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A Project Report ON “A study on consumer behaviour & marketing strategies towards the products and services of Ti ford motors in greater Guwahati market”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) UNDER THE GUIDANCE OF Project co-ordinator: Mr. Manash Baruah consultant, Organization guide: Mr. Nayan Talukdar & MD. Dr. Sapna Dutta Hazarika Senior Sales (GATE Institute, Guwahati) (TI Ford motors, Guwahati)

SUBMITTED BY: Monalisa Marak BBA 6th semester, GATE Institute, Chandmari Roll no: STUDENT UNDERTAKING

This is to certify that I have completed the Project titled “A study on consumer behavior & Marketing strategies towards the products and services of Ti ford motors in greater Guwahati Market” in Guwahati Academy of Tertiary Education (GATE), Assam under the Guidance of Mr. Nayan Talukdar & MD Dr. Sapna Dutta Hazarika in partial fulfillment of the requirement for the award of Degree of Bachelor of Business Administration at Guwahati Academy of Tertiary Education (GATE), Assam. This is an original piece of work & I have not submitted it earlier elsewhere.

Monalisa Marak BBA 6th semester

CERTIFICATE

This is to certify that the project titled “A study on consumer behavior & Marketing strategies towards the products and services of Ti ford motors in greater Guwahati Market” is an academic work done by Monalisa Marak submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration from Guwahati Academy of Tertiary Education (GATE), Assam under my guidance & direction. To the best of my knowledge and belief the data & information presented by her in the project has not been submitted earlier.

Mr. Nayan Talukdar Project co-ordinator

Dr. Sapna Dutta Hazarika Managing Director GATE Institute, Guwahati

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Miss Monalisa Marak BBA 6th semester, Student of Guwahati Academy of Tertiary Education (GATE), Guwahati has successfully completed the Grand project on the topic “A study on Consumer behavior & marketing strategy towards the products and services of Ti ford motors in greater Guwahati market” in three months duration from …….., 2012 to …., 2012 at Ti Ford, Guwahati Branch.

During her Grand Project, we have found her sincere and hard-working and wish him all the success in her future endeavors.

Yours Faithfully, For Ti Ford

Dated, Guwahati 18th October, 2009

(Mr. Manash Baruah) Organizational Guide & Senior sales consultant TI Ford Guwahati

ACKNOWLEDGEMENT

I would like to thank my Project Guide Mr. Nayan Talukdar & MD Dr. Sapna Dutta Hazarika for their immense guidance, valuable help and the opportunity provided to me to complete the project under his/her guidance. I would like to thank all faculty members of Guwahati Academy of Tertiary Education (GATE), Assam, for guiding and supporting me in the completion of project from time to time. Last but not the least, my gratitude to great almighty and my parents without their concerned and devoted support the project would not have been the way it is today.

Monalisa Marak BBA 6th semester

EXECUTIVE SUMMARY

TITLE OF THE PROJECT:

“A STUDY ON CONSUMER BEHAVIOUR & MARKETING STRATEGY TOWARDS THE PRODUCTS AND SERVICES OF TI FORD MOTORS IN GREATER GUWAHATI MARKET”.

NAME OF THE ORGANISATION:

TI FORD MOTORS, GUWAHATI

PROJECT DURATION:

(…2012 to …2012)

PLACE OF STUDY: GUWAHATI, ASSAM

ORGANIZATIONAL GUIDE: Mr. Manash Baruah Senior sales consultant, North East (Ti Ford motors, Guwahati)

INSTITUTIONAL GUIDE: Mr. Nayan Talukdar (Faculty) GATE Institiute, Chandmari, Guwahati

INTRODUCTION

INTRODUCTION TO THE TOPIC

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 compensating. 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 its objectives and goals. To maximize the profits and long term 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. What marketing is what it does and what it offers? “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 unmet 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 unit 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 niche 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. 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 automobiles. OBJECTIVES

OBJECTIVES OF THE STUDY Primary Objective: To know the influence of various marketing strategies, promotional activities towards the customers of four wheelers (cars). Secondary objective: •To know the effective factors for preferring 4 wheelers (CARS) •To know the factor of awareness of the cars. •To Study and analyze the Promotional Strategies of Ford •To know whether the customers are satisfied with the offers given by the dealer.

•To know which kind of offers can attract the new customers. •To find the area to be improved •To find out satisfaction of the customers. •To find the reasons for the dissatisfaction •To study the channel levels involved in the promotion of Ford •To study and analyze the customer's perception regarding the usefulness/utility of Ford cars. •To study and analyze the distributors perception regarding the promotional and distributional strategies of Ford.

INTRODUCTION TO AUTOMOBILE INDUSTRY INTRODUCTION TO AUTOMOBILE INDUSTRY One of the fastest growing industries in the world is automobile industry. This automobile industry 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 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%. INDIAN AUTOMOBILE INDUSTRY SINCE 1947: It’s fascinating drive through history, which begins as a story of isolation and missed opportunities to one of huge potential and phenomenal growth. India’s fixation with socialism and planned economies had a crippling impact on the automotive industry in its formative years. The goal at that time for independent India was self-sufficiency. Issues like quality and efficiency were simply not considered. Dependence of foreign technology was banned and manufacturers were forced to localize their products; import substitution became the order of the day. Though we learnt to localize, the cars we made were all outdated designs with little or no improvements for decades. The automotive industry stagnated under the government’s stifling restrictions and the Indian car buyer was saddled with cars of appalling quality and even then there was a waiting list that at one point stretched to eight years! This attempt at self-reliance failed miserably because of the industry’s isolation from the best technology. The Japanese and later Korean auto industries were also highly protected in their formative years but they never shut the door on technology. Instead, they relentlessly tapped the best talent pools in the world to absorb the know-how to produce good cars. One of the most important chapters in

the Indian automotive industry’s history was written by Maruti. It marked the Indian government getting into the far business in the early 1980’s, a radical shift in thinking after decades of treating cars with disdain. The Maruti 800 went on to become the staple car of India and put a nation on wheels. This little car set a benchmark for price, size and quality and structured India as small car market. It wasn’t till 1993 that things really started to change for the Indian car buyer. With the liberalization of the economy, a host of international carmakers rushed in. But most of 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 Maruti 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. AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE: The first motorcar on the streets of India was seen in 1898, Bombay had it first taxicabs by the turn of the century. In 1903, an American company began a public taxi service with a fleet of 50 cars. For about 50 years after car arrived in India, cars were directly imported. Before World War I, around 40,000 motor vehicles were imported. During the years between the wars, a small start for an automobile industry was made when assembly plant were established in Bombay, Calcutta and Madras. The import/assembly of vehicles grew consistently after the 1920s, crossing 30,000 units by 1930. It was during the end of the war that the importance of establishing an indigenous automobile in India was realized. Premier Motors, Hindustan Motors and Mahindra & Mahindra set up factories in the 1940s for progressive manufacture rather than assembly from imported components. The cars they chose to make were the latest in the world when they were introduced in India in the formative years of the industry. POST- INDEPENDENCE: The government clamped down on imports and foreign investments. Companies like GM and Ford packed their bags and left. India’s clock, thereafter, stood still while the 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 it’s 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. THE BIRTH OF THE AMBASSADOR: In 1957, a small tail fin was added on either side of the rear fenders, along with a new, dimpled hood, and the car was re-christened the Ambassador Mark I. The car cost Rs.17, 000. In 1963, it underwent a frontal facelift with a closely checkered grille and was named the Ambassador Mark II. It would be another 12 years before the Ambassador got a facelift. In 1975, another minor facelift to the same grille and a much bigger frontal facelift turned out as the Mark III. The Mark IV, launched in 1979, was the last of the Mark cars. The Ambassador Nova was launched in 1990, followed by Ambassador 1800 ISZ three years later. The Nova was the last Ambassador powered by the 1489cc petrol engine. In 2004, HM launched the cosmetically revised Ambassador under the name Avigo. Designed by Mavendra Singh, the retro look Avigo had classic touch internals like a centrally mounted console, beige-colored seats and wood finish interiors. 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 ➢Maruti ➢Hindustan motors

