be concerned if your engine sometimes knocks lightly. Repairs to correct the effects of using an aftermarket product in your fuel may not be covered by your warranty. Repairs to correct the effects of using a fuel for which your vehicle was not designed may not be covered by your warranty. if it knocks heavily under most driving conditions while you are using fuel with the recommended octane rating. Studies indicate that these additives can cause your vehicle's emission control system to deteriorate more rapidly. In Canada. check with your local fuel dealer. but fuels free of such additives may be available.the Engineering Material Approved Source List under the specification cited. Your vehicle was not designed to use fuel or fuel additives with metallic compounds. We do not recommend the use of gasolines labeled as “Regular” that are sold with octane ratings of 86 or lower in high altitude areas. rough idle or hesitation driveability problems during a cold start. see your dealer or a qualified service technician to prevent any engine damage. see your dealer or a qualified service technician. It can damage critical fuel system components. try a different brand of “Regular” unleaded gasoline. Aftermarket products could cause damage to the fuel system. “Premium” unleaded gasoline is not recommended because it may cause these problems to become more pronounced. VALUABLE SUGGESTIONS GIVEN BY FORD CUSTOMERS: . It should not be necessary to add any aftermarket products to your fuel tank if you continue to use high quality fuel of the recommended octane rating. Octane recommendations Your vehicle is designed to use “Regular” unleaded gasoline with pump (R+M)/2 octane rating of 87. Many of the world’s automakers approved the World-wide Fuel Charter that recommends gasoline specifications to provide improved performance and emission control system protection for your vehicle. Do not use fuel containing methanol. including manganese-based additives. The use of leaded fuel is prohibited by law and could damage your vehicle.

where many customers feel it easy to go to service centers. ✔ Advertisements through televisions can influence many categories of people.S. ✔ Customer should be educated about the maintenance of the vehicle. ✔ Mileage of Fiesta is very worst its giving only 9 to 11 Kms per liter. ✔ Keep Service Stations at main locations of the city.✔ Please try to increase the number of Service centers. like Banjara Hills. Please recruit efficient service men in the service centers. Please try to rectify it. ✔ There is no proper response from the service men at service station.NAMAKUMARI . ✔ Please provide information about new cars along with their price lists at least once in 6 months. ✔ The quality of the sun proof coating used is of very low quality. CHAPTER 6 BIBLIOGRAPHYS REFERANCE BOOKS: MARKETING MANAGEMENT V. ✔ The sales people present in the showroom respond to us properly when we come to purchase a new car. ✔ Mileage of the cars is not up to the expectations. ✔ The service men in the service centers are unable to understand the problems told by us. ✔ Provide information on service and mileage regularly.e.. Begumpet etc.V except Fiesta. ✔ Try to provide financial facility at 0% interest. maintenance tips should be provided. We don’t see or find much of the Ford car advertisements in T. but they do not respond when we come to tell our problems regarding the cars. vehicle colour is getting shaded very quickly. and they are not resolving the cars problems. So try to concentrate on this segment. ✔ Please send the specially appointed feed back taking staff on Sunday evenings only.RAMASWAMY AND S. Jubilee Hills. i.

wikipedia.ADVERTISING AND PROMOTIONS GEORGE E.com AUTO MAGAZINES:  AUTOCAR  OVERDRIVE .com www.google.com www.fordindia.BELCH & MICHAEL A.fortuneford. BELCH WEBLIOGRAPHY:: www.com www.

Various studies have suggested that steps such as expanding the scope of jobs. auto manufacturer.S. which makes decisions affecting more than one team or other modules. Saturn Corporation. Examples include production cells in a manufacturing firm or customer service teams in an insurance company. Aid Association for Lutherans is a large insurance organization that has adopted the self -directed work team approach. finally. A common way that modern business organizations move toward the organic model is by the implementation of various kinds of teams. rather than a pyramid. and communication ideally flows more freely throughout the organization . for problem solving) or on a permanent basis as the regular means of conducting the organization's work.. Representatives from each team form the decision circle of the module. At all levels. of which there are three in manufacturing. called a Work Unit. The organizational structure that it adopted is described as a set of nested circles. and fostering open communications bring greater job satisfaction and better performance. decision making is done on a consensus basis. At other organizational levels. either on an ad hoc basis (e. A number of modules form a Business Team. which oversees manufacturing.authority. reports to GM headquarters. involving workers in problem solving and planning. Several such teams make up a wider circle called a Work Unit Module. Leaders from the modules form the decision circle of the Business Team.g. Part of the impetus toward the organic model is the belief that this kind of structure is more effective for employee motivation. Decision-making and goal-setting processes are shared at all levels. at least in theory. At the center is the self -directed production cell. cross -functional teams may be established. These teams make most. mergers. if not all. decisions that affect only team members." with the intention to learn and incorporate the best in business practices in order to be a successful U. Representatives of each Business Team form the Manufacturing Action Council. emphasizes horizontal organization. and other kinds of interorganizational cooperative efforts ²has . The president of Saturn. It was started with a "clean sheet of paper. a subsidiary of General Motors (GM). alliances. THE FUTURE Industry consolidation²creating huge global corporations through joint ventures. Some organizations establish self-directed work teams as the basic production group.

