Benazir Bhutto Shaheed University Lyari November 25, 2015
Project of Marketing
PAK SUZUKI MOTORS
Assign By: Prepared By :
Mr Mudasir Hussein Sundus Shehzadi
(Course Instructor) ( MBA Evening 2nd Batch
Benazir Bhutto Shaheed University Lyari November 25, 2015
ACKNOWLEDGEMENT LETTER MR. Mudasir
Course Instructor
Subject: Letter of ACKNOWLEDGEMENT
Dear Sir,
First of all, I would like to express my deep gratitude to Almighty Allah, who enabled us to undertake such an
important task and to study about Pak Suzuki and the Strategies to operate in Pakistan Marketing. I also
wish to acknowledge the valuable guidance provided by our respected teacher Mr. Mudasir Hussein. He
always motivated and encouraged us in the completion of this report. I am thankful to Mrs. Kausar who is
the Production Manager in Pak Suzuki in Head Office Karachi and entire Pak Suzuki Management. They
appreciated the efforts of BBSUl. They have provided all the relevant data as well as other information
relating to the important independent variables.
The wonderful experience that I had, during the course and the report .I am thankful to and fortunate
enough to get constant encouragement, support and guidance from teacher which helped us in successfully
completing my work. I hope that you will continue to teach the students of with the same unmatched diligence
and attitude that was manifested during our course of study.
Regards,
Sundus Shehzadi
Dated: 25/11/2015
Benazir Bhutto Shaheed University Lyari November 25, 2015
Table of Contents
1Introduction
2History
3mission and vision
4Management structure
5Ethics and business practice
6Product portfolio
7BCG metric
8Anosof matrix
9 Swot analysis
10 Marketing research
11Consumer behavior
12Segmentation
13Target and Positioning
14Level of production
15product life cycle
16pricing strategy
17Place strategy
18Promotion strategy / advertising/sales
Benazir Bhutto Shaheed University Lyari November 25, 2015
19Conclusion
Introduction
Pak Suzuki Motors Ltd.
is a company assembling and distributing Suzuki Japan’s cars in Pakistan. Currently they
are one of the most successful motor companies in Pakistan. The firm was founded in 1983
as a joint venture between PAK and Suzuki, formalizing the arrangement by which Awami
Auto Ltd. had produced the SuzukiSS80 from 1982. Suzuki originally owned 25% of the
stock, and has gradually increased their holding; they now own 73.09%. The company now
assembles wide range of Suzuki vehicles and aims to produce 150,000 vehicles per year.
(2005 production was 100,000)
History
Company was incorporated as a public limited company in August 1983 and started
commercial operations in January 1984. The initial share holding of SMC was 12.5%
which was gradually increased to 73.09%.
Benazir Bhutto Shaheed University Lyari November 25, 2015
Pak Suzuki is pioneer in Automobile Business having the most modern and the largest
manufacturing facilities in Pakistan with an Annual production capacity of 150,000
vehicles. The vehicles produced include cars, small vans, Pickups, Cargo vans and
Motorcycle. Pak Suzuki holds more than 50% Market Share.
Following the aggressive policy of Indigenization, Suzuki vehicles have a healthy local
content up to 72%. This was made possible by strong support of our vendors.
Pak Suzuki has the largest Dealers network offering 3S (Sales, Service and Spare Parts)
facilities across Pakistan.
Caring for the Environment Pak Suzuki was pioneer in introduction of Factory fitted CNG
vehicles.
Pak Suzuki always endeavors to go aggressively for the sound development of the society
by increasing motorization, industrialization and creating job opportunities thus
improving the people’s living standards with the combined efforts of all the dealers,
vendors and Pak Suzuki employees.
Pak Suzuki is also exporting Suzuki Ravi pickup, Liana and components to Bangladesh
and Europe thus earning precious foreign exchange for the country.
Benazir Bhutto Shaheed University Lyari November 25, 2015
Our Vision
To be Excellent All Around
Our Mission
To provide automobile of international quality at competitive price.
These are Mission and Vision Statement of Pak Suzuki, and they always try to improve
skills of employees by imparting training and inculcating in them a sense of participation.
To achieve maximum indigenization and promote the automobile vending industry.
To contribute to Pakistani society through development of industry in general and
automobile industry in particular.
