Minor Project Report On

Submitted To: Mrs. Mansi Arora Madan

Submitted By: Gaurav Singh ENR no. 00350401710

EXECUTIVE SUMMARY

Ford Motor Company (NYSE: F) is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford soldVolvo to Geely Automobile.[2] Ford discontinued the Mercury brand after the 2011 model year. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914. Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010.[3] At the end of 2010, Ford was the fifth largest automaker in Europe.[4] Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion.[5]

Contents
1. Introduction of the company 2. Competitors 2.1 Toyota 2.2 Volkswagen 2.3 Honda 2.4 Nissan 2.5 Fiat 3. Segmentation 4. Targeting 5. Positioning 6. Recommendations & Conclusion 7. Bibliography 11 14 20 24 5 8

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CHAPTER-1 INTRODUCTION TO AUTOMOBILE INDUSTRY

One of the fastest growing industries in the world is automobile industry. This automobile industry 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 the automobile industry in the improvement of GDP of a country is. In India automobile industry has a growth rate is at the average of 10-12%.

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. \Indias 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 governments 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 industrys 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 industrys history was written by Maruti. It marked the Indian government getting into the far business in the early 1980s, 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 wasnt 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 Maruti 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 MNCs 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. Indias frugal engineering skill has now caught the worlds imagination, and an increasing number of carmakers are preparing to setup major capacities here. India is changing and changing fast. Its moving forward. Indias largest-selling car is not its cheapest car, the 800. It is the Alto. Peoples 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. Its been a long journey but to see where the Indian car industry is going. We have to see where it has been.

AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE:

The first motorcar on the streets of India was seen in 1898, Bombay had it first taxicabs by the turn of the century. In 1903, an American company began a public taxi service with a fleet of 50 cars. For about 50 years after car arrived in India, cars were directly imported. Before World War I, around 40,000 motor vehicles were imported. During the years between the wars, a small start for an automobile industry was made when assembly plant were established in Bombay, Calcutta and Madras.

Logo

Type Founded

Public (NYSE: F) Henry Ford (June 7, 1903) Dearborn. Michigan., United States Worldwide William C. Ford, Jr., Alan R. Mulally Automotive goods & services 120.1 billion 283,000 Website www.ford.com

Headquarters Area served Key people Products Revenue Employees Website

COMPETITORS

Toyota Motors
Toyota Motor Corporation commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide and was the world's largest automobile manufacturer by production. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors, along with several "non-automotive" companies.TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Volkswagon
Volkswagen (abbreviated VW) is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and koda marques and the truck manufacturer Scania. Volkswagen means "people's car" in German,. Its current tagline or slogan is Das Auto (in English The Car).

Honda
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to become the second-largest Japanese automobile manufacturer. As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is the sixth largest automobile manufacturer in the world. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics research and released their ASIMO robot in 2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.[9]

Nissan
Nissan Motor Company Ltd is a multinational automaker headquartered in Japan. It was formerly a core member of the Nissan Group, but has become more independent after its restructuring under Carlos Ghosn (CEO). It formerly marketed vehicles under the "Datsun" brand name and is one of the largest car manufacturers in the world. As of 2011, the company's global headquarters is located in Nishi-ku, Yokohama. In 1999, Nissan entered a two way alliance with Renault S.A. of France, which owns 43.4% of Nissan while Nissan holds 15% of Renault shares, as of 2008. The current market share of Nissan, along with Honda and Toyota, in American auto sales represent the largest of the automotive firms based in Asia that have been increasingly

encroaching on the historically dominant US-based "Big Three" consisting of GM, Ford and Chrysler. In its home market, Nissan became the second largest car manufacturer in 2011, surpassing Honda with Toyota still very much the dominant first. Along with its normal range of models, Nissan also produces a range of luxury models branded as Infiniti. The Nissan VQ engines, of V6 configuration, have been featured among Ward's 10 Best Engines for 14 straight years

Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino (English: Italian Automobile Factory of Turin), is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli. During its more than century long history, Fiat has also manufactured railway engines and carriages, military vehicles, and aircraft. As of 2009, Fiat (not including Chrysler[clarification needed]) was the world's ninth largest carmaker and the largest in Italy. Fiat-based cars are built around the world. Outside Italy, the largest country of production is Brazil, where the Fiat brand is market leader. The group also has factories in Argentina and Poland and a long history of licensing production of its products in other countries. It also has numerous alliances and joint ventures around the world, the principal one's being located in Italy, France, Turkey, Serbia, India and China. Agnelli's grandson Gianni Agnelli was Fiat's chairman from 1966 until 1996; he then served as honorary chairman from 1996 until his death on 24 January 2003, during which time Cesare Romiti served as chairman. After their removal, Paolo Fresco served as chairman and Paolo Cantarella as CEO. Umberto Agnelli then took over as chairman from 2002 to 2004. After Umberto Agnelli's death on 28 May 2004, Luca Cordero di Montezemolo was named chairman, with Agnelli heir John Elkann becoming vice chairman (at the age of 28), and other family members also serving on the board. At this point, CEO Giuseppe Morchio resigned, and Sergio Marchionne was named to replace him on 1 June 2004.

CHAPTER-3 SEGMENTATION

The main reason why we have Segmentation is because we have so many types of customers. The reason why Segmentation has become important in teaching and learning about marketing is because these groups of different customers have:

1. Become more numerous, we have many more types of segments 2. The differences among groups have become more distinct 3. The groups have become large in number

DEMOGRAPHIC SEGMENTATION o Subdividing the market in terms of demographic features of a country or a region. o Variables that may be considered are age, gender, marital status, family size, etc. o Demographic data is essential for estimating the size of the target market.

In demographic segmentation, we divide the market into groups on the basis of variables such as age, gender, etc these demographic variables are so popular with marketers so that they are often associated with the consumers needs and wants.

BASIS AGE

Ford Motors 25-60

GENDER FAMILY SIZE FAMILY LIFE CYCLE

Male, female 1-2,3-4,5-6+ Married, unmarried

PSYCHOGRAPHIC SEGMENTATION o Sub division of different groups on the basis of personality, life style and values.

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o Marketers of cosmetics, textiles, fast food providers etc. must understand the life style of the target market. o Automobile manufacturers must consider different personality traits in dividing the market.

It is the science using psychology to better understand the consumers, and they are trying to sui with local food, and they all ready created the brand name in consumers mind by advertisement and service i.e. 30 min delivery. In Psychographic segmentation, buyers are divided into lifestyle, personality or values. BASIS SOCIAL CLASS LIFE STYLE Ford Motors Upper-Middle class Upper Class Experiences Achievers

BEHAVIORIAL SEGMENTATION o o Relationship seekers: buyers who want to develop long term relationships with their suppliers or retailers. Loyal buyers of particular brand: buyers who seek a particular brand among competing brands.

BASIS Occasions BENEFITS LOYALITY STATUS READINESS STAGE

Ford Motors Special occasions Brand image Committed in heart and mind Status conscious

SOCIO-CULTRUAL SEGMENTATION o Variables that may considered for market segmentation are Income, occupation, education, religion, social classes, etc. o This segmentation is used for durable products such as automobiles, PCs, etc.

In Socio-Cultural segment of Ford motors, it targets the Urban sector of the economy for upper-middle and upper class family. Ford Motors company is found mainly in metropolitan

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cities. People of every cultural from different societies go for Ford Motors mostly in special occasions.

BASIS URBAN CULTURE SUB URBAN CULTURE RURAL CULTURE

Ford Motors Yes No No

GEOGRAPHIC SEGMENTATION o Subdividing the whole market into different geographical units which can be further sub-divided into smaller units. o A national marketer may take whole nation as his market. For example-in the detergent market Hindustan Levers and Procter and Gamble are all national marketers in India. o A multinational company may divide the global market on the basis of continents. Like Pepsi and Coca-cola. Area Semi Urban Urban

