Suzuki Samurai Case Analysis080114

  • View
    138

  • Download
    5

Embed Size (px)

DESCRIPTION

CASE STUDY

Text of Suzuki Samurai Case Analysis080114

Slide 1

CASE ANALYSIS :Presented by:ARUNA C K SHARMASRINIVASARAO

SUZUKI SAMURAI

Free Powerpoint TemplatesPage #CONTENTSHistory of SuzukiSuzuki samurai in USAnalysisTarget segmentation of Suzuki SamuraiMarketing plan for ASMCSuzukis Goal, Strategy and its success

Free Powerpoint TemplatesPage #

HOW TO POSITION SUZUKI SAMURAI IN USA Free Powerpoint TemplatesPage #SUZUKI IN JAPAN Michio Suzuki started as Suzuki loom works in 1909

It was a loom manufacturing company

Free Powerpoint TemplatesPage #1952 and 19541952 Suzuki introduced first 2-cycle

1954 Suzuki introduced 2nd motorcycle

Popularity of these motor cycles led to change in name as Suzuki motor company, Ltd.

Free Powerpoint TemplatesPage #1959After 7 years of success, Suzuki introduced a first light weight Van

Free Powerpoint TemplatesPage #1961After 9 years of success, Suzuki introduced a first CAR of 2 stroke engine named SUZULIGHT

Free Powerpoint TemplatesPage #1964 1965After 12 years of success in 1964, SUZUKI started exporting motorcycles to USA, quickly established as a Major brand in U.S. motorcycle industry. By 1965, SUZUKI product line had: Motorcycles Automobiles Motorized wheel chairs Outboard motors General purpose engines Generators Water pumps and Prefabricated houses

Free Powerpoint TemplatesPage #In 1979 and By 1984In 1979, SUZUKI automobiles introduced to foreign markets, after 27 years of success

And

By 1984, SUZUKI goes global in over 100 countries and Hawaii

Free Powerpoint TemplatesPage #1983General Motors (GM) buys 5% of Suzuki and helps company develop a subcompact car for the U.S. market

CHEVROLET SPRINT

Free Powerpoint TemplatesPage #DEMAND FOR SPRINT In mid 1984, Sprint was Suzukis first entry into continental U.S. automobile market.

These cars were sold exclusively by Chevrolet dealers.

Voluntary restraint agreement (VRA) limited the shipping number of cars to U.S. by 17,000.

All cars were quickly sold by GM even though its distribution was limited to U.S. west coast dealers.

Free Powerpoint TemplatesPage #EMERGENCE OF ASMCSUZUKI planned to introduce several unique vehicles to U.S. market over a time.

Unknown of GM willingness

SUZUKI DECISION

To form American Suzuki Motor Corporation

Free Powerpoint TemplatesPage #CANADA PLANT Upon success of sprint, Suzuki plans to introduce several unique vehicles to US but VRA quota allows Suzuki to only export sprints.

Consequently, GM and Suzuki negotiate for an Ontario plant to produce 200,000 subcompact cars per year but it was expected to be online by early 1989.

In 1986, Hyundai and Yugo were expected to enter US market .

Market forces and projected new entrants makes Suzuki introduce SJ413 (Upgraded samurai) to U.S. market.*(As a TRUCK)*

Free Powerpoint TemplatesPage #SUZUKI SAMURAI FOR U.S.U.S. Govt. classified SJ413 as a TRUCKTrucks were not subject to Japanese VRA quotasInstead subject to 25% tariff v/s 2.5% tariff on carsSUZUKI management yet found deal worthyOn May 10, 1985, Douglas Mazza was hired.To organize and head new subsidiary, ASMCTo develop Suzuki dealer network to sell SJ413 by Nov 1985To create the marketing plan for Suzuki samurai in U.S.Suzuki planned to market 2 versions of SAMURAI

Convertible version andHard-top version

Free Powerpoint TemplatesPage #FIVE FORCE ANALYSISSubstitutes

Free Powerpoint TemplatesPage #DRAFTED DEALER AGREEMENT BY MAZZA Suzuki goal was to establish itself as a major car company in U.S. Hence, Mazza convinced prospective and limited 50 dealers to provide the following:

Exclusive sales facility for Samurai that includes:ShowroomSales officesCustomer-waiting and accessory-display areaDedicated minimum 2 service stalls and operated by Suzuki trained mechanicsShall display required signs at inside service stalls and outside the sales office3 sales executives2 service techniciansGeneral managerGeneral office clerk

Free Powerpoint TemplatesPage #ASMCS STRATEGY ASMC planned retail price : $ 5,995 and Dealer invoice price would be 7.5% lesser

ASMC wanted to attract dealers such that opportunity match investment requirements. Thus, boost dealers average unit profit, dealers loyalty, greater sales support, higher control over retail market.

Initial dealers limited to 47 nos.ASMC guaranteed supply of minimum 37 units per month than planned 30 unit earlier for 50 dealers.

The target selling of 6000 units in 6 months were raised to 10,500 units, by Mazza.

Introduce Samurai into U.S. largest automobile market : California, Florida and Georgia

Free Powerpoint TemplatesPage #SUZUKI GOALEnter the continental U.S.

