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1. By: Alannah Da Silva, Chad Brkich, and Devanie Christie
Presented to: Paula DelMaso
March 30, 2016
2. 15%
12%
7%
66%
MARKET SHARE IN CANADA 2015
Ford General Motors Honda Other Motor Companies
2013 2014 2015 2016(Prediction)
18.33
19.42
20.64
21.06
NORTH AMERICAN AUTO SALES
Sales in units of millions
3. Attributes
Price
Price can be a large decision
making factor when purchasing a
vehicle.
Consumers will make a purchasing
primarily based on their income.
Sustainability
How long a car can last a person is
also very important to consumers.
If a car has a reputation for
breakdowns and high service
intake, a consumer will likely opt
for a car with sustainability
6. • Honda first arrived to Canada in 1969 with motorcycles and power
equipment. The first vehicles sold were Honda civics in 1973, followed
by the accord in 1976 (10)
• The company began production of Honda vehicles in Canada in 1984.
In 1988 Honda opened its first automobile factory in Alliston, ON. The
first manufacturing plant opened by a Japanese company in Canada
(10)
• As of 1990, Honda sold more than 100,000 cars in Canada, as of 1991
I million vehicles were sold in Canada, in 1993 Honda reached it
500,000th vehicle production and as of 1997, in June Honda reached
its 1 millionth vehicles (10)
7. Product Honda Civic 2016 Honda CR-V 2016 Honda HR-V 2016
Honda Accord Coupe
2016
Honda Civic Coupe 2016 Honda Civic and Accord
Sedan 2016
Honda CR-Z 2016 Honda Civic Coupe SI
2016
Honda Accord 2016
Honda Accord 2016 Honda Pilot 2016 Honda Civic Hybrid 2016
Honda Fit 2016 Honda Odyssey 2016 Honda Accord Hybrid
2016
8. Product Continued…
• Features:
• Look and design: The looks of the Honda cars are stunning or rather
outstanding as its design among its competitors, is simple and not too over
the top (10)
• Interiors:
• Interiors are brilliantly designed, multidimensional dash, steering wheel
with audio controls, I pod connective music system, comfortable seat,
safety features like airbags etc (10)
• Engine, Gearbox and Performance:
• I-VTEC engine, 4 cylinder engines, smoothest engine widely spaced gear
ratios, paddle shift, ride and handling, independent suspension on the
front, wheel base ,ABS, dual air bags and EBD are standard feature of this
car (11)
9. Price
• Honda cars are more
costly than the other cars
in the same segment. It
targets the people who
need an outstanding car
in the segment in the
case of design, comfort,
quality and innovation.
Honda Fit
$14,730.00
Honda Civic
Coupe SI
$26,850
Honda Civic
Sedan SI
$26,850
Honda Civic
$19,455
Honda Civic
Sedan
$15,990
Honda Civic
Hybrid
$27,200
Honda CR-Z
$26,290
Honda
Accord
Sedan
$24,150
Honda
Accord
Coupe
$27,090
Honda
Accord
Hybrid
$29,990
Honda HR-V
$20,690
Honda CR-V
$26,190
Honda Pilot
$35,490
Honda
Odyssey
$30,690
Honda Civic
Hybrid
$27,200
Honda
Accord
Hybrid
$29,990
Honda CR-X
$26,290
10. Place
• Honda first arrived in Canada in 1969 and opened up there first
manufacturing plant in 1988 in Alliston, ON. As of today Honda
vehicles and products are available to consumers all over the world in
Canada, The United States, Japan, China, Thailand and much more!
