Ford Company Marketing Plan
Ford imagined cars being an affordable item rather than a luxury in the near future by changing the manufacturing procedure. The success of Ford Motor Company was because its’ strategy involved an innovative way of manufacturing called mass production. The company utilized advancements in technology, the supply chain and most of all variations in the publics lifestyle. Ford’s personal motto, Help the Other Fellow’, affected his goals, work atmosphere and the business policy of the Ford Motor Company (“Ford Slideshows”, 2013).
Ford Today Today’s Ford still employs all of Henry Ford’s beliefs into its existing corporate strategy. Ford is known for constructing the average man’s car concentrating on reliability and quality. Ford is now a leader in innovation in the automobile industry second to BMW. Energy efficient efforts, future safety features and technology constant effort into community activities directed through the Ford Motor Company Fund and Community Services is one of many ways Ford displays its participation to ad values for a safe and healthy atmosphere for the local communities.
Ford holds these values as the utmost importance; as far as the corporate strategy, research and leading advancements in safety and energy saving features and is deemed to be genuine and dependable. Strategic Focus and Plan As stated on the Ford Motor Company website: Mission One Team “People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction”.
Assertively restructure to operate profitably at the current demand and changing model mix ;Hasten development of new products our customers want and value ; Finance our plan and improve our balance sheet Work together effectively as one team One Goal “An exciting viable Ford delivering profitable growth for all” (“Ford Slideshows”, 2013, p.4)
Vision Anticipated Actions Ford Functional and Technical Excellence
Have a passion and the knowledge for our business and our customers ; Demonstrate and build functional and technical excellence ; Ensure process discipline ; Have a continuous improvement philosophy and products .Working Together ; Believe in skilled and motivated people working together ; Include everyone; respect, listen to, help and appreciate others ;Build strong relationships; be a team player; develop ourselves and others ; Communicate clearly, concisely and candidly Role Model Ford Values initiative, courage, integrity and good corporate image. Show improve quality, safety and sustainability ; Have a can do, find a way attitude and emotional resilience ; Enjoy the Journey and each other; have fun – never at others’ expense Deliver Results ; Deal positively with our business realities; develop convincing and complete plans Set high potentials and inspire others ; Make sound decisions using facts and data Hold ourselves and others responsible and accountable for delivering results and satisfying our customers strives to achieve the following goals.
Nonofficial Goals Goals Ford
- Retain spot as global market leader with over 100 plants and 280,000 employees worldwide
- Sustain profitability and rank as Number 1 US auto Company
- Introduce 2013 models into Chinese, European and US markets
- Enter and better logistics, distribution and control
- Succeed at all implementation factors
- Build awareness and increase sales of all Ford Hybrid automobiles
Financial Goals
- Increase market share from 16. 7% of the market to by 2013
- By 2013 Ford hybrid sales should increase over 100%
- Sustain 50% increase of new car sales through 2013 (Ford increase new car sales of 40% on April 1, 2010) 4. Push industry hybrid sales to increase 10% annually
Core Competencies
- Provide high quality automobiles for the average middle class citizen in the global market
- Satisfy every customer’s need and demands with the right car and safety features
- Continue to invest in safety features and environmental benefits
- Deliver end merchandise to consumers faster by improving the delivery and manufacturing yester.
PEST Analysis
The political environment is broadening more with each election, with so many groups asking for favors, operations at Ford has been difficult for a company that tries to attract people from all types of backgrounds. Read about lean production vs mass production
When the 2008 financial crisis occurred; Ford Motor Corporation was the only automobile company that did not take funds from the government, which included a lot of tax breaks. On the other hand, the other Big Three automakers Coos came to Washington for help. Ford was able to win political capital; see its share of the U. S. Racket increase, seen its stock increase six-fold since 2008, and was able to hire workers in a recession (Swanson, 2010).
Economic
Ford continues to face a number of challenges, including ongoing economic uncertainty, rising fuel and commodity costs, and the need to reduce CA emissions. In addition, growing worldwide sales volumes, particularly in developing markets, are raising concerns about traffic congestion in major cities (Ford. Com 2011). Ford recognizes the importance of a competitive global strategy and diverse revenue base. Our goal is to do more than simply grow globally, and the opportunities for global Roth have never been greater. Dynamic growth markets including Brazil, Russia, India and China, and an emerging middle class worldwide, gives them the opportunity to reach more customers with the products people want to buy and be a true global manufacturer (Ford. Mom 2011). Ford is still fighting the ramification of the financial crisis that ended up hurting the global economy, even though the unemployment rate has started to drop, and the economy is slowly starting to turn around. Ford sales is off to a strong start this year, with Fusion and Escape delivering January sales records and F-Series seeing a particularly strong reception this early in the year, 2013 will be a great year. Ford’s investment in fuel-efficient new vehicles – including Caboose engines and hybrid technology will pay-off (autistics. Com 2013).
