TABLE OF CONTENTS

Executive summary

CHAPTER 1

Industry profile

Company Profile/ Company History

Vision & Mission statement

Key Members

Competitors

CHAPTER 2

Marketing Mix: 4 P’s

Product

Price

Place

Promotion

CHAPTER 3

Corporate Social Responsibility

SWOT analysis

CHAPTER 4

Conclusion

Bibliography

CHAPTER 1

Industry profile

Company Profile/ Company History

Vision & Mission statement

Key Members

Competitors

INDUSTRY PROFILE

One of the fastest growing industries in the world is automobile industry. This

automobile industries even 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 is the automobile industry in the

improvement of GDP of a country. In India automobile industry has a growth rate is at

the average of 10-12%.

INDIAN AUTOMOBILE INDUSTRY SINCE 1947:INDIAN AUTOMOBILE INDUSTRY SINCE 1947:

Its 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.

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learnt to localize, the cars we made were all outdated designs with little or not

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 the 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 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.

Mission of FORD Motors

Every company has a Mission Statement. But they are very difficult to write - they should short, clear, vivid, inspiring and concise without using jargon, complicated words or concepts. A Mission Statement is generally included in documents such as Business Plans and Staff Handbooks and can be described as a cross between a company or corporate slogan, or tagline, and an executive summary! A highly successful Mission Statement is both memorable and engaging. A combination of both a company's mission and a company's vision of the future may be included in a Mission Statement. No wonder a Mission Statement is hard to write and there is so much confusion between a Mission Statement and a Vision Statement!

• Helpful hints and tips on writing Mission Statements

• Easy techniques - Samples, Formats, Contents and Example

• Content and Format of Ford Motor Company

• The content for Ford Motor Company

• Free hints , tips, samples and information from 'Examples Help'

• One of the most successful companies in the world

• Ford Motor Company Mission Statement: • "to become the world's leading consumer company for automotive products and

services."

Vision of FORD Motors

Corporate vision is a short, succinct, and inspiring statement of what the organization intends to become and to achieve at some point in the future, often stated in competitive terms. Vision refers to the category of intentions that are broad, all-inclusive and forward-thinking. It is the image that a business must have of its goals before it sets out to reach them. It describes aspirations for the future, without specifying the means that will be used to achieve those desired ends.

Warren Bennis, a noted writer on leadership, says: "To choose a direction, an executive must have developed a mental image of the possible and desirable future state of the organization. This image, which we call a vision, may be as vague as a dream or as precise as a goal or a mission statement

Vision a required for success in daily life as well, as illustrated in a study conducted by James Pennebaker at Southern Methodist University.10 He identified three kinds of people:

1. “high-level thinkers” who consistently focused on important issues of vision – their lives, identities, expectations for the future, and so on

2. “low-level thinkers” who consistently focused on mundane concerns and daily obligations, and

3. “flexible thinkers” who engaged in both high-level and low-level thinking. Flexible thinkers were found to have the best physical health and the lowest rates drug and alcohol use. Success and good health result from both high-level thinking about issues of vision, as well as more detailed, lower-level planning about how to achieve that vision

COMPANY PROFILE COMPANY PROFILE

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 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 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),

Edsel Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr.,

John L. Thornton and William Clay Ford (Director Emeritus).[8]

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 INDIAFORD IN INDIA: :

Ford started its innings with the Mahindra-Ford joint venture formed in 1994,

which produced the Escort out of M&M Nashik 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 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 high-maintenance 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.

Fortune FordFortune Ford is an authorized dealer for Ford India Limited, who are 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 truly European Ford

Fiesta, 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.

KEY MEMBERS

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.

SCOTT McCORMACK – Vice President, Marketing, Sales & Service

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

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.

COMPETITORS

TATA Motors: TATA Motors:

Established in 1945, Telco or the Tata Engineering and Locomotive Company, as its fll

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

Daimler-Benz 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 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.

MAHINDRA & MAHINDRA:MAHINDRA & MAHINDRA:

the story starts some time 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 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 13th January

1948. The first vehicles are assembled in Mazaogaon in Bombay.

The first M&M built Willys 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.

