Marketing Program Adopted by Ford - Coursework Example

Analysis Ford UK Contents Executive Summary 3 Introduction 3 Discussion 4 Considering the PESTEL analysis that is the Political, Environmental. Social, Technological, Economical and Legal factors of Ford 6 Porter five forces model 7 Value Chain Analysis 8 Market Analysis of Ford 9 Industry Life cycle of Ford 10 Objective future growth wants profit 10 7 Marketing program adopted by Ford 11 Control and Evaluation 11 Conclusion 12 References 13 Executive Summary Ford has undertaken a corporate strategy. Ford has adopted SWOT analysis for performing various business operations to analyse various fundamental strategy. Ford is acting as a bench mark for other automobile industry. Ford has successfully analyzed its position on the basis of various parameters such as unique selling point, mergers and acquisition and various business development and marketing strategies. The accessibility and feasibility of Ford is required in order to compare it with its competitors and analyzing and evaluating its industry life cycle. Instead of having severe rivalry Ford has sustained in the market and has gained competitive advantage over others. Introduction Societal marketing is a concept of marketing that is adopted by various companies and organizations in order to build the ethical and social considerations. By adopting societal marketing strategy the company is required to balance and resolve the conflicting profits of the company, satisfaction of the consumers and also the public interest. Here in this case considering the societal marketing strategy adopted by Ford because people now an s gift days are exchanging and communicating value in the market place. Ford identified the digital space economy which it considered to be the gift economy where the value for the services do not progress slowly but in a galloping mode between the consumers which helps Ford in providing a return for its brand and providing the value for the corporation. By adopting societal marketing Ford found that its brand was converted into an agent and also enabling cultural production that is providing fun. In order to serve well to its customers the marketers are adopting social marketing strategy. Presently Ford has taken its first step towards the movement of Fiesta providing and introducing a new marketing strategy on the digital space. Now a day’s societal marketing is attaining the advantage and the attention of the consumer and therefore it is expected to continue in order to get it into practice. The societal marketing is considered as important and an excellent tactic and tool for promotion with various social parameters and exploring the response and behaviour of the consumers. Discussion The main aim or objective of the societal marketing is positioning the product or the service offered. Positioning can be defined as the creativity or the strategy that is adopted for designing the offerings of the company and occupying an image in order to occupy a place in the mind of the target consumers and market (Boone and Kurtz, 2011) Ford is considered as one of the first automotive companies of America and even today Ford successfully manufactures trucks, buses and other automotive parts and sells automobiles. The Strength, weakness, opportunities and threats analysis of Ford can be explained as: Considering the Strength of Ford it is found that Ford has occupied a strong position in the US market and it has gained a reputation in its home market as well as in its commercial vehicle that is considered as most beneficial and profitable for Ford, Ford has taken a new initiative in developing its existing engines rather than adopting new hybrid engines. Ford Fiesta is the example of this initiative adopted by Ford, the financial performance of Ford is also very sound it is the only US automobile company that did not required the government bailout. It has a high liquidity ratio and profit margin as compared to its competitors. Ford has focussed on the single approach that is developing the car on the basis of the regulation and the regional preference of its customers. That has decreased the cost and has increased the profitability; Ford has gained a remarkable growth in China. Figure 1: SWOT Analysis Considering the Weakness of Ford it is found that it did not adopted or undertaken any step towards controlling and minimising pollution. Instead of controlling the cost the cost structure of Ford is very high and the operation that is carried out in Europe is very unprofitable. The opportunities of Ford are its positive attitude towards the green vehicles which are generally preferred by the customers as it is very fuel efficient, Ford is considered to be a fuel efficient vehicle as it has alternative fuel and hybrid engines which will substitute during the times of increase in price for fuel. Ford has developed a strong and close relationship with other automobile companies (Jurevicius, 2013). Taking into the threat aspects of Ford it is found that when at future time the price of fuel will decrease it will have a negative impact on Ford as