MARKETING STATEGIES;FORD

Devis DominicSanaLakshmiJoseAkshayaRichardKathiravanAjith

IntroductionBrief History of Ford:

The Ford Motor Company is an American multinational auto-

maker headquartered in Dearborn, Michigan, a suburb of Detroit.

The Ford Motor Company started in June 1903 by Henry Ford.

Mark Fields has been the President and CEO since 1st July 2014.

Marketing Marketing are activities of a company associated with buying and selling a

product or service. It includes advertising, selling and delivering products to people.

Marketing is everything a company does to acquire customers and maintain a relationship with them.

Nature of Marketing Guiding element of business. Goal Oriented. Customer/ Consumer centered. Precedes and succeeds production. Science as well as an Art. It’s a system.

Marketing Mix

A marketing mix usually refers to E. Jerome McCarthy’s four P classification for developing an effective marketing strategy:

Product – refers to the item actually being sold.

Price – refers to the value that is determined for

a product.

Place – refers to the point of sale.

Promotion – refers to all the activities undertaken

to make the product or service known to the user

and trade.

Product Price

Place Promotion

The MarketingMix

figure 1.1

Marketing Strategy A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage over the long term.

Target Market A target market is a group of customers a business has decided to aim its marketing efforts and ultimately its merchandise towards. It’s a group of people considered likely to buy a product or service.

Product Mix The term 'product mix' implies all the products offered by a firm for sale. It may consist of one line products or several allied product lines.  Product line refers to an assortment or class of similar or related products and services.Any company’s product mix has three dimensions:

1. Width - The total number of product lines that company offers to the consumers.

2. Length - The total number of items that company carries within its product line.

3. Depth - The number of versions offered of each product in the line.

Ford Motor Company American multinational automaker, founded by Henry Ford

on June 16, 1903 with headquarters at Dearborn, Michigan.

Second largest automaker of US and fifth largest worldwide.

Ford Motor Company Owns: Lincoln, Mustang and a small

stake in Mazda.

Vision & MissionVision: “ To become the world’s leading consumer

company for automotive products and services”.

Mission: “ Producing vehicles that meet the demands

of their customers in terms of quality and

effectiveness”.

Organizational Structure

CEO

CHAIRMAN

Chief Financial Officer

Chief Operating

Officer

Chief Technical

Officer

Executive Vice Presidents

Group Vice Presidents

Very complex structure fairly mechanistic in nature.

Rigid departmentalization. Low span of control. High centralization.

Core Competencies Provide high quality automobiles for average middle class citizen in the global

market.

Satisfy each customer’s need and demand with right car and safety features.

Continue to invest in safety features and environmental benefits.

Deliver end products to consumer by improving the distribution and

manufacturing system through implementing RFID and other technologies.

Marketing Strategies of Ford Accelerate the Pace of Progress- In many ways ford are starting to see the full

benefits and strength of the One Ford plan, and they see an opportunity to accelerate their pace of progress to drive operational excellence and profitable growth for all.

Deliver Product Excellence with Passion- Ford’s second priority is to deliver product excellence with passion. Products are the lifeblood of ford’s business, and their One Ford plan has allowed them to field the best product lineup they have ever had – and one of the freshest.

Drive Innovation in Every Part of Our Business- Ford’s third priority is to drive innovation in every part of their business. Ford’s industry is rapidly evolving, and new technology is having a significant impact on their business.

Focus on Creating Value - The Creating Value Roadmap (CVR) is the process they use to run the company and drive results. It is how ford adapt to a constantly changing environment and adjust our plans to keep pace

Marketing Mix: FordFord Motor Company’s marketing mix (4Ps) supports the firm’s ability to connect

with its target customers. In Ford’s case, the target market is highly varied and

spans the global economy. The firm is the second largest U.S.-based automaker and

the fifth in the world. With this position, a comprehensive marketing mix is critical

to maintaining its performance. This marketing mix and associated strategic actions

also change over time to match the firm’s markets and industry environment.

