Marketing Plan Group Assignment (Phase Three) 10% MRK 200 XX

For Motor !ompan" #"$ri For %s&ape

Group Meme$ers'
(asmine Kuste& Ramon Pinto )o*ang +hou +ang (ue )rett ,-&onnell (oon .oon

Table of Content !o/er Page Ta$le o0 !ontent The %1e&uti/e 2ummar" !ompan" )a&kgroun er !ompan" Mission 2tatement 4ision 4alues 2ituational Anal"sis 6nternal %n/ironment !ompetition %n/ironment %&onomi& %n/ironment !ultural9 2o&ial %n/ironment Go/ernment %n/ironment Te&hnolog" %n/ironment 7 8 8 : ; < 1 2 3 3 5 5

!ompan" ,$=e&ti/es Target 2egment(s) Pro0ile Market 2trategies Figure 1>1 Resour&es

< 11 13 21 27

Marketing Plan Group Assignment The Executive Summary For Motors? through the past 0i/e "ears or so? ha/e $een e1perien&ing i00i&ulties *ith their signi0i&antl" present e&line market share> )eing a ominate pla"er in the auto $usiness 0or o/er a &entur"? For Motors ha/e $een relu&tant to keep up *ith &urrent tren s an e/ol/ing &ompetitors 0rom gro*ing e&onomies> !onsi ering the &ompan"@s e1ternal an internal opportunities? an RA B (resear&h an remarka$le loss> Appl"ing this strateg" to &urrent tren s an inno/ating /ehi&les lea ing us in the ire&tion o0 h"$ri te&hnolog"> Chen e/aluating our strengths an *eakness an appl"ing them to the &urrent opportunities *hile &onsi ering our threats? *e thought o0 &reating a pro u&t respon ing to the gro*ing en/ironmental a*areness tren s &on&erning &ars? *oul hope0ull" regain our past su&&ess> ,ne o0 the $iggest &omplaints regar ing #"$ri s *as the &on ense siDe *hi&h is *here For e&i e to pla&e h"$ri ma&hiner" ire&ting their resour&es to*ar s a more skill0ull"

e/elopment) epartment *oul $e the 0irst step to re&o/ering this

in an alrea " su&&ess0ul skin? the For %s&ape 2E4> This *oul $e the *orl @s 0irst sports utilit" h"$ri on the market *ith an un$eata$le pri&e> 6n this report *e in0orm "ou *ith a &ompan" outline in&lu ing a $a&kgroun er an mission statement> Ce ha/e also pro/i e "ou *ith a 2>C>,>T (strength? *eakness? opportunities an threats) anal"sis *hi&h gi/es "ou an &lear insight an un erstan ing to *h" *e ha/e &hosen the route an o$=e&ti/es *hi&h lea us to the pro u&tion o0 the #"$ri %s&ape> Ce ha/e pro/i e a etaile pro0ile o0 our target segment *hi&h through

their nee s gui elines? in epth? the marketing strategies? implementing a &om$ination o0 the marketing mi1 &omponents an alternati/e strategies>

Company Backgroun er

Brief Company !istory" For Motors? through the past 0i/e "ears or so? ha/e $een e1perien&ing i00i&ulties *ith their signi0i&antl" present e&line market share> )eing a ominate pla"er in the auto $usiness 0or o/er a &entur"? For Motors ha/e $een relu&tant to keep up *ith &urrent tren s an e/ol/ing &ompetitors 0rom gro*ing e&onomies> This has 0or&e For to take ramati& measures $" &utting =o$s an &losing a large num$ers o0 its manu0a&turing 0a&ilities> !onsi ering the &ompan"@s e1ternal an internal opportunities? an ire&ting their resour&es to*ar s a more skill0ull" RA B (resear&h an

e/elopment) epartment *oul $e the 0irst step to re&o/ering this remarka$le loss> Appl"ing this strateg" to &urrent tren s an inno/ating /ehi&les relating to them *ill hope0ull" regain our past su&&ess> Foun e in the Enite 2tates? Mi&higan in 1<03? .une 18th $" #enr" For an ele/en in/estors *ith F2; 000 as starting &apital> !ompan" name' For Motor !ompan" Pu$li&l" o*ne /ehi&le Manu0a&turer )ran ' For ($eing one o0 eight $ran s an three automoti/e ser/i&e pro/i ers) Appro1imatel" 13?000 ealers *orl *i e #ea ,00i&e is lo&ate in Betroit 13: markets *orl *i e

Ma=or &ompetitors' Baimler!hr"sler? Fiat? General Motors? #on a? Gissan? To"ota? 4olks*agen? #"un ai9Kia

Company Mission Statement

Ce are a glo$al 0amil" *ith a prou heritage passionatel" &ommitte to pro/i ing personal mo$ilit" 0or people aroun the *orl > Ce anti&ipate &onsumer nee an outstan ing pro u&ts an ser/i&es that impro/e people-s li/es> The For $ran has al*a"s em$o ie #enr" For @s /ision 0or pro u&ing a relia$le? highH Iualit"? a00or a$le /ehi&les> 6n re&ent "ears the $ran has also taken on the image as a sa0e? ura$le? &om0orta$le an en/ironmentall" 0rien l" automaker> (2) eli/er

