10 Step Marketing Plan for Isuzu Philippines Corp.

10 STEP “The Possibilities are Endless”
Marketing Plan for
Isuzu Corporation Philippines

Noel Paningbatan
July 6, 2012

www.noelpaningbatan.blogspot.com

Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.

Marketing Plan Outline
 Who buys a D-Max?
 NWD of Isuzu Customers
 Competing for a piece of the pie
 Positioning (Gap)
 How big is the market (3Cs)


Marketing Plan Outline

1. What’s in the D-Max
2. Price Comparison
3. Communication Strategies
4. Where can I buy a D-Max?
5. Differentiation Strategy


Who buys a D-max?

 Demographics (35 – 44 yrs old, male,
Class B to A, married)
 Working professionals or self-employed
individuals like lawyers and doctors
 Customers look for durability, fuel
efficiency, reliability and a high resale
value


What so Isuzu customers
need?

Customers want to be recognized in the higher social classes

Safety inside the vehicle is the customers top priority

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler


What are the NWD of Isuzu
customers?
Isuzu customers need to be recognized for their
achievements and social status. They also need to feel
safe inside the vehicle that they have purchased

Customers prefer Isuzu because of the company’s
reputation for Diesel powered vehicles and
flexibility of being able to use the D-Max for business
Or personal use.

Customers demand excellent after sales service,
vehicle durability, great fuel efficiency and high
resale value

Who are competing for a
piece of the pie?
 Direct Competitors
 Nissan Navara
 Toyota Hi-Lux
 Mitsubishi Strada
 Indirect Competitors
 Second hand imports from Subic, Cebu and
Port Irene in Cagayan
 Customer considerations when choosing a brand
 Vehicle look
 Maintenance cost
 Fuel Efficiency
 Reliability
 Safety


Isuzu is a monopoly in the
3.0L 4x2 segment

Transmission/ 2.5L 4x2 2.5L 4x4 3.0L 4x2 3.0L 4x4
engine drive
AT
Mitsubishi Mitsubishi Isuzu
Isuzu
Toyota
Nissan Nissan

MT
Toyota Isuzu Mitsubishi Toyota
Isuzu
Isuzu
Nissan
Mitsubishi Nissan


Isuzu has to come out with a new
look for the D-Max to increase
market share

Functional Benefit Isuzu D-MAX Mitsubishi Strada Nissan Navara Toyota Hi-Lux

Durability

Reliability

Comfort

Safety

Connectivity

New Look

Prestige

Flexibility

Resale Value

Fuel Efficiency


Positioning of Isuzu is somewhat
similar to competitors
The D-max can greatly improve it’s market share if a new model
would be introduced. The current model has been around since
2007 and is old compared to competitors.

Isuzu and the other competitors market their pick-up variants
almost the same way. They emphasize look, resale value, durability
and fuel efficiency. Most of the pick variants consume 11-12 km/liter.

Isuzu is currently pushing it’s D-max as the tried and tested brand
of choice due to experience with the previous generations. Isuzu is
also stressing the flexibility of the D-Max either in Business or Personal
use.


Market size according to
competitors is 14B

D-MAX – 16% = 3B
Strada – 27% = 5B
Hi-Lux – 22% = 4.3B
Navara – 13% = 2.52B
Market size = 14.82B


References

http://business.inquirer.net/43543/isuzu-
keeps-firm-grip-on-truck-market

http://tsikot.com/mitsubishi-philippines-
eyes-12-growth-to-launch-mirage-
this-2012/


Based on Isuzu Data where
the D-max share is at 25%

Isuzu Philippines Corp. claims to have
25% market share of the Pick-up
segment at the end of 2011.

Average Isuzu D-Max price: 1.1M
Total Isuzu Unit Sales 2011: 2516
1.1M x 2516 = 2.76B
Total Market size = 2.76B/0.25 = 11.07B


Market size is 37B according
to customer data

Sample size: Monte Vista Subdivision
 300 houses
 61 pick-ups in the subdivision
 300/61 = 20% of families who own a pick-up
Total Number of Families: 18.5M
Target Social Class AB: 1%
Total Target Market size: 185,000
Pick-up market: 185,000 x 20% = 37,000
Average Pick-up price: 1M
Total Market Size: 37B


Market Size is estimated to be
at 17B
 Competitor data= 14.82B

 Company data = 11.07B

 Customer Usage data = 37B


How does it look compared to
competitors?


What’s inside the D-Max?
The 2012 Isuzu D-Max has been awarded with the “Best On-board
Entertainment” by the 2011 Auto Focus People’s Choice Awards.

The latest D-Max variant has a powerful 3.0-liter 4JJ1-TC iTEQ common-
rail diesel engine; durable ladder-type chassis; comfortable Flex-Ride
suspension system; 2-DIN audio-video head unit with navigation-ready
system; projector-type headlamps that provide 14% more illumination
than their ordinary counterparts; side-impact steel beams; dual front
airbags; ABS with electronic brake-force distribution; reverse camera and
sensor; two-tone (4×2 LS) and Elegant Black (4×4 LS) seat materials;
and a high-center console box.
From: www.isuzuphil.com


Price comparison with
competitors

% versus Hi- % versus
Isuzu Price Hi-Lux Price Lux Strada Price Strada

2.5L 4x2 2.5J 4x2 2.5 GL 4x2
LT MT SE 860,000 MT 838,000 3% MT 870,000 -1.15%
2.5 GLS
3.0L 4x4 3.0G 4x4 Sport V 4x4
LS AT SE 1,438,000 AT 1,433,000 0% AT 1,315,000 9%
Base and Top of the line models only


Isuzu aggressively uses sales
promotions with word of mouth
programs


Advertising and Sales
Promotions (All-in Schemes)


Isuzu D-Max Road Trip


Loyalty and Referral
Programs


Competitor Advertising
and Sales Promotions


Where can I buy?

 Where can you purchase the Isuzu
D-max?
 35 dealerships
 country wide branches and
satellite outlets


Isuzu differentiates itself by
being a monopoly in a particular
variant

 Low Cost Producer
 Supply and Distribution Leverage
 Differentiation
 Niche


SUMMARY


10 Step Marketing Plan for Isuzu Philippines Corp.

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