A Project Report ON
“Marketing Strategies Of Ford Motors” SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF
Dr. Amit Gupta Project Co-ordinator SUBMITTED BY:
VIPUL Batch BBA III (A) Enrollment No
STUDENT UNDERTAKING This is to certify that I have completed the Project titled “ Marketing Strategies of Ford Motors ” in Maharaja Agrasen Institute of Management Studies under
the guidance of Dr. Amit Gupta in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.
VIPUL
BBA-3(A) Enrollment no.
CERTIFICATE This is to certify that the project titled “ Marketing Strategies of Ford Motors ” is an academic work done by Vipul subm submit itte tedd in the the part partia iall fulf fulfil illm lmen entt of the the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him in the project has not been submitted earlier.
Dr. Amit Gupta PROJECT CO-ORDINATOR
Acknowledgement
I would like to thank my Project Guide Dr. Amit Gupta for his immense guidance, valuable help and the opportunity provided to me to complete the project under her guidance. I would like to thank all faculty members of Maharaja Agrasen Institute of Management Studies for guiding and supporting me in the completion of project from time to time. Last but not the least, my gratitude to great almighty and my parents without whose concerned and devoted support the project would not have been the way it is today.
Vipul BBA-3(A) Enrollment no.
INTRODUCTION
INTRODUCTION TO THE TOPIC
society is warm warm with urbanization urbanization and and demonstration demonstration effect. With a view view Today’s society towards it, there are drastic changes coming up in all sectors even in the automobile
industries. The following information information gives an insight about about it. In the present context the companies operate on the principle of natural selection – “Survival Of The The Fittest”. Only those companies companies will succeed succeed which which at best match to the current environmental imperatives – those who can deliver what people are ready to buy. But real marketing does not involve the art of selling what the manufacturers make. Organizations gain market leadership by understanding consumer needs and finding solutions that delight consumers. consumers. If customer value and satisfaction satisfaction are absent, no amount of promotion or selling can can be compensate. compensate. Hence the aim of marketing 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. goals. To maximize the profits and longterm plans plans every organization has to follow a strategic planning. Marketing is much more than just an isolated business function – it is a philosophy that guides the entire organization towards sensing, serving and satisfying consumer needs. The marketing department cannot accomplish the company’s customer relationship-building goals by itself. It must partner closely with other departments in the company company and with other organization throughout its entire value – delivery network to provide superior customer
value and satisfaction. Thus marketing marketing calls upon everyone in the organization organization to “think customer” and to do all they can to help build and manage profitable customer relationship. relationship. Marketing is all around us, and we need to know that it is not only used by manufacturing companies, wholesaler wholesaler and retailers, r etailers, 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 .
What marketing is what it does and what it offers ?
“Marketing is a social and managerial process whereby individual and groups obtain what they need and want through creating and exchanging products and value with others.” “Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.” “Marketing offers some combination of products, services, information, or experiences offered to a market to satisfy a need or want” Marketing is an orderly and insightful process for thinking about and planning for markets. The process starts with researching researching the market place to understand understand its dynamics. The marketer uses research methodologies to identify opportunities, that is, to find individuals all groups of people with unmeet needs or latent interest in some products or service. [3]
The marketing process consists of the following: 1. Analyzing marketing opportunities. 2. Developing marketing strategies. 3. Planning marketing programs 4. Managing the marketing efforts.
Before taking any decision and achieving the goals, it has to make analysis of what to do, how to do, when to do, where to do and who 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 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. formulation. Goals have a quality and time frame attached to them. These are typically spelt out in terms of financial return, market share, market
presence, etc. Thus, the concept of market oriented strategic planning arises with the link between the products the link between the products the manufacturer is dealing in and the market
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conditions.
In this direction, direction, our study study deals only with the the marketing strategies i.e.
promotional strategies of the Ford automotives.
OBJECTIVES
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OBJECTIVES OF THE STUDY Primary Objective:
To know the influence of various Marketing Strategies, Promotional Activities towards the customers of four wheelers(cars).
Secondary objective:
•
To know the effective factors for preferring 4 wheelers(CARS)
•
To know the factor of awareness of the cars.
•
To Study and analyze the Promotional Strategies of Ford
•
To know whether the customers are satisfied with the offers given by the dealer.
•
To know which kind of offers can attract the new customers.
•
To find the area to be improved
•
To find out satisfaction of the customers.
•
To find the reasons for the dissatisfaction [6]
•
To study the channel levels involved in the promotion of Ford
•
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.
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INTRODUCTION TO AUTOMOBILE INTRODUCTION IINDUSTRY
INTRODUCTION TO AUTOMOBILE INDUSTRY One of the fastest growing industries in the world is automobile industry. This
automobile industrieseven has its influence on the Indian market. Probably automobile industries occupy a large market share in the worlds market as well as in the Indian market. Nearly 18% of the total national income is being incurred from fr om the automobile industry. From this we can estimate how important is the automobile industry in the improvement of GDP of a country. In India automobile industry has a growth rate is at the average average of 1012%.
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INDIAN AUTOMOBILE INDUSTRY SINCE 1947:
Its fascinating drive through history, which begins as a story of isolation and missed missed opportunities to one of huge potential and phenomenal growth. India’s fixation with socialism and planned economies had a crippling impact on the automotive industry industry in its formative formative years. The goal at at that time for independent independent Indiawas Indiawas self-sufficiency. Issues like quality and and efficiency were simply simply not considered. considered. Dependence Dependence of foreign technology was banned and manufacturers were forced to localize their products; import substitution substitution became the order of the day. Though we learnt to localize, the cars we made were all outdated designs with little or not improvements for decades. The automotive industry stagnated stagnated under the government’s government’s stifling restrictions and the Indian car buyer was saddled with cars of appalling quality and even then there was a waiting list that at one point stretched to eight years! This attempt at self-reliance failed miserably because of the industry’s isolation from the best technology. technology.
The Japanese Japanese and later later Korean auto industries industries were also highly
protected in their formative years but they never never shut the door on technology. Instead, they relentlessly tapped the best talent pools in the world to absorb the know-how to produce good cars. One of the most important chapters in the Indian automotive industry’s history was written by Maruti. It marked the Indian government getting into the far business in the early 1980’s, a radical shift in thinking after decades decades of treating cars with disdain. The Maruti 800 went on to become the staple car car of Indiaand put a nation on wheels. This little car set a benchmark for price, size and quality and structured India as small car market. It wasn’t till 1993 that things really started to change change for the Indian car car buyer. With the liberalization of the economy, economy, a host of international carmakers rushed in. But most of them were in for a shock shock as Indian customers rejected rejected their product. product. Indian customers customers refused to allow the glitter of prestigious brands blind them to the outdated and overpriced products they were offered. The Indian consumer wanted wanted super value, and rewarded the brands that delivered it, handsomely. handsomely. Hyundai and Maruthi delivered, delivered, and profited. The period also saw the emergence of the Indian players like Tata Motors and Mahindra & Mahindra. They rose to the challenge challenge of the MNC’s and responded brilliantly with the Indica and the Scorpio. This was ironically due to the license raj that forced Indian Indian [9]
carmakers to be innovative innovative and develop develop products frugally. India’s frugal engineering engineering skill has now caught the world’s imagination, and an increasing number of carmakers are preparing to setup major capacities here. Indiais changing. And changing fast. It’s moving moving forward. India’s largest-selling car is not its cheapest cheapest car, car, the 800. It is the Alto. People’s aspirations aspirations are rising and so are are their mistakes, have have got their finger finger on the pulse of the market. Get the right product product and the rewards are handsome. The Indian auto industry is today bubbling bubbling with promise and confidence. confidence. It’s been a long journey but to see where the Indian car industry is going. We have to see where it has been. AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE :
The first motorcar on the streets of India was seen in 1898, Bombayhad it first taxicabs by the turn of the the century. In 1903, an an American company company began began a public taxi service with afleet of 50 cars. For about 50 years after car arrived in India, cars were directly imported. Before World War I, around around 40,000 motor vehicles vehicles were imported. imported. During the years between the wars, a small start for an automobile industry was made when assembly assembly plant were established in Bombay, Calcutta and Madras. The import/assembly of vehicles grew consistently after the 1920s, crossing 30,000 units by 1930. 1930. It was during the end of the war that that the importance importance of establishing establishing an indigenous automobile automobile in India was realized.
Premier Motors, Hindustan Motors Motors and
Mahindra & Mahindra set up factories in the 1940s for progressive manufacture rather than assembly from imported components. components. The cars they they chose to make were the latest in the world when they were introduced in India in the formative years of the industry. POST- INDEPENDENCE:
The government clamped clamped down on imports and foreign investments. investments. Companies like GM and Ford packed their bags and and left. India’s clock, thereafter, stood still while the world raced on ahead. It would take nearly 50 years before the Indian Indian auto industry could catch up with the rest of the world again.
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BROADBANDING ERA :
In January 1985, the government announced its famous ‘broad banding’ policy which gave new licenses to brad groups of automotive products such as two and four-wheeled
vehicles. Through a liberal move, the licensing system system was very much intact. A manufacturer had to submit a phased-manufacturing programme to the Ministry of Industry specifying the indigenization progress and allowing for almost complete indigenization within five to seven years. The biggest hurdle was the foreign-exchange clearance required for these projects. projects. Except for MUL, which had direct access to policy-makers, every other manufacturer still
faced a series of obstacles. Several new products were launched during this period.
