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Essay/Term paper: Ford motor company

Essay, term paper, research paper:  Economics

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Ford Motor Company

Ford Motor Company is the world's largest producer of trucks, and the second
largest producer of cars and trucks combined. Ford has manufacturing, assembly
or sales affiliates in 34 countries and Ford companies employed 337,800 people
world-wide in 1996.

Ford has manufacturing facilities in 22 countries on 5 continents, with 87
plants in North America and 41 in Europe. In Europe, in 1995, Ford's combined
vehicle market share, at 12.2%, was the highest for eleven years, with three of
the eight best-selling cars. In 1995, in the United States, five of the ten top-
selling vehicles were Ford, including the best-selling car (Ford Taurus) and
best-selling truck (F-series).

On January 1, 1995, Ford merged its North American Automotive Operations and its
European Automotive Operations into a single organization, Ford Automotive
Operations. Instead of being organized by geographic regions, the Company is now
realigned by product line, with five Vehicle Centers, each responsible for one
group of products worldwide. At the same time, Ford is reducing the time taken
to develop a new vehicle from 48 to 24 months and reducing engines,
transmissions, and basic vehicle platforms by 30% worldwide. Ford hopes that by
pooling global skills and resources will result in more variations on each
vehicle platform, increasing the number of vehicles introduced over the next
five years by 50%.

One of the key strategies behind the realignment has been growth. Ford has
launched a variety of new initiatives throughout the world, with joint ventures
for the assembly of vehicles in countries as diverse as China, India, Thailand
and Vietnam. In China, Ford expects to begin production of light trucks with a
company named Jiangling Motors in the near future. In India, Mahindra Ford India
Ltd. will begin manufacture and distribution of Ford products, beginning with
the Ford Escort, in mid-1996 and Fiesta in 1998. In Thailand, Ford has a joint
venture to produce pick-up trucks and in Vietnam, Ford plans to build a vehicle
assembly plant at Hanoi, together with partners Song Cong Diesel. In Poland, the
Plonsk plant has begun to build Escorts and Transits.

Joint ventures are establishing a presence for Ford all over the globe. Ford is
working with two companies in Korea, one to supply automotive air conditioning
units and the second as a new joint venture to produce electronic components
later this year. In addition to the 20% of Jiangling Motors, China, acquired by
Ford in 1995, four further manufacturing joint ventures in China have been set
up to produce radiators, glass, plastic and electronic components. Ford has also
acquired a 45% equity in South African company, Samcor, for the assembly of Ford

The sale of Ford vehicles in markets all over the world carries the Ford badge
into more places than ever before. The European Mondeo is currently on sale in
52 countries, with sister cars, the US Ford Contour and Mercury Mystique,
bringing the total up to 78. (Ford Fiesta is currently on sale in 42 world

Ford Motor Company was founded in 1903 and within ten years had vehicles on sale
throughout Europe, South America and Asia. The Company's first European sales
branch was opened in France in 1908 and the first regional company and assembly
plant outside North America were established in Britain in 1911. Ford of Europe
Incorporated was established in 1967, bringing together the various nations
within Europe as one organization - an important step towards the single
worldwide organization that Ford will have become by the turn of the century.

The Ford Taurus has proven to be one of Ford's most successful models. It has
been the car of choice for those who want functional, affordable and stylish
transportation. The Taurus SHO also offers performance for those who seek extra
driving excitement from their sedan. The Taurus has a heritage of staying at
the sales forefront by meeting the needs of family-oriented customers.

Advertisement #1

This advertisement was found in Smart Money magazine. Smart Money is "The Wall
Street Journal of Personal Business". It is targeted at individuals who seek
financial security and/or financial independence. Many of the articles in this
magazine are on the subject of money management (i.e., car buying/leasing tips)
and investment opportunities. The average reader of this magazine pays close
attention to their monetary affairs and look for good buys and quality products.
Ford used this article to appeal to these readers emotional and rational buying

This Ford advertisement message is "Quality Service" which is designed to appeal
to the readers rational buying behaviors. Consumers not only want a quality
vehicles, but need to be assured they can receive quality care and service for
their car. Ford is saying once you've purchase a Ford vehicle, you can be
assured of receiving the best service from highly trained technicians who use
high-tech equipment for the modern electronics in today's cars.

