Magna International Inc.: Analysis of a Marketing Strategy Report

This report provides a comprehensive marketing strategy analysis for Magna International Inc., focusing on the introduction of a new product line within the automotive industry, specifically braking systems. The report begins with an overview of Magna International, detailing its history, mission, core values, and business portfolio. It then delves into an industry analysis, examining the automotive components sector's size and growth potential, followed by a competitive analysis that identifies key rivals and their strengths and weaknesses relative to Magna. A SWOT analysis is conducted to evaluate the product's strengths, weaknesses, opportunities, and threats. The report also examines the market mix (4Ps), including product, price, place, and promotion strategies, and identifies the target market. The analysis further differentiates Magna from its competitors, positions it within the market, and assesses its brand value. Finally, it reviews Magna's current marketing strategies and offers concluding remarks, referencing various sources to support its findings. The assignment aligns with the provided brief, covering the required elements of an alternative marketing plan project.

Running head: MAGNA- MARKETING STRATEGY
Magna- Marketing Strategy
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1MAGNA- MARKETING STRATEGY
Executive Summary
This report is a Market strategy for introducing a new product range by Magna
International Inc. This report provides a SWOT analysis to analyze the conditions and the foster
a market mix comprising the four Ps to anticipate the success of the product in the market.
Table of Content

2MAGNA- MARKETING STRATEGY
s
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Overview of the company............................................................................................................3
Industry Analysis.........................................................................................................................4
Competitors..................................................................................................................................4
SWOT Analysis...........................................................................................................................4
Market Mix (4Ps).........................................................................................................................5
Target Market..............................................................................................................................5
Difference with other competitors...............................................................................................5
Position in the Market..................................................................................................................6
Brand Value.................................................................................................................................6
Present Marketing strategies........................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

3MAGNA- MARKETING STRATEGY
Introduction
Magna International Inc. is automotive component manufacturing company. It was titled
as the largest manufacturer for automotive parts in North America back in 2014 and still holds
the position (Autonews.com 2019). The company have some very big automotive manufacturers
as its clients. This report is a Marketing strategy for the company for introducing a new line of
product in the market. This report identifies and analyses the key elements in implementing the
new product to the market and trying to anticipate the response of the consumers for the product.
Discussion
Magna International Inc. is auto components manufacturing company and is planning to
introduce a new product in the market. The Company is trying to set feet in the braking segment.
The marketing strategy and other relevant facts about the company is discussed in this report.
Overview of the company
Magna International Inc. is automotive component manufacturing company operating
globally and having headquarters in Aurora, Ontario. Back in 1957, Frank Stronach founded the
company named as Multimatic Investments Ltd. Later on, the company collaborated with Magna
Electronics in 1969 and the venture together emerged as Magna International Inc. in 1973. The
Culture at Magna is that the company in unique ideas to come from unique perspective. The
company supports its employees to become future leaders. The company is leading in the fast-
paced culture and meanwhile endorse diversity in its work force as well. The company believes
that there are no limits at Magna (Magna 2019).

4MAGNA- MARKETING STRATEGY
Industry Analysis
Ever since its foundation, Magna International Inc. have experienced growth. The
company have expanded it services and is offering powertrain, exterior, seating, body and trim,
electronics and other solution to big automotive clients such as Tesla Motors, BMW, Toyota and
Volkswagen as its clients. In 2015, Magna International Inc. acquired Getrag a German company
for manufacturing transmission systems including its 13,500 employees for 1.9 billion dollars
(Automotive News 2015).
Competitors
Competitors or rival organizations in business are companies performing similar
functions. The competitors bound the company to introspect and constantly look for
opportunities for development (Zakari, Poku and Owusu-Ansah 2013). The major competitor to
Magna International are identified as “AKEBONO” OEM brake supplier (Akebonobrakes.com.
2019), “American Axle and Manufacturing” an axle manufacturing company, “Lear
Corporation” a company manufacturing automotive seating and electrical system and “Visteon”
an engineering design, electronic, interior system and innovative climate control supplier.
SWOT Analysis
SWOT Analysis is an analysis tool to the management, which readily generates facts like
strength, weakness, opportunities and threats for an organization or its functioning (Gürel and
Tat 2017). The SWOT analysis of the braking segment at Magna International Inc. is as follows:
 Strength- The brand value and reputation of the organization.
 Weakness- Less experience in the domain of manufacturing braking system for
automotive applications.
 Opportunities- target new section of the market and potential sector for business growth

