Introduction To The Topic: Build and Manage Profitable Customer Relationship
Introduction To The Topic: Build and Manage Profitable Customer Relationship
Today’s society is warm with urbanization and demonstration effect. With a view
towards it, there are drastic changes coming up in all sectors even in the automobile
industries. The following information gives an insight about it.
In the present context the companies operate on the principle of natural selection –
“Survival Of The Fittest”. Only those companies will succeed which at best match to the
current environmental imperatives – those who can deliver what people are ready to buy.
But real marketing does not involve the art of selling what the manufacturers make.
Organizations gain market leadership by understanding consumer needs and finding
solutions that delight consumers. If customer value and satisfaction are absent, no
amount of promotion or selling can be compensate. Hence the aim of marketing is to
build and manage profitable customer relationship.
This is a part of the strategic marketing done by every company to achieve it
objectives and goals. To maximize the profits and longterm plans every organization has
to follow a strategic planning.
Marketing is much more than just an isolated business function – it is a philosophy
that guides the entire organization towards sensing, serving and satisfying consumer
needs. The marketing department cannot accomplish the company’s customer
relationship-building goals by itself. It must partner closely with other departments in the
company and with other organization throughout its entire value – delivery network to
provide superior customer value and satisfaction. Thus marketing calls upon everyone in
the organization to “think customer” and to do all they can to help build and manage
profitable customer relationship. Marketing is all around us, and we need to know that it is
not only used by manufacturing companies, wholesaler and retailers, but also by all kinds
of individuals and organizations
There are four major, powerful themes that go to the heart of modern marketing
theory and practice, they are:
1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS.
2. BUILDING AND MANAGING STRONG BRANDS.
3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE.
4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE.
[1]
“Marketing is a social and managerial process whereby individual and groups
obtain what they need and want through creating and exchanging products and value
with others.”
“Marketing management is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals.”
“Marketing offers some combination of products, services, information, or
experiences offered to a market to satisfy a need or want”
Marketing is an orderly and insightful process for thinking about and planning for
markets. The process starts with researching the market place to understand its
dynamics. The marketer uses research methodologies to identify opportunities, that is, to
find individuals all groups of people with unmeet needs or latent interest in some products
or service.
The marketing process consists of the following:
1. Analyzing marketing opportunities.
2. Developing marketing strategies.
3. Planning marketing programs
4. Managing the marketing efforts.
Before taking any decision and achieving the goals, it has to make analysis of
what to do, how to do, when to do, where to do and who is to do it. This is nothing but
strategic planning. Goals indicate what a business units wants to achieve whereas
strategy is how to get there.
Marketing strategies in simple terms are the complete and unbeatable plans
designed specifically for attaining the marketing objectives of the firm. Marketing can
be called as a game plan for achieving its goals. Strategy choice will depend on
whether the firm or the marketer plays the following roles:
Market leader
A challenger
A follower
A nicher
The identification of objectives, both in quantitative and qualitative terms, is an
essential backdrop to strategy formulation. Goals have a quality and time frame attached
to them. These are typically spelt out in terms of financial return, market share, market
presence, etc.
[2]
Thus, the concept of market oriented strategic planning arises with the link between
the products the link between the products the manufacturer is dealing in and the market
conditions. In this direction, our study deals only with the marketing strategies i.e.
promotional strategies of the Ford automotives.
[3]
INTRODUCTION TO AUTOMOBILE INDUSTRY
One of the fastest growing industries in the world is automobile industry. This
automobile industries even has its influence on the Indian market. Probably automobile
industries occupy a large market share in the worlds market as well as in the Indian
market. Nearly 18% of the total national income is being incurred from the automobile
industry. From this we can estimate how important is the automobile industry in the
improvement of GDP of a country. In India automobile industry has a growth rate is at the
average of 10-12%.
[4]
them were in for a shock as Indian customers rejected their product. Indian customers
refused to allow the glitter of prestigious brands blind them to the outdated and overpriced
products they were offered. The Indian consumer wanted super value, and rewarded the
brands that delivered it, handsomely. Hyundai and Maruthi delivered, and profited.
The period also saw the emergence of the Indian players like Tata Motors and
Mahindra & Mahindra. They rose to the challenge of the MNC’s and responded brilliantly
with the Indica and the Scorpio. This was ironically due to the license raj that forced
Indian carmakers to be innovative and develop products frugally. India’s frugal
engineering skill has now caught the world’s imagination, and an increasing number of
carmakers are preparing to setup major capacities here.
India is changing. And changing fast. It’s moving forward. India’s largest-selling
car is not its cheapest car, the 800. It is the Alto. People’s aspirations are rising and so
are their mistakes, have got their finger on the pulse of the market. Get the right product
and the rewards are handsome.
