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A PROJECT REPORTON
MARKETING STRATEGIES OF HYUNDAI MOTORSINDIA LIMITED WITH FOCUS ON HYUNDAI
SANTRO
EXECUTIVE SUMMARY
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Indian Economy has undergone a radical transformation in the last three decades. The
discoveries and invention in various fields of life is perhaps being the reasons for this
transformation. The marketing strategy in India which was practiced in the olden
days has either been changed or been refined so as to adjust with this dynamic world.
If we consider the early years of development of our economy, It is observed that the
producers consumers as well as production and consumption is becoming more and
more complex and specialized.
The present emphasis is one matters of providing a complete comfort or status to
the customers every walk of life. In the light of the present marketing scenario,
through this project, How HYUNDAI MOTOR INDIA LTD. can increase its market
share in automobile industry emphasis on marketing.
Authentic marketing is not the art of selling what you make but knowing what to
make. It is the art of identifying and understanding customer needs and creating
solutions that deliver satisfaction to the customers, profits to the producers and
benefits for the stakeholders. - Philip Kotler
This Project report tries to take a look on various aspects on Marketing and study of
Marketing strategies adopted by Hyundai Motors India Limited (HMIL) with a
special focus on Hyundai Santro. We settled for HMIL because at the time of its entry
in Indian Market back in 2007, it was taken as another foreign car maker entering
Indian Passenger car market. But the way in which HMIL has achieved a constant
growth rate of around 30% in past 8 years and the way Santro has emerged as the
market leader in B-segment is all due to its fierce Marketing program. Hence adetailed study at the marketing strategies adopted by HMIL for Santro gives us an
excellent opportunity to apply our classroom learning in analyzing real life situations.
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TABLE OF CONTENTS
S.No. Topic
Chapter 1. Introduction - 1-9
Indian Automobile IndustryChapter 2. Hyundai Motors India Limited 14-20
An Overview Of The CompanyNew Milestones Awards And Recognition Product
Chapter 3. Research Methodology 21
Data Collection Sample Size Statistical Tools
Chapter 4. Analysis Of The Marketing Strategy With Focus To
Hyundai Santro
22-33
STPSegmentation, Targeting, Positioning Porter 5 Force Model SWOT Analysis Ps Of Hyundai Motor India Ltd. With Focus On Hyundai
Santro
Chapter 5. Findings And Analysis 34-42
Chapter 6. Recommendations 75-76
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Chapter 7. Conclusion 77
Questionnaire 78-79
References 80
Bibliography 81
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INTRODUCTION
INDIAN AUTOMOBILE INDUSTRY
A market is never saturated with a good product, but it is very quickly saturated with
a bad one. - Henry Ford
The automotive industry is one of the largest industries worldwide and in India as
well. The automotive sector is a vital sector for any developed economy. It drives
upstream industries like steel, iron, aluminium, rubber, plastics, glass and electronics,
and downstream industries like advertising and marketing, transport and insurance.
The automotive industry can be divided into five sectors:-
1) Passenger Cars2) Multi- Utility Vehicles (MUVs)3) Two- and Three- Vehicles4) Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and
Heavy Commercial Vehicles (MHCVs)
5) TractorsWe will be looking at the Passenger car industry in India.
Despite a head start, the passenger car industry in India has not quite matched up to
the performance of its counterparts in other parts of the world. The primary reason has
been the all-pervasive regulatory atmosphere prevailing till the opening up of the
industry in the mid-1990s. The various layers of legislative Acts sheltered the industry
from external competition for a long time. Moreover, the industry was considered
low-priority as cars were thought of as unaffordable luxury.
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OBJECTIVES
Some of the Objectives which are focused upon in this report are:
A comprehensive analysis of Indian Automobile Industry. To study the Marketing Strategies of HMIL wit focuses on Santro. To focus on Marketing Mix of Hyundai Santro. To study the consumer satisfaction level with focus to Hyundai santro. Special emphasis on Promotional activities of Santro and how HMIL has been
able to reposition it in recent times.
Recommendations and observations regarding HMIL.
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Hyundai Motors India Limited
An Overview
Hyundai Motor India Ltd. (HMIL) is a wholly owned subsidiary of the Hyundai
Motor Company (HMC), Korea, a part of the Hyundai Motor Group comprising
Hyundai Motor Company, Kia Motors, Hyundai Mobis and other affiliated
companies, with a combined turnover of over US$ 50 Billion. The Hyundai Motor
Group with a presence in over 185 countries and combined annual sales of over 3
million units is one of the fastest growing auto manufacturers in the world.
HMIL has emerged as the second largest and the fastest growing car manufacturer in
India. HMIL presently markets over 26 variants of passenger cars in six segments.
The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment,
the Elantra in the D segment, the Sonata in the E segment and the Tucson and
Terracan in the SUV segment.
The company recorded combined sales of 215,630 during calendar year 2006 with a
growth of 43% over year 2007. HMIL is India's fastest growing car company having
rolled-out over 700,000 cars in just over 70 months since its inception and is thelargest exporter of passenger cars with exports of over Rs. 1,700 crores. HMIL has
recorded a staggering growth of 149% in exports over the year 2007.
HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts
some of the most advanced production, quality and testing capabilities in the country.
In continuation of its investment in providing the Indian customer global technology,
HMIL has announced plans for its second plant, which will produce 150,000 units per
annum, raising HMILs total production capacity to 400,000 per annum by 2007. The
plant will be built on a 2.1 million square meter site adjacent to the existing facility
with an investment of $450-$500 million on its new integrated facility. HMIL is
investing to expand capacity in line with its positioning as HMCs global export hub
for compact cars. Apart from expansion of production capacity, HMIL plans to
expand its dealer network, which will be increased from 146 to 180 this year. And
with the companys greater focus on the quality of its after-sales service, HMILs
service network will be expanded to over 1,000 in 2007.
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HMIL has many awards in its bouquet. It was declared The Star Company amongst
unlisted companies by Business Standard this year. Getz got the coveted Car of the
Year 2007 award twice over. It was declared a winner by both Business Standard
Motoring and CNBC-TV18 Autocar Auto awards. Hyundai Elantra won the CNBC-TV18 Autocar Best Value for Money Car Award.
HMIL was also the Manufacturer of the Year two years in a row in 2006 and 2007.
ICICI Overdrive Awards declared Hyundai as the Car Maker of the Year in 2007.
Hyundai products with state of the art technology have also been winning many
accolades over the years. Santro bagged top honours in JD Power Asia Pacific for
three years. Accent was ranked No. 1 in J D Power Asia Pacific APEAL for two years
and also got Business Standard Motoring Jury award for its CRDi model.
HMIL has also been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices.
The following table shows the HMILs cars and the various segments they belong to
as in the Indian market.
