Company History & Background
SUZUKI MOTOR CORPRORATION
Historical timeline:
§ 1920 – Reorganized, incorporated, and capitalized at 500,000 yen as Suzuki Loom Manufacturing Co. with Michio Suzuki as president.
§ 1954 – Company name changed to Suzuki Motor Co.,Ltd.
§ 1955 – Lightweight car Suzuki Suzulight (360 cc, 2-stroke) front wheel drive, marketed helping to usher in Japan's light-weight car age.
§ 1961 – Suzuki Loom Manufacturing Co. established by separating the loom machine division from the motor works and lightweight truck 'Suzulight Carry' marketed.
§ 1963 – U.S. Suzuki Motor Corp., a direct sales subsidiary, opened in Los Angeles
§ 1965 – 'D55'(5.5 hp, 2-stroke) outboard motor marketed and makes early inroads and Fronte 800 marketed.
§ 1967 – Thai Suzuki Motor Co., Ltd. established as a local assembly plant.
§ 1971 – GT750 motorcycle marketed.
§ 1974 – P.T. Suzuki Indonesia Manufacturing established in Jakarta, Indonesia, entry into medical equipment field by marketing the Suzuki Motor Chair Z600 motorized wheelchair, expansion into the housing field initiated with Suzuki Home marketing two models of prefab 'Mini-House' and three types of storage sheds.
§ 1975 – Antonio Suzuki Corp., a joint venture for knockdown production and sales, established in Manila, the Philippines
§ 1980 – Suzuki Australia Pty. Ltd. established in Sydney , Australia
§ 1982 – 4X4 production began at PAK Suzuki Motor Co., Ltd. in Karachi, Pakistan and won maker championship for 7th consecutive year at the World Road Race Grand Prix 500.
§ 1983 – Cultus/Swift 1.0-liter passenger car marketed and 4X4 production started at Maruti Udyog Ltd. in Gurgaon, Haryana, India.
§ 1984 – Suzuki New Zealand Ltd. established in Wanganui, New Zealand and began export of Chevrolet Sprint to the United States Germany .
§ 1985 – SUZUKI of AMERICA AUTOMOTIVE CORP. established with the introduction of the Samurai, and the GSX-R750 motorcycle with an oil-cooled engine marketed and scooter production started at Avello S.A. of Spain Spain .
§ 1986 – American Suzuki Motor Corp. is formed merging U.S. Suzuki Motor Corp and Suzuki of America Automotive Corp.
§ 1987 – Cultus/Swift production began in Colombia
§ 1989 – CAMI Automotive Inc. established and began operation in Ontario, Canada . Swift GT/GLX and Sidekick sales begin in the United States
§ 1990 – Corporate name changed to Suzuki Motor Corporation.
§ 1991 – Car production started in Korea through technical ties with Daewoo Shipbuilding & Heavy Machinery Ltd and Cappuccino 2-seater marketed.
§ 1993 – Passenger car production/sales began at Suzuki Egypt S.A.E., opening ceremony for new car production plant held at Magyar Suzuki Corp. in Esztergom, Hungary and Wagon Rpassenger car marketed.
§ 1996 – Start of production in Vietnam
§ 1997 – Achieved 10 million cumulative automobile sales for overseas market and 4-strokeoutboard motors win the Innovation Award at The International Marine Trade Exhibit and Conference (IMTEC) in Chicago.
§ 1998 – Suzuki and General Motors form strategic alliance and Chongqing Chang'an SuzukiAutomobile Co., Ltd. received official approval from the Chinese government for production of passenger cars.
§ 1999 – Aggregate motorcycle production reaches 40 million units and Jiangxi Changhe Suzuki Automobile Co., Ltd. receives official approval from the Chinese government for production of commercial vehicles.
§ 2000 – The company commemorates the 80th anniversary, aggregate car production at Kosai Plant reaches 10 million units and Suzuki production starts at General Motors de Argentina S.A.
§ 2001 – Aggregate Launch of Suzuki Baleno/Aerio. worldwide sales of Jimny/SJ reaches 2 million units, production of Alto reaches 4 million units and Suzuki achieves "Zero-Level" target of landfill waste
§ 2002 – Achieved 30 million cumulative automobile sales for worldwide market and America
§ 2003 – Suzuki is No.1 in Kei car sales for the 30th consecutive year and Twin, the first hybrid Kei car in Japan
§ 2006 – New XL7 is marketed particularly to the North American market; and GM divested, selling 92.36 million shares and reducing their stake to 3%.
§ 2008 – GM divested its remaining 3% stake in Suzuki.
§ 2009 – Suzuki introduces its first production pickup truck called the Equator. Volkswagen AG and Suzuki reach a common understanding to establish a close long-term strategic partnership.
§ 2010 – Volkswagen AG completed the purchase of 19.9% of Suzuki's outstanding shares.