All three traditional
carmakers added new models to their ranges – Standard Motors returned to the car business after 10 years, when in 1985 it introduced the Standard 2000, a Rover SD1 body with the old two-litre Vanguard engine. HM bought in a 1972 Vauxhall Vauxhall Victor in 1985, transplanted its
ageing Ambassador engine into it and the Contessa was born. THE BIRTH OF THE AMBASSADOR: In 1957, a small tail fin was added on either side of the rear fenders, along with a new, dimpled hood, and the car was re-christened the Ambassador Mark I . The car cost Rs.17,000. In 1963, it underwent a frontal frontal facelift with a closely checkered grille and was named the Ambassador Mark II . It would be another 12 years before the Ambassador got a facelift. In 1975, another minor facelift to the same grille grille and a much bigger frontal facelift
turned out as the Mark III. The Mark IV, launched in 1979, 1979, was the last of the Mark cars. The Ambassador Nova was launched in 1990, followed by Ambassador 1800 ISZ three years later. The Nova was the last Ambassador Ambassador powered by the 1489cc petrol engine. In 2004, HM launched the cosmetically-revised cosmetically-revised Ambassador under under the Avigo name.
Designed by Mavendra Singh , the retro look Avigo had classic touch internals like a centrally mounted console, beige-colored seats and wood finish interiors.
THE CONTESSA YEARS:
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The Hindustan Contessa, launched in 1982, was one of the few luxury cars manufactured in the country in the 1980s and 1990s. It was based based on the 1970s vintage vintage Vauxhall victor. While it was initially launched with the the 1489cc engine found found in the Ambassador, the Contessa Contessa was soon given the Isuzu Isuzu engines. There were three versions of this car - 1.8GLX (Isuzu petrol), 2.0DLX (Isuzu diesel) and the rare 2.0T (Isuzu diesel, turbo). The last Contessa rolled out in 2002, phased phased out by the demand for cheap cheap Japanese cars. Some of the leading Indian auto players in Indian automobile industry are: ➢ ➢ ➢ ➢ ➢
Premier, Tata Mahindra and Mahindra Maruthi Hindustan motors
Premier: The story of premier is the story of one mans vision, Seth Walchand Hirachand. He not only give India its first car factory but also the country’s first aircraft factory – Hindustan Aeronautics Limited and the country’s country’s first modern ship yard, Hindustan Hindustan Shipyard Limited Building India’s first auto factory
Seth Walchand Hirachand has first started the trails to establish an Indian car manufacturing plant in Indian for which he went to U.S.A. where three largest car manufacturing companies are located. He wants Indian company to be completely independent, independent, with Indian management capital and employees, paying royalty or technology transfer payment to western countries. After approaching General Motors they insisted on part ownership. Seth Walchand then moved to second largest automaker Ford ; Henry agreed, but delegated the project to Ford of Canada, which refused. Finally the third largest automaker Chrysler agreed and singed in an agreement in Bombay in 1940.
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The arrival of FIAT :
In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the tariff commission spelled out future for for the auto industry – indigenize or get out. Companies like Ford and GM, which had assembly operations in India, packed their bags and went home. But fiat decided to stick it out and committed itself full-fledged manufacture of the Millicento in 1954. In sep 1964, PAL PAL and FIAT launched launched the Fiat 1100 DELITE in India.
The biggest customers for PAL’s were Bombay’s taxi drivers . The Padminies were easy for maintenance in terms of spares spares and labour cost, low on running cost, cost, easy to drive
and reasonably reasonably tough. It was everything everything that that a taxi taxi driver wants. wants.
TATA Motors: Established in 1945, Telco or the Tata Engineering and Locomotive Company, as its full name suggests, started out making making steam locomotives for the Indian Railways. Railways. Telco’s tryst with vehicle manufacture came in 1945 when it signed a 15-year agreement with
Daimler-Benz AG of Germany to manufacture commercial commercial vehicle. The director in charge
from the Tata side was Sumant Moolgaonkar. This period was a shared birthing time for the Indian commercial vehicle industry – Premier Automobiles in league with Chrysler, Hindustan Motors with General Motors and Ashok Leyland with British Leyland – which all started truck production around the same
time. Telco’s biggest triumph came in 1985 in the LCV segment. segment. The Tata 407 , a brand new product from bumper to tail-light, was designed and marketed by Telco to take on the technically superior Japanese products. products. The 407 immediately captured 70 70 per cent cent of the
market. The TATA SUMO, launched in 1994, turned out to be the success story of the decade. The Sumo was was conceptually a brilliant brilliant vehicle.
And it was also a product product of the
government’s eccentric excise duty regulations at that time. 1998 was a landmark year for Tata – it launched the Tata Safari . Unlike the Sierra, Estate and Sumo that were designed and developed using rudimentary manual methods, the Safari was made with modern manufacturing and design processes to ensure new-found
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levels of quality and to take the company a step 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 Indica . 2001 also also saw the company company exit exit its joint venture with Daimler-Benz. In 2002, Tata launched the Indigo Indigo saloon, based on the Indica platform. On 29 July 2003,J R D Tata’s birth anniversary, anniversary, the company was renamed renamed Tata Motors Limited. The Tata juggernaut juggernaut continued to roll across the Indian auto industry with the launch of the Indigo Marina in 2004. MAHINDRA & MAHINDRA:
The story starts starts some time in the 1940’s. 1940’s. Pandit Nehru has has a dream dream of building a modern, industrially industrially advanced advanced nation. And inspired by Nehru’s vision are two brothers, Kailash Chandra Mahindraand Jagadish Chandra Mahindra. K.C.Mahindra during his
tenure in the United Stateshad met met Berney Roos. Roos was the inventor of rugged ‘General ‘General Purpose’ vehicle or the Jeep. The Jeep had earned earned reputation in the battle fields of World War II. On October October 2nd 1945, the Mahindra brothers joined hands with Ghulam Mohammed to set up a company to assemble assemble American Willys Jeeps in India. The collaboration between between M&M and its original partner Kaiser Jeep Corporation and later American Motor Corporation is for the phased manufacture of CJ3B Jeep. The company company is named Mahindra Mahindra and Mohammed. But after Independence Independence Ghulam Mohammed migrates to Pakistan. Pakistan. With his departure Mahindra & Mohammed is renamed by Mahindra & Mahindra in 13 January 1948. The first th
vehicles are assembled in Mazaogaon in Bombay. The first M&M built Willys Overland Jeep rolled out of the Mazaogaon plant on 3 June 1949. Five years later, in 1954, the first completely indigenous indigenous Jeep rolled out of the factory floor. At one point 70 per cent of the sales were assured assured by army and government.
Vehicle model [14]
Year of launching
Mahindra MM 540 Commander Mahindra Armada Voyager van Escort (M&M-ford) Bolero Scorpio
1985 1991 1993 1996 1996 1996 2002
Scorpiolaunched in 2002, a completely indigenous product that took Mahindra & Mahindra 6 long years to design and develop. develop. The Scorpio has played a critical role in changing the perception and brand image of the country. country. The 2.6 litre turbo-diesel engine engine developed 109bhp. The Scorpio has been the vehicle vehicle of M&M’s change, from a utility vehicle-maker to
a lifestyle SUV manufacturer. MARUTHI: It began with the promise promise of being being the ‘People’s ‘People’s Car’. The car never never went into into production and the company went went belly-up in 1977. Six years later, it rose like a phoenix phoenix from the ashes ashes and changed changed the Indian Indian automotive sector sector forever. The company – Maruthi Udyog Limited. The story of Maruthi Maruthi dates back to the 1970’s. Indira Gandhi was was the prime minister of India. Her son, son, Sanjay Gandhi, Gandhi, envisioned the manufactured of an indigenous indigenous cost-effective, low-maintenance compact car for the Indian middle-class. The Cabinet passed a unanimous resolution for the development development and production of a ‘People’s ‘People’s Car’. The name
of the car was chosen as ‘Maruti’.
The Car that changed India: The Maruthi 800 was essentially a Suzuki SS80, which was called the Fronte in Japan and Altoin most of the other other markets.
The 796cc, in-line, three-cylinder power plant
produced 39.5bhp at 5500rpm. Maruthi marked the beginning of a revolution revolution in the Indian automobile industry. The Maruthi 800, with its compact size, nimble handling and perky engine, offered the Indian motorist a cheaper, friendlier alternative. On 14thDecember 1983, Harpal Singh became
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Maruthi’s first customer as he received the keys of his Maruthi 800 car from Prime Minister Indira Gandhi. Gandhi. The car cost cost Rs.48,000. Rs.48,000. The new Maruthi, Maruthi, launched launched in June June 1986, 1986, cost cost approximately Rs 15,000 more than the outgoing model. The new Maruthi:
In 2005, Maruthi Maruthi launched the Swift, for the first time in its 20-year history. The Swift signaled the importance importance of the Indian market market in the world. A team of engineers engineers from Maruthi worked on the design of the Swift in Hamamatsu, Suzuki’s headquarters headquarters in Japan.
Model
Year of launching
Maruthi 800
1983
Maruthi Omni
1984
Maruthi Gypsy
1985
Maruthi 1000
1990
Maruthi Zen
1993
Maruthi Esteem
1994
Maruthi Baleno
1999
Maruthi Wagon R
1999
Maruthi Alto
2000
Maruthi Versa
2001
Maruthi Swift
2005
Maruthi Zen Estilo
2006
Maruthi SX4
2007
Maruthi Suzuki Grand Vitara
2007
The other cars which have their share in the Indian Auto Mobile industry are:
The Indian auto industry has exploded exploded in the last last 14 years. years. And car markers markers are learning some very hard truths. While the economic economic reforms process process was kicked of f in
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1991, it was only in 1993 that the automobile industry was finally delicensed and the restrictions were removed. Between 1993 and 95, government regulations limited a foreign company’s stake to a maximum of 51 percent of the equity. Hence the only method of entry for an MNC then was through a joint venture with a local partner. partner. The most preferred partner was an existing existing automaker. In 1994-95 saw the the announcement announcement of quite a few JV’s. ➢
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 allow foreign auto companies to
enter with a 100% stake or wholly-owned subsidiaries. subsidiaries. This changed the dynamics dynamics of joint ventures in India.
