Principles of Marketing: Strategic Analysis of Pak Suzuki Motors

Principles of Marketing Page 1
Submitted to:
Ms. Samiya Hameed
Group Members:
Annie Mehwish
Kailash Dhanji
Zahir Rehman
Rida Ali

Acknowledgement
By the Grace of Almighty Allah we are able to complete our report and would like to give our
deepest and most sincere gratitude for all His blessing and guidance. If not for His help during
the time spend on this report we might not have been able to manage with ease to complete
this.
We would also like to extend our gratitude to our Teacher (Ustaad), MS. Samiya Hameed, for
her guidance and assistance which she could provide during the course of Principle of
Marketing.
We would also like to show appreciation towards our parents, siblings for their constant
support and encouragement.
We would also like to thank our peers who provided information which could air us in the
completion of the report.
Cordially,
Annie Mehwish
Urmilla Dhanji
Kailash Dhanji
Rida Ali

TABLE OF CONTENTS
SR.
NO.
PARTICULARS
PAGE
NO.
1. Letter of Acknowledgement 2
2. Executive Summary 4
3. Introduction 5
4. Vision, Mission, Objectives 6
5. Company’s Milestone 7
6. SWOT Analysis 10
7. Segmentation 11
8. Industry Overview 13
9. Marketing Mix 14
10. Environment 15
11. Promotion and Communication Strategy 17
12. Overview on Cultus 19
13. Product Life-cycle 20
14. Questionnaires 21
15. Awards, Launchings & Trainings
 Consumer choice Award 24
 Highest Award for Pak Suzuki 25
 Re-launching of CNG version of Suzuki (Cultus & Mehran)
& Training on CNG
26
 Launching Ceremony of Suzuki Inazuma Aegis & Training
for Motorcycle
27
16. Recommendations 28
17. Conclusion 28

Executive Summary
This project is about the strategic Analysis of PAK SUZUKI MOTORS (private) LTD. During the
project, we have done the detailed study of PAK SUZUKI MOTORS (private) LTD like their
company Introduction, Mission, Vision and Corporate values. Our report contains Milestones
of Suzuki Motor Company ltd. With the help of Internal and External analysis, we have sorted
out some of their Strengths, Weaknesses, Opportunities and Threats prevailing in the market.
As we surveyed market of Pak Suzuki Motor Company, we have found out that there are many
factors which have been affecting an organization since they started their business in 1983;
those factors are explained and identified under the sub-heading of Segmentation. Further we
have studied their industry thoroughly and mentioned the significant changes in their products
which occur every year due to the change in customer’s needs and demands and what products
in industry attract more of their potential customers.
We also analyzed the Macro-environment and Micro-environment which effects the
organization as a whole. According to staff we have found out that what strategies are being
adopted and implemented by the organization to compete their competitors in a market. Our
report also contains overview of their potential product (CULTUS) which has higher demand in
the market and have higher market share as compared to other products. Finally we framed
company’s entire product in a Product Life Cycle. As to gather information we visited and had
meeting with their staff and asked some questions which are also written in report which was a
great experience and their answers were quite convincing and their behavior was very humble
and co-operative. We have learned that they are doing well in the Pakistan market and are
leading market shareholder. They are producing cars at affordable prices for the low income to
middle income people.
Our report also contains Awards given to Pak Suzuki Motor, Launching Ceremony and training
to their staff, further Recommendations and Conclusion.

Introduction:
PAK SUZUKI MOTORS (private) LTD was formed as a joint venture between Pakistan
Automobile Corporation and Suzuki Motor Corporation (SMC) – Japan. The 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 capacity of 150000 vehicles. The vehicles
produced include cars, small vans, pickups, cargo vans and motorcycle. PAK SUZUKI MOTORS
(private) LTD 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 dealer’s network offering (Sales, Service and Spare Parts) facilities
across Pakistan.
Caring for the Environment PAK SUZUKI MOTORS (private) LTD was pioneer in introduction of
Factory fitted CNG vehicles.

