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A PROJECT REPORT ON FORD MOTORS

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CONTENTS

VISION

MISSIONORGANISATIONAL STRUCTURE

ABOUT THE COMPANY

EXECUTIVE SUMMARY

INTRO TO INDIAN AUTOMOBILE INDUSTRY

FORD PRODUCTS

CONCLUSION

STP ANALYSIS

SWOT ANALYSIS

MARKETING STRATEGY OF FORD

CONCLUSION

RECOMENDATIONSBIBLIOGRAPHY


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Ford motors

VISIONThough Henry Ford was responsible for revolutionaryadvances in manufacturing it is not as often noted that the FordMotor Company was an unusual leader in the establishment of American big business because of the firm's tightly-controlledand (by general big-business standards) under-capitalizednature. Ford's decision to adapt the assembly line notion to hisown product met with enormous success and he was able tooutstrip all his competitors very rapidly. The center of Ford's

vision, however, was not the use of the assembly line but theidea that cars could belong to anyone and that he couldproduce and sell a practical, affordable vehicle in massquantities. The combination of Ford's inventiveness andpracticality with his own stubbornness and the skill of hiscolleagues made the company into a big business that did not,at first, fit the mold. The Ford company is a case study in thepracticalities of manufacturing that, when combined with the

opportunity to create a major new industry, made it possible toproceed in a different manner than many of the big businessesthat emerged in the early part of the century.Henry Ford (1863-1947) was a trained machinist who was fascinated by the newhorseless carriages. He began to experiment with car buildingin the early 1890s and by 1896 he had built his first car. It wasonly the sixth gasoline-powered automobile to be built inAmerica. Over the next six years Ford tried repeatedly to gethis car into production. In which he would be able to put hisown ideas to work. The Ford Motor Company was incorporatedin 1903 "with an authorized capitalization of $150,000, allcommon stock, of which $100,000 was issued." Malcolmsonguaranteed production financing up to $3,000, which was animportant incentive to other investors. There were ten other subscribers, most associated with Malcolmson. The Dodge


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brothers, John and Horace, paid their $5,000 subscriptions withpromissory notes that were later paid off by the profits fromFord business obtained by their machine shop. JamesCouzens paid $1,000 in cash and signed a promissory note for $1,500. In all, the new company received only $28,000 in cashand, "according to a Ford publication issued in September,1920, this was all the cash ever paid in on its capital stock." Atthe beginning the new company proceeded as all car makersdid. Foundries produced the castings which were then tooledinto individual parts. The parts were then assembled intocomponents (such as magnetos) and finally there was "theassembly of thousands of parts and components into the motor

vehicle." The production of parts and components was acapital-intensive undertaking and demand for luxury carstended to suffer.


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MISSION

Ford Motor Company is a worldwide leader in automotive and

automotive-related products and services as well as in newer

industries such as aerospace, communications and financial

services. Our mission is to improve continually our products

and services to meet our customers needs, allowing us to

prosper as a business and to provide a reasonable return for

our stockholders, the owners of our business. The missionscan be listed as following:

y Products: Our products are the end result of our efforts,

and they should be the best in serving our customers

worldwide. As our products are viewed, so are we viewed.

y Profits: Profits are the ultimate measure of how efficiently

we provide customers with the best products for their

needs. Profits are required to survive and grow.

y Customers are the focus of everything we do. Our work

must be done with our customers in mind, providing better

products and services than our competition . y

Continuous improvement is essential to our success. Wemust strive for excellence in everything we do: in our

products, in their safety and value, and in our services, our

human relations, our competitiveness and our profitability.


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y Employee involvement is our way of life. We are a team.

We must treat each other with trust and respect. y Dealers and suppliers are our partners. The Company

must maintain mutually beneficial relationships with dealers,

suppliers and our other business associates.y Integrity is never compromised. The conduct of our

Company worldwide must be pursued in a manner that is

socially responsible and commands respect for its integrity

and for its positive contributions to society. Our doors areopen to men and women alike without discrimination and

without regard to ethnic origin or personal beliefs.


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ORGANISATIONAL STRUCTURE

CEO Alan MulallyChairman of the BoardBill FordDirector Richard ManoogianDirector Kimberly CasianoDirector

Stephen Butler Director John ThorntonDirector Gerald ShaheenDirector Ellen MarramDirector Anthony EarleyDirector Edsel FordDirector Irvine HockadayDirector Richard GephardtDirector Homer NealAmericasMark FieldsAsia Pacific AfricaJohn Parker CFOLewis Booth


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CIONSLegalDLGlobal Product DevelopmentDKProcurementTony BrownGovernment & Community Relat ... ZOHuman Resources & Corporate ... FF

Marketing & CommunicationJames FarleyFord EuropeJohn FlemingAsia Pacific & AfricaJHQualityBFSustainability & SafetySCCustomer ServiceFrederiek ToneyGovernment RelationsPLMazda Motor PSVolvo CarsSOUS Sales & MarketingKCFord Motor ChinaMWCFord India


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ABOUT THE COMPANY

COMPANY PROFILE

Type Public (NYSE: F)

Founded: June 7 1903Founder: Henry FordHeadquarters:

Dearborn. Michigan. AArea served worldwideWilliam Clay Ford. Jr - ExecutiveKey people ChairmanAlan Mulally - President. QIndustry AutomotiveProducts Automotive goods and servicesRevenue 120 .1 billion (31 Dec 2009) w


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Ford Motor Company is an American multinationalcorporation_and the worlds third largest automaker based onworldwide vehicle sales.In 2006, Ford was the second-ranked automaker in the US with

a 17.5% market share, behind General Motors (24.6%) butahead of Toyota (15.4%) and DaimlerChrvsler (14.4%). Fordwas also the seventh-ranked American-based company in the2007 Fortune 500 list, based on global revenues of $160.1billion. In 2006, Ford produced about 6.6million automobiles, and employed about 280,000 employeesat about 100 plants and facilities worldwide. In 2007, Ford hadmore quality awards from J.D Power than any other automaker.Based in Dearborn, Michigan, a suburb of Detroit theautomaker was founded by Henry Ford and incorporated inTime 16, 1903. Ford now encompasses many global brands,including Lincoln and Mercury of the US, Jaguar and LandRover of the ll K. and Volvo of Sweden. Ford also owns a one-third controlling interest in Mazda.Ford has been one of the worlds ten largest corporations byrevenue and in 1999 ranked as one of the worlds mostprofitable corporations, and the number two automaker worldwide.Ford introduced methods for large-scale manufacturing of carsand large-scale management of an industrial workforce,especially elaborately engineered manufacturing sequencestypified by moving assembly lines. Henry Fords combination of highly efficient factories, highly paid workers, and low prices


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History

Henry Ford (ca. 1919)Ford was launched in a converted factory in 1903 with $28,000in cash from twelve investors, most notably J ohn FrancisDodge and Horace Elgin Dodge who would later found theDodge Brothers Motor Vehicle Company. During its earlyyears, the company produced just a few Model Ts a day at itsfactory 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 hefounded the Ford Motor Company, which would go on to

become one of the largest and most profitable companies inthe world, as well as being one of the few to survive the GreatDepression. The largest family-controlled company in theworld, the Ford Motor Company has been in continuous familycontrol for over 100 years.

