MAKETTING MANAGEMENT

HYUNDAI MOTOR INDIA LIMITED:

AN OVERVIEW

JEFFERY RANJITH JOSEPH (F14025) & JOY INFANT (F14029)

LOYOLA INSTITUTE OF BUSINESS ADMINISTRATION
CHENNAI
 CONTENTS
ABSTRACT ..................................................................................................................................................................2

INTRODUCTION .........................................................................................................................................................2

EARLY STAGES OF HYUNDAI ................................................................................................................................2

MARKETING STRATEGY 2013 ................................................................................................................................3

HYUNDAI SWOT ANALYSIS....................................................................................................................................3

LOGO ............................................................................................................................................................................5

DESIGN ELEMENTS OF HYUNDAI LOGO .............................................................................................................6

SITUATION ANALYSIS .............................................................................................................................................6

OBJECTIVES................................................................................................................................................................6

STRATEGIES PRODUCT ............................................................................................................................................7

MARKETING COMMUNICATIONS .........................................................................................................................8

MARKETTING PRODUCT MIX ................................................................................................................................8

 Price.................................................................................................................................................................8

 Promotion ........................................................................................................................................................8

 TAREGET SEGMETATION ....................................................................................................................... 10

PROBLEMS FACED BY HMIL: ............................................................................................................................... 10

SEGMENTING & TARGETING ............................................................................................................................... 11

FOUR P'S .................................................................................................................................................................... 11

 PRICE ........................................................................................................................................................... 11

 PLACE .......................................................................................................................................................... 11

 PROMOTION ............................................................................................................................................... 12

 POSITIONING.............................................................................................................................................. 12

STRATEGY ADOPTED BY HMIL ........................................................................................................................... 12

OPPORTUNITIES FOR THE CAR INDUSTRY IN 1980S ...................................................................................... 13

OPPORTUNITIES USED BY HMIL IN THE INDIAN CAR MARKET ................................................................. 13

Marketing strategies for TATA Nano (Four P's) Product a ......................................................................................... 13

CONCLUSION: .......................................................................................................................................................... 14

REFERENCES: ........................................................................................................................................................... 14

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ABSTRACT
Hyundai Motor India Limited is India’s leading exporter of passenger cars with a market share of 48 percent
of the total exports of passenger cars from India. With a prime objective to fulfill the needs of diversified
customers, the company has been continuously offering variety of its brands with innovative features to
Indian customers. Since inception, Hyundai Motors India Limited has dominated the automobile market
with the reputation of being the fastest growing automobile manufacturer in India. Presently, Hyundai
Motor is considered as the largest exporter of automobiles to European countries. The object of this paper
is to evaluate the performance of Hyundai Motors India Limited with respect to Domestic Sales, Export,
and Profit after tax, Production

KEYWORDS: Domestic Sales, Export, Profit after tax, Production.

INTRODUCTION

The Hyundai Motor Company is a South Korean multinational automotive manufacturer headquartered in
Seoul, South Korea. The company was founded in 1967 and, along with its 32.8% owned subsidiary, Kia
Motors, together comprise the Hyundai Motor Group, which is the world's fifth largest automaker based on
annual vehicle sales in 2012. In 2008, Hyundai Motor (without Kia) was ranked as the eighth largest
automaker. As of 2012, the Company sold over 4.4 million vehicles worldwide in that year, and together
with Kia total sales were 7.12 million.
Hyundai is currently the fourth largest vehicle manufacturer in the world. Hyundai operates the world's
largest integrated automobile manufacturing facility in Ulsan, South Korea, which has an annual production
capacity of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai vehicles are
sold in 193 countries through some 6,000 dealerships and showrooms.

EARLY STAGES OF HYUNDAI

Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947. Hyundai Motor
Company was later established in 1967. The company's 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. In 1984, Hyundai exported
the Pony to Canada, but not to the United States, because the Pony didn't pass emissions standards there.
Canadian sales greatly exceeded expectations, and it was at one point the top-selling car on the Canadian
market. In 1985, the one millionth Hyundai car was built.

