“A STUDY ON PROMOTIONAL STRATEGIES OF FORD IN

RESPECT TO CAPITAL FORD”

A PROJECT REPORT SUBMITTED TO

DEPARTMENT OF IMBA
In partial fulfilment for the award of the degree
Of

INTEGRATED MASTERS OF BUSINESS ADMINISTRATION

BJB AUTONOMOUS COLLAGE

BHUBANESWAR

BY: SUNDIGDHA SAMANTARAY

ROLL NO: 2015MBA011
 ACKNOWLEDGMENT
I would like to confer my heartiest thanks to the Authority of Capital Ford for

giving me the opportunity to work in company and guiding me in each and

every aspect regarding my project, especially its practical applications. While

preparing my project I got to have an in-depth knowledge of practical

applications of the theoretical concepts and definitely the things which I have

learned will undoubtedly help me in future, to analyse many processes going on

in our economy. I would like to thanks Prof. SHRIMOY PARICHHA, BJB

Autonomous College, for his guidance and support whose erudite guidance and

supervision have made this work possible. We are very thankful for this valuable

guidance and constant encouragement during the preparation of this project.

We are highly thankful to all other members of department of IMBA for their

suggestions and kind co-operation in this project work.

 DECLARATION
I SUNDIGDHA SAMANTARAY hereby declare that, the SIP entitled

“PROMOTIONAL STRATEGIES OF FORD INDIA IN RESPECT TO CAPITAL FORD”

being submitted by me as an original piece of work done by me in partial

fulfilment to the requirement of the award of the degree MBA by BJB

Autonomous College

DT:
 BONAFIDE CERTIFICATE

This is to certify that the summer project work entitled ‘A STUDY ON

PROMOTIONAL STRATEGIES OF FORD INDIA IN RESPECT TO CAPITAL FORD

(BHUBANESWAR)’ has been carried out by SUNDIGDHA SAMANTARAY, ROLL

NO: 2015MBA011 under my supervision, guidance and submitted in partial

fulfilment of the requirements for the Award of degree INTEGRATED MASTERS

OF BUSINESS ADMINISTRATION in BJB AUTONOMOUS COLLEGE, during the

academic year 2015-2018.

Date Project Supervisor Place: BHUBANESWAR

SIGNATURE OF THE SUPERVISOR SIGNATURE OF CANDIDATE

DATE: Roll no-

 CONTENTS

INTRODUCTION...............................................................................................

PROMOTIONAL STRATEGIES...........................................................................

MEANING,DEFINATION..................................................................................

MARKETING STRATEGIES...............................................................................

OBJECTIVES...................................................................................................

MARKETING MIX..........................................................................................

4P’S OF MARKETING MIX.............................................................................

2.COMPANY OVERVIEW.................................................................................

COMPANY PROFILE.......................................................................................

MANUFACTURING UNITS..............................................................................

PROCESS OF WORKING.................................................................................

MISSIONS....................................................................................................

VISIONS.......................................................................................................

PRODUCTS & SERVICES................................................................................

CHAPTER 3.................................................................................................
 INTRODUCTION TO THE TOPIC:

Today’s society is warm with urbanization and demonstration effect. With a

view towards it, there are drastic changes coming up in all sectors even in the

automobile industries. The following information gives an insight about it. In

the present context the companies operate on the principle of natural

selection – “Survival Of The Fittest”. Only those companies will succeed

which at best match to the current environmental imperatives – those who

can deliver what people are ready to buy. But real marketing does not

involve the art of selling what the manufacturers make. Organizations gain

market leadership by understanding consumer needs and finding solutions

that delight consumers. If customer value and satisfaction are absent, no

amount of promotion or selling can be compensate. Hence the aim of

marketing is to build and manage profitable customer relationship.

This is a part of the strategic marketing done by every company to achieve its

objectives and goals. To maximize the profits and long-term plans every

organization has to follow a strategic planning. Marketing is much more than

just an isolated business function – it is a philosophy that guides the

entire organization towards sensing, serving and satisfying consumer needs.

The marketing department cannot accomplish the company’s customer

relationship-building goals by itself. It must partner closely with other

departments in the company and with other organization throughout its

entire value – delivery network to provide superior customer value

and satisfaction. Thus marketing calls upon everyone in the organization to

“think customer” and to do all they can to help build and manage profitable

customer relationship. Marketing is all around us, and we need to know

that it is not only used by manufacturing companies, wholesaler and

retailers, but also by all kinds of individuals and organizations. There are four

major, powerful themes that go to the heart of modern marketing theory

and practice, they are:

1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS.

2. BUILDING AND MANAGING STRONG BRANDS.

3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE.

4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE.

What marketing is what it does and what it offers?

“Marketing is a social and managerial process whereby individual and groups

obtain what they need and want through creating and exchanging products

and value with others. Marketing management is the process of planning

and executing the conception, pricing, promotion and distribution of ideas,

goods and services to create exchanges that satisfy individual and

organizational goals. ”Marketing offers some combination of products,

services, information, or experiences offered to a market to satisfy a need or

want.” Marketing is an orderly and insightful process for thinking about and

planning for markets. The process starts with researching the market place to

understand its dynamics. The marketer uses research methodologies to

identify opportunities, that is, to find individuals all groups of people with

unmet needs or latent interest in some products or service.

