Market Audit, Analysis and Feasibility Studies of Ford Motor

AN ASSIGNMENT ON
MARKET AUDIT, ANALYSIS AND FEASIBILITY STUDIES
OF FORD MOTOR COMPANY
WORD COUNT: 2208
CUSTOMER AND
INTERNATIONAL MARKET ANALYSIS
UMKDFG-15-M

Executive Summary
The outcomes of the marketing audit show that Ford products do not have many target
markets. In the process of marketing audit and analysis effort was made to research on how Ford
explored the use of SWOT analysis and four marketing mix to sell their product. Consequently,
Ford Motor Company marketing audit shows that the company had experienced some strategic
marketing problems during the unstable economic periods. Some of its major competitors might
have hoped for bankruptcy or liquidate assets. Presently, Ford is the most financially strong
United State car manufacturer and financially upright to maintain its operations provided there
are no sudden dramatic changes in the market. Market audit and strategic analysis of the
company shows the company will not hope for government funding unless car sales for 2022 are
below 15 million. While Ford, like other major automobile companies faces some serious
challenges. Although, the analysis shows that opportunities exist during the crisis time. It is
believed that Ford can break even in any fiscal year barring further macroeconomic deterioration.
This write-up makes some recommendations for the company.

Table of Content
Glossary
Introduction
1. Market Audit and Strategic Analysis
2. Overview and Evaluation of Ford Marketing Decisions
3. Recommendation
4. Feasibility Studies
Conclusion
References
Appendices
Appendix I: Market Audit of Ford Company
Appendix II: SWOT/TOWS Analysis
Glossary
SUV
BEV
UK
US
Sport Utility Vehicles
Battery Electric Vehicle.
United Kingdom
United States

Introduction
Ford Motor company markets, manufacture, designs and services a number of trucks, sport
vehicles, cars, electrified vehicles and Lincoln. It operates on three segments which are
automotive, mobility and credit. The automotive segment sells vehicles, accessories, service
parts via distributors and dealers. The dealerships also include commercial fleet customers,
government and car rental companies. The mobility segment on the other hands, builds and
designs mobility services as well as provision of self-driving systems development services. The
credit segment mainly engaged in vehicle leasing and financing through automotive dealers. This
segment provides sale contract, retail instalment, finance leasing for used and new vehicles
(Enkhbayar, 2018; Parreira, 2020). Ford has a strategic alliance with ARB Company to design a
suite of aftermarket products for the new Ford Bronco. It has long been dealing in a range of
vehicles which include Volvo, Ranger, Jaguar, Land Rover among others. The company has
launched a variety of cars types such as luxury cars, economy cars, vans, sports cars, trucks and
station wagons to satisfy and meet variety of consumers’ needs and demands (Jolly, 2019).
1. Market Audit and Strategic Analysis
Ford Motor company holds larger market in US, UK, Canada and Germany while the US
being the largest market. Ford uses market-oriented pricing strategy to set prices that are suitable
for market conditions taking demand, competition, consumer awareness among other into
consideration (Gillespie,2007). Ford also employed differentiated targeting strategies for the
provision of its products. The company target market was formally middle and high income
classes. Recently, the company has designed a new affordable model for male and female
teenagers within 18years to 25years of age with average income (Murphey, & Gause,1974).
However, the marketing strategies of the company has currently been facing a myriad of
problems in the immediate and remote environments. These problems include weak earning, low
sales, weak guidance, union talk among others (Pestleanalysis, 2016). However, some of these
problems arise from political relation, inflation rate, consumer behaviors in terms of travel habits
and salary level (Fei & Wenbin, 2012; Jasper, 2019; Anasta and Christo 2019).
Furthermore, with the use of PESTEL analysis of the company remote environment.
Government global trade agreements has given Ford opportunity to enter foreign market.
Similarly, improvement of transport infrastructure in developing worlds has also contribute
increase in vehicles demand in this countries. The varying economy conditions of the home and
demanding has influenced Ford market; economy growth is an opportunity to the firm while
strengthening of US dollars is a threat as this reduce profit margin owing to the production of the
firm raw materials and automotive parts in US. The increasing wealth gap has constituted a
threat to Ford’s Lincoln automobile that market the company luxury products. The company has
been growing through the provision of products that address the increasing demand for hybrid
and electric automobiles. However, based on ecological component, Ford provided products that
are climate friendly through low carbon generation products. The company also sustains its
business through adherence to various safety, intellectual property and environmental protection
regulations (Murphey, & Gause,1974). Also, Table 1 presents the SWOT analysis of the current
marketing situation of Ford company. See Appendix II for detail.