Corporate governance:Members of the board as of early 2007 are: Chief Sir JohnBond, Richard Manoogian, Stephen Butler. Ellen Marram.Kimberly Casiano. Alan Mulally (President and CEO), Edsel

Ford II. Homer Neal. William Clay Ford. Jr. Jorma Ollila. IrvineHockaday. Jr., John L. Thomton.an William Clay Ford (Director Emeritus).The main corporate officers are: Lewis Booth (Executive VicePresident, Chairman (PAG) and Ford of Europe), Mark Fields(Executive Vice President, President (The Americans),


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Donat Leclair (Executive Vice President and CFO). Mark A.Schulz (Executive Vice President, President [InternationalOperations) and Michael E. Bannister (Group Vice President;Chairman & CEO Ford Motor Pau1Magcaflagi (AmericasProduct Development)Ford started its innings with the Mahindra-Ford joint ventureformed in 1994, which produced the Escort out of M&M Nashikplant. After meeting initial success, sales of the Escort wasfinally replaced by the Ik on in 1999.The I con marked a new beginning for Ford in India. It rolled outof the Marajmalaingar plant near Chennai and by now, thecompany had parted ways with M&M and was renamed Ford

India Ltd in 1998. The Thon was the first model by amultinational to be developed specifically for India. Though itwas based on the Fiesta, it had a unique body style and wasoffered and was offered with an option of three engines,including a diesel. The car was a big hit. The Ikon underwentseveral 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 modem and highly-capable Fiesta, another made- for-Indiacar, with state-of-the-art engines, the Ikon has beenmarginalized. The Fiesta has picked up where the Ikon left andis selling well.Though the Ikon and Fiesta have been the mainstays of Fordsproduction in India, the company has had limited success withother models. The Mondeo, launched in 2001, was a verytalented car by was simply not suited to Indian conditions andearned a reputation for being exorbitant to maintain.The Endeavour SUV was launched in early 2004 and has soldwell for its niche. The Endeavour has recently been upgradedin 2007 and this has boosted the appeal of the big SUV. In2004, Ford launched the Fusion, which has received alukewarm response though the recent diesel variant hasperked up sales.


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Is an authorized dealer for Ford India Limited, who are one of the leading manufacturers of top quality cars in India, withmany variants in the offering.Fortune Ford is a 50:50% Joint Venture - up between twowell known and - reputed families in India Hyderabad, theMantis and the Babu Khans.Fortune Ford is a blend of experience and youth. Theexperience and good will that Mr. Misbahuddin Babu Khan andMr. Pramod Modi enjoy blend very well with the youth andenergy of the youngsters Bashir, Ashish, Nirav and Siraj tomake Fortune Ford a truly world class Ford Dealership.Fortune Ford markets and services the recently launched truly

European Ford Fiesta, the ever-popular Ford I/ con Flair, the Nonon-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 toEanadu. We have two service centers, one at Chapel Road,Abids opposite Stanley College and other one at Fathebagh,Santhnagar. These centrally located outlets provide convenientand easy access to both the proud owners as well asprospective buyers. The workforce at Fortune Ford iscommitted to excellence in serving all esteemed customers.The Sales Team is made up of dedicated showroom and fieldexecutives who are professionally trained by Ford IndiaLimited. They are adept at guiding the customer through theentire sales process right from assisting in the choice of model,colour and features to lending a helping hand in providingattractive buyback options and also arranging finance atcompetitive rates.


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V1.

The Service Centre is armed with the state-of the art equipmentand is in-line with Fords exacting Global standards. Theservice team is technically qualified and trained to analyze andprovide solutions adhering to Quality Care, in order to satisfyeven the most demanding customers.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 updatethem with the latest technological advances in the automotivesphere.SHOWROOMWe have 5000 sft centrally air conditioned showroom, locatedin 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 andSecunderabad.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 financecounters are available like ICICI, HDFC, KOTAK, SUNDARAM,SB!, etc.2. Exchange offer for any of your used car. Free spotevaluation for any used car.3. Professionally trained and courteous sales staff to take careof every relevant need of the customers.4 . Ford preferred insurance for cashless transactions in theevent of claims. Special offers on Insurance renewals.


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ARVIND MATHEW Managing Director and PresidentArvind Mathew is the Managing Director and President of FordIndia. He took this position in August 2005.

LUCY MILLAR Vice President, Finance & ITLucy is the Vice President of Finance and IT at Ford India. Shetook up this position in May 2005. She reports to ArvindMathew, President and Managing Director, Ford India.

SCOTT McCORMACK Vice President, Marketing, Sales

& ServiceScott McCormack is the Vice President, Marketing, Sales andService at Ford India. He took this position in July 2006. Scottreports to Arvind Mathew, President and Managing Director,Ford India.

NANCY REISIG Vice President, Human ResourcesNancy Reisig is Vice President, Human Resources at FordIndia. She took this position in March 2005. Nancy reportsto Arvind Mathew, President and Managing Director, Ford


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India.

SANDIP SANYAL Vice President, Supply and TotalValue ManagementSandip Sanyal is the Vice President, Supply and Total ValueManagement (TVM) at Ford India. He took this position inSeptember 2005. Sandip reports to Arvind Mathew, Presidentand Managing Director, Ford India.

STEVE BRIVLAN -- Country Manager, Ford Credit


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Executive Summary

Ford Motor Company is currently trying to increase its globalmarket share in automobile sales while facing slumping marketshare numbers in the United States. This report examines theFord company characteristics and how the company usesinformation systems in the business climate. Ford believes thathaving solid relationships with their employees, dealers,suppliers, and stakeholders allows them to have an advantage

over their competitors. Healthy professional relationships arehelpful to a companys success but being able to attractcustomers to your products will increase sales. Ford hasrecently introduced new vehicle architecture to try and attractnew buyers. The largest innovation for Ford has been theintroduction of their Hybrid cars. Ford reported an October sales drop of 23.5 percent as compared to a year ago. Thenew measures Ford is taking with their automobile design areexpected to help those numbers reverse in the future.

Ford sales have also under performed in the globalmarkets although the company is taking steps to increase saleswhile reducing costs. Ford has recently entered new markets,most of which are located in the Asian-Pacific region. Toreduce costs and increase knowledge of a region Ford usessmall ERP systems that are less expensive and faster toimplement than the larger ERP systems. Failure to obtain alarger market share in foreign markets has hurt thecompany. Ford got a late start entering the automobile marketin China, compared to competitors, and now controls less thanone percent of the market share. To add to the situation theChinese government has high taxes on automobiles that canincrease the price up to 100 percent or more. The future of Ford is headed towards a reported implementation of SAP


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throughout its North America organization. The proper use of information systems by Ford will increase their ability tomaintain a successful business in future years locally andglobally.

The Ford Motor Company is an ever-changing businessthat tries to stay ahead of its competitors in America and at theglobal level. Fords mission is to build great products, strongbusiness and a better world. To accomplish that mission theFord Company believes that not just quality and costawareness are the only things that matter, but also a solidrelationship with their employees, dealers, suppliers, and everyFord stakeholder (Ford motor company, 2004). With these

ideals Ford is proud to be a company with family-based valuesthat allows Ford to have a competitive advantage over itscompetitors. With this competitive advantage Ford believesthat everything they do affects the people they serve fromquality and safety of their products to the social andenvironmental impact on their customers every day lives. Thestrategy for Ford will be to continue to deliver exciting newproducts, improve quality and customer satisfaction, improvemarket share and revenue in all regions, and improve results atall automotive operations. To accomplish this strategy Fordhas put pressure on senior leaders to develop a true familyculture. To do that the Ford company will have to cultivate aworkplace that: attracts and retains the best people, allow themto work at full potential, encourage continuous developmentand mutual benefit, and promote teamwork while embracingdifferences and diversity.

