Marketing Strategies - HYUNDAI
The case discusses the marketing strategies of Korea based Hyundai Motor Company (HMC) in India. HMC entered India by establishing its wholly owned subsidiary Hyundai Motors India Limited (HMIL) in 1996. Within a year of launch of its first product - Santro, HMIL had emerged as the second largest car company in India.
The case describes in detail the entry, product, pricing, distribution and promotional strategies of HMIL. The case briefs the challenges faced by the company and its marketing plans in future. It also includes a note on the Indian passenger car industry, the leading player and its marketing strategy.
I believe that the primary reason for HMIL's success is that we never allowed ourselves to be complacent. We were continuously innovating at the marketplace, taking ourselves head on the competition."1
- YS Kim, former Managing Director, Hyundai Motors India Limited in 2002.
"As long as Hyundai keeps giving the Indian customer fresh new products at competitive prices and builds excitement around them like they have successfully done, they can sustain their good run so far."2
- Vinay Kamath, Journalist with Businessline in 2002
The Price Cut
In August 2004, a leading business newspaper reported that Hyundai Motors India Limited (HMIL), an Indian subsidiary of the South Korea- based Hyundai Motors Company (HMC) was expected to reduce the price of its flagship car - Santro - by as much as Rs 40,000. Industry experts were expecting a reduction in Santro's price in response to the price war being waged by the market leader in India - Maruti Udyog Limited (MUL), which had reduced the price of its largest selling car in the B segment - Alto - by Rs 58,000 in two price cuts starting from September 2003. This move had resulted in Alto replacing Santro as the largest selling car in the B segment in the period January to June 2004
Rebutting the report on price cuts, HMIL's managing director, BVR Subbu said, "We are not cutting prices on the Santro. We have allowed our competitors the prerogative of cutting prices."5 Several dealers of HMIL also felt that the company would not reduce Santro's price as it had not adopted such tactics earlier.
Santro had been the most successful product of HMIL and was also the largest selling car in the B segment till the fiscal year 2003-04.
Introduced in late 1998, Santro had emerged as the second largest selling car in India after MUL's M800 and had retained its position till March 2004 (Refer Exhibit II for the total units and value sales of the top eleven car models in India).
Click here to unlock this and over one million essaysShow More
Marketing may be defined as the process of formulating and implementing the design, positioning in market, advertising, and supply of products and services, and ideas to establish exchanges that are in line with the individual and organization goals (Principle of Marketing). There are several techniques of selling a product in marketing: advertising, selling and distribution of products or services to the customers. The strategy of the marketers is based on attracting potential consumers by making use of taglines, innovative packaging, having celebrity brand ambassadors, and media promotion with promises of fulfilling the needs of the consumers. There are similarly many techniques developed by insurance companies. Progressive insurance is a rapidly growing company leading by innovating. They have the saying “a leader in automotive insurance” (Progressive.com). This paper describes the company and the strategies that are implemented to draw consumers. It also focuses on the brand building of the company through advertisements.
The Harvard Business School case study Silvio Napoli at Schindler India summarizes the various problems and issues facing Schindler India regarding its entrance into the new foreign market, India. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators which is looking for potentially entering into the Indian elevator market. Main executive committee members predicted that the Indian industry showed great promise in terms of future growth potential. The company’s objective was to manufacture standardized elevators at a cost lower than current customized elevator market. Silvio Napoli, who is vice president of Schindler in Asia, was chosen to lead the new entry into India. To successfully enter and penetrate the Indian market, Silvio and company needed to consider a variety of factors like but not limited to: mode of entry and type of strategy to implement, organizational structure, outsourcing and logistics approaches, marketing, and domestic and global hiring procedures.
After a 4 P analysis of the company one found that it found itself in a luxury market where product quality and constant innovation are key points for the success. That is why the production process and its design can take even months. Product line is extensive however it is only conformed of high priced products. Price in this case is a guarantee of the quality present in the product. Moreover, high pricing represent an element of differentiation that the customer appreciates. However this is not a setback, LVMH has managed to have world wide presence and success. To accomplish it its selective retailing division is of high importance. Nevertheless, promotion posses the major challenge since its through this that the image of the product its transmitted that is why the company poses a major part of its budget in this section. It is Important to note that the percentage allocated is higher than those of most competitors.
Through the years, HMI has earned a reputation as a manufacturer of high quality, innovative products that continue to be award-winning and relevant. Therefore, because of its brand and inventive products-line, HMI can command a premium price for its products, increase its unit sales, and ultimately, gain buyer loyalty to its brand as buyers become strongly attracted to HMI’s differentiating features. Through this strategy, HMI emphasizes its uniqueness drivers—which are effective in creating HMI’s differentiation from its competitors—which include the company’s commitment to innovation, product research and development, strong customer service provided through a dealer network, and high customization of products. These aspects of HMI made the company’s name and brand well known to large customers such as corporations, architect firms, and governments, yet falls short in terms of the broader end-user consumer base.