The Indian auto industry is today bubbling with promise and confidence. It’s been a
long journey but to see where the Indian car industry is going. We have to see where it
has been.
[5]
world raced on ahead. It would take nearly 50 years before the Indian auto industry could
catch up with the rest of the world again.
BROADBANDING ERA:
In January 1985, the government announced its famous ‘broad banding’ policy
which gave new licenses to brad groups of automotive products such as two and four-
wheeled vehicles.
Through a liberal move, the licensing system was very much intact. A
manufacturer had to submit a phased-manufacturing programme to the Ministry of
Industry specifying the indigenization progress and allowing for almost complete
indigenization within five to seven years. The biggest hurdle was the foreign-exchange
clearance required for these projects. Except for MUL, which had direct access to policy-
makers, every other manufacturer still faced a series of obstacles.
Several new products were launched during this period. All three traditional
carmakers added new models to their ranges – Standard Motors returned to the car
business after 10 years, when in 1985 it introduced the Standard 2000, a Rover SD1 body
with the old two-litre Vanguard engine. HM bought in a 1972 Vauxhall Victor in 1985,
transplanted its ageing Ambassador engine into it and the Contessa was born.
[6]
THE CONTESSA YEARS:
The Hindustan Contessa, launched in 1982, was one of the few luxury cars
manufactured in the country in the 1980s and 1990s. It was based on the 1970s vintage
Vauxhall victor. While it was initially launched with the 1489cc engine found in the
Ambassador, the Contessa was soon given the Isuzu engines. There were three versions
of this car - 1.8GLX (Isuzu petrol), 2.0DLX (Isuzu diesel) and the rare 2.0T (Isuzu diesel,
turbo). The last Contessa rolled out in 2002, phased out by the demand for cheap
Japanese cars.
Some of the leading Indian auto players in Indian automobile industry are:
Premier,
Tata
Mahindra and Mahindra
Maruthi
Hindustan motors
Premier:
The story of premier is the story of one mans vision, Seth Walchand Hirachand. He
not only give India its first car factory but also the country’s first aircraft factory –
Hindustan Aeronautics Limited and the country’s first modern ship yard, Hindustan
Shipyard Limited
[7]
The arrival of FIAT:
In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the
tariff commission spelled out future for the auto industry – indigenize or get out.
Companies like Ford and GM, which had assembly operations in India, packed their bags
and went home. But fiat decided to stick it out and committed itself full-fledged
manufacture of the Millicento in 1954. In sep 1964, PAL and FIAT launched the Fiat 1100
DELITE in India.
The biggest customers for PAL’s were Bombay’s taxi drivers. The Padminies were
easy for maintenance in terms of spares and labour cost, low on running cost, easy to
drive and reasonably tough. It was everything that a taxi driver wants.
TATA Motors:
Established in 1945, Telco or the Tata Engineering and Locomotive Company, as
its full name suggests, started out making steam locomotives for the Indian Railways.
Telco’s tryst with vehicle manufacture came in 1945 when it signed a 15-year agreement
with Daimler-Benz AG of Germany to manufacture commercial vehicle. The director in
charge from the Tata side was Sumant Moolgaonkar.
This period was a shared birthing time for the Indian commercial vehicle industry –
Premier Automobiles in league with Chrysler, Hindustan Motors with General Motors and
Ashok Leyland with British Leyland – which all started truck production around the same
time.
Telco’s biggest triumph came in 1985 in the LCV segment. The Tata 407, a brand
new product from bumper to tail-light, was designed and marketed by Telco to take on the
technically superior Japanese products. The 407 immediately captured 70 per cent of the
market.
The TATA SUMO, launched in 1994, turned out to be the success story of the
decade. The Sumo was conceptually a brilliant vehicle. And it was also a product of the
government’s eccentric excise duty regulations at that time.
1998 was a landmark year for Tata – it launched the Tata Safari. Unlike the
Sierra, Estate and Sumo that were designed and developed using rudimentary manual
methods, the Safari was made with modern manufacturing and design processes to
ensure new-found levels of quality and to take the company a step closer to its ambition of
becoming a global carmaker.
[8]
Yet, the most important landmark of 1998 was not the Safari. On 30 December
1998, Tata officially launched the much-awaited Indica. 2001 also saw the company
exit its joint venture with Daimler-Benz. In 2002, Tata launched the Indigo saloon, based
on the Indica platform. On 29 July 2003, J R D Tata’s birth anniversary, the company was
renamed Tata Motors Limited. The Tata juggernaut continued to roll across the Indian
auto industry with the launch of the Indigo Marina in 2004.
