Chapter 1

INTRODUCTION TO THE TOPIC

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 compensating. 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 long-term 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.

1

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”

Marketing is an orderly and insightful process for thinking about and planning for markets.

The process starts with researching the market place to understand its dynamics. The

marketer uses research methodologies to identify opportunities, that is, to find individuals all

groups of people with unmeet needs or latent interest in some products or service.

The marketing process consists of the following:

1. Analyzing marketing opportunities.

2. Developing marketing strategies.

3. Planning marketing programs

4. Managing the marketing efforts.

Before taking any decision and achieving the goals, it has to make analysis of what to do,

how to do, when to do, where to do and who is to do it. This is nothing but strategic

planning. Goals indicate what a business units wants to achieve whereas strategy is how to

get there.

2

Marketing strategies in simple terms are the complete and unbeatable plans designed

specifically for attaining the marketing objectives of the firm. Marketing can be called as a

game plan for achieving its goals. Strategy choice will depend on whether the firm or the

marketer plays the following roles:

Market leader

A challenger

A follower

A niche

The identification of objectives, both in quantitative and qualitative terms, is an essential

backdrop to strategy formulation. Goals have a quality and time frame attached to them.

These are typically spelt out in terms of financial return, market share, market presence, etc.

Thus, the concept of market oriented strategic planning arises with the link between the

products the link between the products the manufacturer is dealing in and the market

conditions. In this direction, our study deals only with the marketing strategies i.e.

promotional strategies of the Ford automotives.

3

INTRODUCTION TO AUTOMOBILE INDUSTRYINTRODUCTION TO AUTOMOBILE INDUSTRY

One of the fastest growing industries in the world is automobile industry. This automobile

industry even has its influence on the Indian market. Probably automobile industries occupy

a large market share in the worlds market as well as in the Indian market. Nearly 18% of the

total national income is being incurred from the automobile industry. From this we can

estimate how important the automobile industry in the improvement of GDP of a country is.

In India automobile industry has a growth rate is at the average of 10-12%.

INDIAN AUTOMOBILE INDUSTRY SINCE 1947:INDIAN AUTOMOBILE INDUSTRY SINCE 1947:

It’s fascinating drive through history, which begins as a story of isolation and missed

opportunities to one of huge potential and phenomenal growth. India’s fixation with

socialism and planned economies had a crippling impact on the automotive industry in its

formative years. The goal at that time for independent India was self-sufficiency. Issues like

quality and efficiency were simply not considered.

Dependence of foreign technology was banned and manufacturers were forced to localize

their products; import substitution became the order of the day. Though we learnt to localize,

the cars we made were all outdated designs with little or no improvements for decades. 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. The Japanese and later Korean auto industries were also highly

protected in their formative years but they never shut the door on technology. Instead, they

relentlessly tapped the best talent pools in the world to absorb the know-how to produce good

cars. One of the most important chapters in the Indian automotive industry’s history was

written by Maruti. It marked the Indian government getting into the far business in the early

1980’s, a radical shift in thinking after decades of treating cars with disdain.

The Maruti 800 went on to become the staple car of India and put a nation on wheels. This

little car set a benchmark for price, size and quality and structured India as small car market.

4

It wasn’t till 1993 that things really started to change for the Indian car buyer. With the

liberalization of the economy, a host of international carmakers rushed in. But most of them

were in for a shock as Indian customers rejected their product. Indian customers refused to

allow the glitter of prestigious brands blind them to the outdated and overpriced products they

were offered. The Indian consumer wanted super value, and rewarded the brands that

delivered it, handsomely. Hyundai and Maruthi delivered, and profited.

The period also saw the emergence of the Indian players like Tata Motors and Mahindra &

Mahindra. They rose to the challenge of the MNC’s and responded brilliantly with the Indica

and the Scorpio. This was ironically due to the license raj that forced Indian carmakers to be

innovative and develop products frugally. 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.

India is changing fast. It’s moving forward. India’s largest-selling car is not its cheapest car,

the 800. It is the Alto. People’s aspirations are rising and so are their mistakes, have got

their finger on the pulse of the market. Get the right product and the rewards are handsome.

The Indian auto industry is today bubbling with promise and confidence. It’s been a long

journey but to see where the Indian car industry is going. We have to see where it has been.

AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE:

The first motorcar on the streets of India was seen in 1898, Bombay had it first taxicabs by

the turn of the century. In 1903, an American company began a public taxi service with a

fleet of 50 cars. For about 50 years after car arrived in India, cars were directly imported.

Before World War I, around 40,000 motor vehicles were imported. During the years between

the wars, a small start for an automobile industry was made when assembly plant were

established in Bombay, Calcutta and Madras.

5

The import/assembly of vehicles grew consistently after the 1920s, crossing 30,000 units by

1930. It was during the end of the war that the importance of establishing an indigenous

automobile in India was realized. Premier Motors, Hindustan Motors and Mahindra &

Mahindra set up factories in the 1940s for progressive manufacture rather than assembly from

imported components. The cars they chose to make were the latest in the world when they

were introduced in India in the formative years of the industry.

POST- INDEPENDENCE:The government clamped down on imports and foreign investments. Companies like GM

and Ford packed their bags and left. India’s clock, thereafter, stood still while the world

raced on ahead. It would take nearly 50 years before the Indian auto industry could catch up

with the rest of the world again.

BROADBANDING ERA:

In January 1985, 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.

Through a liberal move, the licensing system was very much intact. A manufacturer had to

submit a phased-manufacturing programmed to the Ministry of Industry specifying the

indigenization progress and allowing for almost complete indigenization within five to seven

years. The biggest hurdle was the foreign-exchange clearance required for these projects.

Except for MUL, which had direct access to policy-makers, every other manufacturer still

faced a series of obstacles.

Several new products were launched during this period. All three traditional carmakers

added new models to their ranges – Standard Motors returned to the car business after 10

years, when in 1985 it introduced the Standard 2000, a Rover SD1 body with the old two-litre

Vanguard engine. HM bought in a 1972 Vauxhall Victor in 1985, transplanted its ageing

Ambassador engine into it and the Contessa was born.

THE BIRTH OF THE AMBASSADOR:In 1957, a small tail fin was added on either side of the rear fenders, along with a new,

dimpled hood, and the car was re-christened the Ambassador Mark I. The car cost Rs.17,000.

In 1963, it underwent a frontal facelift with a closely checkered grille and was named the

Ambassador Mark II. It would be another 12 years before the Ambassador got a facelift.

6

In 1975, another minor facelift to the same grille and a much bigger frontal facelift turned out

as the Mark III. The Mark IV, launched in 1979, was the last of the Mark cars.

The Ambassador Nova was launched in 1990, followed by Ambassador 1800 ISZ three years

later. The Nova was the last Ambassador powered by the 1489cc petrol engine. In 2004,

HM launched the cosmetically-revised Ambassador under the Avigo name. Designed by

Mavendra Singh, the retro look Avigo had classic touch internals like a centrally mounted

console, beige-colored seats and wood finish interiors.

THE CONTESSA YEARS:The Hindustan Contessa, launched in 1982, was one of the few luxury cars manufactured in

the country in the 1980s and 1990s. It was based on the 1970s vintage Vauxhall victor.

While it was initially launched with the 1489cc engine found in the Ambassador, the

Contessa was soon given the Isuzu engines. There were three versions of this car - 1.8GLX

(Isuzu petrol), 2.0DLX (Isuzu diesel) and the rare 2.0T (Isuzu diesel, turbo). The last

Contessa rolled out in 2002, phased out by the demand for cheap Japanese cars.

Some of the leading Indian auto players in Indian automobile industry are:

Premier,

Tata

Mahindra and Mahindra

Maruti

Hindustan motors

Premier:Premier:The story of premier is the story of one man’s vision, Seth Walchand Hirachand. 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, 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.S.A. where three largest car manufacturing companies

are located. He wants Indian company to be completely independent, with Indian

management capital and employees, paying royalty or technology transfer payment to

western countries. 7

After approaching General Motors they insisted on part ownership. Seth Walchand then

moved to second largest automaker Ford; Henry agreed, but delegated the project to Ford of

Canada, which refused. Finally the third largest automaker Chrysler agreed and singed in an

agreement in Bombay in 1940.