Premier: The story of premier is the story of one man’s 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

Building India’s first auto factory Seth Walchand Hirachand has first started the trails to establish an Indian car manufacturing plant in Indian for which he went to U.S.A. where three largest car manufacturing companies are located. He wants Indian company to be completely independent, with Indian management capital and employees, paying royalty or technology transfer payment to western countries. After approaching General Motors they insisted on part ownership. Seth Walchand then moved to second largest automaker Ford; Henry agreed, but delegated the project to Ford of Canada, which refused. Finally the third largest automaker Chrysler agreed and singed in an agreement in Bombay in 1940.

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 September, 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. 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, JRD 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.

MAHINDRA & MAHINDRA: The story starts sometime 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 2nd 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 the Independence Ghulam Mohammed migrates to Pakistan. With his departure Mahindra & Mohammed is renamed by Mahindra & Mahindra in 13th 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. Vehicle Model Mahindra MM 540 Commander Mahindra Armada Voyager van Escort (M&M-ford) Bolero Scorpio Year of launching 1985 1991 1993 1996 1996 2002

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.

MARUTI: 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–Maruti Udyog Limited. The story of Maruti 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’.

The Car that changed India:

The Maruti 800 was essentially a Suzuki SS80, which was called the Fronte in Japan and Alto in most of the other markets. The 796cc, in-line, three-cylinder power plant produced 39.5bhp at 5500rpm. Maruti marked the beginning of a revolution in the Indian automobile industry. The Maruti 800, with its compact size, nimble handling and perky engine, offered the Indian motorist a cheaper, friendlier alternative. On 14thDecember 1983, Harpal Singh became Maruti’s first customer as he received the keys of his Maruti 800 car from Prime Minister Indira Gandhi. The car cost Rs.48, 000. The new Maruti, launched in June 1986, cost approximately Rs15, 000 more than the outgoing model.

The new Maruti:

In 2005, Maruti launched the Swift, for the first time in its 20-year history. The Swift signaled the importance of the Indian market in the world. A team of engineers from Maruti worked on the design of the Swift in Hamamatsu, Suzuki’s headquarters in Japan. Model Maruti 800 Year of launching 1983

Maruti Omni Maruti Gypsy Maruti 1000 Maruti Zen Maruti Esteem Maruti Baleno Maruti Wagon R Maruti Alto Maruti Versa Maruti Swift Maruti Zen Estilo Maruti SX4 Maruti Suzuki Grand Vitara Maruti Ritz Maruti A star Maruti Swift D’zire Maruti Alto K10

1984 1985 1990 1993 1994 1999 1999 2000 2001 2005 2006 2007 2007 2009 2009 2009 2010

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 marketers are learning some very hard truths. While the economic reforms process was kicked off 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. The other automobile industries which play a crucial role in the Indian automobile industry are: ➢Daewood Motors India. ➢General Motors India ➢Mercedes-Benz ➢Hyundai Motors ➢Honda SIEL ➢Toyota ➢Skoda India

COMPANY PROFILE Ford Motor Company

Type: Public Founded: June 17, 1903

Founder: Headquarters: Area served:

Henry Ford Dearborn, Michigan, USA Worldwide William Clay Ford, Jr ‘BILL’, Chairperson

Key people: Industry: Products:

Alan R Mulally- President/CEO Automotive Automotive goods and services

Revenue:

US$ 120.1 billion (2006)

Operating income: US$-15.0 billion (2006) Net income: Employees: US$-12.6 billion (2006) 283,000 (2007)

Divisions: Lincoln Mercury Premier Automotive Group Automotive Components Holdings Jaguar

Subsidiaries: Land Rover Volvo (cars only) Bold Moves Have you driven a Ford lately? Built Ford Tough

Slogan:

Built for Life in Canada Feel the difference Make Ever- day 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 Daimler Chrysler (14.4%). Ford was also the seventhranked 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, an 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. Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford and incorporated in June 16, 1903. Ford now encompasses many global brands, including Lincoln and

Mercury of the US, Jaguar and Land Rover of the UK, and Volvo of Sweden. Ford also owns a one-third controlling interest in Mazda. 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. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce, especially elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's combination of highly efficient factories, highly paid workers, and low prices revolutionized manufacturing and came to be known around the world as Fordism by 1914.

History

Henry Ford (ca. 1919) 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) 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). Paul Mascarenas (Vice President of Engineering, the Americas Product Development)

FORD IN INDIA:

Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which produced the Escort out of M&M Nasik 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 highlycapable 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. Ti Ford motors, Guwahati It is an authorized dealer for Ford India Limited, who is one of the leading manufacturers of top quality cars in India, with many variants in the offering. TI Ford is controlled and looked over by the board of director’s Mr. Ujjal Goswami, Mr. Prodip Rajkhowa, Mr. Moniraj Baruah, and Mr. Hemanta Sharma, the set up by well reputed families. Ti Ford is a blend of experience and youth. Ti Ford markets and services recently launched truly European New Ford Fiesta, the ever-popular Ford Fiesta classic, the No non-sense car Ford Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at Silpukhuri. The sales outlet is located strategically at Silpukhuri near Chandmari. They have one service centers, one at Bamunimaidan, which is also located a few distances from the showroom. These centrally located outlets provide convenient and easy access to both the proud owners as well as prospective buyers. The workforce at Ti 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, color 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 Ti 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 500sft centrally air conditioned showroom, located in the heart of the city in Silpukhuri, adjacent to Axis bank and many other banks and showrooms. This makes convenient for almost every one residing in and around Guwahati and other cities. The facilities offered from the showroom are: 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 used car. 3. Professionally trained and courteous sales staff to take care of every relevant need of the customers. 4. Ford preferred insurance for cashless transactions in the event of claims like Special offers on insurance renewals. 5. Full range of Ford cars with all colors from and models to choose 6. A good stock accessories to make your Ford ownership more delightful and safe of Ford genuine 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. •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.

