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“THE MARKETING STRATEGY OF FORD MOTOR”
By
SHISHIR PRATAP SINGH
(REG No. 5141)
OF
VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT
UNDER THE GUIDANCE OF
Dr.C.ANURADHA
ASSOCIATE PROFESSOR
A PROJECT REPORT
SUBMITTED TO THE
FACULTY OF BUSINESS MANAGEMENT
IN PARTIAL FULFILLMENT OF THE REQUIRMENTS
FOR THE AWARD OF THE
POST GRADUATE DIPLOMA IN MANAGEMENT
July 2010
1
Declaration
I Shishir pratap singh, hereby declare that this project titled “THE MARKETING
STRATEGY OF FORD MOTOR” Is an original work carried out by me, under the guidance
of DR.C.ANURADHA (Designation of faculty). The report by me is a bonafide work carried
by me of my own efforts and it has not been submitted to any other university or published
any time before.
Signature of the student
Shishir pratap singh
Date:
Place:
2
Certificate
Certified that this project titled “the marketing strategy of ford motor” is bonafide work of
“THE MARKETING STRATEGY OF FORD MOTOR”, who carried out the research under
my supervision, certified furthers, that to the best of my knowledge the work reported here is
done not from part of any other thesis dissertation on the basis of which a degree or award
was conferred one an earlier occasion on this or any other candidate.
Signature of the Faculty Guide
Dr.C.Anuradha
Date:
Place:
3
Acknowledgement
I would like to thank my Project Guide Dr. C.ANURADHA and project coordinator Prof.
SUNITA RATNAKARAM for his immense guidance, valuable help and the opportunity
provided to me to complete the project under her guidance.
I would like to thank all faculty members of Vishwa Vishwani Institute of Systems &
Management for guiding and supporting me in the completion of project from time to time.
To initiate with anything I would like to record my sincere thanks to all members of FORD
MOTOR LTD. Specially MR.IMAD AKHTAR (General Manager) MR.SHREEKANT
(ASST MANAGER), ISSAQ PASSA and MR. ABID for providing assistance from time to
time for this project.
Last but not the least, my gratitude to great almighty and my parents without whose
concerned and devoted support the project would not have been the way it is today.
Shishir pratap singh
VVISM , Hyderabad
4
Table of Contents
TOPIC PAGE NO.
Title page
Declaration by student trainee
Certificate from company
Certificate from guide
Acknowledgement
Content page
Executive Summary
Chapter. 1
Introduction
a. Objectives
b. Need for the study
c. Scope & limitation
Chapter .2
Research Methodology
Chapter.3
Company overview
Industry overview
Literature review
5
Chapter .4
Data Analysis
Chapter .5
Findings, recommendations & conclusion
Annexure
Questionnaire
Documents supporting if any
Bibliography
6
PREFACE
ummer Training in any organization is an attempt to provide the student a practical
input and exposure to the real world situation in which he has to work in future.SMy training in FORD MOTOR was an attempt in this regard. The project work provided to
me was a titled “The Marketing strategy of Ford Motor”. To developed the new business
relation with different nationalized and private bank across the twin city Hyderabad and
Secundrabad. I conducted the event show of popular “go fida” cars, the “ford FIESTA” and
“ford FIGO” and met a lot of customer and got information from their side.
The Extract of the work is presented in this report under various headings as, Introduction,
Company’s Profile, Project Introduction, Methodology, Data analysis, Suggestions and
Conclusions.
This report provides me a chance to study and analyses the practical aspects of the topic (The
Marketing Strategy of Ford Motor). It enhanced my knowledge in the field of marketing.
This project also gave me the chance to improve logical thinking and interacting patterns.
While working on the project, I came to know about the latest marketing strategies and
trends prevailing in the market. The way of promoting the products, providing a better
convenience of customer, and developing the new strategic technique to sell the product.
7
EXECUTIVE SUMMARY
This project was really a challenge for me but I learned a lot while preparing this project
basically FORD MOTOR LTD. Manufacturing the cars and providing better service to the
customer, and it has new launched the “go fida”
FORD FIESTA
FORD FIGO
This project high lightens the importance of financial institutions and banks role in car
selling. This project also highlights the product promotion during the different bank visit
firstly make aware the bank branch manager about the product. The project deals with the
various aspects of marketing strategy and sales. New marketing strategy mean that creating
new market area, developing the new relation, doing new promotion and advertising is done
in relation to the 4 P’s of marketing that is Product, Price, Place and Promotion. There exist
some opportunity in the marketing activity done by the company in the past. The new
marketing strategy of the company will develop the mutual relation with banks and provide
the quick facility the car finance to the customer.
My topic of study is “The Marketing Strategy of Ford Motor” compared the Ford product
with the other automobile product in the aspects of features, new technology, modern look,
cheap price, luxurious interior design, mileage efficiency during the conducting of event
show in entire area of the city.
8
CHAPTER - 1
9
INTRODUCTION TO THE TOPIC
Today’s society is warm with urbanization and demonstration effect. With a view towards it,
there are drastic changes coming up in all sectors even in the automobile Industries. The
following information gives an insight about it.
In the present context the companies operate on the principle of natural selection –
“Survival of The Fittest”. Only those companies will succeed which at best match to the
current environmental imperatives – those who can deliver what people are ready to buy,
according to their convenience.
But real marketing does not involve the art of selling what the manufacturers make.
Organizations gain market leadership by understanding consumer needs and finding solutions
that delight consumers. If customer value and satisfaction are absent, no amount of promotion
or selling can be compensating. Hence the aim of marketing is to build and manage
Profitable Business Relationship
This is a part of the strategic marketing done by every company to achieve it objectives and
goals. To maximize the profits and long-term plans every organization has to follow a
strategic planning. Marketing is much more than just an isolated business function – it is a
philosophy that guides the entire organization towards sensing, serving and satisfying
consumer needs. The marketing department cannot accomplish the company’s customer
relationship-building goals by itself. It must partner closely with other departments in the
company and with other organization throughout its entire value – delivery network to
provide superior customer value and satisfaction. Thus marketing calls upon everyone in the
organization to “think customer” and to do all they can to help build and manage profitable
customer relationship. Marketing is all around us, and we need to know that it is not only
10
used by manufacturing companies, wholesaler and retailers, but also by all kinds of
individuals and organizations
There are four major, powerful themes that go to the heart of modern marketing theory
and practice, they are:
1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS.
2. BUILDING AND MANAGING STRONG BRANDS.
3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE.
4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE.
What marketing is what it does and what it offers?
“Marketing is a social and managerial process whereby individual and groups obtain what
they need and want through creating and exchanging products and value with others.”
“Marketing management is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational goals.”
“Marketing offers some combination of products, services, information, or experiences
offered to a market to satisfy a need or want” Marketing is an orderly and insightful process
for thinking about and planning for markets. The process starts with researching the market
place to understand its dynamics. The marketer uses research methodologies to identify
opportunities, that is, to find individuals all groups of people with unmet needs or latent
interest in some products or service.
The marketing process consists of the following:
1. Analyzing marketing opportunities.
2. Developing marketing strategies.
3. Planning marketing programs
4. Managing the marketing efforts.
11
Before taking any decision and achieving the goals, it has to make analysis of what to do,
how to do, when to do, where to do and who is to do it. This is nothing but strategic planning.
Goals indicate what a business unit wants to achieve whereas strategy is how to get there.
Marketing strategies in simple terms are the complete and unbeatable plans designed
specifically for attaining the marketing objectives of the firm. Marketing can be called as a
game plan for achieving its goals. Strategy choice will depend on whether the firm or the
marketer plays the following roles:
Market leader
A challenger
A follower
A niche
The identification of objectives, both in quantitative and qualitative terms, is an essential
backdrop to strategy formulation. Goals have a quality and time frame attached to them.
These are typically spelt out in terms of financial return, market share, market presence, etc.
Thus, the concept of market oriented strategic planning arises with the link between the
products the manufacturer is dealing in and the market conditions. In this direction, our study
deals only with the marketing strategies i.e. promotional strategies of the Ford automotives.
12
OBJECTIVE
To develop the relationship with bankers to make the auto finance easy for customer.
To know the factor of awareness of the cars.
To Study and analyze the Promotional Strategies of Ford.
To know whether the customers are satisfied with the offers given by the dealer.
To find out satisfaction of the customers.
TO study and analyze the customer's perception regarding the usefulness/utility of
Ford cars.
NEED FOR THE STUDY
To know the all market competitor of the product.
To understand the all features of product, which I should be promote.
To study history growth and development of FORD MOTOR in Hyderabad.
To provide important lead on customer convenience front to FORD MOTOR, which
would be helpful in making increase the sell?
SCOPE OF THE STUDY
The study is conducted for developing the mutual relationship with all private and
nationalized banks.
The study was conducted in Hyderabad and Secundrabad area.
The study covers the customer’s perceptions and their most used product.
The study covers the customer’s perception for auto finance.
13
The study covers the bankers perception, which automotive company they are
sanctioning more.
The study was conducted to approach the customer those who are approaching for car
loan.
The study covers the product promotion the new lunched product “go fida” the “ford
FIESTA” and “ford FIGO”.
LIMITATION
The present study is subjected to following limitation.
To develop the relationship through personal interaction by talking such appointment
of Bank Manager and therefore bias becomes a major limitation.
Due to time constraints I have been visit only seventy five branch of different banks,
and conduct seven event shows in different place of the city.
During the event shows I met a lot of customer some were intender and some were
owner.
The sample was restricted to 75 banks and 10 event shows, which may restrict the
scope and completion of study.
The scope of is restricted only to the twin cities of Hyderabad and Secundrabad.
Owing to their pre owned car, shortness of time and due to privacy some customers
were unable to entertain.
14
CHAPTER – 2
15
RESEARCH METHODOLOGY
MARKETING RESEARCH:
Definition of marketing research as approved as by the board of directors of the association
of American marketing association is: “Marketing research is the function which links the
customer and public to the marketer through information – information used to identity and
define marketing opportunities and problems generate define and understanding of marketing
as process”. Simply, marketing research is the systematic design collection analysis and
reporting of data finding relevant to a specific marketing situation facing the company.
