Marketing Strategy for Ford Motors in South America: SOSTAC Analysis

This report presents a marketing plan for Ford Motors' expansion into the South American market, employing the SOSTAC (Situation, Objectives, Strategy, Tactics, Action, Control) framework. The analysis begins with a situation analysis, utilizing PESTLE factors to assess the political, economic, social, technological, legal, and environmental landscape. Objectives include increasing online engagement, brand visibility, and market share in the competitive automotive sector. The strategy focuses on market development, customer-oriented pricing, and market analysis. Tactics involve standardization, adaptation, and a 'glocal' approach. The action phase outlines actionable measures, including workforce allocation and plant adjustments. Finally, the control phase emphasizes benchmarking and Key Performance Indicators (KPIs) to evaluate the plan's effectiveness, including consumer response and financial performance. The report highlights Ford's marketing mix, encompassing product, price, place, and promotion strategies, to achieve successful market penetration and sustainable growth in South America.

Marketing

Table of Contents
TASK 1............................................................................................................................................3
SITUATION ANALYSIS ..........................................................................................................3
OBJECTIVES.............................................................................................................................4
TASK 2............................................................................................................................................4
STRATEGY ..............................................................................................................................4
TACTICS ...................................................................................................................................6
TASK 3............................................................................................................................................6
ACTION......................................................................................................................................6
CONTROL..................................................................................................................................7
REFERENCES................................................................................................................................9

TASK 1
SOSTAC Framework: This is an model introduced by P.R Smith in 1990s. SOSTAC is
an acronym that stands for situation, objectives, strategy, tactics, action and control (Aluoch,
2017). This framework is helpful in the marketing planning of the company.
SITUATION ANALYSIS
Situation analysis is the process of analysing internal and external factors that might
affect company's business before introducing new or existing product in the market. PESTLE
Analysis is used by marking consultant to perform situation analysis of Ford motors in South
America:
Political: Ford motors is an American automotive company who is successfully operating
in North America but company is willing to expand in South America as well. America has a
very stable government which is an vital factor that may impact business of the company, so
company can easily expand it's business around the country. .
Economical: Post Brexit war Ford motors had to face a loss of estimated 1 billion but
company is financially strong so company recovered. America is an economically sustain
country so Ford Motors can easily plan it's expansion in South America. Economic growth in
America is slow but noticeable so Ford can grow it's business with growing economy.
Social: American population does not have a saving mindset but they like to invest in
auto-mobiles so this is an opportunity for company (Clark, 2017). Ford motors has set a
benchmark in the segment of middle range hybrid-electrical vehicles. America has a huge
wealth gap so middle range vehicles can increase company's sales.
Technological: American government has approved hybrid electrical vehicles to be
produced, use and sell all around nation and country has demand for such vehicles. Ford Motors
also produce hybrid electrical vehicles but it is not a big name in this segment as Tesla is a
prominent name in American electric auto-mobile section. This maybe a threat to company's
expansion in South America but company provides electric vehicle in a middles- class range so it
can be helpful in increasing sale.
Legal: American government has imposed intellectual property laws and Ford Motors
has implied this law in business which is beneficial for growth of company. There are several

safety regulations imposed worldwide so company can enhance design of their product according
to those safety standards.
Environmental : Global-warming has impacted climate very badly so company can use
this opportunity and provide products that reduce carbon-emission and increase sales. Oil is one
of the natural resources which can not be recycled and Ford Motors is introducing hybrid
electrical vehicles which can be run on electricity (Ho and Wang, 2020).
OBJECTIVES
Ford motors is doing impressively well in North America, now company has announced
it's expansion in South-America as well. Company has planned to introduce few existing
products of company in South-America which are doing well in other countries. Firm has
planned goals to achieve, which are described below.
 Company wants to engage more of South American population in company's online
services.
 Ford Motors is a big name in American auto-mobile industry but company is not
successfully operating in South-America so firm want to increase brand visibility there.
 Entity is working in auto-mobile industry and there are lots of competitors in South-
America to challenge company in this sector. Thus company wants to cover this country
to turn it's automotive business towards more sales and profit(Pedersen, 2021).
TASK 2
STRATEGY
Ford Motors is using various strategies to cover South-American market such as market
development strategy, pricing strategy, market analysis strategy etc.
 Company is using Market development strategy to expand it's business in South-
America. Market development strategy is helpful in company's growth. This
strategy helps in generating consumers for existing products of company in new
market. As firm wants to expand in South-America this strategy will help
company to find potential customers for current products of company. Ford
Motors is planning to introduce SUVs, pickup trucks and commercial vehicles in

the country. Market development strategy will help company to find interested
and potential customers for company's existing products.
 Ford motors follow customer-oriented pricing policy, competitor-oriented pricing
policy and premium pricing policy (He and Harris, 2020). Customer-oriented
pricing policy is based on what price customer is willing to pay so prices are fixed
according to that. Prices that are offered by competitor of company can also affect
prices of company's product that is called customer-oriented pricing policy.
Premium pricing policy of company is for premium products of company such as
Lincoln for elite customers of company.
 Market evaluation or analysis is done in this strategy for launching current or new
product in new market. Company will research and analyse South-American
market before investing in that market. This will help in better understanding of
market in various ways such as channel of distribution, competition in market,
promotion policies on trend. On the basis of analysing Ford will introduce in such
segments that will increase sales and profit-margin of company.
Marketing Mix of organsiation
Marketing mix is a combination of tactics and action which an organisation adopts for
promoting the brand or its offerings in market. In context to Ford, elements of marketing mix are
as follows:
Product: Through high technology along with diverse manufacturing plants, Ford have
given the globe certain number of products (Rust, 2020). Its first product was Model T and the
entity have come from long way while dealing in multiple cars such as Ford escape, Ford Ranger
and hance forth.
Price: Ford is a leading automakers across the globe and for reaching at the position
pricing strategies plays crucial role. The company have adopted market oriented pricing strategy
with the objective of devising prices which are suitable to conditions pertaining in market,
demand, consideration of competition and other factors.
Place: Manufacturing plants of Ford have been established in six of seven continents
having worldwide factories along with dealers. The company have existence at places of
countries including India, China, Turkey and many more.

