Running head: MAGENTA AUTO MARKETING PLAN
Magenta Auto Marketing Plan
MKT 500
Dr. Ananiewicz
Strayer University
Olin Frye
Date: 8/3/17
MAGENTA AUTO MARKETING PLAN
Magenta Auto marketing plan
Organizational overview and product offering
Magenta Auto is car manufacturer and seller in based in the United States. The
company has been in operation for close to ten years. Being among the most innovative
companies in the lucrative automobile industry, the company has experienced immense
growth and particularly in its One line of motor vehicles. Unlike the first few years when the
company’s sales were restricted to the US due to the lack of elaborate marketing framework,
the company’s products have experienced increased popularity all over the world. Presently,
overseas sales contribute close to half of the company’s revenues. One of the innovations that
have been steering the company is the eco-friendly engines powering its vehicles as well as
the recent inclusion of the hybrid cars. In this case, all Magenta One H series automobiles are
all fitted with a combination of economical fossil fuel and electric transmission lines to ensure
that they are not only economical to operate but also efficient, more reliable, and sustainable.
Coincidentally, this comes in the wake of widespread ecological awareness and at a time
when automobiles are striving to develop more environmental-friendly products.
Environmental analysis
PESTLE analysis
Political
The automobile is based in the US. At the same time, its major operations, which
include manufacturing and the core of the supply chain, are located in the US. However, the
recent growth in the company’s economic status and market share is partly due to the
favorable political situation in the US as well as Europe, which forms its second largest
market. However, the situation is not favorable in parts of the larger Asia and the Middle East
and particularly with the ongoing diplomatic wrangles in the region (Latiff & Hassan 2017).
MAGENTA AUTO MARKETING PLAN
Environmental
Other than the political situation in the leading markets, the economy has been
performing well. Unlike a decade ago when the company faced economic turmoil that
threatened its operations due to the Great Recession, the US and most other parts of the world
are currently performing well (Lederman, Lederman & Porto, 2016). Despite a rising inflation
rate in some markets such as the US, Lederman et al. (2016) expect that the market would
continue to be sustainable especially since the company constantly derives cost-saving
manufacturing methods over time.
Sociocultural
There are a number of sociocultural factors that favor the company’s operations.
Notably, the popularity of hybrid cars has been rising. At the same time, more people are
currently interested in electric. Although the company has not yet developed fully-electric
cars, this is an indication that there is a potential market.
Technological
There is a rising trend in the application of technology in the automobile industry
through computerization of the vehicles. Unfortunately, this is accompanied by a similar wave
in cyber crime and that creates a threat to the industry. Other technological advancements
such as e-commerce are also on the increase, which creates an even more efficient mode of
marketing and ordering of the products.
Legal/Environmental
There is a decline in the global fossil fuel reserves. Although this is a threat to some of
the manufacturers, it turns out to be an opportunity to Magenta Auto due to anticipated rise in
market share. This is further accelerated by increased emphasis on business sustainability and
MAGENTA AUTO MARKETING PLAN
an outcry on climate change which might see a reduction in fossil fuel-propelled vehicles
(Samuels, 2007).
Market analysis
The automobile industry has been in existence since the late 19th century. In this case,
some of the industry pioneers such as Mercedes are still in the market and, with their many
years of business, the companies have managed to amass vast resources that facilitate their
operations and vigorous investment. In fact, this is a threat to startups due to their lack of
popularity and also challenges in the sustainability of operations due to the limitation of
resources. Unfortunately, the market has been declining in the US. Only a models from some
of the leading companies, and primarily the innovative ones, have been recorded an increase
for the past few years. The US industry has for long been dominated by General Motors
followed closely by Ford, Chrysler, Toyota, and Honda in that order (The Wall Street Journal,
2017). Although Magenta is not in the leading end, it is likely that the company may join the
leading five particularly due to the increase in the demand for both electric and hybrid cars.
Fig 1: Trend in US Auto industry
Source: http://online.wsj.com/mdc/public/page/2_3022-autosales.html
MAGENTA AUTO MARKETING PLAN
Competition is stiff in the hybrid auto market. In this case, some of the industry giants
such as Ford, Nissan, and Chevrolet, among others have been performing well in the recent
past. At the same time, other companies such as Tesla, which is known for its robustness in
terms of innovation have been leading in both the hybrid and electric cars arena (Girard &
Polaris Institute, 2011). This means that, although the market is heavily potential, the road for
Magenta Auto will not be smooth, and the company will need to face the long-time giants for
a chance to dominate the market.
