Ford Motor Marketing Plan Essay
This was the beginning of a series of “Firsts” for the company. Over the years, the company has continued to grow and its corporate strategy continues to be focused toward the everyday consumer. In the early sass’s, Henry Ford II designed and built the Ford GTAG,a high performance endurance racing car. He chose the acronym ‘GET’ meaning ‘Grand Touring to represent his quest for an American car to win on the International racing circuit. The number 40 represents the chassis height of 40 inches high.
The Ford GTAG won the 24 Hours of El Mans race for four consecutive times, from 1966 to 1969. It was the first win by an American automaker for a car exclusively built in the United States and this record still holds today. Today, Ford has continued to innovate and is a leader in the Electric and Hybrid vehicle market with the Ford Focus Electric, the Ford Fusion Hybrid and the C-Max Ford GTAG Marketing Plan By melancholy for and add to its successful racing car line, which currently involves the Ford Mustang.
The Ford Motor Company believes that the revival of the Ford GTAG will bring Ford’s superior knowledge of sports car technology combined with the fuel efficiency technology of a hybrid electric system for Ford’s introduction into the hybrid sports car arena taking on sports car leaders such as McClellan, Ferreira and Propose but having a more affordable product in the price range of the Dodge Viper and Corvette The Ford GTAG V hybrid will be a legend reborn – going further. The attest interpretation for the Ford GTAG will forego the retro body panels and have a sharper, more modern look combining safety and energy efficiency.
As the Ford Motor Company moves forward, the focus will be on vehicles that incorporate founder Henry Ford’s beliefs of being committed to providing a quality and reliability automobile to the everyday consumer while being environmentally conscience of today’s resources. 2. Situation Analysis: Demand trends are constantly changing, and Ford is no exception to market trends. Many car companies now offer hybrid options in one form or another; Ford itself already offers the Escape Hybrid, among other automobiles. In the global auto market, we can see uneven growth and distribution.
The car industry has also gotten to a point where a lot of flexibility and quick response times to suppliers are necessary to meet supply and demand for consumers. Technology drives the industry, and advances in digital, wireless, and processing technologies and software have leveled the playing field for product development in the auto industry. The integration of new technologies provides entertainment to passengers and improves navigation by sharing data across components in the car. The advanced electronics enable the cars’ subsystems to improve the driving experience and make the car more efficient.
As the economy continues to become more integrated globally, social and cultural factors begin to play a bigger role in the market. Economic and business conditions vary from market to market. China has become the fastest and largest growing country and economy in the world after the United States. The middle class is growing rapidly because of the industrial, agricultural, and global growth of the country. Supercargo competition from established market Juggernauts like Ferreira and Lampooning are fierce and fighting for a market share will be a top priority for the Ford Motor Company.
The media environment for the automobile industry is still a strong one. Auto companies spend an average of $50-$100 million a year on marketing and advertising, with Ford itself spending $80 million in 2013. Different media outlets where this money ends up are social websites, Ford’s own company website, print, television, radio, and outdoor campaigns.
2. 1 Company Analysis
The Ford Motor Company operates in the development, manufacture, distribution, and service of vehicles, parts, and accessories worldwide. The company engages within two sectors, Automotive and Financial Services.
The Automotive sector offers vehicles mainly under the Ford and Lincoln brand names. This sector markets cars, trucks, parts, and accessories through retail dealers in North America, and through distributors and dealers in South America, Europe, Turkey, Russia, and the Asia customers, including commercial fleet customers, daily rental car companies, and governments, as well as provides maintenance and repair services.
The Financial Services sector offers various automotive financing products to and through automotive dealers.
This sector provides financing products, which include retail installment sale contracts for new and used vehicles; leases for new vehicles to retail customers, government entities, daily rental car companies, and fleet customers; wholesale financing that comprise of loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital, purchase dealership real estate, and/or make improvements to dealership facilities, as well as insurance services. The Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan (Yahoo Finance, 2013).
2 Customer Analysis
Change in global climates is bringing pressure to everyone in the automotive industry to produce low emission cars that have a smaller carbon footprint. This segment of the market, however, is based on high cost and low profit margins. Evolving technology dictates cost and profit constantly. The target audience will be college graduates who are echo-conscious and wanting exceptional performance out of their vehicle. The target market is further segmented by the growing baby boomer population that is currently in the workforce and expected to remain at high to ultra- bevels of income through the age of retirement.