Table 1: Summary of SWOT Analysis of Ford Motor Company
Strength (Internal)
Global market brand awareness with strong
market in US and Europe; Customers’
perception of Ford as an American brand has
resulted in their trust; Strong business ideas
and inventions
Weakness(Internal)
Reduction in revenue and profit due to weak
sales, increase in operating cost, dependence
on US and Europe market; Low penetration to
China and India; Presence of high rivals
whose customers refused to change brand.
Opportunity (External)
Creation of solid BEV market; High
customers’ awareness;
Threat (External)
Growth of automobile competitors in the
home country; Presence of self-driving or
Uber services
*BEV: Battery Electric Vehicle.
Ford has a number of competitors in automobile business. The principal direct rivals are
Mercedes-Benz, Toyota, Honda, BMW and Hyundai. The company faced high competition
outside and within US market especially from GM, Toyota, Honda and Nissan (Rugman et al.,
2004). These companies are well-known for production of high quality fuel efficient and low
price small vehicles. This has forced Ford to focusing on more production of SUV and trucks
leaving small vehicles production for its rivals. Also, the significant threat posed during
economic recession by suppliers of raw materials has made Ford reduce its suppliers in recent
time. Similarly, global economic recession has impacted on Ford’s finance in dealership and this
has reduced retail purchasing power. The intensity of entry barrier in automobile industry has
impeded Ford penetration to Chinese and India market. While that of developing countries are
characterized by tariff and subsidies for local industry (Dornbach-Bander et al., 2009). Exit of
any automobile firm usually takes form of merger and acquisition (Pestleanalysis,
2016;Balawardhana, 2020).
Figure 1: Porter’s Five Forces.
Threat of
New
Entrants
Supplier
Power Buyer
Power
Threat of
Substitutes
Industry
Rivalry

2. Overview and Evaluation of Ford Marketing Decisions
Generally, Ford automobile company primarily market vehicles with four prominent brands
which are Ford, Lincoln, Mercury and Volvo. In another dimension, the company may largely be
divided into two sections which are the Financial services and automotive. As earlier mentioned,
Ford offered vehicle finance through its credit to both dealers and retail consumers within US.
However, Dornbach-Bander et al. (2009) documented that Ford financing for dealerships of
wholesale purchase is about 98% in Europe and below that in US. Ford automotive segment that
manufactures, design and services trucks, cars, vehicular parts and SUVs is basically divided by
regions. These regions are South America, North America Asia, Pacific Africa and Europe.
Conversely, Volvo is the only product that operates as a distinct subsector as against the regional
model. The retail sales of Ford company operate through a dealership model and the dealership
entered an exclusive contract with Ford to sell its vehicles. As far back as 2008, Ford operated
over 3,800 dealerships within US alone and majority of these dealerships were selling only the
Ford Brand while remaining few are selling Ford, Mercury and Lincoln (Murphey, &
Gause,1974). However, Ford production usually takes 20days from day of making an order to
shipping. Production is usually higher during spring and summer to accommodate peak demand
(Platzer et al., 2009) Similarly, has deduced a number of problem-solving methods that focuses
on product and process improvements. This is with the aim of identifying and eliminating arising
complication by ensuring the monitoring of the root cause. These problem-solving methods are
preparation and emergence response actions, use of team, issue description, creation of an
interim plan, determination and verification of root causes and escape points as well as
definitions and execution of corrective actions. To uphold its prominence in the market, ford tries
to find new and ways to approach its customers. This has been in the form of increase in the
making of and supply of branded content. This has further impacted on the company’s business.
Particularly in refining and perfecting its content strategy. There is the use of a multi-channel
approach where the content is housed under one owned content hub. Where ford has various
customers where each has her requirements
3 Recommendations
Considering the SWOT analysis (in Appendix II) of current marketing situation of Ford
Motor Company, a number of strategic recommendations are highlighted below to redress the
burning problems currently facing the company. Some of these recommendations are executable
in long and short run periods and they are:
i. Ford must to implement single vision and remain in self-differentiation from its rivals
during and after economic recession
ii. The company should not avoid government funding in its home country, in order to
empower its financial ability in the diversification of personal funding to full penetration
of Chinese and India automobile markets.
iii. Readiness and ability of Ford to restructure its supply chain during any perceived market
instability facing its rivals from being solvent
iv. Ford should strategize its long-term growth through preparation and execution of product
differentiation from its rivals by producing more quality products with low piece
v. Ford should discontinue its production limitation to two regions, US and Europe, that
have high labour cost. However, its production can be extended to Eastern Europe and

