Question:
Discuss About The Management The Interactive Business World?
Marketing strategies used by all the manufacturing, wholesale, retail and even all the industry. Business owners in USA are trying to establish business strategies in order to improve on marketing their product. Successful business plan and strategies helps to increase the profit from the business. The scope of the report is to analyze how the brand Ford has made a largest position in the automobile industry as manufacturer, distributor and marketers of the brand (Czinkota and Ronkainen, 2013). It was founded by Henry Ford and incorporated on June 16, 1903.
The five pillars of business marketing is price, product, place, promotion and the people. Marketing strategies formulated depend on those above points. The essential elements of business strategic or tactical planning is the product itself, the price of the product, the placement or the position of the product in the market and at last is the advertisement and promotion of the product. The pricing of this brand is done according to market and to the country it is sold, price is based on competitor pricing. In order to promote, the brand advertises its product and increases the demand by organizing advertisement campaign depending on the life style and behaviors of the people in the market. This strategy can be enables selling the product at a reasonable price to attract the consumers towards their brand (Eilert et al, 2107).
The companies have learnt and understood that the “customer is the king of the market” which has changed from the earlier perception that “customer will accept whatever he is given”, this change in mindset has led to the opening up of one of the significant and very important “P” in the marketing mix called promotion. Their promotional strategies help them in doing that efficiently. Promotion being a vast topic encompasses many terms and the most important of them being ‘advertising’.
The target market for Ford is business man. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving lines. Men and women need and consume in a different manner, they purchase differently and in general, have different attitudes about consumption of caffeine (Epstein and Buhovac, 2014). Many advertisements direct at one sex or the other. It operates in more than 320 countries, because of the local nature of their business; they were able to have a unique position, which contribute to the economic vitality of even the most remote communities around the world.
While for the demographic variables Companies focus on factors such as income, education, and marital status , and the gender, age, and stages of life thereby the company is able to analyze how the consumers influence purchase decisions.
In order to determine psychographic segmentation, Ford targets people based on general brand consciousness (Firat, 2014).
Positioning refers to the position where the product stands with respect to competitors in the market and even to the consumers mind. In the past, it has also produced tractors and automotive components and now a big brand company (Ford, Mattsson and Snehota, 2017).
Product life cycle is the stage through which a product goes through product goes through three stages Introduction, Growth, Maturity and Decline. At the introduction stage, the cost of the product is very high, the demand created and there are no sales. At growth stage cost is reduces and sales are increased and the consumers are aware of the product. At maturity, cost gets low and sales reach to saturation, brand differentiation done at this point. At Decline stage, this point the sales volume decline as a result the profit decreases
SWOT Analysis means to analyze the strength, weakness, opportunities and threats potent to the company.
Cash cow: Ford is a automobile company that has been operating as a cash cow for, as the brand is sold across 200 countries in a mature beverage industry. A larger segment of the operations based on finished products. It is available to the market in their respective regions, enabling the organization to earn significant amount of revenues from its finished products categories. Since the industry is mature, the company needs to invest little effort to keep the sales high as the business unit has captured a large market to generate cash (McDonald and Wilson, 2016.).
Stars: The product in the category is a star for the organization. The rising number of people increases the need to produce more innovative cars to fulfill the needs of the expanding population
Question mark: The market has growth opportunities, but these products have not been able to take benefit of these opportunities in an effective manner.
Dogs: The products that are included in the category of dogs are a part of mature industry, thus the chances of further growth are limited. Another issue that raises question about the feasibility of these business units or products for the company is that they do not offer significant revenues to the organization. The outlook of these products is also bleak, necessitating the evaluation of the viability of continuing business operations in this domain.
The brand follows intensive growth strategy, which include strategy to penetrate into the market. The Company makes strategy to for market penetration, product innovation and for diversification of its business. In order to grow the brand focuses on revenue generation, the company invests in brand and business, thereby becoming much efficient. Among these brands are 20 that generate more than a billion dollars in annual distributor and retail sales (Nagle et al, 2016).
Porter’s five forces allow companies to see how competitive an industry is. It is able to use these five forces to determine where it stands in the industry.. The threats of entrants are low, that means that it is difficult for new companies to enter the market. The power of customer is medium to high because there are numerous alternatives, but because of brand loyalty, consumers chose to buy the brand they like the most.
Product Differentiation Strategy: Through the differentiation strategy, the company tries to position its product in the manner that it stands out to be different from the products of the same category.The company spends about 20% of its budget on advertisement so that it could maintain a differentiation strategy. The company uses a unique blend of advertisement and marketing strategy, which helps it to be a leader among the different soft drinks companies.