The story starts some time in the 1940’s. Pandit Nehru has a dream of building a
modern, industrially advanced nation. And inspired by Nehru’s vision are two brothers,
Kailash Chandra Mahindra and Jagadish Chandra Mahindra. K.C.Mahindra during his
tenure in the United States had met Berney Roos. Roos was the inventor of rugged
‘General Purpose’ vehicle or the Jeep. The Jeep had earned reputation in the battle fields
of World War II. On October 2 nd 1945, the Mahindra brothers joined hands with Ghulam
Mohammed to set up a company to assemble American Willys Jeeps in India. The
collaboration between M&M and its original partner Kaiser Jeep Corporation and later
American Motor Corporation is for the phased manufacture of CJ3B Jeep. The company
is named Mahindra and Mohammed.
But after Independence Ghulam Mohammed migrates to Pakistan. With his
departure Mahindra & Mohammed is renamed by Mahindra & Mahindra in 13 th January
1948. The first vehicles are assembled in Mazaogaon in Bombay.
The first M&M built Willys Overland Jeep rolled out of the Mazaogaon plant on 3
June 1949. Five years later, in 1954, the first completely indigenous Jeep rolled out of the
factory floor. At one point 70 per cent of the sales were assured by army and government.
[9]
Scorpio launched in 2002, a completely indigenous product that took Mahindra &
Mahindra 6 long years to design and develop. The Scorpio has played a critical role in
changing the perception and brand image of the country. The 2.6 litre turbo-diesel engine
developed 109bhp. The Scorpio has been the vehicle of M&M’s change, from a utility
vehicle-maker to a lifestyle SUV manufacturer.
MARUTHI:
It began with the promise of being the ‘People’s Car’. The car never went into
production and the company went belly-up in 1977. Six years later, it rose like a phoenix
from the ashes and changed the Indian automotive sector forever. The company –
Maruthi Udyog Limited. The story of Maruthi dates back to the 1970’s. Indira Gandhi was
the prime minister of India. Her son, Sanjay Gandhi, envisioned the manufactured of an
indigenous cost-effective, low-maintenance compact car for the Indian middle-class. The
Cabinet passed a unanimous resolution for the development and production of a ‘People’s
Car’. The name of the car was chosen as ‘Maruti’.
[10]
Model Year of launching
Maruthi 800 1983
Maruthi Omni 1984
Maruthi Gypsy 1985
Maruthi 1000 1990
Maruthi Zen 1993
Maruthi Esteem 1994
Maruthi Baleno 1999
Maruthi Wagon R 1999
Maruthi Alto 2000
Maruthi Versa 2001
Maruthi Swift 2005
Maruthi Zen Estilo 2006
Maruthi SX4 2007
Maruthi Suzuki Grand Vitara 2007
The other cars which have their share in the Indian Auto Mobile
industry are:
The Indian auto industry has exploded in the last 14 years. And car markers are
learning some very hard truths. While the economic reforms process was kicked of f in
1991, it was only in 1993 that the automobile industry was finally delicensed and the
restrictions were removed.
Between 1993 and 95, government regulations limited a foreign company’s stake
to a maximum of 51 percent of the equity. Hence the only method of entry for an MNC
then was through a joint venture with a local partner. The most preferred partner was an
existing automaker. In 1994-95 saw the announcement of quite a few JV’s.
Premier and Peugeot to form PAL-Peugeot.
GM and CK Birla to form GM India.
Mercedes Benz and Tata Motors.
M&M and Ford to form Mahindra-Ford India.
In 1995, the government announced its decision to allow foreign auto companies
to enter with a 100% stake or wholly-owned subsidiaries. This changed the dynamics of
joint ventures in India.
[11]
The other automobile industries which play a crucial role in the Indian automobile industry
are:
Daewoo Motors India.
General Motors India
Mercedes-Benz
Hyundai Motors
Honda SIEL
Toyota
Skoda India
[12]
Ford Motor Company
Area served worldwide
Industry Automotive
Operating
US$-15.0 billion (2006)[1]
income
Ford Credit
Ford division
Divisions Lincoln
Mercury
Premier Automotive Group
[13]
Built for Life in Canada
Feel the difference
Make Everyday Exciting
Website www.ford.com
Ford Motor Company is an American multinational corporation and the world's third
largest automaker based on worldwide vehicle sales.
In 2006, Ford was the second-ranked automaker in the US with a 17.5% market
share, behind General Motors (24.6%) but ahead of Toyota (15.4%) and DaimlerChrysler
(14.4%). Ford was also the seventh-ranked American-based company in the 2007 Fortune
500 list, based on global revenues of $160.1 billion. In 2006, Ford produced about 6.6
million automobiles, and employed about 280,000 employees at about 100 plants and
facilities worldwide. In 2007, Ford had more quality awards from J.D Power than any other
automaker.