Carefully planning through all stages of the research is a necessity. Objectivity in research is
all-important. The heart of scientific method is the objective gathering of the information.
The function as marketing research within the company as to provide the information and
analytical necessary for effective.
Planning of the future marketing activity.
Control of the marketing operation in the present.
Evaluation of marketing results.
A research may undertake any of the three types of research investigation depending upon the
problem. These types of research included:
1. Basic research
2. Applied research
3. Designated Fact Gathering
16
APPLIED RESEARCH:
It is attempt to apply the various marketing technique, which have been developed as
research, first and later on they become applied research techniques. It is on attempt to apply
the basic principles and existing knowledge for the purpose of solving operational problems.
STEPS IN MARKETING RESEARCH:
Marketing research process can be out through following steps.
Define the problems and research objectives
Develops the research plan
Collect the information
Analysis and interpretation
Present the finding.
PRIMARY DATA:
It consists of information collected for the specific purpose, survey research was used and he
all the details of Ford and their competitors were contacted. Survey research is the
approached gathering description and information.
SECONDARY DATA COLLECTION:
The secondary data consists of information that already existing somewhere having been
collected for another purpose. Any researcher begins the research work by first going through
secondary data. Secondary data includes the information available with company. It may be
the findings of research previously done in the field. Secondary data can also be collected
from the magazines, news papers, internet other service conducted by researchers.
17
METHODS OF DATA COLLECTION:
The study includes in it the data collected through both primary and secondary sources.
Primary data is collected with the help of structured questionnaire and personal meeting.
Questionnaire is administered on the sample respondents. However there are certain cases
where personal interactive method is followed with customers to find the satisfaction level.
RESEARCH METHODOLOGY:
The respondents are the car owner of any company or intender of car and different banks
managers of different branches. The survey was carried in twin cities of Hyderabad and
Secundrabad with the sample size of 100. The survey was carried out with the help of a
structured questionnaire, which help in accomplishing the research objective. The
respondents by means of personal interview administer during the event shows this structured
questionnaire.
18
CHAPTER – 3
19
COMPANY OVERVIEW
COMPANY PROFILE
TYPE Public(NYSE:F)
Founded June,17,1903
Founder Henry Ford
Headquarters Dearborn, Michigan, USA
Area served Worldwide
Key people William Clay Ford, Jr. Executive ChairmanAlan Mually – President, CEO
Industry A automotive
Products Automotive goods and services
Revenue US$120.1 billion (2006)
Operating income US$-15.0 billion (2006)
Net income US$-12.6 billion (2006)
Employees 283,000 (2007)
Divisions Ford Credit, Ford division, Lincoln, Mercury, Premier
Automotive Group
Subsidiaries Automotive Components Holdings
Jaguar, Land Rover, Volvo (cars only)
Slogan Bold Moves, Have you driven a Ford lately?, Built Ford Tough,
Built for Life in Canada ,Feel the difference, Make Everyday
Exciting
20
Ford Motor Company is an American multinational corporation and the world's third
largest automaker based on worldwide vehicle sales. In 2006, Ford was the second-ranked
automaker in the US with a 17.5% market share, behind General Motors (24.6%) but ahead
of Toyota (15.4%) and DaimlerChrysler (14.4%). Ford was also the seventh-ranked
American-based company in the 2007 Fortune 500 list, based on global revenues of $160.1
billion. In 2006, Ford produced about 6.6 million automobiles, and employed about 280,000
employees at about 100 plants and facilities worldwide. In 2007, Ford had more quality
awards from J.D Power than any other automaker. 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 global brands, including Lincoln and Mercury of the US, Jaguar and
Land Rover of the UK, and Volvo of Sweden. Ford also owns a one-third controlling interest
in Mazda. Ford has been one of the world's ten largest corporations by revenue and in 1999
ranked as one of the world's most profitable corporations, and the number two automaker
worldwide. Ford introduced methods for large-scale manufacturing of cars and large-scale
management of an industrial workforce, especially elaborately engineered manufacturing
sequences typified by moving assembly lines. Henry Ford's combination of highly efficient
factories, highly paid workers, and low prices revolutionized manufacturing and came to be
known around the world as Fordism by 1914.
History
Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve
investors, most notably John Francis Dodge and Horace Elgin Dodge who would later found
the Dodge Brothers Motor Vehicle Company. During its early years, the company produced
just a few Model T's a day at its factory on Mack Avenue in Detroit, Michigan. Groups of
two or three men worked on each car from components made to order by other companies.
Henry Ford was 40 years old when he founded the Ford Motor Company, which would go
21
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.
CORPORATE GOVERNANCE:
Members of the board as of early 2007 are: Chief Sir John Bond, Richard Manoogian,
Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), and
Edsel
Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr., John L.
Thornton and William Clay Ford (Director Emeritus)
The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG)
and Ford of Europe), Mark Fields (Executive Vice President, President (The Americas),
Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice
President, President [International Operations]) and Michael E. Bannister (Group Vice
President; Chairman & CEO Ford Motor Credit). Paul Mascarenas (Vice President of
Engineering, the Americas Product Development)
FORD IN INDIA
Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which
produced the Escort out of M&M Nasik plant. After meeting initial success, sales of the
Escort was finally replaced by the Ikon in 1999. The Ikon marked a new beginning for Ford
in India. It rolled out of the Marajmalaingar plant near Chennai and by now, the company had
parted ways with M&M and was renamed Ford India Ltd in 1998. The Ikon was the first
22
model by a multinational to be developed specifically for India. Though it was based on the
Fiesta, it was a unique body style and was offered and was offered with an option of three
engines, including a diesel. The car was a big hit. The Ikon underwent several face-lifts and
price cuts to keep demand high. However, fresher competition and a reputation for high-
maintenance saw sales gradually decline. After the arrival of the modern and highly-capable
Fiesta, another made for- India car, with state-of-the-art engines, the Ikon has been
marginalized. The Fiesta has picked up where the Ikon left and is selling well. Though the
Ikon and Fiesta have been the mainstays of Ford’s production in India, the company has had
limited success with other models.
The Mondeo, launched in 2001, was a very talented car by was simply not suited to
Indian conditions and earned a reputation for being exorbitant to maintain. The Endeavour
SUV was launched in early 2004 and has sold well for its niche. The Endeavour has recently
been upgraded in 2007 and this has boosted the appeal of the big SUV. In 2004, Ford
launched the Fusion, which has received a lukewarm response though the recent diesel
variant has perked up sales.
The Ford Figo is Ford’s new subcompact automobile that went on sale on 10 March 2010 in
India. It is based on the Ford Global B platform, and is built only in Chennai, Tamil Nadu to
be sold worldwide. Four different Figo models – LXI, EXI, ZXI and TITANIUM, will be
available with different trim levels and designed to suit a variety of consumer tastes. All
models also will be available with a Duratorq diesel engine option.
23
Fortune Ford is an authorized dealer for Ford India Limited, who is one of the leading
manufacturers of top quality cars in India, with many variants in the offering. Fortune Ford is
a 50:50% Joint Venture set up between two well known and reputed families in Hyderabad,
the Modis and the Babu Khans.
Fortune Ford is a blend of experience and youth. The experience and good will that Mr.
Misbahuddin Babu Khan and Mr. Pramod Modi enjoy blend very well with the youth and
energy of the youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world
class Ford Dealership.
Fortune Ford markets and services the recently launched the popular “go fida” the “Ford
FIESTA” and “Ford FIGO” and the ever-popular Ford Ikon Flair, the No non-sense car Ford
Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at
Hyderabad. The sales outlet is located strategically at Somajiguda next to Eanadu. We have
two service centers, one at Chapel Road, Abids opposite Stanley College and other one at
Fathebagh, Santhnagar. These centrally located outlets provide convenient and easy access to
both the proud owners as well as prospective buyers. The workforce at Fortune Ford is
committed to excellence in serving all esteemed customers. The Sales Team is made up of
dedicated showroom and field executives who are professionally trained by Ford India Ltd.
They are adept at guiding the customer through the entire sales process right from assisting in
the choice of model, colour and features to lending a helping hand in providing attractive
buyback options and also arranging finance at competitive rates.
The Service Centre is armed with the state-of-the art equipment and is in-line with Ford's
exacting Global standards. The service team is technically qualified and trained to analyze
and provide solutions adhering to Quality Care, in order to satisfy even the most demanding
customers. The Fortune Ford dealership maintains a high standard of excellence in sales and
24
services by sending its personnel for training on a regular basis to Ford India Limited, to
update them with the latest technological advances in the automotive sphere.
SHOWROOM
We have 5000 staff centrally air conditioned showroom, located in the heart of the city in
Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes
convenient for almost every one residing in and around Hyderabad and Secunderabad.
The facilities offered from the showroom are:
1. Very easy finance facility with in-house finance team to cater to your every car finance
requirements. All the leading finance counters are available like ICICI, HDFC, KOTAK,
SUNDARAM, SBI, SBH, ANDHRA BANK, CORPORATION BANK, SOUTH INDIA
BANK, AXIS BANK, ORIENTED BANK OF COMMERCE,PNB etc.
2. Exchange offer for any of your used car. Free spot evaluation for any used car.
3. Professionally trained and courteous sales staff to take care of every relevant need of the
customers.
4. Ford preferred insurance for cashless transactions in the event of claims. Special offers on
Insurance renewals. You can also renew your insurance by just making call to our Service
marketing help line 9848885962. Showroom @ Somajiguda
5. Full range of Ford cars with all colors and models to choose from.
6. A good stock of Ford genuine accessories to make your Ford ownership more delightful
and safe.
7. A well maintained fleet of test drives cars to give you the feel and experience the drive
Dynamics on actual driving conditions before take the purchase decisions. You can call our
sales help line for test drive or fill the on-line test drive requisition form.
