Professional Documents
Culture Documents
Project On Ford Motors
Project On Ford Motors
Project Report
ON
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 submitted in the partial fulfillment of 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.
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
objectives and goals. To maximize the profits and longterm 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 companys customer relationship-building
goals by itself. It must partner closely with other departments in the company and with other
organization throughout its entire value delivery network to provide superior customer
value and satisfaction. Thus marketing calls upon everyone in the organization to think
customer and to do all they can to help build and manage profitable customer relationship.
Marketing is all around us, and we need to know that it is not only used by manufacturing
companies, wholesaler and retailers, 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.
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 is to do it. This is nothing but
strategic planning.
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
[4]
conditions.
In this direction, our study deals only with the marketing strategies i.e.
OBJECTIVES
[5]
Secondary objective:
To know whether the customers are satisfied with the offers given by the dealer.
[7]
INTRODUCTION TO AUTOMOBILE
IINDUSTRY
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 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 of 1012%.
[8]
The Japanese and later Korean auto industries were also highly
protected in their formative years but they 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 industrys history was
written by Maruti. It marked the Indian government getting into the far business in the early
1980s, a radical shift in thinking after decades of treating cars with disdain. The Maruti 800
went on to become the staple 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 wasnt till 1993 that things really started to change for the Indian car buyer. With
the liberalization of the economy, a host of international carmakers rushed in. But most of
them were in for a shock as Indian customers rejected their product. Indian customers
refused to allow the glitter of prestigious brands blind them to the outdated and overpriced
products they were offered. The Indian consumer wanted super value, and rewarded the
brands that delivered it, handsomely. Hyundai and Maruthi delivered, and profited.
The period also saw the emergence of the Indian players like Tata Motors and
Mahindra & Mahindra. They rose to the challenge of the MNCs and responded brilliantly
with the Indica and the Scorpio. This was ironically due to the license raj that forced Indian
[9]
carmakers to be innovative and develop products frugally. Indias frugal engineering skill
has now caught the worlds imagination, and an increasing number of carmakers are
preparing to setup major capacities here.
Indiais changing. And changing fast. Its moving forward. Indias largest-selling car
is not its cheapest car, the 800. It is the Alto. Peoples aspirations are rising and so are their
mistakes, have got their finger on the pulse of the market. Get the right product and the
rewards are handsome.
The Indian auto industry is today bubbling with promise and confidence. Its been a
long journey but to see where the Indian car industry is going. We have to see where it has
been.
Mahindra & Mahindra set up factories in the 1940s for progressive manufacture rather than
assembly from imported components. The cars 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 down on imports and foreign investments. Companies like
GM and Ford packed their bags and left. Indias clock, thereafter, stood still while the world
raced on ahead. It would take nearly 50 years before the Indian auto industry could catch up
with the rest of the world again.
[10]
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 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.
Except for MUL, which had direct access to policy-makers, every other manufacturer still
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 Victor in 1985, transplanted its
turned out as the Mark III. The Mark IV, launched in 1979, was the last of the Mark cars.
The Ambassador Novawas launched in 1990, followed by Ambassador 1800
ISZ three years later. The Nova was the last Ambassador powered by the 1489cc petrol
engine. In 2004, HM launched the cosmetically-revised Ambassador 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 Hindustan Contessa, launched in 1982, was one of the few luxury cars
manufactured in the country in the 1980s and 1990s. It was based on the 1970s vintage
Vauxhall victor. While it was initially launched with the 1489cc engine found in the
Ambassador, the Contessa was soon given the 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 out by the demand for 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 countrys first aircraft factory Hindustan
Aeronautics Limited and the countrys first modern ship yard, Hindustan Shipyard Limited
[12]
Millicentoin 1954. In sep 1964, PAL and FIAT launched the Fiat 1100 DELITE in India.
The biggest customers for PALs were Bombays taxi drivers. The Padminies were
easy for maintenance in terms of spares and labour cost, low on running cost, easy to drive
TATA Motors:
Established in 1945, Telco or the Tata Engineering and Locomotive Company, as its
full name suggests, started out making steam locomotives for the Indian Railways. Telcos
tryst with vehicle manufacture came in 1945 when it signed a 15-year agreement with
time.
