Beruflich Dokumente
Kultur Dokumente
Project Report
On
"Ford Motars Market Segmentation in
India"
Lucknow University
Lucknow
UNDER SUPERVISION of SUBMITTED BY
I, Anupama Yadav, here by declare that the project report entitled Ford
Motars Market Segmentation In India under the guidance of Dr. Ajay
Prakash submitted in partial fulfillment of the requirement for the
award of the degree of Master of business administration to
Lucknow University is my original Work - research study - carried out
1st and not submitted for any other degree/ fellowship or other similar
titles or prizes to any other institute or university by any other
person.
Signature:
AnupamaYadav
MBA 3rd Sem
ROLL NO.................
ACKNOWLEDGEMN
This is the pleasure movement for me to explicate my energized
intelligence. Thanks to Co-Coordinator Dr. Ajaya Prakash from Lucknow
University For accommodating advice during the research and help
provided by them in preparation of this report. This report is guided by their
co-operation and practicable suggestion. This study work could be finished
with in the period.
Anupama Yadav
1- HISTORY OF FORD
4- PRODUCT DETAILS
7- RESEARCH METHODOLOGY
9- SUGGESTION
10- QUESTIONAIRE
11- BIBILIOGRAPHY
HISTORY OF FORD
Industry : Automotive
Ford Motor Company is an American multinational
corporation and the world's fourth largest automaker based on
worldwide vehicle sales. 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
brands, including Lincoln and Mercury of the U.S. and Volvo of
Sweden.
EARLY DEVELOPMENT
Ford was launched in a converted factory in 1903 with $28,000 in cash from
twelve investors, most notably John and Horace Dodge, who would later
found the Dodge Brothers Motor Vehicle Company. 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.
Ford cut prices again and again and invented the system of franchised
dealers who were loyal to his brand name. Wall Street had criticized Ford's
generous labor practices when he began paying workers enough to buy the
products they made.
Ford 1916 Model T Field Ambulance. This canvas on wood frame model
was used extensively by the British & French as well as the American
Expeditionary Force in World War I. Its top speed was 45 mph (72 km/h),
produced by a 4 cylinder water cooled engine
It also transformed technology. Henry Ford is reported to have said, "Any
customer can have a car painted any color that he wants so long as it is
black." Before the assembly line, Ts had been available in a variety of
colors, including red, blue, and green, but not black. Now, paint had become
a production bottleneck; onlyJapan Black dried quickly enough, and not
until Duco lacquer appeared in 1926 would other colors reappear on the T.[8]
In 1915, Henry Ford went on a peace mission to Europe aboard a ship,
joining other pacifists in efforts to stop World War I. This led to an increase
in his personal popularity. Ford would subsequently go on to support the
war effort with the Model T becoming the underpinnings for Allied military
vehicles, like theFord 3-Ton M1918 tank, and the 1916 ambulance.
HISTORY OF BLUE OVAL
The Ford oval trademark was first introduced in 1907. The 1928 Model A
was the first vehicle to sport an early version of the Ford script in the oval
badge. The dark blue background of the oval is known to designers
as Pantone 294C. The Ford script is credited to Childe Harold Wills, Ford's
first chief engineer and designer. He created a script in 1903 based on the
one he used for his business cards. Today, the oval has evolved into a perfect
oval with a width-to-height ratio of 8:3. The current Centennial Oval was
introduced on June 17, 2003 as part of the 100th anniversary of Ford Motor
Company.
On February 4, 1922 Ford expanded its reach into the luxury auto market
through its acquisition of the Lincoln Motor Company, named for Abraham
Lincoln whom Henry Ford admired, but Henry M. Leland had named the
company in 1917. The Mercury division was established in 1938 to serve
the mid-price auto market.[14] Ford Motor Company built the largest museum
of American History in 1928, The Henry Ford.