Ford’s Products (Product Mix) Ford’s offers a considerable variety of products. Organizational outputs are included in this element of the marketing mix. Ford’s main product lines are as follows:

1. Automobiles

2. Trucks

3. Buses

4. Tractors

5. Automotive parts/components

6. Financial services

7. Vehicle leasing

Place/ Distribution in Ford’s Marketing Mix Ford uses typical places or venues used for its strategy of product distribution.

This element of the marketing mix focuses on the venues or locations used to reach and sell to customers.

1. Dealerships

2. Auto parts stores

3. Ford Parts website

4. Ford Motor Credit Company

Ford’s Promotion (Promotional Mix) Ford Motor Company promotes it products through all of the conventional tactics. The activities used to promote goods and services are considered in this element of the marketing mix.

1. Advertising

2. Personal selling

3. Direct selling

4. Sales promotions

5. Public relations.

Ford’s Prices and Pricing Strategies Ford’s prices vary, depending on the market. This element of the marketing mix involves the strategies used to determine appropriate prices for products, based on market and business conditions. Ford applies two main pricing strategies:

1. Market-oriented pricing strategy - In the market-oriented pricing strategy, Ford’s goal is to set prices that are appropriate to market conditions, with consideration for competition, demand, consumer perception, and other variables. Ford applies this pricing strategy for most of its products, such as sedans and trucks.

2. Premium pricing strategy - On the other hand, the company applies the premium pricing strategy to set higher prices for some of its products. This pricing strategy is used for most of the Lincoln automobiles, which are Ford’s luxury line of vehicles. This element of the marketing mix emphasizes the importance of different pricing strategies to support Ford’s efforts to secure different segments of the market.

Product Mix: Known as product assortment, refers to the total number of product lines that a company offers to its customers.Product Line: A product line is a group of related products under a single brand sold by the same company. Product Width: The width of a company’s product mix pertains to the number of product lines that a company sells.Product Depth: The total variations for each product. Variations can include size, flavour and any other distinguishing character.Product Length: The total number of items in the product line.Product consistency: The degree of similarity between product lines in terms of their end-use, production requirements, price ranges, distribution channels etc.,

Product Mix of Ford

Product LinesCrossovers and SUVs

Trucks

Hybrids and EVs

Buses

Cars

Automotive components

FordProductWidth

Product TypesCarsFiesta (5 Seated)

Focus (5 Seated)

Fusion (5 Seated)

C-Max (5 Seated)

Mustang (4 Seated)

Taurus (5 Seated)

Product Depth

Crossovers and SUVs

Escape (5 Seated)

Transit Connect (7 Seated)

Edge (5 Seated)

Flex (7 Seated)

Explorer (6-7 Seated)

Expedition (8 Seated)

Trucks

Transit Connect (7 Seated)

F-150 (6 Seated)

Super Duty (3-6 Seated)

Hybrid and EVs

Fusion Hybrid SE (5 Seated )

C-Max Hybrid SEL (5 Seated)

Focus Electric (5 Seated)

Fusion Energize (5 Seated)

C-Max Energi (5 Seated)

Ethics and Strategies; Ford Ethics are moral principles or values that generally govern the conduct of an

individual or group. They basically constitute the unwritten rules developed to guide interactions, and

are standards of behaviour by which conduct is judged. An ethics violation offends a person’s sense of justice or fairness.

Ethics

Business EthicsBusiness ethics may be viewed as a subset of the values of society as a whole, with a foundation based on the cultural values and norms that constitute a culture’s morals.The ethical conduct of businesspeople is shaped by societal elements, including family, education, and religious institutions.As members of society, businesspeople are morally obligated to consider the ethical implications of their decisions.

Ethical decisions making can be groupedinto three basic approaches:

1. Examines the consequences of decisions.

2. Relies on rules and laws to guide decision making.

3. Based on a theory of moral development. In additions to personal influences, there are many business influences on ethical decisions making which include :a) the extent of ethical problems within the organizational, b) top management’s actions on ethics, potential magnitude of the consequences,c) social consensus,d) probability of a harmful outcome,e) length of time between the decision and the onset of consequences,f) the number of people affected.

