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History and business analysis of Ford

发布时间:2017-04-07
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Ford motor company manufactured Edsel during the model year of 1958, 1959, 1969. Ford Edsel is remembered by biggest failure in automotive history. The company announced the name of the Edsel in 1956 and publicity day was 4th of September (E day) in 1957. Misguide of advertising; not having nice design of a car as well as some unintelligent name of the car was helping people not to buy it. Moreover on late 1950s there was recession going on USA and ford Edsel was on market from last of 1957 and it was one of the expensive cars on that time. On three model year of ford Edsel ('58, '59 and '60) approximately 118,000

Edsel's were manufactured in the U.S. and Canada. Today, there are a few

thousand Edsel's on the road, with three- to six-thousand others in storage or in

various states of restoration. Technically it was a wrong car at wrong time. Aim of this report is research of the mistake of ford Edsel made and avoids the entire mistake for the new generation product of ABC limited.

The company expected to produce 200,00 units of the first year of ford Edsel. The amount of ford Edsel they sold it was only 64,000 units in their first year. Later in 1959 and 1960 ford launched Edsel model and sells fell even further which was respectively 44,891 and 2846.In order to develop the Edsel model ford invested approximately $250 million in 1958 dollar. Ford Company announced the end of the Edsel program on 19th November 1959. The company lost about 350 million U.S dollars after making total sales approximately 84.000 the value of the money on 2009 is 2.45 billion. Seven separate Edsel series were projected: Bermuda, Citation, Corsair, Pacer, Ranger, Roundup, and Villager. By the spring of 1957 the first dealership franchise agreements had already been signed. The 1958 goal was to sell 200,000 units. "The company expected to

sell a daily minimum of 400 Edsels through 1,200 dealers," says Gayle Warnock,

director of public relations for the Edsel's launch and author of The Edsel Affair. Good marketing procedure brings the success of product. Marketing process represent how people will be benificial by this product. When the marketing procees was bottom of the line of ford Edsel they could not make their target sell and they were ending up by closing ford Edsel after 3 years of launching their product.

Marketing problem of ford Edsel:

Market segmentation, market research, virtual production and quality metrics were among the practices pioneered by Edsel Ford also pioneered several business practices with the Edsel which is standard today's life. The marketing targeted young professional at the beginning of their careers. The advertising promoting was disappointed as customer got to know Edsel is coming just a month before when Edsel introducing to the market. The marketing operation was key factor when it was completely wrong. Edsel's pre-publicity was masked mystery. Company kept the car feature and appearance secret. Public was never allowed a clear view of any of the cars before the release date came through. Even though during the shipping time to dealers it was under covered and remained wrap on the dealer lots. It was one of the most unpleasant failures in automotive history, and a major icon of the 1950's.

Economic problem:

The most important reason of in the Edsel frailer is U.S.A was economically down on late 50s thats why car manufacturers was not introducing new models consumer was showing their interest to buy less expensive car when ford Edsel was one of the expensive car, and they were looking for more fuel efficient automobiles. When Edsel had the large engines that needed premium fuel and run less. 1958 was not really good time for automobile industry when Edsel looked expensive by comparison. They introduced more economic and smaller cars that can be affordable to newly restricted budget of a family.

Design problem:

It had so many problem of designing what people didn't like it on that time. A car would be recognizable from any direction but the first Edsel was difficult to recognise from far way the reason of its design. The car's front part bonnet and grille commanded most attention. A respected Edsel historian commented front part of this car looked like horse collar by having two head light and horizontal long grilled in the middle. Moreover some members of automotive commented on press conference that about the typical look of ford Edsel and it was not appreciative design to any consideration level. While another considered the front-end grille was less like a horse collar, and more like a toilet seat. The customer explanation later proved to be even worse. According to Bob Casey, curator of transportation at the Henry Ford Museum, this fact meant that the Edsel 'didn't quite fit into people's vision of a car. However another reason of its unpopularity is its name.

Ford Edsel car assigned as a over expensive car and optimism of the late fifties. Moreover it was indicating one of the biggest market disasters in history.

Marketing Research Development:

With a effective research it can be determined the requirement of the customer for product. Initially for the design of the next generation product of ABC limited can make a survey about the people opinion based on how they think about your next generation car should be. However they can make a target of a range of buyer what will help them to fix their prize. After marketing research they will able to know people budget range and the quality of the car. In addition the economic effect is very important as like when Edsel launched there was recession going on over U.S.A. After get a lesson from ford Edsel company should not launch the product on market when economic condition is poor. Market research will make company aware about the quality of the product according to customer value depending on the time limit and how it will be fit for purpose. For instance when ford Edsel launched it used huge fuel to run less mileage then buyer of the Edsel had to pay extra to get the fuel. In order to make customer happy and long term business plan ABC limited could do something like use less fuel run long mileage. However before launching the product company should introduce the product to the customer and how it is going to be beneficial to them. Advertising make a very important impact of the selling product the reason is a creative advertisement can get people attention easily. Advertisement represents a hidden war between competitors in the market. So this technique can show to customer how the product is best in the market and how it is different from the competitors.

Development of Design:

There were so many problems with ford Edsel. There was five percent of the problem was with its name. Product name always play an important role to sell the product to customer. Product name represent of a specific product or service. The way ford named their car as Edsel customer found it difficult if it was a car. To avoid this problem ABC limited will get a name which will specify the product and can give customer easy concept. By developing some model of the design then make a survey to make sure that customer was waiting for that product for long time. In addition this survey will help company to select a right model of the product. ABC Company will monitor the economic strategy and competitor as same thing never happened like ford Edsel. ABC limited will always have upto date economic strategy and competitor prize list. The reason of the economic news is if anything likes recession occur then the product will not launch on right time. If competitor has the same product on fewer prizes then it will not be right product for customer.

Conclusion:

In a nut shell of this report it can mention that ford made first and big mistake by naming the car Edsel. Edsel do not specify the car and customer found it difficulties when customer should not find any difficulties when they buy anything the reason is they are paying for the product. They should not launched the product on late 50s when country was economically down and people was looking for fuel efficient auto mobile whereas Edsel was not fuel efficient Car. Thats why they had to out of business by 1960. Marketing experts hold the Edsel up as a supreme example of the corporate culture's failure to understand American consumers.Ford Company will be more profitable if they launched a small car and fuel efficiency because it was the requirement for a customer on that time.

ABC Company will need to take all those aspect to prevent the problem Ford Company faced on 1957-1960.

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