Telcos biggest triumph came in 1985 in the LCV 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. The 407 immediately captured 70 per cent of the
market.
The TATA SUMO, launched in 1994, turned out to be the success story of the decade.
The Sumo was conceptually a brilliant vehicle.
[13]
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 saw the company exit its joint
venture with Daimler-Benz. In 2002, Tata launched the Indigo saloon, based on the Indica
platform. On 29 July 2003,J R D Tatas birth anniversary, the company was renamed Tata
Motors Limited. The Tata juggernaut continued to roll across the Indian auto industry with
the launch of the Indigo Marina in 2004.
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. The Scorpio has played a critical role in changing the
perception and brand image of the country. The 2.6 litre turbo-diesel engine developed
109bhp. The Scorpio has been the vehicle of M&Ms change, from a utility vehicle-maker to
MARUTHI:
It began with the promise of being the Peoples Car. The car never went into
production and the company went belly-up in 1977. Six years later, it rose like a phoenix
from the ashes and changed the Indian automotive sector forever. The company Maruthi
Udyog Limited. The story of Maruthi dates back to the 1970s. Indira Gandhi was the prime
minister of India. Her son, Sanjay Gandhi, envisioned the manufactured of an indigenous
cost-effective, low-maintenance compact car for the Indian middle-class. The Cabinet passed
a unanimous resolution for the development and production of a Peoples Car. The name
[15]
Maruthis first customer as he received the keys of his Maruthi 800 car from Prime Minister
Indira Gandhi. The car cost Rs.48,000. The new Maruthi, launched in June 1986, cost
approximately Rs 15,000 more than the outgoing model.
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
2006
Maruthi SX4
2007
2007
The other cars which have their share in the Indian Auto Mobile industry
are:
The Indian auto industry has exploded in the last 14 years. And car markers are
learning some very hard truths. While the economic reforms process was kicked of f in
[16]
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 companys 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. The most preferred partner was an existing
automaker. In 1994-95 saw the announcement of quite a few JVs.
Premier and Peugeot to form PAL-Peugeot.
GM and CK Birla to form GM India.
Mercedes Benz and Tata Motors.
M&M and Ford to form Mahindra-Ford India.
In 1995, the government announced its decision to allow foreign auto companies to
enter with a 100% stake or wholly-owned subsidiaries. This changed the 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
[17]
[18]
COMPANY PROFILE
[19]
Ford Motor Company is an American multinational corporation and the world's third
largest automaker based on worldwide vehicle sales.
In 2006, Ford was the second-ranked automaker in the 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 $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 any other
automaker.
Based in Dearborn, Michigan, a suburb of 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 and Land Rover of the UK, and Volvo of
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, especially elaborately engineered manufacturing
sequences typified by moving assembly lines. Henry 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 by 1914.
History
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. During its early years, the company produced
just a few Model 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 Depression. The largest family-controlled company in the
world, the Ford Motor Company has been in continuous family control for over 100 years.
[21]
Corporate governance:
Members of the board as of early 2007 are: Chief Sir John Bond, Richard Manoogian,
Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), Edsel
Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr., John L.
Thornton and William Clay Ford (Director Emeritus).[8]
The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG)
and Ford of Europe), Mark Fields (Executive Vice President, President [The Americas]),
Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice
President, President [International Operations]) and Michael E. Bannister (Group Vice
President; Chairman & CEO Ford Motor Credit).[9]. Paul Mascarenas (Vice President of
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 plant. After meeting initial success, sales of the
Marajmalaingar plant near Chennai and by now, the company had parted ways with M&M
and was renamed Ford India Ltd in 1998. The Ikon was the first model by a multinational to
be developed specifically for India. Though it was based on the 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.
gradually decline. After the arrival of the modern and highly-capable Fiesta, another madefor-India car, with state-of-the-art engines, the Ikon has been marginalized. The Fiesta has
[22]
SUV. In 2004, Ford launched the Fusion, which has received a 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.
known and
reputed families in
Hyderabad, the
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 youth and
energy of the youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world
competitive rates.
[23]
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.
[24]
5.Full range of
colors
models to choose
and
from.
6. A good stock
of
Ford
genuine
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]
On September 11, 2000. Ford India launched the Ford IKON SXi the stylish josh
machine
2001
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, 3rd edition on March 21, 2002 Ford India received the QS
9000 award from TV Sddeutschland.
