Marketing strategies of Ford

2.  The Ford Motor Company is an American multinational auto-
maker headquartered in Dearborn, Michigan, a suburb of Detroit.
 The Ford Motor Company started in June 1903 by Henry Ford.
 Mark Fields has been the President and CEO since 1st July 2014.

3.  Marketing are activities of a company associated with buying and selling a
product or service. It includes advertising, selling and delivering products to
people.
 Marketing is everything a company does to acquire customers and maintain a
relationship with them.
 Guiding element of business.
 Goal Oriented.
 Customer/ Consumer centered.
 Precedes and succeeds production.
 Science as well as an Art.
 It’s a system.

4. A marketing mix usually refers to E. Jerome McCarthy’s four P classification
for developing an effective marketing strategy:
 Product – refers to the item actually being sold.
 Price – refers to the value that is determined for
a product.
 Place – refers to the point of sale.
 Promotion – refers to all the activities undertaken
to make the product or service known to the user
and trade.
Product Price
Place Promotion
The Marketing
Mix
figure 1.1

5. A marketing strategy is a process or model to allow a company or organization to
focus limited resources on the best opportunities to increase sales and thereby
achieve a sustainable competitive advantage over the long term.
A target market is a group of customers a business has
decided to aim its marketing efforts and ultimately its
merchandise towards. It’s a group of people considered
likely to buy a product or service.

6. The term 'product mix' implies all the products offered by a firm for sale. It
may consist of one line products or several allied product lines.
Product line refers to an assortment or class of similar or related products and
services.
Any company’s product mix has three dimensions:
1. Width - The total number of product lines that company offers to the
consumers.
2. Length - The total number of items that company carries within its product
line.
3. Depth - The number of versions offered of each product in the line.

8.  American multinational automaker, founded by Henry Ford
on June 16, 1903 with headquarters at Dearborn, Michigan.
 Second largest automaker of US and fifth largest worldwide.
 Ford Motor Company Owns: Lincoln, Mustang and a small
stake in Mazda.

9. Vision: “ To become the world’s leading consumer
company for automotive products and services”.
Mission: “ Producing vehicles that meet the demands
of their customers in terms of quality and
effectiveness”.

10. CEO
CHAIRMAN
Chief Financial
Officer
Chief
Operating
Officer
Chief Technical
Officer
Executive Vice
Presidents
Group Vice
Presidents
 Very complex structure fairly mechanistic in nature.
 Rigid departmentalization.
 Low span of control.
 High centralization.

12.  Provide high quality automobiles for average middle class citizen in the global
market.
 Satisfy each customer’s need and demand with right car and safety features.
 Continue to invest in safety features and environmental benefits.
 Deliver end products to consumer by improving the distribution and
manufacturing system through implementing RFID and other technologies.

13.  Accelerate the Pace of Progress- In many ways ford are starting to see the full
benefits and strength of the One Ford plan, and they see an opportunity to
accelerate their pace of progress to drive operational excellence and profitable
growth for all.
 Deliver Product Excellence with Passion- Ford’s second priority is to deliver
product excellence with passion. Products are the lifeblood of ford’s business, and
their One Ford plan has allowed them to field the best product lineup they have
ever had – and one of the freshest.
 Drive Innovation in Every Part of Our Business- Ford’s third priority is to drive
innovation in every part of their business. Ford’s industry is rapidly evolving, and
new technology is having a significant impact on their business.
 Focus on Creating Value - The Creating Value Roadmap (CVR) is the process
they use to run the company and drive results. It is how ford adapt to a constantly
changing environment and adjust our plans to keep pace

15. Ford Motor Company’s marketing mix (4Ps) supports the firm’s ability to connect
with its target customers. In Ford’s case, the target market is highly varied and spans
the global economy. The firm is the second largest U.S.-based automaker and the
fifth in the world. With this position, a comprehensive marketing mix is critical to
maintaining its performance. This marketing mix and associated strategic actions
also change over time to match the firm’s markets and industry environment.

