The Marketing Strategy of Ford Motor

“THE MARKETING STRATEGY OF FORD MOTOR”

By SHISHIR PRATAP SINGH (REG No. 5141) OF VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT

UNDER THE GUIDANCE OF Dr.C.ANURADHA ASSOCIATE PROFESSOR

A PROJECT REPORT SUBMITTED TO THE FACULTY OF BUSINESS MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE AWARD OF THE POST GRADUATE DIPLOMA IN MANAGEMENT July 2010

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Declaration I Shishir pratap singh, hereby declare that this project titled “THE MARKETING STRATEGY OF FORD MOTOR” Is an original work carried out by me, under the guidance of DR.C.ANURADHA (Designation of faculty). The report by me is a bonafide work carried by me of my own efforts and it has not been submitted to any other university or published any time before.

Signature of the student Shishir pratap singh

Date: Place:

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Certificate Certified that this project titled “the marketing strategy of ford motor” is bonafide work of “THE MARKETING STRATEGY OF FORD MOTOR”, who carried out the research under my supervision, certified furthers, that to the best of my knowledge the work reported here is done not from part of any other thesis dissertation on the basis of which a degree or award was conferred one an earlier occasion on this or any other candidate.

Signature of the Faculty Guide Dr.C.Anuradha

Date: Place:

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Acknowledgement I would like to thank my Project Guide Dr. C.ANURADHA and project coordinator Prof. SUNITA RATNAKARAM for his immense guidance, valuable help and the opportunity provided to me to complete the project under her guidance. I would like to thank all faculty members of Vishwa Vishwani Institute of Systems & Management for guiding and supporting me in the completion of project from time to time. To initiate with anything I would like to record my sincere thanks to all members of FORD MOTOR LTD. Specially MR.IMAD AKHTAR (General Manager) MR.SHREEKANT (ASST MANAGER), ISSAQ PASSA and MR. ABID for providing assistance from time to time for this project. Last but not the least, my gratitude to great almighty and my parents without whose concerned and devoted support the project would not have been the way it is today.

Shishir pratap singh VVISM , Hyderabad

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Table of Contents

TOPIC

PAGE NO.

Title page Declaration by student trainee Certificate from company Certificate from guide Acknowledgement Content page Executive Summary Chapter. 1 Introduction a. Objectives b. Need for the study c. Scope & limitation

Chapter .2 Research Methodology

Chapter.3 Company overview Industry overview Literature review

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Chapter .4 Data Analysis

Chapter .5 Findings, recommendations & conclusion Annexure Questionnaire Documents supporting if any Bibliography

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PREFACE

S

ummer Training in any organization is an attempt to provide the student a practical input and exposure to the real world situation in which he has to work in future.

My training in FORD MOTOR was an attempt in this regard. The project work provided to me was a titled “The Marketing strategy of Ford Motor”. To developed the new business relation with different nationalized and private bank across the twin city Hyderabad and Secundrabad. I conducted the event show of popular “go fida” cars, the “ford FIESTA” and “ford FIGO” and met a lot of customer and got information from their side.

The Extract of the work is presented in this report under various headings as, Introduction, Company’s Profile, Project Introduction, Methodology, Data analysis, Suggestions and Conclusions.

This report provides me a chance to study and analyses the practical aspects of the topic (The Marketing Strategy of Ford Motor). It enhanced my knowledge in the field of marketing. This project also gave me the chance to improve logical thinking and interacting patterns.

While working on the project, I came to know about the latest marketing strategies and trends prevailing in the market. The way of promoting the products, providing a better convenience of customer, and developing the new strategic technique to sell the product.

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EXECUTIVE SUMMARY This project was really a challenge for me but I learned a lot while preparing this project basically FORD MOTOR LTD. Manufacturing the cars and providing better service to the customer, and it has new launched the “go fida”  FORD FIESTA  FORD FIGO This project high lightens the importance of financial institutions and banks role in car selling. This project also highlights the product promotion during the different bank visit firstly make aware the bank branch manager about the product. The project deals with the various aspects of marketing strategy and sales. New marketing strategy mean that creating new market area, developing the new relation, doing new promotion and advertising is done in relation to the 4 P’s of marketing that is Product, Price, Place and Promotion. There exist some opportunity in the marketing activity done by the company in the past. The new marketing strategy of the company will develop the mutual relation with banks and provide the quick facility the car finance to the customer. My topic of study is “The Marketing Strategy of Ford Motor” compared the Ford product with the other automobile product in the aspects of features, new technology, modern look, cheap price, luxurious interior design, mileage efficiency during the conducting of event show in entire area of the city.

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CHAPTER - 1

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INTRODUCTION TO THE TOPIC Today’s society is warm with urbanization and demonstration effect. With a view towards it, there are drastic changes coming up in all sectors even in the automobile Industries. The following information gives an insight about it.

In the present context the companies operate on the principle of natural selection – “Survival of The Fittest”. Only those companies will succeed which at best match to the current environmental imperatives – those who can deliver what people are ready to buy, according to their convenience.

But real marketing does not involve the art of selling what the manufacturers make. Organizations gain market leadership by understanding consumer needs and finding solutions that delight consumers. If customer value and satisfaction are absent, no amount of promotion or selling can be compensating. Hence the aim of marketing is to build and manage

Profitable Business Relationship This is a part of the strategic marketing done by every company to achieve it objectives and goals. To maximize the profits and long-term plans every organization has to follow a strategic planning. Marketing is much more than just an isolated business function – it is a philosophy that guides the entire organization towards sensing, serving and satisfying consumer needs. The marketing department cannot accomplish the company’s customer relationship-building goals by itself. It must partner closely with other departments in the company and with other organization throughout its entire value – delivery network to provide superior customer value and satisfaction. Thus marketing calls upon everyone in the organization to “think customer” and to do all they can to help build and manage profitable customer relationship. Marketing is all around us, and we need to know that it is not only

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used by manufacturing companies, wholesaler and retailers, but also by all kinds of individuals and organizations There are four major, powerful themes that go to the heart of modern marketing theory and practice, they are: 1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS. 2. BUILDING AND MANAGING STRONG BRANDS. 3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE. 4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE. What marketing is what it does and what it offers? “Marketing is a social and managerial process whereby individual and groups obtain what they need and want through creating and exchanging products and value with others.” “Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.” “Marketing offers some combination of products, services, information, or experiences offered to a market to satisfy a need or want” Marketing is an orderly and insightful process for thinking about and planning for markets. The process starts with researching the market place to understand its dynamics. The marketer uses research methodologies to identify opportunities, that is, to find individuals all groups of people with unmet needs or latent interest in some products or service. The marketing process consists of the following: 1. Analyzing marketing opportunities. 2. Developing marketing strategies. 3. Planning marketing programs 4. Managing the marketing efforts.

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Before taking any decision and achieving the goals, it has to make analysis of what to do, how to do, when to do, where to do and who is to do it. This is nothing but strategic planning. Goals indicate what a business unit wants to achieve whereas strategy is how to get there.

Marketing strategies in simple terms are the complete and unbeatable plans designed specifically for attaining the marketing objectives of the firm. Marketing can be called as a game plan for achieving its goals. Strategy choice will depend on whether the firm or the marketer plays the following roles:  Market leader  A challenger  A follower  A niche

The identification of objectives, both in quantitative and qualitative terms, is an essential backdrop to strategy formulation. Goals have a quality and time frame attached to them. These are typically spelt out in terms of financial return, market share, market presence, etc. Thus, the concept of market oriented strategic planning arises with the link between the products the manufacturer is dealing in and the market conditions. In this direction, our study deals only with the marketing strategies i.e. promotional strategies of the Ford automotives.

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OBJECTIVE  To develop the relationship with bankers to make the auto finance easy for customer.

 To know the factor of awareness of the cars.  To Study and analyze the Promotional Strategies of Ford.  To know whether the customers are satisfied with the offers given by the dealer.

 To find out satisfaction of the customers.  TO study and analyze the customer's perception regarding the usefulness/utility of

Ford cars.

NEED FOR THE STUDY •

To know the all market competitor of the product.

•

To understand the all features of product, which I should be promote.

•

To study history growth and development of FORD MOTOR in Hyderabad.

•

To provide important lead on customer convenience front to FORD MOTOR, which would be helpful in making increase the sell?

SCOPE OF THE STUDY •

The study is conducted for developing the mutual relationship with all private and nationalized banks.

•

The study was conducted in Hyderabad and Secundrabad area.

•

The study covers the customer’s perceptions and their most used product.

•

The study covers the customer’s perception for auto finance.

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•

The study covers the bankers perception, which automotive company they are sanctioning more.

•

The study was conducted to approach the customer those who are approaching for car loan.

•

The study covers the product promotion the new lunched product “go fida” the “ford FIESTA” and “ford FIGO”.

LIMITATION The present study is subjected to following limitation.  To develop the relationship through personal interaction by talking such appointment of Bank Manager and therefore bias becomes a major limitation.  Due to time constraints I have been visit only seventy five branch of different banks, and conduct seven event shows in different place of the city.  During the event shows I met a lot of customer some were intender and some were owner.  The sample was restricted to 75 banks and 10 event shows, which may restrict the scope and completion of study.  The scope of is restricted only to the twin cities of Hyderabad and Secundrabad.  Owing to their pre owned car, shortness of time and due to privacy some customers were unable to entertain.

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CHAPTER – 2

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RESEARCH METHODOLOGY MARKETING RESEARCH: Definition of marketing research as approved as by the board of directors of the association of American marketing association is: “Marketing research is the function which links the customer and public to the marketer through information – information used to identity and define marketing opportunities and problems generate define and understanding of marketing as process”. Simply, marketing research is the systematic design collection analysis and reporting of data finding relevant to a specific marketing situation facing the company. Carefully planning through all stages of the research is a necessity. Objectivity in research is all-important. The heart of scientific method is the objective gathering of the information. The function as marketing research within the company as to provide the information and analytical necessary for effective.

 Planning of the future marketing activity.  Control of the marketing operation in the present.  Evaluation of marketing results.

A research may undertake any of the three types of research investigation depending upon the problem. These types of research included: 1. Basic research 2. Applied research 3. Designated Fact Gathering

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APPLIED RESEARCH: It is attempt to apply the various marketing technique, which have been developed as research, first and later on they become applied research techniques. It is on attempt to apply the basic principles and existing knowledge for the purpose of solving operational problems.

