ADV425 Mid-Term Presentation on FordPresentation Transcript
Ford Motor Company Lauren Buskirk
American car company founded by Henry Ford in 1903
4th largest automaker based on worldwide sales
#2 seller of automobiles in the U.S.
Tough competitors - GM, Toyota, Volkswagen, etc.
Based in Dearborn, MI
Largest family-controlled company in the world
Ford’s Recent History
Trouble for Ford in 2006…
Toyota passed Ford in U.S. sales
Faced lower sales & declining margins
Rising spending on health care & retirees
Lost $12.6 billion dollars
Reconstructing plan involving shedding 1/3 of labor force
Raised $23.6 billion in loans
Put up many of its most cherished North American assets up for collateral
Including the cherished Ford logo
Economy was healthy
However, Ford believed the money would give them “a cushion to protect for a recession or other unexpected event.”
What was then seen as an act of desperation - Now, salvation.
Ford in 2007 & 2008
Profited in 2007, but due to foreseen losses began negotiating the sale of luxury brands
In 2008, due to biggest sales slump in decades Ford lost $14.6 billon
Worst in Ford’s history!
Yet, they did not need federal aid
During a time of crisis throughout the auto industry in recent years, Ford has emerged as the sole American automaker in a position to survive the steepest sales downturn in decades without a government bailout.
Ford Today Cont’d
Sales by Ford grew 15.2% in 2010 - even though they sold Volvo & closed Mercury
Increased market share for second consecutive year
Shifting away from trucks and moving towards small cars
Ford Today Cont’d
In February 2010, Ford outsold GM - which hadn’t happened in more than 50 years.
Focus on core brands
Sold off luxury brands - Jaguar, Land Rover, and Volvo
Ford must work to convince consumers to buy Ford trucks and cars over the competition.
I evaluated how Ford can work to survive and thrive by using the Social Marketing Theory .
Social Marketing Theory
Consumers decide if they should or shouldn’t buy a product by weighing the cost of the product against the benefit of the product.
Cost < Benefit
The benefits of choosing Ford must out weigh the costs consumers endure by choosing Ford.
What must Ford do?
Ford needs to prove to consumers they are the top choice in the automobile industry. They need to convince consumers to buy Ford trucks and cars over their steep competition in order to survive.
How will they do this?
Ford’s Mission Statement
We are a global, diverse family with a proud heritage passionately committed to providing outstanding products and services that improve people’s lives.
Strong after sales customer service focus
Improving the quality control and output of parts
Creates strong product and brand loyalty
“ Redefining the Small Car”
Ford Fiesta = Best 2011, 40 hwy mpg
EcoMode, EcoRoute, EcoGuide
Modifies driving habits to achieve maximum fuel efficiency
Creates cars that consumers need - not just want!
Practical & cost effective
The Ford Fiesta is the only car of its size to earn top safety ratings.
Ford is working on making safer smaller cars.
Great crash-test results
Creates differentiation, which holds potential to set them apart from competition
Family company looking out for the safety of families
Higher resale values for cars than other companies’ cars
Innovative technology - loans gave them an advantage over GM to get ahead technologically
Getting more for your money!
Convince skeptical consumers that they should trust in Ford
Using the voice of the consumer to market their products
Excellent spokesperson = Mike Rowe
Strong advertising campaign
Building a warm, approachable and trustworthy character that exemplifies the Ford brand
B) Building a more meaningful experience - redefining
Broader look at consumers’ lifestyles
Understand the value of technology that’s integrated into our everyday lives
Voice-activated SYNC/MyFord Touch feature
C) Capitalizing on renewed American pride
Ford is smartly leveraging the revival in American pride that is sweeping the country
Positioning itself as an example of your pride for being American
Strong consumer focus
Ford’s Use of Social Media
People trust corporations less - use other people through word of mouth creating trust
Run competitions getting consumers involved
Ex: Selected 100 “socially vibrant” individuals to drive a Ford Fiesta for 6 months
Implement multiple Social Media channels to create digital buzz
Got Any Major Issues?
Ford deals with steep competition daily - both national and foreign
Consumers reality of fuel economy
Perceptions aren’t always accurate
Selling luxury brands decreases brand diversity
If Ford does not succeed at convincing consumers to buy their products over the competition they will…
Sell less cars
Less profit & revenue
Competition will prosper
Loss of loyalty to American/Ford cars
Loss of jobs
Decrease in market share
Inability to advance
Lack of new technology/cars (can’t keep up with competition)
Extinction of the Ford brand
Great reputation as an American company - easily recognizable
Known for having reliable vehicles
Lack of need for government bailout helped company improve reputation and gain new customers
Sales grew in 2010 - hope!
Strong social media presence
Competition doesn’t have to pay as much for insurance or retirees
Having to sell some of their brands due to recession
Consumers’ impression/mindset that Ford may be less reliable or fuel efficient than foreign cars
Improved image due to not taking bailout money
Invest in and produce cars with new technology - fuel efficient/hybrids
Joint ventures with other major competitors to combat recession
Showcase/broadcast their community involvement more
Rapids changes in fuel prices
Government regulations outside of the U.S.
Due to economy it’s tough to please their investors and employees