2. 2
A. Company Background
History
In 1986, Henry Fordinventedthe firsteverQuadricycle,whichessentiallyusedfourbicycle
wheelsandwaspoweredbyafour-horsepowerengine.Although,there wasnoreverse gear.
("FordMotor CompanyTimeline")
In 1903, Ford had 12 investorsand1000 sharesin theirnewlyincorporatedbusiness.They
almostspentan entire 28,000 investmentbeforesellingtheirfirstModel A car onJuly23, 1903.
HowevertheyaccumulatedaprofitbyOctoberin1903 of 37,000. ("FordMotor Company
Timeline")
In 1904, Ford builtitsfirstinternationalplantinWalkersville; whichisnow knownasWindsor.
Witha separate organizationanddifferentshareholders,the companywascreatedtosell carsin
Europe;inadditiontoCanada. ("FordMotor CompanyTimeline")
Ford Motor Company’sfirstcar model tobe producedwasthe Model C in1904. Only117 car
were made inthe firstyear.Withinthe nextyeara Model B wasintroducedaswell asa Model F.
By 1906, Model N and K were introducedandthe previousModelswerediscontinued.
("Heritage Of FordCanada|Ford.Ca")
In 1908, Ford introducedit’s newestModel,The Model T,whichthe companysold15 million
unitsof before productionwasceased.Ithadbecome Ford’sbest-sellingcarof all time andis
consideredone of the mostfamouscars inthe world.("FordMotor CompanyTimeline")
In 1917, Ford had designedandbuiltitsfirsttruck.Basedonthe Model T car, the Model TT was
similarhoweverreinforcedandweightingone ton. ("FordMotorCompanyTimeline")
In 1922, Ford had acquiredownershipof Lincolnfromhisformerbusiness partnerHenryLeland.
Many luxurycars have beenproducedsince thenincludingthe Zephyr,K-seriesandthe
Continental.("FordMotorCompanyTimeline")
In 1925, Ford beganto produce Tri-Motorairplanes.Nicknamedthe “TinGoose”Fordsairplane
had become the firsttobe flown incommercial airlines. Thisinturn,the commercial airline
industrydeveloped. ("FordMotorCompanyTimeline")
In 1941, Jeepswere producedbyFordforthe U.S. Military.("FordMotorCompanyTimeline")
335,000 militaryvehicles were producedforWorldWar II defense.Majorityof the vehicleswere
trucks knownasCMP’s (CanadianMilitaryPattern).("Heritage of FordCanada|Ford.ca",2016)
3. 3
The ClassicT-Bird(Thunderbird) wasdevelopedandproducedin1954. Whichinsteadof
sportiness,itcontraststobe a more comfortable andconvenientvehicle.("FordMotor
CompanyTimeline")
In 1959, Ford introducedaline of creditforits dealersandbuyers.Forthe buyers,loansand
leaseswere offered.("FordMotorCompanyTimeline")
Fordsfastestsellingcar,The Mustang begansellingin1964. It featuredashortdeck,a long
hood,affordable pricingandcustomizable options.The Mustanghas beenfeaturedinmany
moviesandpop-culture makingitanicon of the ages.("FordMotor CompanyTimeline")
In 1965, Philco;a Ford ownedtechnological company,combinedwithFordengineerstocreate
the MissionControl Centre forNASA. TheirproductsservedassupportduringNASA’sApolloand
Gemini space missions.("FordMotorCompanyTimeline")
There onward,Fordcontinuedtoproducedand manufacture manymodelsof vehiclesincluding,
the Fiesta,Taurus,Escort, Explorer,Mondeo,Ranger,Navigator,andGT sportscars. By 2003,
Ford hadcelebratedits100th
anniversary andhadofferedlimitedproductionof 5of its vehicles
includingthe Model T,howeveronlyinblackof colour.("FordMotor CompanyTimeline")
From 2007- 2009, Ford releasedSync;ahand-free systemthatwasvoice activatedand
integratedwithyourmobiledevice tocontrol navigation,entertainmentandcalling.Fordalso
releasedThe EcoBoostline;aline of engineswithsubstantial powerandaidedfuel economy.
("FordMotor CompanyTimeline")
Size and Growth
Ford Motor Companyemploysatotal of 199,000 people at67 plantsworldwidewho
manufacture,design,finance,marketandservice all FordvehiclesandLincolnluxuryvehicles.