The arrival of FIAT:

In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the tariff

commission spelled out future for the auto industry – indigenize or get out. Companies like

Ford and GM, which had assembly operations in India, packed their bags and went home.

But fiat decided to stick it out and committed itself full-fledged manufacture of the Millicento

in 1954. In sep 1964, PAL and FIAT launched the Fiat 1100 DELITE in India.

The biggest customers for PAL’s were Bombay’s taxi drivers. The Padminies were easy for

maintenance in terms of spares and labor cost, low on running cost, easy to drive and

reasonably tough. It was everything that a taxi driver wants.

8

Chapter 2

COMPANY PROFILE

Ford Motor Company

Type Public (NYSE: F

Founded June 17, 1903

Founder Henry Ford

Headquarters Dearborn, Michigan, USA

Area served Worldwide

Key people

William Clay Ford, Jr - Executive

Chairman

Alan Mulally - President, CEO

Industry Automotive

Products Automotive goods and services

Revenue US$120.1 billion (2006) [1]

Operatin income US$-15.0 billion (2006)[1]

Net income US$-12.6 billion (2006)[1]

Employees 283,000 (2007)[2]

Divisions

Ford Credit

Ford division

Lincoln

Mercury

Premier Automotive Group

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Subsidiaries

Automotive Components Holdings

Jaguar

Land Rover

Volvo (cars only)

Slogan

Bold Moves

Have you driven a Ford lately?

Built Ford Tough

Built for Life in Canada

Feel the difference

Make Everyday Exciting

Website www.ford.com

Ford Motor Company is an American multinational corporation and the world's third

largest automaker based on worldwide vehicle sales. In 2006, Ford was the second-ranked

automaker in the US with a 17.5% market share, behind General Motors (24.6%) but ahead

of Toyota (15.4%) and DaimlerChrysler (14.4%). Ford was also the seventh-ranked

American-based company in the 2007 Fortune 500 list, based on global revenues of $160.1

billion. In 2006, Ford produced about 6.6 million automobiles, and employed about 280,000

employees at about 100 plants and facilities worldwide. In 2007, Ford had more quality

awards from J.D Power than any other automaker.

Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry

Ford and incorporated in June 16, 1903. Ford now encompasses many global brands,

including Lincoln and Mercury of the US, Jaguar and Land Rover of the UK and Volvo of

Sweden. Ford also owns a one-third controlling interest in Mazda. 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, and the number two automaker worldwide.

Ford introduced methods for large-scale manufacturing of cars and large-scale management

of an industrial workforce, especially elaborately engineered manufacturing sequences

10

typified by moving assembly lines. Henry Ford's combination of highly efficient factories,

highly paid workers, and low prices revolutionized manufacturing and came to be known

around the world as Fordism by 1914.

History

Henry Ford (ca. 1919)

Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve

investors, most notably John Francis Dodge and Horace Elgin Dodge who would later found

the Dodge Brothers Motor Vehicle Company. During its early years, the company produced

just a few Model T's a day at its factory on Mack Avenue in Detroit, Michigan. Groups of

two or three men worked on each car from components made to order by other companies.

Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on

to become one of the largest and most profitable companies in the world, as well as being one

of the few to survive the Great Depression. The largest family-controlled company in the

world, the Ford Motor Company has been in continuous family control for over 100 years.

Corporate governance:

Members of the board as of early 2007 are: Chief Sir John Bond, Richard Manoogian,

Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), Edsel

Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr., John L.

Thornton and William Clay Ford (Director Emeritus).

The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG]

and Ford of Europe), Mark Fields (Executive Vice President, President [The Americas]),

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Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice

President, President [International Operations]) and Michael E. Bannister (Group Vice

President; Chairman & CEO Ford Motor Credit. Paul Mascarenas (Vice President of

Engineering, The Americas Product Development)

FORD IN INDIAFORD IN INDIA: : Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which

produced the Escort out of M&M Nashik plant. After meeting initial success, sales of the

Escort was finally replaced by the Ikon in 1999.

The Ikon marked a new beginning for Ford in India. It rolled out of the Marajmalaingar plant

near Chennai and by now, the company had parted ways with M&M and was renamed Ford

India Ltd in 1998. The Ikon was the first model by a multinational to be developed

specifically for India. Though it was based on the Fiesta, it was a unique body style and was

offered and was offered with an option of three engines, including a diesel. The car was a big

hit. The Ikon underwent several face-lifts and price cuts to keep demand high. However,

fresher competition and a reputation for high-maintenance saw sales gradually decline. After

the arrival of the modern and highly-capable Fiesta, another made-for-India car, with state-of-

the-art engines, the Ikon has been marginalized. The Fiesta has picked up where the Ikon left

and is selling well.

Though the Ikon and Fiesta have been the mainstays of Ford’s production in India, the

company has had limited success with other models. The Mondeo, launched in 2001, was a

very talented car by was simply not suited to Indian conditions and earned a reputation for

being exorbitant to maintain.

The Endeavour SUV was launched in early 2004 and has sold well for its niche. The

Endeavour has recently been upgraded in 2007 and this has boosted the appeal of the big

SUV. In 2004, Ford launched the Fusion, which has received a lukewarm response though

the recent diesel variant has perked up sales.

Fortune FordFortune Ford is an authorized dealer for Ford India Limited, who is one of the leading

manufacturers of top quality cars in India, with many variants in the offering.

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

families in Hyderabad, the Modis and the Babu Khans. Fortune Ford is a blend of experience

and youth. The experience and good will that Mr. Misbahuddin Babu Khan and Mr. Pramod

Modi enjoy blend very well with the youth and energy of the youngsters Bashir, Ashish,

Nirav and Siraj to make Fortune Ford a truly world class Ford Dealership.

Fortune Ford markets and services the recently launched truly European Ford Fiesta, the

ever-popular Ford Ikon Flair, the No non-sense car Ford Fusion and the macho SUV the

Ford Endeavour through its sales and service outlets at Hyderabad. The sales outlet is located

strategically at Somajiguda next to Eanadu. We have two service centers, one at Chapel

Road, Abids opposite Stanley College and other one at Fathebagh, Santhnagar. These

centrally located outlets provide convenient and easy access to both the proud owners as well

as prospective buyers. The workforce at Fortune Ford is committed to excellence in serving

all esteemed customers.

The Sales Team is made up of dedicated showroom and field executives who are

professionally trained by Ford India Limited. They are adept at guiding the customer through

the entire sales process right from assisting in the choice of model, colour and features to

lending a helping hand in providing attractive buyback options and also arranging finance at

competitive rates.

The Service Centre is armed with the state-of-the art equipment and is in-line with Ford's

exacting Global standards. The service team is technically qualified and trained to analyze

and provide solutions adhering to Quality Care, in order to satisfy even the most demanding

customers.

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The Fortune Ford dealership maintains a high standard of excellence in sales and services

by sending its personnel for training on a regular basis to Ford India Limited, to update them

with the latest technological advances in the automotive sphere.

SHOWROOM

We have 5000 centrally air conditioned showrooms, located in the heart of the city in

Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes

convenient for almost every one residing in and around Hyderabad and Secunderabad.

The facilities offered from the showroom are:

1. Very easy finance facility with in-house finance team to cater to your every car finance

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

SUNDARAM, SBI, etc.

2. Exchange offer for any of your used car. Free spot evaluation for any usedcar.          

3. Professionally trained and courteous sales staff to take care of every relevant needs of the

customers.

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

Insurance renewals. You can also renew your insurance by just making call to our Service

marketing help line 9848885962.

Showroom @ Somajiguda

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5.Full range of Ford cars with all colors and models to choose from.

6. A good stock of Ford genuine accessories to make your Ford ownership more delightful

and safe.

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

dynamics on actual driving conditions before take the purchase decisions. You can call our

sales help line for test drive or fill the on-line test drive requisition form.

Significant milestonesSignificant milestones

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

The Company was able to deliver Ford Escorts in seven major cities simultaneously,

in just a month after booking.

The Special Value Pack program was launched in 1997, with commemorative

'Freedom', followed by the petrol and diesel driven 'Anniversary'. Recent SVPs have

included the Orion, Alpha and Sport - E.

