Marketing Strategy and SWOT Analysis of Suzuki

Moving from one place to another is pretty much impossible in this day and age. Especially long distances are not bearable without an automobile. There are so many car companies that create products that are different from others in their way. People’s preferences vary, and this industry is incredibly competitive. One of the companies that have gained a good amount of recognition and respect is Suzuki Motors. The latter was founded in 1909, and ever since then, it has reached many heights. This blog is going to analyze the marketing tactics that this company utilizes to stay successful.

First and foremost, we are going to look at the mission and vision statements of Suzuki Motors.

The mission statement of Suzuki Motors is as follows.

“Develop products of superior value by focusing on the customer. Establish a refreshing and innovative company through teamwork. Strive for individual excellence through continuous improvement.”

Any company should always take into consideration the needs of its customers. That is undoubtedly the main focus of Suzuki motors. When the customers are happy, everything else automatically falls into place.

But, of course, ensuring the happiness of customers would not be possible without the efforts that all the employees put into turning their vision into reality.

So many different departments work very hard to make sure that all the points in the checklist are filled. The products are awesome, the consumers and employees are both satisfied.

And, of course, always striving for advancement is another important point that companies should look into. It could be employees working on themselves to deliver their job more perfectly or releasing automobiles that are stronger than the last one. All of those different points are incredibly noteworthy to consider in order to achieve a successful brand.

The vision statement of Suzuki Motors is the following.

“To be recognized as a leading organization that values customers’ needs and provides motoring solutions with strong customer care.”

This vision statement is closely connected with the mission statement of Suzuki Motors. The customers are the main focus in both cases.

This company wants to make sure that customers can find the automobile of their desire in their stores. Finding the perfect match is quite difficult. Suzuki Motors wants to make it easier through excellent customer care. The incredible employees of Suzuki Motors store ensure that the latter becomes a reality.

Next up, we are going to unravel the positioning strategy of Suzuki Motors.

Humor is pretty much incorporated into this post. There is a Suzuki car parked inside, what looks like, a home. The windows show a scene of awesome palm trees. And in pink letter we see “Road trips are to Suzuki as walkies are to dogs.”

The comparison is hilarious. Once you take your dog out, you have to use a leash in order not to lose your ownership.

Likewise, road trips compliment Suzuki cars just as perfectly. “We call them drivies” is the caption. That is, obviously, for the purpose of rhyming words.

We see lots of hashtags which is a smart way to target people outside of Suzuki’s Instagram followers.

Now, what can we guess from this post?

First and foremost, the number one hint that we receive is enjoying times in life. Regular car trips may sometimes get boring. However, stepping up the game and going on a road trip is so adventurous that it boosts one’s mood.

The rhyming words express creativity or a sense of solving an obstacle. That is another hint that we get from this Instagram post.

These two are enough for us to realize that the archetype that Suzuki Motors belongs to is the Jester.

What do we know about the Jester?

Desire: to live in the moment with complete enjoyment

Aim: to have a wonderful time and lighten up the world​

Strategy: play, make jokes, be funny

These are the messaging levels of the archetype.

Level One: indifference, boredom

Level Two: life as a competition, fun

Level Three: intelligence used to fool others, get out of danger, and discover ways around barriers, transformation

Level Four: Life experienced in the moment, one day at a time

The Jester archetype might provide a good identity for brands:

• whose service allows individuals to belong or sense that they belong​
• whose operation enables people to have a useful time​
• with pricing that is average to low​
• created and/or marketed by a company with a fun-loving, laidback corporate culture​
• that demand to be distinguished from a self-important, overconfident, established brand

Next up, we are going to take a look at the SWOT analysis of Suzuki Motors.

Strengths

Distribution and reach: Suzuki has numerous sales offices in almost every state. It is backed by a strong distribution network that enables many customers to use their products quickly and hassle-free.

Cost structure: Suzuki’s low-cost design helps the company make products at low cost and sell them at low prices, making them affordable to customers.

Dealer community: Suzuki has strong relationships with dealers who provide consumables and focus on promoting and trainingtheirproducts.

Financial position: Suzuki is in a solid financial position with ongoingearnings over the last five years. It has cumulative retained earnings that can be used for future capital expenditures.

