Marketing Plan: Ford
Contents
Executive Summary
Introduction
Task 1 - Situational analysis: Analyzing and Auditing
External auditing
Task 2 – Barrier to Marketing Planning
Task3 - Marketing Planning
Product
Pricing......
Distribution
Communication Marketing:
References
Executive Summary
Technology is enabling improvements in production and fuel efficiency, but also encouraging us to drive more sustainably and change the way we use and think about the car. The world is slowly drifting towards the sustainable technology and consumption. Ford is proposing its new automobile model to cater the sustainability needs of the consumer as well as achieving the profitability for the company itself. The report starts with analyzing the marketing conditions and the need for analyzing the interior as well as external factors that affect the marketing mix. The barriers to the marketing planning are analyzed and how Ford Motors can overcome them. Certain management concepts like 10 S framework, new product development theory are used to validate the product’s development and operation. Further, the new product development is analyzed with the 4P marketing mix as well as with other ethical concerns. In the end, the budgeting and performance review strategy is discussed.
Introduction
Competition is the focus of the market operations. It fosters innovation, growth and productivity, which ultimately creates wealth and market value. To remain competitive in market, a company should try and reinvent itself at changing dynamics of the market. The pricing should pertain to the mass customer sections in the market. In the market-oriented pricing strategy, Ford’s goal should be to set prices that are appropriate for the changing market conditions, considering the strong competition, consumer perceptions and demands, and other variables. Ford has applied this pricing strategy for most of its products, such as sedans and trucks in the past.Also on completely the other side of the aisle, the company applies the premium pricing strategy to set higher prices for some of its marquee products. This pricing strategy is used for most of the Lincoln automobiles, which are Ford’s luxury line of vehicles. This element of the marketing mix emphasizes the importance of different pricing strategies that can support Ford’s efforts to secure different segments of the market. Ford dealerships are the most prominent places for distributing most of its products. The majority of sales revenues are achieved through these dealerships. The company’s automotive parts/components are available in third-party auto parts stores, as well as the Ford Parts website. In addition, customers can access the firm’s financial services at the Ford Motor Credit Company offices or through personnel at the dealerships. This element of the marketing mix shows Ford’s strategy that utilizes different company-owned facilities and third parties to generate sales(Ford Motor Company- All Vehicles, 2015).
Task 1 - Situational analysis: Analyzing and Auditing
The process of analysis is an integral part of the planning process and involves both an external as well as an internal audit. The environment and conditions around a company should be thoroughly scanned in order to spot untapped opportunities to capitalize upon and develop the corporate image of the company (Onditi, 2012).
External auditing
PEST (Political, Economic, Social and Technological) is a simple tool for performing the external audit.
Ford’s PEST Analysis
Political Factors:
- Market prices, oil charges and costless business continues which access the customer to devote on the automobile.
- Commencement of new organization constitution influence the ford to advance its standing orders which are essential for assembling a valuable transport (Gundlach et al, 2006).
Economic:
Growth aptitude of functional market: The growth aptitude of functional market will conclude the attaining potential of the customer. That is the important factor that Ford is performing in the countries like America, India and Brazil where the growth aptitude is at a great distance when analyzed to the other business.
Effective Market Amount:Also the purchases of the Ford was affected by the market caliber where it is accomplishing its trade. When the target market GDP growth is elevated than the customers will demonstrate more attraction to have an exceptional or luxury transport.
Social Factors:
Social factors plays an important appearance in flow in appeal derived on the following reasons like character, statistical, assurance of the customers in that accurate market domain. Some of social reasons for Ford’s growth are as follow
- Geographical Advancements: Fords have customized their vehicles to cater the needs of customers. E.g. The US for customers will use the cars or economic transports which have massive engines. But the Brittan buyers are acclimated to use the transports which are assigned by smaller engines.
Customer Mental Outlook: Customer`s mood plays a role in choosing car model and composition, If the customers like sports they will choose the sports model car for their conveyance. But if the customers are thinking about the price and safety bothered then they`ll apparently select a medium vehicle which will accommodateboth the mileage and safety (Goi, 2009).