Social and Cultural
Serving the communities is an important part of contributing to a better world. That’s why in 2011, Ford Motor Company Fund and Community Services continued its support of non-profit organizations in three major areas: innovation and education, community development and American legacy, and auto-related family of electrified vehicles. They have plans to triple their production capacity for electrified vehicles in North America. Ford wants to offer their customers a variety of choices to meet their different needs (corporate ford. Com 2011).
Ford is building these products in factories that are lean and clean. Between 2000 and 2010, they cut energy use at their global facilities by 40 percent, CA emissions by 49 percent and water use by 62 percent. A number of the facilities use power from solar panels, hydro-electricity, geothermal, and wind (Ford. Com 2011).
Technology
Ford’s commitment to the environment extends even beyond their products. Whether planting trees or helping to renew the public parks, Ford is working to make communities cleaner. Ford now offers in the U. S. The battery-powered Focus Electric sedan and the Ford Fusion Hybrid.
When Ford introduces the C-MAX Hybrid, C-MAX Energy plug-in hybrid, and Fusion Energy plug-in hybrid they will be putting the technology of the future into the vehicles of today. Ford recently added their new 0-liter Caboose three-cylinder- the smallest engine Ford has ever built – and will offer in the future an all-new eight-speed automatic transmission (corporate ford. Com 2011).
Ford SWOT Analysis
Strengths
Fuel-efficient cars to versatile utility vehicles and durable trucks, Ford offers a full line of high-quality products with global appeal. New Fusion Energy sedan is Ford’s newest plug-in hybrid – capable of making trips of up to 620 miles without having to stop for gas or to recharge the battery when starting with a fully charged battery and full gas tank (NASDAQ. Com, 2013). Ford Motor Company’s January U. S. Sales increase 22 percent, with gains across the lineup – cars up 34 percent, utilities up 23 percent, and trucks up 11 percent. Fusion up 65 percent versus year-ago levels – a record January sales month. Escape has best January sales ever – sales increase 16 percent, topping last year’s January record. Explorer sales up 46 percent – best January sales since 2005.
America’s best-selling pickup, for 36 years running, the Ford F-Series, begins 2013 with a 22 percent increase versus last January . Ford continued to strengthen their balance sheet in 2011, which was a milestone year for them. Increased automotive gross cash, reduced debt and improved liquidity. Announced 2011 profit sharing and resumption of quarterly dividends An analysis of 2010 year-end automotive- loyalty rates by the Polk automotive research firm found that people who own or lease a Ford vehicle replace it with another at a rate of 60. 3%. Ford is the fifth largest automotive manufacturer in the world, the fourth largest in the United States.
Weaknesses
Ford work is cut out for them in Asia, even amid strong U. S. Sales; they could not overcome weak performances from the company’s Asian and European divisions, like their competitors which includes Toyota, Honda, and Ionians. Their 57 percent America, Ford’s largest and most profitable market (Schoenberg, 2012). Ford had o payout, part of its required $859 million payment to a union health-care fund in stock, which could be seen as a weakness in the shares as the U.S. Auto sales recovery stalls. Global warranty spending decreased by 4 percent in 2011 compared to 2010. Warranty spending increased in North America and Asia Pacific and Africa from 2010 to 2011 by 14 percent and 8 percent respectively but decreased in Europe and South America by 21 percent and 1 percent respectively. Ford’s North America location has experienced problems due to the new entertainment and communication technologies and transmission issues. Ford faces legal action room several different class action lawsuits.
An Ohio State court has alleged Ford breached its sales and service agreement with its truck dealers by failing to publish all price concessions that were approved for any dealer. (Data Monitor – Ford Motor Company, 2011). Over mileage claims for two new hybrid models are “false and misleading” (Sensitive, 2012). Ford’s large pension obligations could threaten their profits and gains that they have reported over the past year, including increases from car sales, could be wiped out if the costs associated with their pension obligations are not reined in ( Seeking Alpha, 2012).
Opportunities
With the increasing; Ford is scheduled to come out with the new “bobcat” engine that variably blends gasoline and ethanol on demand to realize diesel-like performance (Levine, 2009). Improving Ford’s global market following a record December month, and full-year sales performances, Ford Thailand carried its momentum forward to start the year as strong demand across the Ford lineup helped deliver the company’s best-ever January sales performance (Levine, 2009). Ford expects to increase their global market growth in Asia and Africa by 70 percent in the next ten years.
They plan on doing this by building seven new plants, five in China and two in India as part of their plan to have production capacity of 3 million vehicles in the region by mid-decade (Ford Corporate, 2011). Fusion Energy sedan is Ford’s newest plug-in hybrid will help Ford to compete with Honda Accord, Toyota Pries Peeves. Ford’s Energy is capable of making trips of up to 620 miles without battery and full gas tank (Nasdaq, 2013). Ford employees support projects that benefit the people and families in need in the United States.
They have renovated shelters, painted schools, and helped cleaned up the environment. With one in four adults in the United States living more sustainable lifestyles, Ford is taking a more sustainable approach to their vehicle interiors. Fords designers and researchers are designing vehicles interiors to include suede-like material created from recycled plastic pop bottles and seat fabrics, made with 100 percent post- consumer yarns and developing green approach in Ford vehicles. (Ford Media, 2010).
