research and analysis
Topic: Ford Electric car line
3. Analyze the organization’s current marketing situation. Conduct secondary research on the industry, competitors, the organization, and customers in order to gain a good understanding and definition of the issues and opportunities facing your client. (The library has lots of great resources and helpful reference librarians).
● Ford’s Main Competitors ○ Ford Motor's main competitors in the consumer discretionary sector are General
Motors Company (GM), Toyota Motor (TM), Daimler (DDAIF), Honda Motor Company (HMC), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR).
4. Identify how your organization is currently communicating and presenting the brand. Identify any distinct brand assets; these can include logos, brand colors, slogans, mascots, fonts, audiomarks, etc. Analyze some of the organization’s current marcom to understand and identify what they are currently trying to associate with the brand.
● Ford’s Company Vision ○ “To become the world's most trusted company designing smart vehicles for a
smart world.” ■ This reflects the multinational company's strategic goal of becoming a
leader in the automotive industry. Ford’s focus on smart vehicles pertains to the current market conditions and customers' preferences.
● Ford’s Slogan ○ “Built Ford Proud” ○ Highlights Ford’s passion, innovation and commitment to building great vehicles
over 115 years and signals Ford’s ambition to lead in the future through smart vehicles for a smart world
● Ford’s Logo ○ The current Ford emblem is a flat oval designed to feature several shades of blue
and white. ○ The symbol of Ford is simple but effective, displaying the name of a brand in a
handwriting-style font on an oval badge background. ○ According to experts, the typography for the Ford cars logo comes from the
handwriting of founder Henry Ford himself. ○ The handwritten nature of the Ford logo font helps the brand to appear more
human, approachable, and personable. The colors blue and white add to this sense while creating a classic image for a brand with more than 100 years of heritage.
○ The best-known Ford color today is blue, which is matched with white or silver for the official Ford logo. The combination of shades is excellent for demonstrating sophistication and credibility.
○ The Ford logo design reflects classic Americana; the two are synonymous with each other. The cursive and fashionable lettering is truly unique and absolutely
personifies the fashionable class of its brand, which gives the company both a nostalgic and cross-generational appeal.
Ford Electric Vehicles
Current Marketing Situation
● The electric vehicle market is worth $208.95 billion in 2021. It is estimated that
this figure is likely to quadruple over the next eight years to $957.42 billion. With
the development of charging technology and the popularization of charging
equipment, as well as the rise in fuel prices and the implementation of various
government initiatives, more and more people will choose to buy electric vehicles.
It is estimated that a CAGR of 24.51% between 2022 and 2030 will be achieved
(Bondarenko). In another CNBC report, a KPMG survey predicts that 52% of new
vehicle sales will be all-electric by 2030 (Wayland). For the automotive industry,
electric vehicles will be the new trend. At present, major auto manufacturers have
realized this fact, and all take new energy vehicles as the key strategy of their
company's development. For Ford, the competition ahead is fierce.
● Ford has recently announced its new marketing strategy to split its electric
vehicles and internal combustion engine vehicles into different units on Mar 2,
2022 (Wayland). It is expected that this move will streamline its growing electric
vehicle business and maximize profits. The two new separate units will be named
Ford Blue and Ford Model e. Ford Blue will be responsible for improving the
traditional internal combustion engine vehicles with Ford's rich expertise from the
past 100 years and delivering new and connected driving experiences to the
customers. Ford Blue will build the company's signature internal combustion
engine vehicle portfolio, a program designed to drive the growth and profitability
of Ford's internal combustion engine vehicles by reducing costs, streamlining
operations and improving quality. The Ford Model e is an all-new electric vehicle
division designed to accelerate innovation and deliver breakthrough electric
vehicles at scale, and develop software and connected vehicle technologies and
services for Ford company-wide(Ford).
● Electric Vehicles will be the key focus of Ford's marketing strategy in 2022. On
social media, Ford is aggressively advancing the plan. It has published the news
about the reorganization on its Twitter and Facebook accounts. Ford's CEO, Jim
Farley, also released the news through his personal Twitter account. With the
Ford Model e operating as a separate division, Ford has posted a test video of the
F 150 Lightning on its official Twitter and Facebook accounts to drive the hype
for its electric vehicles.
Major Competitors
The following companies are Ford Motor's main competitors in the consumer discretionary:
General Motors Company (G.M.), Toyota Motor (T.M.), Daimler (DDAIF), Honda Motor
Company (HMC), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors
(SPAR). According to statistics from the Evadoption website, in 2018, the main sales figures for
Ford and some of its competitors(General Motors, Toyota, Daimler, Honda and Tesla) are as
follows (EVAdoption).
