Professional Documents
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Marketing Strategies of Ford Motor India 2
Marketing Strategies of Ford Motor India 2
1- HISTORY OF FORD
4- PRODUCT DETAILS
7- RESEARCH METHODOLOGY
9- SUGGESTION
10- QUESTIONAIRE
11- BIBILIOGRAPHY
HISTORY OF FORD
Industry : Automotive
EARLY DEVELOPMENT
Ford was launched in a converted factory in 1903 with $28,000 in cash from
twelve investors, most notably John and Horace Dodge, who would later
found the Dodge Brothers Motor Vehicle Company. Henry Ford was 40
years old when he founded the Ford Motor Company, which would go on to
become one of the largest and most profitable companies in the world, as
well as being one of the few to survive the Great Depression. The largest
family-controlled company in the world, the Ford Motor Company has been
in continuous family control for over 100 years.
The first Ford factory on Bagley Street, Detroit.
The next year, Henry Ford introduced the Model T. Earlier models were
produced at a rate of only a few a day at a rented factory on Mack Avenue
in Detroit, Michigan, with groups of two or three men working on each car
from components made to order by other companies (what would come to
be called an "assembled car"). The first Model Ts were built at the Piquet
Road Manufacturing Plant, the first company-owned factory. In its first full
year of production, 1909, about 18,000 Model Ts were built. As demand for
the car grew, the company moved production to the much larger Highland
Park Plant, and in 1911, the first year of operation there, 69,762 Model Ts
were produced, with 170,211 in 1912. By 1913, the company had
developed all of the basic techniques of the assembly line and mass
production. Ford introduced the world's first moving assembly line that
year, which reduced chassis assembly time from 12½ hours in October to 2
hours 40 minutes (and ultimately 1 hour 33 minutes), and boosted annual
output to 202,667 units that year After a Ford ad promised profit-sharing if
sales hit 300,000 between August 1914 and August 1915, sales in 1914
reached 308,162, and 501,462 in 1915; by 1920, production would exceed
one million a year.
Ford cut prices again and again and invented the system of franchised
dealers who were loyal to his brand name. Wall Street had criticized Ford's
generous labor practices when he began paying workers enough to buy the
products they made.
The Ford oval trademark was first introduced in 1907. The 1928 Model A
was the first vehicle to sport an early version of the Ford script in the oval
badge. The dark blue background of the oval is known to designers
as Pantone 294C. The Ford script is credited to Childe Harold Wills, Ford's
first chief engineer and designer. He created a script in 1903 based on the
one he used for his business cards. Today, the oval has evolved into a
perfect oval with a width-to-height ratio of 8:3. The current Centennial Oval
was introduced on June 17, 2003 as part of the 100th anniversary of Ford
Motor Company.
On February 4, 1922 Ford expanded its reach into the luxury auto market
through its acquisition of the Lincoln Motor Company, named for Abraham
Lincoln whom Henry Ford admired, but Henry M. Leland had named the
company in 1917. The Mercury division was established in 1938 to serve
the mid-price auto market.[14] Ford Motor Company built the largest
museum of American History in 1928, The Henry Ford.
Henry Ford would go on to acquire Abraham Lincoln's chair, which he was
assassinated in, from the owners of the Ford Theatre. Abraham Lincoln's
chair would be displayed along with John F. Kennedy's Lincoln limousine
in the Henry Ford Museum & Greenfield Village in Dearborn, known today
as The Henry Ford. Kennedy's limousine was leased to the White House by
Ford.
Fordland
In 1928, Henry Ford negotiated a deal with the government of Brazil for a
plot of land in the Amazon Rainforest. There, Ford attempted to cultivate
rubber for use in the company's automobiles. After considerable labor
unrest, social experimentation, and a failure to produce rubber, and after the
invention of synthetic rubber, the settlement was sold in 1945 and
abandoned.
World War II
1903 Model A
ad - ca 1908
1930 Model A Fordor
Sandip has also played a role in developing business strategy for Ford in
Asia Pacific on an overseas assignment at Ford Motor Company in the US.
Sandip was also involved in the development of product strategy and a
viable plan for localization of the diesel engine critical for success in Indian
market. He has been instrumental in rolling out TVM process in Ford India
and providing guidance to the TVM team in India.
As Director of Customer Service for APA, Wark was responsible for all
service strategies and customer loyalty for APA, including Service
marketing, Quality Care, input into product development, brand alignment,
marketing, service and technical competency, parts supply and logistics,
customer satisfaction, training and development, and implementing
customer focused synergies for the APA organization.
