A PROJECT REPORT ON

Customers Perception and satisfaction towards Ford Motors by VIPIN VARGHESE Enrolment No. 2491000091 For partial fulfillment of the requirements of second year MBA curriculum of Two years Full time MBA (Industry Integrated) Programmed Submitted to:

Through

New BEL Road, MSRIT Post, MS Ramaiah Nagar, Bangalore-560054 www.rimsbangalore.in

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GUIDE CERTIFICATE

This is to certify that the project work entitled Customer Percetion and Satisfaction toward Ford Motors. is a piece of confide work done by VIPIN VARGHESE,student of Ramaiah Institute Of Management Sciences ,BANGALORE, under my guidance and

supervision for the partial fulfillment of the course MBA (Marketing Management ). To the best of my knowledge and belief the research embodies is the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfills the requirements of the rules and regulations related to the summer internship of the institute and I am assured that the project is up- to the standard both in respect to the contents and language for being referred to the examiner.

_____________________ Project Guide Prof. Mr.Anil B Gowda.

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STUDENT DECLARATION
I hereby declare that the internship report titled CUSTOMER PERCEPTION AND SATISFACTION TOWARDS FORD MOTORS. Submitted in partial fulfillment of the requirements for the degree of MASTER IN BUSINESS ADMINISTRATION TO RAMAIAH INSTITUTE OF MANAGEMENT SCIENCE ,Bangalore ANNAMALLAI UNIVERSITY Is my original work and not submitted for the award of any other degree, diploma, fellowship or other similar title or awards.

DATE

NAME-VIPIN VARGHESE

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College Certificate

This is to certify that Mr. VIPIN VARGHESE in MBA 2nd YEAR. At our Institute has conducted this work title Customer Perception & Satisfaction towards Ford Motors. Based on original study conducted at Ford Motors, Bangalore, under the guidance of Prof.Anil B Gowda , during the period 01-01-2012 to 31-03-2012 Further, it is declared that this report is the original work and has not been submitted to any other University or Institute for the award of any Degree or Diploma.

Internal Guide: Prof. ANIL B. GOWDA

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ACKNOWLEDGEMENT
I take opportunity to express my sincere gratitude to Ford Motors for giving me the opportunity to work in the organization as a part of my summer internship. I am grateful to, my project guide Prof. Anil B Gowda who has been supporting and helping me throughout my project which was the best thing that happened to me during the research. He guided me at each step and made my summer training the most eventful and worthwhile experience till now. I could understand market research and its various s from him. I do not have enough words to express my gratitude to him. I extend my special gratitude to our beloved director Dr. M R PATTABHIRAMRAM, Our Dean Dr. Y RAJARAM & Our Co-ordinator Prof. SREERENGAN V.R , for inspiring me to take up this project.

They gave me confidence to complete my project and made me understand every step of the project. They guided me constantly during all the phases of the project and corrected me whenever I was wrong in the project work. They have made the completion of the project possible; I do not have words to express my gratitude to them. I am also grateful to the employees of Ford Motors and my friends who gave me full cooperation and support by providing necessary inputs required at different stages of my project work.

Sincerely STUDENT NAME: Vipin Varghese (Reg. No.AB1037)

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Objective of the Study

Primary Objective:
To know the influence of various Marketing Strategies, Promotional Activities towards the customers of four wheelers(cars).

Secondary objective:
To know the effective factors for preferring 4 wheelers(CARS) To know the factor of awareness of the cars. To Study and analyze the Promotional Strategies of Ford To know whether the customers are satisfied with the offers given by the dealer. To know which kind of offers can attract the new customers. To find the area to be improved To find out satisfaction of the customers. To find the reasons for the dissatisfaction. To study the channel levels involved in the promotion of Ford To study and analyze the customer's perception regarding the usefulness/utility of Ford cars. To study and analyze the distributors perception regarding the promotional and distributional strategies of Ford.

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Current Status of Automotive industry and Future Outlook

1.The Indian Automotive Industry after de-licensing in July, 1991 has grown at a spectacular rate of 17% on an average for last few years. The industry has now attained a turn over of Rs. 1,65,000 crores (34 billion USD) and an investment of Rs. 50,000 crores. Over of Rs. 35,000 crores of investment is in pipeline. The industry is providing direct and indirect employment to 1.31 crore people. It is also making a contribution of 17% to the kitty of indirect taxes. The export in automotive sector has grown on an average CAGR of 30% per year for the last five years and has reached a turnover of 8 billion USD The export earnings from this sector are 3.5 billion US $ out of which the share of auto component sector 1.8 billion US$. 2. Even with this rapid growth, the Indian Automotive Industrys contribution in global terms is very low. This is evident from the fact that the passenger car segment has crossed the production figure of 1 million in the year 2005-06. Indias share is about 1.6% of world production as the total number of passenger car being manufactured in the world is 60 million against the installed capacity of 90 million. Similarly, export constitutes approximately 0.3% of global trade. 3. It is a well accepted fact that the automotive industry is a volume driven industry and a certain critical mass is a pre-requisite for attracting the much needed investment in Research and Development and New Product Design and Development. R&D investment is needed for innovations which is the life line for achieving and retaining the competitiveness in the industry. This competitiveness in turn depends on the capacity and the speed of the industry to innovate and upgrade. No nation on its own can make its industries competitive but it is the companies which make the industry competitive. The most important indices of competitiveness is the productivity both of labour and capital. 4. The concept of attaining competitiveness on the basis of cheap and abundant labour, favorable exchange rates, low interest rates and concessional duty structure is becoming outdated and not sustainable. In the light of above, it is felt that a greater emphasis is required on the development of the factors which can ensure competitiveness on a long term basis. The automotive sector with its deep backward (metals- steel, aluminum, copper etc. plastics, paint, glass, electronics, capital equipments, trucking warehousing and logistics) and forward (dealership retails , credit and financing, logistics, advertising, repair and maintenance, petroleum products, gas stations, insurance, service parts) linkages has been recognized and identified at different foras ( Development Council of Automobile and Allied Industries, Planning Commission, National Manufacturing Competitiveness Council and Investment Commission) as a sector with a very high potential to increase the share of manufacturing in GDP , exports and employment. The sector is also seen as a multiplier of industrial growth. It helps in attaining two critical goals of the common minimum programme , that of increasing manufacturing output and of providing employment. Although indirectly but it also facilitates the third objective of increasing agricultural productivity through farm mechanization and the needs of agri produce transportation.

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5. The country with its rapidly growing middle class (450 million in 2007, NCAER report), market oriented stable economy, availability of trained manpower at competitive cost, fairly well developed credit and financing facilities and local availability of almost all the raw materials at a competitive cost has offered itself as one of the favorite destination for investment to the auto makers. These advantages need to be exploited in a manner to attain the twin objective of ensuring availability of best quality product at lowest cost to the consumers on the one hand and developing and assimilating the latest technology in the industry on the other hand. The Government recognizes its role as a catalyst and facilitator to encourage the companies to move to higher level of competitive performance. The Government wants to create a policy environment to help companies gain competitive advantage. The government policies target to encourage growth, promote domestic competition and stimulate innovation. 6. It is also felt that a general improvement in availability of trained manpower and good infrastructure is required for the sustainable growth of the industry. But these generalized efforts in development of the factors of production rarely produce competitive advantage. Only an advanced, specialized and industry specific initiatives can lead to competitive advantage. Keeping in view the above factors, the Government has launched a unique initiative of NATRIP to provide a specialized facility for Testing, Certification and Homologation to the industry. A similar initiative is required for creating a specialized institution in automotive sector for education, training and development, market analysis and formulation and dissemination of courses in automotive sector through ITIs and ATIs . 7. The issues relating to fiscal incentives to the industry for R & D is under study of Mashelkar Committee and the issues pertaining to duty structures is being examined by the Hoda Committee. The concerns of the industry will be suitably presented in the above fora. 8. It has been noticed that the Auto Industry has grown in clusters of inter-connected companies which are linked by commonalities and complementarities. The major clusters are in and around Manesar in North, Pune in West, Chennai in South , Jamshedpur-Kolkata in East and Indore in Central India. The Department is envisaging in the Eleventh Five Year Plan period to create a National Level Specialized Education and Training Institute for Automotive Sector and to enhance the transportation, communication and export infrastructure facilities through concerned Ministries in and around these clusters. The Government will make attempts to eliminate all the barriers to local competition and organize the relevant Government Department and Educational and Research Institution in and around the clusters. 9. The Government is confident that with the above interventions, the Industry will achieve the target of 75.3 billion US$ in turnover and 8.97 billion US$ of exports by the end of the Eleventh Plan period.

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The Present Status- Terms of Reference (TOR)- 1:

The present status (capacity, production, consumption, imports and exports) with special focus on its potential and challenges and to estimate demands for 2007-2012. 1. Introduction: 1.1 The Indian Automotive Industry comprising of the automobile and the auto component sectors has recorded considerable growth following the delicensing and opening up of the sector to FDI in 1993. The unbundling of this industry from restrictive environment has, on the one hand, helped in restructuring, absorbing new technologies, align itself to the global developments and realize its potential with significant increase in industrys contribution to overall industrial growth in the country. The investment in the industry of nearly Rs. 50,000 Crore in 2004-05 is slated to go up to Rs. 85,000 Crore by 2007-08. 2. Indian Automobile Industry: An overview 2.1 Automotive Industry, globally, as well in India, is one of the key sectors of the economy. Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and acts as one of the drivers of economic growth. The well-developed Indian automotive industry produces a wide variety of vehicles: passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters, motor-cycles, mopeds, three wheelers, tractors and other agricultural equipments etc. The sector has tremendous potential of providing employment which will increase the present figure of employment in manufacturing sector which is quite low at 12% as compared to the countries like Malaysia (50%); Korea (62%) and China (31%). 2.2 Installed capacity : The automobile industry especially over a period of time and particularly after liberalization, has installed a robust capacity. The installed capacity in different segments of automobile industry is as under: Installed Capacity in Different Segments in nos. S.No. 1. 2. Segment Four Wheelers Two & Three Wheelers Grand Total Installed Capacity 1,590,000 7,950,000 9,540,000

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2.3 The production of all categories of vehicles has grown at a rate of 16% per annum over the last five years. The last 5 years achievements are given below :

Production (in nos.) Category Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers Total Percentage growth 2001-02 564052 2002-03 608851 2003-04 842437 2004-05 960505 2005-06 1045881

105667

114479

146103

249149

263032

162508

203697

275224

350033

391078

4271327

5076221

5624950

6526547

7600801

212748

276719

340729

374414

434424

5316302 11.70%

6279967 18.60%

7229443 15.12%

8460648 16.80%

9735216 15.06%

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2.4 Export of Vehicles : Automotive industry of India is now finding increasing recognition worldwide. While a beginning has been made in exports of vehicles, the potential in this area still remains to be fully tapped. Significantly, during the last two years the export in this sector has grown specifically in export of cars and two / three wheelers. The table below indicates the performance during last six years and first quarter of the current year. Export (in nos.) Category Passenger Car Multi Utility Vehicles 2000-01 22990 4122 2001-02 50088 3077 2002-03 70828 1177 2003-04 126249 3067 2004-05 160677 5736 2005-06 170193 5579

Commercial 13770 Vehicles Two Wheelers Three Wheelers Total Percentage 111138 16263