Segment Classification HMILs Car Price
(Ex Showroom in Delhi)
B Sub - Compact Santo Xing Rs. 278999
B+ Compact Getz Rs. 421000
C Mid Size Accent Rs. 529000
D Premium Elantra Rs. 853793
E Luxury Sonata Rs. 1399000
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NEW MILESTONES
The Indian passenger car market is a highly competitive market. Although its growth
has been hi in past several years, profitability has been impacted because of rising
costs, change in excise policies and intense price competition. With the developed
countries like USA and UK having 350 as an average no of cars per thousand persons
it is very low in India (5). So in future, the arena of competition is most likely to be
shifted to developing countries like India and that too in a highly competitive segment
like B-Segment.
With the opening of economy and relaxing norms by government, the market has
started witnessing the entry of new global players like Toyota, Honda and GM in the
Indian market, pointing to further intensification of competition in future. With the
consumer attaching higher value to the features and economy in case of car buying,
the players are likely to focus more o product development (to incorporate dvanced
features in their designs) and advertisements (to set up their own positions in a
consumer mind).
HMIL is emerging as a major player in Indian passenger car market. Its products are
Santro and Accent are success stories in themselves. But the buck does not stop here
only. Its parent company HMC is focusing upon HMIL as a base to integrate its
production and R & D facilities across Asia Pacific. For that HMIL is planning to
increase its present production capacity of 2.5 lakh cars per year to 4 lakh cars per
year by 2007.
Exports are also another front which is giving HMIL an intense opportunity to
expand. For the first six months of this fiscal HMIL has exported cars worth Rs. 1,325
crores and targeting an overall export of over Rs. 2,700 crores in this fiscal up from
Rs. 1,700 crores in 2006-07.
HMIL has sold a total of 236,878 vehicles in the Calendar Year 2007 so far, achieving
a growth of 21% over the January-November sales in 2007. While domestic sales in
January-November, 2007, were 148,515 - a growth of 16.6% over the previous year,
overseas sales during the period stood at 88,363 units - a growth of 29%.
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In November, 2007, HMI sold a total of 21,725 units - 14,010 vehicles in the
domestic market and 7,715 cars in the overseas market.
Over the years, HMIL has been focusing on effective brand building and consumer
strategy. This has contributed towards enhancing their bottom line. A significant
contribution in this success is of the advertisement strategy adopted by HMIL. It has
changed its advertisements time and again. Now HMIL has started a new initiative
under which they have started their own in house advertising agency known by the
name ofInnoceanwhich will handle its all promotions.
With the new initiatives, HMIL is all set to achieve its ambitious growth of 30% in
sales over last year. Thus, Hyundai motors India limited is all set to conquer the
Indian passenger car industry.
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AWARDS & RECOGNITIONS
As one of the fastest growing automobile compaies in India, Hyundai has many
accomplishments to its credit.
Business Standard - Star Company Award to Hyundai Motor India
JD Power Asia Pacific
Hyundai Santro has topped the JD Power Asia Pacific Initial Quality Study(IQS) that measures product quality for three years in a row (Years 2007,
2006 and 2007)
Hyundai Santro has topped the JD Power Asia Pacific APEAL study thatmeasures customer satisfaction for three years in a row (Years 2006, 2007 and
2008)
Hyundai Accent has topped the JD Power Asia Pacific IQS for 2007 and theAPEAL study for 2006 and 2007.
Business Standard Motoring
Hyundai Getz is BS Motoring's 'Car of the Year' 2007 BS MotoringBS 1000Company of the year 2007Hyundai Motor India
Limited
Hyundai Santro is BS Motoring's 'Car of the Year' for 1999CNBC
Hyundai Getz is the CNBC Autocar Car of the Year 2007 Hyundai ElantraBest Value for Money Car of the Year 2007 CompanyAwardsCNBC Autocar IndiaHyundai has been the
manufacturer of the year for two years in row.
ICICI Bank
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Hyundai MotorIndia was adjudged the Car Maker of the year at the ICICIBankOverdrive awards 2006
HMIL has also been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices.
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PRODUCT HYUNDAI SANTRO
The Santro was launched on September 23rd 1998 in the Indian market and the
company sold around 17000 units in first five months. The Tall Boy concept was
well taken by the Indian Customer. Since its inception Santros sales has been
achieving an annual growth rate of about 20% on an average. An advertising
campaign starring Shah Rukh Khan and Preity Zinta was unleashed to further boost
the sales and this has certainly proven to be effective. As a result of which Santro has
now become a market leader in its own Segment (B-Segment) leaving earlier market
leader Maruti Zen and Tata Indica. Repositioned from being a family car to an
individuals first car, within a short span of time the Santro has been able to capture
the hearts and minds of the consumers.
The following table gives the ex-showroom prices of all the variants of
Santro:Models
Santro XK Non AC (Solid)
Santro XK Non AC (Metallic)Santro XK AC (Solid)
Santro XK AC (Metallic)
Santro XL (Solid)
Santro XL (Metallic)
Santro XO (Solid)
Santro XO (Metallic)
Santro Xing AT (Solid)
Santro Xing AT (Metallic)
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RESEARCH METHODOLOGY
As the purpose of study is analyze the marketing strategies of Hyundai motor India
ltd. with focus to Hyundai santro.
Data Collection
Data collection is the process through data is collected, it is basically done through 2
main sources i.e. primary source and secondary source. From these sources data s
compiled i.e. primary data and secondary data. In this project both primary data and
secondary data are used.
Primary Data
Primary data is the data which is collected through surveys and questionnaires.
Secondary Data
Secondary data is the data which is collected through internet, magazines,
newspapers, journals, broachers, television etc.
Sample Size
In this project questionnaire was prepared and multiple choices and the pattern of
questions was given to 50 respondents. With every question, multiple choices were
given.
Type of approach: The type of approach followed is descriptive approach. Indescriptive approach cross sectional design is used. Cross sectional design is used
because it is concerned with a sample of population of interest.
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MARKETING STRATEGYStrategy and timing are the Himalayas of marketing. Everything else is the Catskills.
- Al Ries
HMIL has been successful in capturing the car market because of the excellent
product it has produced. The market research conducted by Hyundai showed that
Indian cars were overcrowded, with turbans and sarees to be accommodated. The idea
was to create a voluminous compact car. The tall boy model was taken from the
Atoz and it was redesigned to meet Indian conditions. Thus, the Santro was born. The
Santro is available in a number of versions and has a number of new built-in
mechanisms---power windows, power steering, central locking, side impact beams,
frontal crumple zone, child safety locks, seat belts, multi-point fuel injection systems
and CFC-free air-conditioners. The Santro is available in nine new colours. The car
also gives high mileage. The engine delivers adequate torque i.e. the ability to pull
loads even at very low speeds---this proves to be very essential for slow and traffic-
heavy Indian conditions. The most important is the seating, which is, high and gives
road command.
Hyundai was competing with Maruti in the small car segment and it offered
technology that other car makers thought was too advanced for the slow growing
Indian market. Hyundai has now built up a reputation such that it is the first
preference of anybody who has driven or ridden in it.
The marketing strategy employed by Hyundai for the Santro can be studied with
insights into their STP analysis and Marketing Mix.
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PEST ANALYSIS
In order to understand the conditions under which the Santro was launched in the
Indian market, its necessary to analyze the factors that influenced its effectiveness.