City Class-A and Class-B Cities i.e. Metro Politician Cities

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CHAPTER-4 TARGETING

Ford Motor Company President and CEO Alan Mulally revealed the much-anticipated new car to be produced in India. Called the new Ford Figo, the car was unveiled at a press event in Delhi as a major addition to the Ford India brand portfolio. Mulallys visit underscores the strategic importance of India in Fords future plans. He stated the new Ford Figo is designed and engineered to compete in the heart of the domestic India car market. The new Ford Figo will be manufactured at Fords expanded integrated manufacturing facility near Chennai, which is undergoing a $500 million transformation to become a regional centre of excellence for Ford small car production. The importance of Ford Figo extends beyond Indias borders. Fords investment in its Chennai plant gears it for eco-friendly volume production and positions Ford India to become a major export producer. DELHI, India, Sept. 23, 2009 Indias role as an important player in the future of Ford Motor Companys international strategy was underscored today when the companys President and CEO, Alan Mulally, unveiled an all-new car targeting the heart of the Indian car market the new Ford Figo. The Ford Figo, a new nameplate and a fresh face on the Indian market, signals Fords intention to compete in Indias largest and most important small car market segment. Ford Figo is the result of a significant Ford investment commitment to expand its plant near Chennai for volume production as a small-car centre of excellence regionally. Fords $500 million investment has doubled the plants production capacity to 200,000 units per year and introduces major advances in high-quality automation and innovative, eco-friendly production techniques. Our exciting new Ford Figo shows how serious we are about India, Mulally said. It reflects our commitment to compete with great products in all segments of this car market. We are confident the Ford Figo will be a product that Indian consumers really want and value. Ford Figo is designed and engineered to compete in Indias small car segment, which accounts for more than 70 percent of the new vehicle market. It leverages Fords small-car platform architecture, sharing underlying technology with the Ford Fiesta, already familiar to

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Indiandrivers.

P = Product M = Market

Companies choose product specialization when they have one primary product they create. They focus all their resources on this single product and its features. After exploring the market, they divide their potential consumers into different target markets, and then create several different versions of this single product to appeal to each market group, often changing features.

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Ford Motors market targets in Product Specialization which offers different varieties of Cars for different types of customers. For eg. Ford Fiesta, Ford Ikon for Upper-Middle class peoples and Ford Endeavour, Ford Fusion for Upper Class people.

FORD PRODUCTS

Fusion:

PRICE (lacs) : Engine : Type : SSS Construction : Fuel System : Displacement (cc) : Compression Ratio : Max. Power (ps/rpm) : Max. Torque (nm/pm) : Emission Stage :

6.77 TDci diesel 4 Cyl. In Line, 16 V DOHC All Aluminum Alloy SEFI 1596 9.75:1 101 / 6500 146 / 3400 Bharat Stage III

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Kerb Weight (Kg) : Transmission : Max Speed (Kmph) : Mileage :

1143 Manual 5 Speed 174 11.3

Endeavour:

PRICE(lacs)

(4X2) (4X4)

16.16 17.17

Engine: Type Displacement (cc) Max. Power (PS/rpm) Max. Torque (kgm/rpm) Ignition System Valve System Fuel System Emission Kerb Weight (Kg) Transmission MaxSpeed (Kmph) Mileage

2.5 litre, 4 Cylinder in-line, Turbocharged & inter-cooled diesel 2499 116/3500 28.5/2000 Compression SOHC, 12 Valves Indirect Injection Mechanical Pump Exhaust Gas Recirculation (EGR) Meeting Bharat Stage III Norms 1933/1958 Manual 5 Speed 142 8.2

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Fiesta:

Engine Price(in lacs) Type Construction Fuel System Displacement Compression Ratio Max. Power Output Max. Torque Transmission Type Kerb Weight (Kg) MaxSpeed (Kmph) Mileage ps/rpm Nm/rpm cc

1.4 EXI 6.76

1.6 ZXI 7.28

1.6 SXI 8.28

1.4EXI (TDCi) 8.00

1.4 ZXI (TDCi) 8.52

1.4 SXI (TDCi) 9.19

4 Cylinder in-Line, 16 Valve DOHC All-aluminium Alloy SEFI 1388 9.75:1 82/6000 127/4000 1596 9.75:1 101/6500 146/3400 1596 9.75:1 101/6500 146/3400

4 Cylinder in-Line, 8 Valve SOHC High Pressure Common Rail 1399 18:1 68/4000 160/2000 1399 18:1 68/4000 160/2000 1399 18:1 68/4000 160/2000

Emmision Compliance

Bharat Stage III 5 Speed Manual 170/178 14.75/13.6

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Ikon:

PRICE(lacs) Engine: Type Fuel system Displacement (cc) Max. Power (ps/rpm) Max. Torque (Nm/rpm) Transmission Type Kerb Weight (Kg) MaxSpeed (Kmph) Mileage

