FORD Analysis
FORD Analysis
SUBJECT:
FUNDAMENTALS OF MARKETING
PARALLEL:
1
COMPANY:
FORD MOTOR COMPANY
MEMBERS:
CAMPOVERDE BECERRA KATHERINE ANABEL
CHAMBA ZAMBRANO DAGMAR VICTORIA
Mora Thome Sunday Camila
SOLORZANO GONZALEZ JOSELINE ARACELLY
HURTADO ISABEL DEL CISNE VACATION
Content
Introduction and Background of the marketing plan.....................................................5
Introduction...........................................................................................................................5
Background................................................................................................................5
6
The marketing problem: field of study............................................................................7
Initial and specific objectives................................................................................................9
Project Objectives...........................................................................................................9
General Objectives...............................................................................................................9
Specific Objectives.............................................................................................................9
Market research:..........................................................................................................9
Problem Statement...................................................................................................9
Hypothesis (Formulation and Testing).........................................................................................10
Research Objectives...................................................................................................10
General objective...................................................................................................................10
Specific objective...............................................................................................................10
Development of the Chosen Research Methodology.....................................................11
Data tabulation..................................................................................................................11
Quantitative Results:.....................................................................................................11
Conclusions of the Market Research
Technical sheet (Data and Formulas used for sample calculation).............................18
Analysis of the current situation..................................................................................................18
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........................................................................................................................18
• Suppliers:..................................................................................................................19
Marketing intermediaries:...........................................................................................20
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Audiences............................................................................................................................20
Clients and Market..........................................................................................................21
Macroenvironment.................................................................21
Demographics:..................................................................................................................21
Economic
Naturals.................................................................22
Technologicals....................................................................................................................22
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• Political and Legal.........................................................................................................23
Cultural
Diagnosis of the current situation: SWOT...........................................................................24
Link between conclusions and objectives.................................................................25
Knot.....................................................................................................................................25
Redefinition of the initial objectives.................................................................................25
Strategic Marketing:.............................................................................................................26
Segmentation.......................................................................................................................26
Automotive segment..........................................................................................26
Mobility segment.............................................................................................................26
Ford Credit Segment........................................................................................................27
Geographic segmentation
Target Market and Audience...........................................................................................27
Quantification of demand..............................................................................................27
Positioning........................................................................................................................28
Differentiation
Analysis of the UEN...................................................................................................................29
UEN..................................................................................................................................29
BCG MATRIX................................................................................................................29
ANSOFF MATRIX
Operational Marketing (Marketing mix):..............................................29
Product (Product portfolio and life cycles (current and proposed):......................29
Brand, characteristics, design, quality level, packaging, delivery, credit, service
after-sales, warranty, and support for the product.....................................................................29
Price (current and proposed):
Square (current and proposed):...................................................................................................29
Control:................................................................................................................................29
Financial economic analysis of the marketing plan (with costs of the plan):..........................29
Conclusions of the Marketing Plan
• Marketing Plan Recommendations..............................................................................30
• Various attachments Surveys, readings, papers, etc......................................................................30
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Illustration 2 Percentages by gender........................................................................................12
Illustration 3 Percentage by place of residence.........................................................................13
Illustration 4 Percentage of monthly income.......................................................................13
Illustration 5 Percentage of social media usage...............................................................14
Illustration 6 Percentage of people who consider the authenticity of Ford.........................14
Illustration 7 Percentage of characteristics observed mainly....................................15
Illustration 8 Percentage of Value in their products.................................................................16
Illustration 9 Percentage of people who have heard about new technology at Ford
..................................................................................................................................................16
Illustration 10 Percentages of people willing to pay more for innovation......................17
5
Introduction and Background of the marketing plan
Introduction
The project carried out in the Fundamentals of Marketing course aims to apply all the
knowledge acquired within the subject for which the study will be conducted
Automotive industry according to its annual report presented in 2019, that is to say that it will be carried out a
thorough analysis of the marketing environment surrounding and affecting this Company, estimating
how the microenvironment and macroenvironment could alter the development of this Company in the
market analyzing the repercussions that Ford Motor Company would have with the
change in its marketing environment and at the same time be able to propose marketing strategies for the
from Ford Motor Company and even improve it if positive repercussions are represented
for the company taking advantage of the circumstances that may arise obtaining
The purpose of this project is its development to put into practice and
of marketing in which the forces affecting the Ford Motor market are analyzed
Company.
Background
Ford Motor Company was founded on June 16, 1903, by Henry Ford in Detroit.
United States, the founder's vision consisted of creating affordable cars for the greater
were elaborated through mobile assembly lines and mass production techniques,
Thus, the key to success is chain production, reducing the production time of
the cars.
