Ford Explorer Marketing Research: Analysis of Canadian Market Trends

This report presents a market research analysis of the Ford Explorer in the Canadian market. It begins with an executive summary and introduction that highlights the importance of market research in launching a product. The report delves into key internal factors such as customer loyalty, profitability, brand reputation, and market share, providing a detailed analysis of their positive and negative impacts. It also examines external trends, including technological changes, demographic shifts, and economic factors, assessing their influence on the product. A SWOT analysis is conducted to identify the strengths, weaknesses, opportunities, and threats associated with the Ford Explorer. The report provides recommendations based on SMART objectives to enhance brand reputation and increase market share. Furthermore, it evaluates the competitive environment, comparing the Ford Explorer to its competitors in terms of product type, price, place, and promotion. The report concludes with a discussion on global citizenship and equity, emphasizing sustainability and social responsibility. The report uses references to support its findings and recommendations.

MARKETING
RESEARCH

EXECUTIVE SUMMARY
Market research is an important aspect to be considered before offering a product in the
market. In the report there is an analysis of current trend in the market both internally and
externally which affect the current marketing strategy. By doing these analysis company will
form various marketing strategy. Report includes analysis of SWOT, external and competitors
analysis.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
1. KEY INTERNAL SOURCES ....................................................................................................1
A) Analysis of internal factor......................................................................................................1
B) Trends and changes occurring in the external environment...................................................2
C) SWOT analysis.......................................................................................................................3
D) Recommendations...................................................................................................................3
2. COMPETITIVE ENVIRONMENT ............................................................................................4
3. GLOBAL CITIZENSHIP AND EQUITY ..................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Market research refers to collecting data, analysing and interpreting it so that current
market trends is identified which will be useful in introducing new product (Gal and Hijzen,
2016). Market research is done to collect information about the product, demand in market and
customer perception. Present report contains market research for Ford's new product “Ford
explorer” in the Canadian market. Ford motor was introduced in 1904 by Henry Ford, the report
will include various marketing strategy used for Ford explorer to sustain in the Canadian market.
1. KEY INTERNAL SOURCES
A) Analysis of internal factor
Internal Factor trend Positive Negative
Customer loyalty and
satisfaction
Demand of car was
increased as it is a 7
seater car which is
mostly preferred by
families. Customers are
satisfied with the car.
Due to change in
interior there were some
negative comments and
customers were
dissatisfied.
Profitability Company earned overall
profit of $2.52 billion in
2018 and Ford explorer
was also profitable.
As company has
restructured the interior,
there was a negative
effect on the
profitability.
Brand reputation Company has goof brand
reputation because of its
products and customer
loyalty. Ford also
provides cars for all
demographic groups
which has increased its
brand image.
Competitors has made
its performance weak in
the global market thus.
Decreasing the brand
image to some extent.
Market share Ford explorer has shown
growth in the market as
it is mostly preferred by
families. Company has
increased its market
share by attracting family
people.
Ford explorer has
decreased its market
share globally because
of tough competition.
Table 1: Internal analysis
(Source: Gal and Hijzen, 2016)
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B) Trends and changes occurring in the external environment
External
trends
Positive Negative Explanation
Technological
change
Company is
investing in the
new technologies
and installed
hybrid cars with
low fuel
consumption in
its new product.
Constantly
adopting
technology is
very costly and
time consuming,
also it has
created
competition in
the market.
New
technologies are
supporting
enough to
compete in the
market but
implementing it
is costly.
Demographic
change
New product of
Ford is produced
by taking care of
family people. It
is a 7 seat car
which will be
suitable for
family. It will be
acceptable by
these
demographic
groups in
Canadian market.
Due to change in
the demographic
factor company
need to change
or innovate its
products which
may increase its
production cost
(Song, Sun and
Jin, 2017).
Ford has
considered the
concern of
family people
and produced car
which is hybrid
and suitable for
them.
Economical
change
GDP of an
economy decides
the purchasing
power of the
company. The
GDP of Canada
is enough to
purchase the
product.
Competitors are
selling similar
products which
has reduces the
selling of the
brand.
Company need to
enhance its
products by
innovating and
satisfying
customers.
Table 2: Trends in external environment
(Source: PESTEL analysis, 2019)
Explanation
It is necessary to analyse both internal and external environment, it will be beneficial in
formulating marketing strategy to gain competitive advantage. Internal and external analysis
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helps company in finding the current trends in the market and use this information in producing
product and marketing it.
C) SWOT analysis
Strengths Weakness
 Ford has strong brand image and global
recognition because of its marketing
strategy.
 Company has kept demographics group
in mind and produced the new product.
 Research and development has
benefited company in gaining
diversified products with innovation
(Eizenberg and Salvo, 2015).
 Due to product recall in 2016, company
has faced decrease in the brand image
and profitability.
 Increasing competition has decreased
the sale of the product because there are
various other similar products
available.
Opportunities Threats
 Company has an opportunity to
increase its customer base by offering
hybrid and low fuel consumption
products.
 Through digital marketing company is
able to reduce its marketing cost.
 There is a threat of increase in the price
of raw materials.
 Environmental regulations force
company to engage in producing low
fuel consumption car and protect
environment.
Table 3: SWOT analysis
(Source: SWOT analysis, 2019)
D) Recommendations
SMART objectives
Goals State objective
Enhance brand
reputation
 Company should invest in research and
development more.
 Company should collect feedback from
customers in order to innovate its products
and maintain customer loyalty.
 Company should provide differentiation
products so that it sustain in the market and
gain competitive advantage against its
competitors.
Increase market
share
 Company should increase customer
engagement and provide affordable products
than its competitors.
 Company should build relations with suppliers
globally and purchase products at lower cost
in order to increase market share (Canonico
3