The other automobile industries which play a crucial role in the Indian automobile industry are: ➢
Daewoo Motors India.
➢
General Motors India
➢
Mercedes-Benz
➢
Hyundai Motors
➢
Honda SIEL
➢
Toyota
➢
Skoda India
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COMPANY PROFILE
Ford Motor Company
Type Public (NYSE NYSE:: F) Founded June 17, 17, 1903 Founder Henry Ford Headquarters Area served Key people Industry Products
Dearborn, Michigan Dearborn, Michigan,, USA worldwide William Clay Ford, Jr Jr - Executive Chairman Alan Mulally - President President,, CEO Automotive Automotive goods and services
RevenueUS$120.1 120.1 billion billion (2006)
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[1]
Operating incomeUS$-15.0 billion (2006) (2006)[1] Net incomeUS$-12.6 billion (2006) (2006)[1]
Employees 283,000 (2007)[2]
Ford Credit Ford division Divisions Lincoln Mercury Premier Automotive Group Automotive Components Holdings Jaguar Subsidiaries Land Rover Volvo (cars only) Bold Moves Have you driven a Ford lately? Built Ford Tough Slogan
Built for Life in Canada Feel the difference Make Everyday Exciting Website www.ford.com Ford Motor Company is an American multinational corporation and the world's third
largest automaker based based on worldwide vehicle sales. sales . In 2006, Ford was the second-ranked automaker in the t he US with a 17.5% market share, behind General Motors (24.6%) but ahead of Toyota (15.4%) and DaimlerChrysler (14.4%). Ford was also the seventh-ranked American-based company in the 2007 Fortune 500 list, based on global revenues of of $160.1 billion. In 2006, Ford produced about 6.6 million automobiles, and employed about 280,000 employees at about 100 plants and facilities worldwide. In 2007, Ford had more quality awards from J.D Power than Power than any other
automaker. Based in Dearborn, Michigan, Michigan , a suburb of Detroit Detroit,, the automaker was founded by Henry Ford and incorporated in June 16, 1903. Ford now encompasses many global brands,
including Lincoln and Mercury of the US, Jaguar Jaguar and and Land Rover of Rover of the UK , and Volvo of
Sweden. Ford also owns a one-third controlling interest in Mazda Mazda.. [20]
Ford has been one of the world's ten largest corporations by revenue and in 1999 ranked as one of the world's most profitable corporations, and the number two automaker worldwide. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce, workforce, especially elaborately engineered engineered manufacturing manufacturing sequences typified by moving assembly lines. lines . Henry Ford' Ford's combination of highly efficient factories, highly paid workers, and low prices revolutionized manufacturing and came to be known around the world as Fordism Fordism b byy 1914 1914.. History
Henry Ford (ca. 1919) Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve
investors, most notably John Francis Dodge and Horace Elgin Dodge who would later found the Dodge Brothers Motor Vehicle Company. Company . During its early years, the company produced just a few Model T's T's a day at its factory on Mack Avenue in Detroit , Michigan . Groups of two or three men worked on each car from components made to order by other companies. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Gr eat Depression. The largest family-controlled company company in the world, the Ford Motor Company has been in continuous family control for over 100 years.
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Corporate governance:
Members of the board as of early 2007 are: Chief Sir John Bond, Bond , Richard Manoogian, Manoogian , Stephen Butler , Ellen Marram, Marram, Kimberly Casiano, Casiano, Alan Mulally (President and CEO), Edsel
Ford II, II, Homer Neal, Neal, William Clay Ford, Jr., Jr. , Jorma Ollila, Ollila, Irvine Hockaday, Jr., Jr. , John L. Thornton and William Clay Ford (Director Emeritus). Emeritus).[8] The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG PAG)) and Ford of Europe), Mark Fields (Executive Vice President, President [The Americas]), Donat Leclair (Executive Vice President and CFO CFO), ), Mark A. Schulz (Executive Vice President, President [International Operations]) and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Credit). Credit).[9]. Paul Mascarenas (Vice President of
Engineering, The Americas Product Development)
FORD IN INDIA: Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which produced the Escort out of M&M Nashik Nashik plant. After meeting initial success, sales of the the
Escort was finally replaced by the Ikon in 1999. The Ikon marked a new beginning for for Ford in India.
It rolled out of the
Marajmalaingar plant near Chennai and by now, the company had parted ways with M&M and was renamed Ford India India Ltd in 1998. The Ikon was the first model model by a multinational to be developed specifically for India. Though it was based on the Fiesta, Fiesta, it was a unique body style and was offered and was offered with an option of three engines, including a diesel. The car was a big hit. The Ikon underwent several face-lifts and price cuts to keep demand high.
However, fresher competition and a reputation reputation for high-maintenance saw sales
gradually decline. After the arrival of the modern and highly-capable highly-capable Fiesta, another madefor-India car, with state-of-the-art engines, engines, the Ikon has been marginalized. The Fiesta has
picked up where the Ikon left and is selling well. Though the Ikon and Fiesta have been the mainstays of Ford’s production in India, the company has had limited success with other models. models. The Mondeo, launched in 2001, 2001, was a very talented car by was simply not suited to Indian conditions and earned a reputation
for being exorbitant to maintain. The Endeavour SUV was was launched in early 2004 and has has sold well for its niche. The Endeavour has recently been upgraded in 2007 and this has boosted the appeal of the big
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SUV. In 2004, Ford launched the Fusion, Fusion, which has received a lukewarm lukewarm response though the recent diesel variant has perked up sales. Fortune Ford is an authorized dealer for Ford India Limited, who are one of the
leading manufacturers of top quality cars in India, with many variants in the offering.
Fortune Ford is a 50:50%
Joint Venture
set up between two well
known and
reputed families in
Hyderabad, the
Modis and the Babu Khans .
Fortune Ford is a blend of experience and youth. The experience and good will that Mr. Misbahuddin Babu Khan and Mr. Pramod Modi enjoy blend very well with the t he youth and energy of the youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly t ruly world
class Ford Dealership. Fortune Ford markets and services the recently launched truly European Ford
Fiesta, the ever-popular Ford Ford Ikon Flair , the No non-sense car Ford Ford Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales outlet is located strategically at Somajiguda next to Eanadu. We have two service centers, one at Chapel Road, Abids opposite Stanley College and other one at Fathebagh, Santhnagar. These centrally located outlets provide convenient and easy access to both the proud owners as well as prospective buyers. The workforce at Fortune Ford is committed to excellence in serving
all esteemed customers. The Sales Team is made up of dedicated showroom and field executives who are professionally trained by Ford India Limited. They are adept at guiding the customer through the entire sales process right from assisting in the choice of model, colour and features to lending a helping hand in providing attractive buyback options and also arranging finance at
competitive rates.
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The Service Centre is armed with the state-of-the art equipment and is in-line with Ford's exacting Global standards. The service team is technically qualified and trained to analyze and provide solutions adhering to Quality Care, in order to satisfy even the most demanding customers. The Fortune Ford dealership maintains a high standard of excellence in sales and services by sending its personnel for training on a regular basis to Ford India Limited, to update them with the latest technological advances in the automotive sphere. SHOWROOM
We have 5000 sft centrally air conditioned showroom, located in the heart of the city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes convenient for almost every one residing in and around Hyderabad and Secunderabad. The facilities offered from the showroom are : 1. Very easy finance facility with in-house finance team to cater to your every car finance
requirements. All the leading finance counters are available like ICICI, HDFC, KOTAK, SUNDARAM, SBI, etc. 2. Exchange offer for any of your used car. Free spot evaluation for any usedcar. 3. Professionally trained and courteous sales staff to take care of every relevant needs of the
customers. 4. Ford preferred insurance for cashless transactions in the event of claims. Special offers on
Insurance renewals. You can also renew your insurance i nsurance by just making call to our Service marketing help line 9848885962. Showroom @ Somajiguda
[24]
5.Full range of
Ford cars with all
colors
models to choose
and
from. 6. A good stock
of
Ford
genuine
accessories to make your Ford ownership more delightful and safe. 7. A well maintained fleet of test drive cars to give you the feel and experience the drive
dynamics on actual driving conditions before take the purchase decisions. You can call our
sales help line for test drive or fill the on-line test drive requisition form.
Significant milestones •
The first Indian built Ford Escort rolled off the assembly line in 1996.
•
The Company was able to deliver Ford Escorts in seven major cities simultaneously, in just a month after booking.
•
The Special Value Pack program was launched in 1997, with commemorative 'Freedom', followed by the petrol and diesel driven 'Anniversary'. Recent SVPs have included the Orion, Alpha and Sport - E.
•
Ford Escort won the J D Power Award in India Quality Survey in 1997.
•
Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in the Customer Satisfaction Survey.
•
QualityCare, Ford's branded service initiative, provides car owners with superior services at its dealership countrywide.
•
The new, integrated manufacturing plant was dedicated in March 1999, where FORD IKON is manufactured.
•
Ford India launched Ford Assured on April 24 2000, a new initiative to buy and sell used cars of all makes. [25]
•
•
2001
On September 11, 2000. Ford India launched the Ford IKON SXi – the stylish ‘josh’ ‘ josh’ machine Ford India has started exporting Ford IKON Ford India launched the Ford Mondeo.