The marketing process consists of the following:

1. Analysing marketing opportunities.

2. Developing marketing strategies.

3. Planning marketing programs

4. Managing the marketing efforts.

Before taking any decision and achieving the goals, it has to make analysis

of what to do, how to do, when to do, where to do and who is to do it. This is

nothing but strategic planning. Goals indicate what a business units wants to

achieve whereas strategy is how to get there.

Marketing strategies in simple terms are the complete and unbeatable plans

designed specifically for attaining the marketing objectives of the

firm. Marketing can be called as a game plan for achieving its goals. Strategy

choice will depend on whether the firm or the marketer plays the following

roles:

 Market leader

 A challenger

 A follower

 A niche

The identification of objectives, both in quantitative and qualitative terms, is

an essential backdrop to strategy formulation. Goals have a quality and time

frame attached to
them. These are typically spelt out in terms of financial return, market share,

market presence, etc.

Thus, the concept of market oriented strategic planning arises with the link

between the products the link between the products the manufacturer is

dealing in and the marketconditions. In this direction, our study deals only

with the marketing strategies i.e. promotional strategies of the

Ford automobiles.
 OBJECTIVES

Primary Objective:

To know the influence of various Marketing Strategies, Promotional

Activities towards the customers of four wheelers (cars).

Secondary Objective:

 To study the elements of promotional mix.

 To Study and analyze the Promotional Strategies of Ford.

 To find the area to be improved.

 To find out strategies of Ford.

 To find out the limitations of promotional strategies of Ford.

 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.

 COMPANY OVERVIEW

CAPITAL FORD

Capital Ford was started in the year 1998. In India Ford was collaborated

with Mahindra. The first model was Ford Escort. The first car was made by

Ford India was Ford Ikon in the year 1999.

Ford Motor Company

It is an American multinational corporation based in Dearborn, Michigan, a

suburb of Detroit. The automaker was founded by Henry Ford and

incorporated on June 16, 1903. Ford is currently the second largest

automaker in the U.S. and the fourth-largest in the world based on number

of vehicles sold annually, directly behind Volkswagen. Ford is the seventh-

ranked overall American-based company in the 2008 Fortune 500 list, based

on global revenues in 2008 of $146.3 billion. Ford ended 2009 with a net

profit of $2.7 billion. Five of Ford's vehicles ranked at the top of their

categories and fourteen vehicles ranked in the top three. The Ford

Motor Company was launched in a converted factory in 1903 with $28,000 in

cash from twelve investors, most notably John and Horace Dodge (who

would later found their own car company). Henry's first attempt under his

name was the Henry Ford Company on November 3, 1901, which became the
Cadillac Motor Company on August 22, 1902. During its early years, the

company produced just a few cars 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 world's

largest and most profitable companies, as well as being one to survive the

Great Depression. As one of the largest family-controlled companies in the

world, the Ford Motor

Company has been in continuous family control for over 100 years Members

of the board as of early 2007 are:

Chief Sir John Bond, Richard Manoogian, Stephen Butler, Ellen Marram,

Kimberly Casino, Alan Mulally (President and CEO), Edsel Ford II, Homer Neal,

William Clay Ford Jr., JormaOllila, Irvine Hockaday Jr., John L. Thornton and

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 of the Americas), Donat Leclair

(Executive Vice President and CFO, Mark A. Schulz (Executive Vice President,

President of International Operations) and Michael E. Bannister (Group Vice

President; Chairman & CEO Ford Motor Credit). Paul Mascarenes (Vice
President of Engineering, The Americas Product Development) Today, Ford

Motor Company manufactures automobiles under several names including

Lincoln and Mercury in the United States. Ford plans to discontinue the

Mercury brand at the end of 2010. In 1958, Ford introduced a new marque,

the Edsel, but poor sales led to its discontinuation in 1960. Later, in 1985, the

Mercer brand was introduced to market Fords from Europe in the United

States; it met a similar fate in 1989.

Ford has major manufacturing operations in Canada, Mexico, the United

Kingdom, Germany, Turkey, Brazil, Argentina, Australia, the People's

Republic of China, and several other countries, including South Africa where,

following divestment during apartheid, it once again has a wholly owned

subsidiary. Ford also has a cooperative agreement with Russian automaker

GAZ. Ford acquired British sports car maker Aston Martin in 1989, but sold it

on March 12, 2007, retaining a small minority stake, and Volvo Cars of

Sweden. In November 2008 it reduced its33.4% controlling interest in Mazda

of Japan, to a 13.4% non-controlling interest. It shares an American joint

venture plant in Flat Rock, Michigan called Auto Alliance with Mazda. It has

spun off its parts division under the name Visteon. Ford sold the United

Kingdom-based Jaguar and Land Rover companies and brands to Tata Motors

of India in March 2008.Also in 2008, Ford Motor is in negotiations with

Shanghai Automotive Industry Corporation to sell its Volvo cars division.