25
Significant milestones
The first Indian built Ford Escort rolled off the assembly line in 1996.
The Company was able to deliver Ford Escort in major cities simultaneously, in just a
month after booking.
The Special Value Pack program was launched in 1997, with commemorative
'Freedom', followed by the petrol and diesel driven 'Anniversary'. Recent SVPs have
included the Orion, Alpha and Sport - E.
Ford Escort won the J D Power Award in India Quality Survey in 1997.
Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in the
Customer Satisfaction Survey.
Quality Care, Ford's branded service initiative, provides car owners with superior
services at its dealership countrywide.
The new, integrated manufacturing plant was dedicated in March 1999, where FORD
IKON is manufactured.
Ford India launched Ford Assured on April 24 2000, a new initiative to buy and sell
used cars of all makes.
On September, 11, 2000. Ford India launched the Ford IKON SXi – the stylish ‘josh’
Machine
Ford India has started exporting Ford IKON
2001 Ford India launched the Ford Mondeo. 2002
Ford India show cases a wide spectrum of exciting cars at the Auto Expo
Ford India Limited announced a strategic partnership with Hindustan Motors Limited
Certified QS 9000: 1998, 3rd edition on March 21, 2002 Ford India received the QS
9000 award from TÜV Süddeutschland.
New Ikon Variant 1.6 EXi was launched 2003:
26
The New Ford Ikon NXT launched - The Next Level of Josh.
Adding Refinement to Josh- Ford India launches Ikon NXT ‘Finesse.’
Ford Celebrates Centennial in India.
Ford India launches Ikon NXT SXi.
Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study.
Ford launches Ikon Flair at Rs. 4.95 Lakhs.
2004: Autocar SUV of the Year – Winner Ford Endeavour.
In year 2007:
Ford Motor Company of Southern Africa achieves three wins and two seconds this
total economy run.
DOE award Ford two grants for vehicle fuel efficiency research.
Ford Mondeo is auto express car of the year.
Land rover discovery 3 scoops category win at TOWCAR AWARDS 2007
Ford Mondeo is the Caravan Club TOWCAR of the year 2008.
Department
2010: Ford launches “Ford FIGO” in 4 variants FIGO LXI, EXI, ZXI, Titanium in
both diesel and petrol version.
MANAGEMENT PROFILE:
ARVIND MATHEW – Managing Director and President
Arvind Mathew is the Managing Director and President of Ford India. He took this position
in August 2005.
LUCY MILLAR – Vice President, Finance & IT
Lucy is the Vice President of Finance and IT at Ford India. She took up this position in May
2005. She reports to Arvind Mathew, President and Managing Director, Ford India.
27
SCOTT McCormack – Vice President, Marketing, Sales & Service
Department of Management Studies [27] V. K. P. G Marketing Strategies of Ford Motors
Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He took
this position in July 2006. Scott reports to Arvind Mathew, President and Managing Director,
Ford India.
NANCY REISIG – Vice President, Human Resources
Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in
March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford
India.
SANDIP SANYAL – Vice President, Supply and Total Value Management
Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford
India. He took this position in September 2005. Sandip reports to Arvind Mathew, President
and Managing Director, Ford India.
STEVE BRIDGMAN – Country Manager, Ford Credit
28
PRODUCT PROFILE
Ford Fusion.
PRICE(lacs)
Engine:
Type 4 Cyl. In – Line, 16 – V DOHC
Construction All Aluminum Alloy
Fuel System SEFI
Displacement(cc) 1596
Compression ratio 9.75:1
Max. Power (ps/rpm) 101/6500
Max. Torque (nm/pm) 146/3400
Emission Stage Bharat Stage III
Kerb weight(kg) 1143
Transmission Manual 5 speed
Max speed(kmph) 174
Mileage 11.3
29
FORD ENDEAVOR:
PRICE(lacs) (4X2) 16.16
(4X4) 17.17
Engine :
Type 2.5 litre, 4 Cylinder in-line, Turbocharged &
inter-cooled diesel
Displacement (cc) 2499
Max. Power (PS/rpm) 116/3500
Max. Torque (kgm/rpm) 28.5/200
Ignition System compression
Valve System SOHC, 12 Valves
Fuel System indirect Injection Mechanical Pump
Emission Exhaust Gas Recirculation (EGR) Meeting
Bharat Stage III Norms
Kerb weight (kg) 1933/1958
Transmission Manual 5 speed
Max speed (Kmph) 142
mileage 8.2
30
FORD FIESTA:
Engine 1.4 EXI 1.6 ZXI 1.6 SXI 1.4 EXI
(TDCi)
1.4 ZXI
(TDCi)
1.4 SXI
(TDCi)
Price in (lacs) 6.76 7.28 8.28 8.00 8.52 9.91
Type 4 Cylinder in-Line, 16 Valve
DOHC
4 Cylinder in-Line, 8 Valve
SOHC
Construction All-aluminum Alloy
Fuel System SEFI High Pressure Common Rail
Displacement cc 1388 1596 1596 1399 1399 1399
Compression Ratio 9.75:1 9.75:1 9.75:1 18.1 18.1 18.1
Max.
Power
Output
ps/rpm 82/6000 101/6500 101/6500 68/4000 68/4000 68/4000
Max. Nm/rp 127/400 146/340 146/340 160/200 160/200 160/200
Torque m 0 0 0 0 0 0
Emmision
Compliance
Bharat Stage III
Transmission Type 5 Speed Manual
Kerb Weight (Kg)
Max Speed (Kmph) 170/178
Mileage
14.75/13.6
31
FORD IKON:
PRICE(lacs)
Engine:
Type 4 Cylinder, 8-V SOHC, Rocam Petrol
Fuel system SEFI
Displacement (cc) 1299
Max. Power (ps/rpm) 70/5500
Max. Torque (Nm/rpm) 105/2500
Transmission Type 5 Speed Manual
Kerb Weight (Kg) 978
Max Speed (Kmph) 148
Mileage 10.8
32
FORD MONDEO:
Price 6.59
Engine :
Engine type 2.0L 16V DOHC Petrol
Displacement 1999 cc
Max power 142.7 PS/6000 rpm
Max torque 185 Nm/4500 rpm
Compression ratio 10:8:1
Values 16V DOHC
Fuel injection Sequential electronic fuel injection (SEFI)
Emission level Bharat Stage III
Construction All Aluminium Alloy
Transmission type Ford MTX-75 manual 5-speed with
synchromesh
Kerb weight(kg)
Max speed (kmph) 200
Mileage 8.6
FORD FIGO:
Ford unveiled its new small car "Figo" in September, 2009 in New Delhi with Alan Roger
Mulally, Ford's president and chief executive, making a lightening visit to the country for the
unveiling. And now Figo has been launched and will compete with the likes of Maruti Ritz
Hyundai i10, Honda Jazz & Skoda Fabia, Maruti Swift VXI, Maruti Suzuki, Swift VDI
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(ABS), . The Ford Figo, a new nameplate and a fresh face on the Indian market. The Ford
Figo has been launch in 4 variants of both diesel and petrol model.
Key dimension
overall length mm 3795
Width mm 1680 without outside mirror
Height mm 1427
Wheel base mm 2489
Ground clearance mm 168
Fuel capacity (L) 45
Turning circle radius (M) 4.9
Boot space (L) 284
Engine Petrol Diesel
Displacement (cc) 1196 1399
Values /OHC 16V DOHC 8V SOHC
Fuel System SEFI Common Rail
Max power PS(KW)@RPM 71(52.4)@6.250 69(50.7)@4.000
Max Torque NM
(KGM)@RPM
102(10.4)@4.000 160(16.3)@2.000
Transmission 5 speed Manual Transmission
Wheel & Tyres
Wheel Size 175/65 R14
Type Radial , Tubeless
Suspension
Front Independent McPherson Strut with Dual path mouth
Rear Semi –Independent Twist Beam ,Coil Springs
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Brakes
Front Ventilated Disc
Rear Drum
Steering
Type Hydraulic Power Assisted
Kerb Weight LXI EXI ZXI Titanium
Petrol 1040 1060 1075 1090
Diesel 1090 1105 1115 1130
Ford Figo Petrol Titanium V\S Facing Competitions
Features Figo
Titanium
Hyundai
i10 sports
Maruti
Swift VXI
Maruti
Ritz VXI
Ex- Showroom 4.50 4.43 4.47 4.61
Front power windows
Intelligent central locking Not
intelligent
Not
intelligent
Not
intelligent
Body color outside mirrors & door
headles
Rear Wiper
Rear washer
Rear Defogger
Mp3 player +4 speakers + Axin port
Bluetooth connectivity
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Dual airbags
ABS + EBD
Programmable remote key
Driver seat height adjust
Electric Adjust Mirrors
Electric Boot Release
Distance to Empty
Anti drip Wipping
6 Speed intermittent wipers
Ford Figo Diesel Titanium V\S Facing Competition
Features Figo
Titanium
Maruti Suzuki
Swift VDI(ABS)
Maruti Suzuki
Ritz VDI(ABS)
Ex- Showroom 4.39 5.44 5.30
Front power windows
Intelligent central locking Not intelligent Not intelligent
Body color outside mirrors & door
headles
ABS + EBD
Rear washer
Rear Defogger
Mp3 player +4 speakers + Axin port
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Bluetooth connectivity
Dual airbags
Rear Wiper
Programmable remote key
Driver seat height adjust
Electric Adjust Mirrors
Electric Boot Release
Distance to Empty
Anti drip Wipping
MARKETING STRATEGIES OF FORD
Product differentiation based on operational efficiency:
FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its offer on the plank
of service. It has gone in for a new norm in customer service: “fix it right-the first time-on
time”. Ford is also supplying videotapes showing how repairs have to be done.
Adopting Offer to Suit Target Segment:
Ford modifies its models for India:
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.
➢ Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian roads.
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➢ Changes in cooling requirement, with greater airflow to the rear.
➢ Higher resistance to dust.