The keys to Fords strength are the products. Therewere forty new products in one year, because of their newrealigned vehicle architecture. This allows Ford to produce agreater variety of attractive and competitive vehicles with moreshared components and less complexity (Ford motor company,2004). But the biggest innovation for Ford is the hybrid. Fordcan take advantage of this because they have their own


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patented hybrid technology and proprietary drive system andelectronic controls. Many competitors have not evenconsidered hybrids and when they do Ford will already be astep ahead of them. Currently, Ford offers the Escape Hybridwhich has seventy-five percent better fuel economies,especially in the city. Plus, the Escape Hybrid can do anythingthe regular Escape can do and has the same features. In thenext three years Ford plans on releasing four morehybrids. Ford also has a service for their customers, the FordMotor Credit Company, which offers many competitive ways for their customers to own Ford vehicles. Its the only product thatdoes not have wheels and its the finishing piece to Fords core

businesses. (Ford motor company, 2004)Ford North America holds half of Fords volumeworldwide, but their market share was down from 20.5% in2003 to 19.3% in 2004. Ford is committed in the year 2005 toraise the market share in Europe, South America, and Asia. Todo this Ford must still be focused on America and Europe, andstart to set up markets in other countries like China that are juststarting to make an impact on the world market. Right nowNorth America and Europe account for two-thirds of todaysmarket, but by 2014 it will only account for half of the worldmarkets (Ford motor company, 2004). Ford has made gains inother areas as well; net income where Ford had animprovement of $2.992 billion from 2003, total sales andrevenue were up $7.3 billion from 2003, also worldwide vehicleunit sales and European market share were up from 2003(Ford motor company, 2004).

Technology and information systems are very importantto the Ford Company. Because of Fords global scale,information needs to be timely so managers can makeimportant decisions. With the addition of technology, Ford canmake better products at a cheaper price; meanwhile it makesthe infrastructure of Ford that much more complicated.


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INTRODUCTION TO INDIAN AUTOMOBILE INDUSTRY

One of the fastest growing industries in the world is automobileindustry. This automobile industry even has its influence on theIndian market. Probably automobile industries occupy a largemarket share in the worlds market as well as in the Indianmarket. Nearly 18% of the total national income is beingincurred from the automobile industry. From this we canestimate how important the automobile industry in theimprovement of GDP of a country is. In India automobileindustry has a growth rate is at the average of 10- 12%.

Its fascinating drive through history, which begins as a story of isolation and missed opportunities to one of huge potential andphenomenal growth.Indias fixation with socialism and planned economies had acrippling impact on the automotive industry in its formativeyears. The goal at that time for independent India was self-sufficiency. Issues like quality and efficiency were simply notconsidered.Dependence of foreign technology was banned andmanufacturers were forced to localize their products; importsubstitution became the order of the day. Though we learnt tolocalize, the cars we made were all outdated designs with littleor not improvements for decades. The automotive industrystagnated under the governments stifling restrictions and theIndian car buyer was saddled with cars of appalling quality andeven then there was a waiting list that at one point stretched toeight years!This attempt at self-reliance failed miserably because of theindustrys isolation from the best technology. The Japaneseand later Korean auto industries were also highly protected intheir formative years but they never shut the door ontechnology. Instead, they relentlessly tapped the best talentpools in the world to absorb the know-how to produce good


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cars.One of the most important chapters in the Indian automotiveindustrys history was written by Maruti. It marked the Indiangovernment getting into the far business in the early 1980s, aradical shift in thinking after decades of treating cars withdisdain. The Maruti 800 went on to become the staple car of India and put a nation on wheels. This little car set abenchmark for price, size and quality and structured India assmall car market.It wasnt till 1993 that things really started to change for theIndian car buyer. With the liberalization of the economy, a hostof international carmakers rushed in. But most of them were in

for a shock as Indian customers rejected their product. Indiancustomers refused to allow the glitter of prestigious brandsblind them to the outdated and overpriced products they wereoffered. The Indian consumer wanted super value, andrewarded the brands that delivered it, handsomely. Hyundaiand Maruti delivered, and profited.The period also saw the emergence of the Indian players likeTata Motors and Mahindra & Mahindra. They rose to thechallenge of the MNCs and responded brilliantly with theIndica and the Scorpio. This was ironically due to the licenseraj that forced Indian car makers to be innovative and developproducts frugally. Indias frugal engineering skill has nowcaught the worlds imagination, and an increasing number of carmakers are preparing to setup major capacities here.India is changing. And changing fast. Its moving forward.Indias largest-selling car is not its cheapest car, the 800. It isthe Alto. Peoples aspirations are rising and so are their mistakes, have got their finger on the pulse of the market. Getthe right product and the rewards are handsome.The Indian auto industry is today bubbling with promise andconfidence. Its been a long journey but to see where the Indiancar industry is going. We have to see where it has been.AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE:


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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 fleetof 50 cars. For about 50 years after car arrived in India, carswere directly imported.Before World War I, around 40,000 motor vehicles wereimported. During the years between the wars, a small start for an automobile industry was made when assembly plant wereestablished in Bombay, Calcutta and Madras.The import/assembly of vehicles grew consistently after the1920s, 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, HindustanMotors and Mahindra & Mahindra set up factories in the 1 940sfor progressive manufacture rather than assembly fromimported components. The cars they chose to make were thelatest in the world when they were introduced in India in theformative years of the industry.POST- INDEPENDENCE:The government clamped down on imports and foreigninvestments. Companies like GM and Ford packed their bagsand left. Indias clock, thereafter, stood still while the worldraced on ahead. It would take nearly 50 years before the Indianauto industry could catch up with the rest of the world again.BROAD BANDING ERA:In January 1985, the government announced its famous broadbanding policy which gave new licenses to broad groups of automotive products such as two and four-wheeled vehicles.Through a liberal move, the licensing system was very muchintact. A manufacturer had to submit a phased-manufacturingprogramme to the Ministry of Industry specifying theindigenization progress and allowing for almost completeindigenization within five to seven years. The biggest hurdlewas the foreign-exchange clearance required for theseprojects. Except for MUL, which had direct access to policy-


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makers, every other manufacturer still faced a series of obstacles.Several new products were launched during this period. Allthree 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 SD1body with the old two-litre Vanguard engine. HM bought in a1972 Vauxhall Victor in 1985, transplanted its ageingAmbassador 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 A mbassador Mar k L The car cost Rs.17,000. In1963, it underwent a frontal facelift with a closely checkeredgrille and was named the A mbassador Mar k IL It would beanother 12 years before the Ambassador got a facelift. In 1975,another minor facelift to the same grille and a much bigger frontal facelift turned out as the Mark III. The Mark IV, launchedin 1979, was the last of the Mark cars.The A mbassador Nova was launched in 1990, followed byAmbassador 1800 ISZ three years later. The Nova was the lastAmbassador powered by the 1489cc petrol engine. In 2004,HM launched the cosmetically-revised Ambassador under theA vigo name. Designed by Mavendra Singh, the retro lookAvigo had classic touch internals like a centrally mountedconsole, beige-colored seats and wood finish interiors.THE CONTESSA YEARS:

The Hindustan Contessa, launched in 1982, was one of thefew luxury cars manufactured in the country in the 1980sand 1990s. It was based on the 1970s vintage Vauxhallvictor. While it was initially launched with the 1489cc enginefound in the Ambassador, the Contessa was soon given theIsuzu engines. There were three versions of this car -1.8GLX (Isuzu petrol), 2.ODLX (Isuzu diesel) and the rare2.OT (Isuzu diesel, turbo). The last Contessa rolled out in


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2002, phased out by the demand for cheap Japanese cars.Some of the leading Indian auto players in Indian automobileindustry are:Premier,TataMahindra and MahindraMarutiHindustan motorsthe story of premier is the story of one mans vision, SethWalchand Hirachand. He not only give India its first car factory but also the countrys first aircraft factory Hindustan Aeronautics Limited and the countrys first modem

ship yard, Hindustan Shipyard LimitedBuilding Indias first auto factorySeth Walchand Hirachand has first started the trails toestablish 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 Indiancompany to be completely independent, with Indianmanagement capital and employees, paying royalty or technology transfer payment to western countries.After approaching G eneral Motors they insisted on partownership. Seth Walchand then moved to second largestautomaker Ford; Henry agreed, but delegated the project toFord of Canada, which refused. Finally the third largestautomaker Chrysler agreed and singed in an agreement inBombay in 1940.

