Analyzing Marketing Strategies of a Real Business

Analyzing Marketing Strategies of a Real Business

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Analyzing Marketing Strategies of a Real Business

Magna International

Magana International is an automatic manufacturing corporation in Canada. Frank Stronach and his partner originally founded the firm in 1957 (Forbes, 2022).  The company was initially called MultiMate Investments Limited until 1973 when it was changed to its current name (Forbes, 2022).  The headquarters of Magna is in Aurora, Ontario, Canada.  The company in the design and manufacturing of automotive systems, parts, and technology. The firm operates in four segments comprising:  power and vision entails electronic systems, powertrain, mirrors, mechatronics, and lighting operations.  The seating systems; body exteriors and structures and complete vehicle (Forbes, 2022). This paper aims to have an in-depth comprehension of Magna International by exploring its marketing mix, target market, and market segmentation.

Marketing Mix

An advertising professor at Harvard University, Neil Borden, popularized the 4Ps in the 1950s as part of the general marketing mix (American Marketing Association, 2022).  The four Ps stand for Product, Price, Place, and Promotion.

• Product: Product is what a business sells, what firms make available to customers. A company’s product should satisfy the existing customer demand.  Magna International has transformed the way vehicles operate by providing scalable electrified propulsion, lighting, mechatronics, driver assistance systems, and lighting (Magna, 2023).  The company also offers flexible seating solutions and complete manufacturing and engineering of its vehicles.  For example, Magna has produced popular machines, including the BMW 5 series, Jaguar E-PACE, Toyota GR Supra, BMW Z4, Jaguar I-PACE, and Mercedes Benz G-Class (Callahan, 2022).
• Price: this is the amount of money that a business charges its customers for its products (American Marketing Association, 2022). Prices should be linked to the actual and perceived value of the product.  Setting the right prices leads to increased sales and profitability of the business. For example, Magna uses a premium pricing strategy by setting the price of its products at 20 percent more than the average prices of similar products to depict luxury.  The average selling pricing to its product I about C$ 84.53 per unit (Tipranks, 2023).
• Place: this is the location where the business is situated and how consumers can access the products.  Place can be an e-commerce website or a brick-and-mortar store. Magna makes sells its automotive parts through convenience stores, to ensure accessibility by consumers.  The company sells its products through online stores and physical stores.
• Promotion: this entails all the public relations and advertisements that a business uses to promote its products.  The main aim of promotion is to tell consumers the benefits of the product, how it will help solve their problems, and the value offered by the products (American Marketing Association, 2022). The corporation uses numerous mediums to promote its products including TV commercials, social media, digital advertising, and in-person promotions.

Target Market

The target market consists of the end users to whom a business wants to sell its end product.  Thus, target marketing entails breaking down the whole market into numerous segments and planning marketing approaches accordingly for every section to increase the market share (econ).

Magna International supplies its auto parts to companies such as General Motors, Chrysler LLC, and Ford Motor Company (Magna, 2023a). The company also designs and manufactures cars for Tesla Motors, Toyota, Volkswagen, and BMW (Magna, 2023a). The companies sell luxurious cars, and their target customers are people of high social status who like spending on luxury cars.

Target Market Profile

Segmentation

This is the initial stage for tailoring promotional activities. Market segmentation involves a company dividing its target market into relevant groups (Camilleri, 2019).  It forms a subset of a market depending on the demographics, priorities, preferences, needs, and other behavioral and psychographic traits to have a better understanding of the target audiences (Camilleri, 2019).  Market segmentation is crucial for generating higher profits, attracting the right consumers, offering a solid marketing approach, increasing customer loyalty, and having the capacity to differentiate products from competing ones (Camilleri, 2019).

Examples of products tailored to specific segments

• Complete Vehicle

Magna provided vehicle complete engineering and manufacturing for different car brands to satisfy its customer’s needs. For example, the company manufactures BWM, Volkswagen, Tesla, and Toyota cars. For example, the YouTube ad showing Magna Styr’s one-stop shop.

• Power and Vision:

the company provides driver assistance systems, lighting, mirrors, and mechatronics to customers who only want to purchase these car parts. The Magna vision video.

• Seating Systems:

the company offers solutions by providing flexible seats to its customers. The firm provides complete seats, foams and trims, structural products, and electronica and sustainable seats.  This is meant for consumers who only need to purchase quality seats from the company.  For example, on their YouTube page, the company showcases the Magna ZG lounger seat.

Case Study Analysis and Conclusion

Magna International is an automotive manufacturing company based in Arora, Canada.  The company utilized the four Ps of marketing strategy.  Magna offers high automotive products comprising of power and visions, body exteriors and structures, seating systems, and complete vehicles. Magna employs a premium pricing strategy and its average selling pricing for its product I about C$ 84.53 per unit. The company makes its products available to customers through convenience stores, online, and physical stores. The corporation uses numerous mediums to promote its products including TV commercials, social media, digital advertising, and in-person promotions.  The target market for Magna is automotive brands, like BMW, auto part companies, as General Motors, and wealthy individuals who want to purchase car parts or whole cars. The company has grouped its customers and thus provides products according to consumers’ needs. Overall, Magna employs effective marketing strategies which makes the company a success.

References

American Marketing Association. (2022, July 12). The Four Ps of Marketing. American Marketing Association. https://www.ama.org/marketing-news/the-four-ps-of-marketing/#:~:text=The%20four%20Ps%20of%20marketing%20is%20a%20marketing%20concept%20that

Callahan, S. (2022, July 19). Get to Know Magna, the Company Building Fisker Ocean. Fiskerati. https://fiskerati.com/electric-vehicles/fisker/fisker-ocean/get-to-know-magna-the-company-building-fisker-ocean/#:~:text=The%20company%20supplies%20parts%20for

Camilleri, M. A. (2019). Market Segmentation, Targeting, and Positioning. Tourism, Hospitality & Event Management, 1(1), 69–83. Researchgate. https://doi.org/10.1007/978-3-319-49849-2_4

Forbes. (2022). Magna International | Company Overview & News. Forbes. https://www.forbes.com/companies/magna-international/?sh=167326a64a3d

Magna. (2023). Products. Magna. https://www.magna.com/products

Magna. (2023a). Magna International, Inc. Net Promoter Score 2023 Benchmarks | Customer. guru. Customer. guru. https://customer.guru/net-promoter-score/magna-international-inc#:~:text=Magna%20manufactures%20auto%20parts%20that

Tipranks. (2023). Magna International (MG) Stock Forecast, Price Targets, and Analysts’ Predictions – TipRanks.com. TipRanks | Know Who to Trust. https://www.tipranks.com/stocks/tse:mg/forecast