2003:
The New Ford Ikon NXT launched - The Next Level of Josh.
Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study.
FORD Motor Company of Southern Africa achieves three wins and two seconds on
this year total economy run
DOE AWARDS FORD two grants for vehicle fuel efficiency research .
[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.
[28]
PRODUCT PROFILE
Fusion:
[29]
PRICE(lacs)
6.59
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]
Endeavour:
PRICE(lacs)
(4X2)
(4X4)
16.16
17.17
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]
Fiesta:
Displaceme cc
1388
1596
1596
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.
Nm/rp 127/400 146/340 146/340 160/200 160/200 160/200
[32]
Torque
m
Emmision
Compliance
Transmission Type
Kerb Weight (Kg)
MaxSpeed (Kmph)
Mileage
0
0
Bharat Stage III
5 Speed Manual
170/178
14.75/13.6
Ikon:
PRICE(lacs)
5.50
Engine:
Type
Fuel system
Displacement (cc)
Max. Power (ps/rpm)
Max. Torque (Nm/rpm)
Transmission Type
[33]
978
148
10.8
Mondeo:
PRICE(lacs)
6.59
Engine:
Engine type
Displacement
[34]
Max. power
Max. torque
Compression ratio
Valves
Fuel injection
Emission level
Construction
Transmission Type
Kerb Weight (Kg)
MaxSpeed (Kmph)
Mileage
[35]
200
8.6
SOURCE OF DATA
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 of the firm/business unit. The marketing 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 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, 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 mission statement.
Marketing
Strategy and
analysis
Target marketing
process
[37]
Market planning
program 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
Target
marketing
Target
distributi
on
Cons
ume
rs
Busi
ness
es
Adver
tising
Direct
marke
ting
Intera
ctive
marke
ting
Sales
Purchase
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 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.
combined with all other program elements in such a way as to achieve maximum impact.
targetmarket.
It needs to be
clarified at the outset that market targeting is not synonymous with market segmentation.
Segmentation is actually tee prelude to target market selection. One has to carry out several
tasks besides segmentation before choosing the target market.
Through segmentation, a firm divides the market into many segments. But all these
segments need not form its target market. Target market signifies only those segments that it
wants to adopt 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 that are not so sizeable.
There may be segments assuring immediate profits and the ones that call for heavy
[39]
investments in market development. There may also be segments that show great potential,
but display tough barriers to entry. As such, the question, which segment/segments, the firm
should select as its target market, assumes crucial importance.
STRATEGIC MARKET SEGMENTATION:
Market Segmentation is dividing up a market into distinct groups 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 firms
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 using several relevant bases. For example, demographic
characteristics of consumers, such as age, sex, income/purchasing capacity, education level
etc, form one base for segmentation. Geographic characteristics constitute 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 for the brand. It facilitates the brand to 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 consumers. The significance of product positioning
can be easily understood from David Ogilvys words:
depends less on how we write your advertising than on how your product is positioned.
Definitions of product positioning:
Sengupta, in his book Brand Positioningsays, The aim of product positioning is to create a
perception for our brand in the prospects mind so that it stands apart from competing
brands we must cover that space in the consumers mind as if we had won a long-term
lease. We must find a strong position in that mind 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 that the brand holds in the consumers
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 need is it trying to meet?
What other product categories serve this need? In other words, what are the
substitute products that serve the same need?
Where is the real gap, where is such a new offer most welcome and wanted by
the market?
What are companys competencies to fight here?
ISSUES IN BRAND POSITIONING:
[42]
Differentiation and Positioning discusses the multifarious issues involved in the subject.
PRODUCT REPOSITIONING :
Products do undergo repositioning as they go along their life cycle. In some cases,
even products that are fairing 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 new features or it is 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 organizations communications with the market The basic tools used to
[43]
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 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
for companies, whose products and services are targeted at mass consumer markets.
It is a very cost-effective method 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
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 in real
time. Unlike traditional forms of marketing communications such as 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. In addition to the Internet, other forms of interactive media 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 consumer and can stimulate immediate sales,
sales
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. It usually comes in
the form of a news story, editorial or announcement about an organization and its products
and services. Like advertising, publicity is not directly paidfor by the company.