SWOT analysis
Strengths
Magenta Auto has a few strengths like a recent continuous rise in the growth rate even
when other companies have been experiencing a decline. At the same time, the company has
developed a state of the art facility particularly since it was just conceived recently. Other
companies continue to operate in old facilities that have been in use for decades and that
might not be cost effective.
Weaknesses
Magenta faces a number of weaknesses such as lacking economic might necessary to
face off some of the largest market leaders. As such, it might take time before the company’s
dream is achieved. At the same time, it faces stiff competition from the likes of Tesla. The
company is still in the process of developing fully-electric cars when other manufacturers
already have the products in the market.
Opportunities
MAGENTA AUTO MARKETING PLAN
There are a number of opportunities that the company can capitalize into so as to raise
its performance. One of these is new markets such as Asia and Africa. At the same time, ecommerce is a good opportunity for the company to augment its global distribution.
Threats
Unfortunately, there are a number of threats such as declining market in the US. At the
same time, rising competition and new entrants, as well as more innovative companies such as
Tesla are a threat to Magenta’s operations.
Organizational goals
Since Magenta is still new in the market, the primary focus is to expand its US market
share. In this case, the short-term goals involve fostering continuity of operations and
sustainability as well as advancing eco-friendly innovation through development of more
advanced hybrid vehicles. The company also seeks to raise the market share by at least 0.75%
in the next 2 years and the profitability by 25% at the same period.
In the long-run, the goals will shift from local to the international market. In this case,
the primary goal will be to emerge among the leading global automakers and with operations
in every continent. Additionally, the company seeks to emerge as the leading manufacturer
and seller of both hybrid and electric cars in the US and other parts of the world.
MAGENTA AUTO MARKETING PLAN
References
Girard, R., & Polaris Institute. (2011). Electric car report: What are the prospects for an
electric car industry in Canada and is this a real or false solution for climate change?.
Ottawa, Ont: Polaris Institute.
Latiff, R. & Hassan, S. (2017). Muslim Asia caught in the middle as diplomatic row rocks
Middle East. Reuters. Available from http://www.reuters.com/article/us-gulf-qatarasia-idUSKBN18X153
Lederman, D., Lederman, D., & Porto, G. (2016). The Price is Not Always Right: On the
Impacts of Commodity Prices on Households (and Countries). Washington, D.C: The
World Bank.
Samuels, R. (2007). The proposed Canadian Automobile Transport and Arctic Climatic
Protection Act: Toward an environmentally-sensitized and truly made-in-Canada car
inspired by the Avro Arrow. Kanata, Ont: Agora Cosmopolitan.
The Wall Street Journal (2017). Market Data Center: Auto Sales. WSJ. Available from
http://online.wsj.com/mdc/public/page/2_3022-autosales.html
Running head: MARKETING PLAN
1
Marketing Plan
Name
Institution Affiliation
MARKETING PLAN
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Marketing Plan
Magenta auto Car Corporation remains to be one of the most renowned manufacturers
and at the same time, seller of cars in the United States of America. Due to the increased
innovation of the company, it has been in the position of ensuring increased growth, especially in
the motor vehicles. Additionally, due to improved marketing strategies, the company has been
able to sell its products across the globe leading to increased sales and profits. During the
analysis, there will be the elaboration of the branding strategy capitalized by the company.
Additionally, there will be assembling of the marketing strategy of the product; its
positioning statement where there will be the involvement of the perceptual maps. Besides, it
will be worth to ensure that there is examining the relevant consumer behavior of the target
market and be able to develop the mission statement of the company. Through this, the company
will be able to analyze its goals and objective and remain competitive in the global marketplaces
(Jain & Haley, 2009).
Branding Strategy
Branding strategy is the long-term plan, which is developed to ensure that there is a
successful brand for the achievements of specific goals in the organization. In most of the times,
the branding strategies affect all the functioning of the organization and it is mostly connected
with the needs of the consumers, emotions and at the same time, competitive environment of the
competitive analysis. Magenta auto Car Corporation should ensure that there is the involvement
of effective brand strategy to ensure that they are competitive in the global marketplaces Arthur
(Rooney, 2005).