•Quality care, 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 •Ford India has started exporting Ford IKON 2001. Ford India launched the Ford Mondeo. 2002: •Ford India show cases a wide spectrum of exciting cars at the Auto Expo •Ford India Limited announced a strategic partnership with Hindustan Motors Limited (HML). •Certified QS 9000: 1998, 3rd edition on March 21, 2002 Ford India received the QS 9000 award from TÜV Suddeutschland. •New Ikon Variant 1.6 EXi was launched 2003: •The New Ford Ikon NXT launched - The Next Level of Josh. •Adding Refinement to Josh- Ford India launches Ikon NXT ‘Finesse.’ •Ford Celebrates Centennial in India. •Ford India launches Ikon NXT SXi. •Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study. •Ford launches Ikon Flair at Rs. 4.95 Lakhs. 2004: Auto-car SUV winner of the Year is Ford Endeavour. 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

•FORD MONDEO IS AUTO EXPRESS car of the year •LAND ROVER DISCOVERY 3 scoops category win at TOWNCAR AWARDS 2007 •FORD MONDEO is the Caravan Club TOWNCAR of the year 2008 2011: Ford Figo is most awarded car ever by Auto-car, TopGear and Motoring. .

MANAGEMENT PROFILE: MICHAEL BONEHAM - President and Managing Director, Ford India Michael Boneham is the President and Managing Director at Ford India since June 2008. He reports directly to John Parker, executive vice president, Asia Pacific and Africa LUCY MILLAR – Vice President, Finance & IT, Ford India. 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. SCOTT McCORMACK – Vice President, Marketing & Sales & Service. Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He took this position in July 2006. Scott reports to Arvind Mathew, President and Managing Director, Ford India. NANCY REISIG – Vice President, Human Resources. Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford India. SANDIP SANYAL –Executive Director - Operations, Ford India, India. Sandip Sanyal is the Executive Director, Operations, at Ford India. He took this position in September 2005. Sandip reports to Arvind Mathew, President and Managing Director, Ford India. NIGEL E. WARK - Executive Director, Marketing, Sales and Service, Ford India.

Nigel E. Wark is the Executive Director for Marketing, Sales and Service at Ford India since March 2008. He has overall responsibility for Marketing, Sales and Customer Service Operations in support of Ford India's expected rapid future growth in the market through capacity expansion and a major shift into the high volume segment, work reports to Michael Boneham, President & Managing Director of Ford India.

KULJIT RANA - Vice President, Finance and Whole time Director, Ford India. Kuljit Rana is the Vice President, Finance and Whole time Director at Ford India. He took this position in June 2009 and is responsible for all financial aspects of Ford India. Kuljit reports to Michael Boneham, President and Managing Director, Ford India. VAIRAMANI PANDIYAN - Vice President, Human Resources, Ford India. Vairamani Pandiyan is Vice President, Human Resources at Ford India. He took this position in January, 2008. Pandiyan reports to Michael Boneham, President and Managing Director, Ford India.

PRODUCT PROFILE Endeavour:

PRICE(lacs)

| 4x2

| 18.12 | | 19.43 |

| 4x2 AT

| Hurricane LE | 20.41 | | 4x4 AT | Type | 2.5 litre, 4 Cylinder in-line, Turbocharged & inter-cooled diesel | | 2499 | | | | 21.07 |

Displacement (cc)

Max. Power (PS/rpm) | 116/3500 Max. Torque (kgm/rpm)

| 28.5/2000

Ignition System | Compression | Valve System | SOHC, 12 Valves Fuel System Emission | | |

| Indirect Injection Mechanical Pump

| Exhaust Gas Recirculation (EGR) Meeting Bharat Stage III Norms | 1933/1958 | |

Kerb Weight (Kg)

Transmission | Manual 5 Speed

Max Speed (Kmph) Mileage | 8.2

| 142 |

|

| | | | |

Fiesta Classic:

Models| LXi 1.6 | Price (lacs) Engine Type Construction Fuel system

| CLXi 1.6

| LXi 1.4 TDCi

| CLXi 1.4 TDCi | SXi 1.6

| SXi 1.4 TDCi

| 5.67 | 6.34 | 6.89 | 7.32 | 7.69 | 8.59 | | 4 Cylinder in-Line, 16 Valve DOHC | All aluminium Alloy | | | 4 Cylinder in-Line, 8 Valve SOHC |

| SEFI | High pressure common rail

Displacement(cc) Compression ratio

| 1388 | 1596 | 1596 | 1399 | 1399 | 1399 | | 9.75:1 | 9.75:1 | 9.75:1 | 18:1 | 18:1 | 18:1 | | 82/6000 | | 146/340 | 101/6500 | 101/6500 | 68/4000 |

Max power output(ps/rpm) 68/4000 | 68/4000 Max(Nm/rp) 160/200 | 127/400 |

| 146/340

| 160/200

| 160/200

|

Emission compliance Transmission type Max. speed(Kmph) Mileage

| Bharat Stage III | 5 speed manual | 170/178 | |

| |

| 14.75/13.6

New Fiesta:

Models| 1.5 Ambiente(P) style | Diesel titanium plus Price (lacs) Engine type

| Titanium plus(P) |

| AT style(P)

| AT titanium plus (P)

| Diesel

| 7.48 | 9.16 | 9.30 | 10.04 | 9.30 | 10.34 | | 1499cc | 1499cc | 1499cc | 1499cc | 1498cc | 1498cc | | Automatic | Automatic | Manual | Manual |

4 Cylinder 16 Valve 4 Cylinder 16 Valve 4 Cylinder 8 Valve 4 Cylinder 16 Valve 4 Cylinder 8 Valve 4 Cylinder 8 Valve

Transmission | Manual Manual | Power | 109PS @ 6450rpm | 90ps @ 3750rpm Mileage |C |H

| 109PS @ 6450rpm | 90ps @ 3750rpm

| 109PS @ 6450rpm |

| 109PS @ 6450rpm

| 17.0 | 17.0 | 16.5 | 16.5 | 23.5 | 23.5 |

| 14.0 | 14.5 | 13.5 | 13.5 | 17.5 | 17.5 |

Safety | Anti-Lock Braking System, Brake Assist, Central Locking, Power Door Locks, Child Safety Locks, Anti-Theft Alarm, Driver Airbag, Passenger Airbag, Day & Night Rear View Mirror , Passenger Side Rear View Mirror, Xenon Headlamps, Rear Seat Belts, Seat Belt Warning, Door Ajar Warning, Side Impact Beams, Front Impact Beams, Traction Control, Adjustable Seats, Keyless Entry, Engine Immobilizer, Crash Sensor, Centrally Mounted Fuel Tank and Engine Check Warning | | | | | | | |

Ford Figo:

Models

|

LXi

|

EXi

|

ZXi

|

Titanium |

| Petrol | Diesel | Petrol | Diesel | Petrol | Diesel | Petrol | Diesel | Price in lacs Engine | 3.87 | 4.86 | 4.25 | 5.24 | 4.54 | 5.54 | 5.03 | 6.03 | | 1196cc | 1399cc | 1196cc | 1399cc | 1196cc | 1399cc | 1196cc | 1399cc | | 69 PS at 4,000 rpm | 69 PS at 4,000 rpm | 71PS at 6,250 rpm | 71PS at 6,250 rpm | 69 PS at 4,000 rpm | 69 PS at 4,000 rpm

4 Cylinder 16 Valve 4 Cylinder 16 Valve 4 Cylinder 16 Valve 4 Cylinder 16 Valve 4 Cylinder 16 Valve 4 Cylinder 16 Valve 4 Cylinder 16 Valve 4 Cylinder 16 Valve