and ambidextrous organizations are impacting managers' thinking about their organizational structure. .become increasingly important in the twenty -first century. The early twenty-first century has been dominated by the thinking that changing organizational structures. just -in-time inventory management. few leaders were likely to blindly implement the traditional hierarchica l structure common in the first half of the century. Indeed. while still a monumental managerial challenge. Among organizations of all sizes. concepts such as agile manufacturing. The first half of the twentieth century was dominated by the one -size-fits-all traditional structure. can be a necessary condition for competitive success.

and APPROVAL OF MATERIALS apply only to engine oils supplied directly to Ford Motor Company and it's affiliates. They are unnecessary and could lead to engine damage that is not covered by Ford warranty. SAE 5W-30 engine oil is recommended. Do not use supplemental engine oil additives. REQUIREMENTS . 2. cleaners or other engine treatments. To protect your engine's warranty use Motorcraft SAE 5W -20 or an equivalent SAE 5W-20 oil meeting Ford specification WSS -M2C153-H.CHAPTER 5 RECOMMENDATION Ford 2004 MY Engine Oil Recommendations Most Engines SAE 5W-20 engine oil is recommended. Change your engine oil according to the appropriate schedule listed in the Scheduled Maintenance Guide. Do not use supplemental engine oil additives. ENGINEERING MATERIAL SPECIFICATION Material Name Specification Nu mber OIL. Sections titled QUALITY SYSTEM REQUIREMENTS. APPLICATION This material is used for lubrication of gasoline engines. They are unnecessary and could lead to engine damage that is not covered by Ford warranty. Only use oils "Certified For Gasoline Engines" by th e American Petroleum Institute (API). WSS-M2C153-H SERVICE FILL 1.0L Engines Look for this certification trademark. cleaners or other engine treatments. SCOPE This material specification defines the minimum acceptable performance requirements and physical/chemical properties of engine oils to be used in Ford Motor Company vehicles. 3. ENGINE. 2. Only use oils "Certified For Gasoline Engines" by the American Petroleum Institute (API). SAE 5W-20 oil provides optimum fuel economy and durability performance meeting all requirements for your vehicle's engine. SAE 5W-20.0L Zetec HP and 4. Change your engine oil according to the appropriate schedule listed in the Scheduled Maintenance Guide. ILSAC GF-3. To protect your engine's warranty use Motorcraft SAE 5W -30 or an equivalent SAE 5W-30 oil meeting Ford specification WSS -M2C205-A. SUPPLIER'S RESPONSIBILITY. This specification was released originally for service fill engine oils meeting the 2001 model vehicle requirements.

1 Copper Corrosion.3 PHYSICAL/CHEMICAL PROPERTIES 3.4 QUALIFICATION It is the supplier's responsibility to have the technical evidence and . 3.1 This requirement changes the ILSAC GF -3 ASTM Sequence IIIF test performance criteria to the following: ` ASTM Sequence IIIE Test Performance shall meet conducted double length all sp ecifications of (128 hrs) with no oil the 64 hr test with the change during test. Riley 2000 04 10 Activated M.2. toxins.3 Contaminants Shall be free of carcinogens.3. 3 hrs at 100 °C) 3.Material specification requirements are to be used for initial qualification of materials.3.2.4 min OR Date Action Revisions 2001 01 12 Revised M. 3. 3. All tests under surveillance by ASTM must be conducted using test equipment monitored by and calibrated to the requirements of the ASTM Test Monitoring Center. All required engine tests shall be conducted in accordance with the most recently approved procedures as described in ASTM Special Technical Publication 315 and the applicable ASTM Standards Research Reports and Information Letters. metals not removed in refining or from previous use. 3.3 ASTM Sequence VE meeting requirements of ILSAC GF -2 may be conducted to replace the ASTM Sequence IVA and Sequence VG tests.4 ASTM L-38 meeting requirements of ILSAC GF-2 may be conducted to replace ASTM Sequence VIII. Rile y ENGINEERING MATERIAL SPECIFICATION WSS-M2C153-H ASTM Sequence IIIF Test Performance shall meet conducted double length all specifications of (160 hrs) with no oil the 80 hr test with the change during test. max 1b (Dark Orange) (ASTM D 130 or ISO 2160. following changes: Viscosity Increase at 40 °C 200% max Average Piston Varnish 8.2.2.1 QUALITY SYSTEM REQUIREMENTS Material suppliers and part producers must conform to the Company's Quality System Requirements. 3.2 High Temperature Deposits.2 Physical Appearance and Odor Shall be clear and bright with no objectionable odor. J. J.3. 3.2 PERFORMANCE Shall be licensed to display the API Certification Mark and meet all the requirements of the ³ILSAC Minimum Performance Standard for Passenger Car Engine Oils GF-3´ (October 2000) with the following exceptions: 3. mg 30 max (TEOST MHT-4) 3. following change: Viscosity Increase at 40 °C 200% max 3.