Political Conditions
Hyundai entered India when liberalization was at its peak. As a result,everyone was very open to the idea of foreign companies setting up base in
India.
The government insisted on the Companies using 70% local content in themanufacture of the cars as they would have generated tremendous revenue for
India. Hyundai achieved this in a very short time.
Change in government policies in recent times like opening of FDI in varioussegments has given a thrust to Hyundai initiatives in India like opening of its
R & D centre in Chennai.
A positive EXIM policy also has helped HMIL to boost its topline withExports of Santro to other countries.
Economic Conditions
The economic conditions during the launch of Hyundai were very relaxed andliberal. Hyundai was launched when the country had just opened its doors to
liberalization. So there were no strict norms or bylaws that the company had to
adhere by.
The resources available in India were utilized by the multinationals, whichgenerated considerable revenue for the government.
A booming banking sector and a phenomenonal growth in Auto Loans markethas made Santro more affordable.
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Social Conditions
A rise in Middle class and concept of small nuclear families has propelled ademand of B-Segment cars. Hyundai Santro provides an exact choice for this
demand leading to its high growth.
An average Indian was bored with the same Maruti 800 as his first car andSantros positioning as ones first car has led to Hyundais success.
TECHNOLOGICAL CONDITIONS
Hyundai is a fairly new company in India. As a result when it started out inIndia it started out with the best of machinery. So, the quality of products was
several times better than what was available at that time. This resulted in the
acceptance of Hyundai as a technologically superior company in the minds of
the people.
Since Hyundai manufacturers everything from the smallest of screws to thebiggest of machines in its factory it is able to maintain the efficiency of the
machines. Hyundai therefore manufactures cars under best of conditions with
the best of machinery. As a result, the cars manufactured are of top quality.
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STP SEGMENTATION, TARGETING, POSITIONING
Marketing is not an event, but a process . . . It has a beginning, a middle, but never an
end, for it is a process. You improve it, perfect it, change it, even pause it. But you
never stop it completely.
- Jay Conrad Levinson
Segmentation
Segmentation is based upon considerable evidence that a single marketing approach
or formula will not work for all members of the community to be served.
Geographic
The region of interest of HMIL for Santro is whole India with special focus on Type
A and fast growing Type B cities across India.
Demographic
AgeAnybody of age between 2040 yrs.
IncomeAnybody with an income of over 4 lakh p.a.
OccupationMillennials employed as professionals, managers and those want to buy
their first car.
Social ClassMiddle class, Upper middle, Lower Upper and Upper uppers.
Psychographic
Personality Dreamers, those who want to achieve big, ambitious, price conscious,
took their first step towards success and value driven.
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Behavioral
BenefitsQuality, Style, Price (economical)
User statusPotential users and first time users
BuyerReadiness Stage Those who are aware, informed, interested and intend tobuy
Targeting
In evaluating the market segments Hyundai has looked at two factors - The segments
overall attractiveness and the companies resources. As is very clearly seen Hyundai
has opted for a selective specialization kind of targeting. Hyundai has selected anumber of segments each objectively attractive and appropriate. There is minimal
synergy among the segments but each is a cash cow. This multi segment strategy has
had the effect of diversifying the firms risk.
Having Shah Rukh Khan to endorse the Santro paid off for Hyundai. Shah Rukh as a
brand ambassador targets two sections of the society. Firstly, his glamorous and
sophisticated image appealed to the elite effecting their purchase decisions. Secondly,
his adorable persona appealed to the middle class buyers who wanted a good car for
the big investment they were making and for people who were graduating from the
Maruti and the second hand car.
Hyundai Santro was first launched in September 1998. At that time the cars which
were prevailing in B-Segment was lead by Maruti Zen. With a price tag of only Rs.
2.99 lakh Santro was targeted as the best available alternative for Zen and was
described as The complete Family Car.
The low price tag of Santro initiated a price war among all companies and forced Tata
Indica to pre-pone its launch. The initial low price tag and strengthened by a solid
marketing initiatives in form of print advertisements provided a solid foundation for
Santro in India which showed in its sales of 17000 units in just 5 months. With that
started a journey of Santro whose sales grew at an average of 30% every year to
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emerge as the No. 2 car in B- Segment giving the established leader Zen sleepless
nights.
Hyundai has identified its target market based on its pricing strategy. Santro aims to
be the price leader in B-Segment cars. It has always priced its base model lower than
Zen or Indica giving all the features which they give in their higher models. With a
constant change in its positioning strategy, Hyundai Santro has succeeded in
identifying its target market every time and emerging as the fastest selling car in its
own segment. With the invent of Santro Xing, Hyundai is looking towards entire new
segment of consumers and all set to target it to emerge as the market leader in B-
Segment cars.
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POSITIONING
Since its inception, Santro has undergone a lot of changes in terms of its positioning.
First it was Santro, then Santro Zip drive, then came Santro Zip Plus and finally
Santro Xing as the latest model.
When Santro was initially launched it was positioned as The Complete Family Car.
Since Santro was launched in B-Segment, it had Maruti Zen and Tata Indica as its
biggest competitors in that segment. The stylish Tall Boy Design of Santro together
with its slogan helped it to position itself as one of the cars to look upon.
With a constant change in its positioning, Hyundai always tried to keep alive the buzz
associated with Santro. The Zip drive and Zip plus positioning of Santro helped to
portray its position as the car which changes with time and giving its owners
something extra.
With the invent of Santro Xing in 2007, which came with some design changes too,
Hyundai repositioned Santro as Sunshine Car (smart car for young people) from
earlier complete family car. This was done because the competitors were coming
out with similar products and then Hyundai started what they call as Emotional
Positioning. This repositioning of Santro also helped it to target the segment of first
time car buyers. Even the print ads at this time were designed in a way to project
Santro as the first car for the fastest growing consumer segment of India at that time,
The Young Professionals, of the service industry that combined with various loan
facilities were too eager to buy their first car. This led to a phenomenonal growth in
its sales and further strengthening its position as a brand in consumer mind. Thus the
repositioning of Santro gave it an edge over its competitors and also to emerge as a
tough rival to Maruti 800 as The First Car.
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PORTERS FIVE FORCES MODEL
Barriers to Entry
High capital investment required Strong distribution network of
existing players
Strong Brands existing Economies of Scale
Threat of Substitutes
Switching Cost to substituteis very low
Priceperformance Tradeoff of substitutes
Brand loyalty does not exist
Bargaining power of
Suppliers
No substitute for criticalInputs
Switching cost from onesupplier to other is high
Supplier integratingforward for higher prices
and margins
Bargaining power of
Buyers
Availability of manybrands
Price sensitivity Buyer Information Product differentiation
Rivalry among existing firms
Exit barrier Industry Growth Industry Concentration Diversity of rivals Price competition Product differences
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SWOT ANALYSIS
Strengths
Strengths
Brand Name Large Distribution
Network
Wide product offering atdifferent price points
Cheapest Cars incorresponding segments
Encouraging exports Awarded many awards Economy with technology
Weakness
Lack of in house R & D New model introduction
limited to only cosmeticchanges
Dominance mainly atlower level only (Santro)
Opportunity
Rise of Indian middleclass and small cities
A booming economy Rising exports
Threats
Many players fighting forthe same cake
Entry of new players Cannibalism
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1. Brand Name: Santro has emerged as a strong brand name in recent times.Backed with the parent company Hyundai this is recognized as a strong player in
worldwide automotive market, Santro has definitely a value associated with it any
individual will like associatd with.
