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How Suzuki Integrated the Voice of the Customer to Create an All-New Flagship Model

Redefining the BrandAn Auto Product Consulting Services Case Study

December 2010

How Suzuki Integrated the Voice of the Customer to Create an All-New Flagship Model: Redefining the Brand

© 2010 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. 1

The company undertook a monumental effort: to introduce an all-new flagship model, in an all-new segment for the brand, on an all-new platform, to be built in an all-new factory by all-new workers.

OverviewLaunching a new model in today’s market has its challenges—just ask any automaker. When that new model is expected to redefine a brand, as well as serve as the flagship of the lineup, the degree of difficulty increases exponentially.

The consulting services of J.D. Power and Associates assist clients in developing competitive advantages by helping them understand and integrate the Voice of the Customer into their strategic planning and operational activities. The methodologies employed are practical and proven, yielding measurable results and providing clients with assistance in developing and refining processes and products, from concept through sales and service.

The Challenge: Redefining a BrandNot satisfied with its market position as a low-volume manufacturer of entry-level models, Suzuki Motor Corporation was looking to redefine its brand. To accomplish this goal, the company undertook a monumental effort: to introduce an all-new flagship model, in an all-new segment for the brand, on an all-new platform, to be built in an all-new factory by all-new workers.

The challenge for Suzuki’s product planning, design, and engineering teams was to build the all-new Kizashi—which it defined as a sporty midsize sedan—to compete from a vehicle-quality perspective with some of the highest-performing models in the industry, and in one of its most competitive segments. Adding a degree of historical significance, the launch was to coincide with the company’s 100th anniversary in the fall of 2009.

© 2010 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. 2

How Suzuki Integrated the Voice of the Customer to Create an All-New Flagship Model: Redefining the Brand

The Solution: Integrating the Voice of the Customer into Product DevelopmentThe overall financial result of a product not delivering a solid value proposition, particularly in today’s economy, is severe. J.D. Power and Associates has extensive knowledge, experience and expertise with regard to understanding consumer’s product expectations—and more importantly, how to refine the development of the product so as to more effectively and accurately satisfy these expectations.

Suzuki contracted with J.D. Power and Associates to assist in the development of its new flagship model, leveraging the company’s experience with and expertise in helping original equipment manufacturers (OEMs) launch new models across the globe.

The first step for J.D. Power was to design a Product Development Project (PDP) that would provide Suzuki with the necessary knowledge of US market requirements to develop, help validate, and support the launch of the Kizashi with high levels of quality and customer satisfaction. The PDP, conducted during a 3-year period (2006-2009), provided an effective method for identifying and integrating Voice of the Customer (VOC) requirements into key development decisions, actions, and processes.

Consultants from J.D. Power met with personnel at Suzuki headquarters in Brea, California and Hamamatsu, Japan, on a monthly basis to:

• Develop an accurate understanding of customer requirements

• Determine whether current planning for product targets, contenting, and execution was effectively aligned with these requirements

• Develop appropriate actions to improve vehicle components and systems where they did not align with these requirements

In summary, what J.D. Power provided was the capability to more effectively see and achieve customer satisfaction targets through the development process, resulting in: improved product coordination and strategy; quicker time to market; reduced costs; and increased demand for the product.

In short, J.D. Power consultants provided Suzuki with the VOC information, market understanding, and the experience necessary to effectively reduce the gap between engineering-defined variables and customer expectations.

The overall financial result of a product not delivering a solid value proposition, particularly in today’s economy, is severe.

© 2010 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. 3

How Suzuki Integrated the Voice of the Customer to Create an All-New Flagship Model: Redefining the Brand

The Results: Successful Launch Helps Redefine Brand ImageBy integrating the Voice of the Customer into the design of the Kizashi, along with a laser-like focus on vehicle quality, Suzuki successfully launched the new model in the fall of 2009 with virtually universal acclaim among members of the automotive media. The Kizashi also made the short list for the “North American Car and Truck of the Year” award that same year.

Moreover, the Kizashi made a favorable impression on new owners, as evidenced in their responses to J.D. Power automotive surveys, helping Suzuki achieve significant gains in both vehicle quality and appeal.

In the J.D. Power and Associates 2010 Automotive Performance, Execution and Layout (APEAL) Study,SM which examines how gratifying a new vehicle is to own and drive, the Kizashi’s strong launch performance helped Suzuki achieve the distinction of the most-improved brand in the industry in 2010, with a 35-point increase in score to 750 (on a 1,000-point scale) from 715 in the 2009 study. (Figure 1) The Kizashi also contributed positively to Suzuki’s overall score in the J.D. Power and Associates 2010 US Initial Quality StudySM (IQS), which measures owner-reported problems with their new vehicle during the first 90 days of ownership.

APEAL Score Change by Brand, 2010 vs. 2009

-120 -100 -80 -60 -40 -20 0 20 40 60 80 100 120Index Difference

SuzukiChevrolet

SubaruLand Rover

KiaFord

GMCPorscheMercury

AcuraBMWVolvoBuick

Mercedes-BenzJeep

LincolnMitsubishi

35 25 17 14 13 9 8 8 6 4 2 2 1 1000MINIHyundaiMazdaJaguarNissanScionChryslerLexusVolkswagenToyotaHondaAudiDodgeInfinitiCadillacN/A

(1) (3)

(4) (5) (5)

(8) (9)

(10) (10)

(11) (12)

(14) (23) (23)

(34) Ram

Worse than 2009 Better than 2009

Figure 1

Denotes a statistically significant difference vs. 2009 at 90% confidence level, excluding small sample models.Source: J.D. Power and Associates 2010 Automotive Performance, Execution and Layout (APEAL) StudySM

© 2010 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. 4

How Suzuki Integrated the Voice of the Customer to Create an All-New Flagship Model: Redefining the Brand

In addition to its strong performance in J.D. Power and Associates’ automotive studies, the new Kizashi has performed well in surveys conducted by other independent research companies that track vehicle satisfaction and consumer appeal. Additionally, in a nod to the significance of the all-new Suzuki model, several industry-leading consumer automotive publications have added the Kizashi to their long-term test fleets in order to evaluate the model and report their impressions to the buying public.

Clearly, both owners and the media have been duly impressed with the new Kizashi.

ConclusionBy fully integrating the Voice of the Customer into the development of the Kizashi, Suzuki has greatly improved its brand quality and appeal scores, garnered positive attention from the automotive press and consumers alike, and made great strides in redefining its brand in the United States.

© 2010 by J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

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For more information about J.D. Power and Associates automotive consulting products and services, please contact:

Phil Pincus Vice PresidentVehicle Consulting Research(714) 621-6259Phil.Pincus@jdpa.com

The team at J.D. Power and Associates offered exceptional professionalism and essential data to guide Suzuki engineers in delivering a vehicle that achieved our highest IQS rating ever for an all-new model.

— Steve Younan, Director of ASMC Product Planning and Marketing

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