Ford Motor Company

Task 1

Examine Range of Marketing Strategy Options.

The Ford Motor Company which includes

The brands: Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Aston Martin and Land Rover are currently experiencing acute financial difficulties. It had made redundant more than 5000 employees worldwide since the recession broke out, made more than £5b group loss in 2006 and it has seen its share price devalued by 30% since 2002. Part of Ford’s problem lies in the area of financial control (it has been hit by successive rise in labor and materials costs) but poor marketing is also to blame. Commentators have observed that Ford has lost market share to a number of Far East manufacturers such as Hyundai who are able to market better value products and that are the Ford brand is becoming “tired”.

* With reference to appropriate strategic marketing concepts and models, analyze the company’s current position and strategies used over the last five years.

* Outline a number of suitable strategic options that Ford employ in order to turnaround the company’s position and conclude by recommending (support by robust argument) the most appropriate option to turn Ford into a sustainable profitable organization.

Limits the analyze to the marketing aspects of the problem only.


Ford motor company, one at the world’s largest manufacturers at automobiles and the world’s largest producer at trucks. Under the leadership at the Henry ford, the company implemented the assembly lime method of mass production and made the cars affordable for middle-class consumers. Ford is the second largest automaker in the United States based on overall sales, trading only general motors’ corporation. Ford’s subsidiaries include the Hertz corporation, the world’s largest car rental company, and the world’s largest provider at automotive financing. Ford markets vehicles under the brands of ford, Lincoln, Mazda, Mercury and Volvo.

Product Portfolio:

Ford Company have different product under different brand. The ford, Lincoln, Murcury, Mazda, Volve , Jaguar , Aston, Martin and Land Rover have different position in the market. The brand can be take in consideration of it development in different product portfolio model. They are:

BCG Matrix

Ans off Matrix:-

Various strategy models and tools can be employed to analyze and make marketing standard for capability, reliability and quality, ford is now offering even more truck for the money with the new 2004 F-150- including unsurpassed fuel economy.

Market Development Strategy:

Ford motor company has applied different market strategy for the maintaining the new market position in new market for the current product. Ford continues to plan the special edition models of Mustang. The Shelby GTSOOKR will goon sale in spring 2008. A built in model also planned sometime in 2008. Ford could put the next generation Mustang on the global rwd platform being developed in Australia around the 2012 or 2013. The fusion, which is now rides modified Mazda 6 platform, is likely to move to frods global EUCD platform around the 2018 or 218 modal year. The north American from and BCG uropean madeo are likely to become are global uehicle , with local market tweaks.


Frod mator company is that which try to developnew product and expand the product in new market area for this the company have to face the different risk for eg. 4th September 2009. Ford motor indoresia (FMI) , Jakarta has recently opened a new us $500 million passenger car plant at their joint uenture manufacturing facility , autoalliance Thailand (AAT), in Rayong, Tailand. This additional investment and expansion program of this global manufacturing hud was announced in 2007.At the at ramadhan Jakarta police for sales 600 ford focus vehicles and 591 Ford rangers and will be developed in 2009.This seems positive supports towards the product from customers.Indonesia the great quality at vehicles and services are provided for the customers.FMI is preparing to welcome the fiestia in 2010.


BCG (Boston consulting Group) is produced by the Harvard Business school,portfolio Management based on market growth .BCG matrix is use to prioritize opportunities and get the best return or company effort.Under this model.Ford motor companys brand can be measured and valued properly.This helps to know the actual position of the company.

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Accordingto the BCGmodel the ford motor company Mustand brand growth is in the top position which have high market share and profit.Mustang remains the number one sport car by a wide margin, with the new 2010 model driving showroom traffic.In april. Mustang had a 40% share of the retail sports car segment.

Cash cow

Cash cow shows the high market share and low market growth motor companysbrand are profitable and reliable.The product development costs are relatively motor company product are focused for economic class people so it has high market share get low growth rate.

Question marks

Ford motor company have the law market share and high mix growth rate. There are more competitive for this types at market or product. The product is sale in less number for the selective people or area. For example Ferrari which is high price car for high class people. So that the product should be product with carefully .The loss mistake in decision making create more problem.


In these characteristics the market share and market growth rate is low. The product in this characters market is existing for doing competition to the competitors products. Ford motor company brand Jaguar and land Rover had faced the problem and connate generated profit at 2006, to early at 2008 but finally the Ford motor company sale the brand to Tata company on 2008 march. Ford motor company sales its brand or liquidate too solve the financial difficulties.