Ford has been one of the world's ten largest corporations by revenue and in 1999
ranked as one of the world's most profitable corporations, and the number two automaker
worldwide.
[14]
History
Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve
investors, most notably John Francis Dodge and Horace Elgin Dodge who would later
found the Dodge Brothers Motor Vehicle Company. During its early years, the company
produced just a few Model T's a day at its factory on Mack Avenue in Detroit, Michigan.
Groups of two or three men worked on each car from components made to order by other
companies. Henry Ford was 40 years old when he founded the Ford Motor Company,
which would go on to become one of the largest and most profitable companies in the
world, as well as being one of the few to survive the Great Depression. The largest family-
controlled company in the world, the Ford Motor Company has been in continuous family
control for over 100 years.
Corporate governance:
Members of the board as of early 2007 are: Chief Sir John Bond, Richard Manoogian,
Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO),
Edsel Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr., John
L. Thornton and William Clay Ford (Director Emeritus).[8]
The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG)
and Ford of Europe), Mark Fields (Executive Vice President, President [The Americas]),
Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice
President, President [International Operations]) and Michael E. Bannister (Group Vice
President; Chairman & CEO Ford Motor Credit).[9]. Paul Mascarenas (Vice President of
Engineering, The Americas Product Development)
[15]
FORD IN INDIA:
Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which
produced the Escort out of M&M Nashik plant. After meeting initial success, sales of the
Escort was finally replaced by the Ikon in 1999.
The Ikon marked a new beginning for Ford in India. It rolled out of the
Marajmalaingar plant near Chennai and by now, the company had parted ways with M&M
and was renamed Ford India Ltd in 1998. The Ikon was the first model by a multinational
to be developed specifically for India. Though it was based on the Fiesta, it was a unique
body style and was offered and was offered with an option of three engines, including a
diesel. The car was a big hit. The Ikon underwent several face-lifts and price cuts to keep
demand high. However, fresher competition and a reputation for high-maintenance saw
sales gradually decline. After the arrival of the modern and highly-capable Fiesta, another
made-for-India car, with state-of-the-art engines, the Ikon has been marginalized. The
Fiesta has picked up where the Ikon left and is selling well.
Though the Ikon and Fiesta have been the mainstays of Ford’s production in India,
the company has had limited success with other models. The Mondeo, launched in 2001,
was a very talented car by was simply not suited to Indian conditions and earned a
reputation for being exorbitant to maintain.
The Endeavour SUV was launched in early 2004 and has sold well for its niche.
The Endeavour has recently been upgraded in 2007 and this has boosted the appeal of
the big SUV. In 2004, Ford launched the Fusion, which has received a lukewarm
response though the recent diesel variant has perked up sales.
Fortune Ford is an authorized dealer for Ford India Limited, who are one of the
leading manufacturers of top quality cars in India, with many variants in the offering.
[16]
Fortune Ford is a 50:50% Joint Venture set up between two well known and
reputed families in Hyderabad, the Modis and the Babu Khans. Fortune Ford is a blend
of experience and youth. The experience and good will that Mr. Misbahuddin Babu Khan
and Mr. Pramod Modi enjoy blend very well with the youth and energy of the youngsters
Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world class Ford Dealership.
Fortune Ford markets and services the recently launched truly European Ford
Fiesta, the ever-popular Ford Ikon Flair, the No non-sense car Ford Fusion and the macho
SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales
outlet is located strategically at Somajiguda next to Eanadu. We have two service centers,
one at Chapel Road, Abids opposite Stanley College and other one at Fathebagh,
Santhnagar. These centrally located outlets provide convenient and easy access to both
the proud owners as well as prospective buyers. The workforce at Fortune Ford is
committed to excellence in serving all esteemed customers.
The Sales Team is made up of dedicated showroom and field executives who are
professionally trained by Ford India Limited. They are adept at guiding the customer
through the entire sales process right from assisting in the choice of model, colour and
features to lending a helping hand in providing attractive buyback options and also
arranging finance at competitive rates.
The Service Centre is armed with the state-of-the art equipment and is in-line with
Ford's exacting Global standards. The service team is technically qualified and trained to
analyze and provide solutions adhering to Quality Care, in order to satisfy even the most
demanding customers.
The Fortune Ford dealership maintains a high standard of excellence in sales and
services by sending its personnel for training on a regular basis to Ford India Limited, to
update them with the latest technological advances in the automotive sphere.
SHOWROOM
We have 5000 sft centrally air conditioned showroom, located in the heart of the city in
Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes
convenient for almost every one residing in and around Hyderabad and Secunderabad.
[17]
1. Very easy finance facility with in-house finance team to cater to your every car finance
requirements. All the leading finance counters are available like ICICI, HDFC, KOTAK,
SUNDARAM, SBI, etc.