Many companies develop a code of ethics to help their employees make ethical decisions.

A code of ethics can help employees:

1) identify acceptable business practices,

2) be an effective internal control behaviour,

3) help employees avoid confusion when determining whether decisions are ethical,

4) facilitate discussion about what is right and wrong.

FORD’s code of conduct: The Ford Motor Company has a strong code of conduct:

• focussing on ethical risk,

• provide guidance on how to recognize and deal with ethical issues,

• provide policies and methods to report unethical conduct,

• help create a culture of accountability and honesty.

Ford encourages feedback and wants employees to become involved in forming Ford’s ethical culture. The code begins by reinforcing the support of top leaders, both Executive Chairman Bill Ford and CEO Mark Fields emphasizing the importance of ethical conduct.

Ford’s addresses different areas of risk that the company thinks are most important.

Sections of the code covers: workplace environment, intellectual property; gifts, favours, and conflicts of interest; protection of company assets; integrity of financial records; product quality, safety, and environment; competition and antitrust laws; political activities and international business practices.

The code also includes a list of items employees are forbidden to accept from those who do business or wish to do business with Ford, including cash, discounts on products (unless offered to the whole company), and tickets that do not meet entertainment requirements.

Of particular importance are Ford’s guidelines on international business. Because it is a multinational company, it is important that Ford maintain strong oversight over its global operations.

It is impossible for Ford’s code to cover every ethical issue that could happen, it does provide guidelines employees can use to guide their decisions. By identifying the more common issues, employees can prepare themselves on how to respond to these ethical incidents when they arise.

Despite its strong code of ethics, Ford has experienced serious misconduct in the past including the notorious Ford Pinto and Fire tire case, they regained their reputation by CSR, instituted corporate responsibility initiatives to benefit stakeholders.

And hence Ford Motor Company was founded on strong core values, which has helped it to overcome many obstacles and lead to its success. Despite ethical issues in the past, Ford Motor Company has proven to be an ethical leader in the automobile industry.

In 2013 it was selected by the Ethisphere Institute as one of the world’s most ethical companies.

Today Ford is one of the world’s top automobile with world’s bestselling automobile.

Social Responsibility and CSR Strategies: Ford Social Responsibility

Social responsibility is an ethical framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems.

Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.CSR is a concept with many definitions and practices.

Corporate Social Responsibility

“We will continue to focus on education—our number-one priority—creating and implementing innovative new programs that cultivate the skills needed to create tomorrow's innovations.”

- Jim Vella (President, Fund and community services)

Ford Volunteer Corps Ford Driving Skills for LifeEvery year, the Ford Volunteer Corps performs more than 112,000 hours of work on community service projects around the world

Ford Driving Skills for Life goes beyond standard driver education to help new drivers stay safe on the road.

Ford’s CSR activities in IndiaOperation Better World

The endeavor is to address issues related to Education, Sustainability, Auto Safety and Local Priorities - the 4 priorities outlined by Ford Motor Company Fund.

1) Focus on Education Going further in its commitment to lay foundations for a Better World, Ford India announced the launch of its Happy School's' program in Chennai, in September 2014. Ford is also currently supporting a pilot project aimed at addressing the issue of dropout rate amongst girls in 2 schools in Chennai, as well as an infrastructure enhancement project in 2 schools near its upcoming manufacturing facility in Sanand, Gujarat.

2) Focus on Communities – Local Priorities Ford supports a tailoring training program for women in 7 villages close to the plant. More than 600 women have been trained in this skill over the last two years. Ford India has been supporting Sanjeevi, a primary healthcare centre near the plant for close to 15 years

3) Focus on Auto Safety Launched in 2009 in India, the program is in keeping with Ford’s objective of creating Safe Roads and a Better World. Year after year, the DSFL program is working towards reducing the number of traffic fatalities and injuries by reinforcing safe and economical driving skills and has trained more than 11,000 people in India since its launch here.

