Case Study Mazda Electric motor Corporation Marketing Essay

Case Study Mazda Electric motor Corporation Marketing Essay

Mazda Motor Corporation is one of the world’s leading car suppliers with the total net sales in ’09 2009 reaching an impressive 2,535.9 billion Yen. Mazda Motor Corporation was set up in Japan in 1920, beneath the name, Toyo Cork Kogyo. Originally only working with the making of car parts, they own ventured out to the generating of commercial trucks, eventually proceeding on to the manufacturing of cars, which it is well known for nowadays. As situations passes, Mazda Motor Corporations has since effectively ventured out of Japan, conquering other areas of the world including Mexico, Italy, Thailand merely to name a few, and establishing Research and Advancement sites in countries like Germany, China, and the United States of America.

Mazda Motor Corporation generally focus on the needs of 2 different segments of consumers: Commercial buyers and Non-Commercial Consumers.

Vehicles under the Mazda E-series and Mazda BT-50 cater for commercial purposes. Types of vehicles that are categorized as the above categories include pick-ups, lorries and vans which are mostly used by firms for transporting of goods and materials etc.

On the other side, Mazda also cater to non commercial buyers and their vehicles were created specifically to fulfill 2 groups of consumers: Family & PMET ( Professional, Managers, Executives and Technicians). Models such as for example Mazda 5 and Mazda 8 are MVPs (Multi Purpose Cars) which are well suited for large families while versions like Mazda 3 & Mazda 6 are the typical family sedans suited to smaller families. On the other hand, versions like Mazda RX-8 and Mazda MX-5 give you a more sporty look and could seem to appeal extra to young working professionals or PMETS. Mazda 2 & Mazda CX-7 happen to be SUVs( Sports Utility Cars which are targeted towards sports activities enthusiasts.

The hq of Mazda Motor Company is situated at 3-1 Shinchi, Fuchu-Cho, Aki-gun, Hiroshima, with unique branches located at differing of Japan like Osaka, Tokyo, Yamaguchi and more to permit provide easy accessibility to consumers.

Mazda Motor Corporation has adopted a mixture of B2B (organization to business), B2C (organization to consumer) business model. The company has an array of products to cater to the requirements of both commercial and non commercial buyers. By segmenting out their goal consumers, Mazda should be able to spread out the risk of doing business should the sales in one market suffer. This plan will also enable Mazda to reap the great things about increasing its market show in both commercial and non industrial segments.

Purchasing Strategies

Mazda Motor Corporation, despite being truly a car maker, obtains their parts and components from suppliers. The 3 main suppliers that they obtain essential parts comes with: Kanto Yokokai (located in Kanto, Kansai and Tokai parts of Japan) and Nishi Nihon Yokokai (located in Chugoku, Shikoku and Kyushu regions of Japan). Mazda Motor Corporation obtains their necessary products like plastic from Yoshinkai. Nevertheless, the engines of all Mazda cars are produced by the company itself, rather than obtaining it from suppliers.

Parts for the car like screws and nuts will be obtained from multiple suppliers. This enables the company to have a wider variance of choices to choose from since they are not limited to only one supplier. This gives them with flexibility along with more bargaining power, which will allow them to obtain their necessary resources at the least expensive possible price. Nevertheless, the materials used in the car manufacturing procedure are obtained from only one supplier. Though there is merely a single supplier for the materials, Mazda Motor Corporation can be able to obtain the materials needed at the right price. This is because of the fact that Mazda Motor Corporation has chosen Yoshinkai as their sole supplier for supplies. This will allow them to have special benefits since the honour of being the only real supplier of products is directed at Yoshinkai.

A few explanations why Mazda Motor Corporation has decided to choose the materials and parts rather than making it themselves is due to cost advantages, lack of expertise along with the quality of the supplied things.

