Ford Motor Company Deidre Hoefner Tanweer Akhtar Manish K Lal Aug. 24 2006 Agenda Introduction Marketing Mix Product Line Product Development Strategy Competition POP / POD CRM Social Responsibility Way Forward Ford: The Company Vision: “To become the worlds leading consumer company for automotive products and services.” Mission Statement: “To provide safe, reliable, and personal transportation around the world.” Market Share: 16% of the US market and 10% of the European market. Brands: Ford, Mercury, Mazda, Jaguar, Volvo, Lincoln, Land Rover, Aston Martin. Ford: History Founded in 1903 in Detroit Family owned business Launched very popular Model T in 1908 First moving assembly manufacturing process Very successfully mass marketed Model T Lost market to GM and Chrysler during 1920s by neglecting consumer demands Introduced Ford Escape Hybrid in 2004 Redesigned Mustang including 60’s retro style in 2005 “Way Forward” : Attempt to align production capacity and fixed costs with projected market share in 2006 Marketing Mix Particular set of marketing tools used by a company By “mixing” these, a business can work to achieve marketing objectives Four basic tools are usually available: Product, Price, Place and Promotion These are also known as the 4Ps Marketing mix: 4Ps / 4Cs Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication Product Line SUVs Sports Cars Trucks Luxury Cars Convertibles Midsize Cars Vans & Minivans Wagons Small Cars Niches within SUV Market Segment Lincoln Navigator Ford Explorer Sports Cars Trucks Luxury Cars Ford Expedition Mercury Mountaineer Convertibles Vans & Minivans Wagons Midsize Cars Ford Excursion Small Cars Product Length / Width / Depth Product – Mix - Width Product Line Length SUVs Ford Crossovers Escape Freestyle Explorer Sport Trac Exscape Hybrid Freestyle Explorer Expedition Navogator Pickups Focus Fusion Five Hundred Crwon Victoria Mark LT Zephyr LS Town Car Milan Montego Grand Marquis MAZDA3 4-Door MAZDA6 Sports MAZDA6 5-Door MAZDASPEED6 Lincoln Mercury Mariner Mountaineer Mariner Hybrid Tribute CX-7 Mazda B-Series Truck XC90 S40 S60 S80 LR3 Range Rover Sport Range Rover X-TYPE S-TYPE XJ Volvo Jaguar LandRover Aston Martin Tribute CX-7 Sedans Ranger F-150 Super Duty Coupes Mustang Coupe Ford GT Convertibles Mustang Minivans/Vans Freestar Econoline E Series Wagons Freestyle Monterey RX-8 MX-5 Miata C70 XK Convertible XK Coupe V8 Vantage DB9 Vanquish S DB9 Volante MPV MAZDA3 5-Door MAZDA5 Tribute MAZDA6 Sport Wagon CX-7 V50 V70 XC70 Product Development Strategy LOW COST OF OWNERSHIP Initial price Fuel consumption Reliability Serviceability CLEAR PRODUCT SUPERIORITY Appearance Comfort Features Ride and Handling Performance Competition No. 2 US auto maker Competition from foreign car makers Losing market share to rivals ( 15.6% now) Leader in Trucks in US Market POP / POD POP Major category player Improve parity in hybrid cars Create parity for flex fuel vehicles POD Over 100 years of legacy An “American” car company Provides safe, reliable, and personal transportation CRM The Customer is Job 1 at Ford CRM Acquiring right customer SAS platform Crafting right value proposition Data modeling: understand and treat customers Instituting best processes Product development strategy Motivating employees Empower front line employees, KMS Retain customers Customer defection, retention, & satisfaction Social Responsibility Ford is serious about making the world a better place. That is why empowering people is regarded as a high priority and one of our major goals. Education Conservation AIDS awareness Community action Way Forward Efficient and effective to compete in the market New series compact cars Brand consolidation “American value” Associate quality with Ford brand Reduce manufacturing cost Cutting edge technology / User friendly web site