Situation Analysis

Professional Manager
Employee 75,000 193 countries

Good Reputation
sold 3m unit/year 63rd as a popular brand

Situation Analysis (coutd)

Market
cover Whole world Revenue $ 84 billion

Competitors
BMW 116i
High price

Situation Analysis (coutd)

Economic Factors
Normal level

Socio-cultural Factor
Careless

Marketing Goals & Objectives

Goals
Keep you alive
Make you drive safety Save your guest More

Marketing Goals & Objectives

Objective
1+2 door Improve Air bag 4-Wheel ABS

Strengths
Growing brand reputation. Hyundais brand is the second fastest growing brand in the automotive sector. In 2012, Hyundais brand value grew by 24% to US$ 7.43 billion and became the 53rd most valuable brand in the world, according to Interbrand. This is a result of Hyundais excellent quality cars, marketing efforts and growing customer base. Strong focus on R&D. Hyundai has established R&D centers in 6 different locations and has smaller R&D offices all around the world. Firms commitment to innovation yielded positive results and the business has become one of the automotive leaders in producing high quality, reliable, durable and safe cars. It has received many rewards including the latest North American Car of the Year reward in 2012. Effective resource allocation. For the 2011 financial year, Hyundais ROE was 20.6% compared to GMs 19.9% and Toyotas 4%, generating very high returns for the shareholders. In addition, Hyundai was using its assets more efficient than competitors with 7% ROA compared to GMs 5.2% ROA and Toyotas 1.4% ROA.

Strengths
Growth in Europe. While the Europes car sales were falling in 2012, Hyundai was experiencing significant growth in the region. It grew its market share in Europe from 2.9% in 2011 to 3.5% in 2012. This growth led to a competitive advantage over its rivals, Toyota and Volkswagen that were incapable to grow their operations. Successful marketing campaigns. Hyundai has launched many successful marketing campaigns through their sponsorship of many sport events and using celebrities to promote their products, which resulted in increased brand popularity.

Weaknesses
Product recalls. Over 2012, Hyundai recalled more than 300,000 cars in different regions to fix manufacturing and design defects. Product recalls negatively impact Hyundais reputation and could erode its competitive advantage. Hyundai has no presence in Japans car passenger market. Hyundai has pulled their passenger car division from Japan in 2009 due to low sales and weak brand perception. Japan represents a large automotive market and performing poorly in this market leaves Hyundai at competitive disadvantage. Negative publicity. In 2012, Hyundai has been accused over inflated fuel economy numbers. Now the business will face federal lawsuit and will have to reimburse all the damage done to the customers.

Opportunities
Increasing fuel prices. Increasing fuel prices open up large markets for Hyundais hybrid, electric and hydrogen fueled cars as consumers shift towards cheaper fuel types. Global demand for ecological vehicles. Cars that emit large quantities of CO2 pollute air and negatively affect the environment. Consumers are aware of this negative impact and will likely choose fuel-efficient hybrid, electrical or hydrogen fueled cars that Hyundai is currently offering. Changing customer needs. By introducing new car models, Hyundai could satisfy varying consumers tastes and needs for more fuel-efficient, ecological cars and access wider customer group.

Threats
Exchange rates. Hyundai earns more than half of its revenue outside the South Korea. Exchange rate fluctuations threaten Hyundais profits if the KRW would appreciate against other currencies. Rising raw material prices. Raw metal prices (main raw material for car manufacturers) are rising due to increasing global demand, negatively affecting automotive firms profits. Decreasing fuel prices. Some analysts argue that due to shale gases future fuel prices should drop as a result making hybrid and alternative fuel cars less attractive to consumers. Intense competition. Hyundai faces strong competition from other automotive companies and more than ever competes on price rather than differentiation lowering firms profits.

Marketing strategy

Product developm ent

4Ps (1st )
Product
A survey is done to select optimal # for each design(sedan , hatchback ,etc.) and new brand name regarding the after sale service and warranty it should not be different from the other brands provided by the company having the same price

4ps (2nd)
place
Selling the new car will be authorized through the network of agents nationwide

4ps (3rd )
Price
Since a one of its kind in the market then penetrating pricing policy (set a low price to motivate users to buy and give up what they used to buy from other competitors )

4ps(4th )
Promotion
Advertising using Radio , Tv & newspapers Sales promotion by allowing potential clients to participate in a test drive Public Relations
sponsorship of various sporting and social events to promote the product in the population participation in various trade fairs, exhibitions, shows and events nationwide character or that relate to the business of the company Direct marketing by using email marketing to already existing users and also using social media marketing