Benazir Bhutto Shaheed University Lyari November 25, 2015
Statement of Ethics and Business
Practices
Here is the code of ethics and Business Practice of Pak Suzuki Motors,
Pak Suzuki insists on integrity and honesty of its employees in doing business. Any
unfair or corrupt practices to solicit business is fundamentally inconsistent with
business codes of company
Pak Suzuki believes in compliance to regulatory obligation
Pak Suzuki believes in free and fair business practices and open competitive
markets. Developing any association with competitors to distort the pricing and
supply of products is contradictory to company’s business code of conduct.
Pak Suzuki believes in transparency in business transaction and they are to be
recorded accurately and fairly in books of accounts in accordance with standard
procedure.
Pak Suzuki expects its employees to act in company’s best interest while holding
confidential information. Company expects its employees neither to solicit internal
information from other nor to disclose company’s data or any other material
information to any un- authorized person/body.
Pak Suzuki believes in individual’s respects and growth. Its employment policies do
not discriminate on basis of race, religion, gender or any other factor
Benazir Bhutto Shaheed University Lyari November 25, 2015
Pak Suzuki does not believe in political affiliation.
Management Structure
Profiles of Directors
Hirofumi Nagao
Mr. Hirofumi Nagao graduated from Osaka University of Foreign Studies, Japan. He has been
associated with Suzuki Group since 1978. He has worked in different capacities with Suzuki Motor
Corporation, Japan and its overseas subsidiaries. As Managing Director of Pak Suzuki Motor Company
Limited from June 1994 to April 2000. As Joint Managing Director of Maruti Suzuki India from
October 2004 to December 2007. Presently, he has been working again with Pak Suzuki as Managing
Director since June 20, 2008.
Tetsuya Fujioka
Mr. Tetsuya Fujioka graduated from Hiroshima Institute of
Technology, Japan. He has been associated with Suzuki Group
since 1982. He has worked in different capacities with Suzuki
Motor Corporation, Japan and its overseas subsidiaries. He
worked as Chief engineer of company establishment and plant
construction for joint venture of General Motors and Suzuki in
CANADA from September 1988 to December 1991. He joined
Pak Suzuki Motor Company as Deputy Managing Director
on June 1, 2014.
Toshihiro Suzuki
Benazir Bhutto Shaheed University Lyari November 25, 2015
Mr. Toshihiro Suzuki has been associated with Suzuki Group since
1994. He has been assigned to serve as Representative Director and
Executive Vice President of Suzuki Motor Corporation since 2011.
In previous assignment, he was appointed as Director of Suzuki
Motor Corporation in 2003; as Director and Senior Managing
Officer of Suzuki Motor Corporation in 2006. He holds a Master's
degree.
Takashi Iwatsuki
Mr. Takashi Iwatsuki has been associated with Suzuki Group since
1980. He is currently working as Managing Officer of Suzuki
Motor Corporation since 2008 and as Executive General Manager
for Global Marketing Administration & Planning in Suzuki Motor
Corporation since 2014.
He has worked in different capacities with Suzuki Motor
Corporation and its overseas subsidiaries; as Managing
Director of Suzuki Italia from 1998 to 2002, of Suzuki
International Europe (Germany) from 2002 to 2006, as Chief
Regional Officer in North America from 2012 to 2013.
He holds a Bachelor's degree.
Kinji Saito
Mr. Kinji Saito graduated from Hiroshima University, Japan. He
has been associated with Suzuki Group since 1981. He has
worked in different capacities with Suzuki Motor Corporation,
Japan and its overseas subsidiaries. As Head of Rep. Office in
India from January 2000 to May 2002. As Director Marketing &
Sales of Maruti Suzuki India from May 2002 to March 2006. As
President of American Suzuki Motor Corporation from July
2008 to March 2011. He joined Pak Suzuki Motor Company
Limited as Non-Executive Director on October 9, 2013.
Kazuyuki Yamashita
Benazir Bhutto Shaheed University Lyari November 25, 2015
Mr. Kazuyuki Yamashita has been associated with Suzuki Group since 1987. He is currently working as Group
Manager of Asian Automobile Group 1 in Suzuki Motor Corporation. He worked as Director, Automotive Sales
of Suzuki Canada from 2001 to 2006 and as Managing Director of Suzuki Auto South Africa from 2007 to 2013.
