1.0 Executive Summary
This analysis provides the background, SWOT analysis and different marketing alternatives such as positioning the vehicle as a car, compact truck or sports utility vehicle. Later the recommendation is made on which marketing strategies are suitable for the success of the Suzuki Samurai in US market. The analysis has also highlighted in detail the pros and cons of the “unpositioning” that we propose versus three options of positioning that were considered earlier. We have also evaluated the strength of the marketing research done by Pearlstein in terms of ensuring market of success in US market. In this analysis, there is also the recommendation on how the $2.5 Million six-month adverting budget should be spent in accordance to the positioning strategy chosen.
2.0 Situation Analysis
2.1 The company
2.1.1 Company Background
Starting business in 1909 as Suzuki Loom Works, the firm was incorporated in 1920 and was to produce textile looms that would surpass the innovation and quality of other competitors. Since foundation Hamamatsu, Japan, SUZUKI has steadily grown and expanded. In 1952, Suzuki created a new type of motor vehicle, a motorized bicycle call the “Power Free”. This motorized bicycle featured a 36cc two-stroke engine with a double sprocket gear system that enabled the rider to pedal with the engine assisting, pedal without the engine assisting. Suzuki’s first mass produced car in 1955, the Suzulight, was a technical marvel. It included radical innovations for the time such as front-wheel drive, four-wheel suspension, and rack-and-pinion steering. In 1963, Suzuki brings its innovation motorcycle line-up to the U.S. A fast growing line enables them quickly to become a major player in the motorcycle market. Suzuki takes the lead in the all-terrain vehicle market in 1983 by introducing the first four-wheeled ATV. In 1985, Suzuki introduces its automotive line to the U.S, with the arrival of the Samurai. SJ 413 as an upgraded model of SJ410 and designed especially for US market.
Today, constantly going forward to meet changing lifestyles, the SUZUKI name is seen on a full range of motorcycles, automobiles, outboard motors and related products such as generators and motorized wheelchairs. The mark trademark is recognized by people throughout the world as a brand of quality products that offer both reliability and originality. More than 45,000 Suzuki people worldwide now create and distribute their work in over 120 countries. Worldwide Suzuki Automotive sales now reach over 2 million each year, surpassing the sales of many other renowned companies such as BMW, Mercedes and Saab. Additionally more than 2.5 million motorcycles and ATVs are sold each year. Sales of the Suzuki's outboard motors also continue to grow. SUZUKI stands behind this global symbol with a sure determination to maintain this confidence in the future as well, never stopping in creating quality products. 2.2 Product of Suzuki Samurai
The Suzuki Samurai was introduced to the U.S. market in November 1985. It appealed to younger consumers with its inexpensive and fun-oriented positioning. This marketing strategy was successful, since over 160,000 Samurais were sold in just three years.
The Suzuki Samurai was introduced as an inexpensive multi-purpose sport/utility vehicle. These vehicles were light pickup trucks with back seats, an extended roof, and part-time four-wheel drive intended for use on snow, ice, mud, or off-road driving. Sport/utility vehicles do not have to conform to the same safety regulations that apply to passenger cars. 2.3 Positioning
According to Douglas Mazza, he wanted a fresh approach for his company’s new products, he assigned advertising task to an agency which had no experience in developing campaign for automobiles. The advertising agency found out that the industry practice was to position vehicles according their physical characteristics. They also found out that most...
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