Prior to this, Wark held the position of General Manager Ford Customer
Service Division for Ford of Australia.From 1995 to 2000, Wark served as
Marketing Sales & Service Director, Ford New Zealand before being
promoted to Managing Director after just two years. In these roles, he led a
restructuring exercise in the Marketing Sales and Service organization and
was instrumental in driving synergies with Ford Credit and Mazda, as well
as expansion and increased production from the Alloy Wheel manufacturing
operation.
Wark began his career with Ford Australia in their South Australian regional
office in 1975. After completing an extensive rotation of regional
assignments, he moved to the Head Office in Melbourne in 1985.
Wark earned a Bachelor of Economics degree from Flinders University in
Australia in 1974.
KULJIT RANA - Vice President, Finance and Whole
time Director, Ford India
Kuljit Rana is the Vice President, Finance and Whole time Director at Ford
India. He took this position in June 2009 and is responsible for all financial
aspects of Ford India. Kuljit reports to Michael Boneham, President and
Managing Director, Ford India.
Kuljit has extensive experience in Finance having held a range of positions
covering diverse aspects of Finance including Product Development,
Treasury, Manufacturing, Marketing & Sales, Profit Analysis and Dealer
Operations, both in UK and Germany.
In his previous role, as Accounting and Internal Control Director for Ford
Asia Pacific and Africa, based in Chennai, he was deeply involved in
consolidation of accounting activity and improving overall controls and
governance environment in the Asia Pacific & Africa region.
Kuljit has also served as the Finance Director at Ford Retail, a wholly
owned Ford dealership operation in Europe comprising of 80+ outlets,
retailing 60,000 new and used vehicles a year. As Finance Director, at Ford
Retail, Kuljit’s responsibilities included managing all Finance activities of
the Company.
Kuljit joined Ford Motor Company in the UK in 1995 as a Junior Manager -
Financial Analysis. A Bachelor in Mechanical Engineering from Punjab
Engineering College, he also holds a Masters in Business Administration
from Manchester Business School in the UK.
VAIRAMANI PANDIYAN - Vice President, Human
Resources, Ford India
Vairamani Pandiyan is Vice President, Human Resources at Ford India. He
took this position in January, 2008. Pandiyan reports to Michael Boneham,
President and Managing Director, Ford India.
As Vice President Human Resources, Pandiyan is responsible for the human
resources practice across Ford organizations in India, including, Ford India
[FIPL], the automobile manufacturing business, Ford Business Service
Centre [FBSC] - a business process center for Ford's global operations and
Ford Information Technology Services [FITS] - the hub for the company's
IT and engineering initiatives in India and the Asia Pacific region.
Pandiyan also serves as a member of the Board of the FBSC. He represents
Ford in India in the HR Council of the Conference Board, and
Confederation of Indian Industry, South task force on skill development and
employment generation.
Pandiyan has over two and half decades of HR experience, having worked
in a diverse set of industries – steel, chemicals, consumer goods,
automobile and HR services. He joined Ford in September 2006. In his HR
career, he has worked through the entire spectrum of HR functions, such as
labour relations, management development, talent acquisition,
compensation and HR information systems. As a keen HR professional, he
has addressed many professional gatherings and written popular articles.
He holds a Bachelor's Degree in Philosophy and a Masters in Human
Resources Management having specialized in Organisational Behaviour.
Objective of ford
Primary objective:-
To know the influence of various marketing strategies,
promotional activities towards the customers of four
wheelers(cars).
Secondary objective:-
1. To know the effective factors for preferring four
wheelers(cars).
2. To know the factor of awareness of cars.
3. To study and analyze the promotional strategies of ford.
4. To know whether the customers are satisfied with the offer
given by the dealers.
5. To know which kind of offers can attract the new
customers.
6. To find the area to be improved.
7. To find out satisfaction of the customers.
8. To find the reasons for the dissatisfaction.
9. To study the channels levels involved in the promotion of
ford.
10. To study and analyze the customer’s perception regarding
the usefulness/ utility of ford cars.
11. To study and analyze the distributors perception
regarding the promotional and distributional strategies of
ford.
