Macro And Micro Environment Analysis Of Ford Motors

Macro And Micro Environment psychoanalysis Of crossbreeding MotorsIntroduction cut across Motor Company ( intersection) is the largest automotive manuf workurers in the world, direct in 200 commercialises across six continents. The cross out includes hybridisation, Lincoln, Mazda, Mercury and Volvo. cut through also sells luxury sport car Aston Martin. The teleph starr primarily establish in the US and Europe and employs 246,000 people as on declivity 2007. The goal of crossroad is to build point of intersections that atomic number 18 immensely desirable so that they lead off profit. They also do this by increasing number of novel harvest from around the world. On 2007 fiscal year, the company recorded $172,455 mess about revenue, increase of 7.7% over 2006. plainly however, the net loss was $2723 mill in 2007, compargond to $12,613 mill in 2006, with operating profit of $5631 mill in 2007 as comparison of $8,190 mill in 2006( datamonitor).Macro and Micro Environmen t digestIndustry AnalysisOver all(a) the industry is segmented by the pillow slip of fomites Motorcycles 5.8%, Passengers cars 69.5% and light truck 24.7%. The faces tough competition with Daimler, Chryster AG, Fiat, General Motor, Honda, Nissan, Mitsubishi, Toyota, Suzuki. In which cover motor company has the grocery store lot of 9.4% ( datamonitor, 2009).The industry fluctuated over 2004-2007 touch on by global economic downturn and declined in 2008. However, the performance is predicted to zip with compound annual growth rate of 4.4% for 5 yr occlusion of 2008-2013 to a value of $1,831 billion by end of 2013.Despite US Govt. providing billions of dollars to intersections rival GM and Chrysler, Ford is OK with the situation. Despite its loss in 2008 and dwindling cash supply, Ford is widely expressed in media as fiscally stable1.PEST AnalysisPolitical The Company has to go with rules and regulations formulated by the government much(prenominal) as CO2 Tailpipe Regulatio n. Companies get respect from government for powered IWO wheelers. Ford has to go by dint of the European Union fomite approval.Economic Depression hits the Automobile industry. Ford, GM and Chrysler face problem in this situation. Factors such as Central capital of the United Kingdom congestion charge, call to become all gas guzzlers , European magnetic north reduced pollution certificate and London low emission partition off affect the manufacturing of the Ford cars.Social There has been growth in track traffic slowing. Society is concerned with more green cars to be sold. avenue safety for everyone should be considered by Ford.Technology New technologies like utilize bio- elicits and digital radio should be considered. Ford has invested in car safety. Similarly, Ford also invested in CO2 reducing engineering science.SWOT AnalysisThe companys quick stigma portfolio holds it a competitive advantage.Strengths Ford has a strong brand portfolio and engineering capabilities. F ord has wide ne twork of distributors and dealers and high employee productivity. Ford operates in an industry which has guest who highly value brands who believe strong portfolio of found brand gives competitive advantage which helps in brand equity. This helps in launching rude(a) product range and penetrating in new go markets.Weaknesses Ford faces continued decline in market share in US from 20.5 % in 2003 to 15.6% in 2007 similarly in UK 19.5% (0.3% down from old year in 2006). This was due to increased competition, industry moving forward from usageally stronger segment, reduced fomite gross sales, daily rental companies, and discontinuation of companys vehicle lines. Likewise Ford got 3 complaints on leaking fuel or petroleum ignition. Several product recalls inadequate quality assurance and quality chasten system and declining operating efficiency and weak returns (datamonitor).Opportunities Ford Company has the luck to expand in India and China. Company launches new models often now and thusly according to the choices of clients. They deal produce hybrid vehicles. They face increasing need of dual fuel vehicle.Threats The profitability of the business relies on performance of the rescue in which the company operates. If EU and US shows economic slowdown constantly the companys business will face negative impact. Similarly, sluggish light vehicle produced in the developed market also acts as a threat. The company also need to consider EU vehicle regulations.Porters Five Forces AnalysisBuyers in the automotive industry are large with signifi asst financial power. Buyers power of dealers is affected by brand strength of top market players. An increase in raw materials cost put pressure in both market players and suppliers. Barriers of government regulations high fixed costs go across barrier puts new entrants into difficulties. Competition arises as a result of economic downturn.Buyer Power Buyers in this industry have financial strength , if its high, they support thread large purchase and put pressure to reduce prices. But tell on strength weakens secureer power. Retailers like distributor have one market player and thus buyer power is reduced. Overall the buyer power is moderate.Supplier Power Supplier of raw material, assembled and semi assembled, readiness like- steel, aluminium. The power of suppliers is streng then(prenominal)ed get ahead by the necessities of the automobile industry prerequisite of raw materials of high quality. Reliance of supplier is minimized by several(predicate) companies. The power over all is moderate.New Entrants Small firms are improbable to enter in this industry which unavoidably intellectual property. Entry is further made difficult by getting distribution channels. Similarly, company has to escort government requirements and invest on continuous development. The threat is moderate.Substitute function cars acts as substitutes. However, affordable power diminishes eng rossd cars. Awareness of environmental issues and mood mixture might lead people to walk, cycle and use reality transport. The companies are making hybrid( petrol, electric) cars. Overall the threat is weak.Rivalry Competition in this industry re main(prenominal)s fierce, among the top 4 market players 38% of market