If Mazda Motor Company, a car manufacturing company, were to venture in to the production of their very own required parts and components, the company will not be centered on car manufacturing but on other areas like manufacturing of metallic for example. This will be expensive for the company given that they would need to spend more money to research on the steps had a need to take this out since there is a lack of knowledge in this location. Even if this study is successful and the company were able to produce the things needed, the quality might not exactly be as effective as that of which are obtained from their suppliers, who will be more experienced. This might also cause Mazda Motor Corporation to lose their identity as a respected car manufacturer as customers might be confused as to whether Mazda Motor Company is a car manufacturer or a supplier of materials and parts.

There are certain areas which Mazda Motor Corporation looks out for while considering which supplier to buy their parts and elements for. These areas are top quality of the delivered products, period for delivery of the elements and cost of the materials.

All if not virtually all companies operate for just one common aim, which is to make profit. Mazda Motor Corporation is no exception. So, it is crucial for the company to get the materials needed at the least expensive price available without compromising the standard of the materials. This allows their budget to be lowered, that will eventually lead to an increased profit gain in comparison with when the company purchase the same resources, with the same quality at an increased price. The time at which the supplies are delivered is similarly important as well. If the products ordered are delivered later, this may bring about a delay of production, which might lead to a loss of profit for the business. In worse case scenarios, the company may need to compensate their consumers if production is halted because of this delay.

Mazda Motor Corporation as well adopts the Make-To-Stock strategy for its operations. This is because of the fact that the company is usually churning out the same few types of cars in a huge volume. Therefore, by adopting this plan, the company can meets its production aim for and satisfaction of nearly all its customers can be guaranteed. The reduced manufacturing costs likewise allows the company to generate a profit aswell.

However, the company as well utilises the Make-To-Order Approach. This can be observed in the customization option which Mazda Motor Corporation offers to customers who wishes to personalize their cars. This provides a wider range of product options to customers and not limiting them to getting cars which already are made.

Order Management

Mazda Motor Company has showrooms situated in its head office as well as in many other regions around the united states, come to be it in Japan, where their main hq is located, or in other countries which Mazda Motor Company features ventured into. Interested consumers can frequently walk-in to some of their showrooms, where a sales associate will help them in deciding on a suitable car for them, or a scheduled appointment can be manufactured beforehand either through telephone or email. After the buyer has chosen their preferred car, an order kind will be stuffed in, which is entered to their system down the road. An invoice will then be issued to the client. The order will be offered the head office, where the staff will talk with their information to see if there are still stock available. If not really, they will check if creation for that particular car synthesis essays has been planned. Otherwise, a delivery buy will get to the distribution center where in fact the car will be picked by the staff according to information on the picking list. Transport will be arranged to provide the automobile to the selected location where the customer will collect it. This venue will either get at the warehouse, or the service center because the showroom may not have enough space to retail outlet the cars.

Mazda Motor Corporation, right now, only handles revenue of its automobiles at their showroom and not through other stations like email or calls.

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Inventory Management

Mazda Motor Corporation is rolling out its inventory management system called the “Mazda Components Management Planning”, also called M3P in the automobile industry. This system allows the company to have useful control over its stocks and inventory levels, which in turn will allow the business to have increased proficiency in meeting requirements in production level.

Alongside with M3P, Mazda Motor Corporation has also utilised the point of sale system, likewise known generally as POS, to check their personal produced inventory management program. POS permits the automation of inventory control in a bid to increase the work proficiency of the staff to allow them to obtain all the details required in order to handle customers’ needs without much difficulty. In the end, the high effectiveness of the staff will allow the company to generate more revenue because the company could have made a brand for themselves due to their high work efficiency rate.

M3P also allows the company to have got better demand forecast. This allows the business to predict and program and schedule buy of parts and components needed so as to continue productions and make sure that there are no sudden halt to production ideas because of insufficient inventory amounts. Delivery time can be further increased through the utilisation of this system. Subsequently, this will help improve satisfaction in clients and invite Mazda Motor Corporation to build up its trustworthiness of having an arranged and well-planned system to control both the company’s and also the customers’ needs.