[45]
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 in which a seller attempts to assist
and persuade prospective buyers to purchase the companys product or service or to act on an
idea. Unlike advertising, personal selling involves direct 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 customers reactions.
Not only will he take due not of them, he will ensure that his marketing mix suits the
environmental 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 mix of the firm. The marketing mix is the sole vehicle for 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, promotion and pricing. It can also be seen that in each of these
elements, there are several sub-elements. For example, 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 described the marketing manager as a mixer of ingredients. To quote
him, `The marketing man is a decider and an artist a mixer of ingredients, who sometimes
follows a recipe developed by others and sometimes prepare his 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 mix in terms of the four Ps.
Product
Place
Price
Promotion
[47]
combinations is, in fact immense. As a result, business firms are able to employ an
abundance of strategies and strategy stances in their relentless race to stay ahead of
competition. However, a close scrutiny will reveal that all these 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.
the targeted profits. They elbow out competition with the cushion they enjoy in the matter of
pricing.
Price route requires cost leadership,evidently, a firm opting for the price route will
have to have a substantial cost advantage in their operations. It should be enjoying an 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 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.
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.
[50]
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,
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.
Price-Offs Offer:
Price-off offers refers to offering the product at lower 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.
leader firms.
factors:
1. The market leader firms might attract the provisions of various anti-trust
legislations.
profit margin.
HARASSMENT STRATEGY:
[52]
The market leader firm will resort 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 firm, sometimes it might put
pressure on distributors not to carry the competitorsproduct. The salesman of leader firm
might speak negatively about competitors. It may also try to hire away the better executives
of an aggressive firm.
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 the intensity of attack. Any attack is likely to hurt profits.
But the defenders form and speed of response can make an important difference in the
profit 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 ones
territory.
2. Flank Defense:
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 the leader. Preemptive defense assumes that an ounce of
prevention is worth more than a pound of cure.
4. Counteroffensive Defense:
Most market leaders, when attacked will respond counterattack. The leader cannot
remainpassive in the face of a competitors price cut, promotion blitz, product improvement,
or sales territory invasion. The leader has the strategic choice of meeting the attacker
frontally, maneuvering against the attackers flank, or launching a princer movement to cut
off the attacking formation from their base operation.
5. Mobile Defense:
Mobile defense involves more than the leader 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 recognize that they can no longer defend all the territory. Their
focus are spread too thin, and competitors are nibbling away on several funds. The 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 of distribution, cost cutting 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 valued of the offer and 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.
[54]
[55]
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]
Family car segment: These cars forms a reasonably sizeable 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 buyers who need a real 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 a big vehicles.
And these cars are also useful for sport riding and even on hill areas. There body is designed
similar to offroad vehicles, which can withstand to Indian roads.
FORD ENDEAVOUR occupies this segment.
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 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 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 and watching televisions. While travelling from their
home to office, moving on their business activities they may watch these hoardings. These
hoarding are especially setup at the road signal stops.
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 towards its old customers. To retain the old
and existing customers it 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.
Corporate sales: A special team of sales executives are sent to some big corporate
sectors and there they personally meet the heads of the organizations like C.E.Os,
Managersetc., and explain about the vehicles and the offers and
special schemes
provided by the dealer to them on bulk purchase of the vehicles and try to promote the
regarding the vehicle and also their post sale service 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.
The Sales faculty is clean, tidy and inviting, making customers comfortable while
purchasing products and availing services.
Customers are courteously acknowledged within two minutes of their arrival and are
advised that a Sales Consultant will be available upon request.
The Sales Consultants appearance and dress will be of the highest standards.
Using a check list, the Sales Consultant delivers the vehicle in perfect condition when
promised.
Customers will be contacted within one week after delivery to ensure total
satisfaction.
An efficient service facility allows a customer to avail all the service provided by
Fortune Ford, in a clean and welcoming environment.
Customers are courteously acknowledged within two minutes of their arrival and
the write-up will begin with five minutes.
[60]
Service needs are courteously identified, accurately recorded on the repair order
and verified with the customer.
All service repair work will be followed up within five working days.
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.