16. Ford’s offers a considerable variety of products. Organizational outputs
are included in this element of the marketing mix. Ford’s main product lines
are as follows:
1. Automobiles
2. Trucks
3. Buses
4. Tractors
5. Automotive parts/components
6. Financial services
7. Vehicle leasing

17. Ford uses typical places or venues used for its strategy of product distribution.
This element of the marketing mix focuses on the venues or locations used to reach
and sell to customers.
1. Dealerships
2. Auto parts stores
3. Ford Parts website
4. Ford Motor Credit Company

18. Ford Motor Company promotes it products through all of the conventional tactics.
The activities used to promote goods and services are considered in this element of
the marketing mix.
1. Advertising
2. Personal selling
3. Direct selling
4. Sales promotions
5. Public relations.

19. Ford’s prices vary, depending on the market. This element of the marketing mix
involves the strategies used to determine appropriate prices for products, based on
market and business conditions. Ford applies two main pricing strategies:
1. Market-oriented pricing strategy - In the market-oriented pricing strategy,
Ford’s goal is to set prices that are appropriate to market conditions, with
consideration for competition, demand, consumer perception, and other
variables. Ford applies this pricing strategy for most of its products, such as
sedans and trucks.
2. Premium pricing strategy - On the other hand, the company applies the
premium pricing strategy to set higher prices for some of its products. This
pricing strategy is used for most of the Lincoln automobiles, which are
Ford’s luxury line of vehicles. This element of the marketing mix
emphasizes the importance of different pricing strategies to support Ford’s
efforts to secure different segments of the market.

21. Product Mix: Known as product assortment, refers to the total number of product
lines that a company offers to its customers.
Product Line: A product line is a group of related products under a single brand
sold by the same company.
Product Width: The width of a company’s product mix pertains to the number
of product lines that a company sells.
Product Depth: The total variations for each product. Variations can include size,
flavour and any other distinguishing character.
Product Length: The total number of items in the product line.
Product consistency: The degree of similarity between product lines in terms of
their end-use, production requirements, price ranges, distribution channels etc.,

22. Crossovers
and SUVs
Trucks
Hybrids and
EVs
Buses
Cars
Automotive
components
Ford

23. Fiesta (5 Seated)
Focus (5 Seated)
Fusion (5 Seated)
C-Max (5 Seated)
Mustang (4 Seated)
Taurus (5 Seated)

24. Escape (5 Seated)
Transit Connect (7 Seated)
Edge (5 Seated)
Flex (7 Seated)
Explorer (6-7 Seated)
Expedition (8 Seated)

25. Transit Connect (7 Seated)
F-150 (6 Seated)
Super Duty (3-6 Seated)

26. Fusion Hybrid SE (5 Seated )
C-Max Hybrid SEL (5 Seated)
Focus Electric (5 Seated)
Fusion Energize (5 Seated)
C-Max Energi (5 Seated)

29.  Ethics are moral principles or values that generally govern the conduct of an
individual or group.
 They basically constitute the unwritten rules developed to guide interactions, and
are standards of behaviour by which conduct is judged.
 An ethics violation offends a person’s sense of justice or fairness.
Business ethics may be viewed as a subset of the values of society as a whole, with
a foundation based on the cultural values and norms that constitute a culture’s morals.
The ethical conduct of businesspeople is shaped by societal elements, including
family, education, and religious institutions.
As members of society, businesspeople are morally obligated to consider the ethical
implications of their decisions.

30. 1. Examines the consequences of decisions.
2. Relies on rules and laws to guide decision making.
3. Based on a theory of moral development.
In additions to personal influences, there are many business influences on
ethical decisions making which include :
a) the extent of ethical problems within the organizational,
b) top management’s actions on ethics, potential magnitude of the consequences,
c) social consensus,
d) probability of a harmful outcome,
e) length of time between the decision and the onset of consequences,
f) the number of people affected.

31. Many companies develop a code of ethics to help their employees make ethical
decisions.
A code of ethics can help employees:
1) identify acceptable business practices,
2) be an effective internal control behaviour,
3) help employees avoid confusion when determining whether decisions are ethical,
4) facilitate discussion about what is right and wrong.

