Market Analysis of Ford Motor Company

Keywords: ford motor company marketing analys, ford motor company swot


Ford Motor Company is an American multinational automaker and founded by Henry Ford. Ford Motor Company has many product lines such as the Ford Fiesta, Ford Focus, Ford Escape, Ford Ranger and other Ford products. Ford Motor Company has many dealers in the worldwide so that consumers can purchase the automobile at their nearest place.

Research Objectives

For this essay, I will research how Ford Motor Company approach their target market, SWOT analysis, environmental forces and 4 components of marketing mix to attract people to buy their products.

Target Market

The organization of FORD is using Differentiated Strategy in their businesses. This strategy is to targets several segments by developing marketing mix for every segment. FORD Motor Company designed to appeal to numerous different kinds of consumers and satisfy numerous needs in the form of economy cars, sports cars,

luxury cars, station wagons, vans, trucks, and so on. Now the latest cars that the company produce is FORD FIESTA, this car are focus on young people and ladies.

Segmentation variables

Segmentation variables utilized by FORD Motor Company are Geographic segmentation, Demographic segmentation, Psychographic segmentation and Behavioral segmentation. Ford automobile is principally segmented to the uk automobile market industry but it addittionally segmented to others country like Malaysia, Indonesia etc to various basis which will be the parts of above mentioned factors. The latest model FORD FIESTA is using Demographic Variables which is age, gender and income. For the reason that this model is focus for teenagers, women and average income consumer. Within the other hand, FORD FIESTA also uses behaviorist variables with the power for safety and fuel efficiency.

Market Segment Profiles

FORD Motor Company profile offers a comprehensive analysis for the business, it is business segments, and competitors. It used to investigate the business and marketing strategies adopted by the business, and to gain a competitive edge on the market industry. This profile also evaluates the strengths of the company and the opportunities within the market. It is also involves analysis of the business at three levels - segments, organizational structure and ownership composition. Beside this, both business and geographic segments are analyzed along with their recent financial performance. It further discusses the major subsidiaries of the company and the recent merger & acquisitions. Most of the consumer for FORD Motor Company may choose our product because the organization gets the needs of the consumers.

Evaluate Relevant Market Segment

The FORD organization is selling FORD FEISTA for an acceptable price. For the reason that this product gets the necessary that are best for the consumers such as save fuel. The product is increasing the sale potential for the company. In addition, it determines the marketplace industry that the Ford Motor Company is segment to the right position for the product that the consumers are likely to buy this automobile for their daily use.

Target Markets

FORD Motor Company designed as the new model FORD FIESTA is target to young people and ladies. The teenagers that the organization targets 18-25years old that are teenagers and women with average income can affordable to purchase the cars. Which kind of model is suited to those unmarried people because this car just have 5 seats that aren't for a big size family. Therefore, this automobile size is average so it is well suited for those consumers that like middle size car.


One tool marketers use to examine an organisation's strengths weaknesses, opportunities, and threats.


Strengths define as the competitive advantages or core competencies that given the business an edge in meeting the needs of its target markets. Ford automobile company is the one of the best known brand on the planet. Then, the brand is well-known in automobile industry and global markets due to huge marketing and advertising. Ford admits greater amount of customer loyalty and everything its individual brands have been enjoying the benefits of the good reputation that they have through the product quality makes and services. Ford is providing the buyer more variety of car and commercial vehicle. Even more, quality to ensure of Ford must be more complete and must be consistently monitored with permit standard to be sure no future faults and thereby to attain client satisfaction. Ford automobile company will maintain good relation with the employees by offering better work place and competitive wages that are assert to recruits a professional and skilled employee in every its functions. Otherwise, Ford is more concerned about the working environment and safety aspects of the employees. Furthermore, Ford always develops cars on standardized procedure and invested heavily in alternate fuel source. This manufacturing facilities operating its business more than thirty countries and enhances its manufacturing process at around ninety plants and facilities worldwide that is because functions and distribution efficiency of the Ford automobile company is the wealth.