Operations Planning

Mazda Motor Corporation completed long-range operation planning with the help of M3P. M3P, when coupled with all different statistics of inventory control, offers a rather accurate forecast that allows it to take care of supply and demand to meet its various needs. This allows the business to have complete demand forecasts as high as a year, which permits them to have appropriate planning of their production schedules. This gives the company to have sufficient time to resolve any issues which they might encounter in the regions of outsourcing of their components, expansion of the company and other various factors.

With all the above carried out,

Materials Requirement Setting up (MRP) is also carried out thereafter. Mazda Motor Corporations plans all the different parts of the automobile which is produced. This allows the business to get a schedule at which a specific car ought to be completed, together with all the components needed and whether there is a have to order these products should there not be enough in the inventory. By doing so, the company can meet all, if not really most of their sales order.

Customer Relationship Management

Like most businesses, Mazda Motor Corporation takes great satisfaction in building up a good relationship between consumers and the company. The business itself sees a want to possess a common understanding using its customers. This is one of the reasons why the company has come up with a procedure for ensure customer satisfaction.


The company believe in providing different appealing items to customers. Quality of the merchandise is also ensured to be able to maintain the trustworthiness of one of the leading car companies in Japan. Efficient after-sales service can be provided to ensure that customers are being taken care of even after a order has been made. The company believes that by understanding the various needs and desires of their customers, the business will then be able to improve and make alterations to better suit the customers’ wants.

Mazda Motor Corporation can be available to comments and recommendations from its customers through its call centre. The decision centre handles inquiries, issues along with suggestion from its clients. Besides through the call centre, customers can also provide their type through the Mazda Electric motor Corporation website on the “Inquiries” web page. The company takes all these input seriously. By doing so, they are able to make changes to maintain with the customers’ desires. This in turn, will allow the customers’ to feel that the company is doing their best to serve the clients and ultimately, allow them to truly have a good impression of the company. Mazda Motor Corporation will be able to ensure a never ending flow of customers, which allows more generation of earnings for the business.

Purchasing Strategies

Mazda Motor Corporation purchases its parts from multiple suppliers, but only an individual supplier because of its materials. On the top, this may not be a problem to the company as of now. However, with only an individual supplier for its materials, Mazda may end up being on the getting rid of end in the event if the distributor is to increase price in order to gain more profit, since they will be the only sole supplier of the materials.

If such a situation happens, the company must raise their budget to accommodate the sudden hike in price, which will subsequently reduce their total income. In worse conditions, if the company is unable to come to terms with their provider, productions will have to be halted and production schedules will become delayed. This may cause the company to struggle to meet the demands of customers and the company may need to pay a large amount of cash as compensation.

A unexpected shortage of components from its suppliers could also cause the company to put their production plans on halt since there are insufficient materials. Time will be wasted to be able to source for another distributor to get the necessary materials.

To solve this problem, Mazda Motor Corporation can outsource for another supplier because of its materials. By having another supplier, the company could have a backup option should they struggle to obtain their materials from one of its suppliers. This will also allow the company to have higher bargaining capacity to obtain the materials better value since there are now competitions between your two suppliers.

Order Management

Customer’s purchase of autos in Mazda Motor Company is done on-site, which implies that all orders are handled in the display rooms of the company. Since no orders can be achieved online or through calls, the company will lose business to its opponents in the auto industry who may have started accepting orders on line or via calls. This, in the long term, will cause the company to lose its reputable position as one of the leading car companies in Japan and finally, reducing profits for the company.

Thus, a solution can be devised to solve this issue. Firstly, the company adopt the idea of e-commerce by having an online order system. This enables customers to make purchases online, anywhere 24/7. With such an approach, the company will be updated with technology trends and yet carry out business at the same time, eliminating two birds with one stone. A user-friendly e-commerce web page can be incorporated into the current website of the business. This will allow the company to have an online site with multiple usability. Buyers can view available goods and if they are interested, make purchases online. With such convenience, customers’ satisfaction will be guaranteed because they are able to purchase their desire car through a hassle-free method.

