Marketing and Digital Future - Ford Motor Company

Abstract

This report will indulge the theoretical underpinnings, strategies and tactics of marketing, strategies in order to develop a digital marketing strategy for Ford Motor Company UK. The main objective of this report would be to increase sales of Ford branded automobiles in the UK over the next 24 months. This will result in,
• An increase in Ford sales within the next 2 years
• Brand awareness of Ford’s BEV (Battery Electric Vehicle)
• Public awareness of Ford’s Eco-friendly automobiles.
The key areas, Segmentation, Targeting, Positioning and Digital Market Mix would be covered by this digital marketing plan of Ford.

Full text

1. Introduction
1.1 Ford Motor Company UK
Ford Motor Company is known as the 5th largest automobile manufacturer in the world and the
biggest motor company in the UK that has over 550 authorizations and seven locations. Ford
in Britain holds one of the Europe’s largest car plants (Ford in Britain, 2011). Ford holds an
Annual revenue of $160.33 billion and a Market capitalization of $33.46 billion (Parker, 2019).
1.2 Project Objectives
This report will indulge the theoretical underpinnings, strategies and tactics of marketing,
strategies in order to develop a digital marketing strategy for Ford Motor Company UK. The
main objective of this report would be to increase sales of Ford branded automobiles in the UK
over the next 24 months. This will result in,
• An increase in Ford sales within the next 2 years
• Brand awareness of Ford’s BEV (Battery Electric Vehicle)
• Public awareness of Ford’s Eco-friendly automobiles.
The key areas, Segmentation, Targeting, Positioning and Digital Market Mix would be covered
by this digital marketing plan of Ford.
Figure 1 : Key Facts about Ford Motor
Company.

2. Market Research
2.1. External and Internal market analysis
2.1.1. Fuel Market and Market Share
According to the (Department,
2020), Ford held a higher potion
(10.1%) of the United Kingdom’s car
market and in 2019 Ford Fiesta was
known as the best selling (77,833
units) car model in the UK.
Figure 2 : Year to date Fuel Market of the UK
Figure 3 : Ford's UK Market Share
Figure 4 : Leading 10 car models in
the UK in 2019

2.1.2. BEV Market Competition
Company
BEV
Competition summary
Ford
yes
Produce 5000 – 10,000 BEVs annually.
BMV
yes
Produce 500 MINI-Es. Direct competition for
Ford’s BEVs.
Audi
yes
Limited, minor production. Direct competition
for Ford’s BEVs
Chrysler
yes
Low production. Substitute competition for
Ford’s BEVs
Nissan
Yes
Serious production of LEAF. Significantly direct
competition for Ford’s BEVs.
Volkswagen
Yes
Unknown production output objects. Likely
significant competition for Ford’s BEVs.
Th!nk
Yes
Company experiencing serious issues
(bankruptcy).
Mitsubishi
No
No public attention in BEVs. Currently investing
on hybrid vehicles.
Fisker
No
Focused on plug-in hybrid vehicles.
(Ford SMART Mobility. Digital Marketing Strategy)
2.1.3. SWOT Analysis
SWOT analysis of Ford Motor Company Britain (Rodrigo, 2012).
Strengths of Ford
Weakness of Ford
Solid brand awareness
Sales weakening
Good reputation amongst clients
Limited profit and revenue due to
dependence
Loyal customers
Weak financial management
Effective online marketing
Extremely large accountability
Innovative and strong business ideas

Opportunities of Ford
Threats of Ford
Ability to reduce debts
Fierce competition in the market
Solid BEV market
High raw material price
Eco-friendly automobiles
High unprocessed materials
Digital marketing
Rapid changes in the automobile industry
Increase customer awareness
Economical uncertainties
2.1.4. PEST Analysis
Political Factors :
The imminent exit of the UK from Brexit. This can act as a negative point in importing parts
from car plants like German Ford Werke Saarlouis, Spain Ford Almussafes and so on due to
regeocentric rules and regulations. The government of UK and stakeholders of Ford can have
influence over the company policies. Regional and political relations, Labour unions, Fuel trade
flows and the UK government rules and regulations are some political factors that are to be
considered when building a digital marketing strategy (Fei Xiao, 2012).
Economical Factors :
Growth of sales and Ford foreign markets, eg: Turkey and Hungary markets. National income
of the Ford Britain workers and the UK energy can be included in this. Budgetary and
marketing plans can be affected by economic crisis (Todd Bailey, 2016). Inflation rates have a
major impact on the automotive industry where as it can lead the company into bankruptcy
[closure of UK Ford Bridgend car plant (Jolly, 2019)].
Social Factors :
Enhancement of demand for BEV automobiles can be taken as an opportunity for Ford UK.
Consumer attitude, travel habits of the consumer, demographic changes are few social factors
that can be revealed by the customer (Anastasia Christodoulou, 2019). Economical levels of
the society can be determined by the social factors, as an example: person with a high salary
will purchase a luxury and an expensive automobile, whereas another person will purchase a
vehicle that will fit his/ her salary level.

