Dear Students,

I am Hari Haran and I take this opportunity to communicate to you.

Most of the times you give your assignment to some 3rd party agents and through them only they go to
writers - What you pay to the agents only 35 to 40 percentages go to the writers and they don’t pay for
all the works also. So most of the times you don’t get good works, at correct times and only to avoid this
please in future contact the writer directly. Tell them your issues and pay them at the right time.

You will get the best works.

My primary objective is to serve you the best.

So be clear on your needs.

1. Send me the following form filled when you request for the assignments (See the form below)
2. Don’t give the actual dead lines
3. Please give ample time and once given you kindly show to your professor ask for feedback and
get back
4. Based on the feedback I again do the alterations and handover to you. Then only go for the final
submissions
5. I will also give the plagiarism reports with the work
6. I ensure you get good marks
7. In rare case if the work fails it will be re-written again
8. Please put the money in advance to avoid confusion
9. Ensure to send all the materials ppt’s class notes and what models to be used in the work
(Mentioned specifically by your professor)
10. Even if you didn’t attend the classes please collect these from your Professors and send them to
me
11. Communicate to me on your needs
12. EMAIL: jjtechres@gmail.com Mobile 9626956700

1|Page
Name of the Student:

Contact number:

RELATIONSHIP MARKETING
Email id:

Topic of the Assignment:

Number of Copies:

Dead Line:

Specifications (Models to be used and other requirements like number of References):

Word count:

Font to be used and Size:

Feedback from professor and changes needed:

2|Page
INTRODUCTION:
The process of international market entry mainly fails as the organizations fail to adopt to the
new market area. The organizations focus only on the standardization and fail to be flexible in
the process. Day, G. S. (1990) emphasizes that it is essential to do an in-depth analysis on the
following parameters namely; new market, the target customers, their culture, expectations,
values, barriers to the market entry, similar substitute products, demand for the new product,
fixing the right pricing, forces which facilitate and trigger the process of success of the new
product in the new market.

Kotler, P. (1999) also agrees to this idea and he argues that it is highly relayed on the shoulders
of management and top level marketing executives to match their vision, objectives and set new
goals and targets based on the expectations of the customers in the global arena. For example the
same car sold in America can never be directly sold in France as the choices and the preferences
of the customers vary in Europe. The entire process of marketing has to be altered for the new
area to match their cultural and psychological needs.

3|Page
4|Page
As per the studies of Adam, V. (2017), the sales of the automotive mainly the cars saw a huge
fall during the year 2008 due to the economic slowdown in the international market and the
recession. Hence people considered buying cars as a luxury as there were huge job layoffs and
salary cuts. But this phenomenon drastically changed and only during the year 2016 it saw a
phenomenal raise in the increase in the sales of over 17 million cars and this is still on increasing
numbers. The uptrend continues in the current year 2017 also due to the launch of new
technologies like the Electric cars, Convertible cars which runs both of electricity and Diesel.
The fuel efficient technologies which leads to huge cost savings on the gas, has created potential
interest and aroused people’s emotions psychologically to again buy new cars or exchange their
old cars.

These factors are more favorable in case of ford as they plan to enter in to the other parts of
Europe and one more strong points on critical analysis of the Global sales data is that the main
places of Europe like France, Germany, etc.

Porter 5 forces

5|Page
Hence based on the data analysis, the buyer power is high in these regions which are more favorable for
the Ford. Hence they must focus on the other issues like the threat of substitutes and pricing.

Any global entry strategy will succeed based on the right choice of the product (Build on latest
technology), Price (Competitive price in the place where they enter), place (the right choice of place to
market the product, where competition is less and demand is high), Promotion strategies (To attract the
people without affecting their emotional values and believes), Finally the People factor (Build and
launch products to suit the taste of the people). (Neil B, et al., 2012)

6|Page
7|Page
Favorable factors in Europe:

Profits and Earnings before the taxes:

Based on the graph, it can be observed that the profits were sky high during Last year warning
over 90 million Euros. Thus the all the stakeholders involved in the process saw huge chunk of
the profits and the same in case of the returns which led to increase in the new investors (Capital)
and high liquid cash flow in the operations. Most of the manufacturers invested in the latest
technologies, R & D of hybrid engines. The same trends also continue in the current year with
minor variations and hence it is a good indicator for Ford as they chosen the right time to enter
into the Europe.

Thus as the demand is higher in the target market the chance of the product success is also
higher.