4) Focus on Water/ Sustainability Ford India launched the first phase of its cohesive community outreach initiative in Sanand, Gujarat to improve access to safe drinking water for children from neighboring communities. In the first phase, 30 filters were installed in anganwadis and primary schools, across 18 villages, reaching out to more than 1000 children. Ford has partnered with Ahmedabad-based NGO, Saath Charitable Trust, to implement the project, which aims to progressively expand and cover children across 70 villages.

B2B Vs. B2CB2B B2C

B2B is shorthand for business to business. The products and services of the business are marketed to other businesses.

Business to consumer (B2C) is business or transactions conducted directly between a company and consumers who are the end-users of its products or services.

B2B refers to a situation where one business makes a commercial transaction with another. 

The business-to-consumer as a business model differs significantly from the business-to-business model, which refers to commerce between two or more businesses.

Example: Business consultants (providing advice on business strategy and operations). Cleaning company that cleans commercial buildings.

Example: Social Networks such as Facebook, LinkedIn, Amazon, Twitter, Uber etc.,

Ford B2B Strategy Ford, one of the original auto manufacturers, incorporated in 1903 and is now a

multinational auto manufacturer.

The company remains headquartered in Dearborn, Michigan, just outside of

Detroit.

Ford obtains approximately 80% of its parts from about 100 suppliers.

Some of the ford parts suppliers are listed in the following slide:

COMPANY NAME COMPANY PLACE PARTS NAME

Flex-N-Gate Seeburn Ontario, Canada door hinges and arms

NHK Spring Shiga-ken, Japan suspension stabilizer linkages

U-Shin Europe Komárom-Esztergom, Hungary

steering columns

Valeo Electric and Electronic Systems

Czechowice-Dziedzice, Poland

starter assemblies

Webasto Roof & Components,

Schierling, Germany sliding sunroofs

Summit Plastics Nanjing, China instrument panel components

Dee Zee Des Moines, Iowa running boards

Warn Industries Milwaukie, Oregon axle assemblies

Chaidneme Carabobo, Venezuela mufflers and exhaust systems

Autoliv Valencia, Spain airbags

Ford B2C Strategy There are 254 Ford dealerships spread across 32 states and Union Territories in India.

STATE NAME NO.OF .DEALERS1. Andaman & Nicobar 12. Andhra Pradesh 83. Assam 74. Bihar 45. Chandigarh 26. Chhattisgarh 3

7. Delhi 78. Goa 29. Gujarat 22

10. Haryana 1711. Himachal Pradesh 2

12. Jammu & Kashmir 313. Jharkhand 314. Karnataka 1515. Kerala 1716. Madhya Pradesh 1217. Maharashtra 2818. Manipur 119. Meghalaya 120. Mizoram 121. Nagaland 122. Orissa 423. Pondicherry 124. Punjab 12

25. Rajasthan 1626. Sikkim 127. Tamil Nadu 2028. Telangana 929. Tripura 130. Uttar Pradesh 2331. Uttarakhand 332. West Bengal 7

STATES = 32 254

Conclusion Marketing Terms- Marketing Mix, 4 P’s, Strategies, Target market etc.

Ford Motor Company- Vision & Mission, Structure, Core competencies etc.

Marketing Mix of Ford and Strategies.

Product Mix, Dimensions etc.

Ethics and Code of conduct.

Social Responsibility and CSR strategies.

B2B and B2C strategies.

SWOT AnalysisStrength Weakness

1. Strong position in U.S market2. ECOnetic initiative3. Sound financial performance4. One Ford approach5. Significant growth in china

1. Poor environmental record2. High cost structure3. Unprofitable Europe operations

Opportunities Threats

1. Positive attitude towards ‘green vehicles’

2. Increasing fuel prices3. New emission standards4. Growth through acquisitions

1. Rising raw material prices2. Intense competition3. Fluctuating exchange rates

Future Strategy Reduce manufacturing expenses by 15-20%

Enter Latin American and Asian markets with hybrid vehicles

Develop affordable electric cars for U.S market

Increase market share

Manufacturing of new small fuel-efficient vehicles

In spite of having strong competition in market, Ford is still dominating the motor industry as well as their business strategies are quite strong for sustaining in this market.

Thank You