PAK SUZUKI MOTORS (private) LTD is also exporting Suzuki Ravi pickup, Liana and components
to Bangladesh and Europe thus earning precious foreign exchange for the country.
VISION, MISSION & OBJECTIVES
 Vision
To become a leading organization that provides solutions and values the needs of
customers.
 Mission
To provide automobile of international quality at competitive prices and improve
Skill of employees by imparting training and inculcating in them a sense of
Participation.
 Objectives
 To bring greater efficiency in Suzuki products.
 To achieve greater indigenization and promote the automobile vending industry.
 To take care of stakeholders’ reliability so that they can contribute and invest freely in
the organization.

COMPANY’s MILESTONES
1975 Suzuki Motor Corporation Japan started assembly of 4x4 vehicles at Naya Daur Motors.
1978 Assembly of Pickup started at Awami Autos Ltd.
1979 In accordance with the concept of “Peoples Car” announced by the Government of
Pakistan, Pakistan Automobile Corporation proposed the production of a passenger car with
its localization offering to 18 foreign manufacturers.
1981 Suzuki project was approved by ECNEC (Executive committee of National Economic Council)
(Formal approval of the Government)
1982 Joint Venture Agreement was signed between SMC and Pakistan Automobile Corporation
(PACO).
Production of Suzuki FX started.
President of Pakistan, Gen. Mohammad Zia Ul Haq inaugurated the plant & handed over the
keys of the first car.
1983 Pak Suzuki as a public limited company incorporated.
Industrial collaboration agreement executed with SMC.

1984 The Company Started commercial operations.
1988 Introduced 1000cc SWIFT later on called KHYBER.
800cc MEHRAN replaced Suzuki FX.
1989 Foundation stone of Pak Suzuki Bin Qasim Plant was laid by the Prime Minister of Pakistan.
1990 Start of operations of new plant at Bin Qasim with engine and transmission assembly.
1992 MARGALLA production started at new Plant.
SMC acquired additional 15% shares from PACO enhancing its shareholding to 40% and
taking over the management.
1995 Roll-out of the 50,000th vehicle from the Bin Qasim Plant.
1996 Waste water treatment plant Installed to control environmental pollution. The joint venture
agreement ended, PACO divested its entire share holding to SMC, raising SMC`s equity to
72.8%.
1997 Exports of Ravi Pickups to Nepal / Bangladesh commenced.
1998 1300cc BALENO replaced MARGALLA.
2000 1000cc CULTUS replaced KHYBER.
1000cc ALTO Introduced.
2001 Production of factory fitted CNG vehicles started.
SMC further increased its equity to 73.09%.
2004 Plastic injection molding shop commenced operation.
2005 Capacity expansion up to 80,000 vehicles per year.

2006 Capacity enhanced to 120,000 vehicles per year.
1300cc LIANA replaced BALENO.
2007 Plant capacity expanded up to 150,000 vehicles per year.
Amalgamation of Suzuki Motorcycle Pakistan Limited into Pak Suzuki Motor Company
Limited.
2nd Waste Water Treatment Plant installed.
2009 1 million Suzuki Vehicle produced. The Prime Minister of Pakistan graced the occasion.
2010 1300cc Suzuki SWIFT car introduced.
800cc Suzuki CARGO VAN launched.
Roll-off of the 750,000th 800cc Suzuki vehicle.
500,000th CNG Vehicle produced.
2011 Inauguration of motorcycle plant at Bin Qasim.
2012 Complete range of Suzuki products was upgraded to Euro II technology.
Suzuki Genuine Oil (SGO) launched.
Suzuki Motorcycle RAIDER 110cc was launched replacing SPRINTER.
Completion of 20,000 Units of Government of Punjab “Rozgar Scheme”.
2013 Suzuki motorcycle, GD 110 launched.
Suzuki heavy bikes introduced.
2014 Suzuki outboard motor launched.
1000cc Suzuki Wagon R car introduced.
Suzuki motorcycle, GD 110S launched.
2015 2400cc Suzuki KIZASHI car introduced.
Heavy Bike Suzuki Inazuma Aegis Launched.
Pak Suzuki awarded by Ozone Award from Govt. of Pakistan.
Re launching of CNG Versions (Mehran & Cultus).
Inauguration of Vendor Development Program II by Federal Minister.
Inauguration of Expansion of Parts Manufacturing Facilities by Federal Minister.
Inauguration of Resumption of CNG Fitted Vehicle (Mehran& Cultus) by Federal Minister.
Achieving highest automobile sales ever i.e. 133,952 Units.

