Never Be Afraid to Slow Down - Suzuki Motorcycles

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SUZUKI - Never afraid to slow down

AUTHOR DETAILS:CO-AUTHOR DETALS:
Mr. Dhruv SuriMr. Atul Gupta
Enrollment Number: A0101911112Vice President - Sales & Marketing MBA Section B SUZUKI MOTORCYCLES INDIA PVT LTD
Roll No.: 37Sales & Marketing Office:
Contact No.: +91-9999-699-321IInd Floor, Plot No 1,
E-mail: dhruv300@gmail.comNelson Mandela Road, Vasant Kunj,
New Delhi - 110070 (India)
Contact No.:011-43127000
E-mail: gupta.atul@suzukimotorcycle.in
TABLE OF CONTENTS:
* BACKGROUND ASSESSMENT
* HISTORICAL APPRAISAL
* SITUATION ANALYSIS
* PLANNING ASSUMPTIONS
* MARKETING OBJECTIVES
* MARKETING STRATEGY
* CORPORATE INTEREST IN RURAL MARKET
* REASONS FOR GROWTH
* TARGETING THE UNTAPPED POTENTIAL
* MARKETING MIX
* SALES FIGURES
* REFERENCES

BACKGROUND ASSESSMENT
HISTORICAL APPRAISAL:
In the early 1980s, owning a motorcycle was equivalent in status terms to having an expensive imported car today. The motorcycle segment reported a sharp decline in growth on account of factors such as high running and maintenance costs, perception that motorcycles were more suitable for the rural roads, high price of motorcycles in comparison with scooters or mopeds and the availability of fairly new models of scooters. With the de-licensing of the automobile sector in the mid-1980s, the motorcycle sales registered a healthy growth during the late 1980s. In 1990, due to the rise in fuel prices, high input costs and reduced purchasing power, the industry witnessed a recession. In 1993, the recession began to ease off and the growth in the motorcycles segment began. The two-wheeler industry saw large-scale structural changes. With the launch of lighter, 100-cc motorcycles, a significant shift began to take place and motorcycles sales began to grow. One of the major assumptions underlying the motorcycles rush was that if the market was considerably large and was growing at a constant rate. But in 2010-11 the estimated sales of motorcycles in the Indian urban area was declining. The number of motorcycles operating on roads was reducing with increase in per capita income.

Fig 1.1 Estimated shares of transportation modes in India (2010-11) SITUATION ANALYSIS:
Although the motorcycles offered to the Indian consumers comprise of a wide variety of models to choose from, but the companies are under immense pressure to concentrate on cost-cuts, technology enhancements, and up gradation along with styling. The companies were forced to reduce prices and offer discounts to survive the competition. Therefore their margins came under pressure as marketing costs increased. Virtually every Auto Magazine in this country rate the Suzuki Bikes as a good bike in the 125 cc segment. Even my own personal opinions do not differ much from these auto magazines. Fig 1.2 Comparative graph showing market share of various motorcycle companies in India (2008) – SIAM Data [1] PLANNING ASSUMPTIONS:

The India’s rural economy is very large and there is immense growth in the lower middle class income households. The growth prospects of the Indian rural economy offer a significant opportunity for the motorcycles in India. The penetration of motorcycles among rural households with income greater than 1, 00,000/- per annum has already increased over 50 percent and is expected to grow even further. [1] http://www.2wheelsindia.com/2010/09/suzuki-slingshot-125-cc-launched-suzuki.html

MARKETING OBJECTIVES
First let’s divide this case study for rural markets into a few sections: 1. Who are the 125 cc “Target Customers" and what are they looking for? 2. The "Buyer Behavior" of a125 cc customer.
3. The "Evaluation/Choice Process" of a customer,...
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