11870

12255

17227

29949

40581

104183 15462

179682 43366

264669 68138

366724 66801

513256 76885

168283

184680 09.74

307308 66.40

479350 55.98

629887 31.40

806494 28.03

. The automobile exports crossed US $ 1 billion mark in 2003-04 and reached US $ 2.28 billion in 2005-06. 3. Auto component Industry: An overview: 3.1 Indian auto component industry is quite comprehensive with around 500 firms in the organized sector producing practically all parts and more than 10,000 firms in small unorganized sector, in tierized format . The auto component sector has been one of the fastest growing segments of auto industry, growing by over 28%, in nominal terms between 1995-98. The Industry also sustained a high growth rate and could achieve growth of 24% in 2003, 16% in 2004-05 and 15% in 2005-06 (estimated). The industry, over the years, developed the capability of manufacturing all components required to manufacture vehicles, which is evident from the high levels of indigenization achieved in the vehicle industry as well as the components developed for the completely Indian made vehicles like the Tata Indica, Tata Indigo, Mahindra Scorpio, Bajaj Pulsar and TVS Centra. The component industry has now holistic capability to manufacture the entire range of auto-components e.g. Engine parts, Drive, Transmission Parts, Suspension & Braking Parts, Electricals, Body and Chassis Parts, Equipment etc. The component-wise share of production, as indicated by the ACMA, is Engine parts-31%, Drive and Transmission Parts-19%, Suspension & Braking Parts-12%, Electricals-9%, Body and
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Chassis Parts-12%, Equipment-10%. 3.2 Over the last few years the Indian Auto Component Industry has created a robust capacity base and worlds all major manufacturers have set up their manufacturing unit in the country. The quality of the components produced by the component industry in the country is certified by the fact, that out of the 498 ACMA members, 9 are Deming Prize winners, 4 are JIPM award winners and 1 is Japan Quality Medal winner. 4. The Indian Tyre Industry : India is one of the few countries which has attained self sufficiency in tyre production barring the production of some types of vehicles tyres, air-craft tyres and snow tyres. India has constantly been exporting the tyres to almost 65 countries. The total installed capacity is 850 lakhs units against which 650 lakhs units were produced in the year 2005-06 of which 620 lakhs units were consumed domestically. In tonnage terms the production in the year 2005-06 was 11.17 lakhs Mt. tons. The industry is expected to grow at an average rate of 7% per annum during Eleventh Five Year Plan period. The total turn over of the tyre industry is Rs. 13,500 crores out of which tyres worth Rs. 2300 cores was exported in the year 2005-06. 5. Growth Trends:5.1 The turnover of auto component sector has grown from a figure of US $ 1.5 billion to US $ 9.8 billion. Low labor costs, availability of skilled labor and high quality consciousness among Indian vendors have spurred the growth of auto component exports from India. During 2003-2004, the exports of auto-components crossed the magic figure of US $ 1 billion after having posted a healthy growth of 25%. During the year 20042005, the exports grew by 40% thereby taking the direct exports of components to a level of US $ 1.4 billion. As per ACMA, in the year 2005-06 exports grew by 28% and reached the level of US $ 1.8 billion. It is pertinent to mention here that still it is very low against the volume of world trade of 185 billion US $ in auto components. 5.2 More than 60% of the exports of auto-components are to USA and Europe, which constitute high AQL (Accepted Quality Level) countries. Moreover, over the last 5 years, the structure of the customer base in the global markets has also undergone a major change. In the 1990s more than 80% of the exports was to the international aftermarket. In 2005, more than 70% of the exports are to the global OEMs and Tier 1 companies and only 30% is to the aftermarket. This signifies that the Indian component industry has now reached a high degree of maturity in terms of quality and productivity and has also developed capabilities in the area of design and engineering, which are critical requirements for being a part of the global supply chain. 5.3 Indian auto component manufacturing, currently constrained by lack of large capacities, is slowly but steadily working on expanding capacities and automation levels.

As the users increasingly become discerning in their buying behavior, new model introduction by the auto manufacturers has become the trend. Greater variety in vehicle is offering challenges to the manufacturing capabilities and economies of scale of component suppliers. Hence the component industry is constantly looking at maintaining lean and efficient manufacturing systems. Having established themselves in the domestic
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market, tapping opportunities abroad was a natural step for the auto component manufacturers in their growth path. The Indian auto component industry is targeting for a bigger share of the export market and is in the process of ramping up its manufacturing capabilities to meet the capacity and quality requirements. During 2004, the auto component industry increased its investment by 17% while the automation processes in this industry registered a growth of over 40%. Major Challenges: 6.1 Sustaining the growth rate : There is a potential for much higher growth in the domestic market due to the fact that the current car penetration level in India is just 7 cars per thousand. The increase in purchasing power at the top echelon of about 300 million people in the country, where the per capita income is over US $ 1000, implies that passenger car growth in the domestic market is on the verge of a major and sustained boom. It is expected that the passenger car market which was 1 million in 2003-2004 can easily cross the 3 million mark by 2015. This can lead to an increase in the size of the domestic auto-component market from the current level of US $ 9.8 billion (2005-06) to at least US $ 15 billion by 2015. 6.2 Need for innovation : The competitiveness in the sector will largely depend on the capacity of the industries to innovate and upgrade. The industry will also benefit if they have strong domestic competition, home based suppliers and demanding local customers. There is no denying of the fact that the factors like labour cost, duties, interest rate and economies of scales are the most important determinants of competitiveness. But productivity is the prime determinant of the competitiveness and also impacts the national per capita income. The globally successful OEMs and auto makers will ultimately make their base in places which are high on productivity factor and where essential competitive advantages of the enterprise can be created and sustained. It would also involve core products and process technology creation apart from maintaining productive human resource and reward for advanced skills. The OEMs also look for the policies of the state which stimulates innovations in new technologies. 6.3 Enhancement of share in global trade: The global auto component industry is estimated to be US $ 1.2 trillion in value and is likely to increase to US $ 1.7 trillion by 2015 as per ACMA. Sourcing from low cost countries is likely to increase from US $ 65 billion in 2002 to US $ 375 billion by 2015. Although Indias exports are still small (US $ 1.8 Billion in 2005-06 Prov.), it could leverage this off shoring trend and the quality of its supply base to build dominant top two position in auto component exports from low cost countries by 2015. A position in the top two would enable India to achieve export of US $ 20-25 billion by 2015. This would increase Indias share of world auto component trade from 0.9 percent in 2005-06

(Prov.) to 2-2.5 percent by 2015, inclusive of domestic consumption. Such a high growth in the Auto component Sector is expected to lead to an additional 750,000 direct jobs in its sector along-with indirect employment of 1.8 million people over the next 10 years. In addition to creating incremental employment of about 2.5 million people in direct and indirect jobs, it is also expected to result in an incremental revenue to the exchequer by
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US $ 3.8 billion. Investments in this sector would also grow by US $ 15 billion from the current level of US $ 3.1 billion. 7. Recent initiatives of the Government 7.1 In order to give a boost to the growth in this sector, the Government have taken several initiatives. Some of them are as under. i. The Finance bill 2006 has given a further boost to the Automotive Industry by reduction of the excise duty on the small cars, the reduction in the duty for raw material which are now between 5 to 7.5% as compared to the previous level of 10%, and the thrust on infrastructure development. ii. The Auto policy, 2002 recognizes the need to provide direction to the growth and development of the automotive industry. As a result of constant persuasion by the Department of Heavy Industry, some of the objectives of the Auto Policy have been achieved. Imposition of excise duty on body building activity of Commercial Vehicles, lower excise duty on the small cars, extension of 150% weighted deduction on R&D expenditure to the automotive sector; increased budgetary allocation for R&D activities in the sector and moving towards a lower duty regime are some of the significant achievements and steps are being taken to further strengthen the capability of the sector. iii. National Automotive Testing and R&D Infrastructure Project ( NATRIP) The most critical intervention of the Government thus far in the automotive sector has come in the form of an ambitious project on setting up world-class automotive testing and R&D infrastructure in the country to deepen manufacturing, encourage localized R&D, boost exports, converge Indias unparalleled strengths in IT and electronics with automotive engineering sectors to firmly place India in USD 6 trillion global automotive business. NATRIP aims at facilitating introduction of world-class automotive safety, emission and performance standards in India as also ensure seamless integration of Indian automotive industry with the global industry. The project will deepen manufacturing, enhance employment, encourage localized R&D, boost exports, converge Indias unparalleled strengths in IT and electronics with automotive engineering sectors to firmly place India on the global automotive map. The project aims at addressing one of the most critical handicaps in the overall growth of automotive industry today, i.e. major shortfall of testing and pre-competitive common R&D infrastructure. National Automotive Testing and R&D Infrastructure Project envisages setting up of the following facilities:-

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( i)A full-fledged testing and homologation center within the northern hub of automotive industry at Manesar in the State of Haryana; (ii) A full-fledged testing and homologation center within the southern hub of automotive industry at a location near Chennai in the State of Tamil Nadu; (iii) Up-gradation of existing testing and homologation facilities at Automotive Research Association of India (ARAI), Pune and at Vehicle Research and Development Establishment (VRDE), Ahmednagar; (iv) World-class proving grounds or testing tracks on around 4,000 acres of land in Madhya Pradesh; (v) National Center for Testing of Tractors and Off-Road Vehicles together with national facility for accident data analysis and specialized driving training at Rae Bareilly in the State of Uttar Pradesh; and (vi) National Specialized Hill Area Driving Training Center as also Regional In-Use vehicle management Center at Dholchora (Silchar) in the State of Assam. Expected Benefits NATRIP facilities will be state of the art and will be globally benchmarked. These institutions will have significant global marketing focus to attract overseas automotive testing, homologation, product validation and development work. Apart from ensuring availability of world class infrastructure to test modern vehicles and components and promoting larger value addition in automotive manufacturing, NATRIP is also slated to make a significant contribution to improving the road safety scenario in the country. India, accounting for nearly 10% of global road fatalities, loses more than 80,000 human lives every year in road accidents. These accidents cost the national economy in excess of Rs. 55,000 crore annually as per an estimate by the Planning Commission. NATRIP is aimed to ensure better safety and performance profile of vehicles. Its cost would be more than fully recovered if it helps to reduce road accidents even by a fraction. NATRIP is a path-breaking initiative of the Government and is slated to change the automotive landscape of India. iv. Constitution of Task Force : In order to realize the growth potential of Indian automotive Industry in both domestic and global market and to optimize its contribution to the national economy, the Development Council for Automobile and Allied Industries has decided to draw up a Ten year Mission Plan under the title Automotive Mission Plan for the development of the Indian Automotive Sector into a global hub. The AMP will incorporate sectoral vision and growth strategies for the individual segments of the automotive industry, specific plans and programs to achieve the vision and growth for the respective segments, plans and programs to ensure consistent availability of quality talent in the country,

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collaborative strategies and programs to institutionalize focused research efforts and key strategies to strengthen efforts of Indian automotive manufacturers. The Development Council has constituted a Task Force with a view to examine the current status and challenges and to conceptualize and document the AMP. The Task Force has identified five thrust areas namely (i) Demand Creation Brand Building and Infrastructure (ii) Export and International Business (iii) Competitiveness in Manufacturing and Technology (iv) Environment and Safety and (v) Human Resource Development. Five working groups under the chairmanship of eminent industrialists / professional were constituted for each thrust area for making specific recommendations. The working groups have recommended area of intervention at two levels namely the Industry and the Government which will enable the industry to attain the vision articulated in the Auto Policy, 2002. The recommendations of the five working groups in the form of draft report have been made. The recommendations of the Task Force has been taken up for inter-Ministerial consultation and will be put before the Development Council for Automobile and Allied Industries.

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Projections of Additional Capacity and ProductionTerms of Reference(TOR)- 2

The likely capacity and production of the automotive sector for the period 2007-12, with an indication of the perspective for 10 to 15 years. It is expected that the automotive industry will grow quite rapidly in the next 10 years and is expected to reach production volumes of almost 3 million passenger cars and more than 30 million two wheelers Projection for Automobile Production (in units) Commercial Three Two Vehicles Wheelers Wheelers 401767 431596 463743 498398 535765 576064 475541 536508 605913 685030 775343 878583 8629809 9931260 11459643 13255455 15366462 17849003

Year

Passenger Vehicles 1505149 1668437 1850909 2055040 2283659 2539997

Tractors

2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11 2011 - 12

317850 346586 378023 412429 450100 491365

Forecasted Capacities (in numbers) Year 2006 07 2007 08 2008 09 2009 10 2010 11 2011 12 Passenger Vehicles 1881436 2085546 2313636 2568800 2854574 3174996 Commercial Vehicles 502209 539495 579679 622998 669706 720080 Three Wheelers 594426 670635 757391 856288 969179 1098229 Two Wheelers 10787261 12414075 14324554 16569319 19208078 22311254 Tractors

397313 433233 472529 515536 562625 614206

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The basis of projections is based on the inputs from the experts and the studies conducted by iMACs. The study has forecasting a CAGRs for different segment of vehicles as follows:Passenger cars 10%, MUVs 8%, M&HCV 6%, LCV 9%, Scooters 3%, Motorcycles 18.0%, Mopeds 7.5%, three wheelers 11% and Tractors 8.5%. The projections of auto component industry is based on the projections of vehicle industry made by SIAM.

