School of BusinessMarketing ManagementMKT-302
Group Project On Sports Utility Vehicles (SUVs)
Prepared For: Mr. Rumman Hassan Date of Submission: 07 July, 2008
Prepared By Name ID
Md. Zahirul Quiyum Abdul Ali Razib 0610044
Letter of TransmittalTo, Rumman Hassan Course Instructor MKT-302 School of Business Independent University, Bangladesh Subject: Submission of project report on SUVs Competitive strategies. Dear Sir, We are very grateful to you for giving us such a wonderful opportunity for composing this project report on SUVs Competitive strategies. This assigned task has developed upon the interview we took and our knowledge based on this topic. We have tried our best within our limitations to make this report useful one and undoubtedly completing this paper was worth the effort. Finally we would be highly oblige if you overlook the minor errors in the report and earnestly hope that you enjoy reading this report as much as we did while composting it. Yours truly, Md.Zahirul Quiyum ID: 0620369 Abdul Ali Razib ID: 0610044
This project report might not be possible without taking some helps from the books and the internet. This report has been prepared by
group of 2 people as a part of the MKT-302 course requirement. It is prepared after having extensive surveying and analysis.We would specially like to thank: Ahsan Habib , Client Relation Manager, Great Wall, Tejgaon, Dhaka. Md.Shadijul Mosguk, Customer Care Manager, Mercedes-Benz, Tejgaon, Dhaka. Md. Asad-uz-zaman, MBA student, East West University. Arefin Hossain Mridul, BBA Student, IUB. For their valuable time and cooperation. Moreover we would like to mention the name of Mr. Rumman Hassan, our course instructor for his valuable time and suggestions as we have bothered him in time to time. Thats why our true gratitude goes to Mr. Rumman Hassan for his polite and kind cooperation and we hope him to have a very successful and smooth career in future.
Table of Content
Chapter 1 2 3 4 5 6 7 8 9 10 11
Contents Executive Summary Introduction Current Market Situation Prices of Different Companies SUVs Competitive Strategies for market leader Market Challengers Strategies Market Follower Strategies Market Nicher Strategies Conclusion Reference Bibliography
Executive SummaryA sport utility vehicle, or SUV is a generic specification for a passenger vehicle which combines the towing capacity of a pickup truck with the passenger-carrying space of a minivan or station wagon together with on or off road ability. Most SUVs are designed with a roughly square cross-section, an engine compartment, a combined passenger and
cargo compartment, and no dedicated trunk (i.e. a station wagon body). Most mid-size and full-size SUVs have three rows of seats with a cargo area directly behind the last row of seats. Compact SUVs and mini SUVs may have five or fewer seats. It is known in some countries as an "off-road vehicle" or "four-wheel drive", often abbreviated to "4WD" or "4x4", pronounced "four-byfour". However, not all SUVs have four-wheel drive capabilities. Conversely, not all 4WD passenger vehicles are SUVs. Off-road vehicles are a very different class of vehicles, being vehicles primarily built for off-road use. Although some SUVs have off-road capabilities, this is often a secondary role and they often do not have the ability to switch between 2WD, 4WD high gearing and 4WD low gearing. More recently, manufacturers have responded to buyers' complaints that SUVs "drive like trucks" and demands for "car like ride" with a new type of SUV. A new category, the crossover SUV uses car design and components for lighter weight and better fuel efficiency, but is no longer designed or recommended by the manufacturer for off-road usage or towing.
