Mkt_571_Product_Offering

Product Offering –Ford Motor Company The Ford Motor Company is headquartered in Germany began in 1909 and went global in 1965 when the company opened a manufacturing plant in the United States. This report will give a description of this company’s market needs and market growth. Ford Motor’s is taking the various needs of its consumers and adding to the products they manufacture and sell. A strength, weaknesses, opportunities, and threat (SWOT) analysis was conducted to examine products that Ford developed with a focus on the consumer. Ford Motor Company is a large company in Germany and the United States with plenty of competition. The marketing team for this company always has different marketing tools and steps that will make them remain a standing opponent. The Market need There is a need for ford in the German market because of the competition of the top automobile makers in the market such as Audi, BMW, Mercedes-Benz and Porsche models. The Germans also have a storied racing history where their machines were pushed to their limits and reputations were forged. There is the infamous Green Hell – The Nürburgring – where legends are made. Besides any country with 8,000 miles of public roads that allow almost unlimited speed is destined to turn out cars capable of thriving in that environment (Tutor, 2012). When it comes to juggling children, shopping and loading the car with shopping, an optional, automatic, hands free tailgate gives the C-Max a real competitive edge against the Prius. Because the C-Max hybrid is based on a car that has already been on sale in Europe for years as a conventional gasoline car, the 2013 C-Max Hybrid doesn’t look like a hybrid (Gordon-Broomfield, 2012). The fact that this vehicle can save on gas mileage and have that stylish feel with the look is a winner in any category. Market Growth From 2000 to 2010 Ford produce cars for consumers based on an outdated product life cycle. By 2010 Germany experienced a slowdown in the economy and Ford cars was toward the end of their life cycle like the Focus and Fusion. This occurred at a time when the auto industry profits began to decline a competition and consumer price sensitivity increased. Ford marketing management surveyed consumers to determine a method to increase growth, increase sales and the type of cars consumers were looking to purchase. Ford used “The Customer Concept” model to gather data before launching its new product the C-Max Hybrid. According to the concept model, customers want fuel-efficient cars with smart phone technology and navigation systems. In 2013 Ford will launch the C-Max Hybrid hatchback in Frankfurt Germany and expects the C-Max Hybrid hatchback to out sale the competition. Ford expects to see a 6% increase in sales growth and 200% increase in income growth. SWOT Analysis An external market environment and external strength, weaknesses, opportunities and threats (SWOT) analysis was conduct to aid the company in a marketing strategy for specific consumers to target and the marketing mix for the company to develop that will appeal to it target market (20-40 years of age). This analysis will help the company to determine a competitive advantage to compete in alternative fuel car market like the hybrids. The company compared it brand against it competitors to determine a marketing strategy. Ford strength is its strong brand recognition and research and investment in safety features that meet customer’s needs and demand. The company is weak in design and product reliability that is the reason for a product recall. There are opportunities in India market for small cars and its new MyKey safety technology that allows consumers to input programmable settings. The company main threat is raising capital and ability to raise capital and the decline in Euro against foreign currency. Competition The competition environment can affect the number and types of competitors the marketing manager will face and how competition can behave. The factors cannot be control but companies can choose strategies that will outperform competition. Ford assessed it competition using the “Porter five factors” to determine the nature of competition in the industry. Its competitors are offering different products to meet the target market. Competitors are Fiat, BMW Mini Cooper, Renault Dacia, Daimler Smart Car, General Motors Opel, Volkswagen Bug, Toyota Prius, Honda Mazda, Nissan Versa and KIA Sonata. Product offering/product definition Ford made a big play of its SYNC technology which has been available in the US for around a year now. The in-car connectivity system, which offers smart phone functionality in combining navigation, entertainment and safety systems, is being rolled out in Europe across the B-MAX, Focus, C-MAX, and C-MAX Grand. The SYNC system, with MyFord Touch debut on Focus Electric and be rolled out to vehicles including Mondeo; system understands up to 10,000 voice commands and by 2015 Ford is targeting that there will be 3.5 million SYNC-enabled vehicles on the roads of Europe. The other major technology system that Ford focused on at the launch was MyKey which allows owners to input programmable settings specifically to improve the safety of young drivers, such as a defined maximum speed limit and maximum volume settings for the hi-fi. However, the most significant new technology on Ford's European product offering is without doubt the 1.0 litre EcoBoost power train, which is being rolled out across the vast majority of Ford of Europe product ranges ("Ford announces massive," 2012). Product Identification & Justification The product that will be offered in Germany is the Ford C-Max Hybrid Hatchback, the all-new five passenger multi-activity vehicle (MAV) hybrid. Many advantages come with owning a hybrid, such as battery recharging (when utilizing the gas engine and regenerative braking) and the powersplit hybrid architecture–which allows the gas engine to work with the electric motor to maximize efficiency. Ford C-Max Hybrid’s gasoline-electric power train delivers excellent fuel economy, 47 mpg, and power. The suspension leads to a comfortable, engaged driving experience. Voice command works wonders with music selection and phone calls, while automatic parking is the icing on the cake. Offering all the fuel economy and practical interior space of a Toyota Prius, the 2013 Ford C-Max Hybrid adds significant power and a more engaged driving experience. Conclusion This report provide various descriptions of Ford’s product and what the company offer. There is a method for identifying different products that are manufactured by Ford. Ford has produced various models and has one of the largest research and development company. There is justification Germany for choice in the products that are manufactured in the country.