...Ford Motor Begin New Pricing Strategy Price is not just a number on a tag. It means everything to a manufacture like Ford Motor, because price is related to Ford's income, cost, revenue, employee benefit and etc. Price is the only one element of the marketing mix that produces revenue; the other elements produce costs. Ford Motor must understand making a proper pricing strategy is very important. The relationship between price and demand is the higher the price, the lower the demand. As we all known, automotive market is price sensitivity, because automotive is expensive for most customer, customers are less price sensitive to low-cost items. The higher the elasticity, the greater the volume growth resulting from a 1 percent price reduction. If demand is elastic, sellers will consider lowering the price. A lower price will produce ,ore total revenue. Throughout most of history, prices were set by negotiation between buyers and sellers. But in 21 centre there are many types of pricing strategies that can be used for a certain product or service. First is 'premium pricing' that uses high price and uniqueness within a product or service. Second is 'penetration pricing' wherein prices are artificially low in order to gain market share. Third is 'economy pricing' wherein the cost of marketing and manufacturing are both kept low. Fourth is 'price skimming' wherein there is high price for a substantial competitive advantage. Fifth is 'optional product pricing' wherein the...
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...Introduction The first factory assembled pickup truck introduced to America was based on a Ford Model T car. Although automobiles had been around for decades there was something unique about Henry Ford’s Model T vehicles. Other automobiles were considered as luxury vehicles because they were expensive to the average working American. In 1908 Henry Ford changed that by assembling affordable vehicles which caused Ford Motors to become popular in the mass market. Debuting in 1925 the Ford Model T Runabout sold for only $281 US dollars. Henry Ford built 34,000 models the first year which featured a cargo box, adjustable tailgate, four stake pockets and heavy duty rear springs. Which much popularity came other competitors like Louis Chevrolet who at the time was a Co-Founder to Chevrolet Motor Car Company and later merged with General Motors. Louis had a vision to become the leading brand for selling mainstream vehicles. Chevrolet’s goal for getting there was to overtake Henry Ford’s Model T. Louis competitive spirit led to decades of automobile manufactures competing to create the bestselling vehicles in the United States. In this paper you’ll discover the promotional strategies used by both companies to sell the 2014 Ford F-150 and 2014 Silverado 1500. Marketing recommendations will be made for Ford and Chevrolet to differentiate themselves in the marketplace in order to gain advantage over their competitors. You’ll find ways for both companies to assist with consumer...
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...Ford Motor Company (Case Analysis) Group #6- TGAA TTH 1:00 Member 1- Taylor O’Neill Member 2- Knyra Ratcliff Member 3- Alex Perkins Member 4- Xu Han Member 5- Kevin Carter Member 6- Alex Dundon/ Nick Tran Presentation Date: 11/17/15 Introduction Our group has chosen Ford Motor Company as our case analysis subject. Ford is an American multinational automaker and was founded by Henry Ford in 1903. Ford Motor Company is the second largest automaker in the United States and is also the fifth largest automaker in the world. Throughout the paper we will be sharing background information of the company such as the vision statement, mission statement, company history, the industry, and our company’s strategy. We will also be sharing the elements of Ford’s internal and external environment (includes historical and competitor financial information), problem statements, possible alternative solutions to those problems, and our recommendations as to which alternative solutions would be best used in response to the problems at hand. Towards the end of our case analysis on Ford Motor Company there is a visual present for both the SWOT analysis and the grand strategy matrix. We have provided appropriate and significant content in completion of this case analysis. Background Vision Statement “To become the world's leading Consumer Company for automotive products and services. (Homepage, 2015)” Mission Statement “One Team. People working together as a lean, global enterprise...
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...Ford Motor Company’s Ambitious Revenue Management Strategy By: Russ Banham While Ford is not the only automaker targeting consumer car preferences, it is the only one with a vice president heading a unit on revenue management. Ford is also notable for its combination of three technology tools to sell the right car with the right mix of features to the right customer at the right price. It uses one tool to determine the car with the optimum package of features most likely to appeal to consumers in a specific market. Another tool, pricing software technology from Manugistics, determines which sales-promotion campaign should be offered on each car in each market. A third tool puts Ford dealers in the driver's seat to order the inventory most likely to wheel off their lots. With this knowledge in hand, Ford can gear its production, sales, and marketing to get the biggest bang for the buck. "There is a clear link between what customers want and what we build," says Lloyd Hansen, the spear head behind the project . "The problem has been finding it." Ford believes revenue management is that missing link and has the most leverage in industries with low profit margins. That's what makes it so critical in the auto industry, where pretax profit margins have historically averaged only about 3 percent," says Hansen. "If better pricing tools and processes can improve revenue by just 1 percent, and raise historical margins to 4 percent, bottom-line profits...
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...Introduction The first factory assembled pickup truck introduced to America was based on a Ford Model T car. Although automobiles had been around for decades there was something unique about Henry Ford’s Model T vehicles. Other automobiles were considered as luxury vehicles because they were expensive to the average working American. In 1908 Henry Ford changed that by assembling affordable vehicles which caused Ford Motors to become popular in the mass market. Debuting in 1925 the Ford Model T Runabout sold for only $281 US dollars. Henry Ford built 34,000 models the first year which featured a cargo box, adjustable tailgate, four stake pockets and heavy duty rear springs. Which much popularity came other competitors like Louis Chevrolet who at the time was a Co-Founder to Chevrolet Motor Car Company and later merged with General Motors. Louis had a vision to become the leading brand for selling mainstream vehicles. Chevrolet’s goal for getting there was to overtake Henry Ford’s Model T. Louis competitive spirit led to decades of automobile manufactures competing to create the bestselling vehicles in the United States. In this paper you’ll discover the promotional strategies used by both companies to sell the 2014 Ford F-150 and 2014 Silverado 1500. Marketing recommendations will be made for Ford and Chevrolet to differentiate themselves in the marketplace in order to gain advantage over their competitors. You’ll find ways for both companies to assist with consumer...
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...A. INTRODUCTION Ford Motor Company started out with Henry Ford’s passion of engineering and mechanics. Ford’s first leap into the world of automotive mechanics was in 1899 when he founded the Detroit Automobile Company, in Dearborn Michigan. It was not long after the Detroit Automobile Company failed that Ford founded the Ford Motor Company on June 16, 1903. What made Ford’s vision different from the other 87 car companies in the United States at the time was Fords understanding of the cultural impact automobiles will have on the society. Ford envisioned cars being an affordable item rather than a luxury in the near future by transforming the manufacturing process. The success of Ford Motor Company was because its’ strategy encompassed a new way of manufacturing called mass production, advancements in technology, the supply chain and most of all changes in lifestyle. Ford’s personal motto, “Help the Other Fellow”, affected his goals, work environment and the corporate strategy of the Ford Motor Company. Today’s Ford embraces all of Henry Ford’s beliefs into its current corporate strategy. Ford is known for building the everyday man’s car focusing on reliability and quality. Ford is now a leader in innovation in the automobile industry right next to BMW. Energy efficient efforts, future safety features and technology advancements are all what makes Ford, Ford; however, the cars are not all that have made Ford into the global enterprise it is today...
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...favor with customers and sales have dropped 35 percent year on year. Among hatchbacks in India, Maruti Suzuki is the most dominant player followed by Hyundai and then Tata. Maruti’s Alto is the country’s and the world’s largest selling hatchback, at 346,840 cars being sold in India last year, a growth of 47 percent. The second-largest selling hatchback in the country is again from Maruti – the Wagon R. However, the Wagon R has close competition from the Hyundai i10, which is just behind it, though the i10 hasn’t grown as much percentage wise. Tata’s Indica is floundering, with sales having dropped 16 percent despite introduction of the Vista. It looks like quality issues and maintenance are beginning to turn buyers away to other brands. The Ford Figo, which was introduced at the beginning of last year, has zoomed up the sales charts at 78,116 units, closing in on the Indica. Tata’s Nano, which was expected to be...