The arrival of FIAT:In 1951, PAL singed up with Fiat to assemble the Fiat 500 inIndia. In 1952, the tariff commission spelled out future for theauto industry indigenize or get out. Companies like Ford andGM, which had assembly operations in India, packed their bagsand went home.But fiat decided to stick it out and committed itself full-fledgedmanufacture of the Millicentoin 1954. In Sep 1964, PAL and


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FIAT launched the Fiat 11 00 DE LIT E in India. The biggestcustomers for s were Bombays taxi drivers. The Padminieswere easy for maintenance in terms of spares and labour cost,low on running cost, easy to drive and reasonably tough. It waseverything that a taxi driver wants.Established in 1945, Telco or the Tata Engineering andLocomotive Company, as its full name suggests, started outmaking steam locomotives for the Indian Railways. Telcos trystwith vehicle manufacture came in 1945 when it signed a 15-year agreement with Daimler-Benz AG of Germany tomanufacture commercial vehicle. The director in charge fromthe Tata side was Sumant Moolgaonkar.

This period was a shared birthing time for the Indiancommercial vehicle industry Premier Automobiles in leaguewith Chrysler, Hindustan Motors with General Motors andAshok Leyland with British Leyland which all started truckproduction around the same time.Telcos biggest triumph came in 1985 in the LCV segment. TheT ata 4 07 , a brand new product from bumper to tail-light, wasdesigned and marketed by Telco to take on the technicallysuperior Japanese products. The 407 immediately captured 70per cent of the market.The TATA SUMO, launched in 1994, turned out to be thesuccess story of the decade. The Sumo was conceptually abrilliant vehicle. And it was also a product of the governmentseccentric excise duty regulations at that time.1998 was a landmark year for Tata it launched the Ta t a S afi r i. Unlike the Sierra, Estate and Sumo that were designedand developed using rudimentary manual methods, the Safariwas made with modem manufacturing and design processes toensure new-found levels of quality and to take the company astep closer to its ambition of becoming a global carmaker.Yet, the most important landmark of 1998 was not the Safari.On 30 December 1998, Tata officially launched the much-awaited I ndica. 2001 also saw the company exit its joint


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venture with Daimler-Benz. In 2002, Tata launched the Indigosaloon, based on the I ndica platform. On 29 July 2003, J R DTatas birth anniversary, the company was renamed TataMotors Limited. The Tata juggernaut continued to roll acrossthe Indian auto industry with the launch of the I ndigo Marina in2004.The story starts some time in the 1940s. Pandit Nehru has adream of building a modern, industrially advanced nation. Andinspired by Nehrus vision are two brothers, Kailash ChandraMahindra and J agadish Chandra Mahindra. K.C.Mahindraduring his tenure in the United States had met Berney Roos.Roos was the inventor of rugged General Purpose vehicle or

the Jeep. The Jeep had earned reputation in the battle fields of World War II. On October 2nil 1945, the Mahindra brothersjoined hands with Ghulam Mohammed to set up a company toassemble American Willys Jeeps in India. The collaborationbetween M&M and its original partner Kaiser Jeep Corporationand later American Motor Corporation is for the phasedmanufacture of C J3 B J eep. The company is named Mahindraand Mohammed.But after Independence Ghulam Mohammed migrates toPakistan. With his departure Mahindra & Mohammed isrenamed by Mahindra & Mahindra in 13January 1948. The firstvehicles are assembled in Mazaogaon in Bombay.The first M&M built Willys Overland Jeep rolled out of theMazaogaon plant on 3 June 1949. Five years later, in 1954, thefirst completely indigenous Jeep rolled out of the factory floor.At one point 70 per cent of the sales were assured by army andgovernment.Vehicle model Year of launchingMahindra MM 340 1985Commander 1991Mahindra Armada 1993Voyager van 1996Escort (M&M-ford) 1996


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Bolero 1996Scorpio 2002Scorpio launched in 2002, a completely indigenous productthat took Mahindra & Mahindra6 long years to design and develop. The Scorpio has played acritical role in changing theperception and brand image of the country. The 2.6 litre turbo-diesel engine developed109bhp. The Scorpio has been the vehicle of M&Ms change,from a utility vehicle-maker toa lifestyle SUV manufacturer.It began with the promise of being the Peoples Car. The car

never went into production and the company went belly-up in1977. Six years later, it rose like a phoenix from the ashes andchanged the Indian automotive sector forever. The company Maruti Udyog Limited. The story of Maruti dates back to the1970s. Indira Gandhi was the prime minister of India. Her son,Sanjay Gandhi, envisioned the manufactured of an indigenouscost-effective, low-maintenance compact car for the Indianmiddle-class. The Cabinet passed a unanimous resolution for the development and production of a Peoples Car. The nameof the car was chosen as Maruti.The Car that changed India:The Maruti 8 00 was essentially a Suzu k i SS8 0 , which wascalled the Fronte in Japan and A / tom most of the other markets. The 796cc, in-line, three-cylinder power plantproduced 39.5bhp at 5500 rpm.Maruti marked the beginning of a revolution in the Indianautomobile industry. The Maruti 800, with its compact size,nimble handling and perky engine, offered the Indian motorist acheaper, friendlier alternative. On l4LhDecember 1983, HarpalSingh becameMarutis first customer as he received the keys of his Maruti800 car from Prime Minister Indira Gandhi. The car costRs.48,000. The new Maruti, launched in June 1986, cost


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approximately Rs 15,000 more than the outgoing model.The new Maruti:In 2005, Maruti launched the Swift, for the first time in its 20-year history. The Swift signaled the importance of the Indianmarket in the world. A team of engineers from Maruti workedon the design of the Swift in Hamamatsu, Suzukisheadquarters in Japan.Model Year of launchingMaruti 800 1983Maruti Omni 1984Maruti Gypsy 1985Maruti 1000 1990

Maruti Zen 1993Maruti Esteem 1994Maruti Baleno 1999MarutiWagon R 1999Maruti Alto 2000Maruti Versa 2001Maruti Swift 2005Maruti Zen Estilo 2006Maruti 5X4 2007Maruti Suzuki Grand Vitara 2007The other cars which have their share in the Indian AutoMobile industryare:The Indian auto industry has exploded in the last 14 years. Andcar markers are learning some very hard truths. While theeconomic reforms process was kicked of finance.1991, it was only in 1993 that the automobile industry wasfinally delicensed and the restrictions were removed.Between 1993 and 9 5 , government regulations limited a foreigncompanys stake to a maximum of 51 percent of the equity.Hence the only method of entry for an MNC then was through ajoint venture with a local partner. The most preferred partner was an existing automaker. In 1994-95 saw the announcement


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of quite a few JVs.Premier and Peugeot to form PAL-Peugeot.GM and CK Birla to form GM India.Mercedes-Benz and Tata Motors.M&M and Ford to form Mahindra-Ford India.In 1995, the government announced its decision to allowforeign auto companies to enter with a 100% stake or wholly-owned subsidiaries. This changed the dynamics of jointventures in India.The other automobile industries which play a crucial role in theIndian automobile industry are:Daewoo Motors India.