Henry Ford would go on to acquire Abraham Lincoln's chair, which he was
assassinated in, from the owners of the Ford Theatre. Abraham Lincoln's
chair would be displayed along with John F. Kennedy's Lincoln limousine in
the Henry Ford Museum & Greenfield Village in Dearborn, known today as
The Henry Ford. Kennedy's limousine was leased to the White House by
Ford.
Fordland
In 1928, Henry Ford negotiated a deal with the government of Brazil for a
plot of land in the Amazon Rainforest. There, Ford attempted to cultivate
rubber for use in the company's automobiles. After considerable labor
unrest, social experimentation, and a failure to produce rubber, and after the
invention of synthetic rubber, the settlement was sold in 1945 and
abandoned.
The Great Depressio
During the great depression, Ford in common with other manufacturers,
responded to the collapse in motor sales by reducing the scale of their
operations and lying off workers. By 1932, the unemployment rate
in Detroit had risen to 30% with thousands of families facing real hardship.
Although Ford did assist a small number of distressed families with loans
and parcels of land to work, the majority of the thousands of unskilled
workers who were laid off were left to cope on their own. However, Henry
Ford angered many by making public statements that the unemployed
should do more to find work for themselves.
This led to Detroits Unemployed Council organizing the Ford Hunger
March. On March 7, 1932 some 3,000 - 5,000 unemployed workers
assembled in West Detroit to march on Ford's River Rouge plant to deliver
a petition demanding more support. As the march moved up Miller Road
and approached Gate 3 the protest turned ugly. The police fired tear gas into
the crowd and fire trucks were used to soak the protesters with icy water.
When the protesters responded by throwing rocks, the violence escalated
rapidly and culminated in the police and plant security guards firing live
rounds through the gates of the plant at the unarmed protesters. Four men
were killed outright and a fifth died later in hospital. Up to 60 more were
seriously injured.
Soviet Fords and the Gorki
In May 1929 the Soviet Union signed an agreement with the Ford Motor
Company. Under its terms, the Soviets agreed to purchase $13 million worth
of automobiles and parts, while Ford agreed to give technical assistance
until 1938 to construct an integrated automobile-manufacturing plant
at Nizhny Novgorod. Many American engineers and skilled auto workers
moved to the Soviet Union to work on the plant and its production lines,
which was named Gorkovsky Avtomobilny Zavod (GAZ), or Gorki
Automotive Plant in 1932. A few American workers stayed on after the
plant's completion, and eventually became victims of Stalin's Great Terror,
either shot or exiled to Soviet gulags. In 1933, the Soviets completed
construction on a production line for the Ford Model-A passenger car, called
the GAZ-A, and a light truck, the GAZ-AA. Both these Ford models were
immediately adopted for military use. By the late 1930s production at Gorki
was 80,000-90,000 "Russian Ford" vehicles per year. With its original Ford-
designed vehicles supplemented by imports and domestic copies of
imported equipment, the Gorki operations eventually produced a range of
automobiles, trucks, and military vehicles.
World War II
President Franklin Roosevelt referred to Detroit as the "Arsenal of
Democracy." The Ford Motor Company played a pivotal role in the allied
victory during World War I and World War II. As a pacifist, Henry Ford
had said war was a waste of time, and did not want to profit from it. He was
concerned the Nazis during the 1930s might nationalize his factories in
Germany. During the Great Depression Ford's wages may have seemed
great to his employees but many of the rules of the factories were very harsh
and strict. Those were tense times for American companies doing business
in Europe. Ford established a close collaboration with Germany's Nazi
government before the war-- so close, in fact, that Henry Ford received, in
July 1938, the Grand Cross of the German Eagle medal from the Nazi
government. In the spring of 1939, the Nazis assumed day to day control of
Ford factories in Germany. However, Ford's Dearborn headquarters
continued to maintain 52% ownership over the factories. Ford factories
contributed significantly to the buildup of Germany's armed forces. Ford
negotiated a resource-sharing agreement that allowed the German military
to access scarce supplies, particularly rubber. During this same period, Ford
was hesitant to participate in the Allied military effort. In June 1940, after
France had fallen to the Wehrmacht, Henry Ford personally nixed a plan to
build airplane engines for the Allies.