MARUTI:MARUTI:

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. The

company – Maruti Udyog Limited. The story of Maruti 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, low-maintenance 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 Maruti 800 was essentially a Suzuki SS80, which was called the Fronte in Japan

and Alto in most of the other markets. The 796cc, in-line, three-cylinder power plant

produced 39.5bhp at 5500rpm.

Maruti marked the beginning of a revolution in the Indian automobile industry. The

Maruti 800, with its compact size, nimble handling and perky engine, offered the Indian

motorist a cheaper, friendlier alternative. On 14th December 1983, Harpal Singh became

Maruti’s first customer as he received the keys of his Maruti 800 car from Prime Minister

Indira Gandhi. The car cost Rs.48,000. The new Maruti, launched in June 1986, cost

approximately Rs 15,000 more than the outgoing model.

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 markers are learning

some very hard truths. While the economic reforms process was kicked of f in 1991, it was

only in 1993 that the automobile industry was finally delicensed 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:

Audi

General Motors India

Mercedes-Benz

Hyundai Motors

Honda

Toyota

Skoda India

CHAPTER-2

MARKRTING MIX 4PsMARKRTING MIX 4Ps

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”.

• Product

• Place

• Price

• Promotion

THE MARKETING

PRODUCT PRICE PROMOTION

PLACE

Through which products are

sold to

PRODUCT PROFILEPRODUCT PROFILE

Endeavour:Endeavour:

Safety is not an optional extra on the Ford Endeavour. The Ford Endeavour is put through the most stringent Ford safety standards to ensure you and your loved ones are forever safe.

Starting from Rs.16.30 Lakhs

FiestaFiesta::

The Fiesta 1.6 EXI Duratec Petrol is a ‘value for money’ machine designed for one reason. Make available a truly great performance car that does not cost you the world to possess.

Starting from Rs. 6.34 Lakhs

Figo

Ford Figo 1.2 Duratec Petrol

Price Starting from Rs. 3.75 Lakhs

Overview:

• 1.2 Duratec Petrol engine • 71 PS @ 6250 RPM power • 102 NM @4000 RPM torque • The Figo delivers great performance in city and highway road conditions • A light and precise steering delivers superb control. An optimised suspension for a

comfortable ride without compromising on body roll and handling • The Ford signature of a car that’s waiting for you to hug the corners and drive all day

EXTERIOR APPEARANCE

• Body Coloured Front & Rear Bumpers

COMFORT & CONVENIENCE

• Air conditioning with Heater • Power Steering • Remote Fuel Filler opening

INTERIOR

• Day / Night Inside Rear View Mirror • Front Power Point (12V) • Cup holders in Front Centre Console

Ikon:Ikon:

Strong, purposeful angles defines Ford's kinetic design philosophy. And the Ford Ikon stands testimony to this, with the imposing grill-less front end, wide front fenders and meaty bumper. The new muscular hood hunches down to the all new multi-reflective, clear quad headlamps that stare you boldly in the eye.The Ford Ikon delivers great performance in city and highway road conditions

Starting from Rs. 4.92 Lakhs*

FUSIONFUSION

The new Ford Fusion Petrol, the No Nonsense car! With more space for everything, a compact

shape for city driving and an all-pep best-in-class 1.6 L Duratec engine that gives more power.. Price Starting from Rs. 5.94 Lakhs (Ex Showroom Delhi)

PRICING

• Family car segment: These cars forms a reasonably sizeable segment of the market

(around 15 percent).

Preferred price range is from 4 lakh to 6 lakh.

‘FORD FIGO’ AND‘FORD IKON’ 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 8 lakh to 12 lakh.

‘FORD FIESTA’come under this segment of cars.

• SUV segment: The buyers of this segment like to have a big vehicles.

And these cars are also useful for sport riding and even on hill areas. There body is

designed similar to offroad vehicles, which can withstand to Indian roads.

‘FORD ENDEAVOUR’ occupies this segment.

PLACE

SHOWROOM

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, etc.

2. Exchange offer for any of your used car. Free spot evaluation for any usedcar.

3. Professionally trained and courteous sales staff to take care of every relevant needs

of the customers.

