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PANJAB UNIVERSITY,CHANDIGARH.
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INTRODUCTION ................................................................................................ 1 OBJECTIVES ....................................................................................................... 4 INTRODUCTION TO AUTOMOBILE INDUSTRY ......................................... 5 COMPANY PROFILE ......................................................................................... 6 FORD MOTOR COMPANY ............................................................................... 6 HISTORY ............................................................................................................. 9 SOURCE OF DATA ........................................................................................... 11 MARKETING STRATEGIES OF FORD .......................................................... 12 ANALYSIS AND INTERPRETATION ............................................................ 18 SUGGESTIONS ................................................................................................. 36 QUESTIONNAIRE ............................................................................................ 37 BIBLIOGRAPHY ............................................................................................... 41
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promotion or selling can be compensate. Hence the aim of marketing is to build and manage profitable customer relationship. This is a part of the strategic marketing done by every company to achieve it objectives and goals. To maximize the profits and longterm plans every organization has to follow a strategic planning. Marketing is much more than just an isolated business function it is a philosophy that guides the entire organization towards sensing, serving and satisfying consumer needs. The marketing department cannot accomplish the companys customer relationship-building goals by itself. It must partner closely with other departments in the company and with other organization throughout its entire value delivery network to provide superior customer value and satisfaction. Thus marketing calls upon everyone in the organization to think customer and to do all they can to help build and manage profitable customer relationship. Marketing is all around us, and we need to know that it is not only used by manufacturing companies, wholesaler and retailers, but also by all kinds of individuals and organizations There are four major, powerful themes that go to the heart of modern marketing theory and practice, they are: 1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS. 2. BUILDING AND MANAGING STRONG BRANDS. 3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE. 4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE.
Before taking any decision and achieving the goals, it has to make analysis of what to do, how to do, when to do, where to do and who is to do it. This is nothing but strategic planning. Goals indicate what a business units wants to achieve whereas
strategy is how to get there. Marketing strategies in simple terms are the complete and unbeatable plans designed specifically for attaining the marketing objectives of the firm. Marketing can be called as a game plan for achieving its goals. Strategy choice will depend on whether the firm or the marketer plays the following roles: Market leader A challenger A follower A nicher The identification of objectives, both in quantitative and qualitative terms, is an essential backdrop to strategy formulation. Goals have a quality and time frame attached to
Secondary objective:
To Study and analyze the Promotional Strategies of Ford To know whether the customers are satisfied with the offers given by the dealer. To find the area to be improved 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.
The automobile industries which play a crucial role in the Indian automobile industry are:
General Motors India Maruti TATA M&M Mercedes-Benz Hyundai Motors Honda SIEL Toyota Skoda Ind
Type Public (NYSE: F) Founded June 17, 1903 Founder Henry Ford Headquarters Dearborn, Michigan, USA
Area served Worldwide William Clay Ford, Jr - Executive Key people Chairman Alan Mulally - President, CEO Industry Automotive Products Automotive goods and services Revenue Operating income US$134.26 billion (2012) [1]
Net income US$5.665 billion (2012) 224,000 (2012) around 90 plants worldwide Ford Credit Divisions Ford division Lincoln
Employees
Ford Motor Company is an American multinational corporation and the world's third largest automaker based on worldwide vehicle sales. In 2012, Ford was the second-ranked automaker in the US with a 15.9% market share, behind General Motors(17.9%) but ahead of Toyota (14.4%) and DaimlerChrysler (14.4%). Ford was also the ninth-ranked American-based company in the 2012 Fortune 500 list, based on global revenues of $134.1 billion. In 2012, Ford produced about 6.6 million automobiles, and employed about 224,000 employees at about 90 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 Fordand incorporated in June 16, 1903. Ford now encompasses many global brands, including Lincoln and Mercuryof 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.
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
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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 organizations 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.