Demand for cars is currently growing in markets in India, China, and Eastern Europe, and the United States, while markets in Western Europe and Japan are stagnant or declining. Ford’s demographics focus more on the China and North American market. The continued expansion of growth in the Chinese market means there will be more incentive to sell for Ford so that they can have a large share of the market. Ford also plans to focus more on its European markets where there are niche categories and markets that have not been fully fleshed out yet.
With the expansion of the hybrid car market, customers now have more choices for products, and as a result, less product/brand loyalty. With that said, Ford must primarily focus on enticing new customers, and provide knowledge, education, and awareness about the Ford GTAG Hybrid to its existing/repeat customer base especially in the United States. 2. 3 Competitive Market Analysis The world of superstars is highly competitive with a never-ending pursuit of every manufacturer constantly trying to achieve an extra top speed mile per hour or gain another 5 horsepower.
The people who purchase these cars love every bit of the intention. With the reintroduction of the Ford GTAG as a Hybrid supercargo, we plan on offering the same level of performance as the best of our competition, yet offer a Hybrid supercargo for under $500,000. When Ford re-released the GTAG in 2004, it took the supercargo world by storm. For $149,995 Ford delivered a supercargo that would perform as well as any supercargo coming out of Europe for twice the price. Our goal is to compete by doing the same thing again, only taking on the new frontier of Hybrid superstars.
The car will take its style cues once again from the original 1964 legendary GTAG. Main Competition: Ferreira Ferreira founded the company in 1929. Ferreira has positioned itself as the premier supercargo. Owning a Ferreira is a badge of honor. Owning a Ferreira is the ultimate status symbol of automobiles. Fiat S. P. A currently owns Ferreira. Ferreira is also currently in the process of developing the La Ferreira Hybrid Supercargo. This car will have 963 horsepower and will be able to accelerate from 0-60 in under 3 seconds. Ferreira does not advertise traditionally.
Ferreira has a reputation that precedes itself. Ferrier’s main form of advertisement comes from their Fl racing effort. Ferreira has en able to position itself as an almost precious commodity by always producing fewer units than the market’s desire and making people wait on lists for over a year on some cars. Ferreira has been able to weather economic downturn by only catering to the ultra-wealthy all over the world. If an economic crisis hits, they do not feel the effects like a standard automotive company would due to the small number of cars they produce and the high demand for them.
Our goal is to go after the impatient customers who do not want to wait for over a year to take delivery of their Hybrid Strengths supercargo. Strong brand recognition and image Reputation as the gold standard for superstars Perfect blend of beauty and performance Status symbol Weaknesses Business model is based around low production numbers Waiting list often drives customers to competitors Their business model keeps them from fulfilling market demand ; efficiency Extremely high price of Ferreira Hybrid Audio Poor fuel Audio GAG is a German manufacturer of automobiles based in Inconstant, Germany. Audio is part of the V. W. A. G. (Volkswagen Automotive Group) based in Wolfhound, Germany. Audio was founded in 1932. Audio currently produces a supercargo called the RE. In 201 5, Audio plans on releasing their Hybrid version of the car that will have approximately 600 Horsepower. Audio is positioning itself as a more affordable and sensible alternative to the $1 million plus Hybrid superstars being offered. The Audio is reliable and comfortable in contrast to the Italian offerings, which are more like racers. Audio has Volkswagen as its parent company and has plenty of capital for promotion. The RE has been a tremendous success since its introduction.
Audio uses traditional methods of advertising for its standard car line but does not advertise the RE traditionally. The RE can be found advertised in magazines such as Rob Report, a magazine for the wealthy. Audio is a luxury brand but has nowhere near the brand value or loyalty of Ferreira. Audio will most likely be our toughest competitor since we are offering a similar car at a similar price too similar demographic. However, much like Ford, Audio is very susceptible to economic downturn. The majority of their revenue comes from mid-level luxury cars, a class of automobiles that is notoriously sensitive to economic downturns.
