Hyundai

A case study on its Marketing

Strategies in India
Background
1947
• Only two players Ambassador (Hindustan Motors)
and Fiat ( Premier Motors)
• Result of Government Of India’s decision to keep
car industry tightly protected.
• Poor technological improvement because of
restriction on foreign collaboration.
• Leads to prices remained high and quality was
inferior.
 1980
• The need of an affordable small car was felt
targeting Indian middle class.
• GOI founded joint venture with Suzuki (26% equity
stake) and Maruti Udyog ltd (74% equity stake)
• Maruti 800 launched in 1983 at Rs.40,000.
• By the early 1900s MUL emerged as the market
leader with more than 85% share in the industry.

1991
• Liberalization of Indian economy.
 1993
• Delicensing of automobile industry.
• Entry of domestic and foreign manufactures
allowed.
• Foreign car manufacturers like Toyota, Ford,GM
entered Indian car market.
• By 2002 MUL’s market share fell to 53% from 85%
in 1993.
Hyundai – an introduction
South Korean company
Entered India through its subsidiary HMIL
Set up their manufacturing plant in Chennai on
May 26, 1996 at a cost of $614 million.
It is the second largest car manufacturer in India
after MARUTI.
Uniqueness of HMC’s foray into Indian car market
Entered into Indian market through wholly owned
subsidiary.

First foreign car maker to have a ‘manufacturing unit’.

Launched new product rather then introducing a car

already selling in other countries.

Decided to enter India through new product, Santro,

a B segment car.
SWOT analysis of HMIL
Strengths Weakness Opportunities Threats
 Proper  Korean  High  MUL had a
market cars were demand of dominating
Research ranked small cars market
 Introduction below with only share
of new Indian MUL as a  Making
small car cars by player in people
 Establishing customer small car believe in
own plant s industry the new
brand
Major contributing factors for the success of Hyundai in India ?
Launch of small car named Santro in the B
segment.
Pricing based on customer value perceptions
Innovative marketing strategies
Unique way of interacting with dealers
Advertising contract to Saatchi @ Saatchi(S&S)
Advertisement campaigns
In 1991, HMIL ran a new “customer satisfaction
campaign”.
Targeted mainly young couples
Santro LP, LS, GS and then improved version of Santro
Xing was introduced
In mid 2003, HMIL decided to tap rural market. Joined
hands with several dealers in major rural towns and
conducted road shows.
In Nov 2003, signed agreement with the Punjab
National Bank( PNB)
Differentiation in Santro as compared to other B class
cars available in India
Proper market survey
Hyundai’s strategy of launching
new car every year?
As it seeks to hold its own in a fiercely competitive car
market in the country. Besides, it will give a facelift to
an existing model every year and also make minor
modifications for a model year change.

This will be the company's strategy to meet

competition, from the likes of Ford Figo, Chevrolet
Beat, Volkswagen Polo and the new WagonR from
Maruti Suzuki, besides the spate of new launches
planned.
CONT…

 To maintain their cost leadership strategy in

each segment and to put their car in each
segment to compete with the other brands .

To sustain excitement in the market for its

cars.
Will GETZ be successful without affecting the
sales of Santro?
No, Getz will not affect the sale of Santro because
it has a different target market and moreover there
is a difference of more than 1.5 lacs in the prices

Unique features like large space compared to

Santro as well as other upper B segment cars.

It would give opportunity to tap the upper B

segment.
Current status of GETZ
Getz was the first premium hatchback but is not inspiring
any customer to buy the car, because its own sibling i20
has got more features and more premium than Getz

HYUNDAI is fueled by the sales of its i10 and i20.

Currently, every month, nearly 5000 i10 cars are sold
although the company targeted for only 2000 per month.
This means, customers had to wait at least 2 months to get
their car. But now, if Hyundai phases out Getz, it can
utilize the spare production capacity to produce more i20s
and i10s and help in reducing the irksome waiting period.
Marketing mix in the Indian passenger
car industry? And its positioning?

PRODUCT

SANTRO LP, LE, GS

SANTRO XING
ACCENT CDRi
SONATA
VERNA
ELANTRA
GETZ


PRICE

SANTRO – Rs 2,89,000
ACCENT – Rs 5,35,000
SONATA – Rs 16,00,000
 PROMOTION
For SANTRO
 HMIL selected dealers who could react fast to changing
marketing needs
 Gave advertising contract to SAATCHI & SAATCHI(S&S)
 Advertisement in two phases :- 1st phase: it was a unique
introduction to the car.
2nd phase: highlighted the cars feature while promoting
the brand subtly.
“Customer satisfaction” campaign
For ACCENT
Highlighted its special features such as improved
technology in TV campaign
Relied more on print media than on television
For SONATA
 Advertisement on T.V
STP
Segmentation and Targeting
 SANTRO
Targeted the B segment
Targeted age group 35 to 45 years
Small car with many additional features and low prices

ACCENT
Targeted the C segment
 SONATA
Targeted the D segment
SANTRO XING
Targeted age group 25 to 30 years
Rural and urban areas

Positioning

SANTRO
projected as a “family car”

ACCENT
positioned with a base line “ THE NEXT STEP”
SONATA
Positioned as a premium car that was “ dream about
by everyone, owned by a select few”
SANTRO XING
It was repositioned as Sunshine Car (Car For Young)
Current status of Hyundai
  Number of dealers are increasing day by day and
has reached to 407. 
 Hyundai expects production to peak at 100,000
units.
Hyundai: Our cars will average 50 MPG by 2025
Today indicated that it is aiming to achieve the volume
growth of around 16 percent in the year 2010. The
company will match the industry's growth rate of 15-16
percent. Last year its growth rate was 20.8 percent
which was due to the lower comparable base of 2008.
The company sold around 600,000 units last year
THANK YOU