Posters generic strategies

Michael Porter has described a catagory of scheme which consist of three general types of strategies to maintain and achieve competitive advantages in the business which can be achieve by core competency product differentiation strategies and product cost. The strategies based as product differentiation, cost leadership and focus.

Product differentiation

Differentiation is aimed at the bread market that involves the creation of a product or services that is perceived through out , dealers ,networks or customers and increase the loyalty of buyer product differentiation is helpful to complete successfully. It creates a better barrier. For example ford motor company combinations at auto manufacturing and financing .It has differentiated on vehicles development and engineering control.


This strategy emphasizes efficiency. The product are produced in high or mass with economic which is available for consumer to a very large base. To compete with competitior the mass production helps to lower the cost and lead the market .For example Ford motor company have to maintain a low cost base by controlling production cost ,increasing their capacity utilization, controlling material supply or product design, work force dedicated for low cost production ,less spending on marketing helps a company lower the cost .which is support for cost leadership.


On this strategy business firm or company concentrates on a select few target market .It target the certain age group , class people for the better market .It is also called segmentation strategy or rich strategy. A focus strategy should target market segments that are less valuable to substitutes or where a competition is weakest to earn above average return on investment .For example Ford motor company focused named a top campus car as consumers seek back to school values.(which have features such as


* In conclusion Ford motor company is suffered by lack of proper management .The Ford company had sell its brands Jagaur and land Rover to Tata motor company on 2008.The company cannot focus its particular area and differentiate product to compete the competitiors. Ford motor company have to apply different marketing strategies and analysis the product portfolio o know which area of the company is better and what technique or strategy should be apply for product development. Ford motor company have to focus the target market by doing product portfolio analysis achieve good market position.


Range of Marketing Strategy Options were used in Ford Motor Company for last 2002 to 2006 to make it sustainable.

Using the range of marketing strategy options, critically I am about to examine a range of marketing strategic options in the Ford Motor Company. The general evaluation of Marketing Strategy is to be found considering each of the following:

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* Analyze the company’s current position and strategies used over the last five years.

* Outline a number of suitable strategic options that Ford employ in order to turnaround the company’s position and conclude by recommending (support by robust argument) the most appropriate option to turn Ford into a sustainable profitable organization.

* Analyze to the marketing aspects of the problem only.

Company Profile

Founded in 1903 by Henry Ford, and based in the Detroit suburb of Dearborn, Michigan, the Ford Motor Company quickly revolutionized the market for cars. After several years of making a range of autos, in 1908 Ford decided to concentrate on producing only one car, the Model T. His goal was to compete on the basis of price not product variety. Crucial to this strategy was his adroit use of the moving assembly line, where workers specialized in one minor part of the car-assembly process. As prices fell, sales of the Model T rose from 10,607 in 1909 to 472,350 in 1916. By 1921 Ford accounted for 62 percent of all car sales. As the 1920s wore on, however, many consumers demanded greater product variety in addition to low prices. As sales of the Model T fell, Ford Motor replaced it with the Model A, which sold 4.5 million units from 1927 to 1931.

During World War II, Ford Motor Company played an active role in the war effort. It produced a wide range of military hardware, including tanks, trucks, jeeps, engines, and airplanes. Edsel Ford, who had assumed the presidency of the company from his father in 1918, died in 1943. Henry Ford reassumed formal control of the company after his son’s death, and helped position his grandson Henry Ford II to become president in 1945. Henry Ford died in 1947.

Ford Motor Company regained its place as America’s number two car producer in 1950, overtaking Chrysler, which had supplanted it in the early 1930s. In 1963 Ford unveiled one of its most popular cars, the Mustang, which registered more than 500,000 sales in its first eighteen months. In 1971 Ford introduced another model, the Pinto, which was designed to compete in the sub-compact market. Despite the Pinto’s potential, it generated a good deal of negative publicity for the company after the gas tanks in several cars exploded in rear-end collisions.

In 1979 Philip Caldwell replaced Henry Ford II as CEO, and within five years had helped Ford register record sales and profits. Donald Petersen succeeded Caldwell as CEO in 1985, and under his direction Ford acquired the British luxury car producer Jaguar and introduced the Taurus, a model that proved very popular with consumers. As the twentieth century drew to a close, Ford was comfortably positioned as America’s second largest car producer, trailing only General Motors.

