ADVERTISING STRATEGIES USED BY MARKETERS INTHE AUTOMOBILE SECTOR
The aim of the marketing strategy is to use advertising as wellas other tools to maximize sales.Advertising is a tool which can attract the prospectivecustomers to a product or service.Advertising strategies are part of overall marketing strategieswhich also include public relations , incentives, word of mouthetc.Advertising stimulates demand, develops brand preference, cutscost and also acts as a competitive weapon.
It involves an adequate mix of various typesof advertising like, competitive, persuasive,informative to gain attention of consumersand initiate purchase.Companies rely on these strategies topersuade consumers to buy their products.
The Indian automobile industry is the tenth largest in the world with anannual production of approximately 2 million unitsIndian automobile industry is involved in design, development,manufacture, marketing , and sale of motor vehicles. Due to fierce competition among the competitors in the automobilesector advertising strategies are to be made with caution .
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiaryof Hyundai Motor Company (HMC), South Korea and is thelargest passenger car exporter and the second largest carmanufacturer in India. HMIL presently markets 8 models of passenger cars acrosssegments. The A2 segment includes the EON, Santro , i10 andthe i20, the A3 segment includes the Accent and the Verna, theA5 segment includes the Sonata Transform and the SUVsegment includes the Santa Fe.
• The Hyundai i10 is a 5-door hatchback subcompact produced by the Hyundai Motor Company.• It was launched in October 2007, replacing the Hyundai Atos in some markets.• The i10 is produced in India at Hyundais Chennai plant for the domestic and export markets.• It is positioned near the lower end of Hyundais hatchback subcompact range (above the Hyundai Eon)
Segmentation of the auto industry is primarily customer driven. Itevolves as manufacturers model their products and brandpositions according to customer profiles.Keys factors in advertising strategies Hyundai Motor India Limited(HMIL)•Style and Power •Goes along with Sports (Mainly Football World cup)•Concentrate on brand Ambassadors
Main campaign objective of this advertising campaignwas to announce the launch of the new car; it wassupposed to be the most desirable car in the segment.They wanted to capture a large market share in thealready existing market segment.But they had their target set since it catered to the youthof the country.
Geographical- the target has been the entire country with nospecific cities embattled. The same advertisement campaign hasbeen used all throughout the country.Demographic- the target has been the youth of the country. Thetargeted age group has been from 18 to 30 years.Psychographic- it has targeted the new economy businesses likethe’ IT’ and the ‘BPO’ sector.Behavioural - it targets either singles or young couples withoutchildren, it targets the style conscious and innovative individuals .Itis for the early adopters that is the people who get on to the newtechnology first. It targets the upper middleclass youth (with anincome of above Rs. 3.5 Lac annually.
As the above figure shows the budget was divided into 2 phases:Launch and Post launchApproximately 22crores were spent during the launch phase andapproximately 15 cores were spent during the launch phase.Production cost was 1.2 cores.
The world premiere of the car was done in India .Usually these cars are launched in Europe at the autoshows, but this was one of the only cars launched inIndia.This was an informative advertisement. The creativeconcept they worked on was world premiere
Above the line: Through a channel mix targeting coregroup –youth. A channel mix comprising al lmain TV channelsincluding news, entertainment, music, movies like StarNetwork(Star Plus, Star One, Star News), Zee TV, Sony Networketc. were selected on the basis of affinity, time spent & loyalty. Sponsorships were taken to add to the visibility of the brand.Below the line :Posters and danglers were used to raiseawareness. Activities were conducted in the showroom as well.The activities conducted in the showrooms were mainly aroundtest drives, and to encourage people to check out the car.They did a promotion called Win the “ I “.’
TelevisionTrade/ Professional MagazinePoint-of-PurchaseRadioConsumer MagazineNewspaperPublic RelationsSales Promotion
The Hyundai i10(transformed ) was launched in October 2010 .Its marketing strategy , advertising strategy and sales promotion strategies were similar to its previous models.
i10 was revamped into the new Hyundai i10 transformedgiving it a sports car kind of a look.This was targeted mainly at the youth generation.Far-fetched advertising campaign by the company lead toits popularisation in the initial stage.Familiar ad on the print and electronic media.Shahrukh Khan as the brand ambassador-enhancedproduct appeal.
Companies engage in advertising of their productsto increase awareness and induce purchase .Hyundai has engaged in aggressive advertising ofthe i10 transformed .The various mix of advertising strategies includingprint, outdoor etc have enhanced sales and haspaved way for the product’s success in thecompetitive and grueling market !