This plan outlines the international marketing strategy for Ford motor company in order to get a better grip of the Indian market through a launch of various vehicles, with a view to obtain a massive market share. The Ford motor company, India has the required resources and capabilities to successfully implement a product development strategy to take over Suzuki, which currently stands as the biggest competitor in the Indian market. The plan recommends that Ford motor company should target the middle class segment of the market with a developing marketing strategy.
Rationale of the marketing plan:
This plan will assist in understanding and formulating an international marketing strategy for Ford motor company. The plan will use PESTLE and SWOT analysis to provide an insight into Ford motor company's current market situation. This will help the management in making the appropriate choices for the kind of strategies to be used in terms of corporate and international strategy and launch a range of new models in India. The plan will outline how Ford motor company will make such market diversity. The market entry models will be considered through the use of Ansoff matrix.
Ford motor company Motor Company, is based in Dearborn, Mich., it is one of the global leaders in the automotive industry. Automobiles are manufactured and distributed across six continents by them; they have 90 plants and approximately 201,000 employees worldwide. The company provides financial services through Ford motor company Motor Credit Company. -Ford Motor Company, 2010
In the year 1988 American motor company Ford entered the Indian market with Ford Escort. However, in 2001 the Ford Ikon became a success on the Indian roads. Later on the company added quite a few successful models in the market like the Fiesta, Fusion and the Endeavour, with the recent launch of Figo. -Surf India, 2010
Diversity in product range
Cash flow- strong position
Balance sheet is strong
Capability of turning resources into advantages
Availability of products for various segments
Brand growth cost is low
Perception of high cost
Lack of local knowledge of customers and culture
Upcoming and existing competition
Differing price of raw materials
Market shift caused by globalisation
Companies offering lower cost models
Decision making for customers and resources
Methods of data collection and analysis:
The influence of political, economic, social and technological factors for understanding opportunities and threats on the local, national and global level will be examined by a PESTLE analysis of the industry. -Johnson. G, Scholes. K, 2008.
SWOT analysis will be used as all the managers have an easy access to it. For analysing extensive information systems, the model can be used. The planners are provided with a structure that can be accessed for a mixture of qualitative information, of facts which are known, unknown and half-known and characterise strategic marketing planning. -Wilson. R, Gilligan. C, 1997.
Market Entry Strategy:
We can use Ansoff product/market matrix to identify directions for Ford's strategic development. Considering its strategic capability and stakeholders expectations, this matrix offers directions for strategies available to Ford in terms of products and their market coverage, taking into account its.
As per the Ansoff Matrix, Ford motor company's launch of new models in India will involve a product development strategy. Even though Ford motor company already sells a few cars (existing models) in India, it will turn out to be a great opportunity for their success. Both capability and market consideration has driven Ford motor company into development of new markets. A range of Models can be exploited in other market segments. Some difficulties reliability and expectations as a brand may be encountered by Ford in their attempt to enter a new market.-Quick MBA, 1999-2007
In order to increase sales with a view to capture the market Ford motor company should target a particular segment of the market which is possible only through a proper market research and analysis of the segment's size, growth rate of the segment, competition in the segment, brand loyalty, potential sales, profit expected, possible market share that can be attained and market segments suitable to the firm.
-Net MBA, 2002-2007
The main objective of the company would be profitability on the basis of operating margin, sales growth, increase in the percentage of market share in India, growth in terms of brand awareness i.e. number of customers who recommend Ford motor company as a company, gain respect as a company in the eyes of a number of stake holders who respect Ford motor company. The 'SMART' Marketing objectives must be taken into consideration by Ford motor company, which should be specific, measurable, achievable, realistic and time bound. -Chartered institute of marketing, 2007.
According to Ansoff matrix, the marketing strategy applied for Ford motor company will be product development strategy, as per the practical outlook of the company, it is more customer oriented than specifically towards the product itself. In such a situation, a new product targeting the existing customers can be developed in order to leverage its strengths. However, new product development is riskier than simply trying to increase its market share. But analysing the market further, finalising the models to be offered can help understand the need of taking such a step.-Quick MBA, 1999-2007.
1) Market Research
2) Market Analysis
3) Mode of Entry
4) Marketing Mix Decisions (Place, Price, Product and Promotion) decisions
5) Methods of promotion - advertising, public relations, and sales promotion