(FordMotor Company,2016)
Ford hadsoldapproximently6,635,000 vehiclesworldwide atwholesalein2015. Also,theyhave
a total of 11,971 distributers.10,727 sellingexclusivelyFordbrandvehicles,360 selling
exclusivelyLincolnbrandvehiclesand884 sellingacombinationof bothbrands.(FordMotor
Company,2016)
FordsMarket Share has decreasedsince 2012 where itwas at 15.2% whereasnow,in2015 their
marketshare is 14.7% ("MarketShare and Sales - Data - SustainabilityReport2014/15 - Ford
Motor Company",2016)
4. 4
Wholesale unitsaleswithinthe U.Shas increasedfrombeing5,668 in2012 to 6,323 in2015
("MarketShare and Sales - Data - SustainabilityReport2014/15 - Ford Motor Company",2016)
B. SegmentationChart
The followingchartoutlinestwosegmentsof FordMotor Companyconsumers:
Laborers Retirees
Demographic Males
20-50
Medium-HighIncome
Work highpaying
laborjobs
Single orMarried
No familyorsmall
family
Low-Mediumlevel
education
Male (Primarily) or
Female
50+
HigherIncome
Retired
Widowed orMarried
Medium- Highlevel
education
Geographic PrimarilyCanadaand
U.S
TypicallyRural butalso
Urban
PrimarilyCanadaand
U.S
Rural andUrban
Psychographic Fuel Efficeincy
Durabilityand
Strength
Willingtospendtop
dollarforluxury
vehicles(Lincoln)
Enjoystripsand
joyrides
Reliability
Behavioral Usage of Flatbedfor
work
Large cabbiesforwork
materialsormore
passengers
Show off and compare
withfellow males
Care aboutBrand
Take long car ridesfor
pleasure
Prefertodrive around
inluxury(Lincoln) or
fastvehicle (Mustang)
Care aboutBrand
PrimarySegmentforFordMotor Companyare Labor workingmaleswhoare mainlyin construction
and engineertype jobs. ThisgrouprequiresaDurable,StrongandFuel efficientvehicle;usuallya
Truck model orSUV. Theyuse theirvehicle dailyforworkand leisure.A Large flatbedandcabby
allowsformaximumcapacityof workmaterialsandadditional passengers.Theycare a lotabout
brand andhavingthe biggest,nicestlookingtrucktocompare withtheirfellow males.
Retireesare alsoa segmentforFordMotor Companyvehicles.Since theyare retired,mostof them
splurge andspendhighamountsforqualitycarssuch as Lincolnsandsports cars like aMustang. At
thispointintheirlives,theyjustwanttoenjoywhat’sleftandmake the bestof it.In thiscase,they
5. 5
enjoytakingroadtripsand longscenicdrivesintheirshinycars. Thisgroup alsocaresabout
branding.
C. The 4 P’s
Product
Ford providesavarietyof vehicle typesincluding,Cars,SUV’s,Trucks,VansandCUV’s
The type of cars Ford producesare typical motordrivencars, hybrids,andelectrical cars.
The chart belowcandepictbasicfeaturesof each.("New CarsfromFord| ResearchFuel
Economy,Performance,PricingandMore | Ford.ca",2016) ("Ford - Cars, SUVs,Trucks
& Crossovers|Ford Vehicles|The Official Site of FordVehicles|Ford.com",2016)
Hybrids
Models
C-Max
HybridSel
Fusion
HybridSe
MPG:
City/Hwy
50/44 52/49
L/100KM:
City/Hwy
5.6/6.4 5.4/5.7
Startingat $31,444 $28,699
Seatingfor 5 1-5
Electric
Models
C-Max
Engeri
Fusion
Energi Se
Focus
Electric
MPG:
City/Hwy
50/44 27/40 135/118
L/100KM:
City/Hwy
5.6/6.4 10.5/7 2.1/2.4
Startingat $31,999 $34,199 31,999
Seatingfor 5 1-5 5
Motor-run
Models
Fiesta Focus Fusion Mustang C-Max Taurus
MPG:
City/Hwy
33/43 30/42 27/40 21/34 50/44 22/32
L/100KM:
City/Hwy
8.5/6.5 9.3/6.7 10.5/7 13.6/8.4 5.6/6.4 13.1/8.7
Startingat $16,049 $17,199 $22,499 $26,398 $25,999 $30,999
Seatingfor 5 5 1-5 1-4 5 1-5
FordsSUV’s andCUV’s are convienent,verstatile andcapable.Withthe powertotow
and accelerationtoeasilymerge throughtrafficandhighways.("Ford - Cars,SUVs,
Trucks & Crossovers|Ford Vehicles|The Official Site of FordVehicles|Ford.com",
2016)
6. 6
Ford producesbothpersonal andcommercial use trucks.("Ford - Cars,SUVs, Trucks&
Crossovers|Ford Vehicles|The Official Site of FordVehicles|Ford.com",2016)
Ford alsoprovidesmanyoffersandservicesincluding:wintersafetypackages,owner
advantage rewards,warranteesonparts,andscheduledmaintenance.("FordService |
Our Offers&RequestanAppointment|Ford.ca",2016) ("FordService |Our Offers&
RequestanAppointment|Ford.ca",2016)
Price
In the followingchart, you can see the starting pricesfor all Ford vehicles.
