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... ck up truck, subcompact cars and sports utility vehicle. That ensures higher consumer acceptance by offering a car for various needs. Customer satisfaction: 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 by clearly defining the image of the vehicle. Higher Profitability: As un positioning will target a larger customer segments, it will definitely increase sales and thus add larger profit to the company's income statement also. Thus this strategy is perfectly compatible with company's goal that is to establish ASMC as a major car company in the US.
Threat to Competitors: Un positioning will offer a car with different purpose. Also it will serve the purpose of versatile transportation. The broader appeal of the car can reduce its competitors's ales and thus can guarantee sales more than 6000 units in the first six months. So, in the mean time, competitors's ales might deteriorate.
DISADVANTAGES OF UNPOSITIONING: Losing Customers: Suzuki Samurai already had its brand appeal as a rugged utility vehicle in Canada. The stylish looking little jeep along with its stylish looks made the car popular as the utility jeep to handle driving in rain, snow and off-road. The jeep is popular for going to fishing, camping and skiing. So, if other consumers start to use it as subcompact car or pick up truck, it will lose its brand image. It might also happen that the present consumers might reject the jeep with different appeals. Thus losing customers will be a greater loss.
Loosing Potential Market: The other possibility is if Samurai SJ 413 could try to be the nice in the "Tough-Little-Cheap Jeep" segment they might land up as a market leader in that particular segment. So, the company needs to sacrifice the possibility of being number one in the niche market by accepting the "Un positioning" strategy. Trouble for the Sales People: Due to un positioning strategy sales people will suffer for explaining the various use of the car and it will be difficult for them to emphasize upon one particular need to the buyers. If two buyers with different perceptions contact one salesman at a time, the salesman need to be expert enough to sell two cars for two different reasons at one single time. Increased Confusion: Confusion will arise among consumers if Suzuki avoid positioning. People usually use vehicles that they feel as the car for their own convenient.
So, when they see that the car is also meant for different segment of people, obviously they will be confused. Thus sales might dropped out. The advertising agency wanted the car to be positioned as "antidote to traditional transportation" and thought an "alternative to small-car-boredom." Therefore, un positioning could therefore attract buyers from all three-vehicle segments. But, in the long run the company needs to highlight a more specific need to motivate the consumers to purchase Samurai SJ 413.
RECOMMENDED STRATEGY: In recommending the strategies for Suzuki Samurai in USA, we are going to suggest some comments about some of the strategic issues. These are: Market Targeting Positioning Relationship Distribution Pricing Promotion and Advertising MARKET TARGETING: Suzuki wants its Samurai to sell extensively in the US market. So to target market it should follow extensive targeting strategy. The car should not be for any specific Suzuki's Marketing Strategy in the U. S. segment but for all who needs a car.
It will maximize the sales of the car and thus will increase revenue and profit. Moreover, it is likely to build customer awareness and eagerness to buy a Samurai in every potential car buyer. There 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). POSITIONING: Three alternatives, including sport utility vehicle, compact pick-up truck, and a subcompact car, are mentioned earlier to position Samurai among the clients which. But research shows that customers perceive the car in different ways.
To achieve higher market share and sales it will be unwise for Suzuki to impose any perception on consumers mind. And that is why it should avoid positioning the Samurai as a specific type of vehicle so as not to exclude large groups of potential buyers. From the research the agency found out that a young or young-at-heart person is a prospect for Samurai. Any sport utility buyer can be attracted by just looking at the vehicle, it can be perceived as a alternative to dull automobiles for small-car buyers and small truck purchaser were buying them to use as cars as the we less expensive many and more versatile than import subcompact cars. Although there are disadvantages regarding un positioning the car but the 80 - 20 rule is more applicable here. As the vehicle has every characteristic to attract every possible market segment, adoption from ay of the segments would get the job done.
RELATIONSHIP: Relationship strategy should also be planned among the organizations, dealers and customers. In the modern world of business it is very hard for a single organization to run with the technology, financial constraint, access to market etc alone. So, Suzuki should take measures to build strategic alliance with potential companies in US. Relationship among dealers and customers are also important. Customer satisfaction and after sales servicing is two major issues that can play an effective role in positive attitude and perception towards Samurai.
Brand image: As Samurai is a new product in the market it should build a strong brand image among the potential customers. The matter to consider is Suzuki, the maker of Samurai, is not new in the market and already it has a place in customers mind. The strategy that Suzuki should take is to make efficient use of that identity to make the new brand stable and reliable. DISTRIBUTION: Suzuki can go for vertical marketing system (VMS) for distribution. Vms dominate the retailing sector. A primary feature of VMS is the management of the distribution of the distribution channel by one organization.
The firm that is the channel manager directs programming and coordination of channel activities and functions. Operating rules and guidelines indicate the functions of responsibilities of each participant. Management assistance and services are supplied to the participating organizations by the firm that is the channel leader. ASMC can also practice competitive channel strategy simultaneously to increase sales of Samurai. Addition intensive may be offered to sell certain numbers of Samurai to each dealer in this regard. PRICING: As Suzuki already fixes price of the Samurai, there is very low option to offer any pricing strategy for this car.
But still price can be used in various ways n the marketing program positioning strategy. These are: 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. It may be used to position the brand as a high-quality product at a less price. It may be used as an instrument of competition. In the US market all of the similar cars are selling at $ 8000 - $ 13000 while Samurai is priced at $ 5995. So, undoubtedly it is a competitive factor.
It may be used to improve financial performance of the company also. And productivity, expansion, investment etc. mostly depends on financial performance. The low price of the Samurai can be used as penetration pricing strategy to capture great 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. At the same time Samurai can enjoy the advantages of one-price strategy also that includes administrative convenience, easier pricing process etc.
PROMOTION AND ADVERTISING: The advertising and promotion budget of ASMC for the first six month is $ 2. 5 million. Typically an automobile manufacturer spent 77 % of its advertising dollars on television ads, 10 % on print ads, and 3 % on highway billboards. The print ads were to run in both general-interest magazines and enthusiast magazines. To establish Samurai as a car of customers' perception a comprehensive / integrated promotion strategy is badly required. The objective of this strategy for Samurai should be as follows: Creating or increasing buyer awareness of the car Influencing buyer attitude toward the company Suzuki and the brand Samurai. Achieving increases in sales and market share for specific customer or prospect target.
Generating repeat purchase of the car. Encouraging trial of the car. Attracting new customers with existing Suzuki clients. Encouraging long term relationship. Suzuki should follow the IMC (integrated marketing communication) strategies to integrate the promotion tools because: IMC programs are comprehensive.
Advertising, personal selling, publicity, direct marketing, sales promotion and other forms are all considered in the planning of an IMC. IMC programs are unified. The messages delivered by all media are the same or supportive of a unified theme. IMC programs are targeted. The public relation programs, advertising programs, and dealer / distributor programs all have the same or related target markets. IMC programs coordinated execution of all the communication components of the organization.
Suzuki may also apply sales promotion activities to the following groups to achieve its goal of selling designated number of Samurai. These are: Promotion to consumer targets: consumers may be offered free servicing for certain time period, or some gifts with the purchase. Promotion to industrial / sports team target: Discounts may be given for big orders from such organizations. Promotion to channel members: Intensive or bonus may be announced to the channel members for selling certain number of vehicles.
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Research essay sample on Analysis Of Marketing Strategy Suzuki Motor Company Ltd
