Ford Motors Case Study Analysis
This case study discusses Ford Motors’ history as a reputable brand in the United
States and around the world because a brand for a company is like a reputation; you earn
reputation by trying to do hard things well. It details Ford Motors’ strategy when facing the
challenge of surviving the 2008-2009 economic downturn that affected many businesses
internationally and particular the auto industry. The case study also gives an insight to the
Ford’s efforts to establish each of their individual brands, especially the Ford Fiesta as an
international product, the Ford Figo in the Asian markets – as opposed to the high-end luxury
automobiles generally aimed at the European markets, and the Ford Fusion, which was first
solely marketed towards women.
Ford’s motto, “The Way Forward” is mentioned several times throughout the text to
acknowledge Ford’s forward way of thinking using electricity to run their cars as opposed to
natural resources or simply by making their vehicles more fuel-efficient. This could mainly be
due to the fact that natural resources are depleting on an international level and car makers
will soon be forced to rely on other sources of energy. In addition, “The Way Forward” as a
motto includes a subliminal positive message that was sorely needed in the time of the great
recession. The phrase could have perhaps been created to appeal to the current state of
needs for consumers across the board and adding to the mix a stronger brand, new models,
and higher quality, which will certainly instill optimism into the global market. The streamlining
plan to decrease fixed capital costs such as the development and production and focus more
on a product that appeals to the consumer is exactly what the company needed. The strategy
assisted in saving Ford during the 2008 recession by employing multiple components. The
individual branding of products that appealed to different marketing demographics, i.e. the
Ford Fusion, allowed marketing segmentation to different markets. Furthermore, the use of
promotional strategies including pop-up stores in malls and the realization that other sources of
energy could be used to not only help the environment but also to lower the prices of
automobiles in a time where the industry, as well as consumers, are noticeably struggling.
Ford has linked its domestic and global strategies by first understanding the different
needs, trends, and desires of each individual market and implementing their own internal
changes to take advantage of these needs, changes and trends (Daye, 2009). Also, Ford has
managed to use the “The Way Forward” campaign to innovate international markets by selling
smaller, more fuel efficient vehicles to markets in Asia. Increasing manufacturing in multiple
countries (including India) and exhibiting this to the appropriate media outlets to create a sense
of resourcefulness, positivity, and consumer demand in a time of need. I believe that Ford’s
strategy to scale back on luxury markets was an intelligent approach as it could focus on a
niche market that was struggling during the great recession (Pride, 2012). It is no surprise that
luxury vehicles appeals to be a very small market with a capacity that cannot surpass the dire
economic climate of 2008-2009. Creating energy efficient products also provides a sense of
pride in consumers who may not be privy to material possessions. Their promotional feats,
which directly caught the attention of consumers, are also instrumental in creating brand
awareness nationally and internationally.
The most important concept of this case study is Ford’s ability to overcome the many
obstacles in what was perhaps the most difficult time period for the auto industry and how they
did it. Providing information on branding concepts, promotional strategy, consumer
appreciation, and filling consumer needs using innovative ideas (Anderson, 2009). With the
inclusion of lower pricing, advertisements to women, and other different markets and using fuel
efficiency, Ford’s “The Way Forward” campaign has been a vital tool for the company’s
success. Professionally this applies to me because it is important to have an understanding of
what a company does to be successful when faced with challenges that could and ultimately
did ruin other similar businesses. The recent history of the auto industry is important for both
consumers and professionals (in any field) to understand as the purchase of motor vehicles
(along with houses) is a driving force in global economic sustainability.
In conclusion, I was unaware of the steps being taken with Ford as a company to
maintain their popularity and stock interest as an influential auto maker. I was simply under the
impression that many people were losing their jobs internally (which is what was mainly
highlighted in news coverage particularly concerning Detroit, Michigan – which house Ford
Motors and has since its inception). I admire Ford Motors and believe that they made the right
decisions to create a niche market and niche products focusing on smaller demographics that
were capable of purchases as opposed to the highly coveted, but less affordable, luxury
markets. "The ability to retain customers is an important indicator of product success and
commitment to developing long-term customer relationships. As automakers are scrambling to
maintain market share, holding onto current customers has never been more important"
(Anderson, 2009).
Works Cited
Anderson, J. (2009) “Ford Motor Company Tops Latest Brand Loyalty Ratings From Experian
Automotive”. Prnewswire.com. Retrieved from http://www.prnewswire.com/newsreleases/ford-motor-company-tops-latest-brand-loyalty-ratings-from-experianautomotive-64072917.html.
Daye, Derrick (2009) “Ford’s Fruitful Branding Strategy” Retrieved from
http://www.brandingstrategyinsider.com/2009/05/fords-fruitful-brand-strategy.html.
Retrieved on 9/27/12
Pride, W. & Ferrell, O.C.(2012). Marketing, 16th ed. Boston, MA: Houghton Mifflin.