Technological Factors:
Technological factors of the Ford automobile industry are muchmodernized when comparedto their competitors.
- Provide chain association: It is a very basic and too critical reason in the Ford automobile industry, because the customers of automobile are more distressed about the authorizing and when the industry is going to convey the vehicle. The Ford organization is having healthy supply series combination which is in more than thirty countries.
- Product Transpiration: Ford automobile organization is dispensing the customer to alter the car and its demands. So ford had accomplished a chance to inaugurate a fresh vehicle depended on the most of the consumer`s choice and inclinations. The Ford vehicles executing will be affected depended on the customer alteration demands (Dominici, 2009).
SWOT Analysis of Ford Automobile Company:
Strengths of Ford
- Brand Appearance: Ford brand is very popular in automobile organizations. Its brand appearance is famous in the worldwide merchandise because of high marketing and promoting.
- Connections with leading organizations: Ford industry has established strong business partnership with leading organizations like Suzuki and Isuzu Motors Company to establish exceptional automobiles and in the part to technological attitude for vehicle industry it is carrying on relations with Toyota and Honda.
Weakness of Ford
- Sales Deterioration: The sales appearance of the Ford organization was descent from the year 2008 to 2009 due to worldwide recession in the world financial market.
- Low abundance: Ford detailed its trade actions in expanded terrestrial distances, so administration is forgetting focus on some lines achievement and it access the ford to attempt the low productivity.
Opportunities of Ford
- Creation of the fuel conducive cars:The recent technology Ford is using is to create cars with low mileage and grasp. Ford is having a great convenience to produce fuel efficient cars and commercial vehicles. If the vehicles are established based on electricity engines the customers will array more attraction to purchase the vehicles, the fact is the vehicle maintenance charge will low when the car is run on electricity.
Circumstances in India and China markets: Ford is owning the market circumstances in India and China, both countries having large geographical area and community. The most of the people in these two countries are more attracted to possess a four wheeler for their family. That is the fact Ford Fiesta was the most acknowledged vehicle in these two markets for a large period of time.
Threats to Ford
Accelerated development of competitors: Ford advancement may actuate by rapid growth in the number of competitors in the transport organization. From the beginning America claimed vehicle organization. Ford’s main antagonist are General motors, Toyota, Honda, BMW, etc.
Smaller Capital applying: Ford is applying short on its actions and analysis advancement exercise, when compared to its competitors. The opponents are consuming large amount on experiment operations (Ford Motor Company- All Vehicles, 2015).
Task 2– Barrier to Marketing Planning
There are five major barriers to the preparation and implementation of marketing plans. These are:
- Isolating the marketing function from operations
One of the most significant causes of the failure of marketing planning is the belief that marketing is something that a person “does” in their office. The appointment of a marketing head is often a last-ditch attempt to put things right when all else has failed. The trouble with having a new person coming along is, irrespective of their knowledge or skills, they find that all the power is vested in “others”.
For the purpose of marketing planning, Ford should put marketing closest to the customer. The Marketing and Sales Report should be presented to the same person, preferably other than the CEO of the company or the unit (Van Watershoot et al, 1992).
- Confusion between the marketing function and the marketing concept.
Marketing is not just about strategizing the plans sitting in an office. It is the whole process from ideation to the implementation and ultimately execution of the strategy. Most of the companies and employees fail to understand this. The conceptual and theoretical knowledge of Marketing is just a reference and should be made to evolve periodically through the experiences in the market space.
It is to be understood that every employee of the marketing team should be able to foresee the SWOT related to the project and should be working on a pre-decided line from the beginning. A SWOT should be focused on each specific segment of crucial importance to the organization’s future and be a summary emanating from the marketing audit and be brief, interesting and concise.
- Lack of in-depth analysis and confusion between process and output.
Even from well-respected companies, the most common complaint concerns lack of adequate information for the purpose of analysis. On deeper investigation, however, it nearly always turns out to be a case of too much information rather than too little. The real problem is frequently lack of proper analysis. Confusion between the management process itself and the output of the process, the marketing plan, is common.