The situation changed after Pearl Harbor. With Europe under siege, Henry
Ford's genius would be turned to mass production for the war effort. These
efforts benefited the Allies as well as the Axis. After Bantam invented
the Jeep, the US War Department handed production over to Ford
and Willys. When Consolidated Aircraft could at most build one B-24
Liberator a day, Ford would show the world how to produce one an hour, at
a peak of 600 per month in 24 hour shifts. The specially-designed Willow
Run plant broke ground in April 1941. At the time, it was the largest
assembly line in the world, with over 3,500,000 square feet (330,000 m2)
under one roof. Edsel Ford, under severe stress, died in the spring of 1943 of
stomach cancer, prompting his grieving father to resume day-to-day control
of Ford. Mass production of the B-24 began by August 1943. Many pilots
slept on cots waiting for takeoff as B-24s rolled off the line. Ford production
was important to Nazi forces as well: roughly one-third of the German
Army's trucks, which played a crucial role in Germany's blitzkrieg strategy,
were produced by Ford.
After the US declared war in December 1941, Ford could no longer
communicate directly with its factories in Germany. However, indirect
communications continued, in at least one case. Robert Schmidt, the Nazi
manager of the Cologne Ford plant, traveled to Portugal in 1943 in order to
consult with Ford officials there. The Treasury Department also investigated
Ford for alleged collaboration with German-run Ford plants in occupied
France, but did not find conclusive evidence. After the war, Schmidt and
other Nazi-era managers kept their jobs with Ford's German division.
In the United Kingdom, Ford built a new factory in Trafford
Park, Manchester during WW2 where over 34,000 Rolls-Royce
Merlin aero engines were completed by a workforce trained from scratch.
visit Bhargava.
Post-World War ll Development
Current Ford CEO Alan Mulally, who was hired by William Clay Ford,
Jr. to restructure the company.
In December 2006, Ford announced it would mortgage all assets, including
factories and equipment, office property, intellectual property (patents and
blue oval trademarks), and its stakes in subsidiaries, to raise $23.4 billion
in cash. The secured credit line is expected to finance product development
during the restructuring through 2009, as the company expects to burn
through $17 billion in cash before turning a profit. The action was
unprecedented in the company's 103 year history.
1903 Model A
Sandip Sanyal is the Executive Director, Operations at Ford India since June
2008. Sandip reports to Michael Boneham, President and Managing
Director, Ford India.
In his previous role, as Vice President, Supply, Sandip was instrumental in
developing a strong local supply base and a supply team in India. A large
number of joint ventures between global suppliers and leading Indian
suppliers were created during this process.
Sandip has also played a role in developing business strategy for Ford in
Asia Pacific on an overseas assignment at Ford Motor Company in the US.
Sandip was also involved in the development of product strategy and a
viable plan for localization of the diesel engine critical for success in Indian
market. He has been instrumental in rolling out TVM process in Ford India
and providing guidance to the TVM team in India.
Nigel E. Wark is the Executive Director for Marketing, Sales and Service at
Ford India since March 2008. He has overall responsibility for Marketing,
Sales and Customer Service Operations in support of Ford India's expected
rapid future growth in the market through capacity expansion and a major
shift into the high volume segment. Wark reports to Michael Boneham,
President & Managing Director of Ford India.
Wark has extensive experience in sales, marketing and service and a strong
knowledge of the 12 markets comprising Ford's Asia Pacific and Africa
(APA) region. Prior to this appointment, Wark served as Executive Director
of Sales, APA, based in Bangkok, Thailand and Director of Customer
Service Operations (APA).