Mission and Objectives

* To become the world’s leading Consumer Company for automotive products and services.

* We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.

* We anticipate consumer need and deliver outstanding products and services that improve people’s lives.

Task 2

Outline a number of suitable strategic options that Ford employ in order to turnaround the company’s position and conclude by recommending (support by robust argument) the most appropriate option to turn Ford into a sustainable profitable organization.

Task 3

Analyze the Limits to the marketing aspects of the problem only.


Ford Motor Company begun with Henry Ford and his revolutionary $5-a-day minimum wage scheme and an –8-hour workday, by 2006Ford Motor was struggling to survive. From the advent of the assembly line in 1913, well designed manufacturing has played a vital role at Ford Motor Company, but by now Ford has eliminated 40 percent of its workforce by 2008 in an effort to cut manufacturing costs. Ford has improved its competitive position by driving innovation. Successful innovation in manufacturing process, product design, marketing approach and business structure has changed a lot and finally Ford’s image has been improved a lot.

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ASDA was formed by a group of farmers from Yokshive who formed associated daivies, which in 1965 become ASDA It is now the second largest grocery retailer in the UK based on reported turnover. At the End of 2002,it had a network of 258 stores in the UK,with a very large average store size (around 4200msq), enjoying a total at 122000 full and part time staff. In June 199,Asda was acquired by wal_mart_the worlds biggest retailer and biggest grocer. ASDA has an everyday low pricing (EDLP) pricing policy. In 2009 April/March ASDA came with the slogan saving your money. Everyday, ASDA has 150000 employers, whom it refers to as colleagues, ( 9000 part time, 60000 fulltime) . ASDA give proper services to the customer for the betterment of the life.


Decision of ASDA made by ASDA that affect the route of organisation need to show those choices to others. The way in which ASDA does this is through it mission and values , which helps to understand the direction in which the company is going for stockholder. A mission is to be Britain best value retailer exceeding customers needs always.

As well as having a mission statement, ASDA has statement purpose. This helps stakeholders to understand why the business exists. ASDAs affordable for every one.

ASDA also has a series of values.These are moral statements that help to incapsulate the companys beliefs which then determine the decision and action it takes in the marketplace.ASDAs values are:

Respect for the individual

Strive for excellence

Service to our customers




To aid to the new colleagus at ASDA in understanding the mission statement, purpose and values through internet which the company can give proper care and service to the customer. so mission statement, purpose, and values helps the manager to take appropriate decision at on time.


The mains and objectives of ASDA are as follows:

To provide goods and services that are cheap and affordable to consumers or the public.

Reducing the cost objectives of their items product.

Recycling their waste.

Supporting voluntary services.

Packaging their products well.

To sell more food than anyone else, in more places and corner of the market.


Marketing strategy is a process that can be allow an organisation to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantages. A marketing strategy should be centered around the key concept that consumer satisfaction is the main goal.(Wikipedia).

So that ASDA is also presenting different types of skim for the customer satisfaction. ASDA gives on low prices. For example,3 liters of juice in 2 pounds. cartain of beers in 10 pounds, buy one get one free. Such types of different marketing strategy is ASDA following to attract the consumer and the high volumes of product.


SWOT analysis is the key which help to know the internal and external environment of organisation .Strength and weakness can be controlled by ASDA but opportunities and threats come from external environment. We can view the 4 factors of environment. They are


Powerful retail brand and good position in the market.

Pursue low pricing strategy.

Wide range of products.

Number of stores increasing.

Financial resources.


The company is global, but has a presence in relatively few countries worldwide.

It sell products across many sectors (such as clothing, food , or stationary),it may not have the flexibility of some of its more focused competitors.

Task 3.B Private Labelling

Private labelling had become the issue in todays


Frank K. Reilly, 1994, Investment Analysis and Portfolio Management, 4th edn, Elizabeth Widdicombe, USA

Robert E.H, Strategic Management- Concepts and cases: “Competitiveness and Globalization”, 8th edn, South Western, USA

Dearborn, Mich., 2009, ”Ford Motor Company announces actions to improve balance sheet and enhance automotive liquidity”, [online]. Available from [01 November 2009]

Corporate Ford’s Site, 1998, “Ford Motor Company”, [online]. Available from [02 November 2009]

Company Financials, 2009, “Ford Motor Company”, [online]. Available from [22 September 2009]

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