Brand Total
Vehicle
Sales
E.V. Sales Brand %
E.V. Sales
U.S. %
E.V. Sales
% Total
U.S.
Vehicle
Sales
Ford 2,386,588 9,216 0.39% 2.51% 13.70%
General Motors 556,451 0 0% 0% 3.19%
Toyota Motor 2,224,156 27,595 1.24% 7.52% 12.77%
Daimler(Mercedes-
Benz)
349,084 3,485 1.00% 0.95% 2.00%
Honda Motor 1,445,627 19,550 1.35% 5.32% 8.30%
Tesla 197,517 197,517 100% 53.79% 1.13%
· General Motors: As of the end of 2021, G.M. is still far behind in electric vehicles.
G.M. has sold 440,745 vehicles in Q4 2021, but only 26 were E.V.s (Cao). Although
the company promises on its official website that it will build 30 electric vehicles by
2025, G.M.'s electric vehicle development is almost blank (General Motors).
· Toyota: Toyota has a variety of electric vehicle models, including all-electric cars and
hybrid models (Toyota). In 2021, Toyota sold almost 600,000 electrified vehicles in
the United States (Kane).
· Daimler: Like Toyota, Mercedes-Benz also has many hybrid and all-electric models.
Mercedes-Benz's main electric models include the EQS series, S-Class levels of
luxury with an electric architecture all its own; the EQB series, An all-terrain, all-
electric SUV with optional seating for seven; and the EQE series, A mid-size sedan
with E-Class lineage and electric power (Mercedes-EQ). In 2021, the total deliveries
of Daimler, or Mercedes-Benz plug-in hybrid and all-electric vehicles reached a
record 227,458 units (Kane).
· Honda: Honda's main electric models are mainly small and medium-sized cars.
Currently, Honda is heavily promoting their Honda e, a small sedan that offers a
range of 222 kilometers with a large capacity 35.5 kWh battery and an 80% charge
increase in just 30 minutes of fast charging (Honda).
· Tesla: Tesla is the only company that only makes all-electric vehicles and is by far
the pioneer in electric vehicles. In 2021, Telsa's total global sales were 936,172
(Kane).Popular Tesla models include Model 3, Model S, Model X and Model Y
(Tesla).
· Navistar International: Navistar International mainly produces trucks, school buses,
buses, and other large vehicles. In 2021, Navistar launched the latest New Electric
International® eMV™ Series (Whalen).
· Spartan Motors: Spartan Motors is an American automotive design company that
designs and manufactures specialty chassis and vehicles for the recreational vehicle,
government service, and delivery and service markets. It has launched two new
electric vehicle fleet concepts in 2019, which has little competition with Ford
(Spartan Motors).
Ford's Electric Vehicles and Its Vision
· Ford plans to invest $22 billion in electrification by 2025 to achieve its vision to lead
electrification. Currently, Ford has three electric models: the electric pickup truck F-
150 lightning, the sports sedan Mustang Mach-E and the all-electric van E-Transit.
More Ford products will be introduced in the coming years. In addition to offering
zero-emission versions of its most popular cars, Ford is also leveraging electrification
to deliver more of what customers love: performance, capability and productivity
(Dearborn).Based on the above analysis, Ford is in a middle position in electric
vehicles, and the competition it faces mainly comes from brands with similar product
positioning, such as General Motors, Toyota, and Honda.
Communication Strategy
· Ford's Company Vision: "To become the world's most trusted company designing
smart vehicles for a smart world. This reflects the multinational company's strategic
goal of becoming a leader in the automotive industry. Ford's focus on smart vehicles
pertains to the current market conditions and customers' preferences.
· Ford's Slogan: "Built Ford Proud." The slogan expresses Ford's ambition to lead the
future by creating a smart world and highlights Ford's passion, innovation and
commitment to making great cars.
· Ford's Logo: The current Ford emblem is a flat oval designed to feature several
shades of blue and white. The Ford logo shows the brand name in the handwritten
font on an oval badge background. The typography of the Ford logo is said to come
from the handwriting of founder Henry Ford himself. Ford logo's handwritten font
helps the brand appear more human, approachable and personable. Ford's most
famous color is blue, which matches the white or silver of its official logo. This color
combination shows sophistication and credibility and has become a classic image of
Ford for more than 100 years. The Ford logo design reflects classic Americana; The
two colors complement each other perfectly, and the stylish cursive font reflects the
brand's pursuit of fashion, as well as the preservation of nostalgia.