➢ Compatibility of engine with the quality of fuel available in India.
➢ Location of horn buttons on the steering vehicles. (As the India motorist uses the horn
more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and
not on a lever on the side as in the models sold in Europe.)
Strategic segmentation of cars:
The Ford in India has launched the car only for few segments of people. The segmentation of
car buyers based on price preferences is.
Family car segment: These cars form 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 4 lakh to 12 lakh. ‘FORD
FIESTA’, ‘FORD MONDEO’ and FORD FIGO come under this segment of cars.
SUV segment: The buyers of this segment like to have big vehicles. And these cars are also
useful for sport riding and even on hill areas. There body is designed similar to off-road
vehicles, which can withstand to Indian roads. ‘FORD ENDEAVOUR’ occupies this
segment.
STRATEGIC PROMOTION BY FORD
38
Ford follows the promotions at two levels, they a
1) Promotions of product directly by the manufacturer.
2) Promotions at dealer level.
In the first step the products of vehicles manufactured by the Ford Automotives are directly
promoted by the manufacturer by him. He follows many promotional strategies like
1. Advertising through television and newspaper.
2. Internet or interactive marketing.
3. Direct marketing.
In the second step the dealer of the vehicles promotes the vehicles. The various promotional
strategies followed by the Fortune Ford at dealer are
1. Advertising though news papers, radios, palm plates. In this all the features of the product
and its prices are given in detail to the customer.
2. In televisions the scrolling are given about the product and its features.
3. Promotion by conducting event shows on road side, bank campus, and market fair.
4. Hand to hand pamphlet distribution through demo about product in market side.
Hoardings:
A heavy picture of the product which comprises of its attributes and special features are
displayed on the roadsides in the form of hoardings. It is a bit expensive strategy but attracts
many people who pass by that roadside. This type of advertisement is prepared for those
segments of people who cannot afford their time in reading newspapers and watching
televisions. While travelling from their home to office, moving on their business activities
they may watch these hoardings. These hoarding are especially setup at the road signal stops.
Maintaining Data Bank:
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In this the dealer collects personal/bio-data (address and contact number) of many people
from various organizations and different sector who are ready to buy the vehicles and who
change the vehicles regularly. These people are met-in person or contacted through their
contact number. The various new features and new offers regarding the vehicles are
advocated to them and are given discounts on group purchase of vehicles, i.e. if 5 or more
friends in the group purchase the cars at a time then they are given special discounts on the
vehicles.
Free Insurance:
The Fortune Ford gives a special offer of free insurance on the purchase of each
Vehicle to its new customers
Relationship Marketing:
Fortune Ford pays a special attention towards its old customers. To retain the old and existing
customers it conducts a corporate meet at a luxurious hotel. The event aims at knowing the
problems of the customers regarding the vehicles and also service feedback. In this way it
maintains an effective relationship with the customers and gains the reputation and goodwill
in the minds of the customers.
Sales Promotion:
The sales promotion is done in the fortune ford at three levels:
1. Showroom sales: In this the customers walk in to the showrooms to know about the
details of the product. Specially trained sales executives who are present in the showrooms
give a detailed explanation about the product to the customers. Sales executives give a
detailed note on the products features, various offers given by the manufacturer and also by
the dealer to the customer and enhance the sales of the vehicles.
2. Corporate sales: A special team of sales executives are sent to some big corporate
40
sectors and there they personally meet the heads of the organizations like C.E.O’s, Managers
etc., and explain about the vehicles and the offers and special schemes provided by the dealer
to them on bulk purchase of the vehicles and try to promote the sales of the vehicles.
3. Field sales: The sales executives conduct some events with the corporate working people
and try to demonstrate the product features and its benefits and try to promote the product and
increase its sales.
CONDUCTING CUSTOMER DELIGHT PROGRAME:
This is a unique program conducted by the Fortune Ford. This is a program conducted to
retain the old customers of the Ford. The old customers of the Fortune Ford are meeting
personally and they are requested to give their feedback by filling in the questionnaire which
is specially prepared for them. In this questionnaire their problems regarding the vehicle and
also their post sale service experience are taken. If there exists any problem, then the Fortune
Ford service men try to resolve the problems of their customers as soon as possible and
makes the customer satisfied. This is a technique to attract the new customers by satisfying
the old customers and gaining goodwill in the market.
STRATEGIC SALES STANDARDS:
Fortune Ford maintains strategic sales standards in the following manner:-
The Sales faculty is clean, tidy and inviting, making customer’s comfortable while
purchasing products and availing services.
Customers are courteously acknowledged within two minutes of their arrival and are
advised that a Sales Consultant will be available upon request.
The Sales Consultant’s appearance and dress will be of the highest standards.
41
An advisory relationship is established between the customer and the Sales Consultant
who listens to the customer, identifies their needs and ensures that they are met.
A pleasant, non-pressured purchase experience will be provided during which a
thorough demonstration of the vehicle features and benefits will be made.
A test drive will be offered to all customers.
Using a check list, the Sales Consultant delivers the vehicle in perfect condition when
promised.
Customers will be contacted within one week after delivery to ensure total
satisfaction.
MAINTAINING SERVICE STANDARDS:
An efficient service facility allows a customer to avail all the service provided by
Fortune Ford, in a clean and welcoming environment.
An appointment is available within 5 working days of the customer’s request.
Customers are courteously acknowledged within two minutes of their arrival and the
write-up will begin with five minutes.
Service needs are courteously identified, accurately recorded on the repair order and
verified with the customer.
The vehicle is serviced right on the first visit.
The vehicle is ready on the agreed upon time.
A through explanation of work done, warranty coverage and charges is given to the
customer.
All service repair work will be followed up within five working days.
Each vehicle will be washed before being returned to the customer.
TOTAL MAINTENANCE PLAN
42
Cost of ownership is the key factor while considering vehicle purchases
As part of regular maintenance, customers spend on
a) Maintenance parts that are to be replace at specific intervals
b) Replacement of worn out parts
c) Labour charge for the above
A comprehensive maintenance plan by Ford will serve as a good tool to improve the
service experience and minimize concerns on cost of ownership of the vehicle
Total Maintenance Plan (TMP) is a complete service solution provided to the
customer. This enables the customer to have total peace of mind in the form of a
“Maintenance Holiday.
What does it cover?
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
What does it NOT cover?
Accident repair
Tyres
Fuel
Benefits to the customer
In case of total loss, can be cancelled
Ford factory backed programme.
Diagnosis/repairs as per recommended standards and practices
Vehicles serviced by Ford trained and certified technicians department
43
Total peace of mind
Increased residual value of the car
Only Ford genuine parts are used
Can avail this service across the country at all Ford authorized outlets
Transferable
INDUSTRY OVERVIEW
44
INTRODUCTION TO AUTOMOBILE INDUSTRY
One of the fastest growing industries in the world is automobile industry. This automobile
industry 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:
It’s fascinating drive through history, which begins as a story of isolation and missed
opportunities to one of huge potential and phenomenal growth. India’s 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 no improvements for decades. The
automotive industry stagnated under the government’s 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 industry’s 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 they
know, how to produce good cars.
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One of the most important chapters in the Indian automotive industry’s history was written by
Maruti. It marked the Indian government getting into the far business in the early 1980’s, 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 wasn’t 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 Maruthi 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
MNC’s 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.
India’s frugal engineering skill has now caught the world’s imagination, and an increasing
number of carmakers are preparing to setup major capacities here. India is changing and
changing fast. It’s moving forward. India’s largest-selling car is not its cheapest car, the 800.
It is the Alto. People’s 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. It’s 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:
46
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 afleet
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. The import/assembly of vehicles grew
consistently after the 1920s, crossing 30,000 units by 1930. It was during the end of the war
that the importance of establishing an indigenous automobile in India was realized. Premier
Motors, Hindustan Motors and Mahindra & Mahindra set up factories in the 1940s for
progressive manufacture rather than assembly from imported components. The cars they
chose to make were the latest in the world when they were introduced in India in the
formative years of the industry.
POST- INDEPENDENCE:
The government clamped down on imports and foreign investments. Companies like
GM and Ford packed their bags and left. India’s clock, thereafter, stood still while the world
raced on ahead. It would take nearly 50 years before the Indian auto industry could catch up
with the rest of the world again.
BROADBANDING ERA:
In January 1985, the government announced its famous ‘broad banding’ policy which gave
new licenses to brad groups of automotive products such as two and four-wheeled
vehicles. Through a liberal move, the licensing system was very much intact. A manufacturer
had to submit a phased-manufacturing programme to the Ministry of Industry specifying the
indigenization progress and allowing for almost complete indigenization within five to seven
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years. The biggest hurdle was the foreign-exchange clearance required for these projects.
Except for MUL, which had direct access to policy-makers, every other manufacturer still
faced a series of obstacles. Several new products were launched during this period. All three
traditional carmakers added new models to their ranges – Standard Motors returned to the car
business after 10 years, when in 1985 it introduced the Standard 2000, a Rover SD1 body
with the old two-litre Vanguard engine. HM bought in a 1972 Vauxhall Victor in 1985,
transplanted its ageing Ambassador engine into it and the Contessa was born.
THE BIRTH OF THE AMBASSADOR:
In 1957, a small tail fin was added on either side of the rear fenders, along with a new,
dimpled hood, and the car was re-christened the Ambassador Mark I. The car cost Rs.17,000.
In 1963, it underwent a frontal facelift with a closely checkered grille and was named the
Ambassador Mark II. It would be another 12 years before the Ambassador got a facelift. In
1975, another minor facelift to the same grille and a much bigger frontal facelift turned out as
the Mark III. The Mark IV, launched in 1979, was the last of the Mark cars. The Ambassador
Nova was launched in 1990, followed by Ambassador 1800 ISZ three years later. The Nova
was the last Ambassador powered by the 1489cc petrol engine. In 2004, HM launched the
cosmetically-revised Ambassador under the Avigo name. Designed by Mavendra Singh, the
retro look Avigo had classic touch internals like a centrally mounted console, beige-colored
seats and wood finish interiors.