Weaknesses mean any limitations that a company faces in developing or implementing a online marketing strategy. Ford's automobile company brand image was harmed and the business has a lot of suffered due to products recalls. Including the Ford Focus recalls the car which includes some problem. It has made a large cost to the company as well as harm the brand image and make a terrible impact to Ford's sales. Furthermore, Ford automobile company lack of design phase and impressive design structures on the new paddle of cars. This is because the technology not as well as other it will influence Ford to cause the low productivity. Thus Ford can overcome their weakness to achieve greatest of strengths. Apart of that, management is missing give attention to some lines performance because Ford automobile company expands more business procedures in diversified geographical areas. Next, Ford doesn't have a powerful cost management system and have not taken considerable efforts to overcome. Ford has a little market share which means sale will decline the sales and also due to global recession in the world finance market. That is the reason for decline of sales. Another reason is Ford will manufacture the typical cars which are not able to cope up with current market automobile.


Opportunities know as a good condition in the environment which could produce rewards for the organization if acted after properly. Ford has to expand more option in designing the cars and commercial vehicles are expected to switch toward hybrid electric engines because of the petroleum. Hence, Ford can build the car that operate on electricity that form of energy beyond your petrol and diesel and also to promote go through to the future opportunities that'll be increasing. Ford has an opportunity to become more environmentally friendly company with cleaner engine emissions because hybrid engines are definitely more fuel efficient less pollute than conventional gasoline and diesel engines. Ford has a great opportunity to produce fuel efficient cars and commercial vehicles. On the other way, Ford has yet another option in designing the cars and commercial vehicle based on electric engine. The Ford automobile industry is having yet another fuel efficient types whereas cars can run on renewable energies like solar powered energy and bio fuels. This assists the company to become pioneers on the market. The Ford's car is providing the facilities based on the travel habits of everyone. From the other way, the Ford car also is medium cost car which can be giving affordable by the medium class people.


Threats will be the meaning for a conditions or barriers which may prevent the organization from reaching its objectives. The cost of petroleum is rising day by day and remains to maintain the state of uncertainly so that electric drive vehicle that is the reason will be in high demand. On the other hand, the Ford growth and development may effect by high-speed growth in amount of competitors in this automobile industry. The main competition of Ford are Nissan, Honda, Toyota, and so on. They have also threatened Ford's market share. Besides this, Ford's capital spending is indeed lower than the competitor. The reason is this capital spending has included the research development expenditure which could influence the business from going ahead. If other automobile manufacturers have new ideas, program and new technology appear, that is also one of the threats to Ford Company. Therefore the economy depression will influence the buyer ability of buying. Thus, the quantity of sales will decline.



FORD view environmental forces as uncontrollable and maintain passive and reactive to the surroundings. In the automobile market, FORD is facing many opponents like TOYOTA, HONDA and NISSAN. Competitors are affecting the FORD Company by reducing the sales rate. In this example, FORD is creating a new model car which is FORD FIESTA this year of car is focus to attract teenagers and ladies. Not only that but FORD Motor Company also focused on creating a strong business plan that produce great products that donate to this new generation. Within organization plan, the business may continue to press forward to globalize automobiles platforms that may be adapted to meet specific regional needs. Flexible manufacturing functions allow us to bring products to market with greater speed and efficiency than previously.

The marketers define the FORD companies as an oligopoly competition in the market structure because in the market there are numerous substitutes available but only one company offerings for another.

Political Forces

FORD, along with other major automakers and the United Auto Workers (UAW), opposed a congressional bill to improve the common fuel economy standards to 35 miles per gallon by 2013. The organization believe that this would harm the SUV, pickup, and minivan industry. Political factors it may also influence the strategic planning of Ford Motor since government rules and regulations are worried with the production of more eco-friendly automobiles in the daily function of the company. Because of the environmental concerns, the industry must abide with the regulations aimed for reducing the pollution levels. Inside the other hand, non-compliance attracts heavy fines, which prove costly to the business. Not just that this regulations could also drive Ford to manufacture environmentally friendly and fuel-efficient cars to save lots of the environment. In this example, governments in a bid to lessen the unemployment rate discourage Ford Motors from fully automating its operation, which would otherwise take up local jobs.

Economic force

As vehicle industry provide luxury product and services, the economy well being plays an important role in identifying the demand for vehicle. Through the economical prosperity, since there is significant increase purchasing power in people, usually they are willing to devote to purchase on new vehicle. Marketer often expands their product during in this economic stage. However, when there is going on recession it'll cause a high unemployment rate in economy. People will commence to spend less on luxury product such as vehicle or house. On this stage, people only will purchase the product that are necessary or might choose to buy used vehicle only. New vehicle not be the first choice for people to consider. Therefore, Vehicle Company usually will produce less vehicle in the economic. Meanwhile, rising petrol prices make more costly for customer to operate a vehicle petrol fuelled car. This reason might encouraged consumers inclined to improve their vehicle which operate using diesel.

Social-cultural force

Cars tend to be viewed as a status symbol by people surrounding the world. A person's influence and political status is reviewed by vehicle brands they hold. A person who sitting an extravagance car can show his was having a higher status in comparison to other. Therefore, Ford intended to produce luxury cars due to growing demand on its brand and because of the increasing celebrities and other delicate.

Technology force

New technologies and convenience safety features are at its best in Ford's 2010 paddle of cars. Technological advancements are inevitable for automotive industry in order to contend with competitors also to become pioneers in the industry by enriching new technologies. After Ford's new and improved 2. 0-liter, 4-cylinder Eco Boost engine to be launched to drive the upcoming year, Ford also introduce 30 new power train actions globally in 2010 2010. In case, Ford strives to boost quality with virtual technology in their vehicles that provides real benefits including reduction in injuries, improving quality. Thus, this all technology is helping the company to become pioneers. Ford also produces a middle size car and convenience safety cars for ladies. Besides that, Ford has competitive edge over attracting the ladies for the cars designed specifically for women by women designers in stereotypical view points.

Legal and Regulatory Forces

Ford Motor Company in relation to the Environmental Protection Agency adheres to the legal aspects of environmental scanning. Ford Motor Company accepts an award on March 2007 by environmentally friendly Protection Agency, Energy Star 2007 Partner of the Year Award in Energy Management. The company is the first automobile company manufacturer have been awarded prize for just two years in a row. The award has become presented by the business's commitment is to increase energy efficiency and reduce greenhouse gas emissions from all institutions of society. In this example, the Ford Company is following the laws and regulation for creating a vehicle. The organization is the responsible use of resources and energy Efficiency. The leadership are recognizes that the legislation on environmental protection is of great importance and encourages the use of Environmental Scanning in the right direction for the future success.


Product is whatever can be wanted to a market for attention, acquisition, use, or consumption, which can gratify a want or need for consumers. Products can be tangible and non-tangible. Non-tangible products are the services proposed by the business. Today, companies are creating and managing customer encounters with their products.

Brand Strategy

The Ford classified the brands of midsize cars, elegant and generous by research techniques. Ford uses blue oval that Ford branding which determines price and value. The Ford oval is proud and historic symbol for Ford Motor Company and one of the very most recognized trademarks on earth. This logo is the blue oval that Ford released in 2003 in honour of the a century Ford Motor Company had been around. It was named the "Centennial Blue Oval".


Cars aren't packed as they don't really have much importance. Cars usually do not get packed in a box, only if someone wants to gift it. Ford does not use packaging.


Labelling will be a tiny brochure about the Car parts specifications, in order to see how exactly the car works, and what and from where the parts are.