STEPS IN MARKETING RESEARCH: Marketing research process can be out through following steps. Define the problems and research objectives Develops the research plan Collect the information Analysis and interpretation Present the finding. PRIMARY DATA: It consists of information collected for the specific purpose, survey research was used and he all the details of Ford and their competitors were contacted. Survey research is the approached gathering description and information.

SECONDARY DATA COLLECTION: The secondary data consists of information that already existing somewhere having been collected for another purpose. Any researcher begins the research work by first going through secondary data. Secondary data includes the information available with company. It may be the findings of research previously done in the field. Secondary data can also be collected from the magazines, news papers, internet other service conducted by researchers.

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METHODS OF DATA COLLECTION: The study includes in it the data collected through both primary and secondary sources. Primary data is collected with the help of structured questionnaire and personal meeting. Questionnaire is administered on the sample respondents. However there are certain cases where personal interactive method is followed with customers to find the satisfaction level.

RESEARCH METHODOLOGY: The respondents are the car owner of any company or intender of car and different banks managers of different branches. The survey was carried in twin cities of Hyderabad and Secundrabad with the sample size of 100. The survey was carried out with the help of a structured questionnaire, which help in accomplishing the research objective. The respondents by means of personal interview administer during the event shows this structured questionnaire.

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CHAPTER – 3

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COMPANY OVERVIEW COMPANY PROFILE TYPE

Public(NYSE:F)

Founded

June,17,1903

Founder

Henry Ford

Headquarters

Dearborn, Michigan, USA

Area served

Worldwide

Key people

William Clay Ford, Jr. Executive Chairman Alan Mually – President, CEO

Industry

A automotive

Products

Automotive goods and services

Revenue

US$120.1 billion (2006)

Operating income

US$-15.0 billion (2006)

Net income

US$-12.6 billion (2006)

Employees

283,000 (2007)

Divisions

Ford Credit, Ford division, Lincoln, Mercury, Premier Automotive Group

Subsidiaries

Automotive Components Holdings Jaguar, Land Rover, Volvo (cars only)

Slogan

Bold Moves, Have you driven a Ford lately?, Built Ford Tough, Built for Life in Canada ,Feel the difference, Make Everyday Exciting

Ford Motor Company is an American multinational corporation and the world's third largest automaker based on worldwide vehicle sales. In 2006, Ford was the second-ranked

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automaker in the US with a 17.5% market share, behind General Motors (24.6%) but ahead of Toyota (15.4%) and DaimlerChrysler (14.4%). Ford was also the seventh-ranked American-based company in the 2007 Fortune 500 list, based on global revenues of $160.1 billion. In 2006, Ford produced about 6.6 million automobiles, and employed about 280,000 employees at about 100 plants and facilities worldwide. In 2007, Ford had more quality awards from J.D Power than any other automaker. Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford and incorporated in June 16, 1903. Ford now encompasses many global brands, including Lincoln and Mercury of the US, Jaguar and Land Rover of the UK, and Volvo of Sweden. Ford also owns a one-third controlling interest in Mazda. Ford has been one of the world's ten largest corporations by revenue and in 1999 ranked as one of the world's most profitable corporations, and the number two automaker worldwide. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce, especially elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's combination of highly efficient factories, highly paid workers, and low prices revolutionized manufacturing and came to be known around the world as Fordism by 1914.

History Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John Francis Dodge and Horace Elgin Dodge who would later found the Dodge Brothers Motor Vehicle Company. During its early years, the company produced just a few Model T's a day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men worked on each car from components made to order by other companies. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the largest and most profitable companies in the world, as well as being

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one of the few to survive the Great Depression. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 100 years.

CORPORATE GOVERNANCE: Members of the board as of early 2007 are: Chief Sir John Bond, Richard Manoogian, Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), and Edsel Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr., John L. Thornton and William Clay Ford (Director Emeritus)

The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG) and Ford of Europe), Mark Fields (Executive Vice President, President (The Americas), Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice President, President [International Operations]) and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Credit). Paul Mascarenas (Vice President of Engineering, the Americas Product Development)

FORD IN INDIA Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which produced the Escort out of M&M Nasik plant. After meeting initial success, sales of the Escort was finally replaced by the Ikon in 1999. The Ikon marked a new beginning for Ford in India. It rolled out of the Marajmalaingar plant near Chennai and by now, the company had parted ways with M&M and was renamed Ford India Ltd in 1998. The Ikon was the first model by a multinational to be developed specifically for India. Though it was based on the

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Fiesta, it was a unique body style and was offered and was offered with an option of three engines, including a diesel. The car was a big hit. The Ikon underwent several face-lifts and price cuts to keep demand high. However, fresher competition and a reputation for highmaintenance saw sales gradually decline. After the arrival of the modern and highly-capable Fiesta, another made for- India car, with state-of-the-art engines, the Ikon has been marginalized. The Fiesta has picked up where the Ikon left and is selling well. Though the Ikon and Fiesta have been the mainstays of Ford’s production in India, the company has had limited success with other models. The Mondeo, launched in 2001, was a very talented car by was simply not suited to Indian conditions and earned a reputation for being exorbitant to maintain. The Endeavour SUV was launched in early 2004 and has sold well for its niche. The Endeavour has recently been upgraded in 2007 and this has boosted the appeal of the big SUV. In 2004, Ford launched the Fusion, which has received a lukewarm response though the recent diesel variant has perked up sales. The Ford Figo is Ford’s new subcompact automobile that went on sale on 10 March 2010 in India. It is based on the Ford Global B platform, and is built only in Chennai, Tamil Nadu to be sold worldwide. Four different Figo models – LXI, EXI, ZXI and TITANIUM, will be available with different trim levels and designed to suit a variety of consumer tastes. All models also will be available with a Duratorq diesel engine option.

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Fortune Ford is an authorized dealer for Ford India Limited, who is one of the leading manufacturers of top quality cars in India, with many variants in the offering. Fortune Ford is a 50:50% Joint Venture set up between two well known and reputed families in Hyderabad, the Modis and the Babu Khans.

Fortune Ford is a blend of experience and youth. The experience and good will that Mr. Misbahuddin Babu Khan and Mr. Pramod Modi enjoy blend very well with the youth and energy of the youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world class Ford Dealership. Fortune Ford markets and services the recently launched the popular “go fida” the “Ford FIESTA” and “Ford FIGO” and the ever-popular Ford Ikon Flair, the No non-sense car Ford Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales outlet is located strategically at Somajiguda next to Eanadu. We have two service centers, one at Chapel Road, Abids opposite Stanley College and other one at Fathebagh, Santhnagar. These centrally located outlets provide convenient and easy access to both the proud owners as well as prospective buyers. The workforce at Fortune Ford is committed to excellence in serving all esteemed customers. The Sales Team is made up of dedicated showroom and field executives who are professionally trained by Ford India Ltd. They are adept at guiding the customer through the entire sales process right from assisting in the choice of model, colour and features to lending a helping hand in providing attractive buyback options and also arranging finance at competitive rates. The Service Centre is armed with the state-of-the art equipment and is in-line with Ford's exacting Global standards. The service team is technically qualified and trained to analyze and provide solutions adhering to Quality Care, in order to satisfy even the most demanding customers. The Fortune Ford dealership maintains a high standard of excellence in sales and

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services by sending its personnel for training on a regular basis to Ford India Limited, to update them with the latest technological advances in the automotive sphere.

SHOWROOM We have 5000 staff centrally air conditioned showroom, located in the heart of the city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes convenient for almost every one residing in and around Hyderabad and Secunderabad.

The facilities offered from the showroom are: 1. Very easy finance facility with in-house finance team to cater to your every car finance requirements. All the leading finance counters are available like ICICI, HDFC, KOTAK, SUNDARAM, SBI, SBH, ANDHRA BANK, CORPORATION BANK, SOUTH INDIA BANK, AXIS BANK, ORIENTED BANK OF COMMERCE,PNB etc. 2. Exchange offer for any of your used car. Free spot evaluation for any used car. 3. Professionally trained and courteous sales staff to take care of every relevant need of the customers. 4. Ford preferred insurance for cashless transactions in the event of claims. Special offers on Insurance renewals. You can also renew your insurance by just making call to our Service marketing help line 9848885962. Showroom @ Somajiguda 5. Full range of Ford cars with all colors and models to choose from. 6. A good stock of Ford genuine accessories to make your Ford ownership more delightful and safe. 7. A well maintained fleet of test drives cars to give you the feel and experience the drive Dynamics on actual driving conditions before take the purchase decisions. You can call our sales help line for test drive or fill the on-line test drive requisition form.

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Significant milestones  The first Indian built Ford Escort rolled off the assembly line in 1996.  The Company was able to deliver Ford Escort in major cities simultaneously, in just a

month after booking.  The Special Value Pack program was launched in 1997, with commemorative

'Freedom', followed by the petrol and diesel driven 'Anniversary'. Recent SVPs have included the Orion, Alpha and Sport - E.  Ford Escort won the J D Power Award in India Quality Survey in 1997.  Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in the

Customer Satisfaction Survey.  Quality Care, Ford's branded service initiative, provides car owners with superior

services at its dealership countrywide.  The new, integrated manufacturing plant was dedicated in March 1999, where FORD

IKON is manufactured.  Ford India launched Ford Assured on April 24 2000, a new initiative to buy and sell

used cars of all makes.  On September, 11, 2000. Ford India launched the Ford IKON SXi – the stylish ‘josh’

Machine  Ford India has started exporting Ford IKON 2001 Ford India launched the Ford Mondeo. 2002  Ford India show cases a wide spectrum of exciting cars at the Auto Expo  Ford India Limited announced a strategic partnership with Hindustan Motors Limited  Certified QS 9000: 1998, 3rd edition on March 21, 2002 Ford India received the QS 9000 award from TÜV Süddeutschland.  New Ikon Variant 1.6 EXi was launched 2003: 26

 The New Ford Ikon NXT launched - The Next Level of Josh.  Adding Refinement to Josh- Ford India launches Ikon NXT ‘Finesse.’

