Market analysis for Ford Motor

Company
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Ford Motor Company is an American multinational automaker and founded by
Henry Ford. Ford Motor Company has many product lines such as Ford Fiesta, Ford
Focus, Ford Escape, Ford Ranger and other Ford products. Ford Motor Company has
many dealers in the world wide so that consumers can buy the car at their nearest
place.
Research Objectives
For this assignment, we are going to do the research about how Ford Motor
Company do the target market, SWOT analysis, environmental forces and 4 elements
of marketing mix to attract people to buy their products.
TARGET MARKET
The organization of FORD is using Differentiated Strategy in their businesses. This
strategy is to targets two or more segments by developing marketing mix for each
segment. FORD Motor Company designed to appeal to many different types of
consumers and to satisfy many different needs in the form of economy cars, sports
cars,
luxury cars, station wagons, vans, trucks, and so on. Now the latest cars that the
company produce is FORD FIESTA, this car are focus on young people and ladies.

Segmentation variables
Segmentation variables used by FORD Motor Company are Geographic
segmentation, Demographic segmentation, Psychographic segmentation and
Behavioral segmentation. Ford automobile is mainly segmented to the United
Kingdom automobile market industry but it also segmented to others country like
Malaysia, Indonesia and so on to various basis which are the parts of above
mentioned factors. The latest model FORD FIESTA is using Demographic Variables

which is age, gender and income. It is because this model is focus for young people,
ladies and average income consumer. In the other hand, FORD FIESTA also uses
behaviorist variables with the benefit for safety and fuel efficiency.
Market Segment Profiles
FORD Motor Company profile offers a comprehensive analysis for the organization,
it is business segments, and competitors. It used to analyze the business and
marketing strategies adopted by the company, and to gain a competitive edge in the
market industry. This profile also evaluates the strengths of the company and the
opportunities present in the market. It is also involves analysis of the company at
three levels - segments, organizational structure and ownership composition. Beside
this, both business and geographic segments are analyzed along with their recent
financial performance. It further discusses the major subsidiaries of the company
and the recent merger & acquisitions. Most of the consumer for FORD Motor
Company may choose our product because the organization has the needs of the
consumers.
Evaluate Relevant Market Segment
The FORD organization is selling FORD FEISTA for a reasonable price. It is because
this product has the necessary that are good for the consumers such as save fuel. This
product is increasing the sale potential for the company. It also determines the
market industry that the Ford Motor Company is segment to the right position for
the product that the consumers are likely to buy this automobile for their daily use.
Target Markets
FORD Motor Company designed as the new model FORD FIESTA is target to young
people and ladies. The young people that the organization focuses on 18-25years old
which are teenagers and ladies with average income can affordable to purchase the
cars. And this kind of model is suitable for those unmarried people because this car
only have 5 seats that are not for a big size family. Therefore, this automobile size is
average so it is suitable for those consumers that like middle size car.

SWOT ANALYSIS
One tool marketers use to assess an organisation's strengths weaknesses,
opportunities, and threats.

Strengths
Strengths define as the competitive advantages or core competencies that given the
organization an advantage in meeting the needs of its target markets. Ford
automobile company is the one of the best known brand name in the world. Then,
the brand is well-known in automobile industry and global markets due to huge
marketing and advertising. Ford admits greater amount of customer loyalty and all
its individual brands have been enjoying the benefits of the good reputation that they
have through the quality makes and services. Ford is providing the consumer more
variety of car and commercial vehicle. Some more, quality to ensure of Ford needs to
be more complete and must be consistently monitored with permit standard to make
certain no future faults and thereby to achieve customer satisfaction. Ford
automobile company will maintain good relation with the employees by offering
better work environment and competitive wages that are assert to recruits a qualified
and skilled employee in all its functions. Otherwise, Ford is more concerned about
the working environment and safety aspects of the employees. Furthermore, Ford
always develops cars on standardized procedure and invested heavily in alternate
fuel source. This manufacturing facilities operating its business more than thirty
countries and enhances its manufacturing process at around ninety plants and
facilities worldwide that is because operations and distribution efficiency of the Ford
automobile company is the wealth.
Weaknesses
Weaknesses mean any limitations that a company faces in developing or
implementing a marketing strategy. Ford's automobile company brand image was
harmed and the company has a lot of suffered due to products recalls. For example
the Ford Focus recalls the car which has some problem. This has made a large cost to
the company as well as harm the brand image and make a bad impact to Ford's sales.
Furthermore, Ford automobile company lack of design phase and innovative design
structures on their new paddle of cars. This is because the technology not as well as
other it will influence Ford to cause the low productivity. Thus Ford can overcome
their weakness to achieve greatest of strengths. Apart of that, management is missing
focus on some lines performance because Ford automobile company expands more
business operations in diversified geographical areas. Next, Ford does not have an
effective cost management system and have not taken considerable efforts to
overcome. Ford has a small market share therefore the sale will decline the sales and
also due to global recession in the world finance market. That is the reason for

