Segmentation, Target, and Positioning (STP) Proposal
Company Description
Ford Motor Company is an American brand that works worldwide. It comes under the list of the third-largest automobile manufacturer and largest vehicle sale, which put far behind several other major brands such as general motors, Toyota. Ford is an American international company ranked third largest automakers in the world based on global sales of the vehicle. Henry Ford, who was the founder of this company and started this in 1914 and brought a revolution in the markets. The terrace location is one of the parts of the Ford industry and provides all the services. This company is the 10th largest in terms of profitable corporations (Wong, 2019). Ford first established this company in 1903 with a budget of $28000 and with the partnership of the dodge group in Detroit, Michigan (Wong, 2019). Now it’s running successfully worldwide with almost 5000 locations in nearly every major city of every country. Terrace Totem Ford and Snow Valley Ford is one of them, and the whole team of the company is working by putting his efforts to serve communities
Purpose of STP Proposal
STP proposal is meant to win more customer loyalty by the FORD Motors Company. Society today is changing with various effects, such as demographical (Wuryandani, Ismoyowati & Nugrahini, 2018). All these changes are also visible in the automobile industry. So, these industries started working on one principle that is “Survival of the fittest which means that only those industries will survive in the market, which is providing the best product and service to the consumers (Wuryandani, Ismoyowati & Nugrahini, 2018). Another significant factor is not only selling skills in the companies but also consumer satisfaction and market leadership. Thus, marketing plays a vital role in making strategies. Strategic planning defines the process of any company in which it works and identifies its strategy as well as the decision makings for the working of the company (Hollensen, 2019). The STP proposal is aimed at recognizing the supreme valuable categories of clients for the Ford Motors company in an effort to develop automotive as well as marketing messages, which will ideally suit this group.
Bases and Variables
Bases
- Age: people aged between 20-50 years
- Gender: Both men and women
- Income: $50000 and above
- Location: European Nations
Variables
- Behavior: Interest in driving, a feature of the automotive
- Lifestyle: preference on the out-going brands
- Profession: Formal working class, Business persons
Effective Market Segmentation
The Ford Motors Company proposed STP meets all necessity of efficient marketing strategy, which includes actionable, measurable, differentiable, reliable customer purchasing power and ease of access. Europe and North America are two significant geographic areas for Ford Motors. America accounts for more than half of the company’s overall revenue. In North America, Ford’s sales grew by 5.5% from 2012 to 2014 (Wong, 2019). During this time, the total sales within the Europe market stayed the same because of unemployment and other economic issues within the area. In 2014, the company market share was around 14.2 percent in North-America (Wong, 2019). The company sold 2.8 million cars in that year, which is considerably more exceptional, the firm’s worldwide market share. This is an excellent indicator that if the company applies the proposed STP, it will win more customers within European regions and increase the profit margin.
Positioning Strategy
The company should be focused on the brands that suit the target groups. Ford Fiesta, the latest car model, should use demographic variables. Demographic variables include gender, income, age, and many more. The model should target young people, average income earners, and ladies. The young people that the company targets are people age between 18 to 25 years. The car model is also suitable for unmarried individuals since the model only has five seats, which are not for a large family. The model also uses behavioral variables. The Ford Fusion Hybrid, a fuel-electric hybrid, also uses demographic variables. The model targets families of the age 24-44. The model targets individuals with an income level of sixty thousand dollars to ninety thousand dollars. It aimed at meeting their taste and preferences to win their loyalty. This will help the company to earn the loyalty of its customers and have a more significant market share and hence high-profit margins.
Consumer Culture position
The STP proposal for Ford Motors is to match their brands with diverse cultures in the global community. The company shall identify the various norms and beliefs present in multiple regions of the world to be able to meet some of society’s customs in their immediate operations. This will enable them to interact and operate efficiently with the people and also provide automobiles, not against cultural stands of the various societies. For instance, the company shall observe the need to preserve the environment for human Survival, such as fuel-electric hybrid, to minimize the release of toxic gases in the atmosphere. They shall thus provide brands that have cultural meaning, norms, affordable, and identities to the various societies around the globe. This will make the company to position itself more thoroughly on the international market and win tremendous customer loyalty.
References
Hollensen, S. (2019). Marketing management: A relationship approach. Pearson Education.
Wong, M. K. (2019). An Analysis of the Effects of Operating Margin and Beta for Performance
on Ford Motor Company.
Wuryandani, S., Ismoyowati, D., & Nugrahini, A. D. (2018). STP analysis in marketing
pigmented rice as a functional food. KnE Life Sciences, 128-135.