suzuki samurai
DESCRIPTION
ppt on the Case study "Suzuki Samurai" on positioning before entering the US market. Link to the case is http://hbr.org/product/suzuki-samurai/an/589028-PDF-ENGTRANSCRIPT
Suzuki Samurai
ByM.KrishnanS.SashidharanP.Vijaykumar
Factors to be considered
• Competition• Sales volume• Price• Brand Salience• Distribution Network• Demographics
The 3 Traditional Positioning Options
• Compact SUV• Compact Pickup Truck• Subcompact Car
Compact SUVPros Cons
4x4 drive capability Low Market Potential which might not reach target sales
Built like an SUV Limited Market of SUVs[less than 3% in 1984]
Drives well off-road Some consumers correlate Price and Quality
Low Price
Smaller and lighter
Compact Pickup TruckPros Cons
Relatively large size of the market – 2.5 times that of the SUV market
Losing out on the subcompact car segment which was larger
Americans favor trucks imported from Japan [54% of total sales in 1984]
It had a 25% import tariff compared to the 2.5% for cars
It could be used as a truck when purchased without a backseat or a folded
up backseat.Narrow target segment
Subcompact CarsPros Cons
Opens up the largest of the 3 markets Stiff and less comfortable than even the least expensive subcompact car
Priced lower than many other subcompact cars
Very good mileage of 28 miles to the gallon
The Un-positioning strategy
• Un-positioning is just the opposite of positioning. It is offering a single product to the entire market.
• Each person can define the product in his or her owns way and can rationalize the purchase decision in his or her owns terms.
Pros Cons
Much larger target segments Tough job for the dealers
High customer satisfaction Might lead to confusion
Higher profitability Brand might get diluted
Threat to competitors
Target sales in each segment
SUV Pickup Truck Subcompact Car
% total industry sales 3% 7.6% 12.4%
Target sales in the import
category120% 21.6% 4.1%
Target total sales in that
segment7% 2.76% 1.7%
Attributes of Suzuki Samurai
• Off-Road Snow Driving Good• Everyday Driving Poor• Passenger Comfort Poor• Styling Poor• Mileage Good• Quality/Durability Good
When linked to the given perceptual maps
• [Good, Poor] Import SUV• [Poor, Poor] Import Pickup• [Good, Poor] Import SUV, Import Pickup• [Good, Poor] Import Pickup
It is logically best to position it as a Pickup Truck but on doing that they would be restricting themselves.
Marketing Programme
• Targeting• Positioning• Relationship• Distribution• Pricing• Promotion and advertising
Thank You