General Motors IndiaMercedes-BenzHyundai MotorsHonda SIELToyotaSkoda India


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FORD PRODUCTS

FORD IKON

SPECIFICATIONS

Engine Ikon 1 .3 Rocam

Ikon 1 .4DuraTorq

TDCi

Type 4-In-line 4 in-Line

Fuel System SEFI TDCicommon rail

Displacement(cc) 1297 1399

CompressionRatio 10.2 : 1 18.0 : 1

Max. Power (ps/rpm) 70PS/5500 68PS/4000

Max. Torque 105/2500 160/2000


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(nm/rpm)

Emission Stage Bharat stageIIIBharat stage

III

Transmissiontype

5 Speedmanual

5 Speedmanual

FORD ENDEAVOUR

Engine Endeavour 3. 0L 4x4

Endeavour 2 .5 L 4x2

Type

3.0 LitreTDCi withVariable

GeometryTurbocharger

(VGT)

2.5 LitreTDCi withVariable

GeometryTurbocharger

(VGT)Displacement(cc) 2953 2499

Max. Power (ps/rpm)

156 PS (115Kw) @

143 PS (105Kw) @


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3200rpm 3500rpm

Max. Torque(nm/rpm)

380 Nm (38.7kgm) @

2500rpm

330 Nm (33.7kgm) @

1800rpmValve DOHC, 16Valves

DOHC, 16Valves

Fuel SystemDirect

injectioncommon rail

Directinjection

common rail

Transmission Endeavour 3. 0L 4x4

Endeavour

2 .5 L 4x2

Transmission 5 speedAutomatic5 speedmanual

4x4 Transfer Electric Shifton Fly N/A

FORD FIESTA


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SUSPENSION

1 .6 Duratec

Exi

Fiesta 1 .6 Duratec

ExiLimited

1 .6 Duratec

Zxi

1 .6 Duratec

Sxi

Front

Independent

McPherson struts

with offsetcoil spring/ twin tube

gasdamper units &

lower L-arms withoptimised

bushesmounted

onseperate

cross-member

withstabiliser bar. Dual-path bodymounts.

Independent

McPherson struts


gasdamper units &


bushesmounted

onseperate

cross-member


Independent

McPherson struts


gasdamper units &


bushesmounted

onseperate

cross-member


Independent

McPherson struts


gasdamper units &


bushesmounted

onseperate

cross-member


Rear

Semi-independent heavy

duty twist-beam with








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lowpackage

height coilsprings &seperatetwin tubedampers.Dual-path

bodymounts.

lowpackage


bodymounts.

lowpackage


bodymounts.

lowpackage


bodymounts.

Shockabsorbers(Front &Rear)

Gas Filled Gas Filled Gas Filled Gas Filled

BRAKES 1 .6 Duratec

Exi

Fiesta1 .6

DuratecExi

Limited

1 .6 Duratec

Zxi

1 .6 Duratec

Sxi

Front VentilatedDiscsVentilated

DiscsVentilated

DiscsVentilated

Discs

Rear Self

AdjustingDrums

Self Adjusting

Drums

Self Adjusting

Drums

Self Adjusting

Drums


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FORD FIGO

ENGINE 1 .2DuratecPetrol

LXI

1 .2DuratecPetrol

EXI

1 .2DuratecPetrol

ZXI

1 .2DuratecPetrol

Titanium

Displacement(cc) 1196 1196 1196 1196

Type 16VDOHC16V

DOHC16V

DOHC16V

DOHC

Fuel system SEFI SEFI SEFI SEFIMax. power (ps(kw)/rpm)

71 (52.4)@ 6,250

71 (52.4)@ 6,250

71 (52.4)@ 6,250

71 (52.4)@ 6,250

Max. torque(nm(kg-

102(10.4)@ 4,000

102(10.4)@ 4,000

102(10.4)@ 4,000

102(10.4)@ 4,000


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m)/rpm)

SUSPENSION

1 .2Duratec

Petrol LXI

1 .2Duratec

Petrol EXI

1 .2Duratec

Petrol ZXI

1 .2Duratec

PetrolTitanium

Front

Independent

McPherson strut withdual pathmounts

Independent


Independent


Independent


Rear

Semi-Independe

nt twistbeam, Coil

springs

Semi-Independe

nt twistbeam, Coil

springs

Semi-Independe

nt twistbeam, Coil

springs

Semi-Independe

nt twistbeam, Coil

springs

SteeringHydraulic

power

assisted

Hydraulicpower

assisted

Hydraulicpower

assisted

Hydraulicpower

assistedBRAKES 1 .2

DuratecPetrol

LXI

1 .2DuratecPetrol

EXI

1 .2DuratecPetrol

ZXI

1 .2DuratecPetrol

Titanium

Front VentilatedDiscVentilated

DiscVentilated

DiscVentilated

Disc

Rear Drum Drum Drum Drum


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CONCLUSION

FORD HAS PROVIDES A WIDE RANGE OF CARS IN THEINDIAN MARKETS AS MENTIONED ABOVE, IT HASTARGETTED THE INDIAN MARKET WITH A PURCHASINGPOWER OF APPROX . 4 .75 LAKHS . CONSIDERING THE INDIAN MARKET TYPE WHERETHE CONSUMERS CAN BE SUB- DIVIDED IN VARIOUSCATEGORIES DEPENDING ON THEIR INCOME BRACKETSSTARTING ROM APPROX 1 LAKH TO ANY AMOUNT . BUT

THE CONSUMERS ARE MAINLY CONCENTRATED IN THE2 .75 TO 20 LAKHS BRACKET WHICH HAS BEEN PAID ASERIOUS AMOUNT OF ATTENTION BY THE FORDMARKETING TEAM THUS, FOCUSING ON THECUSTOMERS DESIRED WANTS ANDRELATED PRODUCTS IN THE INDIAN MARKETSCENARIO .


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STP Segmentation, Targeting, Positioning

Segmentation

The main reason why we have Segmentation is because wehave so many types of customers.

The reason why Segmentation has become important inteaching and learning about marketing is because thesegroups of different customers have:

1. become more numerous, we have many more types of segments

2. The differences among groups have become more distinct3. The groups have become large in number

Criteria for Segmentation - things you have to think about in order to decide if a potentialgroup is worthwhile being considered a "segment"

1 . Homogenous- are the people in the proposed segment all similar without toomany differences- you could say right handed people is a segment, but.... if half the right handed people were women, and half were men, thenthis might not work if the gender also was an issue.


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2 . Heterogeneous - the people between the segments should be very different- right handed and left handed might not be worthwhile if you aretalking about a market segment for a product like pull-on boots

3. Substantial - the people in the segment should be large enough in number tobe worthwhile- right handed men might be a large enough segment- right handed men, who wear glasses, and speak Spanish andright motorcycles might be too small- the group has to be large enough to "generate sufficient sales

volume at a low enough cost to result in a profit " says Sommers10th Ed.

4 . Competition Sommers 10th Ed. suggests that a company should targetsegments "where the number of competitors and their size aresuch that the firm is able to compete effectively"example

- some people buy trucks, some SUVs and some cars and somemini-vans- some companies have a product segment devoted to truckbuyers, like Ford- car companies, like Nissan and Toyota might be advised toavoid selling trucks in North America because the competition isintense and they might not make a profit.

5. Resources

Sommers 10th Ed. suggests that a company should make surethe segment relates to the resources of the company. If thecompany can mfg. variations to fit its key demographics, great,but it should not take on additional demographics if it does nothave the capabilityexample


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- a lingerie company taking on plus sizes - which would meanreconfiguring the fabric pattern cut-out which would effect fabriccost, waste amounts, etc.

Targeting

Ford Motor Company President and CEO Alan Mulallyrevealed the much-anticipated new car to be produced inIndia. Called the new Ford Figo, the car was unveiled at apress event in Delhi as a major addition to the Ford Indiabrand portfolio.y Mulallys visit underscores the strategic importance of

India in Fords future plans. He stated the new Ford Figo isdesigned and engineered to compete in the heart of thedomestic India car market.

y The new Ford Figo will be manufactured at Fordsexpanded integrated manufacturing facility near Chennai,which is undergoing a $500 million transformation tobecome a regional centre of excellence for Ford small car production.

y

The importance of Ford Figo extends beyond Indiasborders. Fords investment in its Chennai plant gears it for eco-friendly volume production and positions Ford India tobecome a major export producer.

DELHI, India, Sept. 23, 2009 Indias role as an importantplayer in the future of Ford Motor Companys internationalstrategy was underscored today when the companys Presidentand CEO, Alan Mulally, unveiled an all-new car targeting theheart of the Indian car market the new Ford Figo.