Cost Minimization: Through cost leadership strategy, the company tries to position its product cheaper than its competitor does and for this, the company tries to minimize the cost. To make this happen, the company manages its cost in an efficient manner. It administers its operating expenses and manages the flow of cash in the organization. The investments made in those areas, which seems profitable to the organization. The company also makes production on a large scale so that the operating cost is low, and the customers benefit from this. It becomes a win-win situation for both, customers, and the company (Savitz, 2013).
Market Focus Strategy: The focus strategy based upon creating the cost, as well as differentiation focus. Focus strategy based on serving niche marketing, where it serves a particular segment of customers and cater to their needs and preference. By focusing on the development of its design, size, and taste so that it could match the requirements of the customers, is the differentiation focus of the company (Shank. and Lyberger,2014).
Firstly, there have been many issues faced by the company and the biggest example is that the organization has once been broken and now it had a successful turnaround for Ford Motor Company under the leadership of CEO Alan Mulally. When CEO Alan was elected the strategies including the marketing and the branding and the franchising issues were all broken and their stock price also fell and its debt status was all bad and it was the worst year for the company Ford with a $12.7 billion loss (Tannady, 2016). It was thought that the company would run into bankruptcy and become insolvent, however with time there was a turnaround and the company regained its position and came out of the bad times (Ward and Sobek , 2014). At the time when the CEO retired the company became and achieved the most eminent “history-making revitalization.”
Secondly Ford faced a huge crisis when their sales decreased during that time the company started to follow a new strategy which includes the “The way Forward”. This helped the company to reduced their cost at the same time was able to maintain the customers. They focused on the cars and the car based crossover vehicles (West, Ford and Ibrahim, 2015). Ford has a huge loss during that time and there was a problem with the distributor and the supplier, but Ford focused on the business model on the customer which lead to stronger brands and thereby targeted the specific market segments. Ford them aimed at a new promotional campaign, the Fusion Studio. The Fusion Studio is a pop up store.
Another problem faced in the re branding its car therefore it followed its global strategy which was introduced as Ford Fiesta being a global brand, which was meant to be of the standard quality and comfort. It was one of the strategic plans for Ford which created car models for the brand. Its strategies for rebranding and new product launch included that it shifted its focus from luxury Europe to the Asian market. It had their strategic move and therefore it offer smaller fuel and efficient cars to this market. Ford with times has increased its sales and manufacturing capacities and also increased the dealer and the distributors and the suppliers all over the Asian Countries. This increased the rapid demand of the consumers.
The problem faced by the brand is the pricing and promotional campaign during the recession period which caused the slowdown of the vehicle sale. Even though the company faced a huge crisis during this period and many of the company ceased and did not continue with the business but it has been able to improve its plant and it has made the plant one of the productive automotive plants.
Conclusion
To conclude we can say that a marketing plan is not a simple document. It takes loads of information, researchers, skills, time and efforts. Marketing plan covers all necessary information including, business and market research, analyzing target market, product development, price setting, promotional efforts, and distribution matters. Injecting efforts in developing a marketing plan will give you a fruitful reward at the end. Marketing plan covers. The more efforts given in the marketing plan, the more growth in business happens.
References
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning
Eilert, M., Jayachandran, S., Kalaignanam, K. and Swartz, T.A., 2017. Does It Pay to Recall Your Product Early? An Empirical Investigation in the Automobile Industry. Journal of Marketing, 81(3), pp.111-129.
Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
Firat, A.F., 2014. Marketing challenges: A personal history. Journal of Historical Research in Marketing, 6(3), pp.414-429.
Ford, D., Mattsson, L.G. and Snehota, I., 2017. Management in the Interactive Business World. In No Business is an Island: Making Sense of the Interactive Business World (pp. 27-45). Emerald Publishing Limited.
Ford, N., Trott, P. and Simms, C., 2016. Exploring the impact of packaging interactions on quality of life among older consumers. Journal of Marketing Management, 32(3-4), pp.275-312.
Lasserre, P., 2012. Global strategic management. Palgrave Macmillan.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New International Edition. Routledge.
Savitz, A., 2013. The triple bottom line: how today’s best-run companies are achieving economic, social and environmental success-and how you can too. John Wiley & Sons.
Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.
Tannady, H., 2016. AN ANALYSIS OF BOTTLED GREEN TEA PRODUCT COMPETITION (A CASE STUDY OF JOY TEA). Teknik dan Ilmu Komputer, 5(17)
Ward, A.C. and Sobek II, D.K., 2014. Lean product and process development. Lean Enterprise Institute.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage. Oxford University Press, USA.
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