 Ford Celebrates Centennial in India.  Ford India launches Ikon NXT SXi.  Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study.  Ford launches Ikon Flair at Rs. 4.95 Lakhs. 2004: Autocar SUV of the Year – Winner Ford Endeavour. In year 2007:  Ford Motor Company of Southern Africa achieves three wins and two seconds this

total economy run.  DOE award Ford two grants for vehicle fuel efficiency research.  Ford Mondeo is auto express car of the year.

 Land rover discovery 3 scoops category win at TOWCAR AWARDS 2007  Ford Mondeo is the Caravan Club TOWCAR of the year 2008. Department  2010: Ford launches “Ford FIGO” in 4 variants FIGO LXI, EXI, ZXI, Titanium in

both diesel and petrol version.  MANAGEMENT PROFILE: ARVIND MATHEW – Managing Director and President Arvind Mathew is the Managing Director and President of Ford India. He took this position in August 2005. LUCY MILLAR – Vice President, Finance & IT Lucy is the Vice President of Finance and IT at Ford India. She took up this position in May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India. 27

SCOTT McCormack – Vice President, Marketing, Sales & Service Department of Management Studies [27] V. K. P. G Marketing Strategies of Ford Motors Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He took this position in July 2006. Scott reports to Arvind Mathew, President and Managing Director, Ford India. NANCY REISIG – Vice President, Human Resources Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford India. SANDIP SANYAL – Vice President, Supply and Total Value Management Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford India. He took this position in September 2005. Sandip reports to Arvind Mathew, President and Managing Director, Ford India. STEVE BRIDGMAN – Country Manager, Ford Credit

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PRODUCT PROFILE

Ford Fusion. PRICE(lacs)

Engine: Type

4 Cyl. In – Line, 16 – V DOHC

Construction

All Aluminum Alloy

Fuel System

SEFI

Displacement(cc)

1596

Compression ratio

9.75:1

Max. Power (ps/rpm)

101/6500

Max. Torque (nm/pm)

146/3400

Emission Stage

Bharat Stage III

Kerb weight(kg)

1143

Transmission

Manual 5 speed

Max speed(kmph)

174

Mileage

11.3

29

FORD ENDEAVOR: PRICE(lacs)

(4X2) (4X4)

16.16 17.17

Engine : Type

2.5 litre, 4 Cylinder in-line, Turbocharged &

Displacement (cc) Max. Power (PS/rpm) Max. Torque (kgm/rpm) Ignition System Valve System Fuel System Emission

inter-cooled diesel 2499 116/3500 28.5/200 compression SOHC, 12 Valves indirect Injection Mechanical Pump Exhaust Gas Recirculation (EGR) Meeting

Kerb weight (kg) Transmission Max speed (Kmph) mileage

Bharat Stage III Norms 1933/1958 Manual 5 speed 142 8.2

FORD FIESTA: Engine

1.4 EXI

Price in (lacs) Type

6.76 7.28 8.28 4 Cylinder in-Line, 16 Valve

Construction Fuel System Displacement

1.6 ZXI

1.6 SXI

DOHC All-aluminum Alloy 1388

1596

1.4 ZXI

1.4 SXI

(TDCi) (TDCi) (TDCi) 8.00 8.52 9.91 4 Cylinder in-Line, 8 Valve SOHC

SEFI cc

1.4 EXI

1596

30

High Pressure Common Rail 1399 1399 1399

Compression Ratio 9.75:1 9.75:1 9.75:1 18.1 Max. ps/rpm 82/6000 101/6500 101/6500 68/4000

18.1 68/4000

18.1 68/4000

160/200 0

160/200 0

Power Output Max. Torque m Emmision

Nm/rp

Compliance Transmission Type Kerb Weight (Kg) Max Speed (Kmph)

127/400 146/340 0 0 Bharat Stage III

146/340 0

160/200 0

5 Speed Manual 170/178 14.75/13.6

Mileage

FORD IKON: PRICE(lacs)

Engine: Type

4 Cylinder, 8-V SOHC, Rocam Petrol

Fuel system

SEFI

Displacement (cc)

1299

Max. Power (ps/rpm)

70/5500

Max. Torque (Nm/rpm)

105/2500

Transmission Type

5 Speed Manual

Kerb Weight (Kg)

978

31

Max Speed (Kmph)

148

Mileage

10.8

FORD MONDEO: Price

6.59

Engine : Engine type

2.0L 16V DOHC Petrol

Displacement

1999 cc

Max power

142.7 PS/6000 rpm

Max torque

185 Nm/4500 rpm

Compression ratio

10:8:1

Values

16V DOHC

Fuel injection

Sequential electronic fuel injection (SEFI)

Emission level

Bharat Stage III

Construction

All Aluminium Alloy

Transmission type

Ford MTX-75 manual 5-speed with synchromesh

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Kerb weight(kg) Max speed (kmph)

200

Mileage

8.6

FORD FIGO: Ford unveiled its new small car "Figo" in September, 2009 in New Delhi with Alan Roger Mulally, Ford's president and chief executive, making a lightening visit to the country for the unveiling. And now Figo has been launched and will compete with the likes of Maruti Ritz Hyundai i10, Honda Jazz & Skoda Fabia, Maruti Swift VXI, Maruti Suzuki, Swift VDI (ABS), . The Ford Figo, a new nameplate and a fresh face on the Indian market. The Ford Figo has been launch in 4 variants of both diesel and petrol model. Key dimension overall length mm

3795

Width mm

1680 without outside mirror

Height mm

1427

Wheel base mm

2489

Ground clearance mm

168

Fuel capacity (L)

45

Turning circle radius (M)

4.9

Boot space (L)

284

Engine

Petrol

Diesel

Displacement (cc)

1196

1399

Values /OHC

16V DOHC

8V SOHC

Fuel System

SEFI

Common Rail

33

Max power PS(KW)@RPM

71(52.4)@6.250

69(50.7)@4.000

Max Torque NM

102(10.4)@4.000

160(16.3)@2.000

(KGM)@RPM Transmission

5 speed Manual Transmission

Wheel & Tyres Wheel Size

175/65 R14

Type

Radial , Tubeless

Suspension Front

Independent McPherson Strut with Dual path mouth

Rear

Semi –Independent Twist Beam ,Coil Springs

Brakes Front

Ventilated Disc

Rear

Drum

Steering Type

Hydraulic Power Assisted

Kerb Weight

LXI

EXI

ZXI

Titanium

Petrol

1040

1060

1075

1090

Diesel

1090

1105

1115

1130

Ford Figo Petrol Titanium V\S Facing Competitions Features

Ex- Showroom Front power windows

Figo

Hyundai

Maruti

Maruti

Titanium

i10 sports

Swift VXI

Ritz VXI

4.43

4.47

4.61







4.50 

34

Intelligent central locking



Not

Not

Not

intelligent

intelligent

intelligent

Body color outside mirrors & door





headles Rear Wiper





Rear washer





Rear Defogger





Mp3 player +4 speakers + Axin port





Bluetooth connectivity Dual airbags

 

ABS + EBD



Programmable remote key



Driver seat height adjust



Electric Adjust Mirrors



Electric Boot Release



Distance to Empty



Anti drip Wipping



6 Speed intermittent wipers



Ford Figo Diesel Titanium V\S Facing Competition Features

Figo Titanium

Ex- Showroom

4.39

Front power windows



Intelligent central locking



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Maruti Suzuki

Maruti Suzuki

Swift VDI(ABS)

Ritz VDI(ABS)

5.44

5.30





Not intelligent

Not intelligent

Body color outside mirrors & door







headles ABS + EBD







Rear washer





Rear Defogger





Mp3 player +4 speakers + Axin port





Bluetooth connectivity



Dual airbags



Rear Wiper



Programmable remote key



Driver seat height adjust



Electric Adjust Mirrors



Electric Boot Release



Distance to Empty



Anti drip Wipping



MARKETING STRATEGIES OF FORD Product differentiation based on operational efficiency: FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its offer on the plank of service. It has gone in for a new norm in customer service: “fix it right-the first time-on time”. Ford is also supplying videotapes showing how repairs have to be done.

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Adopting Offer to Suit Target Segment: Ford modifies its models for India: Ford modified its models for the Indian target segments as shown below: ➢ Higher ground clearance to make the car more compatible to the rougher road surface in India. ➢ Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian roads. ➢ Changes in cooling requirement, with greater airflow to the rear. ➢ Higher resistance to dust. ➢ Compatibility of engine with the quality of fuel available in India. ➢ Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe.) Strategic segmentation of cars: The Ford in India has launched the car only for few segments of people. The segmentation of car buyers based on price preferences is. Family car segment: These cars form a reasonably sizeable segment of the market (Around 15 percent). Preferred price range is from 5 lakh to 6 lakh. ‘FORD IKON’ AND ‘FORD FUSION’ come under this type of segment. Premium car segment: This segment represents buyers who need a real world-class car and are willing to pay the due price. Preferred price range starts from 4 lakh to 12 lakh. ‘FORD FIESTA’, ‘FORD MONDEO’ and FORD FIGO come under this segment of cars. SUV segment: The buyers of this segment like to have big vehicles. And these cars are also useful for sport riding and even on hill areas. There body is designed similar to off-road vehicles, which can withstand to Indian roads. ‘FORD ENDEAVOUR’ occupies this segment.

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STRATEGIC PROMOTION BY FORD Ford follows the promotions at two levels, they a 1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level. In the first step the products of vehicles manufactured by the Ford Automotives are directly promoted by the manufacturer by him. He follows many promotional strategies like 1. Advertising through television and newspaper. 2. Internet or interactive marketing. 3. Direct marketing. In the second step the dealer of the vehicles promotes the vehicles. The various promotional strategies followed by the Fortune Ford at dealer are 1. Advertising though news papers, radios, palm plates. In this all the features of the product and its prices are given in detail to the customer. 2. In televisions the scrolling are given about the product and its features. 3. Promotion by conducting event shows on road side, bank campus, and market fair. 4. Hand to hand pamphlet distribution through demo about product in market side.

Hoardings: A heavy picture of the product which comprises of its attributes and special features are displayed on the roadsides in the form of hoardings. It is a bit expensive strategy but attracts many people who pass by that roadside. This type of advertisement is prepared for those

38

segments of people who cannot afford their time in reading newspapers and watching televisions. While travelling from their home to office, moving on their business activities they may watch these hoardings. These hoarding are especially setup at the road signal stops.

