KHUSHAL

GOEL (2014134) ABC1

Business Marketing
Term V

Individual Assignment on
Hyundai Motors India Limited

Submitted To:
Prof Rajeev Kamble

Business Marketing

Submitted By:
Khushal Goel
2014134
ABC1

KHUSHAL GOEL (2014134) ABC1

Hyundai motors India limited.

Hyundai motors India limited is a wholly owned subsidiary of Hyundai Motor
Company.
This company has the second highest market share in India of around 17% 2014.
This company is giving a very challenging competition to its rivals and has been able
to successfully earn the heart share of the Indian consumers.
Consumer marketing has always been a forte of HMIL, but as it belongs to the
automobile sector in India, scope for business marketing is not huge but decent
enough for it. HMIL has been able to successfully carve a niche for itself in this
difficult business, marketing scenario in India.
Business marketing is different from consumer marketing in many aspects such as:
Quantity sold is higher and in bulk for business marketing.
Price quotation done is lower than that in consumer marketing.
Business marketing is done on a relationship basis.
To cater to needs of corporate consumers and create value for them.
In these many ways is Business marketing different from consumer marketing for
HMIL.
B2B marketing has a lot of significance for automobile companies as it helps them to
create a stronger relation with the corporate houses across the country, also it helps
them to maximize their brand value across the Indian corporate industry, which is
necessary for future growth and development of a company.
Practicing business marketing in this industry is difficult task to compete in. This is so
because business marketing is all about customization, catering to individual needs
of different clients and suiting to their tastes and preferences. The most important
factor here would be business marketing essentially needs to create some sort of
value for the client which can be a direct measurable one or an indirect value
creation whose benefit is reaped over the years.
The problem faced by HMIL here are the following:
Level of differentiation in this product category is very minimal.
Buyers have pre-decided brands and products in their mind while making
purchase.
Gatekeepers for this product class generally prefer individual tastes, above
rational buying.
In B2B purchase for this category generally no tenders or public invitation or
auctions are called for, except for government agencies, thereby it is difficult
to target individual client needs.
Customization of products sold by HMIL is not possible as they are highly
standardized and thereby might not be fulfilling personalized requirements of
each client.
These are the few challenges faced by HMIL for business marketing of their products
in automobile sector.
In business markets the market structure is quite different from that of consumer
markets. Here the demand of the product is based on relative activity of the client
organization. The target market is drastically small as compared to consumer

KHUSHAL GOEL (2014134) ABC1

market. Purchases happen in bulk so thereby for doing business in this segment the
company has to follow a different marketing mix and marketing strategy.
Here the following strategy is applied:
Primarily the company prospects any customers in need of their product
through external sources or industry information.
Then they qualify the order, that can be fulfilled by them or not.
Next, they make an initial pitch to the company and understanding their needs
further with details.
Finally making required negotiations and closing the deal.
This is how a B2B marketing is handled by HMIL in india.

Individual research and observation:

I got a chance to visit Hyundai motors Nagpur dealership, and their I met Mr Parag
Bante, who is the sales head at Ketan Hyundai (Nagpur). According to the
discussion I has with him, the following were my observations regarding B2B
marketing of HMIL:
Usually bulk purchasing or B2B sales of cars dont happen through retail
dealerships.
A corporate deal, which they term as anything above 2 cars is fulfilled directly
by the company.
The maximum number of cars sold by a dealer to a single buyer at a go is 2.
Generally apart from corporate houses, many big builders book cars in bulk
as incentive schemes for real estate buyers. Even this is done directly through
HMIL head office and not thorough individual dealership.
Corporate houses do purchase in bulk from HMIL though online enquiries and
direct contact with HMIL sales team, dealers are not even qualified for.
The price quoted with B2B depends on the value of the sale or quantity of the
order. Sometimes the price per car in B2B deal is as low as the landing price
per car for dealers. That however varies from deal to deal.
This was the valuable insight I could generate from my interview with Mr Parag
Bante.

Critical Evaluation & Analysis:

Having observed the above information in details about the organization and its
strategies my analysis of the Business Marketing scenario of HMIL is:
HMIL is not highly focused on business marketing of its products.
Its marketing strategies and companys vision have more focus on consumer
marketing because that is where its bulk revenue comes from.
Prospecting consumers is a difficult task for HMIL as there is rarely a
requirement made available public.
Most of business marketing deals happen through relations and brand
preference in case of this product class and also by the availability of reliable
after sales service.
Products offered by HMIL have low or no differentiation from its nearest
competitor Maruti Suzuki India Ltd, thereby often they loose the deals to them
because of their after sales network and reliability amongst Indian consumers,
specially in Government deals.

KHUSHAL GOEL (2014134) ABC1

HMIL does not have an aggressive approach towards business marketing and
thereby it is not able to cash upon its products amongst the corporates in
India.

These were the few observations I could takeaway from facts and insights.

Recommendations & Suggestions:

My recommendation to HMIL for development of its business marketing would be:
HMIL needs to change its marketing focus more towards Business Marketing.
They need to develop dedicated Sales force, which would be trained and
focused only towards getting B2B deals for the organization.
Atleast 4 such teams should be deployed for each region namely, North,
south, east, west parts of India.
They should also empower their dealers for handling such Business
Marketing deals because, they have a big dealer network any therefore any
dealer can help them generate corporate sales query, which can be later
converted into sales by HMIL sales force.
They should start making inroads in bureaucratic environment of the
government, as these relations would help them in future to qualify as
prospective vendor for government contracts.
They should be ready to make products customized for individual deals, which
are in bulk so that customers can consider them during decision making
process.
They need to have a POD from their nearest rival Maruti and Tata to an extent
that they can covert their leads generated, which can be in terms of
customization offered, order delivery, pricing or after sales service. They need
to focus on one of these and nurture them to have an edge over competition.
These were my critical analysis and suggestions for HMIL to develop and better their
Business Marketing in India.