Challenges to growth - Terms of Reference (TOR)- 3

Areas of concern inhibiting the growth of the industry and those that impact on the competitiveness of the industry. In present scenario world over, it is an accepted view that competitiveness is no longer totally dependent on variables like availability of cheap labour and materials, low interest rates and fiscal incentives. The sustained competitiveness in industry can come only through improvement in productivity both of labour as well as capital. This calls for continuous efforts for innovation by the companies. There is also a need to improve the cost competitiveness in the auto sector. Global auto companies are increasingly sourcing components and vehicles from low cost countries. Outsourcing is also being extended to services like engineering design and other business processes. The globally competitive OEMs (Original Equipment Manufacturers) and auto makers will make their base in places which are high on productivity factor and low on costs, so that their competitive advantage can be sustained. If India has to take advantage of this, its cost competitiveness has to improve. The industry has identified certain factors which are inhibiting the growth of automotive sector.

1. Availability Fuel Price, Fuel quality and Alternative Fuel Fuel Price A rapidly growing economy demands more supply of energy. As the UN Agenda 21 states Transportation is the major driving force for the growing demand for energy. It is the largest end-user for energy in developed countries, and the fastest growing one in developing countries. Crude oil prices have been increasing and may continue so for a long time due to the speculation (fear premium) on continuing geopolitical instability. So there is an urgent need to think of an alternate fuel policy. In the above back drop the development of alternative fuel has gained greater importance. The Ministry of Non Conventional Energy Sources is working on the usage of Hydrogen as a fuel. The work in this area need to be strengthened and expedited. The policies which promotes the commercial production, distribution and usage of such alternative fuel and the automobiles using these alternative fuel need to be put in place. Besides the emphasis on commercialization of the alternative fuel, ensuring the availability of the fuel meeting the standards of Bharat Stage III and IV in time as envisaged in the Auto Fuel Policy is equally important. It will be of great help to the industry if the availability of Euro IV fuel can be ensured across the country prior to the implementation of the emission norms. This is important as there is a drastic change in the emission requirements of the above
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two standards and vehicles designed for Bharat Stage IV will find it difficult to run on fuel suitable for BS III norms. The Ministry of Petroleum and Natural Gas has indicated that as per the roadmap provided in the Auto Fuel Policy, progressive fuel upgradation to Euro-IV equivalent and Bharat Stage-III are being planned from April, 2010 onwards, to be implemented based on the source-apportionment studies currently under way. The present Auto Fuel Policy gives a road map till Euro IV stage and 2010, It is felt that the Auto Fuel Policy beyond 2010 be also drawn now. 2. Affordability Taxation and related Issues The industry feels an immediate need to bring down total tax to reduce cost of ownership; to make input prices more competitive; to incentivise innovation for low cost products that are aimed at consumers at the lower income end and to eliminate the incidence of embedded taxes/duties Internal taxes Currently the taxes are levied at the city level (octroi), state level (sales tax, registration) and the central level (excise). Depending on the location of manufacturing and the suppliers, these taxes total to a substantive figure, even though excise duty on vehicles have reduced from a high of 66% in the early 90s to 25% and 16% now. This provides an idea of the amount of tax element today in a vehicle. It shows that tax amounts to 36-40% of the cost of a vehicle on an average. Cases where octroi is levied would increase it to 40-45%. Clearly this is a very large figure and hampers the growth of the industry. 3. Accessibility Procedural delays, Transportation and Infrastructural bottlenecks Rationalisation of documentation for interstate and inter-city movement of vehicles and goods; Creation of simple, comprehensive and non-overlapping system of procedures and regulations would improve the efficiency and productivity of the transportation sector and thus also create demand for automobiles. Regulations: One of the reasons that is used to explain our countrys poor FDI performance is the high degree of administrative procedures and clearances. It is not the clearances themselves which are the issue, but the time and effort taken to get them. Of course some of the clearances overlap and are now outdated. There is a need to streamline its regulations to do away with unnecessary regulations and combine and merge others to simplify them. Internal trade barriers movement restrictions, octroi, checking, etc: Even though we are a single country, there are a lot of restrictions on inter-city or inter state movement of goods. Apart from the cost of octroi there is another element of cost that is incurred due to the long queue at check posts which delay shipments and increase logistics costs. The same is the case when goods cross state borders.

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Infrastructure Bottlenecks: Continued investment in infrastructure is essential. Infrastructure should keep pace with growth in the trade. The delays in road and rail network need to be immediately arrested. Power and fuel account for about 6% of manufacturing cost and power cost in India is quite high. Similarly capacity addition in roads has lagged behind traffic growth. Last mile road connectivity is a major bottleneck and needs to be addressed on priority at all ports, especially for, Chennai, Mumbai and JNPT. 4. Emission Norms As is the trend worldwide, Indian automobile industry too is shaped by environmental and safety imperatives. Indian safety standards for auto components have been in existence since the late 1960s and were based on EEC/ISODIN/BSAU prevalent at that time. The Central Motor Vehicle Rules came into existence in 1989 whereby serious enforcement of regulations came into force. Post 2000 which has marked the start of the Safety decade, Indian regulations have been based on ECE and since 2000 concerted efforts are underway to technically align standards with ECE. However, there is a need for long term roadmap, which is consistent with local requirement. It is felt that the industry should attain complete harmonization of emission and safety norms as per the ECE regulations by 2015. Accidents Safety Safety both vehicle safety and pedestrian safety are becoming an issue. Every year hundreds of thousand people die on account of road accidents and many more get seriously injured and permanently disabled. The social and economic implications of such safety issues can no longer be ignored and there is an urgent need to initiate specific measures to look into this aspect. National Road Safety Board - There is a need for an Organisation to act as a lead agency for road safety both at the national and state level. Computerization of RTOs The current registration process needs to be computerized in order to tackle safety related issues along with increasing traffic. It would enable recall of exact and all vehicles by the manufactures in an event of product problem especially pertaining to safety of the vehicle owners as well and other road users. The computerization should be extended to the licencing process also.

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5. Assets Human and capital Human The most critical enabler for the huge growth envisaged for the Indian Automobile Industry shall be adequate availability of trained manpower. Based on the current pattern of employment it is estimated that automotive industry would require huge numbers of trained personnel to work at various levels. It is pertinent to mention here that only specialized and industry specific inputs can improve the competitiveness of the industry. So, it is felt that a National Level, Automotive Institute should be created to meet the requirement of education and training, market analysis and projections and for formulating and supervising the running of various courses in automotive sector through ITIs and ATIs. This has been the felt need of the industry identified by Investment Commission as well. Capital The decline in interest rate gave an impetus to the growth of the automotive industry, the current rising trend is a cause of concern for the industry. It is likely to dampen the demand and push up the cost of manufacturers. 6. Agreements FTAs/RTAs and WTO issues The automotive industry promises significant Investment and employment opportunities. But that would happen only if theres some restraint on the level of import from the competitors. Unrestricted Import of Vehicles/Components will have adverse impact on GDP and employment. India is negotiating FTAs/PTAs with several countries. While Industry is positive about SAFTA and PTAs like Chile, GCC, etc, and wants market access in neighbouring countries, it has serious reservations on FTAs with Thailand, BIMSTEC, ASEAN, China, Korea etc.

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Indian Automotive Industry-vision- Terms of Reference(TOR)- 4

A National Vision/Mission for the Indian Automotive Industry and evolve specific strategies to achieve the National Vision/Mission. Vision It is envisaged that by 2012, the opportunity landscape for the Indian auto industry would encompass manufacture of vehicles and components for domestic sales, manufacture for exports (both vehicles and components) and export of services in areas such as design, engineering, and back office operations. It is estimated that the total turnover of the automotive industry in India would be of the order of US$ 75.3 billion in 2012 (a substantial increase from the size of US$ 34 billion in 2005-06). In real terms, India would continue to enjoy its eminent position of being the largest tractor and three wheeler manufacturer in the world and the worlds second largest two wheeler manufacturer. By 2012, India would emerge as the worlds eighth/ninth largest car producer (as compared to the eleventh largest currently) and retain 4th largest position in world truck manufacturing sector. Further, by the end of decade, the automotive sector is likely to double its contribution to the countrys GDP from current levels of 5% to 10%. Attaining vision would call for an incremental investment of the order of US$ 20-25 billion to come into India over the next plan period. Bulk of this investment anticipated, will come from expansion of capacities by existing manufacturers operating in India, Joint Venture between existing manufacturers with other global OEMs for new product and remaining from global multinational corporations (MNCs) seeking to make India their manufacturing base. Competition for attracting investments in India would come from countries such as China and Thailand. Currently automotive industry employs 200,000 persons in vehicle manufacturing, 250,000 in component companies and 10 million at different levels of value chain both through backward and forward linkages. The expected growth in the investments and output of Indias automotive sector during the next 5 years will create further employment opportunities in the country. Additional 15 million jobs are likely to be created by way of both direct and indirect employment in automotive companies and in other parts of the vehicle value chain such as servicing, repairs, sales and distribution chains. The future challenges for the Indian automobile industry in achieving the National Vision would primarily consist of developing a supply base in terms of technical and human capabilities, achieving economies of scale and lowering manufacturing costs, overcoming infrastructural bottlenecks, stimulating domestic demand and exploiting export and international business opportunities.

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R&D and Technology Development- Terms of Reference(TOR)-5

Actionable recommendations to encourage technology development including R&D, Design Engineering, Quality, Skill Building and linkages with frontier technology institutions in the country and abroad by the automotive industry with special emphasis on the auto component sector. Research & Development and Creation of Intellectual Property Rights The only WTO compatible area where the Government can provide non-actionable subsidies is in the area of R&D. Today, the bulk of the Intellectual Property in the automotive industry rests with the trio of USA, Europe and Japan. India can aspire to become a major automotive power only if Indian companies can create their own IPR in the automotive industry through Design and R&D. The targeting of fiscal incentives for promoting R&D is being looked after by the Mashelkar Committee.

Investment Plan - Terms of Reference (TOR)- 6

The year wise investment required to be made in the public/private sectors during the period 2007-12, keeping in view funds required for up gradation of technologies for achieving international competitiveness, in-house R&D and new products required for meeting the demand-supply gap in the long run. The Automotive Industry offers huge growth potential in terms of sales volume (including exports) and also immense employment opportunities. The employment opportunities would be in production for both skilled and unskilled labourers. This would happen only if the sector gets adequate attention in terms of investment. It is estimated that the automotive sector requires an incremental investment of Rs 11,000 -12,000 crores per annum to realise its full growth potential. Out of this the automobile sector requires an incremental investment of Rs 9,000-10,000 crores and the auto component sector requires Rs 2000 crore.

Efforts for SMEs - Terms of Reference (TOR)- 7

Provide special emphasis to the development of SMEs in the auto component sector to enable them to emerge as globally competitive business entities. The component industry is undergoing a major structural change and is now becoming a Tiered Industry. The Tier 1 is the complete system supplier, followed by the lower Tier companies that supply sub-systems and single parts. The industry has a very large number of SMEs. In order to promote the development of SMEs, it is crucial to effectively integrate them into the supply chain as Tier 2 and 3 suppliers. Some of the specific measures suggested are as follows: the cascading impact of the taxes need to be removed in order to make these units
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competitive. Most segments in the automotive industry are highly capital intensive and promises new employment opportunities. Since most auto-component manufacturing companies are SMEs, it is imperative to create a Modernisation and technology upgradation fund to facilitate develoment of world-class, state-oftheart production facilities. The funds could be provided by the Government. The finance could be made available through Commercial Banks at interest rates of Libor +1 or Libor +1.5 (about 5% maximum). Priority Sector lending could be extended to the auto component sector. R&D equipment and equipment required by the auto-component industry for firsttime development of new items e.g. tooling, dies, software etc could be Customs Duty exempted.