2. Exchange offer for any of your used car. Free spot evaluation for any usedcar.
3. Professionally trained and courteous sales staff to take care of every relevant needs of
the customers.
4. Ford preferred insurance for cashless transactions in the event of claims. Special offers
on Insurance renewals. You can also renew your insurance by just making call to our
Service marketing help line 9848885962.
Showroom @ Somajiguda
6. A good stock of Ford genuine accessories to make your Ford ownership more delightful
and safe.
7. A well maintained fleet of test drive cars to give you the feel and experience the drive
dynamics on actual driving conditions before take the purchase decisions. You can call
our sales help line for test drive or fill the on-line test drive requisition form.
Significant milestones
The first Indian built Ford Escort rolled off the assembly line in 1996.
The Company was able to deliver Ford Escorts in seven major cities
simultaneously, in just a month after booking.
[18]
The Special Value Pack program was launched in 1997, with commemorative
'Freedom', followed by the petrol and diesel driven 'Anniversary'. Recent SVPs
have included the Orion, Alpha and Sport - E.
Ford Escort won the J D Power Award in India Quality Survey in 1997.
Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in the
Customer Satisfaction Survey.
QualityCare, Ford's branded service initiative, provides car owners with superior
services at its dealership countrywide.
The new, integrated manufacturing plant was dedicated in March 1999, where
FORD IKON is manufactured.
Ford India launched Ford Assured on April 24 2000, a new initiative to buy and sell
used cars of all makes.
On September 11, 2000. Ford India launched the Ford IKON SXi – the stylish ‘josh’
machine
2002
Ford India show cases a wide spectrum of exciting cars at the Auto Expo
Certified QS 9000: 1998, 3rd edition on March 21, 2002 Ford India received the QS
9000 award from TÜV Süddeutschland.
2003:
The New Ford Ikon NXT launched - The Next Level of Josh.
[19]
Adding Refinement to Josh- Ford India launches Ikon NXT ‘Finesse.’
Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study.
2007:
FORD Motor Company of Southern Africa achieves three wins and two seconds on
this year total economy run
DOE AWARDS FORD two grants for vehicle fuel efficiency research .
MANAGEMENT PROFILE:
[20]
Lucy is the Vice President of Finance and IT at Ford India. She took up this position in
May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India.
[21]
Fusion:
PRICE(lacs) 6.59
Engine:
Type 4 Cyl. In – Line, 16 – V DOHC
Construction All Aluminium Alloy
Fuel System SEFI
Displacement (cc) 1596
Compression Ratio 9.75:1
Max. Power (ps/rpm) 101 / 6500
Max. Torque (nm/pm) 146 / 3400
Emission Stage Bharat Stage III
Kerb Weight (Kg) 1143
[22]
Transmission Manual 5 Speed
MaxSpeed (Kmph) 174
Mileage 11.3
Endeavour:
Engine:
Type 2.5 litre, 4 Cylinder in-line, Turbocharged & inter-cooled diesel
Displacement (cc) 2499
Max. Power (PS/rpm) 116/3500
Max. Torque 28.5/2000
(kgm/rpm)
Ignition System Compression
Valve System SOHC, 12 Valves
Fuel System Indirect Injection Mechanical Pump
Emission Exhaust Gas Recirculation (EGR) Meeting Bharat Stage III
Norms
Kerb Weight (Kg) 1933/1958
Transmission Manual 5 Speed
MaxSpeed (Kmph) 142
Mileage 8.2
[23]
Fiesta:
Engine 1.4 EXI 1.6 ZXI 1.6 SXI 1.4EXI 1.4 ZXI 1.4 SXI
(TDCi) (TDCi) (TDCi)
Ikon:
Price(in lacs) 6.76 7.28 8.28 8.00 8.52 9.19
Type 4 Cylinder in-Line, 16 4 Cylinder in-Line, 8 Valve
PRICE(lacs) 5.50
Valve DOHC SOHC
Engine:
Construction
Type All-aluminium Alloy 4 Cylinder, 8-V SOHC, Rocam Petrol
FuelSystem
Fuel system SEFI SEFI High Pressure Common
Displacement (cc) 1299 Rail
Max. Power (ps/rpm) 70/5500
Displacem cc 1388 1596 1596 1399 1399 1399
Max. Torque (Nm/rpm) 105/2500
ent
Transmission Type 5 Speed Manual
Kerb Weight
Compression (Kg)9.75:1 9.75:1 9.75:1
Ratio 978 18:1 18:1 18:1
MaxSpeedps/rp
Max. (Kmph)
82/600 101/65 101/65148 68/400 68/400 68/400
Mileage 10.8
Power m 0 00 00 0 0 0
Output
Max. Nm/rp 127/40 146/34 146/34 160/20 160/20 160/20
Torque m 00 00 00 00 00 00
Emmision Bharat Stage III
Compliance
Transmission 5 Speed Manual
Type
Kerb Weight (Kg)
MaxSpeed (Kmph) 170/178
Mileage 14.75/13.6
Mondeo:
[24]
PRICE(lacs) 6.59
Engine:
Engine type 2.0L 16V DOHC Petrol
Displacement 1999 cc
Max. power 142.7 PS/6000 rpm
Max. torque 185 Nm/4500 rpm
Compression ratio 10:8:1
Valves 16V DOHC
Fuel injection Sequential electronic fuel injection
(SEFI)
Emission level Bharat Stage III
Construction All Aluminium Alloy
Transmission Type Ford MTX-75 manual 5-speed with
synchromesh
Kerb Weight (Kg)
MaxSpeed (Kmph) 200
Mileage 8.6
[25]
Marketing
Strategy and Target marketing Market planning
analysis process program development target market
promot-
Identifying ion
Opportunity Product Ultimate
analysis markets decisions to consumer
Promotional
final
decisions
buyer
Consumers
Businesses
Pricing Advertising