Cars StartingPrice
Fiesta $16,049
Focus $17,199
Fusion $22,499
Mustang $26,398
C-Max $25,999
Taurus $30,999
CUV’sand SUV’s
Escape $23,699
Edge $31,349
Explorer $33,499
Flex $31,799
Expedition $52,148
TransitConnect $29,099
Trucks and Vans
F-150 $25,799
TransitConnect $27,299
SuperDuty $36,749
Transit $34,149
Commercial Truck $32,369
Alongwithcustomizableoptionsincludingpaint,chrome,tires,andinteriors;the price
on a vehicle canvary. ("FordVehicle Brochures,Apps,ManualsandGuides|Ford.ca",
2016)
7. 7
Place
Ford vehiclesare soldinNorthAmerica,SouthAmerica,Europe,MiddleEast& Africa,
and AsianPacific. (FordMotorCompany,2016)
Theyare soldat three differentdealerships:AnexclusivelyForddealership,an
exclusivelyLincolndealershipandaFordand Lincolncombineddealership. (FordMotor
Company,2016)
Its appearsinSouthAmericaandEurope,primarilyonlyFordvehiclesare beingsold
whereasinNorthAmerica,Middle East& AfricaandAsianPacificbothFord andLincolns
are beingpurchased. (FordMotorCompany,2016)
Promotion
Ford offers4 special programsforeligible customers:
The Our First RespondersAppreciationProgram –Firstresponderssuchas
police,firefighters,EMT’sand theirfamiliesreceive discountinhonorof their
servicestothiscountryand the people init. ("2016 FordF-150 | View Current
Incentives&Offers|Ford.com",2016)
The Study Hard,Drive Well Program – Collage studentsandgraduatesare
eligible toreceive $500 incentivesandbestpossible rates.("2016Ford F-150 |
ViewCurrentIncentives&Offers|Ford.com",2016)
Ford MobilityMattersProgram – Personswithdisabilitiesandthose whocare
for themare givenadaptabilitywithregardstoa vehicle purchase.Theymay
alsoreceive $1,000 reimbursementforequipment.("2016Ford F-150 | View
CurrentIncentives&Offers|Ford.com",2016)
MilitaryHonorProgram – Those whoserve andhave previouslyserved inthe
military alongwiththeirfamilies receive discountsaswell as$500 bonuscash if
eligible. ("2016Ford F-150 | View CurrentIncentives&Offers|Ford.com",
2016)
In 2014, Ford teamedupwithT-Mobile andofferedthose whopurchasedadevice from
T-Mobile a$25 Advantage RewardCardtowardsa Ford product. (Wood,Morrison&
Joakim,2014)
8. 8
References
2016 Ford F-150 | View CurrentIncentives& Offers| Ford.com.(2016). Ford.com.Retrieved25March
2016, fromhttp://www.ford.com/trucks/f150/incentives/
Ford - Cars,SUVs,Trucks& Crossovers|Ford Vehicles|The Official Site of Ford Vehicles| Ford.com.
(2016). Ford.ca.Retrieved25March 2016, fromhttp://www.ford.ca/new-suvs-
crossovers/?gnav=header-suvs
Ford - Cars,SUVs,Trucks& Crossovers|Ford Vehicles|The Official Site of Ford Vehicles| Ford.com.
(2016). Ford.ca.Retrieved25March 2016, fromhttp://www.ford.ca/new-hybrids-
evs/?gnav=header-cars
Ford - Cars,SUVs, Trucks& Crossovers|Ford Vehicles|The Official Site of Ford Vehicles| Ford.com.
(2016). Ford.ca.Retrieved25March 2016, fromhttp://www.ford.ca/new-trucks/?gnav=header-
trucks
Ford Motor Company,.(2016). Ford MotorCompany 2015 AnnualReport.Retrievedfrom
https://corporate.ford.com/content/dam/corporate/en/investors/reports-and-
filings/Annual%20Reports/2015-Annual-Report.pdf
Ford Service | Our Offers& Requestan Appointment|Ford.ca.(2016). Ford.ca.Retrieved25March
2016, fromhttp://www.ford.ca/service/ourOffers/?gnav=header-owners#page=ourServices-
fordService
Ford Service | Our Offers& Requestan Appointment|Ford.ca.(2016). Ford.ca.Retrieved25March
2016, fromhttp://www.ford.ca/service/ourOffers/?gnav=header-owners#page=ourOffers
Ford Vehicle Brochures,Apps,Manualsand Guides|Ford.ca.(2016). Ford.ca.Retrieved25March 2016,
fromhttp://www.ford.ca/brochures/?gnav=header-tools
Heritage of Ford Canada|Ford.ca.(2016). Ford.ca.Retrieved24March 2016, from
http://www.ford.ca/heritage/?gnav=footer-aboutford#page=preWarTrucks
MarketShareand Sales - Data - Sustainability Report2014/15 - Ford MotorCompany.
(2016).Corporate.ford.com.Retrieved24 March 2016, from
http://corporate.ford.com/microsites/sustainability-report-2014-15/strategy-financial-data-
market.html
NewCars fromFord | Research Fuel Economy,Performance,Pricing and More | Ford.ca.(2016).Ford.ca.
Retrieved25March 2016, fromhttp://www.ford.ca/new-cars/?gnav=header-cars