and et.al., 2018).
2. COMPETITIVE ENVIRONMENT
Competitor
type
Product Price Place Promotion
Form Ford explorer
is a SUV and
it is spacious,
it has 7
passenger
sitting.
Canadian
dollar
In global
market
The
advertisement
has helped
company in
creating
awareness
about the
brand in the
industry.
Category The ford
explorer has
various
models.
Competitive
pricing
Business Promotion
will be
diversified.
Generic Ford explorer
is a hybrid
car with 400
horsepower,
speed of 143
Mph and 415
Lb-ft. Of
torque. It is a
7 seater car.
- The product
will be
originated
from Canada
and then it
will expand
in different
markets.
Product will
be globally
recognised
through
various forms
of marketing
such as print
media and
social media.
Budget - The basic
model of
Ford
explorer
starts at
$36,675.
price of the
car vary
according to
the model.
- Through
social media
marketing
company is
able to reduce
its marketing
cost.
Table 4: Competitors environment
(Source: Canonico and et.al., 2018)
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3. GLOBAL CITIZENSHIP AND EQUITY
 Supporting sustainability: To sustain in the market company need to maintain the
standards of quality and protect the environment. Company need to consider environment
and then produce its products which are hybrid and low fuel consumption. To sustain in
the market company need to considers environmental standards (Canonico and et.al.,
2018).
 Social responsibility: As a global citizen company should continuously improve and
innovate its products by use of technology and offer products at affordable price.
Company should also consider demographics group in producing the product.
 Evidence: Company is taking steps to protect environment and has produce hybrid cars
which consume less fuel and do not pollute environment (Song, Sun and Jin, 2017).
CONCLUSION
From the research it is concluded that Ford need to consider internal, external and
competitors environment and then make marketing strategies. To sustain in the market company
need to maintain the environment standards and increase its market share by building brand
reputation.
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REFERENCES
Books and Journals
Gal, P. N. and Hijzen, A., 2016. The short-term impact of product market reforms: A cross-
country firm-level analysis. International Monetary Fund.
Phadermrod, B., Crowder, R. M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews. 80. pp.276-
289.
Eizenberg, A. and Salvo, A., 2015. The rise of fringe competitors in the wake of an emerging
middle class: An empirical analysis. American Economic Journal: Applied Economics.
7(3). pp.85-122.
Canonico, P. and et.al., 2018. Dealing with knowledge in a product development setting: an
empirical analysis in the automotive industry. Knowledge Management Research &
Practice. 16(1). pp.126-133.
Online
PESTEL analysis. 2019. [Online]. Available through : <https://notesmatic.com/2017/03/ford-
pestel-analysis/ >.
SWOT analysis. 2019. [Online]. Available through : <https://bstrategyhub.com/swot-analysis-of-
ford-2019-ford-swot-analysis/ >.
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