PAK SUZUKI MOTOR COMPANYPAK SUZUKI MOTOR COMPANYPresented by Group #2Presented by Group #2

Abeer SaleemAbeer Saleem Faiz HasanFaiz Hasan Javeria RaufJaveria Rauf Muhammad Yousuf AnsariMuhammad Yousuf Ansari Nimra KhanNimra Khan Ubaid AhmedUbaid Ahmed Zohaib ArifZohaib Arif

Karachi University Business School (KUBS), Karachi University Business School (KUBS), University of Karachi.University of Karachi.

CULTUSCULTUS

Drive the Executive’s Way….Drive the Executive’s Way….

INDUSTRYINDUSTRYVALUEVALUE

Strongest, international manufacturers of finest automobiles. Strongest, international manufacturers of finest automobiles. Surprises you, amazes you, pleases you, and open your eyes to a world-Surprises you, amazes you, pleases you, and open your eyes to a world-

wide brands.wide brands. Sets “personal bests” year after year.Sets “personal bests” year after year.

SUZUKI OFFERS SUZUKI OFFERS SUZUKI: MORE THAN YOU SUZUKI: MORE THAN YOU YOU YOU THINKTHINK Creditability.Creditability. Reliability.Reliability. Affordability.Affordability. Resale Value.Resale Value. Being Charismatic.Being Charismatic. Comfort ability.Comfort ability. Fuel efficient.Fuel efficient.

Builds more cars than Mazda, BMW and Subaru combined.

Profitable for 59 years straight. Number 3rd selling cars in

Pakistan.

MAJOR PLAYERSMAJOR PLAYERS Toyota Indus Motors CompanyToyota Indus Motors Company Atlas Honda CompanyAtlas Honda Company Pak Suzuki CompanyPak Suzuki Company Ghandhara NissanGhandhara Nissan Dongfeng Motor CorporationDongfeng Motor Corporation Ghani Automobile IndustriesGhani Automobile Industries Hyundai MotorsHyundai Motors Dewan Farooque MotorsDewan Farooque Motors Master MotorsMaster Motors Sigma MotorsSigma Motors TCM AutomobilesTCM Automobiles

SPECIAL REFERENCE OF CULTUSSPECIAL REFERENCE OF CULTUS Toyota:Toyota: Vitz, Belta 1000 cc Vitz, Belta 1000 cc Hundai:Hundai: Santro 1000 ccSantro 1000 cc Kia :Kia : Classic, Pride, Picanto Classic, Pride, Picanto

1000 cc1000 cc Nissan: Nissan: Trovit 1000 ccTrovit 1000 cc

MACRO ENVIRONMENT FACTORSMACRO ENVIRONMENT FACTORS Suzuki launched such products which Suzuki launched such products which

not only delivers the superior value but not only delivers the superior value but also augmented products to all the also augmented products to all the classes of the people.classes of the people. Swift Swift LianaLiana CultusCultus AltoAlto MehranMehran APVAPV JimnyJimny Bolan VanBolan Van Cargo VanCargo Van Ravi PickupRavi Pickup

GROWING MIDDLE CLASSES OF PAKISTAN.GROWING MIDDLE CLASSES OF PAKISTAN. Suzuki specially considers Suzuki specially considers

Customer’s purchasing powerCustomer’s purchasing power Demographic, Cultural and Natural factors.Demographic, Cultural and Natural factors. Examples are: Examples are: ALTO, MEHRAN, BOLAN VAN, RAVI PICKUPALTO, MEHRAN, BOLAN VAN, RAVI PICKUP

DEMOGRAPHIC ENVIRONMENTDEMOGRAPHIC ENVIRONMENT Consider the Size, Density, Location, Age, Gender, Race, Occupation and other statistics Consider the Size, Density, Location, Age, Gender, Race, Occupation and other statistics

of people .of people . Pak Suzuki lunches products that delivers the superior value. Pak Suzuki lunches products that delivers the superior value.

NATURAL ENVIRONMENTNATURAL ENVIRONMENT Suzuki and the World: A Commitment to Our One and Only Planet.Suzuki and the World: A Commitment to Our One and Only Planet.