decline of sales. Another reason is Ford will manufacture the standard cars which are
not able to cope up with current market automobile.

Opportunities
Opportunities know as a favorable condition in the environment that could produce
rewards for the organization if acted upon properly. Ford has to expand more option
in designing the cars and commercial vehicles are expected to switch toward hybrid
electric engines due to the petroleum. Hence, Ford can build the car that run on
electricity that form of energy outside the petrol and diesel and to promote pass
through to the future opportunities that will be increasing. Ford has a chance to
become more environment friendly company with cleaner engine emissions because
hybrid engines are more fuel efficient less pollute than conventional gasoline and
diesel engines. Ford has a great opportunity to produce fuel efficient cars and
commercial vehicles. On the other way, Ford has one more option in designing the
cars and commercial vehicle based on electric engine. The Ford automobile industry
is having one more fuel efficient types whereas cars can run on renewable energies
like solar power and bio fuels. This can help the company to become pioneers in the
industry. The Ford's car is providing the facilities based on the travel habits of the
whole family. By the other way, the Ford car also is medium cost car which can be
giving affordable by the medium class people.
Threats
Threats are the meaning for a conditions or barriers that may prevent the
organization from reaching its objectives. The cost of petroleum is rising day by day
and remains to be in the state of uncertainly so that electric drive vehicle that is the
reason will be in high demand. On the other hand, the Ford growth and development
may effect by high-speed growth in amount of competitors in this automobile
industry. The main competitors of Ford are Nissan, Honda, Toyota, and so on. They
have also threatened Ford's market share. Besides this, Ford's capital spending is
indeed lower than the competitor. The reason is this capital spending has included
the research development expenditure which could influence the company from
going ahead. If other automobile manufacturers have new ideas, program and new
technology appear, that is also one of the threats to Ford Company. Therefore the
economy depression also will influence the consumer ability of buying. Thus, the
amount of sales will decline.

ENVIRONMENTAL FORCE
Competitors
FORD view environmental forces as uncontrollable and maintain passive and
reactive to the environment. In the automobile market, FORD is facing many
competitors like TOYOTA, HONDA and NISSAN. Competitors are affecting the
FORD Company by reducing the sales rate. In this situation, FORD is producing a
new model car which is FORD FIESTA this season of car is focus to attract young
people and ladies. Not only that but FORD Motor Company also focused on creating
a strong business plan that produce great products that contribute to this new
generation. As part of organization plan, the company may continue to press forward
to globalize automobiles platforms that can be adapted to meet specific regional
needs. Flexible manufacturing capabilities allow us to bring products to market with
greater speed and efficiency than ever before.
The marketers define the FORD companies as an oligopoly competition in the
market structure because in the market there are many substitutes available but only
one company offerings for another.
Economic force
As vehicle industry provide luxury product and services, the economy well being
plays an important role in determining the demand for vehicle. During the economic
prosperity, since there is significant increase purchasing power in people, usually
they are willing to spend on purchase on new vehicle. Marketer often expands their
product during in this economic stage. However, when there is happening recession
it will cause a high unemployment rate in economy. People will start to spend less on
luxury product such as vehicle or house. In this stage, people only will purchase the
product that are necessary or might choose to buy second hand vehicle only. New
vehicle not be the first choice for people to consider. Therefore, Vehicle Company
usually will produce less vehicle in the economic. Meanwhile, rising petrol prices
make more expensive for customer to drive petrol fuelled car. This reason might
encouraged consumers inclined to change their vehicle which operate using diesel.
Political Forces