#ision' To $e&ome the *orl -s lea ing &onsumer &ompan" 0or automoti/e pro u&ts an ser/i&es>

#alues" ,ur $usiness is ri/en $" our &onsumer 0o&us? &reati/it"? resour&e0ulness? an entrepreneurial spirit> Ce are an inspire ? i/erse team> Ce respe&t an /alue e/er"one-s &ontri$ution> The health an sa0et" o0 our people are paramount> Ce are a lea er in en/ironmental responsi$ilit"> ,ur integrit" is ne/er &ompromise an *e make a positi/e &ontri$ution to so&iet"> Ce &onstantl" stri/e to impro/e in e/er"thing *e o> Gui e $" these /alues? *e pro/i e superior returns to our sharehol ers

Situational Analysis

$nternal Eniviroment" 2trengths Ce ha/e o/er a hun re "ears o0 e1perien&e pro u&tion> Ce pro/i e Iualit"? a00or a$le /ehi&les> Ce inha$it a /alue an ethi&al *orking atmosphere 0or our emplo"ees Ce are a lea ing Ameri&an i&on> )ran 0amiliarit" (promotion strategies) Ce are in/ol/e in numerous so&ial &on&ernsJ 0or e1ample' For s&hools !onstru&tion program (in Me1i&o) Ce are attenti/e to the in&reasingl" en/ironmental issues regar ing /ehi&le pollution> Ceaknesses Be&lining market share> )" 2010? 30 000 =o$s are e1pe&te to $e lost as it trie to a =ust> Ce are making more than the" are selling ue to the in&rease &ompetition &oming 0rom e/eloping &ountries su&h a !hina> Ce *ere /er" slo* in rea&ting to the in&rease &ompetition there0ore &onseIuentl" resulting in pro u&tion loss> Ce ha/e the ol est &ars an tru&ks in the sho*room in &omparison to the other top si1 &ompeting manu0a&turers *ho are inno/ating &ar9tru&ks taking a /antage on the Ameri&an market>

!uts in management

Competition Environment" 2trengths !ustomer lo"alt" (E>2 markets are For s largest &onsumers) The moti/ations o0 the earliest %s&ape ri/ers? espe&iall" the 0a&t that the *ait 0or a To"ota 2E4 h"$ri *as too long? ma" no longer $e as &ompelling 0or some shoppers>

Threats Asian /ehi&le manu0a&turers su&h as #on a? Gissan? To"ota? #"un ai9 Kia ominating the marketsJ pro/i ing high Iualit"? 0uel e00i&ient? lo* &ost automoti/e /ehi&les

Economic Environment" ,pportunities The *orl is e1perien&ing an o/erall e&onomi& gro*th ue to glo$aliDation *hi&h results in emerging e&onomies like !hina an 6n ia? *ho in the past &oul not a00or the lu1ur" o0 o*ning a motoriDe /ehi&le &an no* o so> 6n a ition to e&onomi& gro*th usuall" means a higher stan ar o0 li/ing *ithin an e&onom"? *hi&h also results in greater &onsumer spen ing there0ore opening more markets glo$all"> ,/erall glo$aliDation is opening markets>

Threats %&onomi& gro*th is o&&urring aroun the *orl an is opening the oor to e/ol/ing &ompanies (0or e1ample 0irms in !hina are gaining a &omparati/e a /antage ue to lo* la$our &ost allo*ing them to ha/e greater 0o&us on their RAB? resear&h an e/elopment)> This is a huge

threat to lea ing in ustries 0rom e/elope &ountries> (For in the E>2 /s> #on a in !hina) 6n&reasing 0uel &ost> For $eing a *orl lea er in the tru&k in ustr" no* is e1perien&ing a lo* eman 0or this high 0uele engine (tru&ks)>

Cultural % Social Environment" ,pportunities For &an e/elop tailore &ar9tru&ks a&&or ing to the li0est"le an &ultures aroun the *orl > For e1ample 6t is sai that *omen in0luen&e the o/erall e&ision *hen pur&hasing a relati/el" high &ost househol assets (/ehi&les)J there0ore appealing the pro u&t? ps"&hologi&all"? to the 0emale@s taste &an an *ill &reate a higher eman 0or the pro u&t> A presentl" huge &on&ern in man" nations is en/ironmental issues> Glo$al *arming is s&ienti0i&all" pro/en to $e&ome a sur0a&ing &on&ern 0or the up &oming "ears> Automakers &an look at this situation as an opportunit" $" inno/ating en/ironmentall" 0rien l" /ehi&les i00erent

Gorth Ameri&ans *ant $ig lu1ur" en/ironmentall" 0rien l" /ehi&les> (the onl" h"$ri a/aila$le /ehi&les are small &arsJ *hi&h is a $ig &omplaint)

Threats People are presentl" migrating to ur$an areas unlike earlier "ears *here people *ere oing the opposite *hi&h means the use o0 pu$li& transit an &ar pooling ha/e $e&ome a gro*ing tren *hi&h means the eman 0or motoriDe /ehi&les are at a all time lo*>

