International & Global Marketing: Ford Cars in Pakistan - Essay Example

International & Global Marketing: Launching Ford Cars in Pakistan AFFILIATION: Introduction to the Foreign Market The country of Pakistan is merely around 6 decades old; however human record in the region reaches back for millions of years. The country of Pakistan came into being as an autonomous state in the year 1947 (Mohiuddin, 2007). Its official name is Islamic Republic of Pakistan. Dissimilar to the western nations, in Pakistan, fatalism, collectivism and fatalism are all elements of routine life and they require to be regarded for successful and healthy corporate associations. There is an evident sense of culture and tradition integrated into daily practices of businesses and trade as well as normal life. Regardless of industry, foreign businesses must predict some extent of disparities in business values in Pakistan. For the aim to comprehend the business and social culture in the country, a comprehensive understanding about Pakistani cultural values and behaviors is important (Cateora, 2007). The only official language of Pakistan is Urdu; however English has been largely utilized instead of the national language, specifically in business culture. English has been considered as the lingua franca of the country’s elite class and most of the state ministries (Cavusgil & Riesenberger, 2009). Moreover, Urdu is directly most resembling to Hindi and it has more borrowings from Persian and Arabic as compared to Hindi language. Numerous other languages are also used in Pakistan such as Sindhi, Punjabi, Siraiki, Pashtu, Hindko, Balochi, Gujrati, Balti, and many other with substantial number of native and immigrant speakers (Cavusgil & Riesenberger, 2009). Cultural Aspects of Pakistan Religion Islam is the major religion of Pakistan and it plays an imperative role in the lives of every citizen of the country. Muslims are devoted to spend their lives according to the religious beliefs, norms and values which differentiates them among the other followers. Pakistani people are recognized primarily with their religious beliefs and values (Czinkota & Ronkainen, 2012). Respect The society of Pakistan is based on hierarchical terms. The element of mutual respect is deeply integrated into the cultural aspect of every Pakistan individual. Pakistanis tend to express a lot of regard to those who are elder and experiences, and those who poses a higher status, in terms of modesty or some exemplary act, in society (Dahringer & Leihs et al., 2006). Indirect ways of Communication Clear statements are just utilized with whom Pakistanis are familiar with. In common, the people Pakistan are relatively diplomatic and utilize indirect ways of communication with numerous descriptions and exaggeration. As a result, a seemingly direct query does not always get a precise answer (Dahringer & Leihs et al., 2006). Target Market for Ford Motor Company in Pakistan In order to identify the right target market in Pakistan for launching the Ford Cars, there is a need to hold pace with consumer’s emerging needs and demands in order to stay competitive. Through monitoring Pakistani market shifts, trends of consumer demands and political as well as social developments to recognize concerns that are likely to impact the consumers, will help to determine the appropriate target market  (Corporate.ford.com, 2014). According to a general survey regarding Pakistani people and social values, it has been widely evident that people of Pakistan poses a great inclination towards maintaining their social status and perception among others of the same class. This is most evident in the elite class of the society. On the basis of this, the target market for launching the Ford SUVs will be the elite strata of Pakistani society (Dana, 2012). Since, the marketing and sales professionals at Ford Motor Company work mutually on challenging projects to establish and implement product strategies; the target market in a country like Pakistan would be a new challenge for the company to integrate and can offer immense potential to penetrate in the market. The Plan The company should rely on an international network of external and internal professionals to ascertain that they have a huge range (Doole & Lowe, 2008), detailed information on consumer demands and how they will impact consumers’ prospect shifts regarding mobility and vehicles. Ford should apply these evaluations throughout the product development, market, design and research to guide prospect product developments in Pakistan. In order to conduct an effective marketing in Pakistan, Ford must match its product design and features according to the needs of the local consumers. Since, Pakistani people are brand cautious, they tend to pay a higher price for a well-renowned brand and are experimental as well; at the same time Pakistani people are also likely to be highly cost effective (Fletcher & Bell et al., 2004). Ford can offer its SUVs because they can be cost-effective, energy efficient and can offer a perfect mix of luxury, comfort, style and affordability; a perfect match for the intended target market of Pakistan. Strategic Recommendations During late 2012, for the initial time, the company made the global consumer trend assessment public in a report (Ford.com, 2014), Looking Further with Ford, showing knowledge regarding consumer trends and attitudes predicted to emerge in 2013 and ahead (Harry, 2012). Through launching a small, cost-effective car destined to target the emerging market like Pakistan would gain initial success for the company. The Ford Focus, for instance would be the perfect choice for the Pakistani market  (Hollensen, 2009). Ford should follow the similar global marketing strategy for its entire product having one central team in a selected country leading the marketing measures around the world for that specific car. Marketing managers in Pakistan can select which of the campaigns should be utilized, however they are not capable to begin from scratch level and create their own. The consequence will be much better and more persistent marketing across world markets and reduced costs. The marketing of Ford vehicle in Pakistan which posses an evident social media approach, need to establish a strong social media perspective for the launch of the vehicles (Jain, 2003). Moreover, the marketing of Ford Ranger small pickup can also be a huge success because of its features and size, pertinent with the local requirements of the Pakistani market. In addition to this, following are some strategic recommendation to gain effectiveness in the international marketing of Ford vehicles in Pakistan: People Strategy An important element of the marketing mix (Ps) is the employment of the clear community and staff (Johanson, 2000). Consumers and the prospect employers take decisions on service dependent on their communication with the individuals Ford has selected to staff the organization with. For this purpose, the company must believe that staffing the company with professionals on the rules, cultures, customs and regulations on the Pakistan. This refers staffing the organization with people who have proficiency in the business and cultural aspect of Pakistan, people