2002 •
•
•
•
Ford India show cases a wide spectrum of exciting cars at the Auto Expo
Ford India Limited announced a strategic partnership with Hindustan Motors Limited (HML). Certified QS 9000: 1998, 3 rd edition on March 21, 2002 Ford India received the QS 9000 award from TÜV Süddeutschland. New Ikon Variant 1.6 EXi was launched
2003: •
The New Ford Ikon NXT launched - The Next Level of Josh.
•
Adding Refinement to Josh- Ford India I ndia launches Ikon NXT ‘Finesse.’
•
Ford Celebrates Centennial in India.
•
Ford India launches Ikon NXT SXi.
•
Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study.
•
Ford launches Ikon Flair at Rs. 4.95 Lakhs.
2004: Autocar SUV of the Year – Winner Ford Endeavour. 2007: •
FORD Motor Company of Southern Africa Af rica achieves three wins and two seconds on this year total economy run
•
DOE AWARDS FORD two grants for vehicle fuel efficiency research .
•
FORD MONDEO IS AUTO EXPRESS car of the year .
•
LAND ROVER DISCOVERY DISCOVERY 3 scoops category category win at TOWCAR AWARDS 2007 2007
•
FORD MONDEO is the Caravan Club TOWCAR of the year 2008 .
[26]
MANAGEMENT PROFILE: ARVIND MATHEW – Managing Director and President
Arvind Mathew is the Managing Director and President of Ford India. He took this position in August 2005.
LUCY MILLAR – Vice President, Finance & IT
Lucy is the Vice President of Finance and IT at Ford India. She took up this position in May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India.
SCOTT McCORMACK – Vice President, Marketing, Marketing, Sales & Service
Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He took this position in July 2006. Scott reports to Arvind Mathew, President and Managing Director, Ford India.
NANCY REISIG – Vice President, Human Resources
Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford India.
SANDIP SANYAL – Vice President, Supply and Total Value Management
Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford India. He took this position in September 2005. Sandip reports to Arvind Mathew, President and Managing Director, Ford India. STEVE BRIDGMAN – Country Manager, Ford Credit
[28]
PRODUCT PROFILE
Fusion:
[29]
PRICE(lacs)
Engine: Type Construction Fuel System Displacement (cc) Compression Ratio Max. Power (ps/rpm) Max. Torque (nm/pm) Emission Stage Kerb Weight (Kg) Transmission MaxSpeed (Kmph) Mileage
[30]
6.59 4 Cyl. In – Line, 16 – V DOHC All Aluminium Alloy SEFI 1596 9.75:1 101 / 6500 146 / 3400 Bharat Stage III 1143 Manual 5 Speed 174 11.3
Endeavour:
PRICE(lacs)
Engine: Type Displacement (cc) Max. Power (PS/rpm) Max. Torque (kgm/rpm) Ignition System Valve System Fuel System Emission Kerb Weight (Kg) Transmission MaxSpeed (Kmph) Mileage
[31]
(4X2) (4X4)
16.16 17.17
2.5 litre, 4 Cylinder in-line, Turbocharged & inter-cooled diesel 2499 116/3500 28.5/2000 Compression SOHC, 12 Valves Indirect Injection Mechanical Pump Exhaust Gas Recirculation (EGR) Meeting Bharat Stage III Norms 1933/1958 Manual 5 Speed 142 8.2
Fiesta:
Engine
1.4 EXI 1.6 ZXI 1.6 SXI 1.4EXI (TDCi) Price( in lacs)
Type
6.76 7.28 8.28 4 Cylinder in-Line, 16 Valve DOHC All-aluminium Alloy SEFI 1388 1596 1596
1.4 ZXI (TDCi)
1.4 SXI (TDCi)
8.00 8.52 9.19 4 Cylinder in-Line, 8 Valve SOHC
Construction High Pressure Common Rail Fuel System Displaceme cc 1399 1399 1399 nt Compression Ratio 9.75:1 9.75:1 9.75:1 18:1 18:1 18:1 Max. ps/rpm 82/6000 101/650 101/650 68/4000 68/4000 68/4000 Power 0 0 Output Max. Max. Nm/rp Nm/rp 127/40 127/4000 146/34 146/3400 146/34 146/3400 160/20 160/2000 160/20 160/2000 160/20 160/2000 [32]
Torque m Emmision Compliance
0 0 Bharat Stage III
Transmission Type
5 Speed Manual
0
0
0
0
Kerb Weight (Kg) MaxSpeed (Kmph) Mileage
170/178 14.75/13.6
Ikon:
PRICE(lacs) Engine:
Type Fuel system Displacement (cc) Max. Power (ps/rpm) Max. Torque (Nm/rpm) Transmission Type [33]
5.50 4 Cylinder, 8-V SOHC, Rocam Petrol SEFI 1299 70/5500 105/2500 5 Speed Manual
978 148 10.8
Kerb Weight (Kg) MaxSpeed (Kmph) Mileage
Mondeo:
PRICE(lacs)
6.59
Engine:
Engine type Displacement [34]
2.0L 16V DOHC Petrol 1999 cc
Max. power Max. torque Compression ratio Valves Fuel injection Emission level Construction
142.7 PS/6000 rpm 185 Nm/4500 rpm 10:8:1 16V DOHC Sequential electronic fuel injection (SEFI) Bharat Stage III All Aluminium Alloy
Transmission Type
Ford MTX-75 manual 5-speed with synchromesh
Kerb Weight (Kg) MaxSpeed (Kmph) Mileage
[35]
200 8.6
SOURCE OF DATA
Marketing strategy and analysis: analysis : A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as a guide for specific specific marketing programs and policies. policies. Marketing strategy is based on a situation analysis- a detailed assessment of the current marketing conditions facing the company, its product product lines, or its individual brands. From this situation analysis, a [36]
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 objectives of the firm/business firm/business unit. The marketing objectives 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 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, 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 overarching mission statement.
MARKETING AND PROMOTIONS PROCESS MODEL:
Development of marketing marketing program requires an in-depth analysis analysis of the market. This analysis may make extensive use of market research as an input into the planning process.
Marketing Strate Strategy gy and analysis
Target Target marke marketin tingg process [37]
Marke Markett planni planning ng program development development
target market
Opportunit
Identifyin g markets
promotion to final
Product
Ultimate consumer
Promotional
buyer decisions
Competitiv e analysis
Market segmentati on
Pricing decisions
➢
➢
➢
Channel ➢
Cons ume rs Busi ness es
Adver tising Direct marke ting Intera ctive marke ting Sales
Purchase
Target marketing
Target
distributi on
➢
otion Public
marketing
Promotion to trade Positioning through marketing strategies
➢
relati ons Perso nal sellin g
Resellers
This input, in turn, provides the basis for the development of marketing strategies in regard to product, pricing, distribution distribution and promotion decisions. Each of these steps requires a detailed analysis, since this plan serves as the road map to follow in achieving marketing goals. Once the detailed market analysis has been completed and marketing objectives have been established, each element in the market mix must contribute to a comprehensive integrated marketing program.
Of course, the promotional program element must be
combined with all other program elements in such a way as to achieve maximum impact.
Formulating Formulating the marketing strategy: [38]
Basically, formulation of marketing strategy consists of three main tasks: 1. Selecting the target market, 2. Positioning the offer, 3. Assembling the marketing mix. This implies that the essence of the marketing strategy of a firm for a given productor brand can be grasped from the target market chosen, the way it is positioned and how the marketing mix is organized. organized. The target market shows to whom the unit intends intends to sell the products; positioning and marketing mix together show how and using what uniqueness or distinction, distinction, the unit intends to sell. The three together constitute constitute the marketing strategy platform of the given product. SELECTING THE TARGET MARKET:
To say that target market selection is a part of marketing strategy development is just stating the obvious. It does not fully bring out the import of the inseparable likage between between the two. When the selection of the target market market is over, an important part of the marketing strategy of the product is i s determined, defined and expressed. Marketing targeting targeting simply means choosing choosing one’s
targetmarket.
It needs to be
clarified at the outset that market targeting is not synonymous with market segmentation. segmentation. Segmentation is actually actually tee prelude to target market selection. One has to carry out several tasks besides segmentation before choosing the target market. Through segmentation, segmentation, a firm divides the market into many segments. segments. But all these segments need not form its target market. market. Target market signifies only those segments segments that it wants to adopt as as its market. A selection is thus involved in it. Marketing segmentation is a process that throws up not one but several market
segments. There may be segments that are sizeable and the ones ones that are not so sizeable. There may be segments assuring immediate profits and the ones that call for heavy [39]
investments in market development. development. There may also be segments segments that show great potential, but display tough barriers to entry. As such, the question, question, which segment/segments, segment/segments, the firm should select as its target market, assumes crucial importance. STRATEGIC MARKET SEGMENTATION:
Market Segmentation Segmentation is “dividing “dividing up a market into distinct distinct groups groups that that (1) have common needs and (2) will respond similarly to a marketing action”, which was said by Eric N.Berkowitz, Roger A.Kerin, and William Redulius.
The Segmentation process involves five distinct steps: ➢
Finding ways to group consumers according to their needs.
➢
Finding ways to group the marketing actions – usually the products offered – available to the organization.
➢
Developing a market-product grid to relate the market segments to the firm’s products or actions.
➢
Selecting the target segments toward which the firm directs its marketing actions.