32. The Ford Motor Company has a strong code of conduct:
• focussing on ethical risk,
• provide guidance on how to recognize and deal with ethical issues,
• provide policies and methods to report unethical conduct,
• help create a culture of accountability and honesty.
Ford encourages feedback and wants employees to become involved
in forming Ford’s ethical culture. The code begins by reinforcing the
support of top leaders, both Executive Chairman Bill Ford and CEO
Mark Fields emphasizing the importance of ethical conduct.

33. Ford’s addresses different areas of risk that the company thinks are most
important.
Sections of the code covers:
 workplace environment, intellectual property;
 gifts, favours, and conflicts of interest;
 protection of company assets;
 integrity of financial records;
 product quality, safety, and environment;
 competition and antitrust laws;
 political activities and international business practices.
The code also includes a list of items employees are forbidden to accept from those
who do business or wish to do business with Ford, including cash, discounts on
products (unless offered to the whole company), and tickets that do not meet
entertainment requirements.

34.  Of particular importance are Ford’s guidelines on international business. Because it is
a multinational company, it is important that Ford maintain strong oversight over its
global operations.
 It is impossible for Ford’s code to cover every ethical issue that could happen, it does
provide guidelines employees can use to guide their decisions. By identifying the more
common issues, employees can prepare themselves on how to respond to these ethical
incidents when they arise.
 Despite its strong code of ethics, Ford has experienced serious misconduct in the past
including the notorious Ford Pinto and Fire tire case, they regained their reputation by
CSR, instituted corporate responsibility initiatives to benefit stakeholders.

35. And hence Ford Motor Company was founded on strong core values, which has
helped it to overcome many obstacles and lead to its success. Despite ethical
issues in the past, Ford Motor Company has proven to be an ethical leader in the
automobile industry.
In 2013 it was selected by the Ethisphere Institute as one of the world’s most
ethical companies.
 Today Ford is one of the world’s top automobile with world’s bestselling
automobile.

37. Social responsibility is an ethical framework and suggests that an entity, be it
an organization or individual, has an obligation to act for the benefit of society
at large.
Social responsibility is a duty every individual has to perform so as to
maintain a balance between the economy and the ecosystems.
Corporate social responsibility (CSR) is a business approach that contributes to
sustainable development by delivering economic, social and environmental
benefits for all stakeholders.
CSR is a concept with many definitions and practices.

38. “We will continue to focus on education—our number-one priority—creating and
implementing innovative new programs that cultivate the skills needed to create
tomorrow's innovations.”
- Jim Vella (President, Fund and community services)
Every year, the Ford Volunteer Corps
performs more than 112,000 hours of
work on community service projects
around the world
Ford Driving Skills for Life goes
beyond standard driver education to
help new drivers stay safe on the
road.

39. The endeavor is to address issues related to Education, Sustainability, Auto Safety and
Local Priorities - the 4 priorities outlined by Ford Motor Company Fund.
Going further in its commitment to lay
foundations for a Better World, Ford India
announced the launch of its Happy School's'
program in Chennai, in September 2014.
Ford is also currently supporting a pilot project
aimed at addressing the issue of dropout rate
amongst girls in 2 schools in Chennai, as well as
an infrastructure enhancement project in 2
schools near its upcoming manufacturing facility
in Sanand, Gujarat.

40. Ford supports a tailoring training program for
women in 7 villages close to the plant. More
than 600 women have been trained in this skill
over the last two years.
Ford India has been supporting Sanjeevi, a
primary healthcare centre near the plant for
close to 15 years
Launched in 2009 in India, the program is in
keeping with Ford’s objective of creating Safe
Roads and a Better World.
Year after year, the DSFL program is working
towards reducing the number of traffic fatalities
and injuries by reinforcing safe and economical
driving skills and has trained more than 11,000
people in India since its launch here.

41. Ford India launched the first phase of its cohesive
community outreach initiative in Sanand, Gujarat
to improve access to safe drinking water for
children from neighboring communities.
In the first phase, 30 filters were installed in
anganwadis and primary schools, across 18
villages, reaching out to more than 1000 children.
Ford has partnered with Ahmedabad-based NGO,
Saath Charitable Trust, to implement the project,
which aims to progressively expand and cover
children across 70 villages.