ENGINEERING MATERIAL SPECIFICATION Material Name Specification Number OIL. An Engineering Material Approved Source listing is not applicable for this specification. REQUIREMENTS Material specification requirements are to be used for initial qualification of materials. 3. further instructions will be provided.5 SUPPLIER'S RESPONSIBILITY All materials supplied to this specification must be equivalent in all characteristics to the material upon which approval was originally granted. the Supplier shall notify the affected Purchasing. which require prior Engineering approval. if requested. SUPPLIER'S RESPONSIBILITY. ENGINE. No base stock interchange (BOI) or viscosity grade read across (VGRA) is permitted to approve engine oils to this specification. APPROVAL OF MATERIALS This specification is intended to define t he performance and/or properties of finished parts or systems of combined materials. ENGINEERING MATERIAL SPECIFICATION WSS-M2C153-H 3. Substance restrictions imposed by regulations or Company direction applies to the materials addressed by this document.1 QUALITY SYSTEM . SERVICE FILL WSS-M2C205-A 1. APPLICATION This material is used for lubrication o f gasoline engines. and APPROVAL OF MATERIALS apply only to engine oils supplied directly to Ford Motor Company and it's affiliates. 3. Prior to making any changes to the material originally approved under this specification.documentation certifying that a given formulation (base oil/additive combination) meets all requirements described in this specification. 4. SCOPE This material specification defines the minimum acceptable performance requirements and physical/chemical properties of engine oils to be used in Ford Motor Company vehicles. ILSAC GF-3. 2. are shown in the Engineering Material Approved Source List under the specification cited. Upon notification of the Company. whether or not such changes affect the material's ability to meet the specification requirements. Product Engineering materials referenced in this document and/or the affected eng ineering drawing. The affected Ford Fuels and Lubricants Engineering activity reserves the right to request certification documentation from any company claiming to meet this specification. Note: Suppliers should be prepared to provide test data and samples demonstrating compliance to this specification. and Materials Engineering activities (with reaso ns) of the proposed changes. This specification was released originally for service fill engine oils meeting the 2002 model vehicle requirements for viscosity grades other than SAE 5W-20. The restrictions are identified in Restricted Substance Management Standard WSS -M99P9999-A1. Sections titled QUALITY SYSTEM REQUIREMENTS.

4 QUALIFICATION It is the supplier's responsibility to have the technical evidence and documentation certifying that a given formulation (base oil/ additive combination) meets all requirements described in this specification. 3.3. Riley ENGINEERING MATERIAL SPECIFICATION WSS-M2C205-A 3. max 1b (Dark Orange) (ASTM D 130 or ISO 2160.5 SUPPLIER'S RESPONSIBILITY All materials supplied to this specification must be equivalent in all characteristics to the material upon which approval was originally granted. An Engineering Material Approved Source listing is not applicable for this specification.3. The affected Ford Fuels and Lubricants Engineering activity reserves the right to request certification documentation from any company claiming to meet this specification.1 Copper Corrosion. 3 h at 100 C) 3. which require prior Engineering approval. 3. are shown in the Engineering Material Approved Source List under the specification cited. 3. whether or not such changes affect the material's ability to meet the specification requirements. Substance restrictions imposed by regulations or Company direction applies to the materials addressed by this document. Upon notification of the Company. J. APPROVAL OF MATERIALS This specification is intended to d efine the performance and/or properties of finished parts or systems of combined materials. Product Engineering materials referenced in this document and/or the affected engineering drawing. 4. Ford 2004 MY Regular Fuel Recommendation .2 PERFORMANCE Shall meet all the requirements of "The ILSAC GF -3 Minimum Performance Standard For Passenger Car Engine Oils" and shall be licensed to display the API Certification Mark. and Materials Engineering activities (wit h reasons) of the proposed changes.3 PHYSICAL/CHEMICAL PROPERTIES 3. 3. further instructions will be provided. Date Action Revisions 2001 03 13 Activated M.3. toxins. metals from refining or previous use. The restrictions are identified in Restricted Substance Management Standard WSS -M99P9999-A1.Material suppliers and part producers must conform to the Company's Quality System requirements. Prior to making any changes to the material originally approved under this specification. the Supplier shall notify the affected Purchasing.2 Physical Appearance and Odor Shall be clear and bright with no objectionable odor. if requested.3 Contaminants Shall be free of carcino gens. Note: Suppliers should be prepared to provide test data and samples demonstrating compliance to this specification.