As Director of Customer Service for APA, Wark was responsible for all
service strategies and customer loyalty for APA, including Service
marketing, Quality Care, input into product development, brand alignment,
marketing, service and technical competency, parts supply and logistics,
customer satisfaction, training and development, and implementing
customer focused synergies for the APA organization.
Prior to this, Wark held the position of General Manager Ford Customer
Service Division for Ford of Australia.From 1995 to 2000, Wark served as
Marketing Sales & Service Director, Ford New Zealand before being
promoted to Managing Director after just two years. In these roles, he led a
restructuring exercise in the Marketing Sales and Service organization and
was instrumental in driving synergies with Ford Credit and Mazda, as well
as expansion and increased production from the Alloy Wheel manufacturing
operation.
Wark began his career with Ford Australia in their South Australian regional
office in 1975. After completing an extensive rotation of regional
assignments, he moved to the Head Office in Melbourne in 1985.
Wark earned a Bachelor of Economics degree from Flinders University in
Australia in 1974.
Kuljit Rana is the Vice President, Finance and Whole time Director at Ford
India. He took this position in June 2009 and is responsible for all financial
aspects of Ford India. Kuljit reports to Michael Boneham, President and
Managing Director, Ford India.
Kuljit has extensive experience in Finance having held a range of positions
covering diverse aspects of Finance including Product Development,
Treasury, Manufacturing, Marketing & Sales, Profit Analysis and Dealer
Operations, both in UK and Germany.
In his previous role, as Accounting and Internal Control Director for Ford
Asia Pacific and Africa, based in Chennai, he was deeply involved in
consolidation of accounting activity and improving overall controls and
governance environment in the Asia Pacific & Africa region.
Kuljit has also served as the Finance Director at Ford Retail, a wholly
owned Ford dealership operation in Europe comprising of 80+ outlets,
retailing 60,000 new and used vehicles a year. As Finance Director, at Ford
Retail, Kuljits responsibilities included managing all Finance activities of
the Company.
Kuljit joined Ford Motor Company in the UK in 1995 as a Junior Manager -
Financial Analysis. A Bachelor in Mechanical Engineering from Punjab
Engineering College, he also holds a Masters in Business Administration
from Manchester Business School in the UK.
Objective of ford
Primary objective:-
To know the influence of various marketing strategies,
promotional activities towards the customers of four
wheelers(cars).
Secondary objective:-
Ford Ikon
Displacement cc 1596
Type 4cyl. In-line,16 v dohc
Fuel system SEFI
Max.power ps/rpm 101 / 6500
Max.torque nm/rpm 146 / 3600
Transmission 5 Speed mannual
Price (lakh) 6.59
WHAT IS MARKETING STRATEGY?
Marketing strategy :
This input, in turn, provides the basis for the development of marketing
strategies in regard to product, pricing, distribution and promotion
decisions. Each of these steps requires a detailed analysis, since this plan
serves as the road map to follow in achieving marketing goals. Once the
detailed market analysis has been completed and marketing objectives have
been established, each element in the market mix must contribute to a
comprehensive integrated marketing program. Of course, the promotional
program element must be combined with all other program elements in such
a way as to achieve maximum impact.
Positioning is a platform for the brand.It facilitates the brand to get through
to the target consumers.
It is defined as the art and science of fitting the product or service to
one or more segments of the broad market in such a way as to set it
meaningfully apart from competition.
Positioning is the act of fixing the locus of the product offer in the minds of
the target consumers. In positioning, the firm decides how and around what
parameters, the product offer has to be placed before the target consumers.
The significance of product positioning can be easily understood from
David Ogilvys words:The results of your campaign depends less on how
we write your advertising than on how your product is positioned.
To create a position for a product or service, Trout and Ries suggest that
managers ask themselves six basic questions.
PRODUCT REPOSITIONING:
PROMOTIONAL DECISIONS:
Advertising:
Direct Marketing:
Interactive/Internet Marketing:
Sales Promotion:
Publicity/Public Relations:
Personal Selling:
Not only will he take due not of them, he will ensure that his marketing mix
suits the environmental variables. And, its it factor that renders tha task
much more complex.
