Only for Educational Purposes

1. The Drivers
Lydia
Muhammad Ashraf Danish
Noor Hafiza
Nor Ermi Diana
Nur Shazreen Nadia
Wan Norafidah

2. The CompetitorThe Company The Content
The Customer The Marketing Strategy
CONTENT

3. The Company
By Muhammad Ashraf Danish

4. Ford’s vision statement is “people working together as a
lean, global enterprise for automotive leadership.”
The Company
Ford’s mission statement is
“One Team. One Plan. One Goal.”

5. Produce a car that meet market demand – Young market
1. Sporty
2. Small
3. Four seated
4. Fair-size trunk
5. Inexpensive

6. MUSTANG
1. Fuel Efficient
2. Cheaper
3. Sporty Design
4. Able to accommodate
small family (4 seated)
The Company
1. Well Established
2. Bright & Creative Young people (Talented)
1. Mustang lost its identity
(design, Not a sleek horse)

7. The Content
by Nor Ermi Diana

8. POLITICAL SOCIAL TECHNOLO
GY
ECONOMY
2 main forces to drive into market

9. DRIVING FORCES THAT TRIGGER TO ENTER INTO MARKET!

10. POLITICAL SOCIAL TECHNOLO
GY
ECONOMY

11. POLITICAL &
GOVERNMENTALTax Policy State / federal regulation Political instability in a foreign partner country New employment laws
Opportunity
The New York World’s Fair
The World’s Fair which was to open in New York
in April, 1964 would provide a dramatic showcase
for the premier showing of the new car.
A good time to create advertising and promotional
plans

12. POLITICAL SOCIAL TECHNOLO
GY
ECONOMY

13. Income Influences
The increase in multiple-car ownership was a
natural result of the growing affluence of the
nation. More people were enjoying higher
income. Market research indicated that the
number of people earning higher incomes
would continue increase, and this forecast also
was borne out by events.
ECONOMY
Slower economic growth Changes in % rate Changes in spending pattern Exchange rate % rate % rate
Opportunity

14. The unfavourable
economic condition
• 1Q of 1964 marked the highest level of auto
sales in history
• Congress was about to enact an income-tax
cut & disposable income was on the rise
• By all things considered, the national mood
reflected high confidence and optimism.
ECONOMY
Slower economic growth Changes in % rate Changes in spending pattern Exchange rate % rate % rate
Thread

15. POLITICAL SOCIAL TECHNOLO
GY
ECONOMY

16. SOCIAL
Increase in level of education New attitudes towards life Population Growth Rate Shift in religious orientation
Phenomenal of sociological impact
• Customer Empowerment - The Economic Power of Young Generations
• Customization (everyone must be satisfy) - To understood what young people wanted
• The symbol of status and prestige for consumers on that particular of time : Looking at the first
impression which lead to stylish, elegant yet reasonable price.
• Customers demand buyers still interested in a fine small car.
What are buyers looking for?
• The small car segment of the market grew from 23% to 40%
• Sales of compacts doubled between 1967 and 1972
• 1972 marked the first sales decline for economy imports, but luxury imports were enjoying record-
breaking popularity
• Sporty compacts (Mustang and the competitors it drew, Firebird, Charger, Camaro and Javelin)
were becoming less popular while sporty subcompacts were enjoying growing sales; this was true
especially with the under 35-age group that was increasing its percentage of the total number of
buyers

17. SOCIAL
Increase in level of education New attitudes towards life Population Growth Rate Shift in religious orientation
Opportunity
The State of The Market
• Millions of young people would enter the automobile market as customers in the 1960’s – youth
was casting a ballot for a car with a sporty flair
• The trend toward higher education – the young buyer was going to be a better educated buyer –
the significance of this development is shown in the correlation between education and car buying
• The influence of woman a substantial factor in the growing number of multiple-car families, since
they generally made the most use of the second car- the car should be small and maneuverable,
one would handle park easily, a small, specialized vehicle.

18. POLITICAL SOCIAL TECHNOLO
GY
ECONOMY

19. TECHNOLOGY
Automated process in the industry Rate of innovation
Opportunity
And the process by no means halted with Henry
Ford I. So the next invention that followed upon
his innovations provided synchro-mesh gearing
for these new motorised vehicles – and that
change itself occurred within the diachro-
mesh process of shared adaptations, major and
minor, that were being developed, sustained,
transmitted and revolutionised through time.

