American Suzuki Motor Corp. plans to spend an estimated $60 million on advertising in the fourth quarter to promote its redesigned 2007 XL7 crossover and new 2007 SX4 small hatchback.
That compares with about $40 million that the small Japanese company spent on measured media in the fourth quarter of 2005. It's nearly as much as the estimated $67 million Suzuki spent in all of 2004.
Suzuki's fourth-quarter budget is small by industry standards. But the company needs to spend more because the XL7 will compete with such heavy hitters as the Toyota Highlander. The SX4 is in a growing segment that includes the Honda Fit, Toyota Yaris and Nissan Versa.
“We don't expect to outspend anyone,” says Gene Brown, vice president of marketing for American Suzuki. “But we need to market more because still today in this country, we're not known as a company that makes cars. We're basically known as a motorcycle company.”
The SX4 replaces the Aerio wagon. It is equipped with a 2.0-liter four-cylinder engine making 143 hp. All-wheel drive is standard. The company began shipping the vehicle to dealers in late August. The base price is $15,594, including shipping.
The mid-sized XL7 goes on sale in November at a base price of $23,534, including shipping. The seven-seat XL7 is Suzuki's largest vehicle. It is powered by a 3.6-liter V-6 making 252 hp vs. the current 2.7-liter V-6 making 185 hp.
For the first time, Brown says, Suzuki will talk about its motorcycle heritage in its marketing campaign.
“There are a number of people who know we make bikes,” he says. “This gives us a huge advantage.”
Much of the budget is expected to be spent on cable network TV for the XL7. The campaign includes a brand spot featuring the XL7, Grand Vitara and SX4.
Suzuki mainly will use the Internet and magazines for the SX4 because it is targeting young people aged 18-30. Brown says young consumers are less influenced by TV advertising.
Suzuki and the SX4 also will partner with the Microsoft Xbox 360 computer game console to tour 36 college campuses this fall.
Along with the Grand Vitara, the XL7 and SX4 are key to Suzuki's goal to sell 250,000 vehicles in the United States by 2010.
The company is on track to crack the 100,000 sales mark in the United States this year for the first time. Through July, sales totaled 64,989, up 32.3 percent.