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 firstdescribed the marketing mix in terms of the four Ps.He
classified the marketing mixvariables under four heads, each beginning with
the alphabet P.
Product
Place
Price
Promotion
In other words, there are only two broad routes available for forging
marketing strategies: any strategy has to be ultimately either a price-oriented
strategy or a differentiation-oriented strategy.
.
DIFFERENTIATION ORIENTED MARKETING
STRATEGY:
DIGITAL MARKETING:
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:
Coupons:
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.
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 inthe market share after a large share has been achieved may rise fast
and reduce the profit margin.
HARASSMENT STRATEGY:
Preemptive defense:-
A more aggressive defense maneuver is to launch an
attack on the enemy before the enemy starts its offense against the
leader. Preemptive defense assumes that an ounce of prevention is
worth more than a pound of cure.
Contraction defense:
Large companies recognize that they can no longer defend all the
territory.Their focusare spread too thin, and competitors are nibbling away
on several funds. The bestcourse of action then appears to be planned
contraction (also called strategic withdrawal).
INNOVATION STRATEGY:
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:
Ford modified its models for the Indian target segments as shown below:
Higher ground clearance to make the car more compatible to the
rougher road surface in India.
Indian roads.
The Ford in India has launched the car only for few segment of people.
The segmentation of car buyers based on price preferences are:-
Family car segment:These cars forms a reasonably sizeable segment of
the market (around 15 percent).
Preferred price range is from 5 lakh to 6 lakh.
FORD IKON AND FORD FUSION 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.
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
Indianroads.
FORD ENDEAVOURoccupies this segment.
Sales promotion :-
EXTENDED WARRANTY:-
Fortune Ford gives an extended warranty to its customers where there will
be an extended time duration in the warranty.
Extended Warranty:-
Benefits to customer:-
Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark
plugs etc.
Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch
Plates, Lower Suspension Arms,Shock Absorbers etc..
Mechanical/Electrical repairs
Labour for all the above
Accident repairs
Tyres
Fuel
MARKETING RESEARCH:-
BASIC RESEARCH:-
APPLIED RESEARCH:-
It is attempt to apply the various marketing technique, which have
been developed asresearch, first and later on they become applied research
techniques.It is on attempt to applythe basic principles and existing
knowledge for the purpose of solving operational problems.
RESEARCH METHOD:
DATA COLLECTION:-
CONTACTED METHOD:-
Address:
E-Mail address:
1. Which of the following Ford car you own?
a) Fiesta
b) Ikon
c) Endeavour
d) Fusion
e) figo
Data analysis:-
Interpretation:- This question preffers to mean that ford cars are like
for their comforts.
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
Data analysis:-
Data analysis:-
5. Can you share your experience with after sale service support ?
Data analysis:-
Data analysis:-
a)ICICI
b) HDFC
c) SBI
d) others
Data analysis:-
Interpretation:- Most of the customers get privilege from the ICICI &
SBI for car loans.
a) Televisions
b) Magazines
c) News papers
d) F.M/Radio
Data analysis:-
Data analysis:-
11. 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
Data analysis:-
Data analysis:-
13. What other brand(s) did you seriously consider before making this
car
Purchase ?
a) Hyundai
b) TATA
c) Maruti
d) Honda
Data analysis:-
Address:
E-Mail address:
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?
5. Can you share your experience with after sale service support
a)ICICI
b) HDFC
c) SBI
d) others
a) In house finance
b) Out house finance
c) No difference between the two
a) Televisions
b) Magazines
c) News papers
d) F.M/Radio
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
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. e do not share or sell your name, address or any other data with
any outside company or any purpose.
BIBLIOGRAPHY
REFERENCE BOOK:-
WEBLIOGRAPHY:-
WWW.FORDINDIA.COM
WWW.WIKIPEDIA.COM
WWW.GOOGLE.COM