THE CONTESSA YEARS:
.The Hindustan Contessa, launched in 1982, was one of the few luxury cars manufactured in
the country in the 1980s and 1990s. It was based on the 1970s vintage Vauxhall victor. While
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it was initially launched with the 1489cc engine found in the Ambassador, the Contessa was
soon given the Isuzu engines. There were three versions of this car - 1.8GLX (Isuzu petrol),
2.0DLX (Isuzu diesel) and the rare 2.0T (Isuzu diesel, turbo). The last Contessa rolled out in
2002, phased out by the demand for cheap Japanese cars. Some of the leading Indian auto
players in Indian automobile industry are:
➢ Premier,
➢ Tata
➢ Mahindra and Mahindra
➢ Maruthi
➢ Hindustan motors
PREMIER
The story of premier is the story of one man’s vision, Seth Walchand Hirachands. He not
only give India its first car factory but also the country’s first aircraft factory Hindustan
Aeronautics Limited and the country’s first modern ship yard, Hindustan Shipyard Limited
BUILDING INDIA’S FIRST AUTO FACTORY
Seth Walchand Hirachand has first started the trails to establish an Indian car manufacturing
plant in Indian for which he went to U.S.A. where three largest car manufacturing companies
are located. He wants Indian company to be completely independent, with Indian
management capital and employees, paying royalty or technology transfer payment to
western countries. After approaching General Motors they insisted on part ownership. Seth
Walchand then moved to second largest automaker Ford; Henry agreed, but delegated the
project to Ford of Canada, which refused. Finally the third largest automaker Chrysler agreed
and singed in an agreement in Bombay in 1940.
THE ARRIVAL OF FIAT:
49
In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the tariff
commission spelled out future for the auto industry – indigenize or get out. Companies like
Ford and GM, which had assembly operations in India, packed their bags and went home. But
fiat decided to stick it out and committed itself full-fledged manufacture of the Millicent in
1954. In sep 1964, PAL and FIAT launched the Fiat 1100 DELITE in India. The biggest
customers for PAL’s were Bombay’s taxi drivers. The Padminies were easy for maintenance
in terms of spares and labor cost, low on running cost, easy to drive and reasonably tough. It
was everything that a taxi driver wants.
TATA Motors:
Established in 1945, Telco or the Tata Engineering and Locomotive Company, as its full
name suggests, started out making steam locomotives for the Indian Railways. Telco’s tryst
with vehicle manufacture came in 1945 when it signed a 15-year agreement with Daimler-
Benz AG of Germany to manufacture commercial vehicle. The director in charge from the
Tata side was Sumant Moolgaonkar. This period was a shared birthing time for the Indian
commercial vehicle industry – Premier Automobiles in league with Chrysler, Hindustan
Motors with General Motors and Ashok Leyland with British Leyland – which all started
truck production around the same time. Telco’s biggest triumph came in 1985 in the LCV
segment. The Tata 407, a brand new product from bumper to tail-light, was designed and
marketed by Telco to take on the technically superior Japanese products. The 407
immediately captured 70 per cent of the market. The TATA SUMO, launched in 1994, turned
out to be the success story of the decade.
The Sumo was conceptually a brilliant vehicle. And it was also a product of the government’s
eccentric excise duty regulations at that time. 1998 was a landmark year for Tata – it
launched the Tata Safari. Unlike the Sierra, Estate and Sumo that were designed and
developed using rudimentary manual methods, the Safari was made with modern
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manufacturing and design processes to ensure new-found levels of quality and to take the
company a step closer to its ambition of becoming a global carmaker. Yet, the most important
landmark of 1998 was not the Safari. On 30 December 1998, Tata officially launched the
much-awaited Indica. 2001 also saw the company exit its joint venture with Daimler-Benz. In
2002, Tata launched the Indigo saloon, based on the Indica platform. On 29 July 2003,J R D
Tata’s birth anniversary, the company was renamed Tata Motors Limited. The Tata
juggernaut continued to roll across the Indian auto industry with the launch of the Indigo
Marina in 2004
MAHINDRA & MAHINDRA:
The story starts sometime in the 1940’s. Pandit Nehru has a dream of building a modern,
industrially advanced nation. And inspired by Nehru’s vision are two brothers, Kailash
Chandra Mahindra and Jagadish Chandra Mahindra. K.C.Mahindra during his tenure in the
United States had met Berney Roos. Roos was the inventor of rugged ‘General Purpose’
vehicle or the Jeep. The Jeep had earned reputation in the battle fields of World War II. On
October 2nd 1945, the Mahindra brothers joined hands with Ghulam Mohammed to set up a
company to assemble American Willys Jeeps in India. The collaboration between M&M and
its original partner Kaiser Jeep Corporation and later American Motor Corporation is for the
phased manufacture of CJ3B Jeep. The company is named Mahindra and Mohammed, but
after Independence Ghulam Mohammed migrates to Pakistan. With his departure Mahindra
& Mohammed is renamed by Mahindra & Mahindra in 13thJanuary 1948. The first vehicles
are assembled in Mazaogaon in Bombay. The first M&M built Willy Overland Jeep rolled
out of the Mazaogaon plant on 3 June 1949. Five years later, in 1954, the first completely
indigenous Jeep rolled out of the factory floor. At one point 70 per cent of the sales were
assured by army and government.
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Vehicle model Year of launching
Mahindra MM 540 1985
Commander 1991
Mahindra Armada 1993
Voyager van 1996
Escort (M&M-ford) 1996
Bolero 1996
Scorpio 2002
Scorpio launched in 2002, a completely indigenous product that took Mahindra & Mahindra
6 long years to design and develop. The Scorpio has played a critical role in changing the
perception and brand image of the country. The 2.6 litre turbo-diesel engine developed
109bhp. The Scorpio has been the vehicle of M&M’s change, from a utility vehicle-maker to
a lifestyle SUV manufacturer
MARUTHI:
It began with the promise of being the ‘People’s Car’. The car never went into production and
the company went belly-up in 1977. Six years later, it rose like a phoenix from the ashes and
changed the Indian automotive sector forever for the company Maruthi Udyog Ltd. The story
of Maruthi dates back to the 1970’s. Indira Gandhi was the prime minister of India. Her son,
Sanjay Gandhi, envisioned the manufactured of an indigenous cost-effective, low-
maintenance compact car for the Indian middle-class. The Cabinet passed a unanimous
resolution for the development and production of a ‘People’s Car’. The name of the car was
chosen as ‘Maruti’.
THE CAR THAT CHANGED INDIA
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The Maruthi 800 was essentially a Suzuki SS80, which was called the Fronte in Japanand
Altoin most of the other markets. The 796cc, in-line, three-cylinder power plant produced
39.5bhp at 5500rpm. Maruthi marked the beginning of a revolution in the Indian automobile
industry. The Maruthi 800, with its compact size, nimble handling and perky engine, offered
the Indian motorist a cheaper, friendlier alternative. On 14thDecember 1983, Harpal Singh
became Maruthi’s first customer as he received the keys of his Maruthi 800 car from Prime
Minister Indira Gandhi. The car cost Rs.48, 000. The new Maruthi, launched in June 1986,
cost approximately Rs 15,000 more than the outgoing model.
THE NEW MARUTHI:
In 2005, Maruthi launched the Swift, for the first time in its 20-year history. The Swift
signaled the importance of the Indian market in the world. A team of engineers from Maruthi
worked on the design of the Swift in Hamamatsu, Suzuki’s headquarters in Japan.
Model Year of launching Model
Maruthi 800 1983
Maruthi Omni 1984
Maruthi Gypsy 1985
Maruthi 1000 1990
Maruthi Zen 1993
Maruthi Esteem 1994
Maruthi Baleno 1999
Maruthi Wagon R 1999
Maruthi Alto 2000
Maruthi Versa 2001
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Maruthi Swift 2005
Maruthi Zen Estilo 2006
Maruthi SX4 2007
Maruthi Suzuki Grand Vitara 2007
The other cars which have their share in the Indian Auto Mobile industry are:
The Indian auto industry has exploded in the last 14 years. And car makers are learning some
very hard truths. While the economic reforms process was kicked of in 1991, it was only in
1993 that the automobile industry was finally relicensed and the restrictions were removed.
Between 1993 and 95, government regulations limited a foreign company’s stake to a
maximum of 51 percent of the equity. Hence the only method of entry for an MNC then was
through a joint venture with a local partner. The most preferred partner was an existing
automaker. In 1994-95 saw the announcement of quite a few JV’s.
➢ Premier and Peugeot to form PAL-Peugeot.
➢ GM and CK Birla to form GM India.
➢ Mercedes Benz and Tata Motors.
➢ M&M and Ford to form Mahindra-Ford India.
In 1995, the government announced its decision to allow foreign auto companies to enter
with a 100% stake or wholly-owned subsidiaries. This changed the dynamics of joint
ventures in India. The other automobile industries which play a crucial role in the Indian
automobile industry are:
➢ General Motors India
➢ Mercedes-Benz
➢ Hyundai Motors
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➢ Honda SIEL
➢ Toyota
➢ Skoda India
Volkswagen
Deboo motors
LITERATURE REVIEW
Marketing strategy and analysis:
A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. Any organization that wants to exchange its products or services in the market
55
place successfully should have a Strategic Marketing plan to guide the allocation of its
resources. A strategic marketing plan usually evolves from an organization’s overall
corporate strategy and serves as a guide for specific marketing programs and policies.
Marketing strategy is based on a situation analysis- a detailed assessment of the current
marketing conditions facing the company, its product lines, or its individual brands. From this
situation analysis, affirm develops an understanding of the market and the various
opportunities it offers, the competition and the market segments or target markets the
company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed
specifically for attaining the marketing objectives of the firm/business unit. The marketing
objectives indicate what the firm wants to achieve; the marketing strategy provides the design
for achieving them. For example, if the marketing objectives of a business unit stipulate that
next year, it should achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent
of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale
and profit will come, which product lines/products/brands will accomplish this task and how.