4. Ford preferred insurance for cashless transactions in the event of claims. Special offers

on Insurance renewals.

Showroom and Sevice centre

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 drive 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.

PROMOTIONS

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 himself. 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.

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 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, inwhich organizations communicate directly with target customers to generate a response and atransaction. It has become such an integral part of the IMC program of many organizationsand 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 aproduct 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 userscan participate in and modify the form and content of the information they receive in realtime. Unlike traditional forms of marketing communications such as advertising, which are one-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 CD-ROMs, 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 andTrade-oriented activities.

1. Consumer-oriented sales promotion is targeted to the ultimate user of a productor service and includes couponing, sampling, premiums, rebates, contests, sweepstakes,and various point-of-purchase materials.

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

Personal Selling:

It is a form of person-to-person communication in which a seller attempts to assistand 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 thesales presentation can generally be assessed from the customer’s reactions.

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 weightage 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 forgoing 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 ofpricing. They use price as their competitive lever. They juggle the price of their product to suit the 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 inspite of strong competition. The cost advantage can emanate from different factors like, scale economies, early entry, a large market share built over a period of time, locational advantage, or synergy among the different businesses. The firms whole strategy, infact 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. Itworks 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 greatpotential in forgoing successful marketing strategies.The product can be differentiated along two major planks:

1. Tangible product attributes and functions,

2. Intangible characteristics and emotional associations.

DIGITAL MARKETING:

Digital Marketing is the practice of promoting products and services using digital

distribution channels to reach consumers in a timely, relevant, personal and cost-effective

manner. Whilst digital marketing does include many of the techniques and practice

contained within the category of Internet Marketing, it extends beyond this by including

other channels with which to reach people that do not require the use of The Internet. As

a result of this non-reliance on the Internet, the field of digital marketing includes a whole

host of elements such as mobile phones, sms/mms, display / banner ads and digital

outdoor.

BUZZ MARKETING (WORD OF MOUTH):

Word of mouth, is a reference to the passing of information by verbal means, especially recommendations, but also general information, in an informal, person-to-person manner. Word of mouth is typically considered a face-to-face spoken communication, although phone conversations, text messages sent via SMS and web dialogue, such as onlineprofile pages, blog posts, message board threads, instant messages and emails are often now included in the definition of word of mouth. There is some overlap in meaning between word of mouth and the following: rumor, gossip, and hearsay; however word ofmouth is more commonly used to describe positive information being spread rather than negative, although this is not always the case. Word-of-mouth promotion, also known as buzz

marketing and viral advertising, is highly valued by advertisers. It is believed that this form of communication has valuable source credibility. Research points to individuals being more inclined to believe WOMM than more formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals). In order to promote and manage word-of-mouth communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response. Influencer marketing is increasingly used to seed WOMM by targeting key individuals that have authority and a high number of personal connections.

EVANGELISM MARKETING:

It is an advanced form of word of mouth marketing (WOMM) in which companies develop customers who believe so strongly in a particular product or service that they freely try to convince others to buy and use it. The customers become voluntary advocates, actively spreading the word on behalf of the company.

Evangelism literally comes from the three words of 'bringing good news' and the marketing term justly draws from the religious sense, as consumers are literally driven by their beliefs in a product or service, which they preach in an attempt to convert others.

EFFECTIVE SALES PROMOTION:

Sales promotion consists of diverse collection of incentive tools mostly short

term, designed to stimulate quicker and greater purchase of particular products of

services by the consumer. Sales promotion is the only method that makes use of

incentives to cmplete the push-pull promotional strategy of motivating the sale force, the

dealer and the consumer in transacting a sale.

Price-Offs Offer:

Price-off offers refers to offering the product at lower than the normal price. This encourages immediate sales, attracts non-users, induces product trail and counters competition.

Premium:

Premium refers to the offer of an article of merchandise as an incentive in or

to sell the product.

Coupons:

In order to encourage product trail, stimulate re-purchase rate and build loyalty through news papers.

Dealer stock display contests:

It is a type of point of purchase advertising which uses the show windows of the dealer for providing exposure to the sponsor’s products.