5.50

4 Cylinder, 8-V SOHC, Rocam Petrol SEFI 1299 70/5500 105/2500 5 Speed Manual 978 148 10.8

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CHAPTER- 5 POSITIONING

Ford unveiled its 2010 product lineup, which includes the return of the Taurus sedan, a restyled Ford Flex crossover with its patented EcoBoost engine, a high-performance version of its popular F-150 pickup truck, and restyled Lincoln MKS and MKT vehicles. On his blog, www.autoextremist.com, Detroit-based automotive industry analyst Peter DeLorenzo wrote about Fords unveiling of its product mix to a group of automotive journalists. It became quickly apparent to everyone that this company is more than just on the move, they are aggressively boosting their presence in the market with an array of impressive products that will transform the company, DeLorenzo wrote. Over the next 18 months, Ford will have the freshest, most contemporary lineup in the business and the newest fleet of vehicles in terms of age on the road. That product lineup is going to pay off big-time for Ford, DeLorenzo wrote. They also have scaled back manufacturing operations to align supply with demand and have taken steps to create a global manufacturing platform that will allow the company to use common technology and suppliers for vehicle offerings worldwide. Ford reported that it had a profit of $2.3 billion in the second quarter, compared with a loss of $8.7 billion a year earlier. Revenue for the period declined 40 percent, to $27.2 billion from $41.1 billion a year earlier. Ford and its competitors must aim at a moving target in trying to figure out what will sell. Consumer demands shift continuously, depending on the state of the economy and changes in fuel prices. The days of selling 400,000 or 500,000 units of any vehicle, except maybe the F-150, are over, Hinrichs said. Now we need to figure out how to make the same money selling lower volumes. The best way to do that is to go after a number of smaller niches. Fords in a pretty good position, both from a product standpoint and a reputation standpoint,

Tagline:
Since the advent of commercial television, corporate taglines, ad slogans, and jingles have been fighting the front-line battle to penetrate our minds, win our hearts, and open our wallets.

Build For the Road Ahead Quality is Job Done Drive One

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Bold Moves

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 and Trade-oriented activities Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various pointof-purchase materials. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers, distributors and retailers.

TV Commercial:
Ford's award winning 'kinetic design' styling is the star of the company's new pan-European brand TV commercial. Shot in a London studio, the commercial marks an evolution in Ford's advertising strategy, adding multi-model brand commercials to complement its traditional model-specific campaigns. Five of Ford's key new models - the Fiesta, Focus, Mondeo, Kuga and S-MAX star in the new advert, which sets out to visualize the key philosophy of the company's award-winning kinetic design form language used across the range: that the latest Ford cars look like they're moving even when standing still.

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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 publics.

Print Ad:

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CHAPTER- 6 RECOMMENDATION

Control the variations in income of employees. Provide incentive to motivate employees. Latest technology must be used by the car manufacture of Toyota. Om Toyota must stick to its product thus it will help in facing the competition. Company should provide attractive salary to employees. Event show should be organized.

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CONCLUSION

The study of finance department and sales department of any organization is not just a study work of few months. This is a very s h o r t t i m e p e r i o d f o r r e a c h i n g a n y c o n c l u s i o n o n t h e e m p l o ym e n t process or manpower results of the organization. This is a very wide subject for work.

I n t o d a y s r a p i d l y c h a n g i n g w o r l d , t h e r e a r e a l o t o f t h i n g s f o r l e a r n i n g in the field of business. It means we are new at every moment. After a brief study of Ford Ltd. In finance and sales department, I reach on some conclusion. These all are presented in the following of the company in sales field:

The work environment of the organization is friendly and suitable for the better work performance. There are a lot of opportunities of growth in the organization. S o m a n y f a c i l i t i e s a r e p r o v i d e d t o t h e e m p l o ye e s o f t h e organization. Management of the organization is helpful for the e m p l o ye e s i n a n y k i n d o f p r o b l e m .

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CHAPTER- 7 BIBLIOGRAPHY

Sites that I referred to complete my project:

WWW.SCRIBD.COM WWW.WIKIPEDIA.COM WWW.FORD.COM WWW.ASKNOW.COM

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