He joined Pak Suzuki Motor Company Limited as Director on September 16, 2015.
Wazir Ali Khoja
Mr. Wazir Ali Khoja is a NIT nominee director on the Board of Pak Suzuki Motor Company Limited since
September 28, 2010. He holds over 35 years of professional experience in the fields of Banking, Finance and
Mutual Fund Industry. He held senior positions relating to Human Resource, Management, Marketing and
Finance while associated with Muslim Commercial Bank Ltd. (MCB) and served National Investment Trust Ltd.
(NIT) as Managing Director and Dy. Managing Director. He has also served as Director on the Boards of other
institutions which includes. Bank Al Habib Limited, Fauji Fertilizer Company Limited, Askari Bank Limited,
Habib Metropolitan Bank Limited, KSB Pumps Company Limited, Pakistan State Oil, Packages Limited, Shell
Gas LPG (Pakistan) Limited, Sui Northern Gas Pipeline Limited, Sui Southern Gas Company Limited and Sindh
Bank Limited.
1. Marketing Department
The marketing department of the firm comprises of highly qualified, dedicated and hard
working team, equipped with the latest marketing techniques.
2. Customer Relation (CR) Department
Benazir Bhutto Shaheed University Lyari November 25, 2015
Suzuki Pakistan, Customer relations department nationwide falls under top 5 positions of
national Suzuki Pakistan Dealerships Network. We believe in perpetual improvement in all
fields of services and facilities as per Suzuki Pakistan Standards applicable globally,
through regularly conducting Training & workshops to enhance knowledge and share
experience of our fellow National CR- member and globally available experience of Suzuki.
The Customer relation department is one of the most important departments which can
control all the activities perform for the retention and benefit the customers.
Suzuki Pakistan relations Ideals
Creating corporate trust based on integrity on integrity and fair handling of
Complaints.
Opening a larger window for customers.
Swift and sure handling of “Inquiries & Complaints”
Making the” Voice of the customers” the basis for corporate renewal.
Improving corporate image and better informing customers to support Sales and
Service activities.
1. Accounts Department
The accounts department is related to the accounts handling, the customer drafts of the for
the booking of cars to the Suzuki Pakistan and the employees’ salaries, records of the
transactions.The salaries are giving on their ranks like the top management salaries are
Benazir Bhutto Shaheed University Lyari November 25, 2015
sent to their accounts while the lower level employees are gives cash salaries on the spot
from the account department.
2. Sales Department
The Sales department is related to the sales of the Vehicles, The Sales department includes
Customer Services (CS), Vehicle Delivery Inspection Quality (VDIQ), Record
Maintenance, and Inquiries & Complaints Handling.
3. Customer Services (CS)
Customer service department is related to the external customer who is come to Suzuki
Pakistan for the purchasing and booking of the suzuki Vehicle of any variant. The
Customer service staff is well trained and sophisticated person because these are the people
who can play an important role in the sales of a firm.
4. Record Maintenance
This department deals with the data/information about any customer and this shows
comprehensive information about the customer data. Through this department the top
management can see the sales and the demand of the booking of the cars. The record is
maintained in this department is totally on the manual work, but the firm wants to made a
computerized system.
5. Vehicle Delivery Inspection Quality (VDIQ)
This department deals with the overall checking of the Vehicle at the time of arrival and
the selling to customer. At arrival stage, the vehicle that come from the Suzuki Pakistan the
Inspector check the vehicle and if any default occurs then it claim to the Suzuki Pakistan
At the Selling perspective the inspectors check the vehicle so that the customer are more
facilitate rather they have any problem faced after the purchasing.
Benazir Bhutto Shaheed University Lyari November 25, 2015
6. Inquiries & Complaints Handling
Another Department is also there that handles the Inquires and complaints of the
Customers. As Suzuki Pakistan Company follow that complaints must directly come to
them on their showrooms so customers can easily put their information directly to the
Company through the dealers.
7-Steps of Complaint Handling
o Receive the Complaint
o Look Listening and Learn (3Ls)
o Get the Facts
o Determine “Root Cause” and Responsibility
o Explain your decision then get Agreement
o Take Prompt ActionStep#7 Follow-up
7. Human Resource Management Department
Human resource management refers to the activities an organization carries out to use its
human resource effectively. These activities include determining the firm's human resource
strategy, staffing, performance evaluation, management development, compensation, and
labor relations. Suzuki Pakistan Motor also running department of HRM for hiring and
compensating the employees of the firm. HRM function to pay significant attention to
selecting individual’s whom not only has the skills required to perform particular jobs but
who also "fit" the prevailing culture of the firm
Product Portfolio
Following are the some Varieties of Pak Suzuki Motors.