2016 Completion of 50,000 Units of Government of Punjab “Rozgar Scheme”.
SWOT ANALYSIS
 Strengths:
 Fuel efficient and good looking car.
 Less air resistance due to shape.
 1000cc engine is best fit with body.
 Good resale value.
 Weaknesses:
 Body is not solid.
 Boot space is not having sufficient space.
 Less focus on Looks and Design.
 Less Technical Training Institutes.
Opportunities:
 Increasing national economy.
 Growing market demand.
 Government support.
 Technological development.

Threats:
 Price changes.
 New entrants.
 Existing competitors.
 Increasing taxes.
SEGMENTATION
 Geographical Segment:
 Pakistan.
 Destiny: Urban Areas.
City Location Population Growth Rate
Karachi Sindh 21,142,625 3.86
Lahore Punjab 9,718,745 3.71
Faisalabad Punjab 6,047,446 3.90
Peshawar KPK 3,307,798 4.36
Gujranwala Punjab 2,799,766 3.64
Islamabad Capital Territory 1,740,000 2.75
Hyderabad Sindh 3,429,471 3.26
 Demographic Segment:
Age Group Family Size
Options Percentage Options Percentage
0-17 years A 41% 1 or 2 Person A 6%
18-30 B 28% 3- 5 Person B 34%
31-45 C 16% 6 or 7 Person C 31%
45-59 D 9% 8 and above D 29%

Over60 E 6%
Annual Income
Options Percentage
Under 10 Lac A 37%
11-20 Lac B 24%
21-30 Lac C 18%
31-40 Lac D 8%
41-50 Lac E 7%
Over 50 Lac F 6%
 Psychographic Segment:
 Social Class:
Upper Middles and Lower Uppers
 Life Style:
Achievers, Passionate
 Personality:
Authoritarian and ambitious
 Behavioral Segment:
 Attitude:
Positive, Indifferent and Enthusiastic.
 Benefits Sought:
Speed and convenience.
 User Status:
New users, potential user.
 User Rate:
Medium User.
 Target Segment:

Age Group Family Size
Options Percentage Options Percentage
18-30 years A 28 % 1 or 2 Person A 6 %
31-45 years B 16 % 3- 5 Person B 34 %
 Monthly income 90000+ salary
 Purchased by companies for their manager
 Executive car: “ Drive the Executive way”
INDUSTRY Overview
Value:
 Strongest, International manufactures of finest automobiles.
 Surprises you, amazes you, please you, and open your eyes to
World-wide brands.
 Sets “Personal bests” year after year.
 SUZUKI Offers You:
 Creditability
 Reliability
 Affordability
 Resale Value
 Being Charismatic.
 Comfort ability
 Fuel efficient.
 SUZUKI: More Then You think:
 Build more cars than Mazda, BMW and Subaru combined.
 Profitable for 29 years straight.

 Number 3rd selling cars in Pakistan
 Major Players:
 Toyota Indus Motors Company.
 Atlas Honda Company.
 Pak Suzuki Company.
 Hyundai Motor Corporation.
 Dewan Farooque Motors.
 Master Motors.
 Sigma Motors.
 Special Reference Of Cultus:
 Toyota: Vitz, Belta1000cc.
 Hyundai: Santro 1000cc
 Kia : Classic, Pride, Picanto 1000cc
 Nissan : Trovit 1000cc
 Growing Middle Classes of Pakistan:
 Customer’s purchasing.
 Demographic, Cultural and Natural factors.
 Examples are: ALTO MEHRAN, BOLANVAN, and RAVI PICKUP.
Marketing mix (4p’S)
 Product:
Managers of Pak Suzuki Motors Company ltd. used their skills and knowledge to
find out customers wants and needs which is different in all countries according to their
cultures, attitudes and values. They launch their product after the research of market.