Ford Escort won the J D Power Award in India Quality Survey in 1997.

Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in the

Customer Satisfaction Survey.

QualityCare, Ford's branded service initiative, provides car owners with superior

services at its dealership countrywide.

The new, integrated manufacturing plant was dedicated in March 1999, where FORD

IKON is manufactured.

Ford India launched Ford Assured on April 24 2000, a new initiative to buy and sell

used cars of all makes.

On September 11, 2000. Ford India launched the Ford IKON SXi – the stylish ‘josh’

machine

Ford India has started exporting Ford IKON

2001 Ford India launched the Ford Mondeo.

2002

Ford India show cases a wide spectrum of exciting cars at the Auto Expo

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Ford India Limited announced a strategic partnership with Hindustan Motors Limited

(HML).

Certified QS 9000: 1998, 3rd edition on March 21, 2002 Ford India received the QS

9000 award from TÜV Süddeutschland.

New Ikon Variant 1.6 EXi was launched

2003:

The New Ford Ikon NXT launched - The Next Level of Josh.

Adding Refinement to Josh- Ford India launches Ikon NXT ‘Finesse.’

Ford Celebrates Centennial in India.

Ford India launches Ikon NXT SXi.

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

Ford launches Ikon Flair at Rs. 4.95 Lakhs.

2004: Autocar SUV of the Year – Winner Ford Endeavour.

2007:

FORD Motor Company of Southern Africa achieves three wins and two seconds on

this year total economy run

DOE AWARDS FORD two grants for vehicle fuel efficiency research

FORD MONDEO IS AUTO EXPRESS car of the year

LAND ROVER DISCOVERY 3 scoops category win at TOWCAR AWARDS 2007

FORD MONDEO is the Caravan Club TOWCAR of the year 2008. 

16

PRODUCT PROFILE

Fusion:Fusion:

PRICE(lacs) 6.59

Engine:Type 4 Cyl. In – Line, 16 – V DOHC

Construction All Aluminium Alloy

Fuel System SEFI

Displacement (cc) 1596

Compression Ratio 9.75:1

Max. Power (ps/rpm) 101 / 6500

Max. Torque (nm/pm) 146 / 3400

Emission Stage Bharat Stage III

Kerb Weight (Kg) 1143

Transmission Manual 5 Speed

MaxSpeed (Kmph) 174

Mileage 11.3

Endeavour:Endeavour:17

PRICE(lacs) (4X2) 16.16

(4X4) 17.17

Engine:Type 2.5 litre, 4 Cylinder in-line, Turbocharged & inter-cooled diesel

Displacement (cc) 2499

Max. Power (PS/rpm) 116/3500

Max. Torque

(kgm/rpm)

28.5/2000

Ignition System Compression

Valve System SOHC, 12 Valves

Fuel System Indirect Injection Mechanical Pump

Emission Exhaust Gas Recirculation (EGR) Meeting Bharat Stage III

Norms

Kerb Weight (Kg) 1933/1958

Transmission Manual 5 Speed

MaxSpeed (Kmph) 142

Mileage 8.2

FiestaFiesta::

18

19

Engine 1.4 EXI 1.6 ZXI 1.6 SXI 1.4EXI

(TDCi)

1.4 ZXI

(TDCi)

1.4 SXI

(TDCi)

Price(in lacs) 6.76 7.28 8.28 8.00 8.52 9.19

Type 4 Cylinder in-Line, 16 Valve

DOHC

4 Cylinder in-Line, 8 Valve

SOHC

Construction All-aluminium Alloy

Fuel System SEFI High Pressure Common Rail

Displaceme

nt

cc 1388 1596 1596 1399 1399 1399

Compression Ratio 9.75:1 9.75:1 9.75:1 18:1 18:1 18:1

Max.

Power

Output

ps/rpm 82/6000 101/650

0

101/650

0

68/4000 68/4000 68/4000

Max.

Torque

Nm/

rpm

127/400

0

146/340

0

146/340

0

160/200

0

160/200

0

160/200

0

Emmision

Compliance

Bharat Stage III

Transmission Type 5 Speed Manual

Kerb Weight (Kg)

MaxSpeed (Kmph) 170/178

Mileage 14.75/13.6

Ikon:Ikon:

PRICE(lacs) 5.50

Engine:Type 4 Cylinder, 8-V SOHC, Rocam Petrol

Fuel system SEFI

Displacement (cc) 1299

Max. Power (ps/rpm) 70/5500

Max. Torque (Nm/rpm) 105/2500

Transmission Type 5 Speed Manual

Kerb Weight (Kg) 978

MaxSpeed (Kmph) 148

Mileage 10.8

MondeoMondeo::20

PRICE(lacs) 6.59

Engine:Engine type 2.0L 16V DOHC Petrol

Displacement 1999 cc

Max. power 142.7 PS/6000 rpm

Max. torque 185 Nm/4500 rpm

Compression ratio 10:8:1

Valves 16V DOHC

Fuel injection Sequential electronic fuel injection (SEFI)

Emission level Bharat Stage III

Construction All Aluminium Alloy

Transmission Type Ford MTX-75 manual 5-speed with

synchromesh

Kerb Weight (Kg)MaxSpeed (Kmph) 200

Mileage 8.6

Sources of Data

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Marketing strategy and analysisMarketing strategy and 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.

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.

A strategic marketing plan usually evolves from an organization’s overall corporate strategy

and serves as a guide for specific marketing programs and policies. Marketing strategy is

based on a situation analysis- a detailed assessment of the current marketing conditions

facing the company, its product lines, or its individual brands. From this situation analysis, a

firm develops an understanding of the market and the various opportunities it offers, the

competition and the market segments or target markets the company wishes to pursue.

Marketing strategy is the complete and unbeatable plan, designed specifically for attaining

the marketing objectives of the firm/business unit. The marketing objectives indicate what

the firm wants to achieve; the marketing strategy provides the design for achieving them.

For example, if the marketing objectives of a business unit stipulate that next year, it should

achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent of sales revenue, it is

the job of marketing strategy to indicate how and wherefrom this sale and profit will come,

which product lines/products/brands will accomplish this task and how.

Marketing strategy forms an integral part of marketing planning. A marketing strategy is

most effective when it is an integral component of corporate strategy, defining how the

organization will successfully engage customers, prospects, and competitors in the market

arena. It is partially derived from broader corporate strategies, corporate missions, and

corporate goals. As the customer constitutes the source of a company's revenue, marketing

strategy is closely linked with sales. A key component of marketing strategy is often to keep

marketing in line with a company's overarching mission statement.

MARKETING AND PROMOTIONS PROCESS MODEL:

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Development of marketing program requires an in-depth analysis of the market. This analysis

may make extensive use of market research as an input into the planning process.

Marketing

Strategy and Target marketing Market planning

analysis process program development target market

promot-

ion

to

final

buyer

Purchase

Promotion

to

trade

This input, in turn, provides the basis for the development of marketing strategies in regard to

product, pricing, distribution and promotion decisions. Each of these steps requires a detailed

23

Opportunity analysis

Competitive analysis

Target marketing

Product decisions

Pricing decisions

Channel of distribution decisions

Promotional decisions

AdvertisingDirect

marketingInteractive

marketingSales

promotionPublicity and

public relations

Personal selling

Ultimate consumer

Consumers Businesses

Identifying markets

Market segmentation

Selecting & Target

marketing

Positioning through marketing

strategies

Resellers

analysis, since this plan serves as the road map to follow in achieving marketing goals. Once

the detailed market analysis has been completed and marketing objectives have been

established, each element in the market mix must contribute to a comprehensive integrated

marketing program. Of course, the promotional program element must be combined with all

other program elements in such a way as to achieve maximum impact.

Formulating the marketing strategy:

Basically, formulation of marketing strategy consists of three main tasks:

1. Selecting the target market,

2. Positioning the offer,

3. Assembling the marketing mix.

This implies that the essence of the marketing strategy of a firm for a given product or brand

can be grasped from the target market chosen, the way it is positioned and how the marketing

mix is organized. The target market shows to whom the unit intends to sell the products;

positioning and marketing mix together show how and using what uniqueness or distinction,

the unit intends to sell. The three together constitute the marketing strategy platform of the

given product.