Automobile customers were buying imported Japanese cars Industry experts predicted command of 19.2% share of U.S. market in 1985.

Sell 2 version of SamuraiToo limiting

SUCCESSFUL GOAL BUT VERY CONSERVATIVE PROJECTIONS.

Suzuki is entering this market conservatively.This also limits their product.

Free Powerpoint TemplatesPage #WHAT DOES SUZUKI LOOK LIKE?

Free Powerpoint TemplatesPage #

This is SJ413 SUZUKI SAMURAI, 1985 US MODELFree Powerpoint TemplatesPage #

SJ413 SUZUKI SAMURAI, 1985 US MODELFree Powerpoint TemplatesPage #

Even this Free Powerpoint TemplatesPage #PRODUCT OVERVIEWPRODUCT BENEFITEMOTIONAL BENEFITPERSONALITYRuggedness Feeling of being strong and roughOutdoorsy, toughEfficient gas mileage, low maintenanceFeeling of austerity and satisfaction Sincerity, honestyLooks Cute and StylishBeing in vogue, pride in being watched and appreciatedHedonisticEasy off road handling, choice of convertibilityComfortable and adaptable to all situationsSpirited, Daring

Free Powerpoint TemplatesPage #

QUESTIONHOW DO YOU FEEL SUZUKI SAMURAI SHOULD BE POSITIONED?

Free Powerpoint TemplatesPage #MARKET SEGMENTATIONThe market segmentation of the Suzuki SamuraiCOMPACT SPORT UTILITY VEHICLESMALL PICKUP TRUCKCOMPACT CAR

Free Powerpoint TemplatesPage #COMPACT SPORT UTILITY VEHICLEPROSCONS4x4 drive capabilityLow Market Potential which might not reach target salesBuilt like an SUVLimited Market of SUVs[less than 3% in 1984]Drives well off-roadSome consumers correlate Price and QualityLow PriceSmaller and lighter

Free Powerpoint TemplatesPage #SMALL PICKUP TRUCKPROSCONSRelatively large size of the market 2.5 times that of the SUV marketLosing out on the subcompact car segment which was largerAmericans favor trucks imported from Japan [54% of total sales in 1984]It had a 25% import tariff compared to the 2.5% for carsUsed as truck when purchased without back seat/folded upNarrow target segment

Free Powerpoint TemplatesPage #SUBCOMPACT CAR PROSCONSOpens up the largest of the 3 marketsStiff and less comfortable than even the least expensive subcompact carPriced lower than many other subcompact carsVery good mileage of 28 miles to the gallon

Free Powerpoint TemplatesPage #Free Powerpoint TemplatesPage #Everyday driving

Off road/snow driving

Passenger comfort

Quality/Durability

Styling

Capacity

Gas mileage

CONSUMERS LOOK FOR

Free Powerpoint TemplatesPage #PRIMARY TARGET MARKETSingle male, 18-30 years old

First time car buyer

Students, fresh graduates, young professional

Come from 2-person households that earn an average income annually

Young, unconventional, works hard, often go parties, desires to be rugged, takes pride, likes to be different and who seeks fun.

Free Powerpoint TemplatesPage #SECONDARY TARGET MARKETSingle/Married, Male, >30 years old

Has at least 2 cars

Businessmen and establishedprofessionals

Has children (usually female) who can already drive

Come from households that earn higher than an average annual income

Young at heart, Straight-laced, loves his family, but wants to break free and indulge at times

Free Powerpoint TemplatesPage #CONSUMER INSIGHTSConsumers think that SAMURAI was

A symbol of their independence to do different

Practicality to drive a versatile vehicle

They felt as Cute, Neat and Fun that make them :

stand out goes well with their lifestylesbreak the traditional mould and away from the traditional Sedan.

Free Powerpoint TemplatesPage #CONSUMER PERCEPTION ANALYSIS

Free Powerpoint TemplatesPage #CONSUMER PERCEPTION

CONSUMERS COMPLEX BEHAVIOUR

Free Powerpoint TemplatesPage #CONSUMER ANALYSISCAR can be used for:

City travel (good mileage)Passenger car (accommodations for 5 people)Transportation of material (pick up truck capability)Possibility of a convertible (cool summer car)Off road capabilitiesDesigner looks Price for car

A car with a wide range of capabilities for a good price

Free Powerpoint TemplatesPage #MARKET ANALYSISBased on the five forces analysis:

The Suzuki samurai is the perfect debut vehicle for U.S.

No significant substitutes that matched PriceCapabilitiesAppearance

Get ahead of other Asian companies that would plunge shortly to take advantage of the growing imports industry

Free Powerpoint TemplatesPage #COMPETITIVE ANALYSISKey resources and capabilities

Brand nameGM supportUseable statistics (Gray market)Competitors

They are relatively new entrants (Hyundai and Yugo)

Price remains same for all custom type of vehicles

Free Powerpoint TemplatesPage #

HOW TO POSITION SJ413

Free Powerpoint TemplatesPage #POSITIONING STRATEGYITS AN UNPOSITIONING STRATEGY

ANTIDOTE TO TRADITIONAL TRANSPOR