INTRODUCTION

Making its global debut at the 2010 Geneva Motor Show, Hyundai i-concept-car flows arriving at the front of the company has inspired a new form of language, fluidic statue. Flow not only elegant lines are bionic, forms futuristic, but also contribute to the exceptional aerodynamics, helping to reduce CO2 production and 85g/km single car 3l/100km fuel only. Hyundai first hybrid powertrain diesel is also a key factor in providing sorting environmentally conscious return, such as applications for next generation materials and technologies developed in collaboration with leading chemical company BASF. South Korean car manufacturer, Hyundai Motors and German chemical company, BASF showcased what they have built together, i-Flow diesel concept car at Plastindia, Pragati Maidan, New Delhi. The all new i-Flow diesel concept car is designed using Hyundai's Fluidic Concept while BASF pitched in with their vast experience in fuel saving technologies to make the concept even more fuel efficient and reduce CO2 emissions even further. Hyundai BASF i-Flow diesel engine is insulated using polyurethane foam, allowing the engine to attain optimum operating temperature much faster, and the same foam helps the engine cool down equally quickly. Apart from this, there are many other contributions by BASF, like a system that converts heat energy from exhaust gases into electricity, which is then used to power in-car auxiliary systems.

HYUNDAI MARKETING STRATEGY TILL NOW HMIL marketing strategy focused on bring out the differentiating factors when compared to its competitors. Santro was initially positioned on the design aspect. Later on Santro was positioned itself as a complete family car. The brand was targeting those users who wanted to upgrade into the B segment. Hyundai This was when the target group of consumers was between 35-45 years. With the increase in competition in 2002, Hyundai repositioned Santro as a sunshine car in order to attract consumers from the 25-30 years segment. Sunshine was communicating two intangibles: Freshness and youthful attitude. The brand was moving to a " Change your life " positioning. With regard to the other models, Hyundai Accent was positioned as a next generation car and this was highlighted by its base line The Next Step. On the other hand, Hyundai positioned Sonata as a luxury/premium car and emphasized on the same with the base line Dreamt by everyone. Owned by a few. Entry Strategy Prior to the presence of Hyundai Motors in India, the country had its own share of car providers ranging from Indian companies like Maruti Udyog Limited, Fiat to foreign players like Ford Motors, Toyota Motors, Honda Motors etc. So rather than just entering the market and then deciding on which segments to serve, Hyundai Motors did a careful analysis of the Indian automobile industry. This was done through discussions and surveys with dealers, consumers and vendors. It was only after analyzing these results did HMIL analysis told them that the most profitable and growing segment was the B segment due to which they went ahead and released a car in the B segment.

Operation Strategy To ensure that they have maximum profits, HMIL focused on creating a low cost strategy. For this reason, they set up their own manufacturing plant in India to take advantage of the low labor and manufacturing costs. This was opposite to what the competitors were doing as they only had assembly units in India. Also in comparison to other car companies, HMIL entered India by starting its own subsidiary whereas other companies had entered through joint ventures with Indian companies. HMIL was able to provide higher quality cars at lower prices when compared to its competitors. This was as they were able to use better and the latest technology while at the same time were able to use the low cost labor and other manufacturing facilities available in India. Product Strategy While competitors imported their existing successful models from abroad for the Indian market, HMIL went against the trend by developing models especially for the Indian market. This allowed it to design cars suitable more for the Indian environment and hence Indian tastes. Also HMIL launched products in the segments where there was lesser completion from MUL (who at the time was one of the biggest competitor) i.e. in the D and E segment. This was through proper understanding of the Indian consumer requirements.

Distribution Strategy To ensure that Hyundai was able to react quickly to changing market needs, HMIL followed a formal and meticulous procedure for choosing dealers. The main criteria was to select dealers who would react quickly to changing market needs. The procedure included dealers having to give their educational background, financial background, notes on current future trends in the automobile industry etc. This elaborate procedure allowed choosing those dealers through a scientific procedure that were best suitable for a location.

On the whole, HMIL followed innovative marketing strategies as they focused more on understanding what the consumers wanted and then promoting and placing their products accordingly.