Government Environment" ,pportunit"' 6n e/eloping &ountries *here the in&rease presen&e o0 motoriDe /ehi&les emerges? the num$er o0 &asualt" an harm to human in&reases> The Corl #ealth ,rganiDation pre i&ts that roa tra00i& in=uries *ill $e the thir H lea ing &ause o0 eath an isa$ilit" *orl *i e $" 2020> 2a0et" has

$e&oming an all time high &on&ern regar ing motoriDe /ehi&les in the emerging e&onomies> Respon ing to this &on&ern through Promoting sa0e ri/ing in e/eloping nations is one *a" For &an use the situation to their a /antage> Threats Go/ernments en orsing pu$li& transit an &arpooling *ill lo*er the eman 0or in i/i ual &ar o*nerships> Meeting regulations $" the go/ernment 0or e1ample emissions test>

<

!reate regulator" en/ironments go/erning markets an $eha/iors? an esta$lish in0rastru&ture 0or ne* 0uels an te&hnologies

Technology Environment" ,pportunities' inno/ating /ehi&les relating to &urrent tren s su&h as en/ironment issue releasing h"$ri /ersione /ehi&les o0 e1isting popular &ars9 tru&ks to a apt to the in&reasing Koil gapL (see 0igure 1>1 ) Fuel &ell $atteries A /an&e ieselJ impro/e ri/ing &hara&teristi&s &ompare to earlier

generations o0 iesels> Threats' !ompanies e/ol/ing in &hina *ith high te&h? up to ate tren " &ars are ahea o0 the game>

Company &b'ectives !onsi ering the opportunities an threats o&&urring in the present en/ironments an relating them to our &urrent strengths? entering the #"$ri market seems e1tremel" logi&al> )earing in min that arising issue &onne&ting to the #"$ri is the small siDe there0ore *hat $etter *a" to eal *ith the issue than to inno/ate one o0 our e1isting 2E4@s (the For %s&ape)to $e run on ele&tri&it"> Firstl"? it *ill $e the 2E4 #"$ri in the

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*orl market? &reating For a long o/er ue &omparati/e a /antage> 2e&on l"? it is respon ing to the &urrent en/ironmental &on&erns an thir l" it is using re&ent te&hnolog" to a apt to the e&onomi& oil gap> The ne* sport h"$ri *ill pro u&e <: per&ent less h" ro&ar$on an o1i es o0 nitrogen emissions than /ehi&les that meet to a"s nation*i e Tier 6 emissions stan ar > The %s&ape #"$ri uses a K0ullL h"$ri s"stem? *hi&h means that it &an $e po*ere $" the ele&tri& motor alone? $" gasoline engine or $oth *orking together> The %s&ape #"$ri a&hie/es 0uel e&onom" that is 0i0t" per&ent $etter than the &on/entional %s&ape?

Cith in the ne1t "ear? a0ter *e are satis0ie *ith its per0orman&e an 0ee $a&k gathere in the test market? it *ill 0inall" $e release to mass market> The 0ee $a&k *ill also etermine 0uture en ea/ors regar ing impro/ement? targete market an promotions> The ne* integrate stru&ture o0 h"$ri *ill in&lu e a greater emphasis on strategi& marketing an $ran positioning *hile a&&omplishing a *hole ne* market> The %s&apes@ rate o0 su&&ess *ithin a "ear *ill also etermine the reser/e entran&e to the market 0or other For #"$ri inno/ations> This makes #"$ri a raising star o0 the o*n 0alling For !ompan"> 6t-s the hope an tren o0 the 0uture>
M,ur &ustomers are in&reasingl" &on&erne a$out the pri&e o0 gasoline? air Iualit"? oil suppl" issues an the e00e&ts o0 !,2 emissions on &limate &hange> At the same time? the" tell us ho* mu&h the" appre&iate the /ersatilit" an &apa$ilit" o0 our 2E4s> The" on-t *ant to gi/e them up? an *e on-t think the" shoul ha/e to> That-s *h" *e $uilt the %s&ape #"$ri >M (illiam Clay )or * +r,* Chairman an CE&* )or Motor Company -./

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Target Segment-s/ Profile For $eing a manu0a&turer that is o00ering a heterogeneous pro u&t means that their retail eals *ith e1tensi/e pro$lem sol/ing shoppers> )e&ause the %s&ape #"$ri targets a market *here &ustomers are inspe&ting 0or Iualit" an inno/ati/e en/ironmental solutions *hile still attaining a so&ial a&&eptan&e 0itte 0or there li0est"le? the &ustomers are going to o e1tensi/e resear&h $e0ore making a pur&hase making sure it meet all o0 their e1pe&tations> The %s&ape #"$ri gathers man" Iualities9 0eatures to 0ul0ill an go $e"on the nee s e1pe&te o0 their target market> !onsi ering the pri&e (initial &ost plus &ost o0 ne* te&hnolog" F30 000 E2) the targete market o0 the 2E4 #"$ri is mainl" $ase on an upper Iuintile 0amil"? possi$l" a tren o0 t*o in&omes? &onsisting o0 a 0amil" o0 0our or more> An $e&ause o0 the a e Kmore spa&eL 0eatures to the h"$ri market it@s &onsi ere as a lu1ur" asset there0ore to pur&hase this the 0amil" must ha/e a personal is&retionar" in&ome (in&ome le0t a0ter pa"ing 0or ne&essities)> This ne* segment is gro*ing kno*le ge aroun the *orl (the ma=orit" in Gorth Ameri&a) *hi&h is *h" it is /ital 0or our &ompan"@s to respon 0astN Gote' 6n Gorth Ameri&a those age 70 an o/er are responsi$le 0or 70% o0 all &onsumers spen ing? hol the :0% o0 all *ealth? an make 70% o0 all the automo$ile pur&hase> At the same time another &hallenge 0a&ing 0or is ho* little people un erstan a$out h"$ri >

