Mistakes and Successes of Ford - Assignment Example

There was a change in the preferences of customers and in that period, the makers were struggling to find the perfect satisfaction for the consumers.

1. Economic circumstances

There was an increase in disposable income to about 5 percent. This was in 1962. There was severe price overlap in the period.

1. Political circumstances

There was a change in management of the organization with Lee Iacocca becoming Division manager in 1960. There was the election of Kennedy as the president.

1. Competitors of the target market

The competitors of the target market include Chevrolets, Fords, and Plymouths. There were also bringing out of Pontiacs, Buicks, and Dodges.

1. Needs from the competitors

The needs that were figured out from the competitors were the target market that needed the cars. The growth of two-car families was an optimistic factor that was also realized.

1. Development of products

Features: the car was compact. The car also had a six-cylinder engine and transmission power.

Brand name: Mustang

Design: sports car

Quality level: developed from the existing model

1. Setting of price

The price of the car was set at 2368 dollars. Their price was set by inviting 52 couples to view the model and quote a price.

1. Keeping the price low

The development was kept low by using the models that had been earlier developed.

1. Selling the car

The car was mainly sold in the United States.

1. Promotion

Promotion of the car was mainly done through different ways including launching campaigns in print and television, TV onslaught, color pages, black and white ads, running a contest for command hairdressing, and by radio. There was also working with different departmental stores to promote the car. 

1. Sales

For the first two years, Mustang was able to generate a net profit of 1.1 billion.