The Marketing mix of Isuzu analyses the 4Ps of Isuzu, which includes the Product, Price, Place, and Promotion of Isuzu. Isuzu is a public company of Japanese origin. It is associated with the manufacturing sector of the automobile industry. Its principal activities include selling, marketing, and producing diesel engines and commercial vehicles. The company was founded in 1916, but it came into being in 1934 when it was renamed Isuzu.
In 1971, Isuzu signed a capital agreement with another automobile giant, General Motors. It has targeted small industries, the mass market of the upper class and upper-middle-class individuals, and logistic companies as its potential customers. It faces direct competition from the following companies-
- Ashok Leyland
- MAN
- Tata Motors
- Yanmar
About Isuzu
- Industry: Manufacturing
- Founded: 30 March 1934
- Headquarters: Yokohama Gate Tower, Nishi-ku, Yokohama, Japan
- Area served: Worldwide
- Key people: Masanori Katayama, (Chairman, CEO & Representative Director) and Shinsuke Minami: (President, COO & Representative Director)
- Number of employees: 8,172
Table of Contents
Isuzu Product Strategy
The commercial market for Isuzu vehicles has spread globally, primarily focusing on constructing diesel-powered buses and trucks. Therefore, it has become a significant manufacturer of heavy-duty and medium trucks.
Isuzu, known primarily in international markets for its automotive products, has a diverse product mix that caters to various segments in the vehicle market.
The new Product Mix of Isuzu in 2023 is as follows (Source).
- Light Commercial Vehicles (LCVs): Isuzu is well-known for its light commercial vehicles, including utility trucks and pickups. These vehicles are famous for their durability, reliability, and efficiency, catering to businesses and consumers.
- Heavy-Duty Trucks: A significant part of Isuzu’s product line includes trucks. These are designed for industrial and commercial use and are known for their robustness and capability to handle large cargo loads.
- Buses: Isuzu manufactures school buses, public transport buses, and coaches. These buses are designed for safety, comfort, and fuel efficiency, catering to the public and private transport sectors.
- Diesel Engines: Besides vehicles, Isuzu is renowned for its diesel engines. These engines are used in various applications, including in the marine, industrial, and automotive sectors. They are known for their reliability and efficiency.
- Pickup Trucks: Isuzu’s range of pickup trucks, like the Isuzu D-Max, is popular in many markets, especially Southeast Asia, Africa, and Australia. These pickups are appreciated for their utility, comfort, and off-road capabilities.
- Parts and Accessories: Isuzu also offers various vehicle parts and accessories. This includes genuine parts for repair and maintenance and accessories for customization and enhancement of vehicle functionality and aesthetics.
- Services and Solutions: Beyond physical products, Isuzu provides various services and solutions, including vehicle leasing, financing, and after-sales services. These services aim to enhance customer experience and ensure long-term customer loyalty.
Isuzu Place Strategy
Isuzu is an international corporation with its headquarters based in Tokyo, Japan. It has subsidiaries and joint ventures with companies like Turkey, Russia, China, Malaysia, Indonesia, Philippines, South Africa, Taiwan, India and Vietnam.
Isuzu has manufacturing and assembling facilities in Hokkaido, Tochigi, and Fujisawa. The market presence of Isuzu vehicles is seen mainly in places like Africa, Asia, the United States, Australia, and the United Kingdom. Isuzu has a widespread distribution network includes channels like dealerships, outlets, and countrywide branches. Its vehicles are readily available via showrooms situated at strategic places.
Here’s the place strategy of Isuzu.
- Global Network of Dealerships and Service Centers: Isuzu has established a comprehensive network of dealerships and service centers worldwide, ensuring easy accessibility for customers. This global presence is crucial for providing sales support and after-sales services, reinforcing brand reliability.
- Strategic Location of Manufacturing Units: Isuzu strategically places its manufacturing units in critical regions worldwide. This facilitates more accessible and cost-effective distribution and allows the company to meet regional market demands more efficiently.
- Collaboration with Local Partners: In many markets, Isuzu collaborates with local automotive companies. These partnerships help adapt their vehicles to local preferences and regulations and establish a more robust local market presence.
- Online Presence and Digital Platforms: Recognizing the importance of digital reach, Isuzu maintains a robust online presence. Their websites and digital platforms provide comprehensive product information, dealer locator tools, and online customer service, catering to the digitally savvy customer base.
- Focused Presence in Commercial Vehicle Segments: Isuzu primarily targets markets with a high demand for commercial and utility vehicles. They focus their placement strategy on regions with a significant requirement for robust and reliable commercial transportation solutions.
Isuzu Pricing Strategy
Price is one of the significant aspects of any organization, and one has to consider several aspects before adopting a suitable policy. Isuzu has been deemed to have various factors like the economy of a place, world market, demand, supply, prices of its competitors, and actual cost before determining the price factor.
It has ultimately adopted a value-added pricing policy for its qualitative products by charging mid-premium prices. As it faces lots of competition from rival companies, it has maintained a competitive price range so customers do not lose their loyalty to the Isuzu brand. The prices of its consumer vehicles are nearly the same as those of its competitors, giving them intense competition.
Here’s the pricing strategy of Isuzu.
- Value-Based Pricing for Durability and Reliability: Isuzu sets its prices based on the perceived value of durability and reliability, which are the hallmark traits of its vehicles. This approach appeals to customers, prioritizing long-term performance and low maintenance costs over initial price.
- Competitive Pricing in Commercial Segments: In the commercial vehicle segment, Isuzu adopts competitive pricing to match or slightly undercut its competitors. By doing so, they balance quality and cost, making their offerings attractive in a highly competitive market.
- Premium Pricing for Specialized Models: For specialized models, particularly those with advanced technology or higher specifications, Isuzu employs a premium pricing strategy. This reflects these vehicles’ additional value in performance, comfort, and technological advancements.
- Geographic Pricing Strategy: Understanding the diversity of the global market, Isuzu employs a geographic pricing strategy. Prices vary based on local market conditions, economic factors, and customer purchasing power, ensuring relevance and competitiveness in different regions.
- Cost-Plus Pricing for Parts and Services: Isuzu likely uses a cost-plus pricing model for parts and services. This ensures that customers receive genuine, high-quality products and services at a fair price, contributing to the overall brand perception of reliability.
Isuzu’s pricing and marketing strategy is a well-balanced mix, aligning with its reliability and quality brand identity. It also considers the market competition, geographical factors, and the diverse needs of its global customer base.
Isuzu Promotion Strategy
Isuzu has a strong marketing strategy to promote its products internationally. It has used an aggressive policy for sales promotion that includes mouth publicity and catchy and distinctive ad campaigns shown on several popular television channels. The company has also advertised via hoardings placed in popular and populated areas to gain maximum coverage. Ads are placed in magazines and newspapers to inform customers of products and recent happenings. Its promotional incentives include referral and loyalty programs.
It is determined to keep its customers happy and has introduced several schemes. Its consumer vehicles like the Isuzu MU-X and Isuzu D-max come with a 5-year warranty, 5-year complimentary roadside assistance, three years of servicing with capped-price options, personalized driving reports, and servicing with genuine parts at its customer service centers. A movie titled Spy Kids had Trooper and Isuzu Axiom to promote Isuzu in the mass market. The company has a commercial service called vehicle telematics for tracking and monitoring operations of commercial vehicles in Japan by using GPS tracking devices.
Some Recent Video ads and Print ads for Isuzu are:
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