Alternate Solutions for HMIL

The major challenges that HMIL currently faces is how to regain its leader status and market share. We believe that HMIL needs to take multiple measures to achieve their target. These measures are: Continue to innovate Emerging markets are a fertile ground for innovation. The challenge of reaching dispersed, low-income consumers in emerging markets often spurs significant innovation. These innovations will become the basis for 'attacker' strategies that can be used to challenge the competitors. Innovations and improvements in technology, design can help to manufacture higher quality cars at a lower cost. This will help to attract more consumers. HMIL should focus on its strengths of delivering excellent quality and performance. Diversify To ensure that it has its presence across multiple segments, HMIL should look to manufacture and releases new models to compete with Maruti etc. They should add new cars to their product line and get more into and within segments like the B and C segment which are one of the fastest growing segments in the Indian auto industry. HMIL should leverage on its ability to launch technologically superior products and its innovative marketing strategies to come up with new models in the existing product segments. This might cannibalize on the market share of their existing cars like Santro and Accent but the effects of the same can be advantageous to HMIL as it can attract competitors customers. They should look to exploit the customer value perceptions concept that they have used till now.

 Penetrate more into the rural markets The rural markets are one of the largest untapped markets in India. HMIL should look to target these segments by introducing lower cost cars. This will help them to increase their market share and thereby to retain their leadership status. Expansion of production capacity HMIL should expand its production capacity in order to produce the required number of cars to be released into the market. HMIL had a production capacity of 2,00,000 cars per year as against 5,00,000 cars churned by MUL in a year. It should make sure that the production crunch that happened in 2004 due to the release of its new model Getz should not repeat again. The lack of enough production capacity is expected to affect the companys market share as it would not be able to fulfill increased demand.

Promotion

2010 Geneva Motor Show: Hyundai i-flow Concept

The Hyundai Genesis Sedan, the recently-unveiled all-new Sonata, and the upcoming executive-class Equus are reshaping Hyundai's lineup from budget South Korean automaker to world-class player. The next car, previewed with the i-flow Concept at this week's 2010 Geneva Motor Show, is due in 2011 and will likely replace the current Azera (Grandeur) sedan. Packaged as a family sedan one notch higher than the Sonata, the current Azera sticks out a bit from the rest of the new lineup, even with the updates received at the Chicago Auto Show. The replacement matches the Sonata step for step in design, and Hyundai credits the impressive look to its Russelsheim design HQ in Germany. Hightech materials from BASF help to minimize weight and maximize efficiency-including the use of solar cells.

The name i-flow reflects the aerodynamic shape and the flowing lines of the concept car's styling, and retains the 'i' prefix of Hyundai's established alphanumeric nomenclature for Europe. The concept features Hyundais first diesel-electric hybrid drivetrain consisting of a twin-turbocharged 1.7-liter diesel engine matched to an electric motor running on lithium-polymer batteries. Sending drive to the front wheels is a six-speed dual clutch transmission. The vehicle also benefits from a slippery 0.25Cd drag coefficient, which sees it register a fuel economy of 78 mpg. To further enhance fuel economy, engineers have developed thermal engine encapsulation, which ensures that the engine reaches optimum operating temperature more quickly, by retaining heat when the car is at idle. Where a non-insulated engine can go gold in around three hours, the i-flow Concept will stay warm for 14 hours. This translates into fuel savings and emissions cuts of five percent during summer and up to nine percent during winter. Other features include a thermo-electric heat energy recovery system on the exhaust thats used to power ancillary features, adaptive aerodynamic elements and an ecodriving guidance system that includes fuel consumption and gear shift indicators, and an active ECO function which adjusts the powertrain to its ultimate condition by adapting the engine and transmission control units. Finally, 'eco route' uses real-time traffic conditions and three-dimensional road data to calculate the most fuel-efficient way of reaching a desired destination.