Strong brand recognition Large financial cash reserve World class engineering Reasonable price Luxurious compared to other superstars Technologically advanced Bland styling Uninspired driving experience compared to the competition ; Lacks exotic feel Propose Dry. Ferdinand Propose founded Propose S. E. In Stuttgart, Germany in 1931. They are currently part of the Volkswagen GAG family. Propose is a high volume manufacturer of sports cars. Propose currently offers the 918 Spryer Hybrid Supercargo at a base price of $845,000. The Propose comes with 875 Horsepower and 944 foot pounds of torque.
It has a 0-60 time of 2. 6 seconds and a top speed of 214 miles per hour. Propose has tremendous brand recognition and brand loyalty. Propose also has mom of the finest automotive engineers in the world that only design high- performance cars. Propose also has a strong racing effort that is a solid cornerstone of their marketing and advertising. Propose advertises traditionally with TV commercials and in print ads. Propose has positioned itself as the ultimate engineered automobile. A Propose is not as elite as a Ferreira but has a customer base who are Just as loyal.
The Propose 918 Spryer is not a traditional Propose however. The Spryer is going head to head with the Ferreira and McAllen Hybrid superstars that have a $1 million dollar plus price tag. Propose is susceptible to economic downturn, but this car is positioned to target the ultra-wealthy who are not as sensitive to economic troubles.
Reliable Stylish Ultra High Performance High price Limited availability Lampooning Lampooning S. P. A. Is an Italian Supercargo manufacturer that is based in Boldness, Italy. Lampooning was founded in 1963 and is now part of the Volkswagen GAG family.
Lampooning has always been known for their radically styled cars and world class performance. Lampooning is planning on releasing a Hybrid version of their popular supercargo, the Gaylord. The Gaylord currently shares a chassis with the Audio RE. Not surprisingly, they will share the same Hybrid perpetration as well. The Lampooning will be tuned for higher performance and have more aggressive suspension. The Lampooning will be produced in Italy whereas its counterpart, the Audio will be produced in Germany. Lampooning is positioned as the ultimate supercargo that is in direct competition with Ferreira.
Much like Ferreira, Lampooning that you also have to get on a waiting list for. Lampooning has very aggressive styling. Strengths Parent company V. W. A. G. Has large cash reserves
The car will benefit from the world class engineering of Audio ; Aggressive styling More reliable than Ferreira ; Harsh ride Not as high performance as Ferreira or Propose Weaker brand recognition than Propose or Ferreira ; Fewer dealers than competition Style is not universally liked ; Does not have the brand value that Ferreira has Jaguar Jaguar is a British automobile manufacturer that was originally founded in 1922.
Jaguar is currently owned by Data Motors of India. Jaguar is a manufacturer of luxury sedans and high performance luxury sports cars. Jaguar is known for their timeless styling. Jaguar is once again strongly considering giving the green light to produce the C-EX. Hybrid supercargo. The C-EX. Will feature a 0-60 time in under 3 seconds. It will be built from carbon fiber and will have a top speed of over 200 miles per hour. Financially Stable Large company Classic styling Luxurious Low emissions Efficient May or may not go into production Questionable reliability High price for a Jaguar at $1. Million dollars McAllen McAllen is a British automobile manufacturer of superstars based in Surrey, England. They were founded in 1989. They are owned by the McAllen Group, which also own a very successful Fl racing team. For the ultimate in superstars, McAllen is the go to automobile of choice. They currently offer the McAllen Pl, which is a Hybrid supercargo that has a base price of $1. 6 million dollars. The Pl comes with 903 Horsepower and 722 foot pounds of torque. The car is electronically limited to 218 miles per hour but could theoretically reach a maximum of 239 miles per hour if the limiter was deactivated.
The car has gorgeous styling and is hand assembled by a team fingerings. It will accelerate from 0-62 in 2. 8 seconds.
Strengths ; Hand built by 61 engineers ; Beautiful styling Very high power to weight ratio Ultimate in performance technology
The closest thing to a street legal Fl car Very high price Small dealer network and limited support Might have too much power Not well known in the United States We feel the market is perfect for the introduction of the Ford GTAG Hybrid supercargo.