Ford's FoMoCo parts division sells aftermarket parts under the Motor craft

brand name. Ford's non-manufacturing operations include organizations such

as automotive finance operation Ford Motor Credit Company. Ford also

sponsors numerous events and sports facilities around the US, most notably

Ford Centre in downtown Oklahoma City and Ford Field in down town

Detroit. Overall the Ford Motor Company controls the following operational

car marques: Ford, Lincoln, Mercury, and Volvo Cars.

Ford India Private Limited is a wholly owned subsidiary of the Ford Motor

Company in India founded in October 1995. Ford India Private Limited’s

headquarters are in Maraimalai Nagar, Chennai, and Tamil Nadu. It currently

is the sixth largest car maker in India after Maruti Suzuki, Hyundai, Tata and

Mahindra.

Ford India Private Limited began production in 1926 as a subsidiary of the

Ford Motor Company of Canada, but was shut down in 1954 as the company

was in loss. Ford re-entered the market in October 1995 as Mahindra Ford

India Limited (MFIL), a 50-50 joint venture with Mahindra & Mahindra

Limited. Ford increased its interest to 72% in March 1998 and renamed the

company Ford India Private Limited. The total investments made by Ford

Motor Company since it set shop in 1995 stands at $2billion as of April 2012.

The management team of Ford India comprises – President, Anurag

Mehrotra. Vinay Raina- Executive Director of Marketing, Sales & Service,

Rahul Gautam- Vice President, Marketing, N. Prabhu- Vice President, Service,

Lakshmi Ram Kumar S – Vice President, Sales , George Elisseou- HR Director,

David Schock- Chief Financial Officer.

FIPL’s main manufacturing plant located in Maraimalai Nagar, 45km from

Chennai has a capacity to produce 150,000 cars on a two shift basis and

200,000 with three shifts. In 2010-11, the company’s production crossed the

100,000 mark.

As its new hatchback Figo was launched in March 2010. Ford Motor Company

has invested $500 million to double capacity of the plant to 200,000 vehicles

annually and setting up a facility to make 250,000 engines annually. The

engine plant opened for operations in January 2010.

To meet the growing domestic demand and with an eye on engine exports,

the company has invested $72 million to raise engine production capacity to

330,000 units.

The company is rolling out the urban SUV Ford EcoSport in June 2013. It had

announced a $142-million investment on this. With Ford EcoSport , the

Chennai plant will ramp up to full capacity (200,000 units).Last year,

production touched 127,000 units.

As per of its plan to launch 8 new vehicles by 2015, the car maker is in an

investment of $1 billion for a new state-of-the-art manufacturing plant at

Sanand, Gujrat. The plant is coming up on 460 acre site. It will have an

installed capacity to manufacture 270,000 engines and 240,000 vehicles a

year. Coming up alongside the plant is the supplier park spread across 150

acres and the company has attracted 19 world-class supplier manufacturers

to date. The plant is expected to commence production by 2014.

Once the Sanand plant is fully operational, Ford India will have a cumulative

capacity to make 440,000 cars and 610,000 engines annually.

MODELS:

CURRENT

1. FORD MUSTANG (launched July 2016) Built in USA.

2. FORD ENDEAVOUR (launched January 2016) Built in India.

3. FORD ECOSPORTS (launched June 2013) Built in India.

4. FORD FIGO ASPIRE (launched August 2015) Built in India.

5. FORD FIGO (launched September 2015) Built in India.

DISCONTINUED

1. FORD IKON (1999-2010)

2. FORD ESCORT(1996-2001)

3. FORD MONDEO(2001-2006)

4. FORD FUSION MPV (2004-2010)

5. FORD ENDEAVOUR (2003-2015)

6. FORD CLASSIC (2005-2015)

 7. FORD FIESTA (2011-2015)

8. FORD FIGO(2010-2015)

Presently, Ford has more than 376 sales and service outlets in 209 cities

across India. In the year 2010, FIPL recorded sales of 83,887 vehicles against

29,488 vehicles sold during the year 2009 and registered a sales growth of

172%. Ford India’s CSR activities are focused primarily in four key areas: road

safety, education healthcare, and environment.

Capital Ford markets and services the hatchback Ford Figo, the sedan Ford

Figo Aspire, the sub-compact SUV Ford Ecosports & the SUV Ford Endeavour

through its sales and service outlet at Bhubaneswar. The sales outlet is

located strategically at Mancheswar Industrial Estate Bhubaneswar. These

centrally located outlet provide convenient and easy access to both the

proud owner as well as prospective buyers. The workforce at Capital 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.

The Service Centre is armed with the state-of-the art equipment and is in-line
with Ford's 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.

The facilities offered from the showroom are :

1. Very easy finance facility with in-house finance team to cater to every car

finance requirements. All the leading finance counters are available like

ICICI,HDFC,SBI, etc.

2. Exchange offer for any of 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.

5. Full range of Ford cars with all colours and models to choose from.

6. A good stock of Ford genuine accessories to make Ford ownership more

delightful and safe.

7. A well maintained fleet of test drive cars to give the feel and experience

the drive dynamics on actual driving conditions before take the purchase

decisions.
Capital Ford has a wide variety of cars. It has a blend of safety, style, luxury

and comfort.

PRODUCT PORTFOLIO:

The on road prices of the Ford cars.

The Hatchback car: FORD FIGO

1.New Figo 1.2P Ambiente ABS : RS.641229

2.New Figo 1.2P Ambiente + ABS : RS.654678

3. New Figo 1.2P Trend MT + ABS : RS.685834

4. New Figo 1.2P Titanium MT : RS.726067

5. New Figo 1.2P Titanium (Safety Pack) : RS.752963

6. New Figo 1.2P Titanium (SVP) : RS.782102

7.New Figo 1.5P Titanium AT : RS.935863

8.New Figo 1.2P Titanium+ MT : RS.788714

9. New Figo 1.5D Ambiente ABS : RS.749518

10.New Figo 1.5D Ambiente + ABS : RS.762965

11.New Figo 1.5D Trend MT + ABS : RS.794121

12.New Figo 1.5D Titanium MT : RS.834355

13. New Figo 1.5D Titanium (Safety Pack) : RS.861252

14.New Figo 1.5D Titanium SVP : RS.890390

15.New Figo 1.5D Titanium+ MT : RS.890839

The Sedan : FORD FIGO ASPIRE

1.Aspire 1.2P Ambiente MT : RS.664298

2.Aspire 1.2P Ambiente + ABS : RS.677747

3.Aspire 1.2P Trend MT : RS.732774

4.Aspire 1.2P Titanium MT : RS.767179

5.Aspire 1.2P Titanium MT(safety pack) : RS.794077

6.Aspire 1.2P Titanium MT(SVP) : RS.805283

7.Aspire 1.2P Titanium + MT : RS.846750

8.Aspire 1.5P Titanium AT : RS.996364

9.Aspire 1.5D Entry : RS.759497

10.Aspire 1.5D Ambiente MT : RS.788748

11.Aspire 1.5D Ambiente + ABS : RS.802197

12.Aspire 1.5 Trend MT : RS.857447

13.Aspire 1.5D Titanium MT : RS.891853

14.Aspire 1.5D Titanium(safety pack) : RS.918750

15.Aspire 1.5D Titanium(SVP) : RS.929957

16Aspire 1.5D Titanium + MT : RS.971759

The Compact SUV : FORD ECO SPORT

1.Eco sport 1.5P Ambiente MCA : RS.901417

2.Eco sport 1.5P Trend MCA : RS.978746

3.Eco sport 1.5P Titanium MT MCA : RS.1108151

4.Ecosport 1.5P Trend + AT MCA : RS.1113782

5.Eco sport 1.5P Titanium + AT MCA : RS.1345022

6.Eco sport 1.5D Ambiente MCA : RS.970959

7. Eco sport 1.5D Trend MCA : RS.1048288

8.Eco sport 1.5D Trend + MCA : RS.1093116

9.Eco sport 1.5D Titanium MCA : RS.1187119

10.Eco sport 1.5D Titanium + MCA : RS.1310881

The SUV: FORD ENDEAVOR

1.Endeavor 2.2L Trend 4X2 AT : RS.3094412

2.Endeavor 2.2L Titanium 4X2 AT : RS.3551753

3.Endeavor 3.2L Titanium 4X4 AWD AT :

RS.3876896

The Luxury Sports car : FORD MUSTANG

1.Mustang GT 5.0L Ti-VCT V8 Engine, AT :

RS.9315671
MARKETING MIX OF FORD INDIA

The marketing mix refers to approaches used to influence a marketing plan.

In Ford’s case, the target market is highly varied and spans the global

economy. As such, the company’s marketing mix is also comprehensive. The

firm is the second largest U.S-based automaker and the fifth in the world.

With this position, a comprehensive marketing mix is critical to maintaining

its performance. This marketing mix and related strategies also evolve

through time to ensure Ford’s competitiveness in reaching its target markets

around the world.

Ford Motor Company’s marketing mix enables the firm to reach its target

customers worldwide. This marketing mix and associated strategic actions

change over time to match the firm’s market and industry environment.

Ford Motor Company’s Products (Product Mix)

Ford’s offers a considerable variety of products. Organizational outputs are

included in this element of the marketing mix. Ford’s main product lines are

as follows:

1. Automobiles

2. Trucks

3. Buses

4. Tractors

5. Automotive parts/components

6. Financial services

7. Vehicle leasing

Ford Motor Company is popularly known for its automobiles, such as sedans.

However, the firm also has trucks, buses, and tractors in its product mix. In

addition, the firm’s Motor craft brand includes automotive parts for most of

Ford’s vehicles, although some of these parts are also suited for the vehicles

of other firms like Toyota. The Ford Motor Credit Company is Ford’s

subsidiary that offers financing for its customers. The firm also provides
vehicle leasing mainly to corporate clients. Thus, the diversity of Ford’s

product mix is shown in this element of the marketing mix.

Place/Distribution in Ford Marketing Mix

Ford uses typical places or venues used for its strategy of product

distribution. This element of the marketing mix focuses on the venues or

locations used to reach and sell to customers. In Ford’s case, the following

are the main places used for product distribution:

1. Dealerships

2. Auto parts stores

3. Ford Parts website

4. Ford Motor Credit Company

Ford dealerships are the most prominent places for distributing most of its

products. The majority of sales revenues are achieved through these

dealerships. The company’s automotive parts/components are available in

third-party auto parts stores, as well as the Ford Parts website. In addition,

customers can access the firm’s financial services at the Ford Motor Credit

Company offices or through personnel at the dealerships. This element of the

marketing mix shows Ford’s strategy that utilizes different company-owned

facilities and third parties to generate sales.

Ford’s Promotion (Promotional Mix)

Ford Motor Company promotes it products through all of the conventional

tactics. The activities used to promote goods and services are considered in

this element of the marketing mix. Ford’s promotion activities are as follows,

arranged according to significance:

1. Advertising

2. Personal selling

3. Direct selling

4. Sales promotions

5. Public relations

Ford uses advertising as the main tactic to promote its products. The

company’s television advertisements and online advertisements are

especially prominent. In addition, agents/sales personnel use personal selling

to persuade buyers at Ford dealerships and other venues. In some cases, the

company applies direct selling, usually to corporate clients who lease vehicles

from the firm. This marketing mix also involves sales promotion, usually

through special offers, discounts, and trade-ins. Moreover, corporate social

responsibility programs and sponsorship of sports events and facilities enable

the firm to promote its business and products to a wider population of

potential customers. Thus, this element of the marketing mix shows that

Ford effectively applies all of the marketing communications tactics to

promote its goods and services.

Ford’s Prices or Pricing strategy

Ford’s prices vary, depending on the market. This element of the marketing

mix involves the strategies used to determine appropriate prices for

products, based on market and business conditions. Ford applies two main

pricing strategies:

1. Market-oriented pricing strategy

2. Premium pricing strategy

In the market-oriented pricing strategy, Ford’s goal is to set prices that are

appropriate to market conditions, with consideration for competition,

demand, consumer perception, and other variables. Ford applies this pricing

strategy for most of its products, such as sedans and trucks. On the other

hand, the company applies the premium pricing strategy to set higher prices

for some of its products. This pricing strategy is used for most of the Lincoln

automobiles, which are Ford’s luxury line of vehicles. This element of the

marketing mix emphasizes the importance of different pricing strategies to

support Ford’s efforts to secure different segments of the market.

MARKETING STRATEGIES OF FORD:

Product differentiation based on operational efficiency:

FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its offer

on the plank of service. It has gone in for a new norm in customer service: fix

it right-the first time-on time´. Ford is also supplying videotapes showing how

repairs have to be done.

Adopting Offer to Suit Target Segment:

Ford modifies its models for India:

Ford modified its models for the Indian target segments as shown below:
1.Higher ground clearance to make the car more compatible to the rougher

road surface in India.

2.Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian

roads.

3.Changes in cooling requirement, with greater airflow to the rear.

4.Higher resistance to dust.

5.Compatibility of engine with the quality of fuel available in India

6.Location of horn buttons on the steering vehicles. (As the India motorist

uses the horn more frequently, for cars sold in India, the horn buttons are

kept on the steering wheel and not on a lever on the side as in the models

sold in Europe.

Strategic segmentation of cars:

The Ford in India has launched the car only for few segments of people. The

segmentation of car buyers is

Hatchback car segment:

Indian car market is crowded with a number of compact hatchbacks. These

numbers have kept on increasing after 2002. The newly designed hatchbacks
offer a blend of fuel efficiency and capacious cargo capacity. These cars have

their distinctive style and performance when compared to sedans and SUVs.

Most of the customers prefer hatchback cars due to its small size, easy to

drive and low cost. Capital Ford has Ford Figo as a hatch back car. It is mostly

preferred by first time buyers of cars. It is a common person’s car .i.e. due to

its affordability it can be owned by any upper middle income customers. The

demand for hatch back cars is very high in the market “FORD FIGO” comes

under this type of segment.

Sedan car segment:

Sedans have always been seen as a statement of success. A common man’s

dream is to move from a two-wheeler to a small car and then ultimate to a

sedan. Sedan cars are luxurious and expensive. Most of customers of sedan

cars are well settled peoples. Capital Ford has Ford Aspire as sedan car.

SUV segment:

As the Indian economy is taking a turn for the better; it is changing the

lifestyle of the yuppies and the oldies alike. More and more people are

emphasizing on quality with utility. Traveling and outings during weekends is

also becoming a growing trend. Sport Utility Vehicles come to the rescue and

support these changes in everyday people’s lifestyles. It mostly preferred by

business peoples and politicians. ”FORD ENDEAVOUR” comes under this

segment.

Strategic Promotions by FORD:

Ford follows the promotions at two levels, they are

1) Promotions of product directly by the manufacturer.

2) Promotions at dealer level. In the first step the products of vehicles

manufactured by the Ford Automotive are directly promoted by the

manufacturer by himself.

He follows many promotional strategies like

1.Advertising through television and newspaper.

2.Internet or interactive marketing.

3.Direct marketing.
In the second step the dealer of the vehicles promotes the vehicles. The

various promotional strategies followed by the Capital Ford are

1 .Advertising though newspapers, radios, palm plates. In this all the features

of the product and its prices are given in detail to the customer.

2.In televisions the scrolling are given about the product and its features.

Hoardings:

A heavy picture of the product which comprises of its attributes and special

features are displayed on the roadsides in the form of hoardings. It is a bit

expensive strategy but attracts many people who pass by that roadside. This

type of advertisement is prepared for those segments of people who cannot

afford their time in reading newspapers and watching televisions. While

travelling from their home to office, moving on their business activities they

may watch these hoardings. These hoarding are especially setup at the

road signal stops.

Maintaining Data Bank:

In this the dealer collects personal/bio-data (address and contact number) of

many people from various organizations and different sector who are ready
to buy the vehicles and who change the vehicles regularly. These people are

met-in person or contacted through their contact number. The various new

features and new offers regarding the vehicles are advocated to them and

are given discounts on group purchase of vehicles, i.e. if 5 or more friends in

the group purchase the cars at a time then they are given special discounts

on the vehicles.

Free Insurance:

The Capital Ford gives a special offer of free insurance on the purchase of

each vehicle to its new customers.

Relationship Marketing:

Capital Ford pays a special attention towards its old customers. To retain the

old and existing customers it conducts a corporate meet at a luxurious

hotel. The event aims at knowing the problems of the customers regarding

the vehicles and also service feedback. In this way it maintains an effective

relationship with the customers and gains the reputation and goodwill in

the minds of the customers.

Sales Promotion:
The sales promotion is done in the fortune ford at three levels:

1 .Showroom sales:

In this the customers walk in to the showrooms to know about the details of

the product. Specially trained sales executives who are present in the

showrooms give a detailed explanation about the product to the customers.

Sales executives give a detailed note on the products features, various offers

given by the manufacturer and also by the dealer to the customer and

enhances the sales of the vehicles.

2. Corporate sales:

A special team of sales executives are sent to some big corporate sectors and

there they personally meet the heads of the organizations like C.E.O’s,

Managers etc., and explain about the vehicles and the offers and special

schemes provided by the dealer to them on bulk purchase of the vehicles and

try to promote the sales of the vehicles.

3. Field sales:

The sales executives conduct some events with the corporate working people

and try to demonstrate the product features and its benefits and try to

promote the product and increase its sales.

4. Conducting Customer Delight Program:

This is a unique program conducted by the Capital Ford. This is a program

conducted to retain the old customers of the Ford. The old customers of the

Capital Ford are meeting personally and they are requested to give their

feedback by filling in the questionnaire which is specially prepared for

them. In this questionnaire their problems regarding the vehicle and also

their post-sale service experience are taken. If there exists any problem, then

the Capital Ford service men try to resolve the problems of their customers

as soon as possible and makes the customer satisfied. This is a technique to

attract the new customers by satisfying the old customers and gaining

goodwill in the market.

STRATEGIC SALES STANDARDS:

Capital Ford maintains strategic sales standards in the following manner

 The Sales faculty is clean, tidy and inviting, making customers

comfortable while purchasing products and availing services.

 Customers are courteously acknowledged within two minutes of their

arrival and are advised that a Sales Consultant will be available upon

request.
  The Sales Consultant’s appearance and dress will be of the highest

standards.

 An advisory relationship is established between the customer and the

Sales Consultant who listens to the customer, identifies their needs

and ensures that they are met.

 A pleasant, non-pressured purchase experience will be provided

during which a thorough demonstration of the vehicle features and

benefits will be made.

 A test drive will be offered to all customers.

 Using a check list, the Sales Consultant delivers the vehicle in perfect

condition when promised.

 Customers will be contacted within one week after delivery to ensure

total satisfaction.

MAINTAINING SERVICE STANDARDS:

 An efficient service facility allows a customer to avail all the service

provided by Capital Ford, in a clean and welcoming environment.

 An appointment is available within 5 working days of the customer’s

request.

 Customers are courteously acknowledged within two minutes of their

arrival and the write-up will begin with five minutes.

  Service needs are courteously identified, accurately recorded on the

repair order and verified with the customer.

 The vehicle is serviced right on the first visit.

 The vehicle is ready on the agreed upon time.

 A through explanation of work done, warranty coverage and charges is

given to the customer.

 All service repair work will be followed up within five working days.

 Each vehicle will be washed before being returned to the customer.