2. Large Distribution Network: With a strong dealer network of around 300 dealersal around the country, Hyundai has made its presence felt in each and every corner
of India.
3. Wide Product offerings at different price points: Hyundai has launched variousmodels in various segments and hence has a very good product mix of offerings as
different price points. Starting from Rs. 2,78,999/- for Xing XK Non AC to Rs.
4,28,298/- for Xing AT (M).
4. Cheapest cars in respective segments: Hyundai has always followed an aggressivepricing policy. As a result it has its cars priced at lowest possible rates in
respective segments.
5. Encouraging Exports: Backed by a strong production and a global setup atChennai plant, Hyundai is exporting a lot. An export of worth Rs. 1,325 crores has
been achieved in last six months.
6. Awarded Many Awards: Hyundai has been awarded with many awards andrecognitions like The Star Company amongst unlisted companies by Business
Standard this year. Its various models like Getz and Elantra too has achieved
many awards, thereby increasing the brand vale of the company.
7. Economy with technology: Hyundais cars have always seen as a companyproducing cars blending economy with technology. Santros initiative of putting a
16-bit microprocessor on board has proved as one of the major reasons for its
success and that too for the lowest price in its segment.
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Weaknesses
1. Lack of in house R & D: HMIL do not have a comprehensive R & D departmentin India and all the major design changes are sent by its parent company HMC.
2. New model introduction to only cosmetic changes: There is no major designchanges incorporated in Santro since its inception. Only some cosmetic changes
have been made.
3. Dominance mainly at lower level: HMIL dominance in Indian market is only at itslower level segments like Santro in B-Segment and Accent n C-Segment. It has to
focus on its upper segment models to strengthen its position in Indian car industry.
Opportunities
1. Rise of Indian middle class and small cities: As a phenomenonal growth isseen in recent times in Indian middle class and the purchasing power of
working class individuals. Also a rise in small cities across the country has
given a great opportunity to Hyundai for achieving a higher growth rate in
coming times.
2. A Booming Economy: Indian economy is growing at a rate of on an averageof 7% every year thereby giving an opportunity of larger sales in each and
every segment.
3. Rising exports: With a export of Rs. 1,325 crores in last six months, HMIL hasa great opportunity of achieving a export target of Rs. 2,700 crores in this
fiscal year.
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Threats
1. Many players fighting for the same cake: There a many major players in theB-Segment and since the size of market is not expanding rapidly, HMIL has a
major threat in form of tough competition.
2. Entry of new players: with coming of Fial Palio and other players planning tocome out with much more models in B-Segment, the competition is just
getting hotter.
3. Cannibalism: to some extent the Getz is affecting Santro because of its price.Thus HMIL has to focus more on its positioning strategy of Getz and Santro.
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Ps of Hyundai Motor India Ltd. With focus to
Hyundai Santro
First P - The Product
A New Shining Dawn
Here Comes the Sun Again
Ever since its launch in 1998 the Santro has proved to be the best compact car in
India, thanks to its excellent design and extensive testing for over 100,000 kilometers
in real Indian road and climate conditions. It is clever design that gives cars this touch
of practical beauty. Hyundai has come up with a vehicle that surprises with its ability
to utilize space extraordinarily well. The Hyundai Santro is probably the first of the
`big-small' cars that hit Indian roads. Set between the B and C segments in terms of
size and price, the Santro attempts to offer trim quality, interior space and build
quality on a par with the pricey sedans. First it was Santro. Then it got renamed asSantro Zip Drive. After a while, Santro Zip Drive got replaced by Santro Zip Plus.
And then came its new global' car, Santro Xing. Yes, Santro Xing is the new avatar
of the Santro Zip Plus. However, this time it is not just a change in the name; the new
avatar also looks different from its predecessor. The Santro Xing comes in five
versions, including automatic transmission, and has a new sporty exterior with safety
features which meet European standards. The Santro Xing is available in nine colours
viz., Ebony Black, Noble White, Satin Grey, Fairy Leaf, Forest Dew, Husky Blue,
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Mystic Lavender, Passion Red and Bright Silver. The colours present a varied choice
to consumers in picking a car that most closely defines their personality. Consumers
can have a feel of the color right from their homes by logging on to the website of
Santro Xing. Santro Xing comes with all new looking feel exterior and interior
styling. That, coupled with new advanced features, offers the best comfort & luxury in
the favourite compact car. New bigger & brighter clear headlamps, smiling radiator
grille, power operated rear windows with child lock and lots of other smart features
like the seat under tray are the hallmarks of your Sunshine Car. Santro is being
produced exclusively in India and the Indian Xing will now drives the World. The
idea was to create a constant hype around Santro to give it that competitive edge and
make it the truly sunshine car.
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CHIC AND CLEAN
Hyundai calls the Santro a Euro-styled, premium hatchback. If simple straight lines
and a practical, consistent design theme are indicative of pronounced European-
styling, then the Santro belongs to that class. European or not, the Santro is a good-
looking car that is also upfront about its focus on practicality, with marginal excesses
in design, a trait that could not be associated with Hyundai's first car for the Indian
marketthe Santro.
Its exterior styling gives it a sort of dual personality. The large format, clear lens-type
headlamp cluster dominate the car's frontal view. The short, sloping bonnet and the
single-slat grille seem to visually add some more measure to the Santros already
class-leading width. These features as well as the broad front bumper and the sharply
raked windscreen make it look very sedan-like, when viewed from the front. The
muscular shoulder flanks and the prominent, flaring wheel arches give ita well-
planted, aggressive profile.
However, viewed from the back, it seems to acquire a new, squat and wider
appearance. The short-hatch door, the raised position of the thickset bumper and the
relatively smaller combination lamps make the Santros rear seem more compact. The
wrap-around style tail-lamps are positioned mid-way, instead of lower and closer to
the bumpers as in older hatches or high up on the C-pillar as in the case of the newer
small cars such as the Tata Indica and the Suzuki Wagon-R. The overall design of the
tail-lamps and the circular reverse indicator integrated into it may remind the casual
observer of the Daewoo Matiz. The rear spoiler with the integrated high-mounted stop
lamp and the chunky, profiled external rear-view mirrors add a touch of exclusivity to
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the Santro. While visibility at the front is ample for the driver, thanks to the
panoramic windscreen and the large windowsfor the front doors, the thick, wrap
around body panels on the C-pillar limits the driver's rear visibility, especially while
backing the car into a cramped parking slot.
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SIMPLE INTERIORS
The interiors of the Santro wear a fresh and simple look. The finish quality is good
and dimensional accuracy of dashboard and door panels rival those of a few C-
segment cars. The soft feel plastic used for the dashboard panels adds a touch of class,
but the dimpled finish may be a bit difficult to clean and maintain in Indian
conditions.
