Table of Contents

EXECUTIVE SUMMARY 3
1.INTRODUCTION 4
1.1 PURPOSE OF THE REPORT 4
1.2 BACKGROUND INFORMATION 4
1.4 METHODOLOGY 4
1.5 LIMITATIONS 4
1.6 ASSUMPTIONS 4
2. INDUSTRY, MARKET ,PRODUCT CATEGORY AND TYPE OF OFFER 5
3.MARKETING ENVIRONMENT FACTORS: 5
3.1 MICROENVIRONMENTS 5
3.1.1 MARKETING INTERMEDIARIES 5
3.1.2 CUSTOMERS 5
3.1.3 COMPETITORS 5
3.2 MACRO-ENVIRONMENTS 6
3.2.1DEMOGRAPHIC ENVIRONMENT. 6
3.2.2 ECONOMIC ENVIRONMENT 7
4. THREE LEVELS OF PRODUCT 7
4.1CORE PRODUCT 7
4.3 ACTUAL PRODUCT 7
4.4 AUGMENTED PRODUCT 7
5. ELEMENTS THAT INFLUENCE CONSUMER BEHAVIOR 8
5.1PSYCHOLOGICAL FACTORS 8
5.1.2MOTIVATION 8
5.1.3PERCEPTION 8
5.1.4 LEARNING 8
5.1.5 PERSONALITY AND SELF CONCEPT
5.2 PERSONAL FACTORS 9
5.2.1AGE AND LIFE-CYCLE STAGE 9
5.2.2 ECONOMIC SITUATION 9
5.2.3 CULTURE 9
5.3 SOCIAL FACTORS 9
5.3.1 ROLES IN THE BUYING PROCESS AND FAMILY AND HOUSEHOLD 9
5.3.2GROUPS 10
6. BRAND 10
7.CONSUMER SURVEY 11
8.ANALYSIS OF CURRENT OFFER IN RELATION TO THE NEEDS AND WANTS OF THE
TARGET MARKET 16
9. RECOMMENDATIONS 17
10.REFERENCE LIST 18

Executive summary
The main purpose of this report is to evaluate the appropriateness SMC city car for
its target segment. In 1920
th
, Suzuki Loom manufacturing.co automotive business was first
established. On October 1990, the companys name was renamed to Suzuki Motor
Corporation (SMC). SMC operates in 22 countries with 35 main production facilities.
Today, the company is still known as SMC, a Japanese multinational corporation that
mainly operates in manufacturing automotive product that includes motorcycles, cars,
electro senior, motorized wheelchairs, outboard motors and other automobile parts. In this
report, the writer will focus more on SMC car category and focus one the type of product
that is offered by SMC, which is small city car. To complete the report, the writer gathers
sources from primary data and secondary data. The writer interviewed the sales person of
Suzuki Swift from Suzuki outlet in Jakarta via telephone and received information the
consumer satisfaction review. The secondary data are collected from several academic
journal such as Journal of Marketing, Journal of Consumer research and etc, sources from
online websites such as Suzuki Motor Corporation website, and other relevant websites, and
also Marketing textbook. Based on the consumer survey, the author analyze that customers
buying decisions are mainly influenced by Swift features, especially fuel efficiency.
However, several customers experience engine problem and authorized Suzuki maintenance
are not able to detect the problem. Therefore, SMC must provide additional training for the
authorized maintenance of Suzuki in Indonesia so that the maintenance would be able to
provide solution to the problem related with Swift car.














1.Introduction
1.1 Purpose of the report
The main purpose of this report is to evaluate the appropriateness SMC city car for the
target segment.
1.2 Background information
In 1920
th
, Suzuki Loom manufacturing.co automotive business was first established. On
October 1990, the companys name was renamed to Suzuki Motor Corporation (SMC). Today, the
company is still known as SMC, a Japanese multinational corporation that operates in
manufacturing automotive product which includes motorcycles, cars, electro senior, motorized
wheelchairs, outboard motors and other automobile parts.
SMC operates in 22 countries with 35 main production facilities. The company provides
variety of cars to cater different segments. Up to now, there are 15 brands and over 150 variations.
These are Maruti 800, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR,
Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and
Kizashi. In 2011, it is estimated that the company sold more than 1.27 million vehicles, with
revenue of US$6.79 billion.
1.4 Methodology
To complete the report, the writer gathers sources from primary data and secondary data.
The writer interviewed the sales person of Suzuki Swift via telephone and received information the
consumer satisfaction review. The secondary data are collected from several academic journal such
as Journal of Marketing, Journal of Consumer research and etc., sources from online websites such
as Suzuki Motor Corporation website, news websites and relevant websites, and also Marketing
textbook that is written by Kotler.
1.5 Limitations
The main limitations of the report are the word limit and time constraint.
1.6 Assumptions
All the content of the report are based on facts, past performance and figures gathered from reliable
sources.


