Ford Mustang: Value-Based Pricing Strategy

The demographic aspect for the Ford Mustang GT varies between Generation X and Millennials. Young adults in college and/or with a degree are the targeted group for this vehicle. Therefore, anywhere between 18 years to mid-40’s. The gender category is a mix of both males and females, but the majority share is dominated by males. Due to the fact that one can choose to finance the car or pay up front the income can vary. Also, when purchasing the vehicle based on how many miles it already has on it the price can differ. The car is valued at thirty-two thousand, so in terms of income I would say anywhere between sixty thousand and ninety thousand. Americans, Hispanic Americans and African Americans are the groups that highly invest in the vehicle.

similar to that of share buyback, the number of new shares outstanding will reduce; thus,

Mustang had a sleek design that everybody liked. It was two doors, big tire, and stripes running down the hood. As stated by the book muscle cars, “the main selling point what was under the hood it was the magnificent styling that caught America’s attention and made mustang one of the most successful first year cars ever with more than 100,000 sold.” When released it only cost 2300 dollars.

Furthermore, this car interests me because at the price one could completely personalize his or her dream Mustang for only $2,320. Ford would sell close to 417,000 Mustangs within the first year (Tucker).

The price went down from $825 to $575 4 years after production had started. With this price drop, Ford mostly had reached his goal. By this point, most people had a Model T, and even more people were buying them. At the end of its production, over 15 million Model Ts rolled off the property. With this drop in its price and more people buying the car, the employees wage went up tremendously. It went all the way up to $5 a day. This was big bucks for the time and also it was double that of an average daily wage for back then. While he was giving them much more money, he also expected every single one of his employees to own a Model T and no other auto mobile.

This auction set to go off at the Mecum Chicago sale is expected to pull a huge number of fans with the Ford Mustang being a favorite of many. This Ford Mustang original owner is Dave Lyall who got it for a buck according to Ford's standard agreement with its sponsored racers. The factory engine specialist took it for restoration before taking it for auction and it now comes with a Hurst four-speed shifter to boost its performance. While it maintains the original livery driven by Dave, changes have been made including Eight inch Blue Streak Slicks and Crager SS

In many cases this level of marketing has fostered premium prices, and dealership refusal to honor ongoing promotions, such as employee pricing.

In April 2000, Ford Motor Co. announced a shareholder Value Enhancement Plan (VEP) to significantly recapitalize the firm's ownership structure. Ford had accumulated $23 billion in cash reserves and under the VEP would return as much as $10 billion of this cash to shareholders. In exchange for each share currently held, the plan would give stockholders one new share plus the choice of receiving $20 in either cash or additional new Ford common shares. Shareholders electing to receive cash would be taxed on these distributions at capital gain rates. Among other things, the plan provided a means for the Ford family to obtain liquidity without having to dilute their 40% voting interest (even though they own

The rental car industries as well as other industries within the travel market are challenged with developing a pricing strategy that will maximize profits for the firm. In our analysis of three firms, Hertz, Avis and Budget, our team used qualitative and quantitative methods to develop an understanding of their pricing strategies. We wanted to determine which company has the best overall pricing strategy. Furthermore, these methods helped us develop recommendations involving segmentation and brand differentiation that will help these rental car companies insure greater profitability through pricing that will minimize consumer surplus. Our examination of the three rental car companies and their pricing strategies begins with industry and

The Mustang is segmented by end user. Mustang buyers are typically male, and relatively young, with the company attempting to reach ever-younger segments of the market to ensure that the car maintains its market share (Greenberg, 2009). The company also uses special models in order to maintain interest in the Mustang among pony car aficionados, many of whom are older, are interested in collecting, and remember the Mustang's glory days in the 1960s. Thus, the bulk of Mustangs are sold to today's core target audience, but the company also uses the brand to market to some middle-aged and older males as well, in a more premium segment, where marketing is based primarily on nostalgia for the Mustangs of old, and the new cars that capture that aesthetic.

- The price coefficient is set at the maximum 4% because of how price sensitive the automotive market is. Everyone bargains deals and takes advantage of special pricing and financing. Hybrid buyer market is no longer occupied by the same type of people; people are now chasing prices and maximizing the

Before we pulled into the dealerships parking lot, we set Mike’s parameters out. Mike was going to be interested in a brand new 2013 Ford F-150 pickup truck, while trading in his 2007 Jeep Grand Cherokee, and having upwards of $10,000 cash to put down as a down payment. Sure those numbers sound steep for a college student, but when in the market for a truck priced at over $40,000 MSRP, we had to make it appear somewhat reasonable for the lurking salesman.

Ford Motor announced its value enhancement plan (VEP) in 2000 to restructure its ownership. With the new VEP, Ford aimed to pay $10 billion cash back to its shareholders. Basically, the VEP provided all the existing shareholders, including the family and common shareholders, a proposal to exchange their shares one-for-one for new shares accompanying with an additional option of ei-ther achieving $20 per share or equivalent extra new shares based on the Ford’s new stock price. Compared with two conventional pay-outs methods – cash dividends and share repurchases, Ford’s VEP is a more flexible way. The reasons are as follows:

Being a world-class classic sedan car M5, it targets the middle or high income people as their customers. And these target customers will not usually pay seriously attention on the price. So the purchase decision made by this group of people will always depend on the product features, quality or even just image. These target customers and up-to-date technology make M5 stay a high price.

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).