There are ample storage options, including the deep glove box, the removable ashtray
cup, bottle and cup holders at the front and rear, seat side pockets, coin storage on the
door handles, bag hook at the rear of the front passenger seat and the 60:40 split,
folding rear seats that go on to more than treble the boot storage space. The
instrument cluster is housed in a simple semicircular dashboard panel and features
two rounds, chrome-lipped gauges for the rpm meter and speedometer. The cluster
also features a digital clock and trip meter. Power and tilt-adjustable steering is
standard. The centre console features a brushed aluminum slap-on panel and houses
rotary type controls of the HVAC (air-conditioning) system and positive type controls
for the rear defogger, hazard lights and fog lamps. The dual adjusting air-conditioner
louvers look sophisticated and add to the Santros up market image. The dashboardextends more than a foot into the cabin. While this gives the driver even more open
storage space on the flat faced top, at the bottom, after the dashboard tapers off, the
driver and co-passenger get loads of recessed leg space.
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ENGINE & TRANSMISSION
The Santro had been brought in with Hyundai's new 1,341cc, in-line, four-cylinder,
SOHC engine that develops a maximum power of 82.9PS at 5,500 rpm and a peak
torque of 11.8 kgm at 3,200 rpm. With the peak torque kicking at a low 3,200 rpm,
you will not have to rev the engine up to a grunt to get the best out of it. However, as
the Santro's engine is mapped for economy, there is a mild lag before the torque kicks
in the first three gears. The other side of this slightly slow, but steady rise in torque is
that this powerful 1.3-litre engine is surprisingly tolerant of lower speeds in every
gear slot. As a result, knocking is minimal obviating frequent shifts to a lower gear.
So, while the Santro delivers a lively performance in city traffic, the lull before peak
torque kicks in may be only a tad bothersome on the highway. But once you are past3,000 rpm, it zips.
The five-speed manual transmission that the Santro comes with is one of the
smoothest in its class. The short throw, short-talked gearshift stick is a delight to use.
The suspension set-up features McPherson-type struts in the front and coupled torsion
beam axle and gas-filled shock absorbers at the rear. This configuration, coupled with
the rigid chassis, gives the car excellent handling dynamics.
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VALUE FOR MONEY
The Santro is the first of the large sub-compacts that made their way into the Indian
market. This cusp segment is likely to find more buyers as the market matures and as
the expectations of customers in the small-car segment increase. For Indian car buyers
looking for a good value for money proposition in the high-end B-segment category,
the Santro with its new and exciting variations is an attractive choice.
With a fuel economy of about 10 kmpl in city and about 15 kmpl on highway, it
attempts to keep running costs relatively low.
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KEY TECHNICAL SPECIFICATIONS AND FEATURES
Santro Xing
Dimension and Weight Overall Length (mm) 3565
Overall Width (mm) 1525
Overall Height (mm) 1590
Wheelbase (mm) 2380
Min. Turning Radius 4.4 m
Engine Number of cylinders 4
Number of valves 12
Engine Displacement(cc) 1086
Performance Maximum Output
(ps@rpm)
63@5500
Maximum Torque
(kgm@rpm)
9.1 / 4000
Tyres Size 155/70 R 13 Radial
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THE SECOND P THE PRICE
Using money as a magnet to attract customers kills loyalty, mangles margins and
encourages defections. But Unique Selling Price is undoubtedly one of the roads to
success in the intensely competitive automobile business. Ceteris Paribus, the
purchase decision of the first-time buyer is influenced by four factors---Price, Price,
Price and Price. The first is the price of acquisition. The second is the price of finance
or the rate of interest on the loan. The third is the price of maintenance, which
includes the cost of fuel, service and spare parts. And the fourth is the price of
disposal or the resale value of the car.
High indigenization stood Hyundai in good stead when it came to its entry pricing.
Hyundai surprised its competitors with a under Rs.3 lakh (ex-factory) price, slightly
below the Maruti Zen (Rs.3.2 lakh). Competitors and analysts criticized Hyundai for
predatory pricing, but Hyundai maintained that the low price is a result of high
indigenization level and effective ancillarisation. This gave Hyundai a strong foot-
hold as its production costs were lower. Hyundai ensured cost competitiveness
through tie-up between Lumax (well known supplier of lighting systems) with
Hyundais Korean vendor Samlip, to form Lumax-Samlip Industries. This was
because they were operating on much better overhead absorption, being suppliers to
other manufacturers in India. Also, they already had a grasp of technology because
they had partnerships with Japanese, European or American companies.
Hyundai offers a comprehensive range of finance packages to suit all budgets,
including Hyundai Finance which as an affiliated finance company offers complete
financing packages tailored to individual requirements. Hyundai also has tie ups with
banks like ICICI, Bank of America, KPML etc to offer loans to buyers.
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The following table gives the ex-showroom prices of all the variants of
Santro:
Models Ex-Showroom Price (in Rs.)
Santro XK Non AC (Solid) 2,78,999
Santro XK Non AC (Metallic) 2,82,973
Santro XK AC (Solid) 3,32,999
Santro XK AC (Metallic) 3,36,972
Santro XL (Solid) 3,55,999
Santro XL (Metallic) 3,59,972
Santro XO (Solid) 3,81,999
Santro XO (Metallic) 3,85,975
Santro Xing AT (Solid) 4,24,324
Santro Xing AT (Metallic) 4,24,298
70% of the cost of a car over its lifetime goes in maintenance. Accordingly, in
Hyundai, pre-delivery inspection takes place at three stages---one, after the car rolls
off the assembly line, the next when it is loaded into the auto compound and finally, at
the dealers premises before it is handed over to the customers. This increases thetime between services for Santro. For instance, Maruti recommends services after
every 5,000 kilometers; whereas Hyundai recommends it after every 10,000
kilometers. Similarly, the engine oil, filter assembly for the Santro is priced lower
than that for the Maruti Zen. This low-cost proposition for spares offers an added
advantage when a buyer compares running costs.
Hyundai realized the difficulty to compete in the car markets and decided to go for a
sharp differentiation strategy. In order to avoid the price game, it decided to reinforce
the individualistic positioning of the brand and tried to match the customers
perception that the car is a commodity using other differentiators. Hyundai opted
against the drop in prices, one reason being the fact that, buyers are shopping for
brand associations and customers are unlikely to let their decisions be swayed by
savings of a few thousands.
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THE THIRD P THE PLACEHyundai has spent time studying dealer networks. It found that dealers were
inconveniently located, their behavior towards customers left much to be desired, and
there was a lack of transparency in dealer operations. So the Hyundai outlook towards
dealership is compact dealership instead of a mammoth network. The emphasis is on a
dealer-customer relationship where each customer is given time. The company insists
on a one-to-one relationship to build a long lasting association. To this end, the
company insists on ownership and operation of dealerships resting on one person,
thus reducing absenteeism and promoting immediate decisions.
HMIL has established a start-up network of 70 dealer workshops (now close to 150),
equipped with the latest technology machines and international quality press, body
and paint shops, across the country. These dealer workshops include company owned
outlets called Hyundai Motor Plaza, that provide a Hyundai customer a one-stop
shop for meeting all needs.