By implementing the above solution, Mazda Motor Corporation can portray themselves as a enterprise that is in a position to accept changes to fulfill customers’ necessities and keep their reputation as one of the leading car makers in Japan.

Inventory Management

As mentioned in earlier parts of the report, Mazda Engine Corporation utilises their own inventory system, M3P to take care of its inventory. Though this technique has been said to aid the company in managing its inventory levels to meet up production demands, it is not entirely perfect.

The motive being, any program, regardless of how good it is, will bound to fail sometimes. Since Mazda Motor Corporation relies heavily on M3P to handle its inventory, you will have major problems should the system had been to malfunction at any one point of time. Inventory levels will not really be updated and the company may miscalculate its development schedules. This may cause all productions to become affected. Demands may also not be met and it’ll affect the entire operations of the company.

Another motive is that inventory levels in the system might not be updated real-time. That is a significant issue to the staff of Mazda Motor Corporation, The staff will not be able to gauge accurately whether there exists a need to replenish its stocks since the inventory levels isn’t accurate. This might then result in a shortage in supply of stocks, affecting the procedure of the company.

One measure which the company can undertake would be to have sufficient safety stock at any one point of time. Hence, if M3P were to fail as a result of any unexpected errors at any one point of time, there will still be enough safety stocks to supply “temporary relief” if there must be any miscalculations of inventory amounts due to the system fault.

Operations Planning

Mazda Motor Corporation, with the help of its inventory management system M3P, plans its functions on a long-term basis. This, on the surface may look impressive as it portrays the graphic that the business is able to do that because of their great foresight. Even so, though plans may be completed beforehand, there may be certain unexpected situations that may occur in between. For example, the business may undergo acquisition by other company for commercial needs. This may lead to major changes in procedures of the company. Suppliers may well not be willing to supply necessary resources to the company, which may have an effect on productions and delivery of goods to customers. Past due delivery of goods will not only cause the business to incur extra costs, it will also affect customer marriage and the business’s reputation can also be at risk.

This problem isn’t difficult to resolve. Mazda Motor Corporation can still have long-term planning done in advance with the forecast predicted through the use of M3P. Even so, backup plans should be carried out alongside with all its future programs and schedules. This allows the company to have unique alternatives if they are faced with an urgent situation or emergency. The company will thus manage to have well-planned schedules rather than worry if any complications will affect its businesses given that they have backup plans for insurance.

Customer Service Relation

Having very good relations with customers is one of the values which Mazda Engine Corporation possesses. This is exactly why the company has setup a call centre with around 50 personnel to react to any calls with queries regarding various problems. An inquiry page has also been set up to permit customers to enter almost all their queries for a remedy online, on the Mazda Electric motor Corporation homepage. On the other hand, there could possibly be certain questions which might be complicated and the staff might take more time to react to these questions. Though there could be similar questions asked before, not all staff members could be aware of these queries and the answers to it. Consequently, the response time may be reduced greatly and the work speed may not be as efficient as expected. It will also pose a trouble should there not be adequate personnel to entertain queries from clients since there is merely 50 staff to take care of all this questions.

Thus, besides adding on to the inquiry web page on the homepage of Mazda Electric motor Corporation, the company can also employ the latest social media tools. One example would be the utilization of Facebook. The company connect to customers with this. Customers will best cv also be in a position to inquire about certain issues by posting a comment on the page. This way, if the staffs of Mazda Electric motor Corporation cannot provide a response to the client quickly, there could possibly be other people who will be able to answer these concerns. One advantage of that is that customers can connect with other customers and not only the company itself. This will allow them to exchange data needed and ease the responsibility on staffs managing these inquiries, though this does not imply that the staff will not be responding to any queries posed by customers. This sort of connection between customers allows experience to get shared among the other person as well.

Besides helping to improve customer relationship, social media can be a way for Mazda Motor Corporation to provide updates to its consumers. This can include events or promotions. Thus, this kind of interaction will be useful in assisting bridging the gap between consumers and the business.

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