Technological Factors :
Technology is the main factor that assists the automobile industry (Kumar, 2016). The
revolution of vehicle (liquid fuel to hybrid, hybrid to electric) has taken place due to day by
day advancement of technology. Technology supports sectors like Marketing, supply chain
management and IT in an organization as to achieve the company goal and in gaining a
competitive edge. By using the technology automobile companies can introduce safer, fuel
efficient and well accessorized automobiles to the growing market (Ed Zielonka, 2012).
3. STP
3.1. Ford Market Segmentation
Geographic Segmentation
Countries like UK should consider about their geographical aspects like nations, regions,
weather and so on when it comes to the market segmentation (Timothy J. Sturgeon, 2010).
Most of the customers consider about the fuel consumption and the impact to the environment
when purchasing a vehicle. Therefore, when it comes to BEV (Battery Electric Vehicles) it’s
better to focus on the eco-friendliness towards the environment and target the upper-class levels
of the UK (Market segmentation example for cars)
Demographic Segmentation
Based on the UK market Ford can target
capital cities where customers earn a high
salary and where their dealerships have been
deliberately placed in order to take full
advantage of the targeted customers
(Structure of UK car market, 2016).
According to (Driver Gender, 2020), 81% of
males and 70% of females hold UK driving
licenses.
Figure 5 : Demographic characteristics of UK

Ford focuses on ladies, young generation and on people
with average income. Also, it is beneficial for Ford if they make
aware the young people of UK about their Eco-friendly
automobiles (Benjamin K. Sovacoolab, 2018).
Psychographic Segmentation
Psychographic segmentation depends on consumer’s personality characteristics and social
class. It can be categorized under consistency, interior space and robustness (Elizabeth, 2020).
Ford Fiesta was known as the most selling model in the UK, it is due to the reasonable price of
Ford Fiesta. The new battery electric Ford Mustang Mach-E models are being targeted at the
rich social class.
Behavioral Segmentation
Behavioral segmentation can be determined on the consumer’s attitude, knowledge, usage rate
and so on. In addition to these, it assists in determining the consumer loyalty. According to
DDB research conducted by (Structure of UK car market, 2016) 28% of Ford’s consumers
purchase the same product of ford due to its safety, interior space, and low fuel consumption.
Ford seeking to obtain rewards from their customers assists them in successfully targeting the
customers whom they are focused on (Arnomataarnoh, 2014).
3.2. Ford Market targeting
Market targeting assists in developing the brand name, products and services (Newberry,
2018). According to the market segmentation, its best for Ford to target FORD FIESTA and
Ford Battery Electrics automobiles due to its niche market. It demonstrates a high sale in Ford
Fiesta as 18 – 25-year-old ladies and teenagers are targeted to this model.
Where as it can be the eco-friendliness of battery electric vehicles of Ford (no
environmental pollution caused). Most of the customers consider about the fuel consumption
and the impact to the environment before purchasing a vehicle. Therefore, Ford can target on
this crowd as well. As to the market segments, Ford Motor Company can target on the luxury
vehicle buyers who has a high income, high social class and high personality. These customers