The 1960s will be conducive to Chung Ju-yung who puts his talents to Korea General Park Chung-hee. It
will be the builder of the highway that connects Seoul to Busan in 1968. He engages in shipbuilding, where
excellent Koreans. Its shipyards will become the largest in the world, including those of Ulsan. In 2006,
Hyundai is the largest shipbuilder global production value.

Hyundai Motors was established in 1967. The company will produce the first Korean car 100% from 1973,

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the Pony. Chung Ju-yung immediately understands the economic importance of public works and
construction in the Middle East, where South Korea imports most of its hydrocarbon consumption. Hyundai
will be chosen several times to make major infrastructure projects in the Middle East. In 1983, Hyundai
Electronics is created in a form of diversification. His business grows primarily on the markets for precision
engineering, petrochemical and robotics. The group also created a subsidiary, Hyundai Asan specializes in
projects of cooperation between South Korea and North Korea.

Having bought the Kia brand in 1998, Hyundai Motor is now the 5th car manufacturer, with 3.7 million
vehicles sold worldwide. First Korean car manufacturer, Hyundai became the first employer in the country
with 170 000 workers, and second behind Samsung in the turnover.

MARKETING STRATEGY 2013

The car at first glance resembles a styling pastiche derived from Honda, Fiat, BMW and a few other
manufacturers, can easily be forgiven. Once inside the car and with express orders to drive it, the styling
puzzle tends to become a lot less significant. And the adage about imitation being the most sincere form of
flattery springs to mind. This section takes you through the marketing plan for Hyundai Pa. ‘‘Hyundai PA
will bridge the gap between Santro and Getz, giving customers more options within the Hyundai family''.
Hyundai Pa will be a hatchback aimed squarely at the new Zen Estilo from Maruti. Hyundai is also said to
be working on a one-liter diesel engine for Pa, which may just prove to be a good strategy to take on Maruti
with. It will be a true ‘Value-for-money’ product and will be available in varied colors suited to the Indian
market. The company’s under-development compact car, code named project PA, will also be exclusively
made and exported from India. Hyundai exports Santro and Accent models from India.

Running around the clock and selling everything it can build, Hyundai Motor's Indian factory is bursting at
the seams. But as demand grows and rivals scale up, the car maker has chosen to take its foot off the pedal.

Hyundai's strategic decision to focus on quality over quantity, even as its production lines are stretched in
India and elsewhere, risks losing hard-won market share and is forcing it to divert output from its plant
outside Chennai away from exports to other high-growth markets to meet domestic demand.

HYUNDAI SWOT ANALYSIS

Strengths

1. Growing brand reputation. Hyundai’s brand is the second fastest growing brand in the
automotive sector. In 2012, Hyundai’s 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
Hyundai’s excellent quality cars, marketing efforts and growing customer base.

2. 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.

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 3. Effective resource allocation. For the 2011 financial year, Hyundai’s ROE was 20.6%
compared to GM’s 19.9% and Toyota’s 4%, generating very high returns for the shareholders.
In addition, Hyundai was using its assets more efficient than competitors with 7% ROA
compared to GM’s 5.2% ROA and Toyota’s 1.4% ROA.

4. Growth in Europe. While the Europe’s 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.

5. Successful marketing campaigns. Hyundai has launched many successful marketing campaigns
through their CSR programs, sponsorship of many sport events and using celebrities to promote
their products, which resulted in increased brand popularity.

Weaknesses

1. Product recalls. Over 2012, Hyundai recalled more than 300,000 cars in different regions to fix
manufacturing and design defects. Product recalls negatively impact Hyundai’s reputation and
could erode its competitive advantage.

2. Hyundai has no presence in Japan’s 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.

3. 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

1. Increasing fuel prices. Increasing fuel prices open up large markets for Hyundai’s hybrid,
electric and hydrogen fueled cars as consumers shift towards cheaper fuel types.

2. 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.

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 3. 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

1. Exchange rates. Hyundai earns more than half of its revenue outside the South Korea. Exchange
rate fluctuations threaten Hyundai’s profits if the KRW would appreciate against other
currencies.

2. 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.

3. 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.

4. Intense competition. Hyundai faces strong competition from other automotive companies and
more than ever competes on price rather than differentiation lowering firm’s profits.