For an effective marketing audit to take place, checklists of questions customized according to level in the organization should be agreed (Yun-Sheng, 2001).
- Lack of a systematic approach to marketing planning.
A marketing planning system is essential to ensure that things happen when they are supposed to happen and that there are basic standards which must be adhered to. The coherence which is required is impossible to achieve due to the different levels of intellect and motivation of participating mangers.
It is essential for Ford Motors to have a set of written procedures in a common format for marketing planning. It is to ensure all key issues are systematically considered and to help corporate management to compare diverse businesses and to understand the overall condition of and prospects for the organization (Security and Exchange Commission, 2014)
- Failure to prioritize objectives in hostile corporate culture.
Ford must ensure that all objectives are prioritized according to their impact on the organizational goals and growth and their urgency and the required resources are allocated accordingly.
Task3 - Marketing Planning
Product
Ford Motors will plan to venture into the smart cars market. Smart cars not only will reduce the impact of fuel on environment and would prove as a sustainable breakthrough technology, few years down the line, it will also prove itself as economical and mass-based (Rahmani et al, 2015).
Product Development
New Product Development Steps
/Ford Motor’s new product Development
- Idea Generation
Ideas can, and will come, from many different directions. The best place to start is with a SWOT analysis, (Strengths, Weaknesses, Opportunities and Threats), which incorporates current market trends in automobile industry. This can be used to analyze your Ford’s position and find a direction that is in line with your business strategy.
- Idea Screening
Specific screening criteria need to be set for this stage, looking at Risk on Investment, affordability and market potential. These questions need to be considered carefully, to avoid the vehicle’s failure after considerable investment down the line.
- Concept Development & Testing
This stage will give Ford a chance to develop the concept further, considering the feedback of their regular clients and current market reports, but also to start thinking about what the marketing message will be.
- Business Analysis
This analysis needs to include: whether there is a demand for the new vehicle, a full financial appraisal of the costs, competition analysis and identification of an achievable and profitable break-even point.
- Product Development
If the new product is approved, it will be passed to the technical and marketing development stage. This is when a prototype or a limited production model will be created.
/ Product DevelopmentThe exact design & specifications and the manufacturing methods of the vehicle technology will be investigated, and something tangible is to be given for consumer testing, for feedback on specifics like look, feel and packaging for example.
- Test Marketing
Test marketing (or market testing) is different to concept or consumer testing, in that it introduces the prototype product following the proposed marketing plan as whole rather than individual elements.
/- Test Marketing
This process will required to validate the whole new vehicle idea and will be used for further refinement of all elements, from product to marketing message.
- Commercialisation
Ford Motor’s new product’s pricing and profitability analysis will be done and a marketing plan will be chalked out. The sales and distribution team will be briefed about the product.
- Launch
A detailed launch plan is needed for this stage to run smoothly and to have maximum impact. It should include decisions surrounding when and where to launch to target your primary consumer group.
/ LaunchLaunch should be designed so as to promote the message of sustainability and positive economics in the minds of the consumers. Also, the reviews from the pre-launch activities should be taken and necessary improvisations should be made.
Pricing
Ford’s new product prices should be made variable, depending on the market. Once the market opens its doors for sustainable vehicle technology, the product’s price could be increased as it will have the competitive advantage. Till then, the prices should be relatively low compared to the marquee products of other companies (Ford Motor Company- All Vehicles, 2015).
In the market-oriented pricing strategy, Ford’s goal should be to set prices that are appropriate to market conditions, with consideration for competition, demand, consumer perception, and other variables. Ford applies this pricing strategy for most of its products, such as sedans and trucks. On the other hand, it applies the premium pricing strategy to set higher prices for some of its products. This pricing strategy is used for most of the Lincoln automobiles, which are Ford’s luxury line of vehicles. This element of the marketing mix emphasizes the importance of different pricing strategies to support Ford’s efforts to secure different segments of the market for the new product (Rosenbloom et al, 2008).
Distribution
Ford must use typical venues for its strategy of product distribution. Ford has the following main places used for product distribution: