Ford Motor Company-BCG MATRIX

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Ford Motor Company
Task 1
Examine Range of Marketing Strategy Options.

The Ford Motor Company which includes
The brands: Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Aston Martin and Land Rover are currently
experiencing acute financial difficulties. It had made redundant more than 5000 employees
worldwide since the recession broke out, made more than £5b group loss in 2006 and it has seen its
share price devalued by 30% since 2002. Part of Ford's problem lies in the area of financial control (it
has been hit by successive rise in labor and materials costs) but poor marketing is also to blame.
Commentators have observed that Ford has lost market share to a number of Far East manufacturers
such as Hyundai who are able to market better value products and that are the Ford brand is
becoming “tired”.
* With reference to appropriate strategic marketing concepts and models, analyze the company's
current position and strategies used over the last five years.
* Outline a number of suitable strategic options that Ford employ in order to turnaround the
company's position and conclude by recommending (support by robust argument) the most
appropriate option to turn Ford into a sustainable profitable organization.
Limits the analyze to the marketing aspects of the problem only.

Introduction:
Ford motor company, one at the world's largest manufacturers at automobiles and the world's
largest producer at trucks. Under the leadership at the Henry ford, the company implemented the
assembly lime method of mass production and made the cars affordable for middle-class consumers.
Ford is the second largest automaker in the United States based on overall sales, trading only general
motors' corporation. Ford's subsidiaries include the Hertz corporation, the world's largest car rental
company, and the world's largest provider at automotive financing. Ford markets vehicles under the
brands of ford, Lincoln, Mazda, Mercury and Volvo.

Product Portfolio:
Ford Company have different product under different brand. The ford, Lincoln, Murcury, Mazda,
Volve , Jaguar , Aston, Martin and Land Rover have different position in the market. The brand can be
take in consideration of it development in different product portfolio model. They are:

BCG Matrix
Ans off Matrix:-

Ans off Matrix:Various strategy models and tools can be employed to analyze and make marketing standard for
capability, reliability and quality, ford is now offering even more truck for the money with the new
2004 F-150- including unsurpassed fuel economy.

Market Development Strategy:
Ford motor company has applied different market strategy for the maintaining the new market
position in new market for the current product. Ford continues to plan the special edition models of
Mustang. The Shelby GTSOOKR will goon sale in spring 2008. A built in model also planned sometime
in 2008. Ford could put the next generation Mustang on the global rwd platform being developed in
Australia around the 2012 or 2013. The fusion, which is now rides modified Mazda 6 platform, is likely
to move to frods global EUCD platform around the 2018 or 218 modal year. The north American from
and BCG uropean madeo are likely to become are global uehicle , with local market tweaks.

Diversifacation:Frod mator company is that which try to developnew product and expand the product in new market
area for this the company have to face the different risk for eg. 4th September 2009. Ford motor
indoresia (FMI) , Jakarta has recently opened a new us $500 million passenger car plant at their joint
uenture manufacturing facility , autoalliance Thailand (AAT), in Rayong, Tailand. This additional
investment and expansion program of this global manufacturing hud was announced in 2007.At the
at ramadhan Jakarta police for sales 600 ford focus vehicles and 591 Ford rangers and will be
developed in 2009.This seems positive supports towards the product from customers.Indonesia the
great quality at vehicles and services are provided for the customers.FMI is preparing to welcome the
fiestia in 2010.

BCG MATRIX
BCG (Boston consulting Group) is produced by the Harvard Business school,portfolio Management
based on market growth .BCG matrix is use to prioritize opportunities and get the best return or
company effort.Under this model.Ford motor companys brand can be measured and valued
properly.This helps to know the actual position of the company.

Star
Accordingto the BCGmodel the ford motor company Mustand brand growth is in the top position
which have high market share and profit.Mustang remains the number one sport car by a wide
margin, with the new 2010 model driving showroom traffic.In april. Mustang had a 40% share of the
retail sports car segment.

Cash cow
Cash cow shows the high market share and low market growth rate.ford motor companysbrand are
profitable and reliable.The product development costs are relatively law.ford motor company product
are focused for economic class people so it has high market share get low growth rate.

Question marks

Question marks
Ford motor company have the law market share and high mix growth rate. There are more
competitive for this types at market or product. The product is sale in less number for the selective
people or area. For example Ferrari which is high price car for high class people. So that the product
should be product with carefully .The loss mistake in decision making create more problem.

Dogs
In these characteristics the market share and market growth rate is low. The product in this
characters market is existing for doing competition to the competitors products. Ford motor
company brand Jaguar and land Rover had faced the problem and connate generated profit at 2006,
to early at 2008 but finally the Ford motor company sale the brand to Tata company on 2008 march.
Ford motor company sales its brand or liquidate too solve the financial difficulties.