 Price:
Pak Suzuki Motors Company ltd. maintained their success by taking the price from
their customers which they can pay from their incomes after savings. They set their costs
after realizing consumer’s pocket.
 Place:
Customer buys Suzuki products very easily. They brought convenience to their
customers by providing platform to showcase their products like exhibitions, showrooms,
social events, online services through different sites etc.
 Promotion:
letting people know about the new products and existing products and existing
products with updates in them is very crucial for the organization which Suzuki took very
seriously and promote their products very well through different means of advertising.
 People:
It has hired skilled labor for their organization so that they can work efficiently and
effectively and create productivity.
 Process:
Their process is very systematic and efficient which create confidence in employees
towards their success and their expectations are high.
 Packaging:
Their products don’t need to be packed.
 Purpose:
Their vision is their purpose for which organization is established.
 Physical evidence:

They provide proper documents and registration to their customers so that their
customers don’t feel unsatisfied
ENVIRONMENT
 Micro Environment:
In micro environment of PAK SUZUKIMOTORS (private) LTD there are many
agents involved in a company which affects the organization as a whole.
 Customers:
In micro environment of a company customers exist which have great influence
on organization as a whole so that manager must consider customers before taking any
decision and action.
 Company:
Company itself takes decisions after considering the reputation and good-will.
 Suppliers:

Suppliers have influential impact on company’s decision and actions. As we
observed the company’s continuous growth we can say that Suzuki Motor ltd. is having
good relationship with their suppliers.
 Marketing Intermediaries:
PAK SUZUKIMOTORS (private) LTD has great alliance with market intermediaries
for such reasons; promotional activities, organizational events, distribution and selling
and any other agents who helps the company to make products available to final
buyers.
 Macro Environment (PESTEL ANALYSIS)
 Political Analysis:
Political factors such as Tax policy, Tariffs, Trade restrictions and labour law
in macro environment does exist and have significant impact on Suzuki Motor ltd. In
past there were many ups and downs in their prices and overall growth of an
organization but in 2016 we are satisfied with its performance.
 Economical Analysis:
Growth of an economy boost the performance and profit margin of PAK
SUZUKIMOTORS (private) LTD in past few years which are also advantageous for their
customers whose income is rising so that they are buying their products.
 Social Analysis:

PAK SUZUKIMOTORS (private) LTD always considers the tastes, attitudes
and values of their customer before designing any product and launching in a market.
As Pakistan’s population growth is increasing day by day which is good for the
organization.
 Technological Analysis:
PAK SUZUKIMOTORS (private) LTD is very responsive to technological
changes in a country which is very appear able. They used innovation and ideas in their
products through outsourcing research and development and training labors.
 Ecological Analysis:
PAK SUZUKI MOTORS (private) LTD takes special care of environment.
Products of a company does not harm health of their customers.
 Legal Analysis:
PAK SUZUKI MOTORS (private) LTD has experts to tackle and respond to
changes in law of a country and in case of any legal dispute arises.

PROMOTION AND COMMUNICATION STRATEGY
 Corporate Image:
 To provide top quality product to the satisfaction and requirement of customer.

