SAMACO Automotive Marketing management

1.????? Introduction?

SAMACO Automotive is an agent of different vehicles, which includes Volkswagen, Porsche, Audi, and Bentley that operates in the market of Saudi Arabia. The company offers a wide range of sales services which focus on commercial vehicles and new and pre-owned cars. With a dedicated team, the company can meet the motoring needs of the customers. Additionally, the company ensures that there are no compromises thus going the extra mile for the customers and ensuring that they offer the best. At SAMACO Automotive, the customers find very dedicated employees who provide the best customer service by having customers' attention (Jaques, 2017). The organization is also determined to ensure that the services offered to the customers go hand in hand with the engineering excellence and innovative technology in the splendid vehicles provided.

SAMACO automotive is very selective in the organization they select to represent in the Saudi Arabia market, therefore; they only represent the automotive brands that offer trouble-free vehicles that can provide long-lasting services to the customers and less cost in terms of maintenance. In recent years, the company has renovated its workshops and showrooms intending to reflect its commitment to offering high-quality services in the automotive industry. The company has also ensured that they install telemetry facilities at all the service centres in Saudi Arabia for an on-camera consultancy with the products' parents' company. Not forgetting the after-sales services, whereby they offer the customers an opportunity to easily access spare parts at a very acceptable price since they believe that the customers deserve a rewarding and pleasant experience. Although the company has a great strategy of ensuring that it offer the best services to its customers, recent industry trends show that they are faced with great marketing management challenges (Jaques, 2017). Therefore, this paper will focus on providing a marketing plan for the company whereby the value proposition will be analyzed, and its current position evaluated to offer the way forward.

2.????? The value proposition of SAMACO Company

According to Goswami (2015), the value proposition is the value that a business organization promises to deliver to its customers. The organization's management must ensure that its value proposition is clear, which can be done by e.g., quantifying the value, differentiating, and relevancy. The value proposition of SAMACO is oriented toward providing the best automotive services and high-quality vehicles as a way of adding value to the customers. At SAMACO Company the management is determined to attract and retain highly qualified employees who are equipped with the necessary skills, knowledge, and competence to deliver the best services to the customers (Markiewicz, 2018). With this strategy, the company can improve its performance and create a competitive advantage against its competitors in the Kingdom of Saudi Arabia. Over the years, the company has been able to offer high-end vehicles such as Porsche, Volkswagen, Audi, and Bentley at a very affordable price. The renovation of the showrooms and workshops allows the customers to have the best experiences in all the services provided by this company.

3.????? Current situation and diagnosis of the problem

The automotive industry in KSA has grown over time, and today it is one of the most competitive industries in the country, serving a wide range of customers who are demanding for more vehicles than before. Currently, people don't view cars as a luxury but a necessity of modern life or professionalism. Therefore, this makes it one of the most essential and competitive industries in the Kingdom of Saudi Arabia, as many companies get attracted to the sector. Thus, the companies have to effectively market their products and services to acquire a competitive advantage against their competitors, which according to Chernev, (2018) is not an easy task). The situational analysis diagnoses the marketing issues that face the company by helping the management to clearly understand the current market situation: the opportunities and challenges faced. This is very important for SAMACO's automotive marketing plan since it will assist the management in coming up with great marketing strategies. This step will assist in overcoming the identified problems and taking advantage of the available opportunities in the market (Kotler et al., 2016). SAMACO is faced with both external and internal factors that can be said to influence performance in one way or another.

The Macro-environmental analysis

To analyze the macro environment of SAMACO, a PESTEL analysis will be undertaken.

Political factors- the political factors involve the extent to which the country's government influences the business operations in the industry. The political factors play a vital role in the performance of the organization. These factors include fiscal policy, political stability, rates, and trade restrictions, etc. (Izzaty and Sastra, 2019). Research shows that SAMACO company act as an agent of high-end vehicles such as Audi, Volkswagen, etc. KSA is currently enjoying a stable political environment which creates an ample business environment for the company. Additionally, the government has also created policies that favor and promote local firms which have shielded the organization from foreign entries. However, the government has imposed a lot of regulations on the automotive industry which can make it expensive for the company to operate.

Economic factors- the economic factors include economic growth, inflation rate, and interest rate. In the past decade, KSA has experienced significant economic growth and is today regarded as one of the fastest-growing economies in the region. This means that the people are becoming more empowered economically which creates a larger market for the Firm to sell its products thus improving sales (Aljeeran et al., 2016). With the economic status of the Kingdom of Saudi Arabia improving, vehicles are not luxury assets anymore but necessities.? Therefore, the country provides ample economic conditions that create a favourable environment for the company to prosper.

