1. Ford Motor Company Deidre Hoefner Tanweer Akhtar Manish K Lal Aug. 24 2006

2. Agenda  Introduction  Marketing Mix  Product Line  Product Development Strategy  Competition  POP / POD  CRM  Social Responsibility  Way Forward

3. Ford: The Company  Vision: “ To become the worlds leading consumer company for automotive products and services.”  Mission Statement : “To provide safe, reliable, and personal transportation around the world.”  Market Share: 16% of the US market and 10% of the European market.  Brands: Ford, Mercury, Mazda, Jaguar, Volvo, Lincoln, Land Rover, Aston Martin.

4. Ford: History  Founded in 1903 in Detroit  Family owned business  Launched very popular Model T in 1908  First moving assembly manufacturing process  Very successfully mass marketed Model T  Lost market to GM and Chrysler during 1920s by neglecting consumer demands  Introduced Ford Escape Hybrid in 2004  Redesigned Mustang including 60’s retro style in 2005  “Way Forward” : Attempt to align production capacity and fixed costs with projected market share in 2006

5. Marketing Mix  Particular set of marketing tools used by a company  By “mixing” these, a business can work to achieve marketing objectives  Four basic tools are usually available: Product, Price, Place and Promotion  These are also known as the 4Ps

6. Marketing mix: 4Ps / 4Cs Four Ps  Product  Price  Place  Promotion Four Cs  Customer solution  Customer cost  Convenience  Communication

7. Product Line Luxury Cars Small Cars Wagons Midsize Cars Sports Cars SUVs Vans & Minivans Trucks Convertibles

8. Small Cars Wagons Niches within SUV Market Segment Luxury Cars Midsize Cars Sports Cars Vans & Minivans Trucks Convertibles Ford Excursion Ford Explorer Lincoln Navigator Mercury Mountaineer Ford Expedition

9. Product Length / Width / Depth Product – Mix - Width Product Line Length

11. Product Development Strategy  LOW COST OF OWNERSHIP Initial price Fuel consumption Reliability Serviceability  CLEAR PRODUCT SUPERIORITY Appearance Comfort Features Ride and Handling Performance

12. Competition  No. 2 US auto maker  Competition from foreign car makers  Losing market share to rivals ( 15.6% now)  Leader in Trucks in US Market

13. POP / POD  POP Major category player Improve parity in hybrid cars Create parity for flex fuel vehicles  POD Over 100 years of legacy An “American” car company Provides safe, reliable, and personal transportation

14. CRM The Customer is Job 1 at Ford

15. CRM Acquiring right customerSAS platform Crafting right value proposition Data modeling: understand and treat customers Instituting best processes Product development strategy Motivating employeesEmpower front line employees, KMS Retain customersCustomer defection, retention, & satisfaction

16. Social Responsibility Ford is serious about making the world a better place. That is why empowering people is regarded as a high priority and one of our major goals. Education Conservation AIDS awareness Community action

17. Way Forward  Efficient and effective to compete in the market  New series compact cars  Brand consolidation  “American value”  Associate quality with Ford brand  Reduce manufacturing cost  Cutting edge technology / User friendly web site