Aftermarket products could cause damage to the fuel system. try a different brand of ³Regular´ unleaded gasoline. . including manganese -based additives. We do not recommend the use of gasolines labeled as ³Regular´ that are sold with octane ratings of 86 or lower in high altitude areas. many fuels contain metallic additives. Ask your fuel supplier about gasolines that meet the World -wide Fuel Charter. Your vehicle was not designed to use fuel or fuel additives with metallic compounds. It can damage critical fuel system components. It should not be necessary to add any aftermarket products to your fuel tank if you continue to use high quality fuel of the recommended octane rating. The use of leaded fuel is prohibited by law and could damage your vehicle. Cleaner Air Ford endorses the use of reformulated "cleaner -burning" gasolines to improve air. Repairs to correct the effects of using a fuel for which your vehicle was not designed may not be covered by your warranty. Fuel quality If you are experiencing starting. if it knocks heavily under most driving conditions while you are using fuel with the recommended octane rating. However. Do not be concerned if your engine sometimes knocks lightly. In Canada. check with your local fuel dealer. If the problems persist. Many of the world¶s automakers approved the World -wide Fuel Charter that recommends gasoline specifications to provide improved performance and emission control system protection for your vehicle. rough idle or hesitation driveability problems during a cold start.Choosing the right fuel Use only UNLEADED FUEL. see your dealer or a qualified service technician. Studies indicate that these additives can cause your vehicle's emission control system to deteriorate more rapidly. Repairs to correct the effects of using an aftermarket product in your fuel may not be covered by your warranty. Do not use fuel containing methanol. ³Premium´ unleaded gasoline is not recommended because it may cause these problems to become more pronounced. but fuels free of such additives may be available. Octane recommendations Your vehicle is designed to use ³Regular´ unleaded gasoline with pump (R+M)/2 octane rating of 87. see your dealer or a qualified service technician to prevent any engine damage. Gasolines that meet the World-wide Fuel Charter should be used when available.

 The sales people present in the showroom respond to us properly when we come to purchase a new car. Please try to rectify it.  Customer should be educated about the maintenance of the vehicle. like Banjara Hills. but they do not respond when we come to tell our problems regarding the cars. and they are not resolving the cars problems. So try to concentrate on this segment.e.V ALUABLE SUGGESTIO NS GIVEN BY FORD CUSTOMERS:  Please try to increase the number of Service centers.  The quality of the sun proof coating used is of very low quality.  The service men in the service centers are unable to understand the problems told by us. where many customers feel it easy to go to service centers. Jubilee Hills. maintenance tips should be provid ed.  Mileage of the cars is not up to the expectations.  Advertisements through televisions can influence many categories of people..  Provide information on service and mileage regularly. vehicle colour is getting shaded very quickly.  There is no proper response from the service men at service station.  Please provide information about new cars along with their price lists at least once in 6 months. i.  Please send the specially appointed feed back taking staff on Sunday evenings only.  Keep Service Stations at main locations of the city. Please recruit efficient service men in the service centers. Begumpet etc.  Mileage of Fiesta is very worst its giving only 9 to 11 Kms per liter. We don¶t see or find much of the Ford car advertisements in T. .  Try to provide financial facility at 0% interest.V except Fiesta.

fordindia.RAMASWAMY AND S. BELCH WEBLIOGRAPHY:: www.com AUTO MAGAZINES:  AUTOCAR  OVERDRIVE .S.com www.BELCH & MICHAEL A.fortuneford.NAMAKUMARI GEORGE E.CHAPTER 6 BIBLIOGR APHYS REFERANCE BOOKS: MARKETING MANAGEMENT ADVERTISING AND PROMOTIONS V.google.wikipedia.com www.com www.

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