Mexico in the long run as these will provide geographical proximity with relative low
labour and production cost.
4. Feasibility Studies
The market audit of Ford Motor company has revealed its continuous production of new
models and invention of new styles of cars in the recent years. Ford, being part of the leading
automobile manufacturing industry, had addressed issues of capacity utilization in each of its
operating market. Capacity utilization is said to occur whenever production output surpasses the
number of products that can be sold in the market. However, to aggravate the problem new
automobile producing firms have been entering the market. A recent economic recession coupled
with COVID19 have induced reduction consumers’ spending habits across the world. Although
some countries have begun to recuperate from the unstable economies yet there are some that are
still battling with the shocks. Ford automobile company has been benefitting from innovations in
its production and services over a turn of century. However, Ford may not continue to uphold
competitive advantage in the automobile markets by virtue of history but require a
comprehensive marketing mix. This will require an innovation approach to reach all their target
customers. This could be achieved through Ford’s websites, Facebook, e-magazines, company
blogs, regular press release in car magazines and numerous customers’ services call center.
Ford is well-known for the manufacturing of sports utility vehicles (SUV) and trucks in the
United States and global automobile market. Though, the instabilities in the global economies
and high cost of petroleum had made Ford to be more fuel efficient, lower carbon generating
vehicles and particularly, redefine their image in general to follow customer trend (Kassab,
2015). Ford could expand their recruitment of marketers most especially in the division of their
top competitors and assigned them with marketing target. The new recruits could be people of
highest personality and experience in automobile marketing with integrity and famous in their
domiciliary countries or areas, who can openly express their determination of further expanding
Ford market in their location. From the historical perspective, Ford has been known of
manufacturing high quality vehicles. However, displaying this history of quality performance
could also be the best approach to have total global market control especially in the areas where
they have market limitation such as India and China. For instance, displaying exactly how well
tucks produced by Ford perform and their load bearing capacity might induce consumers to make
high purchase of the demonstrated high-quality vehicles. This positioning might, therefore be a
best manner of products promotion. For the higher quality vehicles, Ford should place emphasis
on technology, safety and quality standards. Therefore, it may be imperative at this juncture for
Ford to redefine and develop strong brand image in order to gain more consumers’ awareness
that they deliver vehicular of high-quality which the quality exceeds value offered by the
consumers of the products. Besides, a more dependable market strategy will need to be
formulated to realize some of the marketing recommendations in its operating environment. In
the first instance, there is need for market data identification and evaluation, this will further
include the analysis of its products operating internal and external environment. SWOT,
PESTEL and Porter’s five forces analyses that were earlier used to identify the current marketing
situations and problems facing the firm in the automobile markets would be addressed using the
TOWS analysis presented in Appendix III.

Conclusion
Ford Motor company is a well-known global manufacturer that deals with selling and
services of trucks and cars across the world. It is a company that is that is characterized by the
design, manufacturing and marketing of expensive high-quality vehicles. Nevertheless, the high
quality of Ford’s product distinguishes its products from their competitors in the automobile
markets and this also culminated in the expensiveness of its products compare to that of rivals.
This has been induced owing to its aim in the marketing sector which is to make their customers’
life better and improve transportation across the world.
References
Balawardhana, M. (2020). Marketing and Digital Future - Ford Motor Company. ResearcGate.
Dombach-Bender, R., Slade, B. & Thorpe, J. (2009). Strategic Report for Ford Motor Company,
s.l.: OASIS CONSULTING.
Enkhbayar, A., (2018). Ford Motor Company's Financial Analysis.
Fei, V. & Wenbin, S., (2012). Ford Motor Company. [Online] Available at:
https://www.slideshare.net/giaosunobita/ford-presetation [Accessed 5 July 2021].
Gillespie, A. (2007). PESTEL analysis of the macro-environment. Foundations of Economics,
Oxford University Press, USA.
Jasper, J., (2019). Ford to close Bridgend Factory by September 2020. [Online] Available at:
https://www.theguardian.com/business/2019/jun/06/ford-to-close-bridgend-factory-in
september-2020 [Accessed 5 July 2021].
Murphey, M., & Gause, R. (1974). UCF Research Guides. Industry Analysis. PESTLE
Analysis. Business Horizons, 17(5), 27-38.
Parreira, F.M.F. (2020. Equity research-Ford Motor Company (Doctoral dissertation, Instituto
Superior de Economia e Gestão).
Pestleanalysis. (2016). SWOT Analysis of Ford Motor Company. Retrieved April 9, 2016, from
http://pestleanalysis.com/swot-analysis-of-ford/
Platzer, M.D. and Harrison, G.J., 2009. The US automotive industry: National and state trends in
manufacturing employment.
Rugman, A.M. and Collinson, S., 2004. The regional nature of the world’s automotive sector.
European Management Journal, 22(5), pp.471-482.

