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ADV425 Mid-Term Presentation on Ford
 

ADV425 Mid-Term Presentation on Ford

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    ADV425 Mid-Term Presentation on Ford ADV425 Mid-Term Presentation on Ford Presentation Transcript

    • Ford Motor Company Lauren Buskirk
    • Ford’s Background
      • 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
    • Ford’s Response
      • 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
    • Ford Today
      • 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’s Survival
      • Ford must work to convince consumers to buy Ford trucks and cars over the competition.
      • How?
        • 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.
    • Quality
      • Well-built
      • Reliable
      • Strong after sales customer service focus
      • Improving the quality control and output of parts
      • Creates strong product and brand loyalty
    • Fuel Efficiency
      • $3.56 gallon
      • “ 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
    • Safety
      • 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
    • Value
      • 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!
    • Ford’s Success…
      • 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
    • Ford’s Success…
      • 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
    • Ford’s Success…
      • 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
          • Without flag-waving
        • 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
    • Communications Implications
      • If Ford does not succeed at convincing consumers to buy their products over the competition they will…
    • Communications Implications
      • 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
    • Strengths
      • 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
      • Family brand
    • Weaknesses
      • 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
    • Opportunities
      • Toyota’s recalls
      • 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
    • Threats
      • Rapids changes in fuel prices
      • Government regulations outside of the U.S.
      • Strict competition
      • Due to economy it’s tough to please their investors and employees
    • Ford’s Strategy
      • Innovation
        • Rise above the competition
        • New ideas/technology - Be the first!
        • Create added value to consumers
      • Lineage
        • Family-owned company
        • Years of experience
        • Stuck by their employees and shareholders