➢
Taking marketing actions to reach target segments. Markets can be segmented segmented using several relevant relevant bases. For example, demographic demographic
characteristics of consumers, such as age, sex, income/purchasing capacity, education level etc, form one base for segmentation. segmentation. Geographic characteristics constitute constitute another; another; and buying behavior of the consumers forms yet another base. The various types of segmentations are
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Buyer behavior
Benefits segmentation
Volume of purchase segmentation
[40]
POSITIONING:
Positioning is a platform platform for the brand. It facilitates the brand to get get through to the target consumers. It is defined as “the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.” Positioning is the act of fixing the locus of the product offer in the minds of the target consumers. In positioning, the firm decides how and around what parameters, the product offer has to be placed before the target target consumers. The significance of product positioning positioning can be easily understood understood from David Ogilvy’s words:
“The results of your campaign
depends less on how we write your advertising than on how your product is positioned”. Definitions of product positioning: Sengupta, in his book Brand Brand Positioning says, says, “ The aim of product positioning is to create a
perception for our brand in the prospect’s prospect’s mind so so that it stands apart from competing brands… we must cover that space in the consumer’s consumer’s mind as if we had won a long-term
lease. We must find a strong position in that mind and and sit on it….” Micheal Rothschild, in his book Marketing Communications – From Fundamentals to Strategiessays, “Positioning refers to the place a brand occupies in the mind in relation to a
given product class. This place was originally a product-related concept…. Concerning market structure. The concept now refers to the place place that the brand holds in the consumer’s
mind related to perceptions and preferences”. preferences”. Developing a Positioning Strategy : To create a position for a product or service, Trout and Ries suggest that managers ask
them selves six basic questions. 1. What position, if any, do we already have in the prospect’s mind? 2. What position do we want to own? 3. What companies must be outgunned if we are to establish that position? [41]
4. Do we have enough marketing money to occupy and hold the position? 5. Do we have the guts to stick with one consistent positioning strategy? 6. Does our creative approach match our positioning strategy?
PRODUCT POSITIONING AND BRAND POSITIONING:
It is essential to understand the relationship between products positioning and brand positioning. Though in discussions, discussions, the the two terms are are synonymously synonymously and interchangeable used, technically they are different. Product positioning denotes the specific product category/product classin which the given product product is opting to compete. And brand positioning denotes denotes the positioning positioning of the brand viz-a viz the competing brands in the chosen product category. It is evident that for any product, before entering the market it has to sequentially carry out the two exercises, product product positioning and brand positioning. positioning. In the first step, the product category where the new entrant should enter and compete, i.e. against what all products it has to compete, has to be decided. decided. In this step, it is the broad function that the product is trying to serve that matters. This choice of product category category will decide the nature of the competition the product is going to face.
Once product product category positioning positioning is
decided, the position for the new entrant against competing brands in the chosen product category has to be analyzed and fixed. ISSUES IN PRODUCT POSITIONING:
Where is the new offer going to compete? As what? Which product function/customer function/customer need is it trying to meet? What other product categories categories serve this need? In other words, what what are the substitute products that serve the same need? Where is the real gap, where is such a new offer off er most welcome and wanted by the market? What are company’s competencies to fight here? ISSUES IN BRAND POSITIONING:
[42]
In deciding the Brand positioning, the issues are: Which are the competing brands in the chosen product category? What are the unique claims/strengths of the various brands? What position do they enjoy in consumer’s evaluation and perception? What is the most favoured position…? And yet vacant? Can the new brand claim the needed distinction and take the position and satisfy the need? The major dimension dimension of marketing strategy strategy relates to positioning positioning of the offer. The firm has already selected the target market market and decided its basic offer. Now, what is the conjunction between these two entities? How do they they get connected? connected? What is the interface? In other words. What is the locus the firm seeks among the customers in the chosen targer market with its offering? How would the firm want the consumer to view and receive the offer? These are the issues issues the firm has to grapple with in positioning. positioning. And, while formulating the marketing mix too, too, the firm will agitate over these issues. The Product
Differentiation and Positioning discusses the multifarious issues involved in the subject. PRODUCT REPOSITIONING : Products do undergo ‘repositioning’ ‘repositioning’ as they go along their life cycle. cycle. In some cases, even products that are fairing well well are repositioned. This is done mainly to enlarge the reach of the product offer and to increase the sale of the product by appealing to a wider target market. The product is provided with some some new features or it is associated associated with some new
target segments. PROMOTIONAL DECISIONS: Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. While implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the market The basic tools used to
[43]
accomplish an organization’s communication objectives are often referred to as the promotional promotional mix .
The promotional mix
Advertisin g
Direct marketin g ➢
Interactiv e/ internet
Sales promotio n
Publicity/ Public relations
Personal selling
Advertising:
Advertising is defined as any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor. The paid paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement, whose
advertising space or time is donated by the media. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. pervasiveness. It is also very important promotional promotional tool, particularly
for companies, whose products and services are targeted at mass consumer markets. It is a very cost-effective method for for communicating with large audiences. It can be
used to create brand images and symbolic appeals for a company or brand.
➢
Direct Marketing: One of the fastest-growing sectors of the U.S. economy is direct marketing, in
which organizations communicate directly with target customers to generate a response and a transaction. It has become such an integral part of the IMC program of many organizations and often involves separate objectives, budgets, and strategies, we view direct marketing as a
component of the promotional mix. Direct Marketing is much more than direct mail and mail order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing and
direct response ads through direct mail, the Internet, and various broadcast and print media. [44]
One of the major tools of direct marketing is direct response advertising , whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. ➢
Interactive/Internet Marketing:
Interactive media allow for the back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive receive in real time. Unlike traditional forms of marketing marketing communications communications such as advertising, advertising, which are one-way in nature, the new media allow users to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions and of course make purchases. purchases. In addition to the Internet, other forms of interactive media include include CDROMs, Kiosks, and interactive television. ➢
Sales Promotion:
The next variable in the promotional mix is sales promotion, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate ultimate consumer consumer and can can stimulate immediate immediate sales,
sales
promotion is generally broken into two major categories: Consumer-oriented and Trade-oriented activities Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers, distributors and retailers.
➢
Publicity/Public Relations:
Publicity refers to non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. sponsorship. It usually comes in the form of a news story, editorial or announcement about an organization organization and its products and services. services. Like advertising, advertising, publicity is not directly paidfor by the company. company. [45]
An advantage advantage of publicity over over other forms of promotion is its credibility. credibility. Another advantage of publicity is its low cost, since the company is not paying its time or space in a mass medium such as TV, radio or newspapers. Public relations are defined as “the “the management management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interests and executes a program of action to earn public understanding and acceptance”. acceptance”.
Public relations relations generally have have a broader objective objective than publicity, as its
purpose is to establish and maintain a positive image of the company among its various publics. ➢
Personal Selling:
It is a form of person-to-person communication communication in which a seller attempts to assist and persuade prospective buyers to purchase the company’s product or service or to act on an idea. Unlike advertising, personal personal selling involves direct contact contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. Personal selling involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer’s reactions. ASSEMBLING THE MARKETING MIX :
Assembling the marketing mix means assembling the four Ps of marketing in the best possible combination. combination. Involved in this process are the choice choice of the appropriate marketing activities and the allocation of the appropriate marketing effort/resources to each one of them. The firm has to find out how how it can generate generate the targeted sales and profit. It considers different marketing mixes with varying levels of expenditure on each marketing activity and tries to figure out the effectiveness of different combinations in terms of the possible sales and profits. It then chooses the combination/mix combination/mix of products, price, place and promotion promotion that is best according to its judgment. Since marketing is essentially an interaction between the marketing mix and environmental variable, and since the latter and non-controllable, marketing becomes synonymous with assembling and managing the marketing mix. Of course, while assembling the marketing mix, the marketing manager will take due note of the environmental variables. variables. [46]
Not only will he take due not of them, he will ensure that his marketing mix suits the environmental variables. variables. And, its it factor that renders tha task much more complex. MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND DELIVERING CONSUMER VALUE The four elements mentioned above- product, distribution, promotion and pricing constitute the marketing marketing mix of the firm. The marketing mix is the the sole vehicle for creating creating and delivering customer value. It can be easily seen that all activities and programmes, which a marketer designs and caries out in his effort at winning customers, relate to one or the other of the above four elements- product, place, place, promotion and pricing. It can also be seen that in each of these elements, there are several several sub-elements. For example, packaging packaging is one of the sub-elements of 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 coined the expression marketing mix and and described the marketing manager manager as a mixer of ingredients. ingredients. To quote him, `The marketing man is a decider decider and an artist – a mixer of ingredients, who sometimes follows a recipe recipe developed developed by others others and sometimes prepare prepare his own own recipe.
And,
sometimes he adapts his recipe to the ingredients that are readily available and sometimes invents some new ingredients, or, experiments with ingredients as no one else has tried before. Subsequently , Niel H.Borden, another noted marketing expert, popularized the concept of marketing mix. It was Jerome McCarthy, the well-known American professor of marketing, who first described the marketing marketing mix in terms of the four Ps. He classified the marketing marketing mix variables under four heads, each beginning with the alphabet “P”. •
Product
•
Place
•
Price
•
Promotion [47]
McCarthy has provided an easy-to-remember description of the marketing mix
variables. Over the years, years, the terms – Marketing mix and Four Ps of marketing marketing have come to be used synonymously. synonymously. Assembling and managing the marketing mix is the crux of the marketing task. And, it is through the marketing mix that the marketing manager achieves the marketing objectives. MARKETING STRATEGIES FALL UNDER TWO CATEGORIES:
We have seen that target market selection, positioning and marketing mixformulation together together constitute marketing marketing strategy. We have also seen that a firm can can assemble the marketing mix elements in many different ways, depending on the relative weightage it assigns to the different elements.
