Ford Motor Company Deidre Hoefner Tanweer Akhtar Manish

Ford Motor Company Deidre Hoefner Tanweer Akhtar Manish K Lal Aug. 24 2006

Agenda o o o o o Introduction Marketing Mix Product Line Product Development Strategy Competition POP / POD CRM Social Responsibility Way Forward

Ford: The Company o Vision: “To become the worlds leading consumer company for automotive products and services. ” o Mission Statement: “To provide safe, reliable, and personal transportation around the world. ” o Market Share: 16% of the US market and 10% of the European market. o Brands: Ford, Mercury, Mazda, Jaguar, Volvo, Lincoln, Land Rover, Aston Martin.

Ford: History o o o o o Founded in 1903 in Detroit Family owned business Launched very popular Model T in 1908 First moving assembly manufacturing process Very successfully mass marketed Model T Lost market to GM and Chrysler during 1920 s by neglecting consumer demands Introduced Ford Escape Hybrid in 2004 Redesigned Mustang including 60’s retro style in 2005 “Way Forward” : Attempt to align production capacity and fixed costs with projected market share in 2006

Marketing Mix o o Particular set of marketing tools used by a company By “mixing” these, a business can work to achieve marketing objectives Four basic tools are usually available: Product, Price, Place and Promotion These are also known as the 4 Ps

Marketing mix: 4 Ps / 4 Cs Four Ps o o Product Price Place Promotion Four Cs o o Customer solution Customer cost Convenience Communication

Product Line SUVs Sports Cars Trucks Luxury Cars Convertibles Midsize Cars Vans & Minivans Wagons Small Cars

Niches within SUV Market Segment Lincoln Navigator Ford Explorer Sports Cars Trucks Luxury Cars Ford Expedition Mercury Mountaineer Convertibles Vans & Minivans Wagons Midsize Cars Ford Excursion Small Cars

Product Length / Width / Depth Product Line Length Product – Mix - Width

Product Development Strategy o LOW COST OF OWNERSHIP n n o Initial price Fuel consumption Reliability Serviceability CLEAR PRODUCT SUPERIORITY n n n Appearance Comfort Features Ride and Handling Performance

Competition o o No. 2 US auto maker Competition from foreign car makers Losing market share to rivals ( 15. 6% now) Leader in Trucks in US Market

POP / POD o POP n n n o Major category player Improve parity in hybrid cars Create parity for flex fuel vehicles POD n n n Over 100 years of legacy An “American” car company Provides safe, reliable, and personal transportation

CRM The Customer is Job 1 at Ford

CRM Acquiring right customer SAS platform Crafting right value proposition Data modeling: understand treat customers Instituting best processes Product development strategy Motivating employees Empower front line employees, KMS Retain customers Customer defection, retention, & satisfaction

Social Responsibility Ford is serious about making the world a better place. That is why empowering people is regarded as a high priority and one of our major goals. n n Education Conservation AIDS awareness Community action

Way Forward o Efficient and effective to compete in the market o o o New series compact cars Brand consolidation “American value” Associate quality with Ford brand Reduce manufacturing cost Cutting edge technology / User friendly web site