The ad also is designed to appeal to our more irrational buying behaviors. In
the center of the ad is a reflection of a mother and daughter peering through
the rear view mirror of a Ford vehicle. Smart Money's primary reading audience
is men and this ad attempts to strike at the male reader's concern for their
families safety. If your wife drives around in a Ford Taurus with the children
in the back seat, don't you want to be assured the car is cared for and
maintained to ensure their safety? At the top of the ad is a picture of a home,
with the words "Come Home" in bold letters. Ford is conveying the message that
you can belong to the "Ford family" and be assured of Quality Care for any type
of maintenance or repair. It's like having a mechanic in the family!

Ford not only has the most highly trained technicians, but these technicians are
equipped with "high-tech equipment" (and we know how much men love their high-
tech equipment!) needed to maintain the modern electronics found in cars today.
In other words, if you buy a Ford, not only can you be assured of quality
service, but your also buying a car that's technologically advanced.

In the upper-right hand corner of the ad, Ford has placed a picture of the
reader on the gas pump with the words "Happy?" on the display. Ford is saying
that their quality standards were developed to ensure you, as the customer, will
be happy when you pick up your car after of day of being serviced by their
service technicians…because you deserve it.

In the lower right hand corner, the ad is demonstrating their personalized
service. You'll be greeted by a Service Advisor. The title alone makes you
feel that he or she will be someone who will be knowledgeable and assures you
that your car will be in good hands. The lower left hand of the ad shows a
wrench wrapped around a computer chip. Ford is effective is showing that todays
cars have changed. They are built with modern electronics, and therefore,
require high skilled technicians and tools to service them.

The overall layout of the ad centers around the rear view mirror. When you
first look at the ad, you are drawn to the rear view mirror. It is the largest
picture in the ad and it is centered on the page with the text "Look at you car
in a whole new way" just below it in large bold lettering. With this layout,
Ford is first appealing to the readers irrational buying habits. Ford is saying
don't just look us as a car manufacturer who provides a means of transportation
for your family. Our "Quality Care Standards" provided by our service
department make sure your car is safe and reliable for your family.

Advertisement #2

This advertisement was found in Car and Driver magazine. Car and Driver's
primary reading audience is male. The ad was a two page ad which was placed one
page past the table of contents in the magazine and is an advertisement for
Ford's new anti-theft device. Ford is appealing to the readers rational buyer
habits by directing the ad at safety and security. There is a picture of a Ford
vehicle surrounded by Doberman Pinschers standing at attention. Doberman
Pinschers are loyal, dependable and intelligent protectors. They serve as watch
dogs and protectors of homes and are often trained by the police and military as
guard dogs and war dogs. Ford's message is that by owning a ford vehicle with
their new anti-theft key, it is just like having a pack of Dobermans surrounding
your car for protection. Ford is clever in their use of these dogs. The dogs
are not simply sitting or lying around the car, they are all standing
attentively and waiting for someone to approach.

At the top of the ad Ford has included the following text in large bold text:
"A simple yet accurate demonstration of how our anit-theft key works." The
words "simple", "accurate" and "anti-theft key" appear in a font larger than
the rest of the text in order to make them stand out. Ford wants the consumer
to know that their anti-theft device is not complicated. It is easy to use, but
it is also very accurate. When you look at the add the phrase "simple, accurate
anti-theft key" jumps out at you even though what the sentence is really saying
is "here's a demonstration of how the device works". The reader receives two
messages from the same sentence.

At the bottom of the advertisement there is additional text in a much smaller
font. In the first sentence: "Finally, there's a car protection device whose
bite is worse than its bark.", Ford is telling the consumer that their anti-
theft device is effective. It's not just a deterrent, it is true protection for
your car. In the next couple of sentences, Ford mentions the "remarkable
computer chip" that is at the heart of their anti-theft device. It conveys the
message that Ford is a technologically advanced manufacturer who is concerned
with providing the best quality products for their consumers. And finally, in
the last two sentences the ad says: "Because we believe your car should always
be there for you. Like a best friend." Here Ford is saying…just like the
Dobermans who represent man's best friend, our new anti-theft device will also
be there for you protecting your car.