The Ford Figo, a new nameplate and a fresh face on the Indianmarket, signals Fords intention to compete in Indias largestand most important small car market segment.


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Ford Figo is the result of a significant Ford investmentcommitment to expand its plant near Chennai for volumeproduction as a small-car centre of excellence regionally.Fords $500 million investment has doubled the plantsproduction capacity to 200,000 units per year and introducesmajor advances in high-quality automation and innovative, eco-friendly production techniques.

Our exciting new Ford Figo shows how serious we are aboutIndia, Mulally said. It reflects our commitment to compete withgreat products in all segments of this car market. We areconfident the Ford Figo will be a product that Indian consumers

really want and value.Ford Figo is designed and engineered to compete in Indiassmall car segment, which accounts for more than 70 percent of the new vehicle market. It leverages Fords small-car platformarchitecture, sharing underlying technology with the FordFiesta, already familiar to Indian drivers.


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Positioning

Ford unveiled its 2010 product lineup, which includes the returnof the Taurus sedan, a restyled Ford Flex crossover with itspatented EcoBoost engine, a high-performance version of itspopular F-150 pickup truck, and restyled Lincoln MKS and MKTvehicles., Detroit-based automotive industry analyst Peter DeLorenzowrote about Fords unveiling of its product mix to a group of

automotive journalists.It became quickly apparent to everyone that this company ismore than just on the move, they are aggressively boostingtheir presence in the market with an array of impressiveproducts that will transform the company, DeLorenzo wrote.Over the next 18 months, Ford will have the freshest, mostcontemporary lineup in the business and the newest fleet of vehicles in terms of age on the road.

That product lineup is going to pay off big-time for Ford,DeLorenzo wrote.

They also have scaled back manufacturing operations to alignsupply with demand and have taken steps to create a globalmanufacturing platform that will allow the company to usecommon technology and suppliers for vehicle offeringsworldwide.

Ford reported that it had a profit of $2.3 billion in the secondquarter, compared with a loss of $8.7 billion a year earlier.

Revenue for the period declined 40 percent, to $27.2 billionfrom $41.1 billion a year earlier.


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Ford and its competitors must aim at a moving target in tryingto figure out what will sell. Consumer demands shiftcontinuously, depending on the state of the economy andchanges in fuel prices.

The days of selling 400,000 or 500,000 units of any vehicle,except maybe the F-150, are over, Hinrichs said. Now weneed to figure out how to make the same money selling lower volumes. The best way to do that is to go after a number of smaller niches.Fords in a pretty good position, both from a productstandpoint and a reputation standpoint,


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SWOT ANALYSIS

Strengths

-4th on the Fortune 500 List (U.S. only)-4th on the Global 500 List

-39th on the Best Companies for Minorities List-One of worlds best known brands-Their Web strategy has cut car build costs by as much as$380 per car -Have already invested heavily in alternate fuel sources-Ford are seen as supportive eg

- Gave Generously after the September 11 Attacks- Give Generously to Help Fight Breast Cancer - Support Racing Teams, NASCAR, Formula One Etc

Weaknesses

-Firestone Tire recalls caused Stock Price to Suffer--$14.70,LowestIn Years-CEO Jacques Nasser and Chairman Bill Ford Jr. could not getalongLeading to Bill Ford taking over as CEO-Cash Reserves Have Sunk to $4.1 Billion


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-$13 Billion on Acquisitions-$3.5 Billion to Cover Tire Recalls-Sometimes seen as "safe", "boring"

Opportunities

-Have a chance to become more environmentally friendly withcleaner engine emissions and by working with environmental groups tohelp

clean the environment-Ford have already started investing in Solar Power ,and havea chanceto become a market leader -They can use their Web strategy to cut costs further -They can take advantage of their perceived generosity bygiving tomore charities and using the fact in their targeted advertising.

Threats

-Competition is huge.-Internal strife will hurt the company.-Threat of substitute products such as Natural gas, Electricity,Ethanol, Vegetable oil, Sunlight, Water -Intensity of Rivalry among competitors worldwide-Worldwide markets threatened due to the "War on Terrorism"


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MARKETING STRATEGY OF FORD

A marketing strategy is a process that can allow anorganization to concentrate its limited resources on thegreatest opportunities to increase sales and achieve asustainable competitive advantage.Any organization that wants to exchange its products or services in the market place successfully should have aStrategic Marketing plan to guide the allocation of itsresources. A strategic marketing plan usually evolves from an

organizations overall corporate strategy and serves as a guidefor specific marketing programs and policies. Marketingstrategy is based on a situation analysis- a detailedassessment of the current marketing conditions facing thecompany, its product lines, or its individual brands. From thissituation analysis, a firm develops an understanding of themarket and the various opportunities it oilers, the competitionand the market segments or target markets the companywishes 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 whatthe firm wants to achieve; the marketing strategy provides thedesign for achieving them.For example, if the marketing objectives of a business unitstipulate 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 andwherefrom this sale and profit will come, which productlines/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 integralcomponent of corporate strategy, defining how the organization


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will successfully engage customers, prospects, and competitorsin the market arena. It is partially derived from broader corporate strategies, corporate missions, and corporate goals.As the customer constitutes the source of a companysrevenue, marketing strategy is closely linked with sales. A keycomponent of marketing strategy is often to keep marketing inline with a companys overarching mission statement.


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PROCESS MARKETING AND PROMOTIONS MODEL:

Development of marketing program requires an in-depthanalysis of the market. This analysis may make extensive useof market research as an input into the planning process.

Marketing Strategy and Target marketing Market planninganalysis process program development target market

1. Identifying markets

2.Market segmentation3. Target marketing4. Positioning through marketing strategies5. Pricing decisions6.distributi on promotionto final This input, in mm, provides the basis for thedevelopment of marketing strategies in regard to product,pricing, distribution and promotion decisions. Each of thesesteps requires a detailed analysis, since this plan serves as theroad map to follow in achieving marketing goals. Once thedetailed market analysis has been completed and marketingobjectives have been established, each element in the marketmix must contribute to a comprehensive integrated marketingprogram. Of course, the promotional program element must becombined with all other program elements in such a way as toachieve maximum impact.7. Product Opportunity8.Competitive analysis9.Target marketing10. Buyer 11. Ultimate consumer 12.Consumers Businesses13. Channel


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14. Promotional decisions15.Advertising16.Direct marketing17.Interactive marketing18.Sales promotion19.Public relations20.Personal Purchase21.Promotion to trade Resellers

Formulating the marketing strategy:

Basically, formulation of marketing strategy consists of threemain 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 firmfor a given product or brand can be grasped from the targetmarket chosen, the way it is positioned and how the marketingmix is organized. The target market shows to whom the unitintends to sell the products; positioning and marketing mixtogether show how and using what uniqueness or distinction,the unit intends to sell. The three together constitute themarketing strategy platform of the given product.

SELECTING THE TARGET MARKET:

To say that target market selection is a part of marketingstrategy development is just stating the obvious. It does notfully bring out the import of the inseparable linkage between thetwo. When the selection of the target market is over, animportant part of the marketing strategy of the product isdetermined, defined and expressed.Marketing targeting simply means choosing ones target


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market. It needs to be clarified at the outset that markettargeting is not synonymous with market segmentation.Segmentation is actually tee prelude to target market selection.One has to carry out several tasks besides segmentationbefore choosing the target market.Through segmentation, a firm divides the market into manysegments. But all these segments need not form its targetmarket. Target market signifies only those segments that itwants to adopt as its market. A selection is thus involved in it.Marketing segmentation is a process that throws up not onebut several market segments. There may be segments that aresizeable 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 besegments that show great potential, but display tough barriersto entry. As such, the question, which segment/segments, thefirm should select as its target market, assumes crucialimportance.