In place of large showrooms and workshops, Hyundai decided that the workshop
should be ideally 10,000 sq.feet, which could be worked in three shifts and the
showrooms it preferred were 1,600-1,800 sq.feet. Dealers who already had land
would have to invest Rs.1.5 crores for the rest. With this infrastructure dealers can
handle 200-250 cars a month, which gives them adequate time to establish rapport
with customers.
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The company has also cut expenses of its dealers by keeping inventories low.
Hyundais dealers are given limited stock. This does not mean that Santros spares
come late. On the contrary, the cars parts are available within 24 hours.
The dealer network is established with the objectives of providing the customer the
very best through a 24 hour hotline system, round the clock workshop services,
roadside services with tow away facilities, round the clock helpline services, etc.
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HYUNDAI DEALER NETWORK IN INDIA
So the kind of marketing channel that Hyundai follows for its cars is simple one level
Marketing channel.
Manufacturer Retailer Consumer
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THE FOURTH P THE PROMOTION
If you're trying to persuade people to do something, or buy something, it seems to me
you should use their language, the language in which they think. - David Ogilvy
Strapped with the tagline Smarter people drive Santro Hyundai Santro hit the Indian
roads nearly a decade back. Hyundai Santro being a much admired lifestyle brand was
launched in nine colors with a colorful and jazzy advertising campaign developed by
its advertising agency Saatchi and Saatchi. Hyundai set aside as high as Rs 5 crore for
advertising and promotions each month. Effective advertising can add immense value
to brands, even in the small car segment, where the typical customer is far more
informed and aware of the product behind the brand.
Hyundai Motor India Ltd (HMIL) realized Indian consumers' penchant for unique
designs soon after their entry into India. With the run away success of the Santro,
HMIL was right with its promotion strategy and came up with a winning campaign.
Hyundai Santro has come a long way from its original Santro version to Santro zip
drive moving on to Santro zip plus and now to the newer and refreshed Santro
Xing, employing a different tag-line and promotional approach each time.
The first version of Santro was launched with much vigour as Indias very first big
small car and Indias very own family car. Being the first of its kind in the small
car segment Hyundai positioned itself well in the eyes of the consumer encouraging
them to buy the car. The earlier platform of Zip Drive suggested Santro's USP of
power steering. "The Zip Drive positioning was successful at a time when air
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conditioners were seen as brand differentiators," Hyundai hoped that in a market
where power steering accounts for over three-fourth of B segment sales (Santro was
one of the early power steering campaigners), and air conditioning had more or less
become an integral part of car purchases, the focus on Zip Plus with a new brand
positioning of More Power, More Fun' will be a critical differentiator. Hyundai
contended that the Zip Plus positioning aimed at suggesting that something critical
had been added to the brand's current avatar. Hyundai was very generous in
promoting its new Xing model, promoting it as the sunshine car and roping in
Bollywood actress as the brand ambassador. Intense competition in the B-category
from Fiat Palio, the Maruti trio of Zen, WagonR and Alto, and Tata Indica forced
Hyundai to keep the excitement about santro alive encouraging the fresh new
positioning and attitude with Santro Xing, promoting it as a new age car targeted at
stylish individuals.
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GROUND PROMOTIONS
To promote its new offering, Hyundai chalked out a strategy which included press
ads, television campaign, outdoor media and internet advertising. In addition, the
company is in the process of rolling out a slew of marketing initiatives to promote its
launch. In a bid to reach out to a wider target audience, Hyundai has recently
extended its dealership to 133 across the country. To support its mass media
advertising, the company is now focusing on ground promotions. It sponsored many
shows and musical events like the MTV Style Awards in order to increase visibility.
MTV Santro Xing Kitni Mast Hai Xing-dagi Contest
They are hosting dance competitions at discos and night clubs in major metros across
the country. As its a new age car, it has also launched a slew of internet ad
campaigns to promote the brand online. For this purpose, the company has tied up
with portals like Rediff and Yahoo! India Hyundai is giving its four-year old small car
Santro a new and fresh positioning, and has roped in young and vibrant Bollywood
actress Preity Zinta for promotions worth Rs 5 crore.
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PRINT PROMOTION
Hyundai Santro was the top Car brand on Print in 2007 accounting for nearly 10% of
the advertising spends. Hyundai Motor India unveiled a hard-hitting print campaign to
announce the emergence of Santro as the countrys No. 1 Small Car. Ingredients of
the campaign are comparative ratings, which points to Santros certain superiority
over other B class rivals. Shah-Rukh Khan being the brand ambassador was mainly
featured in the print ads. Its said that Shah Rukh Khan ad has been the ad with the
highest recall value with as high as seven people out of ten being able to remember
him and connecting him with Santro. Over time as Santro excitement fizzed out
Hyundai roped in actress Preity Zinta with Shah-Rukh Khan giving birth to the
sunshine giving a bubbly and youthful feel to the entire campaign to revive some
amount of brand fatigue. While sticking to the complete family car' positioning ,
Sunshine' created new interest for the brand in the consumer's .Since the buyer is
young Santro was then promoted as a car that can change the life of a young person
mind .Since the buyer is young Santro was then promoted as a car that can change the
life of a young person.
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Print Ads through the ages
Headline: "The other home my husband doesn't mind me living in!"
Bodycopy: That's what you too would say about the Santro zip Drive! A feather
touches power steering for home-comfort rides (even bindis won't feel out of place)!
No fatigue, no stress. Because you don't need muscles to zip! And you'll feel safer
because it's so responsive. Add to it 'tall-boy' leg room, tasteful upholstery, divan-like
seats and snug headrests. No wonder, your husband won't mind you relaxing in
this mobile home of yours!
Baseline: Don't drive. Just zip!
Headline: Presenting the New Look SANTRO ZIPDRIVE.
Bodycopy: New clear lens headlampsnew rear combination lamps
new clear lens fog lamps
new chrome-plated front grille
new rear spoiler with LED stop lamp
new interiors
new colours
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Baseline: India's favourite family car.
Headline: India's best-loved family car is now also India's simplest car to drive.
Subhead: Hyundai introduces Santro Zip Plus Automatic.
No shifting gears, no clutch, no problems.
Bodycopy: Hyundai brings back the sheer joy of driving by introducing Santro Zip
Plus Automatic with the Anti-lock Braking System (ABS). The only car in its
segment to use a state-of-the-art 4 speed, electronically controlled gearbox. While the
light-weight automatic transmission allows you to ease your way through city traffic,
the Anit-lock Braking System, a first for a car under 1500cc, stops you instantly
without any trace of a skid. So, go ahead and pick up a Santro Zip Plus Automatic.
And make driving the way it should be - Simple.
Baseline: The Sunshine Car
Headline: Heads I'll drive, tails you won't.
Bodycopy: With the new souped up 1.1 litre engine, the Santro ZipPlus is so full of
sunshine that you'll do anything to get your hands on the wheel.
Baseline: The simplest car to drive.