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There0ore 0uture promotional strategies &an $e targete to*ar s a more el erl" population in hopes to raise en/ironmental a*areness in respe&ts 0or 0uture generations> Positioning Map

High Cost

Small Size

Large Size

Hybrids
1> For Escape Low Cost 2> To"ota Highlander 3. Lexus SUV 4. Honda Civic 5. Honda Accord 6. To o!a "irus

Statement" Ce o00er a larger &ar 0or a lo*er pri&e in &omparison to other lea ing h"$ri s>

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Marketing strategies Pro uct ,ur pro u&t? The %s&ape #"$ri ? is pro u&e $" the *ellHkno*n? all Ameri&an reno*ne auto manu0a&turerJ For !o> For %s&ape #"$ri is a mem$er o0 the For 0amil"? entr" mo el o0 the For 2E4s? *hi&h $elongs to the For %s&ape pro u&t line? 0eaturing the remo ele 0uelHe00i&ient? 0ull h"$ri ? /ersion o0 the %s&ape> For @s &urrent tra emark is K$uilt 0or the roa ahea L meaningJ For @s /ision no* is to take en/ironmental issues into &onsi erations $" &reating a pro u&t that &on&erns the 0uture> Oike all For s? %s&ape #"$ri is $uilt to $e tough? an to 0it rough? *hi&h re0ers to the guarantee e1&ellent sa0et" an Iualit" o0 the /ehi&le> The #"$ri %s&ape oes not look an" i00erent than the tra itional gasoline 0uelle %s&ape other than a 0e* su$tle &ues on the e1terior la$eling it as an %s&ape #"$ri (pa&kaging)> 6t@s 0eature in a ro$ust ele&tri& motor an regenerati/e $raking? *hi&h? again? is an en/ironmental &on&erne green te&hnolog"> The ele&tri& motor &an po*er the /ehi&le on its o*n at spee s up to 50 km per hourJ *hen "ou nee to a&&elerate a$o/e that? the gas engine takes o/erJ transition $et*een the ele&tri& motor an gas engine is har l" noti&ea$le> Chen the 2E4 makes a stop? the ele&tri& motor an regenerati/e $raking s"stem &apture energ" that *oul normall" $e *aste J *hen the $rakes are a&ti/ate ? the ele&tri& motor trans0orms the /ehi&le-s momentum into ele&tri& energ"J it is then trans0erre to the $atter" an store 0or later use> The %s&ape #"$ri also pro/i es an option to $e&ome 5CB to make it a

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real 2E4> Cith For ? &ustomers en=o" a nation *i e ser/i&e> 2eeking out alternati/e 0eatures an more e00i&ient *a"s o0 pro u&ing the h"$ri through past pioneering 0irms@ e1perien&es has allo*e us to &reate our &ompetiti/e a /antage *ith inno/ating the 0irst #"$ri sports utilit" /ehi&le a/aila$le on the market *ith an un$eata$le pri&e> (:) Place The istri$ution strateg" 0or the For %s&ape #"$ri is ire&t? keeping &ustomer an &ompan" in &lose relation *hile &utting in &ost9e1penses> )e&ause o0 the &apa&it" an /olume 2E4s an other automoti/e /ehi&les &ontain it is almost impossi$le to store them inHhouse? *hi&h is *h" For pro/i es our o*n retail9 ealership ( ire&t istri$ution)> As the result the 0irm has ire&t &onta&t *ith its &ustomers ensuring the &ompan" that their $ran s are $eing sent? sol an promote $" their o*n at a Iualit" meeting our high stan ar > 60 &hanges are nee e ? the" are in a $etter position than &ompanies *ith a long istan&e &hannel> The marketing mi1 is there$" tailore an a =uste ? *hen nee e ? on a Iui&k response *ithout e1tra a e $others> An a itional positi/e to the ire&t istri$ution *oul $e the &ost> 6t ena$les For to ser/e the target &ustomer at a possi$le lo*er pri&e ue to a lo*er &ost (0ull &ontrol o/er pri&e 0le1i$ilit")> For oes not stret&h

one $ran in or er to gro* an go into segments *hi&h on-t reall" 0it to this $ran > That-s the approa&h goes han HinHhan *ith the istri$ution strateg" *hi&h is that K*here/er there@s a &han&e to o it? *here/er the lo&al situation allo*s it? For *ill go 0or soH&alle &ommon o*nership PAG ealers>L That means that one ealer has 0i/e sho*rooms 0or For @s 0i/e $ran s allHe1&lusi/e? *ith e1&lusi/e sales people? so that &ustomers reall" ha/e a &onsistent $ran representation> %s&ape #"$ri is 0o&using on the