Product details
Ford Ikon
Model type 1.3 1.4 duratorq
Rocam(petrol) TDCi (diesel)
Price (lac) 5.50 6.25
Engine type 4 in-line,8V 4 in-line 8V
SOHC rocam SOHC,
petrol TDCi(common
rail)
Fuel system SEFI TDCi common
rail
Displacement 1297 1399
cc
Compression 10.2:1 18:1
ratio
Max.power 70ps/5500rpm 68ps/4000 rpm
ps/rpm
Max.torque 105nm/2500rpm 160 nm/
nm/rpm 2000rpm
Transmission 5 speed manual 5 speed manual
Ford
Fiesta
Model type 1.6L 1.4L Duratorq
Duratec(petrol) (diesel)
Engine 4 cylinder in – 4 cylinder in-
line, 16 valve line,8 valve
DOHC SOHC
Displacement cc 1596 1399
Max. power 101/6500 68/4000
(ps/rpm)
Max. torque 146/3400 160/2000
(nm/rpm)
Fuel system Sequential Advance
Electric Fuel common rail
Injection(SEFI)
Transmission 5 Speed manual 5 Speed
type manual
Fuel tank 45 litres 45 litres
Price(lac.) 7.14 – 8.19 7.57 – 9.34
Ford Figo
Ford
Endeavor
Ford Fusion
Displacement cc 1596
Type 4cyl. In-line,16 – v dohc
Marketing strategy :
POSITIONING:
Positioning is a platform for the brand.It facilitates the brand to get through
to the target consumers.
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.”
Positioning is the act of fixing the locus of the product offer in the minds of
the target consumers. In positioning, the firm decides how and around what
parameters, the product offer has to be placed before the target consumers.
The significance of product positioning can be easily understood from
David Ogilvy’s words:“The results of your campaign depends less on how
we write your advertising than on how your product is positioned”.
To create a position for a product or service, Trout and Ries suggest that
managers ask themselves six basic questions.
PRODUCT REPOSITIONING:
PROMOTIONAL DECISIONS:
➢ Advertising:
➢ Direct Marketing:
➢ Interactive/Internet Marketing:
➢ Sales Promotion:
➢ Publicity/Public Relations:
➢ Personal Selling:
It is a form of person-to-person communication in which a seller
attempts to assist and persuade prospective buyers to purchase the
company’s product or service or to act on an idea. Unlike advertising,
personal selling involves direct contact between buyer and seller,
either face-to-face or through some form of telecommunications such as
telephone sales.
Personal selling involves more immediate and precise feedback because the
impact of the sales presentation can generally be assessed from the
customer’s reactions.
Not only will he take due not of them, he will ensure that his marketing mix
suits the environmental variables. And, its it factor that renders tha task
much more complex.
It was James Culliton, a noted marketing expert, who coined the expression
marketing mix and described the marketing manager as a mixer of
ingredients. To quote him,`The marketing man is a decider and an artist – a
mixer of ingredients, who sometimes follows a recipe developed by others
and sometimes prepare his own recipe. And, sometimes he adapts his recipe
to the ingredients that are readily available and sometimes invents some
new ingredients, or, experiments with ingredients as no one else has tried
before.
Subsequently, Niel H.Borden, another noted marketing expert, popularized
the concept of marketing mix.
It was Jerome McCarthy, the well-known American professor of
marketing, who firstdescribed the marketing mix in terms of the four Ps.He
classified the marketing mixvariables under four heads, each beginning with
the alphabet “P”.
• Product
• Place
• Price
• Promotion
In other words, 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.
.
DIFFERENTIATION ORIENTED MARKETING
STRATEGY:
DIGITAL MARKETING:
Digital Marketing is the practice of promoting products and services
using digital distribution channels to reach consumers in a timely, relevant,
personal and cost-effective manner. Whilst digital marketing does include
many of the techniques and practices contained within the category of
Internet Marketing, it extends beyond this by including
other channels with which to reach people that do not require the use of The
Internet. As a result of this non-reliance on the Internet, the field of digital
marketing includes a whole host of elements such as mobile phones,
sms/mms, display / banner ads and digital outdoor.
Price-Offs Offer:
Price-off offers refers to offering the product at lower than the normal
price.This encourages immediate sales, attracts non-users, induces product
trail and counters competition.
Premium:
Coupons:
1. The market leader firms might attract the provisions of various anti-trust
legislations.The rival competitors will try to force the Government to bring
legislations against the “MONOPOLISATION”
2. The second reason being the economic factors.The cost of making further
gains inthe market share after a large share has been achieved may rise fast
and reduce the profit margin.
HARASSMENT STRATEGY:
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.
Contraction defense:
Large companies recognize that they can no longer defend all the
territory.Their focusare spread too thin, and competitors are nibbling away
on several funds. The bestcourse of action then appears to be planned
contraction (also called strategic withdrawal).