Return to capital expenditure: Suzuki has a history of producing positive returns on capital investments made in various projects.

Automation: Automation of various stages of production has enabled more efficient use of resources and cost savings. It also enables consistent quality of products and allows up or down production according to market demand.

Skilled labor force: Suzuki has invested heavily in employee development, resulting in the hiring of many talented and ambitious employees.

Entering new markets: Suzuki’s innovative team has enabled new product developmentand entry into new markets.Historically, it has been successful with most of its initiatives in new markets.

Social media: Suzuki has a strong social media presence with millions of followers on three of the most popular social media platforms: Facebook, Twitter, and Instagram. Customer retention rates are high on these platforms, and customer response times are short.

Website: Suzuki has a well-functioning, interactive website that attracts a lot of traffic and sales.

Product portfolio: Suzuki has a large product portfolio that offers a variety of categories of products. We offer many unique products that our competitors do not have.

Partnerships: Suzuki has established strategic partnerships with suppliers, dealers, retailers, and other stakeholders. This will allow them to use it as needed in the future.

Weaknesses

Research and development: Suzuki spends more on R & D than the average industry, but far less than the few industry players with significant advantages for innovative products.

High day sales inventory: The time it takes to buy and sell products is above the industry average. Suzuki accumulates inventories, incurring unnecessary costs.

Rented property: Most of Suzuki’s properties are rented rather than purchased. For this, Suzuki has to pay high rent in addition to her costs.

Low current ratio: The current ratio, which reflects the company’s ability to fulfill its short-term financial commitment, is below the industry average. This can mean that the company may face liquidity issues in the future.

Cash flow problems: Suzuki lacks a proper financial plan for cash flow, which leads to inadequate cash flow situations as needed. That results in unnecessary unplanned borrowing.

Integration: Suzuki’s current structure and culture have led to the failure of various mergers aimed at vertical integration.

Diversification in the workforce: Suzuki’s workforce comprises local workers and a small number of workers of other races. Lack of diversity makes it difficult for employees with different ethnic backgrounds to adaptto the workplace and leads to loss of talent.

Market research: Suzuki has not conducted market research within the served market for the past two years. As a result, customer needs may evolve over time, but make decisions based on data from two years ago.

High employee turnover rates: Suzuki has a higher turnover rate than its competitors. This means that more employees will quit their jobs. As a result, as more employees retire and participate, more employees will be devoted to training and development.

Quality control: Suzuki has a lower budget in its quality control department than its competitors. This can lead to inconsistencies and poor quality across different retailers.

Opportunities

Internet: The number of Internet users around the world is increasing. This means that Suzuki has the opportunity to expand its online presence. By interacting with customers using the internet.

E-commerce: There were new trends and sales growth in the e-commerce industry. This means that many people are shopping online. Suzuki has the potential to make money by opening and selling online stores.

Social media: The number of social media users is increasing all over the world. Three social media platforms: Facebook, Twitter, and Instagram, have the highest number of monthly active users. Suzuki may use social media to promote its products, interact with customers and collect feedback from them.

Technological developments: Technology offers many benefits to many departments. Suzuki can automate operations and reduce costs. This technology allows them to collect better customer data and improve their marketing efforts.

Population: The population is growing and is expected to grow at a positive rate over the next few years. This is beneficial for Suzuki as it increases the number of potential customers it can target.

Inflation: Inflation is low and will most probably remain low for the next two years. This is an opportunity for Suzuki, as input costs will remain low for the next two years.

Interest rate: Suzuki has the opportunity to embark on an expansion project that has a lower interest rate than the previous year and at a lower interest rate.

Green government drive: This allows Suzuki to sell Suzuki products to federal and state government contractors.

Transport industry: The transportation industry has flourished in recent years, showing potential for future growth. This is beneficial for Suzuki because it reduces transportation costs andoverall costs.

Tax policy: The government’s reduction in tax rates will benefit Suzuki as a small amount will be offset as tax.

Tourism: Tourism growth is beneficial to Suzuki as it attracts new potential customers, which enables them to gain market share.