PlastIndia 2012, Delhi, India

Promotion through Distributors, Dealers

Corporate tie-up, Corporate discounts

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Road show T h e c o mp a n y p l a n s t o s t a g e r o a d s h o ws , t o d i s p l a y v e h i c l e s i n t h e 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 onleading television channels. Major music and sports channels will promoteand they will reach out to the youth will be promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers. Radio Radio is the medium with the widest coverage. Studies have re cently 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

toother people's radios or hear them in public places. So radio announcements will be made and advertisements will be announced on the radio about theproduct 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 ma k e p e o p l e a wa r e a b o u t t h e c o mp a n i e s p a s t p e r f o r ma n c e a n d p r o d u c t features, its affordability and usage, vast distribution network. Road shows willbe conducted where free trials of the car would be given.

Banners, neon signs H o a r d i n g s , b a n n e r s , n e o n s i g n s wi l l b e d i s p l a ye d a t c l u b s , d i s c s , outside theatres and shops to promote our brand car. Social networkting Hyundai I flow should spent a notable amount of time promoting the Leaf through various channels of new media. Social networking sites like Facebook.com, Twitter.com, and YouTube.com will help I flow create brand awareness among young and technology savvy consumers. Sponsoring polo sports Hyundai has tied-up with the Indian Polo Association to promote the sport and its Sonata brand. This Monday the Hyundai Sonata Ambassadors Cup came to an end at the Jaipur Polo Ground in the capital. There were five teams other than the Hyundai Sonata team, which competed in the tournament.Other teams included teams likeVayamtech, Black Dog, Hyatt Regency, Jindal Steel and Power and Sahgal Stud/APRC. The four day long tournament between six teams ended with the final showdown on Sunday for the top honors. The chief guest of the final match was General VK Singh, the Chief of Army Staff. The main sponsor Hyundai

had its beautiful luxurious sedan Sonata at the venue on display, along with the Verna and luxurious SUV Santa Fe as well as the three-door Veloster and beside them was the not yet officially launched Elantra. Sponsoring awards in cricket matches Hyundai should sponsor cricketing awards such as Man of the series this will give them huge platform to advertise their I flow amongst millions of cricket loving fans in India.

V. The Target The target was determined using several key variables that relate to the iflow and its functionality. Attitudes concerning environmentally friendly products, pollution, and automotive preferences were evaluated across gender, age, and household income levels to narrow the desired audience. With the target firmly established, the aforementioned attitudes were cross-referenced with personality types, media usage, and car buying habits to identify the targets pain points and focus their thoughts and behavior. Although the primary target (seen below) is the focus of the media plan, secondary and tertiary markets are considered. There are many individuals beyond the age, gender and psychographic classifications who may be interested in an all-electric family vehicle, and the advertising strategy should reflect this.

Product Positioning and Target Audience Expectations

The story of the market positioning and launch of the New Panda, perfectly illustrates how car companies such as Fiat, innovate and design in line with customer expectations to secure a market share for each model.

Getting to Grips with Consumer Expectations

The New Panda hopes to appeal to the small car segment and the initial

first car buyer segment while also appealing to families who wish to acquire a second car, or to those using their car in urban or city areas. However, there is a marketing challenge at the centre of targeting these segments.This car interests distinct and different groups of car buyers so there is a need for careful product positioning in the mind of the consumer. Some considerations when positioning a new car might include:

first car or small car users who expect specific design qualities from a
car

families who want a second car to get them from A to B or to

complete the school run twice a day and who will also want different features

people who may wish to acquire a slightly larger car or one that is
more powerful

young people looking for personality from their car - perhaps more
sporty features or individual and distinctive design finishes. Indeed it is an interesting fact that carmakers need to be very specific about product positioning as they often do not compete on price alone. New Pandas key target market is young dynamic people. Fiat has a marked advantage in this area because it is known for its keen pricing and is also an established, highly recognisable brand that young people can relate too.Compact car advantages i.e. size and functionality are of critical importance in this target market therefore product design and price are key elements in the marketing mix for the Fiat New Panda (See Task 1)

Managing the Marketing Mix for the New Panda

A marketing mix is used to convert the positioning strategy into a reality. It is made up of four elements: product, price, place and promotion. The marketing mix is used to reinforce the advantages of the New Panda carefully reflecting its core values and positioning. It confirms how and why it will be of interest to various segments of the car-buying public.