Due to the low volume of the cars being sold in this segment, we find plenty of room and demand to offer a car steeped in racing tradition that will offer performance that is on par with the best Europe has to offer for less than half the price. Our competitors are not likely to change anything about their marketing strategy regarding their equivalent products due to the fact that they produce so few of them ND generally sell them for a premium before they even produce the automobile. We plan on going after the ultra-wealthy who are either high-end automobile collectors or people who are looking to purchase their first supercargo. .
External Market Analysis
Since 2007, the global automobile market has been hurt by the downturn of the United States’ economy as a consequence of the supreme mortgage crisis. In 2013, the unemployment rate started to drop and the economy is now showing signs of recovery. The automobile industry is slowly turning around as well, especially in the hybrid electric vehicle (HAVE) market. Currently, China has the largest and fastest growing economy in the world. Its purchasing power will be the highest of all nations. For example, in 2009, China car sales averaged 13. Million units which surpassed the United States demand for the first time (Gallinule, 2010). Additionally, the government has developed policies favorable to the electric-vehicle technology to help reduce urban pollution and the dependence on oil. The China government’s goal is to have five million hybrid electric cars and battery-electric cars on the road by 2020. According to Pike Research Report published 2nd Quarter 2012, the Asia Pacific region which includes key markets such as China and Japan is expected to experience the most significant economic growth from 2013 to 2017.
Europe and the United States will follow beginning in 2014, with forward economic indicator expansion at 3% per year through 2017. Prices for diesel and gasoline have a significant impact on demand for specific types of vehicles. High gasoline prices influence consumers to purchase hybrid. Thus, fuel cost by region is an important consideration when forecasting demand for electric vehicles. Western Europe is anticipated to have the highest fuel prices in 2017 ($12. 02/gallon for gasoline and $10. 04/gallon for diesel). By the same timeshare, fuel costs in North America will be lower than those in Asia Pacific (gasoline costs of $6. 0/gallon in North America vs… $7. 98/gallon in Asia Pacific) (Pike, 2012). With the above economic indicators, the markets are conducive for further growth
The technological environment is changing rapidly in a variety of ways that may affect Ford’s business. There is increased and steady growth in the number of HAVE models in Asia Pacific, followed by Europe and North America. Research indicates that the demand for Haves in North America will lead to the availability of 40 different models by the end of 2013, versus 14 HAVE models in Asia Pacific (Gallinule, 2010).
The automobile industry in the luxury division has continued to remain steady throughout 2007 to 2013 and is expected to grow. The introduction of HAVE luxury vehicles as well as HAVE sport cars by McAllen, Propose, BMW, Lexus, Mercedes will impact luxury and sports car sales. This introduction has opened the market for potential American known brand name introduction as well, which Ford believes will be to its benefit.
Political and Legal Environment
Governments are encouraging electric vehicle adoption by regulating the fuel economy and emissions of vehicles for environment, health and safety issues.
China is taking the lead by offering rebates such as CCNY 120,000 or approximately $18,000 in incentives in regions adopting the suggested regulations (Pike, 2012). In the United States, President Obama and his administration, the Environment Protection Agency and Congress are taking action to implement new standards and regulations for car makers. By 2016, the regulations will require vehicles to achieve 35. 5 miles per gallon. Currently, the standard is 27. 5 miles per gallon. They believe that the new regulations will preserve natural resources, increase energy efficiency and reduce carbon emissions (Gallinule, 2012).
Cultural and Social Environment
Consumer attitudes towards vehicles are dependent upon different features and typical drive lengths. Some commuters may drive to and from work at an average of 5 miles or upwards to 25 to 100 miles per commute. According to Pike Research’s report the market for electric vehicles will grow at 19. 5% from 2012 to 2017. Automakers are positioning themselves to appeal to customers by claiming that they re taking the necessary steps to reduce oil dependency and help the environment (Pike, 2012).
China’s highways and roads are small and difficult to maneuver with the high volume of travelers. This is a potential barrier to successful penetration into the market as quickly as anticipated. Also, local China manufacturers are entering the electric car market with smaller compact vehicles in competition with Ford’s existing hybrid brands. In the United States, the cultural environment is changing with the consciousness of the environment and social acceptance of the HAVE.
