Ford Motor Company in India: Developing the Ford Figo

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Case Details:

Case Code : MKTG299
Case Length :20 Pages
Period : 2007-2009
Pub Date : 2012
Teaching Note : Not Available
Organization :Ford India
Industry : Automobiles
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Ford in India

Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, USA, manufactured or distributed automobiles across six continents. With about 201,000 employees and about 90 plants worldwide, the company’s automotive brands included Ford, Lincoln, Mercury and Volvo. The company provided financial services through Ford Motor Credit Company. Established in 1995, Ford India was a wholly owned subsidiary of Ford Motor Company with more than 2,300 employees. Ford started its operations in India in 1995 as a 50/50 joint venture with Mahindra & Mahindra (M&M).

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New Product Development Process for Figo

Generally, the process of new product development involved a series of stages: the generation of new ideas, screening of ideas to identify the one with the most potential success, development of the idea into a concept that could be tested on a small group of potential customers in order to design a marketing strategy around it, development of the product, test marketing and finally launch it into the market. Ford India followed a unique product development process while developing Ford Figo...

Taking it to the Market

By the second half of 2009, the Ford Figo was ready for its launch. In September 2009, Ford revealed its Figo model in New Delhi. Alan Mulally claimed that Figo would be a game-changer for Ford India. He said, "The Figo should help us make considerable gains in India, where we have had not much presence in the market till now. We do not operate on the basis of market share but on customer demand and products." Figo was to be launched in early 2010 in the price range of Rs. 349,000 to Rs 442,000 for the petrol version and Rs 447,000 to Rs 529,000 for the diesel version...

Exhibits

Exhibit I: Classification of Passenger Vehicles as per SIAM
Exhibit II: An Overview of Manufacturers of Passenger Vehicles in India - As of September 2009
Exhibit III: Market Share of Various Segments in the Annual Sales of Passenger Cars in India
Exhibit IV: Features of Various Small Cars in India
Exhibit V: Comparison of Ford India's Sales to Total Passenger Vehicle Sales in India
Exhibit VI: Ford's Approach to New Product Development
Exhibit VII: Specifications of Ford Figo

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