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...FINAL PROJECT REPORT FORD FIGO: MARKETING PLAN SECTION B GROUP 10 Ranjitha G P FPM-08/10/M Arun Kumar Agarwal PGP/18/070 Kalpana Sharma PGP/18/080 Neha Prasad PGP/18/090 Punit Rathi PGP/18/100 Sourav Pattanayak PGP/18/110 Yaman Rai PGP/18/120 Executive Summary The market today is dominated by young and youthful people. Where a research agency says that 65% or over 700 million Indians are younger than 35 years. They are open to risk, novelty seeking and are willing to try anything that sets a trend, an attribute that has been accounted by their growing potential of purchasing power. As a result, marketers are forced to try innovative strategies where Markets have become too congested with competition. The launch of Ford Figo was an important event and a turning point in the history of ford which entered the small car segment which was a sweet spot during 2009-10. As the competition grew and major macro environmental factors brought a dramatic shift in the economy, it became tougher and tougher for figo to sustain in the market. This marketing plan analyses the current situation of Figo in terms of macro and micro environment, SWOT analysis and its current marketing strategies in order to internalize and project a effective and efficient plan for 2014-15. The major objective of Figo in this Marketing plan is to enhance the market share and sales by the next year 2015 as a short term strategy and bring a product innovation...
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...FORD MOTOR COMPANY’S | SUPPLY CHAIN STRATEGY | | | 11/13/2012 | *The Virtual Integration Model Analysis at Ford Motor Company, to Companies like Dell* EXECUTIVE SUMMARY As director of Supply Chain Systems, I have decided to implement portions of the new supply chain strategy of Virtual Integration and strategies from companies like Dell. Although there are several key differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, distribution system, dealerships and divisions. Special care will need to be taken to address the unique dependency of our custom Tier 1 supplier. The management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. In order to adopt the Dell Model we would: · Sell direct · Mass-produce customized products · Build to order · Substitute virtual integration with suppliers for vertical integration If we at Ford could find a solution to the obstacles of virtual integration, which I will explain in detail below. It could essentially make our supply chain run smoothly with less bottlenecking, inventory, and better overall performance. Managers could overcome the complex and error-prone manual process of forecasting and procuring parts which would result in reduced...
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...retail customers in China. After obtaining its own license, Chery implemented a four-phase strategy to develop its technical strengths. Chery started exporting cars as early as 2001 and became the largest exporter of cars among the Chinese car companies. Chery expanded globally to have its presence in over 70 countries by 2009. | | ------------------------------------------------- Issues: » Study and analyze the competitive strategies of Chinese automobile companies. » Understand how Chery Auto used available resources effectively to manufacture cars. » Examine how a startup company could develop R&D capabilities by collaborating with other firms. » Study the globalization strategies of Chery Auto. » Evaluate the challenges faced by Chery Auto in the near future. ------------------------------------------------- Contents: | Page No. | Introduction | 1 | Background Note | 2 | The Growth Strategy | 3 | Going Global | 5 | The Challenges | 7 | The Road Ahead | 9 | Exhibits | 10 | ------------------------------------------------- Keywords: Chery Auto, Chinese Automobile Industry, Independent Innovation, Pricing Strategy, Car Manufacturing Industry, Reverse Engineering, Shanghai Automotive Industry Corporation, Six Sigma Process, Independently-designed Models, Intellectual Property Rights, Branding, Vertical Integration, Global Expansion Strategy,...
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...General Motors Prepared for: Business Cluster Professors Prepared by: Team 7 Anthony Allio Joseph Allio Lauren Snitcher Nicholai Larroque Gregory Armamdo June 10, 2005 Table OF CONTENTS Introduction 4 Region Analysis 4 North America- GMNA 4 Europe- GME 4 Latin America- GMLAAM 5 Asia/Pacific- GMAP 5 Porters Five Forces 6 Rivalry 6 Barriers to Entry 6 Threat of Substitutes 7 Power of Suppliers 7 Power of Buyers 8 Competitive Advantage 9 Internal Analysis 10 Internal Strengths 10 GMAC’s Continued Earnings Growth 10 Marketing Strategy/Consolidation 10 GM LAAM/ GM Asia Pacific 10 Internal Weaknesses 11 Rising Health Care Costs 11 Weak Product Mix 11 Lack of Flexibility 11 Strategy 12 Retrenchment Strategy: Product Redevelopment 12 Overlapping models 12 Reinvention 13 Appendix 18 Introduction General Motors is a company that has been around for over one century and has been an integral member of the automotive industry since its inception. To understand General Motors one must simply look at their business philosophy which guides them today, and is embodied in the companies’ culture: product excellence and customer focus, act as one company, and move with a sense of urgency. Throughout this analysis of General Motors we have provided an in depth look at these philosophies, while in the end developing a future strategy for General Motors to implement in restructuring...
