Evaluation on the Marketing Plan of Ford - Term Paper Example

?Evaluation on the Marketing Plan of Ford I. Executive Summary Ford Motor Company has become a pioneer in producing high-end sport utility vehicles (SUVs) to the market. One of its new SUV model is the 2013 Escape, which uses low fuel economy and presents several features, including a hands free technology, voice command functions, and easy parking detection. The need of the market for this type of vehicle is at its peak because this product does not only provide savings for fuel, but it also provide new technologies, such as the integration of motion sensored-technology and voice command functions, to the design of the vehicle. Further, different marketing strategies have been adopted by the company in order to meet the Ford’s objectives in promoting this new brand of car in the market. The company had used several promotional campaigns in order to create brand awareness to its target market around the world, such as print and digital ad campaigns. Moreover, it continues to evolve itself in order to meet the high demands of customers and keep track of technological advancements in the business world. In order to achieve excellence, Ford has laid out its set of objectives to lead their workforce in realizing the company’s goal. II. Company Description and Input from Corporate Strategies “Ford Motor Company was founded by Henry Ford in 1903” and become one of the top carmakers across the globe (“Heritage”). Ford had partnered with various businessmen to form the company. The first three cars, namely, the Models A, C, K, and T were done by three workers, and in order to increase their production of cars, Ford introduced the assembly line in 1913. Since then, the company had a high demand for its Model T cars because it was sold at a cheaper price. In 1920, the company became the top carmaker in the world. After the company had befallen during the World War I and II, the company picked up its pace and became successful in the production of cars like the Thunderbird and Mustang. In 2006, the company had undergone reconstruction with the hope of producing more cars that attract consumers (Wilson). During the economic downturn in 2008 and 2009, Ford had maintained its composure, and it never asked for government financial assistance to continue its operations in comparison with its other competitors, such as Chrysler and GM. Also, the company relied its financial capability by focusing its strategy on the Ford car brand. The market share of the brand had increased as a result from the implementation of the strategy (Ferrel and Hartline 3l). Lately, the company had created cars that answered to the needs of people, as well as integrated the latest technologies on their designs. In 2013, Several Ford car models are made available, including the Hybrid, Edge, and Escape, which feature the latest technology and consume less fuel as compared with other cars in the market (“Product Information: Ford 2013 Product Guide”). The company’s mission and vision statement emphasizes the importance of a unified team, plan, and goal to position itself as a leading company in the automotive industry. In order to achieve a unified team, Ford urges its workforce to uphold cooperation and create a team with a common objective so that it will remain or maintain as the best automotive company in the world. The company’s cooperation and teamwork can be accessed through bringing out the satisfaction of customers, employees, and business partners. It has also laid out its unified plan for the future, which includes: (1) a constant evolution of its operations that conform to the present demand and demographic behavior of the market; (2) speed up the creation of new products that conform with the preferences and desired needs of customers; (3) improve the financial environment of the company and; (4) work like a team in an effective manner. The main goal of Ford is “delivering profitable growth for all” (“Our Company: One Ford Mission and Vision”). Jackson, Sawyers, and Jenkins also cited one of the company’s corporate objectives, that is, to produce cars that cost low, made of the best quality, and offer the best value for customers (478). During the merge of the operations of Ford’s North America and Europe, a new strategic business unit was created and set out an objective to reach a larger market scale in the world. The company had also assigned a specific model to be created for each center in Asia, Europe, and America (Sandhusen 142). Ford’s Chief Executive, Alexander Trotman, explains the merge of centers with their resources, which he believes to be a great strategy in improving their car production to the satisfaction of their customers. He adds the positive impact that can be reaped out from the merge, particularly to its employees, customers, and stockholders (qtd. in Sandhusen 143). V. Marketing Objectives and Strategies A. Marketing Goal A: Remain as the top automaker in the world Objective A1: Offer high quality cars that cost low and meet the desired needs of their existing and potential customers Objective A2: Integrate new technologies to the car designs in 2013 Objective A3: Expand to reach of target market around the world Objective A4: Unify the aim of company’s goal to all its subsidiaries and employees Objective A5: Offer the best customer service and customer experience B. Marketing Goal B: Offer 2013 hybrid cars to the market Objective B1: Promote