SELECTING THE TARGET MARKET:SELECTING THE TARGET MARKET:

To say that target market selection is a part of marketing strategy development is just stating

the obvious. It does not fully bring out the import of the inseparable likage between the two.

When the selection of the target market is over, an important part of the marketing strategy of

the product is determined, defined and expressed.

Marketing targeting simply means choosing one’s target market. It needs to be

clarified at the outset that market targeting is not synonymous with market segmentation.

Segmentation is actually tee prelude to target market selection. One has to carry out several

tasks besides segmentation before choosing the target market.

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Through segmentation, a firm divides the market into many segments. But all these segments

need not form its target market. Target market signifies only those segments that it wants to

adopt as its market. A selection is thus involved in it.

Marketing segmentation is a process that throws up not one but several market segments.

There may be segments that are sizeable and the ones that are not so sizeable. There may be

segments assuring immediate profits and the ones that call for heavy investments in market

development. There may also be segments that show great potential, but display tough

barriers to entry. As such, the question, which segment/segments, the firm should select as

its target market, assumes crucial importance.

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”, which was said by Eric

N.Berkowitz, Roger A.Kerin, and William Redulius.

The Segmentation process involves five distinct steps:

Finding ways to group consumers according to their needs.

Finding ways to group the marketing actions – usually the products offered –

available to the organization.

Developing a market-product grid to relate the market segments to the firm’s products

or actions.

Selecting the target segments toward which the firm directs its marketing actions.

Taking marketing actions to reach target segments.

Markets can be segmented using several relevant bases. For example, demographic

characteristics of consumers, such as age, sex, income/purchasing capacity, education level

etc, form one base for segmentation. Geographic characteristics constitute another; and

buying behavior of the consumers forms yet another base.

The various types of segmentations are

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Buyer behavior

Benefits segmentation

Volume of purchase segmentation

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POSITIONING: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”.

Definitions of product positioning:

Sengupta, in his book Brand Positioning says, “ The aim of product positioning is to create

a perception for our brand in the prospect’s mind so that it stands apart from competing

brands… we must cover that space in the consumer’s mind as if we had won a long-term

lease. We must find a strong position in that mind and sit on it….”

Micheal Rothschild, in his book Marketing Communications – From Fundamentals to

Strategies says, “Positioning refers to the place a brand occupies in the mind in relation to a

given product class. This place was originally a product-related concept…. Concerning

market structure. The concept now refers to the place that the brand holds in the consumer’s

mind related to perceptions and preferences”.

Developing a Positioning Strategy:

To create a position for a product or service, Trout and Ries suggest that managers ask

themselves six basic questions.

1. What position, if any, do we already have in the prospect’s mind?

2. What position do we want to own?

3. What companies must be outgunned if we are to establish that position?

4. Do we have enough marketing money to occupy and hold the position?

5. Do we have the guts to stick with one consistent positioning strategy?

6. Does our creative approach match our positioning strategy?

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PRODUCT POSITIONING AND BRAND POSITIONING:It is essential to understand the relationship between products positioning and brand

positioning. Though in discussions, the two terms are synonymously and interchangeable

used, technically they are different.

Product positioning denotes the specific product category/product class in which the given

product is opting to compete. And brand positioning denotes the positioning of the brand viz-

a viz the competing brands in the chosen product category.

It is evident that for any product, before entering the market it has to sequentially carry out

the two exercises, product positioning and brand positioning. In the first step, the product

category where the new entrant should enter and compete, i.e. against what all products it has

to compete, has to be decided. In this step, it is the broad function that the product is trying

to serve that matters. This choice of product category will decide the nature of the

competition the product is going to face. Once product category positioning is decided, the

position for the new entrant against competing brands in the chosen product category has to

be analyzed and fixed.

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, 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, the issues are:

Which are the competing brands in the chosen product category?

What are the unique claims/strengths of the various brands?

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?

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The major dimension of marketing strategy relates to positioning of the offer. The firm has

already selected the target market and decided its basic offer. Now, what is the conjunction

between these two entities? How do they get connected? What is the interface?

What is the locus the firm seeks among the customers in the chosen target market with its

offering?

How would the firm want the consumer to view and receive the offer?

These are the issues the firm has to grapple with in positioning. And, while formulating the

marketing mix too, the firm will agitate over these issues. The Product Differentiation and

Positioning discusses the multifarious issues involved in the subject.

PRODUCT REPOSITIONING:Products do undergo ‘repositioning’ as they go along their life cycle. In some cases, even

products that are faring well are repositioned. This is done mainly to enlarge the reach of the

product offer and to increase the sale of the product by appealing to a wider target market.

The product is provided with some new features or it is associated with some new target

segments.

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. 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 promotional mixThe promotional mix

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Advertising Direct marketing

Interactive/

internet marketing

Sales promotion

Publicity/

Public relations

Personal selling

Advertising:Advertising is defined as any paid form of non personal communication about an

organization, product, service, or idea by an identified sponsor. The paid aspect of this

definition reflects the fact that the space or time for an advertising message generally must be

bought. An occasional exception to this is the public service announcement, whose

advertising space or time is donated by the media.

Advertising is the best-known and most widely discussed form of promotion, probably

because of its pervasiveness. It is also very important promotional tool, particularly for

companies, whose products and services are targeted at mass consumer markets.

It is a very cost-effective method for communicating with large audiences. It can be used to

create brand images and symbolic appeals for a company or brand.

Direct Marketing:

One of the fastest-growing sectors of the U.S. economy is direct marketing, in which

organizations communicate directly with target customers to generate a response and a

transaction. It has become such an integral part of the IMC program of many organizations

and often involves separate objectives, budgets, and strategies, we view direct marketing as a

component of the promotional mix.

Direct Marketing is much more than direct mail and mail order catalogs. It involves a variety

of activities, including database management, direct selling, telemarketing and direct

response ads through direct mail, the Internet, and various broadcast and print media.

One of the major tools of direct marketing is direct response advertising, whereby a product

is promoted through an ad that encourages the consumer to purchase directly from the

manufacturer.

Interactive/Internet Marketing: Interactive media allow for the back-and-forth flow of information whereby users can

participate in and modify the form and content of the information they receive in real time.

Unlike traditional forms of marketing communications such as advertising, which are one-

way in nature, the new media allow users to perform a variety of functions such as receive

and alter information and images, make inquiries, respond to questions and of course make

purchases. In addition to the Internet, other forms of interactive media include CD-ROMs,

Kiosks, and interactive television.

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Sales Promotion:The next variable in the promotional mix is sales promotion, which is generally defined as

those marketing activities that provide extra value or incentives to the sales force, the

distributors, or the ultimate consumer and can stimulate immediate sales, sales promotion is

generally broken into two major categories:

Consumer-oriented and

Trade-oriented activities

Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and

includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-

purchase materials.

Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers,

distributors and retailers.

Publicity/Public Relations:Publicity refers to non personal communications regarding an organization, product, service,

or idea not directly paid for or run under identified sponsorship. It usually comes in the form

of a news story, editorial or announcement about an organization and its products and

services. Like advertising, publicity is not directly paid for by the company.

An advantage of publicity over other forms of promotion is its credibility. Another

advantage of publicity is its low cost, since the company is not paying its time or space in a

mass medium such as TV, radio or newspapers.

Public relations are defined as “the management function which evaluates public attitudes,

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”.

Public relations generally have a broader objective than publicity, as its purpose is to

establish and maintain a positive image of the company among its various publics.

Personal Selling:It is a form of person-to-person communication in which a seller attempts to assist and

persuade prospective buyers to purchase the company’s product or service or to act on an

idea. Unlike advertising, personal selling involves direct contact between buyer and seller,

either face-to-face or through some form of telecommunications such as telephone sales.

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Personal selling involves more immediate and precise feedback because the impact of the

sales presentation can generally be assessed from the customer’s reactions.

ASSEMBLING THE MARKETING MIXASSEMBLING THE MARKETING MIX:

Assembling the marketing mix means assembling the four Ps of marketing in the best

possible combination. 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.