Threat
Rising fuel costs could affect the sales of new vehicles. Slow auto sales, due to buyers being hesitant to borrow in an economy with high unemployment rate. The National Highway Traffic Safety Administration investigation into Chevy Volt battery fires could potentially threaten the whole car industry. During crash testing by the National Highway Traffic Safety Administration, they discovered fires in Chevy electric versions (Mueller, 2011). Ford has issued recalls on several different models of vehicles over the past years, which has had an impact in several different divisions that has affected the Ford brand throughout several countries.
Ford announced a recall January 1 1, 2013 of 450,000 older model minivans and Subs for risks from fire and loss of power. The affected vehicles are the 2001 and 2002 Ford Escape compact SUB, and the 2004 and 2005 Ford Freest and Mercury Monterey Union problems could affect Fords image if the minivans (money. CNN. Com). Teamsters Union ever strike, because Ford does not have a deal that mirrors union concessions at GM and Chrysler (Mueller, 2011). The economic downturn could drain Ford’s cash reserves, heavy losses in Europe continued to undercut its strong performance in the North American market.
Ford reported a flat profit in its third quarter of 2012, Ford, the automaker, stated that it earned $1. 63 billion in the quarter marred with $1. 64 billion in the same period the previous year. (Anytime, 2012). Ford’s survival is linked to the wellbeing of GM and Chrysler. They use many of the same suppliers that Ford uses. If General Motors and Chrysler fail, their suppliers may go bankrupt as well, which will create difficulties for Ford to get parts (Times, The Industry Analysis 2011). The outlook for the automotive industry remains challenging.
However, based on the progress Ford is making and the product portfolio they have coming, Ford believes they are starting to write an exciting new chapter in Ford history (Ford Along with Ford, car makers such as General Motors and Corporate, 2011). Chrysler have been making headlines in the past few years over the lack of demand and sales results of large vehicles. Since the mid-sass high oil prices has caused many consumers to shift away from high fuel dependent vehicles like Subs and Hummer’s that the US automakers were producing to lighter and more compact cars.
Sales of the larger cars dropped dramatically as more and more people preferred the smaller and more fuel efficient Japanese cars to the more high powered American ones (franchisee. Com). As fuel prices remain high and there is greater concern or the environment, the auto industry will focus more on energy efficient cars. Moreover, as part of their bailout specifications, the Big Three automakers are required to quickly release more energy efficient vehicles to the market.
If Ford wishes to remain competitive in the auto industry, they will need to stop the losses they are experiencing from the recent recalls. The Fusion Energy sedan is Ford’s newest plug- in hybrid, this vehicle will help Ford to compete with Honda Accord, Toyota Pries PHEW Since a market segment consists of consumers who respond similarly to a firm’s marketing efforts, those individual segments must be further evaluated by using a process known as target marketing. This process allows Ford the ability to determine which segments to pursue (Grew, PhD & Levy, PhD, 2011).
Once established, Ford will implement the positioning strategy through different means of messaging and media. The following steps are used: 1) Determine consumers’ perceptions, and evaluate Ford’s products in relation to their competitors’. This is an ongoing. 2) Ford identifies their competitors’ positions. This is an ongoing. 3)Determine consumer preferences. This is an 4)Select the position for each segment. This step includes adjustments ongoing. Eased on the ongoing analysis of steps 1 through 3. 5) Monitor the positioning strategy. Ford is striving to enhance the customer driving experience. They must understand consumer preferences in order to accomplish this task. For example, Ford’s “SYNC” multimedia system allows voice control of some mobile APS while driving and using a supported smartened. Tactics Marketing Program Strategy and The Ford Motor Company is a United States based global automotive manufacturer.
The company has business manufacturing operations in six continents. In Europe alone there are 35 manufacturing plants strategically located within nine countries. The Ford ‘family’ of vehicles includes the Jaguar, Landholder, Volvo and Gaston Martin brands, as well as the Monde, Focus and Fiesta models. The Ford brand is renowned. Its company logo identifies this brand all over the world. Ford has been the leader in new car sales in the United Kingdom market in new car sales for over 28 successive years.
Ford excels in both the personal car and commercial vehicles markets. It offers a variety of vehicles from vans for commercial use to the smaller Ford Focus. The Ford Focus is one of the most popular and best- selling vehicles in the world (The Times 100, 2013). Product Ford produces a wide range of vehicles; each is targeted towards a particular part of the total market: the very small Ford vehicles are aimed at different nonusers than the larger, more luxurious Ford vehicles.
The features, size, style, image, colors and performance of these vehicles all appeal to diverse sectors of consumers in the new car market. In developing new products, Ford considers the needs of different types of consumers. All products, whether they are physical things, or services, are developed with different types of needs in mind. This is a key part of meeting the needs of the automobile market. Through research, Ford knows what a large percentage of target customers are looking for, and will purchase.