43. B2B B2C
B2B is shorthand for business to business.
The products and services of the business
are marketed to other businesses.
Business to consumer (B2C) is business or
transactions conducted directly between a
company and consumers who are the end-
users of its products or services.
B2B refers to a situation where one
business makes a commercial transaction
with another.
The business-to-consumer as a business
model differs significantly from
the business-to-business model, which
refers to commerce between two or more
businesses.
Example:
 Business consultants (providing
advice on business strategy and
operations).
 Cleaning company that cleans
commercial buildings.
Example:
 Social Networks such as Facebook,
LinkedIn, Amazon, Twitter, Uber etc.,

45.  Ford, one of the original auto manufacturers, incorporated in 1903 and is now a
multinational auto manufacturer.
 The company remains headquartered in Dearborn, Michigan, just outside of
Detroit.
 Ford obtains approximately 80% of its parts from about 100 suppliers.
 Some of the ford parts suppliers are listed in the following slide:

46. COMPANY NAME COMPANY PLACE PARTS NAME
Flex-N-Gate Seeburn Ontario, Canada door hinges and arms
NHK Spring Shiga-ken, Japan suspension stabilizer linkages
U-Shin Europe Komárom-Esztergom,
Hungary
steering columns
Valeo Electric and
Electronic Systems
Czechowice-Dziedzice,
Poland
starter assemblies
Webasto Roof &
Components,
Schierling, Germany sliding sunroofs
Summit Plastics Nanjing, China instrument panel components
Dee Zee Des Moines, Iowa running boards
Warn Industries Milwaukie, Oregon axle assemblies
Chaidneme Carabobo, Venezuela mufflers and exhaust systems
Autoliv Valencia, Spain airbags

47. There are 254 Ford dealerships spread across 32 states and Union Territories
in India.
STATE NAME NO.OF .DEALERS
1. Andaman & Nicobar 1
2. Andhra Pradesh 8
3. Assam 7
4. Bihar 4
5. Chandigarh 2
6. Chhattisgarh 3
7. Delhi 7
8. Goa 2
9. Gujarat 22
10. Haryana 17
11. Himachal Pradesh 2

48. 12. Jammu & Kashmir 3
13. Jharkhand 3
14. Karnataka 15
15. Kerala 17
16. Madhya Pradesh 12
17. Maharashtra 28
18. Manipur 1
19. Meghalaya 1
20. Mizoram 1
21. Nagaland 1
22. Orissa 4
23. Pondicherry 1
24. Punjab 12

49. 25. Rajasthan 16
26. Sikkim 1
27. Tamil Nadu 20
28. Telangana 9
29. Tripura 1
30. Uttar Pradesh 23
31. Uttarakhand 3
32. West Bengal 7
STATES = 32 254

51.  Marketing Terms- Marketing Mix, 4 P’s, Strategies, Target market etc.
 Ford Motor Company- Vision & Mission, Structure, Core competencies etc.
 Marketing Mix of Ford and Strategies.
 Product Mix, Dimensions etc.
 Ethics and Code of conduct.
 Social Responsibility and CSR strategies.
 B2B and B2C strategies.

52. Strength Weakness
1. Strong position in U.S market
2. ECOnetic initiative
3. Sound financial performance
4. One Ford approach
5. Significant growth in china
1. Poor environmental record
2. High cost structure
3. Unprofitable Europe operations
Opportunities Threats
1. Positive attitude towards ‘green
vehicles’
2. Increasing fuel prices
3. New emission standards
4. Growth through acquisitions
1. Rising raw material prices
2. Intense competition
3. Fluctuating exchange rates

53.  Reduce manufacturing expenses by 15-20%
 Enter Latin American and Asian markets with hybrid vehicles
 Develop affordable electric cars for U.S market
 Increase market share
 Manufacturing of new small fuel-efficient vehicles

54. In spite of having strong competition in market, Ford is still dominating the motor
industry as well as their business strategies are quite strong for sustaining in this
market.