strategic memoblack

8/14/2019 Strategic MemoBlack

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STRATEGICSTRATEGICMEMOMEMO

ONON

Presented By:

Group 2 Peter Drucker

Akanksha Arora - Business Development

(8001)

Garima Singh - CEO (8014)

Utsav Shah CMO (8045)

Pritesh Lodha COO (8084

Vishal Shah CFO (8107)


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Agenda About Ford, India

Industry overview

Marketing strategies

Positive practices adopted by Ford

Challenges

Brief financial analysis

SWOT

Competitive analysis

Strategies for Indian market

Recommendations

The road ahead


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Ford India Ltd Started in 1995 with M&M ltd.

50 50 JV

Mahindra Ford India, Limited (MIFL)

In 1998, its stake increased to 92.18%

Re-christened as Ford India Limited

Has manufacturing plant at Chennai with 2100 employees

Ford is the worlds 4th largest automaker based on sales


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u omo e n us ry n7th largest in the world

Among the fastest growing in the world

Growth rate is at the average of 10 12%

India has the fourth largest car market in the world

Source: www.team-bhp.com


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Segmentation

a) Geographic Segmentation: metro cities e.g. Delhi,Noida, Mumbai, Kolkata Bangalore, Pune etc

b) Demographic Segmentation:

3. on the basis of Age: middle age people (25-40)

4. on the basis of Income: upper middle level or thehigh-level income groups

c) Psychographic Segmentation:

on the basis of the Lifestyle: segmentation is done

on the basis of the attitude, interests and lifestyleetc of the potential customers


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d) Behavioral segmentation:

2. on the basis of Benefits Provided: such asquality, service, economy, speed comfort etc.

3. on the basis of the Readiness stage: awareness

and interest among the customers about the brande)Strategic Segmentation of Cars:

5. Family car segment: e.g. FORD IKON ANDFORD FUSION

6. Premium car segment: e.g. FORD FIESTA,

FORD MONDEO7. SUV segment: e.g. FORD ENDEAVOUR


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Targeting

Ford Ikon- Entry-level middle class group

Ford fusion Youth class

Ford Fiesta- Upper middle class group

Ford Mondeo and Endeavour Higherincome group or premiumsegment


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Positioning

Upper middle luxury brand

The brand provides Innovation,

Advanced technology and Bestquality automobiles.


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Marketing Strategies -

Product and services

Ford India sells Ikon in five variants

Ford fusion, ford fiesta, ford Endevour,Ford Mondeo comes in two

different variants

Ford launched Endeavour to cater to the Sports Utility Vehicle (SUV)

market

New products

Ford small car

Ford electric car

Fuel efficient vehicles


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Services

Quality care

Ford assured

Quick service centers

SSP(schedule service plan)


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Place

Target metro cities

Strategic Distribution network

vHMIL

vJai Hind


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Pricing

Ford Ikon: Rs. 5,45,200

Ford Fusion: Rs. 6,50,000

Ford Fiesta: Starting from Rs. 6,00,000 up to

10,00,000

Ford Endeavour: Rs. 16,00,000


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Promotion Hoardings, advertisements

Website

Dealer development

Go green strategy

Ford offers

Ford marathon Ikon drive

Community sponsorship

Selling strategy

Corporate sale

Field sales

Showroom sales


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Positive practices

Excellence in manufacturing

Constant monitoring of the supplier base

Maintaining quality and customer satisfaction

Degree of localization


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Challenges Uncertainty and fluctuations in the Indian car market.

Global increase in crude prices will impact the purchasing decision of the

potential customers to buy the petrol engine models.

Reluctance of Indian consumers to upgrade cars. Initially, this had resulted

in lower than expected sales volume in the C-Segment.

To combat the increasing usage of LPG fuelled or electric cars in the world.

To come out with competitive models occasionally in order to sustain in the

market and keep up with the competitors.

To keep up with the technological advancements taking place in countries

like Japan and Korea in the companies like Hyundai, Honda, etc.


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SWOTStrength

One of the world best known brands

Investment in alternate fuel

Web strategy

Weakness

Limited product portfolio

Limited reach to metro cities

Opportunity Small car segment and electric car

Govt. initiative

Threat

High import subsidies

Rising prices of steel and other raw materials Rising fuel prices

Competitive rivalry


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Financial Analysis


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Current Ratio


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Asset Turnover Ratio


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Operating Profit Margin


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Debt-Equity Ratio


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Competitive Analysis

Porters five force analysis

Competitive Profile Matrix (CPM)

Porters 5 Force Anal sis


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Porters 5 Force Analysis :FORD India

PotentialEntrants

ExistingIndustry

Competitors

Substitute

BuyerSupplier

High

Moderate

Low

Low

High

C titi P fil


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Competitive Profile

Ford ranks alarmingly low amongst its competitors

Ford has to work upon certain factors where it is ranking less and has

to develop strategies in order to have an edge over its competitors.


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Continued

SCALE

+1 +2 +3 +4 +5 +6 -6 -5 -4 -3 -2 -1Poor Best Poor Best


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Calculations for SPACE Financial Strengths: 19/5 = 3.8

Environmental Stability (ES): -22/9 = -2.44

Competitive Advantage (CA): 23/7= 3.29

Industry Strength (IS): -17/6 = -2.83

Y Axis

FS + ES = 3.8 + (-2.44) = 1.36

X Axis

CA + IS = 3.29 + (-2.83) = .46

SPACE Matrix


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SPACE Matrix

Adopt AGGRESSIVE Strategies


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Applying Ansoffs Model for


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Applying Ansoff s Model forFORD1. Market Penetration

Economic Downturn

Not followed market penetration, but increased prices.

Ikon price up by 1.5% from April 09

Rising component import bills due to rupee depreciation

Believes in premium quality products

Target customers: upper middle class, who wont mind the pricehike if they get good quality

Maintain or increase share of current products through

promotions and providing quality product.

Introducing loyalty schemes


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Recommendations

Launch A Small Car before its too late

Networking with suppliers and Localization

Effective media campaign for India

Ford India: The Proposed


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Ford India: The ProposedRoadma

(Petrol version) prized small car

Prized at 3.5 4.0 Lacs

1100 CC Engine

(Less govt duty for engines less than

1200 cc) A whole new design and R&D for the car

customized to the Indian market

BS Stage IV emission norms

Following the Industry and category

benchmarks in offerings of comfort,

safety and performance

High fuel efficiency approved by ARAI

Stylish international design

3 year service warranty

Availability of options such as ABS,

Airbags for consumers who want to give

premium price for safety

Effective and Innovative media

campaign bundled with a good PR work

for the car

Availability of Nationwide ford service

Enter into SMALL CAR market, which is the highest selling(70%) market in India.

Ford India: The Proposed


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Ford India: The ProposedRoadma

Environmental Concerns

Fuel Price

Seen as NEXT Era ofAutomobiles

Lower Running Cost

A strong R & D

Develop a Hybrid vehicle

Develop an Electric Poweredcar

Lobbying with Industry

associations & Govt. of India to

reduce the taxes and duties.

Effective Marketing

Enter into ELECTRIC & HYBRID CAR market, which is growing

Why? How?


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Suggestions to FORDIndia

Suggestions to FORD


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Suggestions to FORDIndia (cont)


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Thank You..!Thank You..!Thank You..!Thank You..!

Thank You..!Thank You..!

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