Académique Documents
Professionnel Documents
Culture Documents
Project of Marketing
Assign By:
Mr Mudasir Hussein
Prepared By:
Sundus Shehzadi
(Course Instructor)
( MBA Evening 2nd Batch
ACKNOWLEDGEMENT LETTER
MR. Mudasir
Course Instructor
Sundus Shehzadi
Dated: 25/11/2015
Table of Contents
1
Introduction
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
History
mission and vision
Management structure
Ethics and business practice
Product portfolio
BCG metric
Anosof matrix
Swot analysis
Marketing research
Consumer behavior
Segmentation
Target and Positioning
Level of production
product life cycle
pricing strategy
Place strategy
Promotion strategy / advertising/sales
Conclusion
Introduction
Pak Suzuki Motors Ltd.
is a company assembling and distributing Suzuki Japans 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%.
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 peoples 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.
Our Vision
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.
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 companys 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 companys best interest while holding
confidential information. Company expects its employees neither to solicit internal
information from other nor to disclose companys data or any other material
information to any un- authorized person/body.
Pak Suzuki believes in individuals respects and growth. Its employment policies do
not discriminate on basis of race, religion, gender or any other factor
Pak Suzuki does not believe in political affiliation.
Management Structure
Profiles of Directors
Hirofumi Nagao
Tetsuya Fujioka
Toshihiro Suzuki
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
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
Mr. Kazuyuki Yamashita has been associated with Suzuki Group since 1987. He
Manager of Asian Automobile Group 1 in Suzuki Motor Corporation. He worked
Suzuki Canada from 2001 to 2006 and as Managing Director of Suzuki Auto Sout
joined Pak Suzuki Motor Company Limited as Director on September 16, 2015.
Mr. Wazir Ali Khoja is a NIT nominee director on the Board of Pak Suzuki Motor Compa
September 28, 2010. He holds over 35 years of professional experience in the fields of Bank
Mutual Fund Industry. He held senior positions relating to Human Resource, Managemen
Finance while associated with Muslim Commercial Bank Ltd. (MCB) and served National Inve
(NIT) as Managing Director and Dy. Managing Director. He has also served as Director on th
institutions which includes. Bank Al Habib Limited, Fauji Fertilizer Company Limited, Aska
Habib Metropolitan Bank Limited, KSB Pumps Company Limited, Pakistan State Oil, Packa
Gas LPG (Pakistan) Limited, Sui Northern Gas Pipeline Limited, Sui Southern Gas Company L
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.
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
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.
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.
Product Portfolio
Following are the some Varieties of Pak Suzuki Motors.
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/-
MEHRAN
Price: Rs. 514,000/Unrivalled in its class, Mehran is Pakistans 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
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
go along for adventurous free souls.
Colors:
Solid white, Silky Silver
BOLAN VAN
Price:Rs. 609,000/-
to
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
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/-
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 Suzukis forward-looking approach to car
making and simultaneously hinting at whats still to
come from one of the most innovative carmakers in the
world.Colors:
Pearl Red, Silky Silver, Graphite Grey, Sand Beige
BCG Matrix
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:
1234-
MEHRAN
CULTUS
RAVI
BOLEN VAN
These are cash cows, for Pak Suzuki Motors Ltd.Because these hasvea low growth rate but
high market share.
Question Mark:
1- KIZASHiI
2- WAGON R
These 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:
1234-
APV
LAINA
JIMNY
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:
"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.
Ansoffs 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:
Maintain or increase the market share of current products.
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.
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
Customers 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:
Weakness:
Scarcity of raw material
Bargaining power of supplier is low
Opportunities:
Threats:
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 wasnt 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 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 havent 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 havent 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 cant hold
on it.
Market Research
Suzuki Cultus
Price: Rs. 897,000/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.
997 cc
Transmission:
Manual
Fuel Type:
Petrol
Fuel system:
EURO II
40 L
3845
1590
1380
650
22km/1L
No of Doors:
Wheel Type:
Steel
Wheel Size:
13 inch
Front Brakes:
Disc
Rear Brakes:
Drum
Yes
Yes
Cassette Player:
Yes
Yes
CD Player:
Cup Holders:
Yes
Alloy Wheels:
N/A
Folding Rear-Seat:
Yes
Tubeless Tyres:
Yes
N/A
Central Locking:
Yes
N/A
Customer Behavior
Consumer Research
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 doesnt 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
Demographic Factor:
Target market of Pak Suzuki according to Age, Gender and Income:
Age:
20 year to upwards
Gender:
Income:
Life Style:
Customer Life style of Pak Suzuki in terms of AIO can be described as
Activities:
Interest:
Opinion:
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
and subdividing a large homogenous market into clearly identifiable segments having
similar needs, wants, or demand characteristics.
Geographic segmentation
Location
Population
Growth rate
CIty
Sindh
13,053,339
2.86
Karachi
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
Age Group
Annual Income
Under 10 Lac
10 to 20 Lac
21 to 30 Lac
31 to 40 Lac
40 to 50 Lac
50 Above
0-17 years
41 %
18-20 years
37%
21-45 years
24%
46-59 years
18%
60 above
8%
28%
7%
16%
9%
6%
Family Size
1 or 2 person
6%
6%
3 5 person
34%
6 or 9 person
31%
8 and above
29%
Psychographic segmentation
Social class
Life Style
Achievers, Passionate
Personality
Authorization, Ambitious
Behavioral segmentation
Benefit sought
User status
Usage rate
Medium User
Attitude
Levels of Product
Options
Percentages
18-30 years
28%
31-45 years
16%
Family Size
Options
Percentages
1 or 2 person
6%
3 5 person
34%
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:
Cup Holders
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.
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
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.
so
Promotion
strategy
Corporate image
To provide the top quality product to the satisfaction and requirement of customer.
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 8002000 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.