Marketing Strategies of Hyundai in India

Marketing Strategies of Hyundai in India A marketing strategy explains how the business will achieve the objectives laid down in the overall marketing plan . The marketing strategy explains how the business will reach its target audience , which should lead to an increase in the sales . Marketing strategies should include clearly defined roles and the responsibilities and should also set time scales to each task . A marketing strategy may seem similar to the business strategy , however it is different in that it focuses on one specific aspect of the business , the customers . A business strategy looks at all the components of a business such as the supply chain , the manufacturing operation , human resources and so on . The marketing strategy is only concerned with effecting a plan that will bring the businesses products or services to their target audience . WHY MARKETING STRATEGY IS IMPORTANT ? Marketing plays an important role in the strategic planning process for many organizations . Although some marketing positions are represented at the corporate level , most are at the functional level within the business units of an organization . Marketing is involved in the strategic planning at all organizational levels . Strategic marketing describes the marketing activities that affect the corporate , business,and marketing strategic plans . Strategic marketing activities can be classified into three basic functions . First, marketers help orient everyone in the organization toward markets and the customers . Thus , they are responsible for helping the organizations execute a marketing philosophy throughout the strategic planning process. Second , marketers help gather and analyze the information required to examine the current situation , identify trends in the marketing environment , and assess the potential impact of these trends . This information and analysis provides input for the corporate , business , and marketing strategic plans . Third , marketers are involved in the development of the corporate , business , and marketing strategic plans . Marketings influence varies across the organizations . For organizations driven by a marketing philosophy , marketing necessarily plays a key role in the strategic decision making . The trend toward pushing the strategic planning responsibility further down the organization is increasing the marketings clout in an organizations strategic planning process . Marketing management relates to specific product the marketing strategies . It differs from strategic marketing in its basic orientation . Strategic marketing focuses on the broad strategic decisions at the corporate and the business levels . Marketing management is concerned , by contrast , with specific strategic decisions for individual products and the day-to-day activities needed to execute these strategies successfully . At the operating level , marketing managers must focus on the four Ps of the marketing mix : price, product, promotion, and place . The strategic role of the marketing and marketing management are now in a period of considerable change and evolution . These changes are due to a number of important environmental phenomena that are affecting the way many firms do the business. To begin, many well known companies work closely with dedicated partners on the supply side and the distributor side of their business , expecting their distributors to play pro-active roles in the development of the services and marketing strategy . For example on the supply side , the modern day Nike does very little manufacturing of its own and focuses largely on the marketing . In this vein , companies such as this are actually embedded in the business networks , comprising strategic alliances among the suppliers, distributors , and the marketing firm . MARKETING STRATEGIES OF HYUNDAI MOTORS IN INDIA HYUNDAI MOTOR COMPANY The Hyundai Motor Company is a South Korean multinational automaker headquartered in Seoul , South Korea . Hyundai was founded in 1967 and it along with Kia , together comprise the Hyundai Motor Group , which is the worlds fourth largest automobile manufacturer based on annual vehicle sales in 2010 . In 2008 , Hyundai (without Kia) ranked as the eighth largest automaker . In 2012 , Hyundai sold over 3.6 million vehicles worldwide . Hyundai operates the worlds largest integrated automobile manufacturing facility in Ulsan , which is capable of producing 1.6 million units annually . The company employees about 75,000 persons worldwide . Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms . Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947 . Hyundai Motor Company was later established in 1967 . The companys first model , the Cortina , was released in cooperation with Ford Motor Company in 1968 . When Hyundai wanted to develop their own car , they hired George Turnbull , the former Managing Director of Austin Morris at British Leyland . He in turn hired five other top British car engineers . They were Kenneth Barnett body design , engineers John Simpson and Edward Chapman , John Crosthwaite ex -BRM as chassis engineer and Peter Slater as chief development engineer . In 1975 , the Pony , the first Korean car , was released, with styling by Giorgio Giugiaro of ItalDesign and power train technology provided by Japans Mitsubishi Motors . Exports began in the following year to Ecuador and soon thereafter to the Benelux countries . HYUNDAI IN INDIA Hyundai Motor India Limited is currently the second largest auto exporter from India . It is making India the global manufacturing base for the small cars . Hyundai sells several models in India , the most popular being the Santro Xing , i10 and the i20 . Other models include Getz Prime, Accent, Terracan, Elantra, second generation Verna, Tucson, Santa Fe and the Sonata Transform . Hyundai has two manufacturing plants in India located at Sriperumbudur in the Indian state of Tamil Nadu.. Both plants have a combined annual capacity of 600,000 units . In the year 2007, Hyundai opened its RD facility in Hyderabad , employing now nearly 450 engineers from different parts of the country . Hyundai Motor India Engineering (HMIE) gives technical engineering support in Vehicle development and CAD CAE support to Hyundais main RD center in Namyang Korea . In 2010 , Hyundai started its design activities at Hyderabad RD Center with the Styling, Digital Design Skin CAD Teams . South Korean car maker Hyundai, which as per reports is also worlds fastest growing automaker and fourth largest car manufacturer across the globe , has launched a new car , Hyundai EON in October 2011 in India . Eon is an entry-level car but at the same time it is very spacious with a large boot . The car has 814 cc engine, promising to deliver the mileage of over 20 km per litre . MARKETING STRATEGIES OF HYUNDAI IN INDIA Target Markets Hyundai marketing strategy is differentiated marketing.The primary consumer target is middle to upper income professionals , who need value for their money and comfortable ride in city conditions .The secondary consumer target is college students who need style and speed . The primary business target is mid sized to large sized corporates that want to help their managers and employess by providing them a car with ease of transport . The secondary business target is entrepreneurs and small business owners who want to provide discounts to managers buying a new car. Marketing Communications By integrating all messages in all media the Hyundai will reinforce the brand name main points of product differentiation . Research about media consumption , pattern will help the advertising agency to choose appropriate media and timing to reach prospects before during the product introduction .Thereafter , advertising will appeared on a pulsing basis to maintain brand awareness and communicate various differentiation messages . The agency will also co-ordinate public relation efforts to build Hyundai brand support the differentiation message . To attract market attention encourage purchasing , the Hyundai offer a limited time , registration insurance . To attract ,retain motivate channel partners for a push strategy , the Hyundai use trade sales promotions and personal selling to channel partner . Road shows The company plans to stage road shows , to display vehicles in the pavilions during various college festivals and exhibition . This will appeal to youngsters more and attracts them towards the cars of Hyundai. Television advertisements Advertisements to promote and market the products will be shown on leading television channels. Major music and sports channels will promote and they will reach out to the youth will be promoted through Star , Zee , Sony and Doordarshan etc as it has more viewers . Radio Radio is the medium with the widest coverage . Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural areas , whether or not listeners actually own a set.. So radio announcements will be made and advertisements will be announced on the radio about the products features and price, qualities, etc. Print Ads Daily advertisements in leading newspapers and magazines will be used to promote the products. Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various other locations . Workshops and Seminars Workshops and seminars will be held in colleges and big corporate to make people aware about the companies past performance and products features , their affordability and usage , vast distribution network . Road shows will be conducted where free trials of the cars would be given . Banners, neon signs Hoardings , banners , neon signs will be displayed at clubs , discs , outside theatres and shops to promote the brand cars . Booklets and pamphlets Booklets will be kept at car showrooms , retail battery outlets , etc for the customer to read. These booklets will provide information about the company , the products offered which suits the customers need accordingly . Rural Marketing Hyundai Motors India has introduced a new marketing initiative Ghar Ghar Ki Pehchaan to tap the India rural car market . The company has rolled out special schemes for government employees in rural areas and members of gram panchayats on the purchase of Santro . Hyundai Motor is keen to expand its market to rural areas with setting up 300 new rural sale outlets , all this expansion is in progress for the launch of the cheapest car from the Hyundai stable until November this year . Currently Hyundai is maintaining its standard 325 dealership outlets within cities and this new expansion strategy could make the rural outlet number network extend to 1,000 . Hyundai Motors , Indias second largest car manufacturer has announced to generate employment for about 2,000 sales executives at these rural outlets . According to Hyundai Motors , the car markets which are present in areas outside the superior 40 cities are marked under rural areas . Arvind Saxena , director of marketing sales at Hyundai Motor India given in an interview to Financial Chronicle said that the company has already placed 700 new outlets at rural areas with 300 more coming in way within the next few months . These outlets are just the basic models made with small investments and these are not the typical permanent outlets made with brick and stone . Their basic plan is to give a feel to rural folks with car demonstrations , test drives in addition with basic little repair requirements . The size dimensions for these rural showrooms would be 900 sq ft.. Around 150 of these rural outlet showrooms would house a 2,000 sq ft service workshop of their own . A four member team is made with 2 sales and two executives for service by the Korean Autocar giant for the rural model and they will visit the rural outlets at regular intervals. The ever increasing importance of rural areas is signified from figures which show that they contribute about 31 per cent in sales for the company. According to Saxena the company plans to generate 33 per cent share, by the end of 2013 from these rural models as they help amazingly in increasing the sales. It is estimated that 356,717 cars were sold by Hyundai n 2012.