Ford Motors Case Study Analysis



Ford Motors Case Study AnalysisThis case study discusses Ford Motors’ history as a reputable brand in the United States and around the world because a brand for a company is like a reputation; you earn reputation by trying to do hard things well. It details Ford Motors’ strategy when facing the challenge of surviving the 2008-2009 economic downturn that affected many businesses internationally and particular the auto industry. The case study also gives an insight to the Ford’s efforts to establish each of their individual brands, especially the Ford Fiesta as an international product, the Ford Figo in the Asian markets – as opposed to the high-end luxury automobiles generally aimed at the European markets, and the Ford Fusion, which was first solely marketed towards women.Ford’s motto, “The Way Forward” is mentioned several times throughout the text to acknowledge Ford’s forward way of thinking using electricity to run their cars as opposed to natural resources or simply by making their vehicles more fuel-efficient. This could mainly be due to the fact that natural resources are depleting on an international level and car makers will soon be forced to rely on other sources of energy. In addition, “The Way Forward” as a motto includes a subliminal positive message that was sorely needed in the time of the great recession. The phrase could have perhaps been created to appeal to the current state of needs for consumers across the board and adding to the mix a stronger brand, new models, and higher quality, which will certainly instill optimism into the global market. The streamlining plan to decrease fixed capital costs such as the development and production and focus more on a product that appeals to the consumer is exactly what the company needed. The strategy assisted in saving Ford during the 2008 recession by employing multiple components. The individual branding of products that appealed to different marketing demographics, i.e. the Ford Fusion, allowed marketing segmentation to different markets. Furthermore, the use of promotional strategies including pop-up stores in malls and the realization that other sources of energy could be used to not only help the environment but also to lower the prices of automobiles in a time where the industry, as well as consumers, are noticeably struggling. Ford has linked its domestic and global strategies by first understanding the different needs, trends, and desires of each individual market and implementing their own internal changes to take advantage of these needs, changes and trends (Daye, 2009). Also, Ford has managed to use the “The Way Forward” campaign to innovate international markets by selling smaller, more fuel efficient vehicles to markets in Asia. Increasing manufacturing in multiple countries (including India) and exhibiting this to the appropriate media outlets to create a sense of resourcefulness, positivity, and consumer demand in a time of need. I believe that Ford’s strategy to scale back on luxury markets was an intelligent approach as it could focus on a niche market that was struggling during the great recession (Pride, 2012). It is no surprise that luxury vehicles appeals to be a very small market with a capacity that cannot surpass the dire economic climate of 2008-2009. Creating energy efficient products also provides a sense of pride in consumers who may not be privy to material possessions. Their promotional feats, which directly caught the attention of consumers, are also instrumental in creating brand awareness nationally and internationally. The most important concept of this case study is Ford’s ability to overcome the many obstacles in what was perhaps the most difficult time period for the auto industry and how they did it. Providing information on branding concepts, promotional strategy, consumer appreciation, and filling consumer needs using innovative ideas (Anderson, 2009). With the inclusion of lower pricing, advertisements to women, and other different markets and using fuel efficiency, Ford’s “The Way Forward” campaign has been a vital tool for the company’s success. Professionally this applies to me because it is important to have an understanding of what a company does to be successful when faced with challenges that could and ultimately did ruin other similar businesses. The recent history of the auto industry is important for both consumers and professionals (in any field) to understand as the purchase of motor vehicles (along with houses) is a driving force in global economic sustainability. In conclusion, I was unaware of the steps being taken with Ford as a company to maintain their popularity and stock interest as an influential auto maker. I was simply under the impression that many people were losing their jobs internally (which is what was mainly highlighted in news coverage particularly concerning Detroit, Michigan – which house Ford Motors and has since its inception). I admire Ford Motors and believe that they made the right decisions to create a niche market and niche products focusing on smaller demographics that were capable of purchases as opposed to the highly coveted, but less affordable, luxury markets. "The ability to retain customers is an important indicator of product success and commitment to developing long-term customer relationships. As automakers are scrambling to maintain market share, holding onto current customers has never been more important" (Anderson, 2009).Works CitedAnderson, J. (2009) “Ford Motor Company Tops Latest Brand Loyalty Ratings From Experian Automotive”. . Retrieved from , Derrick (2009) “Ford’s Fruitful Branding Strategy” Retrieved from . Retrieved on 9/27/12Pride, W. & Ferrell, O.C.(2012). Marketing, 16th ed. Boston, MA: Houghton Mifflin. ................
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