8|Page
The increase in the production cost is accounted due to various factors, like increase in the taxes,
wages, cost of the materials, etc., has accounted for the paramount increase in the graph during
the last year to over 195 million USD. For any car industry the initial investment is higher but
they will have to wait over a longer run to break even on their investment and get profits. More
over the choice of ford to utilize the existing factories in Belgium is an intelligent decision rather
than importing the cars from USA mainly because of the huge import / export duty and all the
associated cost.

With the investment in the Hybrid engines and plan to utilize the existing factories in Belgium,
and focus on the cultural needs of European people, will help in mitigating the associated risks
and capture the new market.

Technology planned for the ford car: Electric motor / Convertible

One of the major challenges faced in the auto industry is the continuing increase in the cost of
the oil prices and the depletion of the natural resources. The global market mainly depends on
the Gulf countries for the oil resources; and they are getting exhausted faster than expected. This
also accounts to lot of negative effects like global warming which threatens the chance of human
existence in the coming years. Hence its essential to look in for the other alternatives and much
demand occurs among the people for more cleaner mode of transportation like Electric and
Hybrid cars which are more cleaner modes of transportation.

9|Page
Based on the graph above it is evident that the demand for cars saw a stable increase mainly in
United Kingdom and European Union; this trend will continue to increase in the future. The
studies conducted by Johansson, J. K. (2000) also supports that the people in Europe are more
focused on the caution to preserve their environment. The government policies are more
favorable to the manufacturers who sell electric and hybrid cars which offer 106 per liter on
average and 140 km / Charge which is the cheapest of all in the market. The research and
development teams are working on increase of these values in the days to come by.

Hence in the next 15 years the studies have proved that over 98% of the cars in the EU market
will be purely electric or Hybrid in nature. Thus the graph show below which predicts the
forecasted sales also proves the high demand and sales of the Electric cars in the coming years.

10 | P a g e
Forecasted Sales:

Adam, V. (2017)

Adaptation and Localization of the Product

11 | P a g e
The process of international market entry for Ford must focus on not using the
technologies to enter but should be based on the Adaptation policy, where they are
flexible policy to alter the design, color, or any features of the product based on the
taste of the European people. This is a key factor for success mainly because, even
though it will be easy for ford to sell the same product in US, but it can succeed
only if they understand the people of Europe, their values, culture, beliefs,
Psychological / Cognitive / Emotional thoughts, affordability, etc. to create
products which will be more specific to the EU. The people of EU should get a
nativity feel on the new Ford model.

The Adaptation and localization policies are essential factors to be considered by

the marketing manager for the success of the product. (Altman, E I, 1983)

HOW THE TECHNOLOGY IS USED BY FORD IS GOING TO CHANGE

IN FUTURE?

Technology is going to play a key role in the success of the Ford mainly because;

1. Ford intelligently combines the technology with the expectation of the people in EU
2. They have aggressive pricing strategy to make the latest technology affordable to all the
people and when it comes to pricing they always offer the lowest prices for the product
3. The technology used in FORD is Electric and Hybrid aligns with the Political,
Environmental, Social and Legal view of the EU.
4. As discussed above EU people support the organizations which have higher degree of
corporate social responsibility; and producing these products with zero / no emissions
will be attracting the customers.

12 | P a g e
THE EXISTING KEY PLAYERS IN THE ELECTRIC CAR MARKET

Bertel, S. (2017)

The current existing market leaders in the Electric cars are Renault, Nissan, Mitsubishi,
Alliance and Tesla; with the majority of share in the sales done by Renault Nissan accounted for
sale of over thirty seven thousand cars last year alone. Thus, ford faces very tight competition
and since there are a lot of substitute products and options for the EU people in the market the
barriers to entry in relation to the threat of substitutes is much higher.

13 | P a g e
DIFFERENTIATING FACTORS TO BE ADOPTED BY FORD

Differentiating Explanation Compared with Model

Factors
Charging is one of the major issues
Charging in the modern electric cars as they Leaf
take more time to charge. PHEV

Ford plans to create batteries with

high charging in small amount of
time. (Distinguishing factor for
Competitor advantage )

Renault (Zoe and Leaf)

Poor / Lack of Compared to the other existing Tesla X
Charging players in the market which have Mitsubishi PHEV
Hubs like the outsourced the process of Charging Nissan
Gas Stations Hubs; Ford plans to distinguish its
service by creating and operating
their own charging hubs which will
increase the brand value of ford.
Product and The products of Ford are clearly Renault (Zoe and Leaf)
Pricing differentiated by their different Tesla X
categories to address different needs Mitsubishi PHEV
like they are the market leaders who Nissan
plan to launch Lowest pricing Kangaroo
strategies. This will become a
platform to attract more amount of
new customers in the market –
become a Strong Distinguishing
factor for Competitor advantage over
the others.
They also plan to launch high end
goods carrier vehicles much
affordable to the ones in the market

14 | P a g e
INVESTMENT COSTS
Estimated cost of investment on the new factories and all associated equipment's:

Three Billion British Pounds (approx.)

