Developing a Marketing Communication Plan for Mazda Motor Corporation

This report provides a comprehensive market analysis of Mazda Motor Corporation, focusing on its operations in Singapore. It uses SWOT and PESTLE analyses to evaluate Mazda's market position and the macro-environment in which it operates. The report includes a competitive analysis and an overview of Mazda's previous marketing communications. The core of the document is a detailed 12-month marketing communication plan, outlining promotional objectives, target market, promotional tools, media roles, and creative aspects. A Gantt chart and cost breakdown chart are provided to emphasize the implementation of the new promotional tools. The report concludes with strategies for Mazda to expand its operations, increase profitability, and establish itself as a leading automobile industry player. The document is contributed by a student and available on Desklib, a platform offering study tools for students.

Running head: MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
Market analysis of Mazda Motor Corporation
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1MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
Executive Summary:
The aim of the report is to analyse the marketing condition of Mazda Motor Corporation in order
to evaluate the promotional activities that the company presently engages. It also aims to depict a
promotional strategy for the company in a 12-month span so that the market expands for the
company and reach to the greater population in Singapore. The report primarily evaluates the
market situation of the motor company within the borders of Singapore using the SWOT analysis
and further depicts the macro-environment in which it operates by using the PESTLE analysis. It
highlights the competitive analysis of the company and forecasts its promotional activities. It
shows the previous marketing communications that Mazda used and finally sketches the new
promotional tools for the company, it uses the Gantt chart and the cost structure to emphasize on
the implementation of the new promotional tools in the company. The report shows that with
some of the strategies that the company can use, it can expand its operations and reach out to
more people. This would not only enable the company to establish itself and incur greater profits
but would also position it to be the leading automobile industry in the world.

2MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Analysis of the market of Mazda Motor Corporation.................................................................3
SWOT Analysis.......................................................................................................................3
Target groups and Customers..................................................................................................5
Competitive Analysis...............................................................................................................6
PESTLE Analysis....................................................................................................................6
Previous Marketing Communications.....................................................................................9
12-Month Marketing Communication Plan.................................................................................9
Promotional Objectives...........................................................................................................9
Target Market..........................................................................................................................9
Promotional tools...................................................................................................................10
Role of Media........................................................................................................................11
Creative aspects.....................................................................................................................12
Gantt chart.............................................................................................................................13
Cost breakdown chart for promotional activities...................................................................14
Controls..................................................................................................................................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

3MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
Introduction:
The Mazda Motor Corporation, commonly known as Mazda is a Japanese automaker
industry based in Fuchu, Aki District in Japan. In 2015, the multinational company was assessed
to be the fifteenth highest automaker in the world by its production. Jujiro Matsuda founded the
company in the year 1920 and Mazda now ranges in its production of automobiles, light trucks
and engines. The company has about more than 1,202,450 units and operates worldwide
(Mazda.com, 2018). Mazda had come into operation with its first three wheeled trucks. The
company evolved from being a machine tools manufacturing industry to vehicles with its
introduction of the Mazda-Go auto rickshaw. It is equally engaged in Corporate Social
responsibilities and has initiated the production of bio cars and other environmental concerning
projects that has enhanced its position in the market.
In Singapore Mazda is one of the highest selling car brand. There has been increase of
sales of 4% in the domestic market (Mazda.com.sg, 2018). The car company based in Asia has
been giving special importance to the Singaporean market. This is mainly because the very
diverse range of customer base in Singapore, and reaching a good volume of sales in Singapore
essentially reflects the company’s growth in overall situation. Singapore is also is one of the
most expensive countries in terms of owning a vehicle and arranging fuel. There are various
regulations in the country including “Certificate of Entitlement (COE)”, and “Electronic Road
Pricing”, which make it expensive to own a car in the country. However Mazda has steadily
maintained its sales.

4MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
In the year 2015, Mazda has been reported to have produced nearly 1.5 million vehicles
for selling them globally (Mazda.com, 2018). Mazda is the only brand that manufactures cars
with the Wankel engine. The company is also pronounced in sponsoring for several sports teams
both within the nation and abroad and adopts various campaigns and other measures to be
recognized and preferred by the majority of the population. An analysis of the market structure
would enable to depict the position of the company in the world as a whole.
Discussion:
Analysis of the market of Mazda Motor Corporation-
SWOT Analysis:
The SWOT analysis of Mazda Motor Corporation helps to evaluate its position in the
market that has been discussed below-
Strengths-
 The product features of Mazda have been very strong. With the best in class engine and
the ease of use of the vehicles, Mazda has been widely preferred by people in Singapore
(AutoIndustriya.com, 2018).
 The production efficiency and discipline in workplace of the industry has been very
pleasing. Mazda works with its core values of hard work, innovation and streamlining
costs that serve to be its strengths.
 With the productions along CSR activities such as the Bio cars and Skyactiv, Mazda has
been engaging in optimal use of resources (Chen, Kim & Yamaguchi, 2014).

5MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
 Mazda functions with the prior concern of innovation and has been continuously
producing vehicles in accordance to greater innovations that has been its major strength
throughout.
 In 2016 Mazda has delivered a record profit in Singapore for the third consecutive time.
The brand had sold 1.53 million cars in Singapore which is a big number. (Ju-Len, 2017)
 This proves that one of the strength of Mazda in Singapore is its increasing profits and
large number of sales which is also increasing by the years.
Weaknesses-
 Mazda has not been able to establish itself as a major global player in the industry.
 The company has not been able to face any major success in recent times and has recalled
about 2.3 million vehicles for problems and issues (Tsuneoka, 2018). Thus, many
customers are switching to the other brands.
 The retention rate of Mazda is also significantly low. It has been found that out of every
three customers of Mazda, two of them have switched to other brand.
 The marketing strategy of Mazda is weaker than the other important car companies in
Singapore. In Singapore Toyota is doing a great job in terms of marketing and strategy.
Opportunities-
 There is a high demand for high performance SUVs that is an opportunity for Mazda to
exploit well and render greater production and sale of its vehicles.
 The company can focus on its retention and repeat business opportunities, and capitalize
in accordance to it.

6MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
 An improvement in roads and highways increases the scope for Mazda to introduce
bigger cars in the emerging economies. This would bring more customers to the company
enriching its overall profits (Semmens, Bras & Guldberg, 2014). Thus, better
infrastructure serves to be an opportunity for the company that it can utilise largely.
 Ong Lay Ling who is the managing director of the group “Eurokars group” which is in
charge of the brand in Singapore and its distribution has stated that the market share of
the brand is presently 8 per cent. This shows an opportunity of steadiness and growth and
the company has the opportunity to increase the sales
(http://www.businesstimes.com.sg/hub/bt-motoring/mazdas-secret-plans-revealed).
Threats-
 Rising cost of fuel and materials serve to a major threat for the company that can
negatively affect its business.
 High competition in the vehicle industry with companies such as Toyota, Honda and
others also act as threats for the company.
 Change in preference of the consumers and brand switching is also a major threat for
Mazda.
 The cost of maintaining a car in Singapore is relatively costlier than many other countries
across Asia. The major reason is the various numbers of regulations and restrictions of
owning a car in the country. “Certificate of Entitlement (COE), high custom duties, and
road usage charges such as Electronic Road Pricing (ERP)” are some of the regulations
that are there. This can reduce the sales of cars in the region.
Target groups and Customers:

7MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
Mazda Motor Corporation targets individuals who love to stay young and have good
abilities to be expressive of their passion and self-confidence. It focuses on the people who love
driving and are very passionate about cars. People from the lower middle class, middle class and
upper class can afford the brand. In targeting the passionate drivers, Mazda tries to create an
emotional engagement of them with the cars. It aims to attract the people from the age group 20
to late 50’s and the car making technology of the company has resulted in attracting 33% more
customers that fit into its target physiographic profile (Mazda.com, 2018). The company
presently targets the young people who seek sports car, with greater focus to the urban youth and
upper middle class (Lobschat et al., 2013).
Competitive Analysis:
Mazda has been a preferred company by many people, however, tough competition from
the companies like Toyota, Honda, Nissan Motors and Hyundai Motors serve to be major threats
for the company in the Singaporean market (Maxcy & Silberston, 2017). The company is very
much engaging in marketing strategies focussing greatly on promotional events and
advertisements that highlight the brand. It has been focusing on digital marketing to increase
sales. Auto shopping accounting to 75% is done online (Williamson et al., 2015). Thus, the
company has increased its digital budget from 10% to 30%. It has been focussing on
psychographics of customers and thus engage the right potential customers in the business.
Marketing through social websites and media has also been very beneficial for Mazda to reach to
the greater population and thus increase its market. However, promotional activities of the other
brands also intervene in the successful operation of Mazda to a significant extent.
PESTLE Analysis:

8MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
The PESTLE analysis of Mazda Motor Corporation discussed below provides the
competitive advantage of the company (Acharya, 2014). The factors influencing the business are
discussed below-
Political factors-
In Singapore the political system is mainly oriented towards one or two party. The
People’s Action Party split and the new party was formed known as the Socialist Front.
Therefore the two major parties are loggerhead for winning the seats. However because of less
number of political opinions there is lesser political risk factors. Therefore there is good
possibility for the automobile industry to grow.
Singapore is emphasizing on vehicle emissions, fuel efficiency and safety means that
Mazda has been focussing on for its innovations (Gokhberg & Meissner, 2013). Political stability
of the nations affect the automobile industry as the government imposes taxes and other policies
on their operation. In Singapore there are various permissions and registrations that are needed to
be made in order to buy and run a vehicle.
Economic factors-
Growth in economy always facilitates industries of all types. It can earn huge revenue
and also increase the number of investors. This would result to a rapid growth of the company.
Prices of the related commodities such as fuel also influence the company in its operational
countries. Increase in price of them reduces the sale of the vehicles affecting the automobile
industry extensively.

9MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
Singapore has a democratic free market economy. The development rate is very high as
well. Among the ASEAN countries the per capita income is high. The competitive advantage
within the country in the automobile sector is promising. The advantageous geographic location
of the country makes it better for the country to grow even in slow times. The government plays
active role by bringing investments, and this endeavour started from the 1960. Sometimes there
is the problem of labour shortage, however supply of cheap labour from adjoining regions makes
the country one of the preferred destinations of automobile industry.
Social factors-
The ministry of community development had been working since its formation, along
with several voluntary organisations and the “Singapore Council of Social Services” to transform
the social inequality into a stable structure. This has resulted in lessening of poverty rates and
more number of people coming into the prosperous economic zone. The society of the country is
highly diversified with people from various nationalities staying in the country. This makes it
oone of the preferred destination of companies to introduce their product and understand its
impact from various demographic segments.
Motorcar industry is highly in demand in Singapore and other countries where Mazda
sells its vehicles. Thus, it gets the ready market in these places (Wilks & Wright 2016).
Developed economies are able to afford the vehicles, however some countries that have a
relatively low class population fail to afford the cars. Thus, Mazda focuses in investing in the
developed countries with greater concern. Moreover, investors are also more in developed
economies. The company also focuses on the priority of the customers differing in their
preferences either to buy cheap cars or classy ones. Thus, it affects the business.

10MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
Technological factors-
Technological advancement forces the automobile industries to innovate on regular basis.
The car industries are engaging in production of eco-friendly vehicles that would not harm the
environment. With technology, they are set to production with use of alternate energy sources
such as solar power, fuel cell and others (Burns, 2013). Mazda has been also involved in such
processes. The advancement in technology in the countries has also made the production process
of Mazda and the other companies in the industry to initiate smooth, effective and faster
production.
Starting from 1970’s the government of Singapore started showing interest in increasing
labour skills and technological knowledge of the country. The doors were opened to private
foreign investment through FDI and the country started encouraging the industries which are
technologically sophisticated. This not only increased the possibility of heavy industrial sectors
to expand but also increased the sales of technologically advanced goods including automobile in
the following years. 1980’s saw increased investment on products like electronics, electrical,
computers and computer peripherals and automotive components and peripherals.
Legal factors-
Legal obligations such as policies relating to environmental protection and others affect
automobile industry. Mazda has been abiding by the legal rules and regulations of the countries
in which it is operational.
In Singapore the government has set up the National Environmental Agency of Singapore
under the “Environment Protection and Management Regulations (Vehicular Emissions)” which
regulates the various emission standards. Apart from that the legislations that protect the

11MARKET ANALYSIS OF MAZDA MOTOR CORPORATION
consumer rights are “Sale of Goods Act” and the “Consumer Protection Act”. The companies
have to pay Income Tax and the GST or Goods and Services Tax.
Environmental factors-
A harmful effect to the environment and nature through production processes and the
final product of any industry degrades its fame and repute enormously. Mazda has been
producing vehicles with greater concern to preserve the environment that has glorified its
innovation process. Thus, it has been working with a significant concern for the environment that
has led to its greater publicity and production.
In Singapore “The Ministry of Environment” and Anti-Pollution department strictly
maintains environmental standards. Emission by the automobiles is one of the main source of air
pollution in Singapore hence the government maintains strict standards. As previously mentioned
“the National Environmental Agency of Singapore under the “Environment Protection and
Management Regulations (Vehicular Emissions)” keeps track on the emission standard by the
vehicles.
Previous Marketing Communications:
Mazda has been engaged more into a marketing process that was more company-centric.
The company had less than 2% share of the global auto-sales and has faced various difficulties in
the market (Mazda.com, 2018). The company relied more on TV advertising with no concern in
digital investment. The company stressed on demographics more than psychographics that
disabled the company to connect with the passionate customers. Mazda has been found in
various events as sponsors to increase its marketing communications. However, it lacked banner
ads and social media forecasting. It was only after the Great Recession hit that the company