Principles of

Marketing
G ro u p
#1
 Market Scenario
• Total market size in 2009 was 110,000
vehicles.
•
• Currently 4 OEMs are operating in Pakistan.
•
• PSMCL (Pak Suzuki Motor Company Limited)
is the market leader with 49% market
share, where Indus Motors is 39%, Honda
is 10% and Deewan Motors is 2%.
•
• As the over all market size increased this
year, PSMCL is projecting to achieve more
than 60,000 units of sales.
 Market Segmentation
Geographic Segmentation
•

• Pakistan
• Density: Urban Areas

• City Location Population Growth Rate

Karachi Sind 13,205,339 2.86
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 Sind 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 Territory 689,249 2.25
 Market Segmentation
Demographic Segmentation
•

• Age Group
Options Percentag
Family Size  
Options Percentag
0-17 years a e41% e
1 or 2 person a 6%
18-30 b 28%
31-45 c 16% 3 - 5person b 34%

46-59 d 9% 6 or 7 person c 31%

Over 60 e 6% 8 and above d 29%

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%
 Market Segmentation
Psychographic Segmentation
•

•
• Social Class: Upper Middle class and Lower
Upper class
• Lifestyle: Innovators, Achievers, Passionate
• Personality: Fun loving, Young, Exciting

•
Behavioral Segmentation
•

•
• Attitude: Those who feel young at heart.
• Benefits Sought: trendy, classy and easy to
handle.
• User Status: New users, potential users
 Target Market
• MARKET TARGETING STRATEGY
•

• Pak Suzuki uses a DIFFERENTIATED

MARKETING STRATEGY with separate
products for specific segments.
•
• During last 3 years in Pakistan, average
52 percent of the total cars were sold
in the hatchback category.
 Market Targeting
Target Segments
•

• Age Group
Options Percentag
Family Size  
Options Percentag
0-17 years a e41% e
1 or 2 person a 6%
18-30 b 28%
31-45 c 16% 3 - 5person b 34%

46-59 d 9% 6 or 7 person c 31%

Over 60 e 6% 8 and above d 29%

Annual Income of more than Rs . 5 lacs (monthly income = Rs . 40000 + )

 Target Market

• Therefore Target Market Segments are:

•
ü “YOUNG AT HEART” individuals.
ü Professionals and Executives.
ü People interested in “reconditioned” CBU
(Complete Built Unit).
ü Innovators - Trendy individuals who are
aspiring for CHANGE.
•
 SWOT Analysis
• STRENGTHS O P P O R T U N IT IE S
•
• Powerful Engine rare in
Hatchback Category.
•
• Stylish and Trendy •S u p p o rt o f G o vt. fo r lo ca lm a rke t
• Available in 7 different colors. a g a in st re co n d itio n e d C B U s.
• Largest 3S (sales, service & spare •S u zu kih a s th e la rg e st m a rke t
parts) sh a re
• Easy availability of spares.
• Better Handling. •G ro w in g D e m a n d fo r S m a lla n d
•
M id size C a rs

• WEAKNESSES
•

• According to potential customers,

high price for a Suzuki
hatchback.
• Not available in automatic
transmission.
• Bad image of Suzuki with respect
to durability.
• Failure of last two 1.3L Suzuki
THREATS
 Competitors
Competitors can be classified in terms of
•

Design Comparison Engine Capacity

•
•
•Toyota Vitz
•

•Toyota IST The Pak Suzuki is targeting the

•

•Hyundai Santro market between the 1000cc (with

•Suzuki Cultus hatchback) and 1300cc category,
however, the competition will be
stiff as this segment is already
crammed by two major
competitors
•
• Toyota Corolla (with 69
percent of market)
• Honda City (17 percent
share)
 Comparison in Design
Category
Features Swift Vitz IST
CC 1300 1000 1300
Model Latest Used / old Used / old
Price 1,049,000 .9 m – 1 m 1.05 m +
EPS X X
Immobilizer X X
ABS with EBD
Tire Size 185/60R15 155/80R13 185/65R15
Tumble-Folding Back Seat X X
Tilt Steering
Pollen Filter X X
Power Windows
Central Door Locking
Key less entry X X
CD + AM/FM tuner (2 Din with MP3)
 Comparison in 1300cc
Category
Toyota Corolla Honda City Suzuki Liana Suzuki Swift
1.3L GLi 1.3L RXI MT 1.3L

Rs. Rs. Rs. Rs. Rs. 1,049,000

Price 1,414,000 1,249,000
1,099,000
Displacement (cc) 1299 1300 1300 1300
Overall Length (mm) 4540 4395 4495 3755
Overall Width (mm) 1760 1695 1690 1690
Overall Height (mm) 1480 1480 1545 1525

Transmission Manual Manual Manual Manual

Fuel System EFI with VVTI EFi EFi Multipoint
Injection
 Marketing Strategy
•

• Positioning Statement
•

• For people who want fun and Enjoyment through driving experience
so SWIFT is the right choice for them.
•

•
Feel Young Drive Young
•

•
Marketing Strategy

4 P ’ s of Marketing
 Marketing Strategy
• Product
• As a product it is luxuries, cool, smooth and sporty in driving
powered by 1.3 L MPI Engine
• Features Swift

• CC 1300

Model Latest
•
Price 1,049,000

•
EPS

Immobilizer

ABS with EBD

Tire Size 185/60R15

Tumble-Folding Back Seat

Tilt Steering

Pollen Filter

Power Windows

Central Door Locking

Key less entry

CD + AM/FM tuner (2 Din with MP3)

 Colors
lky Silver White Graphite Grey

ed Aqua Blue Eminent Blu

Indica
Marketing Strategy
• Promotion
•

ABOVE THE LINE BELOW THE LINE

•

TV •
Posters

• Banners
Print Ad
•
Events
Radio Spot •
Direct Mail Shots

Hoardings Test Drive

Special Website Sales Training

 Marketing Strategy
• Place
•

• Manufacturing plant is situated at Pakistan Steel Industrial Estate, Bin

Qasim, Karachi.
• More than 70 3S dealers are located all over the country
•

•
 Marketing Strategy
• Price
•
Product Version Price
SWIFT Deluxe • 1049,000

•
•Pricin g is th e ke y: If th e p rice s in th e 1 3 0 0 cc se g m e n t
a re a n a lyze d , sh o w ro o m p rice o f To yo ta C o ro lla ( 1 . 3
G Li) is R s 1 . 4 1 4 m illio n fo llo w e d b y H o n d a C ity ( 1 . 3 L
M T ) R s 1 . 2 4 9 m illio n a n d Lia n a R s 1 . 1 m illio n .
•
•To p ro vid e a cu sh io n fo r S u zu ki S w ift 1 . 3 L , th e p rice o f
Lia n a is in cre a se d b y R s. 5 0 , 0 0 0 a n d C u ltu s V X Li
m o d e l h a s b e e n d isco n tin u e d .
 Marketing Strategy
• Price
•

•
Payment Details
Car Description: • Swift DLX
•
Cost Price: Rs. 1,049,000.00/-
Tenure: 5 Years
Initial Payment
Security Deposit: Rs. 209,800.00/- (20%)
Processing Fee: Rs. 4,000.00/-
Total: Rs. 213,800.00/-
Monthly Payment
60  Monthly Rentals of Rs . 24 , 507 . 00 /-   approx.