Power | 71PS at 6,250 rpm | 71PS at 6,250 rpm |

Transmission | Manual | Manual Manual | Manual | Manual | Mileage |C |H

| Manual

| Manual

| Manual

|

| 15.5 | 18.5 | 15.5 | 18.5 | 15.5 | 18.5 | 15.5 | 18.5 |

| 12.5 | 14.5 | 12.5 | 14.5 | 12.5 | 14.5 | 12.5 | 14.5 |

Safety | Dual front airbags, keyless entry feature that has been named as Smart Programmable Remote Key, power door locks, power windows, day and night rear view mirror, passenger side rear view mirror and central locking, Seat-belts are added at front and rear seat with seat belt warning and door Ajar warning, fitted with Rapid Decelerating Warning system that starts working above the speed of 96 Kmph, Lane Change Indicators that blink three times when you change your lane. |

COMPARISIONS FORD ENDEAVOUR vs. TATA SAFARI

Features Mileage Highway (km/liter) Seating Capacity (person) Fuel Tank Capacity (liter) Maximum Speed (Kmph) Engine Type/Model Displacement (cc) Power (PS@rpm) Torque (Nm@rpm) Valve Mechanism | 11.6 | 10.2 | |7 | 71 | 142 |7 | 60 | 154 | | | | 486 PL Petrol |

| Turbocharged, Intercooled | 2499 | 2092 | | 116@3500 | 285@2000 | 127@5630 | 198@3750

| |

| SOHC | DOHC | | Rack & Pinion with Power Assist | |

Steering Type | Recirculating Ball with power assist Minimum Turning Radius (meter) Brake Type | 6.2 |6

| ABS with EBD | ABS | |

Tyres | 265/70 R15 (Tubeless) | 235/70 R 16, 105 S

NEW FORD FIESTA vs HYUNDAI VERNA FLUIDIC Features Overall Length (mm) | 4291 | 4370 | |5 |5 |

Seating Capacity (person) Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears | 5 |5

| 1499 | 1591 | | 109@6045 | 140@4500 | Manual | | 123@6300 | 158@4200 | Manual | | |

Minimum Turning Radius (meter)

| 5.2

| 5.2

|

Tyres | 195/ 60 R 15 | 195/ 55 R 15 | Safety | ABS with EBD | Central locking system|

FORD FIESTA CLASSIC vs MARUTI SWIFT DZIRE

Features Engine Type | In-Line Engine | K-Series Petrol Engine Wi | 15.6 | 14 | |

Mileage Overall (km/liter) Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type

| 1596 | 1248 | | 101@6500 | 146@3400 | Manual | 75@4000 | 190@2000 | Manual | 4.9 | 4.7 | | | | |

Minimum Turning Radius (meter)

Tyres | 175/65R 14 (Tubeless) | 165/80 R 14 (tubeless) Wheel Type Bore (mm) | Steel | Alloys | | 79 | 69.6 | | 9.75 | 17.6 |

Compression Ratio Fuel System Rear Brakes

| SEFI | Common Rail | | Self -adjusting Drums | Drum |

FORD FIGO vs MARUTI SWIFT

FEATURES Mileage (ARAI) Fuel Tank No of Doors | Maximum Speed Engine Type Displacement Power Torque | | | | | 15.6 kmpl | | 5 doors | | 1197 cc | | | | 18.6 kmpl | |

Capacity | 5 doors |

45 Liters

42 Liters

160 km/hr. In line engine 1196 cc |

168 km/hr.

In line engine | | | |

71 @ 6250(PS@rpm)

87@60000(PS@rpm) 114Nm@4000(kg@rpm) DOHC|

| 10.4 @4000(kg@rpm) | DOHC |

Valve Mechanism Fuel System | Rear Suspension beam & coil springs spring | Steering type | assisted | Wheel Type |

SEFI |

Multi point injection

|

| Semi-Independent twist | Torsion beam & coil

Power

|

Rack & Pinion power

Tubeless Radial |

Steel wheels

|

SOURCE OF DATA

Marketing strategy and analysis:

A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies. Marketing strategy is based on a situation analysis- a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. From this situation analysis, a firm develops an understanding of the market and the various opportunities it offers, the competition and the market segments or target markets the company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objectives of the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them. For example, if the marketing objectives of a business unit stipulate that next year, it should achieve a sales revenue of Rs. 1,000 cr. and a net profit of 15 percent of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale and profit will come, which product lines/products/brands will accomplish this task and how. Marketing strategy forms an integral part of marketing planning. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

MARKETING AND PROMOTIONS PROCESS MODEL:

Development of marketing program requires an in-depth analysis of the market. This analysis may make extensive use of market research as an input into the planning process. Target marketing process Marketing planning program development Target market Marketing strategy and analysis

Target marketing

Reseller Ultimate consumer Consumer business Purchase * Interactive marketing * Direct marketing * Sales promotion to final buyers * Public relation * Personal selling * Promotion to trade Target marketing Competitive analysis Opportunity * Advertising Distribution Channel Pricing strategies Product Promotional decision

Identifying markets Market segmentation Target marketing

Positioning through marketing 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 element must be combined with all other program elements in such a way as to achieve maximum impact.

Formulating the marketing strategy:

Basically, formulation of marketing strategy consists of three main tasks: 1. Selecting the target market, 2. Positioning the offer, 3. Assembling the marketing mix. 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.

SELECTING THE TARGET MARKET: To say that target market selection is a part of marketing strategy development is just stating the obvious. It does not fully bring out the import of the inseparable linkage between the two. When the selection of the target market is over, an important part of the marketing strategy of the product is determined, defined and expressed. Marketing targeting simply means choosing one’s target market. It needs to be clarified at the outset that market targeting is not synonymous with market segmentation. Segmentation is actually tee prelude to target market selection. One has to carry out several tasks besides segmentation before choosing the target market.

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. 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.

STRATEGIC MARKET SEGMENTATION: Market Segmentation is “dividing up a market into distinct groups that (1) Have common needs and (2) Will respond similarly to a marketing action”, which was said by Eric N. Berkowitz, Roger A. Kerin, and William Redulius.

The Segmentation process involves five distinct steps:

➢Finding ways to group consumers according to their needs.

➢Finding ways to group the marketing actions – usually the products offered – available to the organization.

➢Developing a market-product grid to relate the market segments to the firm’s products or actions.

➢Selecting the target segments toward which the firm directs its marketing actions.

➢Taking marketing actions to reach target segments.

Markets can be segmented using several relevant bases. For example, demographic characteristics of consumers, such as age, sex, income/purchasing capacity, education level etc. form one base for segmentation. Geographic characteristics constitute another and buying behavior of the consumers forms yet another base.

The various types of segmentations are: * Geographic segmentation * Demographic segmentation * Psychographic segmentation * Buyer behavior * Benefits segmentation * Volume of purchase segmentation

POSITIONING: 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”. Definitions of product positioning:

Sengupta, in his book Brand Positioning says, “ The aim of product positioning is to create a perception for our brand in the prospect’s mind so that it stands apart from competing brands… we must cover that space in the consumer’s mind as if we had won a long-term lease. We must find a strong position in that mind and sit on it….”