Maintaining Data Bank: In this the dealer collects personal/bio-data (address and contact number) of many people from various organizations and different sector who are ready to buy the vehicles and who change the vehicles regularly. These people are met-in person or contacted through their contact number. The various new features and new offers regarding the vehicles are advocated to them and are given discounts on group purchase of vehicles, i.e. if 5 or more friends in the group purchase the cars at a time then they are given special discounts on the vehicles.

Free Insurance: The Fortune Ford gives a special offer of free insurance on the purchase of each Vehicle to its new customers

Relationship Marketing: Fortune Ford pays a special attention towards its old customers. To retain the old and existing customers it conducts a corporate meet at a luxurious hotel. The event aims at knowing the problems of the customers regarding the vehicles and also service feedback. In this way it maintains an effective relationship with the customers and gains the reputation and goodwill in the minds of the customers.

Sales Promotion: The sales promotion is done in the fortune ford at three levels:

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1. Showroom sales: In this the customers walk in to the showrooms to know about the details of the product. Specially trained sales executives who are present in the showrooms give a detailed explanation about the product to the customers. Sales executives give a detailed note on the products features, various offers given by the manufacturer and also by the dealer to the customer and enhance the sales of the vehicles.

2. Corporate sales: A special team of sales executives are sent to some big corporate sectors and there they personally meet the heads of the organizations like C.E.O’s, Managers etc., and explain about the vehicles and the offers and special schemes provided by the dealer to them on bulk purchase of the vehicles and try to promote the sales of the vehicles.

3. Field sales: The sales executives conduct some events with the corporate working people and try to demonstrate the product features and its benefits and try to promote the product and increase its sales.

CONDUCTING CUSTOMER DELIGHT PROGRAME: This is a unique program conducted by the Fortune Ford. This is a program conducted to retain the old customers of the Ford. The old customers of the Fortune Ford are meeting personally and they are requested to give their feedback by filling in the questionnaire which is specially prepared for them. In this questionnaire their problems regarding the vehicle and also their post sale service experience are taken. If there exists any problem, then the Fortune Ford service men try to resolve the problems of their customers as soon as possible and makes the customer satisfied. This is a technique to attract the new customers by satisfying the old customers and gaining goodwill in the market.

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STRATEGIC SALES STANDARDS: Fortune Ford maintains strategic sales standards in the following manner:•

The Sales faculty is clean, tidy and inviting, making customer’s comfortable while purchasing products and availing services.

•

Customers are courteously acknowledged within two minutes of their arrival and are advised that a Sales Consultant will be available upon request.

•

The Sales Consultant’s appearance and dress will be of the highest standards.

•

An advisory relationship is established between the customer and the Sales Consultant who listens to the customer, identifies their needs and ensures that they are met.

• A pleasant, non-pressured purchase experience will be provided during which a thorough demonstration of the vehicle features and benefits will be made. • A test drive will be offered to all customers. • Using a check list, the Sales Consultant delivers the vehicle in perfect condition when promised. • Customers will be contacted within one week after delivery to ensure total satisfaction.

MAINTAINING SERVICE STANDARDS: • An efficient service facility allows a customer to avail all the service provided by Fortune Ford, in a clean and welcoming environment. • An appointment is available within 5 working days of the customer’s request. • Customers are courteously acknowledged within two minutes of their arrival and the write-up will begin with five minutes.

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• Service needs are courteously identified, accurately recorded on the repair order and verified with the customer. • The vehicle is serviced right on the first visit. • The vehicle is ready on the agreed upon time. • A through explanation of work done, warranty coverage and charges is given to the customer. • All service repair work will be followed up within five working days. • Each vehicle will be washed before being returned to the customer. TOTAL MAINTENANCE PLAN  Cost of ownership is the key factor while considering vehicle purchases  As part of regular maintenance, customers spend on a) Maintenance parts that are to be replace at specific intervals b) Replacement of worn out parts c) Labour charge for the above  A comprehensive maintenance plan by Ford will serve as a good tool to improve the service experience and minimize concerns on cost of ownership of the vehicle  Total Maintenance Plan (TMP) is a complete service solution provided to the

customer. This enables the customer to have total peace of mind in the form of a “Maintenance Holiday. What does it cover? •

Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark plugs etc.

•

Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch Plates, Lower Suspension Arms, Shock Absorbers etc.

•

Mechanical/Electrical repairs

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•

Labour for all the above What does it NOT cover?

•

Accident repair

•

Tyres

•

Fuel

Benefits to the customer 

In case of total loss, can be cancelled



Ford factory backed programme.



Diagnosis/repairs as per recommended standards and practices



Vehicles serviced by Ford trained and certified technicians department



Total peace of mind



Increased residual value of the car



Only Ford genuine parts are used



Can avail this service across the country at all Ford authorized outlets



Transferable

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INDUSTRY OVERVIEW INTRODUCTION TO AUTOMOBILE INDUSTRY One of the fastest growing industries in the world is automobile industry. This automobile industry has its influence on the Indian market. Probably automobile Industries occupy a large market share in the worlds market as well as in the Indian market. Nearly 18% of the total national income is being incurred from the automobile industry. From this we can estimate how important the automobile industry in the improvement of GDP of a country is. In India automobile industry has a growth rate is at the average of 10-12%.

INDIAN AUTOMOBILE INDUSTRY SINCE 1947: It’s fascinating drive through history, which begins as a story of isolation and missed opportunities to one of huge potential and phenomenal growth. India’s fixation with socialism and planned economies had a crippling impact on the automotive industry in its formative years. The goal at that time for independent India was self-sufficiency. Issues like quality and efficiency were simply not considered.

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Dependence of foreign technology was banned and manufacturers were forced to localize their products; import substitution became the order of the day. Though we learnt to localize, the cars we made were all outdated designs with little or no improvements for decades. The automotive industry stagnated under the government’s stifling restrictions and the Indian car buyer was saddled with cars of appalling quality and even then there was a waiting list that at one point stretched to eight years! This attempt at self-reliance failed miserably because of the industry’s isolation from the best technology. The Japanese and later Korean auto industries were also highly protected in their formative years but they never shut the door on technology. Instead, they relentlessly tapped the best talent pools in the world to absorb they know, how to produce good cars.

One of the most important chapters in the Indian automotive industry’s history was written by Maruti. It marked the Indian government getting into the far business in the early 1980’s, a radical shift in thinking after decades of treating cars with disdain. The Maruti 800 went on to become the staple car of India and put a nation on wheels. This little car set a benchmark for price, size and quality and structured India as small car market. It wasn’t till 1993 that things really started to change for the Indian car buyer. With the liberalization of the economy, a host of international carmakers rushed in. But most of them were in for a shock as Indian customers rejected their product. Indian customers refused to allow the glitter of prestigious brands blind them to the outdated and overpriced products they were offered. The Indian consumer wanted super value, and rewarded the brands that delivered it, handsomely.

Hyundai and Maruthi delivered, and profited. The period also saw the emergence of the Indian players like Tata Motors and Mahindra & Mahindra. They rose to the challenge of the

45

MNC’s and responded brilliantly with the Indica and the Scorpio. This was ironically due to the license raj that forced Indian carmakers to be innovative and develop products frugally. India’s frugal engineering skill has now caught the world’s imagination, and an increasing number of carmakers are preparing to setup major capacities here. India is changing and changing fast. It’s moving forward. India’s largest-selling car is not its cheapest car, the 800. It is the Alto. People’s aspirations are rising and so are their mistakes, have got their finger on the pulse of the market. Get the right product and the rewards are handsome. The Indian auto industry is today bubbling with promise and confidence. It’s been a long journey but to see where the Indian car industry is going. We have to see where it has been.

AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE: The first motorcar on the streets of India was seen in 1898, Bombay had it first taxicabs by the turn of the century. In 1903, an American company began a public taxi service with afleet of 50 cars. For about 50 years after car arrived in India, cars were directly imported. Before World War I, around 40,000 motor vehicles were imported. During the years between the wars, a small start for an automobile industry was made when assembly plant were established in Bombay, Calcutta and Madras. The import/assembly of vehicles grew consistently after the 1920s, crossing 30,000 units by 1930. It was during the end of the war that the importance of establishing an indigenous automobile in India was realized. Premier Motors, Hindustan Motors and Mahindra & Mahindra set up factories in the 1940s for progressive manufacture rather than assembly from imported components. The cars they chose to make were the latest in the world when they were introduced in India in the formative years of the industry.

POST- INDEPENDENCE: The government clamped down on imports and foreign investments. Companies like

46

GM and Ford packed their bags and left. India’s clock, thereafter, stood still while the world raced on ahead. It would take nearly 50 years before the Indian auto industry could catch up with the rest of the world again.

BROADBANDING ERA: In January 1985, the government announced its famous ‘broad banding’ policy which gave new licenses to brad groups of automotive products such as two and four-wheeled vehicles. Through a liberal move, the licensing system was very much intact. A manufacturer had to submit a phased-manufacturing programme to the Ministry of Industry specifying the indigenization progress and allowing for almost complete indigenization within five to seven years. The biggest hurdle was the foreign-exchange clearance required for these projects. Except for MUL, which had direct access to policy-makers, every other manufacturer still faced a series of obstacles. Several new products were launched during this period. All three traditional carmakers added new models to their ranges – Standard Motors returned to the car business after 10 years, when in 1985 it introduced the Standard 2000, a Rover SD1 body with the old two-litre Vanguard engine. HM bought in a 1972 Vauxhall Victor in 1985, transplanted its ageing Ambassador engine into it and the Contessa was born.

THE BIRTH OF THE AMBASSADOR: In 1957, a small tail fin was added on either side of the rear fenders, along with a new, dimpled hood, and the car was re-christened the Ambassador Mark I. The car cost Rs.17,000. In 1963, it underwent a frontal facelift with a closely checkered grille and was named the Ambassador Mark II. It would be another 12 years before the Ambassador got a facelift. In 1975, another minor facelift to the same grille and a much bigger frontal facelift turned out as the Mark III. The Mark IV, launched in 1979, was the last of the Mark cars. The Ambassador

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Nova was launched in 1990, followed by Ambassador 1800 ISZ three years later. The Nova was the last Ambassador powered by the 1489cc petrol engine. In 2004, HM launched the cosmetically-revised Ambassador under the Avigo name. Designed by Mavendra Singh, the retro look Avigo had classic touch internals like a centrally mounted console, beige-colored seats and wood finish interiors.