IntroductionThe world of business is moving more rapidly than ever. In order to sustain and keep pace with these fast-changing scenarios, marketing is one of the main weapons for the organizations. Marketing define the process by which companies create value for customers and build strong customer relationship in order to capture value from customers in return. Any business organization that wants to earn a profit
definitely needs to create a customer value and satisfaction through a lot of activities. These activities are a part of what marketing does for an organization. In an old fashioned thinking many might think a Car Manufacturer or Company doesnt need any kind of marketing but this certainly has changed in the 21st century. Especially the Car Companies have changed the way we used to think as they are always coming up with new ideas to improve customer satisfaction. Now days, the competition is so intense that if a Car Company needs to survive this competition they must have a very good marketing strategy. For example, how many Car Companies had provided or there were any company that provided online choice board to customers to design their own car as they want. But now a days many car companies are providing this type of services. They are providing post-purchase services, guarantees and warrantees on parts of the car, customizing car as the customer wants - sometimes the customer does not say to do but they do to make customer delighted. The classic example could be, a consumer bought a Mercedes-Benz car and when he was driving to home he turned on the radio. He found that channel number 1 was tuning to his favorite local news channel, next one was his favorite song channel, next one was his daughters favorite and so on. The service man tuned the car as consumers old car instead of asking to do that. That made the consumer delighted and he will talk about Mercedes-Benz favorably which would be a good advertisement for Mercedes-Benz. IN Bangladesh, there are many Car Companies and many of them make and sell SUV. A sport utility vehicle, or SUV is a generic specification for a passenger vehicle which combines the towing capacity of a pickup truck with the passenger-carrying space of a minivan or station wagon together with on or off road ability. And most of them have improved their SUVs and made new versions of those or
launched as new modeled SUVs. So to attract and sell to new customers and also to retain customers they need differentiated marketing strategies.
Prices of Different Companies SUVsNo 1 2 Company Nissan Mitsubishi SUV Murano, Pathfinder, Petrol, X trial Outlander, Nativa, Price Range (Taka)
3 4 5 6 7 8 9
Toyota Mercedes-Benz BMW Great Wall Honda KIA Lexus ( Side Brand of Toyota) Tata Maruti Suzuki Mahindra Land Rover Hyundai
Pazero, Pazero Sports Rav4, Fortuner, Prado, Land Cruiser GH M-Class, Renton X5, X3 Hover CR-V Sportage LX470, Harrier
6,500,000 3,500,000 to 9,000,000 23,000,000 to 30,000,000 15,000,000 to 25,000,000 900,000 to 2,600,000 2,5000,000 to 3,600,000 3,300,000+ 6,000,000+
10 11 12 13 14
Safari, Sumo Grand Vitara Bolero Range Rover Terratan
2,800,000+ 2,700,000+ 3,000,000+ 3,500,000+
Current Market SituationAt present, RANGS Limited (RL) is the market leader in the sales of Sport Utility Vehicles or SUV, made by Mitsubishi Motor Corporation (MMC). In the financial year 06-07, it has sold about 130 units of SUV, which worth approximately TK. 52 corer. In the field of SUVs, RANGS Limited face challenges mainly from Navana Motors- which brings Toyota made SUVs & Pacific Motors- which brings Nissan made SUVs.
Recently, though the government of Bangladesh is using Nissan Petrol, Nissan Xtrial, Nissan Pathfinder and various Nissans automobiles as a formal transport, recently Nissan has established itself as a closest competitor of Mitsubishi. And RANGS had very successfully captured the significant market share of the brand new vehicles in Bangladesh Defence sector; it has enjoyed solid profitability over the past few years, which enabled it to be financially strong company.
There are many other companies; Mercedes-Benz, BMW, Mahindra and so on; who make and sell SUVs. All of these companies are now concentrated on capturing market share of recondition market segments.
Competitive Strategies for Market LeaderAs a market leader in Bangladesh, Mitsubishi plays a important role in the industry and in their target markets. It has the largest market share of SUV market segment, and usually leads the other firms in price changes, new-product introductions, distribution coverage, and
promotional intensity. It has created a distinct position in consumes minds. The trend analysis of the last two financial years sale show that, the demand for SUV is again increasing after a set-back of the previous couple of years. So, there are enough opportunities to grab a bigger share of the SUV market. Strengthening the sales of pre-owned SUV can be a good strategy to target middle-class customers. This will also result in more visibility on the road. There is possibility of motivating and facilitating private customers to buy used Mitsubishi SUVs by arranging a used car sale initially every month then even as frequent as every week. If a Mitsubishi Club can be introduced, R.L. will be able to build a system to communicate with its customers, listen to them, respond to their requirement, learn the down side of its operation, make improvement, create brand loyalty etc, which should help to capture and retain substantial amount of market share of SUVs.
Mitsubishi SUV Sales Trend Year Units Sold 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 75 85 24 172 172 202 128 130
250At present the competition among the automobile dealers is very extensive. For the last 5 years the competition is growing steeply by introducing category wise vehicles with a very competitive price and services along with aggressive sales & marketing acti