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Date Submitted: 05/30/2011 10:00 PM
Detroit Cars Case Analysis
Discussion Group Two:
Dan Richards
Michael McAnulty
Harley Tuck Jr.
Alexander Case
MIS 311
Intro to Information Systems
Introduction
Ford Motor Company has always been considered one of the “Big 3” US auto manufacturers. Throughout the 1980s and continuing even today, foreign companies (especially Japanese companies) began aggressively competing in the U.S. with high quality, lower-cost automobiles. It was this influx of affordable, quality vehicles that left Ford struggling to compete as a quality vehicle manufacturer. Consumer's view of Ford's quality quickly diminished, earning the company the "F.O.R.D. (Found On Road Dead)" stigma. Ford felt that in order to continue to compete on a global scale, they must increase the economies scale available to them via standardized global design and production. This standardization would allow Ford to drastically reduce the development and production cycles for new automobiles. In turn, this allowed Ford to focus on vehicle quality. While vehicle quality has increased, Ford's reputation is still, somewhat, lacking. The purpose of this case analysis is to briefly explore ways to improve Ford's image as a high quality vehicle manufacturer.
Case Analysis
One way to improve Ford’s quality perception is to revamp their current marketing strategy. Since 2007, Ford has been focusing heavily on their “Swap your Ride” ad campaign. In the commercials, Mike Rowe from the Discovery channel’s “Dirty Jobs” encourages people to swap their Toyota Camry, Honda, or other non-Ford vehicle for a Ford Escape hybrid or Fusion. The incentive is a 0% APR and $1,000 cash back.
Alternative
Instead of trying to influence people to change brands based on incentives, Ford should instead focus on highlighting their improvements while differentiating their vehicles from the competition. With the help of statistical data and the right marketing mix, Ford can more effectively inform the American public of...