Product Reflecting the Brand In its branding and market positioning, Fiat wishes to communicate a number of key attributes of the New Panda it is an intelligent smart car that is ready for action and it is also a little crafty, lighthearted and irresistible. The New Pandas positioning statement is designed to succinctly convey the product advantages and the character of the model

in a way that will best attract the New Panda target market. Full of Life, Cheeky,Versatile and Ready For Everything As discussed above the product design is linked in with branding and positioning strategies. It is important that all of these features are linked. Place Getting the Product to the Customer A marketing decision was made to launch the New Panda to the trade. A launch to the dealers is different to launching a car to the public. Prepublicity directed at the trade is used to create interest in the new model. Increased demand for a car is also know as a pull factor as it essentially pulls the product through the distribution channel from the manufacturer toward the consumer. In order to succeed at getting the product to the consumer, Fiat has an International network of agents or dealers who carry Fiat cars and other marques (car brands e.g. Alfa Romeo) in the companies stable.This means that support is given to the Fiat dealers around Ireland to promote the new model in a way that generates demand for the new car. Price Reflecting the Positioning Strategy Fiat has a clear understanding of its key target market (young people and other price-conscious car buyers) and has designed pricing strategies to best address their needs and the positioning of the New Panda. In the case of the New Panda it was imperative that it be keenly priced and also that running costs were low. The price quoted by Fiat is the price you pay at the dealership.This is Fiats Open Book pricing policy. As a marketing concern transparency of prices is important. Some prices quoted by competitors are ex works which is the price of the car quoted from the factory. Additional charges for delivery are thus not included in the final price quoted. Fiat have finance packages. One example is where customers can opt to pay only 25 per cent of the total cost of the car and then pay the balance of the cost of the car, i.e. the remaining 75 per cent, over a period of 36 months with zero per cent interest. Another package focuses on the benefit of low monthly repayments. This finance package is essentially a Hire Purchase agreement and is subject to the Consumer Credit Act of 1995. Monthly payments can represent a more attractive option to first time car buyers or people on a limited income, sooner than borrow 100 per cent of the cost of a new car.

Promotion Communicating the Positioning of New Panda

Pre-publicity in the form of motoring reviews and test drives are critical to the success of a trade launch as this activity must generate sufficient consumer curiosity and interest in the new model. In this way, experts and driving correspondents or journalists, are also given the opportunity to assess the merits of a new car before the car-buying public delivers its own verdict in the form of car sales. Fiat showcased the New Panda (formerly known as Gingo) at the prestigious 73rd International Motor Show in Geneva. One of the most popular ways to do this is to hold open weekends in garages where customers can come along to test drive the new car. By getting potential car buyers to test drive a car, product usage increases.This has a knock on effect to car sales. The primary above the line medium used to promote and communicate a new car is through advertising. In the case of the New Panda, the main advertising mediums used, aside for those used when communicating with the trade, are outdoor billboard advertising and TV advertising. If we analyse who we are trying to communicate with when we are launching a new car, the choice of TV and outdoor advertising makes perfect marketing sense.However, increasingly newer forms of communications are being used, such as the internet, to reflect the attributes or characteristics of the New Panda. Here we see the positioning statement being used once more to form the basis of the advertising message. This ensures a consistency across all elements of the marketing mix. The New Pandas characteristics are summarised in the following ideas:

The Essentials - it has those features that really count and will be
of most service

Surprise - you get more than you expected Energy - the car is dynamic, vital, endowed with good humour and
optimism

Freedom - to move about and go where you want easily and with
worry-free driving. Car advertising is highly visual and largely image based, for visual impact and advertising images and copy messages are built on these concepts. New Panda advertising themes and images revolve around ideas of surprise, independence, spontaneity and versatility. Key factual messages that need to be conveyed include the smart design of the car, the value for money and cost of the car and the low running costs. If possible the car should have characteristics that give it an edge on its competitors or have a Unique Selling Point (USP) that can be communicated to potential car buyers. In the case of the New Panda, its USP hinges on the fact that you get more than you expected; it is a practical small car with all the driver advantages that go with that but it also has a sporty, cheeky, and irresistible appeal.