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The Ford in India has launched the car only for few segment of people. The segmentation of car buyers based on price preferences are
Family car segment: These cars forms a reasonably sizeable segment of the market (around 15 percent). Preferred price range is from 5 lakh to 6 lakh. FORD IKON AND FORD FUSION come under this type of segment.
Premium car segment: This segment represents buyers who need a real world-class car and are willing to pay the due price. Preferred price range starts from 8 lakh to 12 lakh.
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SUV segment: The buyers of this segment like to have a big vehicles. And these cars are also useful for sport riding and even on hill areas. There body is designed similar to offroad vehicles, which can withstand to Indian roads. FORD ENDEAVOUR occupies this segment.
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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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.Os, 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.
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Conducting Customer Delight Program: This is a unique program conducted by the Fortune Ford. This is a program conducted to retain the old customers of the Ford. The old customers of the Fortune Ford are meet personally and they are requested to give their feedback by filling in the questionnaire which is specially prepared for them. In this questionnaire their problems regarding the vehicle and also their post sale service experience are taken. If there exists any problem, then the Fortune Ford service men try to resolve the problems of their customers as soon as possible and makes the customer satisfied. This is a technique to attract the new customers by satisfying the old customers and gaining goodwill in the market.
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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: 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.
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.
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1. Which of the following Ford car you own? a) Figo b) Fiesta Classic c) Endeavour d) New Fiesta Data analysis: Name of the car Figo Fiesta Classic Endeavour New Fiesta Total % of customers 37 24 30 9 100%
40 35 30 25 20 15 10 5 0 % of customers
Figo Fiesta Classic Endeavour New Fiesta
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.
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2. What do you like most about your Ford car? a) Style/design b) Comfort c) Ford brand d) Service Data analysis: Customers preference Style/design Comfort Ford brand Service No of customers 9 23 13 5
customer preference
25 no of customers 20 15 10 5 9 5 13 23
0
Style/design Comfort Ford brand Service
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
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Data analysis: Customers perspective Fuel efficiency Durability Low maintenance Sound quality Brand name No of customers 2 7 9 12 20
20 No of customers 15
Fuel efficiency
10 5 0 customer prespective
Sound quality
Brand name
Interpretation:From this question we can position the cars according to the customers 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 are very low.
4. How did you come to know about this car before purchasing? a) From friends, relatives (buzz) b) Advertisements c) Car experts
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Data analysis: Source of awareness Friends, relatives Advertisements Car experts Sales persons visit Auto magazines No. of customers 9 25 3 8 5
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No. of customers
25
20 15 10 5 0
Source of awareness
Friends, relatives Advertisements
9 8 3 5
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) Satisfied c) Ok d) Not satisfied Data analysis:
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30 No. of customers
25
20 15 10 5 0 After sale service experience
Very much satisfied Satisfied Ok Not satisfied
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 Data analysis: Place of service At authorized service centre At a local workshop near home No. of customers 41 9
22
82%
18%
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
7. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI b) HDFC c) SBI d) others
No. of customers 21 6 20 3
23
6
3
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 c) No difference between the two
Data analysis: Type of finance In house finance Out house finance No difference between the two No. of customers 30 12 8
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20 15 10 5 0 Types of finance
No difference between the two
12 8
Interpretation: To know the customers opinion about the finance and their interests in preferring the finance from various sources, this question is prepared. customers prefer only In house finance compared to outhouse finance. Most of the
9. To which media do you get expose regularly? a) Televisions b) Magazines c) News papers d) F.M/Radio Data analysis: media Televisions Magazines News papers Internet No. of customers 26 7 8 9
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No. of customers
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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 c) Sports channels d) Entertainment channels Data analysis: T.V. Channels National news channels Regional news channel Sports channels Entertainment channels No. of customers 10 16 4 20
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No. of customers
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10 5 0 T.V.Channels 10 4