Michael Rothschild, in his book Marketing Communications–From Fundamentals to Strategies says, “Positioning refers to the place a brand occupies in the mind in relation to a given product class. This

place was originally a product-related concept….Concerning market structure. The concept now refers to the place that the brand holds in the consumer’s mind related to perceptions and preferences”. Developing a Positioning Strategy: To create a position for a product or service, Trout and Ries suggest that managers ask themselves six basic questions. 1. What position, if any, do we already have in the prospect’s mind? 2. What position do we want to own? 3. What companies must be outgunned if we are to establish that position? 4. Do we have enough marketing money to occupy and hold the position? 5. Do we have the guts to stick with one consistent positioning strategy? 6. Does our creative approach match our positioning strategy?

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.

ISSUES IN PRODUCT POSITIONING:

* Where is the new offer going to compete? As what?

* Which product function/customer need is it trying to meet? * What other product categories serve this need? * In other words, what are the substitute products that serve the same need? * Where is the real gap, where is such a new offer most welcome and wanted by the market? * What are company’s competencies to fight here?

ISSUES IN BRAND POSITIONING:

In deciding the Brand positioning, the issues are: * Which are the competing brands in the chosen product category? * What are the unique claims/strengths of the various brands? * What position do they enjoy in consumer’s evaluation and perception? * What is the most favoured position…? And yet vacant? * Can the new brand claim the needed distinction and take the position and satisfy the need? 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 target 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 faring 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.

The promotional mix

Advertising

Personal selling Direct marketing Sales promotion Publicity/ public relation Interactive/ internet marketing

➢Advertising: Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement, whose advertising space or time is donated by the media. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. It is also very important promotional tool, particularly for companies, whose products and services are targeted at mass consumer markets. It is a very cost-effective method for communicating with large audiences. It can be used to create brand images and symbolic appeals for a company or brand.

➢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: 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 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.

ASSEMBLING THE MARKETING MIX:

Assembling the marketing mix means assembling the four Ps of marketing in the best possible combination. Involved in this process are the choice of the appropriate marketing activities and the allocation of the appropriate marketing effort/resources to each one of them. The firm has to find out how it can generate the targeted sales and profit. It considers different marketing mixes with varying levels of expenditure on each marketing activity and tries to figure out the effectiveness of different combinations in terms of the possible sales and profits. It then chooses the combination/mix of products, price, place and promotion that is best according to its judgment. Since marketing is essentially an interaction between the marketing mix and environmental variable, and since the latter and non-controllable, marketing becomes synonymous with assembling and managing the marketing mix. Of course, while assembling the marketing mix, the marketing manager will take due note of the environmental variables. Not only will he take due not of them, he will ensure that his marketing mix suits the environmental variables. And, it’s it factor that renders the task much more complex.

The Four Ps of Marketing:

It was James Culliton, a noted marketing expert, who coined the expression marketing mix and described the marketing manager as a mixer of ingredients. To quote him, `The marketing man is a decider and an artist – a mixer of ingredients, who sometimes follows a recipe developed by others and

sometimes prepare his own recipe. And, sometimes he adapts his recipe to the ingredients that are readily available and sometimes invents some new ingredients, or, experiments with ingredients as no one else has tried before. Subsequently, Niel H.Borden, another noted marketing expert, popularized the concept of marketing mix. It was Jerome McCarthy, the well-known American professor of marketing, who first described the marketing mix in terms of the four Ps. He classified the marketing mix variables under four heads, each beginning with the alphabet “P”.

* Product * Place * Price * Promotion

McCarthy has provided an easy-to-remember description of the marketing mix variables. Over the years, the terms – Marketing mix and Four Ps of marketing have come to be used synonymously. Assembling and managing the marketing mix is the crux of the marketing task. And, it is through the marketing mix that the marketing manager achieves the marketing objectives.

MARKETING STRATEGIES FALL UNDER TWO CATEGORIES: We have seen that target market selection, positioning and marketing mix formulation together constitute marketing strategy. We have also seen that a firm can assemble the marketing mix elements in many different ways, depending on the relative weightage it assigns to the different elements. The scope to carve out different combinations is, in fact immense. As a result, business firms are able to employ an abundance of strategies and strategy stances in their relentless race to stay ahead of competition. However, a close scrutiny will reveal that all these strategies can be fitted into two broad categories 1. PRICE ORIENTED MARKETING STRATEGY 2. DIFFERENTIATION ORIENTED MARKETING STRATEGY. In other words, there are only two broad routes available for forging marketing strategies: any strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented strategy.

PRICE ORIENTED MARKETING STRATEGY:

Firms taking to the price route in marketing strategy compete on the strength of pricing. They use price as their competitive lever. They juggle the price of their product to suit the prevailing competitive reality. They can afford to offer lower prices and still make the targeted profits. They elbow out competition with the cushion they enjoy in the matter of pricing. Price route requires cost leadership; evidently, a firm opting for the price route will have to have a substantial cost advantage in their operations. It should be enjoying an overall cost leadership in the given industry and its lower cost should enable it to secure above average returns inspite of strong competition. The cost advantage can emanate from different factors like, scale economies, early entry, a large market share built over a period of time, locational advantage, or synergy among the different businesses. The firms whole strategy, in fact will revolve around building such cost advantage. To successfully practice a price-led strategy, a firm should have consciously taken to the idea sufficiently early in its evolutionary process and prepared itself for adopting such a strategy.

DIFFERENTIATION ORIENTED MARKETING STRATEGY: The differentiation route of strategy revolves around aspects other than price. It works on the principle that a firm can make its offer distinctive from all competing offers and win through the distinctiveness. And, a firm adopting such route can price its product on the perceived value of the attributes of the offer and not necessarily on competition-parity basis. Maximum scope for exploiting differentiation remains with the product. While all the 4Ps of marketing are important elements from the point of view of strategy, the other Ps normally go as elaborations of the offer, while the product forms its core. Product differentiation is of vital importance in product management and has great potential in forgoing successful marketing strategies.

The product can be differentiated along two major planks: 1. Tangible product attributes and functions, 2. Intangible characteristics and emotional associations. The tangible product attributes and functions are: * Differentiation based on ingredients, * Differentiation based on functional value, * Differentiation based on additional features, * Packaging contributing to differentiation,

* Differentiation based on Quality, Operational Efficiency, Technology, Service.

DIGITAL MARKETING: Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole host of elements such as mobile phones, sms/mms, display / banner ads and digital outdoor. BUZZ MARKETING (WORD OF MOUTH): Word of mouth is a reference to the passing of information by verbal means, especially recommendations, but also general information, in an informal, person-to-person manner. Word of mouth is typically considered a face-to-face spoken communication, although phone conversations, text messages sent via SMS and web dialogue, such as online profile pages, blog posts, message board threads, instant messages and emails are often now included in the definition of word of mouth. There is some overlap in meaning between word of mouth and the following: rumor, gossip, innuendo, and hearsay; however word of mouth is more commonly used to describe positive information being spread rather than negative, although this is not always the case. Word-of-mouth promotion, also known as buzz marketing and viral advertising, is highly valued by advertisers. It is believed that this form of communication has valuable source credibility. Research points to individuals being more inclined to believe WOMM than more formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals). In order to promote and manage word-of-mouth communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response. Influencer marketing is increasingly used to seed WOMM by targeting key individuals that have authority and a high number of personal connections. EVANGELISM MARKETING: It is an advanced form of word of mouth marketing (WOMM) in which companies develop customers who believe so strongly in a particular product or service that they freely try to convince others to buy and use it. The customers become voluntary advocates, actively spreading the word on behalf of the company. Evangelism literally comes from the three words of 'bringing good news' and the marketing term justly draws from the religious sense, as consumers are literally driven by their beliefs in a product or service, which they preach in an attempt to convert others.