Promotion: The entity have strong competitive marketing strategy so to build long
lasting relations with potential and prospective customers. Promotions in visual media such as
Television as well as Internet plays huge role in success. Along with this, Ford marketers have
adopted promotional strategies of print media and social media.
TACTICS
Tactics are are plan to enhance company's digital marketing. Now a new or existing
product of company will do in new market is based upon tactics used by company (Chernev,
2020). Company uses advertisement as it's main tactic to promote company's business. Place,
price, and product/service of the company are decided with the help of following approaches.
Standardisation: Company can perform a digital survey to find which commodity is
demanded frequently in market, so that firm can introduce that product/service in market to
expand company's business in new market. Ford Motors can find out what standard of product is
asked in market with help of marketing research. Company can provide a better standard of it's
product such as pickup trucks, SUVs and commercial vehicles in South-America and increase
profit margin.
Adaptation: Ford motors can adapt new technologies to improvise it's product and
services. Company can make available it's product to a place which is convenient for consumers.
Providing products to nearby place of customers can be helpful for customers and it will help in
increasing sales of this firm. If Ford Inc. will provide better services at it's outlets it can be
beneficial for both consumers of South-America and company itself.
Glocal: This word Glocal is a combination of global and local, it is used in business to
compare business activities globally and then implying them in local market. Ford can study
global prices of other competitor companies and based on that company can fix prices of auto
mobiles in South-America.
TASK 3
ACTION
Action refers to the procedure which should be done to execute tactics and what are the
actionable measures to achieve planned objectives. Ford Motors can frame policies and
strategies to cover South-American market. Actions should be taken to effectively imply and
work on those policies and strategies to improve company's business. Company can also use it's

workforce according to the need of plan or strategies (Grönroos, 2017). Which employee can be
best to perform the action and give best outcome in that particular action is also necessary part of
a action plan. Ford Motors can take various actionable measures to find out if tactics or policies
that are implied to cover South-American market are working properly or not. Company is
working on numerous business action plan for growth and success of firm in South-America.
Company is mostly putting it's focus on North America which is not good for company's
growth in other markets, so company will have to turn it's concentration to other potential
markets such as South America. Ford Motors is producing more cars in comparison to demand of
company's cars in market. FIRM is going to take an action regarding close down older plants of
company so that, excessive production of cars can be reduced. This will not only help in increase
company's savings but company can also focus on production of cars that have high demand in
South-American market with that budget. Managers of firm can discuss about effective action
plan that is needed for company's expansion in this country. An effective action plan not only
includes framing of strategies but appropriate implementation of those strategies or policies is
also needed. Operating management of firm should give information about how strategy or plan
is going to execute and what are devices that are going to be used to perform that. Thus company
should take all the actionable measures for effectiveness of strategies.
CONTROL
Final stage of SOSTAC is control which measures the results of applying all the tactics,
planning and strategies. In process of control company can measure the response of consumers
regarding the newly launched vehicles of Ford in South-American market. With help of control
company can get to know if predetermined goal of selling vehicles was achieved under budget or
not. What are the measures which should be taken to enhance the effectiveness of strategies
applied. Various tools are used by Ford motors for control Framework 2 of them are explained
below.
Benchmarking tool: This tool of controlling is used to evaluate and improve company's
policies, working strategies, action plans and procedures to attain objectives of company in best
way against pre decided standards. There are four types of benchmarking tools which are
external benchmarking, internal benchmarking, practice benchmarking, and performance
benchmarking.

KPI tool: Key Performance Indicator tools are instruments that are used in monitoring,
tracking and measuring Firm's actions to achieve it's goals. Sustainable business growth and
profit are depended upon performance of company. Various Key Performance Indicators are
used in indicating business performance such as client retention rate, average class attendance
and revenue per client.

REFERENCES
Books and Journals
Aluoch, L. D., 2017. Social media marketing and business growth of commercial banks in
Kenya (Doctoral dissertation, University of Nairobi).
Clark, E. G., 2017. Integrating consumer feedback into business marketing strategies.
Ho, C. W. and Wang, Y. B., 2020. Does Social Media Marketing and Brand Community Play the
Role in Building a Sustainable Digital Business Strategy?. Sustainability. 12(16).
p.6417.
Pedersen, C. L., 2021. Empathy‐based marketing. Psychology & Marketing. 38(3). pp.470-480.
He, H. and Harris, L., 2020. The impact of Covid-19 pandemic on corporate social responsibility
and marketing philosophy. Journal of Business Research. 116. pp.176-182.
Rust, R. T., 2020. The future of marketing. International Journal of Research in Marketing.
37(1). pp.15-26.
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Grönroos, C., 2017. Relationship marketing readiness: theoretical background and measurement
directions. Journal of Services Marketing.