The firm has to find out how it can generate the targeted sales and profit. 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. It then chooses the combination/mix of products, price, place and promotion that

is best according to its judgment.

Since marketing is essentially an interaction between the marketing mix and environmental

variable, and since the latter and non-controllable, marketing becomes synonymous with

assembling and managing the marketing mix. Of course, while assembling the marketing

mix, the marketing manager will take due note of the environmental variables. Not only will

he take due not of them, he will ensure that his marketing mix suits the environmental

variables. And, its factor that renders the task much more complex.

MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND DELIVERING

CONSUMER VALUE

The four elements mentioned above- product, distribution, promotion and pricing constitute

the marketing mix of the firm. The marketing mix is the sole vehicle for creating and

delivering customer value.

It can be easily seen that all activities and programmers, which a marketer designs and caries

out in his effort at winning customers, relate to one or the other of the above four elements-

product, place, promotion and pricing. It can also be seen that in each of these elements, there

are several sub-elements. For example, packaging is one of the sub-elements of product and

warehousing is one of the sub-elements of distribution.

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The Four Ps of Marketing:

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 first

described the marketing mix in terms of the four Ps. He classified the marketing mix

variables under four heads, each beginning with the alphabet “P”.

Product

Place

Price

Promotion

McCarthy has provided an easy-to-remember description of the marketing mix variables.

Over the years, the terms – Marketing mix and Four Ps of marketing have come to be used

synonymously.

Assembling and managing the marketing mix is the crux of the marketing task. And, it is

through the marketing mix that the marketing manager achieves the marketing objectives.

MARKETING STRATEGIES FALL UNDER TWO CATEGORIES:

We have seen that target market selection, positioning and marketing mix formulation

together constitute marketing strategy. We have also seen that a firm can assemble the

marketing mix elements in many different ways, depending on the relative weight age it

assigns to the different elements. The scope to carve out different combinations is, in fact

immense. As a result, business firms are able to employ an abundance of strategies and

strategy stances in their relentless race to stay ahead of competition. However, a close

scrutiny will reveal that all these strategies can be fitted into two broad categories:

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1. PRICE ORIENTED MARKETING STRATEGY

2. DIFFERENTIATION ORIENTED MARKETING STRATEGY

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.

PRICE ORIENTED MARKETING STRATEGYPRICE ORIENTED MARKETING STRATEGY:

Firms taking to the price route in marketing strategy compete on the strength of pricing.

They use price as their competitive lever. They juggle the price of their product to suit the

prevailing competitive reality. They can afford to offer lower prices and still make the

targeted profits. They elbow out competition with the cushion they enjoy in the matter of

pricing.

Price route requires cost leadership; evidently, a firm opting for the price route will

have to have a substantial cost advantage in their operations. It should be enjoying an overall

cost leadership in the given industry and its lower cost should enable it to secure above

average returns inspire of strong competition. The cost advantage can emanate from different

factors like, scale economies, early entry, a large market share built over a period of time,

vocational advantage, or synergy among the different businesses. The firms whole strategy,

in fact will revolve around building such cost advantage.

To successfully practice a price-led strategy, a firm should have consciously taken to

the idea sufficiently early in its evolutionary process and prepared itself for adopting such a

strategy.

DIFFERENTIATION ORIENTED MARKETING STRATEGYDIFFERENTIATION ORIENTED MARKETING STRATEGY:

The differentiation route of strategy revolves around aspects other than price. It works on the

principle that a firm can make its offer distinctive from all competing offers and win through

the distinctiveness. And, 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.

Maximum scope for exploiting differentiation remains with the product. While all the

4Ps of marketing are important elements from the point of view of strategy, the other Ps

normally go as elaborations of the offer, while the product forms its core.

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Product differentiation is of vital importance in product management and has great potential

in forgoing successful marketing strategies.

The product can be differentiated along two major planks:

1. Tangible product attributes and functions,

2. Intangible characteristics and emotional associations.

The tangible product attributes and functions are

Differentiation based on ingredients,

Differentiation based on functional value,

Differentiation based on additional features,

Packaging contributing to differentiation,

Differentiation based on Quality, Operational Efficiency, Technology, Service.

DIGITAL MARKETING: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.

BUZZ MARKETING (WORD OF MOUTH):BUZZ MARKETING (WORD OF MOUTH):Word of mouth, is a reference to the passing of information by verbal means, especially

recommendations, but also general information, in an informal, person-to-person manner.

Word of mouth is typically considered a face-to-face spoken communication, although

phone conversations, text messages sent via SMS and web dialogue, such as online profile

pages, blog posts, message board threads, instant messages and emails are often now

included in the definition of word of mouth. There is some overlap in meaning between

word of mouth and the following: rumor, gossip, innuendo, and hearsay; however word of

mouth is more commonly used to describe positive information being spread rather than

negative, although this is not always the case.

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Word-of-mouth promotion, also known as buzz marketing and viral advertising, is highly

valued by advertisers. It is believed that this form of communication has valuable source

credibility. Research points to individuals being more inclined to believe WOMM than more

formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe

that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e.

they are not receiving an incentive for their referrals). In order to promote and manage word-

of-mouth communications, marketers use publicity techniques as well as viral marketing

methods to achieve desired behavioral response. Influencer marketing is increasingly used to

seed WOMM by targeting key individuals that have authority and a high number of personal

connections.

EVANGELISM MARKETINGEVANGELISM MARKETING: : It is an advanced form of word of mouth marketing (WOMM) in which companies develop

customers who believe so strongly in a particular product or service that they freely try to

convince others to buy and use it. The customers become voluntary advocates, actively

spreading the word on behalf of the company.

Evangelism literally comes from the three words of 'bringing good news' and the marketing

term justly draws from the religious sense, as consumers are literally driven by their beliefs

in a product or service, which they preach in an attempt to convert others.

EFFECTIVE SALES PROMOTIONEFFECTIVE SALES PROMOTION::

Sales promotion consists of diverse collection of incentive tools mostly short term, designed

to stimulate quicker and greater purchase of particular products of services by the consumer.

Sales promotion is the only method that makes use of incentives to complete the push-pull

promotional strategy of motivating the sale force, the dealer and the consumer in transacting

a sale.

PPrice-Offs Offer:rice-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.

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Premium:Premium:Premium refers to the offer of an article of merchandise as an incentive in or to sell the

product.

Coupons:Coupons:In order to encourage product trail, stimulate re-purchase rate and build loyalty through

news papaers.

Dealer stock display contestsDealer stock display 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.

Dealer participating enthusiastically and creatively are awarded

DEFENDING MARKET SHAREDEFENDING MARKET SHARE:

While trying to expand total market size, the dominant firm must continuously defend it

current business against rival attacks. 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.

EXPANDING MARKET SHAREEXPANDING MARKET SHARE:

Market leaders can improve their profitability by increasing their market share. But for few

market leaders whose share in the total market is insignificantly high, the expansion of

market share n the total market may be proved both as expensive and risky. 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 reason for this action may be attributed to two factors:

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 in

the market share after a large share has been achieved may rise fast and reduce the

profit margin.

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HARASSMENT STRATEGY:HARASSMENT STRATEGY:The market leader firm will resort to a harassment strategy in order to promote its market

share. As a part of this strategy, the leader form might approach the suppliers and threaten to

reduce its purchases. If the latter supply the upstart firm, sometimes it might put pressure on

distributors not to carry the competitor’s product. The salesman of leader firm might speak

negatively about competitors. It may also try to hire away the better executives of an

aggressive firm. Sometimes, the market leader firm will try to restrain these competitions

through legal devices. It might push legislation that would be more unfavorable to the

competitors than to it.

The aim of defensive strategy is to reduce the profitability of attack, divert attacks to less

threatening areas, and lessen the intensity of attack. Any attack is likely to hurt profits. But

the defender’s form and speed of response can make an important difference in the profit

consequences.

There are 6 defense strategies that a dominant firm can use:

1.1. Position DefensePosition Defense ::

The basic idea of defense is to build an impregnable fortification around one’s

territory.