decisions Direct
Competitive marketing
Market
analysis Interactive
segmentation marketing
Sales
promotion
Publicity and
public
Channel of relations
distributio Personal
Target Selecting & n decisions selling Purchase
marketing Target
marketing
Promotion
to
trade
Positioning
through marketing Resellers
strategies
This input, in turn, provides the basis for the development of marketing strategies in
regard to product, pricing, distribution and promotion decisions. Each of these steps
requires a detailed analysis, since this plan serves as the road map to follow in achieving
marketing goals. Once the detailed market analysis has been completed and marketing
objectives have been established, each element in the market mix must contribute to a
comprehensive integrated marketing program. Of course, the promotional program
[26]
element must be combined with all other program elements in such a way as to achieve
maximum impact.
This implies that the essence of the marketing strategy of a firm for a given
product or brand can be grasped from the target market chosen, the way it is positioned
and how the marketing mix is organized. The target market shows to whom the unit
intends to sell the products; positioning and marketing mix together show how and using
what uniqueness or distinction, the unit intends to sell. The three together constitute the
marketing strategy platform of the given product.
Through segmentation, a firm divides the market into many segments. But all
these segments need not form its target market. Target market signifies only those
segments that it wants to adopt as its market. A selection is thus involved in it.
[27]
Marketing segmentation is a process that throws up not one but several market
segments. There may be segments that are sizeable and the ones that are not so
sizeable. There may be segments assuring immediate profits and the ones that call for
heavy investments in market development. There may also be segments that show great
potential, but display tough barriers to entry. As such, the question, which
segment/segments, the firm should select as its target market, assumes crucial
importance.
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Buyer behavior
Benefits segmentation
Volume of purchase segmentation
POSITIONING:
[28]
Positioning is a platform for the brand. It facilitates the brand to get through to the
target consumers.
It is defined as “the art and science of fitting the product or service to one or more
segments of the broad market in such a way as to set it meaningfully apart from
competition.”
Positioning is the act of fixing the locus of the product offer in the minds of the
target consumers. In positioning, the firm decides how and around what parameters, the
product offer has to be placed before the target consumers. The significance of product
positioning can be easily understood from David Ogilvy’s words: “The results of your
campaign depends less on how we write your advertising than on how your product is
positioned”.
[29]
PRODUCT POSITIONING AND BRAND POSITIONING:
It is essential to understand the relationship between products positioning and
brand positioning. Though in discussions, the two terms are synonymously and
interchangeable used, technically they are different.
Product positioning denotes the specific product category/product class in which
the given product is opting to compete. And brand positioning denotes the positioning of
the brand viz-a viz the competing brands in the chosen product category.
It is evident that for any product, before entering the market it has to sequentially
carry out the two exercises, product positioning and brand positioning. In the first step,
the product category where the new entrant should enter and compete, i.e. against what
all products it has to compete, has to be decided. In this step, it is the broad function that
the product is trying to serve that matters. This choice of product category will decide the
nature of the competition the product is going to face. Once product category positioning
is decided, the position for the new entrant against competing brands in the chosen
product category has to be analyzed and fixed.
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The major dimension of marketing strategy relates to positioning of the offer. The
firm has already selected the target market and decided its basic offer. Now, what is the
conjunction between these two entities? How do they get connected? What is the
interface?
In other words.
What is the locus the firm seeks among the customers in the chosen targer market with its
offering?
How would the firm want the consumer to view and receive the offer?
These are the issues the firm has to grapple with in positioning. And, while
formulating the marketing mix too, the firm will agitate over these issues. The Product
Differentiation and Positioning discusses the multifarious issues involved in the subject.