2. Industry, Market ,Product Category and Type of Offer
Automotive industry can be defined as pertaining to the design, operation, manufacture, or
sale of automobiles. (Dictionary, n.d). In 1967, Indonesia government restricted entry foreign
imports by imposing heavy tariffs in the range of 275 per cent. This policy remained until 1993 and
led Indonesias automotive industry to be left behind. Afterward, government restriction laws began
to reduce and high demand of automotive products has driven Indonesias automotive industry
drastically. (RF(Okamoto, Sjoholm, 2000). Today, Indonesia one of the biggest consumer
consumption in South-East Asian economy. In 2011, the sales of the car were 870,000 units.
According to Indonesias Automotive Manufacture Association, Indonesias car sales increases
62.4% year on year. In 2011, Suzuki contributed 6.75% of the car sales market in the economy,
which was equivalent to 9,194 units of car. (Suzuki Motor Corporation,2011).
SMC is a Japanese multinational corporation that operates in manufacturing automotive
products, which includes motorcycles, cars, electro senior, motorized wheelchairs, outboard motors
and other automobile parts. (Suzuki Motor Corporation,2011)
In this report, the writer will focus more on SMC car category and focus one the type of
product that is offered by SMC, which is city car. (Suzuki Motor Corporation,2011)
3.Marketing environment factors:
The marketing environment consists of micro and macro-environment.
3.1 Microenvironments
In order to provide value effectively to the target market, SMC has implemented 3 of the
elements of micro-environment. (Kotler,2010)
3.1.1 Marketing intermediaries
SMC used several marketing intermediaries, which are physical distribution firms, reseller,
distributor and also financial intermediaries. Firstly, physical distribution firms move goods from
the warehouse of SMC that is located in Japan to Indonesia. Next, PT.Suzuki Indomobil Motor that
represent SMC agent would enable SMC and the distributor transaction to be easier. Then, the
distributor which is PT.Suzuki Indomobil Sales buy and resell the product to dealers. One of the
main dealer is Restu Mahkota Karya Group. (Suzuki Motor Corporation,2011)
3.1.2 Customers
Everyone is unique, therefore, SMC select target customer that are large enough to enable
them to create profit and designing their product according to their customer preferences. SMC
select to cater customer aged between 25-35 because. SMC target the market is the middle-income
group who are earning 20 million per month. (Coleman,1983)
Therefore, Swift stylish design and good performance is developed to meet Customers in
this age group. (Suzuki Motor Corporation,2011)

3.1.3 Competitors
Swift main competitor is Getz because both of them have several close characteristics. In
terms of dimensions, engine installations, engine ignition and fuel, type of steering and fuel
capacity tank. Swift and Getz have very slight insignificant difference. Swift and Getz are also
priced very similar to each other. Hyundai Getz are priced between 154-179 millions where as
Suzuki Swift are priced between 174200 millions. (Suzuki Motor Corporation,2011) (Hyundai
Motor Company, 2011).

