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S? .i What is Suzuki͛s marketing strategy in the U.S? i What are the three major positioning options (as per industry practice) according to a vehicle͛s physical characteristics? i What are the pros and cons of positioning the Samurai in each of these segments individually i What are the pros and cons of the ͞Un-positioning͟ strategy? i What strategy would you recommend for the Suzuki Samurai in the U.

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. General Motors (GM) purchase 5% of Suzuki and helped the company a subcompact car for the US market. GM's success with Sprint showed Suzuki that a market existed for its cars in the continental of United States. U.      i o meet the dynamic market demand. hen it began to export multi products and out sources its one brand: In 1983. he car. . herefore. Suzuki changes its policy many times. named Chevrolet Sprint. was the first entry into the continental US automobile market. to serve as the exclusive importer and distributor of Suzuki motorcycles.S automobiles industry. At first they entered in the US market as exporter of a single product (only motor cycle) with °     . In 1964 Suzuki began exporting motorcycles to the United States where it established a wholly owned subsidiary. hen Suzuki (he always something different car company) planned to introduce several unique vehicles into the US market over time.S Suzuki Motor Company. Ltd. Suzuki decided to establish its own presence in U. Suzuki had no guarantee that GM would be willing to market the vehicles.

i hen he designed a dealer agreement that required prospective Samurai dealers to build an exclusive sales facility for the Samurai. but a minimum of two service stalls need to be dedicated to Suzuki. Vice President of ASMC (American Suzuki Motor Corporation) adopted the step of Convincing prospective dealers to build separate showrooms for the Samurai.S. Mazaa. | !: i Suzuki͛s goal was to establish itself as a major car company in U. i o achieve this goal. . i Service and parts could share a facility with a dealer͛s other car lines. which had to be operated by Suzuki- trained mechanics.

sales offices. two service technicians. i A minimum of three sales people . i company followed the selective distribution (close to exclusive distribution). customer walking and accessory display area. greater sales support and also higher degree of control over the retail market.i he facility had to include a showroom. dealer loyalty. i Required dealership to display specific signs and outside the sales office and in the service stalls. one General manager and one general office clerk had to be dedicated to the Suzuki dealership. It allowed the company to achieve higher profitability. .

i Cost efficient product (almost half the traditional one) to attract & catch the customer quickly. i Dealerships selected with trading areas that encompassed zip codes with high concentrations of households that fell into Suzuki͛s target market. i Engage a strong dealership bigger than traditional based on the belief that quick dealer profitability would be key to successͶas a dealer͛s sales opportunities grew. X|!"X |#$ %: i he company aimed to gain market response for its high quality with low price advantage. .

i †ocus on early entry (Before Hyundai Motor Company of South Korea and Zavodi Crvena Zastava (Yugo) of Yugoslavia.S (the always something different car company) i Establishing its own presence in the U.) i Introduce several unique vehicles into the U.S automobile industry for independence (collaboration with GM is not guaranteed to continue) .

i Chose to introduce the Samurai into California. and †lorida and Georgia. where Japanese import sales were higher then the U. the nation͛s largest automobile market.S. ! X |"!& i (SJ413) for customer attractiveness & product modification for overcoming import barrier for big quantities. average .

which had no experience in developing campaign for automobiles. i VP of ASMC wanted a fresh approach for his company's new product. . X  !!"%"#: i Positioning is placing a brand in that particular part of the market where it will receive a favorable reception compared to competing products. i Pearlstein and his associates scanned the industry practice for automobile advertising. i he gave the responsibility to that advertising agency.

the major three positioning options for Samurai SJ413 were as follows: Position as a  ' '   ° . i Based on its physical characteristics.i hey found out that the industry practice was to position vehicles according to their physical characteristics i hey also found out that most advertising was feature/ benefit or price oriented. Position as a  ' ' .

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. Position as a ( '  .

jeep" and had 4-wheel drive capability. i Ease of repair. PROS: i he features matched exactly with the attributes of compact sport utility vehicle. It looked like a "mini. i he Samurai was smaller and lighter than the other vehicles. It had the ability to go anywhere where larger vehicles could not. . i Positioning as a sport utility vehicle is consistent with the samurai's heritage. i Praising of foreign owners because of samurai's reliability. i Designed to drive well off road. | X%|X #)|: i he most obvious position for the samurai is as a sport utility vehicle.