Benazir Bhutto Shaheed University Lyari November 25, 2015
SWIFT (1300 cc)
Price: Rs. 1,049,000/-
The European inspired exterior gives Swift a distinctive
look. A unique stylish and design that turns a head where
you go. The spirited engine makes for exhilarating drive
and gives you ultimate freedom where the road takes
you.
Colors:
Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver,
Aqua Blue, Eminent Blue
LIANA (1300 & 1600 cc)
Price: Rs. 1,230,000/-
The Suzuki Liana available in 1300 cc manual transmission
and 1600cc automatic transmission takes you out of ordinary
and into the realm. Liana is entirely different car, its style
Dimension and comfort will inspire you to see every day as
an open-door to a new age.
Colors:
Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver,
Aqua Blue, Eminent Blue
Benazir Bhutto Shaheed University Lyari November 25, 2015
CULTUS (1000cc)
Price: Rs. 897,000/-
Cultus is the blend of space and craft. Its trim body
Conceals ample space &flexibility for both passenger
and storage. Cultus ensures everyone, exceptional
Value and quality.
Colors:
Pearl Red, Graphite Grey, Solid white, Indigo, Silky
Silver,
Aqua Blue, Eminent Blue
ALTO (1000cc)
Price: Rs. 662,000/-
Alto has a bright, roomy and comfortable cabin which
keeps body relax and strong and lighter body shell
resulting in smooth drive due to reduction of unpleasant
noise harshness and vibration. Its small turning radius
and compact body make parking a breeze.
Colors:
Olive Green, Pearl Red, Graphite Grey, Solid white,
Indigo, Silky Silver, Aqua Blue, Eminent Blue
Benazir Bhutto Shaheed University Lyari November 25, 2015
MEHRAN
Price: Rs. 514,000/-
Unrivalled in its class, Mehran is Pakistan’s largest
selling car. More smart features like head turning lamp,
matching front grill and a two spoke steering wheel
gives it the tidy look. Functional economy, peak
performance or unmatched fuel efficiency, Mehran
VXR is the leader.
Colors
Pearl Red, Graphite Grey, Solid white, Silky Silver
, Eminent Blue
APV
Price: Rs. 1,775,000/-APV 1500 cc (Imported)
The New APV gives you everything you ever wanted in your
vehicle. Spacious interior for comfort, tough engine to
carry large loads and plenty of room for passengers to
enjoy a comfortable day long ride.
Colors:
Pearl Red, Graphite Grey, Solid white,
Indigo, Silky Silver, Aqua Blue, Eminent Blue
Benazir Bhutto Shaheed University Lyari November 25, 2015
JIMNY
Price: Rs. 1,850,000/-JIMNY 4X4 JEEP 1300cc (Imported)
Steady, sturdy and smart, Suzuki Jimny with new wide
tread brings you the ultimate pleasure of a real4-wheel drive.
It has got all the sporting spirit to go along for adventurous
free souls.
Colors:
Solid white, Silky Silver
BOLAN VAN
Price:Rs. 609,000/-
The Suzuki Bolan Hi-roof gives you everything you ever
wanted in a van. Spacious interior for comfort, tough
engine to carry large loads and plenty of room for
passengers to enjoy a comfort-able day long ride. Air-
conditioned model (dual thrust) has been recently
introduced.
Colors:
Pearl Red, Solid white, Silky Silver
Benazir Bhutto Shaheed University Lyari November 25, 2015
RAVI PICKUP
Price:Rs. 489,000/-RAVI Pick Up 800cc
Suzuki Ravi is the veritable cargo vehicle with an
amazing capacity for load bearing and durability.
Undoubtedly, the unrivalled commercial vehicle in its
class, Ravi is the breadwinner for millions in Pakistan.
This light commercial vehicle referred to as the mini
revolution, replaced the animal-drawn vehicles in
Pakistan.
