Marketing Strategies for Ford Motors: A Comprehensive Analysis

This report provides a comprehensive analysis of Ford Motor Company's marketing strategies. It begins with an executive summary and introduction, then delves into SWOT and PESTLE analyses to assess Ford's internal strengths and weaknesses, as well as external opportunities and threats. Porter's Five Forces is applied to understand the competitive landscape of the automobile industry. The report then examines market segmentation, targeting, and positioning strategies, followed by the setting of marketing objectives based on the SMART framework. Finally, it analyzes the marketing mix (4Ps) for Ford, including product, price, place, and promotion, to recommend strategies for enhancing performance and profitability. The report concludes with a summary of findings and references.

An Assignment on
Marketing strategies development for Ford Motors Company
Ltd.

Executive Summary
The versatile motor industry is facing recession in business and production process due to
economic downfall around the world. The assignment is about Ford Motor Company’s business
process and macro &micro environment analysis using SWOT analysis and PESTLE analysis to
define the next level marketing objectives and performance in global segmented markets.
Porter’s five forces analysis is done for showing current automobile industry performance,
business barriers in USA and global market.
The market segmentation, targeting and positioning of products strategies based on customer
preference is a pre-condition to compete effectively with rivals and get competitive advantages.
The current market trends and conditions are a reflection of how better Ford is satisfying
customer’s desire for cars specially building their own cars. Also, in the last phase trying to
recommend marketing strategies focused on 4 P’s based on SMART marketing objectives for
Ford motors.
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Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
SWOT analysis............................................................................................................................................5
Strengths of Ford.....................................................................................................................................6
Weaknesses of Ford.................................................................................................................................7
Opportunities of Ford..............................................................................................................................7
Threats of Ford........................................................................................................................................7
PESLTE analysis.........................................................................................................................................7
Political influences..................................................................................................................................8
Economic influences...............................................................................................................................8
Socio-cultural influences.........................................................................................................................9
Technological influence..........................................................................................................................9
Legal influence........................................................................................................................................9
Environmental influences........................................................................................................................9
Porter’s five forces analysis for Ford Motors ltd.......................................................................................10
Bargaining power of suppliers:..............................................................................................................10
Bargaining power of buyers:.................................................................................................................11
Barriers to entry:....................................................................................................................................11
Threats of substitutes:............................................................................................................................11
Rivalry among existing competitors:.....................................................................................................11
Current industry and competitor analysis of Ford......................................................................................11
Market segmentation strategies for Ford Motors Limited..........................................................................12
Geographic segmentation......................................................................................................................13
Demographic segmentation...................................................................................................................13
Behavioral segmentation.......................................................................................................................13
Psychographic segmentation.................................................................................................................13
Targeting the segmented market and positioning the brands of Ford:.......................................................14
Setting marketing objectives based on SMART objective tool to enhance performance and profitability of
Ford...........................................................................................................................................................15
Marketing mix analysis based on 4 p’s for Ford Motors............................................................................16
Product in marketing mix of Ford Motors.............................................................................................16
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Price in marketing mix for Ford Motors................................................................................................16
Place in marketing mix of Ford Motors.................................................................................................16
Promotion in marketing mix of Ford motors.........................................................................................17
Conclusion.................................................................................................................................................17
References.................................................................................................................................................18
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Introduction
Marketing strategies are the ways to set better products and services promotional and marketing
strategies attaining competitive advantages in the industry. The ultimate future of business
depends on how fruitfully and effectively the marketing mechanisms are being recognized and
implemented (Kaleka, and Morgan, 2017). Strategic marketing planning consists of three defined
phases: strategic analysis, formulating planning and implementation. In strategic analysis level
the organization can objectively analysis the current performance and position, also develops
view about future trends of industry via forecasting and assumptions about future industry trends.
To formulate strategies organizations are giving emphasis on building relationship with
customers and other businesses. Cravens, and Piercy, (2013) stated that better strategies
positioned the products effectively and give the company a competitive advantage. In
implementing the strategies businesses are often focused on every elements of marketing mix
and compliance issues with effective control and monitoring systems.
Here, in this assignment going to discuss about Ford Motor Company limited, a American
automaker incorporated in June, 1903 and named after Henry Ford, the founder. The
multinational automaker is manufacturing vehicles for commercial and private purpose with
good reputation in size, quality, parts strengths, passion, vitality, movement and comfort driving
desires. As a major stakeholders in automobile industry it has other rivals in international market
like Toyota Motor Corporation, Tata group and General Motors limited company. In this
increased competitive business environment and culture, Ford has to reach target customer with
sustainable marketing approach (Hamilton, and Webster, 2009). With that kinds of approach and
effective supply chain management process, Ford can attain reputation in automobile industry.
SWOT analysis
SWOT is an internal process system for collecting and analyzing information related with
strengths, weaknesses, opportunities and threats for taking appropriate marketing strategic
decisions and do marketing effectively (Zhikang, 2017). SWOT analysis for Ford helps it to
know about own operational processes and external environmental impact on business. The
graphical presentation of Ford’s SWOT analysis is as follows:
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Figure -01 SWOT analysis for Ford Motors Limited
(Soni, and Chandak, 2017)
Now, trying to focus on details analysis on SWOT for Ford Motors for its better performance in
international markets and intense responses of car loving people.
Strengths of Ford
Strengths are called the core competences a company can get with advantages to fulfill the
desires and needs of its target customers. Ford is well-known automobile brand globally with its
effectively marketing and promotional strategies. Ford have greater customer loyalty through its
reputation in quality products and services, efficient distribution channels and operations systems
(Gurbuz, 2018). For giving customers a wide variety of commercial vehicles and private cars,
Ford is becoming more complete and constantly focused on monitoring the standardized
production procedures and invested in utilizing the alternative and renewable energy sources.
Another strength Ford have, that is strong relationship with employees as Ford concerns about
offering employees competitive wages and better working environment, also recruits skilled and
qualified employees at all its operational aspects.
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Economic slowdown in USA
rising HR and production costs
intensed competitions with vital rivals
like general motors
Increased demands of fuel efficient
vehicles
hybrid and electronics outlooked products
huge opporunities in emerging markets
Declining market share in automobile
industry
declining operational profit
Brand reputation and portfolio of
qualityful products
widespread gepgraphical presence
Strengths Weaknesses
ThreatsOpportunities