Product Design and Features

The Ford Fiesta has a Kinetic design. This design is ensure the smoother ride with minimal noise, vibration and harshness. In this product have many features, such as Ti-VCT Engine (Twin Independent Variable Camshaft Timing), 6-Speed Power shift Automatic Transmission, Electronic Stability Programme (ESP) with Traction Control System (TCS), Bluetooth with voice control, fuel efficiency, seductive centre console and easy fuel.

Product Support Services

FORD Motor Company represents Ford Fiesta with better services and warranty. Ford Fiesta is given three years warranty, this guarantee is merely valid on the problem that the automobile service according to recommended in the owner's manual at a certified Ford Service Centre. Additional wear & tear items are not listed will be charged accordingly. Besides that, customers are entitled for the free service at 10, 000 km intervals starting from 10, 000 km till 60, 000 km. The Coverage includes Engine oil and Їlter changes, Multi-Point Inspections, Replacement of brake pads and linings when worn, shock absorber replacements-is faulty, Spark plugs, Engine belts, Engine hoses, Wiper blades, Powerful Protection for the Ford Vehicle. Tyres formerly installed on Ford the automobile are warranted separately by the concerned manufacturer rather than by Sime Darby Auto Conne Xion. Battery failure within the first three years or 100, 000 km, whichever comes first, will be covered under warranty. Ford Parts and Accessories Warranty are require 12 months or 20, 000 km, whichever comes first and MUST be purchased and serviced by a certified Ford Dealer.


Ford has use difference promotional strategies to maintain their marketing edge in the competitors. Ford is the one of the most notable 20th of the highest media spend companies list. Through the recession, the Ford beginning to cut cost to reduced their promotional budget and cancelled all the promotion advertising. Ford organized a lot of campaigns and tied up with the long lasting sponsorships and regular to conducted sport events. The advertisements and logos with attractive strap line, amazing designs and advertisement are giving edge over opponents activities. Ford promotional strategy have classifications 2 type of promotion such as above the line promotion and below the line promotion. Above the line promotion are like mass media such as television set, news papers, radio and so forth. Below the line promotion is non-media advertisement like sponsorship, show, discounts to dealers and sales promotion activities.


The main reason for the advertising is to market and support for the sales team to persuade the merchandise to the public. Advertising is playing quite role to a corporation since it use to market the brand or service and improve the corporate image and sales. Advertising only can help toward the sales success. Ford started advertising with strap line "Have the difference" to be able to create a brand for Ford of Europe. Ford advertisement through attractive, unique pictures in news papers.

Personal Selling

This is the way to keep up with the good relationship with customers to keep on the sales of the marketing. Personal selling is very helpful for products that happen to be complicated to self analyze and understand. Ford product doesn't have any difficulties to the customers. A couple of two teams to manage product and offers other promoting activities which is sales and marketing teams.

Public Relations/ Publicity

Public relation is discussing the non-personal communication such as art and social science of analyzing trends, foresee their outcome. The general public and organization's is serve by the counseling leader and the implementing planned. Then Ford through the publicity to boots up their sales by sponsorship Activities contest and other event.

Sales Promotion

The dealer giving some special offer of the product to attract the custom and also increase the sales. The example of special deals related to customers such as discounts, premium offers, free gifts price deals and so on. Some of the dealers and merchandisers will get different promotional offers such as point of sale displays. These offers are ensure for the dealers and the merchandisers use the best way to promote the product. Ford has followed an extremely successful way of sales promotional to promote the new products which the sales will be improved. Ford has categorizes the customers into different segments to be able to achieve the sales objectives by provided promotional offers to the clients.


Distribution strategies are (Kurtz, 2010, p46) to ensure that consumers find their products in the correct quantities at the right times and places.

Marketing Channel Distribution

For the marketing channel selection, Ford Motor Company uses this channel as follow:

Producer ЇЖЁ Dealers ЇЖЁ Consumers

Vehicles that are created at Ford factories are distributed to dealers through road or train transportation. Consumers can buy the cars directly at the dealer's show room.