Colors:
Pearl Red, Solid white, Silky Silver
Wagon R
Price: VX =Rs. 849,000/- , VXR =Rs. 959,000/- VXL =Rs. 999,000/-
Here it is important to mention that the letter “R” in the
name of the vehicle stands for “Recreation”. Being true
to its name, it does provide the travelers with marvelous
recreation and enjoyment.
Colors:
Pearl Red, Silky Silver, Graphite Grey, Sand Beige,
Solid White,
Benazir Bhutto Shaheed University Lyari November 25, 2015
Kizashi
Price: Rs. 5000,000/-
“Kizashi” is a Japanese word meaning “a sign of
great things to come”. And the new Kizashi more
than lives up to its name by embodying Suzuki’s
forward-looking approach to car making and
simultaneously hinting at what’s still to come from
one of the most innovative carmakers in the
world.Colors:
Pearl Red, Silky Silver, Graphite Grey, Sand Beige
BCG Matrix
Benazir Bhutto Shaheed University Lyari November 25, 2015
The Boston Consulting group's product portfolio matrix (BCG) is designed to help with
long-term strategic planning, to help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest, to discontinue or develop
products.
Star:
1- SWIFT is the star, for Pak Suzuki Motors Ltd. Because it has a high market share and high growth rate
Cash Cow:1- MEHRAN2- CULTUS3- RAVI4- BOLEN VAN
These are cash cows, for Pak Suzuki Motors Ltd.Because these hasvea low growth rate but high market share.
Benazir Bhutto Shaheed University Lyari November 25, 2015
Question Mark:
1- KIZASHiI
2- WAGON RThese are question mark, for Pak Suzuki Motors Ltd. Because these have high growth rate but low market share for which the company is conscious.
Dog:
1- APV
2- LAINA
3- JIMNY
4- ALTO
5- CARGOVAN
These are dogs, for Pak Suzuki Motors Ltd.Because these have low market share and low
growth rate.
Anosoff Matrix
My favorite definition is:
Benazir Bhutto Shaheed University Lyari November 25, 2015
"The Ansoff growth matrix assists organizations to map strategic product market growth"
The Ansoff Matrix also known as the Ansoff product and market growth matrix is a
marketing planning tool which usually aids a business in determining its product and
market growth. This is usually determined by focusing on whether the products are
new or existing and whether the market is new or existing.
Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend
on whether it Markets new or existing products in new or existing markets. The output
from the Ansoff product/market matrix is a series of suggested growth strategies which set
the direction for the business strategy. These are described below:
Market Penetration
Market penetration is the
name given to a growth strategy where the business focuses on selling existing products into
existing markets. Market penetration seeks to achieve four main objectives:
Benazir Bhutto Shaheed University Lyari November 25, 2015
Maintain or increase the market share of current products.
This can be achieved by a combination of competitive pricing strategies, advertising,
sales promotion and perhaps more resources dedicated to personal selling
Secure dominance of growth markets
Restructure a mature market by driving out competitors; this would require a much
more aggressive promotional campaign, supported by a pricing strategy designed to
make the market unattractive for competitors
Increase usage by existing customers
for example by introducing loyalty schemes Pak Suzuki is of the strategy to penetrate
more deeply in the market which will make it to derive the competition by using
promotions, aggressive advertisements, sponsoring events etc.
Market Development
Market development is the name given to a growth strategy where the business seeks to sell
its existing products into new markets. There are many possible ways of approaching this
strategy, like new geographical markets; for example exporting the product to a new
country Pak Suzuki started to export its Ravi to Nepal and Bangladesh in 1997. This was
completely a new market for our existing product which proved to be a good success.
Market development is a more risky strategy than market penetration because of the
targeting of new markets but our company enter market after complete analysis of Pros
and cons of introducing product in that country.
Benazir Bhutto Shaheed University Lyari November 25, 2015
Product Development
Product development is the name given to a growth strategy where a business aims to
introduce new products into existing markets. This strategy may require the development
of new competencies and requires the business to develop modified products which can
appeal to existing markets. Our new product lies in this category where we are offering a
Suzuki Cultus to our existing customers keeping the
Customer’s changing behavior in mind. We have offered a product which is quite capable
of being differentiated and has been designed and equipped with latest technology. Our
Cultus will be a success and it is assumed that it will generate handsome returns.