If you stand back and look at the block of text at the bottom of the page, the
"WORLD", "CUSTOMERS" are in all capital letters to make them stand out. Ford
wants the consumer to focus on what they feel is important. The WORLD-wide FORD
device which uses a distinct ELECTRONIC SIGNAL.

Although this ad was not for a specific Ford car model, it portrayed Ford as a
manufacturer of quality cars with luxury. The car portrayed in the ad had
stylish wheels and was painted a pleasing golden metallic color. The car was
then displayed on a white carpet. Also, the font used for the text appeared to
be a Times New Roman which has a more elegant appearance than a block text font.
The bottom right hand corner displayed Ford's quality logo in large bold
lettering: "QUALITY IS JOB 1" to further emphasize Ford's commitment to quality.

Advertisement #3

This advertisement was found in Cosmopolitan magazine. Cosmopolitan is
primarily read by woman between the ages of 18 and 35. The two-page Ford
advertisement in this issue of Cosmo was placed several pages past the table of
contents and was for their Escort model. Overall, the ad was very unstructured
and portrayed the Escort as a "fun" car. The car is portrayed as "fun" through
the use of bright colors in the ad. Some of the text appears in red, some in
blue, some in grean and finally some in black. There are many different fonts
used in the add as well. Each word or phrase appears in a different color, size
and font. The word "NEW" appears with a green background and white lettering
and an a green arrow leads you to the word "STYLE" which appears in blue Times
New Roman font. From this the consumer is given the message "new style" even
though this doesn't appear as one phrase in the ad.

This ad was designed specifically to appeal to Cosmo's reading audience. This is
demonstrated by the fact they use a young woman to represent the Escort car
owner. This young woman appears wearing a graduation cap sitting on top of her
Ford Escort. The new car appears to have been her graduation gift. On the left
hand page of the ad, the young woman is shown again. This time, however, she
appears with her hand on her face with an expression of awe or amazement as she
looks at the "new AM/FM stereo with premium speakers" in the new Escort. The
color, green, Ford chose for the Escort in this ad is also significant. Ford
had consulted with a psychologist who bases his product color advice on the
theory that certain colors and shades appeal to woman more than men. This
psychologist concluded that woman prefer cooler colors shades and Ford has used
the recommendations provided by this consultant.

On the top right-hand page of the ad there is a picture of the upper body of a
muscular man holding himself in a handstand on top of the "T" in the word
"BUILT". This portrays the image of Escort as a well built vehicle, thereby
appealing to the buyers rational buying behaviors.

On each page of the add there appears a phrase that is written in rolling
letters which further portrays the image of the Escort as a young, fun car. The
message in these phrases appeal to both the buyers rational and emotional buying
behaviors. The first phrase reads: "It's new and it's smart with a story to
tell." and the second phrase reads: "It's priced really nice and it's built
oh-so well.". The first phrase appeals to consumers emotional buying behaviors
by portraying the Escort as a stylish, fun car. The second phrase appeals to
the buyers rational buying behaviors. It portrays the Escort an affordable,
durable, quality vehicle.

The add continues to target the buyers rational buying by listing features of
the product such as "Improved safety cell construction" and "Standard dual air
bags". Ford also hangs a price tag of $11,430 from the Escort name associating
Escort with a reasonable price. Also, in the left hand lower corner of the ad,
the "Ford Credit' logo is displayed. Ford included it here because their target
audience in this magazine is younger and recognize they are likely to need
financial assistance in their purchase.

Advertisement #4

This advertisement for the Ford Taurus SHO was found in Smart Money magazine.
This ad appeals primarily to the buyers emotional buying behaviors. The top of
the add has the following text: "High-Performance Praise. Full-Throttle
Accolades." These two phrases are intended to appeal to a drivers desire for
a high performance vehicle. Just below the text there is a picture of a red SHO
with bright alloy wheels rounding a corner. The SHO is given the appearance of
going at a very high speed because the car is somewhat blurred and the
background is also blurred. Ford has targeted this advertisement at Smart
Money's male readers who may have a family, but also have a love for fast cars.
Ford has used a hot, red, sporty looking Taurus SHO. Ford uses bright red
sporty vehicles when targeting male consumers.