In 4 July 2011 Suzuki Motor chairman will come to Indonesia to announce Indonesia
Company profile
Suzuki Motor Corporation is a leading Japanese carmaker and the world's #3 motorcycle manufacturer behind Honda and Yamaha. Suzuki's passenger car models include the Alto, Grand Vitara, Swift, Splash, and SX4. Its motorcycle products include cruiser, motocross, off road, scooter, street, and touring models, as well as ATVs. Suzuki Motor's non-vehicle products include outboard motors for boats and motorized wheelchairs. The company, via a global network, serves more than 190 countries. It builds its line-up on its own and through numerous subsidiaries and joint ventures overseas. Japan US
Suzuki Product Line
Pakistani Suzuki Motor Company Limited
Following the terms of the Joint Venture Agreement between Suzuki Motor Corporation of Japan (SMC) and Pakistan Automobile Corporation (PACO), Pak Suzuki Motor Company Limited (PSMCL) was incorporated as a public limited company in August 1983.
The new company assumed the assets including production facilities of Awami Autos Limited. PSMCL started commercial operations in January 1984 with the primary objective of passenger cars, pickups, vans and 4x4 vehicles.
The groundbreaking ceremony of the company’s green field automobile plant at Bin Qasim was performed by the then Prime Minister of Pakistan
On completion of first phase of this plant in early 1990, in-house assembly Suzuki engines started. The new plant was completed in 1992, and Suzuki production was transferred to new plant – and three-box 1,300 cc Margalla car was also added to its range of production.
In September 1992 the company was privatized and placed directly under the Japanese Management. At the time of privatization SMC increased its equity from 25% to 40% subsequently; SMC progressively increased its equity to 73.09% by 31 December 2001.
The Bin Qasim Plant further expanded its production capacity to 50,000 vehicles per year in July 1994 and 300,000 vehicles had been manufactured at this plant by December 2003.
Paksuzuki currently exports its cars to countries like Bangladesh , Ghana , Nigeria & Maldives
Our Vision
“To be excellent all round”
Our Mission
To provide automobile of international quality at competitive price.
To improve skills of employees by imparting training and inculcating a sense of participation.
To achieve maximum indigenization and promote the automobile vending industry.
To contribute to Pakistan society through development of industry in general and automobile industry in Pakistan
Current Marketing Mix
Baleno
Product:
LOGIC BEHIND THE NAME BALENO
Baleno is an Acronym for Life In A New Age.
and in Japanese in means “A tree which grows by itself” referring to growth in Luxury car category from Margalla to Baleno to Baleno)
INTRODUCTION OF SUZUKI BALENO IN PAKISTAN
In the year 2006, Baleno was finally launched in Pakistan Pakistan Sedan
SPECIFICATIONS OF BALENO IN PAKISTAN
Design
Versions
In Pakistan Baleno was available in 3 versions:
- Baleno Rxi 1.3 L with Optional factory fitted CNG
- Baleno Lxi 1.3L with optional factory fitted CNG with ABS
- Baleno Eminent with 1.6L Automatic
Nowadays the company is making only one version that is Baleno RXI Mt 1.3 and Baleno RXI MT CNG.
Specifications
Keyless entry with answerback and immobilizer:
To help put Baleno owners' minds at ease, all versions have keyless entry with answerback function and an immobilizer system: the ignition key is encoded for exclusive use with the immobilizer only; therefore, it is impossible to start the engine without the original encoded ignition key.
COLORS
WhiteSilky Silver, Graphite Grey, Eminent Blue, Pearl Red, Bluish Black
Price:
New Suzuki Baleno 1.3L RXI MT latest price in Pakistan Rs. 7,00000
New Suzuki Baleno 1.3L RXI MT CNG latest price inPakistan
New Suzuki Baleno 1.3L RXI MT CNG latest price in
Place
The main Pak Suzuki Company is located at DSU 13,Bin Qasim ,Karachi.It has the total area of 65 acres.
The distribution of baleno is done by 2 different channels.
1. Authorized 3s Dealer:
Authorized dealers provide three types of services all over Pakistan
· Sales
· Services
· Spare Parts
2. Non-Authorized Dealers:
Many non –authorized dealers also contain baleno due to profit margin that they get from ON price of Baleno.
The distribution channel of Pak Suzuki shown in above diagram.
Promotion
THE LAUNCH
Suzuki Baleno launched in 2006 with a very product based hi-tech approach. The print advertisements were designed classily. However, the association of the brand with Suzuki and the fact that the shape wasn’t as stylish as the campaign, the car didn’t achieve good sales. At that moment Baleno was not offering a CNG version.
Another mistake they made was that the print ad was not in correlation with the TV Commercial. At that point Suzuki did not find it necessary to invest in a commercial; therefore, they picked the existing Japanese commercial of Baleno, got the jingle translated in English and ran. Overall, the campaign did not do any wonders for the brand.
Promotion Initiatives:
100,000 unit’s sales celebration December 2006
Objective
· Strongly appeal the record sales achievement .