value. Toyota, GM , Daimler and Ford. High fixed price exit barriers raw materials costs lead to unpredictable production costs and post pressure on market players. Most company produce diverse range of cars .The emulation is very strong. selling strategy option for Ford MotorsSocial tariff and Ethical Marketing CommunicationFord emphasises on universe a good embodied citizen, by accenting on the global alliance by understanding envirionmental issues and investing on people. Similarly, organise programmes to promote allowance and equal opportunities and support social and environmental protection programmes.In 2006, Ford was the first automotive manufacturer to p roduce dedicated hydrogen fuel V-10 engines. (datamonitor). Ford introduces new vehicles which offer fuel economy and reduced environmental impact. In Britain, from April 2009, the government encourage the manufacturer to produce cleaner cars, and Ford should take aim the policy and motivate customers to opt for least polluting cats2. In short- unk non, they contract on clean diesel engines, hybrids, flexible fuel vehicle ethanol vehicles and turbo charged direct injection Eco Boast- Superior performance, which provide 20 % give fuel economy, 15% fewer CO2 emissions.In the long run Ford has invested in plug in hybrids, fuel cells, hydrogen inner(a) combustion engines, advanced technology. Ford believes that these are right and responsible things which would give customers better goods.Target Markets and SegmentationsFord has broken down its diverse markets into two manageable segments, Financial and Automotive services. Inside these more segments on geographic and organisation al structure. Similarly Ford attracts unseasoneder demographic.Automotive Ford segments its customers based on the car types- passenger cars, trucks, buses and vans, sports vehicles, accessories, after sale parts, maintenance and vehicle gear up services. This business division consists of design, development, manufacture, sale and service of trucks, cars and service parts. Hence serve refined, medium, large and premium ranges.This segment is further divided into geographically, Ford brotherhood America, Ford South America, Ford Europe, Premier Automotive group, ford Asia Pacific and Africa Mazda. Each has their own manufacturing demonstrate, like- Ford North America- design, develop, manufacture and service vehicle ad parts. They have servicing as maintenance and light repair, collision, vehicle accessories and service warranty.Financing Service Segments These include financing products to and through automotive dealers. Three categories- retail financing, purchase retail in stalment sale contracts and retail lease contract from dealers and offering financing to commercial customers. Similarly, they offer loans to dealers to finance the purchase of vehicle inventory.External market communicationFord develops advertising, sales promotion, sponsorship and merchandising programs3. Fords advertising policy is do scoop by construction and selling the most innovative cars and trucks4. Ford take Bold Moves campaign, a form of transparent marketing( via webisodes , the assessment of past and present performances), emotional appeals (interview with employees) and product oriented work with an emphasis on drivers than steel metal.Ford has do Sync campaigns5which deals with TV and radio commercials, print and online advertisement, a promotional scent and dealership training which manoeuvers Black and Hispanic consumers.Chris Brown appeal young urban consumers.Give radio commercialsOnline sync with chrisbrown.com- launched Nov 12, 2007.Columbian Rocker Jaunes multicultural marketing communicationsEmphasis on digital promotion.Ford holds mantra of transport or Die which has reached the parent company of its largest advertising agencies6. The company hires best talented employees, consultants and contract workers, who are devoted to administrative, media and band experience service. utilize ad agencies for delivery would promote the most stunning product. Mark Fields, Fords chair of America, focus on customers needs and brands. Ford spends $757.5 million to advertising in US media on 2005.Auto bookrs like Ford, GM are the biggest budget cutters in media and advertising. Ford cut their spending on Hispanic media more late in fourth quarter which feel 31.2% last year to $46 .7 million, but according to RNS it is still continuing a long tradition as the executive car sponsor for Univision blockbuster Sabado Ginate show. In April 4, in this show the Host Francisco drive the new 2010 ford Fusion to the studio and hosted Ford Fusion game t o give away a new car to a winner in the studio audience7.In UK, Ford sponsors events like UEFA champions- football tournaments and charities. They sponsor conglomerate events and organisations from family fantasy, Disneyland Paris to 60 year old musical and military prowess, the Edinbrugh Tattoo. The sponsorship focus on all the target markets form children to elderly, which shows that company is building image in the participation as a form of goodwill for the company itself.Recently Ford Company launched Ford Focus, the commercial is beautifully made. The Ford Focus Orchestra- in which musicians are shown playing the instrument made from the real car parts. The main aim of this advertisement is to show customers that all the car parts are important and has best quality. The journey made with this car would never make you feel long with the experience of comfort cabin with striking out-of-door and improved technology.Primary Survey AnalysisCustomersAs research through with(p) on the customers of Ford Cars, most customers are influenced by friends and family. They are potential to buy cars which are recommended by peers. Thus company enkindle focus on giving best service and product to all target customers and also confirmatory word of mouth communication (message is transmitted from the sender to many receivers, Pickton and Broderik).Similarly, customers tactile property after the style and comfort of the cars, like size- 4 wheelers, small for single individual. What they look for is the use of cars like vans, trucks and their storage, capacity, fuel, engine, warranty. So, what Ford needs to understand is the needs and wants of