Strong Brand Name
Strong Position in the U. S.
Manufacturing Facilities in More Than 30 Countries
Reduce Fuel Consumption
Lighter than previous models
High Price Tag High Material Prices Possible Recalls Limited Potential Customer Base in some Markets. Global Recession
Ford’s Positive Attitude towards “Green/Environmentally Friendly’ vehicles ; Increasing Fuel Prices New Emissions Standards Faster Acceleration Due to Electric Perpetration Ability to Compete with Other Sports Car Companies
Product Innovation and Engineering by Competitors Production Issues.
Objectives Emerge From Company Objectives: This marketing plan focuses specifically on our company’s objectives, which include the following: increasing sales, improve product awareness, establishing ourselves in the hybrid sports car industry, and use of brand management. In increasing our sales we will be useful in driving our marketing needs. We feel our marketing will yield a great return on our investment and as a result our sales will exponentially exceed our marketing costs. As for product awareness, we will be focused on being very innovative to get our hybrid sports car out in the market and become well known.
Since we are part of the larger corporation of Ford we are able to have a good industry establishment, while making our product loudly known. Lastly, with brand management, we are going to work on being more than a short lived brand (aka Fiske), but rather a lasting entity in the market of hybrid sports cars. We are committed to delivering marketing excellence that enables our customers to drive a high-quality, green, safe, smart vehicle using state-of-the art technology. We will have several target markets for this hybrid sports car, one being the baby boomers who are now retiring and have the extra cash to spend on a luxury item.
The next target market will be Ford GET enthusiast. The ones who have been a fan of the model since the sass’s when the car was used for racing purposes. The last target market will be people who look at life and say, ‘l really need to have the best of everything. ‘ They look for precise handling in their vehicles, and precise functionality. Taking advantage of Within two years, the number of cars being produced (starting at 2500) will increase y 50% 1250 (to 3750)
– This increase of production will come from the customers’ demand in our target markets.
The retention rate of brand loyal customers will remain at 90% (not counting those in other target markets).
– This is an estimate of current customer retention rate.
Differentiation and Positioning:
Differentiation The Ford GTAG holds one distinct advantage over all our competitors. The Ford GTAG has a dealership and distribution network that is much larger than our competition. The GTAG can be serviced and supported at any Ford dealer. Ford has over 3,100 dealers in the United States alone. All of our competition in this segment only has dealers in the largest conurbations.
The Ford GTAG will come equipped with the ultra-dependable Ford Modular V, which lacks the required maintenance that our competition requires for the gasoline component of the Hybrid perpetration. The Ford GTAG has a tradition that is deeply based in automotive racing. We plan on exploiting the Gist’s racing roots and its domination over Ferreira in the sass’s. We have very unique styling compared to our competitors. Our styling is based on the cues of the original GTAG supercargo. Our car will be easily identifiable from a distance. We also have a very unique paint scheme.
Our biggest challenge is to get the potential target customer to relate the GTAG to the Ford brand. Many people are aware of the GTAG when they see it but fail to make a connection to the Ford brand. We feel that by building up and promoting the GTAG, the Ford brand will also benefit by affiliation with such automotive excellence. Lastly, we would like to associate this supercargo with the United States. All of the other Hybrid superstars are built in Europe. We would like to differentiate this car from the competition by promoting the fact that it s built in the United States by the Ford Motor Company.
Our car will be sold through any one of the over 3,100 Ford dealers in the United States.
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We plan to position this car as being on par with the Ferreira and Propose performance wise, yet priced below the Audio. We lack the high performance recognition with our brand that the competition has. We will position this car as a Ford product that will be sold through any one of the Ford dealerships. One of the struggles we face is that a perceived mid-level automotive manufacturer produces our Product. We have to stress the performance and racing history of the product.
We will not be able to charge a premium price that Ferreira and Propose are able to charge due to lack of brand strength. We will position our car as an ultra-high performance supercargo that is priced way below the competition and we will have no prestigious waiting list that you must sign up for in order to take delivery of your car like Ferreira. We would like to position this car as the ultimate in American automotive excellence. We will market this car on price and performance under the Ford nameplate.