INDUSTRIES OVERVIEW

The industry is estimated to be a US$ 34 billion industry with exports

contributing 5 per cent of the revenues. The growth of the Indian middle

class with increasing purchasing power along with the strong growth of the

economy over the past few years has attracted global major auto

manufacturers to the Indian market. Moreover, India provides trained

manpower at competitive costs making India a favoured global

manufacturing hub. The Indian automobile industry is going through a

technological change where each firm is engaged in changing its processes

and technologies to maintain the competitive advantage and provide

customers with the optimized products and services. The de-licensing of the
sector in 1991 and the subsequent opening up of 100 per cent foreign direct

investment (FDI) through the automatic route marked the beginning of a new

era for the Indian automotive industry. Since then almost all the global major

automobile players have set up their facilities in India taking the level of

production of vehicles from 2 million in1991 to 10.83 million in 2007-

08.

Stagnation of the auto sector in markets such as Europe, US and Japan on the

other, have resulted in shifting of new capacities and flow of capital to the

Indian auto industry. The Indian automobile industry has been growing at the

rate of 15-27 percent over the past five years. In two wheelers industry,

Indian companies are the largest manufacturers in the world. Bikes are a

major segment in the industry, the other two being scooters and mopeds.

Moreover, Indian car makers are earning acclaim worldwide. The home-

grown automaker, Maruti Suzuki has emerged as the fourth most

reputed among auto companies in the world, even ahead of its

parent Suzuki Motor Co of Japan, according to the Global 200 :The

World's Best Corporate Reputations list, compiled by US-based Reputation

Institute.

Evolution of Automobile Industry:

While the automotive industry in India started developing in the 1940s,

distinct growth rates started only in the 1970s.Cars were considered ultra-

luxury products, manufacturing was strictly licensed, expansion was limited

and there was a restrictive tariff structure. The decade 1985 to1995 saw the

entry of Maruti Udyog in the passenger car segment in collaboration with

Suzuki of Japan, and Japanese manufacturers in the two-wheeler and

commercial vehicle segments. After economic reforms took place in India in

1991, it is only in the mid-1990s, that the automotive industry started

opening up. Thus, the mid-1990s are characterized by the entry of global

automotive manufacturers through joint ventures in India. Till the 1990s, the

automotive industry in India was primarily dominated by Maruti Suzuki, Tata

Motors, Hindustan Motors and Premier Padmini in the passenger car

segment. Ashok Leyland, Tata Motors and Mahindra & Mahindra dominated

the commercial vehicle segment while Bajaj Auto dominated the two-

wheeler segment. After the year 2000, further policy changes were

introduced and focus on exports in the industry started increasing.

Following that, the Core Group on Automotive Research &Development

(CAR) was set up in the year 2003 to identify priority areas for Research and

Development (R&D) in India.

Contribution of the automotive industry to GDP and employment in

the 1990s:

Turnover of the automotive industry in the year 1998-1999 was Rs. 360

billion and the industry provided employment to over 10 million people

directly and indirectly. The contribution of the automotive industry to the

GDP during the same period was 4 per cent rising from 2.77 per cent

recorded in the year 1992-1993.

Surge in road freight and passenger traffic generated demand for

automobiles in 1990s.

The average rate of growth of freight and passenger transport on the road

was the highest compared to other means of transport such as rail, air and

sea throughout the 1990s. Even interns of absolute volume, traffic handled

by roads was the maximum among the other means .This partly explains the

rise in growth of the automotive industry especially since the 1990s.

Initial Years

 Manufacturing was licensed

  High Customs duty on import

 Steep excise duties &

 sales tax

 2 Major players:

Premier Automobiles Ltd & Hindustan Motors

1980s

 Entry of MUL, better product, With government support

 Seller’s Market

 Long Waiting Periods

Early to mid-90s

 Seller’s market and long waiting periods

 DE licensing in 1993

 Removal of capacity restrictions

 Decrease in customs & excise

 Auto finance boom-more players (foreign banks &non-banking

companies, better schemes).

Mid 90s-Early 2000s

 Buyer’s market

 Increase in Indigenization

 Easy Auto finance

 Manufactures diversifying into related activities: finance lease,

fleet management, insurance and used car market

LITERATURE REVIEW
REVIEW OF LITERATURE:-
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

Methodology systematic, theoretical analysis of the methods applied to a

field of study. It compromises the theoretical analysis of the body of

methods and principles associated with a branch of knowledge. Research

methodology is a methodology for collecting all sorts of information and

data pertaining to the subject in question. The objective is to examine all

the issued involve and conduct situational analysis. The chapter will discuss

the methods through which data are collected, types of data included in this

project, sampling plans for the research.

The methodology includes:

1) Method of research

2) Types of research

3) Data type

4) Data collection tools

5) Sampling plan

 Sampling frame

 Unit

 Size

 Method
 Methods of Research

The data required for this project report was collected from primary sources

and secondary sources. Hence the data can be classified into two categories

basing upon their sources of collection.

1) Primary data

2) Secondary data

Primary Data:

 Primary data means original data that has been collected specially for

the porpose in mind.

 These data are collected through questionnaire method. Some

respondents were given questions and they were asked to fill it up.

Secondary data:

 Secondary data means the data is that is being reused. Usually in a

different context.