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entr" sport utilit" market> !onsumers no*a a"s? espe&iall" in Gorth Ameri&a? o o*n more than one &ar> The" ha/e a sports utilit" an the" ha/e a sports &ar an ma"$e a se an> That-s a ne* opportunit" 0or the goo ealers $e&ause the ealer no* $uil s up a

/er" &lose relationship *ith his &ustomers> 2o *h" shoul this &ustomer $u" another sports utilit" 0rom another $ran *hen he or she &an 0in a /er" attra&ti/e port0olio *ith the same ealerP For there0ore &an ha/e the right pro u&t 0or e/er" nee an 0or e/er" &ustomer reIuirement> An %s&ape #"$ri is one o0 the out&omes> The &ustomer has thirt" a"s to return the 2E4 #"$ri i0 not satis0ie > As to the *arrant"? the For %s&ape #"$ri o00ers a 3 "ear980Kkm limite *arrant" an roa si e assistan&e? an e/en longer term 0or it@s high /oltage $atter" an &orrosion *arrant"> For in&lu es the *arrant" $e&ause it a s to our &ustomer K&areL image plus &onsumers $u"ing a heterogeneous pro u&t pre0er assuran&e *ithin the 0irst 0e* "ears o0 pur&hase> A loss o0 sale &oul arise *ith this as an a$sen&e> The 6nternet &an $e use 0or istri$ution $e&ause its &an $e another 0orm o0 selling the pro u&t in stea o0 the a&tual ealer> The internet *orks han in han *ith the istri$ution pro&ess> The *e$Hsite links to a page *here "ou &an esign "our o*n %s&ape #"$ri ? "ou &an then sen (/ia 6nternet) "our o*n K e/elope pro u&tL to the &ompan"? 0rom that point the nearest ealership *ill &onta&t "ou an arrange an appointment 0or a test ri/e an 0urther post sale uties> (This &an $e one $e&ause the site in0orms "ou *ith almost the same? i0 not more (&omplete)? in0ormation than an a&tual sales representati/e *oul present "ou *ith? allo*s "ou? the &onsumer? to rela1 in "our home *ithout the in&on/enien&e o0 going out to the ealership numerous times)> This makes the internet the 0irst K&hannelL the &ustomer retreats to $e0ore the a&tual pur&hase *hile

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retaining ire&t &ommuni&ation *ith the &ompan"> The 6nternet &reates a supporting retail metho &reating a straight0or*ar an less time &onsuming means 0or $oth the seller an &onsumer> ,/erall? istri$ution hol s a &onsi era$le high impa&t on the &on&lu ing marketing plan> 6t &an ha/e a negati/e an positi/e a00e&t on the pro u&t itsel0? the o/erall selling pri&e? an the &ontri$ution a e promotional e00orts (personal selling)> 60 the lo&ation oes not rea&h a reasona$le istan&e to the targeting market it &oul lose the pro u&t eman > 60 the istri$ution is in ire&t reIuires a signi0i&ant in/estment? there0ore istri$ution &ost *oul then in&rease? raising the o/erall selling pri&e 0or the &onsumer? an i0 there *ere man" interme iaries in/ol/e *ho *ere also ealing *ith other &ompeting pro u&ers? For ma" not ha/e the a /antage it &urrentl" has o0 gi/ing its pro u&ts the spe&ial emphasis the" *ant>(:) Price The #"$ri %s&ape is a Kne* pro u&tL entering a Kne* marketL &reating the opportunit" 0or the %s&ape #"$ri to attain a 0orm o0 i/erse asset 0rom &ompetitors? *hi&h primaril" *as that *e ha the 0irst h"$ri 2E4> )ut sin&e no matter ho* *e e/elop our pro u&t? it is eas" 0or other &ompetitors to Krepli&aL it an enhan&e itJ there0ore our marketing mi1 *ill ha/e to ensure a &ompetiti/e a /antage through the pri&e (espe&iall" uring the pro u&t intro u&tion an gro*th)> Positioning oursel/es *ith an un$eata$le pri&e an &reating a ps"&hologi&al *ant9nee 0or the pro u&t> ,ur o$=e&ti/e is salesHoriente ? *hile still keeping in min the pro0it margin> Ce are using the penetration poli&" to tr" to sell to the *hole market at one lo* pri&e> ,ur entr"

1:

a ministere $ase pri&e rea&he an attra&ti/e F30? 000? (1)*hi&h 0ollo*s a oneHpri&e strateg"? there$" onl" shi0ting to &ertain &on itionsJ 0or e1ample? on a e 0eatures an is&ount regulations> )e&ause *e@re selling to a target market *here the eman &ur/e is rather elasti& an strong &ompetition is e1pe&te ? this plan is 0airl" =usti0ie > This &an $e pro/en e1tremel" su&&ess0ul i0? uring the intro u&tor" stage? the %s&ape #"$ri *ins o/er a high market share a&&omplishing lea ership an &ompetitors> Oo* pri&es attra&t &ustomersJ there0ore *hen entering the marketpla&e like this reIuires us pri&e our pro u&ts lo*er than the &ompetitors so that our pro u&t *ill &apture the attention o0 the prospe&ti/e &ustomers> %s&ape #"$ri is eli/ere *ith a pri&e that is alrea " &ompetiti/e in the 2E4 market *hile 0urther penetrating it $" o00ering lu1ur" pa&kage is&ounts (i0 a &ertain num$er o0 0eature are a e to the /ehi&le)? e/en &ash in&enti/es 0or pur&hase? is&ounts through the ealers as oneHtimeHuse is&ounts? or limite time o00ers> For 0urthermore? en&ourages &ustomers to make earl" pa"ments> For also is o00ering the DeroHper&ent 0inan&ing 0or %s&ape #"$ri (&ash is&ountJ also state in the promotion se&tion)> Boing this *ill 0urther se&ure a ominan&e in the market> The pri&e is e1tremel" important in the #"$ri %s&ape o/erall marketing mi1 $e&ause ultimatel" &ustomer must $e *illing to pa" the pri&e i0 the remaining 3 P@s *ant to su&&ee > ominan&e o/er inno/ating