who have acquired comprehensive exposure (Kotabe & Helsen, 2009), background and insight of conducting business activities in Pakistan. Staff must have the suitable attitude, interpersonal capabilities, and knowledge of service to offer the quality that consumers investing for. Process Strategy Since the majority of Ford cars are costly, it is assumed as a destination product. Destination products are those upon which consumers tend to invest time thinking and conducting research for that particular item before actually buying it. For the purpose to make the consumers even start thinking of buying the Ford cars (Lareau, 2011), the consumers must be acknowledged about its presence and later earn interest in the advantages of the car can offer to them. During the stages of trial and action, the consumer must be capable to take a test drive of the Ford car fond at a domestic Ford Dealership outlet in the region. Test driving the Ford car is an important phase for the consumer since they will really get to drive the vehicle and experience the performance. As such, this trial motivates like the one expressed under the media car events must be executed in order make the potential consumer wish to test drive the Ford cars and buy it. After the consumers prepare their minds to buy the car, after sales services in order to retain the customers’ satisfaction with their purchases is highly important and it should also be made certain that consumer stay loyal towards the Ford Brand (Massey, 2004). Physical Data Strategy The physical data includes the material factors of the product. After buying the Ford vehicle, not merely will the consumer have the genuine car itself; however they will get the evidence of their purchases in the form of a receipt, along with a car manual, keys and warranty policy information. These material aspects will aid to make the consumer feel authorized and offer a validation of ownership  (Mooij, 2009). Placement Strategy The major way to buy the Ford car is through domestic Ford dealerships situated in major cities of Pakistan (initially) (Mohiuddin, 2007). These dealerships must be positioned in regions that are conveniently identifiable and accessible to prospect consumers. For loyal customers, however not aware about the presence of their preferred Ford car, the vehicle must be strategically positioned and showed on-top of a podium internally or externally with exclusive indication encompassing it in order to promote its existence and attract customers toward it. Promotion Strategy The Ford cars are of exceptional quality vehicles that delivers a range of benefits and features to its owners or customers. In order to express these incentives and to appeal the deliberated target audience in Pakistan, a general marketing theme showcasing the Ford cars in “Edgy Situations” must be executed (Munroe & Walton, 2014). This marketing approach will be prevalent in the entire market to offer stability for the strategy of media. Even though, Pakistan will be marketed with Ford cars which have a distinct cultural background, the theme of Edgy Situations showcased through the media cars will be general cases many people can associate to. The fundamental objective for this theme or promotional strategy is to tell the consumers that the cars of Ford are the solution to the complex situation and they will be capable to drive in all situations, no matter how desperate the circumstance seems to be. The media cars utilized to encourage the promotional strategy will be radio, TV, events, outdoors and print (Munroe & Walton, 2014). Conclusion In order to ensure a successful marketing of Ford cars in Pakistan, it is imperative to target customer portfolios relied on psychological and cultural aspects that distinguish national traits and consumer demands different from each other. This is vital element for the drive to establish genuinely global cars that attract to consumers of multiple countries, such as Pakistan  (Cateora, 2007). Therefore, Ford motors must emphasize more on the psychological and emotional components of how consumers select their cars as well as conventional economic standards of features and cost. In addition to manufacturing cars that offer best quality characteristics and cost for value, the objective should be to create cars that meet the demands and motivations of the targeted group in Pakistan. It is observed that this marketing approach not merely would help to realize the consumers efficiently, it will also help the company to create cars the capture the dreams, visualizations and loyalty of the consumers in the selected market. Certainly, the Ford Motors are highly acknowledged about the economic triggers which can push the limits of product loyalties, and the company require to work to carry on to create cars that consumers can afford (Cavusgil & Riesenberger, 2009). It is certain the nobody can predict the prospective results. Although, the business prepare for a wide range of probabilities through the exercising targeted to estimate future outcomes that help companies to ascertain that strong strategies are in place to cope up with the inevitable uncertainties in new markets. Thus, in addition to brand and product specific market assessment and research, the Ford Motors has an office destined to tracking changes in technological, social, environmental, political and economic fields (Corporate.ford.com, 2014). Based on the above analysis and study of potential market penetration, it can be said that effective Pakistani business are optimum at keeping a sustainable business scenario. For the business like Ford Motors, which have world recognition of quality and loyalty of its consumers, the penetration of the company into the new market like Pakistan can be a highly prospect opportunity for the company to flourish and gain huge market share. The above strategic recommendations have been made to ensure a successful marketing campaign and sales into the new market. References Cateora, P. R. (2007). Global marketing. Tata Mcgraw Hill. Cavusgil, S. T. & Riesenberger, J. (2009). Conducting market research for international business. Business Expert Press. 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(2003). Handbook of research in international marketing. Edward Elgar. Johanson (2000). Global marketing. Tata. Kotabe, M. & Helsen, K. (2009). The sage handbook of international marketing. Sage. Lareau, J. (2011). Fords global marketing plan starts with focus. [online] Retrieved from: http://www.autonews.com/article/20110321/RETAIL03/303219966/fords-global-marketing-plan-starts-with-focus [Accessed: 15 Mar 2014]. Massey, D. S. (2004). International migration: prospects and policies in a global market. Oxford University Press. Mohiuddin, Y. N. (2007). Pakistan: a global studies handbook. ABC-CLIO. Mooij, M. D. (2009). Global marketing and advertising: understanding cultural paradoxes. Munroe, G. & Walton, G. (2014). Ford unveils an ambitious global market strategy. [online] Retrieved from: http://globaltrademag.com/ford-unveils-an-ambitious-global-market-strategy/ [Accessed: 15 Mar 2014]. Sinkovics, R. R. & Ghauri, P. N. (2009). New challenges to international marketing. 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