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VISION

Though Henry Ford was responsible for revolutionary advances in manufacturing it is not as often noted that the Ford Motor Company was an unusual leader in the establishment of American big business because of the firm's tightly-controlled and (by general big-business standards) under-capitalized nature. Ford's decision to adapt the assembly line notion to his own product met with enormous success and he was able to outstrip all his competitors very rapidly. The center of Ford's vision, however, was not the use of the assembly line but the idea that cars could belong to anyone and that he could produce and sell a practical, affordable vehicle in mass quantities. The combination of Ford's inventiveness and practicality with his own stubbornness and the skill of his colleagues made the company into a big business that did not, at first, fit the mold. The Ford company is a case study in the practicalities of manufacturing that, when combined with the opportunity to create a major new industry, made it possible to proceed in a different manner than many of the big businesses that emerged in the early part of the century. Henry Ford (1863-1947) was a trained machinist who was fascinated by the new horseless carriages. He began to experiment with car building in the early 1890s and by 1896 he had built his first car. It was only the sixth gasoline-powered automobile to be built in America. Over the next six years Ford tried repeatedly to get his car into production. In which he would be able to put his own ideas to work. The Ford Motor Company was incorporated in 1903 "with an authorized capitalization of $150,000, all common stock, of which $100,000 was issued." Malcolmson guaranteed production financing up to $3,000, which was an important incentive to other investors. There were ten other subscribers, most associated with Malcolmson. The Dodge brothers, John and Horace, paid their $5,000 subscriptions with promissory notes that were later paid off by the profits from Ford business obtained by their machine shop. James Couzens paid $1,000 in cash and signed a promissory note for $1,500. In all, the new company received only $28,000 in cash and, "according to a Ford publication issued in September, 1920, this was all the cash ever paid in on its capital stock." At the beginning the new company proceeded as all car makers did. Foundries produced the castings which were then tooled into individual parts. The parts were then assembled into components (such as magnetos) and finally there was "the assembly of thousands of parts and components into the motor vehicle." The production of parts and components was a capital-intensive undertaking and demand for luxury cars tended to suffer.

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MISSION

Ford Motor Company is a worldwide leader in automotive and automotive-related products and services as well as in newer industries such as aerospace, communications and financial services. Our mission is to improve continually our products and services to meet our customers needs, allowing us to prosper as a business and to provide a reasonable return for our stockholders, the owners of our business. The missions can be listed as following:

Products: Our products are the end result of our efforts, and they should be the best in serving our customers worldwide. As our products are viewed, so are we viewed.

Profits: Profits are the ultimate measure of how efficiently we provide customers with the best products for their needs. Profits are required to survive and grow.

Customers are the focus of everything we do. Our work must be done with our customers in mind, providing better products and services than our competition.

Continuous improvement is essential to our success. We must strive for excellence in everything we do: in our products, in their safety and value, and in our services, our human relations, our competitiveness and our profitability.

Employee involvement is our way of life. We are a team. We must treat each other with trust and respect.

Dealers and suppliers are our partners. The Company must maintain mutually beneficial relationships with dealers, suppliers and our other business associates.

Integrity is never compromised. The conduct of our Company worldwide must be pursued in a manner that is socially responsible and commands respect for its integrity and for its positive contributions to society. Our doors are open to men and women alike without discrimination and without regard to ethnic origin or personal beliefs.

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ABOUT THE COMPANY Theme lines:

Bold moves Have you Driven Ford Today? Built Ford Tough Built for Life (in Canada) Feel the difference Make Everyday Exciting Website www.ford.com COMPANY PROFILE

Ford Motor Company

Type Public (NYSE: F) Founded June 17, 1903 Founder Henry Ford Headquarters Dearborn, Michigan, USA Area served worldwide Key people William Clay Ford, Jr - Executive Chairman Alan Mulally - President, CEO Industry Automotive Products Automotive goods and services Revenue US$120.1 billion (2006)

Operating income in us is 8.3 billion ( 31 Dec 2009)W Net income US 12.6 billion (31 Dec 2009)W Employees 283,000 (2007)121 Ford Credit Ford division Divisions Lincoln Mercury Premier Automotive Group Automotive Components Holdings Jaguar Subsidiaries Land Rover Volvo (cars only)

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Introduction Ford Motor Company

It is an American multinational corporation_and the worlds third largest automaker based on worldwide vehicle sales. In 2006, Ford was the second-ranked automaker in the US with a 17.5% market share, behind General Motors (24.6%) but ahead of Toyota (15.4%) and DaimlerChrvsler (14.4%). Ford was also the seventh-ranked American-based company in the 2007 Fortune 500 list, based on global revenues of $160.1 billion. In 2006, Ford produced about 6.6 million automobiles, and employed about 280,000 employees at about 100 plants and facilities worldwide. In 2007, Ford had more quality awards from J.D Power than any other automaker. Based in Dearborn, Michigan, a suburb of Detroit the automaker was founded by Henry Ford and incorporated in Time 16, 1903. Ford now encompasses many global brands, including Lincoln and Mercury of the US, Jaguar and Land Rover of the ll K. and Volvo of Sweden. Ford also owns a one-third controlling interest in Mazda. Ford has been one of the worlds ten largest corporations by revenue and in 1999 ranked as one of the worlds most profitable corporations, and the number two automaker worldwide. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce, especially elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Fords combination of highly efficient factories, highly paid workers, and low prices revolutionized manufacturing and came to be known around the world as Fordism by 1914.

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History Henry Ford (ca. 1919)

Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John Francis Dodge and Horace Elgin Dodge who would later found the Dodge Brothers Motor Vehicle Company. During its early years, the company produced just a few Model Ts a day at its factory on Mack Avenue in Detroit. Michigan Groups of two or three men worked on each car from components made to order by other companies. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 100 years.

Corporate governance: Members of the board as of early 2007 are: Chief Sir John Bond, Richard Manoogian, Stephen Butler. Ellen Marram. Kimberly Casiano. Alan Mulally (President and CEO), Edsel Ford II. Homer Neal. William Clay Ford. Jr. Jorma Ollila. Irvine Hockaday. Jr., John L. Thomton.an William Clay Ford (Director Emeritus). The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG) and Ford of Europe), Mark Fields (Executive Vice President, President (The Americans), Donat Leclair (Executive Vice President and CFO). Mark A. Schulz (Executive Vice President, President [International Operations) and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Pau1Magcaflagi (Americas Product Development) Ford started its innings with the Mahindra-Ford joint venture formed in 1994, which produced the Escort out of M&M Nashik plant. After meeting initial success, sales of the Escort was finally replaced by the Ikon in 1999. The Icon marked a new beginning for Ford in India. It rolled out of the Marajmalaingar plant near Chennai and by now, the company had parted ways with M&M and was renamed Ford India Ltd in 1998. The Thon was the first model by a multinational to be developed specifically for India. Though it was based on the Fiesta, it had a unique body style and was offered and was offered with an option of three engines, including a diesel. The car was a big hit. The Ikon underwent several face-lifts and price cuts to keep demand high. However, fresher competition and a reputation for high-maintenance saw sales gradually decline. After the arrival of the modem and highly-capable Fiesta, another made- for-India car, with stateof-the-art engines, the Ikon has been marginalized. The Fiesta has picked up where the Ikon
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left and is selling well. Though the Ikon and Fiesta have been the mainstays of Fords production in India, the company has had limited success with other models. The Mondeo, launched in 2001, was a very talented car by was simply not suited to Indian conditions and earned a reputation for being exorbitant to maintain. The Endeavour SUV was launched in early 2004 and has sold well for its niche. The Endeavour has recently been upgraded in 2007 and this has boosted the appeal of the big SUV. In 2004, Ford launched the Fusion, which has received a lukewarm response though the recent diesel variant has perked up sales. Is an authorized dealer for Ford India Limited, who are one of the leading manufacturers of top quality cars in India, with many variants in the offering. Fortune Ford is a 50:50% Joint Venture - up between two well known and - reputed families in India Hyderabad, the Mantis and the Babu Khans. Fortune Ford is a blend of experience and youth. The experience and good will that Mr. Misbahuddin Babu Khan and Mr. Pramod Modi enjoy blend very well with the youth and energy of the youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world class Ford Dealership. Fortune Ford markets and services the recently launched truly European Ford Fiesta, the ever-popular Ford I/con Flair, the No non-sense car Ford Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales outlet is located strategically at Somajiguda next to Eanadu. We have two service centers, one at Chapel Road, Abids opposite Stanley College and other one at Fathebagh, Santhnagar. These centrally located outlets provide convenient and easy access to both the proud owners as well as prospective buyers. The workforce at Fortune Ford is committed to excellence in serving all esteemed customers. The Sales Team is made up of dedicated showroom and field executives who are professionally trained by Ford India Limited. They are adept at guiding the customer through the entire sales process right from assisting in the choice of model, colour and features to lending a helping hand in providing attractive buyback options and also arranging finance at competitive rates.

V1.

The Service Centre is armed with the state-of the art equipment and is in-line with Fords exacting Global standards. The service team is technically qualified and trained to analyze and provide solutions adhering to Quality Care, in order to satisfy even the most demanding customers.
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The Fortune Ford dealership maintains a high standard of excellence in sales and services by sending its personnel for training on a regular basis to Ford India Limited, to update them with the latest technological advances in the automotive sphere.

SHOWROOM
We have 5000 sft centrally air conditioned showroom, located in the heart of the city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes convenient for almost every one residing in and around Hyderabad and Secunderabad.

The facilities offered from the showroom are:

1. Very easy finance facility with in-house finance team to cater to your every car finance requirements. All the leading finance counters are available like ICICI, HDFC, KOTAK, SUNDARAM, SBI, etc. 2. Exchange offer for any of your used car. Free spot evaluation for any used car. 3. Professionally trained and courteous sales staff to take care of every relevant need of the customers. 4. Ford preferred insurance for cashless transactions in the event of claims. Special offers on Insurance renewals. You can also renew your insurance by just making call to our Service marketing help line 9848885962. Showroom @ Somajiguda 5. Full range of Ford cars with all colors and models to choose from. 6. A good stock of Ford genuine accessories to make your Ford ownership more delightful and safe. 7. A well maintained fleet of test drive cars to give you the feel and experience the drive dynamics on actual driving conditions before take the purchase decisions. You can call our sales help line for test drive or fill the on-line test drive requisition form. The first Indian built Ford Escort rolled off the assembly line in 1996. The Company was able to deliver Ford Escorts in seven major cities simultaneously, in just a month after booking. The Special Value Pack program was launched in 1997, with commemorative Freedom, followed by the petrol and diesel driven Anniversary. Recent SVPs have included the Orion, Alpha and Sport - E. Ford Escort won the J D Power Award in India Quality Survey in 1997. Ford topped the Customer Satisfaction Index (CSI) ratings in 1997 and 1998, in the Customer Satisfaction Survey. QualityCare, Fords branded service initiative, provides car owners with superior services at its dealership countrywide. The new, integrated manufacturing plant was dedicated in March 1999, where FORD IKON is manufactured. Ford India launched Ford Assured on April 24 2000, a new initiative to buy and sell used

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cars of all makes.

On September 11, 2000. Ford India launched the Ford IKON SXi the stylish josh machine Ford India has started exporting Ford IKON 2001 Ford India launched the Ford Mondeo. 2002 Ford India show cases a wide spectrum of exciting cars at the Auto Expo Ford India Limited announced a strategic partnership with Hindustan Motors Limited (HML). Certified QS 9000: 1998, 3iIL edition on March 21, 2002 Ford India received the QS 9000 award from TOy Sddeutschland. New Ikon Variant 1.6 EXi was launched . 2003: The New Ford Ikon NXT launched - The Next Level of Josh. Adding Refinement to Josh- Ford India launches Ikon NXT Finesse. Ford Celebrates Centennial in India. Ford India launches Ikon NXT SXi. Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study. Ford launches Ikon Flair at Rs. 4.95 Lakhs. 2004: Autocar SUV of the Year Winner Ford Endeavour. 2007: FORD Motor Company of Southern Africa achieves three wins and two seconds on this year total economy run. DOE AWARDS FORD two grants for vehicle fuel efficiency research. FORD MONDEO is AUTO EXPRESS car of the year LAND ROVER DISCOVERY 3 scoops catego1 win at TOWCAR AWARDS 2007 FORD MONDEO is the Caravan Club TOWCAR of the year 2008.

