Ford motor company is a United States global leader in automobile manufacturing. The company manufactures in 6 continents in the world, with the highest number of factories in Europe. Products in the stable of Ford Motor company include; the Mondeo, Jaguar, Landrover, Focus, fiesta models and the Aston Martin brands. In the United Kingdom alone, Ford has about 14,200 employees on her book and has consistently been the leader in car sales for the past 28 years. Major products include passenger cars, buses and vans, trucks, sport utility vehicles, after sales vehicle parts and products and also extended repair service products. Services rendered by Ford motors also include maintenance and vehicle repair services, retail financing, financial services, third party claim management services and wholesale financing.
Ford Motors is a global family that has a proud heritage and is passionately committed to providing mobility for millions of people around the globe. Customer needs are anticipated which results in delivery of exceptional products and services to improve their lives.
Description of the existing situation including target market
The effects of the global economic crises between 2008 and 2010 spilled into the automobile industry. The industry was hit massively with declining sales which resulted from the increased fuel prices and the recession majorly. Consumers shifted their focus from the high fuel consuming cars made by the giant American car manufacturers (Ford, General motors and Chrysler) to the smaller, more fuel efficient and cheaper Asian cars. A lot of jobs were lost and these companies ran at a low. They all required either bailout from governments of their home countries, mega loan from banks, mergers and acquisitions to stabilise. The fog hanging over the global automobile industry is beginning to clear as improved sales is being recorded as a result of the improving economy. Presently, the automobile industry is witnessing the green revolution. Hybrid and electric cars are being produced by different car manufacturers now.
SWOT analysis is the strategic method of planning used to evaluate Strengths, Weakness, Opportunities and Threats in a business venture.
STRENGTHS
They are the characteristics of Ford that places it at an advantageous position over others. Ford company has a very strong brand name and portfolio which has positioned it at a strategic position in the market. Also, the company is endowed with a robust engineering capability. She has a wide range of distributors and dealers whose excellent marketing drives have increased their sales. The company has high employee productivity.
WEAKNESS
Ford automobile has experienced continued decline in automobile market share. Cars produced by Asian manufacturers, especially the Japanese cars have taken over the global automibile market. The cars are smaller, they are more fuel efficient and relatively cheaper compared to the heavier, fuel guzzling sports utility vehicles and trucks produced by Ford. Repeated product recall has placed blemishes on the company's image. In January 2005, Ford had to recall about 792,000 sports utility vehicles and pickup trucks due to fire risk from overheating speed control switch. In addition weak returns and a declining operating efficiency all contribute to the company's weakness.
OPPORTUNITIES
Opportunities abound for Ford in emerging economies. Such places include China and India where with improving economies and purchasing power of the citizens, there is a growing trend to acquire some of Ford's luxury cars. Due to the increasing preference for cars with little or no emission, demand for hybrid cars is on the increase. Hybrid cars are environment friendly, are fuel efficient and come with electric engines. Also, an increased demand for vehicles that operate on dual fuel is an exciting opportunity for Ford.
THREATS
Increasing prices of raw materials like hot rolled steel coil and crude oil has been on the increase steadily. Increasing crude oil prices has also caused an increase in polymer prices. All these will definitely affect the company's profit margins. Also, Ford is experiencing a continual fall in the United States light vehicle market. The main competitors are the Japanese cars like Toyota, Honda and Nissan. Their continued capture of the automobile market could spell doom for Ford in the nearest future. Also, Ford has a low capital spending compared to these Japanese competitors. Ford's capital spending which includes research and development expenditure is low compared to Toyota and Honda's. For instance, Ford's capital spending was $1,766 per vehicle, Toyota was $2,937 per vehicle and that of Honda was $3,193 in 2010. In addition economic stagnation in the United States and the Euro zone coupled with regulations and restrictions by the European Union are all monumental threats to the continued success of Ford automobiles.
Outline a marketing strategy and marketing Mix for Ford’s new product.
Ford needs to practise market expansion which seeks to increase growth with the new product and at the same time increase sales with existing products.
Increasing sales with the new product through updating and modernising old models of their cars and refining other methods of rendering services. Also, new products that are extensions of past products or introducing new products entirely.
Marketing Mix
PRODUCT
This new product that was produced having in mind the needs and expectations of the consumer.It is small, stylish, comes in beautiful colours and its performance is high. It is a hybrid car that utilises an electric engine, environment friendly, consumes low fuel and it is relatively cheap. It is assumed that the lovers of this product are passionate football lovers.
PRICE
Pricing is a critical factor in the success of this product in the market. Though cost of production is on the increase, Ford practices the non-price competition system. Hence, the price of this product will also be determined by the pricing of other similar products in the market.
PLACE
Ford relies on the popularity of football globally for the marketing of her products. Hence, the sponsorship of the UEFA Champions league. This singular act brings the champions league viewers to appreciate the product and ultimately purchase it. Also, dealership across Europe is second to none. Prospective buyers can therefore, walk up to any Ford dealer, view the car, order for a test drive and then purchase the car.
PROMOTION
Like for previous products, the pan-European promotional strategy will be utilised. This strategy is bound to retain loyal customers and also attract new customers. Awareness about this product is increased and sustained among the target audience. Also, the idea of sponsoring the champion’s league will do this product a lot of good. The exciting characteristics of the car are continuously highlighted during each advertisement.
The sponsorship strategy of Ford is to capture the attention of the millions of football viewers all over the world by associating the champions league and Ford products. Ford products are depicted as exciting, stylish and strong. Sponsoring the champions league grants her below the line and above the line promotional placement.
In addition, Ford seeks to brand herself. A strong brand name will always be advantageous anytime, irrespective of whatever product is on sale. Once Fords name is synonymous with style, power excellence and quality, then sales will be boosted automatically.
Marketing strategist is referring to the promotional strategies and the modes of advertisement.
It is therefore recommended that Ford should continue its sponsorship of the champion’s league and also seek ways to reposition herself in the global automobile market.
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