The scope to carve out different
combinations is, in fact immense. immense. As a result, business firms are are able to employ an abundance of strategies and strategy stances in their relentless race to stay ahead of competition. However, a close scrutiny will reveal that all these strategies strategies can be fitted into two broad categories 1. PRICE ORIENTED MARKETING STRATEGY 2. DIFFERENTIATION ORIENTED MARKETING STRATEGY In other words, there are only two broad routes available for forging marketing strategies: any strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented strategy.
PRICE ORIENTED MARKETING STRATEGY :
Firms taking to the price route in marketing strategy compete on the strength of pricing. They use price as their competitive lever. lever. They juggle juggle the price of of their product product to suit the prevailing competitive competitive reality. They can afford afford to offer lower prices and and still make [48]
the targeted profits. They elbow out competition competition with the cushion they enjoy in the matter matter of pricing. Price route requires cost cost leadership,evidently, leadership,evidently, a firm opting for the price route will have to have a substantial substantial cost advantage in their operations. operations. It should be enjoying an overall overall cost leadership in the given industry and its lower cost should enable it to secure above average returns inspite of strong competition. The cost advantage can emanate from different factors like, scale economies, earlyu entry, a large market share built over a period of time, locational advantage, or synergy among the different businesses. The firms whole strategy, in fact will revolve r evolve around building such cost advantage. To successfully practice a price-led strategy, a firm should have consciously taken to the idea sufficiently early in its evolutionary process and prepared itself for adopting such a strategy.
DIFFERENTIATION ORIENTED MARKETING STRATEGY: STRATEGY :
The differentiation differentiation route of of strategy revolves around around aspects aspects other than price. It works on the principle that a firm can make its offer distinctive from all competing offers and win through the distinctiveness. distinctiveness. And, a firm adopting such route can price price its product on the perceived value of the attributes of the offer and not necessarily on competition-parity basis. Maximum scope scope for exploiting differentiation differentiation remains with the product. product. While all the 4Ps of marketing are important elements from the point of view of strategy, the other Ps normally go as elaborations elaborations of the offer, while while the productforms its core. core. Product differentiation is of vital importance in product management and has great potential in forgoing successful marketing strategies. The product can be differentiated along two major planks: 1. Tangible product attributes and functions, f unctions, 2. Intangible characteristics and emotional associations. The tangible product attributes and functions are Differentiation based on ingredients, Differentiation based on functional value, [49]
Differentiation based on additional features, Packaging contributing to differentiation, Differentiation based on Quality, Operational Efficiency, Technology, Service.
DIGITAL MARKETING:
Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole
host of elements such as mobile phones, sms/mms, display / banner ads and digital outdoor. BUZZ MARKETING (WORD OF MOUTH): Word of mouth, is a reference to the passing of information by verbal means, especially recommendations, but also general information, in i n an informal, person-to-person manner. Word of mouth is typically considered a face-to-face spoken communication, although phone conversations, text messages sent via SMS and web dialogue, such as online profile pages, blog posts, message board threads, instant messages and emails are often now included in the definition of word of mouth. There is some overlap in meaning between word of mouth and the following: rumor, gossip, innuendo, and hearsay; however word of mouth is more commonly used to describe positive information being spread rather than
negative, although this is not always the case. Word-of-mouth promotion, also known as buzz marketing and viral advertising, is highly valued by advertisers. It is believed that this form of communication has valuable source credibility. Research points to individuals being more inclined to believe WOMM than more formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals). referrals). In order to
[50]
promote and manage word-of-mouth communications, communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response. Influencer marketing is increasingly used to seed WOMM by targeting key individuals that have authority and a high number of personal connections. EVANGELISM MARKETING:
It is an advanced form of word of mouth marketing (WOMM) in which companies develop customers who believe so strongly in a particular product or service that they freely try to convince others to buy and use it. The customers become voluntary advocates, advocates, actively spreading the word on behalf of the company. Evangelism literally comes from the three words of 'bringing good news' and the marketing term justly draws from the religious sense, as consumers are literally driven by their beliefs in a product or service, which they preach in an attempt to convert others.
EFFECTIVE SALES PROMOTION : Sales promotion consists of diverse collection of incentive tools mostly short
term, designed to stimulate quicker and greater purchase of particular products of services by the consumer. consumer. Sales promotion promotion is the only only method that that makes use use of incentives incentives to complete the push-pull promotional strategy of motivating the sale force, the dealer and the consumer in transacting a sale.
Price-Offs Offer:
Price-off offers refers to offering the the product at lower than than the normal price. This encourages immediate sales, attracts non-users, induces product trail and counters competition. Premium:
Premium refers to the offer of an article of merchandise as an incentive in or to sell the product.
[51]
Coupons:
In order to encourage product trail, stimulate re-purchase rate and build loyalty through news papaers. Dealer stock display contests:
It is a type of point of purchase advertising which uses the show windows of the dealer for providing exposure to the sponsor’s products. Dealer participating enthusiastically and creatively are awarded DEFENDING MARKET SHARE : While trying to expand total market size, the dominant firm must continuously defend it current business business against rival attacks. This step is very much much essential for for the market market leader firm because the challenger firms are constantly to exploit the weaknesses of the
leader firms. EXPANDING MARKET SHARE : Market leaders can improve improve their profitability by increasing their market share. But for few market leaders whose share in the total market is insignificantly high, the expansion of market share n the total market may be proved proved both as expensive and risky. risky. Therefore it is better for such leader firms in spending their time in building up the market size rather than expanding the market share. share. The reason for this action may be attributed to two
factors: 1. The market leader firms might attract the t he provisions of various anti-trust legislations.
The rival competitors competitors will try to force force the Government Government to bring
legislations against the “MONOPOLISATION” 2. The second reason being being the economic factors. The cost of making further gains gains in the market share after a large share has been achieved may rise fast and reduce the
profit margin.
HARASSMENT STRATEGY:
[52]
The market leader firm will resort r esort to anharassment strategy in order to promote its market share. As a part of this strategy, the leader form might approach the suppliers and threaten to reduce its purchases. If the latter supply the upstart upstart firm, sometimes it might put put pressure on distributors distributors not to carry the competitorsproduct. competitorsproduct. The salesman of leader firm might speak negatively negatively about competitors. It may also try to hire away the better executives of an aggressive aggressive firm.
Sometimes, the market leader leader firm will try to restrain these these
competitions through legal devices. It might push legislation that would be more unfavorable to the competitors than to itself. The aim of defensive strategy is to reduce the profitability of attack, divert attacks to less threatening areas, and lessen lessen the intensity of attack. Any attack is likely to hurt profits. But the defender’s form and speed of response can make an important difference in the profit consequences. consequences. There are 6 defense strategies that a dominant firm can use: 1. Position Defense: The basic idea of defense is to build an impregnable fortification around one’s
territory. 2. Fl Flan ank k De Defe fens nse: e:
The market leader should not only guard its territory but also erect outposts to protect a weak front or possibly serve as an invasion base for counter attacking. 3. Preemptive Defense:
A more aggressive defense maneuver is to launch an attack on the enemy before the enemystarts its offense against against the leader. leader. Preemptive defense defense assumes assumes that an ounce of prevention is worth more than a pound of cure. 4. Counteroffensive Defense: Defense :
Most market leaders, when attacked will respond counterattack. The leader cannot remainpassive in the face of a competitor’s price cut, promotion blitz, product improvement, or sales territory invasion. The leader has the strategic choice of meeting the attacker frontally, maneuvering against the attacker’s flank, or launching a princer movement to cut off the attacking formation from their base operation. 5. Mo Mobi bile le De Defe fens nse: e:
Mobile defense involves involves more than the the leader aggressively aggressively defending it territory. In [53]
mobile defense, the leader stretches it domain over new territories than serve as future centers for defense and offense. 6. Contraction defense :
Large companies companies recognize that they can no longer defend defend all the territory. Their focus are spread too thin, and competitors competitors are nibbling away on several funds. The best best course of action then appears to be planned contraction (also called strategic withdrawal).
INNOVATION STRATEGY:
The market leader may innovateseveral strategies in respect of new product ideas, customer services, means means of distribution, cost cutting discovery. discovery. In addition to these, a leader may discourage its competition particularly challenge firm. FORTIFICATION STRATEGY:
In order to protect its market share, the market leader may try to keep it product prices reasonable in relation to the perceived perceived valued of the offer and competitors competitors offer. The leader produces it brand in a variety of sizes and firms. CONFRONTATION STRATEGY :
If leader firm faces an extremely aggressive challenger, whose actions demand a quick and direct response. In such a situation, the market leader will engage any promotional war, engaging in a massive promotional expenditure that the aggressive challenger cannot cannot match. The leader firm may engage engage in the price price war whenever whenever a new new challenger is considering considering to enterin its market. market. This strategy strategy will frighten the potential competitions and make then to withdraw from entering the market.
[54]
MARKETING STRATEGIES OF FORD
[55]
MARKETING STRATEGIES OF FORD: Product differentiation based on operational efficiency:
FORD EXCELLING THROUGH THROUGH SERVICE: Ford tries to differentiate its offer offer on the plank of service. It has gone gone in for a new norm in customer service: service: “ fix it right-the supplying videotapes videotapes showing showing how repairs have to be first time-on time ”. Ford is also supplying done. Adopting Offer to Suit Target Segment: Ford modifies its its models for India: India:
Ford modified its models for the Indian target segments as shown below: ➢
Higher ground clearance to make the car more compatible to the rougher road surface in India.
➢
Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian roads.
➢
Changes in cooling requirement, with greater airflow to the rear.
➢
Higher resistance to dust.
➢
Compatibility of engine with the quality of fuel available in India.
➢
Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe.)