Ford is providing more importance on the alternative use of fuel, the increasing price of the raw materials may decrease the profit of the Ford in the long run, ford mainly faces competition from the small car sector using hybrid engines, ford is likely to be affected negatively by the fluctuations in the exchange rate as most of the profit of Ford is generated from outside US. Considering the PESTEL analysis that is the Political, Environmental. Social, Technological, Economical and Legal factors of Ford The impact of the political factor on Ford is the charges on oil and the business that is cost less enforces the customer to focus on automobiles. The establishment of new organization has influenced Ford to take standing orders in advance that are required for assembling the transport. The labour unions are required to undertake the operations according to the rules and regulations prescribed in the business act. Social factors play an important role in assuring the consumers in the particular market domain. Technological factors of Ford are much advanced and developed as compared to its competitors it generally includes operation aptitude of Ford in providing developed assistance to its customers, technological advancement of Ford in implementing various design ( Gupta, 2013). Figure 2: PESTEL Analysis Ford is experiencing a sound combination of its supply series that is carried out in more than 30 countries. Considering the environmental factors it is found that the customers of Ford will prefer the use of the cars or economic transport that has massive engines but the Britain buyer generally prefer the use of small engines. Economic factor plays a vital role as it will lead to the advancement of the appropriate economy which will increase the GDP. Porter five forces model The five force model that is advocated by Porter can be analyzed for discussing the societal marketing of Ford. Bargaining power of the suppliers that can be explained by considering the high competition among the suppliers , the complex production inputs are almost similar, the concentration of the suppliers are low, the volume is considered and referred to as critical to its suppliers (Cafferky, 2005). Figure 3: Porter Five force Model Considering the bargaining power of the customers it is found that the product is regarded as important to its customers and it has large numbers of potential customers, When the threat of new competitors is taken into consideration it is found that the requirement of capital is very high, the brand name of Ford is very strong that is considered as a very important factor, Ford company is required to adopt advanced technology and also economies of scale for its operation, threat of substitute also plays an important role as the industry is large and the growth rate is also increasing. Value Chain Analysis Explaining the societal marketing of Ford through value chain analysis can be explained as the value chain analysis of ford is same as that of its competitors it does not varies much as compared to its competitors. Previously Ford has faced an increased demand of the supplier relations therefore Ford is undertaking a new strategy or approach for re investing in its value chain activities. Procurement contributes a vital element in the value chain therefore Ford has diverted its attention in procurement and Ford has also lowered its cost of the supply chain by charging less price from its suppliers and in turn receiving saving at the expense of the suppliers. Ford is adopting a different strategy and approach. Ford is establishing a close relation with its suppliers for eliminating the wastage and also lowering and reducing the cost for the organization. Figure 4: Value chain Analysis Another impact of Ford which is regarded as the high value and contributing in the value chain is the design phase. Ford has started understanding the value of its consumers in designing the successful modern technologies. Ford has adopted different design and models on the basis of public demand. This step has served as high successful in its financial report. Marketing is also regarded as the very important and vital factor contributing towards the value chain of Ford. Ford is establishing relation with its dealers for the creation and development of the marketing strategies that has increased and developed the sales which is regarded as the main basis for the perceived values of its consumers (Werbach, 2013). Market Analysis of Ford Ford is concentrating its sell on Ford Fiesta as it is offered at a reasonable price and the product also saves fuel. Ford Fiesta is especially targeting to the young mass and ladies. The product strategy that is adopted by Ford are the brand strategy in which Ford has classified its brand on various brand names such as mid size cars which is very elegant, different that determines its value and the price, packaging is not required much attention as usually the cars are not packed, labelling requires a less effort as it is required only to specify the parts of the car. The design that is adopted for Ford Fiesta is very kinetic and it assures