EFFECTIVE SALES PROMOTION: Sales promotion consists of diverse collection of incentive tools mostly short term, designed to stimulate quicker and greater purchase of particular products of services by the consumer. Sales promotion is the only method that makes use of incentives to complete the push-pull promotional strategy of motivating the sale force, the dealer and the consumer in transacting a sale. Price-Offs Offer: Price-off offers refers to offering the product at lower than the normal price. This encourages immediate sales, attracts non-users, induces product trail and counters competition. Premium: Premium refers to the offer of an article of merchandise as an incentive in or to sell the product. Coupons: In order to encourage product trail, stimulate re-purchase rate and build loyalty through newspapers. Dealer stock display contests: It is a type of point of purchase advertising which uses the show windows of the dealer for providing exposure to the sponsor’s products. Dealer participating enthusiastically and creatively are awarded DEFENDING MARKET SHARE: While trying to expand total market size, the dominant firm must continuously defend it current business against rival attacks. This step is very much essential for the market leader firm because the challenger firms are constantly to exploit the weaknesses of the leader firms. EXPANDING MARKET SHARE: Market leaders can improve their profitability by increasing their market share. But for few market leaders whose share in the total market is insignificantly high, the expansion of market share and the total market may be proved both as expensive and risky. Therefore it is better for such leader firms in spending their time in building up the market size rather than expanding the market share. The reason for this action may be attributed to two factors: 1. The market leader firms might attract the provisions of various anti-trust legislations. The rival competitors will try to force the Government to bring legislations against the “MONOPOLISATION” 2. The second reason being the economic factors. The cost of making further gains in the market share after a large share has been achieved may rise fast and reduce the profit margin. HARASSMENT STRATEGY:

The market leader firm will resort to a harassment strategy in order to promote its market share. As a part of this strategy, the leader form might approach the suppliers and threaten to reduce its purchases. If the latter supply the upstart firm, sometimes it might put pressure on distributors not to carry the competitor’s product. The salesman of leader firm might speak negatively about competitors. It may also try to hire away the better executives of an aggressive firm. Sometimes, the market leader firm will try to restrain these competitions through legal devices. It might push legislation that would be more unfavorable to the competitors than to it. The aim of defensive strategy is to reduce the profitability of attack, divert attacks to less threatening areas, and lessen the intensity of attack. Any attack is likely to hurt profits. But the defender’s form and speed of response can make an important difference in the profit consequences. There are 6 defense strategies that a dominant firm can use: 1. Position Defense: The basic idea of defense is to build an impregnable fortification around one’s territory. 2. Flank Defense: The market leader should not only guard its territory but also erect outposts to protect a weak front or possibly serve as an invasion base for counter attacking. 3. Preemptive Defense: A more aggressive defense maneuver is to launch an attack on the enemy before the enemy starts its offense against the leader. Preemptive defense assumes that an ounce of prevention is worth more than a pound of cure. 4. Counteroffensive Defense: Most market leaders, when attacked will respond counterattack. The leader cannot remain passive in the face of a competitor’s price cut, promotion blitz, product improvement, or sales territory invasion. The leader has the strategic choice of meeting the attacker frontally, maneuvering against the attacker’s flank, or launching a princer movement to cutoff the attacking formation from their base operation. 5. Mobile Defense: Mobile defense involves more than the leader aggressively defending it territory. In mobile defense, the leader stretches it domain over new territories than serve as future centers for defense and offense.

6. Contraction defense: Large companies recognize that they can no longer defend all the territory. Their focus is spread too thin, and competitors are nibbling away on several funds. The best course of action then appears to be planned contraction (also called strategic withdrawal).

INNOVATION STRATEGY: The market leader may produce several strategies in respect of new product ideas, customer services, means of distribution, cost cutting discovery. In addition to these, a leader may discourage its competition particularly challenge firm. FORTIFICATION STRATEGY: In order to protect its market share, the market leader may try to keep it product prices reasonable in relation to the perceived valued of the offer and competitors offer. The leader produces it brand in a variety of sizes and firms. CONFRONTATION STRATEGY: If leader firm faces an extremely aggressive challenger, whose actions demand a quick and direct response. In such a situation, the market leader will engage any promotional war, engaging in a massive promotional expenditure that the aggressive challenger cannot match. The leader firm may engage in the price war whenever a new challenger is considering to enter in its market. This strategy will frighten the potential competitions and make then to withdraw from entering the market.

MARKETING STRATEGIES OF FORD

MARKETING STRATEGIES OF FORD:

* Product differentiation based on operational efficiency: 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 path holes 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) * Strategic segmentation of cars: The Ford in India has launched the car only for few segments of people. The segmentation of car buyers based on price preferences is: •Family car segment: These cars form a reasonably sizeable segment of the market (around 15 percent). Preferred price range is from 5 lakh to 6 lakh. ‘FORD FIGO, 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 NEW FIESTA’ comes under this segment of cars.

•SUV segment: The buyers of this segment like to have a big vehicle. And these cars are also useful for sport riding and even on hill areas. Their body is designed similar to off road vehicles, which can withstand to Indian roads. ‘FORD ENDEAVOUR’ occupies this segment.

* Strategic Promotions by FORD: Ford follows the promotions at two levels, they a 1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level. In the first step the products of vehicles manufactured by the Ford Automotive 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 newspapers, 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. Maintaining Data Bank: In this the dealer collects personal/bio-data (address and contact number) of many people from various organizations and different sector who are ready to buy the vehicles and who change the vehicles regularly. These people are met-in person or contacted through their contact number. The various new features and new offers regarding the vehicles are advocated to them and are given discounts on group purchase of vehicles, i.e. if 5 or more friends in the group purchase the cars at a time then they are given special discounts on the vehicles.

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. A sales executive 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. 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.

Conducting Customer Delight Program:

This is a unique program conducted by the Ti Ford. This is a program conducted to retain the old customers of the Ford. The old customers of the Ti Ford are meeting personally and they are requested to give their feedback by filling in the questionnaire which is specially prepared for them. In this questionnaire their problems regarding the vehicle and also their post-sale service experience are taken. If there exists any problem, then the Fortune Ford service men try to resolve the problems of their customers as soon as possible and makes the customer satisfied. This is a technique to attract the new customers by satisfying the old customers and gaining goodwill in the market.