APPENDIX I
Market Audit of Ford Motor Company
An in-depth review of literature on market audit of Ford Motor company revealed the followings
about the company.
Goals
The goal of Ford company is to create better world through creation and building of vehicles that
will attain an increased level of performance in the world safety as well as in crash-testing
programs
Vision
To become the frontrunner in motor industry, especially in fuel efficiency, at a reasonable price
with enhanced worth to global consumers.
Mission Statement
Ford company mission is to ensure that mobility is accessible and affordable in order to enhance
people’s living.
Description of all marketing Goals and Objectives
The marketing goal of the company is to enhance human progress by providing mobility and
accessibility for all. The company also aimed to become the most inclusive and diverse global
enterprise as well as responsibly source for all raw materials used in all vehicles globally. Under
this plan, the company saddled itself with the responsibility of improving quality, reducing cost
and accelerating the restructuring of its global business. The objectives of these goals include
high quality, customer satisfaction, operational excellence and topline growth.
Identification of Customers
Ford serves a number of customers who are within the automotive sector, with its end-users
largely comprising general consumers and commercial businesses. The majority of Ford’s sales
vehicles, parts and accessories are made to its worldwide network of Ford and Lincoln
dealerships. Also, the company sells vehicles to automotive and parts distributors as well as
commercial fleet companies which include car rental providers, government bodies, industrial
and contracting companies. the company provides commercial financing products to business
customers. The company hold larger market in US, UK, Canada and Germany while the US
being the largest market. Ford, however has a significant market share in jurisdiction across the
American and Europe. However, from holistic view, the company currently holds production
facilities in Thailand, Brazil, France, China, Mexico, Germany, England, Canada, US, India,
Taiwan, South Africa, Russia, Turkey, Romania, Vietnam, Slovakia, Argentina, Venezuela, and
Spain.
Target Market
Ford company uses Differentiated Strategy in the marketing of its products. This strategy
is aimed at targeting two or more segments by developing marketing mix for each segment. The

company designed to appeal many different types of consumers and satisfy many of their
different needs in the form of economy cars, sports cars, luxury cars, station wagons, vans,
trucks, and so on. Recently, the company produced its latest model of cars known as FORD
FIESTA, and this car are focus on young people and ladies.
Identification of Competitors
Ford has a number of rivalries in automobile business. Ford competitors include Fiat Chrysler
Automobiles (FCA) US, Daimler, Nissan, Navistar, Ferrari, Toyota Motor Corporation, BMW
Group, Mercedes-Benz, Volkswagen, Honda, Suzuki, Tesla, Chevrolet, Hyundai Motor, and
General Motors.
Description of Products or Services
Ford, as a global automotive and mobility company, its main business consists of design,
manufacture, marketing, financing and servicing of Ford and Lincoln-branded trucks, sports
utility vehicles and electric vehicles. The company has two separate related business segment
which are automotive and financial servicing. The automotive involves manufacturing,
marketing and sales of Ford vehicles across North America, Europe, South America, Middle
East, Asia Pacific and Africa. The financial services involve the company’s automotive
financing, credit and commercial leasing services, primarily provided through Ford Credit. The
company has over 70 manufacturing plants across the world and sells vehicles to consumers
through a network of more than 10,000 independent owned dealerships. Thus, its products
include Automobiles, Automotive parts, Luxury vehicles, Pickup trucks, SUVs and Commercial
vehicles.
Marketing Strategy: Branding and Brand Positioning Strategy
Brand positioning is a salient feature of any company’s strategy and has main advantages in
association with competitive offerings. The company has been a prominent firm with a very
strong financial position and large organizational structure through its well-built brand
awareness. Ford motors is one of the major players of international automotive industry
Micro and Macro Analysis
However, these firms jointly employed 1.1 million people worldwide while Ford single-
handedly has 190 thousand employees. These competitors provide quality products to their
customer and earned customers’ trust as well as conducting market research to get customers’
feedback. These principal competitors have 16% market share in the industry. Also, Ford motors
has a weak cost structure because its cost is higher than its rivals. Consequently, this has limited
its profitability and enabling customers to change to consumption of other brands with less
process and better car. The reduction in profit is owing to higher prices of its cars, truck and
other product (Ford, 2016). Ford Motor company holds larger market in US, UK, Canada and
Germany while the US being the largest market. Ford uses market-oriented pricing strategy to set
prices that are suitable for market conditions taking demand, competition, consumer awareness