LOGO

The history of Hyundai is linked to that of its founder, Chung Ju-yung (1915-2001). Farmer's son, he left
his family at 16 years and practices several odd jobs to survive maneuver, rice dealer and repairer of cars.
In 1947 he founded Hyundai Engineering & Construction (Hyundai means "modernity" in Korean), which
remained the center of his group. After the Korean War, the American Ford entrust them compensation for
their military vehicles and construction of barracks for the army of the United States.

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DESIGN ELEMENTS OF HYUNDAI LOGO

Shape of the Hyundai Logo:

The Hyundai logo depicts an oval-shaped letter “H” from the company name “Hyundai”. It is a symbolic
representation of the company’s desire to expand globally. The ovaloid shape represents the company’s
global expansion. The slanted, stylized “H”, on the other hand, is suggestive of two people (the company
and the customer, in particular) shaking hands.

Color of the Hyundai Logo:

The blue color in the Hyundai logo represents excellence, supremacy and trustworthiness.

SITUATION ANALYSIS
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South
Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets
20 variants of passenger cars in six segments. The Santro and Pa in the B segment, GetzPrime in the B+
segment, the Accent and Verna in the C segment, the Elantrain the D segment, the Sonata Embera in the E
segment and the Tucson in these segment. Hyundai Motor India, continuing its tradition of being the fastest
growing passenger car manufacturer, registered total sales of 299,513vehicles in calendar year (CY) 2006,
an increase of 18.5 % over CY 2005. In the domestic market it clocked a growth of 19.1 % as compared to
2005, with186, 174 units, while overseas sales grew by 17.4 %, with exports of 113,339units.HMIL’s fully
integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production,
quality and testing capabilities in the country. In continuation of its investment in providing the Indian
customer global technology, HMIL is setting up its second plant, which will produce an additional 300,000
units per annum, raising HMIL’s total production capacity to 600,000 units per annum by end of
2007.HMIL is investing to expand capacity in line with its positioning asHMC’s global export hub for
compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network,
which will be increased from 183 to 250 this year. And with the company’s greater focus on the quality of
its after-sales service, HMIL’s service network will be expanded to around 1,000 in 2007.The year 2006
has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the
fastest 300,000th export car. Hyundai exports to over 65 countries globally; even as it plans to continue its
thrust in existing export markets, it is gearing up to step up its foray into new markets. HMIL has also been
awarded the benchmark ISO 14001certification for its sustainable environment management practices

OBJECTIVES

First year Objectives: We are aiming for 5% market share of the Indian market through unit sale volume of
100000.Second year Objectives: We are aiming for 10% market share of the Indian market. An important
objective will be to establish a well-regarded brand name linked to a meaningful positioning. We will have
to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation,
quality and value. We also must measure awareness and response so we can adjust our marketing efforts if
necessary.

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Hyundai Pa’s marketing strategy is differentiated marketing. Our primary consumer target is middle to
upper income professionals who need true value for their money and comfortable ride in city conditions.
Our secondary consumer target is college students who need style and speed. Our primary business target
is mid-sized to large sized corporates that want to help their managers and employees by providing them a
car for ease of transport. Our secondary business target is entrepreneurs and small business owners who
want to provide discounts to managers buying a new car. Each of the four marketing strategies conveys
Hyundai PA’s differentiation to the target marketing segments identified above.

STRATEGIES PRODUCT

Price

Hyundai Pa’s base model will be introduced at ex-showroom price of 3lakhs. This price reflects a strategy
of 1) attracting desirable channel partners2) Taking market share from Maruti.
Distribution

 The Stockist will represent 3 to 4 districts in a State.

 The Dealer will represent a district or main City.

 The Sub-Dealer shall represent a particular area or taluks.

 The booking agents will be individuals working on freelance basis.

Marketing Santro

Santro received an encouraging feedback from customers who appreciated its unique design that gave more
headroom and facilitated easy entry and exit.

Launch of Accent

By mid-1999, the major players realized that the 'B' segment would be the fastest growing in the car
industry. To cash in, Telco re-launched its 'Indica' by introducing several new features and solving the
glitches in the original model...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing
Management, Case Studies
Repositioning Santro

By late 2002, the competition in the B segment had increased significantly. MUL's Alto which was launched
in October 2000 had received a good response. Although HMIL's Santro remained the largest selling car in
the B segment, MUL commanded the largest market share in this segment due to the combined sale of its
three cars - Zen, Wagon R and Alto...

