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CIA-1
Component-2
Principles & Practices of Management
Submitted by :-
Tarun Patel – 1711039
Pratyush Bista – 1711073
Nirmal Surya – 1711086
Siddharth M Santosh - 1711037
The Story of Ford EDSEL 1958
Ford Motor Company – at a
glance
The Ford Motor Company is an American
multinational automaker headquartered in
Dearborn, Michigan, a suburb of Detroit. It
was founded by Henry Ford and incorporated
on June 16, 1903.
• Type - Public company
• Headquarter - Dearborn, Michigan, U.S.
• Area served- Worldwide
• Products - Automobiles ,Luxury Vehicles,
Commercial Vehicles, Automotive parts.
• CEO - Jim Hackett
Overview of Ford Edsel
• Named after Edsel ford, son of
Henry ford.
• Manufacturer – Edsel division of
Ford Motor Company.
• Production - 1958-60
• Designer – Roy Brown
Body and Chassis
• Class – Full size car
• Layout – FR layout
Edsel
• Edsel was an automobile mark that was
planned, developed, and manufactured
by the Ford Motor Company for model
years 1958–1960.
• Ford invested heavily in a yearlong teaser
campaign leading consumers to believe
that the Edsel was the car of the future –
an expectation it failed to meet.
Failure of Edsel
• The very name “Edsel” became a
popular symbol for a commercial
failure.
• Unattractive
• Overpriced
• Overhyped
• Never gained popularity with the
contemporary American buyers
• Sold poorly
• Poor workmanship
Wrong Car at a Wrong Time
According to Jan.G.Deutsch , who wrote a book on Edsel’s Failure named ‘Selling the
People’s Cadillac: The Edsel And Corporate Responsibiity’, mentioned Edsel as,” the wrong car
at the wrong time”.
Had to compete with well established nameplates such as Pontiac , Oldmobile , Buick ,
Dodge and DeSoto.
Compete with its own internal sister division Mercury which itself had never been a stellar
sales success.
To make matters still worse , as a new make, Edsel had not established Brand loyalty with
buyers .
Hence Edsel was considered as ‘The Titanic Of Automoblies’
Comeback OF Ford
Failure of Edsel was counterbalanced equally by the
success Of ford Mustang.
Launched In 1964 and sold about half a million vehicles in
the first year of production.
Not only it had a better name and Good Looking Bonnet
and the Mustang was Affordable.
There was a Shift from Product Centric to Customer
Centric.
Lessons From EDSEL
Hyping An Untested product is an
mistake
Name Matters
Looks Count
Price is important
Right Research is important
Quality is important
THANK YOU

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CIA-1: The Failure of the Edsel Car

  • 1. CIA-1 Component-2 Principles & Practices of Management Submitted by :- Tarun Patel – 1711039 Pratyush Bista – 1711073 Nirmal Surya – 1711086 Siddharth M Santosh - 1711037
  • 2. The Story of Ford EDSEL 1958
  • 3. Ford Motor Company – at a glance The Ford Motor Company is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. • Type - Public company • Headquarter - Dearborn, Michigan, U.S. • Area served- Worldwide • Products - Automobiles ,Luxury Vehicles, Commercial Vehicles, Automotive parts. • CEO - Jim Hackett
  • 4. Overview of Ford Edsel • Named after Edsel ford, son of Henry ford. • Manufacturer – Edsel division of Ford Motor Company. • Production - 1958-60 • Designer – Roy Brown Body and Chassis • Class – Full size car • Layout – FR layout
  • 5. Edsel • Edsel was an automobile mark that was planned, developed, and manufactured by the Ford Motor Company for model years 1958–1960. • Ford invested heavily in a yearlong teaser campaign leading consumers to believe that the Edsel was the car of the future – an expectation it failed to meet.
  • 6. Failure of Edsel • The very name “Edsel” became a popular symbol for a commercial failure. • Unattractive • Overpriced • Overhyped • Never gained popularity with the contemporary American buyers • Sold poorly • Poor workmanship
  • 7. Wrong Car at a Wrong Time According to Jan.G.Deutsch , who wrote a book on Edsel’s Failure named ‘Selling the People’s Cadillac: The Edsel And Corporate Responsibiity’, mentioned Edsel as,” the wrong car at the wrong time”. Had to compete with well established nameplates such as Pontiac , Oldmobile , Buick , Dodge and DeSoto. Compete with its own internal sister division Mercury which itself had never been a stellar sales success. To make matters still worse , as a new make, Edsel had not established Brand loyalty with buyers . Hence Edsel was considered as ‘The Titanic Of Automoblies’
  • 8. Comeback OF Ford Failure of Edsel was counterbalanced equally by the success Of ford Mustang. Launched In 1964 and sold about half a million vehicles in the first year of production. Not only it had a better name and Good Looking Bonnet and the Mustang was Affordable. There was a Shift from Product Centric to Customer Centric.
  • 9. Lessons From EDSEL Hyping An Untested product is an mistake Name Matters Looks Count Price is important Right Research is important Quality is important