STRATEGIC MARKET SEGMENTATION:

Market Segmentation is dividing up a market into distinctgroups that (1) have common needs and (2) will respondsimilarly to a marketing action, which was said by Eric N Ber k owitz, 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 theproducts offered available to the organization.1.Developing a market-product grid to relate the marketsegments to the firms products or actions.2.Selecting the target segments toward which the firm directsits marketing actions.3.Taking marketing actions to reach target segments.Markets can be segmented using several relevant bases. For


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example, demographic characteristics of consumers, such asage, sex, income/purchasing capacity, education level etc, formone base for segmentation. Geographic characteristicsconstitute another; and buying behavior of the consumersforms yet another base.The various types of segmentations are Geographic segmentation Demographic segmentation Psychographic segmentation Buyer behavior Benefits segmentation Volume of purchase segmentationPositioning is a platform for the brand. It facilitates the brand toget 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 away as to set it meaningfully apart from competition.Positioning is the act of fixing the locus of the product offer inthe minds of the target consumers. In positioning, the firmdecides how and around what parameters, the product offer has to be placed before the target consumers. The significanceof product positioning can be easily understood from DavidOgilvys words: The results of your campaign depends less onhow we write your advertising than on how your product ispositioned.


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Definitions of product positioning:

Sengupta, in his book B r an d Pos i t i o ning s ay s , The aim of product positioning is to create a perception for our brand in theprospects mind so that it stands apart from competingbrands... we must cover that space in the consumers mind asif we had won a long-term lease. We must find a strong positionin that mind and sit on it....Michael Rothschild, in his book M a rket ing Commu nica t i o n s From Fu n d a me n t al s to S tr a te gi es s ay s , Positioningrefers to the place a brand occupies in the mind in relation to a

given product class. This place was originally a product-relatedconcept.... Concerning market structure. The concept nowrefers to the place that the brand holds in the consumers mindrelated to perceptions and preferences.

Developing a Positioning Strategy:

To create a position for a product or service, T rout and Riessuggest that managers ask them selves six basic questions.1. What position, if any, do we already have in the prospectsmind?2. What position do we want to own?3. What companies must be outgunned if we are to establishthat position?4. Do we have enough marketing money to occupy and holdthe position?5 . Do we have the guts to stick with one consistent positioningstrategy?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 productspositioning and brand positioning. Though in discussions, thetwo 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 tocompete. And brand positioning denotes the positioning of thebrand viz-a viz the competing brands in the chosen productcategory.

It is evident that for any product, before entering the market ithas to sequentially carry out the two exercises, productpositioning and brand positioning. In the first step, the productcategory 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 toserve that matters. This choice of product category will decidethe nature of the competition the product is going to face. Onceproduct category positioning is decided, the position for thenew entrant against competing brands in the chosen productcategory has to be analyzed and fixed.

ISSUES IN PRODUCT POSITIONING:

Where is the new offer going to compete?- 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 sameneed?-Where is the real gap, where is such a new offer mostwelcome and wanted by the market?-What are companys competencies to fight here?


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ISSUES IN BRAND POSITIONING:

In deciding the Brand positioning, the issues are:- Which are the competing brands in the chosen productcategory?What are the unique claims/strengths of the various brands?- What position do they enjoy in consumers evaluation andperception? What is the most favoured position...? And yetvacant?- Can the new brand claim the needed distinction and take theposition and satisfy the need?

The major dimension of marketing strategy relates topositioning of the offer. The firm has already selected the targetmarket and decided its basic offer. Now, what is theconjunction between these two entities? How do they getconnected? What is the interface? In other words.What is the locus the firm seeks among the customers in thechosen target market with its offering?How would the firm want the consumer to view and receive theoffer?These are the issues the firm has to grapple with in positioning.And, while formulating the marketing mix too, the firm willagitate over these issues. The ProductDifferentiation and Positioning discusses the multifariousissues involved in the subject.


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PRODUCT REPOSITIONING:

Products do undergo repositioning as they go along their lifecycle. In some cases, even products that are fairing well arerepositioned. This is done mainly to enlarge the reach of theproduct offer and to increase the sale of the product byappealing to a wider targetmarket. The product is provided with some new features or it isassociated 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 andpersuasion in order to sell goods and services or promote anidea. While implicit communication occurs through the variouselements of the marketing mix, most of an organizationscommunications with the market The basic tools used toAccomplish an organizations communication objectives areoften referred to as theP romotional m ix. The promotional mixAdvertise in Direct Interactive Sales Publicity/ marketingpromotion Public internet facilitiesAdvertising:

Personal sellingAdvertising is defined as any paid form of non personalcommunication about an organization, product, service, or ideaby an identified sponsor. The paid aspect of this definitionreflects the fact that the space or time for an advertisingmessage generally must be bought. An occasional exception to


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this is the public service announcement, whose advertisingspace or time is donated by the media.Advertising is the best-known and most widely discussed formof promotion, probably because of its pervasiveness. It is alsovery 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 largeaudiences. It can be used to create brand images and symbolicappeals 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 directlywith target customers to generate a response and atransaction. It has become such an integral part of the IMCprogram of many organizations and often involves separateobjectives, budgets, and strategies, we view direct marketingas 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 databasemanagement, direct selling, telemarketing and direct responseads through direct mail, the Internet, and various broadcast andprint media.One of the major tools of direct marketing is direct responseadvertising, whereby a product is promoted through an adthat encourages the consumer to purchase directly from themanufacturer.Interactive/Internet Marketing:Interactive media allow for the back-and-forth flow of information whereby users can participate in and modify theform and content of the information they receive in real time.Unlike traditional forms of marketing communications such asadvertising, which are one-way in nature, the new media allowusers to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions


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and of course make purchases. In addition to the Internet,other forms of interactive media include CD ROMs, Kiosks, andinteractive television.Sales Promotion:The next variable in the promotional mix is sales promotion,which is generally defined as those marketing activities thatprovide extra value or incentives to the sales force, thedistributors, or the ultimate consumer and can stimulateimmediate sales, sales promotion is generally broken into twomajor categories:Consumer-oriented andTrade-oriented activities

Consumer-oriented sales promotion is targeted to the ultimateuser 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 towardsmarketing intermediaries such as wholesalers, distributors andretailers.Publicity/Public Relations:Publicity refers to non personal communications regarding anorganization, 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 organizationand its products and services. Like advertising, publicity is notdirectly paid for by the company.An advantage of publicity over other forms of promotion is itscredibility. Another advantage of publicity is its low cost, sincethe company is not paying its time or space in a mass mediumsuch as TV, radio or newspapers.Public relations are defined as the management functionwhich evaluates public attitudes, identifies the policies andprocedures of an individual or organization with the publicinterests and executes a program of action to earn publicunderstanding and acceptance. Public relations generally


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have a broader objective than publicity, as its purpose is toestablish and maintain a positive image of the company amongits various publics.Personal Selling:It is a form of person-to-person communication in which a seller attempts to assist and persuade prospective buyers topurchase the companys product or service or to act on anidea. Unlike advertising, personal selling involves direct contactbetween buyer and seller, either face-to-face or through someform of telecommunications such as telephone sales. Personalselling involves more immediate and precise feedback becausethe impact of the sales presentation can generally be assessed

from the customers reactions.Assembling the marketing mix means assembling the four Psof marketing in the best possible combination. Involved in thisprocess are the choice of the appropriate marketing activitiesand the allocation of the appropriate marketing effort/resourcesto each one of them. The firm has to find out how it cangenerate the targeted sales and profit. It considers differentmarketing mixes with varying levels of expenditure on eachmarketing activity and tries to figure out the effectiveness of different combinations in terms of the possible sales andprofits. 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 themarketing mix and environmental variable, and since the latter and non-controllable, marketing becomes synonymous withassembling and managing the marketing mix. Of course, whileassembling the marketing mix, the marketing manager will takedue note of the environmental variables.Not only will he take due note of them, he will ensure that hismarketing mix suits the environmental variables. And, itsfactors that renders that task much more complex.MARKEGING MIX: THE SOLE VEHICLE FOR CREATINGAND DELIVERING CONSUMER VALUE


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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 anddelivering customer value.It can be easily seen that all activities and programmes, whicha marketer designs and caries out in his effort at winningcustomers, relate to one or the other of the above four elements- product, place, promotion and pricing. It can also beseen that in each of these elements, there are several sub-elements. For example, packaging is one of the sub-elementsof product and warehousing is one of the sub-elements of distribution.