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Headline: I drive, you drive, I drive, you drive, I drive, you drive, I drive, you
drive.Bodycopy: With the new souped up 1.1 litre engine, the Santro ZipPlus is so full
of sunshine that you'll do anything to get your hands on the wheel.
Baseline: The Sunshine Car
Headline: Ok fine, you drive first. I'll drive next.
Bodycopy: With the new souped up 1.1 litre engine, the Santro Zip-Plus is so full of sunshine that
you'll do anything to get your hands on the wheel.
(if u want to save soace dont mention details. Just say the old ads highlighted
specifications of the car ans targeted it to the women as an easy to drive car while the
new ads of santro talk about the experience of driving the car..and show the new ads)
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Baseline: The Sunshine Car
Bodycopy: Hidden inside the woman is a little girl. Your little girl. You've watched
her grow from pigtails, to jeans, to sarees. She's made the last twenty one years seem
like twenty one weeks.
And now, another man is laying claim to her attention. You don't know whether
you're happy or jealous.
This is the time to reinforce your position as the best man in her life. Give her
something she'll treasure.
Baseline: The simplest car to drive.
Bodycopy: Your wife.there's something special about her.
In the way she looks at you. In the way she smiles
In the way she squeezes your hand when you're feeling low. In the way she makes
your house feel like home.
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There's something special in the way she says her father is the best man in her life,
with a twinkle that tells you he's not the only one.
There's something special in the way she just fits into your life.
You know she's special. Gift her something that'll make her feel so.
Santro Xing Promotions: Repositioning of Santro
Santro Automatic
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The Five Seater Santro: A Consumer Awareness campaign
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CELEBRITY ENDORSEMENTS
Hyundai Santro has greatly benefited from its TV ad campaigns. Thanks to their
brand ambassador Shah-Rukh Khan Santro ads have the distinction of having the
highest recall value. With Preity Zinta adding more Xing to the campaign the run -
away success speaks for itself. More than the ads it is the positioning strategy of the
Santro that needs to be complemented. They have positioned the car as the
consumers first choice while buying a car for the first time in his life as al the first
things in his life are special. The initial ad aired featured Shah-Rukh with a certain
Mr.Kim, who also became an instant hit with the masses. Of interest is the fact that by
the time (Shah Rukh) Khan came around and agreed' to an endorsement contract, Mr
Kim had told Indian consumers a few things about Hyundai (the company) and theSantro (the car). It might even be argued that it was the fictitious Mr Kim - and not
brand ambassador Shah Rukh Khan - who first appealed to the left-brain of Indian
consumers by selling brand Hyundai, which went some way in later establishing the
Santro as a standard in the B' segment of the Indian passenger car market. That, of
course, was five years ago. Since then, Shah Rukh has been regularly endorsing the
Santro and its many variants, while Mr Kim dignifiedly withdrew into anonymity, his
job done.
Well, after a five-year interregnum, gentleman Kim is back in the Santro's
communication - though, at first glance, he doesn't come across as being particularly
gentlemanly any longer. Quite the opposite, he is rather curt - even boorish - in the
way he stops the cheerful Shah Rukh (driving a Santro) in the middle of nowhere and
tells him to hand over the car's keys, explaining that his contract for the Santro Zip
Plus is over'. He virtually dumps Shah Rukh by driving away with the car, leaving
the nonplussed endorser stranded on the highway. (Incidentally, this teaser' interludeis part one of a two-part communication.) If Mr Kim's behaviour is at odds with his
earlier warm, gracious persona, everything is soon explained - in the second part of
the communication. As Shah Rukh walks down the lonely road, a car draws up to
him. And out steps Mr Kim. An understandably angry Shah Rukh demands an
explanation, and Mr Kim readily offers one: the new Santro Xing, from which he has
just exited. Your contract for Santro Xing begins now,' he smiles genially at Shah
Rukh, handing him the keys of the new car. This was a smart move on Hyundais part
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as the consumer could easily relate to the new and improved version of Santro Xing
the earlier Santro zip plus. It was during this time that Hyundai promoted it as the
sunshine car and came out with the print and TV campaign featuring Preity Zinta.
This promotional campaign was successful in imparting a youthful and bubbly feel to
the brand. She is the physical embodiment' of the sunshine' that Santro supposedly
brings to the lives of its customers. To keep the excitement alive, they have aired the
ads with a storyline which has been broken up into four parts.
The first ad was the teaser that introduced the concept of sunshine (without actually
showing Preity Zinta). In the second part, we get a glimpse of Preity Zinta. It is only
in the third part that the love between Shah Rukh Khan and Preity Zinta blossoms.
The final ad in the series would delve into the chemistry' between the two.It is
therefore, rightfully said that Hyundai has been very smart in perceiving the
consumers interest and thus coming out with a campaign which is both visually
pleasing and is successful in putting its point across.
HYUNDAI ROAD SHOW "WORLD OF WHEELS"
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Hyundai has by hosting and participating in auto car shows believes in increasing its
visibility all across. Hyundai Motor India's second road show, the "World of Wheels"
(WOW), began its four-month long journey across the country on December 2, 2006,
with a grand display of nine cars from the Hyundai stable.
The "World of Wheels" will drive into 34 non-metro cities, beginning with Ludhiana
in Punjab and then move to other cities in the Northern region. In each of the cities,
covering all the four regions, the road show would be a three-day event, with a special
press preview on the inaugural day. All the seven Hyundai brands currently sold in
India will be on display at the exhibitions. As a special attraction, Hyundai has
shipped from Korea two premium Hyundai cars which are yet to be launched in India
- the super-luxury sedan Azera and the sports coupe Tuscani. This is for the first time
that the two cars would be displayed all over India.
The World of Wheels will not only showcase the sophistication of Hyundai's
technological advancement and design capabilities, but also give the people an
opportunity to book their vehicles at the venues. The road show in each city promises
to be an exciting affair with special offers and a "WOW package" of goodies for
people who book their cars at the venue. The event will also have its share of fun and
entertainment - with game-shows, contests and exciting prizes.
The country wide road show is part of Hyundai Motor India's continuing effort to
connect with and reach out to the customer directly. The event will give our
customers in non-metro cities a first-hand experience of the entire range of Hyundai
cars in India and some which may enter India in the near future.
Ques1
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Total income
Below 1 lakh 5
1 lakh1.5 lakhs 10
1.5 lakhs3 lakhs 22
Above 3 lakhs 13
10%
20%
44%
26%
Below 1 lakh 1 lakh 1.5 lakhs 1.5 lakhs 3 lakhs Above 3 lakhs
This doughnut graph represents the income level of the respondents. Under this
category as we can see that a lion share of respondents i.e. 44% belongs to middle
group that is with income between 1.5 lakhs to 3 lakhs.
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Ques 2
For how many years you are using Hyundai santro
1 year 5
2 year 15
3 year 20
More than 3 year 10
10%
30%
40%
20%
1 year 2 year 3 year more than 3 year
This pie graphs shows the experience of number of respondents who are using
Hyundai santro. As we can see that 40% respondents are using Hyundai santro from
last 3 years.
