Marketing of Ford Figo in India

Marketing the Ford Figo in India

St. Thomas University

BUS-490 Dr. Maxwell

October 2012

Table of Content

1. – Abstract………………………………………………………………………….3

2. – Introduction……………………………………………………………………...4

2.1. – Generic Marketing Strategies…………………………………………….4

2.1.1. - Low-cost provider strategy………………………………….…..4

2.1.2. - Differentiation Strategy…………………………………………4

2.1.3. - Focused (or market niche) Strategy……………………………5

2.2. – Ford Motors Company India…………………………………………….5

2.2.1. - Background………………………………………………………5

2.2.2. - Key Personnel……………………………………………………7

3. – Ford Figo………………………………………………………………………..7

3.1. – Developing the Ford Figo………………………….……………………...9

3.2. - Launching the Ford Figo…………….……………………………………9

3.3. - Marketing Strategy……………………………………………………..…10

3.3.1. – Crafting the strategy……………………………………………10

3.3.2. – Executing the strategy………………………………………….13

3.4. –Results……………………………………….……………………………14

3.4.1 - Ford Figo Awards………………….……………………………14

4. – Conclusions…………………………………………………………………….16

5. – Works Cited……….………………………………...…………………………17

1. - Abstract

This Research paper will be primarily focused in explaining and understanding the marketing strategy used by Ford to successfully launch the Ford Figo in India. The case will outline the research and development behind the Ford Figo and the different steps and procedures taken by Ford to identify the target customer and decide the features of the product to meet the needs of the Indian customer. Moreover, this paper will deal with the concept of new product development and also it will describe how Ford deals with the challenge of how to continue the momentum for the Figo to keep it attractive to the target customer in the future.

This paper will be divided basically in three parts. First, in the introduction will be presented a brief explanation of how Ford was able to enter into the Indian market as well as a description of the generic marketing strategies. Second, a detailed description of the development, launching and marketing strategy of the Ford Figo will be illustrated. Finally, this paper will show a brief compilation of the results obtained by Ford after its great efforts to become a leader in the car industry of India. Basically, this paper will help the readers to understand issues and challenges in launching a new product. Also, it will explain the ways in which the strategy of a company should evolved to keep the brand relevant to the target audience.

1. –Introduction

2.1. – Generic Marketing Strategies:

Before discussing any aspect of the strategy used by Ford in India, it is important to know that the companies have several options to choose from when deciding what strategy to implement in any industry. There are two characteristics to consider when a company has to decide what strategy they want to use. It all depends in “whether the company’s market is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or product differentiation” (Thompson, 2010, p. 136) .

Basically, there are three generic strategies to compete, which are:

1. - Low-cost provider strategy:

The target of this strategy is to have lower costs than rivals on products of comparable quality. To success in this kind of strategy, the company must think in cost saving approaches that must be difficult for rivals to copy. This strategy generates profits to the company in two basic ways; underpricing competitors and attracting price sensitive buyers and using price cuts to steal sales away from rivals. (Thompson, 2010, p. 137) It is important to know that low prices, by itself, is not always appealing to buyers, the product must have contain enough attributes to attract customers.Wal-Mart is one of the companies who successfully implement this kind of strategy.