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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 TRANSPORTATION
Free Powerpoint TemplatesPage #PEARLSTEIN CONCLUSIONANTIDOTE TO
TRADITIONAL TRANSPORTATION
MARKETING TAG LINE
The end of DULL. The start of Suzuki
SUZUKI TAG LINE
Its an everything vehicle
Free Powerpoint TemplatesPage #SEGMENTATION CONCLUSIONSUV buyers
would like the Samurai because its cheaper.
Small car buyers would like to buy it because its not Dull
Small truck buyers would like to buy because its cheaper than a
Subcompact car but more versatile.
Free Powerpoint TemplatesPage #ADVANTAGES OF
UNPOSITIONINGAppeals all consumers as ensures higher customer
acceptance by offering various needs .
Its prospected as Multi purpose vehicle. Dull breakerIts Fun4x4
wheel driverEconomyHigh qualityMore versatile (than import
subcompact cars)
Free Powerpoint TemplatesPage #ADVANTAGES OF
UNPOSITIONINGCustomer satisfaction: Customer defines car to his own
desire, leads to better congruence between vehicles promise and
value delivered.
Ensures larger profit and enables Suzuki establishment stronger
in U.S.
Able to attract new customers along with existing customers
Low risk
Free Powerpoint TemplatesPage #DISADVANTAGES OF
UNPOSITIONINGSacrifices the possibility of being number one in the
niche market in particular segment.
Might loose brand image if customers reject Jeep with different
appeals.
Trouble for the sales people
Increased confusion might drop sales but alternative to small
-car-boredom.
80/20 rule adopted
Free Powerpoint TemplatesPage #ADVERTISING BUDGETTO ADD / ANSWER
QUESTION GIVEN IN CASE IN LAST PAGE
Free Powerpoint TemplatesPage #CUSTOMER RELATIONSHIP Customer
relation ship to be strategically planned
After sales servicing Customer satisfactionStrategic alliance
with potential companies in U.S.Good relationship b/w dealers
Free Powerpoint TemplatesPage #SUCCESS OF SUZUKI SAMURAIThe
SUZUKI SAMURAI became extremely popular.
Buyers liked the light 4 wheel drive because: positioned as the
Light 4WDReliable on and Off roads Light weight and compactness
gave it an advantage edge (Beginners off road Car)
Free Powerpoint TemplatesPage #END OF SUZUKI SAMURAIAfter 1988,
SUZUKI SAMURAI was under scrutiny for being unsafe and prone to
rollovers.
This led SUZUKI to modify SAMURAI because of low sales and some
safety regulations.
In 1995, the SIDEKICK replaced the SAMURAI.
Free Powerpoint TemplatesPage #END OF SUZUKI SAMURAI
After 1988, SUZUKI SAMURAI was under scrutiny for being unsafe
and prone to rollovers.
This led SUZUKI to modify SAMURAI because of low sales and some
safety regulations.
In 1995, the SIDEKICK replaced the SAMURAI.
Free Powerpoint TemplatesPage #
Free Powerpoint TemplatesPage #
![1986-1988 Suzuki Samurai Electrical Diagram … Suzuki Samurai Electrical Diagram WIRING DIAGRAM [CANADIAN. specification vehicle] WIRE COLOR LIGHT FRONT TURN SIGNAL LIGHT FRONT POSITION](https://img.pdfslide.net/doc/110x75/5ab29aa17f8b9aea528d7114/1986-1988-suzuki-samurai-electrical-diagram-suzuki-samurai-electrical-diagram.jpg)