THE CONTESSA YEARS: .The Hindustan Contessa, launched in 1982, was one of the few luxury cars manufactured in the country in the 1980s and 1990s. It was based on the 1970s vintage Vauxhall victor. While it was initially launched with the 1489cc engine found in the Ambassador, the Contessa was soon given the Isuzu engines. There were three versions of this car - 1.8GLX (Isuzu petrol), 2.0DLX (Isuzu diesel) and the rare 2.0T (Isuzu diesel, turbo). The last Contessa rolled out in 2002, phased out by the demand for cheap Japanese cars. Some of the leading Indian auto players in Indian automobile industry are: ➢ Premier, ➢ Tata ➢ Mahindra and Mahindra ➢ Maruthi ➢ Hindustan motors

PREMIER The story of premier is the story of one man’s vision, Seth Walchand Hirachands. He not only give India its first car factory but also the country’s first aircraft factory Hindustan Aeronautics Limited and the country’s first modern ship yard, Hindustan Shipyard Limited

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BUILDING INDIA’S FIRST AUTO FACTORY Seth Walchand Hirachand has first started the trails to establish an Indian car manufacturing plant in Indian for which he went to U.S.A. where three largest car manufacturing companies are located. He wants Indian company to be completely independent, with Indian management capital and employees, paying royalty or technology transfer payment to western countries. After approaching General Motors they insisted on part ownership. Seth Walchand then moved to second largest automaker Ford; Henry agreed, but delegated the project to Ford of Canada, which refused. Finally the third largest automaker Chrysler agreed and singed in an agreement in Bombay in 1940.

THE ARRIVAL OF FIAT: In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the tariff commission spelled out future for the auto industry – indigenize or get out. Companies like Ford and GM, which had assembly operations in India, packed their bags and went home. But fiat decided to stick it out and committed itself full-fledged manufacture of the Millicent in 1954. In sep 1964, PAL and FIAT launched the Fiat 1100 DELITE in India. The biggest customers for PAL’s were Bombay’s taxi drivers. The Padminies were easy for maintenance in terms of spares and labor cost, low on running cost, easy to drive and reasonably tough. It was everything that a taxi driver wants.

TATA Motors: Established in 1945, Telco or the Tata Engineering and Locomotive Company, as its full name suggests, started out making steam locomotives for the Indian Railways. Telco’s tryst with vehicle manufacture came in 1945 when it signed a 15-year agreement with DaimlerBenz AG of Germany to manufacture commercial vehicle. The director in charge from the Tata side was Sumant Moolgaonkar. This period was a shared birthing time for the Indian commercial vehicle industry – Premier Automobiles in league with Chrysler, Hindustan

49

Motors with General Motors and Ashok Leyland with British Leyland – which all started truck production around the same time. Telco’s biggest triumph came in 1985 in the LCV segment. The Tata 407, a brand new product from bumper to tail-light, was designed and marketed by Telco to take on the technically superior Japanese products. The 407 immediately captured 70 per cent of the market. The TATA SUMO, launched in 1994, turned out to be the success story of the decade. The Sumo was conceptually a brilliant vehicle. And it was also a product of the government’s eccentric excise duty regulations at that time. 1998 was a landmark year for Tata – it launched the Tata Safari. Unlike the Sierra, Estate and Sumo that were designed and developed using rudimentary manual methods, the Safari was made with modern manufacturing and design processes to ensure new-found levels of quality and to take the company a step closer to its ambition of becoming a global carmaker. Yet, the most important landmark of 1998 was not the Safari. On 30 December 1998, Tata officially launched the much-awaited Indica. 2001 also saw the company exit its joint venture with Daimler-Benz. In 2002, Tata launched the Indigo saloon, based on the Indica platform. On 29 July 2003,J R D Tata’s birth anniversary, the company was renamed Tata Motors Limited. The Tata juggernaut continued to roll across the Indian auto industry with the launch of the Indigo Marina in 2004

MAHINDRA & MAHINDRA: The story starts sometime in the 1940’s. Pandit Nehru has a dream of building a modern, industrially advanced nation. And inspired by Nehru’s vision are two brothers, Kailash Chandra Mahindra and Jagadish Chandra Mahindra. K.C.Mahindra during his tenure in the United States had met Berney Roos. Roos was the inventor of rugged ‘General Purpose’ vehicle or the Jeep. The Jeep had earned reputation in the battle fields of World War II. On October 2nd 1945, the Mahindra brothers joined hands with Ghulam Mohammed to set up a

50

company to assemble American Willys Jeeps in India. The collaboration between M&M and its original partner Kaiser Jeep Corporation and later American Motor Corporation is for the phased manufacture of CJ3B Jeep. The company is named Mahindra and Mohammed, but after Independence Ghulam Mohammed migrates to Pakistan. With his departure Mahindra & Mohammed is renamed by Mahindra & Mahindra in 13thJanuary 1948. The first vehicles are assembled in Mazaogaon in Bombay. The first M&M built Willy Overland Jeep rolled out of the Mazaogaon plant on 3 June 1949. Five years later, in 1954, the first completely indigenous Jeep rolled out of the factory floor. At one point 70 per cent of the sales were assured by army and government.

Vehicle model

Year of launching

Mahindra MM 540

1985

Commander

1991

Mahindra Armada

1993

Voyager van

1996

Escort (M&M-ford)

1996

Bolero

1996

Scorpio

2002

Scorpio launched in 2002, a completely indigenous product that took Mahindra & Mahindra 6 long years to design and develop. The Scorpio has played a critical role in changing the perception and brand image of the country. The 2.6 litre turbo-diesel engine developed 109bhp. The Scorpio has been the vehicle of M&M’s change, from a utility vehicle-maker to a lifestyle SUV manufacturer

MARUTHI:

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It began with the promise of being the ‘People’s Car’. The car never went into production and the company went belly-up in 1977. Six years later, it rose like a phoenix from the ashes and changed the Indian automotive sector forever for the company Maruthi Udyog Ltd. The story of Maruthi dates back to the 1970’s. Indira Gandhi was the prime minister of India. Her son, Sanjay Gandhi, envisioned the manufactured of an indigenous cost-effective, lowmaintenance compact car for the Indian middle-class. The Cabinet passed a unanimous resolution for the development and production of a ‘People’s Car’. The name of the car was chosen as ‘Maruti’.

THE CAR THAT CHANGED INDIA The Maruthi 800 was essentially a Suzuki SS80, which was called the Fronte in Japanand Altoin most of the other markets. The 796cc, in-line, three-cylinder power plant produced 39.5bhp at 5500rpm. Maruthi marked the beginning of a revolution in the Indian automobile industry. The Maruthi 800, with its compact size, nimble handling and perky engine, offered the Indian motorist a cheaper, friendlier alternative. On 14thDecember 1983, Harpal Singh became Maruthi’s first customer as he received the keys of his Maruthi 800 car from Prime Minister Indira Gandhi. The car cost Rs.48, 000. The new Maruthi, launched in June 1986, cost approximately Rs 15,000 more than the outgoing model.

THE NEW MARUTHI: In 2005, Maruthi launched the Swift, for the first time in its 20-year history. The Swift signaled the importance of the Indian market in the world. A team of engineers from Maruthi worked on the design of the Swift in Hamamatsu, Suzuki’s headquarters in Japan.

Model

Year of launching Model

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Maruthi 800 Maruthi Omni Maruthi Gypsy Maruthi 1000 Maruthi Zen Maruthi Esteem Maruthi Baleno Maruthi Wagon R Maruthi Alto Maruthi Versa Maruthi Swift Maruthi Zen Estilo Maruthi SX4 Maruthi Suzuki Grand Vitara

1983 1984 1985 1990 1993 1994 1999 1999 2000 2001 2005 2006 2007 2007

The other cars which have their share in the Indian Auto Mobile industry are: The Indian auto industry has exploded in the last 14 years. And car makers are learning some very hard truths. While the economic reforms process was kicked of in 1991, it was only in 1993 that the automobile industry was finally relicensed and the restrictions were removed. Between 1993 and 95, government regulations limited a foreign company’s stake to a maximum of 51 percent of the equity. Hence the only method of entry for an MNC then was through a joint venture with a local partner. The most preferred partner was an existing automaker. In 1994-95 saw the announcement of quite a few JV’s. ➢ Premier and Peugeot to form PAL-Peugeot. ➢ GM and CK Birla to form GM India. ➢ Mercedes Benz and Tata Motors. ➢ M&M and Ford to form Mahindra-Ford India. In 1995, the government announced its decision to allow foreign auto companies to enter with a 100% stake or wholly-owned subsidiaries. This changed the dynamics of joint ventures in India. The other automobile industries which play a crucial role in the Indian automobile industry are: ➢ General Motors India

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➢ Mercedes-Benz ➢ Hyundai Motors ➢ Honda SIEL ➢ Toyota ➢ Skoda India  Volkswagen  Deboo motors

LITERATURE REVIEW Marketing strategy and analysis:

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A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies. Marketing strategy is based on a situation analysis- a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. From this situation analysis, affirm develops an understanding of the market and the various opportunities it offers, the competition and the market segments or target markets the company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objectives of the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them. For example, if the marketing objectives of a business unit stipulate that next year, it should achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale and profit will come, which product lines/products/brands will accomplish this task and how. Marketing strategy forms an integral part of marketing planning. Marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. MARKETING AND PROMOTIONS PROCESS MODEL:

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Development of marketing program requires an in-depth analysis of the market. This analysis may make extensive use of market research as an input into the planning process. This input, in turn, provides the basis for the development of marketing strategies in regard to product, pricing, distribution and promotion decisions. Each of these steps requires a detailed analysis, since this plan serves as the road map, to follow in achieving marketing goals. Once the detailed market analysis has been completed and marketing objectives have been established, each element in the market mix must contribute to a comprehensive integrated marketing program. Of course, the promotional program element must be combined with all other program elements in such a way as to achieve maximum impact.