Social factors- some of the leading social factors in Saudi Arabia that can affect business operations include religion, customs, values, etc. In the automobile sector, the availability of different models of vehicles has made it possible for customers to continuously change tastes and preferences which is a challenge for the organization to continue providing more and better (Izzaty and Sastra, 2019). Additionally, due to the increased cost of fuel in the market, customers are now demanding premium and fuel-efficient vehicles whereby more of the high-end cars offered by SAMACO are fuel guzzlers although it provides them with an opportunity to provide hybrid vehicles. ?

Technological The new innovative technology is not just affecting other industries in the market but also the automotive industry. These factors include automation and research and development (Aljeeran et al., 2016). Today, automotive organizations are investing in low-emission and environmentally-friendly vehicles since customers are shifting their needs to fuel-efficient vehicles and high-mileage vehicles. The government of Saudi Arabia has promoted the aspect of technology development, which offers the SAMACO Company a competitive advantage since they provide high-end innovative cars to the customers. Therefore, there is still a great market for the company to invest in as they can high technological cars and services e.g. through e-commerce to increase their reach.

The SAMACO micro environment analysis

The micro-environmental analysis contains the internal factors that can be controlled by the organization's management. These factors include customers, competitors, and the public.

Customers

Every business organization revolves around the customers and can’t exist without them and hence the consumers represent one of the most important micro-environment factors. Organizations manufacture or buy their products to resell them to their identified customers in the industry (Joyce, 2016). In the automotive industry, customers include people who purchase a vehicle for personal or commercial use, corporate, etc. SAMACO Company acts as an agent and targets high-end customers in the market of Saudi Arabia. The company has invested a lot of resources to offer its customers the best services. An organization must market its products and services effectively to acquire a wide range of customers. Generally, the company mainly targets high-income level customers and to some extent the middle-income0 level.

Employees

Organizational employees play a very crucial role in helping the organization to achieve the set goals. In an automotive industry such as SAMACO Company, the organization management must attract and retain employees who have the necessary skills, competence, and capabilities to sell the vehicles (Jaques, 2017). SAMACO Company has ensured that all the employees are aware of the organization's goals and are working hard to ensure that they are met.

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Competitors

These are individuals operating in the same industry, which means they are targeting the same market. Customers differentiate them depending on the extra services and product quality offered in the market. SAMACO Company is faced with a lot of competition in the industry, which includes Kia Motors, Lexus, etc. All these companies offer automotive products and services to the Saudi Arabia locals which means that every organization has to create a sustainable competitive advantage against the other to win more customers (Joyce, 2016). Offering German-made vehicles such as Volkswagen, Audi, and Bentley offers SAMACO a competitive advantage in the industry.

Generally, the company has analyzed the microenvironment appropriately which is one of the main reasons why it continues to succeed in the highly competitive environment.

SWOT analysis

SWOT analysis is a structured framework that is used by different business organizations to make decisions on their day-to-day operations. With the SWOT analysis, the organization can evaluate its strengths, weaknesses, opportunities, and threats (Karatop et al., 2018). Undertaking a SWOT analysis for the SAMACO Company will help the management to understand the position that they hold in the market of Saudi Arabia. The organization will have a better chance of taking advantage of the available opportunities and converting the existing weaknesses into strengths (Karatop et al., 2018).

1.????? Market Research

Market research is a very fundamental activity within an organization since it offers the management a link between the organization's customers and the public information, which is later used in defining marketing problems and opportunities. According to Mooi, Sarstedt, and Mooi-Reci, (2018), marketing research is a systematic design of information collection, analysis, and reporting on the specific marketing situation that is being faced by business organizations. Additionally, market research offers the organization a clear and better understanding of the target customers. According to a study by Charter, (2017), information obtained by the marketing group may be used to position the company, segment the market, and target the customers. Marketing research in SAMACO Company will help the management to identify the available opportunities in the industry and threats thus helping in improving the operations. According to the SAMACO research in the Saudi Arabian market, both the public and the customers believe that the company should offer middle-class vehicles to meet the needs of all the citizens in the country rather than the high-end customers.

2.????? Comprehensive marketing plan (SAMACO Automotive Segmentation, Targeting, and Positioning (STP) Strategy)

Segmentation

Marketing segmentation is a process by which the organization divides its potential customers into smaller units of customers that share a common characteristic, thus optimizing the marketing, advertising, and sales effort. Customer segments are easily manageable due to the similarity in features where the organization can segment the customers into different segments, which include demographic, geographic behavioural, and psychographic (Zhang and Wang, 2019). SAMACO Company has segmented its market differently since automobile customers have different needs such as low-cost fuel vehicles, speed, safety, roominess, etc.

The middle-aged customers in this industry are demanding fast cars, but at the same time, vehicles that are fuel-efficient to save on cost. Due to the increased cost of oil in the industry, SAMACO offers its customers vehicles that are price and fuel-friendly to secure a wide range of customers, including middle-class people. On the other hand, there are customer groups that want to belong in a prestigious class and are therefore interested in high-end vehicles. To meet this market segment, SAMAO Company also offers high-end German vehicles such as Porsche.