DEFENDING MARKET SHARE:

While trying to expand total market size, the dominant firm must continuously

defend

it current business against rival attacks. This step is very much essential for the market

leader firm because the challenger firms are constantly to exploit the weaknesses of the

leader firms.

EXPANDING MARKET SHARE:

Market leaders can improve their profitability by increasing their market share. But for few market leaders those share in the total market is insignificantly, the expansionof market share n the total market may be proved both as expensive and risky. Therefore it s better for such leader firms in spending their time in building up the market size rather than expanding the market share.the reason for this transaction may be attributed to two factors:

1. The market leader firms might attract the provisions of various anti-trust legislations. The rival competitors will try to force the Government to bring legislations against the “MONOPOLISATION”

2. The second reason being the economic factors. The cost of making further gains in the market share after a large share has been achieved may rise fast and reduce the profit margin.

INNOVATION STRATEGY:

The market leader may innovateseveral strategies in respect of new product ideas,

customer services, means of distribution, cost cutting discovery. In addition to these, a

leader may discourage its competition particularly challenge firm.

FORTIFICATION STRATEGY:

In order to protect its market share, the market leader may try to keep it product

prices reasonable in relation to the perceived valued of the offer and competitors offer.

The leader produces it brand in a variety of sizes and firms.

CONFRONTATION STRATEGY:

If leader firm faces an extremely aggressive challenger, whose actions demand a quick and direct response. In such a situation, the market leader will engage any promotional war, engaging in a massive promotional expenditure that the aggressive challenger cannot match. The leader firm may engage in the price war whenever a new challenger is considering to entering its market.This strategy will frighten the potential competitions and make then to withdraw from entering the market.

RESEARCH METHODOLOGIES AND LIMITATIONS:

MARKETING RESEARCH:

Definition of marketing research 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 he systematic design collection analysis and reportingof data finding relevant to a specific marketing situation facing the company. Carefullyplanning 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 with in the company as to provide the information And analytical necessary for effective.

a) Planning of the future marketing activity.

b) Control of the marketing operation in the present.

c) Evaluation of marketing results.

A research may under take any of the three types of research investigation depending upon the problem. These type of research included:1. Basic research2. Applied research3. Designated Fact Gathering

BASIC RESEARCH:

It is also known as the pure fundamental research, which refers to those studies,

sole purpose of which is the discovery of new information. It is conducted to extend the

horizons on given area of knowledge with no immediate application to existing problems.

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.

DESIGNATED FACT GATHERING:

It refers to a research where the investigation attempts to gather some pre-determined

data.

RESEARCH METHOD:

It must be classified on the basis of the major purpose of the investigation. In this problem description studies have been undertaken, as the objective of the project is to conduct the market shares study to determine the share of market received by the company to the competitor.

DATA COLLECTION:

The information needed to further proceed had been collected through primary and secondary data.

a) PRIMARY DATA:

It consists of information collected for the specific purpose, survey research was used and all the details of Ford and their competitors were contacted. Survey research is the approached gathering description and information.

b) CONTACTED METHOD:

The information was solicited by administering structured questionnaire to the customer and dealers, thus getting to know directly from the dealers their sales before and after sales service.

c) SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been

collected fora 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.

Chapter 3

S.W.O.T. ANALYSIS

The Ford Asia, Ford Africa, and Ford Mazda operations have recorded strong performance in fiscal 2005 and this has made the company manufactures and distributes their vehicle to over 200 markets in the world. The strategy has got nothing to compare to marketing strategies of Tata Motors as they do not have the similar point.

Strengths

1. Strong Ford Asia, Africa and Ford Mazda operations

An obvious and strong performance in fiscal 2005. The revenue from Ford Asia, Africa and Ford Mazda itself has reached $8,245 million in 2005, up 18.5% over 2004. More importantly, this segment recorded an income before taxes of $297 million in fiscal 2005, up from $82 million in fiscal 2004. This could prove Ford to be a large revenue and profit driver in the upcoming years.