 Conduct operation in compliance with applicable environmental occupational
health & safety laws and regulations. Where existing laws & regulations are not
adequate.
 Brand Management:
 They thrive on technology and have created a niche for there selves worldwide.
They keep up bringing new innovations in there armory to attract the consumer
and to capture the market.
 In 2011 Kizashi Sport GTS and SLS, Suzuki continues their tradition of offering
modern features to their customer with affordability. Expanding upon what
time.com called “One of the most exciting cars of 2010”.
 Market Shares and Position:
 Suzuki stands at 1st with 50.36% of total market shares.
 Toyota stands at 2nd with 33% share
 Honda stands at 3rd with 12% share of market
 Daihatsu stands at 4th with 05% share of market
 Past Performance:
 Automotive contributed 29 billion in 2004-2005.
 Though out 90’s production capacity was 50000 units/ annum which increased to
140000 unit/annum
 Future Outlook:

 170 million populations with 35% living in urban have tremendous potential
market.
 Increasing middle class gives a green light for flourishment.
 Layout and the massage:
 Cultus is a blend of space ad craft.
 Its trim body conceals ample space, flexibility for both passengers and storage.
 Suzuki Cultus assure everyone, exceptional value and quality.
 Communication:
 Pakistan is associated with middle class families.
 People usually get to know about cars in Pakistan through
Word of mouth.
 Its trim body conceals ample space, flexibility for both passengers and storage.
 Suzuki Cultus assure everyone, exceptional value and quality.
Overview On CULTUS
 Overview on Cultus:
 It has electronically synchronized factory-fitted CNG.
 Special car financing and having insurance facilities.

 It has a higher resale value and its spare parts are also easily available.
 Position Statements:
 Position as a compact car in the market.
 Designed to drive well off at road.
 Cultus assure everyone, exceptional value and quality.
 Attributes Of Cultus:
 Style, Design Concepts, Interior, Exterior
 Technical Specification: CNG Color
 Price: Rs. 865,000/=
 Brand Personality Of Cultus:
 For people who want competency and sophistication though driving experience,
so Cultus is the right choice for them.
 Drive the Executive way.
Product life cycle 2016

 Introduction: Suzuki outboardmotors and WagonR
 Growth: Motorcycles
 Maturity: Cultusand Vitz
 Decline: Suzuki and Mehran
0
0.2
0.4
0.6
0.8
1
1.2
introduction growth maturity decline
product life cycle

Questions asked from their Staff
Q1: How do you give value to your customers & how your customers satisfied with yourcars?
If customers are not satisfied than what do you do?
Answer: We give value to our customers by providing them better services than our
competitors and offer a wider product range. Customers are satisfied in a way that we give
them economy cars at a reasonable price with valuable feature. However, sometimes
customers are not satisfied due to time lapse then we try to satisfy our customers by other
means such as providing incentives, like mobile maintenance service.
Q2: What is your product management orientation? (As a SUZUKI)
Answer: Our product management orientation is that we launch those products which
customers want and we launch our products for every class such as Mehran for lower-class
(aspirers), Cultus for middle-class (seekers) & Swift for upper-class (strivers).
Q3: How does your company build customer equity? As your company is giant car
manufacturer?
Answer: Yes we are the giant manufacturer, the company provides the services according to
more than requirement of the customers by which our company build customer equity we
provide them delighted service.
Q4: What is your value chain and delivery network?
Answer: Our value chain and value delivery network is especially for corporate sector, because
they are those customers who purchase cars in bulk quantities. Sometimes, individual
customers are given more priority.

Q5: With which environment force doyou have the strongest relation?
Answer: With this environment force we have strong relation,
1) We have the strongest relation with our supplier that is basically our production
department in order to manufacture and deliver our cars on time.
2) Customer such as corporate sectors who buy our cars in bulk quantities.
Q6: What is your product/market expansion grid? As a car manufacturer
Answer: Like , In product development: during early age we used to produce Mehran(VXR) but
now we enhanced and modified Mehran with Mehran(VXR) euro II technology.
In market penetration: we increased the sale of existing model by increasing promotional
strategy such as during 2007 till 2012 we enhanced the promotional activity of our cars because
we felt that our market is decreasing but with the help of this strategy our sales again got
increased .
Q7: What is the most important to your company (INTERNAL DATA BASE, MARKETING
INTELLIGENCE or MARKET RESEARCH)?
Answer: Our Company is using the MIS in a way that we use market research the most and a
little bit marketing intelligence but we do not use internal database because mostly it is
outdated. However, we use marketing intelligence only a little bit as it does not give us way too
much benefit, therefore our main focus is on market research. We first do market research that
what type of car is demanded by the customers then we launch our cars in the market.
Therefore it proves that market research is most important for our company in MIS.
Q8: How strong is your Customer Relationship Management (CRM)?
Answer: Our Company has a very strong CRM. We provide doorstep services to our customers
to make them delighted. Not only that but we also let the customers do test drives before they
finally purchase the cars and we also give incentives to our loyal customers.