[56]
Strategic segmentation of cars:
The Ford in India has launched the car only for few segment of people. The segmentation of car buyers based on price preferences are •
Family car segment: These cars forms forms a reasonably sizeable sizeable segment 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 represents buyers who who need a real world-class world-class car
and are willing to pay the due price. Preferred price range starts from 8 lakh to 12 lakh. ‘FORD FIESTA’, ‘FORD MONDEO’ come under this segment of cars.
•
SUV segment: The buyers of this segment like to have have a big vehicles. vehicles.
And these cars are also useful for sport riding and even on hill areas. There body is designed similar to offroad vehicles, vehicles, which can withstand withstand to Indian roads. ‘FORD ENDEAVOUR’ ENDEAVOUR’ occupies this segment. segment.
Strategic Promotions by FORD: Ford follows the promotions at two levels, they a
1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level. In the first step the products of vehicles manufactured by the Ford Automotives are directly promoted by the manufacturer manufacturer by himself. He follows many promotional strategies strategies like 1. Advertising through television and newspaper. 2. Internet or interactive marketing. 3. Direct marketing. [57]
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 t he 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 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 newspapers and watching televisions. televisions. While travelling from their home to office, moving on their business business activities they may watch these hoardings. hoardings. These hoarding are especially setup at the road signal stops. Maintaining Data Bank:
In this the dealer collects personal/bio-data(address and contact number) of many people from various organizations and different sector who are ready to buy the vehicles and who change the vehicles regularly. These people are met-in person person or contacted through their contact contact number. The various new features and new offers regarding the vehicles are advocated to them and are given discounts on group purchase of vehicles, i.e. if 5 or more friends in the group purchase the cars at a time then they are given special discounts on the vehicles. Free Insurance:
The Fortune Ford gives a special offer of free insurance on the purchase of each vehicle to its new customers.
[58]
Relationship Marketing:
Fortune Ford pays a special attention attention towards its old customers. customers. To retain the old and existing customers it conducts 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 givenby 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 sent to some some big corporate corporate
sectors and there they personally meet the heads of the organizations like C.E.O’s, Managersetc., and explain about the vehicles and the offers and
special schemes
provided by the dealer to them on bulk purchase purchase of the vehicles and try to promote promote the
sales of the vehicles. 3. Field sales: The sales executives conduct some events with the corporate working people and try to demonstrate the product features and its benefits and try to promote the
product and increase its sales.
Conducting Customer Delight Program:
This is a unique program conducted conducted by the Fortune Ford. This is a program conducted to retain the old customers customers of the Ford. The old customers of the Fortune Ford are meetpersonally and they are requested to give their feedback by filling in the questionnaire which is specially prepared prepared for them. In this questionnaire questionnaire their problems [59]
regarding the vehicle and also their their post sale service experience experience are taken. If there exists any problem, then the Fortune Ford service men try to resolve the problems of their customers as soon as possible and makes the customer satisfied. This is a technique to attract the new customers by satisfying the old customers and gaining goodwill in the market. STRATEGIC SALES STANDARDS: Fortune Ford maintains strategic sales standards in the following manner.
!
The Sales Sales faculty faculty is is clean, clean, tidy tidy and and invitin inviting, g, making making custo customers mers comfortab comfortable le while while purchasing products and availing services.
!
Customers Customers are courte courteously ously acknowled acknowledged ged within within two minute minutess of their arrival arrival and and are advised that a Sales Consultant will be available upon request.
!
The Sales Sales Consulta Consultant’s nt’s appea appearanc rancee and dress will be be of the highe highest st standa standards. rds.
!
An adviso advisory ry relatio relationship nship is estab establishe lishedd between between the customer customer and the Sales Consultant who listens to the customer, identifies their needs and ensures that they are met.
!
A pleasan pleasant, t, non-pre non-pressure ssuredd purcha purchase se exper experienc iencee will be provid provided ed during during which which a thorough demonstration of the vehicle features and benefits will be made.
!
A test test driv drivee will will be be offe offere redd to all all cus custo tome mers rs..
!
Using a check check list, list, the Sales Consultan Consultantt delivers delivers the the vehicle vehicle in in perfect perfect condit condition ion when when promised.
!
Customers Customers will be contacted contacted within within one one week week after after delivery delivery to to ensure ensure total satisfaction.
MAINTAINING SERVICE STANDARDS :
!
An efficie efficient nt service service facility facility allows allows a custome customerr to avail avail all the the service service provided provided by Fortune Ford, in a clean and welcoming environment.
!
An appoin appointment tment is availa available ble within within 5 working working days of the the custome customer’s r’s reques request. t.
!
Customers Customers are are courte courteousl ouslyy acknowle acknowledged dged within two minute minutess of their their arrival arrival and the write-up will begin with five minutes.
[60]
!
Service Service needs needs are courte courteously ously identified identified,, accurate accurately ly recorde recordedd on the repai repairr order order and verified with the customer.
!
The vehic vehicle le is is serv service icedd right right on the first first visit visit..
!
The vehic vehicle le is ready ready on the agreed agreed upon upon time time..
!
A through through explanati explanation on of work done, done, warranty warranty coverage coverage and charges charges is given given to the customer.
!
All servi service ce repai repairr work will will be foll followe owedd up withi withinn five work working ing days days..
!
Each Each vehicl vehiclee will be be washe washedd before before bein beingg return returned ed to the the custo customer mer..
EXTENDED WARRANTY:
Fortune Ford gives an extended warranty to its customers where there will be an extended time duration in the warranty. What is Extended Warranty? ♦ ♦
Factory Warranty covers only for a specific period of time/mileage. After the factory warranty expires, customer is exposed to the risk of parts failures. This is applicable for any machine/equipment/vehicle. machine/equipment/vehicle.
Extended Warranty: ♦ ♦ ♦ ♦ ♦
Is an extension of Factory Warranty Offers almost similar coverage as Factory Warranty Comes with a time-bound (eg. 1yr/2yrs but unlimited mileage cap) Covers all Mechanical and Electrical Failures Covers labour
Why is extended warranty needed? ♦ ♦ ♦
Offers peace of mind motoring Protects against unexpected and non-budgeted expenses Can be transferred, hence increases the resale value.
What does it NOT cover? ♦ ♦
Does not cover wear and tear of parts Does not cover scheduled service items [61]
♦
Does not cover accident repairs
Benefits to customer
Protection from manufacturing and material defects ♦ Car can be repaired at any Ford out let across the country ♦ Unlimited number of claims ♦ No excess to pay ♦ One up-front payment only ♦ Inflation protection from rising costs of parts and labour ♦ All repairs carried out by qualified Ford technicians ♦ Warranty can be transferred when vehicle is sold – better resale value ♦ Total peace of mind ♦
TOTAL MAINTENANCE PLAN What is Total Maintenance Plan? ♦ ♦
♦ ♦
Cost of ownership is the key key factor while considering considering vehicle purchases purchases As part of regular maintenance, customers spend on a) Maintenance parts parts that are to be replace replace at specific intervals intervals b) Replacement of worn out parts c) Labour charge for the above A comprehensive maintenance maintenance plan by Ford will serve as a good tool to improve the service experience and minimize concerns on cost of ownership of the vehicle Total Maintenance Plan (TMP) is a complete service solution provided to the customer. This enables the customer customer to have total peace of mind in the the form of a “Maintenance Holiday”
What does it cover?
Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark plugs etc. maintenance like Brake Pads/Shoes, Brake Discs, Clutch Plates, ♦ Non-scheduled maintenance Lower Suspension Suspension Arms, Shock Absorbers Absorbers etc.. Mechanical/Electrical repairs ♦ Mechanical/Electrical ♦ Labour for all the above ♦
What does it NOT cover? ♦ ♦ ♦
Accident repairs Tyres Fuel [62]
Benefits to the customer ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦
Total peace of mind Fixed price for next 2 to 3 years Increased residual value of the car Only Ford genuine parts are used Can avail this service across the country at all Ford authorized outlets Transferable Incase of total loss, can be cancelled Ford factory backed programme Diagnosis/repairs as per recommended standards and practices Vehicles serviced by Ford trained and certified technicians
[63]
RESEARCH METHODOLOGY
[64]
RESEARCH METHODOLOGIES AND LIMITATIONS: MARKETING RESEARCH:
Definition of marketing research research as approved as by the board of directors of the association of American marketing association is: “Marketing research is the function which links the customer and public to the
marketer through information – information used to identity and define marketing opportunities and problems generate define and understanding of marketing as process”. Simply, marketing research research isthe systematic design collection collection analysis and reporting of data finding finding relevant to a specific marketing marketing situation facing facing the company. company. Carefully planning through all stages of the research is a necessity. Objectivity in research research is all-important.
The heart heart of scientific method method is the
objective gathering of the information. The function as marketing research with in the company as to provide the information and analytical necessary for effective. ➢
Planning of the future marketing activity.
➢
Control of the marketing operation in the present.
➢
Evaluation of marketing results.
A research may under take any of the three types of research investigation depending upon the problem. These type of research included: 1. Basic research 2. Applied research 3. Designated Fact Gathering BASIC RESEARCH:
[65]
It is also known as the pure fundamental research, which refers to those studies, sole purpose of which is the discovery discovery of new information. It is conducted to extend the horizons horizons on given area of knowledge with no immediate application to existing problems. APPLIED RESEARCH:
It is attempt to apply the various marketing technique, which have been developed as research, first and later on they become become applied research techniques. techniques. It is on attempt to apply the basic principles and existing knowledge for the purpose of solving operational problems. DESIGNATED FACT GATHERING:
It refers to a research r esearch where the investigation attempts to gather some pre-determined data. STEPS IN MARKETING RESEARCH:
Marketing research process can be out through following steps .