would love to purchase Ford’s luxury automobiles like, Ford Lincoln, Ford Mustang Mach-E
and Ford Mustang,
3.3. Ford Market Positioning
According to (Meade, 2017), pricing policies and manufacture ranges are the two things that
has to be considered in product positioning. Based on Ford market segmenting and positioning,
Ford’s battery electric vehicles (BEVs) and Ford’s eco-friendly automobiles can be positioned
according to the pricing strategies, high-technology that has been used to manufacture and as
to the minds of the target customers.
Ford’s automobiles signify high quality, low price, attractive and eco-friendly
alternatives. Positioning depicts various customers interests, needs and wants in a vehicle
where the company tries the best to achieve those customer expectations.
4. Marketing Mix
4.1. Product and Price Strategy
Product Strategy
Product is anything tangible or intangible that can be purchased from the market. Under
product strategy, branding, designing and
features can be taken. When it comes to branding,
the “Centennial Blue Oval” of Ford (History of
the Ford Logo (Blue Oval)) determines the price
and value. The product designing of Ford battery
electric vehicles contains a kinetic design that
ensures the comfortability of the passenger. Ford
eco-friendly automobiles and BEVs contain
many features like, electronic stability programs
with traction control systems, fuel efficiency, 6-speed power shift automatic
transmissions, seductive centre consoles and so on (Company).
Figure 6 : “Centennial Blue Oval” of Ford

Pricing Strategy
Ford Motor Company has used new
pricing strategies called “Blue Tag”.
As an example, the pricing of ford
Fiesta differs between 6% - 15%.
Penetration pricing and Price
skimming are the two known pricing
strategies that are being followed by
the Ford (Letha, 2013).
The customers of ford
expect excellent features and quality performance in BEVs for affordable prices (Cao, 2014).
The estimated price of brand-new Ford BEVs will range from £35,160 (Company, SELECT
YOUR MODEL).
5. Digital Market Mix
5.1. Digital Marketing Communication Mix
Advertising Strategy
Advertising is the main digital method of increasing the sales, brand awareness and public
awareness of eco-friendly automobiles. Ford can invest on Pay-Per-Click advertisements,
display advertisements and on social media advertisements.
Public Relations Strategy
Public relation is a good method of building a good brand image on Ford. Public relations can
be done by using the help of employees, stakeholders, customers and general public through
blogs, reviews, influencing media ownerships and by propagating a “big idea”
Sales Promotion Strategy
Digital promotions like online competitions, digital coupons, e-mailing special offers, online
forums and SEO sales promotions can be used in order to promote products digitally. Ford can
categorize the segmented market into different promotion offers like standard offers, premium
offers and so on. This can be done digitally as well through the Ford Motor Company website.
Figure 7 : Ford "Blue Tag"

5.2. POE (Paid, Owned and Earned Media)
Paid media is a way to promote the content of a product or service. It assists in driving
customers/ clients to the earned medias and in gaining traffic to owned medias (Harrison).
Using paying advertisement on Face Book, LinkedIn, Instagram Ford Motor Company can
boost their websites and social media sites.
Owned media is any web property that is owned and under control of the organization (Eg:
Face Book, Twitter, LinkedIn). The more web properties that Ford own, helps in enhancing the
brand throughout the digital sphere (Belden, 2014).
According to (Salsberg, 2010), Earned media is where customer seeks about the product
reviews, shares, recommendations and so on. Depending on SEO and brand content it becomes
a strong organic ranking. Earned media assists in determining Ford’s unique and quality
products.
Figure 8 : Paid, Owned
and Earned Media

6. Digital Marketing Plan Implementation
The objectives of this report are to increase brand awareness of Ford’s BEV and to make the
public aware of Ford eco-friendly automobiles. The main objective is to increase Ford sales
over the next 24 months.
Step 01 :
The first step, would be to provide digital clues/ hints on Ford’s Battery Electric vehicles
(BEVs) and eco-friendly automobiles. For this Ford can use their web/ social media properties
as it has already targeted a particular customer markets according to the segmentations.
• Digital videos
• Advertisements and
• Blogs can be used in providing clues to the targeted market by using main online
platforms like, Face Book, LinkedIn, Instagram and YouTube.
The content of online videos, blogs and ads should definitely include about eco-friendliness,
investments and technologies used in order to depict the quality and uniqueness of Ford’s
products. These advertisements (Pay-Per-clicks, TV ads, Search Engine Marketing, SEO,
Google ads and so on), videos and blogs can be
categorized under paid media.
This process of hinting the customers on eco-friendliness and BEVs can be carried out for 5
months as to make them curious about what these online/ digital advertisements, blogs and
videos are about.
Figure 10 : Ford's advertisement on eco-friendliness
Figure 9 : Ford's advertisement on BEV technology

