Hyundai entered the Indian car market in 1996 by establishing a manufacturing plant in Chennai. Their first car in India was the Santro, a small B segment hatchback priced lower than competitors. Hyundai used strategic marketing for the Santro, including targeting younger consumers and promoting through celebrities. The Santro was very successful, making Hyundai the second largest car company in India. In response to new competitors, Hyundai later repositioned the Santro and launched new models in different segments, allowing them to grow their market share in India.

1. Hyundai
- A case study on its marketing
strategies in India

2. Background
1947
 Only two players Ambassador (Hindustan Motors),
Fiat ( Premier Motors)
 GOI decision to keep car industry tightly protected.
 Poor technological improvement because of restriction
on foreign collaboration
1980
 The need of an affordable small car was felt
 GOI founded joint venture with Suzuki (26% equity
stake) and Maruti Udyog ltd (74% equity stake)
 Maruti 800 launched in 1983
1993
 Entry of domestic and foreign manufactures allowed

3. The Indian Car Industry
1947 1983 Late 1990’s
Ambassador Maruti 800 Ford Motors
(Hindustan < 85% market GM
Motors) share Toyota Motors
Fiat Daewoo Motors
(Premier Motors) Honda Motors
High price, low MUL’s market
quality share fell to 53%

4. Hyundai
 South Korean company
 Entered India through its subsidiary HMIL
 Set up their manufacturing plant in Chennai
on May 26, 1996
 Decided to enter India through new
product, Santro, a B segment car

5. Hyundai’s diversification to
India
Strengths Weakness Opportunities Threats
Proper Korean High demand MUL had a
market cars were of small cars dominating
Research ranked with only MUL market
Introduction below as a player in share
of new small Indian cars small car Making
car by industry people
Establishing customers believe in
own plant the new
brand

6. Santro
 HMIL’s first car
 Priced at Rs 2,89,000 against Maruti Zen at
3,45,000
 75000 vehicles sold in a period of one year
( Apr,1999- Mar, 2000)
 Made HMIL second largest company after
MUL

7. Marketing Strategies for Santro
 Positioning and Targeting
 Targeted the B segment
 Small car with many additional features and low
prices
 Marketing Mix
 Pricing based on consumer perceptions
 3 versions of product with additional features
 Elaborated process to select dealers and place of
sale
 Promotion done by Media Advertisements by
celebrities like SRK

9. Repositioning Santro-2002
 Required due to launch of Maruti Alto in
2000
 Targeting and Positioning
 Targeted the age group 25 to 30
 Repositioned as sunshine car
Marketing Mix
 Fresh commercials with Preity Zinta and SRK
 New Variant- Santro Xing
 Decided to tap the rural market – conducted
road shows
 Signed agreement with PNB for financing its cars

10. Launch Of Accent
Strength Weakness Opportunity Threat
Priced below New entry in Leading the Tough
Mitsubishi C segment Market of C competition
Lancer with segment from Maruti
same quality cars Esteem and
and Ford Ikon
technology

11. Factors for success of Hyundai
 Differentiation in Santro as compared to
other B class cars available in India
 Lower cost
 Proper market survey
 Tapping the right market and the need
 Closer to the customer

12. Getz
 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
 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

13. Present Scenario
 Products- Santro, Getz Prime, Accent,
Verna,i-10, i-20, Tucson, Sonata
 Hyundai in news
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.

14. Thank you
 Amriteshwar
 Apurva