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In 1917, Ford decided to produce trucks, tractors, boats, and airplanes, without stopping
to produce their flagship product which was cars, however, due to the changing market
From that time, they decide to start producing bombers, aircraft engines, tanks, and everything.
type of military machinery needed for World War II stopping production of its
ancient products.
When World War II ended, Henry Ford's grandson took control of the
company to re-establish itself in the market with the old product range that
In 1961, they created the 'Mustang' model, a legendary car for Ford, the first day of
upon its market launch, twenty thousand units were sold. Currently, the new ones
In the following years, they expanded the market by introducing new models of
technology that sets them apart from other brands, seeks to prevent accidents through a
emergency assistant that follows a procedure for the driver to react, if the
the driver does not manifest in the car despite the signals given by the car itself, the car brakes,
it also has the world's first car that can enter and exit its garage or
car parking without the need for a driver through the key with
Ford Motor Company seeks to position its new product range in the market, in
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self-driving and vehicle services, however, despite the fact that their products are
Differentiate by their high prices and quality; these products may present inconveniences.
for cyber incidents due to the development of cars with greater connectivity. Ford Motor
The company has designed preventive safety measures for its products, although this does not
provides an absolute guarantee that its products are not vulnerable to attacks
the trade and currency restrictions that affect Ford's expansion in South America,
Moreover, many countries in South America are suffering from a severe economic crisis, an example.
This is Venezuela, Colombia among other countries and the currency restrictions in some.
Latin American countries like what happened in Argentina and Venezuela. These aspects have caused
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Ford Motor Company is currently facing tough times in certain areas.
trade and currency restrictions, economic crisis in different countries and the possible
cyberattacks they have suffered and possibly will suffer over time.
Ford Motor Company founded 117 years ago, has had a long history in the
market in which it has been adapting to the situations it faced such as was the
World War II that decided to adapt to this historical moment and begin to create
war machinery, when the war ended, it resumed producing its original products,
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Currently, Ford Motor Company is in a tough situation due to
It may seem advantageous for the customer to achieve these products with great advancements.
technological products reach the market and achieve their proper functioning is a long
Around the world, many countries are facing the economic crisis, which has
directly affected Ford Motor Company because its products are not considered
a necessary good, furthermore, they are trying to impose new trade restrictions and
currencies, which complicates the marketing of Ford Motor Company, in addition to the fact that they have
with plants in certain countries that are suffering from the economic crisis.
Despite being a company that has been established in the market for a long time
of the market.
The company has been affected by the shortage of certain parts, causing a
suppliers.
for data and improve the security of programs to prevent cyber attacks.
the negotiation process with these countries should begin to reduce the
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Initial and specific objectives
Project Objectives
General Objectives
Create a marketing plan for Ford Motor Company, for its new
car models find acceptance in the market and regain their share in the
market.
Specific Objectives
Improve notoriety.
Improve positioning.
Market research:
Problem Statement
Ford is one of the highest ranges available in the market in terms of vehicles.
refers. This company is targeted at a certain group of people with financial resources.
high and very high means as their vehicles are very expensive.
They are basing themselves on what the consumer really needs since those who
they will buy that brand because they like the authenticity it provides them so they
they will always be faithful to the brand, which is why the company always wants to propose new things
for their vehicles and undoubtedly has chosen the best, which is innovation.
So their main problem would be the reception they have in the market since their
products always add value to make it more appealing to the consumer, they now
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they want to implement communication between vehicles of the same brand and this will be a
difficult work for the automotive industry due to risks of disruption, cutoff, and compromise
We can infer that in the long term, the mobility base is the network of vehicles that is
they will communicate with each other, therefore, it will reduce traffic in the city which could decrease the
the vehicles break down, but they not only thought about that but also in the
logistics and delivery. This will allow vehicles to have extensive technology in all
their models and that the client feels comfortable since they will send emergency messages and
But as we mentioned earlier, the biggest risk they have is the issue of the
internet users since it is a bit complicated to control the operating system of the devices
Research Objectives
General objective
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Specific objective
driver, the well-being of the pedestrian and above all the comfort and authenticity of their
vehicles.
Form alliances between the consumer and the company to satisfy the
For the product that we have in this case, a brand that is commercial.
and high, in which a thorough investigation is what we must carry out, therefore
Quantitative: Survey
Data tabulation
Quantitative Results:
The surveys were conducted with a number of people who are middle class.
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Illustration 1 Percentage of age ranges
they are over 45 years old as they capture 55% of the market for these cars, which
followed by the people who are between 26 and 35 years old with 18%, followed by the people
that are between 36 and 45 years old with 18% and lastly those who are between 19 and 25
years.
From what we can observe, it is that the people who consume the most or are loyal to
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Illustration 3 Percentage by place of residence
Our survey showed that most of the customers of this brand would be the
people who live in Samborondón and Vía la Costa since our sample showed 76%
while in the remaining part of the sample, the next is 13%, which are those who live in
the north followed by 6% and 5% who live in the center and south of the city.