Marketing Strategy
· Affordable commercial vans and pickup trucks: A key part of Ford's goal of driving
E.V. adoption is targeting the large market for all-electric commercial vans and
pickup trucks. Ford aims at bringing the benefits of electric vehicles to these
customers at an affordable price point, increased productivity and a lower cost of
ownership.
· Charging solutions: Ford has the largest public charging network in North America,
with more than 63,000 charging plugs. Built-in charging solutions, such as cloud-
connected navigation, direct customers to nearby charging stations, recommend
charging locations on the go, and easily access and pay with FordPass for a seamless
customer experience.
· Dealers at your fingertips: With more than 2,300 EV-certified dealerships in all 50
states and 644 EV-certified commercial vehicle centers, Ford is ready to serve
customers and help people transition to E.V. ownership.
· Global Manufacturing: Ford has electric vehicle manufacturing operations around the
world. This includes four plants in North America, such as the new Rouge Electric
Vehicle Center in Michigan. The company is investing $700 million in the Rouge
complex, adding 500 new jobs and using advanced sustainable manufacturing
techniques to build the F-150 Lightning and F-150 PowerBoost Hybrid.
5. Decide on the segment(s) you intend to target with communications. Provide a research-based (either secondary or primary) rationale for the specific target audience(s) for your IMC program, how you define the target(s), and why you believe this is best for the organization at this time.
● Segmentation ○ Ford is classified as a company that has multiple products and multiple market
segments. Ford has a wide variety of vehicles, including pickup trucks, sedans,
minivans, and SUVS.At its simplest, a consumer segmentation may be Non-user, Competitor’s customer, Low-value customer, High-value customer. From the geo-demographic, Ford is oriented on all ages and both gender.
○ Blue Collar Workers ■ The majority of its customers belong to the low and middle classes. Its
sales cover all geographical locations. Lifestyle allows determining how customers live: the core of the customer group is blue-collar workers. Ford’s customers value innovation and quality but prefer to buy a safe and ‘cheap’ car.
○ Younger Generations - Environmentally Conscious ■ The majority of Generation Z members, defined as those born in 1993 or
later, believe they want to have a positive effect on the world today. A Pew Research Report stated that millennials and gen z have the high purchase intentions of EV’s among all generations (Millenials 47%, Gen Z 42%). Even though the majority of this gen Z will not be able to purchase a car, they may begin to build a level of brand loyalty that will assist this American staple of the automobile industry maintain its growth pattern in the years to come. https://www.pewresearch.org/fact- tank/2021/06/03/electric-vehicles-get-mixed-reception-from-american- consumers/
■ 6. Develop a recommended positioning statement. Use either secondary or primary research to identify your client’s overall communication needs.
● “For customers who want climate-aware automobiles, Ford is rolling out an all-electric vehicle line that offers the power Ford offers with a guilt-free trip every time so customers can make a small impact on the world because Ford is the world's most trusted company designing smart vehicles for a smart world”
7. Develop specific communication objectives to guide development of your IMC plan. - Increase the awareness of target consumers who would like to drive electric cars
that believe driving eclectic cars would be good for the environment to 80% by the end of 2022
- Expose 90% of our target to 2 or more communications, such as TV advertisements, online advertisements and social media advertisements during the next 6 months.
- Expose the EV education to our target that performance are the same as fuel vehicles to 80% by mid-2023
8. Using your insights about the market and target(s), create a comprehensive IMC plan for your organization. Evidence-based rationale is critical for a successful plan. a. Describe and justify all components of your campaign. Be sure to explain how each will achieve the specified communication objectives to meet the recommended positioning.
target audience
- College level degree and higher Targets with college degrees and higher are having environmental consciousness that are more likely to purchase an EV.
- 100k+ annual income Targets with higher education would most likely have higher income. Especially those whose income is 100k and more would be ideal customers for EV.
- Age 30-39 Study shows 38% of millennials, age 30-39, are more likely to purchase an EV after reading online. ‘
Communication task - Increase the awareness of target consumers who would like to drive electric cars
that believe driving eclectic cars would be good for the environment to 80% by the end of 2022
- Expose 90% of our target to 2 or more communications, such as TV advertisements, online advertisements and social media advertisements during the next 6 months.
- Expose the EV education to our target that performance are the same as fuel vehicles to 80% by mid-2023
b. The plan should incorporate all media deemed relevant and efficient in reaching the target(s). You should provide careful rationale for why each type of media is, or is not, included in the plan. Discuss how the different pieces fit together (how this is an integrated plan).