There’s also a feature on their website that allows consumers to find
the nearest dealerships and book a test drive (10)
11. Promotion
• Honda is a brand known for its quality and innovation. Honda was never into an
aggressive promotional activities but the company always tried to maintain the
quality and created a brand image by providing better customer service (10)
• Honda has been very careful and precise in their advertisements. Honda always
projected their image as most reliable brand, advanced technology, eco-friendly
cars (10)
• Even considering the television commercials, Honda promoted their hybrid car
that runs without gasoline and emits water as the byproduct rather than
advertising the specific brands existing in the market. The ad was more
concentrated to the company’s technological advancements and eco-friendly
image which differentiated Honda from the competitors (10)
12. • Reliability: For a decade now, Honda has a great reputation of quality
building strategies and parts. Honda vehicles are consistently ranked
very high terms of quality by consumer reports as well as
independent consumer groups. As a result of their reliability, many
old Hondas are still being driven today. (12)
• Fuel Efficacy: Honda received high marks for overall fleet fuel
Effiency. Recently Honda was one of the first companies to release
hybrid vehicles the Honda Odyssey and continues to lead the way
with a huge section of hybrid vehicles (12)
13. • Value: Honda’s are usually known to hold their value. They are known
as one of the best ‘Bang for Your Buck’ car brands. Whether looking at
their luxury line or their sports car offerings, costumers get a lot for
their money when buying Hondas. Their cars routinely rank on par
with more expense counterparts in the automotive industry,
according to consumer reports (12)
• Focus on factory flexibility: Unlike most manufacturers Honda can
produce multiple autos on single assembly lines one after another
and switch lines to newly designed vehicle in just hours. Honda
invented the flexible factory through an innovation known as
synchronized engineering meaning like each function is assembled in
it’s own area like the brakes, transmission etc (12)
15. • The true start of GM Canada starts with The McLaughlin’s Chevrolets. They were
as much of a success in Canada as Chevrolets were in the United States. By 1918,
though, neither George nor Sam had sons interested in carrying on the business.
In a five-minute meeting, GM management agreed to buy the McLaughlin
business, but on one condition - that the McLaughlin’s stay to run it. Sam and
George became the first president and vice president of General Motors of
Canada. Sam remained president until 1945. When he died in 1972, at the age of
100, he still was chairman of the board..
• Today GM of Canada has the capacity to manufacture more than one million units
in a single year - generating significant export earnings by shipping about 90
percent of those vehicles to the United States. It also satisfies a third of Canada's
1.2 million unit market, the ninth largest automobile market in the world. In the
1980s, GM of Canada began an $8 billion reindustrialization program. Now, the
GM Autoplex in Oshawa is the centerpiece of GM Canada's manufacturing
operations. It is the largest, most modern, integrated vehicle-manufacturing
complex in North America.
16. Product
• GM products have a mix of many brands worldwide. Producing cars and truck in 35 countries. Their brands
include Baojun, Buick, Cadillac, and Chevrolet. GMC, Holden, Jiefang, OnStar, Opel ,Vauxhall, Wuling,
GMAC.
• These brands cover all passenger and truck vehicle segments form, Compact, Subcompact, Sedan, SUV, High
Performance, Luxury and Truck vehicles. Their product range allows them to compete in all segments of the
automotive vehicle business including financing of vehicles as well as fleet sales
Price
• These brands and product mixes cover a variety of price points for the automotive consumer starting as low
as $12,600.00 for a Chevrolet Spark to $85,000 for the Corvette. In short there is something for everybody in
the product mix based on the consumer’s needs.
• With the addition of GMAC financing, GM can make these cars affordable based on their in-house financing
and leasing capability allowing them to tailor make a financing plan. This in turn is designed to make the
vehicles affordable for each consumer and allowing them to get more vehicle for the monthly payment
dollar making it easier to upsell a vehicle and increase profits on each vehicle.
17. Continued…
Place
• Currently Gm vehicles are marketed and sold through traditional dealer channels across the world. They
produce and sell cars and trucks in 50 countries.
• The dealer channel is not only deigned to sell and assist consumers in finding the right vehicle at the
right price but to service them as well. All dealership locations worldwide are available on GMs
website www.gm.com/select-a-contry.html.
Promotion
GM, like many other car companies promote their vehicles in a few ways. GM since its Bankruptcy in
2009 has discontinued a variety of brands and now only focuses on the core brands they picked. They
use all mediums of advertising, including TV, Radio, Billboards, Magazines and Newspapers, Web
Advertising and Social Media. Other than reinforcing their brands in commercials, GM constantly uses
dealer and consumer financial incentives and a variety of vehicle sales promotions to drive consumers to
buy their product. Currently in America GM is focusing a major effort on its GMAC Brand due to the
resurgence of SUV and Truck buying.