1;

Gote' &ustomers &an use the internet as an ai prior the a&tual sale $ut &annot pur&hase the /ehi&le unless a&&ompanie $" a sales rep in the retail outlet> There are e1&essi/el"? man" legal regulations in relation to the 0inal sale o0 an" automo$ile> (:)

Promotion

#"$ri s target a market o0 people *ho generall" most o0ten ask Iuestions or a /i&e *hen satis0"ing their nee ?Qe1tensi/e pro$lem sol/ing shoppersH also kno*n as opinion in0luen&ers> )eing that the" are &urious a$out ne* te&hnolog" an &are a$out the en/ironment than the a/erage &onsumer? the" are *illing to resear&h the pro u&t more an not onl" $e&ause o0 the pri&e> This e1plains *h" high /olumes o0 in0ormation are primaril" generating most o0 their promotional e00orts> As pre/iousl" state in the KPla&eL &ategor"? For @s &hannel o0 istri$ution is ire&t there0ore it is in a $etter position to a apt its marketing mi1 to a more aggressi/e an &ooperating personal selling approa&h> The solution? ealers are $eing e u&ate through a spe&ial &erti0ie program 0or sales an ser/i&e to reall" emphasiDe the ne* %s&ape #"$ri s (an other #"$ri s soon to 0ollo*)> This *ill allo* the pro u&er? through its retail? to a&&uratel" pro/i e in0ormation an &orre&t 0reIuentl" mis&on&eption regar ing the ne* laun&h? *hile ha/ing an e00e&t on a possi$le 0uture prospe&t9&onsumer> 6n a ition to personal selling? For along *ith tra itional e00orts su&h as &ompetiti/e a /ertising $oth ire&t an in ire&t> For instan&e? in ire&t *oul in/ol/e their high e0inition $ill$oar s? magaDines an Iualit" &ommer&ials> Bire&t *oul relate to the For *e$Hsite *here the" ha/e also pro/i e

1<

plent" o0 in0ormation> )e0ore the laun&h o0 the %s&ape? the For *e$Hsite? o00ere &onsumers to sign up 0or the eHne*sletter to re&ei/e the most upHtoH ate in0ormation &on&erning it> This pro/e its su&&ess *hen o/er 30 000 people signe up? :0 per&ent o0 *hom o not o*n an" For /ehi&le pro/ing the h"$ri a great opportunit" to attra&ting ne* &ustomers into the For omain> !urrentl" For is also shooting a link to their home

*e$Hsite title KTruthL *hi&h is a series &omparing its /ehi&les (in&lu ing the %s&ape #"$ri ) *ith other lea ing &ompetitors> 6n respe&ts to sales promotions? For 0urther stimulates interest on the %s&ape #"$ri $" o00ering is&ounts through the ealers? ensuring limite time o00ers? 0or e1ample? the" en&ourage &ustomers to make earl" pa"ments *hile o00ering a DeroH per&ent 0inan&e? 0ree trail runs? har to resists is&ounts on a itional 0eatures an so 0orth> 6n regar s to pu$li&it" 0or ha re&ei/e numerous re&ommen ations on the inno/ation granting them MGorth Ameri&an Tru&k o0 the (earM 0or 2007 0or? Kthe &leanest? most 0uelHe00i&ient 2E4 on the roa L? at the Gorth Ameri&an 6nternational Auto 2ho* in Betroit>(8) Cith all these promotional e00orts? For is &ar/ing its *a" $a&k into the &ompetiti/e market>(:) Alternative Strategies 0, 60 the market potential is o/erHestimate or the un$elie/ing lo* pri&e oes not ominate the market an the ma=orit" targete market &ontinue to $e engrosse to other inno/ating &ompetitors isregar ing the lo* penetrating pri&e &ausing For to $arel" rea&h $reaking point? *ill result in ramati& alternati/e &ounterHplans> For instan&e? pri&e &utting is not &onsi era$le ue to the alrea " lo* pri&e? i0 the &o/er o0 pro u&tion &ost is not $eing a&&ounte 0or? stopping 0a$ri&ation is a reasona$le solution>