2. Growing Ford Europe and PAG

The Ford Europe and Premier Automotive Group (PAG) recorded strong revenue growth in fiscal 2005 as well. The PAG brand vehicles are such as Aston Martin, Volvo, Jaguar, and Land Rover. The revenue from Ford Europe and PAG hits nearly $60,258 million in 2005, and this has shown a growth of 11.3% over 2004. This revenue is primarily the sale in Europe and Turkey only.

3. Profitable financial services division

Ford Motor Credit (The financial services division) has kept the company buoyant. In fiscal 2005, Ford Motor Credit has recorded a before tax income of $5,891 million, approximately $873 million growth compared to $5,008 million in fiscal 2004. On the other hand, the automotive division recorded loss before taxes of $3,895 million in fiscal 2005, up from $155 million in fiscal 2004. As a result, the company was able to record a net profit of $2,024 million in fiscal 2005. In recent years, financial services division continues to remain profitable.

Weaknesses

Ford Motor Company faces 3 major weaknesses which are:

1. Weakening North American automotive operations

In fiscal 2005, the company’s operation in North America recorded a weak performance. The revenue fell 2.4% to approximately $80,600 million in fiscal 2005. The automotive

operations in North America have also recorded a loss before taxes of $2,500 million in fiscal 2005. If compared to fiscal 2004, the company recorded an income before taxes of $684 million for North America.

Reason why weakening of automotive operations in North America:

• Competitor such as Toyota and Honda from Japanese companies.• Market shift away from fuel-guzzling light trucks such as Ford Western Hauler,

Western Hauler Trucks towards more fuel efficient vehicles.• High fuel prices have also hurt Ford more than others if you check out gasoline

price history.

2. Tarnished brand image

Image of Ford has been flawed due to constant Ford Motor Company Recalls. For example the Ford Focus recall. Ford spent $2.1 billion in 2001 replacing 13 million tires made by Bridgestone/Firestone. Other than that, Ford recalled approximately 792,000 pickup trucks. All these has made a huge cost to the company as well as tarnish the brand image and make a negative impact to Ford’s sales in the US. Other than that, complaints to some of the product such as Ford Escape problems have also affect the brand image.

3. Large unfunded pension and other obligations

Ford has significant unfunded pension, health care and life insurance obligations.

Opportunities

1. The way forward plan

Ford had launched a new plan to improve the performance of automotive business in North America in year 2006. This plan aims to make the business more product-driven, customer-focused, and efficient.

2. Hybrid vehicles

By year 2010, more than half of Ford Motor Company’s product are expected to switch

to Hybrid electric engines due to the limited resources – petroleum. Higher fuel prices

and growing environment-consciousness will make Hybrid vehicle a good sale. The

hybrid vehicle may include Ford Flex Crossover.

3. Opportunities in India and China

China and India is world well-known country with high population. Ford reinforced its commitment to both these countries by launching Ford Fiesta in India during 2005 and light vehicle in China. High demand for light vehicle from these countries would provide an opportunity for the company to diversify its revenues.

Threats

1. Rising new material prices

Unstable steel price, hot rolled steel coil price, has become one of the biggest threats not to Ford Company but most of the automotive company. Ongoing industry consolidation in the steel industry could push prices to higher levels at anytime when the demand grows. This could obviously affect the company’s profit margins.

2. Increasing competition

Ford market share in the US light vehicle market has declined from 22.8% to 18.2% from 2001 to 2005. This is because the major competition from Japanese companies and some other Europe companies such as Audi, Mercedes-Benz…etc The growth of Japanese company such as Toyota, Honda, and Nissan has also threatened Ford’s market share.

3. Low capital spending

Ford’s capital spending is lower than its competitor. This capital spending has include the Research and Development (R&D) expenditure which could affect the company from going forward. In 2005, Ford’s capital spending was only $1,766 per vehicle compared to Honda’s $3,193 per vehicle and Toyota’s $2,937. In automobile industry, any aging vehicle range would adversely affect growth of the company.

CORPORATE SOCIAL CORPORATE SOCIAL

RESPONSIBILITY (CSRRESPONSIBILITY (CSR))

CSR Profile of Ford Motor Company

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich.,

manufactures or distributes automobiles in 200 markets across six continents. With about

228,000 employees and about 90 plants worldwide, the company's core and affiliated

automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company

provides financial services through Ford Motor Credit Company.