among other into consideration (Gillespie,2007). Ford also employed differentiated targeting
strategies for the provision of its products. The company target market was formally middle and
high income classes. Recently, the company has designed a new affordable model for male and
female teenagers within 18years to 25years of age with average income (Murphey, &
Gause,1974). However, the marketing strategies of the company has currently been facing a
myriad of problems in the immediate and remote environments. These problems include weak
earning, low sales, weak guidance, union talk among others (Pestleanalysis, 2016). However,
some of these problems arise from political relation, inflation rate, consumer behaviors in terms
of travel habits and salary level (Fei & Wenbin, 2012; Jasper, 2019; Anasta and Christo 2019).
Ford also employed differentiated targeting strategies for the provision of its products. The
company target market was formally middle and high income classes. Recently, the company has
designed a new affordable model for male and female teenagers within 18years to 25years of age
with average income (Murphey, & Gause,1974). However, the marketing strategies of the
company has currently been facing a myriad of problems in the immediate and remote
environments. These problems include weak earning, low sales, weak guidance, union talk
among others (Pestleanalysis, 2016). However, some of these problems arise from political
relation, inflation rate, consumer behaviors in terms of travel habits and salary level (Fei &
Wenbin, 2012; Jasper, 2019; Anasta and Christo 2019).
Furthermore, with the use of PESTEL analysis of the company remote environment.
Government global trade agreements has given Ford opportunity to enter foreign market.
Similarly, improvement of transport infrastructure in developing worlds has also contribute
increase in vehicles demand in this countries. The varying economy conditions of the home and
demanding has influenced Ford market; economy growth is an opportunity to the firm while
strengthening of US dollars is a threat as this reduce profit margin owing to the production of the
firm raw materials and automotive parts in US. The increasing wealth gap has constituted a
threat to Ford’s Lincoln automobile that market the company luxury products. The company has
been growing through the provision of products that address the increasing demand for hybrid
and electric automobiles. However, based on ecological component, Ford provided products that
are climate friendly through low carbon generation products. The company also sustains its
business through adherence to various safety, intellectual property and environmental protection
regulations (Murphey, & Gause,1974). Also, Table 1 presents the SWOT analysis of the current
marketing situation of Ford company.

APPENDIX II
SWOT/TOWS Analysis Proforma
Strength (Internal)
i. Strong brand name
ii. It has the biggest market in US and
two large markets in Europe and
China
iii. It has solid market position in the
world.
iv. Strong research and development,
manufacturing and automobile
marketing.
v. Competitors are less focusing in
production of vans, truck and Ford has
advantages here.it has a good
reputation and customers’ trust
Weakness(Internal)
i. Inability production capabilities
compared to competitors like Toyota
and general motors are performing
better than Ford.
ii. Ford is facing poor reputation in
America due to its comparison with
Europeans and Japanese’s companies
iii. High reposition of dependent on
European and US market for the
promotion and the sales of its
products.
iv. Presence of well-established
automobile competitors whose
customer will never change brand
Opportunity (External)
i. Increase in sales profitability of the
company, due to it being a new
automotive technology could result in
increase in demand for new models
and sales.
ii. Increase in the petrol or diesel prices,
in unstable economy can give the firm
advantage in the areas of high demand
of alternative cars such as C-Max
Electric car and Fusion Hybrid. Which
are independent of Petrol/diesel
iii. Ford can get cost investment
advantage through high investment in
advertisement, marketing, and rental
service
Threat (External)
i. Ford highest threat is the expansion of
the German and Japanese companies
in North America automobile market
ii. Adaptation of electric vehicles by the
competitors has lowered Ford profit
(Kassab,2015)
iii. Reduction in the prices of Petrol could
reduce demand of alternative vehicles
produced by the company
iv. Presence of Uber services can result in
reduction in the market of cars and its
financing