Time to break even: 3 Years

One of the major issues in assessing the risk associated with the Ford is the huge cost on
the initial investment and the time taken to recover that back. In case of Ford this is more
advantageous as the import duty is higher in EU and this will have a major impact on the
cost of the end products sold to the customers. Hence deploying one central factory in
Belgium and planning efficient supply chains and distribution facilities will help ford in
covering the entire Europe effectively. Moreover investments on the Factories also
become a invested capital for them to attract more investors and get Loans from the
banks.

15 | P a g e
 Porter’s Strategies:

INDUSTRY PRICE PRODUCT PRIORITY

FORCE

BARRIERS TO FORD PLANS TO ENTER STATE OF ART HYBRID CARS AND

THE ENTRY EU WITH THE MARKET TECHNOLOGIES – ELECTRIC CARS
LOWEST PRICING TO HYBRID CARS, LOWEST PRICE
BRING IN COMPETITOR ELECTRIC CARS, UNDERSTANDING
ADVANTAGE OVER THE ETC., THE CUSTOMERS AND
OTHER KEY SELLERS IN CLEAR PRODUCT BUILD PRODUCTS
THE MARKET LIKE DIFFERENTIATION BASED ON THEIR
TESLA, NISSAN, ETC., STRATEGIES CULTURAL AND
PSYCHOLOGICAL
NEEDS

BUYER CHEAPEST AND BEST TECHNICALLY

POWER AFFORDABLE IN THE BRILLIANT AND PRODUCT QUALITY
EU HIGH END STATE AND LOW PRICE
OF ART PRODUCTS
LOCALIZED FOR
THE TASTE OF
EUROPE PEOPLE

THREAT OF HIGH – BUT THIS CAN HIGH FOCUS ON THE

THE BE EASILY OVER COME CRITICAL SUCCESS
SUBSTITUTES WITH THE PRICING FACTORS
STRATEGIES OF FORD

16 | P a g e
Critical Success Factors CSR
The success of any organization lies on how effectively they are implemented and this is
measured by few critical success factors which determine how effective / successful each and
every process has been. (Sadler P., 2003)

At Ford the Measurable Critical Success factors are mainly;

The differentiation factors in the product like its unique looks, features, aesthetics, technical
differentiation, reliability, etc. Only when they differentiate their products and services from the
others they can attract new customers and create new market.

Levitt, T. (1983) argues that the effective use of Relationship marketing and traditional
transactional marketing for the creation of the new customers and maintain the customers. Ford
should focus on creating strong bonds with customers with their customized marketing plan
focused on the individuals, it should also deploy traditional mass marketing tactics like adverts in
newspapers, TV’s , etc. to attract wide range of new customers.

17 | P a g e
18 | P a g e
The total new electric car enquiries and purchases done in UK, that is the total sales ratios during
the past 2 years shows that there has been phenomenal increase in the need for the Electric cars
and they are considered as the selling scope of the Automobile industry in the coming years. The
graph proves that it has gone high during the September months of the past and the present year.
The total registration’s in the past month alone has gone up by nine thousand cars and this trend
is expected to increase in the coming months. Based on these values the demand curves for the
Fords new upcoming designs can be assessed for the future analysis approximately.

8000

7000

6000 16-Dec
17-Jan
5000 Feb-17
May-17
4000
Sep-17 Aug-17
Aug-17 Sep-17
3000
May-17
2000
Feb-17

1000 17-Jan

0 16-Dec

Electric Car
Registerations

19 | P a g e
 (a) Effect of fall in the sterling Euro Exchange rate

Ford has initially planned to reduce the risk associated with opening their own plant in UK as the
cost of the estimated investment is around three billion pounds. Hence it has planned to import
the cars from the nearest plants. However if there is a fall in the Sterling to Euro exchange the
cost of the end product that is the car or the parts they plan to import and assemble in United
Kingdom will increase phenomenally. This will have a huge negative impact on the business
model of ford as they will have to increase the cost of the car or will have to sacrifice their
profits.