Status in 2004

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The financial year 2003-04 ended on a positive note for HMIL. The company achieved revenues of Rs 50
bn and profit after tax (PAT) of Rs. 1.90 bn in the financial year 2003-04 compared to Rs 43 bn revenues
and PAT of Rs 1.65 bn in the fiscal 2002-03...

The Challenges Ahead

During the period January to June 2004, Santro lost its leadership status in the B segment.

MARKETING COMMUNICATIONS
By integrating all messages in all media we will reinforce the brand name & main points of product
differentiation. Research about media consumption, pattern will help our 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, we will offer a
limited time, registration & insurance. To attract, retain & motivate channel partners for a push strategy,
we will use trade sales promotions and personal selling to channel partner.

MARKETTING PRODUCT MIX

Features: The all-new “Hyundai Pa” is fully loaded with a range of exciting new features. It's a perfect
complement to your evolved tastes and lifestyle. And the best way to take your driving pleasure to a brand-
new high. European Styling. Japanese Engineering. Dream-Like Handling.

The new Hyundai Pa is a generation different from Getz and Santro design. Styled with a clear sense of
muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense that it is packed
with energy and ready to deliver a dynamic drive. Its solid look is complemented by an equally rooted road
presence and class-defining ride quality. New chassis systems allow for the front suspension lower arms,
steering, and gearbox and rear engine mounting to be attached to a suspension frame. You get lower road
noise and a greater feeling of stability as you sail over our roads with feather-touch ease.

Price
Hyundai is expected to take Maruti heads on with the pricing of their upcoming Hyundai Pa car. After
launching cars for the masses since so many years, India’s second largest automobile manufacturer is now
targeting the premium segment with their latest model from the Hyundai’s stable. The analysts predict the
pricing of this premium hunchback to start from Rs. 3lakh.This price range would practically rip apart
Maruti’s offering in Zen Estilo, which is priced at a higher tag of Rs. 3.5 lakh. Both the companies are
known for their value based offerings and Hyundai with their extensive service network and brand
reputation for making reliable cars should get the customer’s nod over their competition. The official
pricing however is still not out. However, the company is said to be studying the prospects of launching the
base model at the 3 - lakh price tag. If they indeed do take the chance of pricing Hyundai at a considerable
lower price than Zen Estilo , they would quite likely force the competition to rethink their strategy.

Promotion

Road Shows

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The company plans to stage road shows, to display vehicles in the pavilions during various college festivals
and exhibition. This car will appeal to youngsters more.

Television advertisements

Advertisements to promote and market our product 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.
Hyundai Suicide Ad
It was shaping up to be a great, great week for Hyundai. On April 19, the car maker's new ad for the British
market, which centers around a man attempting suicide in his new Hyundai, was named Ad of the Week
by The Drum — a well-thought-of U.K. marketing magazine. On Thursday, April 25, The Guardian also
highlighted the spot as worth a watch.

Hyundai's marketers thought they had a potentially huge hit on their hands: Maybe it would even win some
awards for its originality. Car advertising is usually riddled with visual clichés, such as the open road, night-
time city driving, and over-the-top stunts like driving through walls of flames or crystal chandeliers.

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. Many people
listen to other people's radios or hear them in public places. So radio announcements will be made and
advertisements will be announced on the radio about the product features and price, qualities, etc.

Print Ads

Daily advertisements in leading newspapers and magazines will be used to promote the product. 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 product features, its affordability and usage, vast distribution network.
Road shows will be conducted where free trials of the car would be given.

Banners, neon signs

Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and shops to promote our
brand car.

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 our company; the products offered which suits the customers need
accordingly.

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TAREGET SEGMETATION

Hyundai took the bull by the horns in this bear market and scored big. It used behavioral segmentation to
identify what was keeping prospects from buying and then developed a strategy that made it easier for
customers to part with their hard-earned dollars.