Skilled workers: The increase in education and training through many institutions has increased the number of skilled workers in the country. This means that Suzuki could hire skilled workers and would spend less on training and development and save money.

Globalization: The progress of globalization does not limit Suzuki to its own country. It can expand its business to other countries, enter those markets and seize the opportunities within those markets.

Threats

Technological developments by competitors: New technology development by a few competitors in the industry poses a threat to Suzuki. Suzuki may lose some of its customers to competitors, which will reduce its overall market share.

Suppliers: As the number of suppliers decreases, the bargaining power of suppliers increases year by year. This means that Suzuki’s initial cost may increase.

Increasing competition: Competition within the industry is intensifying, and prices are falling. This could reduce profits if Suzuki adapts to price fluctuations and lose market share if it does not.

Exchange rate: Exchange rates are constantly changing, which affects companies like Suzuki that sell internationally while their suppliers are local.

Last but not least, we are going to reveal the segment that Suzuki has chosen to target.

This video is advertising the Suzuki Swift vehicle. We are following two couples that are competing in some game. They begin from the same location, but then each of them follows a different path.

They have so much fun during the process, as we can clearly guess from watching this video. They are driving in what seems like a weird logic. They go back and forth, park, and immediately start moving again, etc.

In the end, both of the cars arrive at the same place. And this is when it becomes evident that they were trying to draw the Swift vehicle on the map. Both of the teams succeeded in doing so.

Now, what can we gather from this ad?

First and foremost, through simple challenges like this, life becomes more exciting and fun. They simply devoted a day to having a good time.

Secondly, the family aspect is also another aspect that we can see. The people in the video are having an adventurous time but only with a loved one.

And lastly, they are driving an expensive car, which means that making a luxurious purchase here and there is something they do not mind doing.

At this point, it becomes evident that the segment that Suzuki Motors has chosen to target is Sharers.

Lifestyle and values:

Sharers make sure that every moment they live is fun. They love to incorporate adventure, risk, and variousness into their regular days. Life would be boring if they didn’t spice it up every day. Sharers love their families. They love to take care of their loved ones.

They especially value being around the house with family and friends. Hence why they decorate their environment in a fascinating and cozy way. This segment spends a lot of time in the kitchen at home.

They love to cook delicious meals for the whole family. However, these foods must also be healthy. Therefore, they do not hesitate to spend a little more on healthy, high-quality foods. Regular visits to various stores are an excellent pastime for this segment. They spend money pretty smartly. But if they really like something, they may inadvertently buy it.

Sharer’s career is about achieving joy and financial stability simultaneously. They measure their success with how much money they make. This segment has good physical health. That, in turn, contributes to their beautiful appearance and emotional stability. They have a fashionable way of dressing. A positive physical lifestyle is another important aspect of their life.

Attitude towards shopping:

From time to time, this segment buys something from luxury brands. They usually buy only high-quality products. This segment is a loyal brand consumer. But they love trying new brands sometimes too.

They do this not only because of their curiosity but also their enthusiasm for trying something new. Sharers generally buy a lot of stuff. It’s for fun entertainment. Finding new brands and products is an amusing way to spend some time. This segment appreciates spending time with their families, including shopping, for example.

It’s always good to wear something and get a second opinion before putting it in your shopping cart. If a Sharer wants to buy high-quality items, they will check out all possible discounts and special offers.

Other interesting facts:

• Enjoy repairing things, renovations, furniture building, etc.
• Love watching movies and occupying themselves with magazines
• Occasionally will read books about cuisine, fitness, gardening, and home
• Sometimes they will eat at fast food in cafes, or pubs
• If a cultural event grabs their attention, they will watch it on TV
• It is infrequent for Sharers to go on holiday. They would instead learn about amusing sights through media
• Enjoy staying informed about the buzz concerning celebrities
• Politics or economics are not interesting for them
• Value watching TV it is an escape from reality
• Are average radio consumers
• New technological devices make them uncomfortable because they have not stayed up-to-date on the development on technology

And that is a wrap on the “Marketing Strategy and SWOT Analysis of Suzuki Motors” blog. With this in-depth analysis, we tried to show you the story behind the company’s success. If this got you interested, make sure to check out our main website. We regularly come up with new fascinating content about various brands.