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ARVIND MATHEW Managing Director and President

Arvind Mathew is the Managing Director and President of Ford India. He took this position in August 2005.

LUCY MILLAR Vice President, Finance & IT

Lucy is the Vice President of Finance and IT at Ford India. She took up this position in May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India.

SCOTT McCORMACK Vice President, Marketing, Sales & Service

Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He took this position in July 2006. Scott reports to Arvind Mathew, President and Managing Director, Ford India.

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NANCY REISIG Vice President, Human Resources

Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford India.

SANDIP SANYAL Vice President, Supply and Total

Value Management Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford India. He took this position in September 2005. Sandip reports to Arvind Mathew, President and Managing Director, Ford India.

STEVE BRIVLAN -- Country Manager, Ford Credit

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Executive Summary of Ford

Ford Motor Company is currently trying to increase its global market share in automobile sales while facing slumping market share numbers in the United States. This report examines the Ford company characteristics and how the company uses information systems in the business climate. Ford believes that having solid relationships with their employees, dealers, suppliers, and stakeholders allows them to have an advantage over their competitors. Healthy professional relationships are helpful to a companys success but being able to attract customers to your products will increase sales. Ford has recently introduced new vehicle architecture to try and attract new buyers. The largest innovation for Ford has been the introduction of their Hybrid cars. Ford reported an October sales drop of 23.5 percent as compared to a year ago. The new measures Ford is taking with their automobile design are expected to help those numbers reverse in the future. Ford sales have also under performed in the global markets although the company is taking steps to increase sales while reducing costs. Ford has recently entered new markets, most of which are located in the Asian-Pacific region. To reduce costs and increase knowledge of a region Ford uses small ERP systems that are less expensive and faster to implement than the larger ERP systems. Failure to obtain a larger market share in foreign markets has hurt the company. Ford got a late start entering the automobile market in China, compared to competitors, and now controls less than one percent of the market share. To add to the situation the Chinese government has high taxes on automobiles that can increase the price up to 100 percent or more. The future of Ford is headed towards a reported implementation of SAP throughout its North America organization. The proper use of information systems by Ford will increase their ability to maintain a successful business in future years locally and globally. The Ford Motor Company is an ever-changing business that tries to stay ahead of its competitors in America and at the global level. Fords mission is to build great products, strong business and a better world. To accomplish that mission the Ford Company believes that not just quality and cost awareness are the only things that matter, but also a solid relationship with their employees, dealers, suppliers, and every Ford stakeholder (Ford motor company, 2004). With these ideals Ford is proud to be a company with family-based values that allows Ford to have a competitive advantage over its competitors. With this competitive advantage Ford believes that everything they do affects the people they serve from quality and safety of their products to the social and environmental impact on their customers every day lives. The strategy for Ford will be to continue to deliver exciting new products, improve quality and customer satisfaction, improve market share and revenue in all regions, and improve results at all automotive operations. To accomplish this strategy Ford has put pressure on senior leaders to develop a true family culture. To do that the Ford company will have to cultivate a workplace that: attracts and retains the best people, allow them to work at full potential, encourage continuous development and mutual benefit, and promote teamwork while embracing differences and diversity.

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The keys to Fords strength are the products. There were forty new products in one year, because of their new realigned vehicle architecture. This allows Ford to produce a greater variety of attractive and competitive vehicles with more shared components and less complexity (Ford motor company, 2004). But the biggest innovation for Ford is the hybrid. Ford can take advantage of this because they have their own patented hybrid technology and proprietary drive system and electronic controls. Many competitors have not even considered hybrids and when they do Ford will already be a step ahead of them. Currently, Ford offers the Escape Hybrid which has seventy-five percent better fuel economies, especially in the city. Plus, the Escape Hybrid can do anything the regular Escape can do and has the same features. In the next three years Ford plans on releasing four more hybrids. Ford also has a service for their customers, the Ford Motor Credit Company, which offers many competitive ways for their customers to own Ford vehicles. Its the only product that does not have wheels and its the finishing piece to Fords core businesses. (Ford motor company, 2004) Ford North America holds half of Fords volume worldwide, but their market share was down from 20.5% in 2003 to 19.3% in 2004. Ford is committed in the year 2005 to raise the market share in Europe, South America, and Asia. To do this Ford must still be focused on America and Europe, and start to set up markets in other countries like China that are just starting to make an impact on the world market. Right now North America and Europe account for two-thirds of todays market, but by 2014 it will only account for half of the world markets (Ford motor company, 2004). Ford has made gains in other areas as well; net income where Ford had an improvement of $2.992 billion from 2003, total sales and revenue were up $7.3 billion from 2003, also worldwide vehicle unit sales and European market share were up from 2003 (Ford motor company, 2004). Technology and information systems are very important to the Ford Company. Because of Fords global scale, information needs to be timely so managers can make important decisions. With the addition of technology, Ford can make better products at a cheaper price; meanwhile it makes the infrastructure of Ford that much more complicated. Ford tries to introduce new technologies so that environmental and safety features can be added to vehicles before law requires them. One way technology and information systems are helping Ford is in the manufacturing of the vehicles. In established markets such as Europe, North America and Japan, Ford has plants with flexible manufacturing, that allows Ford to produce a number of different vehicles in a single location. It enables Ford to add a vehicle line or change over to a new model by reprogramming, rather than retooling, the vast machinery involved (Ford motor company, 2004). Ford continues to be a leader in automotive technology and information systems, and will continue to forge ahead to create better quality products. As the Worlds second largest vehicle maker and the Worlds largest truck producer Ford Motor Company must be able to maintain global market share while keeping the global company connected through company intranets and extranets. Ford Motor Company recently

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reported a drop in automobile sales of 23 percent. If Ford is going to turn in better numbers in car sales it will have to be an increase in sales not only in America but globally. While operating a business over multiple continents, in multiple languages, and across multiple time zones Ford is trying to keep the company focused on delivering greater value to its customers. To keep the organization and its employees connected over large distances Ford is using a system called eRoom. This technology allows Ford teams to work collaboratively over the Web to connect resources and people. The result of Ford using this system has lead to cost savings in the following areas: time savings, reduced IT costs, and reduced co-location costs. Time is saved using eRoom through increased data sharing and the ability to access documents faster. Replacing many Ford departmental websites with eRoom will reduce IT costs by doing away with IT overhead associated with building and maintaining those websites. Reduced co-location costs will be made through reduced travel costs, video-conferencing costs, and reduced information transmission costs. These reduced costs and the increase in information accessibility are the result of one of the key ways Ford is continuing to compete globally. Ford is also implementing smaller ERP systems in regions where they have just recently entered the market. Ford Chinas IT infrastructure is based on a small ERP from QAD Inc. called Mfg/Pro. This ERP is Fords standard program for all new markets. Extensions to the standard ERP software make it possible for Ford to comply with foreign practices and government mandated financial statements. Each time a system is deployed in a new market the company gains valuable experience and knowledge that helps the company in future deployments in other new markets. The implementation of a smaller ERP results in quick installation, lower costs than a large ERP, and quick knowledge into the new market. This small ERP system is another factor for Fords global success. No matter what measures any company that competes globally uses to increase its competitiveness there are also factors that present problems. A couple such factors lie in the Asian market that is expected to have an increase in the global automobile market share. Problems with Ford entering this market share include Chinas recently flat market for automobiles, a focus on the development in housing instead of roads, and government vehicle taxes. The vehicle taxes are so high that they can raise the price of an automobile 100% or more. Any shift in priorities or lift of government constraint is labeled as an educated guess. Although Ford is now competing in the Chinese market their late start, compared to other competitors already in the market, has left the company with less one percent of the market share. The recent drop in sales of 23 percent reported in October of 2005 as compared to a year ago is, in part, a result of increased gasoline prices. The price increase has pushed new car buyers towards buying more fuel-efficient cars. November sales are expected to drop as much as 15 percent which would imply that more recent drops in fuel prices have apparently failed to turn around Fords sales numbers. On the other side of the equation the reducing market share for Ford has been offset by an increase of U.S. market share by Toyota. The

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future of Ford Motor Companys success strongly relies on the company increasing market share globally while keeping their sales consistent in the U.S. There are many determining factors when it comes to running a successful company. Those factors are production, management, office, and sales/marketing. You need efficient information and knowledge to keep these elements of the company running smoothly. It is very important to have departments that concentrate heavily on a daily basis to improving the output to lead to better production and marketing strategies. Sales marketing is all about how you present your product and will it reach the public with a positive influence. This is the key to keeping your company running and continuing to excel and compete against others. You need knowledge and information about what the people want to get your product out there so it will be known. People need to be aware of the product so they have an urgency to buy it. Information is power and is the key to running the best possible company that you can run. With loads of information gives you an edge on the competition. Production, management, office, and sales marketing go hand in hand you need specific and current information to keep these departments running smoothly. Knowledge is the key with the right information you can keep all of your departments on the right path.

Ford Product
Ford has provides a wide range of cars in the Indian Markets, it has targeted the Indian Markets with purchasing power approx 4.75 lakhs.

Considering the Indian Market type where

The consumers can be sub - divided in various categories depending on their income brackets starting from Rs.1 lakhs to any amount but the consumer are mainly concentrated in the 2.75 to 20 lakhs bracket which has been paid a serious amount of attention by the Ford Marketing team thus, focusing on the consumers desired wants and related product in the Indian Market scenario.

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STP Segmentation, Targeting, Positioning

Segmentation
The main reason why we have Segmentation is because we have so many types of customers. The reason why Segmentation has become important in teaching and learning about marketing is because these groups of different customers have:

1. Become more numerous, we have many more types of segments 2. The differences among groups have become more distinct 3.The groups have become large in number

Criteria for Segmentation

- things you have to think about in order to decide if a potential group is worthwhile being considered a "segment"

1. Homogenous
- are the people in the proposed segment all similar without too many differences - you could say right handed people is a segment, but.... if half the right handed people were women, and half were men, then this might not work if the gender also was an issue.

2. Heterogeneous
- the people between the segments should be very different - right handed and left handed might not be worthwhile if you are talking about a market segment for a product like pull-on boots

3. Substantial
- the people in the segment should be large enough in number to be worthwhile - right handed men might be a large enough segment - right handed men, who wear glasses, and speak Spanish and right motorcycles might be too small - the group has to be large enough to "generate sufficient sales volume at a low enough cost to result in a profit " says Sommers 10th Ed.

4. Competition
Sommers 10th Ed. suggests that a company should target segments "where the number of competitors and their size are such that the firm is able to compete effectively" example - some people buy trucks, some SUVs and some cars and some mini-vans - some companies have a product segment devoted to truck buyers, like Ford - car companies, like Nissan and Toyota might be advised to avoid selling trucks in North America because the competition is intense and they might not make a profit.

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5. Resources
Sommers 10th Ed. suggests that a company should make sure the segment relates to the resources of the company. If the company can mfg. variations to fit its key demographics, great, but it should not take on additional demographics if it does not have the capability example - a lingerie company taking on plus sizes - which would mean reconfiguring the fabric pattern cutout which would effect fabric cost, waste amounts, etc.

Targeting

Ford Motor Company President and CEO Alan Mulally revealed the much-anticipated new car to be produced in India. Called the new Ford Figo, the car was unveiled at a press event in Delhi as a major addition to the Ford India brand portfolio. Mulallys visit underscores the strategic importance of India in Fords future plans. He stated the new Ford Figo is designed and engineered to compete in the heart of the domestic India car market. The new Ford Figo will be manufactured at Fords expanded integrated manufacturing facility near Chennai, which is undergoing a $500 million transformation to become a regional centre of excellence for Ford small car production. The importance of Ford Figo extends beyond Indias borders. Fords investment in its Chennai plant gears it for eco-friendly volume production and positions Ford India to become a major export producer.

