Ford Motors after remaining too sincere with its “Friends and Neighbors” sales campaign following the insider-pricing promotion has failed to cope up with what it has hoped prior. In the previous week, Ford executives already made announcement that the campaign would not costs the industry any extra than typical.
Earlier this month, the auto manufacturer had launched a deal that was hoped to run by early January in year 2016. But there was no such warm response by dealers and customers which led Ford to move to a better “bonus cash” merchandising plan for December.
A spokesman from Ford has confirmed a move away from “Friends & Neighbors” but no such details were provided regarding the launch of a next campaign (beheading this Tuesday):
“We’re always in regular contact with our dealers. We often make adjustments to our marketing programs based on their feedback.”
In year 2015, Ford has been showing a modest fall in market inspite of introducing F-150 pickup which was considered as best-selling vehicle in USA.
Ford’s “Friends & Neighbor” plan was proving discount rate to all suppliers and business partners to all customers. The program however, did not mean to fall off but was rather a stand-out one on in terms of industrial efforts background.
As per dealers, customers did not handle well the new approach because they have gone too used-to upon cash rebates and other bonuses the industry had been offering. Ofcourse they felt like not getting enough deal as compared to Ford’s competitors in market.
The sales level has been constantly on the go since year 2001. A switch towards plan is actually what in back-up in Ford’s mind – it wants to prepare a late-year push heading towards Christmas.
Fitch Rating analysts were already of an opinion that “Friends & Neighbors” promotion might not be that fortunate for Fords and it might be returning back to its deep discounting policy.
Before this campaign could take place really, AutoData Corp. reported the same that an increase in total industrial expenditure for incentives grew due to high costs of gasoline.
As per Bob Shanks, Chief Financial Officer of Ford, the industry has incentive expenditure in first half of November depicted lower than October and was flat as compared to the estimates of last year’s November.