In this question, we can realize that the people who acquire this
product are because they have an income greater than $901 as they have the possibility of earning
many more have options to buy this type of vehicle. On the other hand, the one that
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they have a lower income perhaps they cannot acquire a vehicle and it may not be of that
As we know, these days people move a lot through social networks and more than
everything is due to the eye-catching advertising they have when showcasing the product, that's why the customer...
let it go and acquire the product and that is why we can see it in the diagram that the
people use social media a lot, which corresponds to 87% of our small sample
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Without a doubt, we can observe that our sample is almost 99% faithful to the brand.
since they feel that they are made to appear authentic by driving these vehicles, which makes them feel
Well, it is not just because it is expensive, but because of what it gives them satisfaction.
Without thinking about it, what motivates clients to choose the ideal vehicle for them is the
comfort that this company provides with a 45% acceptance followed by loyalty that
they have the brand at 32% as they have bought some vehicles without hesitation from the
same brand and they are satisfied since the company provides what they need.
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Illustration 8 Percentage of Value in your products
Consumers love that the brand they are loyal to always places value on
each of their vehicles since a version may come out, but the value they assign to it
the other versions are different and that is why the consumer is led to follow in this way
Illustration 9 Percentage of people who have heard about new technology at Ford
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58% of consumers have heard about the innovations that Ford is going to
implement in their new vehicles while 30% might have managed to hear or see in
And finally, without a doubt, the value that the brand will increase due to its new vehicles.
It is indifferent to the consumer since 95% would be willing to pay an additional amount.
consumer that's why they choose it again and again, the majority of the sample that
we choose is based on people over 45 years old and their main clients are women. On the other hand
part, the biggest means of communication for customers is social media as this
the world is the strongest globally and besides, advertising captures a lot of attention from the
clients.
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Finally, we can say that despite the issues we have taken the
consumer if they would be willing to choose those vehicles again for the innovation that
they will always have in each of them assuming the risk of high values in everything
sense.
The formulas that we had to use to obtain the desired data from our sample
they were:
Arithmetic mean
Microenvironment:
Company:
Ford Motor Company was founded in 1903 in Michigan by Henry Ford, hence the
name of the company, which was the designer and engineer of the cars. In 1919, it
The company is incorporated in Delaware with its headquarters in Dearborn, Michigan. Currently the
the company has branches in more than 125 countries, where the first was Canada,
counting with around 190,000 employees worldwide creating different types of cars,
The company's mission is 'To improve people's lives by making them '
The company's vision is 'To become the most trusted company in the world,'
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The company's mission and vision reveal that it aims to be a market leader and
Within its goals as a company is to hire the best in the industry and thus
to be able to stand out with good employees who are up to date with new technologies and not
stay afloat and continue operations for the next few years and remain relevant in the
automotive industry.
• Suppliers:
Ford has created a strategic alliance with its most potential suppliers called
Aligned Business Framework which aims to help these companies for a better
sustainability and at the same time help oneself to continue providing the best
products to their customers acquiring the best raw materials in the market
international and national can offer, such as basic metals, energy, and other materials that
An example of good work with your suppliers is that together with them and companies
technologies are trying to develop autonomous vehicles, which is something that is in full swing.
Although many times work is not always so magical because things can happen
things that prevent the good development of the company, such as certain parts not being in
the optimal conditions and cannot be used for safety reasons; they can be presented
certain problems in the cities of these companies that provide them as disasters
environmental issues or even strikes by the workers themselves; or even worse the case that
a single supplier and if they fail with the deliveries it can be very detrimental. All these cases
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they cause Ford to face certain inconveniences regarding its deliveries and leaving the road
free to compete.
Marketing intermediaries:
promoting itself and delivering more and more products of the brand to its consumers
to remain at the same level or even larger than the competition while always respecting the
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• Competidores:
competitive as the company has a lot of competition like Ferrari, who have reached
having the most famous race in the late 60s, Volkswagen, BMW and others that are
very famous and make Ford work harder every time to give the best to its customers.
The competition stands out most in terms of price and promotions that
They produce more than the current market demand. This could present an advantage for Ford.
and a disadvantage.
The disadvantage is that with so many companies offering promotions, Ford does not know
It can compete with all of them because many times the economic aspect is seen.
affected by political and legal problems in different countries. But the advantage is that, by
knowing its weak point, he has taken advantage of it and decided to team up with certain companies and create
alliances to provide better products, better services, and even better offers and to their
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Publics
The different audiences have a significant influence on the business decisions of any
company and Ford are not exempt from this. A great example is the public of citizen action and
the government audience, since Ford is an automotive company its contribution to the
socially and thus not only comply with the laws, but also shows clients that they truly
he cares about them not only in the United States but around the world and
Although the company always tries to give its best and stay up to date
News in the automotive market is sometimes difficult because in the technological era the
people are constantly changing their tastes and there is always something new being created
In some part of the world that can revolutionize everything and many times Ford cannot be present.
