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Ford Motor Company Research Essay Paper In May 1968, Ford Motor Company began designing and developing a subcompact car, which it ultimately named the Ford Pinto. Because Ford wanted to gain a large market share, the entire design and development process was accelerated.

On August 10, 1978, three Indiana teenage girls in a Ford Pinto were killed in a rear-end collision with a van. Two of the passengers were burned to death in the car, and the other was ejected from the vehicle and later died. During the investigation, law enforcement discovered drugs and alcohol in the van that rear-ended the car.

Following an investigation, the prosecutor took the unusual step of pursuing criminal charges against Ford. The charges related to specific design elements of the vehicle. The Ford Pinto was unusual because the fuel tank was located behind the rear axle instead of above it, and the distance between the rear axle and the fuel tank was only nine inches. The fuel tank was also prone to puncture in a rear-end collision because of the placement of bolts. Finally, the fuel filler pipe design made it more likely that it would disconnect from the tank in the event of an accident, which increased the likelihood of fuel spills.

Ford Motor Company Research Essay Paper

Even prior to the death of the teenage girls, Ford had been aware of the Ford Pinto susceptibility to fire in rear-end collisions. In 1973, Ford conducted an internal analysis of the costs and benefits of retrofitting existing vehicles and altering the design for the production of new vehicles. In addition, Ford considered the option of doing nothing. The cost-benefit analysis was presented to senior management, and the memorandum outlining the analysis later became public.

The following figures are from that memorandum and compare the two options: (i) repairing existing vehicles and modifying the design of vehicles to be built; and (ii) doing nothing.

Expected Cost of Repair/Modification:

Cost per unit: $11.00

Number of units: 12.5 million

Total cost: $137.5 million

Expected Costs of Accident Results (assuming out-of-court

settlements to pay the victims and their families):

Burn deaths: 180 x $200,000 per person

Ford Motor Company Research Essay Paper

Serious burn injuries: 180 x $67,000 per person

Burned-out vehicles: 2100 x $700 per vehicle

Total costs: $49.53 million

Final Analysis:

Cost of Repair/Modification: $137.50 million

Less Cost of Accident Results: $ 49.53 million

Difference/Savings: $ 71.47 million

Based upon its analysis, Ford decided not to repair existing vehicles or modify the design for vehicles it was producing. Instead, it elected to pay the victims and their families, which was estimated to produce a cost savings to the company of over $70 million dollars.

It is unclear exactly how this information was utilized by Ford management, and even today, controversy remains about how early senior managers became aware of the problem of crash-induced fires in the Ford Pinto.

Ford Motor Company Research Essay Paper

Discuss your answers to the following questions in detail and cite references to materials above and outside sources (as appropriate):

1. Is it ethical for a company, such as Ford, to perform a cost-benefit analysis when human lives are involved? Why or why not?

2. Assume that the Ford Pinto met the safety requirements imposed by law at the time. Did Ford have a higher obligation because it knew of the gas tank issues but the general public did not? Why or why not?

3.Fast forward to today. If a situation like this arose today, would a company address it in the same way as Ford did in the 1970s? Why or why not?]

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Brand Research on Clorox Laundry Detergent A Consumer-centric Approach ñ Determines brandís boundaries

In the early 90ís Brand Extension Research conducted a brand extension research study for Clorox. At that time, Clorox Laundry Detergent had recently been launched and failed. Management told us they were unsure why. We asked them how they defined the business of the Clorox brand. They told us they viewed their business as laundry and household cleaning products, hence the launch of detergent. In our work, we concluded this was not the way consumers saw it. Managers had various preconceived concepts they wanted us to examine such as Clorox automatic dishwasher detergent, carpet cleaner, oven cleaner, and liquid dishwashing detergent. Not surprisingly, the Clorox brand was synonymous with bleach. Clorox means bleach!

Brand Research on Clorox Laundry Detergent

Leverage an Ingredient ñ know the perceived ëgoodí and ëbadí uses

The brandís boundaries and leverage evolved from this perception. People have a love/hate relationship with bleach. It cleans, brightens, deodorizes, disinfects, kills germs, kills mold or mildew, removes stains, etc. but it is difficult to handle, caustic, toxic and can damage some surfaces. It is powerful, effective, and for tough jobs. We provided the client with a definition of the business derived from these consumer perceptions: ìChemical products that are bleach, contain bleach or provide the benefits of bleach for the tough jobs of cleaning, disinfecting (and sometimes killing mold, brightening or removing stains) on surfaces which consumers perceive would not be harmed by bleach.î

Defining the ‘Business’ of the Brand

Brand Research on Clorox Laundry Detergent

The concepts management were considering were all rejected by consumers. Here is what consumers said about them:

ï Clorox laundry detergent ñ could fade or discolor clothes

ï Clorox automatic dishwasher detergent ñ could take the finish off the china

ï Clorox carpet cleaner ñ could take the color out of the carpet

ï Clorox oven cleaner ñ corrosive on metal, fumes could be toxic

ï Clorox liquid dishwashing detergent ñ canít use on aluminum, harsh on hands

Instead, we pointed out that the probability of brand dilution was negligible if the company launched brand extensions that were bleach or contained bleach and promised bleach benefits. We recommended these items:

ï Clorox sanitizer and cleaner

ï Clorox toilet bowl cleaner

ï Clorox toilet bowl drop-ins

ï Clorox tub & tile cleaner

ï Clorox drain cleaner

ï Clorox mold & mildew eater

ï Clorox sidewalk & driveway cleaner

Creating a Brand Plan

Brand Research on Clorox Laundry Detergent

We provided a brand plan advocating the household sanitizer/cleaner product be introduced first. It had the broadest appeal and helped customers adjust to Clorox moving out of the laundry room. Then the other products like toilet bowl cleaner would be more acceptable and expected by consumers. One of the surprises for the company was that their main competitor was not going to be other laundry products companies, but Lysol. While Lysol then ìownedî the benefit of disinfecting, it was not thought of as a strong cleaner. Also, consumers didnít know how Lysol disinfects. This offered the opportunity for a Clorox sanitizer cleaner to position itself as a stronger version because of the ingredient of bleach.

From a brand perspective, what was the brand image or central meaning of Clorox? In other words, what did customers associate with Clorox in terms of ìperformanceî attributes/benefits or ìimageryî attributes/benefits? How was the Clorox family brand able to provide points of difference over other brands in the natural household cleaners market?

Discuss the Green Works brand architecture. What type of brand is this (i.e., the house of brands, branded house, sub-brand, endorser brand)? What role does Clorox play? Greenworks? 2 pages!!!

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