2.2. Flank Defense: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.

3.3. Preemptive DefensePreemptive 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.

4. Counteroffensive DefenseCounteroffensive Defense :

Most market leaders, when attacked will respond counterattack. The leader cannot

remain passive in the face of a competitor’s price cut, promotion blitz, product

improvement, or sales territory invasion. The leader has the strategic choice of meeting the

attacker frontally, maneuvering against the attacker’s flank, or launching a princer movement

to cut off the attacking formation from their base operation.

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5.5. Mobile Defense:Mobile Defense:

Mobile defense involves more than the leader aggressively defending its territory. In

mobile defense, the leader stretches it domain over new territories than serve as future centers

for defense and offense.

6. Contraction defenseContraction defense :

Large companies recognize that they can no longer defend all the territory. Their

focus are spread too thin, and competitors are nibbling away on several funds. The best

course of action then appears to be planned contraction (also called strategic withdrawal).

INNOVATION STRATEGY:INNOVATION STRATEGY:The market leader may innovate several strategies in respect of new product ideas, customer

services, means of distribution, cost cutting discovery. In addition to these, a leader may

discourage its competition particularly challenge firm.

FORTIFICATION 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 STRATEGYCONFRONTATION 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 considering to

enter in its market. This strategy will frighten the potential competitions and make then to

withdraw from entering the market.

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MARKETING STRATEGIES OF FORD: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. It has gone in for a new norm in customer service: “fix it right-the

first time-on time”. Ford is also supplying videotapes showing how repairs have to be

done.

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.

Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian roads.

Changes in cooling requirement, with greater airflow to the rear.

Higher resistance to dust.

Compatibility of engine with the quality of fuel available in India.

Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more

frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on

a lever on the side as in the models sold in Europe.)

Strategic segmentation of cars:The Ford in India has launched the car only for few segment of people.

The segmentation of car buyers based on price preferences are:

Family car segment: These cars form 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 to 12 lakh.

‘FORD FIESTA’, ‘FORD MONDEO’ comes under this segment of cars.

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SUV segment: The buyers of this segment like to have big vehicles.

And these cars are also useful for sport riding and even on hill areas. There body is designed

similar to off-road vehicles, which can withstand to Indian roads.

‘FORD ENDEAVOUR’ occupies this segment.

Strategic Promotions by FORD:

Ford follows the promotions at two levels, they a

1) Promotions of product directly by the manufacturer.

2) Promotions at dealer level.

In the first step the products of vehicles manufactured by the Ford Automotives are directly

promoted by the manufacturer by himself. He follows many promotional strategies like

1. Advertising through television and newspaper.

2. Internet or interactive marketing.

3. Direct marketing.

In the second step the dealer of the vehicles promotes the vehicles.

The various promotional strategies followed by the Fortune Ford at dealer are

1. Advertising though news papers, radios, palm plates. In this all the features of the

product and its prices are given in detail to the customer.

2. In televisions the scrolling are given about the product and its features.

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. It is a bit expensive strategy but attracts

many people who pass by that roadside.

This type of advertisement is prepared for those segments of people who cannot afford their

time in reading newspapers and watching televisions. While travelling from their home to

office, moving on their business activities they may watch these hoardings. These hoarding

are especially setup at the road signal stops.

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Maintaining Data Bank:

In this the dealer collects personal/bio-data (address and contact number) of many people

from various organizations and different sector who are ready to buy the vehicles and who

change the vehicles regularly.

These people are met-in person or contacted through their contact number. The various new

features and new offers regarding the vehicles are advocated to them and are given discounts

on group purchase of vehicles, i.e. if 5 or more friends in the group purchase the cars at a

time then they are given special discounts on the vehicles.

Free Insurance:The Fortune Ford gives a special offer of free insurance on the purchase of each vehicle to

its new customers.

Relationship Marketing:Fortune Ford pays a special attention towards its old customers. To retain the old and

existing customers it conducts a corporate meet at a luxurious hotel. The event aims at

knowing the problems of the customers regarding the vehicles and also service feedback.

In this way it maintains an effective relationship with the customers and gains the reputation

and goodwill in the minds of the customers.

Sales Promotion:The sales promotion is done in the fortune ford at three levels:

1. Showroom sales: In this the customers walk in to the showrooms to know about the

details of the product. Specially trained sales executives who are present in the

showrooms give a detailed explanation about the product to the customers. Sales

executives give a detailed note on the products features, various offers given by the

manufacturer and also by the dealer to the customer and enhances the sales of the

vehicles.

2. Corporate sales: A special team of sales executives are sent to some big corporate

sectors and there they personally meet the heads of the organizations like C.E.O’s,

Managers etc., and explain about the vehicles and the offers and special schemes

provided by the dealer to them on bulk purchase of the vehicles and try to promote the

sales of the vehicles.41

3. Field sales: The sales executives conduct some events with the corporate working

people and try to demonstrate the product features and its benefits and try to promote the

product and increase its sales.

Conducting Customer Delight Program:This is a unique program conducted by the Fortune Ford. This is a program conducted to

retain the old customers of the Ford. The old customers of the Fortune Ford are meeting

personally and they are requested to give their feedback by filling in the questionnaire which

is specially prepared for them. In this questionnaire their problems regarding the vehicle

and also their post sale service experience are taken. If there exists any problem, then the

Fortune Ford service men try to resolve the problems of their customers as soon as possible

and makes the customer satisfied.

This is a technique to attract the new customers by satisfying the old customers and gaining

goodwill in the market.

STRATEGIC SALES STANDARDS:Fortune Ford maintains strategic sales standards in the following manner.

The Sales faculty is clean, tidy and inviting, making customers comfortable while

purchasing products and availing services.

Customers are courteously acknowledged within two minutes of their arrival and are

advised that a Sales Consultant will be available upon request.

The Sales Consultant’s appearance and dress will be of the highest standards.

An advisory relationship is established between the customer and the Sales Consultant

who listens to the customer, identifies their needs and ensures that they are met.

A pleasant, non-pressured purchase experience will be provided during which a

thorough demonstration of the vehicle features and benefits will be made.

A test drive will be offered to all customers.

Using a check list, the Sales Consultant delivers the vehicle in perfect condition when

promised.

Customers will be contacted within one week after delivery to ensure total

satisfaction.

42

MAINTAINING SERVICE STANDARDS: An efficient service facility allows a customer to avail all the service provided by

Fortune Ford, in a clean and welcoming environment.

An appointment is available within 5 working days of the customer’s request.

Customers are courteously acknowledged within two minutes of their arrival and

the write-up will begin with five minutes.

Service needs are courteously identified, accurately recorded on the repair order

and verified with the customer.

The vehicle is serviced right on the first visit.

The vehicle is ready on the agreed upon time.

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

the customer.

All service repair work will be followed up within five working days.

Each vehicle will be washed before being returned to the customer.

EXTENDED WARRANTY:

Fortune Ford gives an extended warranty to its customers where there will be extended time

duration in the warranty.

What is Extended Warranty?

Factory Warranty covers only for a specific period of time/mileage.

After the factory warranty expires, customer is exposed to the risk of parts failures.

This is applicable for any machine/equipment/vehicle.

Extended Warranty:

Is an extension of Factory Warranty

Offers almost similar coverage as Factory Warranty

Comes with a time-bound (eg. 1yr/2yrs but unlimited mileage cap)

Covers all Mechanical and Electrical Failures

Covers labour

43

Why is extended warranty needed?

Offers peace of mind motoring

Protects against unexpected and non-budgeted expenses

Can be transferred, 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

Chapter 344

LITERATURE REVIEW

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. 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.

A strategic marketing plan usually evolves from an organization’s overall corporate strategy

and serves as a guide for specific marketing programs and policies. Marketing strategy is

based on a situation analysis- a detailed assessment of the current marketing conditions

facing the company, its product lines, or its individual brands. From this situation analysis, a

firm develops an understanding of the market and the various

opportunities it offers, the competition and the market segments or target markets the

company wishes to pursue.

Marketing strategy is the complete and unbeatable plan, designed specifically for attaining

the marketing objectives of the firm/business unit. The marketing objectives indicate what the

firm wants to achieve; the marketing strategy provides the design for achieving them. For

example, if the marketing objectives of a business unit stipulate that next year, it should

achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent of sales revenue, it is

the job of marketing strategy to indicate how and where from this saleand profit will come,

which product lines/products/brands will accomplish this task and how.

