Amrit, Apurva


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Hyundai's marketing strategy in India

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Amrit, Apurva

  1. 1. Hyundai - A case study on its marketing strategies in India
  2. 2. Background <ul><ul><li>1947 </li></ul></ul><ul><ul><li>Only two players Ambassador (Hindustan Motors), Fiat ( Premier Motors) </li></ul></ul><ul><ul><li>GOI decision to keep car industry tightly protected. </li></ul></ul><ul><ul><li>Poor technological improvement because of restriction on foreign collaboration </li></ul></ul><ul><ul><li>1980 </li></ul></ul><ul><ul><li>The need of an affordable small car was felt </li></ul></ul><ul><ul><li>GOI founded joint venture with Suzuki (26% equity stake) and Maruti Udyog ltd (74% equity stake) </li></ul></ul><ul><ul><li>Maruti 800 launched in 1983 </li></ul></ul><ul><ul><li>1993 </li></ul></ul><ul><ul><li>Entry of domestic and foreign manufactures allowed </li></ul></ul>
  3. 3. The Indian Car Industry <ul><li>Late 1990’s </li></ul><ul><li>Ford Motors </li></ul><ul><li>GM </li></ul><ul><li>Toyota Motors </li></ul><ul><li>Daewoo Motors </li></ul><ul><li>Honda Motors </li></ul><ul><li>MUL’s market share fell to 53% </li></ul><ul><li>1983 </li></ul><ul><li>Maruti 800 </li></ul><ul><li>< 85% market share </li></ul><ul><li>1947 </li></ul><ul><li>Ambassador (Hindustan Motors) </li></ul><ul><li>Fiat </li></ul><ul><li>(Premier Motors) </li></ul><ul><li>High price, low quality </li></ul>
  4. 4. Hyundai <ul><li>South Korean company </li></ul><ul><li>Entered India through its subsidiary HMIL </li></ul><ul><li>Set up their manufacturing plant in Chennai on May 26, 1996 </li></ul><ul><li>Decided to enter India through new product, Santro, a B segment car </li></ul>
  5. 5. Hyundai’s diversification to India <ul><li>Threats </li></ul><ul><li>MUL had a dominating market share </li></ul><ul><li>Making people believe in the new brand </li></ul><ul><li>Opportunities </li></ul><ul><li>High demand of small cars with only MUL as a player in small car industry </li></ul><ul><li>Weakness </li></ul><ul><li>Korean cars were ranked below Indian cars by customers </li></ul><ul><li>Strengths </li></ul><ul><li>Proper market Research </li></ul><ul><li>Introduction of new small car </li></ul><ul><li>Establishing own plant </li></ul>
  6. 6. Santro <ul><li>HMIL’s first car </li></ul><ul><li>Priced at Rs 2,89,000 against Maruti Zen at 3,45,000 </li></ul><ul><li>75000 vehicles sold in a period of one year ( Apr,1999- Mar, 2000) </li></ul><ul><li>Made HMIL second largest company after MUL </li></ul>
  7. 7. Marketing Strategies for Santro <ul><li>Positioning and Targeting </li></ul><ul><ul><li>Targeted the B segment </li></ul></ul><ul><ul><li>Small car with many additional features and low prices </li></ul></ul><ul><li>Marketing Mix </li></ul><ul><ul><li>Pricing based on consumer perceptions </li></ul></ul><ul><ul><li>3 versions of product with additional features </li></ul></ul><ul><ul><li>Elaborated process to select dealers and place of sale </li></ul></ul><ul><ul><li>Promotion done by Media Advertisements by celebrities like SRK </li></ul></ul>
  8. 9. Repositioning Santro-2002 <ul><li>Required due to launch of Maruti Alto in 2000 </li></ul><ul><li>Targeting and Positioning </li></ul><ul><ul><li>Targeted the age group 25 to 30 </li></ul></ul><ul><ul><li>Repositioned as sunshine car </li></ul></ul><ul><ul><li>Marketing Mix </li></ul></ul><ul><ul><li>Fresh commercials with Preity Zinta and SRK </li></ul></ul><ul><ul><li>New Variant- Santro Xing </li></ul></ul><ul><ul><li>Decided to tap the rural market – conducted road shows </li></ul></ul><ul><ul><li>Signed agreement with PNB for financing its cars </li></ul></ul>
  9. 10. Launch Of Accent Threat Tough competition from Maruti Esteem and Ford Ikon Opportunity Leading the Market of C segment cars Weakness New entry in C segment Strength Priced below Mitsubishi Lancer with same quality and technology
  10. 11. Factors for success of Hyundai <ul><li>Differentiation in Santro as compared to other B class cars available in India </li></ul><ul><li>Lower cost </li></ul><ul><li>Proper market survey </li></ul><ul><li>Tapping the right market and the need </li></ul><ul><li>Closer to the customer </li></ul>
  11. 12. Getz <ul><li>No, Getz will not affect the sale of santro because it has a different target market and moreover there is a difference of more than 1.5 lacs in the prices </li></ul><ul><li>Hyundai’s strategy: Produce one car each year is to maintain their cost leadership strategy in each segment and to put their car in each segment to compete with the other brands </li></ul>
  12. 13. Present Scenario <ul><li>Products- Santro, Getz Prime, Accent, Verna,i-10, i-20, Tucson, Sonata </li></ul><ul><li>Hyundai in news </li></ul>Hyundai Motor Company, which holds around 50 percent market share in Korea, announced it has sold a total of 250.995 new vehicles at home and abroad. The number represents a 23 percent increase from the same month a year ago.
  13. 14. Thank you <ul><ul><ul><ul><ul><li>Amriteshwar Bhullar </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Apurva Miglani </li></ul></ul></ul></ul></ul>