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It is the role of the management to ensure that there is coming up with effective branding
strategy of the products produced to appeal to the consumers. During the process of branding the
company’s products, it is important to analyze the target markets since they are most important
individuals for the success of the company. The brand name is to ensure that the company
remains competitive in the global market. This will be realized if there is the involvement of
effective slogan that will be determined by production of quality products, which can satisfy the
needs and demands of the customers.
Marketing strategy
Marketing strategy remains to be an effective goal that can be utilized by the Magenta
Corporation in ensuring that there are increased sales and be in a position of achieving a
sustainable competitive advantage. During the marketing strategy, it is important to involve
short-term and long-term activities to formulate, evaluate and at the same time, selection of
marketing-oriented strategies. During the process of coming up with the marketing strategy of
Magenta Corporation, it is important to address the targets markets for the process to remain
successful. Therefore, it is important for the management and leaders, to have a clear decision on
their key targets markets. This is because; it is through the targets markets that the marketing
strategy can be analyzed effectively. The timetable through which the strategy will be implanted
will be dependence on the basement of the gender, sexes, and ages of the target markets
(Cavusgil & Zou, 2004).
Positioning statement
A positioning statement remains to be an expression of how a given product or brand fills
a particular consumer need, which is different from competitors. As a socially responsible
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enterprise, Magenta Auto Car Corporation is in a position of manufacturing high-quality cars that
can be able to satisfy the needs of the customers. Additionally, the products of the company are
safe from the pollution of the environment, which is affordable to all customers. The positioning
statement can be executed in more than ten years ago since it is based on developing its products
in diverse marketplaces. The perceptual map of Magenta Corporation is that “the product of the
company will be of quality to satisfy the needs of the customers.”
Consumer behavior
Consumer behavior remains to be the study of individuals, groups and at the same time,
organizations and the processes that are capitalized in selecting, securing and using the product.
The consumer decision- making the process of the consumers is important since it ensures that
there are the recognition and awareness of the problem and evaluation of alternatives. Before, the
process of the consumers buys a product; they make sure that they have a clear knowledge of its
functional characteristics and its quality (Peter, Olson & Grunert, 2009).
Additionally, the customers can be interested in comprehending the information related
to the manufacturer of the product, its reputation, and materials capitalized in the process of
manufacturing. Therefore, it is the role of the management to ensure that they produce quality
products, which can address all the needs of the customers. The brand name, logo, slogan, brand
extension and positioning and marketing strategy of the company are important for the target
market since they will determine how the customers will be motivated in doing business with the
company.
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Mission statement
The mission statement remains to be a short statement of the organization purpose,
through the identification of the scope of its operations, the kind of products produced and its
primary customers. Magenta Auto Car Corporation mission statement is to make sure that there
is the production of experience to every customer in a friendly, professional and efficient
manner, thus ensuring that there is the creation of the true consumer value. Additionally, the
mission statement of the company will be motivated through treating the customers as the family
to meet their transportation needs. The mission statement is much important for the success of
the company since all the stakeholders will be working towards the achievement of its mission to
the shareholders and customers.
Conclusion
The success of the company remains to be paramount that there is the need for involvement of
multiple elements for this to be achieved. Therefore, it is the role of the management of the
corporation to ensure that there are effective marketing and branding strategy of the company.
This is because, if there are effective marketing and branding strategy, the needs of the
customers will be realized. Through this, there will be increased sales and profitability of the
corporation in the competitive global marketplaces.
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References
Arthur Rooney, J. (2005). Branding a trend for today and tomorrow. Journal of product & brand
management, 4(4), 48-55.
Cavusgil, S. T., & Zou, S. (2004). Marketing strategy-performance relationship: an investigation
of the empirical link in export market ventures. The Journal of Marketing, 1-21.
Jain, S. C., & Haley, G. T. (2009). Marketing planning and strategy. Cincinnati South-Western
Publishing Company 1985..
Peter, J. P., Olson, J. C., & Grunert, K. G. (2009). Consumer behavior and marketing strategy.
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