FORD, along with other major automakers and the United Auto Workers (UAW),
opposed a congressional bill to raise the average fuel economy standards to 35 miles
per gallon by 2013. The organization believe that this would harm the SUV, pickup,
and minivan industry. Political factors it may also influence the strategic planning of
Ford Motor since government rules and regulations are concerned with the
production of more eco-friendly automobiles in the daily function of the company.
Due to the environmental concerns, the industry has to abide with the regulations
aimed for reducing the pollution levels. In the other hand, non-compliance attracts
heavy fines, which prove costly to the company. Not only that this regulations may
also drive Ford to manufacture environmentally friendly and fuel-efficient cars to
save the environment. In this situation, governments in a bid to lower the
unemployment rate discourage Ford Motors from fully automating its operation,
which would otherwise take up local jobs.
Social-cultural force
Cars usually are viewed as a status symbol by people around the world. A person's
influence and political status is reviewed by vehicle brands they hold. A person who
sitting a luxury car can show his was having a higher status compared to other.
Therefore, Ford intended to produce luxury cars due to growing demand on its brand
and due to the increasing celebrities and other delicate.
Technology force
New technologies and convenience safety features are at its best in Ford's
2010 paddle of cars. Technological advancements are inevitable for automotive
industry in order to compete with competitors and to become pioneers in the
industry by enriching new technologies. After Ford's new and improved 2.0-liter, 4cylinder Eco Boost engine to be launched to drive the upcoming year, Ford
also introduce 30 new power train actions globally in 2010. In case, Ford strives
to improve quality with virtual technology in their vehicles that provides real benefits
including reduction in injuries, improving quality. Thus, this all technology is helping
the company to become pioneers. Ford also produces a middle size car and
convenience safety cars for ladies. Besides that, Ford has competitive edge over
attracting the women for the cars designed specifically for women by women
designers in stereotypical view points.
Legal and Regulatory Forces

Ford Motor Company in relation to the Environmental Protection Agency adheres to

the legal aspects of environmental scanning. Ford Motor Company accepts an award
on March 2007 by the Environmental Protection Agency, Energy Star 2007 Partner
of the Year Award in Energy Management. The company is the first automobile
company manufacturer have been awarded prize for two years in a row. The award
has come to be presented by the company's commitment is to increase energy
efficiency and reduce greenhouse gas emissions from all institutions of society. In
this situation, the Ford Company is following the laws and regulation for producing a
vehicle. The organization is the responsible use of resources and energy Efficiency.
The leadership are recognizes that the legislation on environmental protection is of
great importance and encourages the use of Environmental Scanning in the right
direction for the future success.

PRODUCT STRATEGIES
Product is anything that can be offered to a market for attention, acquisition, use, or
consumption, which might satisfy a want or need for consumers. Products can be
tangible and non-tangible. Non-tangible products are the services offered by the
organization. Today, companies are creating and managing customer experiences
with their products.
Brand Strategy
The Ford classified the brand names of midsize cars, elegant and generous by
research techniques. Ford uses blue oval that Ford branding which determines price
and value. The Ford oval is proud and historic symbol for Ford Motor Company and
one of the most recognized trademarks in the world. This logo is the blue oval that
Ford released in 2003 in honour of the 100 years Ford Motor Company had been
around. It was named the "Centennial Blue Oval".
Packaging
Cars are generally not packed as they don't have much importance. Cars usually
don't get packed in a box, only if someone wants to gift it. Ford does not
use packaging.
Labelling
Labelling will be a small brochure about the Car parts specifications, so that they can
see how exactly the car works, and what and from where the parts are.