20. The Competitor
by Noor Hafiza

21. MUSTANG’S COMPETITOR
FORD MUSTANG
1. Price
$24,700 - $47,070
2. Engine
Regular Unleaded V-6
3. Standard seating -
4
CHEVROLET CAMARO
1. Price
$24,700 - $43,400
2. Engine
Gas V-6
3. Standard seating -
4
DODGE CHALLENGER
1. Price
$27,990 - $38,990
2. Engine
Regular Unleaded V-6
3. Standard seating -
5
BMW
1. Price
$30,000 - $50,000
2. Engine
Twin Power Turbo
3. Standard seating -
4

22. Sources: Final
Scoring,
Performance Data
and Complete Specs
- SHELL

23. The Customer
by Lydia

24. Segmentation
• Younger generation
- economic power of young generation
- college-educated people bought cars at higher rate
• Families (two-cars families)
- with the 2nd car is smaller and more sporty
• Women
- preferred small cars
- easy handling
• Single people
- increasingly represented among new car buyers
- preferred smaller and sporty cars compared to married
people

25. Motivation
• Political aspect
- JFK’s era as quoted by usatoday.com as “It was a short
tenure but long enough to redefine American style and
inspire new generation”.
- the economic condition was had become unusually
favorable
- the Fairlane committee was aware about the economic
power of young generation in terms of their demand to the
market and buying power

26. Motivation
• It was a ‘youth era’
- research shown in the article that there will be more young people than
ever before and that determined the new car looks i.e. sporty and
distinctively styled
- understood what young people wanted i.e. a small car but not too small,
light performance and simple to maneuver, easy to identify and unlike
anything else on the market
- market researchers confirmed that the youthful image of the new decade
had a firm basis in demographic reality

27. Motivation
• Changing market for new cars
- enormous growth in two-car families for Americans where
they will have the second car typically smaller and more
sporty than the first.
- at that era, Americans would have more money to spend on
transportation and entertainment
- by looking at the Falcon’s sales figure, it is proved that
customers were starting to order such options as automatic
transmission, white-wall tires, and more powerful engines
- consumer were beginning to look beyond the austere and
the purely functional to consider more sporty and luxury
models

28. The Marketing Strategy
by Nur Shazreen Nadia &Wan Norafidah

29. MARKET SEGMENTATION
Segmentation decision based on:
1. Demographic Segmentation
ü Age
- Young people who wish to buy inexpensive sports car
- Older car buyers consider to buy more sporty and luxury model
2. Behavioural Segmentation
ü Lifestyle
- Growth in two-car families (second car typically smaller and more sporty)
- Growing number of cars were being bought by women (small cars)
- Single people choose smaller and sportier model
- College-educated people

30. SEGMENTATION STRATEGY
Mass-Market Strategy
ü Design a single product-and-marketing program that will appeal to the
largest number of customer
Ø Appeal several market at once
Ø At least one Mustang in every Ford dealer’s showroom
Ø Few weeks test drive by the editors of college newspapers
Ø Giant 70 car Mustang rally
Ø Mass advertisement :
- full-page ads in 2600 papers
- blanketed tv network with Mustang commercials
- ran hard hitting national promotion programs
- displayed Mustangs in 15 of the country’s busiest airports and in the
lobbies of 200 Holiday Inns
- Direct mail to small car owners across the country

31. BRAND POSITIONING
Determinant attributes:
1. Features
ü Great styling
- look beyond the austere and the purely functional to consider more
sporty an luxury
- research showed that youth would exercise an importance influence in
shaping car design
ü Strong performance
- 36% of all persons under 25 liked the four-on-the floor feature, the 4 speed floor
shift
- Other preferences expressed by young people included the sound of a high
performance engine
2. Price
üLow price at $2,368

32. DIFFERENTIATION AND BRAND POSITIONING
ü Brand positioning is basically concern with differentiation.
ü EFFECTIVE Brand Positioning is by creating BOTH physical and
perceptual differences using all the elements of the marketing mix.
(Product, Pricing, Promotion and Place)
PRODUCT PRICE PROMOTION DISTRIBUTION
DECISIONS / PLACE
Basic car with wide range
of option
Low price @ $2,368 Marketing program as
discussed above
Every Ford dealer
nationwide
Kind of do-it-yourself car
that would appeal to all
segments of the market