Marketing strategy forms an integral part of marketing planning. Marketing strategy is most

effective when it is an integral component of corporate strategy, defining how the

organization will successfully engage customers, prospects, and competitors in the market

arena. It is partially derived from broader corporate strategies, corporate missions, and

corporate goals. As the customer constitutes the source of a company's revenue, marketing

strategy is closely linked with sales. A key component of marketing strategy is often to keep

marketing in line with a company's overarching mission statement.

Chapter 445

RESEARCH METHODOLOGY

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”.

Simply, marketing research is the systematic design collection analysis and reporting of data

finding relevant to a specific marketing situation facing the company. Carefully planning

through all stages of the research is a necessity.

Objectivity in research is all-important. The heart of scientific method is the objective

gathering of the information.

The function as marketing research within the company as to provide the information and

analytical necessary for effective:

Planning of the future marketing activity.

Control of the marketing operation in the present.

Evaluation of marketing results.

A research may undertake any of the three types of research investigation depending upon the

problem. This type of research included:

1. Basic research

2. Applied research

3. Designated Fact Gathering

BASIC RESEARCH:

It is also known as the pure fundamental research, which refers to those studies, sole purpose

of which is the discovery of new information. It is conducted to extend the horizons on given

area of knowledge with no immediate application to existing problems.

APPLIED RESEARCH:

46

It is attempt to apply the various marketing technique, which have been developed as

research, first and later on they become applied research techniques. It is on attempt to apply

the basic principles and existing knowledge for the purpose of solving operational problems.

DESIGNATED FACT GATHERING:

It refers to a research where the investigation attempts to gather some pre-determined data.

STEPS IN MARKETING RESEARCH:

Marketing research process can be out through following steps.

Define the problems and research objectives

Develops the research plan

Collect the information

Analysis and interpretation

Present the finding.

RESEARCH METHOD:

It must be classified on the basis of the major purpose of the investigation. In this problem

description studies have been undertaken, 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.

DATA COLLECTION:

The information needed to further proceed had been collected through primary and secondary

data.

PRIMARY DATA:

47

It consists of information collected for the specific purpose, 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.

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.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been

collected for another purpose. Any researcher begins the research work by first going

through secondary data. Secondary data includes the information available with company. It

may be the findings of research previously done in the field. Secondary data can also be

collected from the magazines, news papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION:

The basic method adopted in conducting the study is a structured questionnaire.

Questionnaire is administered on the sample respondents. How ever there are certain cases

where personal interactive method is followed with customers to find the satisfaction level.

OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY48

Primary Objective:

To know the influence of various Marketing Strategies, Promotional Activities towards the

customers of four wheelers (cars).

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.

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.

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.

SCOPE OF THE STUDY

49

The scope of the study is to identify the marketing strategies of “Ford

Motors”. Primary data was collected from customers. Secondary data was collected from

company manuals, magazines and websites and so on, the study gathers information about

the marketing strategies in regard to Quality of Service, Safety Tips, fuel saving tips, driving

tips etc.., customer care service and other values added services provided by the company.

LIMITATIONS OF THE STUDY

50

A portion of the respondents contacted were not precise and genuine in giving their

opinion of satisfaction or dissatisfaction. If accidentally they had badly experience at one

instance, they would mark very poor.

To measure the exact level of customer relation the sample size was small.

Short time period was inadequate for conducting detailed study among the customer.

The study was restricted to Delhi only.

The study was limited to the capabilities and willingness of the respondents

inappropriately answering the questions.

Chapter 551

DATA ANALYSIS & INTERPRETATIONS

1. Which of the following Ford car you own?

a) Fiesta

b) Ikon

c) Endeavour

d) Fusion

Data analysis:

Name of the car % of customers

Fiesta 49

Ikon 27

Endeavour 15

Fusion 9

Total 100%

% of customers0

1020304050

Fiesta Ikon Endeavour Fusion

Interpretation: This question is meant for taking the information regarding the most

preferred car in the Ford cars. From the above graph it is found that most preferred vehicle of

Ford cars is Fiesta.

2. What do you like most about your Ford car?

a) Style/design 52

b) Comfort

c) Ford brand

d) Service

Data analysis:

Customers preference No of customers

Style/design 9

Comfort 23

Ford brand 13

Service 5

0

5

10

15

20

25

9

23

13

5

customer preference

Style/design Comfort Ford brand Service

no o

f cus

tom

ers

Interpretation: This question is meant to know the customers preferences and likes

towards the cars. From the data we can position our product to the comfort seeking group of

people.

3. What do you feel great about your car when compared to other cars in the market?

a) Fuel efficiency

b) Durability53

c) Low maintenance

d) Sound quality

e) Brand name

Data analysis:

Customers perspective No of customers

Fuel efficiency 2

Durability 7

Low maintenance 9

Sound quality 12

Brand name 20

02468

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Fuel efficiencyDurabilityLow maintenanceSound qualityBrand name

customer prespective

No

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Interpretation: From this question we can position the cars according to the customer’s

perspectives. Many of the Ford customers are buying the cars by seeing its Brand Name

only. The no. of customers satisfied with the fuel efficiency is very low.

4. How did you come to know about this car before purchasing?

a) From friends, relatives (buzz)

b) Advertisements

54

c) Car experts

d) Sale’s persons visit

e) Auto magazines

Data analysis:

Source of awareness No. of customers

Friends, relatives 9

Advertisements 25

Car experts 3

Sale’s persons visit 8

Auto magazines 5

0

5

10

15

20

25

9

25

3

85

Friends, relativesAdvertisementsCar expertsSale’s persons visitAuto magazines

Source of awareness

No.

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Interpretation: Most of the Ford customers came to know about their vehicle through

advertisements only. The major media that attracted the customers is television.

5. Can you share your experience with after sale service support

a) Very much satisfied

b) Satisfied55

c) Ok

d) Not satisfied

Data analysis:

Post service experience No. of customers

Very much satisfied 6

Satisfied 15

Ok 25

Not satisfied 4

0

5

10

15

20

25

30

Very much satisfied Satisfied Ok Not satisfied

After sale service experience

No.

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Interpretation: This question is prepared to know the service levels of the authorized

dealer. Most of the customers are just telling ok about the service. Only a very few customers

are very much satisfied with the service. Even some of the customers are not satisfied with

the service given by the authorized service men.

6. Where do you get your car serviced regularly?

a) At authorized service centre

b) At a local workshop near my home

56

Data analysis:

Place of service No. of customers

At authorized service centre 41

At a local workshop near home 9

82%

18%

customers preference for service centres

at authorised service centre

At a local workshop near home

Interpretation: Most of the Fortune Ford customers are interested to service their vehicles

only at the authorized dealers. From this we come to know what the importance of authorized

service centers for car is.

7. Which bank do you prefer in getting financial help while purchasing a car?

a) ICICI

b) HDFC

57

c) SBI

d) Others

Name of the bank No. of customers

ICICI 21

HDFC 6

SBI 20

Others 3

0

5

10

15

20

25 21

6

20

3

ICICI HDFC SBI Others

BANKS

No.

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Interpretation: Most of the customers prefer ICICI and SBI banks for taking financial

help while purchasing a car. Customers are asking for 0% interest on financial help

provided by the banks.

8. Which type of finance do you prefer?

a) In house finance

b) Out house finance

58

c) No difference between the two

Data analysis:

Type of finance No. of customers

In house finance 30

Out house finance 12

No difference between the two 8

05

1015202530

30

128

Customer opinion of finance

In house finance

Out house finance

No difference be-tween the two

Types of finance

No.

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Interpretation: To know the customers opinion about the finance and their interests

in preferring the finance from various sources, this question is prepared. Most of the

customers prefer only In house finance compared to outhouse finance.

9. To which media do you get expose regularly?

a) Televisions

b) Magazines

59

c) News papers

d) F.M/Radio

Data analysis:

media No. of customers

Televisions 26

Magazines 7

News papers 16

F.M/Radio 1

05

1015202530 26

7

16

1

Media that attract customers

Televisions Magazines News papers F.M/Radio

Type of Media

No.