Marketing strategy forms an integral part of marketing planning. Marketing strategy is most
effective when it is an integral component of corporate strategy, defining how the
organization will successfully engage customers, prospects, and competitors in the market
arena. It is partially derived from broader corporate strategies, corporate missions, and
corporate goals. As the customer constitutes the source of a company's revenue, marketing
strategy is closely linked with sales. A key component of marketing strategy is often to keep
marketing in line with a company's overarching mission statement.
MARKETING AND PROMOTIONS PROCESS MODEL:
Development of marketing program requires an in-depth analysis of the market. This analysis
may make extensive use of market research as an input into the planning process. This input,
in turn, provides the basis for the development of marketing strategies in regard to product,
56
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.
FORMULATING THE MARKETING STRATEGY
Basically, formulation of marketing strategy consists of three main tasks:
1. Selecting the target market,
2. Positioning the offer,
3. Assembling the marketing mix.
This implies that the essence of the marketing strategy of a firm for a given product or brand
can be grasped from the target market chosen, the way it is positioned and how the marketing
mix is organized. The target market shows to whom the unit intends to sell the products;
positioning and marketing mix together show how and using what uniqueness or distinction,
the unit intends to sell. The three together constitute the marketing strategy platform of the
given product
SELECTING THE TARGET MARKET
To say that target market selection is a part of marketing strategy development is just stating
the obvious. It does not fully bring out the import of the inseparable linkage between the two.
When the selection of the target market is over, an important part of the marketing strategy of
the product is determined, defined and expressed. Marketing targeting simply means
choosing one’s target market. It needs to be clarified at the outset that market targeting is not
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synonymous with market segmentation. Segmentation is actually tee prelude to target market
selection. One has to carry out several tasks besides segmentation before choosing the target
market. Through segmentation, a firm divides the market into many segments. But all these
segments need not form its target market. Target market signifies only those segments that it
wants to adopt as its market. A selection is thus involved in it. Marketing segmentation is a
process that throws up not one but several market segments. There may be segments that are
sizeable and the ones that are not so sizeable. There may be segments assuring immediate
profits and the ones that call for heavy investments in market development. There may also
be segments that show great potential, but display tough barriers to entry. As such, the
question, which segment/segments, the firm should select as its target market, assumes
crucial importance.
STRATEGIC MARKET SEGMENTATION:
Market Segmentation is “dividing up a market into distinct groups that first have Common
needs and second will respond similarly to a marketing action”, which was said by Eric
N.Berkowitz, Roger A.Kerin, and William Redulius.
The Segmentation process involves five distinct steps:
➢ Finding the ways to group consumers according to their needs.
➢ Finding the ways to group the marketing actions – usually the products offered – available
to the organization.
➢ Developing a market-product grid to relate the market segments to the firm’s products or
actions.
➢ selecting the target segments toward which the firm directs its marketing actions.
➢ Taking marketing actions to reach target segments. Markets can be segmented using
several relevant bases. For example, demographic Characteristics of consumers, such as age,
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sex, income/purchasing capacity, education level etc, form one base for segmentation.
Geographic characteristics constitute another; and buying behavior of the consumer’s forms
yet another base.
The various types of segmentations are
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Buyer behavior
Benefits segmentation
Volume of purchase segmentation
POSITIONING:
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 Ogilvy’s words: “The results of your campaign depends
less on how we write your advertising than on how your product is positioned”.
DEFITIONS OF PRODUCT POSITIONING:
Sengupta, in his book Brand Positioning says, “ The aim of product positioning is to create
a perception for our brand in the prospect’s mind so that it stands apart from competing
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brands… we must cover that space in the consumer’s mind as if we had won a long-term
lease. We must find a strong position in that mind and sit on it….”
Micheal Rothschild, in his book Marketing Communications – from Fundamentals to
Strategies says, “Positioning refers to the place a brand occupies in the mind in relation to a
given product class. This place was originally a product-related concept “concerning market
structure”. The concept now refers to the place that the brand holds in the consumer’s mind
related to perceptions and preferences”.
Developing a Positioning Strategy:
To create a position for a product or service, Trout and Ries suggest that managers ask
themselves six basic questions.
1. What position, if any, do we already have in the prospect’s mind?
2. What position do we want to own?
3. What companies must be outgunned if we are to establish that position?
4. Do we have enough marketing money to occupy and hold the position?
5. Do we have the guts to stick with one consistent positioning strategy?
6. Does our creative approach match our positioning strategy?
PRODUCT POSITIONING AND BRAND POSITIONING:
It is essential to understand the relationship between products positioning and brand
positioning. Though in discussions, the two terms are synonymously and interchangeable
used, technically they are different. Product positioning denotes the specific product
category/product classing which the given product is opting to compete. And brand
positioning denotes the positioning of the brand viz-a viz the competing brands in the chosen
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product category. It is evident that for any product, before entering the market it has to
sequentially carry out the two exercises, product positioning and brand positioning. In the
first step, the product category where the new entrant should enter and compete, i.e. against
what all products it has to compete, has to be decided. In this step, it is the broad function that
the product is trying to serve that matters. This choice of product category will decide the
nature of the competition the product is going to face. Once product category positioning is
decided, the position for the new entrant against competing brands in the chosen product
category has to be analyzed and fixed.
ISSUES IN PRODUCT POSITIONING:
Where is the new offer going to compete? As what?
Which product function/customer need is it trying to meet?
What other product categories serve this need? In other words, what are the substitute
products that serve the same need?
Where is the real gap, where is such a new offer most welcome and wanted by the
market?
What are company’s competencies to fight here?
ISSUES IN BRAND POSITIONING:
In deciding the Brand positioning, the issues are:
Which are the competing brands in the chosen product category?
What are the unique claims/strengths of the various brands?
What position do they enjoy in consumer’s evaluation and perception?
What is the most favored position…? And yet vacant?
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Can the new brand claim the needed distinction and take the position and satisfy the
need?
The major dimension of marketing strategy relates to positioning of the offer. The
firm has already selected the target market and decided its basic offer. Now, what is
the conjunction between these two entities? How do they get connected? What is the
interface? In other words.
What is the locus the firm seeks among the customers in the chosen target market
with its offering?
How would the firm want the consumer to view and receive the offer?
These are the issues the firm has to grapple with in positioning. And, while
formulating the marketing mix too, the firm will agitate over these issues. The
Product
Differentiation and Positioning discusses the multifarious issues involved in the
subject.
PRODUCT REPOSITIONING:
Products do undergo ‘repositioning’ as they go along their life cycle. In some cases, even
products that are faring well are repositioned. This is done mainly to enlarge the reach of the
product offer and to increase the sale of the product by appealing to a wider target market.
The product is provided with some new features or it is associated with some new target
segments.
PROMOTIONAL DECISIONS:
Promotion has been defined as the coordination of all seller initiated efforts to set up channels
of information and persuasion in order to sell goods and services or promote an idea and
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products. While implicit communication occurs through the various elements of the
marketing mix, most of an organization’s communications with the market the basic tools
used to accomplish an organization’s communication objectives are often referred to as the
promotional mix.
THE PROMOTIONAL MIX
Advertising
Direct marketing
Interactive marketing
Sales promotion
Publicity/ public Relations
Personal selling
Advertising
Advertising is defined as any paid form of non personal communication about an
organization, product, service, or idea by an identified sponsor. The paid aspect of this
definition reflects the fact that the space or time for an advertising message generally must be
bought. An occasional exception to this is the public service announcement, whose
advertising space or time is donated by the media. Advertising is the best-known and most
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widely discussed form of promotion, probably because of its pervasiveness. It is also very
important promotional tool, particularly for companies, whose products and services are
targeted at mass consumer markets. It is a very cost-effective method for communicating with
large audiences. It can be used to create brand images and symbolic appeals for a company or
brand
Direct Marketing
One of the fastest-growing sectors of the U.S. economy is direct marketing, in which
organizations communicate directly with target customers to generate a response and a
transaction. It has become such an integral part of the IMC program of many organizations
and often involves separate objectives, budgets, and strategies; we view direct marketing as a
component of the promotional mix. Direct Marketing is much more than direct mail and mail
order catalogs. It involves a variety of activities, including database management, direct
selling, telemarketing and direct response ads through direct mail, the Internet, and various
broadcast and print media. One of the major tools of direct marketing is direct response
advertising, whereby a product is promoted through an ad that encourages the consumer to
purchase directly from the manufacturer.
Interactive/Internet Marketing:
Interactive media allow for the back-and-forth flow of information whereby users can
participate in and modify the form and content of the information they receive in real time.
Unlike traditional forms of marketing communications such as advertising, which are one-
way in nature, the new media allow users to perform a variety of functions such as receive
and alter information and images, make inquiries, respond to questions and of course make
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purchases. In addition to the Internet, other forms of interactive media include CDROMs,
Kiosks, and interactive television.
Sales 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 point-
of-purchase materials. Trade-oriented sales promotions are targeted towards marketing
intermediaries such as wholesalers, distributors and retailers.
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.
Personal Selling:
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It is a form of person-to-person communication in which a seller attempts to assist and
persuade prospective buyers to purchase the company’s product or service or to act on an
idea. Unlike advertising, personal selling involves direct contact between buyer and seller,
either face-to-face or through some form of telecommunications such as telephone sales.
Personal selling involves more immediate and precise feedback because the impact of the
sales presentation can generally be assessed from the customer’s reactions
ASSEMBLING THE MARKETING MIX:
Assembling the marketing mix means assembling the four Ps of marketing in the best
possible combination. Involved in this process are the choice of the appropriate marketing
activities and the allocation of the appropriate marketing effort/resources to each one of them.