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...example we talk about how Toyota has developed automated robotics systems to help control the amount of paint that is used during their topcoat operations to prevent the use of excess paint which is normally due to human error, another example is how they are using the paint sludge in the production of other products such as anti-rust paint sprays. We also discuss how the use of returnable metal shipping containers when shipping parts can greatly reduce the amount of wasted packaging materials and wooden creates from going to the landfills every year. All of these small changes have a large impact when looking at long term data analysis. In today’s economy consumers as well as large scale corporations are always looking for new strategies to become more efficient with both their time and money. As consumers we are always looking for the best deal or something that is more efficient to save us a few dollars in the long run. For example to save a few bucks each year on our energy bills...
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...used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: __________________________________ Cotina Mills Table of Contents Introduction ……………...………………………..………………………………………….. 3 Vision……………………………………………..…......……………………………………..4 Mission…………………………………………………………………………………………4 Issue…………….………….………………..………………………………………………….5 Strategy…..…………………………………..…………………………………………………7 Current Operations……………………………………………………………………………...9 Introduction Renault–Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan. Together they sell more than one in 10 cars worldwide. The companies have been strategic partners since 1999 and have nearly 350,000 employees. They control seven major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia, Datsun and Lada. The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen. As of July 2013[update], the Alliance is the world's leading plug-in electric vehicle manufacturer with global sales of 100,000 units delivered since December 2010 (Renault.com, n.d.). The strategic partnership between Renault and Nissan is not a merger or an acquisition. The two companies are joined together through a cross-shareholding agreement. The structure was unique in the auto industry during...
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...environment of automobile industry and the marketing strategy for Ford Motor Company. It initiates with examining of external environment of automobile industry by using PEST analysis and Porter's five forces analysis. After the internal analyses that focus on the resource audit on brand, products, markets, technology, people and son on, the value chain analysis of the company will be conduct. Then the generic competitive strategies would be discussed through SWOT analysis, Ansoff Matrix and BCG Matrix in order to identify the general business strategy taken by the Ford Company. After specifying the company strategy by those analysis tools, the strategic evaluations would be drawn together with the strategy control methods. Finally, a suggested recommendation for the company future development will be mentioned at the end of the report. I. INTRODUCTION 1.1 Aim of The Report This report aim to identify the external environmental of the global automobile industry, measure and evaluate viable and sustainable marketing strategies using by the Ford Motor Company. Through appropriate theoretical concepts and models, together with appropriate methodologies, the organization within its contextual setting will be carefully examined, and justify recommendation will be mentioned. Though the report, how a successful corporation is operated and how its business strategy is implemented and controlled will be understood. 1.2 Company Background Ford Motor Company is an American multinational corporation...
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...Alan Mulally, CEO, Ford Motor Company Dr. Lu Leadership and Organizational behavior- BUS520 November 7, 2011 Alan Mulally, CEO, Ford Motor Company Discuss the role of leadership and how it can impact organizational performance In order for any company to succeed, there needs to be an effective leader to lead the organization in the right direction. The leader must be someone who not only knows about the company and where it needs to go but also how to take its resources (its employees, its equipment) and put it together to come up with a winning formula. The role of leadership is very important and the goals that a company wants to meet will not be attainable without an effective leader. A leader needs to be able to motivate and influence its employees. This is especially true in today’s down economy and highly competitive environment. The organization must look upon its employees to assess the playing field, formulate strategies, and unite organizational managers to work towards the common goals of staying in business, making a profit, and continuously improve market share. In essence, the primary role of a leader in an organization is to draw the road map for the organization to execute – often, this may involve some changes to the way it ran its business in the past. Therefore, the leader is the critical actor in drama of organization change to achieve the goals (Schneider, 1994). To initiate change, an effective leader, manager, director will need...
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