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Interpretation: From this analysis we come to know that most of the customers are

interested in watching televisions, which is a good media for communicating with people

and delivering our intentions about product.

10. Which kind of T.V. channels do you watch regularly?

a) National news channels

b) Regional news channels

60

c) Sports channels

d) Entertainment channels

Data analysis:

T.V. Channels No. of customers

National news channels 10

Regional news channel 16

Sports channels 4

Entertainment channels 20

02468

101214161820

10

16

4

20

Role of T.V channels in attracting customers

National news channels

Regional news channel

Sports channels

Entertainment channels

T.V.Channels

No.

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Interpretation: This question is meant to know the interests and preferences of

customers towards T.V. channels. More than quarter of the sample size showed interest

only on the entertainment channels and next preference goes to the regional news

channels.

11. What’s your opinion on the price list of Ford cars?

a) Affordable by common man

b) Affordable only by rich man

61

c) Can’t say

Data analysis:

Customer opinion on pricelist of ford

car

No. of customers

Affordable by common man 6

Affordable only by rich man 42

Cant say 2

6; 12%

42; 84%

2; 4%

Customer opinion on price list of Ford cars

Affordable by common man Affordable only by rich man Cant say

Interpretation: More than 80% of customers think that Ford cars are affordable only

by rich men. These cars are too expensive for an economic society.

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 period62

d) Finance availability with 0% interest

Data analysis:

offers No. of customers

Free insurance 9

Special discount on sale of cars 3

Extending the service period 27

Finance availability with 0%

interest

11

0

5

10

15

20

25

30

9

3

27

11

Offers liked by customers

Free insurance

Special discount on sale of cars

Extending the service period

Finance availability with 0% interest

Various offers

No.

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Interpretation: By the result of this question we come to know about the various

promotional techniques/offers which attract the customers. From the above analysis

many customers are expecting the extension in the service period from the various offers

given to them.

13. What more do you expect from your dealer?

a) Information about new cars

b) Information about service and mileage

c) Assistance regarding loans and insurance

63

d) Understanding customer needs

Data analysis:

Expectations of customer No. of customers

Information about new cars 2

Information about service and mileage 34

Assistance regarding loans and

insurance

4

Understanding customer needs 10

05

101520253035

2

34

410

Customers expectations from dealer

Information about new cars

Information about service and mileage

Assistance regard-ing loans and in-surance

Understanding customer needsExpectations

No.

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Interpretation: Most of the customers are expecting the information about service

and mileage regarding the cars from the dealer. From the above analysis we come to

know about the customer’s expectations and their post purchase service demands from the

dealer.

14. How do you feel when an unknown sales person approaches you by knowing

your full details to demonstrate about any product?

a) I will not respond

b) Lost my privacy64

c) Interested in knowing (if I feel a need of it)

Data analysis:

Customer opinion No. of customers

I will not respond 11

Lost my privacy 5

Interested in knowing (if I feel a need

of it)

34

0

5

10

15

20

25

30

35

11

5

34

I will not respond

Lost my privacy

Interested in knowing (if I feel a need of it)

Customer opinion

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Interpretation: This question is prepared indirectly to know about the customer’s

opinion about the Data Bank maintenance by the Fortune Ford. In reply majority of the

customers gave a positive reply by showing interest in knowing about the cars when a

sales person gives a detailed description about the cars.

15. What’s your opinion on a Brand Ambassador for the cars?

a) Very necessary

b) Not needed

c) Waste of money for manufacturer

65

Data analysis:

Customer opinion on ambassador No. of customers

Very necessary 43

Not needed 7

Waste of money for manufacturer 0

05

1015202530354045

43

7

0

Opinion on Brand Ambassador

Very necessary

Not needed

Waste of money for manufacturer

customer opinion

No.

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Interpretation: This question is meant to know about the importance of Brand

Ambassador for a car in the customer’s point of view. Most of the Ford customers think

that a Brand Ambassador is very necessary for promoting a car.

16. What’s your opinion about the previous Ambassador Abhishek Bachan for

the car Ford Fiesta?

a) Full filled the purpose

b) Unable to attract customers66

c) He was not apt for it.

Data analysis:

Customer opinion No. of customers

Full filled the purpose 38

Unable to attract customers 10

He was not apt for it 2

76%

20%4%

Customer opinion about Abhishek Bachan

Full filled the purpose

Unable to attract the customers

He was not apt for it

Interpretation: Most of the Ford customers think that the previous Brand

Ambassador Abhishek Bacchan for the car Ford Fiesta full filled the purpose and he was

able to increase the sales of the cars Fiesta.

17. Whom do you suggest as a right person for promoting a car?

a) Sports person

b) Film stars

c) Car expert

d) Any celebrity67

Data analysis:

Customer suggestion No. of customers

Sports person 18

Film star 21

Car expert 7

Any celebrity 4

0

5

10

15

20

2518

21

74

Customer suggestion about Brand Ambassador

Sports personFilm starCar expertAny celebrity

Brand Ambassadors

No.

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Interpretation: Most of the customers of Ford suggest a film star as the best

ambassador. Because many of them get attracted only to their favorite film stars other

than other brand ambassadors.

18. What other brand(s) did you seriously consider before making this car

purchase?

a) Hyundai

b) Chevrolet

c) Maruti

68

d) TATA

e) Toyota

Data analysis:

Brand name No. of customers

Hyundai 19

Skoda 12

Maruti 5

Honda 9

Toyota 5

0

5

10

15

20

19

12

59

5

Brand preference other than Ford

Hyundai Skoda Maruthi Honda Toyota

Brand name

No.

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Interpretation: Most of the Ford customers are opting for Hyundai when they are

asked to consider a brand other than Ford. Skoda occupies the second place in their

preference.

CHAPTER 6

FINDINGS

69

Brand awareness has got a great range of influence on buying behavior. Now-a-

days people are Brand conscious. Products or Services having a good Brand image has

got a great range of influence on buying behavior.

The brand image of FORD is Excellent. Everyone is aware of Ford as it is the fourth

largest automobile company.

In hatch back cars millage plays a major role on buying behavior. People who are

choosing hatch back car segment are mostly from employees and middle class. They

cannot effort more.

Maintenance of Ford vehicles is more. Ford is positioned in the minds of people as high

maintenance that is the one of the reason why Ford is not a big success in the Indian

market.

The products “go fida” the “ford FIESTA” and “ford FIGO” many features when

compared to any car in hatchback segment. No car in the hatchback segment is

competitor for Figo and Fiesta. Figo is having a number of features like dual air bags,

ABS with EBD etc.

Major competitor of Ford Figo is Maruti Swift. Everyone in the market is comparing the

ford to Maruti swift as Maruti is the leader for the hatchback segment. Its product Swift

is a success model.

Customer’s perspectives, Many of the Ford customers are buying the cars by seeing its

brand name only. The no. of customers satisfied with the fuel efficiency is very low.

Most of the Ford customers came to know about their vehicle through Advertisements

only. The major media that attracted the customers is television.

Chapter 7

RECOMMENDATIONS

Please try to increase the number of Service centers.70

Keep Service Stations at main locations of the city.

There is no proper response from the service men at service station. Please recruit

efficient service men in the service centers.

The service men in the service centers are unable to understand the problems told by us,

and they are not resolving the cars problems.

Provide information on service and mileage regularly.

Please provide information about new cars along with their price lists at least once in 6

months.

Advertisements through televisions can influence many categories of people. So try to

concentrate on this segment. We don’t see or find much of the Ford car advertisements in

T.V except Fiesta.

Try to provide financial facility at 0% interest.

Customer should be educated about the maintenance of the vehicle. I.e. maintenance tips

should be provided.

Mileage of the cars is not up to the expectations.

Mileage of Fiesta is very worst it’s giving only 9 to 11 Km per liter. Please try to rectify

it.

The quality of the sun proof coating used is of very low quality, vehicle color is getting

shaded very quickly.

Please send the specially appointed feedback taking staff on Sunday evenings only.

The sales people present in the showroom respond to us properly when we come to

purchase a new car, but they do not respond when we come to tell our problems regarding

the cars.

71