INNOVATION STRATEGY:
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.The leader produces it brand in a variety of sizes and
firms.
CONFRONTATION STRATEGY:
If leader firm faces an extremely aggressive challenger, whose actions
demand a quick and direct response. In such a situation, the market leader
will engage any promotional war, engaging in a massive promotional
expenditure that the aggressive challenger cannot match.The leader firm
may engage in the price war whenever a new challenger is consider in to
enter in its market.This strategy will frighten the potential
competitions and make then to withdraw from entering the market.
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.
The Ford in India has launched the car only for few segment of people.
The segmentation of car buyers based on price preferences are:-
• Family car segment:These cars forms a reasonably sizeable segment of
the market (around 15 percent).
Preferred price range is from 5 lakh to 6 lakh.
‘FORD IKON’ AND ‘FORD FUSION’ come under this type of segment.
• Premium car segment:This segment represents buyers who need a real
world-class car and are willing to pay the due price.
Preferred price range starts from 8 lakh.
‘FORD FIESTA’ come under this segment of cars.
• SUV segment:The buyers of this segment like to have a big vehicles.
And these cars are also useful for sport riding and even on hill areas. There
body is designed similar to offroad vehicles, which can withstand to
Indianroads.
‘FORD ENDEAVOUR’occupies this segment.
Sales promotion :-
EXTENDED WARRANTY:-
Fortune Ford gives an extended warranty to its customers where there will
be an extended time duration in the warranty.
Extended Warranty:-
Benefits to customer:-
♦ Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark
plugs etc.
♦ Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch
Plates, Lower Suspension Arms,Shock Absorbers etc..
♦ Mechanical/Electrical repairs
♦ Labour for all the above
What does it NOT cover?
♦ Accident repairs
♦ Tyres
♦ Fuel
RESEARCH METHODOLOGY:-
MARKETING RESEARCH:-
BASIC RESEARCH:-
APPLIED RESEARCH:-
RESEARCH METHOD:
DATA COLLECTION:-
CONTACTED METHOD:-
The information was solicited by administering structured questionnaire to
the customer and dealers, thus getting to know directly from the dealers
their sales before and after sales service.
Address:
E-Mail address:
1. Which of the following Ford car you own?
a) Fiesta
b) Ikon
c) Endeavour
d) Fusion
e) figo
Data analysis:-
Interpretation:- This question preffers to mean that ford cars are like
for their comforts.
3. What do you feel great about your car when compared to other
cars in the
market?
a) Fuel efficiency
b) Durability
c) Low maintenance
d) Sound quality
e) Brand name
Data analysis:-
4. How did you come to know about this car before purchasing?
Data analysis:-
5. Can you share your experience with after sale service support ?
Data analysis:-
Data analysis:-
a) ICICI
b) HDFC
c) SBI
d) others
Data analysis:-
a) Televisions
b) Magazines
c) News papers
d) F.M/Radio
Data analysis:-
Data analysis:-
Data analysis:-
11. What kinds of offers do you like or expect from the dealer?
a) Free insurance
b) Special discount on sale of cars
c) Extending the service period
d) Finance availability with 0% interest
Data analysis:-
Data analysis:-
Data analysis:-
SUGGESTIONS
Questionnaire
Address:
E-Mail address:
3. What do you feel great about your car when compared to other
cars in the
market?
a) Fuel efficiency
b) Durability
c) Low maintenance
d) Sound quality
e) Brand name
4. How did you come to know about this car before purchasing?
5. Can you share your experience with after sale service support
a) Very much satisfied
b) Satisfied
c) Ok
d) Not satisfied
a) ICICI
b) HDFC
c) SBI
d) others
a) In house finance
b) Out house finance
c) No difference between the two
a) Televisions
b) Magazines
c) News papers
d) F.M/Radio
12. What kinds of offers do you like or expect from the dealer?
a) Free insurance
b) Special discount on sale of cars
c) Extending the service period
d) Finance availability with 0% interest
14. What other brand(s) did you seriously consider before making this
car purchase?
a) Hyundai
b) TATA
c) Maruthi
d) Honda
Thanks for taking the time to fill out this questionnaire and for providing
valuable
information which will be used for my project work, market research studies
and reports. e do not share or sell your name, address or any other data with
any outside company or any purpose.
BIBLIOGRAPHY
REFERENCE BOOK:-
MARKETING MANAGEMENT PHILIP KOTLER
WEBLIOGRAPHY:-
WWW.FORDINDIA.COM
WWW.WIKIPEDIA.COM
WWW.GOOGLE.COM