Free Essay

Samurai

In: Business and Management

Submitted By vishalsaini333
Words 930
Pages 4
Indian Institute of Management
Kozhikode

Marketing Management
Case Analysis: Suzuki Samurai

Submitted to: Prof. Rahul Kumar Sett

Submitted By:
PGP/14/258
PGP/14/280
PGP/14/303

Alok Kumar
Mahtaab Kajla
Shruti Kabdal

PGP/14/279
PGP/14/283
PGP/14/304

Lokesh Singh
Naveen Vyas
Sneha Ramtake

Situation Analysis






Suzuki SJ413 was an upgraded model of the SJ410. It was designed with the US market specifically in mind.
Suzuki planned to market the product under the name Samurai with two versions namely, convertible and hardtop. They had three segment options to enter market: SUV, compact pickup truck and subcompact car.
Planned retail price for Basic Samurai was $5995.
Douglas Mazza, VP and GM of ASMC had decided to limit the initial dealer network to a maximum of 47 dealers and had chosen California, Florida and Georgia to introduce the Samurai.

Problem Identification
 Which segment should the Samurai be positioned in so as to maximum utilize the brand equity which Suzuki already has?
 How should the Advertising budget be allocated among various media?
Qualitative analysis
Points of Parity and Points of Difference:


SUV

Feature

4Runner

Suzuki
Samurai

Trooper

Wagoneer

Chevy S10 blazer Medium

Medium

Low

Medium

High

Comfort

Medium

High

High

High

Medium

Quality

High

High

Medium

Low

Low

Styling

High

Medium

Low

High

Medium

Off-Road

High

Medium

High

Low

High

Gas mileage
Marketing Management | 21/07/2010

Everyday
Driving

High

Medium

High

medium

Low


Feature

Pickup Trucks
Suzuki Nissan(2) Toyota(2)
Ford
Samurai ranger(2) ChevyGMC s15(2) Nissan

Toyota

(4)

(4)

Ford ranger(4) ChevyGMC
S10(4)

Everyday Medium
Driving

High

High

Medium

Low

Medium

Medium

High

Low

Comfort

Medium

Low

Low

Low

Low

Medium

Low

Low

Low

Quality

High

High

High

High

Medium

Medium

High

Medium

High

1

Styling

High

High

Low

Low

Low

High

Low

Medium

Low

OffRoad

High

Low

Low

Low

Low

High

High

High

Low

Gas mileage High

High

High

Medium

Medium

Low

Medium

Low

Low

It is stated in the case that the subcompact car segment offers the largest market. Also, from the above two tables, it is evident that Suzuki Samurai has either medium or high value in all attributes of the SUV segment or pick-up truck segment. So that justifies that Suzuki Samurai can be placed in any of the segment.
So, adopting an “unpositioning” strategy appears to be the best option, as it would ensure the product will not appeal to one specific segment and will attract a larger and diverse customer base.
Quantitative analysis
Refer to Annexure – A for details of Budget Allocation. The calculations have been done by evaluating each attribute as providing an advantage (+1), a disadvantage (-1), or holding no influence (0), against every segment.
Arguments in favor of unpositioning strategy
 It has the ability to go to places where larger vehicles could not, making it suitable for the SUV segment
 Can be pitched to the consumers who were looking for an economy car, indicating positioning in the subcompact car segment
 Can be positioned with the emphasis on looks and style of a car
 Priced comparably with Japanese import compact pickup trucks, thereby making it suitable to position it in the pickup trucks segment
It is clear from the above arguments that positioning “Samurai” in each of the three segments offers its own strong advantages. Consequently, restricting it to only one segment would imply losing out on the potential market in the other two segments.

 Based on the various surveys which the company has conducted, they have found out that there is a possible market in every segment for Samurai
 Each buyer perceives the Samurai according to his/her own needs.
Recommendations


Gray market statistics in US can be treated as results of a pilot run for Samurai. Young and fun element seeking people will constitute a major chunk of potential Samurai customers.



From the above qualitative analysis, we can conclude that there is a high possibility of Suzuki Samurai to succeed in either of three segments of the market; so instead of focusing it on a particular market segment

Marketing Management | 21/07/2010

Inference

2

we recommend to introduce this vehicle in the US market under the big banner advertisement “The End of
Dull…The start of Suzuki”.

3

Suzuki should focus on their core strength of providing best technology at low prices to build its brand equity both to capture market in short term and to strengthen its position to compete in the imminent brand clutter.



Marketing Management | 21/07/2010



Since Suzuki has plans to launch it only in few regions of US so the advertisement can be more focused on local coverage rather than more spending on National level.

Annexure A- Budget Allocation for advertising
Attribute
Reliability
Off-road/Snow Driving
Manoeuvrability
Ease of Repair
Price
4-wheel drive
Performance
Mileage
Appearance
Seating Comfort
Everyday Driving
Capacity
Market Size
Total
Percentage
Notes:
Advantage
No Influence
Disadvantage

Advertising budget
For SUV Specific Features
For Pickup Truck Specific Features
For subcompact Car Specific
Features

Compact
Pickup Truck

Compact SUV

Sub Compact
Car

0
1
1
1
-1
1
1
1
1
0
1
1
-1

1
1
1
1
0
0
1
1
1
0
1
1
1

1
1
1
1
-1
0
1
1
-1
-1
1
-1
1

7
33.33

10
47.62

4
19.05

1
0
-1

2500000
833333.33
1190476.19
476190.48

The budget allocated for each segment should be used for promotion of features specific to that segment, while refraining from explicitly categorizing the product in any one segment.…...

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