- As mentioned earlier, 30-39 millennials are more likely to purchase an EV after reading an article online. Therefore, CNN, Gizmodo (tech site) and New York Times would be good websites to educate potential targets. BuzzFeed is one of the site that millennials would like to spend their time on. BuzzFeed could be a source to raise awareness. Social media is also a great platform to raise awareness with links to educational articles.
c. Develop communication/creative briefs for at least two of the types of media and provide a sample of at least one of the types of media included in the plan.
- Communication brief Problem to solve
A lot of consumers are still biased towards electric vehicles, who would think electric vehicles are not as powerful as fuel vehicles. They associate electric cars with less powerful engines.
Target - College level and higher education with 100k+ annual salary. Age:30-39
Positioning - With environmental consciousness and high tech, fast, 0 emission
Specific communication objective - Increase the awareness of target consumers who would like to drive
electric cars that believe driving eclectic cars would be good for the environment to 80% by the end of 2022
- Expose 90% of our target to 2 or more communications, such as TV advertisements, online advertisements and social media advertisements during the next 6 months.
- Expose the EV education to our target that performance are the same as fuel vehicles to 80% by mid-2023
Key benefit I can drive to anywhere without generating any emission to the planet with most
updated technology Reason why
Using EV would allow us to save some resources for next generation. This also helps the planet Intended reactions
YES!!! I am on a mission to make the planet greener. Mandatories
Ford brand logo 0 emission logo Sustainable logo Save the plane logo
d. Be creative and thorough! 9. Detail a media plan and schedule. This should include the basic timing for each type of media and discussion of the weight of the proposed plan over different time periods. Provide rationale. This should also include examples for each type of media, but does not need to specify every individual vehicle. (For example, a recommendation could specify print media, provide guidelines for the type of media and then provide one example of a vehicle that meets the specifications). Be sure to provide estimates of the reach and frequency of your plan. 10. Recommended budget. This should include the overall amount recommended for the plan, and how you arrive at this amount. The budget should also provide percentage allocations of the total budget for each type of recommended media. Do enough research to complete and justify the recommended allocations (e.g., you will need to know average costs for each type of media), but you do not need to specify every specific vehicle and its costs. Justify the recommended budget and breakdowns, being sure to draw upon consumer insights and the expected reach of the overall plan.
Part 9
Traditional advertisements and social media advertisement will be the two major
components for maximizing the exposure of the new products. While it has been previously
considered to only take the social media route, Ford Motor must take into consideration that the
targeted customers are not only the millennials and the younger generations, but also the baby
boomers who still rely on traditional media sources. Jeff Dunn from Insider reveals that a large
majority of younger generations rely on online media for information, ranging the highest, while
the following resource is television. Similarly but on the contrary, the older generations rely the
most on television, followed by online sources being the second most common choice (Dunn).
As a result, the media plan will involve purchasing slots for television ads as well as approach ad
promotions on social media platforms such as Facebook, Instagram, YouTube, and Google.
Television advertisements should consider slots during dinner time, ranging around 8 PM
to 9PM range, more notably as the prime time with the highest viewership of the day. This is a
period of time when adults have gotten off from work and are engaged in domestic activities
such as dinner and leisure time with the family. Rachel Krantz-Kent from the U.S. Bureau of
Labor Statistics offer that more than 50 percent of Americans turn on the television around 8PM
to 10Pm range. Hence, the evening hours are the most suitable for Ford Motors. In order to reach
the most effective reach but avoid awareness plateau, 60 percent of the television advertisement
will be placed during the prime time, and each of the 10 percent will be spread out throughout
the day at 8AM to 9AM, 12PM to 1PM, 3PM to 4PM and 1AM to 2AM. Television
advertisements will run for a three-months period. Ford Motors will advertise its new electric
vehicle from 30 different distributors. Each distributor may have multiple channels under its
umbrella. They can schedule a plan for 5 days per week. Which means the ads will be played
about 600 times a week. Ford will also place a 30-second advertisement during the halftime
show of the Super Bowl. The estimated reach will be 112 million Americans nationwide.
For social media advertisements, Ford Motors will target customers who have previously
searched for “Electric Vehicles” online. The advertisement will run on three separate occasions,
each time for five days. The product will be the same electric vehicle, but each advertisement
will use a different color variation of the same model, such as blue, white, and red. The content
will be in video form, restricting to 30 seconds of the video that circulates on the chosen social
media platforms. The estimated reach will be 30 million American online users nationwide.