Below the picture of the SHO are quotes from various reviews that have been done
on the car. Obviously, all of the reviews were positive and Ford uses them to
convey the message that the SHO is not only a fast sports car, but is also
reasonably priced, and a great family car too.

The first quote is from Automobile Magazine. Their quote starts out by talking
about how fast the car is and how well it handles. They then go on to say:
"And it sure doesn't cost much, does it?" Through this one quote, the SHO is
portrayed as a reasonably priced, fast car which is both sporty and luxurious.
Road and Track go on to tout the SHO's fast engine quoting engine specifications
which are intended to appeal to the consumers rational buying behaviors as well
as their emotional buying behaviors. It's a quality engine that "makes 235 BHP
with little strain".

The Car and Driver quote concentrates on the fact that the SHO is not only a
sports car, but it is also a refined luxury car at a fair price. AutoWeek, on
the other hand, is appealing the consumer's concern for safety as well as their
love for speed. "Back-road passing is never a concern, and escaping the truck
races on the interstate takes just a touch of the toe". In other words, you
NEED to have the power of an SHO to allow you to pass safely on the back roads
and to stay away from the truck races on the highway…with just a touch of the

And finally, USA Today's quote appeals to the family man who loves a sporty,
fast car, but wants a vehicle large enough to cart around the whole family.

Advertisement #5

This advertisement was found in Cooking Light magazine on the inside of the
front cover. This magazine's reading audience is primarily females and this ad
is directed at them. The advertisement is for the Ford Taurus Wagon and
consists of a two page picture of the wagon in a light blue color. This cool
blue color was chosen to appeal to the female reader audience that Cooking Light

Through this advertisement, Ford tries to leverage the reputation of their "best
selling sedan" to promote their Taurus Wagon. At the top of the advertisement
Ford included the following phrase: "Everything you like about Taurus Sedan.
And then some." In other words, the Wagon has all the features you loved about
our best selling sedan, but it offers more room for your whole family and all
the things they can't leave home without. The photo of the Taurus wagon is
taken from behind, but at an angle. This allows the consumer to see that it is
in fact a station wagon, but it shares many of the same lines and features of
the Taurus Sedan.

At the bottom of the advertisement, Ford includes a couple of paragraphs of text.
The message Ford is conveying appeals to the readers rational buying behaviors
by pointing out the Wagon's safety and security features. Most of the buyers of
these vehicles are families and Ford recognizes their concern for the safety of
themselves and their children. They have intentionally capitalized the phrase
can feel safe with its dual air bags, anti-lock brakes and remote keyless entry.
Also, if you happen to be on the road and run into car trouble, Ford's roadside
assistance is simply a phone call away. Also embedded in the text of the ad,
Ford mentions the Wagon's handling abilities, sleek lines and curved angles…just
like the Ford Taurus. By comparing the handling and looks of this car, Ford is
appealing to the consumer's love for a car that's not only appealing to look at,
but also fun to drive.


The underlying theme or message carried throughout all of Ford's ad has been
Quality and Safety. Ford, as a company, has devoted a significant amount of
time and money in improving quality within their operations as well as their
products. They recognized the foreign car makers were perceived to be much more
technologically advanced and had achieved a level of quality that American car
makers had not. Ford also realized they were unable to keep up with the quickly
changing technologies and unable to meet the demand for new and innovative car
designs. By focusing on Quality, Ford is now able to react more quickly to
consumer demands because they can produce their product more efficiently without
sacrificing product standards.

Ford is very effective at targeting their advertisements for their viewing
audience. When developing advertisements for the Ford Probe, Ford consulted with
a psychologist who bases product color advice on the theory that certain colors
and shades appeal to woman more than men. Based on the recommendations offered
by the psychologist, Ford ran advertisements with hot red colored cars for men
and cooler colored cars for woman.

Through their advertisements, Ford is announcing that they have achieved a high
level of quality and their products are technologically advanced. They are
running advertisements which don't necessary focus on a specific make or model
of a Ford vehicle. They are running ads which tout their quality service and
high-tech anti-theft devices. Many of the advertisements which are run by Ford
are focused on promoting Ford as a company. When they do run ads to promote a
specific model, they still carry through each and every ad the common thread of
"Quality is Job 1".


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