The Marketing Strategies of Ford Corporation and Toyota Motors

The Marketing Strategies of Ford Corporation and Toyota Motors
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Ford Corporation and Toyota Motors Company
Ford Corporation
Ford is one of the leading car manufacturers in the world, and its major brand names include Jaguar, Lincoln, Range Rover, and Land Rover. Since 1987, the company adopted a market strategy hinged on market expansion and growth through acquisitions and entrance into new markets. In 1979, Ford acquired Mazda, and ten years later bought Aston Martin and Hertz. These takeovers were followed by the acquisitions Kwik-Fit in the same year, Volvo in 1999, and Land Rover in 2000. In light of this trend, it is clear that Ford's market strengths lay in its financial ability to mount successful takeovers of rival brands as a means of penetrating into market niches. This strategy has helped Ford to establish a wide range of family brands, which increases its global market visibility.
The One Ford Plan Marketing Strategy
The One Ford Plan strategy is the company's current market approach, which consists of aggressive restructuring to cut costs and operate profitability in changing economic environments, accelerating development of new products to satisfy new consumer tastes and values, operating within a budget, and encouraging team work among its employees.
This market approach is designed to ensure that the company does not commit resources to risky and non-profitable ventures. It aims to strengthen its market presence by keeping in tandem with market demands and consumer preferences. One front where the company's marketing strategy aims to meet emerging consumer lifestyles is in environmental conservation and energy efficiency. Go-Further is the branding strategy that the company is using to ensure that it commits to consumer needs for fuel efficiency and lower carbon emissions.
The 21st century quest for environmental responsibility and energy efficiency has seen the company transform its marketing strategy to reflect emerging consumer needs. The company has been at the forefront of manufacturing hybrid cars to improve energy consumption efficiency and reduce carbon gas emissions. The entry of Toyota's pioneer hybrid car the Prius, as well as the introduction of the Chevy Volt by General Motors compelled Ford to respond with the C-Max hybrid car, which is fitted with a battery that can run the car at low speeds. Another model, the C-Max Energi, is projected to improve energy efficiency by running on battery for as long as 40 miles before the need to engage gas power. The strategy if offering two versions of hybrid energy efficient cars in the market is calculated to lower costs. The company's long term plan is to offer a model with "100 percent alternative drive-train and green image' (Roth, 2013). The focus on green image is informed by a rising consumer consciousness about the effects of carbon gas emissions on the environment. According to HIS Global Insight analyst Aaron Bragman, ‘"The Prius has shown everybody that the majority of buyers like to advertise the fact that they have chosen a hybrid car, and the best way to do that is to keep the car unique and dedicated to that" (qtd in Roth, 2013). Ford's Go-Further electrification technology is seen as responding to this market need. This involves the designing of Eco-boot engines that offer the performance of larger engine in a smaller (four-six-cylinder) engine. The downsizing of engine capacity without compromising power output has allowed the company to offer high performance cars with lower emissions and higher fuel economy, while keeping prices within a competitive range.
Safety Features
The focus on safety is one of the key components ingrained into Ford's marketing strategy. The company aims to assure its customers that it puts safety first by integrating auto-safety controls into the designing of cars. The Ford Focus, which is engineered to minimize occurrences of accidents and personal injuries, is one of the company's best-selling cars. In 2013, the car earned the highest possible safety rating from the Insurance Institute for Highway Safety by scoring high points for "occupant protection in four evaluations: moderate overlap frontal crash, side impact, rollover, and seats/head restraints" (Mich, 2013). Steve Kenner, Ford's global director of Automotive Safety Office, responded to the rating that by emphasizing that "Ford is committed to designing vehicles that help keep people safe, and we are constantly seeking innovative ways to help drivers avoid accidents and keep occupants safe when an incident does occur" (qtd in Mich, 2013). The company's frequent recalls of vehicles with high rates of causing accidents from the market is an indication of how highly Ford regards road safety in its cars. This customer-centered approach has helped the company build good public relations by appearing to care for the safety need of its customers.
Expansion to Middle-Income Markets
Ford's biggest undoing for many years has been its limited range of products for low income markets. Most of the company's flagship brands like the Ranger Rover are beyond the reach of many middle and lower-income brackets families. However, the company is set to change the tide with the introduction of cheap models into Middle Eastern and African markets. The company intends to use the Ka, the cheapest and smallest car sold by Ford, to enter into emerging markets such as Brazil and China, where there is a big potential but families safe for a long time to buy their first car. Ford wants to be there when such families eventually amass the money needed to buy a vehicle. Ford's head of operations in North and South America, Joseph Hinrichs, emphasized the need for cars affordable to low earners. He stated that "If you're going to grow, especially in the growing emerging markets around the world, you need to have this entry-level family car" (qtd in Global Trade, 2014). Thus, Ford has recognized that there is a B-sub-segment in the global market whose purchasing power is far below the cost of most of its leading brand names (Seetharaman, 2013). The American automaker has struggled for a long time to penetrate into this market, which is currently experiencing significant economic growth and is the center of intensifying market competition. The unveiling of an economy-class car is therefore one of Ford's strategy of entering low-income markets as means of expanding its global market share.
Toyota
Toyota is a big rival to Ford both in the American market and globally when it comes to affordability and energy efficiency. The company's ride on the buzz of "Japanese efficiency" is a constant factor in Toyota...