Product Design and Features
The Ford Fiesta has a Kinetic design. This design is ensure the smoother ride with
minimal noise, vibration and harshness. In this product have many features, such as
Ti-VCT Engine (Twin Independent Variable Camshaft Timing), 6-Speed Power shift
Automatic Transmission, Electronic Stability Programme (ESP) with Traction
Control System (TCS), Bluetooth with voice control, fuel efficiency, seductive centre
console and easy fuel.
Product Support Services
FORD Motor Company represents Ford Fiesta with better services and warranty.
Ford Fiesta is given 3 years warranty, this warranty is only valid on the condition that
the vehicle service as per recommended in the owner's manual at an Authorized Ford
Service Centre. Additional wear & tear items are not listed will be charged
accordingly. Besides that, customers are entitled for the free service at 10,000 km
intervals starting from 10,000 km till 60,000 km. The Coverage includes Engine oil
and lter changes, Multi-Point Inspections, Replacement of brake pads and linings
when worn, shock absorber replacements-is faulty, Spark plugs, Engine belts, Engine
hoses, Wiper blades, Powerful Protection for Your Ford Vehicle. Tyres originally
installed on Ford the vehicle are warranted separately by the concerned
manufacturer and not by Sime Darby Auto Conne Xion. Battery failure within the
first 3 years or 100,000 km, whichever comes first, will be covered under warranty.
Ford Parts and Accessories Warranty are require 1 year or 20,000 km, whichever
comes first and MUST be purchased and serviced by an Authorized Ford Dealer.

PROMOTION STRATEGIES
Ford has use difference promotional strategies to maintain their marketing edge over
the competitors. Ford is the one of the top 20th of the highest media spend
companies list. During the recession, the Ford starting to cut cost to reduced their
promotional budget and cancelled all the promotion advertising. Ford organized a lot
of campaigns and tied up with the long lasting sponsorships and regular to
conducted sport events. The advertisements and logos with attractive strap line,
amazing designs and advertisement are giving edge over competitors activities. Ford
promotional strategy have classifications 2 type of promotion such as above the line
promotion and below the line promotion. Above the line promotion are like mass

media such as television , news papers , radio and so on . Below the line promotion is
non-media advertisement like sponsorship, show, discounts to dealers and sales
promotion activities .
Advertising
The main purpose of the advertising is to promote and support for the sales force to
persuade the product to the public .Advertising is playing the important role to a
company because it use to promote the brand or service and to improve the
corporate image and sales. Advertising only can help toward the sales success. Ford
started advertising with strap line "Feel the difference" in order to create a brand for
Ford of Europe. Ford advertisement through attractive, unique pictures in news
papers.
Personal Selling
This is the way to maintain the good relationship with customers to keep on the sales
of the marketing. Personal selling is very useful for products which are complicated
to self analyze and understand. Ford product does not have any difficulties to the
customers. There are two teams to take care of product and offers other promoting
activities which is sales and marketing teams.
Public Relations/ Publicity
Public relation is referring to the non-personal communication such as art and social
science of analyzing trends, foresee their outcome. The public and organization's is
serve by the counseling leader and the implementing planned. Then Ford through
the publicity to boots up their sales by sponsorship Activities contest and other event.
Sales Promotion
The dealer giving some special offer of the product to attract the custom and also
improve the sales .The example of special offers related to customers such as
discounts, premium offers, free gifts price deals and so on. Some of the dealers and
merchandisers will get different promotional offers such as point of sale displays.
These offers are ensure for the dealers and the merchandisers use the proper way to
promote the product. Ford has followed a very successful way of sales promotional to
promote the new products which the sales will be improved. Ford has categorizes the
customers into different segments in order to achieve the sales objectives by provided
promotional offers to the customers.