DELHI, India, Sept. 23, 2009 Indias role as an important player in the future of Ford Motor Companys international strategy was underscored today when the companys President and CEO, Alan Mulally, unveiled an all-new car targeting the heart of the Indian car market the new Ford Figo. The Ford Figo, a new nameplate and a fresh face on the Indian market, signals Fords intention to compete in Indias largest and most important small car market segment. Ford Figo is the result of a significant Ford investment commitment to expand its plant near Chennai for volume production as a small-car centre of excellence regionally. Fords $500 million investment has doubled the plants production capacity to 200,000 units per year and introduces major advances in high-quality automation and innovative, eco-friendly production techniques. Our exciting new Ford Figo shows how serious we are about India, Mulally said. It reflects our commitment to compete with great products in all segments of this car market. We are confident the Ford Figo will be a product that Indian consumers really want and value. Ford Figo is designed and engineered to compete in Indias small car segment, which accounts for more than 70 percent of the new vehicle market. It leverages Fords small-car platform architecture, sharing underlying technology with the Ford Fiesta, already familiar to Indian drivers.

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Positioning
Ford unveiled its 2010 product lineup, which includes the return of the Taurus sedan, a restyled Ford Flex crossover with its patented EcoBoost engine, a high-performance version of its popular F-150 pickup truck, and restyled Lincoln MKS and MKT vehicles. On his blog, www.autoextremist.com, Detroit-based automotive industry analyst Peter DeLorenzo wrote about Fords unveiling of its product mix to a group of automotive journalists. It became quickly apparent to everyone that this company is more than just on the move, they are aggressively boosting their presence in the market with an array of impressive products that will transform the company, DeLorenzo wrote. Over the next 18 months, Ford will have the freshest, most contemporary lineup in the business and the newest fleet of vehicles in terms of age on the road. That product lineup is going to pay off big-time for Ford, DeLorenzo wrote. They also have scaled back manufacturing operations to align supply with demand and have taken steps to create a global manufacturing platform that will allow the company to use common technology and suppliers for vehicle offerings worldwide. Ford reported that it had a profit of $2.3 billion in the second quarter, compared with a loss of $8.7 billion a year earlier. Revenue for the period declined 40 percent, to $27.2 billion from $41.1 billion a year earlier. Ford and its competitors must aim at a moving target in trying to figure out what will sell. Consumer demands shift continuously, depending on the state of the economy and changes in fuel prices. The days of selling 400,000 or 500,000 units of any vehicle, except maybe the F-150, are over, Hinrichs said. Now we need to figure out how to make the same money selling lower volumes. The best way to do that is to go after a number of smaller niches. Fords in a pretty good position, both from a product standpoint and a reputation standpoint,

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SWOT ANALYSIS Strengths

-4th on the Fortune 500 List (U.S. only) -4th on the Global 500 List -39th on the Best Companies for Minorities List -One of worlds best known brands -Their Web strategy has cut car build costs by as much as $380 per car -Have already invested heavily in alternate fuel sources -Ford are seen as supportive eg Gave Generously after the September 11 Attacks. Give Generously to Help Fight Breast Cancer. Support Racing Teams, NASCAR, Formula One Etc.

Weaknesses
-Firestone Tire recalls caused Stock Price to Suffer--$14.70, Lowest In Years -CEO Jacques Nasser and Chairman Bill Ford Jr. could not get along Leading to Bill Ford taking over as CEO -Cash Reserves Have Sunk to $4.1 Billion -$13 Billion on Acquisitions -$3.5 Billion to Cover Tire Recalls -Sometimes seen as "safe", "boring"

Opportunities
-Have a chance to become more environmentally friendly with cleaner engine emissions and by working with environmental groups to help clean the environment -Ford have already started investing in Solar Power ,and have a chance to become a market leader -They can use their Web strategy to cut costs further -They can take advantage of their perceived generosity by giving to more charities and using the fact in their targeted advertising.

Threats
-Competition is huge. -Internal strife will hurt the company. -Threat of substitute products such as Natural gas, Electricity, Ethanol, Vegetable oil, Sunlight, Water -Intensity of Rivalry among competitors worldwide -Worldwide markets threatened due to the "War on Terrorism"
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MARKETING STRATEGY OF FORD

A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organizations overall corporate strategy and serves as a guide for specific marketing programs and policies. Marketing strategy is based on a situation analysis- a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. From this situation analysis, a firm develops an understanding of the market and the various opportunities it oilers, the competition and the market segments or target markets the company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objectives of the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them. For example, if the marketing objectives of a business unit stipulate that next year, it should achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale and profit will come, which product lines/products/brands will accomplish this task and how. Marketing strategy forms an integral part of marketing planning. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a companys revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a companys overarching mission statement.

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PROCESS MARKETING AND PROMOTIONS MODEL:

Development of marketing program requires an in-depth analysis of the market. This analysis may make extensive use of market research as an input into the planning process.

Marketing Strategy and Target marketing Market planning analysis process program development target market

1.Identifying markets 2.Market segmentation 3. Target marketing 4. Positioning through marketing strategies 5. Pricing decisions 6.Distributi on promotion to final this input, in marketing model, provides the basis for the development of marketing strategies in regard to product, pricing, distribution and promotion decisions. Each of these steps requires a detailed analysis, since this plan serves as the road map to follow in achieving marketing goals. Once the detailed market analysis has been completed and marketing objectives have been established, each element in the market mix must contribute to a comprehensive integrated marketing program. Of course, the promotional program element must be combined with all other program elements in such a way as to achieve maximum impact. 7. Product Opportunity 8.Competitive analysis 9.Target marketing 10. Buyer 11. Ultimate consumer 12.Consumers Businesses 13. Channel 14. Promotional decisions 15.Advertising

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16.Direct marketing 17.Interactive marketing 18.Sales promotion 19.Public relations 20.Personal Purchase 21.Promotion to trade Resellers

Formulating the marketing strategy:

Basically, formulation of marketing strategy consists of three main tasks: 1. Selecting the target market, 2. Positioning the offer, 3. Assembling the marketing mix. This implies that the essence of the marketing strategy of a firm for a given product or brand can be grasped from the target market chosen, the way it is positioned and how the marketing mix is organized. The target market shows to whom the unit intends to sell the products; positioning and marketing mix together show how and using what uniqueness or distinction, the unit intends to sell. The three together constitute the marketing strategy platform of the given product.

SELECTING THE TARGET MARKET:

To say that target market selection is a part of marketing strategy development is just stating the obvious. It does not fully bring out the import of the inseparable linkage between the two. When the selection of the target market is over, an important part of the marketing strategy of the product is determined, defined and expressed. Marketing targeting simply means choosing ones target market. It needs to be clarified at the outset that market targeting is not synonymous with market segmentation. Segmentation is actually tee prelude to target market selection. One has to carry out several tasks besides segmentation before choosing the target market. Through segmentation, a firm divides the market into many segments. But all these segments need not form its target market. Target market signifies only those segments that it wants to adopt as its market. A selection is thus involved in it. Marketing segmentation is a process that throws up not one but several market segments.
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There may be segments that are sizeable and the ones that are not so sizeable. There may be segments assuring immediate profits and the ones that call for heavy investments in market development. There may also be segments that show great potential, but display tough barriers to entry. As such, the question, which segment/segments, the firm should select as its target market, assumes crucial importance.

STRATEGIC MARKET SEGMENTATION:

Market Segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action, which was said by Eric N Berkowitz, Roger A.Kerin, and William Redulius. The Segmentation process involves five distinct steps: Finding ways to group consumers according to their needs. Finding ways to group the marketing actions usually the products offered available to the organization. 1.Developing a market-product grid to relate the market segments to the firms products or actions. 2.Selecting the target segments toward which the firm directs its marketing actions. 3.Taking marketing actions to reach target segments. Markets can be segmented using several relevant bases. For example, demographic characteristics of consumers, such as age, sex, income/purchasing capacity, education level etc, form one base for segmentation. Geographic characteristics constitute another; and buying behavior of the consumers forms yet another base. The various types of segmentations are Geographic segmentation Demographic segmentation Psychographic segmentation Buyer behavior Benefits segmentation Volume of purchase segmentation

Positioning is a platform for the brand. It facilitates the brand to get through to the target consumers. It is defined as the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition. Positioning is the act of fixing the locus of the product offer in the minds of the target consumers. In positioning, the firm decides how and around what parameters, the product offer has to be placed before the target consumers. The significance of product positioning can be easily understood from David Ogilvys words: The results of your campaign depends less on how we write your advertising than on how your product is positioned.

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Definitions of product positioning:

Sengupta, in his book Brand Positioning says, The aim of product positioning is to create a perception for our brand in the prospects mind so that it stands apart from competing brands... we must cover that space in the consumers mind as if we had won a long-term lease. We must find a strong position in that mind and sit on it.... Michael Rothschild, in his book Marketing Communications From Fundamentals to Strategies says, Positioning refers to the place a brand occupies in the mind in relation to a given product class. This place was originally a product-related concept.... Concerning market structure. The concept now refers to the place that the brand holds in the consumers mind related to perceptions and preferences.

Developing a Positioning Strategy:

To create a position for a product or service, Trout and Ries suggest that managers ask them selves six basic questions. 1. What position, if any, do we already have in the prospects mind? 2. What position do we want to own? 3. What companies must be outgunned if we are to establish that position? 4. Do we have enough marketing money to occupy and hold the position? 5. Do we have the guts to stick with one consistent positioning strategy? 6. Does our creative approach match our positioning strategy?

PRODUCT POSITIONING AND BRAND POSITIONING:

It is essential to understand the relationship between products positioning and brand positioning. Though in discussions, the two terms are synonymously and interchangeable used, technically they are different. Product positioning denotes the specific product category/product class in which the given product is opting to compete. And brand positioning denotes the positioning of the brand viza viz the competing brands in the chosen product category. It is evident that for any product, before entering the market it has to sequentially carry out the two exercises, product positioning and brand positioning. In the first step, the product category where the new entrant should enter and compete, i.e. against what all products it has to compete, has to be decided. In this step, it is the broad function that the product is trying to serve that matters. This choice of product category will decide the nature of the competition the product is going to face. Once product category positioning is decided, the position for the new entrant against competing brands in the chosen product category has to be analyzed and fixed.

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ISSUES IN PRODUCT POSITIONING:

Where is the new offer going to compete? - Which product function/customer need is it trying to meet? -What other product categories serve this need? In other words, what are the substitute products that serve the same need? -Where is the real gap, where is such a new offer most welcome and wanted by the market? -What are companys competencies to fight here?

ISSUES IN BRAND POSITIONING:

In deciding the Brand positioning, the issues are: - Which are the competing brands in the chosen product category? What are the unique claims/strengths of the various brands? - What position do they enjoy in consumers evaluation and perception? What is the most favoured position...? And yet vacant? - Can the new brand claim the needed distinction and take the position and satisfy the need? The major dimension of marketing strategy relates to positioning of the offer. The firm has already selected the target market and decided its basic offer. Now, what is the conjunction between these two entities? How do they get connected? What is the interface? In other words. What is the locus the firm seeks among the customers in the chosen target market with its offering? How would the firm want the consumer to view and receive the offer? These are the issues the firm has to grapple with in positioning. And, while formulating the marketing mix too, the firm will agitate over these issues. The Product Differentiation and Positioning discusses the multifarious issues involved in the subject.

PRODUCT REPOSITIONING:

Products do undergo repositioning as they go along their life cycle. In some cases, even products that are fairing well are repositioned. This is done mainly to enlarge the reach of the product offer and to increase the sale of the product by appealing to a wider target market. The product is provided with some new features or it is associated with some new target segments.

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PROMOTIONAL DECISIONS:
Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. While implicit communication occurs through the various elements of the marketing mix, most of an organizations communications with the market The basic tools used to Accomplish an organizations communication objectives are often referred to as the Promotional mix. The promotional mix Advertise in Direct Interactive Sales Publicity/ marketing promotion Public internet facilities

Advertising:
Personal selling Advertising is defined as any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement, whose advertising space or time is donated by the media. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. It is also very important promotional tool, particularly for companies, whose products and services are targeted at mass consumer markets. It is a very cost-effective method for communicating with large audiences. It can be used to create brand images and symbolic appeals for a company or brand.

