Ford Vs Gm: A Comparative Analysis

Running head: FORD VS GM: A COMPARATIVE ANALYSIS                                                                    

FORD VS GM: A comparative analysis using marketing mix method;

 Identifying their targeting and positing

Name: Arpit Agarwal

Date: 26/01/2016

Abstract

The aim of this research paper is to compare the product/product lines of two companies namely Ford and General Motors using the marketing mix method. Based on the 4P analysis the positioning and targeting strategies of the two companies are identified and discussed.  

Keywords: FORD v/s GM, marketing mix, 4P’s of Marketing  

       FORD VS GM: A comparative analysis using marketing mix method;

 Identifying their targeting and positing

  According to Taylor III (2011) the rivalry between Ford and General Motors is the biggest corporate rivalry which is bigger than Coke vs Pepsi, older than Nike vs Reebok and more compelling than Pampers vs. Huggies. It's fought with billion-dollar budgets for marketing and R&D and it is subject to more ups and downs than the stock market.

(para.1)These two US multinational automakers have actually so many similarities that it’s almost uncanny. While Ford was founded in 1903 General Motors was founded in 1908. Both the companies are headquartered in the US state of Michigan and as of 2015 their annual revenue, annual operating income and their total assets were also quite similar. General

Motors was the market leader with a 17.6% share of the US auto industry closely followed by

Ford at second position with a market share of 14.6% for the year 2015. (Wall Street Journal, [WSJ], 2016)

Marketing Mix

Kotler & Keller (2011) define marketing mix as:

Marketing Mix is the set of controllable variables that the firm can use to influence the buyer’s response. The controllable variables in this context refer to the 4 ‘P’s [product, price, place (distribution) and promotion]. Each firm strives to build up such a composition of

4‘P’s, which can create highest level of consumer satisfaction and at the same time meet its organisational objectives. (p.25)

To understand the targeting and positioning strategy of the two behemoths a comparative 4 P analysis of the two companies has been done as follows.

FORD v/s GM-Product

             General motors rolls out vehicles in US under four brands which are Buick, Chevrolet, Cadillac and GMC. According to the data obtained from the respective websites of the above mentioned subsidiaries these are the product offerings.

• Buick model range in US consists of 3 sedans (Verano, Lacrosse and Regal), two SUV’s (Encore and Enclave) and one Convertible (Cascada). Buicks positioning is of an entry level premium brand  
• Chevrolet model range in US consists of two hatchbacks (Sonic and

Sparx) six sedans (Cruze, Lacetti, Malibu, Impala, Volt and SS) five SUV’s/Crossover (Trax, Equinox, Traverse Tahoe, Suburban) and two in the sports/muscle segment (Corvette and Camaro). Chevrolet’s positioning is of a value for money brand.

• Cadillac model range in us consists of two coupes (ELR and ATS) four sedans (CTS, CT6, ATS and XTS) two SUVs/Crossover (SRX Crossover and Escalade). Cadillacs positioning within the GM umbrella is of a luxury brand.
• GMC model range in US consists of three Crossovers/SUV’s (Terrain, Acadia and Yukon) and one Van (Savanna). GMC’s positioning is of a rugged and reliable brand.

 Ford’s two subsidiaries are the marquee Ford and Lincoln.