18. Competitive Advantage GM
• After looking at GM’s performance after their bankruptcy in 2009 I see a few
competitive advantages that they can capitalize on in the market.
• When GM went bankrupt in 2009 it allowed them to clean up their balance sheet
and not be hindered by past mistakes and liabilities that were choking
their growth and viability for the future of the company. This has also allowed
them to lower their manufacturing costs by renegotiating all labor contracts and
supplier contracts.
• Even though heavily critiqued on their poor quality of product prior to the
bankruptcy this allowed GM to create a new ad campaign to show that they have
heard the criticism and were increasing the quality of their product. This appears
to be working in both the manufacturing sense and the consumer’s perception.
• The popularity of GMs SUVs and Trucks seems to give them a
competitive advantage in the market in the US and Canada.
19.
20. Ford was incorporated in 1903 with 12 investor and 1000 shares, however it
wasn’t till 1904 where they had built their first manufacturing plant. The first
car to be for distribution was the Model C.
Ford had designed and built its first truck in 1917 that weighted one ton.
Ford acquired ownership of Lincoln in 1922 from his former business partner
Henry Leland, since then producing luxury vehicles such as the Zephyr, K-
series and the Continental.
Ford went on to design and produce Tri-motor airplanes, military vehicles
and even assisted in creating the Mission Control Centre for NASA.
Some of Fords most popular vehicles throughout the years include, the
Thunderbird, Mustang, Taurus, Fiesta, Ranger, Navigator and the F-series.
21. Product
• Ford provides a variety of vehicle types including, Cars, SUV’s, Trucks, Vans and
CUV’s(1)
• The type of cars Ford produces are typical motor driven cars, hybrids, and
electrical cars.(1&2)
• Fords SUV’s and CUV’s are convenient, versatile and capable. With the power to
tow and acceleration to easily merge through traffic and highways. (2)
• Ford produces both personal and commercial use trucks. (2)
• Ford also provides many offers and services including: winter safety packages,
owner advantage rewards, warrantees on parts, and scheduled maintenance. (3)
22. Product continued…
Hybrids
Models
C-Max
Hybrid Sel
Fusion
Hybrid Se
MPG:
City/Hwy
50/44 52/49
L/100KM:
City/Hwy
5.6/6.4 5.4/5.7
Starting at $31,444 $28,699
Seating for 5 1-5
Electric
Models
C-Max
Engeri
Fusion
Energi Se
Focus
Electric
MPG:
City/Hwy
50/44 27/40 135/118
L/100KM:
City/Hwy
5.6/6.4 10.5/7 2.1/2.4
Starting at $31,999 $34,199 31,999
Seating for 5 1-5 5
Motor-run
Models
Fiesta Focus Fusion Mustang C-Max Taurus
MPG:
City/Hwy
33/43 30/42 27/40 21/34 50/44 22/32
L/100KM:
City/Hwy
8.5/6.5 9.3/6.7 10.5/7 13.6/8.4 5.6/6.4 13.1/8.
7
Starting at $16,049 $17,199 $22,499 $26,398 $25,999 $30,99
9
Seating for 5 5 1-5 1-4 5 1-5
23. Price
• Along with customizable options
including paint, chrome, tires,
and interiors; the price on a
vehicle can vary. (4)
• The chart on the right are
starting prices for Fords vehicles.