The Technology and Marketing of new Cars

Life moves quickly, and in the auto industry it moves even quicker. There is nothing about the car industry that suggests its slowing down. While there might be a few companies out there that are slowing in sales, and there are a few people out there wounded by a tough economy, and arent buying. But there is no car company out there that isnt going forward with their plans to make the latest and greatest innovations to the cars. Technology, and that fact that it is ever changing, is changing the way they market cars. Cars have long been marketed as manly, or durable, or fast. These days cars are being marketed as innovative, equipped, and the product material is illustrating that sort of gimmick. Here are a few advancements that are becoming standard on these cars in an effort to increase the sales numbers: Sync Systems Ford most notably came out with the sync system. This was an effort to connect the iPod, the stereo system, and the basic functions of the car all on the same system activated by voice control. Many car companies are imitating this sync system. Its the effort to make the car what the iPad is in its own sense. Parking Assistance One of the pains for drivers over the years has been the need to parallel park, or the need to back in and out of spaces. For this, car companies have been helping by putting both cameras and remote controlled functions on the car in order to make the task easier. Of course these advancement of electronics on this car do speak to the another issue that buying a new car brings, and thats the added repair bill. No longer can a neighborhood buddy just fix

the car. These cars are so computerized that they need a specialist. Its the high price to pay these days to be technically advanced.

SWOT ANALYSIS OF HYUNDAI MOTORS IN INDIA

Strengths of HMIL Hyundai India has such a brand equity that it is almost assumed to be an Indian brand, with lot of good accolades for being Indias second most selling brand next to MUL in market share Hyundai Motor India limited is the largest car exporter from Asian Market which showed a 10% growth compared to last FY The domestic sales is increasing at an average rate of 19.1% HMIL is known for its quality products which has better performance and it has constantly been ahead in the race with Maruti Udyog limited in many parameters The product length includes around 8 cars, starting from new Eon in small car segment to SUV segment Santa Fe Among the automobile players only HMIL is known for its CSR activities Hyundai products never fail to win laurels in each segment from various automobile ratings ever since its operations in India Hyundai , has the largest network of showrooms and service station next to Maruti in India An article in Economic times quoted that Hyundai Eon launched , treads on Alto territory indicated that Eon will act as a threat to reduction in Altos market share Weaknesses of HMIL HMIL took a long time to gain the market share as its not the first mover in India In terms of most reliable and trusted brand; Maruti is more strong in Indian subcontinent Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make a major impact Increase in commodity prices such as steel, aluminium and ancillary parts has affected margins Since HMIL concentrates on both domestic and International sales there are higher risks of exchange rate fluctuations As Hyundai majorly concentrates on quality, most of its product are in premium category in each segment. Hyundai is still struggling to make a better impact in small car segment in terms of cost efficiency like other manufactures Hyundai doesnt have any product match to compete in Corporate orders like Tata Indica V2, Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most preferred in both cab segment and government booking for bulk orders Opportunities of HMIL SIAM Society of Indian automobile Manufacturers, have stated that there is steady increase in Car sales both Domestic and Indian contributing a valuable share in Indias Gdp The export markets growth rate is 22.30% compared to last fiscal year The saving consumption pattern of India is an added advantage for any segment doing business in India. This was one of the major reason for Indian market to survive amidst global recession There is more scope of HMIL to enter into small car segment as its has dedicated R&D plant in Hyderabad, India. Hyundai is one of the very few companies that has widest R&D network across the world located in Korea, Europe, India, US, Japan Hyundai has very good opportunity in entering into commercial vehicles and Recreational vehicles as they are already doing well outside India. Currently HMIL has its focus only on Passenger car segment Threats of HMIL Though Hyundai claims itself to have no direct competitors other than MUL, there are Indian players like Tata, Mahindra imposing a strong threat for Hyundai Motors India to expand its product category Foreign Direct Investments flowing in Indian automobile space are not good signs for already existing Giants like MUL and Hyundai.

Almost all major automobile players have started invading India to open up their market and their manufacturing plant in India.Chennai is referred to as the Detroit of Asia! Hyundai faced a slight decline in market share due to tough competition from Fords Figo and Volkswagen- Polo Many manufacturers have started to concentrate on small car segment as an alternative to Nano. These will slowdown the expected sales of Eon.