Q9: Identify the ways in which you are promoting your product?
Answer: We promote our product in the following ways:
1) Do the road shows and rallies.
2) Sponsor different events.
3) Sometimes host events.
4) Place our upcoming cars in the shopping centers.
5) ATL & BTL both we follow for promotion, such as advertisements on TV channels.
Q10: What social work is your company doing? How are you contributing for the betterment
of society?
Answer: Some of the members of our company go to volunteer to do plantation in the entire
city. Our company uses returned profits (Retain Earnings) to provide education to the
unprivileged children and also to support the students who wants to study. Our company
volunteers for patients in the hospitals and provide financial incentives to patients who need
them.
Q11: What is your Unique Selling Proposition?
Answer: We especially provide services to the co-operate sector customers as they purchase
cars in bulk quantities so we provide doorstep services to these customers because these
customers are very beneficial to our company.
As a Suzuki our value proposition is “WAY OF LIFE”
Q12: What is your product portfolio?
Answer: We have different ranges of product (cars) and bikes, our one of the best motor bikes
which is known as (HAYABUSA) one of the famous sport bike all over world. And range of cars
like; MEHRAN (VXR) & (VXR1) EURO11, CULTUS (VXR & VXR1), SWIFT 1.3, LIANA, WAGON-R,
SUZUKI PICK UP and many more different products.

CONSUMER CHOICE AWARD
Consumer Choice Association of Pakistan awarded consumer Choice award to PAK SUZUKI
MOTORS (private) LTD flagship product Suzuki Swift as “Best 1300 cc Car in Pakistan”. Ceremony
for the 7th Consumers Choice Award was held at PC Hotel, Karachi on 22nd February, 2012
where representative of Governor Sindh, Mr. Raza Haroon, Minister for information
Technology and Mr. Nisar Khoro, Speaker Sindh Assembly presented the award to Mr. Azam
Mirza, Staff General Manager Marketing, PAK SUZUKI MOTORS (private) LTD
SUZUKI after Efforts

Highest Award for Pak Suzuki
PAK SUZUKI MOTORS (private) LTD received HIGHEST AWARD from Suzuki Motor Corporation (SMC)
on completion of 50,000 units of Government of Punjab Taxi Scheme under “Rozgar Scheme”. The
annual award ceremony was held on 2nd April, 2016 at Grand Hotel Hamamatsu, Japan. Certificate
was handed over by Mr. Toshihiro Suzuki, President and COO-SMC to representative of PAK SUZUKI
MOTORS (private) LTD.

RELAUNCHING OF CNG VERSION OF SUZUKI (CULTUS AND
MEHRAN) & TRAINING ON CNG

LAUNCHINGCEREMONYOFSUZUKI INAZUMAAEGIS&TRAININGFOR
MOTORCYCLES

RECOMMENDATION:
PAK SUZUKI MOTORS (private) LTD is unable to compete with Corolla and Honda in Luxury and
semi-luxury cars. They need product development Strategy to follow so they can get into the
Honda and Corolla market.
Conclusion:
After visiting PAKSUZUKI MOTORS (private) LTD we conclude this report by saying that they have
created a good brand image in customers mind. They know very well that how to manage their
customer by providing them delighted services. They have been using very beneficial strategies
for promoting their cars. They have a great range of products. This year company also
introduced certified used cars with one year warranty, cars inspected form their engineers and
available with general documents, products can be bought from Suzuki Dealership.

Principles of Marketing: Strategic Analysis of Pak Suzuki Motors

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