Cars Starting Price
Fiesta $16,049
Focus $17,199
Fusion $22,499
Mustang $26,398
C-Max $25,999
Taurus $30,999
CUV’s and SUV’s
Escape $23,699
Edge $31,349
Explorer $33,499
Flex $31,799
Expedition $52,148
Transit Connect $29,099
Trucks and Vans
F-150 $25,799
Transit Connect $27,299
Super Duty $36,749
Transit $34,149
Commercial Truck $32,369
24. Place
• Ford vehicles are sold in North America, South America, Europe,
Middle East & Africa, and Asian Pacific. (5)
• They are sold at three different dealerships: An exclusively Ford
dealership, an exclusively Lincoln dealership and a Ford and Lincoln
combined dealership. (5)
• Its appears in South America and Europe, primarily only Ford vehicles
are being sold whereas in North America, Middle East & Africa and
Asian Pacific both Ford and Lincolns are being purchased. (5)
25. Promotion
• Ford offers 4 special programs for eligible customers:
• The Our First Responders Appreciation Program – First responders such as police,
firefighters, EMT’s and their families receive discount in honor of their services to
this country and the people in it. (6)
• The Study Hard, Drive Well Program – Collage students and graduates are eligible to
receive $500 incentives and best possible rates. (6)
• Ford Mobility Matters Program – Persons with disabilities and those who care for
them are given adaptability with regards to a vehicle purchase. They may also receive
$1,000 reimbursement for equipment. (6)
• Military Honor Program – Those who serve and have previously served in the military
along with their families receive discounts as well as $500 bonus cash if eligible. (6)
• In 2014, Ford teamed up with T-Mobile and offered those who purchased a
device from T-Mobile a $25 Advantage Reward Card towards a Ford
product. (7)
26. Competitive Advantage: Ford
• Ford has top sales and market share within Canada and the U.S.
because of its reasonable pricing and use of sustainable materials to
reduce the end-life of their vehicles. (8)(9)
• Ford Motor Credit Company offers consumers and dealerships; lines of
credit, loans, and leases. (9)
• Because of government requirements internationally and overall
concern the company has for the environment;
Ford produced the EcoBoost Engine and continues to
develop its engineering to be environmentally friendly.(9)
27. References
1. New Cars from Ford | Research Fuel Economy, Performance, Pricing and More | Ford.ca. (2016).
Ford.ca. Retrieved 25 March 2016, from http://www.ford.ca/new-cars/?gnav=header-cars
2. Ford - Cars, SUVs, Trucks & Crossovers | Ford Vehicles| The Official Site of Ford Vehicles | Ford.com.
(2016). Ford.ca. Retrieved 25 March 2016, from http://www.ford.ca/new-trucks/?gnav=header-trucks
3. Ford Service | Our Offers & Request an Appointment | Ford.ca. (2016). Ford.ca. Retrieved 25 March
2016, from http://www.ford.ca/service/ourOffers/?gnav=header-owners#page=ourServices-
fordService
4. Ford Vehicle Brochures, Apps, Manuals and Guides | Ford.ca. (2016). Ford.ca. Retrieved 25 March
2016, from http://www.ford.ca/brochures/?gnav=header-tools
5. Ford Motor Company,. (2016). Ford Motor Company 2015 Annual Report. Retrieved from
https://corporate.ford.com/content/dam/corporate/en/investors/reports-and-
filings/Annual%20Reports/2015-Annual-Report.pdf
6. ("2016 Ford F-150 | View Current Incentives & Offers | Ford.com", 2016)
7. Wood, C., Morrison, J., & Joakim, M. (2014). @ Ford: Competitive Advantage (1st ed.). Sara Tatchio.
Retrieved from http://www.at.ford.com/news/Publications/Publications/at_Ford_October_web.pdf
8. Sustainable Materials - Sustainability Report 2014/15 - Ford Motor Company. (2016).
Corporate.ford.com. Retrieved 30 March 2016, from
http://corporate.ford.com/microsites/sustainability-report-2014-15/environment-products-
materials.html
28. References continued…
9. Ford Motor Company,. (2016). Ford Motor Company 2015 Annual Report. Retrieved from
https://corporate.ford.com/content/dam/corporate/en/investors/reports-and-
filings/Annual%20Reports/2015-Annual-Report.pdf
10. Inc., H. (2016). Honda In Canada. Honda.ca. Retrieved 30 March 2016, from http://honda.ca/honda-
in-canada
11. Inc., H. (2016). 2015-2016 Honda Model Lineup of New Honda Cars, Trucks, and Hybrids. Honda.ca.
Retrieved 30 March 2016, from http://www.honda.ca/vehicles
12. Simpson, L., & Simpson, L. (2016). Competitive Advantages of Honda | eHow. eHow. Retrieved 30
March 2016, from http://www.ehow.com/list_5916489_competitive-advantages-honda.html