the customers.Likewise, customers are influenced by the advertisement in the cars and magazines. Advertisements which use celebrities are likely to influence more customers. Ford uses cars in pile Bond movies, science fiction drama Fringe8. Ford send word adopt celebrity endorsement, development celebrity as a spokes mortal for project (Pickton and Broderick).Customers are also influenced by the established brand name. They look after the brand loyalty and its strength in the market ( solelyan K).gross revenue person influence the most when customers visit showrooms, the form of direct marketing- persuading and intercommunicate customers at the spot. Therefore, Ford washbasin invest in best customer service personnel and give training to employees.RecommendationsKlara Roberts argues that even though all the promotional activities Ford have done so far, will not help sales grow9. There are more marketing communications mix (internet advertising, direct marketing and e- commerce, sales promotions, sponsorship etc.) to be adopted to communicate directly with target markets (Seminik R. J.).Managing Corporate Identity Ford bear maintain the image of being dynamic, goal- orientated, attention-getting, active and pioneering .According to the Chris Fill, 2002, Ford has many stakeholders and small corporate gap and hence can adopt incremental process in maintaining this gap. Similarly, Ford should try to be a good corporate citizen, by managing corporate identity among various stakeholders, like- employees, local community and government. All the promotional and marketing activities done by the companies are based on maintaining corporate image.Push Promotional Strategy Ford can adopt this strategy, a form of promotional endeavor by the manufacturer or suppliers to encourage trade channel members to promote and sell their products (Pickton and Broderick). Sales forces, versed part of communication, can be targeted as the main form of release strategy.Pull Promotional Strategy Ford can also adopt pull strategy, a form of promotional effort to end customers and consumers to acquire more by increaseing benefits and other activities (Pickton and Broderick). Such as discount promotion- a process of discounting the price for the product so that customers are encouraged to buy however t his involves financial aspects (Hans and Duncan) . Similarly, they can improve on their weaknesses to minimize product recall and improve product efficiency which adds benefits.Relationship Marketing Ford can put its emphasis on relationship marketing, between various stakeholders. They can focus on delivering more to the target customers by being more specific. As researched on the consumers, they are affected by the positive word of mouth marketing. Ford should focus on customer relationship management (positive communication and long term customer relationship management, Hans and Duncan). regular(a) though they give services like financing, service and maintenance, they can add more features like style and safety.Brand Strategy Most customers considers brand before making purchase end. What Ford can invest in establish long term brand image by using more of communications mix which are explained further. This will help as a source of competitive advantage and create entry barr ier. Brand strategy helps in improving the product by introducing innovative technology (Semenik). Similarly, Ford can also look for brand future, by adjusting in future changes in legislation, technology consumer patterns (Pickton and Broderick).Business 2 Business Marketing This form of marketing acts as a lead generator, brand awareness and relationship development. If Ford fails to recognize the trade customers, they looses the first line customers. The agencies should change their cultures break down barriers and generate new marketing initiatives and creative ad content.Promotional Mix/ Intergrating Marketing Communication Mix Analysing Ford Company, we can see that they have adopted various forms of promotional mix such as advertising, sponsorship. However, they can invest more on these factors and decide on what to adopt ( Kotler and Keller).Advertising Expenditure Ford can also spend on intermedia (options for deciding media such as cinema, TV, press posters, magazines e tc). Ford can target TV commercials (Ford Orchestra) as lots of people see TV everyday during free period. Buying a car is high amour product where more risk is involved in buying decision (Hierarchy of Effects Model). People look for the best advertisement and are influenced by the positive aspects of commercials. Thus Ford could be more focused on creative advertising procedures.Public Relations Ford can make an effort in this field by having sound relations with employees during the age of redundancy and closure, which is happening at the current economic downturn. Similarly, Ford can invest in ethical marketing, doing best for the public, like donations, conserving environment. All these helps in dealing with the negative publicity and crisis management and develop to make the corporate image (Pickton and Broderick) and helps brand signatures( Kotler and Keller).Internet Advertising In Sept. 2008, Google was criticised for charging companies like Ford, for their share of profi t in return of internet advertising10. There are various negative consequences that are faced by company in internet advertising such as fraud and scam. However, Ford can invest in internet advertising through websites which acts as an actor for the car companies.Personal Selling and Sales Management As a research done on the customers, they are influenced by the presentation of customer service advisors. Similarly, the role of distributor is very important as they act as the main source to deal with the sales and marketing effort (Pickton and Broderick).Future Marketing communications The form of media is always changing. The generation of use of media depends on the innovation and technology ( Broderick and Pickton). Firstly, there was a use of newspapers, then radio, television and internet. Future is based on the electronic marketing, known as ecommerce. Ford needs to go along with the change in media translation by the consumer and thus invest in communication via such medium .