A Project Report On Marketing Strategy Of Ford : Project File for BBA Final Year (2024)

Dear students, I am pleased to present this project report on “Marketing Strategy of Ford” for your review. The aim of sharing this report is to provide an example of how a detailed, well-researched marketing strategy analysis can be conducted on an automotive company.

In the following sections, you will find a comprehensive overview of Ford Motor Company, including its history, leadership, evolution in India, organizational structure, product portfolio, marketing mix strategies, and more. Key aspects like the company’s vision and mission, segmentation, targeting, positioning, marketing and branding objectives have been covered.

At the end, I have also shared some instructions and tips on how you can customize this Project report to develop your own unique project on a company’s marketing strategies. You can pick another company in the same or different sector, define additional objectives, modify the research methodology, and tailor the analysis and recommendations. This will help you create an impressive project report that showcases your research and analytical skills.

I hope you find this sample report useful. Happy reading and good luck!

COMPANY OVERVIEW

Ford Motor Company was founded by Henry Ford and incorporated in 1903. Headquartered in Dearborn, Michigan, Ford is currently the second largest U.S. automaker and fifth largest in the world. The company manufactures and distributes Ford and Lincoln branded vehicles globally. It operates through two main business segments – Automotive and Financial Services.

Henry Ford

Automotive Segment

The Automotive segment designs, develops, manufactures and sells Ford and Lincoln brand vehicles. It offers a range of cars, trucks, SUVs, electrified vehicles and parts. Ford assembles vehicles at its manufacturing facilities and delivers them mainly through independent dealerships in North America. For international markets, Ford sells vehicles produced locally through distributors and dealers. This segment also provides retail customers with after-sales vehicle products and services like maintenance, collision repairs, accessories etc.

Financial Services Segment

The Financial Services segment offers vehicle financing, leasing and insurance solutions to dealers and consumers to support the sale of vehicles. This includes retail financing, wholesale financing, leasing, insurance and other financial products. The segment helps dealers stock inventory and provides financing so customers can purchase/lease Ford vehicles.

Vision and Mission Statement

Ford aims to become the world’s most trusted company by delivering excellent products and services. The company is committed to having a valuable impact on customers and the planet through its innovations and sustainability efforts. Ford’s mission is to foster human progress by providing mobility solutions with passion and purpose.

Organizational Structure

Ford has a functional organizational structure based on key business functions like product development, purchasing, manufacturing, marketing & sales, services etc. Each function has specialized departments and executives responsible for workflow, decision making and performance. The structure allows flexibility to respond quickly by enabling coordination between cross-functional teams. Ford’s management team is headed by President and CEO Jim Farley.

Ford motors : Organizational Structure

History and Evolution in India

Ford first entered India in 1926 but exited in 1954. It re-entered the country through a joint venture – Mahindra Ford India Limited (MFIL) in 1995. However, Ford later increased its equity stake to be the majority shareholder. The company set up a fully integrated manufacturing facility in Maraimalai Nagar, near Chennai in 1999. Over the next two decades, Ford heavily invested in India and launched models like Ikon, Endeavour, Fiesta, Figo, EcoSport and others. By 2022, Ford had phased out vehicle production in India but continues export and engine manufacturing from its facilities. The company maintains product development, sourcing, after-sales support and global business services operations.

INDUSTRY ANALYSIS

The Indian automobile industry represents a promising opportunity driven by strong macroeconomic fundamentals. With rising household incomes, expanding middle class, younger population and rapid urbanization, India is expected to become the third largest passenger vehicle market by 2030. It currently ranks fifth globally with 3.8 million annual unit sales. Major players like Maruti Suzuki, Hyundai, Tata Motors occupy a majority share while international brands control the rest. Market trends point to SUVs, EVs, connected mobility gaining further momentum.