The firm has to find out how it can generate the targeted sales and profit. It considers
different marketing mixes with varying levels of expenditure on each marketing activity and
tries to figure out the effectiveness of different combinations in terms of the possible sales
and profits. It then chooses the combination/mix of products, price, place and promotion that
is best according to its judgment. Since marketing is essentially an interaction between the
marketing mix and environmental variable, and since the latter and non-controllable,
marketing becomes synonymous with assembling and managing the marketing mix. Of
course, while assembling the marketing mix, the marketing manager will take due note of the
environmental variables Not only will he take due not of them; he will ensure that his
marketing mix suits the environmental variables. And, its factor that renders the task much
more complex.
MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND DELIVERING
CONSUMER VALUE
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The four elements mentioned above- product, distribution, promotion and pricing constitute
the marketing mix of the firm. The marketing mix is the sole vehicle for creating and
delivering customer value. It can be easily seen that all activities and programmes, which a
marketer designs and caries out in his effort at winning customers, relate to one or the other
of the above four elements- product, place, promotion and pricing. It can also be seen that in
each of these elements, there are several sub-elements. For example, packaging is one of the
sub-elements of product and warehousing is one of the sub-elements of distribution.
The Four Ps of Marketing:
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 first described
the marketing mix in terms of the four Ps. He classified the marketing mix variables under
four heads, each beginning with the alphabet “P”.
The Four Ps
Product
Place
Price
Promotion
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McCarthy has provided an easy-to-remember description of the marketing mix Variables.
Over the years, the terms – Marketing mix and Four Ps of marketing have come to be used
synonymously. Assembling and managing the marketing mix is the crux of the marketing
task. And, it is through the marketing mix that the marketing manager achieves the marketing
objectives.
MARKETING STRATEGIES FALL UNDER TWO CATEGORIES
We have seen that target market selection, positioning and marketing mix formulation
together constitute marketing strategy. We have also seen that a firm can assemble the
marketing mix elements in many different ways, depending on the relative weight age it
assigns to the different elements. The scope to carve out different combinations is, in fact
immense. As a result, business firms are able to employ an abundance of strategies and
strategy stances in their relentless race to stay ahead of competition. However, a close
scrutiny will reveal that all these strategies can be fitted into two broad categories
1. Price oriented marketing strategy.
2. Differentiation oriented marketing strategy.
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
PRICE ORIENTED MARKETING STRATEGY:
Firms taking to the price route in marketing strategy compete on the strength of pricing. They
use price as their competitive lever. They juggle the price of their product to suit the
prevailing competitive reality. They can afford to offer lower prices and still make the
targeted profits. They elbow out competition with the cushion they enjoy in the matter of
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pricing. Price route requires cost leadership; evidently, a firm opting for the price route will
have to have a substantial cost advantage in their operations. It should be enjoying an overall
cost leadership in the given industry and its lower cost should enable it to secure above
average returns inspire of strong competition. The cost advantage can emanate from different
factors like, scale economies, early entry, and a large market share built over a period of time,
vocational advantage, or synergy among the different businesses. The firms whole strategy,
in fact will revolve around building such cost advantage. To successfully practice a price-led
strategy, a firm should have consciously taken to the idea sufficiently early in its evolutionary
process and prepared itself for adopting such a strategy.
DIFFERENTIATION ORIENTED MARKETING STRATEGY:
The differentiation route of strategy revolves around aspects other than price. It works on the
principle that a firm can make its offer distinctive from all competing offers and win through
the distinctiveness. And, a firm adopting such route can price its product on the perceived
value of the attributes of the offer and not necessarily on competition-parity basis. Maximum
scope for exploiting differentiation remains with the product. While all the 4Ps of marketing
are important elements from the point of view of strategy, the other Ps normally go as
elaborations of the offer, while the product forms its core. Product differentiation is of vital
importance in product management and has great potential in forgoing successful marketing
strategies.
The product can be differentiated along two major planks:
1. Tangible product attributes and functions,
2. Intangible characteristics and emotional associations.
The tangible product attributes and functions are
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Differentiation based on ingredients,
Differentiation based on functional value,
Differentiation based on additional features,
Packaging contributing to differentiation,
Differentiation based on Quality, Operational Efficiency, Technology, Service
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CHAPTER – 4
ANALYSIS AND INTERPRETATION
1. Which of the following Ford car you own?
(a) Fiesta (b) Ikon (c) Endeavour (d) Fusion
Name of the car % of the customer
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Fiesta 30
Ikon 25
Endeavour 15
Fusion 10
Figo 20
Total 100%
Table. No.1
Fig. no.1
Interpretation: This question is meant for taking the information regarding the most
preferred car in the Ford cars. From the above graph it is found that most preferred vehicle of
Ford cars is Fiesta.
2. What do you like most about your Ford car?
(A). Style/design (B). Comfort (C). Ford brand (D). Service
Customers preference No. of customers
Style / design 18
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Comfort 46
Ford brand 26
Service 10
Total 100
Table. No.2
Fig.no.2
Interpretation- This question is meant to know the customers preferences and likes towards
the cars. From the data we can position our product to the comfort seeking group of people.
3. To other cars, what do you feel great about your car when compared in the market?
(A) Fuel efficiency (B) Durability(C) Low maintenance (D) Sound quality (E) Brand name
Customer perspective No. of customers
Fuel efficiency 4
73
Low maintenance 18
Sound quality 24
Brand name 40
Durability 14
Total 100
Table No.3
Fig.3
Interpretation: From this question we can position the cars according to the customer’s
perspectives. Many of the Ford customers are buying the cars by seeing its Brand Name only.
The no. of customers satisfied with the fuel efficiency is very low.
4. How did you come to know about this car before purchasing?
(A) From friends, relatives (buzz) (B) Advertisements(C) Car experts (d) Sale’s people’s visit
(E) Auto magazines
74
Sources of awareness No of customers
Friends , relatives 18
Advertisement 50
Car experts 6
Sales people visit 18
Auto magazines 10
Total 100
Table No.4
Fig.no.4
Most of the Ford customers came to know about their vehicle through Advertisements only.
The major media that attracted the customers is television.
5. How do you rate the promotion of FIGO by Fortune Ford?
(A) Excellent (B) Very good (C) Good (D) Average (E) Poor
75
Rating No. of customers
Excellent 10
Very good 28
Good 52
Average 10
Poor 0
Total 100
Table no.5
Fig.no.5
It has been observe From the table and graph above it can be seen that, 10% of
respondents felt that the promotion was Excellent, 28% of respondents felt that the
promotion was Very good, 52% of respondents felt that the promotion was good, 12%
of respondents felt that the promotion was Average, and 8% of respondents felt that
the promotion was poor. It is clear that promotion of the Figo by Fortune Ford was
good.
6. Where do you get your car serviced regularly?
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(A) At authorized service centre (B) At a local workshop near my home
Place of service No. of customers
At authorized center 82
At a local workshop near my house 18
Total 100
Table. No.6
Fig.no.6
Most of the Fortune Ford customers are interested to service their vehicles only at the
authorized dealers. From this we come to know what the importance of authorized service
centers for car is.
7. Which bank do you prefer in getting financial help while purchasing a Car?
77
(A) ICICI (B) HDFC (C) SBI (D) Others
Name of the bank No. of customers
ICICI 21
HDFC 6
SBI 20
OTHERS 3
Total 100%
Table. No.7
Fig.no.7
Most of the customers prefer ICICI and SBI banks for taking financial help while purchasing
a car. Customers are asking for min interest on financial help provided by the banks.
8. Which type of finance do you prefer?
(A) In house finance (B) Out house finance (C) No difference between the two
Type of finance No. of customers
78
In house finance 60
Out house finance 24
No difference between the two 16
Total 100
Table No.8
Fig No. 8
Interpretation: It has been observe that most of the customers prefer house finance help
while purchasing a car.
9. To which media do you get expose regularly?
(A) Televisions (B) Magazines (C) News papers (D) F.M/Radio
79
Media No. of customers
Televisions 52
Magazines 14
News paper 32
FM/ Radio 2
Total 100
Table No.9
Fig. no. 9
From this analysis we come to know that most of the customers are interested in watching
televisions, which is a good media for communicating with people and delivering our
intentions about product.
10. Which kind of T.V. channels do you watch regularly?
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(A) National news channels (B) Regional news channels (C) Sports channels
(D) Entertainment channels
T.V. Channels No. of customers
National news channel 20
Sport channels 8
Entertainment channel 40
Regional news channel 32
Total 100%
Table. No.10
Fig. no. 10
This question is meant to know the interests and preferences of customers towards T.V.
channels. More than quarter of the sample size showed interest only on the entertainment
channels and next preference goes to the regional news channels.
11. What’s your opinion on the price list of Ford cars?
(A) Affordable by common man (B) Affordable only by rich man (C) Can’t say
81
Customer opinion on pricelist of ford car No. of customers
Affordable by common man 30
Affordable by only rich man 60
Can’t say 10
Total 100
Table. No.11
Fig. No. 11
More than 80% of customers think that Ford cars are affordable only by rich men. These cars
are too expensive for an economic/common man of the society.
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
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(D) Finance availability with 0% interest
Offers No. of customers
Free insurance 18
Special discount on sale of cars 6
Extending the service period 54
Finance availability with 0% interest 22
Total 100
Table No.12
Fig. No. 12
The chart shows that the most of customers likely expected to the dealer to extend the service
period.
13. What more do you expect from your dealer?
(A) Information about new cars (B) Information about service and mileage
83
(C) Assistance regarding loans and insurance (D) Understanding customer needs
Expectations of customer No. of customers
Information about service and mileage 68
Assistance regarding loans and insurance 8
Understanding customer needs 20
Information about new car 4
Total 100
Table. No.13
Fig. No. 13
Most of the customers are expecting the information about service and mileage regarding the
cars from the dealer. From the above analysis we come to know about the customer’s
expectations and their post purchase service demands from the dealer.
14. How do you feel when an unknown sales person approaches you by knowing your
full details to demonstrate about any product?