Right choice for their enthusiastic owners. Right choice for their enthusiastic owners. Engineered to be as fuel-efficient and environmentally responsible as possible.Engineered to be as fuel-efficient and environmentally responsible as possible. Reduces fuel costs, air pollution and greenhouse-gas emissions.Reduces fuel costs, air pollution and greenhouse-gas emissions. Provide their owners, safety and comfort.Provide their owners, safety and comfort.

MARKET SHARES AND POSITIONSMARKET SHARES AND POSITIONS Suzuki stands at 1Suzuki stands at 1stst with 50.36% of total market share with 50.36% of total market share Toyota stands at 2Toyota stands at 2ndnd with 33% share with 33% share Honda stands at 3Honda stands at 3rdrd with 12% of market & Daihatsu at 4 with 12% of market & Daihatsu at 4thth with 5%. with 5%.

PAST PERFORMANCEPAST PERFORMANCE Automotive contributed 23 billion in 2003-04.Automotive contributed 23 billion in 2003-04. Through out 90’s production capacity was 45000 units/annum which Through out 90’s production capacity was 45000 units/annum which

increased to 120000 units/annumincreased to 120000 units/annum

FUTURE OUTLOOKFUTURE OUTLOOK 170 million population with 35% living in urban has tremendous 170 million population with 35% living in urban has tremendous

potential market.potential market. Increasing middle class gives a green light for flourishmentIncreasing middle class gives a green light for flourishment

COMPANY PROFILECOMPANY PROFILE

HISTORYHISTORY

Pak Suzuki Motor Company Pak Suzuki Motor Company was incorporated in 1983was incorporated in 1983

Opened a new Plant at Bin Opened a new Plant at Bin Qasim (Expansion)Qasim (Expansion)

Market Leader of the IndustryMarket Leader of the Industry Employs about more than Employs about more than

1500 employees1500 employees

STRATEGIC BUSINESS UNITS (SBU)STRATEGIC BUSINESS UNITS (SBU) AutomobileAutomobile MotorcyclesMotorcycles

MICRO-ENVIRONMENTMICRO-ENVIRONMENT CustomersCustomers CompanyCompany SuppliersSuppliers Marketing IntermediariesMarketing Intermediaries

LAYOUT AND THE MESSAGELAYOUT AND THE MESSAGE Cultus is a blend of space and craft. Cultus is a blend of space and craft. Its trim body conceals ample space, Its trim body conceals ample space, flexibility for both passengers and flexibility for both passengers and storage. storage. Suzuki Cultus assures everyone, Suzuki Cultus assures everyone, exceptional value and quality. exceptional value and quality.

COMMUNICATION:COMMUNICATION: Pakistan are associated with middle class familiesPakistan are associated with middle class families People usually get to know about cars in Pakistan through word of People usually get to know about cars in Pakistan through word of

mouth.mouth. large section of automobile operates with second hand dealers large section of automobile operates with second hand dealers

PROMOTION AND COMMMUNICATION PROMOTION AND COMMMUNICATION STRATEGYSTRATEGY

CORPORATE IMAGE:CORPORATE IMAGE: To provide top quality products to the satisfaction and requirement of To provide top quality products to the satisfaction and requirement of

customer.customer.• Conduct operations in compliance with applicable environmental, Conduct operations in compliance with applicable environmental,

occupational health & safety laws and regulations. Where existing laws & occupational health & safety laws and regulations. Where existing laws & regulations are not adequate.regulations are not adequate.

BRAND MANAGEMENT:BRAND MANAGEMENT: They thrive on technology and have created a niche for themselves They thrive on technology and have created a niche for themselves

worldwide. They keep up bringing new innovations in their armory to worldwide. They keep up bringing new innovations in their armory to attract the consumer and to capture the market. attract the consumer and to capture the market.

