Ford Motor Company Marketing Strategy in China
Ford Motor Company's primary marketing strategy has been squarely aimed at the American Male population. Rugged advertising themes, such as those of the Ford F-150 Pick-Up, and the Ford Explorer advertising campaigns are god illustrations of this strategy. While the F-150 and Explorer continue to be the number one selling vehicles in their class, Ford needs to tap new customers as the U.S. market is becoming increasingly saturated. The most logical and opportunistic place to develop this new market is Mainland China. With China's entry into the World Trade Organization in December 2001, meaning lower tariffs on imported cars, now is the perfect time to enter this market aggressively.Ford has had a limited presents in China over the years, with six joint ventures currently active producing mainly car parts and offering after market sales service. In 2000, Ford purchased Daewoo motors, giving them a strong presence in Korea and India. Ford also continues to acquire European carmakers such as Aston Martin, Jaguar, and Volvo in recent years. With its acquisition of Daewoo, Ford may now be poised to becoming a major player in populous China.3Although the population of China is slowing, due to the governmen
Because of China's rough terrain, and growing number of wealthy citizens, SUV's are increasing in popularity. 1Despite the slowing population growth in China, the United Nations expects its population to reach 1. ThreatsDomestic cars currently control the market in Mainland China. The total amount of highways grew in 2003 by 13%, with that number expected to continue over the next five years. 2InfrastructureAnother benefit of China's ascension into the WTO is the improvements it's brought to its highway systems. These families are beginning to spend large amounts of their income on owning apartments or homes, and need affordable, compact sized vehicles to fit their lifestyle. SWOT AnalysisStrengthsThe obvious strength when viewing the Chinese market is potential. Another concern is the limited amount of parking spaces available in congested cities of China, which is being addressed by the government. Secondly, market the Ford Escape as an alternative to the Jeep Cherokee, which has had success in China. The Escape would serve the need of this demographic, and still appeal to the energy conscious with its small size. The government has put its full support behind the development of the car market in China, a critical component in a Communist society. The common perception among the Chinese is that automobile pricing will come down as a direct result of increased foreign competition due to their entry in the WTO. Developing new car designs specifically for the needs of the Chinese consumer, and their particular living circumstances will be the key to success in China. Consumer Trends Several major studies have been conducted since the mid 1990's in an effort to pinpoint the Chinese consumers trends in relation to retail spending. The Chinese tend to be loyal to their own, and a communist government may make it difficult for a foreign manufacturer to compete, despite the World Trade Organization.
Common topics in this essay:
Contact/National Statistics,
Analysis Strengths,
Motor Company,
United Nations,
Consumer Trends,
Opportunity WTO,
Market Trends,
Deng Xiaoping's,
Organization December,
Child Policy,
chinese consumer,
world trade,
parking spaces,
ford motor,
world trade organization,
trade organization,
parking spaces 10,
mainland china,
sales growth,
escape serve,
market mainland,
china china's,
market mainland china,
|
Acceptance Essays