In buying decision making, customers would select the product that offers them the best
value. Customer would compare price against benefit that they would receive from the product.
Getz has better boot and user-friendly touches, however, Swift have more competitive features such
as faster maximum speed, better torque power performance and also fuel efficiency. In the car test,
it is reflected that Swift has better fuel efficiency compared with Getz. Swift is constantly1.5 kpl
superior to Getz in every environment, relatively because of its long gearing. For the Getzs 10.4
kpl in the city, the Swift returns 11.5 kpl. For 14.5 kpl on the highway from the Getz, swift result is
16.2
The figure below would show the comparison between Swift and Getz. (Hyundai Motor
Company, 2011) & (Suzuki Motor Corporation,2011)
Price
Swift Swift 1.5 GT3 (A) Rp201.200.000
Swift 1.5GT3(M) Rp190.100.000
Swift 1.5ST(A) Rp187.100.000
Swift 1.5ST(M) Rp176.100.000

Getz Getz LS A/T 3 doors Rp.179.000.000
Getz SG A/T Rp.171.000.000
Getz SG M/T Rp.154.000.000
Technical specification
Swift 1.5ST(M) Hyundai Getz
Engine
Tank Capacity 4 cylinder 4 cylinder
Max power 87.5bhp at 6000 rpm 82.9bhp at 5500 rpm
Max torque 11.53kgm at 4500 rpm 11.8kgm at 3200 rpm
Installation Front, transverse, front-
wheel drive.
Front, transverse, front-
wheel drive.
Steering
Type Power assisted rack and
pinion
Power assisted rack and
pinion
Maximum speeds (KPH/rpm) 169/4700 165/5680
Fuel Economy
City(kpl) 11.5 10.4
Highway(kpl) 16.2 14.5

3.2 Macro-environments
SMC examined 3 major components of macro-environments, these are demographic,
economic, technological and cultural.
3.2.1Demographic environment.
3.2.1.1 Age structure of the population
Swift car was designed to cater customer who are aged 25-35 because people in this age range tend
to be young couples that are enthusiastic for travelling in quick rides in the city. Swift car also have
small dimensions that is perfect to cater married couples with small family that enjoy convenience.
(Suzuki Motor Corporation,2011)

3.2.2 Economic environment
3.2.2.1 Economic situation and changes in income
According to the survey conducted by Indonesian central bank, Indonesias booming
economy had revolved many low-income classes to middle income class and also made middle-
class group better off. The 2011 survey revealed that Indonesias middle class was 60.9%, this
income group earned net income above 20.4 million rupiah per year. . (The Indonesian Central
Bank,2011).
This economic situation affected SMC car sales, In 2011, the car sales rise to 9,194 from 8,743
units of car In 2010. (Suzuki Motor Corporation,2011)

3.2.2.2 Cultural and Technological environment
As SMC found out that their customers are more aware about global warming, SMC
responded by introducing direct diesel injection system engine to swift. This engine has efficient
combustion, higher torque and cleaner emissions.It has a five-step multi-injection technology that
makes the car run more smoothly than other cars. It also has a Double Over Head Camshaft that
gives the engine a quick run. With these features, Customer would strongly influenced purchase
Swift. (Suzuki Motor Corporation,2011)
4. Three levels of product
4.1Core product
The problem-solving services or core benefits that consumers are really buying when they
obtain a product. (Kotler,2010)
In the case of swift, the core product is transportation from one place to another. Another
alternative of transportation is public transport, by using swift instead of public transportation, the
user would have the benefit of convenience. The user would have the choice to select when and the
route to the destination.
4.3 Actual product
A products part, styling, features, brand name, packaging and other attributes that
combine to deliver core product benefits. (Kotler,2010)
Customer would select to purchase Suzuki swift because of the brand that would reflect the user
status. The stylish design of swift also attracts the customers. Besides that, Swift car have a lot of
wonderful features such as electronic power steering, low wind noises, and powerful 1.3L engine.
SMC also offer swift car with both automatic and manual transmission. Besides that, consumer can
also pick different variety of color of car polish. (Suzuki Motor Corporation,2011).These product
features are made to satisfy the customer needs and wants.
4.4 Augmented product
Additional consumer services and benefits built around the core and actual products.
(Kotler,2010)
When consumers purchase Swift, they also expect other services. Therefore, SMC provide
several augmented products. Before they purchase the product, SMC provide test drive. Other Parts
of augmented product offered to consumer when they purchase new car is 3 years warranty, free
delivery and also after-sales service. (Suzuki Motor Corporation,2011)