Diversification
Diversification is the name given to the growth strategy where a business markets new
products in new markets. This is an inherently more risk strategy because the business is
moving into markets in which it has little or no experience. Pak Suzuki is not involved in
related diversification.
SWOT ANALYSIS
Strength:
Highest Market Share
Low Price Vehicles
Resale of Local Assembled Cars
Benazir Bhutto Shaheed University Lyari November 25, 2015
Large Distribution Channel
Rising per capita income with changing demographic distribution
Highly Innovative and deep product line
Highly maintained supply chain
Well Managed and highly competitive staff
Well defined and beurocratic organizational structure
Complete understand between Distributors
Easy available of spare parts.
Weakness:
Scarcity of raw material
Bargaining power of supplier is low
Lack of coordination and linkage with Government/semi government supporting bodies
Less Technical Training Institute
Less distribution channels in sub urban
Opportunities:
Increasing Demand for Cars
Efficient engine
Large Market size to operate
Global spare part market
Space saving Small size CNG cylinders
Threats:
Local Competitors like Toyota, and Honda
Foreign Investment and setup production facilities
Smuggling of Auto Parts
Inflation rate
Benazir Bhutto Shaheed University Lyari November 25, 2015
Heavy Taxes
Competition from import cars
Increase of Fuel Prices
PEST Analysis
Uncontrollable environment are those external factors which can prohibit us or can create hurdles between us and our business. It is also called pest analyses which are as follow:
Political Environment
Pakistan has to face lots of ups and down since its independence. So many governments have been broken down by military authority and most of the time marsh law applied on Pakistan. In this scenario no entrepreneur was willing to invest in Pakistan except few. Due to this market environment wasn’t so good in Pakistan. Anyhow Pakistani government never been trustworthy for any investor.
Legal Environment
As all countries, Pakistan also has some legislation about each sector. But like developing countries it is hardly being imposed by authorities. Only due to corruption government encourage smuggling and black marketing. When anyone supported by government or give more commission to Govt. get inside in the market and they have very soft behavior by government for any legal action. Such unethical activities destroy all law and legislation.
Economic Environment
Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes and external ongoing conflict with India.However, IMF
Benazir Bhutto Shaheed University Lyari November 25, 2015
approved the government policies, encourages by different foreign assistance and renewed access to global market since 2001.By following these policies government succeed to reverse the situation of economy during last five years.
Socio-Culture Environment
Pakistan has strong culture background and it has been follow in some particular region of Pakistan strictly. But with the passage of time it is going to change. Thoughts of people, choices, taste and style has been totally changed. If we talk about the transportation source in Pakistan, People use buses, pickups etc for journey. They also have their own as well e.g. cycle, bikes etc and lots of people are pedestrian. But now the people who haven’t any source of transportation they also want something for their convenience because they wants to save their time as much as they can. People want to use such vehicle which looks beautiful and also affordable.
Technological Environment
Technological factor also very important and we haven’t control on it. Technology is grooming with the passage of time. People also want that the product that they have is full of technology. We never control on technology for example you launched the product last year and your sale volume on that time is very high but after sometime due to latest invention a lots of substitute exist in market which affect on your business so you can’t hold on it.
Market Research
Suzuki Cultus
Price: Rs. 897,000/-
Benazir Bhutto Shaheed University Lyari November 25, 2015
Colors:
Pearl Red, Graphite Grey, Solid white, Indigo, Silky Silver,
Aqua Blue, Eminent Blue
Suzuki is famous for its name as family car this car is famous for its high tech performance.
The design of this car is very simple yet so brilliant and allows you to behave more and
more brilliant performance and you will be having a great ride. The market that Suzuki
has built is commendable, and has sold 50 million units all over the globe. This is a most
effective Japanese technology that has built is accepted worldwide. This car is having the
great luggage room and having the enough space to accommodate your dear passenger and
family. This car is having leg room, and can easily cover the long distance. Suzuki Cultus is
very tinted head lights and having the bumpers that are very much elevated the looks that
a car carry is very obvious and the looks are truly captivating. The car having four
cylinders engine that allows the displacement of 997 cc making it much more efficient
against the price that you pay. After include Euro II technology in latest model Suzuki
Cultus there is many difference in fuel consumption.