FORMULATING THE MARKETING STRATEGY Basically, formulation of marketing strategy consists of three main tasks: 1. Selecting the target market, 2. Positioning the offer, 3. Assembling the marketing mix. This implies that the essence of the marketing strategy of a firm for a given product or brand can be grasped from the target market chosen, the way it is positioned and how the marketing mix is organized. The target market shows to whom the unit intends to sell the products; positioning and marketing mix together show how and using what uniqueness or distinction, the unit intends to sell. The three together constitute the marketing strategy platform of the given product

SELECTING THE TARGET MARKET To say that target market selection is a part of marketing strategy development is just stating the obvious. It does not fully bring out the import of the inseparable linkage between the two.

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When the selection of the target market is over, an important part of the marketing strategy of the product is determined, defined and expressed. Marketing targeting simply means choosing one’s target market. It needs to be clarified at the outset that market targeting is not synonymous with market segmentation. Segmentation is actually tee prelude to target market selection. One has to carry out several tasks besides segmentation before choosing the target market. Through segmentation, a firm divides the market into many segments. But all these segments need not form its target market. Target market signifies only those segments that it wants to adopt as its market. A selection is thus involved in it. Marketing segmentation is a process that throws up not one but several market segments. There may be segments that are sizeable and the ones that are not so sizeable. There may be segments assuring immediate profits and the ones that call for heavy investments in market development. There may also be segments that show great potential, but display tough barriers to entry. As such, the question, which segment/segments, the firm should select as its target market, assumes crucial importance.

STRATEGIC MARKET SEGMENTATION: Market Segmentation is “dividing up a market into distinct groups that first have Common needs and second will respond similarly to a marketing action”, which was said by Eric N.Berkowitz, Roger A.Kerin, and William Redulius. The Segmentation process involves five distinct steps: ➢ Finding the ways to group consumers according to their needs. ➢ Finding the ways to group the marketing actions – usually the products offered – available to the organization. ➢ Developing a market-product grid to relate the market segments to the firm’s products or actions.

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➢ selecting the target segments toward which the firm directs its marketing actions. ➢ Taking marketing actions to reach target segments. Markets can be segmented using several relevant bases. For example, demographic Characteristics of consumers, such as age, sex, income/purchasing capacity, education level etc, form one base for segmentation. Geographic characteristics constitute another; and buying behavior of the consumer’s forms yet another base. The various types of segmentations are  Geographic segmentation  Demographic segmentation  Psychographic segmentation  Buyer behavior  Benefits segmentation  Volume of purchase segmentation

POSITIONING: Positioning is a platform for the brand. It facilitates the brand to get through to the target consumers. It is defined as “the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.” Positioning is the act of fixing the locus of the product offer in the minds of the target consumers. In positioning, the firm decides how and around what parameters, the product offer has to be placed before the target consumers. The significance of product positioning can be easily understood from David Ogilvy’s words: “The results of your campaign depends less on how we write your advertising than on how your product is positioned”.

DEFITIONS OF PRODUCT POSITIONING:

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Sengupta, in his book Brand Positioning says, “ The aim of product positioning is to create a perception for our brand in the prospect’s mind so that it stands apart from competing brands… we must cover that space in the consumer’s mind as if we had won a long-term lease. We must find a strong position in that mind and sit on it….”

Micheal Rothschild, in his book Marketing Communications – from Fundamentals to Strategies says, “Positioning refers to the place a brand occupies in the mind in relation to a given product class. This place was originally a product-related concept “concerning market structure”. The concept now refers to the place that the brand holds in the consumer’s mind related to perceptions and preferences”.

Developing a Positioning Strategy: To create a position for a product or service, Trout and Ries suggest that managers ask themselves six basic questions. 1. What position, if any, do we already have in the prospect’s mind? 2. What position do we want to own? 3. What companies must be outgunned if we are to establish that position? 4. Do we have enough marketing money to occupy and hold the position? 5. Do we have the guts to stick with one consistent positioning strategy? 6. Does our creative approach match our positioning strategy?

PRODUCT POSITIONING AND BRAND POSITIONING: It is essential to understand the relationship between products positioning and brand positioning. Though in discussions, the two terms are synonymously and interchangeable used, technically they are different. Product positioning denotes the specific product

59

category/product classing which the given product is opting to compete. And brand positioning denotes the positioning of the brand viz-a viz the competing brands in the chosen product category. It is evident that for any product, before entering the market it has to sequentially carry out the two exercises, product positioning and brand positioning. In the first step, the product category where the new entrant should enter and compete, i.e. against what all products it has to compete, has to be decided. In this step, it is the broad function that the product is trying to serve that matters. This choice of product category will decide the nature of the competition the product is going to face. Once product category positioning is decided, the position for the new entrant against competing brands in the chosen product category has to be analyzed and fixed.

ISSUES IN PRODUCT POSITIONING: •

Where is the new offer going to compete? As what?

•

Which product function/customer need is it trying to meet?

•

What other product categories serve this need? In other words, what are the substitute products that serve the same need?

•

Where is the real gap, where is such a new offer most welcome and wanted by the market?

•

What are company’s competencies to fight here?

ISSUES IN BRAND POSITIONING: In deciding the Brand positioning, the issues are: •

Which are the competing brands in the chosen product category?

•

What are the unique claims/strengths of the various brands?

60

•

What position do they enjoy in consumer’s evaluation and perception?

•

What is the most favored position…? And yet vacant?

•

Can the new brand claim the needed distinction and take the position and satisfy the need?

•

The major dimension of marketing strategy relates to positioning of the offer. The firm has already selected the target market and decided its basic offer. Now, what is the conjunction between these two entities? How do they get connected? What is the interface? In other words.

•

What is the locus the firm seeks among the customers in the chosen target market with its offering?

•

How would the firm want the consumer to view and receive the offer?

•

These are the issues the firm has to grapple with in positioning. And, while formulating the marketing mix too, the firm will agitate over these issues. The Product

•

Differentiation and Positioning discusses the multifarious issues involved in the subject.

PRODUCT REPOSITIONING: Products do undergo ‘repositioning’ as they go along their life cycle. In some cases, even products that are faring well are repositioned. This is done mainly to enlarge the reach of the product offer and to increase the sale of the product by appealing to a wider target market. The product is provided with some new features or it is associated with some new target segments. PROMOTIONAL DECISIONS:

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Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea and products. While implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the market the basic tools used to accomplish an organization’s communication objectives are often referred to as the promotional mix.

THE PROMOTIONAL MIX

 Advertising  Direct marketing  Interactive marketing  Sales promotion  Publicity/ public Relations  Personal selling

Advertising Advertising is defined as any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be

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bought. An occasional exception to this is the public service announcement, whose advertising space or time is donated by the media. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. It is also very important promotional tool, particularly for companies, whose products and services are targeted at mass consumer markets. It is a very cost-effective method for communicating with large audiences. It can be used to create brand images and symbolic appeals for a company or brand

Direct Marketing One of the fastest-growing sectors of the U.S. economy is direct marketing, in which organizations communicate directly with target customers to generate a response and a transaction. It has become such an integral part of the IMC program of many organizations and often involves separate objectives, budgets, and strategies; we view direct marketing as a component of the promotional mix. Direct Marketing is much more than direct mail and mail order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing and direct response ads through direct mail, the Internet, and various broadcast and print media. One of the major tools of direct marketing is direct response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer.

Interactive/Internet Marketing: Interactive media allow for the back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. Unlike traditional forms of marketing communications such as advertising, which are one63

way in nature, the new media allow users to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions and of course make purchases. In addition to the Internet, other forms of interactive media include CDROMs, Kiosks, and interactive television.

Sales Promotion: The next variable in the promotional mix is sales promotion, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales, sales promotion is generally broken into two major categories: Consumer-oriented and Trade-oriented activities Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various pointof-purchase materials. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers, distributors and retailers.

Publicity/Public Relations: Publicity refers to non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial or announcement about an organization and its products and services. Like advertising, publicity is not directly paid for by the company. An advantage of publicity over other forms of promotion is its credibility. Another advantage of publicity is its low cost, since the company is not paying its time or space in a mass medium such as TV, radio or newspapers. Public relations are defined as “the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interests and executes a program of action to earn public understanding and acceptance”. Public relations generally have a broader objective

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than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics.

Personal Selling: It is a form of person-to-person communication in which a seller attempts to assist and persuade prospective buyers to purchase the company’s product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. Personal selling involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer’s reactions

ASSEMBLING THE MARKETING MIX: Assembling the marketing mix means assembling the four Ps of marketing in the best possible combination. Involved in this process are the choice of the appropriate marketing activities and the allocation of the appropriate marketing effort/resources to each one of them. The firm has to find out how it can generate the targeted sales and profit. It considers different marketing mixes with varying levels of expenditure on each marketing activity and tries to figure out the effectiveness of different combinations in terms of the possible sales and profits. It then chooses the combination/mix of products, price, place and promotion that is best according to its judgment. Since marketing is essentially an interaction between the marketing mix and environmental variable, and since the latter and non-controllable, marketing becomes synonymous with assembling and managing the marketing mix. Of course, while assembling the marketing mix, the marketing manager will take due note of the environmental variables Not only will he take due not of them; he will ensure that his marketing mix suits the environmental variables. And, its factor that renders the task much more complex.

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MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND DELIVERING CONSUMER VALUE The four elements mentioned above- product, distribution, promotion and pricing constitute the marketing mix of the firm. The marketing mix is the sole vehicle for creating and delivering customer value. It can be easily seen that all activities and programmes, which a marketer designs and caries out in his effort at winning customers, relate to one or the other of the above four elements- product, place, promotion and pricing. It can also be seen that in each of these elements, there are several sub-elements. For example, packaging is one of the sub-elements of product and warehousing is one of the sub-elements of distribution.

The Four Ps of Marketing: It was James Culliton, a noted marketing expert, who coined the expression marketing mix and described the marketing manager as a mixer of ingredients. To quote him, `The marketing man is a decider and an artist – a mixer of ingredients, who sometimes follows a recipe developed by others and sometimes prepare his own recipe. And, sometimes he adapts his recipe to the ingredients that are readily available and sometimes invents some new ingredients, or, experiments with ingredients as no one else has tried before. Subsequently, Niel H.Borden, another noted marketing expert, popularized the concept of marketing mix. It was Jerome McCarthy, the well-known American professor of marketing, who first described the marketing mix in terms of the four Ps. He classified the marketing mix variables under four heads, each beginning with the alphabet “P”.