Posters generic strategies
Michael Porter has described a catagory of scheme which consist of three general types of strategies
to maintain and achieve competitive advantages in the business which can be achieve by core
competency product differentiation strategies and product cost. The strategies based as product
differentiation, cost leadership and focus.

Product differentiation
Differentiation is aimed at the bread market that involves the creation of a product or services that is
perceived through out , dealers ,networks or customers and increase the loyalty of buyer product
differentiation is helpful to complete successfully. It creates a better barrier. For example ford motor
company combinations at auto manufacturing and financing .It has differentiated on vehicles
development and engineering control.

COST LEADERSHIP
This strategy emphasizes efficiency. The product are produced in high or mass with economic which
is available for consumer to a very large base. To compete with competitior the mass production
helps to lower the cost and lead the market .For example Ford motor company have to maintain a
low cost base by controlling production cost ,increasing their capacity utilization, controlling material
supply or product design, work force dedicated for low cost production ,less spending on marketing
helps a company lower the cost .which is support for cost leadership.

FOCUS
On this strategy business firm or company concentrates on a select few target market .It target the
certain age group , class people for the better market .It is also called segmentation strategy or rich
strategy. A focus strategy should target market segments that are less valuable to substitutes or
where a competition is weakest to earn above average return on investment .For example Ford
motor company focused named a top campus car as consumers seek back to school values.(which
have features such as

CONCLUSION

CONCLUSION
* In conclusion Ford motor company is suffered by lack of proper management .The Ford company
had sell its brands Jagaur and land Rover to Tata motor company on 2008.The company cannot focus
its particular area and differentiate product to compete the competitiors. Ford motor company have
to apply different marketing strategies and analysis the product portfolio o know which area of the
company is better and what technique or strategy should be apply for product development. Ford
motor company have to focus the target market by doing product portfolio analysis achieve good
market position.

Introduction
Range of Marketing Strategy Options were used in Ford Motor Company for last 2002 to 2006 to
make it sustainable.
Using the range of marketing strategy options, critically I am about to examine a range of marketing
strategic options in the Ford Motor Company. The general evaluation of Marketing Strategy is to be
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* Analyze the company's current position and strategies used over the last five years.
higher:

* Outline a number of suitable strategic options that Ford employ in order to turnaround the
company's position and conclude by recommending
by robust argument) the most
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appropriate option to turn Ford into a sustainable profitable organization.
* Analyze to the marketing aspects of the problem only.

Company Profile
Founded in 1903 by Henry Ford, and based in the Detroit suburb of Dearborn, Michigan, the Ford
Motor Company quickly revolutionized the market for cars. After several years of making a range of
autos, in 1908 Ford decided to concentrate on producing only one car, the Model T. His goal was to
compete on the basis of price not product variety. Crucial to this strategy was his adroit use of the
moving assembly line, where workers specialized in one minor part of the car-assembly process. As
prices fell, sales of the Model T rose from 10,607 in 1909 to 472,350 in 1916. By 1921 Ford accounted
for 62 percent of all car sales. As the 1920s wore on, however, many consumers demanded greater
product variety in addition to low prices. As sales of the Model T fell, Ford Motor replaced it with the
Model A, which sold 4.5 million units from 1927 to 1931.
During World War II, Ford Motor Company played an active role in the war effort. It produced a wide
range of military hardware, including tanks, trucks, jeeps, engines, and airplanes. Edsel Ford, who had
assumed the presidency of the company from his father in 1918, died in 1943. Henry Ford reassumed
formal control of the company after his son's death, and helped position his grandson Henry Ford II
to become president in 1945. Henry Ford died in 1947.
Ford Motor Company regained its place as America's number two car producer in 1950, overtaking
Chrysler, which had supplanted it in the early 1930s. In 1963 Ford unveiled one of its most popular
cars, the Mustang, which registered more than 500,000 sales in its first eighteen months. In 1971 Ford

introduced another model, the Pinto, which was designed to compete in the sub-compact market.
Despite the Pinto's potential, it generated a good deal of negative publicity for the company after the
gas tanks in several cars exploded in rear-end collisions.
In 1979 Philip Caldwell replaced Henry Ford II as CEO, and within five years had helped Ford register
record sales and profits. Donald Petersen succeeded Caldwell as CEO in 1985, and under his direction
Ford acquired the British luxury car producer Jaguar and introduced the Taurus, a model that proved
very popular with consumers. As the twentieth century drew to a close, Ford was comfortably
positioned as America's second largest car producer, trailing only General Motors.

Mission and Objectives
* To become the world's leading Consumer Company for automotive products and services.
* We are a global family with a proud heritage passionately committed to providing personal mobility
for people around the world.
* We anticipate consumer need and deliver outstanding products and services that improve people's
lives.