5MAGNA- MARKETING STRATEGY
 Threats- Rival industries offering similar products in the market.
Market Mix (4Ps)
Market mix is a tactical marketing tool to the management comprising of different
control variable used to anticipate the market response of the product. There are four area under
consideration contributing to the marketing mix, namely the four Ps (Išoraitė 2016).
 Product- the product is the new range of braking solution in the automotive industry.
 Price- the price of the products roughly varies around 200 dollars varying on the quality
of the product in the segment
 Place- the operation is global so the product will be made available to the clients globally.
 Promotion- the product will be used in automotive applications.
Target Market
Understanding the market is a very essential step to ensure the success of the product.
The needs of the consumers must be understood and addressed with full commitment to keep
edge in the market. The product under consideration is the new range of braking solution being
offered by Magna International Inc. The company have big automotive brands as its clients for
their products such as Tesla, BMW, Toyota, Volkswagen and Mercedes (Magna 2019). Thus the
market is the prevalent clients and some potential other automakers.
Difference with other competitors
The major difference Magna International Inc. and other rival is the wide range of
services being offered by Magna International. The company specializes in a broad range of
automotive solutions by the top-notch technology assistance and highly experienced and skilled

6MAGNA- MARKETING STRATEGY
employees. The services offered are exterior, seating, body and trim, lighting or electrical
systems. Other rival specialize in on or to domains and do not stand near the company in terms
of size and revenue.
Position in the Market
With a total revenue of 40.8 billion US dollars, Magna International Inc. is one of the
biggest valued organization in terms of revenue in Canada. The company supplies automotive
components to the big automakers such as Ford, GM, Tesla, Chrysler or LLC. The company
have an approximate of 174,000 employees among 348 different manufacturing operations in 29
different countries (Magna 2019). Magna International Inc. is a global organization and have
some really big automotive manufactures as it major client. The company holds a very strong
reputation in the market being the supplier of such big companies.
Brand Value
Magna International Inc. was identified with several Automotive News PACE Awards
for innovation in various automotive domain. Magna International Inc. was the one to supply an
entire electric drivetrain on 2012 Ford Focus electric, in the year 2011. Which later on was the
first all-electric production vehicle from Ford and was awarded as the Green Car Vision Award
at the Washington Auto Show in 2011 (Automotive News 2011). These facts suggest that the
brand have a very reputed name in the market and is a trusted partner for its clients.
Present Marketing strategies
The clients itself of the company are the customers who they have to care for. The
products manufactured are as per the requirements of the clients. However, any new product is
marketed through the tradition and conventional methods such as media release, press release, or
auto exhibition shows or events.

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Conclusion
The marketing report for the new product range identifies the potential threats as the
competition in the market from the rival industries and weakness as the lack of experience in
brake manufacturing domain. The report suggest that entering into the new segment of market
with a new product is a potential opportunity to the company for business growth.

8MAGNA- MARKETING STRATEGY
References
Akebonobrakes.com. 2019. Home | Akebono. [online] Available at: https://akebonobrakes.com/
[Accessed 26 Jul. 2019].
Automotive News. 2011. How Magna's electrified Focus wowed Ford. [online] Available at:
https://www.autonews.com/article/20110801/OEM01/308019963/how-magna-s-electrified-
focus-wowed-ford [Accessed 26 Jul. 2019].
Automotive News. 2015. Grupo Antolin completes purchase of Magna interiors unit. [online]
Available at: https://www.autonews.com/article/20150831/OEM10/150839988/grupo-antolin-
completes-purchase-of-magna-interiors-unit [Accessed 26 Jul. 2019].
Autonews.com. 2019. [online] Available at:
https://www.autonews.com/assets/PDF/CA116090622.PDF [Accessed 26 Jul. 2019].
Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical review. Journal of International
Social Research, 10(51).
Išoraitė, M., 2016. Marketing mix theoretical aspects. International Journal of Research–
Granthaalayah, 4(6), pp.25-37.
Magna. 2019. Company. [online] Available at: https://www.magna.com/company [Accessed 26
Jul. 2019].
Magna. 2019. Customers. [online] Available at: https://www.magna.com/company/company-
information/customers [Accessed 26 Jul. 2019].
Magna. 2019. News Release - Geneva Motor Show: Magna Demonstrates Complete Vehicle
Engineering Competence . [online] Available at:

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https://www.magna.com/company/newsroom/releases/release/2019/03/05/news-release---
geneva-motor-show-magna-demonstrates-complete-vehicle-engineering-competence [Accessed
26 Jul. 2019].
Zakari, M., Poku, K. and Owusu-Ansah, W., 2013. Organizational culture and organisational
performance: Empirical evidence from the banking industry in Ghana.