A Marketing Plan on Hyundai PA Car


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A Marketing Plan on
Hyundai PA Car
A Latest addition in Hyundai’s fleet

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A Marketing Plan on Hyundai PA Car

  1. 1. A Marketing Plan onHyundai PA CarA Latest addition in Hyundai‟s fleetSubmitted To:Mizanur RahmanProfessorDeparment of MarketingFaculty of Business StudiesUniversity of DhakaSubmitted By :Md. Rezwan Ullah KhanRoll : 019 Sec : BMBA 10th BatchDepartment of Business StudiesFaculty of Business StudiesUniversity of Dhaka
  2. 2. Executive Summary This report will take you through the marketing plan for Hyundai Pa.„„Hyundai Pa will bridge the gap between Santro and Getz (other cars of Hyundai), giving customersmore options within the Hyundai family. Hyundai Pa will be competing with the new Zen Estilofrom Maruti. Hyundai is also working on a one-liter diesel engine for Pa, which proves to be a goodstrategy to take on Maruti & KIA; as Hyundai‟s biggest competitor in the small car section in ourmarket is Maruti Suzuki & KIA. It will be a true „Value-for-money‟ product and will be available invaried colors suited to the Indian market.The car at first glance resembles a styling pattern derived from Honda, Fiat, BMW and a few othermanufactures. Once inside the car the styling puzzle tends to become a lot less significant.The company‟s under-development compact car, code named project PA, will also be exclusivelymade and exported from India. Hyundai exports Santro and Accent models from India to us. Thereis a growing demand for small cars in Bangladesh and if the PA project works properly, it‟ll be ahuge success in Bangladesh also.
  3. 3. 1. Current Market SituationHyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, SouthKorea and is the second largest and the fastest growing car manufacturer in India. As we will haveto import the car from India, that‟s why these information are given. India is the nearest biggestmanufacturer of Hyundai cars & it emphasizes on producing smaller cars at cheaper rates but withgreater values. HMIL presently markets 20 variants of passenger cars in six segments. The Santroand Pa in the B segment, Getz Prime in the B+ segment, the Accent and Verna in the C segment, theElantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.In Bangladesh, around 3000-3500 cars are being sold in every month costing over BDT 400,000 toBDT 3.5 crore. This huge gap between the prices indicates that there is a huge demand of smallcars in our market and this market is growing very rapidly. And our Hyundai PA will fit into this gapby pricing its product at BDT 450,000. This will revolutionize the small car market and will befollowed by the other giants like KIA and Maruti.In the context of Bangladesh, we have smaller and narrower roads with heavier traffics to tacklewith. So we need a compact car that‟ll fulfill our needs of being fast and efficient at the same time.But not to forget, price is also a decisive matter in this case. Our car will fulfill all theserequirements and provide a greater value to the customers. Page : 01
  4. 4. 1.1 Features of Hyundai Pa Source : Hyundai Motors Bangladesh Ltd. Exterior Advanced Steering Wheel Molded roof Clear Head/Rear lining Lamp Rear Parcel Tray ORVM Front & Rear Tinted Glass Speaker Grill B/C Bumper Room & Map Radiator Grille Interior Lamp Side Reflectors Standard Floor Wheel Cover Console Waistline Molding Front & rear Door Mud Guard – Front & full size Arm Rest Rear Luggage Compartment side tray Seating Electronic trip Antisubmarine front meter seats Low fuel warning Seating capacity for 5 Seat Belt Warning adults Door & Tailgate Rear Seat double ajar warning folding Instrument Hand brake 60:40 split in rear Panel warning back rest Rear Seat Adjustable Head Rest Adjust for Front Seat – Inclination & Height Safety & Security Air Bags Seat Belts A/C & Heater Anti Braking system Power saving Child safety Lock Blower speed Comfort & Day Night inside rear Remote fuel lid Convenience view mirror opener Fog Lamps Cigar lighter Collapsible Steering Antena Collapsible Steering Page : 02