In 2011 Kizashi Sport GTS and SLS, Suzuki continues their tradition of In 2011 Kizashi Sport GTS and SLS, Suzuki continues their tradition of offering modern features to their customers with affordability. Expanding offering modern features to their customers with affordability. Expanding upon what Time.com called “One of the most exciting cars of 2010”, upon what Time.com called “One of the most exciting cars of 2010”,

DIFFERENTIATION OF CULTUSDIFFERENTIATION OF CULTUS It has electronically synchronized factory-fitted CNG. It has electronically synchronized factory-fitted CNG. Special car financing and having insurance facilities.Special car financing and having insurance facilities. CultusCultus has a higher resale value and its spare parts are also easily has a higher resale value and its spare parts are also easily

availableavailable

POSITIONING STATEMENTSPOSITIONING STATEMENTS ““Position as a compact car in the market”Position as a compact car in the market” ““Designed to drive well off at road”Designed to drive well off at road” ““CultusCultus assures everyone, exceptional value and quality” assures everyone, exceptional value and quality”

ATTRIBUTES OF CULTUSATTRIBUTES OF CULTUS Style· Design Concept· Interior· ExteriorStyle· Design Concept· Interior· Exterior Technical Specifications: CNG Color Technical Specifications: CNG Color Price: Price: Rs. 865,000/- Rs. 865,000/-

BRAND PERSONALITY OF CULTUSBRAND PERSONALITY OF CULTUS ““For people who want competency and sophistication through driving For people who want competency and sophistication through driving

experience, so Cultus is the right choice for them.”experience, so Cultus is the right choice for them.” ““Drive the Executive way”Drive the Executive way”

SEGMENTATION:SEGMENTATION:GEOGRAPHICAL SEGMENTATION

PakistanDestiny: Urban Areas.

DEMOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATION

PSYCHOGRAPHIC SEGMENTATIONPSYCHOGRAPHIC SEGMENTATION Social Class: Social Class:

Upper Middles and Lower UppersUpper Middles and Lower Uppers Lifestyle: Lifestyle:

Achievers, PassionateAchievers, Passionate Personality:Personality:

Authoritarian and ambitious.Authoritarian and ambitious.

BEHAVIARAL SEGMENTATION:BEHAVIARAL SEGMENTATION: Attitude: Attitude:

Positive, indifferent and Positive, indifferent and enthusiastic.enthusiastic.

Benefits Sought: Benefits Sought: Speed and convenience.Speed and convenience.

User Status: User Status: New users, potential users.New users, potential users.

User Rate: User Rate: Medium user.Medium user.

TARGET SEGMENTSTARGET SEGMENTS

Monthly income 90000+ salaryMonthly income 90000+ salary Purchased by companies for their managers Purchased by companies for their managers Executive car: Executive car: 'Drive the Executive way'.'Drive the Executive way'.

SWOT ANALYSISSWOT ANALYSISSTRENGTHSSTRENGTHS

Fuel efficient and good Fuel efficient and good looking car.looking car.

Less air resistance due to Less air resistance due to shapeshape

1000 cc engine is best fit with 1000 cc engine is best fit with body. body.

Good resale value.Good resale value.

OPPURTUNITIESOPPURTUNITIES Easily modified.Easily modified. Converted to power version.Converted to power version. Different type of engine Different type of engine

swaps are possible.swaps are possible.

WEAKNESSESWEAKNESSES Body is not solidBody is not solid Boot space is not having Boot space is not having

sufficient spacesufficient space

THREATSTHREATS Horrible sounds & jerks on Horrible sounds & jerks on

bad roads.bad roads. Price is too high which Price is too high which

doesn’t match with the doesn’t match with the today’s income size.today’s income size.

FUTURE RECOMMENDATIONSFUTURE RECOMMENDATIONS February 24February 24thth President Asif Ali Zaradari invited leading President Asif Ali Zaradari invited leading

automobile industries to invest in Pakistan. So government can automobile industries to invest in Pakistan. So government can be accredited for its sincerity in efforts.be accredited for its sincerity in efforts.

Japan is the 4th largest investor in the automobile sector in Japan is the 4th largest investor in the automobile sector in Pakistan which includes Suzuki and other giants like Indus Pakistan which includes Suzuki and other giants like Indus motors and Hindo Pak motors. motors and Hindo Pak motors.

Due to the decline in the duty of the second hand cars in Due to the decline in the duty of the second hand cars in Pakistan, Suzuki has the great incentive.Pakistan, Suzuki has the great incentive.

Due to the lower price level, there is an huge incentive for the Due to the lower price level, there is an huge incentive for the consumer. But competition also gets stiff.consumer. But competition also gets stiff.

They should compete with the other brands in the market so it They should compete with the other brands in the market so it can increase its performance but should not lose its target can increase its performance but should not lose its target audience which is upper middle and lower class.audience which is upper middle and lower class.

THANK YOU THANK YOU