Degree

Master of Business Administration

Faculty / School

Faculty of Business Administration (FBA)

Advisor

Dr. Shahid Qureshi

Project Coordinator (Internal)

Dr. Nasir Afghan, Asad Ilyas, Salma Mirza

Project Coordinator (External)

Shamsuddin Shah, Zaid Tahir

Client

Pak SUZUKI Motors Ltd

Committee Member 1

Dr. Shahid Qureshi, Institute of Business Administration, Karachi

Project Type

MBA Research Project

Abstract / Summary

The Automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the noticeable list of the top automotive industries. However, in Pakistan it certainly is one of the biggest manufacturing and assembling industries having have players out of which three are dominant: 1. Honda 2. Pak Suzuki 3. Toyota 4. Daihatsu (under IMC) 5. Hyundai Pak Suzuki is clearly the market leader in Pakistan and has been doing well in terms of sales and enjoys an almost monopoly in the small cars segment. However, Pak Suzuki suffers from high levels of switching and low loyalty to the brand problem that allows customers to switch to other brands whenever the adequate funds are made available to them. The brand image of Suzuki over the years is of low priced manufacturer and thus the high income customers often prefer Toyota and Honda over Suzuki due to status consciousness and the perceived view of Suzuki being an inferior brand to its competitors in terms of quality. The Hypothesis for the research is listed below: 1. Pakistani customers are price sensitive. 2. Pakistani customers consider Suzuki a low priced brand. 3. Pakistani customers perceive Suzuki as low quality brand as compared to competition. 4. Pakistani customers believe that Suzuki is a brand for low to middle income class. The research is both qualitative and quantitative and covers both the individuals as well as corporate customers. The secondary research includes the competitive analysis in terms of offerings from the three major players in the industry as well the overall market analysis in terms of sales and market share to better understand Suzuki’s competitive position today. The primary research methodology includes focus groups with individuals and corporate customers, interviews with the dealers and survey research to test the above listed hypothesis in great detail and with good amount of reliability. The sample size of 150 is selected to represent the Pakistan’s market. The major objective of this survey is to gather valuable information about the buying behaviors, customers’ perceptions about Suzuki, and to test the respondents with trade off questions. Based on this extensive research and depending upon the acceptance or rejection of hypothesis, recommendations are to be made to the company regarding how to enter the elite market segment and increase loyalty and brand image.

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