The Four Ps of Marketing:It was James Culliton, a noted marketing expert, who coinedthe expression marketing mix and described the marketingmanager as a mixer of ingredients. To quote him, Themarketing man is a decider and an artist a mixer of ingredients, who sometimes follows a recipe, developed byothers and sometimes prepares his own recipe. And,sometimes he adapts his recipe to the ingredients that arereadily available and sometimes invents some new ingredients,or, experiments with ingredients as no one else has triedbefore.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 thefour Ps. He classified the marketing mix variables under four heads, each beginning with the alphabet P. Product Place Price PromotionMcCarthyhas provided an easy-to-remember description of themarketing mix variables. Over the years, the terms


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Marketing mix and Four Ps of marketing have come to be usedsynonymously.Assembling and managing the marketing mix is the crux of themarketing task. And, it is through the marketing mix that themarketing manager achieves the marketing objectives.MARKETING STRATEGIES FALL UNDER TWOCATEGORIES:We have seen that target market selection, positioning andmarketing mix formulation together constitute marketingstrategy. We have also seen that a firm can assemble themarketing mix elements in many different ways, depending onthe relative weightage 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 stayahead of competition. However, a close scrutiny will reveal thatall these strategies can be fitted into two broad categories1. PRICE ORIENTED MARKETING STRATEGY2. DIFFERENTIATION ORIENTED MARKETING STRATEGYIn other words; there are only two broad routes available for forging marketing strategies: any strategy has to be ultimatelyeither a price-oriented strategy or a differentiation-orientedstrategy.Firms taking to the price route in marketing strategy competeon the strength of pricing. They use price as their competitivelever. They juggle the price of their product to suit theprevailing competitive reality. They can afford to offer lower prices and still makethe targeted profits, they elbow out competition with thecushion 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 intheir operations. It should be enjoying an overall costleadership in the given industry and its lower cost shouldenable it to secure above average returns in spite of strong


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competition. The cost advantage can emanate from differentfactors like, scale economies, early entry, a large market sharebuilt over a period of time, locational advantage, or synergyamong the different businesses. The firms whole strategy, infact will revolve around building such cost advantage.To successfully practice a price-led strategy, a firm should haveconsciously taken to the idea sufficiently early in itsevolutionary process and prepared itself for adopting such astrategy.The differentiation route of strategy revolves around aspectsother than price. It works on the principle that a firm can makeits offer distinctive from all competing offers and win through

the distinctiveness. And, a firm adopting such route can priceits 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 theproduct. While all the 4Ps of marketing are important elementsfrom the point of view of strategy, the other Ps normally go aselaborations of the offer, while the product forms its core.Product differentiation is of vital importance in productmanagement and has great potential in forgoing successfulmarketing 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 areDifferentiation based on ingredients,Differentiation based on functional value,Differentiation based on additional features,Packaging contributing to differentiation,n Differentiation based on Quality, Operational Efficiency,Technology, and Service.Digital Marketing is the practice of promoting products andservices using digital distribution channels to reach consumersin a timely, relevant, personal and cost-effective manner.


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Whilst digital marketing does include many of the techniquesand practices contained within the category of InternetMarketing, it extends beyond this by including other channelswith which to reach people that do not require the use of TheInternet. As a result of this non-reliance on the Internet, thefield of digital marketing includes a whole host of elementssuch as mobile phones, sms/mms, display / banner ads anddigital outdoor.Word of mouth, is a reference to the passing of information byverbal means, especially recommendations, but also generalinformation, in an informal, person-to-person manner. Word of mouth is typically considered a face-to-face spoken

communication, although phone conversations, text messagessent via SMS and web dialogue, such as online profile pages,blog posts, message board threads, instant messages andemails are often now included in the definition of word of mouth. There is some overlap in meaning betweenword of mouth and the following: rumor, gossip, innuendo, andhearsay; however word of mouth is more commonly used todescribe positive information being spread rather thannegative, although this is not always the case.Word-of-mouth promotion, also known as buzz marketing andviral advertising, is highly valued by advertisers. It is believedthat this form of communication has valuable source credibility.Research points to individuals being more inclined to believeWOMM than more formal forms of promotion methods; thereceiver of word-of-mouth referrals tends to believe that thecommunicator is speaking honestly and is unlikely to have anulterior motive (i.e. they are not receiving an incentive for their referrals). In order toPromote and manage word-of mouth communications,marketers use publicity techniques as well as viral marketingmethods to achieve desired behavioral response. Influencer marketing is increasingly used to seed WOMM by targeting keyindividuals that have authority and a high number of personal


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connections.It is an advanced form of word of mouth marketing (WOMM) inwhich companies develop customers who believe so strongly ina particular product or service that they freely try to convinceothers to buy and use it. The customers become voluntaryadvocates, actively spreading the word on behalf of thecompany.Evangelism literally comes from the three words of bringinggood news and the marketing term justly draws from thereligious sense, as consumers are literally driven by their beliefs in a product or service, which they preach in an attemptto convert others.

Sales promotion consists of diverse collection of incentive toolsmostly 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 intransacting a sale.Price-off offers refers to offering the product at lower than thenormal price. This encourages immediate sales, attracts non-users, induces product trail and counters competition.Premium refers to the offer of an article of merchandise as anincentive in or to sell the product.


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CONCLUSION

Although Ford Motor Company is one of the largest companiesin the world, we can still attribute accounting trends to some of the key events in Ford's history. In 1990, Ford acquired Jaguar Cars, Ltd. Jaguar was a company suffering terrible loses due topoor quality, and lack of sales. Jaguar has been in theblack since Ford purchased them until 1994. It is important tonote that Ford's net income trend from 1991 to 1995 illustratesthis. In 1992, the Ford Taurus became the number one selling

car in the United States, which helped increase1992 net earnings, and in 1994 the Ford Falcon was the topselling car in Australia, helping maintain the trend of increasingnet income. It is important to note that Ford's net income hasincreased from 1991 to 1994, and thendecreased in 1995. There are several possible causes for thischange in the trend. In 1995, Ford acquired 20% equity in amajor Chinese truck manufacturer, and launched several newvehicles; including the Ford Contour, Ford Mondeo,Mercury Mystique, Ford F-150, and Ford Taurus. Theseadditional investments and expenses help explain the decreasein net income in 1995. Overall, the company has done well,and with reorganization in 1996 to decrease spending andincrease efficiency, Ford is striving for future periods of growth.


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RECOMENDATIONS

We found that promotion greatly affect the market, so in my

opinion company should promote its product regularly by

making new and people attracting promotional strategies to

increase its sale.

As well as there should be a careful allotment of funds in thecurrent recession scenario as the risk element tends to be veryhigh.

Take over aspects aspects should not be considered as it willlead to a very high potential tax liability.


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BIBLIOGRAPHY

y WWW.GOOGLE.COMy WWW.WIKIPEDIA.COM y WWW.FORD.COMy WWW.ASKNOW.COMy NEWSPAPERS: HINDUSTAN TIMES,

TIMES OF INDIAy WORD OF MOUTH INFORMATIONy BOOKS: HENRY FORD A LEGEND, MASS

PRODUCTION AND FORD MOTORSy MAGAZINES: OVERDRIVEy PERIODICALS: STONE AGE RACINGy THE SHELBY 530

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