THE FORD EXPEDITION AND ITS SUCCESS

Presented to: Dr. Shane R. Premeaux

Date Due: April 27, 1999


TABLE OF CONTENTS

TOPIC PAGE

HISTORICAL BACKGROUND........................................................................ 1

TARGET MARKET............................................................................................ 1

PRODUCT............................................................................................................ 2

PLACE.................................................................................................................. 2

PRICING STRATEGY........................................................................................ 3

PROMOTIONAL/ADVERTISING STRATEGY............................................. 3

SUCCESS ANALYSIS......................................................................................... 4

PERFORMANCE IMPROVEMENT................................................................ 4

LIST OF WORKS CITED.................................................................................. 5


THE FORD EXPEDITION AND ITS SUCCESS

HISTORICAL BACKGROUND

Ford Motor Company was founded on June 16, 1903 by a group of twelve
investors and $28,000 cash. The strongest force in the group was Henry Ford, who made
it his personal duty to see that every American could afford a car. He made this possible
by perfecting the assembly line so that the company could mass produce automobiles.

The Model T, the first production car ever, rolled off the assembly line on October 1,

1908, and concluded the year by selling 10,660 units1. Throughout the rest of the
century, Ford Motor Company continued to manufacture automobiles on the premise of
making "Quality Job 1." In 1996, the company set a whole new standard for the industry
by redesigning the F-150, the number one selling automobile for the last 17 years. Later
that year, Ford introduced the Ď97 Expedition, a sport-utility vehicle (SUV) based on the

F-150. By years end, the Expedition would out-sell the competition by a considerable
margin2.

TARGET MARKET

The primary members of the target market are mainly active females, ages 41-51,
with an average income of $65,000. These females are usually moms, and make up
roughly 55% of the buyers, while 36% of the consumers are of the 41-51 age group. Ford
has found that most of the Expedition buyers have a college background consisting of a
four year degree3. These demographics, while being the average target market, do not, in
anyway, limit Ford to selling the Expedition to any and all consumers, who might be
interested in purchasing one.

PRODUCT

Ford Motor Company currently produces four different sport-utility vehicles,
however, this report focuses on one of Fordís largest, the Expedition. It is built on the
platform of the Ford F-150, as a four-door large SUV. Ford positioned the Expedition in
the market between the Chevrolet Tahoe/GMC Yukon and the Chevrolet/GMC

Suburban, itís main competitors4. What makes the Expedition unique, is itís ability to
seat up to 9 people, like the Suburban, while still having the advantage of fitting easily
into the standard garage. Another advantage of the Expedition is the choice of two
highly sophisticated engines, the 4.6 L and 5.4 L V-8ís. Both are over-head-cam engines,
which tend to have less wear-and-tear than the push-rod engines of old. The Expedition
also possesses some unique-for-itís-class safety features, such as: a fail safe cooling
system - which will allow the engine to alternate on four cylinders in the event of a
coolant loss; illuminated entry - this lights the interior so that the driver may see anyone
lurking inside; battery shut-off - will turn off any light left on after 20 minutes;
auto-lights - a sensor will automatically activate the headlights at night; Control-Trac -
which is four-wheel traction capability in all weather conditions. These features, along
with power-adjustable foot pedals, load-leveling suspension, and signal mirrors5; have
made Expedition, not only unique, but also the number one selling SUV in itís class since
itís introduction6.

PLACE

Expeditions are manufactured in Wayne, Mich., and sold throughout the United

States and in many other countries around the world7. They are available at authorized

Ford dealerships, as well as at used car dealerships. Local Ford dealers include: Bolton

Ford, Don Shetler, and Bubba Oustalet. These dealers and others, not only sell the

Expedition and other Ford products to the consumer, but also provide additional services
such as Quality Care (maintenance and repair), paint and body work, and the
pick-up/delivery of vehicles. Recently, Ford Motor Company has made it even easier to
find the right Ford for you, and the nearest dealer, by offering Ford Matchmaker on their
web site at www2.ford.com.

PRICING STRATEGY

In reference to size, the Expedition, as stated before, falls between the Tahoe and
the Suburban, this is also true of the price. The Expeditionís base price range is from
$27,520 to $34,2408. However, it is worth noting that the Expedition is not offered in a"stripped down" version, like itís competition. The lower-end XLT Expedition comes
standard with various features from tinted glass and power everything (mirrors, windows,
steering, & locks) to dual Second Generation air bags, anti-lock brakes, and keyless
entry. The Eddie Bauer Expedition, on the other hand, sports all the features of the XLT
plus illuminated running boards, electronic automatic temperature control, overhead
console, third-row seating, and leather seats (including captainís chairs). Options include
four-wheel drive, 5.4L V8, moonroof, heated seats, and