smooth ride with minimal noise. Ford Fiesta represents itself for its better service and also it offers a warranty period of 3 months to its customers. Ford has also adopted different promotional strategy such as advertising, personal selling, sales promotion and also public relation. Ford has classified its customers into various segments for achieving the sales objectives by providing various promotional offers to its customers. The distribution strategy adopted by Ford is intensive, selective and exclusive (Smith, 2007). The segmentation, targeting and positioning of Ford in connection with its competitors can be analyzed as Ford has adopted a differentiated strategy in its business it is targeting more than two segments by establishing a marketing mix for each segments and the segmentation is done on the basis of demographic, psychographic and geographic segmentation. It offers a comprehensive analysis for its organization. The unique selling product of Ford is Ford Fiesta it has successfully launched Ford Fiesta in Germany. Industry Life cycle of Ford The life cycle of Ford mainly deals with the manufacturing and assembling of the raw materials for its production, the second phase is the driving of the vehicle phase and last is the end of the life phase which deals with the remaining vehicle and recycling and disposing off the resulting materials. Figure 5: Industry Life Cycle Adopting a holistic approach it can be concluded that it is very necessary for the creation of the sustainable life cycle of the vehicle. The main objective is providing benefit through the adoption of lifecycle in a societal and environmentally efficient and effective way (Drew, 2008). Objective future growth wants profit Ford has adopted different promotional strategy in order to maintain a marketing edge over its competitors it has adopted advertisement, public relation, personal selling for promotion. Ford is adopting advertisement as it creates awareness of the brand and is improving the corporate image. Ford has to face many issues regarding pricing it has adjusted the price according to the demand in the market. The price of Ford Fiesta is high because its demand is high in the market. 7 Marketing program adopted by Ford All the marketing mix strategy is adopted by Ford in order to generate profitability by reducing the cost and face the competition. Ford Fiesta has adopted different strategies in order to provide the consumers with high quality service at right place and in right time it has adopted different distribution strategy. Ford is adopting new design for is new car. The consumers can buy the cars OF Ford directly from its showroom (Chain, 2009) Figure 6: Marketing Mix Control and Evaluation Ford has undergone an increased amount of capital expenses for introducing new vehicles without analyzing the influence on the sales. Since the economy is at terrible state the losses are more severe. Therefore it is required by Ford to evaluate its cost in order to earn profit. Ford has adopted flexibility in its skill as compared to its competitors in order to capture the market. Conclusion Ford motor company is producing the car which is suitable and preferable for the average and lower income group. Ford products have few target markets. Ford motor company has varieties of product lines which includes Ford Fiesta, Ford Focus, Ford Escape, Ford Ranger, and various other products of Ford. There are many dealers OF Ford motor company in the world wide so that it can be readily available to the customer. Ford continued and was successful in maintaining a competitive edge by designing the vehicles in the European market. The strategy adopted by Ford has helped in the creation of quality vehicles References Boone, L., Kurtz, D. 2011. Contemporary Marketing. Canada: Cengage Learning Cafferky, M.E., 2005. The porter five-force industry analysis framework for religious nonprofits: a conceptual analysis. 8(2). pp 85-97. Chai G, 2009. A Review of Marketing Mix: 4Ps or More. International journal on marketing studies. 1(1).pp: 4-14. Drew, J. 2008. Ford to shorten vehicle life cycles; reduce number of global platforms. [online] Available at: http://www.leftlanenews.com/ford-to-shorten-vehicle-life-cycles-reduce-number-of-global-platforms.html. [Accessed on 8th December, 2014]. Gupta, A. 2013. Environmental and pest analysis: An approach to external business environment. Merit Research Journal of Art, Social Science and Humanities. 1(2). pp: 013-017. Honeycutt, E. D., Ford, J.B., and Simintiras, A.C. 2003. Sales Management: A Global Perspective. London: Psychology Press. Jurevicius, O. 2013. Strategic Management Insight. [Online] Available at: http://www.strategicmanagementinsight.com/swot-analyses/ford-swot-analysis.html. [Accessed on 8th December 2014]. Smith, C.G. 2007. Ford, Regaining Their Competitive Edge: A Study of the Strategic Management Processes for Operational Success. Canada: iUniverse. Werbach, A. 2013. Strategy for Sustainability: A Business Manifesto. United States of America Harvard Business Press. Read More

 

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