PRODUCT REPOSITIONING :
Products do undergo ‘repositioning’ as they go along their life cycle. In some
cases, even products that are fairing well are repositioned. This is done mainly to enlarge
the reach of the product offer and to increase the sale of the product by appealing to a
wider target market. The product is provided with some new features or it is associated
with some new target segments.
PROMOTIONAL DECISIONS:
Promotion has been defined as the coordination of all seller initiated efforts to set
up channels of information and persuasion in order to sell goods and services or promote
an idea. While implicit communication occurs through the various elements of the
marketing mix, most of an organization’s communications with the market The basic tools
used to accomplish an organization’s communication objectives are often referred to as
the promotional mix.
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Advertising Direct Interactive/ Sales Publicity/ Personal
marketing promotion selling
internet Public
marketing relations
Advertising:
Direct Marketing:
One of the fastest-growing sectors of the U.S. economy is direct marketing, in
which organizations communicate directly with target customers to generate a response
and a transaction. It has become such an integral part of the IMC program of many
organizations and often involves separate objectives, budgets, and strategies, we view
direct marketing as a component of the promotional mix.
Direct Marketing is much more than direct mail and mail order catalogs. It involves
a variety of activities, including database management, direct selling, telemarketing and
direct response ads through direct mail, the Internet, and various broadcast and print
media.
One of the major tools of direct marketing is direct response advertising,
whereby a product is promoted through an ad that encourages the consumer to purchase
directly from the manufacturer.
Interactive/Internet Marketing:
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Interactive media allow for the back-and-forth flow of information whereby users
can participate in and modify the form and content of the information they receive in real
time. Unlike traditional forms of marketing communications such as advertising, which are
one-way in nature, the new media allow users to perform a variety of functions such as
receive and alter information and images, make inquiries, respond to questions and of
course make purchases. In addition to the Internet, other forms of interactive media
include CD-ROMs, Kiosks, and interactive television.
Sales Promotion:
The next variable in the promotional mix is sales promotion, which is generally
defined as those marketing activities that provide extra value or incentives to the sales
force, the distributors, or the ultimate consumer and can stimulate immediate sales, sales
promotion is generally broken into two major categories:
Consumer-oriented and
Trade-oriented activities
Consumer-oriented sales promotion is targeted to the ultimate user of a product
or service and includes couponing, sampling, premiums, rebates, contests,
sweepstakes, and various point-of-purchase materials.
Trade-oriented sales promotions are targeted towards marketing intermediaries
such as wholesalers, distributors and retailers.
Publicity/Public Relations:
Publicity refers to non personal communications regarding an organization,
product, service, or idea not directly paid for or run under identified sponsorship. It usually
comes in the form of a news story, editorial or announcement about an organization and
its products and services. Like advertising, publicity is not directly paid for by the
company.
An advantage of publicity over other forms of promotion is its credibility. Another
advantage of publicity is its low cost, since the company is not paying its time or space in
a mass medium such as TV, radio or newspapers.
Public relations are defined as “the management function which evaluates public
attitudes, identifies the policies and procedures of an individual or organization with the
public interests and executes a program of action to earn public understanding and
acceptance”. Public relations generally have a broader objective than publicity, as its
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purpose is to establish and maintain a positive image of the company among its various
publics.
Personal Selling:
It is a form of person-to-person communication in which a seller attempts to assist
and persuade prospective buyers to purchase the company’s product or service or to act
on an idea. Unlike advertising, personal selling involves direct contact between buyer and
seller, either face-to-face or through some form of telecommunications such as telephone
sales. Personal selling involves more immediate and precise feedback because the
impact of the sales presentation can generally be assessed from the customer’s reactions.
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FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its offer on
the plank of service. It has gone in for a new norm in customer service: “fix it right-the
first time-on time”. Ford is also supplying videotapes showing how repairs have to be
done.
Adopting Offer to Suit Target Segment:
Ford modifies its models for India:
Ford modified its models for the Indian target segments as shown below:
Higher ground clearance to make the car more compatible to the rougher road surface in
India.
Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian roads.
Changes in cooling requirement, with greater airflow to the rear.
Higher resistance to dust.
Compatibility of engine with the quality of fuel available in India.
Location of horn buttons on the steering vehicles. (As the India motorist uses the horn
more frequently, for cars sold in India, the horn buttons are kept on the steering wheel
and not on a lever on the side as in the models sold in Europe.)
The Ford in India has launched the car only for few segment of people.
The segmentation of car buyers based on price preferences are
Family car segment: These cars forms a reasonably sizeable segment of the market
(around 15 percent).
Preferred price range is from 5 lakh to 6 lakh.
‘FORD IKON’ AND ‘FORD FUSION’ come under this type of segment.