20

Furthermore? the amount in/este in this pro=e&t *oul 0urther han i&ap an" alternate solutions that *oul reIuire a itional &apital> There0ore it *oul not $e possi$le &onsi ering the &ompanies &urrent situation> (:) 1, Bis&ontinuing the pro u&t an a the h"$ri (plus the entire RAB) to a more

popular For /ehi&le> This &oul $e another su00i&ient repla&ing plan> (:) 2, Pla" on the &ompetition? pro/oke promotion? inno/ate pro u&t? resear&h on ho* to lo*er pro u&tion &ost *hile pro/i ing $etter Iualit"> 6 $elie/e it *oul $e unattaina$le an i0 a&hie/a$le high &osts *oul $e in/ol/e (not re&ommen e )> This alternati/e onl" shoul $e &onsi ere uring the en o0 its market gro*th an $eginning

o0 its maturit" *hen &ompetitors an other /ehi&les start repla&ing it> (:)

21

)igure 0,0 -2/

22

!omparison *ith &ompetitors (<)

23

POWERTRAIN Engine li!res C linder con$igura!ion Horsepo'er Tor/ue 1 o$ valves Se/uen!ial 2ul!i&poin! $uel in3ec!ion ,eco22ended $uel Alu2inu2 c linder 0loc4 Alu2inu2 c linder head Engine oil cooler 5loc4 hea!er 5a!!er cold cran4ing a2ps 5a!!er a2p hours 5a!!er run do'n pro!ec!ion S!ainless s!eel exhaus! 5a!!er pac4 vol!age 6u20er o$ 0a!!er pac4 2odules Trans2ission -ode selec! !rans2ission 7verdrive "er2anen!l loc4ed hu0s 8rive ! pe 9uel econo2 ci! 9uel econo2 high'a 9uel !an4 capaci!

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e #.3 %&4 (33hp ) 6*+++,"(#4 l0.&$!. ) 4*#5+,"(6 S!andard gasoline h 0rid S!andard S!andard S!andard S!andard 55+ 5#Ah S!andard S!andard 33+ #5+ elec!ronic con!inuousl varia0le au!o2a!ic S!andard S!andard & $ron!&'heel 6.6L : (++ 42 ;.+L : (++ 42 5;.+L

2006 Escape Hybrid Base 4dr 4%4 #.3 %&4 (33hp ) 6*+++,"(#4 l0.&$!. ) 4*#5+,"(6 S!andard gasoline h 0rid S!andard S!andard S!andard S!andard 55+ 5#Ah S!andard S!andard 33+ #5+ elec!ronic con!inuousl varia0le au!o2a!ic S!andard S!andard S!andard all&'heel drive ;.(L : (++ 42 ;.5L : (++ 42 5;.+L

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e 3.3 V&6 #+.hp ) 5*6++,"#(# l0.&$!. ) 4*4++,"#4 S!andard pre2iu2 unleaded S!andard S!andard S!andard & & & & S!andard #.. & con!inuousl varia0le au!o2a!ic S!andard S!andard S!andard all&'heel drive ;.5L : (++ 42 ..(L : (++ 42 65.+L

'('PEN'ION ) HAN#*IN+ 9our 'heel independen! suspension 9ron! an!i&roll 0ar ,ear an!i&roll 0ar "o'er s!eering ,ac4 and pinion s!eering Allo 'heels 9ron! !ires ,ear !ires <heel si=e

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e S!andard S!andard S!andard S!andard S!andard S!andard #35 : ;+T,(6.+ #35 : ;+T,(6.+ (6>

2006 Escape Hybrid Base 4dr 4%4 S!andard S!andard S!andard S!andard S!andard S!andard #35 : ;+T,(6.+ #35 : ;+T,(6.+ (6>

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e S!andard S!andard S!andard S!andard S!andard S!andard ##5 : 65S,(;.+ ##5 : 65S,(;.+ (;>

OFF-ROA# ,APABI*IT-

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e

2006 Escape Hybrid Base 4dr 4%4

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e

25

Approach angle 8epar!ure angle @round clearance A2inB ,a2p 0rea4over angle Load $loor heigh!

#( deg #? deg #(522 A..5>B #( deg .6(22 A33.?>B

#( deg #? deg #(522 A..5>B #( deg .6(22 A33.?>B

& & (.522 A;.3>B & &

BO#- E.TERIOR 6u20er o$ doors "o'er door 2irrors Hea!ed door 2irrors 8oor handles 5u2pers ,ear s!ep 0u2per ,oo$ rac4 ,oo$ rac4 load 5od side cladding

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e 4 S!andard 7p!ional 0od &colour 0od &colour S!andard S!andard 454g S!andard

2006 Escape Hybrid Base 4dr 4%4 4 S!andard 7p!ional 0od &colour 0od &colour S!andard S!andard 454g S!andard

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e 4 S!andard S!andard 0od &colour 0od &colour S!andard S!andard 454g &

,ON/ENIEN,E FEAT(RE' Air condi!ioning Undersea! duc!s Speed con!rol "o'er 'indo's (&!ouch do'n ,e2o!e 4e less en!r %llu2ina!ed en!r ,e!ained accessor po'er Til! s!eering 'heel 8a &nigh! rearvie' 2irror 8river vani! 2irror "assenger vani! 2irror 9ron! cupholder ,ear cupholder 7verhead console 7verhead console s!orage 8river door 0in "assenger door 0in Sea!0ac4 s!orage poc4e!s Loc4ing glove 0ox 8riverCs $oo!res! (#V 8C po'er ou!le!