Product Advertisement
. Magazie Advertisement
. billboards
. TV adds
SWOT Analysis
SUZUKI BALENO’S STRENGTHS
- Suzuki Baleno is the only 1300cc car with factory fitted CNG
- Instead of one big cylinder, it has 2 small cylinders which results in a spacious boot
- Even the cheapest version of Suzuki Baleno has built in MP3 Player with Remote whereas the cheapest version of City has a cassette player without remote
- Baleno has built in Keyless entry with Immobilizer (anti-theft device) which none of the versions of City offer
- Baleno has 6 built in speakers
- Baleno LXi version and above has got ABS (Anti Lock Braking System, Alloy rims, Fog lamps, Power Steering and Power Windows). To enjoy the same features in a City or Corolla, you need to pay a higher price
- Overall Baleno’s basic version and even higher versions offer many features at a lesser price than its competitors
- Broader 13 inch Radial Tyres as compared to 12 inch tyres in competitors.
- 45 degree turning gauge as compared to 56 degree of competitors.
- Factory fitted Smoke Lights.
- Low price car as compare to competitors.
SUZUKI BALENO’S WEAKNESSES
- Shape less attractive than its competitors
- Image of Baleno’s parent company Suzuki. Suzuki has always been known for making cars for the masses which are economical and not very classy. Their association has always been with cheap, affordable cars and never with luxury.
- Lack of quality control. Many people who have bought Baleno have faced quality issues. The car starts making noises within months of running. This has created a negative perception towards the car
- Earlier versions had second gear problem which resulted in bad word of mouth and people still remember this problem even after correction in later models.
- CNG version performance is always low as compared to Petrol versions of competitors, so generally people drive CNG version and compare it with Petrol version of competitors.
- Finishing problem & stumpy quality.
OPPORTUNITIES FOR SUZUKI BALENO
- Vast Suzuki dealership network
- Tough economic conditions due to which even the Upper and Middle level executives and individuals from Sec B+ and A are looking for a luxury car which has cheaper maintenance, spare parts and with a factory fitted CNG kit
- Association of the car’s parent company Suzuki with economy and practicality
- Easy availability
- All product & services under one roof.
- Increasing demand for cars.
THREATS FOR SUZUKI BALENO
- Cheap image of Baleno’s parent company Suzuki which is usually associated with cars like
Ravi , Bolan and Mehran
- Little price difference with its competitor Honda City, which already has a very premium image in the market
- Introduction of new products of competitors
- Heavy taxes.
- Increase of fuel prices.
New Marketing Mix
THE DILEMMA
After studying Suzuki Baleno’s history and its progress as a brand, it is concluded that:
The name of the mother brand i.e. Suzuki is hurting Baleno
As long as Baleno remains associated with Suzuki, it will never be able to have a luxury sedan image that it so desperately needs
Honda and Toyota
SO WE ARE Relaunching…
Product
NEW NAME is Zeast
Re-launch Baleno with a new name. The new name will be Zeast. Zeast is the name of the brightest star in the night sky.
The name of the car will be established as a standalone brand. Further sedans of Suzuki can continue to come with this name only with additional name or version number attached with it
THE LOGO
No Suzuki logo will be attached with any communication of Zeast. The endorsement of the mother brand will be completely removed from all communication.
COSMETIC CHANGES & FEATURES
Make further cosmetic changes in the car to improve the shape slightly and add further gadgetry.
POSITIONING
Zeast will be positioned as a high tech driving machine that is designed to perfection. The positioning line will be:
“When Science Becomes an Art”
Price
The price of Zeast will be decided on new market situation .
Place
The placement of Zeast will be done as same it was carried before of Baleno.
Promotion
Promotion Strategy
The promotion will first start with teasers that will create mystery behind the brand and register the name.
The Launch ad that will eventually be run will be very high class, focusing on High level business executives.
Teaser Ads
Launch Add
BCG Matrix
Baleno was placed in Dog category in BCG Matrix due to low market share & low market growth.
Now our objective is to push our previous product having new name to cash cows
PMG Matrix
Baleno does not fall anywhere in PMG Matrix because is it dying in the market and it was produced in 12 countries of the world and 10 have stopped its production and only Pakistan
But our relaunched product falls in Product development segment by offering modified product to same segment .
Merchandising
Baleno had a very poor merchandising system which is one of the main reasons of its declining sales throughout.
Zeast will provide free test drive to its customers who are willing to purchase which will help the company to win customer confidence in the product and they will like to invest.
The other important thing that Company should have is billboards around the city as its competitors are using this strategy and having success in the market. The main reason to have billboard is to capture the attention of consumer towards the product and they can create the image in their minds.
SWOT Analysis
Suzuki Zeast Strength’s
Suzuki enters the market with new name Zeast which will prove positive for it and will be able to capture high market share and can get market growth in few years.
Luxurious car with low price as compared to its competitors.
Shape of the car will be slight different as compared to liana to look more attractive in the eyes of consumers.
Free test drive will be available.
Suzuki Zeast Weaknesses
The major weakness is that the competitors are already stable in market share and Sirius will take time to capture the market.
Suzuki Zeast Opportunities
Vast Suzuki dealership network
Association of the car’s parent company Suzuki with economy and practicality
Easy availability
All product & services under one roof.
Increasing demand for cars.
Suzuki Zeast Threat’s
The major threat that will be faced by Suzuki is that it has re-launched its product with new name and for this it has to be very careful to build the image of Zeast in the mind of consumers and to identify its target market properly to avoid any type of losses in future
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1 comments:
WEll this is really good!
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