5. Elements that influence consumer behavior
Consumer decision on purchasing power is strongly dominated by two types of factor. The
first type of the factor internal influences, this is mainly made up of psychological and personal
factors. Another factor is external influences; these are typically consisted of cultural and social.
(Kotler,2010)
5.1Psychological factors
Marketers use the study of psychology to help them in predicting buyer behavior.
According to the study of psychology, the five major psychological factors that influence the
purchasing decision choices are motivation, perception, learning, attitudes, and personality and self
concept. (McCrae, Costa, 1987)
5.1.2Motivation
Needs is defined as states of felt deprivation. A need turns into a motive after it is triggered to
plenty level of intensity. According to Maslow, human needs are ordered in a hierarchy. In
sequence of importance, they are physiological needs, safety needs, social needs, esteem needs and
self-actualization needs. (Maslow, 1970)
The theory proposed that human tends to fulfill the most significant need first.
Therefore, Suzuki advertises Swift to the customer by including actor that is aged the same as the
customer in the advertisement. This is done to trigger customer sense of belongings and esteem.
(Suzuki Motor Corporation,2010)
5.1.3Perception
How people react to particular condition is determined by their perception. Therefore, two
people with almost identical motivation in matching situation are likely to act differently. People
can have different perceptions of the identical inducement due to three different perceptual
processes, which are selective exposure, distortion and retention. (Murray, 1991).
Suzuki has taken three of these perceptual concepts into account to create their
advertisements. Advertisements of Suzuki have always focus on their core strength in terms of
providing excellent service network and mileage. Each of SMC ads started with little of
exaggeration and ends with hilarious punch line. (Suzuki Motor Corporation,2010).These elements
used in SMC ads had been successful in attracting customer attention and retention. In addition,
most of SMC ads dont contain any conversation. Therefore, SMC ads successfully stand out from
others, customer selective distortion is minimized.
5.1.4 Learning
People learn from experience. People that have purchased Swift car before would have learnt
from the experience. If the experience is pleasant, then probability of the user to use the car will be
more and more. However, customer might also react differently, customer might examine city car
marketed by another brand such as Hyundai and notices distinct features and perhaps familiarize
with Hyundai. Therefore, SMC marketers establish demand for swift by increasing customer
awareness of the product distinctive features such as the car stylish and sporty design. This is done
to attract new customers to purchase Swift. Not only that, SMC has also reflected good
performance, Suzuki Swift was nominated as the car of the year (2011) award on prestigious
Automotive Researchers and Journalists Conference of Japan in. This would make Swift car buyer
believes that they have made good decision and would be more likely to repurchase the car in the
future.

5.1.5 Personality and self concept
One of the most practical concepts that are implemented by SMC to analyze consumer
preference for particular brand or product is personality. SMC strongly believe that the customers
tend to select brands that have identical personality with them. SMC has identified that Swift target
market tend to be urban vibrant couple who love travelling on quick rides. Therefore, the car was
branded Swift with the tagline of Youre the fuel to support the the peppy characteristics of the
customer. (Suzuki Motor Corporation,2010)

5.2 Personal factors
Personal factors also have a great impact on buyers decisions. Personal factor mainly
consists of the buyers age and life cycle stage, occupation and economic situation. (Kotler,2010)
5.2.1Age and life-cycle stage
Different age group has different lifestyle, taste and preference. After these elements are
reviewed, Swift car was developed. Swift car was designed to cater customer who are aged 25-35
because people in this age range tend to be young couples that are enthusiastic for travelling in
quick rides. Swift car also cater married couples with small family that enjoy convenience. Swift
car also have small dimensions that is perfect to cater married couples with small family that enjoy
convenience.
5.2.2 Economic situation
According to the survey conducted by Indonesian central bank, Indonesias booming
economy had revolved many low-income classes to middle income class and also made middle-
class group better off. The 2011 survey revealed that Indonesias middle class was 60.9%, this
income group earned net income above 20.4 million rupiah per year. This economic situation
affected SMC car sales, in 2011 the car sales rise to 9,194 from 8,743 units of car in 2010. (The
Indonesian Central Bank,2011).
5.2.3 Culture
SMC marketers strongly believe that culture is one of the crucial influences on customers desire and
general behavior. SMC identified that there has been cultural swift towards increased awareness
about the global warming. With the advancement of technology, SMC has been successful to
respond customer desire by introducing direct diesel injection system engine to swift. This engine
has efficient combustion, higher torque and cleaner emissions. This technology increases both
products quality and performance. As a result, customers are more likely to be influenced to
purchase Swift. (Suzuki Motor Corporation,2011)