It was sold below the price of the other vehicles. market.i Smaller and lighter than the other vehicles.000 to $13.000 price range. i hus the positioning of Samurai as sport utility vehicle solely concentrated on the low price and its ability to squeeze through places where bigger vehicles could not go. It needed to be advertised as a ͞ough little cheap Jeep.S." . Its l  suggested retail price was well below the other vehicles͛ $10. i Its price and size made it distinct from all other sport utility vehicles in the U.

CONS: i here seemed to be a problem of whether the positioning could generate the envisioned sales volume.000 units within 2 years of its introduction. . In 1984 it was less than 3% in the U. i he market for sport utility vehicle was relatively small.S market. o achieve this it was required to exceed the combined 1984 sales of all imported sport vehicles. he goal was to build as annual sales of 30.

| X%|X|*X|*& he second option. i he price was set at the retail price to keep it in comparison with Japanese imported trucks. male-targeted tough truck. X & i It would tap a market two and one-half times the size of that for compact sport utility vehicles. i he Samurai could be used as a truck when purchased without back seat or when its back seat was folded up. hus the positioning strategy would only indicate uniformity with other truck prices but rather uphold a serious. practical. positioning the Samurai is as a compact pickup truck. i It had the advantage that Japanese trucks sold well in the U. i It had the high level of US consumer͛s acceptance. .S accounting for 54% of total 1984 compact pickup trucks.

price is one of the factors to attract customers. .CONS: i o penetrate as a new company. But it did not have any price advantage over other similar cars.

hose who were shopping for an economy car could consider it. i A trend had been developed that professional like lawyers. hus the positioning strategy should give emphasis upon looks and style . doctors drove it to their offices leaving their Mercedes at home. i he Samurai boasted an average 28 miles per gallon in combined city and highway driving. was priced lower than many subcompact cars. | X%||%: i he third option is to position the Samurai as a subcompact car. and offered more versatility. PROS: i Positioning the Samurai as a subcompact car would open up the largest of the three possible markets.

CONS: i If it was positioned as a car then it might not meet the expectations of the consumers because the Samurai was built on a truck platform. its ride was stiffer and less comfortable than the least-expensive subcompact cars .

compact pickup truck and subcompact car. It is offering a single product to the entire market. !X  !!"%"# i Un-positioning is just the opposite of positioning. . compact sport utility vehicle. i Pearlstein Ad agency suggests that Samurai SJ 413 should be un-positioned in the market to cover all three possible segments.

%%!%" $!X  !!": i Larger arget Customers: i Customer satisfaction: i Higher Profitability: i hreat to Competitors: .

Larger arget Customers i Due to un-positioning Suzuki Samurai American Suzuki Motor Corporation (ASMC) gets the opportunity to target the entire potential consumers segment. i he Un-positioned Suzuki Samurai will appeal the users of pick up truck. hat ensures higher consumer acceptance by offering a car for various needs. . subcompact cars and sports utility vehicle.

by clearly defining the image of the vehicle. Customer satisfaction i If each consumer is allowed to personally define the Samurai. . this would lead to greater similarity between the vehicle's promise and its delivery if Suzuki told customers what the Samurai was.

it will definitely increase sales and thus add larger profit to the company's income statement also. . i hus this strategy is perfectly compatible with company's goal that is to establish ASMC as a major car company in the US. Higher Profitability i As un-positioning will target a larger customer segments.

hreat to Competitors i Un-positioning will offer a car with different purpose. in the mean time. So. It will also serve the purpose of versatile transportation. i he broader appeal of the car can reduce its competitor͛s sales and thus can guarantee sales more than 6000 units in the first six months. competitors' sales might deteriorate. .

%%!%" $!X  !!": i Losing of present Customers i Loosing Potential Market i rouble for the Sales People: i Increased Confusion: .

| !%"# i Market argeting i Positioning i Relationship i Distribution i Pricing i Promotion and i Advertising .