Weaknesses of Ford
Weaknesses means the barriers a business company faces to formulate and implement its
marketing plans and strategies. Due to products recalls Ford’s brand value was harmed and it
faced a large cost to with negative impact on sales. Consequently, Ford has no effective cost and
production management systems to overcome the losses and come with innovative and designed
new car models. Ford’s management committee also losses their focus on products line
performance as it expended business in many diversified geographical areas and facing recline in
sales due to economic recession (Phadermrod, and et al 2016).
Opportunities of Ford
The favorable conditions of business environmental that gives rewards and benefits to a
company if it do activities properly. Ford can extend more operational divisions focusing on
producing cars that can run on using electricity outside of other petroleum and diesel energies
having opportunities to be increased in future. Also, Ford automobile is producing another fuel
efficient cars that are run on renewable energies like bio fuels and solar power. Ford is getting a
chance to become more environment friendly company with its hybrid engines as these are more
fuel efficient and less pollute compared with conventional gasoline and diesel engines
(Stankovic, and Djukic, 2015). Producing cars running on renewable energies and medium costs
make Ford cars more affordable and attractive to middle income people.
Threats of Ford
Threats means the barriers that prevents a company to reach its business milestones (Kolbina,
2015). As the costs of diesel and petroleum are increasing the demand for electric driven cars are
highly increasing. Ford’s development, market share and market growth are also influenced by
competitors high-growth performance. If rivals have new cost friendly production process,
technological innovation that might be threats for Ford automaker.
PESLTE analysis
There are several external factors that might be influential to business and organizations need to
do analysis of all these factors for effective marketing strategies design and implementation
(Widya Yudha, and et al 2018). PESLTE analysis includes economic, political, social, legal,
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technological and ethical issues that influence business performance and necessary to formulate
effective marketing strategies for Ford. The analysis is as follows:
Figure – 02 PESTLE analysis for Ford Motors Limited.
(Widya Yudha, and et al 2018).
Political influences
In 2013 Ford with other united auto workers refused to accept the congressional bills on raising
the average fuel consumption standards as it is harmful for minivan, pickup and SUV industry.
Political factors are more concern about environment friendly eco-production systems of car
manufacturing in daily production process of ford (Moro Visconti, 2014). Not only Ford Motors
the entire industry is following the following government rules and regulations to reduce
environment pollution. Also, government is unwilling towards total automated manufacturing
systems of Ford as it will take up jobs of local people.
Economic influences
Domestic economic conditions play a significant role to determine the demand and purchase rate
of vehicle as it is a luxurious product. At the economic propensity time people are more willing
to spend money on luxurious products like house or car and automobile companies are
expending their products during this stage (Atighechian, and et al 2016). But the economic
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PESTLE
analysis
Political issues
Social issues
economic
issues
Technological
issues
Legal issues
Ethcial issues

