Product strategies for new markets and existing categories

Chandrabhan Singh Nathawat Perrine Lotin Swann le Moigne Jakub Domeracki

10DM-037 11FRN-163 11FRN-164 11FRN-165

Suzuki Motors
Established in 1909 by Michio Suzuki as loom manufacturing company. Manufacture the first bike in 1952 and renamed as Suzuki Motor Company, Ltd. Started manufacturing cars in 1961 with first model Suzulight. Started exporting motorcycles to US in 1964.
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C O M PA N Y P R E S E N TAT I O N

American Suzuki Motor Co.

C O M PA N Y P R E S E N TAT I O N

ASMC was launched as a subsidiary of Suzuki Motors in US headed by Douglas Mazza. Initially it was to be launched in 1989, but due to new entrants they changed their plan and pre pond the penetration.

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Dealer Network in US
Separate showrooms for Samurai by the prospects Dealers With the introduction of new models in product line the staff, facility would be increased 37 cars given to each dealer to sell calculating 30 needed to be sold for covering monthly operating cost. Later set to 47 cars per dealer.
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C O M PA N Y P R E S E N TAT I O N

Ansoffs Matrix
PRODUCT
Existing AUTOMOTIVE MARKET New

Existing

Market Penetration

Product Development

MARKET
Market Development
Selling

New

Diversification

existing product to new types of consumer

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Market Positioning
Distinctive / Design Pros: Large mkt / good milage /price lower Cons: Less confort Low Price AUTOMOTIVE MARKET Pros: Same style / 4X4 / Off-road Cons: Low market volume
SUV C+ D (family) C (compact) B+ Compact Pickup B (subcompact) A (minicompact) Pickup

FUN CATEGORY

High Price

Pros: Great imported car (56%) Cons: Lose subcompact customer

Practical

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Target sales by segment

Samurai target : 30 000 units AUTOMOTIVE MARKET

SUV Compacy P/U Subcompact % total industry 3% 8% 12%

% of imported
% target imported % target segment

6%
120% 7%

56%
22% 12%

46%
4% 2%

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Suzuki survey from Canada

Cars sold 4000 in 1984 75% Male 62% between 18 to 34 years old Average age of buyers 33 51% lived in two-person household with average income $43 800

CUSTOMER PROFILE

Suzuki Samurai one world description FUN 41% Main reason for purchase Design/Appearance 64% and Economy/Value 55%
Within group 4x4 39%, good looking 22%

Disadvantage of the study: strong climatic and cultural differences

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Suzuki survey from Florida

Cars sold 3000 in 1984 Buyer two major groups: CUSTOMER PROFILE
young, on average 18 to 30 years Single First time car buyer Also young woman

People above 30 Both single and married Suzuki bought as a third or fourth vehicle

Disadvantage of the study not nationwide but still bringing strong clues about potential buyer

Company overview Cars market Customer profile - Recommendations

Suzuki survey

Major ways of getting information about car: CUSTOMER PROFILE

Word of mouth Dealership

Most important features for the client: price, versa and and the fact that model was convertible Four-wheel drive was not consider as the principal feature of the car Car perceived as a symbol of independence Appearance linked strongly to attitude - car attractive for young or youngat-heart

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Target Group

CUSTOMER PROFILE

Both man and woman Aged between 18 and 25 Buying first car or second/third car in the household Price sensitive Looking for fun from using a car Interested and versality and convertability Treating a car as a symbol of independence Expecting to have a limited use of 4x4 feature Looking for car not fitting the classical market segmentation

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Off road Good Off road Poor Every Day Good Off road Good Every Day

PERCEPTUAL MAP

Import Sport Utility

Domestic Sport Utility

Everyday

Import Pick up

Domestic Pick up Poor Off road Good Every Day

Poor Off road Poor Every Day

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Comfort Good Comfort Poor Styling Domestic Sport Utility PERCEPTUAL MAP Import Sport Utility Market Gap Styling Good Comfort Good Styling

Domestic Pick up Import Pick up

Poor Comfort Poor Styling

Poor Comfort Good Styling

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Recommendations
R E C O M M E N D AT I O N S
Both man and woman Aged between 18 and 25 Buying first car or second/third car in the household Price sensitive Looking for fun from using a car Interested and versality and convertability Treating a car as a symbol of independence Expecting to have a limited use of 4x4 feature Looking for car not fitting the classical market segmentation Segmentation based on attitude: Professional Neutral Strong
B+ B (subcompact) A (minicompact)

FUN CATEGORY C+

SUV

D (family)
C (compact) Compact Pickup Pickup

Company overview Cars market Customer profile - Recommendations

Recommendations
R E C O M M E N D AT I O N S

Positioning : - In between the present group

Tag line: If you are bored with your limo or SUV and you are looking for sheer fun go for Samurai. The Fun was never so accessible
Company overview Cars market Customer profile - Recommendations