?Targeting

A target market is a group of potential customers in the industry to whom the company wants to offer its products and services to make profits. Once SAMACO Automotive Company identifies the traits of the segment's market about customer behaviours, demographic and geographic factors they can locate the section that they will target and forego others that have limited performance (Wirtz and Lovelock, 2017). In the market of the Kingdom of Saudi Arabia, SAMACO chose to target high-end customers who are looking for prestigious and luxury vehicles such as Porsche. The company has also targeted the young generation that purchases luxury vehicles classified as high-speed but at the same time fuel-efficient. Considering the need for youth to have a great lifestyle and drive classy cars in the market, targeting the youth is one of the best approaches that SAMACO can use to increase its market share. ?

With a target market, SAMACO automotive company can acquire a competitive advantage against its competitors in the industry. The company is now able to focus tightly on the targeted audience, thus establishing its expertise on the needs of these customers, such as fuel-efficient vehicles. Additionally, the company will be able to react quickly to the change in taste preferences, and opinions of the customers and thus communicate them to the manufacturer (Wirtz and Lovelock, 2017). The company's solid presence in the industry has acted as a barrier to other competitors who are in the market and those willing to join the automotive industry.

Positioning ?

Positioning is a strategy that is undertaken by business organization management to outline how they should market their products and services to the targeted audience (Zhang and Wang, 2019). Once SAMACO Automotive has identified the profitable segment that it will target, then it will position themselves effectively. The firm has positioned itself at the high-end lifestyle whereby it offers German brand vehicles such as Volkswagen, Porsche, Audi, etc. This is based on the fact that many people today view luxury cars as a necessity, and hence, most of them are working hard to drive high-end vehicles for prestige.? Therefore, the company has effectively positioned itself in the minds of these customers to meet their needs.

Marketing mix

Price

In marketing the organization's products, pricing plays a very vital role in helping the organization perform as expected (SAM, 2017). Organization management must select the best pricing strategy by understanding the products being offered, the market, and the target customers. Market review shows that many people are willing to pay an extra amount for their status, but this doesn’t mean that SAMACO should overcharge their vehicles in the market. The customers want the status, luxury, prestige, and everything that is associated with German vehicles; therefore, overcharging will result in a change of opinion.

Product

?According to Kotler et al., (2016), products are the goods and services that are offered to the customers in the market. The automotive industry has a lot of customers that have different and unique needs. In this case, SAMACO Automotive needs to make sure that they are aware of the essentials before introducing the products in the market. Acting as an agent of German high-end luxury vehicles, the company has offered its customers the best cars, which include Volkswagen, Bentley, Audi, and Porsche. Other services provided by the company include after-sales services whereby they provide spare parts, resell of owned vehicles, etc.?

Promotion

?The SAMACO Company recently renovated the showroom and the workshop, which is an act of promotion and improving the customers’ experiences. Apart from the physical workshops and showrooms that are located in the market, the company has created a reliable online store where the customers can view the required product, and prices without the need of visiting a physical shop. With an online platform, the management keeps in touch with the customers by advertising new products and commenting on the customers’ opinions and concerns (SAM, 2017).

Place

Ensuring that the products are available in the right place is very crucial, and this can only be achieved through effective distribution across the targeted market segment. As a high-end cars agent, the company can provide the customers in the KSA market with products that will meet their needs. The company has also created a website where the target customers in the region can view and make orders which has enhanced its customer satisfaction hence giving it a competitive advantage over the other competitors in the industry (Kotler et al., 2016).

3.????? Merits and the potential downside of the marketing plan

The marketing plan will play a very vital role in the provision of a strategic move for the SAMACO automotive company in the market of Saudi Arabia. The increase in demand for more prestigious vehicles in the market has created a significant segment that is untapped and with the use of the market plan SAMACO can effectively venture into the market and meet the needs of the customers. Nevertheless, the plan has not offered a more in-depth analysis of the targeted customers in the market, which may give the marketing team a hard time in attaining a competitive advantage against other competitors in the industry (Pride and Ferrell, 2016).

4.????? Conclusion and recommendation

Therefore, it can be concluded that SAMACO automotive company has gained a lot of attention from the Saudi Arabian market due to its comprehensive, sustainable, and reliable products and services. The high level of emphasis on the German models in the Saudi market has resulted in great market performance. The adoption of the STP marketing strategy has offered the company an excellent opportunity to attract and sustain a wide number of customers in the market, thus resulting in high profits. Although SAMACO Automotive has already attained a great market positioning in the industry through its operations, the company must invest in more showrooms and after-sales service to reach out to more customers and acquire long-term sustainability.

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