Task 2
Outline a number of suitable strategic options that Ford employ in order to turnaround the
company's position and conclude by recommending (support by robust argument) the most
appropriate option to turn Ford into a sustainable profitable organization.

Task 3
Analyze the Limits to the marketing aspects of the problem only.

Conclusions
Ford Motor Company begun with Henry Ford and his revolutionary $5-a-day minimum wage scheme
and an –8-hour workday, by 2006Ford Motor was struggling to survive. From the advent of the
assembly line in 1913, well designed manufacturing has played a vital role at Ford Motor Company,
but by now Ford has eliminated 40 percent of its workforce by 2008 in an effort to cut manufacturing
costs. Ford has improved its competitive position by driving innovation. Successful innovation in
manufacturing process, product design, marketing approach and business structure has changed a
lot and finally Ford's image has been improved a lot.

INTRODUCTION
ASDA was formed by a group of farmers from Yokshive who formed associated daivies, which in 1965
become ASDA It is now the second largest grocery retailer in the UK based on reported turnover. At
the End of 2002,it had a network of 258 stores in the UK,with a very large average store size (around
4200msq), enjoying a total at 122000 full and part time staff. In June 199,Asda was acquired by
wal_mart_the worlds biggest retailer and biggest grocer. ASDA has an everyday low pricing (EDLP)

pricing policy. In 2009 April/March ASDA came with the slogan saving your money. Everyday, ASDA
has 150000 employers, whom it refers to as colleagues, ( 9000 part time, 60000 fulltime) . ASDA give
proper services to the customer for the betterment of the life.

MISSION/PURPOSE/VALUE OF ASDA
Decision of ASDA made by ASDA that affect the route of organisation need to show those choices to
others. The way in which ASDA does this is through it mission and values , which helps to understand
the direction in which the company is going for stockholder. A mission is to be Britain best value
retailer exceeding customers needs always.
As well as having a mission statement, ASDA has statement purpose. This helps stakeholders to
understand why the business exists. ASDAs affordable for every one.
ASDA also has a series of values.These are moral statements that help to incapsulate the companys
beliefs which then determine the decision and action it takes in the marketplace.ASDAs values are:
Respect for the individual
Strive for excellence
Service to our customers
Mission
Purpose

Values.
To aid to the new colleagus at ASDA in understanding the mission statement, purpose and values
through internet which the company can give proper care and service to the customer. so mission
statement, purpose, and values helps the manager to take appropriate decision at on time.

OBJECTIVES AND AIMS
The mains and objectives of ASDA are as follows:
To provide goods and services that are cheap and affordable to consumers or the public.
Reducing the cost objectives of their items product.
Recycling their waste.
Supporting voluntary services.
Packaging their products well.
To sell more food than anyone else, in more places and corner of the market.

MARKETING STRATEGY

Marketing strategy is a process that can be allow an organisation to concentrate its limited resources
on the greatest opportunities to increase sales and achieve a sustainable competitive advantages. A
marketing strategy should be centered around the key concept that consumer satisfaction is the main
goal.(Wikipedia).
So that ASDA is also presenting different types of skim for the customer satisfaction. ASDA gives on
low prices. For example,3 liters of juice in 2 pounds. cartain of beers in 10 pounds, buy one get one
free. Such types of different marketing strategy is ASDA following to attract the consumer and the
high volumes of product.

SWOT ANALYSIS
SWOT analysis is the key which help to know the internal and external environment of organisation
.Strength and weakness can be controlled by ASDA but opportunities and threats come from external
environment. We can view the 4 factors of environment. They are

STRENGTH;
Powerful retail brand and good position in the market.
Pursue low pricing strategy.
Wide range of products.
Number of stores increasing.
Financial resources.

WEAKNESS;
The company is global, but has a presence in relatively few countries worldwide.
It sell products across many sectors (such as clothing, food , or stationary),it may not have the
flexibility of some of its more focused competitors.

Task 3.B Private Labelling
Private labelling had become the issue in todays

References
Frank K. Reilly, 1994, Investment Analysis and Portfolio Management, 4th edn, Elizabeth Widdicombe,
USA
Robert E.H, Strategic Management- Concepts and cases: “Competitiveness and Globalization”, 8th
edn, South Western, USA
Dearborn, Mich., 2009, ”Ford Motor Company announces actions to improve balance sheet and
enhance automotive liquidity”, [online]. Available from www.media.ford.com/article_display.cfm?
article_id=25271&make_id=trust.html [01 November 2009]

Corporate Ford's Site, 1998, “Ford Motor Company”, [online]. Available from www.ford.com [02
November 2009]
Company Financials, 2009, “Ford Motor Company”, [online]. Available from
http://www.answers.com/topic/ford-motor-company#Corporate_governance [22 September 2009]

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