Media Plan Chart:
Weeks Begin on
Mondays*
February March April
Television 8-9AM, 12-1PM, 3-4PM,
8-9PM 5 days per week
8-9AM, 12-1PM,
3-4PM, 8-9PM 5
days per week
8-9AM, 12-1PM, 3-
4PM, 8-9PM 5 days
per week
Super Bowl One-Time
Online 5 Days 5 Days 5 Days
Part 10
From Ford's 2021 annual report, we know that their 2020 ad spend will be around
1.8billion. According to Ira Boundway from Bloomberg. Automakers will spend up to 10% of
their advertising budgets on their EV products in 2022. Overall, Ford Motors will spend an
estimate of $180 million on all its advertising platforms. According to Nicky LaMarco from
Chron, a 30-second ad during the Super Bowl costs an average of $5 million. However, it is
possible that a short exposure during the most heated events of the nation can bring significant
profit for Ford Motors, especially an electric vehicle that aligns with corporate social
responsibility that is the trend of the twenty-first century consumerism. $3 million will be
contributed to television commercials only. For television advertisements other than the Super
Bowl halftime slots, an ad can range from $2000 to $50,000 depending on the channel, time, and
the number of seconds for the commercial (Benitez). For a 30-second commercial on network
television, Assume the ads cost around $20,000 daily for each distributor on average. Ford will
spend 5days*4weeks*12months*$20000*30 distributors=$144 million per year. Therefore,
giving it a $150 million budget to make agreements with television networks for commercial
time depending on the popularity of the shows or productions.
Lastly, the $1 million will be used for social media advertisements. According to Luke
Brynley-Jones, companies spend an average of 12 percent of its budget on social media
advertisement, which can range from $115,000 to $660,000. Given this piece of information,
Ford Motors will allocate about $20 million for advertisements on multiple social media
platforms. This budget will also include working with car influencers to create video content on
the Ford Motors electric vehicle, where the company sponsors influencers to provide detailed
review and positive attributes to their followers. Overall, the estimated cost for one year
advertising on TV ads and online ads will be $175 million.
Ad Budget
Super Bowl $5 Million
TV Ads $150 Million
Online (including influencer marketing) $20 Million
11. Provide insight into how you will assess the effects of your plan (how will you measure whether you are achieving your objectives?)
12. Develop a strong executive summary that powerfully presents the major points of your plan. Be sure that an executive who only reads that gets a good sense of the what and why. (The executive summary is developed at the end but will be positioned at the beginning of your plan.)
Works Cited
Benitez, Maria R. "Everything You Need to Know About TV Advertising Costs." Fit
Small Business, 21 June 2021, fitsmallbusiness.com/tv-advertising/.
Brynley-Jones, Luke. "How Much Should Brands Spend on Social Media?" OST -
Social Media Agency, 11 Sept. 2020, ostmarketing.com/how-much-should-
brands-spend-on-social-media/.
Dunn, Jeff. "The Difference Between How Millennials and Baby Boomers Consume
News, in One Chart." Business Insider, 26 June 2017,
www.businessinsider.com/how-millennials-vs-baby-boomers-get-news-chart-
2017-6.
Ira, Boudway. “Car Advertising Finally Goes Electric” Bloomberg, 6 March , 2022,
https://www.bloomberg.com/news/articles/2022-01-15/what-electric-vehicle-to-
buy-finally-tv-ads-can-help
Krantz-Kent, Rachel. "Television, Capturing America's Attention at Prime Time and
Beyond : Beyond the Numbers: U.S. Bureau of Labor Statistics." U.S. Bureau of
Labor Statistics, 28 Sept. 2018, www.bls.gov/opub/btn/volume-7/television-
capturing-americas-attention.htm.
LaMarco, Nicky. "How to Buy Local TV Ads." Small Business, Chron, 25 Jan. 2019,
smallbusiness.chron.com/buy-local-tv-ads-41137.html.
https://media.ford.com/content/fordmedia/fna/us/en/news/2021/05/19/the-ford-electric- vehicle-strategy--what-you-need-to-know.html
https://www.forbes.com/sites/alanohnsman/2022/01/13/fords-amped-up-electric-vehicle- strategy-boost-shares-tops-gms-market-cap/?sh=3e41d544365c
https://www.mbaskool.com/marketing-mix/products/16859-ford.html https://www.reuters.com/business/autos-transportation/biden-set-target-50-evs-by- 2030-industry-backs-goal-2021-08-05/ https://www.nytimes.com/2021/05/26/business/ford-electric-vehicles.html https://howigotjob.com/business-model/target-market-of-electric-cars/ https://www.ypulse.com/article/2018/11/07/the-top-15-sites-millennials-gen-z-are- reading/