The stability really matters in any car this car is light in weight as the wheels are made up
of alloy, allowing you to have great torque facility. The transmission system is manual
having the five levels of speed and the gear system is very effective. The new nice shades of
Cultus are Metallic Silver, Pearl white, Black, Red ribbon, Icy Blue, Graphite Gray, Indica
and many more at least six shades of it are available.
Suzuki Cultus EURO II Specifications:
Engine: 997 cc
Transmission: Manual
Fuel Type: Petrol
Benazir Bhutto Shaheed University Lyari November 25, 2015
Fuel system: EURO II
Fuel Tank capacity (liter): 40 L
Overall Length (mm): 3845
Overall Width (mm): 1590
Overall Height (mm): 1380
Kerb Weight (kg): 650
Mileage Overall (km/ liter): 22km/1L
Seating Capacity (person): 5
No of Doors: 4
Wheel Type: Steel
Wheel Size: 13 inch
Front Brakes: Disc
Rear Brakes: Drum
Suzuki Cultus EURO II Features:
Air Conditioner: Yes
AM/FM Radio: Yes
Cassette Player: Yes
Remote Boot/ Fuel-Lid: Yes CD Player: Yes
Cup Holders: Yes Alloy Wheels: N/A
Folding Rear-Seat: Yes Tubeless Tyres: Yes
Power Door Locks: N/A Central Locking: N/A
Customer Behavior
Consumer Research
Benazir Bhutto Shaheed University Lyari November 25, 2015
Perception of people about SuzukiCultus:
People think the product should have excellent fuel consumption and a good resale value.
Easily availability of spare parts everywhere even in rural areas.
The quality of product is made according to Pakistan roads and infrastructure.
Product line extension with the very low difference of price.
3S (Sales, Service and spare Parts) at your door step.
Brand Loyalty.
People want such vehicle which doesn’t effect on their prestige and also within the range of them.
So after this research we come to know that Suzuki is best choice for the customer. It is safer on the
road less fuel consumption and Environment friendly product. Because of these features it is also
economical.
Customer market and customer buying behavior can be categories:
Demographic Factor
Life Style
Usage Pattern and Behavior
Preference of Specific end Benefit
Demographic Factor:
Target market of Pak Suzuki according to Age, Gender and Income:
Age: 20 year to upwards
Benazir Bhutto Shaheed University Lyari November 25, 2015
Gender : Male and Female
Income: starting from Rs.20000
Life Style:
Customer Life style of Pak Suzuki in terms of AIO can be described as
Activities: Early Professional, Executives, House Hold, and Business Purpose
Interest: Personal Use, Luxury
Opinion: Sensitive, Conscious, Responsible and Social
Usage Pattern and Behavior:
Mostly People use such vehicle for their convenience e.g. go for job and for family use, for Business
Purpose.
Preference of Specific end Benefit:
Customers who use such vehicle are sensitive, conscious and responsible people. They tried their
level best to save time as much as possible so they want something which is quality wise good and
also affordable
Segmentation
Dividing a market into distinct groups of buyers on the basis of need, characteristics, or
behavior who might require separate product or marketing mix. The process of defining
Benazir Bhutto Shaheed University Lyari November 25, 2015
and subdividing a large homogenous market into clearly identifiable segments having
similar needs, wants, or demand characteristics.
Geographic segmentation
CIty Location Population Growth rate
Karachi Sindh 13,053,339 2.86
Lahore Punjab 7,129,609 2.71
Faisalabad Punjab 2,880,675 3.02
Rawalpindi Punjab 1,991,656 2.90
Multan Punjab 1,606,481 2.46
Hyderabad Sindh 1,578,367 2.66
Gujranwala Punjab 1,569,090 2.74
Peshawar NWFP 1,439,205 3.36
Quetta Baluchistan 896,090 4.03
Islamabad Capital 689,249 2.25
Demographic segmentation
Benazir Bhutto Shaheed University Lyari November 25, 2015
Psychographic segmentation
Age Group
0-17 years 41 %
18-20 years 28%
21-45 years 16%
46-59 years 9%
60 above 6%
Family Size
1 or 2 person 6%
3 – 5 person 34%
6 or 9 person 31%
8 and above 29%
Annual Income
Under 10 Lac 37%
10 to 20 Lac 24%
21 to 30 Lac 18%
31 to 40 Lac 8%
40 to 50 Lac 7%
50 Above 6%
Social class Upper middle and Lower upper
Life Style Achievers, Passionate
Personality Authorization, Ambitious
Benazir Bhutto Shaheed University Lyari November 25, 2015
Behavioral segmentation
Target and positioning
Monthly income 20 Thousand.