Direct Marketing:
One of the fastest-growing sectors of the U.S. economy is direct marketing, in which organizations communicate directly with target customers to generate a response and a transaction. It has become such an integral part of the IMC program of many organizations and often involves separate objectives, budgets, and strategies, we view direct marketing as a component of the promotional mix. Direct Marketing is much more than direct mail and mail order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing and direct response ads through direct mail, the Internet, and various broadcast and print media.

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One of the major tools of direct marketing is direct response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer.

Interactive/Internet Marketing:
Interactive media allow for the back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. Unlike traditional forms of marketing communications such as advertising, which are oneway in nature, the new media allow users to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions and of course make purchases. In addition to the Internet, other forms of interactive media include CD ROMs, Kiosks, and interactive television.

Sales Promotion:
The next variable in the promotional mix is sales promotion, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales, sales promotion is generally broken into two major categories: Consumer-oriented and Trade-oriented activities Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various pointof-purchase materials. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers, distributors and retailers.

Publicity/Public Relations:
Publicity refers to non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial or announcement about an organization and its products and services. Like advertising, publicity is not directly paid for by the company. An advantage of publicity over other forms of promotion is its credibility. Another advantage of publicity is its low cost, since the company is not paying its time or space in a mass medium such as TV, radio or newspapers.
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Public relations are defined as the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interests and executes a program of action to earn public understanding and acceptance. Public relations generally have a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics.

Personal Selling:
It is a form of person-to-person communication in which a seller attempts to assist and persuade prospective buyers to purchase the companys product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. Personal selling involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customers reactions. Assembling the marketing mix means assembling the four Ps of marketing in the best possible combination. Involved in this process are the choice of the appropriate marketing activities and the allocation of the appropriate marketing effort/resources to each one of them. The firm has to find out how it can generate the targeted sales and profit. It considers different marketing mixes with varying levels of expenditure on each marketing activity and tries to figure out the effectiveness of different combinations in terms of the possible sales and profits. It then chooses the combination/mix of products, price, place and promotion that is best according to its judgment. Since marketing is essentially an interaction between the marketing mix and environmental variable, and since the latter and non-controllable, marketing becomes synonymous with assembling and managing the marketing mix. Of course, while assembling the marketing mix, the marketing manager will take due note of the environmental variables. Not only will he take due note of them, he will ensure that his marketing mix suits the environmental variables. And, its factors that renders that task much more complex. MARKEGING MIX: THE SOLE VEHICLE FOR CREATING AND DELIVERING CONSUMER VALUE

The four elements mentioned above- product, distribution, promotion and pricing constitute the marketing mix of the firm. The marketing mix is the sole vehicle for creating and delivering customer value. It can be easily seen that all activities and programmes, which a marketer designs and caries out in his effort at winning customers, relate to one or the other of the above four elementsproduct, place, promotion and pricing. It can also be seen that in each of these elements, there are several sub-elements. For example, packaging is one of the sub-elements of product and warehousing is one of the sub-elements of distribution.

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The Four Ps of Marketing:

It was James Culliton, a noted marketing expert, who coined the expression marketing mix and described the marketing manager as a mixer of ingredients. To quote him, The marketing man is a decider and an artist a mixer of ingredients, who sometimes follows a recipe, developed by others and sometimes prepares his own recipe. And, sometimes he adapts his recipe to the ingredients that are readily available and sometimes invents some new ingredients, or, experiments with ingredients as no one else has tried before. Subsequently, Niel H. Borden, another noted marketing expert, popularized the concept of marketing mix. It was Jerome McCarthy, the well-known American professor of marketing, who first described the marketing mix in terms of the four Ps. He classified the marketing mix variables under four heads, each beginning with the alphabet P. Product Place Price Promotion McCarthyhas provided an easy-to-remember description of the marketing mix variables. Over the years, the terms Marketing mix and Four Ps of marketing have come to be used synonymously. Assembling and managing the marketing mix is the crux of the marketing task. And, it is through the marketing mix that the marketing manager achieves the marketing objectives.

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MARKETING STRATEGIES FALL UNDER TWO CATEGORIES:

We have seen that target market selection, positioning and marketing mix formulation together constitute marketing strategy. We have also seen that a firm can assemble the marketing mix elements in many different ways, depending on the relative weightage it assigns to the different elements. The scope to carve out different combinations is, in fact immense. As a result, business firms are able to employ an abundance of strategies and strategy stances in their relentless race to stay ahead of competition. However, a close scrutiny will reveal that all these strategies can be fitted into two broad categories 1. PRICE ORIENTED MARKETING STRATEGY 2. DIFFERENTIATION ORIENTED MARKETING STRATEGY In other words; there are only two broad routes available for forging marketing strategies: any strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented strategy. Firms taking to the price route in marketing strategy compete on the strength of pricing. They use price as their competitive lever. They juggle the price of their product to suit the prevailing competitive reality. They can afford to offer lower prices and still make the targeted profits, they elbow out competition with the cushion they enjoy in the matter of pricing. Price route requires cost leadership; evidently, a firm opting for the price route will have to have a substantial cost advantage in their operations. It should be enjoying an overall cost leadership in the given industry and its lower cost should enable it to secure above average returns in spite of strong competition. The cost advantage can emanate from different factors like, scale economies, early entry, a large market share built over a period of time, locational advantage, or synergy among the different businesses. The firms whole strategy, in fact will revolve around building such cost advantage. To successfully practice a price-led strategy, a firm should have consciously taken to the idea sufficiently early in its evolutionary process and prepared itself for adopting such a strategy. The differentiation route of strategy revolves around aspects other than price. It works on the principle that a firm can make its offer distinctive from all competing offers and win through the distinctiveness. And, a firm adopting such route can price its product on the perceived value of the attributes of the offer and not necessarily on competition-parity basis. Maximum scope for exploiting differentiation remains with the product. While all the 4Ps of marketing are important elements from the point of view of strategy, the other Ps normally go as elaborations of the offer, while the product forms its core. Product differentiation is of vital importance in product management and has great potential in forgoing successful marketing strategies. The product can be differentiated along two major planks: 1. Tangible product attributes and functions, 2. Intangible characteristics and emotional associations.
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The tangible product attributes and functions are Differentiation based on ingredients, Differentiation based on functional value, Differentiation based on additional features, Packaging contributing to differentiation, n Differentiation based on Quality, Operational Efficiency, Technology, and Service. Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this nonreliance on the Internet, the field of digital marketing includes a whole host of elements such as mobile phones, sms/mms, display / banner ads and digital outdoor. Word of mouth, is a reference to the passing of information by verbal means, especially recommendations, but also general information, in an informal, person-to-person manner. Word of mouth is typically considered a face-to-face spoken communication, although phone conversations, text messages sent via SMS and web dialogue, such as online profile pages, blog posts, message board threads, instant messages and emails are often now included in the definition of word of mouth. There is some overlap in meaning between word of mouth and the following: rumor, gossip, innuendo, and hearsay; however word of mouth is more commonly used to describe positive information being spread rather than negative, although this is not always the case. Word-of-mouth promotion, also known as buzz marketing and viral advertising, is highly valued by advertisers. It is believed that this form of communication has valuable source credibility. Research points to individuals being more inclined to believe WOMM than more formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals). In order to Promote and manage word-of mouth communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response. Influencer marketing is increasingly used to seed WOMM by targeting key individuals that have authority and a high number of personal connections. It is an advanced form of word of mouth marketing (WOMM) in which companies develop customers who believe so strongly in a particular product or service that they freely try to convince others to buy and use it. The customers become voluntary advocates, actively spreading the word on behalf of the company. Evangelism literally comes from the three words of bringing good news and the marketing term justly draws from the religious sense, as consumers are literally driven by their beliefs in a product or service, which they preach in an attempt to convert others. Sales promotion consists of diverse collection of incentive tools mostly short term, designed to stimulate quicker and greater purchase of particular products of services by the consumer. Sales promotion is the only method that makes use of incentives to complete the push-pull
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promotional strategy of motivating the sale force, the dealer and the consumer in transacting a sale. Price-off offers refers to offering the product at lower than the normal price. This encourages immediate sales, attracts non-users, induces product trail and counters competition. Premium refers to the offer of an article of merchandise as an incentive in or to sell the product.

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RESEARCH METHODOLOGIES AND LIMITATIONS: MARKETING RESEARCH :

Definition of marketing research research as approved as by the board of directors of the association of American marketing association is: Marketing research is the function which links the customer and public to the marketer through information information used to identity and define marketing opportunities and problems generate define and understanding of marketing as process. Simply, marketing research is the systematic design collection analysis and reporting of data finding relevant to a specific marketing situation facing the company. Carefully planning through all stages of the research is a necessity. Objectivity in research is all-important. The heart of scientific method is the objective gathering of the information. The function as marketing research within the company as to provide the information and analytical necessary for effective. Planning of the future marketing activity. Control of the marketing operation in the present. Evaluation of marketing results. A research may undertake any of the three types of research investigation depending upon the problem. These type of research included: 1. Basic research 2. Applied research 3. Designated Fact Gathering BASIC RESEARCH It is also known as the pure fundamental research, which refers to those studies, sole purpose of which is the discovery of new information. It is conducted to extend the horizons on given area of knowledge with no immediate application to existing problems.

APPLIED RESEARCH:
It is attempt to apply the various marketing technique, which have been developed as research, first and later on they become applied research techniques. It is on attempt to apply the basic principles and existing knowledge for the purpose of solving operational problems.

DESIGNATED FACT GATHERING:

It refers to a research where the investigation attempts to gather some pre-determined data.

STEPS IN MARKETING RESEARCH:

Marketing research process can be out through following steps. Define the problems and research objectives Develops the research plan Collect the information Analysis and interpretation Present the finding.
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RESEARCH METHOD:
It must be classified on the basis of the major purpose of the investigation. In this problem description studies have been undertaken, as the objective of the project is to conduct the market shares study to determine the share of market received by the company to the competitor.

DATA COLLECTION:
The information needed to further proceed had been collected through primary and secondary data.

PRIMARY DATA:
It consists of information collected for the specific purpose, survey research was used and he all the details of Ford and their competitors were contacted. Survey research is the approached gathering description and information.

CONTACTED METHOD:
The information was solicited by administering structured questionnaire to the customer and dealers, thus getting to know directly from the dealers their sales before and after sales service.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been collected for another purpose. Any researcher begins the research work by first going through secondary data. Secondary data includes the information available with company. It may be the findings of research previously done in the field. Secondary data can also be collected from the magazines, news papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION:

The basic method adopted in conducting the study is a structured questionnaire. Questionnaire is administered on the sample respondents. How ever there are certain cases where personal interactive method is followed with customers to find the satisfaction level.

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Analysis and Interpretation Analysed Survey Report

1. Which of the following Ford car you own? a) Fiesta b) Ikon c) Endeavour d) Fusion

Data analysis:
Name of the car Fiesta Ikon Endeavour Fusion Total % of customers 49 27 15 9 100%

Interpretation: This question is meant for taking the informationregarding the most preferred car in the Ford cars. From the above graph it is found that most preferred vehicle of Ford cars is Fiesta. 2. What do you like most about your Ford car? a) Style/design b) Comfort c) Ford brand d) Service

Data analysis:
Customers preference Style/design Comfort Ford brand Service No of customers 9 23 13 5

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Interpretation: This question is meant to know the customers preferencesand likes towards the cars. From the data we can position our product to the comfort seeking group of people. 3. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance d) Sound quality e) Brand name

Data analysis:
Customers perspective Fuel efficiency Durability Low maintenance Sound quality Brand name No of customers 2 7 9 12 20

Interpretation: From this question we can position the cars according to the customers perspectives. Many of the Ford customers are buying the cars by seeing its Brand Nameonly. The no. of customers satisfied with the fuel efficiency are very low. 4. How did you come to know about this car before purchasing? a) From friends, relatives (buzz) b) Advertisements c) Car experts d) Sales persons visit e) Auto magazines

Data analysis:
Source of awareness Friends, relatives Advertisements Car experts Sales persons visit Auto magazines No. of customers 9 25 3 8 5

Interpretation: Most of the Ford customers came to know about their vehicle through advertisementsonly. The major media that attracted the customers is television.