What can you learn from its example? In every market change, even a downturn, there is an opportunity to
use the power of behavioral segmentation to make your product or service stand out. Hyundai discovered
that as the market changed so did their segmentation. Significant numbers of prospects were no longer
focusing on gas mileage performance, and they weren't necessarily looking for more discounts. Armed with
such customer insight, Hyundai identified a business opportunity. Hyundai determined that the fear of
losing one's job was a high barrier preventing prospective buyers from purchasing a car.

After defining the segment, the company developed and aligned sales and marketing strategies to reach this
new segment. By targeting prospects concerned about job security, Hyundai broadened its audience and
increased the number of customers who considered its cars.

David Zuchowski, vice-president of national sales for Hyundai noted in a New York Times article, "It
doesn't matter how many zillion dollars you put in rebates, or what APR you give them. If people are
worried about their job, they don't really care and they're just not going to get off the fence."

Strategy to Target Segment

Next, Hyundai developed a strategy to ease the fears of this segment: The Company’s Assurance Program
releases customers from car payments without harming their credit score.

As Advertising Age editor Jonah Bloom wrote, "Right there, is an honest-to-goodness big marketing idea....
Hyundai confronts the recession head-on and does something tangible to tackle its effects."

Hyundai advertising used straight talk that resonated with customers: "We're introducing Hyundai
Assurance to show you the faith we have in you. Right now, finance or lease any new Hyundai, and if in
the next year you lose your income we'll let you return it. That's the Hyundai Assurance."

PROBLEMS FACED BY HMIL:

 Hyundai launched its 'B' segment vehicle Hyundai Getz in a period when there was intense demand
for Hyundai Santro causing the demand for Santro to go down. The impact was very high that even
the market leader tag was lost to MUL.
 The competition among other motor companies dominated this era thereby paving way for HMIL
to lose its market share to rivals like MUL, Ford, and Mitsubishi etc.
 Though the demand for Hyundai cars where very high owing to plant production constraints it
cannot match up to its expected demand thereby losing a part of its share to its competitors.
 The introduction of newer cars meant to new segment reach, new customers, new technology etc.
but HMIL just did not concentrate an simultaneous promotional campaigns causing far the drop
down in advertisements for existing products which were doing well in the market. This meant
losing of customers and paving way for competitors.

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SEGMENTING & TARGETING

Maruti Udyog Ltd. (MUL) targeted the 'A' segment of the market by launching its Maruti 800 for Rs.
40,000. This was due to an initiative of the Government of India to produce a small and affordable car
targeting the Indian middle class. Hyundai Motors India ltd. (HMIL) on the other hand entered the market
by

Targeting the 'B' segment. HMIL believed that the middle class Indian consumer would not mind paying
extra for value addition. Hence HMIL entered the Indian market by targeting the 'B' segment.

After its initial launch in 1983, MUL also targeted the B and C segments with the launch of ' Zen' and
'Esteem' respectively .MUL also went on increasing its market share in the B segment by launching 'Alto'
and 'Wagon R' models. The combined sales of the three models (viz: 'Zen', 'Alto' and 'Wagon-R') ensured
MUL to gain a dominant share in the 'B' segment. The luxury 'D' and 'E segments were however not covered
by MUL.

Conversely HMIL did not introduce any other model besides 'Santro' in the B segment. HMIL targeted the
rural market as well in selling `Santro'. On the contrary MUL did not target the rural market for any of its
car in the 'B' segment. HMIL however entered the 'C' segment with the launch of 'Accent'. HMIL also
entered the D segment and the Luxury `E' segment by launching 'Sonata' and 'Elantra' models. By July
2004, HMIL introduced another model 'Getz' which specifically targeted the upper B segment.

FOUR P'S
Product: All products of HMIL had some distinguishing features that enabled them to become the market
leaders of their particular segments. Santro had its unique design features such as; more head room
providing easy entry and exit, higher positioning of the driver seat which ensured better visibility, safety
features like child lock rear doors, crumple zone to absorb frontal impact and, ergonomically designed seats
to ensure comfort. Accent had the latest technology, Sonata had its luxurious design and Getz had a larger
space compared to other cars in the same segment.