the new cars through online campaigns, print and television advertisements, and product launches Objective B2: Create a positive brand awareness to their existing and potential customers Objective B3: Create a sound and perfect marketing plan C. Marketing Goal C: Increase car sales revenues Objective C1: Introduce the brand to more locations Objective C2: Improve the quality of the car model Objective C3: Reduce the production cost Objective C4: Integrate new technology to the car for more value VI. Marketing Strategies A. Primary Target Market and Marketing Mix Primary target market: Middle aged young professionals Target’s primary need: Comfort, convenience, reliability, cost-effectiveness, new technology, durability, and versatility Identifying characteristics: A young professional who is in his or her late 20s; single or married; middle class; loves to road travel; passionate on his or her work; has a busy lifestyle; loves to travel with family and friends; lives in the United States; adventurous; family-oriented; a technology person and; environment friendly Purchasing/shopping habits and preferences: Spends money wisely; prefers high performance brands at a reasonable price; prefers features over price; cautious and; splurges on items that matters most Consumption/disposition characteristics: Must realize the need of the product; must see the balance of technology and price and; inclination of modern brands Product: 2013 Ford Escape Major features and benefits: The product offers efficient fuel consumption of not less than 5 mpg; integrated with a hands-free technology, which makes it easier to operate the vehicle with ease; geared with voice command prompts; has an easy parking space detection; built with a sensor that alerts the driver for any vehicle that will pass on the blindspot of the car; it automatically slows down when turning into a corner and speeds up when turning from a curve; operated with 4wd system that results to a better driving performance and; easy foldable rear seats for convenience Sustainable competitive advantage: The product has a towing capacity of not more than 3,500 lbs.; powered with an EcoBoost engine, which produces efficient fuel consumption and; eco-friendly Differentiation/positioning strategy: Positions its product as the best sport utility vehicle, which has the best fuel economy consumption and largest cargo volume that offers the greatest driving experience in the market. Brand name and packaging: The brand name is 2013 Ford Escape, and its body has a sleek unitized welded steel. Customer service strategy: Value the significance of customer’s loyalty Complementary products: Wheel locks, coin holder, lighter, ash cups, and cooler bags Pricing: $23, 365 Pricing objectives: Offer the lowest price possible; maximize profits; increase in sales volume Description of per unit costs: Escape S inclusive of all parts and warranty service for one year = $23, 365 Discount/markdown policy: Offers discounts and incentives to college students and military servicemen Distribution: Selective distribution centers worldwide General supply chain strategy: Ford Retail Network (FRN) Intermediaries and channels to be used: Auto retail stores and showrooms Elements of customer convenience: Accessibility of stores; provision of correct information by service personnel and; credibility and congeniality of service personnel Promotion: Digital promotional campaigns, advertising, and personal selling General IMC strategy: Print and digital ad campaigns IMC objectives and budget: Create brand awareness of the product; reach a wider scale of potential customers and; persuade potential customers to purchase brand Elements of the advertising/publicity strategy: Budget; form of media to be used; a well-planned advertisement and; creativity in presenting the advertising strategy Elements of the personal selling strategy: Rapport with potential customers; Catching attention of potential customers; giving correct and right information; answering customers’ queries and concerns and; amiability and congeniality Elements of trade sales promotion (push) strategy: Proper execution; good communication with potential customers; distinct and visible signage of the brand; time frame and; price emphasis Elements of consumer sales promotion (pull) strategy: Driving force to promote the product to potential buyers; knowledge of the brand and; reliability of distribution channels Elements of the sponsorship strategy: Commitment, brand value, alignment, and accountability B. Is there a Secondary Target Market? If so, repeat the above analysis No, there is no secondary target market. Works Cited Ferrell, O. C., and Michael D. Hartline. Marketing Strategy. 5th ed. Mason: South-Western Cengage Learning, 2011. Print. “Heritage.” Ford. Ford Motor Company, n.d. Web. 8 March 2013. . Jackson, Steve, Roby Sawyers, and Gregory J. Jenkins. Managerial Accounting: A Focus on Ethical Decision Making. 4th ed. Mason: Thomson South-Western, 2008. Print. “Our Company: One Ford Mission and Vision. Ford. Ford Motor Company, n.d. Web. 8 March 2013. < http://corporate.ford.com/our-company/our-company-news-detail/one- ford>. “Product Information: Ford 2013 Product Guide.” Ford. Ford Motor Company, n.d. Web. 7 March 2013. < http://media.ford.com/product-information.cfm>. Sandhusen, Richard L. Marketing. 3rd ed. New York: Barron, 2000. Print. Wilson, Kate M. Love to Know Cars. Love To Know, n.d. Web. 7 March 2013. . Read More