FORD MOTOR COMPANY Anood Baja Bruce Chris Miriam

OVERVIEW / HISTORY / MARKET

C OMPANY I NFO Vision: “ To become the world’s leading consumer company for auto products and services” Mission: “ Producing vehicles that meet the demands of our customers in terms of quality and effectiveness” Our slogan: “ FORD FEEL” Brand: Ford, Mercury, Mazda, Jaguar, Volvo, Lincoln, Land Rover, Aston Martin

H ISTORY Founded in 1903 in Dearborn Model T & first moving assembly line lost market share to rivals Oil crisis Luxury cars & buying of Aston Martin the era of W. Clay Ford Jr Buying of Volvo brand; $ 6.45 billion Introduction of Ford Escape Hybrid Redesigned Mustang “Way Forwad” Plan: restructuring plan to align production capacity and fixed costs

N ORTH A MERICA B USINESS C HALLENGES External Environment Market Fragmentation and Segment Shifts Brand Clarity Products Quality Market Share Cost Structure

PRODUCT LINEUP / OVERALL MARKETING

Product Length / Width / Depth Product – Mix - Depth Product Line Length SUVsCrossoversPickupsSedans Coupes/ ConvertiblesWagons/Vans Ford 47*3 23 Lincoln 1 14 Mercury 12* 3 1 Mazda Volvo Jaguar 211 Land Rover 3 Aston Martin 5 * includes Hybrid Vehicles

Product Line Number of different lines per product type.

Customer Focus Ford’s Marketing Strategy Implementing Cluster Marketing Create distinctive values to attract the different generational segments Capture our customers in their youth and transfer them onto our next product through out their life cycle Eliminate overlapped products to help customers easily transfer their identify needs with our Brand Value. Clearly signal to our Customers that our product is of top quality and trendy by promoting the Shelby Cobra GT500 among our most value recognized vehicles. At the same time reducing the Auto Lines that bring no Brand recognition, like the Montego.

PRODUCT / PRICE

P RODUCT Removing duplicate models –Reduce product mix –Platform Sharing/Innovation Customer Relationship Management –Gen Y customer –Small Car Model –Family life cycle- “Life stages” –“Ford Feel” –Lifetime Value

P RICE Restructuring Cost Cuts –Leveraging assets –Removing poorly performing models Customers value Vehicle Quality & Image –Getting a good deal for the money –“Ford Feel” –Personal/Digital synergy –Differential Pricing Gen Y customer & Digital Mega-trends

PLACE / PROMOTION

PLACE Dealerships are our lifeblood –We bring a tremendous of amount of access and experience (history) Train dealership staff to support Ford Feel / Technology, place a high emphasis on customer service and satisfaction –Accountability to customer satisfaction scores and goals/rewards for repeat purchases through life-stages Sponsorship of local car clubs and activities are dealerships Migrating other brands into Ford dealerships where it makes sense –The more choices you offer a car shopper in a category, the more likely they are to buy (i.e. Mercury)

PROMOTION Ford Feel is our umbrella campaign / Ford Brand Media mix will continue with traditional media but with additions –Heavy link between traditional media and online (push to website) –Viral Marketing for new product launches (websites to challenge visitors to solve the puzzle) –Online world advertising (Second Life) –Integration of lifestyle advertising into life-stage concept Customer involvement / product champions (car groups / forums) Pushing our design image! Pushing our dealership network, satisfaction Continue sponsorships

CRM

C USTOMER R ELATIONSHIP M ANAGEMENT The objective: Acquiring and retaining the right customer –Reducing the rate of customer defection –Increasing the longevity of the customer relationship Statistical Analysis System (SAS) platform fuels CRM programs –High customer satisfaction –Easy to data mining and info analysis –Supports a variety of functions, including reporting and customer life-cycle analysis Building loyalty –Proactive marketing –Advocates

COMPETITION / GLOBALIZATION

C OMPETITION

P AIRED POD S (D ISTINCTIVENESS /C OMMUNICABILIT Y ) The desirability of Ford’s PODs are addressed through their distinctiveness –PODs Availability of dealerships Brand name History of expertise and innovation –Ford must communicate to their consumers why and how their vehicles will deliver specific benefits.

G LOBALIZATION Gulf consumers are loyal to Ford’s V8, rear-wheel drive sedans. (Every household has one) –Standard Crown Victorias are popular amongst Kuwaiti and Saudi families since they are purchased for their chauffeurs. Price point is economical; $20,000 –They like rear wheel drive vehicles because they are easier to repair. –They accommodate for large families and tendency to buy in bulk Hybrids do not appeal to the Gulf consumers –Independent mechanics are unfamiliar with the technology –Price of fuel is cheap –They don’t like change Since there aren’t any taxes, leasing is not appealing and ownership is always preferred

SUMMARY