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. Whats your opinion on the price list of Ford cars? a) Affordable by common man b) Affordable only by rich man c) Cant say Data analysis: Customer opinion on pricelist of ford car Affordable by common man Affordable only by rich man Cant say 6 42 2 No. of customers
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42; 84%
6; 12%
2; 4%
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/comman man of the 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 period d) Finance availability with 0% interest Data analysis: offers Free insurance Special discount on sale of cars Extending the service period Finance availability with 0% interest No. of customers 9 3 27 11
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25 20
Special discount on sale of cars
15
10 5 0
9 3
11
Extending the service period Finance availability with 0% interest
Various offers
Interpretation:
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 d) Understanding customer needs Data analysis: Expectations of customer Information about new cars Information about service and mileage Assistance regarding loans and insurance Understanding customer needs 10 No. of customers 2 34 4
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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 customers 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 privacy c) Interested in knowing (if I feel a need of it) Data analysis: Customer opinion I will not respond Lost my privacy Interested in knowing (if I feel a need of it) No. of customers 11 5 34
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I will not respond
0
Customer opinion
Interpretation:
opinion about the Data Bank maintenance by the Fortune Ford. In reply majority of the customers gave a positive reply by showing interest inknowing about the cars when a sales person gives a detailed description about the cars. 15. Whats your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer Data analysis: Customer opinion on ambassador Very necessary Not needed Waste of money for manufacturer No. of customers 43 7 0
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Very necessary
40 30 20 10 0
7 0 customer opinion
Not needed Waste of money for manufacturer
Interpretation :This question is meant to know about the importance of Brand Ambassador for a car in the customers point of view. Most of the Ford customers think that a Brand Ambassador is very necessary for promoting a car. 16. Whats your opinion about the previous Ambassador AbhishekBachan for the car Ford Fiesta? a) Full filled the purpose b) Unable to attract customers c) He was not apt for it. Data analysis: Customer opinion Full filled the purpose Unable to attract customers He was not apt for it No. of customers 38 10 2
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76%
Unable to attract the customers He was not apt for it
4%
20%
Interpretation: Most of the Ford customers think that the previous Brand Ambassador Abhishek Bachan 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 celebrity Data analysis: Customer suggestion Sports person Film star Car expert Any celebrity No. of customers 18 21 7 4
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21 18
Sports person
Film star
20 15 10 5 0
7 4
Brand Ambassadors
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 d) TATA e) Toyota Data analysis: Brand name Hyundai Skoda Maruti Honda Toyota No. of customers 19 12 5 9 5
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No. of customers
20 15 10
Hyundai
Skoda
Maruthi
Honda
Toyota
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.
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1. Which of the following Ford car you own? a) Fiesta b) Ikon c) Endeavour d) Fusion
2. What do you like most about your Ford car? a) Style/design b) Comfort c) Ford brand d) Service
3. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance d) Sound quality e) Brand name
4. How did you come to know about this car before purchasing? a) From friends, relatives (buzz) b) Advertisements c) Car experts d) Sales persons visit e) Auto magazines
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6. Where do you get your car serviced regularly? a) At authorized service centre b) At a local workshop near my home
7. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI b) HDFC c) SBI d) others
8. Which type of finance do you prefer? a) In house finance b) Out house finance c) No difference between the two
9. To which media do you get expose regularly? a) Televisions b) Magazines c) News papers d) F.M/Radio
10. Which kind of T.V. channels do you watch regularly? a) National news channels b) Regional news channels c) Sports channels d) Entertainment channels 11. Whats your opinion on the price list of Ford cars?
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12. What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest
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 d) Understanding customer needs
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 privacy c) Interested in knowing (if I feel a need of it) 15. Whats your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer 16. Whats your opinion about the previous Ambassador AbhishekBachan for the car Ford Fiesta ? a) Full filled the purpose b) Unable to attract customers c) He was not apt for it.
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18. What other brand(s) did you seriously consider before making this car purchase? a) Hyundai b) Skoda c) Maruti d) Honda e) Toyota
Thanks for taking the time to fill out this questionnaire and for providing valuable information which will be used for my project work, market research studies and reports. We do not share or sell your name, address or any other data with any outside company for any purpose.
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MARKETING MANAGEMENT
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