  5. 5. 2. SWOT Analysis2.1 Strengths  The best quality available  Better manufacturing facilities  Lowest price available  3 years warranty provided  Company goodwill2.2 Weaknesses  Change of price in manufacturing country  The fluctuation of foreign currency exchange rate  Other competitor KIA is also a Korean company2.3 Opportunities  The growing demand of small cars in Bangladesh  Maruti has a negative image in the mind of the consumer of Bangladesh2.4 Threats  KIA is doing well in the compact car segment  Very recently the tax on the imported car has been increased by the government Page : 03
  6. 6. 2.5 Advantages over the competitor (a comparison between PA and ZEN) Source : Hyundai Bangladesh Ltd. Specification Description Hyundai Pa Maruti Zen Overall Length (mm) 3690 3535 Overall width (mm) 1690 1495 Overall Height (mm) 1590 1405 Dimensions Wheel Base (mm) 2380 2335 Min.Turning radius(M) 5 4.9 Fuel tank Capacity (Ltr ) 45 35 No. of Cylinders 4 4 No. of valves 12 16 Valvetrain ( type ) SOHC SOHC Engine Displacement (cc) 1341 993 Max. Power (ps/rpm) 82.9/5500 60.79/6200 Max. Torque (Kgm/rpm) 11.8/3200 8.0/4500 McPherson strut McPherson strut Front Suspension with coil spring 3 link rigid axle, Suspension Rear Suspension Gas filled Shock coil spring, Gas Rear Shock absorber absorber, CTBA Shock absorber Gas Filled Gas Based Front Ventilated discs Discs Brakes Rear Drums Drums Tyre Size 155/80 R13 145/80 R12 Page : 04
  7. 7. 3. Marketing Strategy3.1 Objectives  Will be focused on the market purely  Product is chosen to meet the maximum need of the customers  To be a market leader in compact car segment  15% increase in sales within one year3.2 Target MarketsHyundai Pa‟s marketing strategy is differentiated marketing. Our primary consumer target is middleto upper income professionals who need true value for their money and comfortable ride in our cityconditions. Our secondary consumer target is university students who need style and speed at thesame time efficiency.Our other segment could be the business market where mid-sized corporate offices want to helptheir managers and employees by providing them a car for ease of transport. Then we can alsotarget for entrepreneurs and small business owners.Each of the four marketing strategies conveys Hyundai Pa‟s differentiation to the target marketingsegments identified above.3.3 PositioningUsing product differentiation we are positioning the Hyundai Pa as the most versatile, convenient,value added car model for above target market used. The marketing strategy will be focused onpromoting the car as an economic car for the next generation.3.4 StrategiesProductHyundai pa is fully loaded and will be sold with 3 years of warranty. We will also introduce adiesel/CNG/LPG version of Hyundai Pa in the near future.PriceHyundai Pa‟s base model will be introduced at showroom price of BDT 4.5 lakhs. This price reflectsa strategy of - 1) Attracting desirable channel partners 2) Taking market share from Maruti and KIA Page : 05
  8. 8. Distribution Manufacturer Importer Dealer The importer will collect the car from the manufacturer Then the importer will import the car to thy country and give it to the dealer The dealer will display the product through its showroom and promote it Page : 06
  9. 9. 3.5 Marketing Mix Product Price Marketing Mix Place PromotionProductFeatures:The all-new “Hyundai Pa” is fully loaded with a range of exciting new features. Its a perfectcomplement to your evolved tastes and lifestyle. And the best way to take your driving pleasure to abrand-new high.  European Styling.  Japanese Engineering.  Dream-Like Handling.The new Hyundai Pa is a generation different from Getz and Santro design. Styled with a clear senseof muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense that itis packed with energy and ready to deliver a dynamic drive.PriceHyundai is expected to take Maruti and KIA heads on with the pricing of their Hyundai Pa car. Afterlaunching cars for the masses since so many years, India‟s second largest automobile manufacturerHyundai is now targeting the premium segment of thy country and also Bangladesh with their latestmodel from the Hyundai‟s stable.This price range would practically rip apart Maruti‟s offering in Zen Estilo, which is priced at ahigher tag of Rs. 500,000. Hyundai is known for their extensive service network and brandreputation for making reliable cars that should get the customer‟s nod over their competition. Page : 07
