Beruflich Dokumente
Kultur Dokumente
Presented by:
ARUNA C K SHARMA
SRINIVASARAO
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CONTENTS
History of Suzuki
Suzuki samurai in US
Analysis Target segmentation of Suzuki Samurai
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SUZUKI IN JAPAN
Michio Suzuki started as Suzuki loom works in 1909
It was a loom manufacturing company
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Popularity of these motor cycles led to change in name as Suzuki motor company, Ltd.
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1959
After 7 years of success, Suzuki introduced a first light weight Van
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1961
After 9 years of success, Suzuki introduced a first CAR of 2 stroke engine named SUZULIGHT
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1964 1965
After 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
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In 1979, SUZUKI automobiles introduced to foreign markets, after 27 years of success And
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1983
General Motors (GM) buys 5% of Suzuki and helps company develop a subcompact car for the U.S. market
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EMERGENCE OF ASMC
SUZUKI 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
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SUZUKI ACTION
Success of Sprint gave confidence, but VRA was hurdle Planned to Manufacture cars in Ontario, plant ready by 1989 In 1986, Hyundai and Yugo were expected to enter US market . Industry experts predicted Japanese imports command of 19.2% share of U.S. market in 1985.
Market forces and projected new entrants makes Suzuki change their plans
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Buyer Power a. Consumer most power b. Supplier (Dealerships) very little power c. ASMC wants good dealers who are able to invest both monetarily and emotionally
Supplier power Industry Rivalry Medium to little power a. Several car components have multiple substitutes b. Each car component manufacturer has multiple substitutes. Thus, suppliers have little powers in forcing car manufacturers to submit to their choices. C. Some companies such as Suzuki exhibited vertical integration.
d. Dealer agreement to safeguard Suzuki current sales and future expansion plans too.
b. Tercel (Toyota)
c. Sentra (Nissan) etc.
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DEALER NETWORK
Suzuki goal To establish itself as a major car company in U.S. SUZUKI REQUIRED: Exclusive sales facility for Samurai with Showroom, Sales offices Customer-waiting and accessory-display area Dedicated minimum 2 service stalls and operated by Suzuki trained mechanics Shall display required signs at inside service stalls and outside the sales office 3 sales executives, 2 service technicians, General manager, General office clerk Planned to limit dealership 50nos., lucrative ROI
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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
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Even this
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PRODUCT OVERVIEW
PRODUCT BENEFIT Ruggedness EMOTIONAL BENEFIT Feeling of being strong and rough Feeling of austerity and satisfaction Being in vogue, pride in being watched and appreciated PERSONALITY Outdoorsy, tough Sincerity, honesty Hedonistic
Spirited, Daring
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QUESTION
POSITIONED?
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Built like an SUV Drives well off-road Low Price Smaller and lighter
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Relatively large size of the market 2.5 times that of the SUV market Americans favor trucks imported from Japan [54% of total sales in 1984]
Losing out on the subcompact car segment which was larger It had a 25% import tariff compared to the 2.5% for cars
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SUBCOMPACT CAR
PROS Opens up the largest of the 3 markets Stiff and less comfortable than even the least expensive subcompact car CONS
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SUBCOMPACT CAR
PROS Opens up the largest of the 3 markets Stiff and less comfortable than even the least expensive subcompact car CONS
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Market research by: - PEARLSTEIN (Ad agency) Freeand Powerpoint - Don Popielarz (Director of research planning) - Tim O'Mara (External agency, Account supervisor)
Templates
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Gas mileage
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Young, unconventional, works hard, often go parties, desires to be rugged, takes pride, likes to be different and who seeks fun.
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CONSUMER INSIGHTS
Consumers think that SAMURAI was A symbol of their independence to do different
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ANALYSIS BY CONSUMER
SJ413 CAR 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 capabilities Designer looks Price for car A car with a wide range of capabilities for a good price
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MARKET ANALYSIS
Based on the five forces analysis: The Suzuki samurai is the perfect debut vehicle for U.S.
No significant substitutes that matched Price Capabilities Appearance Get ahead of other Asian companies that would plunge shortly to take advantage of the growing imports industry
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COMPETITIVE ANALYSIS
Key resources and capabilities Brand name GM support Useable statistics (Gray market)
Competitors
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PEARLSTEIN CONCLUSION
ANTIDOTE TO TRADITIONAL TRANSPORTATION
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POSITIONING CONCLUSION
SUV 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.
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ADVANTAGES OF UNPOSITIONING
Appeals all consumers as ensures higher customer acceptance by offering various needs . Its prospected as Multi purpose vehicle. Dull breaker Its Fun 4x4 wheel driver Economy High quality More versatile (than import subcompact cars)
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ADVANTAGES OF UNPOSITIONING
Customer satisfaction: Customer defines car to his own desire, leads to better congruence between vehicles promise and value delivered.
DISADVANTAGES OF UNPOSITIONING
Sacrifices 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
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ADVERTISING MEDIA
TV Radio Billboard Print ads Outdoor bus top, public highways Indoor malls, stadiums, etc. Sports magazines, news paper Social media Blogs Face book Twitter
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CUSTOMER RELATIONSHIP
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Light 4WD
Reliable on and Off roads Light weight and compactness gave it an
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