suzuki samurai

12
Suzuki Samurai By M.Krishnan S.Sashidharan P.Vijaykumar

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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-ENG

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Page 1: Suzuki samurai

Suzuki Samurai

ByM.KrishnanS.SashidharanP.Vijaykumar

Page 2: Suzuki samurai

Factors to be considered

• Competition• Sales volume• Price• Brand Salience• Distribution Network• Demographics

Page 3: Suzuki samurai

The 3 Traditional Positioning Options

• Compact SUV• Compact Pickup Truck• Subcompact Car

Page 4: Suzuki samurai

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

Page 5: Suzuki samurai

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

Page 6: Suzuki samurai

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

Page 7: Suzuki samurai

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

Page 8: Suzuki samurai

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%

Page 9: Suzuki samurai

Attributes of Suzuki Samurai

• Off-Road Snow Driving Good• Everyday Driving Poor• Passenger Comfort Poor• Styling Poor• Mileage Good• Quality/Durability Good

Page 10: Suzuki samurai

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.

Page 11: Suzuki samurai

Marketing Programme

• Targeting• Positioning• Relationship• Distribution• Pricing• Promotion and advertising

Page 12: Suzuki samurai

Thank You