Premium car segment: This segment represents buyers who need a real world-class car
and are willing to pay the due price.
Preferred price range starts from 8 lakh to 12 lakh.
‘FORD FIESTA’, ‘FORD MONDEO’ come under this segment of cars.
SUV segment: The buyers of this segment like to have a big vehicles.
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And these cars are also useful for sport riding and even on hill areas. There body is
designed similar to offroad vehicles, which can withstand to Indian roads.
‘FORD ENDEAVOUR’ occupies this segment.
In the first step the products of vehicles manufactured by the Ford Automotives are
directly promoted by the manufacturer by himself. He follows many promotional
strategies like
1. Advertising through television and newspaper.
2. Internet or interactive marketing.
3. Direct marketing.
In the second step the dealer of the vehicles promotes the vehicles.
The various promotional strategies followed by the Fortune Ford at dealer are
1. Advertising though news papers, radios, palm plates. In this all the features of the
product and its prices are given in detail to the customer.
2. In televisions the scrolling are given about the product and its features.
Hoardings:
A heavy picture of the product which comprises of its attributes and special features are
displayed on the roadsides in the form of hoardings. It is a bit expensive strategy but
attracts many people who pass by that roadside.
This type of advertisement is prepared for those segments of people who cannot
afford their time in reading newspapers and watching televisions. While travelling from
their home to office, moving on their business activities they may watch these hoardings.
These hoarding are especially setup at the road signal stops.
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Maintaining Data Bank:
Free Insurance:
The Fortune Ford gives a special offer of free insurance on the purchase of each
vehicle to its new customers.
Relationship Marketing:
Fortune Ford pays a special attention towards its old customers. To retain the old
and existing customers it conducts a corporate meet at a luxurious hotel. The event aims
at knowing the problems of the customers regarding the vehicles and also service
feedback.
In this way it maintains an effective relationship with the customers and gains the
reputation and goodwill in the minds of the customers.
Sales Promotion:
The sales promotion is done in the fortune ford at three levels:
1. Showroom sales: In this the customers walk in to the showrooms to know about the
details of the product. Specially trained sales executives who are present in the
showrooms give a detailed explanation about the product to the customers.
Sales executives give a detailed note on the products features, various offers
given by the manufacturer and also by the dealer to the customer and enhances
the sales of the vehicles.
2. Corporate sales: A special team of sales executives are sent to some big corporate
sectors and there they personally meet the heads of the organizations like C.E.O’s,
Managers etc., and explain about the vehicles and the offers and special schemes
provided by the dealer to them on bulk purchase of the vehicles and try to promote
the sales of the vehicles.
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3. Field sales: The sales executives conduct some events with the corporate working
people and try to demonstrate the product features and its benefits and try to promote
the product and increase its sales.
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MAINTAINING SERVICE STANDARDS:
An efficient service facility allows a customer to avail all the service provided by
Fortune Ford, in a clean and welcoming environment.
An appointment is available within 5 working days of the customer’s request.
Customers are courteously acknowledged within two minutes of their arrival and
the write-up will begin with five minutes.
Service needs are courteously identified, accurately recorded on the repair
order and verified with the customer.
The vehicle is serviced right on the first visit.
The vehicle is ready on the agreed upon time.
A through explanation of work done, warranty coverage and charges is given to
the customer.
All service repair work will be followed up within five working days.
Each vehicle will be washed before being returned to the customer.
EXTENDED WARRANTY:
Fortune Ford gives an extended warranty to its customers where there will be an
extended time duration in the warranty.
Extended Warranty:
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Why is extended warranty needed?
Benefits to customer
Protection from manufacturing and material defects
Car can be repaired at any Ford out let across the country
Unlimited number of claims
No excess to pay
One up-front payment only
Inflation protection from rising costs of parts and labour
All repairs carried out by qualified Ford technicians
Warranty can be transferred when vehicle is sold – better resale value
Total peace of mind
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A comprehensive maintenance plan by Ford will serve as a good tool to improve
the service experience and minimize concerns on cost of ownership of the vehicle
Total Maintenance Plan (TMP) is a complete service solution provided to the
customer. This enables the customer to have total peace of mind in the form of a
“Maintenance Holiday”
Scheduled servicing like Engine Oil change, Fuel filter, Oil filter, Spark plugs etc.
Non-scheduled maintenance like Brake Pads/Shoes, Brake Discs, Clutch Plates,
Lower Suspension Arms, Shock Absorbers etc..
Mechanical/Electrical repairs
Labour for all the above
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BIBLIOGRAPHY
REFERANCE BOOKS:
WEBLIOGRAPHY::
www.fordindia.com
www.fortuneford.com
www.wikipedia.com
www.google.com
AUTO MAGAZINES:
AUTOCAR
OVERDRIVE
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