Extended Warranty:
[63]
RESEARCH METHODOLOGY
[64]
It is also known as the pure fundamental research, which refers to those studies, sole
purpose of which is the discovery of new information. It is conducted to extend the 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 applied research 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 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 the basis of the major purpose 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. 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.
[67]
[68]
% of customers
49
27
15
9
100%
Total
Interpretation: This question is meant for taking the informationregarding the most
preferred car in the Ford cars. From the above graph it is found that most preferred vehicle
Interpretation:
No of customers
9
23
13
5
towards the cars. From the data we can 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 customers
perspectives.
Many of the Ford customers are buying the cars by seeing its Brand
Nameonly. The no. of customers satisfied with the fuel efficiency are very low.
4. How did you come to know about this car before purchasing?
a) From friends, relatives (buzz)
b) Advertisements
c) Car experts
d) Sales persons visit
e) Auto magazines
Data analysis:
Source of awareness
Friends, relatives
Advertisements
Car experts
Sales 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
advertisementsonly. The major media that attracted the customers is television.
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
Very much satisfied
Satisfied
Ok
Not satisfied
Interpretation:
No. of customers
6
15
25
4
dealer. Most of the customers are just telling okabout the service. Only a very few customers
are very much satisfied with the service. Even some of the customers are not satisfied with
Data analysis:
Place of service
At authorized service centre
At a local workshop near home
Interpretation:
No. of customers
41
9
vehicles only at the authorized dealers. From this we come to know what the importance of
[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. Customers are asking for 0% interest on financial
help provided by the banks.
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.
Most of the
Data analysis:
media
Televisions
Magazines
News 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
Interpretation:
No. of customers
10
16
4
20
customers towards T.V. channels. More than quarter of the sample size showed interest
[75]
only on the entertainment channels and next preference goes to the regional news
channels.
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 for an 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.
Data analysis:
Expectations of customer
Information about new cars
Information about service and mileage
Assistance regarding loans and
insurance
Understanding customer needs
No. of customers
2
34
4
10
Interpretation: Most of the customers are expecting the information about service
and mileageregarding the cars from the dealer. From the above analysis we come to
know about the customers 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 in knowing (if I feel a need
No. of customers
11
5
34
of it)
Interpretation:
opinion about the Data Bank maintenance by the Fortune Ford. In reply majority of the
customers gave a positive reply by showing interest in
Data analysis:
[78]
Customer opinion on
No. of customers
ambassador
Very necessary
Not needed
Waste of money for manufacturer
Interpretation:
43
7
0
Ambassador for a car in the customers point of view. Most of the Ford customers think
16. Whats your opinion about the previous Ambassador Abhishek Bachan for
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:
Ambassador Abhishek Bachan for the car Ford Fiesta full filled the purpose and he was
able to increase the sales of the cars Fiesta.
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 staras the best
ambassador. Because many of them get attracted only to their favorite film stars other
than other brand 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 a brand other than Ford. Skoda occupies the second place in their
preference.
[81]
SUGGESTIONS
Keep Service Stations at main locations of the city, like Banjara Hills, Jubilee
Hills, Begumpet etc., where many customers feel it easy to go to service centers.
[82]
Please
The service men in the service centers are unable to understand the problems told
by us, and they are not resolving the cars problems.
Please provide information about new cars along with their price lists at least
once in 6 months.
Mileage of Fiesta is very worst its giving only 9 to 11 Kms per liter. Please try to
rectify it.
The quality of the sun proof coating used is of very low quality, vehicle colour is
getting shaded very quickly.
Please send the specially appointed feed back taking staff on Sunday evenings
only.
The sales people present in the showroom respond to us properly when we come
to purchase a new car, but they do not respond when we come to tell our
[83]
Questionnaire
QUESTIONNAIRE:
Name :
Contact no.
[84]
Address:
E-Mail address:
e) Auto magazines
5. Can you share your experience with after sale service support
[85]
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]
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
[88]
BIBLIOGRAPHY
[89]
BIBLIOGRAPHY
REFERANCE BOOKS:
MARKETING MANAGEMENT
ADVERTISING AND PROMOTIONS
WEBLIOGRAPHY::
www.fordindia.com
www.fortuneford.com
www.wikipedia.com
www.google.com
AUTO MAGAZINES:
AUTOCAR
[90]
OVERDRIVE
[91]