The Four Ps  Product  Place

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 Price  Promotion McCarthy has provided an easy-to-remember description of the marketing mix Variables. Over the years, the terms – Marketing mix and Four Ps of marketing have come to be used synonymously. Assembling and managing the marketing mix is the crux of the marketing task. And, it is through the marketing mix that the marketing manager achieves the marketing objectives.

MARKETING STRATEGIES FALL UNDER TWO CATEGORIES We have seen that target market selection, positioning and marketing mix formulation together constitute marketing strategy. We have also seen that a firm can assemble the marketing mix elements in many different ways, depending on the relative weight age it assigns to the different elements. The scope to carve out different combinations is, in fact immense. As a result, business firms are able to employ an abundance of strategies and strategy stances in their relentless race to stay ahead of competition. However, a close scrutiny will reveal that all these strategies can be fitted into two broad categories 1. Price oriented marketing strategy. 2. Differentiation oriented marketing strategy. In other words, there are only two broad routes available for forging marketing strategies: any strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented strategy

PRICE ORIENTED MARKETING STRATEGY: Firms taking to the price route in marketing strategy compete on the strength of pricing. They use price as their competitive lever. They juggle the price of their product to suit the

67

prevailing competitive reality. They can afford to offer lower prices and still make the targeted profits. They elbow out competition with the cushion they enjoy in the matter of pricing. Price route requires cost leadership; evidently, a firm opting for the price route will have to have a substantial cost advantage in their operations. It should be enjoying an overall cost leadership in the given industry and its lower cost should enable it to secure above average returns inspire of strong competition. The cost advantage can emanate from different factors like, scale economies, early entry, and a large market share built over a period of time, vocational advantage, or synergy among the different businesses. The firms whole strategy, in fact will revolve around building such cost advantage. To successfully practice a price-led strategy, a firm should have consciously taken to the idea sufficiently early in its evolutionary process and prepared itself for adopting such a strategy.

DIFFERENTIATION ORIENTED MARKETING STRATEGY: The differentiation route of strategy revolves around aspects other than price. It works on the principle that a firm can make its offer distinctive from all competing offers and win through the distinctiveness. And, a firm adopting such route can price its product on the perceived value of the attributes of the offer and not necessarily on competition-parity basis. Maximum scope for exploiting differentiation remains with the product. While all the 4Ps of marketing are important elements from the point of view of strategy, the other Ps normally go as elaborations of the offer, while the product forms its core. Product differentiation is of vital importance in product management and has great potential in forgoing successful marketing strategies.

The product can be differentiated along two major planks: 1. Tangible product attributes and functions,

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2. Intangible characteristics and emotional associations. The tangible product attributes and functions are •

Differentiation based on ingredients,

•

Differentiation based on functional value,

•

Differentiation based on additional features,

•

Packaging contributing to differentiation,

•

Differentiation based on Quality, Operational Efficiency, Technology, Service

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CHAPTER – 4

70

ANALYSIS AND INTERPRETATION 1. Which of the following Ford car you own? (a) Fiesta

(b) Ikon

(c) Endeavour

Name of the car Fiesta Ikon Endeavour Fusion Figo Total

(d) Fusion % of the customer 30 25 15 10 20 100%

Table. No.1

%of customers 20%

Fiesta

30%

Ikon

10% 15%

Endeavour

25%

Fusion Figo

Fig. no.1

Interpretation: This question is meant for taking the information regarding the most preferred car in the Ford cars. From the above graph it is found that most preferred vehicle of Ford cars is Fiesta.

2. What do you like most about your Ford car? (A). Style/design (B). Comfort (C). Ford brand (D). Service Customers preference Style / design

No. of customers 18

71

Comfort Ford brand Service Total

46 26 10 100 Table. No.2

No. of customers 10%

18%

26%

Style/design Comfort Ford brand 46%

Service

Fig.no.2

Interpretation- This question is meant to know the customers preferences and likes towards the cars. From the data we can position our product to the comfort seeking group of people.

3. To other cars, what do you feel great about your car when compared in the market? (A) Fuel efficiency (B) Durability(C) Low maintenance (D) Sound quality (E) Brand name Customer perspective Fuel efficiency Low maintenance Sound quality Brand name Durability Total

No. of customers 4 18 24 40 14 100 72

Table No.3

Fig.3 Interpretation: From this question we can position the cars according to the customer’s perspectives. Many of the Ford customers are buying the cars by seeing its Brand Name only. The no. of customers satisfied with the fuel efficiency is very low.

4. How did you come to know about this car before purchasing? (A) From friends, relatives (buzz) (B) Advertisements(C) Car experts (d) Sale’s people’s visit (E) Auto magazines Sources of awareness

No of customers

Friends , relatives

18

Advertisement

50

Car experts

6

Sales people visit

18

Auto magazines Total

10 100 Table No.4

73

No. of customers 10%

18%

18%

Rriends, relatives Advertisement

6%

Car experts Sales people visit

50%

Auto magazins

Fig.no.4

Most of the Ford customers came to know about their vehicle through Advertisements only. The major media that attracted the customers is television.

5. How do you rate the promotion of FIGO by Fortune Ford? (A) Excellent (B) Very good (C) Good (D) Average (E) Poor Rating

No. of customers

Excellent

10

Very good

28

Good

52

Average

10

Poor

0

Total

100 Table no.5

74

No.of customers 0% 10%

10% Excellent

28%

Very good Good

52%

Average Poor

Fig.no.5 It has been observe From the table and graph above it can be seen that, 10% of respondents felt that the promotion was Excellent, 28% of respondents felt that the promotion was Very good, 52% of respondents felt that the promotion was good, 12% of respondents felt that the promotion was Average, and 8% of respondents felt that the promotion was poor. It is clear that promotion of the Figo by Fortune Ford was good. 6. Where do you get your car serviced regularly? (A) At authorized service centre (B) At a local workshop near my home Place of service

No. of customers

At authorized center

82

At a local workshop near my house

18

Total

100 Table. No.6

75

No. of customers

18%

At authorized center At a local near my house

82%

Fig.no.6

Most of the Fortune Ford customers are interested to service their vehicles only at the authorized dealers. From this we come to know what the importance of authorized service centers for car is.

7. Which bank do you prefer in getting financial help while purchasing a Car? (A) ICICI (B) HDFC (C) SBI (D) Others Name of the bank

No. of customers

ICICI

21

HDFC

6

SBI

20

OTHERS

3

Total

100% Table. No.7

76

No. of customers 3% 21% ICICI

20%

HDFC SBI OTHERS

6%

Fig.no.7 Most of the customers prefer ICICI and SBI banks for taking financial help while purchasing a car. Customers are asking for min interest on financial help provided by the banks.

8. Which type of finance do you prefer? (A) In house finance (B) Out house finance (C) No difference between the two Type of finance

No. of customers

In house finance

60

Out house finance

24

No difference between the two

16

Total

100 Table No.8

77

No.of customers

16% In house finance

24%

60%

Out house finance No difference between the two

Fig No. 8

Interpretation: It has been observe that most of the customers prefer house finance help while purchasing a car.

9. To which media do you get expose regularly? (A) Televisions (B) Magazines (C) News papers (D) F.M/Radio Media

No. of customers

Televisions

52

Magazines

14

News paper

32

FM/ Radio

2

Total

100 Table No.9

78

No. of customers 2%

32% 52%

Television Magazines News paper

14%

FM/ Radio

Fig. no. 9 From this analysis we come to know that most of the customers are interested in watching televisions, which is a good media for communicating with people and delivering our intentions about product.

10. Which kind of T.V. channels do you watch regularly? (A) National news channels (B) Regional news channels (C) Sports channels (D) Entertainment channels T.V. Channels

No. of customers

National news channel

20

Sport channels

8

Entertainment channel

40

Regional news channel

32

79

Total

100% Table. No.10

No. of customers 20%

32%

National news channel

8%

Sport channel Entertainment channel

40%

Regional channel

Fig. no. 10 This question is meant to know the interests and preferences of customers towards T.V. channels. More than quarter of the sample size showed interest only on the entertainment channels and next preference goes to the regional news channels.

11. What’s your opinion on the price list of Ford cars? (A) Affordable by common man (B) Affordable only by rich man (C) Can’t say Customer opinion on pricelist of ford car

No. of customers

Affordable by common man

30

Affordable by only rich man

60

Can’t say

10

Total

100 Table. No.11

80

No. of customers

10%

30% Affordable by common man Affordable by only rich man

60%

Can't say

Fig. No. 11

More than 80% of customers think that Ford cars are affordable only by rich men. These cars are too expensive for an economic/common man of the society.

12. What kinds of offers do you like or expect from the dealer? (A) Free Insurance (B) Special discount on sale of cars (C) Extending the service period (D) Finance availability with 0% interest Offers Free insurance

No. of customers 18

Special discount on sale of cars

6

Extending the service period

54

Finance availability with 0% interest

22

Total

100 Table No.12

81

No. of customers Finance insurance

18%

22%

6% Special discount on sale of cars Extending the service period

54% Finance availability with 0% interest

Fig. No. 12

The chart shows that the most of customers likely expected to the dealer to extend the service period.

13. What more do you expect from your dealer? (A) Information about new cars (B) Information about service and mileage (C) Assistance regarding loans and insurance (D) Understanding customer needs

Expectations of customer No. of customers Information about service and mileage 68 Assistance regarding loans and insurance 8 Understanding customer needs 20 Information about new car 4 Total 100 Table. No.13

82

No. of customers 4% Information about service and milage

20%

Assistance regarding lones and insurance

8% 68%

Understanding customers needs Information about new car

Fig. No. 13 Most of the customers are expecting the information about service and mileage regarding the cars from the dealer. From the above analysis we come to know about the customer’s expectations and their post purchase service demands from the dealer.

14. How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? (A) I will not respond (B) Lost my privacy (C) Interested in knowing (if I feel a need of it)

Customer opinion I will not respond Lost my privacy Interest in knowing, If I feel a need of it Total Table no.14

83

No. of customers 22 10 64 100

No. of customers

22%

I will not respond

10%

Lost my privacy

64% Interest in working, If I feel a need of it

Fig No. 14

This question is prepared indirectly to know about the customer’s opinion about the Data Bank maintenance by the Fortune Ford. In reply majority of the customers gave a positive reply by showing interest in knowing about the cars when a sales person gives a detailed description about the cars. 15. Have you come across any promotional event conducted by Fortune Ford during last one month? (A) YES

(B) No Customer opinion

No. of customers

Yes

61

No

49

Total

100 Table No.15

84

No. of customers

49% 61%

Yes No

Fig. No. 15 From the table and graph above it can be seen that 61% of respondent’s come across promotion of Fortune Ford and 49% do not come across promotion of Fortune Ford. As the Fortune Ford promoted and conducted events for Figo.