Alongside those events, it takes years to design and develop a new vehicle, so
The competition can take advantage of this. This in turn affects the sales that it had.
the company is projected because, although a market research has been done and seen that
As much as the new product or service can excite people, this is very behind.
But despite everything, Ford always tries to provide the best benefits for its customers.
like different promotions, guarantees on their products, parts that are the best and to
same safe time. Even with the help of market research, you know what
they are moving away a bit from large vehicles and although that is their strength, they know that
You have to do what is necessary to satisfy that market and not lose those customers.
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Macro environment
Demographics:
Depending on the demographic sector in which it is located, Ford varies the type of
product and warranty it offers to its consumers. Sometimes Ford has been affected
for state and federal consumer protection laws and the breach of the
guarantee obligations, policies, and the social statuses that prevail in the different
regions of the world where there is a stronger job market depending on the area of the world
in which it tried to promote itself or 'make a stronger impact' than other brands.
Economic
One of the economic measures that affect development in the market are the
Europeans which details that Ford will have to pay premiums in shorter installments
tariff impositions.
Natural
It is very difficult to control what cannot be managed, so many times there are matters
natural issues that escape the company's control and harm it, such as: climate problems
which can harm suppliers and their employees and even the company itself.
company; problems in the different cities that provide such as strikes or the health of their
employees. And this can be more detrimental if there is only one company that
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Technological
The company tries to always keep up with the new trends in the market and continue
being relevant. They work very closely with companies and suppliers related to the sector
technological and thus be able to gain a significant competitive advantage in the vehicle market.
But this can be a bit complicated because we are currently living in the 'Technological Era' and
daily there are new trends and Ford tries to innovate as fast as it can, although this
each time, this can also be harmful as there have been many technological attacks,
leaving it vulnerable and exposing its biggest secrets to the market, causing that
An example of the disadvantage is the political/legal problems that can occur not only in
United States, home country of Ford, but in any country where the company operates.
work that Ford has been doing for years. For example, China has much more policies
rigid for the automotive industry and this harms the company and makes it strive
much more. Another example is the case of the United Kingdom that left the European Union and the
The company will have to face the new political/legal norms that this country imposes.
Although it is known that external legal issues can affect the company, the
legal problems in the same country can sometimes be much tougher. If the United States decides
increase taxes on certain materials that are going to be used, Ford will not only see
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affected economically, but also the launches may arrive with less
impact on the market and affect the demand that was projected and in turn see less
competitive.
Cultural
Culture changes from country to country and beyond merely knowing how to promote certain
product or benefits in a certain region of the world also needs to know how to maintain
the employees of the different branches are happy not to harm the company.
In many of the places where Ford operates, there is a culture of unions and when
These employees do not feel satisfied, they can even close factories and this limits them.
Fortresses Weaknesses
Warranty coverage of your Uncertainty regarding the
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basics and energy.
technological advances using them to improve their vehicles every day, providing them with
importation, the cultural factor, the demographics of different countries among other factors.
Ford's interaction with customers has been affected by the different types of
tastes of people, this is due to the fact that currently people are more
contact with technology making their preferences known, complicating the company
choose vehicle models that benefit and please the market that Ford is targeting
normally.
Knot
The models and technology of the vehicles that Ford has for marketing do not
They satisfy the desires and needs of current customers, therefore, Ford must increase
variety of models and improve the technology they work with to avoid attacks
The different social and economic policies, the economic barriers they impose
The countries where Ford has its markets affect its economic development.
To have vehicles that not only the upper class can use but also
to operate so that political and social laws do not affect the development by 100%
company.
Strategic Marketing:
Segmentation
Automotive segment
Mobility segment
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Ford Credit Segment
Ford around the world and thus support its distributors. They also offer financing to
Geographic segmentation.
economic and political conditions that are beyond the control of the company, which is why Ford
they do not depend on a single client or just a few, as the loss of these would have an effect
Ford's target market includes both wholesalers and retailers, the retailers that
they are responsible for the sale of vehicles to their own dealerships for sale to the customer of
And to the wholesalers, which are the sales of medium and heavy trucks, the units of Ford
Demand quantification
Your demand consists of retail sales, industry sales, and the quota of
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Cuota del mercado 7% 6.3% 6%
Positioning
dominant producer.
numerous suppliers
worldwide.
Differentiation
regarding the type or size of the vehicle, as well as the design and performance characteristics.
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Analysis of the UEN
UEN
Europe, China, operations in the Asia-Pacific, and the Middle East and Africa.
BCG MATRIX
ANSOFF MATRIX
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Conclusions of the Marketing Plan
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1
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