Step 02 :
The second step is to introduce or tell the customers what the above-mentioned advertisement
clues and hints are related to. Through digital advertisements on eco-friendly automobiles and
BEVs of Ford, it is easy to target the customers who are about to purchase a Ford, who are
expecting or planning to own a Ford and the rich society of the market according to Ford’s
geographic, demographic and psychographic segmentations.
Public relations can be used in this step. Ford can implement innovative digital advertisements
and videos by using celebrities. Celebrities like Leonardo DiCaprio, Nick Jonas, George
Clooney and Sean Penn are few of famous celebrities those who own a Ford. These digital
advertisements and videos can include about their (celebrity’s) interest on Ford, uniqueness,
safety, quality, performance and eco-friendliness of Ford’s automobiles and BEVs.
Paid partnership advertisements can be aided through stakeholder and supplier sponsorships
and can be advertised on social media channels (Face Book, LinkedIn, Instagram and Tweeter)
and on Ford websites.
In addition to advertising, Ford can use social media campaigns. By using high creative
themed advertising campaigns, the 18 – 25 years old ladies and teenagers and middle classed
families can be targeted. Face Book campaigns, Instagram campaigns and various other social
media campaigns can be used. It’ll assist Ford in delivering the needed message to their
customers and in attracting new customers as well. This process can be carried out for 5 months
as to confirm about the targeted market.
Figure 12 : Paid partnership advertisement with Dwayne Johnson
Figure 11 : Paid partnership advertisement with
Game of Thrones (GOT)

Step 03 :
The third step is about promoting Ford’s environmental-friendly automobiles and BEVs by
using
• customer feedbacks
• sharing
• reviews
• blogs
• recommendations.
This assists Ford in attracting the targeted market and in focusing on new customers. This can
be categorized under earned media and it’ll boost visitors to Ford’s owned media channels like,
Ford website, Face Book page, YouTube page, Tweeter, Instagram and so on.
Figure 13 : Ford social media campaigns
Figure 14 : Customer feedbacks

By using earned
media (sharing,
reviews, mentions)
Ford can persuade their
focused customers to
purchase their quality
products. Ford can
advertise the customer
reviews,
recommendations and
positive feedbacks on social media channels (FB, Tweeter) in order to attract a new segment
of customers.
This process can be continued for 6 months.
Step 04 :
In the final and fourth step, Ford can give the opportunity to customers to experience their
services and products in direct marketing and online virtual direct marketing. In face-to-face
marketing, Ford can use their own stores as showrooms and their showrooms by including free
snacks, beverages and high-speed internal facilities to customers.
Here, the Ford customers have the ability to experience virtual showrooms and virtual test
drives. Ford can implement an
application for their customers
on their virtual showrooms.
Figure 15 : Ford's customer reaction
Figure 16 : Virtual test drives

Letting customers experience in differentiated buying will attract more new customers and by
allowing Ford to carry a new concept like “Drive different” will assist them in allowing
customers to purchase their eco-friendly automobiles and BEVs.
Ford can advertise
these customer
experiences on social
media channels,
websites and e-mail
marketing. By making
clients curious to
experience such
differentiated buying
can attract and
persuade customers to
purchase Ford’s
products.
The rest of the time
period (10 months)
can used to increase
Figure 17 : Virtual showroom sales and attract customers.
By using digital marketing plan Ford mainly has the ability to enhance their sales within 24
months and to make their customers aware about Ford’s BEVs (Battery Electric Vehicles) and
their eco-friendly automobiles.
Budget
Allocation

7. Conclusion
In conclusion, this Marketing and Digital Future report has stated that, by using Marketing
strategies like SWOT and PEST analysis, STP (Segmentation, Targeting and Positioning) and
Marketing Mix (including digital marketing mix) one can build a successful digital marketing
plan that meets the organizational goal.
Therefore, by using those it was possible to implement a digital marketing plan for Ford Motor
Company, UK that assists them in enhancing their sales within the next 2 years, brand
awareness of Ford’s BEV (Battery Electric Vehicle) and public awareness of Ford’s Eco-
friendly automobiles.
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