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
The definition of “Car” is a four wheel engine motor vehicle used for transporting passengers and goods (Chew, 2012). The brand name PROTON is a truly made in Malaysia national car. The national car manufacturer, Proton Holding Bhd (PROTON) was one of the pioneer leadership in Malaysia automobile market which served the local and export market and it was once the top car sales until May 2011 (Chew, 2012). The automobile industry is one of the heavy industries which had contributed to the GDP of Malaysia and had benefited the economics of Malaysia (Chew, 2012).
Today, automobiles have gained a reputation of refined high-tech product rather than just a means of transport. It has become a moving living quarters, defining the social status of what people aspire to have when it comes to the type of life those people want. In today's automobile business operations, companies should pay more attention to developing the customer’s experience. The experience is an important part of customer value; great customer service is the advantage needed to measure the worth of goods or services. Therefore, only those great idea and marketing strategies can destroy the competition. This means, it is very important for companies to target the right market, set up compelling marketing strategies and make cutting edge ideas through complete analysis of the competition. Not too long ago Hyundai KIA Automotive Group stated that the Group’s global investment would be total 10.5 trillion; this was reported as the highest investment in the history of the company. The company then decided that the latest company’s investment program would mainly be used in Research & Development, and factory hardware facilities. In this paper, KIA Motors will be our example when analyzing marketing mix.
The Indian consumers have become much more open-minded and experimental in their perspective. There is now an augmented growth of western trend reaching the Indian consumer by the media and Indians working abroad. They are more open for western uses and this can take be an advantage for
Having both marketing strategies and both products analyzed and the history of the important marketing decisions made and techniques used by the company written down, it will be interesting to perform a critical analysis of how the market and business realities made an impact on the marketing of Tesla Motors, why it happened and what was the effect. The presence of the CEO and the impact he makes on the public and investor confidence will also be critically reviewed. Based on the results, a list of recommendations will be composed for both representatives and marketing specialists who work in the same or similar
The ever-accelerated updating of economic and commercial brings about a great number of changes and challenges in modern society , especially in the expansion of marketplace and influence of market opportunity research and analysis for different firms . It seems that market opportunity is playing significant role .Recently Hi-Micro company was established and have identified that the on-going globalization of the world economy, its strategic location, and the existing market structure provide them with a potential opportunity to develop as an international high-tech computer market leader. In recognition of the risks involved, Hi-micro test the market of Innovators and Mercedes to examine the basis for the opportunity, assess how these two products measure up against competing other companies , such as Wellbox and KnLs , determine potential market niches, and develop a strategic marketing plan. This current report, the Hi-Micro Market Opportunity Analysis, represents the process of marketing through the analyses of the following sections mainly for Hi-micro that are closely related to market opportunity analysis .
In year two Pangea has had an excellent financial performance, net operating profit has grown from $1.4 million in quarter 5 to $45.6 million at the end of the year. Our executive team was also willing to invest a lot in order to gain marketshare as well as profits. Our aggressive investments are demonstrated by the large sums of our operating expenses, which were as follows: $4.9 million when gross margin was $15.3 million in quarter 5; $6.9 million when gross margin was $20.7 million in quarter6; $9.9 million when gross margin was $36 million; $11.9 million when gross margin was $59 million. In addition to these second year expenses, we invested around $9 million dollars in the first two quarters each on research and development. Our executive team believed that these cost were necessary for the growth of our company and it proved to be a good strategy. Our investments were in such things as product improvements, opening sales offices, hiring salespeople, and rewarding and motivating sales people. Another important investment went to creating and revising our ads, and as a result our ad ratings have improved dramatically. We also increased our ad expenses from $700,000 early in the second year to $4.3 million at the end of the year, which increased our ad reach. Pangea¡¦s investments this year were instrumental in the great financial success of the company. This was demonstrated by the company¡¦s financial performance score of 26.95, which is well above that of the average and it is the highest score compared to our competitors.
The following report presents an Integrated Marketing Plan for Nokia in the UK. The plan deals with media planning, segmentation, strategic and tactic planning of IMC, evaluation and such. The main aim of this plan is to expand Nokia’s consumer base, establish Nokia’s brand values and position it among the target audience, and also communicate the brand values with customers effectively, while simultaneously influencing sales to grow. This plan is created to ensure maximum effectiveness in Nokia’s marketing approach. The main aim of this plan is to assist Nokia in their IMC activities in the UK.