  10. 10. PromotionRoad ShowsThe company can plan to stage road shows, to display vehicles in the pavilions during variouscollege festivals and exhibition. This car will appeal to youngsters more.Television advertisementsAdvertisements to promote and market our product will be shown on leading television channels.Major music and sports channels will promote and they will reach out to the youth will be promotedthrough Ntv, Etv, Bangla Vision, Channel I, ATN Bangla etc as it has more viewers.FM RadioFm and AM both band Radios are the medium with the widest coverage within the shortest of time.Studies have recently shown high levels of exposure to radio broadcasting both within urban andrural areas, whether or not listeners actually own a set. Many people listen to other peoples radiosor hear them in public places. So radio announcements will be made and advertisements will beannounced on the radio about the product features and price, qualities, etc.Print AdsDaily advertisements in leading newspapers and magazines will be used to promote the product.Leaflets at the initial stage will be distributed at shopping malls, university & office areas andvarious other locations. We could stick posters to the wall of the streets to promote it.Banners, neon signsHoardings, banners, neon signs will be displayed on road side hoardings beside all the busy roadsof Dhaka, Chittagong, Sylhet and the other major cities of Bangladesh.Booklets and pamphletsBooklets will be kept at car showrooms, retail battery outlets for the customer to read. Thesebooklets will provide information about our company; the products offered which suits thecustomers need accordingly.PlaceHyundai Motors Bangladesh Ltd.210A, Tejgaon I/A, Dhaka - 1208Phone:+ 880-2-988-1264Fax:+ 880-2-886-0073Email: info@hyundaimotorbd.com Page : 08
  11. 11. 4. Financial projectionThe pricing strategy would be like the following –The manufacturer cost for this car will be RS 150,000 (in India). The converted price will be BDT200,000 (in Bangladesh), then it‟ll be accompanied by the import cost and customs duty plus all theexpenses. The cost of the year-long advertising expenses and a profit margin must also be addedto this price. After all the adding, the math would look something like the following – Factory cost BDT 200,000 (+) Import Duty + Tax + transportation cost (+) BDT 10,000 (+) Profit margin 10% The sum would be around BDT 450,000(N.B. the import duty and taxes are fluctuating and recently been developing on a new scale, that‟swhy the percentages are not shown but the amount has been placed here by keeping the average inmind.)The promotion cost basically depends on the company. Here I‟ve planned a year-long advertisingpromotion for the car in different media including TV, billboards, banners etc. The cost ofpromotion is anticipated BDT 25,000,000; that‟ll add up to BDT 10,000 per car. Page : 09
  12. 12. Product Life Cycle Profits Negative Rising High Declining Sales Growth Maturity Introduction Decline Time Figure : Product Life CycleIn the introductory stage of the products life cycle, the profit will always be negative. Thecompanies eagerly waiting for money at the very beginning will be disappointed with this. Profitswill rise at the growth stage of the product and become high in the matured market. Profits willagain decline at the declining stage.The same will happen here for Hyundai Pa also. Hyundai will make its profit over the other Hyundaiproducts but not on this brand, at least not at the beginning. The profit will be gained at the growthlevel when the car will be accepted by the consumers and the sales will be rising very quickly. Page : 10
  13. 13. 5. CONCLISIONAutomobiles have become an indispensable part of our lives, an extension of thehuman body that provides us faster, cheaper and more convenient mobility everypassing day. Behind this betterment go the efforts of those in the industry, in the form of improvement through technological research. What actually lie behind this betterment of the automobiles are the opinions, requirements, likes and dislikes of those who use these vehicles. These wheeled machines affect our lives in ways more than one. Numeroussurveys and research are conducted throughout the world every now and then to reveal one or the other aspect of automobiles, be it about the pollution caused due to vehicle population in cities, or rising motor accidents and causes, vehicular technology, alternative medicine and so on. Page : 11