Ford Motor Company is attempting to boost dealer’s profit level with its Motorcraft parts division. The company is currently giving Motorcraft a major overhaul, which includes price reductions, more marketing spend and significant simplification.
Ford’s jumping-off point stems from spending nearly a year studying how to increase the profit level of dealership fixed operations. Their conclusion was to spend more effort behind Motorcraft. First and foremost they slashed prices on several Motocraft parts, such as a 15-precent price cut on brake pads. The price reductions are expected to make Motorcraft parts more competitive with those from auto parts stores.
Additionally, Motocraft has greatly simplified its product lineup. The company admits it has had an overly complex product lineup, such as having 24 oxygen sensors when one will accomplish the same tasks. Where possible, the company has trimmed the lineup and expanding the lineup of products that will work on the estimated 45 million 1990’s model Ford and Lincoln products on the roads.
These efforts need to be effectively communicated, so Ford has also increased Motorcraft’s marketing budget by 60-percent over last year, according to Brett Wheatley, executive director of North America Ford customer service division, in a conversation with Automotive News. The company has not disclosed the dollar amount of Motorcraft’s marketing budget.
Part of the marketing effort includes putting the Motorcraft logo on non-automotive products, such as mugs and t-shirts. However, the meat of their marketing will be in a continued sponsorship of NASCAR’s No. 21 car, and Ford service spokesman Dwayne “The Rock” Johnson will name-drop Motorcraft in upcoming national TV ads.
Thus far dealerships appear to be responding favorably to the changes.