(A) I will not respond (B) Lost my privacy (C) Interested in knowing (if I feel a need of it)
84
Customer opinion No. of customers
I will not respond 22
Lost my privacy 10
Interest in knowing, If I feel a need of it 64
Total 100
Table no.14
Fig No. 14
This question is prepared indirectly to know about the customer’s opinion about the Data
Bank maintenance by the Fortune Ford. In reply majority of the customers gave a positive
reply by showing interest in knowing about the cars when a sales person gives a detailed
description about the cars.
15. Have you come across any promotional event conducted by Fortune Ford during
last one month?
(A) YES (B) No
85
Customer opinion No. of customers
Yes 61
No 49
Total 100
Table No.15
Fig. No. 15
From the table and graph above it can be seen that 61% of respondent’s come across
promotion of Fortune Ford and 49% do not come across promotion of Fortune Ford. As the
Fortune Ford promoted and conducted events for Figo.
16. Would you recommend Ford “go fida” to your friends and relatives?
(A) Recommended (B) Not recommended
86
Recommend Not recommend Total
respondents 62 38 100
Table no.16
Fig no. 16
From the table and graph above it can be seen that 62% of respondents recommend Figo to
your friends and relatives and 38 % of respondents don’t recommend Figo to your friends and
relatives. Most of the respondents would recommend Figo to the friends and relatives.
17. Whom do you suggest as a right person for promoting a car?
(A) Sports person (B) Film stars (C) Car expert (D) Any celebrity
Customer suggestion No. of customers
87
Sports persons 36
Film star 42
Car expert 14
Any celebrity 8
Total 100
Table No.17
Fig. No. 17
Most of the customers of Ford suggest a film star as the best ambassador. Because many of
them get attracted only to their favorite film stars other than other brand ambassadors
18. What other brands did you seriously consider before making this car purchase?
(A) Hyundai (B) Chevrolet (C) Maruthi (D) TATA (E) Toyota
88
Brand name No. of customers
Hyundai 33
Skoda 15
Maruti 24
Honda 18
Toyota 10
Total 100
Table No.18
Fig.no.18
Most of the Ford customers are opting for Hyundai when they are asked to consider a brand
other than Ford. Skoda occupies the second place in their preference.
19. As per you which vehicle comes close to Figo.
89
(A) Maruti Swift (B) Hyundai i10 (C) Chevrolet Spark (D) Tata Indica (E) others
Rating No. of a customers
Maruti Swift 37
Hyundai i10 30
Chevrolet Spark 16
Tata indica 7
others 10
Total 100
Table No.19
Fig No. 19
From the above chart it can be observe that, 37% of respondents feel that the Vehicle that
comes close to Figo is Maruthi Swift, 30% of respondents feel that the Vehicle that comes
close to Figo is Hyundai i10, 22% of respondents feel that the Vehicle that comes close to
Figo with Chevrolet Spark, 7% of respondents felt that the Vehicle that comes close to Figo
is Tata Indica, and 10% of respondents feel that various other Vehicles comes close to Figo .
Most of the customers feel that Maruthi Swift comes close to the Figo.
20. For which automobile company you finance more loans in a month.
90
(A) Hyundai (B) Honda (C) Maruti Suzuki (D) Mahindra& Mahindra (E) Ford
Automobile company No. of sanction loans
Hyundai 16
Honda 15
Maruti Suzuki 28
Mahindra & Mahindra 19
Ford 17
Total 100
Table. No.20
Fig. no. 20:
It has been observe the banks are sanctioning loan in a month 15% for Hyundai motor, 15%
for Honda motor, 30% for Maruti Suzuki and 20% Mahindra & Mahindra and 15 for Ford
motor .
21. Sir, Are you (to bank manager) interested if I conduct a event show of “go fida”
“ford FIGO” and “ford FIESTA” in your branch compound?
91
Yes No Total
Respondents 100 0 100
Table No. 20
Fig. no 21
The above chart shows the popularity of Ford “go fida”, that all bank
managers want to conduct a event show of “go fida” in their branch
compound.
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CHAPTER – 5
FINDINGS
93
Brand awareness has got a great range of influence on buying behavior. Now-a-days
people are Brand conscious. Products or Services having a good Brand image has got
a great range of influence on buying behavior.
Promoting a product and creating awareness through conducting event show in
different areas of a pre plane with bank manager and meeting with customer
personally has an influence on the people rather than non-personal channels.
The brand image of FORD is Excellent. Everyone is aware of Ford as it is the fourth
largest automobile company. Ford. In Hyderabad most of the people are think that
Ford vehicles are for urbane people.
In hatchback cars millage plays a major role on buying behavior. People who are
choosing hatch back car segment are mostly from employees and middle class. They
cannot effort more.
Maintenance of Ford vehicles is more. Ford is positioned in the minds of people as
high maintenance that is the one of the reason why Ford is not a big success in the
Indian market
The products “go fida” the “ford FIESTA” and “ford FIGO” many features when
compared to any car in hatchback segment. No car in the hatchback segment is
competitor for Figo and Fiesta. Figo is having a number of features like dual air bags,
ABS with EBD etc.
Major competitor of Ford Figo is Maruthi Swift. Everyone in the market is comparing
the ford to Maruthi swift as Maruthi is the leader for the hatchback segment. Its
product Swift is a success model.
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Customer’s perspectives, Many of the Ford customers are buying the cars by seeing
its brand name only. The no. of customers satisfied with the fuel efficiency is very
low.
Most of the Ford customers came to know about their vehicle through Advertisements
only. The major media that attracted the customers is television.
Most of the customers prefer ICICI and SBI banks for taking financial help while
purchasing a car. Customers are asking for min interest on financial help provided by
the banks.
Most of the people want to see entertainment channels and next preference goes to
the regional news channels.
The popularity shows that most of the customers would recommend Ford Figo to the
friends and relatives.
It has been observe that Hyundai i1o comes close to Ford Figo.
It has been observe the banks are sanctioning loan in a month 15% for Hyundai
motor, 15% for Honda motor, 30% for Maruti Suzuki and 20% Mahindra &
Mahindra and 15 for Ford motor .
Peoples are very aggressive and enthusiastic to meet with brand promoter during
event show.
RECOMMENDATION
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Fortune ford should poster of the “go fida “ the Ford Figo and ford Fiesta and put it in
all bank branches, because now many customer are firstly approaching for car loan in
bank and they make their decision there for good car.
Fortune Ford has to concentrate on new strategies for the promotion of Ford Figo. As
it is a newly launched model of the Ford it is the time to capture market of the
hatchback car segment. Currently Figo is having a good response in the market.
Ford has to rectify the rear window of back door which doesn’t go down completely.
Everyone who had a look at the car likes it, after seeing the rear window of the back
doors they are not showing any interest.
Ford has to utilize the media for the promotion of Figo. For the reaching of the target
audience media is the best way. Through promotion will go to the long distances..
Please try to increase the number of Service centers. And keep Service Stations at
main locations of the city, like Banjara Hills, Jubilee Hills, Begumpet etc., where
many customers feel it easy to go to service centers..
Please provide information about new cars along with their price lists at least once in
6 months.
Advertisements through televisions can influence many categories of people. So try
to concentrate on this segment. We don’t see or find much of the Ford car
advertisements in T.V except “go fida “ the “ford FIGO” and “ford FIESTA”.
Try to provide financial facility of all customers at minimum interest.
.
QUESTIONNAIRE
Name : …………….
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Contact no. ………….
Address: E-Mail address: ……………………
1. Which of the following Ford car you own?
a) Fiesta b) Ikon
c) Endeavour d) Fusion
2. What do you like most about your Ford car?
a) Style/design b) Comfort
c) Ford brand d) Service
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?
a) From friends, relatives b) Advertisements c) Car experts
d) Sale’s persons visit e) Auto magazines
5 . How do you rate the promotion of FIGO by Fortune Ford?
a) Excellent b) Very good c) Good
d) Average e)Poor
6. Where do you get your car serviced regularly?
a) At authorized service centre
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b) At a local workshop near my home
7. Which bank do you prefer in getting financial help while purchasing a car?
a) ICICI b) HDFC
c) SBI d) others
8. Which type of finance do you prefer?
a) In house finance b) Out house finance
c) No difference between the two
9. To which media do you get expose regularly?
a) Televisions b) Magazines
c) News papers d) F.M/Radio
10. Which kind of T.V. channels do you watch regularly?
a) National news channels b) Regional news channels c) Sports channels
d) Entertainment channels
11. What’s your opinion on the price list of Ford cars?
a) Affordable by common man b) Affordable only for rich man
c) Can’t say
12. What kinds of offers do you like or expect from the dealer?
a) Free insurance b) Special discount on sale of cars
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c) Extending the service period d) Finance availability with 0% interest
13. What more do you expect from your dealer?
a) Information about new cars b) Information about service and mileage
c) Assistance regarding loans and insurance d) Understanding customer needs
14. How do you feel when an unknown sales person approaches you by knowing? Your
full details to demonstrate about any product?
a) I will not respond b) Lost my privacy
c) Interested in knowing (if I feel a need of it)
15. Have you come across any promotional event conducted by Fortune Ford during
last one month?
a) YES
b) No
16. What’s your opinion about the previous Ambassador Abhishek Bachan for the car
Ford Fiesta?
a) Full filled the purpose b) Unable to attract customers
c) He was not apt for it.
17. Whom do you suggest as a right person for promoting a car?
a) Sports person b) Film stars c) Car expert
d) Any celebrity
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18) What other brand(s) did you seriously consider before making this car purchase?
a) Hyundai b) Skoda c) Maruthi d) Honda
e) Toyota
19) As per you which vehicle come close to Figo.
a) Maruti Swift b) Hyundai i10 c) Chevrolet Spark
d)Tata Indica e)others
20) For which automobile company you finance more loan in month.
a) Hyundai b) Honda c) Maruti Suzuki
d) Mahindra e) Ford
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. We
do not share or sell your name, address or any other data with any outside company for any
purpose.
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BIBLIOGRAPHY
www.fordindia.com
www.fortuneford.com
www.wikipedia.com
www.google.com
www.yahoo.com
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