FORD MOTOR COMPANY Anood Baja Bruce Chris Miriam

FORD MOTOR COMPANY Anood Baja Bruce Chris Miriam

OVERVIEW / HISTORY / MARKET

COMPANY INFO Vision: “ To become the world’s leading consumer company for auto products and services” Mission: “ Producing vehicles that meet the demands of our customers in terms of quality and effectiveness” Our slogan: “ FORD FEEL” Brand: Ford, Mercury, Mazda, Jaguar, Volvo, Lincoln, Land Rover, Aston Martin

Founded in 1903 in Dearborn 1908- Model T & first moving assembly line 1938- lost market share to rivals 1970- Oil crisis 1987- Luxury cars & buying of Aston Martin 1998- the era of W. Clay Ford Jr. 1999- Buying of Volvo brand; 6.45 billion 2004- Introduction of Ford Escape Hybrid 2005- Redesigned Mustang 2006- “Way Forwad” Plan: restructuring plan to align production capacity and fixed costs HISTORY

External Environment Market Fragmentation and Segment Shifts Brand Clarity Products Quality Market Share Cost Structure NORTH AMERICA BUSINESS CHALLENGES

PRODUCT LINEUP / OVERALL MARKETING

Product Line Length SUVs Crossovers Pickups Sedans Coupes/ Convertibles Ford 4 7* 3 7* 2 Lincoln 1 1 4 Mercury 1 2* Mazda 1 1 Volvo 1 Jaguar Land Rover Aston Martin 3 1 Wagons/Vans 3 1 1 2 6 3 1 3 2 1 1 3 5 * includes Hybrid Vehicles Product Length / Width / Depth Product – Mix - Depth

Product Line Number of different lines per product type.

Implementing Cluster Marketing Create distinctive values to attract the different generational segments Capture our customers in their youth and transfer them onto our next product through out their life cycle Eliminate overlapped products to help customers easily transfer their identify needs with our Brand Value. Clearly signal to our Customers that our product is of top quality and trendy by promoting the Shelby Cobra GT500 among our most value recognized vehicles. At the same time reducing the Auto Lines that bring no Brand recognition, like the Montego. Customer Focus Ford’s Marketing Strategy

PRODUCT / PRICE

PRODUCT Removing duplicate models – Reduce product mix – Platform Sharing/Innovation Customer Relationship Management – Gen Y customer – Small Car Model – Family life cycle- “Life stages” – “Ford Feel” – Lifetime Value

Customers value Vehicle Quality & Image – Getting a good deal for the money – “Ford Feel” – Personal/Digital synergy – Differential Pricing Gen Y customer & Digital Mega-trends PRICE Restructuring Cost Cuts – Leveraging assets – Removing poorly performing models

PLACE / PROMOTION

PLACE Dealerships are our lifeblood – We bring a tremendous of amount of access and experience (history) Train dealership staff to support Ford Feel / Technology, place a high emphasis on customer service and satisfaction – Accountability to customer satisfaction scores and goals/rewards for repeat purchases through life-stages Sponsorship of local car clubs and activities are dealerships Migrating other brands into Ford dealerships where it makes sense – The more choices you offer a car shopper in a category, the more likely they are to buy (i.e. Mercury)

PROMOTION Ford Feel is our umbrella campaign / Ford Brand Media mix will continue with traditional media but with additions – Heavy link between traditional media and online (push to website) – Viral Marketing for new product launches (websites to challenge visitors to solve the puzzle) – Online world advertising (Second Life) – Integration of lifestyle advertising into life-stage concept Customer involvement / product champions (car groups / forums) Pushing our design image! Pushing our dealership network, satisfaction Continue sponsorships

CRM

CUSTOMER RELATIONSHIP MANAGEMENT The objective: Acquiring and retaining the right customer – Reducing the rate of customer defection – Increasing the longevity of the customer relationship Statistical Analysis System (SAS) platform fuels CRM programs – High customer satisfaction – Easy to data mining and info analysis – Supports a variety of functions, including reporting and customer life-cycle analysis Building loyalty – Proactive marketing – Advocates

COMPETITION / GLOBALIZATION

COMPETITION

(DISTINCTIVENESS/COMMUNI CABILITY) The desirability of Ford’s PODs are addressed through their distinctiveness – PODs Availability of dealerships Brand name History of expertise and innovation – Ford must communicate to their consumers why and how their vehicles will deliver specific benefits.

– Standard Crown Victorias are popular amongst Kuwaiti and Saudi families since they are purchased for their chauffeurs. Price point is economical; 20,000 – They like rear wheel drive vehicles because they are easier to repair. – They accommodate for large families and tendency to buy in bulk Hybrids do not appeal to the Gulf consumers – Independent mechanics are unfamiliar with the technology – Price of fuel is cheap – They don’t like change Since there aren’t any taxes, leasing is not appealing and ownership is always preferred GLOBALIZATION Gulf consumers are loyal to Ford’s V8, rear-wheel drive sedans. (Every household has one)

SUMMARY