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard 7p!ional 7p!ional S!andard S!andard S!andard S!andard S!andard (

2006 Escape Hybrid Base 4dr 4%4 S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard 7p!ional 7p!ional S!andard S!andard S!andard S!andard S!andard (

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard illu2ina!ed S!andard 3

27

'EAT' AN# TRI0 -ax sea!ing capaci! 9ron! sea!s "o'er driver sea! 9ron! cen!re ar2res! ,ear sea!s Spli! $olding rear sea! ,eclining rear sea! 9loor 2a!s Carpe!ed cargo space Cargo cover Cargo ligh!

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e 5 0uc4e! S!andard S!andard spli!&0ench S!andard S!andard S!andard S!andard 7p!ional S!andard

2006 Escape Hybrid Base 4dr 4%4 5 0uc4e! S!andard S!andard spli!&0ench S!andard S!andard S!andard S!andard 7p!ional S!andard

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e 5 0uc4e! & & spli!&0ench S!andard S!andard S!andard S!andard S!andard S!andard

ENTERTAIN0ENT FEAT(RE' A-:9- radio Casse!!e C8 pla er -"3 capa0ili! ,adio da!a s s!e2 Spea4ers

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e S!andard & S!andard S!andard S!andard 4

2006 Escape Hybrid Base 4dr 4%4 S!andard & S!andard S!andard S!andard 4

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e S!andard S!andard S!andard & & 6

*I+HTIN+1 /I'IBI*IT- AN# IN'TR(0ENTATION Aero&co2posi!e headla2ps 9ron! $og ligh!s Cen!re high 2oun!ed s!op ligh! Varia0l in!er2i!!en! 'ipers ,ear 'indo' 'iper ,ear 'indo' de$ros!er 9ron! reading ligh!s Tacho2e!er Vol!2e!er Lo' !ire pressure 'arning Trip co2pu!er Cloc4 Service in!erval indica!or

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard in&radio S!andard

2006 Escape Hybrid Base 4dr 4%4 S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard in&radio S!andard

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e & S!andard S!andard S!andard S!andard S!andard S!andard S!andard & S!andard S!andard in&dash S!andard

'AFET- AN# 'E,(RIT-

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e

2006 Escape Hybrid Base 4dr 4%4

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e

28

A5S 0ra4es 4 'heel disc 0ra4es 8ual $ron! i2pac! air0ags 7ccupan! sensing air0ag Heigh! ad3us!a0le $ron! sea!0el!s Sea!0el! pre!ensioners 3 poin! rear cen!re sea!0el! Side i2pac! 0ars "o'er door loc4s Tailga!e:rear door loc4 included 'i!h po'er door loc4s ,e2o!e 4e less en!r ,ear child sa$e! loc4s %gni!ion disa0le Securi! s s!e2 "anic alar2

S!andard S!andard S!andard S!andard S!andard $ron! S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard

S!andard S!andard S!andard S!andard S!andard $ron! S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard S!andard

S!andard S!andard S!andard S!andard S!andard $ron! S!andard S!andard S!andard S!andard S!andard S!andard S!andard & S!andard

WARRANT5asic 'arran! "o'er!rain 'arran! Corrosion per$ora!ion 'arran! ,oadside assis!ance coverage H 0rid elec!rical co2ponen!s 'arran!

2006 Escape Hybrid Base 4dr Front- !ee" #ri$e 36 2on!hs : 6+*+++42 36 2on!hs : 6+*+++42 6+ 2on!hs : unli2i!ed dis!ance 36 2on!hs : 6+*+++42 ?6 2on!hs : (6+*+++42

2006 Escape Hybrid Base 4dr 4%4 36 2on!hs : 6+*+++42 36 2on!hs : 6+*+++42 6+ 2on!hs : unli2i!ed dis!ance 36 2on!hs : 6+*+++42 ?6 2on!hs : (6+*+++42

2006 Hi&!"ander Hybrid Base 4dr A""- !ee" #ri$e 36 2on!hs : 6+*+++42 6+ 2on!hs : (++*+++42 6+ 2on!hs : unli2i!ed dis!ance 36 2on!hs : 6+*+++42 ?6 2on!hs : (6+*+++42

Resour&es 1>http'99***>0or >&om9GR9r onl"res9eI25/&e7k*31Is51:l=:k2*&r1u5p5nu3ioul"7/sIklta8m8i *8alDl7:i"1lu$euk8"/k=&h5eIaok25*/gu"=uka9topi&sR10H3:>p 0 2> http'99me ia>0or >&om9arti&leR ispla">&0mParti&leRi S21333 3> http'99mone">&nn>&om920089019239ne*s9&ompanies90or R&losings9 5> http'99***>theauto&hannel>&om9ne*s9200390591:917<81;>html 7> http'99***>geo/i&>net9uploa s9#"$ri %204ehi&les%200inal%202007%20up ate>p 0 8> http'99***>0or /ehi&les>&om90eatures9ne*s9 etail9in e1>aspPi S1585 :> )asi& Marketing A Glo$alH Managerial Approa&h ;> 2007 For %s&ape #"$ri Pri&e A Re/ie* (http'99auto>&onsumergui e>&om9auto9ne*9re/ie*s90ull9in e1>&0m9i 93;0709)

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