. %*%"!": i Suzuki wants its Samurai to sell extensively in the US market. i it is likely to build customer awareness and eagerness to buy a Samurai in every potential car buyer. segment but for all who needs a car.S. It will maximize the sales of the car and thus will increase revenue and profit. So to target market it should follow extensive targeting strategy. i here are less risk as the research showed that there is huge demand for the earlier model and the market was preferring the Japanese vehicle as they were ensured about the quality of Japanese product and these vehicles were economical (Both mileage and price). i he car should not be for any specific Suzuki's Marketing Strategy in the U.

it can be perceived as an alternative to dull automobiles for small-car buyers and small truck purchaser were buying them to use as cars than import subcompact cars. . are mentioned earlier to position Samurai among the clients but research shows that customers perceive the car in different ways. compact pick-up truck. and a subcompact car. i Any sport utility buyer can be attracted by just looking at the vehicle. including sport utility vehicle. i o achieve higher market share and sales it will be unwise for Suzuki to impose any perception on consumers mind. X  !!" i hree alternatives.

i disadvantages regarding un-positioning the car but the 80-20 rule is more applicable here. . adoption from any of the segments would get the job done. i As the vehicle has every characteristic to attract every possible market segment.

. i Suzuki should take measures to build strategic alliance with potential companies in US. i Customer satisfaction and after sales services are two major issues that can play effective role in positive attitude and perception towards Samurai͛s success. Relationship among dealers and customers are also important. dealers and customers. | |%"# i Customer Service strategy should also be planned among the organizations.

i he strategy that Suzuki should take is to make efficient use of that identity to make the new brand stable and reliable. i he matter to consider is Suzuki. the maker of Samurai. %!!" i As Samurai is a new product in the market it should build a strong brand image among the potential customers. is not new in the market and already it has a place in customers mind. .

Vertical Integration dominates the retailing sector. . i A primary feature of it is the management of the distribution channel by one organization. i he firm that is the channel manager directs programming and coordination of channel activities and functions.  ! i Suzuki can go for vertical integration system for distribution. i Operating rules and guidelines indicate the functions of responsibilities of each participant.

i Management assistance and services are supplied to the participating organizations by the firm that is the channel leader. i ASMC can also practice competitive channel strategy simultaneously to increase sales of Samurai. . i Addition intensive may be offered to sell certain numbers of Samurai to each dealer in this regard.

mostly depends on financial performance. It may be used to position the brand as a high-quality product at a less price. X|!" i Price may be used as a signal to buyer because the price of Samurai is visible to the buyer and provides a basis of comparison between brands. i It may be used as an instrument of competition. . i It is a competitive factor. expansion. And productivity. investment etc. In the US market all of the similar cars are selling at $8000 - $13000 while Samurai is priced at $5995. It may be used to improve financial performance of the company also.

easier pricing process etc.i he low price of the Samurai can be used as penetration pricing strategy to capture greater share of the market. Penetration pricing reflects a long-term perspective in which short-term profits are sacrificed in order to establish sustainable competitive advantage. . i At the same time Samurai can enjoy the advantages of one-price strategy also that includes administrative convenience.

X   !%!%!" i he advertising and promotion budget of ASMC for the first six month is $2. 10% on print ads. he print ads were to run in both general-interest magazines and enthusiast magazines. and 3% on highway billboards. i ypically an automobile manufacturer spent 77% of its advertising dollars on television ads.5 million. .

  & i Creating or increasing buyer awareness of the car Influencing buyer attitude toward the company Suzuki and the brand Samurai. i Encouraging long term relationship. i Encouraging trial of the car. .  . (+ ° . i Attracting new customers with existing Suzuki clients. i Achieving increases in sales and market share for specific customer or prospect target. i Generating repeat purchase of the car.

he public relation programs. i Advertising. sales promotion are all considered in the planning of marketing communication. Marketing communication programs are targeted. direct marketing.i Suzuki should follow the integrated marketing communication to integrate the promotion tools because. i Marketing communication programs coordinated execution of all the communication components of the organization. marketing communication programs are comprehensive. advertising programs. publicity. . and dealer/distributor programs all have the same or related target markets. personal selling. i he messages delivered by all media are the same or supportive of a unified theme.

hey are i X      &consumers may be offered free servicing for certain time period. i X     (&Intensive or bonus may be announced to the channel members for selling certain number of vehicles.Suzuki may also apply sales promotion activities to the following groups to achieve its goal of selling designated number of Samurai. . i X      -'   &Discounts may be given for big orders from such organizations. or some gifts with the purchase.