16. Would you recommend Ford “go fida” to your friends and relatives? (A) Recommended (B) Not recommended

respondents

Recommend

Not recommend

Total

62

38

100

Table no.16

85

Fig no. 16

From the table and graph above it can be seen that 62% of respondents recommend Figo to your friends and relatives and 38 % of respondents don’t recommend Figo to your friends and relatives. Most of the respondents would recommend Figo to the friends and relatives.

17. Whom do you suggest as a right person for promoting a car? (A) Sports person (B) Film stars

(C) Car expert

Customer suggestion Sports persons Film star Car expert Any celebrity Total

(D) Any celebrity No. of customers 36 42 14 8 100

Table No.17

86

Fig. No. 17

Most of the customers of Ford suggest a film star as the best ambassador. Because many of them get attracted only to their favorite film stars other than other brand ambassadors

18. What other brands did you seriously consider before making this car purchase? (A) Hyundai

(B) Chevrolet (C) Maruthi

(D) TATA

(E) Toyota

Brand name

No. of customers

Hyundai

33

Skoda

15

Maruti

24

Honda

18

Toyota

10

Total

100 Table No.18

87

No. of customers 10% 33%

18%

Hyundai Scoda Maruti

24%

Honda

15%

Toyata

Fig.no.18 Most of the Ford customers are opting for Hyundai when they are asked to consider a brand other than Ford. Skoda occupies the second place in their preference.

19. As per you which vehicle comes close to Figo. (A) Maruti Swift

(B) Hyundai i10

(C) Chevrolet Spark

Rating Maruti Swift Hyundai i10 Chevrolet Spark Tata indica others Total

(D) Tata Indica (E) others No. of a customers 37 30 16 7 10 100

Table No.19

88

No.of customers 7%

10% 37%

Maruti Swift

16%

Hyundai i10 Chevrolet Spark Tata indica 30%

Others

Fig No. 19 From the above chart it can be observe that, 37% of respondents feel that the Vehicle that comes close to Figo is Maruthi Swift, 30% of respondents feel that the Vehicle that comes close to Figo is Hyundai i10, 22% of respondents feel that the Vehicle that comes close to Figo with Chevrolet Spark, 7% of respondents felt that the Vehicle that comes close to Figo is Tata Indica, and 10% of respondents feel that various other Vehicles comes close to Figo . Most of the customers feel that Maruthi Swift comes close to the Figo.

20. For which automobile company you finance more loans in a month. (A) Hyundai (B) Honda (C) Maruti Suzuki (D) Mahindra& Mahindra (E) Ford Automobile company

No. of sanction loans

Hyundai

16

Honda

15

Maruti Suzuki

28

Mahindra & Mahindra

19

Ford

17

89

Total

100 Table. No.20

No. of sanction loans 17%

16% Hyundai

15%

19%

Honda Maruti Suzuki Mahindra & Mahindra

28%

Ford

Fig. no. 20: It has been observe the banks are sanctioning loan in a month 15% for Hyundai motor, 15% for Honda motor, 30% for Maruti Suzuki and 20% Mahindra & Mahindra and 15 for Ford motor . 21. Sir, Are you (to bank manager) interested if I conduct a event show of “go fida” “ford FIGO” and “ford FIESTA” in your branch compound? Yes Respondents

No

100

Total 0

Table No. 20

90

100

No. of respondents 0%

Yes No 100%

Fig. no 21 The above chart shows the popularity of Ford “go fida”, that all bank managers want to conduct a event show of “go fida” in their branch compound.

91

CHAPTER – 5

FINDINGS

92

•

Brand awareness has got a great range of influence on buying behavior. Now-a-days people are Brand conscious. Products or Services having a good Brand image has got a great range of influence on buying behavior.

•

Promoting a product and creating awareness through conducting event show in different areas of a pre plane with bank manager and meeting with customer personally has an influence on the people rather than non-personal channels.

•

The brand image of FORD is Excellent. Everyone is aware of Ford as it is the fourth largest automobile company. Ford. In Hyderabad most of the people are think that Ford vehicles are for urbane people.

•

In hatchback cars millage plays a major role on buying behavior. People who are choosing hatch back car segment are mostly from employees and middle class. They cannot effort more.

•

Maintenance of Ford vehicles is more. Ford is positioned in the minds of people as high maintenance that is the one of the reason why Ford is not a big success in the Indian market

•

The products “go fida” the “ford FIESTA” and “ford FIGO” many features when compared to any car in hatchback segment. No car in the hatchback segment is competitor for Figo and Fiesta. Figo is having a number of features like dual air bags, ABS with EBD etc.

•

Major competitor of Ford Figo is Maruthi Swift. Everyone in the market is comparing the ford to Maruthi swift as Maruthi is the leader for the hatchback segment. Its product Swift is a success model.

93

•

Customer’s perspectives, Many of the Ford customers are buying the cars by seeing its brand name only. The no. of customers satisfied with the fuel efficiency is very low.

•

Most of the Ford customers came to know about their vehicle through Advertisements only. The major media that attracted the customers is television.

•

Most of the customers prefer ICICI and SBI banks for taking financial help while purchasing a car. Customers are asking for min interest on financial help provided by the banks.

•

Most of the people want to see entertainment channels and next preference goes to the regional news channels.

•

The popularity shows that most of the customers would recommend Ford Figo to the friends and relatives.

•

It has been observe that Hyundai i1o comes close to Ford Figo.

•

It has been observe the banks are sanctioning loan in a month 15% for Hyundai motor, 15% for Honda motor, 30% for Maruti Suzuki

and 20% Mahindra &

Mahindra and 15 for Ford motor . •

Peoples are very aggressive and enthusiastic to meet with brand promoter during event show.

RECOMMENDATION

94

•

Fortune ford should poster of the “go fida “ the Ford Figo and ford Fiesta and put it in all bank branches, because now many customer are firstly approaching for car loan in bank and they make their decision there for good car.

•

Fortune Ford has to concentrate on new strategies for the promotion of Ford Figo. As it is a newly launched model of the Ford it is the time to capture market of the hatchback car segment. Currently Figo is having a good response in the market.

•

Ford has to rectify the rear window of back door which doesn’t go down completely. Everyone who had a look at the car likes it, after seeing the rear window of the back doors they are not showing any interest.

•

Ford has to utilize the media for the promotion of Figo. For the reaching of the target audience media is the best way. Through promotion will go to the long distances..

•

Please try to increase the number of Service centers. And keep Service Stations at main locations of the city, like Banjara Hills, Jubilee Hills, Begumpet etc., where many customers feel it easy to go to service centers..

•

Please provide information about new cars along with their price lists at least once in 6 months.

•

Advertisements through televisions can influence many categories of people. So try to concentrate on this segment. We don’t see or find much of the Ford car advertisements in T.V except “go fida “ the “ford FIGO” and “ford FIESTA”.

•

Try to provide financial facility of all customers at minimum interest.

.

QUESTIONNAIRE

95

Name : ……………. Contact no. …………. Address: E-Mail address: …………………… 1. Which of the following Ford car you own? a) Fiesta c) Endeavour

b) Ikon d) Fusion

2. What do you like most about your Ford car? a) Style/design

b) Comfort

c) Ford brand

d) Service

3. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency

b) Durability

d) Sound quality

e) Brand name

c) Low maintenance

4. How did you come to know about this car before purchasing? a) From friends, relatives d) Sale’s persons visit

b) Advertisements

c) Car experts

e) Auto magazines

5 . How do you rate the promotion of FIGO by Fortune Ford? a) Excellent d) Average

b) Very good

c) Good

e)Poor

6. Where do you get your car serviced regularly?

96

a) At authorized service centre b) At a local workshop near my home

7. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI

b) HDFC

c) SBI

d) others

8. Which type of finance do you prefer? a) In house finance

b) Out house finance

c) No difference between the two

9. To which media do you get expose regularly? a) Televisions

b) Magazines

c) News papers

d) F.M/Radio

10. Which kind of T.V. channels do you watch regularly? a) National news channels

b) Regional news channels

c) Sports channels

d) Entertainment channels

11. What’s your opinion on the price list of Ford cars? a) Affordable by common man

b) Affordable only for rich man

c) Can’t say

12. What kinds of offers do you like or expect from the dealer?

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a) Free insurance

b) Special discount on sale of cars

c) Extending the service period

d) Finance availability with 0% interest

13. What more do you expect from your dealer? a) Information about new cars

b) Information about service and mileage

c) Assistance regarding loans and insurance

d) Understanding customer needs

14. How do you feel when an unknown sales person approaches you by knowing? Your full details to demonstrate about any product? a) I will not respond

b) Lost my privacy

c) Interested in knowing (if I feel a need of it)

15. Have you come across any promotional event conducted by Fortune Ford during last one month? a) YES b) No

16. What’s your opinion about the previous Ambassador Abhishek Bachan for the car Ford Fiesta? a) Full filled the purpose

b) Unable to attract customers

c) He was not apt for it.

17. Whom do you suggest as a right person for promoting a car? a) Sports person

b) Film stars

c) Car expert

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d) Any celebrity

18) What other brand(s) did you seriously consider before making this car purchase? a) Hyundai

b) Skoda

c) Maruthi

d) Honda

e) Toyota 19) As per you which vehicle come close to Figo.

a) Maruti Swift

b) Hyundai i10

d)Tata Indica

e)others

c) Chevrolet Spark

20) For which automobile company you finance more loan in month. a) Hyundai

b) Honda

d) Mahindra

e) Ford

c) Maruti Suzuki

Thanks for taking the time to fill out this questionnaire and for providing valuable information which will be used for my project work, market research studies and reports. We do not share or sell your name, address or any other data with any outside company for any purpose.

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BIBLIOGRAPHY

www.fordindia.com

www.fortuneford.com

www.wikipedia.com

www.google.com

www.yahoo.com

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