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5. Can you share your experience with after sale service support a) Very much satisfied b) Satisfied c) Ok d) Not satisfied

Data analysis:
Post service experience Very much satisfied Satisfied Ok Not satisfied No. of customers 6 15 25 4

Interpretation: This question is prepared to know the service levels of the authorized dealer. Most of the customers are just telling okabout the service. Only a very few customers are very much satisfied with the service. Even some of the customers are not satisfied with the service given by the authorized service men. 6. Where do you get your car serviced regularly? a) At authorized service centre b) At a local workshop near my home

Data analysis:
Place of service At authorized service centre At a local workshop near home No. of customers 41 9

Interpretation: Most of the Fortune Ford customers are interested to service their vehicles only at the authorized dealers. From this we come to know what the importance of authorized service centers for car is. 7. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI b) HDFC c) SBI d) others

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Data Analysis
Name of the bank ICICI HDFC SBI Others No. of customers 21 6 20 3

Interpretation: Most of the customers prefer ICICI and SBI banks for taking financial help while purchasing a car. Customers are asking for 0% interest on financial help provided by the banks. 8. Which type of finance do you prefer? a) In house finance b) Out house finance c) No difference between the two

Data analysis:
Type of finance In house finance Out house finance No difference between the two No. of customers 30 12 8

Interpretation: To know the customers opinion about the finance and their interests in preferring the finance from various sources, this question is prepared. Most of the customers prefer only In house finance compared to outhouse finance. 9. To which media do you get expose regularly? a) Televisions b) Magazines c) News papers d) F.M/Radio

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Data analysis:
Media Televisions Magazines News papers F.M/Radio No. of customers 26 7 16 1

Interpretation: From this analysis we come to know that most of the customers are interested in watching televisions, which is a good media for communicating with people and delivering our intentions about product. 10. Which kind of T.V. channels do you watch regularly? a) National news channels b) Regional news channels c) Sports channels d) Entertainment channels

Data analysis:
T.V. Channels National news channels Regional news channel Sports channels Entertainment channels No. of customers 10 16 4 20

Interpretation: This question is meant to know the interests and preferences of customers towards T.V. channels. More than quarter of the sample size showed interest only on the entertainment channels and next preference goes to the regional news channels. 11. Whats your opinion on the price list of Ford cars? a) Affordable by common man b) Affordable only by rich man c) Cant say

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Data analysis:
Customer opinion on pricelist of ford car Affordable by common man Affordable only by rich man Cant say No. of customers

6 42 2

Interpretation: More than 80% of customers think that Ford cars are affordable only by rich men. These cars are too expensive for an economic/comman man of the society. 12.What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest Data analysis: Offers No. of customers Free insurance Special discount on sale of cars Extending the service period Finance availability with0% interest 9 3 27 11

Interpretation: By the result of this question we come to know about the various promotional techniques/offers which attract the customers. From the above analysis many customers are expecting the extension in the service period from the various offers given to them. 13.What more do you expect from your dealer? a) Information about new cars b) Information about service and mileage c) Assistance regarding loans and insurance d) Understanding customer needs

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Data analysis:
Expectations of customer No. of customers 2 Information about new cars Information about service and mileage Assistance regarding loans and insurance Understanding customer needs 34 4

10

Interpretation: Most of the customers are expecting the information about service and mileageregarding the cars from the dealer. From the above analysis we come to know about the customers expectations and their post purchase service demands from the dealer. 14.How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? a) I will not respond b) Lost my privacy c) Interested in knowing (if I feel a need of it)

Data analysis:
Customer opinion I will not respond Lost my privacy Interested in knowing (if I feel a need of it) No. of customers 11 5 34

Interpretation: This question is prepared indirectly to know about the customers opinion about the Data Bank maintenance by the Fortune Ford. In reply majority of the customers gave a positive reply by showing interest in knowing about the cars when a sales person gives a detailed description about the cars. 15.Whats your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer

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Data analysis:
Customer opinion on ambassador Very necessary Not needed Waste of money for manufacturer No. of customers

43 7 0

Interpretation: This question is meant to know about the importance of Brand Ambassador for a car in the customers point of view. Most of the Ford customers think that a Brand Ambassador is very necessary for promoting a car. 16.Whats your opinion about the previous Ambassador Abhishek Bachan for the car Ford Fiesta? a) Full filled the purpose b) Unable to attract customers c) He was not apt for it.

Data analysis:
Customer opinion Full filled the purpose Unable to attract customers He was not apt for it No. of customers 38 10 2

Interpretation: Most of the Ford customers think that the previous Brand Ambassador Abhishek Bachan for the car Ford Fiesta full filled the purpose and he was able to increase the sales of the cars Fiesta. 17.Whom do you suggest as a right person for promoting a car? a) Sports person b) Film stars c) Car expert d) Any celebrity

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Data analysis:
Customer suggestion Sports person Film star Car expert Any celebrity No. of customers 18 21 7 4

Interpretation: Most of the customers of Ford suggest a film staras the best ambassador. Because many of them get attracted only to their favorite film stars other than other brand ambassadors. 18.What other brand(s) did you seriously consider before making this car purchase? a) Hyundai b) Chevrolet c) Maruthi d) TATA e) Toyota

Data analysis:
Brand name Hyundai Skoda Maruthi Honda Toyota No. of customers 19 12 5 9 5

Interpretation: Most of the Ford customers are opting for Hyundaiwhen they are asked to consider a brand other than Ford. Skoda occupies the second place in their preference.

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SUGGESTIONS

VALUABLE SUGGESTIONS GIVEN BY FORD CUSTOMERS: Please try to increase the number of Service centers. Keep Service Stations at main locations of the city,where many customers feel it easy to go to service centers. There is no proper response from the service men at service station. Please recruit efficient service men in the service centers. The service men in the service centers are unable to understand the problems told by us, and they are not resolving the cars problems. Provide information on service and mileage regularly. Please provide information about new cars along with their price lists at least once in 6 months. Advertisements through televisions can influence many categories of people. So try to concentrate on this segment. We dont see or find much of the Ford car advertisements in T.V except Fiesta. Try to provide financial facility at 0% interest. Customer should be educated about the maintenance of the vehicle. i.e. maintenance tips should be provided. Mileage of the cars is not up to the expectations. Mileage of Fiesta is very worst its giving only 9 to 11 Kms per liter. Please try to rectify it. The quality of the sun proof coating used is of very low quality, vehicle colour is getting shaded very quickly. Please send the specially appointed feed back taking staff on Sunday evenings only. The sales people present in the showroom respond to us properly when we come to purchase a new car, but they do not respond when we come to tell our problems regarding the cars.

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CONCLUSION

Although Ford Motor Company is one of the largest companies in the world, we can still attribute accounting trends to some of the key events in Ford's history. In 1990, Ford acquired Jaguar Cars, Ltd. Jaguar was a company suffering terrible loses due to poor quality, and lack of sales. Jaguar has been in the black since Ford purchased them until 1994. It is important to note that Ford's net income trend from 1991 to 1995 illustrates this. In 1992, the Ford Taurus became the number one selling car in the United States, which helped increase 1992 net earnings, and in 1994 the Ford Falcon was the top selling car in Australia, helping maintain the trend of increasing net income. It is important to note that Ford's net income has increased from 1991 to 1994, and then decreased in 1995. There are several possible causes for this change in the trend. In 1995, Ford acquired 20% equity in a major Chinese truck manufacturer, and launched several new vehicles; including the Ford Contour, Ford Mondeo, Mercury Mystique, Ford F-150, and Ford Taurus. These additional investments and expenses help explain the decrease in net income in 1995. Overall, the company has done well, and with reorganization in 1996 to decrease spending and increase efficiency, Ford is striving for future periods of growth.

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RECOMENDATIONS

We found that promotion greatly affect the market, so in my opinion company should promote its product regularly by making new and people attracting promotional strategies to increase its sale. As well as there should be a careful allotment of funds in the current recession scenario as the risk element tends to be very high.

Take over aspects aspects should not be considered as it will lead to a very high potential tax liability.

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PROJECTIONS OF TOTAL PRODUCTION (IN THOUSAND NUMBERS)

200506 Cars Multi Utility Vehicle LCVs Buses & Trucks Scooters Motorcycles Mopeds Three wheelers Tractors 111.9 200 200607 1245 216 200708 1385 234 200809 1428 253 20092010 1593 274 20102011 1653 296 20112012 1850 321 20122013 1933 348 20132014 2170 377 20142015 2285 408 20152016 2574 443

169 221 992 6201 376 437 296

184 235 1028 7336 411 492 311

201 250 1065 8681 450 554 326

220 265 1104 10273 494 625 343

240 282 1145 12157 543 706 360

262 300 1188 14390 599 798 378

286 318 1233 17035 663 903 397

312 339 1280 20168 736 1023 417

341 360 1330 23880 819 1161 437

372 383 1383 28279 916 1318 459

406 407 1438 33494 1027 1499 482

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PROJECTIONS OF VEHICLE SALES IN DOMESTIC MARKET ( IN NUMBERS THOUSAND)

200405

Projected Gr.

200506

2006-07

200708

200809

20092010

20102011

20112012

20122013

20132014

20142015

20152016

Cars

885

10%

948

1,043

1,147

1,147

1,262

1,262

1,388

1,388

1,527

1,527

1,679

Multi Utility Vehicles

8% 176

195

211

227

246

265

287

309

334

361

390

421

LCVs

120

9%

143

156

170

185

202

220

240

261

285

311

339

Buses & Trucks

199

6%

207

219

233

247

261

277

294

311

330

350

371

Scooters

922

3%

908

935

963

992

1022

1053

1084

1117

1150

1185

1220

Motorcy cles

4965

18%

5815

6862

8097

9554

1127 4

13303

1569 8

1852 4

2185 8

2579 2

3043 5

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Mopeds

323

7.5%

333

358

385

414

445

478

514

552

594

638

686

Three Wheeler s

308

11%

360

400

444

492

547

607

673

747

830

921

1022

Tractors

249

5%

296

311

326

343

360

378

397

417

437

459

482

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Questionnaire
Name : Contact no. Address: E-Mail address: 1. Which of the following Ford car you own? a) Fiesta b) Ikon c) Endeavour d) Fusion 2. What do you like most about your Ford car? a) Style/design b) Comfort c) Ford brand d) Service 3. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance d) Sound quality e) Brand name 4. How did you come to know about this car before purchasing? a) From friends, relatives (buzz) b) Advertisements c) Car experts d) Sales persons visit e) Auto magazines 5. Can you share your experience with after sale service support a) Very much satisfied b) Satisfied c) Ok d) Not satisfied 6. Where do you get your car serviced regularly? a) At authorized service centre b) At a local workshop near my home 7. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI b) HDFC c) SBI d) others
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8. Which type of finance do you prefer? a) In house finance b) Out house finance c) No difference between the two 9. To which media do you get expose regularly? a) Televisions b) Magazines c) News papers d) F.M/Radio 10. Which kind of T.V. channels do you watch regularly? a) National news channels b) Regional news channels c) Sports channels d) Entertainment channels 11. Whats your opinion on the price list of Ford cars? a) Affordable by common man b) Affordable only for rich man c) Cant say 12. What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest 13. What more do you expect from your dealer? a) Information about new cars b) Information about service and mileage c) Assistance regarding loans and insurance d) Understanding customer needs 14. How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? a) I will not respond b) Lost my privacy c) Interested in knowing (if I feel a need of it) 15. Whats your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer

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16.Whats your opinion about the previous Ambassador Abhishek Bachan for the car Ford Fiesta ? a) Full filled the purpose b) Unable to attract customers c) He was not apt for it.

17. Whom do you suggest as a right person for promoting a car? a) Sports person b) Film stars c) Car expert d) Any celebrity 18. What other brand(s) did you seriously consider before making this car purchase? a) Hyundai b) Skoda c) Maruthi d) Honda e) Toyota Thanks for taking the time to fill out this questionnaire and for providing valuable information which will be used for my project work, market research studies and reports. We do not share or sell your name, address or any other data with any outside company for any purpose.

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