Market Drivers:

Growing working population and nuclear families

Increasing disposable incomes

Launch of new models with advanced features

Low penetration rates indicating room for growth

Government support for EVs and public transport

Market Restraints:

High acquisition and ownership costs

Economic slowdowns impacting consumer sentiment

Lack of robust EV infrastructure leading to range anxiety

Competitive Forces:

Most players have established brand recognition

Existing companies enjoy supplier relationship advantages

Low switching costs for buyers

Presence of domestic firms with competitive positioning

Future Outlook:

Passenger vehicle sales set to reach 10 million units by 2030

SUVs expected to drive growth with 50% market share

EV sales to account for 15-20% by 2030

Enhanced safety norms and emission standards

Connected vehicles with telematics integration

CUSTOMER ANALYSIS

This section covers findings from primary consumer research conducted to understand Ford customer’s profile, purchase journey, and satisfaction levels. The objective is to identify key influencers, pain points and scope of improvement for the company through analytical interpretations.

Research Methodology

Exploratory and descriptive research design

Sample size – 100 respondents

Sampling technique – convenience sampling

Geographical region – Karnal, Haryana

Research instrument – Structured questionnaire

Data collection method – Personal interview

Secondary sources – Company website, annual reports, media articles

Limitations:

Localized geographical area

Time, resources and cost constraints

Reliability of responses

Potential respondent bias

Findings:

Only 10% customers rated service as the greate feature of Ford vehicles indicating poor after-sales satisfaction

Brand name was found to be one of the top purchase triggers highlighting Ford’s brand equity

50% customers were moderately satisfied while only 12% were extremely satisfied pointing insufficient service quality

82% respondents wanted to get their Ford vehicles serviced only from authorized dealers stressing brand trust

Ford Figo emerged as the most preferred model among customers signaling effective positioning

45% customers used Ford vehicles for 6 months to 1 year while only 13% retained for over 2 years showing lack of loyalty

Analysis:

The analysis brings out that Ford enjoys strong brand recognition and some models have resonant positioning. Most customers are attracted to purchase Ford vehicles because of the trusted brand image. However, satisfaction with after-sales services is relatively low. Many customers use Ford cars for only 1-2 years before shifting preference hinting at deficiencies in customer relationship management. While brand pull helps initial sales, poor ownership experience leads to changing loyalty over time.

MARKET SHARE AND GROWTH ANALYSIS

Ford has seen declining market share in India with volumes dropping from 3.4% in 2015 to less than 2% in 2020. Domestic sales reduced from 91,000 units yearly to around 60,000 units over the same period. Ford’s key models like Figo, EcoSport, Endeavour lost traction against growing competition. The company lagged behind leaders Maruti Suzuki, Hyundai and Tata Motors along with other players in understanding consumer needs and delivering value.

In 2021, Ford took the strategic decision to stop vehicle production in India after struggling for over two decades to gain a sizable share. The company incurred operating losses exceeding $2 billion as products lacked a competitive edge in terms of pricing, low maintenance costs and high fuel efficiency preferred by Indian buyers.

However, Ford continues to focus on engine manufacturing facility at Sanand plant in Gujarat. The company is also retaining parts depots and dealerships to provide maintenance support for existing vehicle owners. Additionally, Ford leverages its local technical team and testing facilities for global product development.

Going forward, Ford plans to maintain its presence in India through export-focused business model by catering to developed automobile markets. It would also explore contract manufacturing arrangement with Indian OEMs to produce select models while utilizing indigenous supply chain network.

MARKETING STRATEGIES

Ford employs diverse marketing strategies across its regional and international markets based on market dynamics. The company categorizes countries under volume growth markets, steady profitable markets and investments for growth markets. Ford tweaks its marketing mix in line with business goals for each region.

Segmentation and Targeting

Ford uses a mix of demographic, geographic, psychographic and behavioral factors to segment the automobile consumer market. Key parameters include age, income, gender, car preferences, lifestyle, values etc. Based on

Main Project File

Instructions

By going through this report On Marketing Strategy Of Ford, you will get an in-depth perspective on how to develop an end-to-end marketing strategy project. The well-defined structure and logical flow of sections will help you understand key components that need to be included. The research methodology, objectives, limitations, analysis, and conclusion provide a framework for conducting industry analysis projects.

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