Data collection tools

Collection of data is done through questionnaire.

 Population:

For research procedure, employees were asked for their valuable input

in to the topic. Total number of employees opinion taken into

consideration is 20.

Sampling Plan:

 For completing my study I have gone through random sampling plan.

 Random sampling is the basic sampling techniques where we select a

group of subject for study from larger group. Each individual is chosen

entirely by chance and each member of the population has an equal

chance of being included in the sample.

DATA ANALYSIS
QUESTION QUESTION Options Number of %of customer

NO. customers replied

01 Do you have yes 20 100%

a car?

no 0 0%

Total 20 100%

% of customers replied

YES
NO

INTERPRETATION:-

From the above the analysis it showed that 100% of the sample use cars.
Question no. Question Option No. of %of customer

customers replied

02. Which of the Figo 5 25%

following ford

car you own?

Aspire 5 25%

Eco sports 10 50%

Endeavour 0 0%

TOTAL 20 100%

no of customers

FIGO
ASPIRE
ECO SPORT
ENDEAVOUR

INTERPRETATION :

From the above analysis it showed that 25% of people use Ford Figo, 25% of

people use Ford Aspire, and other 50% of people use Ford Ecosports.
Question no. Question Option No.of %of customer

customers replied

03. What do you Style/Design 5 25%

like most

about your

Ford car?

Comfort 5 25%

Ford brand 2 20%

Service 8 30%

Total 20 100%

No.of customers

service style
30% 25%

ford brand comfort

20% 25%

INTERPRETATION :
From the above analysis it showed that 25% of customers prefer Ford cars
for style, 25% for comfort, 30% of people prefer ford cars for its service and
20% of people for its brand.
Question no. Question Options Number of %of
Customers customers
replied
04 What do you Fuel 5 25%
feel great efficiency
about your
car when
compared to
other cars in
the market?
Durability 5 25%
Low 10 50%
maintenance
Sound quality 0 0%
Brand name 0 0%
Total 20 100%

Sales

fuel efficency
durability
low maintenance
sound quality
brand name

INTERPRETATION:
From the above analysis we conclude that 25% of customers like the fuel
efficiency,25% like the durability,50% like the low maintenance of ford cars.
Question Question Options Numbers %of
no. of customers
Customers replied

05 How did From friends & relatives 2 12%

you
come to
know
about
ford
cars?
Ads 5 25%
Car experts 3 13%
Sales person visit 5 25%
Auto magazines 5 25%
Total 20 100%

% of customers

from friends
ads
car experts
sales person visit
auto magzines

INTERPRETATION:
From the above analysis it is found that 12% of customers came to know
about ford cars from friends & relatives,25% know from ads,13% came to
know from car experts,25% from sales person visit, the rest 25% knew from
auto magazines.
Question no. Question Options Number of %Of
customers customers
replied
06 How do you Excellent 10 50%
rate the
promotion of
cars by
capital ford?
Very Good 3 13%
Good 2 12%
Average 5 25%
Poor 0 0%
Total 20 100%

no of customers

excellent
very good
good
average
poor

INTERPRETATION:
From the above analysis we conclude that the promotions of ford car is rated
excellent by 50% of customers, very good by 13% of customers, 12% rate it
as good and 25% rate it average.
Question no. Question Options Numbers Of %Of
Customers
customers
replied

07 Where do you At authorized 20 100%

get your car service center
serviced
regularly
At local 0 0%
workshop
Total 20 100%

No of customers

service station
local workshop

INTERPRETATION:
From the above analysis we can conclude that 20 out of 20 respondents do
their car servicing at authorized service station.
Question Question Option No. of % of
no. customers customers
replied
08 To which Television 5 25%
media do
you get
expose
regularly?
Social media 10 50%
Magazines 0 0%
Newspapwer 5 25%
Total

No of customers

television
social media
magazines
newspaper

INTERPRETATION:
From the aptionbove data analysis we can conclude that 5 out of 20
respondents get regularly expose to television, 10 get to social media rest 5
get to newspaper, while 0 of 20 respondents get to magazines.
Question no. Question Option No. of % of
customers customers
replied
09 What’s your Affordable by 15 75%
opinion on common man
price list of
ford cars?
Affordable by 4 20%
rich man
Cant say 1 5%
Total 20 100%

no of customers

common man
rich man
cant say

INTERPRETATION:
From the above analysis we can conclude that out of 20 respondents 15 thinks
that it is a common man car, 4 of them thinks that it is only affordable by rich
man while 1 respondent remains confussed.
Question no. Question Options No. of % of
customers customers
10 What kind of Free 5 25%
offers do you insurance
like or expect
from the
dealer?
Special 10 50%
discounts
Extended 2 10%
service
warrenty
Finance with 3 15%
low % of
interest
Total 20 100%

no of customers

free insurance
special discounts
extended service warrenty
finance with low % of int

INTERPRETENTION:
From the above data analysis we can conclude that out of 20 respondents 5
needs free insurance, 10 of them wants special discounts,2 wants special
discounts and 2 of them wants finanace with low % of interest.