Purchased by Managers of the companies.
Executive Car: Drive in Executive way.
Levels of Product
Benefit sought Speed and Connivance
User status New Users, Potential Users
Usage rate Medium User
Attitude Positive, Indifferent and enthusiastic
Age Group
Options Percentages
18-30 years 28%
31-45 years 16%
Family Size
Options Percentages
1 or 2 person 6%
3 – 5 person 34%
Benazir Bhutto Shaheed University Lyari November 25, 2015
Level of Production Suzuki Cultus is given below.
Core Customer Value
This is the most basic Level when the company thinks what costumers really buy as
customers want Suzuki Cultus.
Actual Product
This is the second level of production when company think about the features, brand,
design and Quality.
Features
Air Conditioner, AM/FM Radio:
Cassette Player: Remote Boot/ Fuel-Lid:
Cup Holders Power Door Locks:
Brand name
Cultus EURO II
Design
Hot sell car parts, Auto Parts
Quality Level
High
Augmented Product
Last level of production is augmented production in which company give warranty, Delivery and credit product support and warranty to the costumers for their satisfactions.
Suzuki Cultus is giving 3 years warranty after sale credit and delivery on fewer amounts to their customers.
Benazir Bhutto Shaheed University Lyari November 25, 2015
Product Life Cycle
A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
Cultus has highest growth rate in automobile sector in Pakistan. Pak Suzuki always changes the different parts of cultus either exterior or interior whenever it comes to its maturity level Cultus attracts the people who have a salary package between20,000to30,000 p e r m o n t h . T h e y o u n g s t e r s a l s o p r e f e r t h e C u l t u s b e c a u s e o f i t s s i z e a n d economical price. Small business people also prefer Cultus because of its low maintenance cost. So in Life cycle Cultus is placed at maturity level.
Pricing Strategy
Benazir Bhutto Shaheed University Lyari November 25, 2015
All prices of Suzuki vehicles are decided by the Head Office (Pak Suzuki Motor co. Ltd.). All dealers in Pakistan are bound to deal in the given price. Dealers can neither increase nor decrease and set any pricing strategy on its own. The following is the price list of Suzuki vehicles. The prices are quoted in Pakistani currency are inclusive of Taxes and Duties Ex-Bin Qasim plant based on Current rates. However if new Taxes/Duties are levied and rates of existing Taxes/Duties structure are revised by the Government of Pakistan, the impact of such levies/revisions would be born by the purchaser and the prices prevailing at the time of delivery will apply.
Place Strategy
Place strategy plays a fundamental role in the marketing mix of a product or service. Place strategy outlines how and where a company will place its products and services in an attempt to gain market share and consumer purchases. A practice involving the application of branding and sales strategies to different regions, cities, states or countries. The sales or distribution channels of Pak Suzuki cultus shown in the following Diagram.
Brand Personality of Cultus
“For people who want
competency and sophistication
through driving experience, so
cultus is a right choice for
them.”
“Drive the Exclusive way”
Promotion
strategy
Corporate image
To provide the top quality product to the satisfaction and requirement of customer.
Benazir Bhutto Shaheed University Lyari November 25, 2015
Conduct operations in compliance with applicable, environmental, occupational health and safety law and regulation. Where existing laws and regulation are not required.
Brand Management
They thrive on technology and have a niche for themselves worldwide they keep up bringing new innovation in their armory to attack the costumers and to capture the market. For Promotion of Pakistan Suzuki automobiles, we will use different media T.V,Radio, Test Drive, Sponsorship, News paper etc. We will aware our target audience through above sources
Conclusion
After completing this project we conclude that Suzuki enjoyed the 67 per cent of the 800-2000 cc passenger car market in Pakistan. The Suzuki is also aware of the emerging competition in the small car segment and has drawn up a well planned strategy to maintain its market lead by bringing new models this year. SUZUKI has strong position in market and also has strong and good customer relationship. Due to the low price level the huge incentive for the customers but competition is also get still.
RECOMMENDATION:
Suzuki Motors should expand European and Asian market, concentric diversification, bring in recreational vehicles, acquires or develop new product that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product line.