STRATEGIC SALES STANDARDS:

Ti Ford maintains strategic sales standards in the following manner:

! The Sales faculty is clean, tidy and inviting, making customers comfortable while purchasing products and availing services. ! Customers are courteously acknowledged within two minutes of their arrival and are advised that a Sales Consultant will be available upon request. ! The Sales Consultant’s appearance and dress will be of the highest standards. ! An advisory relationship is established between the customer and the Sales Consultant who listens to the customer, identifies their needs and ensures that they are met. ! A pleasant, non-pressured purchase experience will be provided during which a thorough demonstration of the vehicle features and benefits will be made. ! A test drive will be offered to all customers. ! Using a check list, the Sales Consultant delivers the vehicle in perfect condition when promised. ! Customers will be contacted within one week after delivery to ensure total satisfaction.

MAINTAINING SERVICE STANDARDS:

! An efficient service facility allows a customer to avail all the service provided by Ti 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: Ti Ford gives an extended warranty to its customers where there will be extended time duration in the warranty. What is Extended Warranty? ♦Factory Warranty covers only for a specific period of time/mileage. ♦After the factory warranty expires; customer is exposed to the risk of parts failures. This is applicable for any machine/equipment/vehicle. Extended Warranty: ♦Is an extension of Factory Warranty ♦Offers almost similar coverage as Factory Warranty ♦Comes with a time-bound (eg. 1yr/2yrs but unlimited mileage cap) ♦Covers all Mechanical and Electrical Failures ♦Covers labour Why is extended warranty needed? ♦Offers peace of mind motoring ♦Protects against unexpected and non-budgeted expenses ♦Can be transferred, hence increases the resale value. What does it NOT cover? ♦Does not cover wear and tear of parts ♦Does not cover scheduled service items ♦Does not cover accident repairs

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

TOTAL MAINTENANCE PLAN What is Total Maintenance Plan? ♦Cost of ownership is the key factor while considering vehicle purchases ♦As part of regular maintenance, customers spend on a) Maintenance parts that are to be replace at specific intervals b) Replacement of worn out parts c) Labour charge for the above ♦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” What does it cover? ♦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 What does it NOT cover? ♦Accident repairs ♦Tyres ♦Fuel Benefits to the customer ♦Total peace of mind ♦Fixed price for next 2 to 3 years ♦Increased residual value of the car ♦Only Ford genuine parts are used ♦Can avail this service across the country at all Ford authorized outlets ♦Transferable ♦Incase of total loss, can be cancelled ♦Ford factory backed programme ♦Diagnosis/repairs as per recommended standards and practices ♦Vehicles serviced by Ford trained and certified technicians

RESEARCH METHODOLOGY

RESEARCH METHODOLOGIES AND LIMITATIONS: MARKETING RESEARCH: Definition of marketing research as approved as by the board of directors of the association of American marketing association is: “Marketing research is the function which links the customer and public to the marketer through information – information used to identity and define marketing opportunities and problems generate define and understanding of marketing as process”.

Simply, marketing research is the systematic design collection analysis and reporting of data finding relevant to a specific marketing situation facing the company. Carefully planning through all stages of the research is a necessity. Objectivity in research is all-important. The heart of scientific method is the objective gathering of the information. The function as marketing research within the company is as to provide the information and analytical necessary for effective. ➢Planning the future of marketing activity. ➢Control of the marketing operation in the present. ➢Evaluation of marketing results. A research may undertake any of the three types of research investigation depending upon the problem. This type of research included: 1. Basic research 2. Applied research 3. Designated Fact Gathering

BASIC RESEARCH: It is also known as the pure fundamental research, which refers to those studies, sole purpose of which is the discovery of new information. It is conducted to extend the horizons on given area of knowledge with no immediate application to existing problems. APPLIED RESEARCH: It is attempt to apply the various marketing technique, which have been developed as research, first and later on they become applied research techniques. It is on attempt to apply the basic principles and existing knowledge for the purpose of solving operational problems. DESIGNATED FACT GATHERING: It refers to a research where the investigation attempts to gather some pre-determined data.

STEPS IN MARKETING RESEARCH: Marketing research process can be out through following steps.

Define the problems and research objectives

Develops the research plan

Collect the information

Analysis and interpretation

Present the finding

RESEARCH METHOD: It must be classified on the basis of the major purpose of the investigation. In this problem description studies have been undertaken, as the objective of the project is to conduct the market shares study to determine the share of market received by the company to the competitor. DATA COLLECTION: The information needed to further proceed had been collected through primary and secondary data. PRIMARY DATA: It consists of information collected for the specific purpose, survey research was used and he all the details of Ford and their competitors were contacted. Survey research is the approached gathering description and information. CONTACTED METHOD: The information was solicited by administering structured questionnaire to the customer and dealers, thus getting to know directly from the dealers their sales before and after sales service. SECONDARY DATA COLLECTION: The secondary data consists of information that already existing somewhere having been collected for another purpose. Any researcher begins the research work by first going through secondary data. Secondary data includes the information available with company. It may be the findings of research previously done in the field. Secondary data can also be collected from the magazines, newspapers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION: The basic method adopted in conducting the study is a structured questionnaire. Questionnaire is administered on the sample respondents. However there are certain cases where personal interactive method is followed with customers to find the satisfaction level.

ANALYSIS AND INTERPRETATION

Analysed Survey Report

1. Which of the following car brand would you prefer? a) Tata b) Ford c) Hyundai d) Mahindra e) Maruti Suzuki Data Analysis: Name of the car brand | Tata Ford | | No of customers 120 100 150 60 | 600 | | | | | 170 | |

Hyundai | Mahindra | Maruti Suzuki Total |

Interpretation: This interpretation is meant to present that the most affordable car brand by common people is Maruti Suzuki.

2. Which of the following Ford car you own? a) Fiesta Classic b) New Fiesta c) Endeavour d) Figo

Data analysis:

Name of the car Fiesta Classic New Fiesta | Endeavour | Figo Total | |

| | 27 15 9 100

No of customers 49 | | | | |

|

Interpretation: This question is about meant for taking the information regarding the most preferred car in the Ford cars. From the above graph it is found that most preferred vehicle of Ford car is Fiesta classic.

3. What do you like about your Ford car? a) Style/design b) Comfort

c) Ford brand d) Service Data analysis: Customer preference | Style/design Comfort | Ford brand Service | | 20 | | 35 | 26 | No of customers | 19 |

Interpretation: This question is meant to know the customers preference and likes towards the cars. From the data we can position our product to the comfort seeking group of people.

4. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance d) Brand name

Data analysis: Customer perspective | Fuel efficiency Durability | | | 30 | | 17 | 19 | 23 | No of customers 11 | |

Low maintenance Sound quality Brand name |

Interpretation: From this question we can position the cars according to the customer’s perspective. Many of the Ford customers are buying the cars by seeing its brand name only. The no. of customers satisfied with the fuel efficiency is very low.

5. How did you come to know about this car before purchasing?

a) From friends, relatives (buzz) b) Advertisements c) Car experts d) Sale’s persons visit e) Auto magazines

Data analysis: Source of awareness | Friends, relatives Advertisement Car expert Sales person visit Auto magazines | | | | | No of customers | 22 | 44 | 4 | 10 | 20 |

Interpretation: Most of the Ford customers came to know about their vehicle through advertisement only. The major media that attracted the customers is television.