Intensity of Market Coverage

There are 3 types of intensity of market coverage, that are intensive distribution, selective distribution and exclusive distribution. Pride and Ferrell (2010, p400) state that intensive distribution uses all available outlets for distributing something. Selective distribution uses only some available outlets in an area to distribute something. Ford use exclusive distribution which is only use one outlet in a comparatively large geographic. Exclusive distribution is well suited for products purchased infrequently, consumed over a long period of time, or required service or information to fit those to buyers' needs. Ford Fiesta is an extravagance automobile in support of available in a select dealers' show room.

Supply Chain Management

Supply chain management (Pride & Ferrell, 2010, p388) is a set of approaches used to integrate the functions of operations management, logistics management, supply management and marketing channel management so products are produced and distributed, in the right quantities to the right locations with the right time. Ford Motor Company has its own manufacturer to produce vehicle parts and incorporate it into an automobile. The Ford car will be sent through road transportation and train transportation to the dealer.

Channel Management Issues

Now Ford can sell the merchandise through online. However, consumer cannot do the test drive through website. So, this can be a weakness of online selling the automobile.


All of the component in the marketing mix, price is the only person to generates revenue. The other elements generate only cost. The profitability of the company depends upon the purchase price and your competition in the market contributes the maximum to the important of pricing. Ford has implemented their own pricing strategies which is more demand or market based pricing oriented. Ford has use new strategies call " Blue Tag, is expending from its large car to the small car range. The price reductions are between 6%-15% on the Ford Fiesta.

Price objectives and basis

The price objectives are the goals that happen to be described the business to achieve which through pricing effort. The pricing objectives are included marketing objectives and marketing mix strategies. Pricing basis is the original price of your good which is without the extra charges. The will be increase when the greater specification of the automobile, the more the purchase price basis of Ford product. The marketing objectives have included marketing position, survival, current profit maximization, market share leadership, and product quality leadership. Then, marketing mix strategies is target costing, non-price position, cost, and organizational considerations.

New product pricing strategies

Setting the bottom price for a new product is a necessary part of formulating a online marketing strategy and is also one of the most fundamental decisions in the marketing mix. The Ford Motor Company is setting two types of price which is price skimming and penetration pricing on the market industry. Price skimming is approximately the high possible price that individuals afford to cover the product and penetration pricing is to competing brands and gain a significant market shares. For instance, Ford Fiesta is committed for consumer's safety like airbag, including our efforts to provide top crash test ratings that customers look to when choosing new vehicle. Therefore the company set a reasonable price because of this model toward consumer.

Promotional pricing strategies

Price, as an ingredient in the marketing mix, is often coordinated with promotion. The two variables sometimes are so interrelated the pricing policy is promotion-oriented. The Ford automobile company makes promotion for the latest model Fiesta. For instance, Ford promote like cash rebate for sale to attract more customers. Beside this, consumers will have a chance to get an iPhone4 and iPod as an incentive when the consumers purchase this model automobile. By using this kind of promotion, it has been in a position to sell this model more than other competitors.

Pricing issues

Ford automobile may face many pricing issues like the price tag on materials that used to produce the cars. If the materials price is rising, it will lower the profit for the companies. On the other hand, the demand in market industry it also affects the purchase price, if the demand for Ford Fiesta is high therefore price increase.



The Ford product is expensive in support of designed for higher income people. The look of car is not beautiful compare to other competitor car.


Ford Motor Company can produce the automobile which is well suited for average income and low income people. Ford Motor Company can try to create new design for the new car and make an effort to post it online to let consumer vote.


Ford product have few target markets and we've do some research of how Ford Motor Company use SWOT analysis to sell their product. We also understand how Ford Motor Company uses 4 components of marketing mix to sell the merchandise to the client.

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