5.3 Social factors
Social factors also impact the buying behavior of consumers. The important social factors
are: reference groups, family, role and status. Therefore, it is very important for Suzuki to take them
into account when designing their marketing strategies. ( Kotler, 2010)
5.3.1 Roles in the buying process and Family and household
Extensive research has displayed that family is considered to be the most important
influence on consumer buying decision. One report suggests that even though women compromise
only 40% of drivers, they have the power to influence 80% of car purchasing decision. SMC
understands that the member of the family would affect the customer buying decision. Therefore,
SMC conducts advertising that include members who are likely to initiate the purchasing such as
wives and children on Swift advs. (Suzuki Motor Corporation,2011)
5.3.2Groups
Friends, families, celebrity are several groups that can influence a persons behavior. One of
the most influential groups is an opinion leader. Opinion leaders are the people who bring influence
on others views and purchasing behavior of the product. (Zaichkowsky.L.J)
Opinion leader plays an important role on in influencing customer behavior. The following
statement illustrates the importance of opinion leader; If you need to reach 2 million people then
you just need to reach the right 2000 in the right way and they will help you reach 2 million.
SMC have persistently attempted to reach the opinion leader by conducting car show in Jakarta
International Expo every year, advertising Swift detailed features on famous local car magazines
every month such as auto car and etc. (Suzuki Motor Corporation,2011)
6. Brand
The brand Suzuki originated from the founder last name. The founder full name is Michio
Suzuki. The brand was represented by the S logo of Suzuki, which was introduced in 1954. The
logo is compromised of blue and red color. Red color in the logo depicts enthusiasm and dynamism.
On the other side, Blue color portrays strength and harmony. This logo lasted for more than five
decades. Therefore, it is known as the most iconic and memorable car logos ever created. This logo
also significantly involved in facilitating the victory of the brand history by illustrating the company
capability in strong visual sign. (Suzuki Motor Corporation,2011)
In addition to be the parent company, SMC is also one of the leading manufacturer
worldwide. With the company brand history and the tag line, Way of life, customers have
perceived SMC as one of the finest car manufactures who persistently develop quality cars and
motorcycles appropriate for everyday use. (Suzuki Motor Corporation,2011)
This enable SMC to launch several product lines successfully. (Aaker, Keller, 1990)
One of its product lines is Swift. With the use of simple and meaningful brand name of Swift and
the tag line Youre the fuel, the image is created in customer perceptive is the meaning of the
word Swift. (Suzuki Motor Corporation,2011)
It is important that the customer perceive the brand as intended as this would impact the
product sales dramatically.

7.Consumer Survey
The consumer survey consists of 9 questions. This consumer survey information was
obtained from Suzuki salesperson. He conducted the consumer survey to 50 people who have
purchased Swift. All of the people who answered the survey was from the city of Jakarta.

1. Consumer preference: Diesel or Petrol?
Particulars No.of respondents Percentage(%)
Petrol 18 36
Diesel 32 64
Total 50 100


2.Features that Influence consumer buying Swift
Particulars No.of respondents Percentage (%)
Price 15 30
Product features 20 40
Brand 7 14
Service 8 16
Total 50 100

















3.Where did you purchase your Swift?

Particulars No.of respondents Percentage (%)
Through advertisement 12 24
Dealer 18 36
Showroom 10 20
Pre-owned car 10 10
Total 50 50















4. Customer satisfaction on Swift engine

Particular No.of respondents Percentage(%)
Very good 10 10
Good 16 16
Average 5 20
Not good 11 22
Can't say 8 32
Total 50 100





5.Customer satisfaction on Swift mileage
Particulars No.of respondents Percentage (%)
Yes 30 60
No 20 40



6. Customer satisfaction towards Swift safety features

Particulars No.of respondents Percentage(%)
Very good 10 10
Good 17 16
Average 12 20
Can't say 11 22
Total 50 100



7 .Will Suzuki charge higher price for Swift in the future?
Particulars No.of repondents Percentage (%)
Yes 19 38
No 15 30
Cant say 16 332
Total 50 100