Define the problems and research objectives Develops the research plan Collect the information Analysis and interpretation Present the finding. RESEARCH METHOD :
It must be classified on on the basis of the major purpose of 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 :
[66]
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. contacted. Survey research is the approached gathering description and information.
CONTACTED METHOD:
The information was solicited by administering structured questionnaire to the customer and dealers, thus getting to know directly from the dealers their sales before and after sales service. SECONDARY DATA COLLECTION:
The secondary data consists of information that already existing somewhere having been collected for another another purpose. Any researcher researcher begins the research work by first going through secondary secondary data. Secondary data includes the information available available with company. company. It may be the the findings of research previously previously done in the field. Secondary data data can also also be collected from the magazines, news papers, internet other service conducted by researchers. METHODS OF DATA COLLECTION:
The basic method adopted in conducting the study is a structured questionnaire. Questionnaire is administered administered on the sample respondents. respondents. How ever there are certain cases cases where personal interactive method is followed with customers to find the satisfaction level.
[67]
[68]
ANALYSIS AND INTERPRETATION
Analysed Survey Report
1. Which of the following Ford car you own? a) Fiesta b) Ikon c) Endeavour d) Fusion
Data analysis: Name of the car Fiesta Ikon Endeavour Fusion
[69]
% of customers 49 27 15 9
100%
Total
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 found that most preferred vehicle
of Ford cars is Fiesta. 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
Interpretation:
No of customers 9 23 13 5
This question is meant to know the customers preferences and likes
towards the cars. From the data we can position position our product to the comfort seeking group of
people. 3. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance
[70]
d) Sound quality e) Brand name
Data analysis: Customers perspective Fuel efficiency Durability Low maintenance Sound quality Brand name
No of customers 2 7 9 12 20
Interpretation: From this question we can position the cars according to the customer’s perspectives .
Many of the the Ford customers customers are buying the cars by seeing its Brand
Nameonly. The no. of customers customers satisfied with the fuel fuel efficiency are very low. low.
4. How did you come to know about this car before purchasing? a) From friends, relatives (buzz) b) Advertisements c) Car experts d) Sale’s persons visit e) Auto magazines
Data analysis: Source of awareness Friends, relatives Advertisements Car experts Sale’s persons visit Auto magazines
[71]
No. of customers 9 25 3 8 5
Interpretation:
Most of the Ford customers came to know about their vehicle through
that attracted the customers customers is television. advertisements only. The major media that
5. Can you share your experience with after sale service support a) Very much satisfied b) Satisfied c) Ok d) Not satisfied
Data analysis: Post service experience
No. of customers
Very much satisfied Satisfied Ok Not satisfied
Interpretation:
6 15 25 4
This question is prepared to know the service levels of the authorized
dealer. Most of the customers are just telling ok about 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
[72]
Data analysis: Place of service At authorized service centre At a local workshop near home
No. of customers 41 9
Interpretation: Most of the Fortune Ford customers are interested to service their vehicles only at the authorized dealers. From this we come to know what the importance of
authorized service centers for car is.
7. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI b) HDFC c) SBI d) others
Name of the bank ICICI HDFC SBI Others
[73]
No. of customers 21 6 20 3
Interpretation: Most of the customers prefer ICICI and SBI banks for taking
financial help while purchasing a car. car. Customers are asking for 0% interest 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
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.
9. To which media do you get expose regularly? a) Televisions b) Magazines c) News papers d) F.M/Radio
[74]
Most of the
Data analysis: media Televisions Magazines
News papers papers F.M/Radio
No. of customers 26 7 16 1
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 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 Entertainment channels
No. of customers 10 16 4 20
Interpretation: This question is meant to know the interests and preferences of customers towards T.V. channels. channels. More than quarter of the sample size showed showed interest
[75]
only on the entertainment channels and next preference goes to the regional news channels. 11. What’s your opinion on the price list of Ford cars? a) Affordable by common man b) Affordable only by rich man c) Cant say
Data analysis: Customer opinion on pricelist of ford car Affordable by common man Affordable only by rich man Cant say
No. of customers 6 42 2
Interpretation: More than 80% of customers think that Ford cars are affordable only
by rich men. These cars are too expensive expensive for an economic/comman 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
[76]
Data analysis: offers Free insurance Special discount on sale of cars Extending the service period Finance availability with 0%
No. of customers 9 3 27 11
interest
Interpretation: By the result of this question we come to know about the various promotional techniques/offers which attract the customers. From the above analysis many customers are expecting the extension in the service period from the various offers
given to them. 13. What more do you expect from your dealer? a) Information about new cars b) Information about service and mileage c) Assistance regarding loans 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
Interpretation:
No. of customers 2 34 4 10
Most of the customers are expecting the information about service
above analysis we come to to and mileageregarding the cars from the dealer. From the above know about the customer’s expectations and their post purchase service demands from
the dealer. [77]
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 Interested in knowing (if I feel a need
No. of customers 11 5 34
of it)
Interpretation:
This question is prepared indirectly to know about the customer’s
opinion about the Data Bank maintenance by the the Fortune Ford. In reply majority of the customers gave a positive reply by showing interest in
knowing about the cars when a
sales person gives a detailed description about the cars.
15. What’s your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer
Data analysis:
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Customer opinion on
No. of customers
ambassador Very necessary Not needed Waste of money for manufacturer
Interpretation:
43 7 0
This question is meant to know about the importance of Brand
Ambassador for a car in the customer’s point of view. Most of the Ford customers think
that a Brand Ambassador is very necessary for promoting a car.
16. What’s your opinion about the previous Ambassador Abhishek Bachan for
the car Ford Fiesta? a) Full filled the purpose b) Unable to attract 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
[79]
No. of customers 38 10 2
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
Interpretation: Most of the customers of Ford suggest a film star as as the best
ambassador. Because many of them get attracted attracted only to their favorite film stars other than other brand ambassadors. ambassadors.
18. What other brand(s) did you seriously consider before making this car purchase? a) Hyundai
[80]
b) Chevrolet c) Maruthi d) TATA e) Toyota
Data analysis: Brand name Hyundai Skoda Maruthi Honda Toyota
Interpretation:
No. of customers 19 12 5 9 5
Most of the Ford customers are opting for Hyundaiwhen they are
asked to consider consider a brand brand other than Ford. Skoda occupies the second place in their
preference.
[81]
SUGGESTIONS
VALUABLE SUGGESTIONS GIVEN BY FORD CUCUSTOMERS:
! !
Please Please try to incr increas easee the the numbe numberr of Serv Service ice cente centers. rs. Keep Service Service Statio Stations ns at main locations locations of the the city, city, like like Banja Banjara ra Hills, Hills, Jubile Jubileee Hills, Begumpet etc., where many customers feel it easy to go to service centers. [82]
!
There There is no proper proper response response from the service service men at service station. station. Please Please recruit efficient service men in the service centers.
!
The servic servicee men in the service service centers centers are unable unable to underst understand and the the problems problems told by us, and they are not resolving the cars problems.
!
Provid Providee infor informat mation ion on serv service ice and milea mileage ge regul regularl arly. y.
!
Please Please provide provide informatio informationn about about new new cars cars along along with with their their price price lists lists at least least once in 6 months.
!
Advertise Advertisements ments through through televisio televisions ns can can influence influence many categorie categoriess of people. people. So try to concentrate on this segment. We don’t see or find much of the Ford car advertisements in T.V except Fiesta.
!
Try to provid providee finan financia ciall facil facility ity at 0% intere interest. st.
!
Customer should be educated about the maintenance of the vehicle. i.e. maintenance tips should be provided.
!
Mileag Mileagee of of the the cars cars is not up to the the expec expectat tation ions. s.
!
Mileage of Fiesta is very worst its giving only 9 to 11 Kms per liter. Please try to rectify it.
!
The qualit qualityy of the sun sun proof proof coatin coatingg used used is of very very low quality, quality, vehic vehicle le colour colour is is getting shaded very quickly.
!
Please Please send send the the speci specially ally appoin appointed ted feed feed back back taking taking staff staff on Sunday Sunday eveni evenings ngs only.
!
The sales sales people people presen presentt in the showro showroom om respon respondd to us proper properly ly when when we we come come to purchase a new car, but they do not respond when we come to tell our
problems regarding the cars.
[83]
Questionnaire
QUESTIONNAIRE: Name : Contact no.
[84]
Address:
E-Mail address:
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) Sale’s persons visit e) Auto magazines
5. Can you share your experience with after sale service support
[85]
a) Very much satisfied b) Satisfied c) Ok d) Not satisfied
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
[86]
11. What’s your opinion on the price list of Ford cars? a) Affordable by common man b) Affordable only for rich man c) Cant say
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 new cars b) Information about service service and mileage mileage c) Assistance regarding loans and insurance insurance d) Understanding Understandi ng 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. What’s your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer
16.What’s your opinion about the previous Ambassador Abhishek Bachan for the car Ford Fiesta ? a) Full filled the purpose
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b) Unable to attract customers c) He was not apt for it.
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
18. What other brand(s) did you seriously consider before making this car purchase? a) Hyundai b) Skoda c) Maruthi 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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BIBLIOGRAPHY
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BIBLIOGRAPHY REFERANCE BOOKS:
MARKETING MANAGEMENT ADVERTISING AND PROMOTIONS
WEBLIOGRAPHY::
www.fordindia.com www.for www. fortune tunefor fordd.com www.wikipedia.com www.google.com
AUTO MAGAZINES :
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AUTOCAR
V.S.RAMASWAMY AND S.NAMAKUMARI GEORGE E.BELCH & MICHAEL A. BELCH
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OVERDRIVE