6. Can you share your experience with after sale service support?

a) Very much satisfied b) Satisfied c) Ok d) Not satisfied

Data analysis: Post service experience Very much satisfied | Satisfied | Ok | | 30 | 40 | 14 | | No of customers | 16 |

Not satisfied

Interpretation: This question is meant to know the service levels of the authorized dealer. Most of the customers are just telling about the service. Only a very few customer are not satisfied with the service. Even some of the customers are not satisfied with the service given by the authorized servicemen.

7. Where do you get your car serviced regularly?

a) At authorized service center b) At a local workshop near my home

Data analysis: Place of service | | | No of customers | 85 15 | |

At authorized service center At a local workshop near home

Interpretation: Most of the Ti ford customers are interested to service their vehicles only at the authorized dealers. From this we come to know what the importance of authorized service centers for car is.

8. Which bank do you prefer in getting financial help while purchasing a car?

a) ICICI b) HDFC c) SBI d) Others Data analysis: Name of the bank ICICI HDFC SBI Others | | | | | No of customers 36 20 | | |

40 | 4 |

Interpretation: Most of the customers prefer ICICI and SBI banks for taking financial help while purchasing car. Customers are asking 0% interest on financial help provided by the banks.

9. Which type of finance do you prefer?

a) In house finance b) Out house finance

c) No difference between the two

Data analysis: Type of finance In house finance Out house finance | | | No of customers | 50 | 32 | 18 |

No difference between the two |

Interpretation: To know the customers opinion about the finance and their interests in preferring the finance from various sources, this question is prepared. Most of the customers prefer only in house finance compared to outhouse finance.

10. To which media do you get expose regularly? a) Televisions b) Magazines c) News papers d) F.M/Radio Data analysis: Media Televisions Magazines News papers F.M/Radio | | | | | No of customers 45 18 27 10 | | | | |

Interpretation: From this analysis we come to know that most of the customers are interested in watching televisions, which is a good media for communicating with people and delivering our intentions about product.

11. Which kind of T.V. channels do you watch regularly? a) National news channels b) Regional news channels c) Sports channels d) Entertainment channels

Data analysis: T.V channels | | 30 | 14 | | 36 | No of customers | 20 |

National news channels Regional news channels| Sports channels |

Entertainment channels

Interpretation: This question is meant to know the interests and preferences of customers towards T.V. channels. More than quarter of the sample size showed interest only on the entertainment channels and next preference goes to the regional news channels.

12. What’s your opinion on the price list of Ford cars? a) Affordable by common man b) Affordable only for rich man c) Can’t say Data analysis:

Customer opinion on price list of ford car Affordable by common man Affordable only for rich man Can’t say | | | 15

| 55 30 |

No of customers | | |

Interpretation: More than 50% of customers think that Ford cars are affordable by common men.

13. What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest

Data analysis: Offers | Free Insurance | | | | No of customers | 20 | 15 40 | | 25 |

Special discount on sale of cars Extending the service period

Finance availability with 0% interest

Interpretation: By the result of this question we come to know about the various promotional techniques / offer which attract the customers. From the above analysis many customers are expecting the extension in the service period from the various offers given to them.

14. What more do you expect from your dealer?

a) Information about new cars b) Information about service and mileage c) Assistance regarding loans and insurance d) Understanding customer needs

Data analysis: Expectation of customer Information about new cars | | | No of customers 8 | 55 12 25 | | | |

Information about service and mileage

Assistance regarding loans and insurance | Understanding customer needs |

Interpretation: Most of the customers are expecting the information about service and mileage regarding the cars from the dealer. From the above analysis we come to know about the customer’s expectations and their post purchase service demands from the dealer.

15. How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? a) I will not respond b) Lost my privacy c) Interested in knowing (if I feel a need of it) Data analysis: Customer opinion I will not respond | | No of customers | 25 |

Lost my privacy

| |

15 | 60 |

Interested in knowing (if I feel a need of it)

Interpretation: This question is prepared indirectly to know about the customer’s opinion about the Data Bank maintenance by the Ti Ford. In reply majority of the customers gave a positive reply by showing interest in knowing about the cars when a sales person gives a detailed description about the cars.

16. What’s your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer

Data analysis: Customer opinion on ambassador | Very necessary Not needed | | No of customers 90 10 | | 0| |

Waste of money for manufacturer |

Interpretation: This question is meant to know about the importance of Brand Ambassador for a car in the customer’s point of view. Most of the Ford customers think that a Brand Ambassador is very necessary for promoting a car.

17. What’s your opinion about the previous Ambassador Abhishek Bachan for the car Ford Fiesta?

a) Full filled the purpose b) Unable to attract customers c) He was not apt for it. Data analysis: Customer opinion | No of customers | 75 | 5 | | 20 |

Full filled the purpose | Unable to attract customers He was not apt for it |

Interpretation: Most of the Ford customers think that the previous Brand Ambassador Abhishek Bachan for the car Ford Fiesta full filled the purpose and he was able to increase the sales of the cars Fiesta.

18. Whom do you suggest as a right person for promoting a car? a) Sports person b) Film stars c) Car expert d) Any celebrity

Data analysis: Customer suggestion | Sports person Film star | Car expert Any celebrity | | | 35 No of customers 30 | 27 8| | | |

Interpretation: Most of the customers of Ford suggest a film star as the best ambassador. Because many of them get attracted only to their favorite film stars other than other brand ambassadors.

19. What other brand(s) did you seriously consider before making this car purchase? a) Hyundai b) Skoda c) Maruti d) Honda e) Toyota Data analysis: Brand name Hyundai | Skoda | | No of customers | 29 | 15 | 22 | 19 | 15 |

Maruti | Honda | Toyota |

Interpretation: Most of the Ford customers are opting for Hyundai when they are asked to consider a brand other than Ford.

SUGGESTIONS

VALUABLE SUGGESTIONS GIVEN BY FORD CUSTOMERS:

! Please try to increase the number of Service centers. ! There is no proper response from the service men at service station. Please recruit efficient service men in the service centers. ! The service men in the service centers are unable to understand the problems told by us, and they are not resolving the cars problems. ! Provide information on service and mileage regularly. ! Please provide information about new cars along with their price lists at least once in 6 months. ! Advertisements through televisions can influence many categories of people. So try to concentrate on this segment. We don’t see or find much of the Ford car advertisements in T.V except Fiesta. ! Try to provide financial facility at 0% interest. ! Customer should be educated about the maintenance of the vehicle i.e. maintenance tips should be provided. ! Mileage of the cars is not up to the expectations. ! Mileage of Fiesta is very worst it’s giving only 9 to 11 Kms per liter. Please try to rectify it. ! The quality of the sun proof coating used is of very low quality, vehicle color is getting shaded very quickly. ! Please send the specially appointed feedback taking staff on Sunday evenings only. ! The sales people present in the showroom respond to us properly when we come to purchase a new car, but they do not respond when we come to tell our problems regarding the cars.

BIBLIOGRAPHY

REFERANCE BOOKS:

MARKETING MANAGEMENT

V.S.RAMASWAMY AND S.NAMAKUMARI

ADVERTISING AND PROMOTIONS

GEORGE E.BELCH & MICHAEL A. BELCH

WEBLIOGRAPHY:

www.fordindia.com

www.wikipedia.com

www.google.com

AUTO MAGAZINES:

* AUTOCAR * OVERDRIVE

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