DISTRIBUTION STRATEGIES
Distribution strategies are (Kurtz, 2010, p46) to ensure that consumers find their
products in the proper quantities at the right times and places.
Marketing Channel Distribution
For the marketing channel selection, Ford Motor Company uses this channel as
follow:
Producer Dealers Consumers
Vehicles that are manufactured at Ford factories are distributed to dealers through
road or train transportation. Consumers can buy the cars directly at the dealer's show
room.
Intensity of Market Coverage
There are 3 types of intensity of market coverage, which are intensive distribution,
selective distribution and exclusive distribution. Pride and Ferrell (2010, p400) state
that intensive distribution uses all available outlets for distributing a product.
Selective distribution uses only some available outlets in an area to distribute a
product. Ford use exclusive distribution which is use only one outlet in a relatively
large geographic. Exclusive distribution is suitable for products purchased
infrequently, consumed over a long period of time, or required service or information
to fit them to buyers' needs. Ford Fiesta is a luxury automobile and only available in
a select dealers' show room.
Supply Chain Management
Supply chain management (Pride & Ferrell, 2010, p388) is a set of approaches used
to integrate the functions of operations management, logistics management, supply
management and marketing channel management so products are produced and
distributed, in the right quantities to the right locations and at the right time. Ford
Motor Company has its own manufacturer to produce vehicle parts and combine it
into a car. The Ford car will be sent through road transportation and train
transportation to the dealer.
Channel Management Issues

Now Ford can sell the product through online. However, consumer cannot do the test
drive through website. So, it is a weakness of online selling the car.

PRICING STRATEGIES
All of the element in the marketing mix, price is the only one to generates revenue.
The other elements generate only cost. The profitability of a company is determined
by the price and the competition in the market contributes the maximum to the
important of pricing. Ford has implemented their own pricing strategies which is
more demand or market based pricing oriented. Ford has use new strategies call "
Blue Tag, is expending from its large car to the small car range. The price reductions
are between 6%-15% on the Ford Fiesta.
Price objectives and basis
The price objectives are the goals which are described the organization to achieve
which through pricing effort. The pricing objectives are included marketing
objectives and marketing mix strategies. Pricing basis is the initial price of a good
and it is without any extra charges. The will be increase when the more specification
of the car, the more the price basis of Ford product. The marketing objectives have
included marketing position, survival, current profit maximization, market share
leadership, and product quality leadership. Then, marketing mix strategies is target
costing, non-price position, cost, and organizational considerations.
New product pricing strategies
Setting the base price for a new product is a necessary part of formulating a
marketing strategy and is one of the most fundamental decisions in the marketing
mix. The Ford Motor Company is setting two types of price which is price skimming
and penetration pricing in the market industry. Price skimming is about the high
possible price that people afford to pay for the product and penetration pricing is to
competing brands and gain a significant market shares. For example, Ford Fiesta is
committed for consumer's safety like airbag, including our efforts to deliver top crash
test ratings that customers look to when choosing new vehicle. So the company set a
reasonable price for this model toward consumer.
Promotional pricing strategies
Price, as an ingredient in the marketing mix, is often coordinated with promotion.
The two variables sometimes are so interrelated the pricing policy is promotion-

oriented. The Ford automobile company makes promotion for the latest model
Fiesta. For example, Ford promote like cash rebate for sale to attract more
customers. Beside this, consumers will have a chance to get an iPhone4 and iPod as a
reward when the consumers purchase this model automobile. By using this kind of
promotion, it has been able to sell this model more than other competitors.
Pricing issues
Ford automobile may face many pricing issues like the price of materials that used to
produce the cars. If the materials price is rising, it will lower the profit for the
companies. On the other hand, the demand in market industry it also affects the
price, if the demand for Ford Fiesta is high therefore price will increase.

CONCLUSION
Limitation
The Ford product is expensive and only available for higher income people. The
design of car is not beautiful compare to other competitor car.
Recommendation
Ford Motor Company can produce the car which is suitable for average income and
lower income people. Ford Motor Company can try to create new design for the new
car and try to post it online to let consumer vote.
Conclusion
Ford product have few target markets and we have do some research of how Ford
Motor Company use SWOT analysis to sell their product. We also know how Ford
Motor Company uses 4 elements of marketing mix to sell the product to the
customer.