recession cause decreased in people’s disposal income and they purchase things necessary for
daily life not house or cars. Also, economic recession causes increased unemployment rate in
USA.
Socio-cultural influences
Every organization should looking after the society where it is doing businesses. It should
improve infrastructure, employment opportunities and other aspects of society to ensure societal
betterment (Hamilton, and Webster, 2009). In the society, a person’s social status and influential
power is reviewed by the car brand they are using. Due to increasing celebrities, business icons
and other delicate Ford is receiving increased car production orders.
Technological influence
Technological advancements are imminent in automobile industry to become pioneers in
industry and competing with other rivals (Bujor, and Avsilcai, 2016). After Ford launching its
improved and eco-friendly engines in 2010 model, it also introduced more than 30 power train
actions in global markets. With technological advancement Ford is introducing convenient and
comfortable middle size cars designed by women for women to attract more women customers
(Atighechian, and et al 2016).
Legal influence
US government is more concern about environment friendly products and manufacturing
systems. As a response to social responsibilities Ford should come with producing hybrid and
electric engine cars running in renewable energies. Although in 2013 the gain on hybrid engine
cars selling isn’t significant but gradually people in individual and organizational level
understanding the importance of using eco-friendly cars.
Environmental influences
Ford motors was awarded by environment protection agency in 2007 and energy partner 2007 for
being year partner in energy management. Interestingly, Ford is the first automobile
manufacturing company achieved both awards in a row. Winning awards reflect that Ford is
following all regulations and roles of productions to enhance energy efficiency and reduce
greenhouse gas emissions.
Warner, (2010) mentioned that to effective responses in external environment Ford need to be
more convenient and well-organized internally.
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Porter’s five forces analysis for Ford Motors ltd.
In 1979, Michael Porter in Harvard Business School develops this five forces model to analysis
industry attractiveness and new product or business expansion profitability (Fung, 2014). The
model also analysis the competitive position, business intensity and market attractiveness of Ford
in the competitive automaker industry. Analyzing this five forces Ford can have better
understanding about its strengths, weaknesses and areas to improve and avoid. The graphical
presentation of porter’s five forces analysis for ford is as follows:
Figure – 03 Porter’s five forces analysis for Ford Motors Company Limited.
(Fung, 2014)
Bargaining power of suppliers:
The extent a supplier can influence the price of materials or supplies. Availability of suppliers
reduces the price other hand scarcity of supplies causes increase of prices (Amrina, and Firdaus,
2018). In Ford the effect of suppliers bargaining power is medium as switching cost is low, no
forward integration and high cost compared with other rivals.
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Rivalry among
existing
competitors
(HIGH)
Threats of
new entrants
(MEDIUM)
Bargaining
power of
buyers
(MEDIUM)
Threats of
new products
or services
(HIGH)
Bargaining
power of
suppliers
(MEDIUM)

Bargaining power of buyers:
The possibilities that buyers can influence the price of final products or services. If a large
numbers of buyer exist in the market both product switching and customer loyalty are low in the
industry (Önören, and et al 2017). Buyers power of bargaining is medium for Ford as people
invest at low volume in cars and usually don’t have purchase multiple cars. Also, customers have
some bargaining leverage with availability of substitutes.
Barriers to entry:
As the industry is enough established new firms are facing difficulty to enter into the industry
with high amount of primary costs at medium difficulty level (Amrina, and Firdaus, 2018).
Though, a numerous brands and models are available to customers to choice and switch their
current car brand.
Threats of substitutes:
Here, the threats of substitutes is very high as customers can choice among a lots of substitutes
products or services while they are indirectly determining the price of products though the
businesses are the price taker. Another reason is Company is dependent on customer loyalty
while customers have plenty of available car brands options (Önören, and et al 2017).
Rivalry among existing competitors:
In monopoly industry firm has full control over products prices and charges but in the
competitive automobile industry firms have very little control over the price of products or
services (Ansah, and Chinomona, 2017). Due to products differentiation among all rivals,
maturity stage of industry and growth of hybrid car market Ford is facing high rivalry among
existing automobile manufacturing competitors.
So, Porter’s five forces model usually analysis the main contributory factors to Ford’s
competitive edge and the impact to its competitors too.
Current industry and competitor analysis of Ford.
Ford is facing massive competition with all major rivals like Toyota, Audi, Nissan and General
Motors. The company is viewing the competitive industry condition as uncontrollable condition
and response in reactive and passive approach (Talaja, 2013). Ford is now focusing on setting
strong business plants to produce new model cars and brining to customers and market with
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efficiency and greater speed that ever done. Though Ford was facing a decreasing sales rate then
it introduced Ford Fiesta to attract ladies and young generations. Other hand, with hybrid engines
cars are becoming more fuel efficient and the automaker companies are appealing customers to
reduce gasoline and oil dependency and using cars that are eco-friendly. Gradually since 2013
people are showing their little interest to purchase hybrid cars and former Obama administration
was shown great efforts to prepare and implement roles and regulations for all automobile
companies. Ford is enjoying total sales since January 2010 while Toyota is facing products
recalls. So, it is an opportunity for Ford to retain the lost sales of Toyota and producing quality
products and serving reliable services (Chaston, 2013). Though Ford is primarily enjoying the
lost sales of Toyota, General Motors, Tata, Nissans are launching new model cars to convince
customers to switch their car brands.
Market segmentation strategies for Ford Motors Limited.
A process to divide the entire market into various groups and segments based on some specific
characteristics is called market segmentation. Market segmentation is beneficiary for product
producers as they can make custom marketing mix strategies for each segment and group to
attract more customers to purchase their products (Stankovic, and Djukic, 2015). Ford has a new
brand model named Ford Fiesta to attain the lost sales of Toyota and increase its market share in
global market. With available four market segmentation processes Ford can segment its customer
market for Ford Fiesta. A detail presentation is as follows:
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Market
segmentation
Geographic
segmentation
Demographic
segmentation
Behavioral
segmentation
Psychographic
segmentation