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Ques 3
Do you like Hyundai Santro?
Yes 42
No 8
1
No
Yes
0
10
20
30
40
50
No
Yes
This bar graphs represents responds of respondents about their likings for Hyundai santro.
And as we can see that 84% of respondents like Hyundai santro, which is a very good
sign of consumer satisfaction.
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Ques 4
What were the factors which influence you to buy Hyundai santro?
Brand name 13
Style 2
Fuel efficiency 15
Comfort 10
Performance 5
Any other 5
26%
4%
30%
20%
10%
10%
Brand name style Fuel efficiency
comfort Performance any other
This doughnut graphs represents the factors that influenced the respondents to buy
Hyundai santro. As we can see that 30 % of respondents buy their Hyundai santro for fuel
efficiency and 26% of respondents for brand name.
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Ques 5
Are you satisfied with your Hyundai santro?
Yes 38
No 12
1
no
Yes
0
10
20
30
40
no Yes
This bar graph represents the consumer satisfaction for Hyundai santro. As we see
that 76% of respondents are satisfied with their Hyundai santro.
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Ques 6
What you dont like about Hyundai santro
After sales services 20
Air conditioner 5
Comfort 8
Fuel efficiency 2
Performance 9
Any other 6
0
5
10
15
20
25
1
After sales services air conditioner Comfortfuel efficiency Performance any other
This bar graph represents disliking about their Hyundai santro. This shows that 40%
of respondents are not satisfied with after sales services.
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Ques7
What you like about Hyundai santro
After sales services 8
Air conditioner 12
Comfort 10
Fuel efficiency 15
Performance 5
Any other 0
0
2
4
6
8
10
12
14
16
1
After sales services Air conditioner Comfort
Fuel efficiency Performance Any other
This bar graph represents likings about their Hyundai santro. This shows that 30% of
respondents are satisfied with fuel efficiency of the car.
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Ques 8
Did advertisement influenced your Hyundai santro buying decision
Yes 39
No 11
1
No
Yes
0
10
20
30
40
No Yes
This bar graph represents the advertisement influence in the buying decision of
Hyundai santro. This shows that advertisements influenced 78% of respondents for
buying Hyundai santro.
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Ques 9
Hyundai santro to you
Just a car 5
More than a car 15
The sunshine car 10
The family car 20
10%
30%
20%
40%
Just a car more than a car
The sunshine car the family car
This doughnut graph represents the emotional bonding of the respondents with Hyundai
santro. This shows that for 40% of respondents, Hyundai santro is not just a car but a
Family Car.
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Observations & Recognitions
Today, in India there are only 5 cars among 1000 people so there is a huge marketto exploit.
According to Recent Sales Satisfaction survey Hyundai lies at the second lastposition.
Thus Hyundai should train their technical staff to deal with customer who is in the
workshop to get their cars serviced/repaired. No doubt it is hard to manage and
handle such a big network but the company has to handle it properly to satisfy its
customers. We should always remember that loyal and satisfied customer gives a
chain of new customers.
114 114
110109
105
102 102
96
98
100
102
104
106
108
110
112
114
SSI Scores
Companies
Indian Sales Satisfaction Index (SSI)
HM/MitsubishiHonda SielFord IndiaM&MDawood MotorsHyundaiMUL
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Hyundai should emphasis on after sales services. Hyundai should launch the CNG variant of its models used for public transport. Hyundai dealer network is still small as compared to segment it is targeting. So it
has to expand its dealer network to keep up with its rising sales.
The comprehensive promotional campaign of Hyundai should continue giving itmore brand visibility.
Hyundai should take this fact into consideration that the demand for passengercars in the long run will be robust due to rising income levels and also due to rise
in Indian middle class.
HMIL can also focus on exports as this is one area which is having the largestshare in its Top line growth.
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CONCLUSION
This project was conducted on marketing strategies of Hyundai motor India ltd. with
focus on Hyundai santro. In this project questionnaire was prepared to know the
consumer satisfaction level of respondents and the conclusion is based on the same.
Few years ago, on September 23rd 1998 the company launched Hyundai santro in the
Indian market. The company was new in the market but still the company sold around
17000 units in first five months. The company has already created their market share till
now and can be distincted from other brands.
From findings and analysis we can conclude that the consumers are very much satisfied
from their Hyundai santro. For them Hyundai santro is not just a car but for them i ts a
family car, that is the company has already created their emotional bindings with their
consumers. As Hyundai santro is a middle segment car so its main focus is to give more
fuel efficiency, and according to respondents, the company has given them what they
want, that is most of the respondents are satisfied from fuel efficiency of the car. But the
company also lies behind in some fields like few respondents were not happy when after
a sales service is taken into account.
Success will largely be determined to the extent a company can differentiate itself in
terms of intangibles that go with a car. Thus, success could well hinge on the best of
bundle of services that a carmaker can provide.
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QUESTIONNAIRE
Name ____________________________________
Address ____________________________________
Age ____________________________________
Occupation ____________________________________
Ques1
Total income
A) Below 1 lakh B) 1 lakh1.5 lakhs
C) 1.5 lakhs3 lakhs D) above 3 lakhs
Ques 2
For how many years you are using Hyundai santro
A) 1 year B) 2 year
C) 3 year D) more than 3 year
Ques 3
Do you like Hyundai Santro?
A) Yes B) no
Ques 4
What were the factors which influence you to buy Hyundai santro?
A) Brand name B) style
C) Fuel efficiency D) comfort
E) Performance F) any other
Ques 5
Are you satisfied with your Hyundai santro?
A) Yes B) no
Ques 6
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What you dont like about Hyundai santro
A) After sales services B) air conditioner
C) Comfort D) fuel efficiency
E) Performance F) any other
Ques7
What you like about Hyundai santro
A) After sales services B) air conditioner
C) Comfort D) fuel efficiency
E) Performance F) any other
Ques 8
Did advertisement influenced your Hyundai santro buying decision
A) Yes B) no
Ques 9
Hyundai santro to you
A) Just a car B) more than a car
C) The sunshine car D) the family car
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BIBLIOGRAPHY
Marketing Management by Phillip Kotler Brand positioning by Subroto sengupta Positioning: The Battle for your mind by Al Ries & Jack Trout
Newspapers, Journals & Magazines
Business World The Economist Economic Times Autocar India
Websites
www.hyundai.co.in www.hyundai.com www.google.com www.agencyfaqs.com www.brandchannel.com www.superbrands.org www.marketingprofs.com www.netmba.com www.economictimes.com www.blonnet.com
http://www.hyundai.co.in/http://www.hyundai.com/http://www.google.com/http://www.agencyfaqs.com/http://www.brandchannel.com/http://www.superbrands.org/http://www.marketingprofs.com/http://www.netmba.com/http://www.economictimes.com/http://www.blonnet.com/http://www.blonnet.com/http://www.economictimes.com/http://www.netmba.com/http://www.marketingprofs.com/http://www.superbrands.org/http://www.brandchannel.com/http://www.agencyfaqs.com/http://www.google.com/http://www.hyundai.com/http://www.hyundai.co.in/