Suzuki Positioning Strategy

Topics: Pickup truck, Truck, Sport utility vehicle Pages: 3 (1155 words) Published: April 5, 2013
Suzuki Case Study

Q1- If you were Perlman which segment would you choose to "position" Suzuki Samurai and state at least 2 reasons for your answer.

Suzuki Samurai

In 1985, automobile company Suzuki was entering the American automobile market with the Suzuki Samurai, a lightweight off-road four-wheel drive vehicle. Leanord Pearstein, CEO of a competing advertising agency was given this task to make an advertisement campaign for Suzuki Samurai, although the company had no prior experience in automobile sector but Maaza (the Country Manager for Suzuki) was looking for new idea from a fresh mind and research. A dilemma that the American Suzuki Motor Corporation was faced with was exactly how to position the Samurai in the American market. There were several options for them to do this, each of which had some advantages and disadvantages. The first option was to position the Samurai as a sport utility vehicle. The Samurai already shapes like a mini jeep and already had four-wheel drive capabilities. Standing out from all other SUVs, the Samurai was smaller, lighter, and less expensive; suggested retail was about half the price of the average other brands. Pearstein preferred to portray the Samurai as a "tough little cheap Jeep." Those who had already purchased the automobile had also considered buying a Jeep or other sport utility vehicles. In 1985, the sport utility vehicle market was very small. Less than 3% of automobile sales in the United States in 1985 came from SUV sales. Douglas Mazza, who headed the Samurai operation in the US, had a goal to sell 30,000 units within two years, which would exceed all SUV sales in 1984. The second option was to position the Samurai as a compact pickup truck. The market share was two and a half times the compact SUV market. This would make it easier for Suzuki to enter is they positioned the vehicle in this way. In the pickup truck market itself, Japanese trucks sold very well; they accounted for 54% of total...
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