Community Connect InitiativesCommunity Connect is part of Ford Business Services center's monthly plan.

Some of the activities undertaken in the month of October are -

S. No

Name of the Institution

Projects done

Date VolunteersMan hours

Amount Spent

1

Okkiyam Thoraipakkam

Govt. High School

Black board painting

07/10/2006 20 80 $70

2Anbu Malar -

school for mentally retarded

Monthly supplies,

Games with the kids

10/10/2006 13 52 $110

3Nethrodaya -

Home for blind

Reading books for the

blind students

14/10/2006 4 16 $80

4Ananda

Deepavali

Festival of lights

celebration with 1200

orphan children in

the city

15/10/2006 74 740 $1378

5

Guild of service - School for Physically challenged

Games with the children

17/10/2006 17 68 $110

6

Govt Higher Secondary

School, Madampakkam

Uniforms distributed for 60 poor

children

18/10/2006 12 48 $250

Total 140 1004 $1998

Anandha Deepavali

Festivals are special days. But are they special for everyone?

Anandha Deepavali (Joyous Diwali) celebration for underprivileged children every year

was born nine years ago as an answer to this question. Beginning in 1998, Udhavum

ullangal have been transforming deepavali days into a veritable mart of pure joy for

visually impaired, mentally ill, mentally retarded, physically challenged and other

disadvantaged children from several homes, Orphanages and institutions in Chennai each

year. FBSC is associated with this noble cause for more than 4 years along with few other

corporate. This year our employees have contributed more than Rs 60,000 from their

salary. With our generous and unstinting support, literally 300 out of 1200 children

selected by udhavum ullangal have received new dresses with our contributions. Others

have supported in grand feasts, a chance to burst crackers. Nearly 74 FBSC volunteers

spent the whole day on 15th Oct 2006 with these underprivileged children.

CHAPTER – 4CHAPTER – 4

CONCLUSIONCONCLUSION

VALUABLE SUGGESTIONS GIVEN BY FORDVALUABLE SUGGESTIONS GIVEN BY FORD CUSTOMERS:CUSTOMERS:

Please try to increase the number of Service centers.

Keep Service Stations at main locations of the city, like Banjara Hills, Jubilee

Hills, Begum pet etc., where many customers feel it easy to go to service

centers.

There is no proper response from the service men at service station. Please

recruit efficient service men in the service centers.

The service men in the service centers are unable to understand the problems

told by us, and they are not resolving the cars problems.

Provide information on service and mileage regularly.

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 Fiesta.

Try to provide financial facility at 0% interest.

Customer should be educated about the maintenance of the vehicle. i.e.

maintenance tips should be provided.

Mileage of the cars is not up to the expectations.

Mileage of Fiesta is very worst its giving only 9 to 11 Kms per liter. Please try

to rectify it.

The quality of the sun proof coating used is of very low quality, vehicle colour

is getting shaded very quickly.

Please send the specially appointed feed back taking staff on Sunday evenings

only.

The sales people present in the showroom respond to us properly when we

come to purchase a new car, but they do not respond when we come to tell our

problems regarding the cars.

QUESTIONNAIRE

Address: E-MAIL:

1. Which of the following Ford car you own?

a) Fiesta

b) Ikon

c) Endeavour

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

c) low maintenance

d)sound quality

e) Brand name

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 persons visit

e) Auto magazines

5. Can you share your experience with after sale service support

a) Very much satisfied

b) Satisfiedc) Okd) Not satisfied

6. Where do you get your car serviced regularly?

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) Cant say

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

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. What’s your opinion on a Brand Ambassador for the cars?

a) Very necessary

b) Not needed

c) Waste of money for manufacturer

16.What’s your opinion about the previous Ambassador Abhishek Bachan for the

car Ford Fiesta ?

a)ll filled the purposeb) 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

d) Any celebrity

18. What other brand(s) did you seriously consider before making this car purchase?a) Hyundaib) Skodac) Marutid) Hondae) Toyota

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.