Hence it will be effective strategy for Ford to go in for investment of their own plants in United
Kingdom and manufacture all the associated parts and never encourage an outsourcing model.
Since Ford has a global value of making the technologies as affordable for all the classes of
people, people have a brand image of ford and they will never be willing to pay the additional
import charges or a higher price values causing a GAP in the customer expectation versus the
perceived values.

20 | P a g e
 8000
7000
6000
5000 Sep-17
4000 Oct-17
Oct-17
3000
2000
1000
Sep-17
0

Expected Fall in Electric Car Registerations

On the analysis of the other key players in the market like Tesla, Nissan, etc. they all have
established all their operations in the UK market with their own production units, supply chain,
logistics, IT infrastructure, human Infra, etc., thus its highly strategic for the Ford to follow the
other key players mainly because there is a constant fall in the car sales in UK due to the rise in
the prices. Hence people are looking in for the alternatives like Metro’s and thus Ford should
have no options to open their own industries / production units in the UK rather than import the
cars.

21 | P a g e
 (b) Effect of an increase in the price of the Honda cars made in the UK.

This will be a major advantage for Ford because they use this strategically as an opportunity to
attract the floating customers of Honda. Apart from the few floating customers, the Ford can
offer cheap priced or cost minimized versions to attract new customers. One of the major factors
affecting the buying behavior is the price of the product, as the customer prefers good products at
the most affordable cost. Since Ford has direct substitutes to the products of Honda at a cost
effective price it can use this as a competitor advantage over Honda. People always look in for
the alternatives and the concept of brand loyalty is diminishing as in customer perspective price
is valued as the deciding parameter.

Ford thus has an edge over the products of Honda mainly because they offer the state of art
technologies like high speed charging electric cars, hybrid technologies at the market lowest
prices, etc., Surely they have products with unique features differentiated from their substitutes.

Hence this will provide a good opportunity for Ford to establish strongly in the British market.

Demand

400
300
Axis Title

200
100
0
1000 Demand
2000
3000
4000

1000 2000 3000 4000

Demand 400 200 100 50

22 | P a g e
 Demand
450
400
350
300
Axis Title

250
200
150
100
50
0
1000 2000 3000 4000
Demand 400 200 100 50

The price of the product is directly proportional to the sales and demand for the product. The
high is the price then low is the demand. Here we can observe that the prices of Honda cars
increase and the demand curve falls as the people look in for the alternatives like ford which
provide same features at a lower cost.

23 | P a g e
 Demand
450
400
350
300
Axis Title

250
200
150
100
50
0
4000 3000 2000 1000
Demand 50 100 200 400

The above graph proves the inverse, that is when the price drops the demand increases and this is
true in case of Ford as their prices drop leading to increase in the demand. The predicted value
for demand is also high in the future months as the price of the cars continues to fall.

15000

10000
Oct-17 Sep-17
5000 Oct-17
Sep-17
0

Expected Increase in Electric Car

Registerations

24 | P a g e
References:

1. Kotler, P. (1999). “Kotler on Marketing: How to Create, Win and Dominate

Markets”. Simon & Schuster UK Ltd.
2. Day, G. S. (1990). “Marketing Driven Strategy: Process For Creating
Value”: New York, Free Press.
3. Altman, E I, (1983), “Why business fail”, Journal of Business Strategy,
Spring, volume 3(4), pp 15 – 21.
4. Porter, M. E. (2008). “The five competitive forces that shape strategy”.
Harvard business review, 86(1), 25-40.
5. Levitt, T. (1983). “The Globalization of Markets”. Harvard Business
Review.
6. Johansson, J. K. (2000). “Global marketing-foreign entry, local marketing
and global management” (International ed.). Boston: Johannsson
7. Adam, V. (2017). Electric car’s to account for all new vehicle sales in
Europe by 2035. [Online]. London Available at: https: //www .the guardian
.com/environment/ 2017/jul/13/electric-cars-to-account-for-all-new-vehicle-
sales-in-europe-by-2035[Accessed 30 Oct. 2017].
8. Sadler P., (2003). Strategic management. (2nd edn). KOGEN Publications,
USA
9. Neil Brooks, Lyndon Simkin, (2012) "Judging marketing mix
effectiveness", Marketing Intelligence & Planning, Vol. 30 Issue: 5, pp.494-
514

25 | P a g e