HYUNDAI ’ S MARKETING

STRATEGIES IN INDIA
 THE INDIAN CAR INDUSTRY -
BEFORE & AFTER
• Since independence two dominant players in the car market-
Ambassador(HM) & Fiat(PA)
• GOI in the 1980s formed a joint venture with Suzuki to form
Maruti Udyog Limited(MUL)
• MUL launched Maruti 800 in 1983,priced at Rs.40,000
• Economic liberalization led foreign and domestic
manufacturers to enter the Indian automobile market.
• Ford Motors(US),GM(US),Toyota Motors(Japan),Daewoo
Motors(Korea),Honda Motors(Japan)
 HYUNDAI ’ S ENTRY IN INDIA
•
• Thorough study of the Indian automobile market
• Conducted market research
• Selection of vendors
• Set up of wholly owned subsidiary
• Introduction of a complete new car for Indian customers
•
 

 4 Ps of Marketing
 THE PRICE CUT
• Starting September 2003,MUL reduced the price of Alto
by Rs.58,000 in two price cuts
•
• This resulted in Alto replacing Santro as the largest
selling car in the B segment
•
• In mid 2004,HMIL with it’s 4 models
Santro,Accent,Sonata and Elantra had 19% market
share and was at the anvil to launch Getz in September
2004
•
 PRODUCT
• Santro: Technologically superior than competitors
• Unique design with more head room
• Driver’s seat positioned higher
• Child safety rear locks
• Pair of ultra-high strength steel bars built in the doors
 PRICE
Santro


• Targeted the B segment

• Pricing based on customer value perceptions
• Prices were not too high (Rs. 2.89 L-Rs. 3.49 L)


Accent


• Targeted the C segment

• Prices lesser than the competitors
• Base model priced at Rs. 5.35 L
•
Sonata


• Targeted premium segment

• Priced at Rs. 16 L
•
 PLACE ( DISTRIBUTION )
• Selected the dealers who could react fast to changing market
needs
•
• Based on educational background, financial net worth and
market knowledge
•
• Precautionary measures to avoid future conflicts
 PROMOTION
Santro


• Advertising contract to Saatchi & Saatchi

• Indian movie superstar – SRK
• Phase 1 - April to June 1998
• Phase 2 - July to Sep. 1998
• Early 1999 - Customer satisfaction campaign
•
Accent


• Mostly print media

• Highlighted improved technology
•
 PEST ANALYSIS
 POLITICAL SCENARIO
• Till 1980s - Tightly controlled car industry after
independence.
• Only 2 models on offer. Ambassador and Fiat.
• Restricted foreign entry.
• Pricing regulations very tight.
• Stricter trade regulations.
• 1991- Liberalization of Indian Economy.
• Car Industry opened up.
• Entry of foreign players.
• Change in GOI policies.
•
 ECONOMICAL SCENARIO
• Post 1991 – Liberalisation. Move towards a market-based
system.
• A revival of economic reforms and better economic policy in
2000s .
• More entry of FDI and foreign capitals.
• Change in industry structure in major sectors.
•
 SOCIAL SCENARIO
• Income level increases.
• Change in the Job scenario.
• More dispensable income in hand.
• Change in consumer perception.
• Small car released for the Indian Middle Class
 TECHNOLOGICAL SCENARIO
Pre 1980s - Slow improvement in technology
• Inferior quality but high price
• Restrictions in foreign collaborations
• Less expenditure and focus on R&D
• No innovation in models and performance
Post Liberalization

• Entry of foreign giants in Indian market

• More emphasis on technology transfer
• More JVs and FDI, new plants set up
• More investment and focus on R&D
• Intensifying competition in all segments
• More emphasis on product and process innovation
•
 MARKETING OF SANTRO
q Comfortable &Technologically superior to any other B segment car.
q Santro LP , Santro LE, Santro GS.
q Pricing Based On Customer Value Perceptions
q Positioning - Family Car ( Age group 35 – 45 years).
q Stringent Dealership selection process
q Advertising Agency – Satchi & Satchi.
q Brand Ambassador – Shahrukh Khan.
q Customer Satisfaction Campaign.
q
 ACCENT LAUNCH IN INDIA
q Diversification to reduce risks
q Target Segment – C segment.
q Lancer, Esteem , Ford Ikon already established market players
q Accent launched in 1999 & became largest seller in 2002
q Launched CRDi Technology(common rail direct injection).
q Ad campaign – “The Next Step” & “Stupid Diesel car”.
q Launched SONATA for the premium D segment.
q Tag Line – “Dream about by everyone, Owned by a select few”
 REPOSITIONING SANTRO
q Increased Competition – Zen , Wagon R , Alto.
q Positioning changed from “Family Car” TO “Sunshine Car”.
q Focus on young couples i.e.25 – 30 years as target segment
q Brand Ambassadors – Shahrukh Khan & Priety Zinta.
q Rural Marketing initiative with “Santro UTSAV” across 7 states
q 33% Santro sales from Rural market in 2003
q Signed a contract with PNB for financing Hyundai Cars.

q
q
q
SWOT ANALYSIS
 STRENGTHS
•
• The Quality Advantage
•
• A Buying Experience like no other
•
• Level of satisfaction was high
•
• Informative campaigns
•
 WEAKNESSES
• Price risks
•
• Less number of models offered
•
 OPPORTUNITIES
•
• HMC setup its wholly owned subsidiary
•
• HMIL established its manufacturing unit
•
• Leading growth
•
• Low manufacturing costs and low labor costs
•
• Retail financing
•
 THREATS
•
• Too many players in the market leading to intense competition
•
• Risk factor
•
• Business Factor
•
 CHALLENGES AHEAD
• ALTO emerging as the largest selling car
•
• Price cuts of Zen, Wagon R and Alto
•
• Production crunch at HMIL
•
• Relaunch of ‘Esteem’ in the C segment
•
 RECOMMENDATONS
• Price cuts in SANTRO
•
• Launching new variant in the B segment
•
• Launching new variant in the C segment
•
• Increasing Production Capacity
•
• Green Initiatives
•
•
 CONCLUSION
• New Approach to successful product launch
•
• Innovative Marketing Strategy
•
• Constant tracking and changing with changes in market
dynamics
•
 

 Thank you !
