Suzuki's Quiet Success Story

Sales for the small automaker are up 30% for the year and the company has ambitious plans to continue its U.S. growth

by Marty Bernstein

In the domestic nameplate marketplace where any percentage of growth, even a fractional increase, is a defining moment of exultation, excitement and exuberance, Suzuki Motor Corporation's 30 percent sales growth this year has to be envied.

Okay, so it began from a relatively small base of about 85,000 vehicles, but the Japanese company—GM owns 3 percent of the company's stock, and Suzuki owns 0.27 percent of GM stock and 14.9 percent of GM Daewoo Automotive and Technology—gives it a unique opportunity to optimize use of powertrains, parts and components and to share in the development of future products. Nice dividend, right?

As a result of its current sales success—it was one of the first 100,000 mile multi-year warranty brands—Suzuki has ambitious marketing plans to take the brand and its 520+ dealers in the U.S. to new heights. The base will be some recently launched vehicles and a most unique and unusual marketing and advertising approach.

At the recent introduction of the new XL7 and SX4 in California, I spoke briefly with Gene Brown, the energetic and enthusiastic new vice president of marketing and public relations for Suzuki. I then continued our discussion last week in a telephone conversation covering sales and the brand's new marketing and advertising campaign.

A graduate of Williams College in Massachusetts, Brown was already working in the automobile business when he decided to return to college for a graduate degree. So, he also has an MBA from the University of Chicago with an academic marketing concentration.

With this sheepskin in hand he returned to the car business at Ford as an intern, which led to a career of over 8 years in product planning and brand management at Ford. Prior to joining Suzuki earlier this year, he was truck marketing manager at Nissan.

MB: Congratulations on nine consecutive months of sales increases

GB: Thank you. We're very pleased and believe we're on kind of a roll.

MB: Nine months seem to be more than just "kind of a roll"—Gene, how high is up? What are your corporate goals, hopes and expectations?

GB: We'd like this to be our first year as a six digit automaker. Basically we'd like to break the 100,000 unit barrier for the first time in our history.

MB: You're certainly making waves and a lot of buzz around the country with the increases this year. Can you sustain this growth?

GB: Last year (2005) was a record for us with 82,101 Suzuki automobiles sold, which is the best we've done since 1985. If we break the 100,000 level this year, it would be a solid record for us and start to put us in the next league. It's still small automotive volume in the scheme of things, but would be very nice for us.

MB: You mentioned a new ad campaign using Suzuki's motorcycle heritage during the La Costa meeting, but didn't show anything. I had a sneak-peak while working out this morning when I saw one of the new print ads with a motorcycle shadow as part of the graphic. Tell me something about the thinking behind this campaign.

GB: First, let's take a step back. Then, you'll realize, given our relatively modest volume in the industry, we're not, by any stretch, the best known car company out there. In fact, there are a lot of people who don't think of us at all when they're thinking about buying a new car.

MB: Is there a but?

GB: But the flip side of that is we are extremely well known—and in a very positive way—for motorcycles. Certainly, we have other products like outboard motors and so on, but its Suzuki's motorcycles that we are best known for in the U.S.

MB: How did you approach using the motorcycle influence concept in the advertising?

GB: We did a lot of work to understand where exactly people saw the connection between those brands and to what extent it was a positive connection that didn't stray too far into motorcycle territory to make sense for an automotive ad.