8. Will change in feature of Swift increase your satisfaction?
























9. Customer trend in purchasing new car
Particulars No. of respondents Percentage(%)
1-3 Years 18 36
3-5 Years 11 22
5-10 Years 15 30
More than 10 years 6 12
Total 50 100

Particulars No. of respondents percentage(%)
Yes 26 52
No 13 26
Cant Say 11 22
Total 50 100
8.Analysis of current offer in relation to the needs and wants of the target market
Based on the customer survey, the following analysis are made:
The customers are more satisfied with the Diesel model of Swift because there has been cultural shift
towards greater awareness on reducing pollution. Therefore, more of Diesel types are purchased.
Most of the customer claimed that the strongest influence of purchasing Swifts is the product
features especially the fuel efficiency. Thus, Swift car sales are mainly due to the quality it offered.
Most customer prefer purchasing car directly to dealer because it dealer offered them range of
benefit such as 3 year warranty, convenience, availability and good after sales service.
26% of the customers were satisfied with Swift, however, 22% stated that Suzuki engine was not
good. 22% of them experienced engine problem on Swift car, they complained that the engine
stopped an in the middle of the road and can only be turned on after few seconds. However, when
they service the car to the authorized Suzuki maintenance, the maintenance said there is no problem
regarding the engine.
60% of the customers are satisfied with the mileage of swift where as 40% of the customers are not
satisfied. Most Swift car users used their car in urban areas, therefore, the difference of the
satisfaction might be due to their own perceptions.
None of the customer complained about the safety features. However, 22% of the customers have
little knowledge on the safety features and could not provide any comments.
38% of the customers believe that Swift price would be maintained, as it is one of the features that
influence customer-purchasing decision. However, 32% of the customers oppose this opinion
because they predict that Swift features would be increased and Suzuki would need to increase the
price to cover the research and development cost. Other 30% did not comment anything.
52% of the customers stated that they would be more satisfied if there are modifications on Swift.
26% of the customers are highly satisfied, therefore, modification on Swift would not affect their
satisfaction, and where as 22% of the customers did not provide any opinion.
17
9. Recommendations
After analyzing the customer survey, the following recommendations are made:
Customers have complained that they have experienced engine problem. Therefore, it is very
important for SMC to detect the engine problem and develop solution for the engine problem.
SMC must provide additional training for the authorized maintenance of Suzuki in Indonesia so that
the maintenance would be able to provide solution to the problem related with Swift car.
SMC must increase advertising and also reach more opinion leaders to change the perception of the
customers who are not satisfied with the product mileage.
Customers are very eager to have modification on Swift. Therefore, SMC should conduct research
and development to enhance the quality of the product to increase customer satisfaction.


18
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Dicitonary (N.D) Retrieved 21 August 2012, From http://dictionary.reference.com/browse/automotive?s=t

Hyundai Motor Company (2011). Price of Hyundai Getz. Retrieved 21 August 2012,
Fromhttp://www.hyundai.com/in/en/Showroom/Flash/SERVEW/DF_IN_SR_CF_13153639.html

Kotler.P,Brown.L,Burton.S, Deans.K & Armstrong.G (2010). Marketing (8
th
edition), New South Wales :
Pearson Australia.

Maslow(1970). Motivation and Personality (2
nd
edition), New York : Maurice Basset Publishing

McCrae.R.R, Costa.P.T(1987). Validation of the Five-Factor model of Personality across Instruments and
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Murray.B.K(1991, January). A test of services marketing theory: Consumer Information Acquisation
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OICA (2011). 2011 Production Statistics.Retrieved 27 August 2011, from
http://oica.net/category/production-statistics/

Okamoto. Y, Sjoholm.F (2000).Productivity in the Indonesian Automotive Industry.Asean Economic
Bulletin, Vol.17, no 1,pp.60-73.

Suzuki Motor Corporation. (2011). Suzuki Company Profile. Retrieved 20 August 2012, from
http://www.globalsuzuki.com/corp_info/outline/pdf/company_profile_2011.pdf

The Indonesian Central Bank(2011). Indonesias Middle Class Up 7 Million a Year. Retrieved 21 August
2012, from http://www.worldbank.org/en/news/2012/07/12/indonesia-economic-quarterly-rising-to-
present-and-future-challenges.

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no.3, pp.341-52.