PRICE
All products of HMIL were priced lower than its competitor's products in their respective segments to gain
substantial market share. Santro was priced at Rs.2, 89,000 compared to MUL's Zen which was priced at
Rs.3, 45,000. Accent was priced at Rs.5, 35,000 as compared to Mitsubishi's 'Lancer' at Rs.7, 80,000.
'Sonata' was priced at Rs.16, 00,000 compared to Honda's Accord which was

priced at Rs. 17,00,D00. HMIL also followed a unique "pricing based on customer value perceptions"
strategy in which different models of the same brand had different features and customers had to pay based
on the features they prefer in the car. This strategy was employed by HMIL in the pricing of Santro brand
wherein the three models were Santro LP, Santro GS and Santro LE.

PLACE
HMIL was very cautious in selecting its dealers. It had an elaborate selection procedure wherein every
prospective dealer had to fill up a detailed application form revealing his personal information, financial
status, asset value, liabilities, impending legal proceedings etc. The dealers were also required to have a

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sound knowledge of the market position and the current trend and position of car sales in their specific
region. Other minute details like distance between showroom and workshop, organizational structure and
references were also sought by HMIL. These details helped HMIL to scientifically decide, which applicant
was to be picked for a particular location for dealership. Dealers from rural areas were also selected for
pushing the sales of Santro in these regions.

PROMOTION
HMIL used different media for the promotion of its various brands. Santro was promoted by television
advertisements featuring the product features and customer responses to Santro. HMIL had given the
advertising contract to Saatchi & Saatchi. In rural areas Santro was promoted by organising road shows and
offering test drives. Accent on the other hand was promoted through the Print media. The reason was, since
Accent was a higher value product it appealed to a specific kind of audience. HMIL gave the responsibility
of advertising campaign of Accent to Grey Worldwide India (GWI). Accent CRDi was however promoted
through television advertisement as it was a new technology used in the Indian Automobile Industry. Sonata
was also promoted through television advertisements.

POSITIONING

HMIL positioned its cars as follows;

Santro: Santro was initially positioned as the Family car' targeting the age group of 35-45 years. When the
competition intensified in the 'B' segment, Santro was again repositioned in October 2002 as the 'Sunshine
car'. The basic idea was to target young customers of the age group of 25-35 years.

Accent: HMIL positioned its model 'Accent' as The next step'. This was done to highlight the latest
technology used in the car.

Sonata: Sonata was positioned with the tag line as 'Dreamt about by everyone, owned by select few'. This
line highlighted the luxury feature of the model.

STRATEGY ADOPTED BY HMIL

As an entry strategy Hyundai motors corporation (HMC) set up its subsidiary in India and named it Hyundai
Motors India Ltd (HMIL). This was contrast to other foreign companies who entered the Indian market by
forming joint ventures with Indian companies. HMC wanted to leverage upon the low manufacturing and
labour costs in India. Hence it set up its own manufacturing plant at Irrungattukottai near Chennai. In
contrast other companies only established their assembling units in India.

HMIL used superior technology in its products, which gave it a competitive advantage over its competitors.
As a result Santro and Ascent became the market leaders, although they were the sole products of HMIL in
their respective segments.

HMIL also widened its portfolio by introducing one product in each segment and also made sure that the
product had a substantial market share in its segment.

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HMIL was the first company to introduce what became popular as the "pricing based on customer value
perceptions". Based on this strategy HMIL had introduced three models of Santro with varying features and
different prices.

HMIL had its unique interacting methodology with its dealers, which gave HMIL a better understanding of
the customers.

OPPORTUNITIES FOR THE CAR INDUSTRY IN 1980S

In the early 1980's the automobile industry was highly protected with only two players Premier Automobiles
(PA) and Government of India (G❑1). This lead to very little technological improvements in the industry
thus for poor technology people had to pay higher prices. As a result of which the CAGR was just 3.5%
since most of the middle class could not afford to buy such a high priced car. At this moment the GOI felt
the need to introduce a small car that is affordable by Indian middle class. There was a huge potential for
this market but the sector was not opened up for other players.

A company with more focus on technology or having a tie-up with foreign players for latest technology
could have improved the quality of cars. This would have given an edge to the company compared to the
other players PA and GOI which weren't technologically savvy. Along with it a company could have
reduced their prices too and still maintain higher margin by virtue of huge market potential.

OPPORTUNITIES USED BY HMIL IN THE INDIAN CAR MARKET

HMC was the first foreign company to set up its own subsidiary HMIL and its own manufacturing plant.
HMIL discovered that there was a potential market for small cars and hence went on with the introduction
of Santro. HMIL also discovered that the middle class customers belonging to the 'B' segment would not
mind paying a little higher price for better comfort and hence targeted this segment in particular. HMIL
also recognised the opportunities in other segments (C, ❑ and E) and launched new products in these
segments, which went on to become quite successful.

Marketing strategies for TATA Nano (Four P's) Product a

The features of TATA Nano are given below:-

 Tata's Nano will have 624 cc Petrol Engine and it will give 33 bhp power (engine is in rear)
 This car will give fuel average of 20-25 Km/litre
 Top speed of Nano will be 90 Km/hour
 Petrol tank of this car will have capacity of 30 litres
 Nano will be available in three colours red, yellow and silver
 This car can accommodate 4-5 people
 Nano will meet Bharat 3 and Euro 4 emission standards
 Tata will launch one basic and two deluxe models (with AC) of this car
 Length of car is 3.1 meter and its width is 1.5 meter
 The high end/deluxe models will include air-conditioning and other features to be incorporated
based on suggestions of the common people

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  The most important feature of TATA Nana is that it has 21% mare space and 8% smaller than
Maruti 800, which is the nest cheapest car in the A segment

Price: Price to the distributor of Nano in Delhi will be Rs 1 Lakh and its actual price will be slightly more
than 1 lakh for customers. At about $2,500 retail, the Nano is the most inexpensive car in the world. Its
closest competitor, the Maruti 800, made in India by Maruti Udyog [Get Quote], sells for roughly twice as
much. To put this in perspective, the price of the entire Nano car is roughly equivalent to the price of a
DVD player option in a luxury Western car. The low price point has left other auto companies scrambling
to catch up.

Place: TATA Nano is believed to be a new revolution in Indian car market and many experts believe that
this car also has lot of potential for world market too.

The main place of launching the product is the urban cosmopolitan market.

The rural market in India can provide a huge opportunity for this car. Since it's a very cheap car and is easy
to maintain, the less established and less educated people will want to buy the car. The techniques initially
developed to reach poor and rural customers may have even greater potential when used to reach highly
demanding, affluent, urban customers in Western economies.

Promotion: In order to provide an added facility to help its Nano customers to finance the car, Tata Motors
has entered into an understanding with Corporation Bank. Corporation Bank has lowered their car loan
rates and now offers loan up to 85% of on road price, for tenure ranging up to 5 years, at a very competitive
rate of 11.75% p.a. The dealer network will be fully trained to explain the loan formalities and will help
customers in completing the documentation required for availing car loans from the bank. Both the
organizations have jointly organized sales promotion activities by display each other's products and
offerings at their respective premises. This tie-up will provide a single window far both cars as well as car
loans and will make Nano buying easier for customers.

CONCLUSION:
Today, despite tough competition, Hyundai Motor India Limited has created a different identity in Indian
automobile market. Hyundai’s growth has been driven by volume oriented revenues coupled with
technological soundness, constant innovations and superior designs. Currently, Hyundai have a complete
line up of cars across all segments. Considering the changing needs of Indian customers, the company
always fulfilled the expectations of customers by giving them technologically advanced cars with more
features and more value for money. Evaluating the past performances of Hyundai Motor, no doubt that in
coming future Hyundai Motor will be the leader in Indian Automobile industry.

REFERENCES:

 Hyundai Motor India Production touches 6 Lakh units in 2010, press release, 30/12/2010, retrieved
from http://www.hyundai.com
 Hyundai Motor India Launches Eon in Chennai, Chennai, 17 October 2011, retrieved from
http://www.thehindubusinessline.com/industry-and-economy
 Hyundai Motor India Sales up 3.6 pct, The Indian Express, New Delhi, 2 Jan 2012, retrieved from
http://www.indianexpress.com
 Hyundai Motor India sales down 2.2 % in November, The Financial Express, New Delhi, 1
December 2012, retrieved from http://www.financialexpress.com

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 Interview of Mr.Arvind Saxena (VP-Mktg & Sales, Hyundai Motors), retrieved from
http://www.exchange4media.com
 Production, Export retrieved from http://www.hyundai.com

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