Integrated Marketing

Communication Plan
Topic: KIA Motors

Final Project by:

Neha Ali
1615122
BSMS-5A
IMC Elective
 Introduction
- From its humble beginning in 1944 at Seoul, South Korea, KIA Motors
Corporation has grown into a leading motor vehicle manufacturing in Korea
and now has a place in the world market.
- It now ranks 74 in Interbrand together with winning Best value in America
Award for its electric/hybrid car.
- Previously, it was named Kyungsung Precision Industry which was later
changed to its current name Kia Motors.
- It is ranked at the second position as the largest manufacturer of automobiles
in South Korea.
- KIA is derived from Chinese characters meaning ‘to come out of Asia’ (Ki
meaning arise or come out and a referring to Asia).
The brand has targeted upper-middle and an upper class section of society as its
target customers. Some of its rival companies in consumer market are as
follows:
• Nissan Motors
• Honda
• Toyota
 Objectives:
- KIA believes in corporate vision of ‘together for a better future’.
- It strives to maximize value creation and maintain a balance by the growth of
shares for its shareholders by believing in respecting people and processing the
environment management.
- The key value of KIA is ‘Building a new future and realizing humanity’s
dreams by thinking creatively and tackling challenges head on’.
- KIA sets quality and car safety as long term goals. Its objective is to enhance
both the economic values and sustainability at the same time.

Range of Motors:
- KIA manufactures a whole range of cars to suit all age and budget groups.
- Its product portfolio includes trucks, SUVs and passenger cars. It has also
produced military vehicles along with transportation equipment and several
variants.
- Kia Motors is an easily recognized brand because of its distinctive, vibrant and
reliable range of vehicles. The car ranges from Estates to SUV, sports and luxury
models.
 Absolutica
My report is based on KIA’s new product ‘Absolutica’. I shall draw the
situational analysis (comprising of 5 C’s and SWOT analysis to launch
Absolutica in the American market) and the Marketing plan (detailing the
market segmentation, positioning, marketing mix and competitive advantage).
The 5 C’s of Absolutica:
1- Company:
Product line: Absolutica will be KIA’s own manufacturing brand. Absolutica will be a
high end product and will fall in luxury car range.

Image in the Market: With a best value award in hand, Absolutica will be in a leading
position when launched in the American market.

Goals: The goal would be to create a market for Absolutica in leading cities of America,
thereby expanding nationally and global market.

2- Collaborators:
KIA has a manufacturing plant in Georgia, US. The market for Absolutica is USA and a
national plant will enable easy of delivery and access of parts and services as and
when needed between dealers and the company.
3- Customers:
The target customers are Americans. Customers have benefited in the past from
KIA motors and now have the benefit to have a luxury car being manufactured
from their favorite and award winning company.

4- Competitors:
To survive in a competitive market, it is not only important to understand the
customers but also the competitors. Absolutica will strive to exceed the customer
satisfaction as compared to its competitors. Absolutica will face direct competition
from Chrysler, Ford, General Motors, Hyundai, Saab and Volkswagen.

5- Climate:
The Climate of 5 C’s cover the macro-environment factor. It takes into account the
political, economic, social and cultural part of the market. Which I will further
discuss in PESTLE Analysis.
 SWOT Analysis
Strengths:
- KIA motors have presence over 150 countries and have strong hold in the US
and South Korea market.
- It now appears in top 100 Interbrand listed companies (interbrand.com).
- One of the biggest strength of KIA motors is the 7-year warranty.
- KIA fulfills CSR in three fronts – social contributions, sustainable operations
and business ethics, under the leadership of the enterprise-wide Social
Responsibility council (pr.kia.com).

Weakness:
- KIA Motors went bankrupt in 1997 due to Asian financial crisis and has been
bought over by Hyundai Motor Company which is still fresh in customer’s
mind.
- Constant Recall of car every year either due to exterior lighting, steering fault
or other.
- KIA is more popular among middle class customers and has yet to meet the
high end customers.
Opportunities:
- KIA has reported increased sales in US with 14.9% in 2012 and increasing
steadily. It has topped 6% market share overtaking Nissan.
- With the crumbling car market in Russia, KIA has used the advantage of low
prices to become the third largest car maker in the country. Hyundai is planning to
share its new plant with KIA in India, giving KIA the opportunity to enter the India
market.
- KIA has come a long way from being bankrupt to top 100 in Interbrand and
increased market share, KIA has opportunities to tap into the luxury car market.
KIA intends to introduce luxury cars by 2017.

Threats:
- Although KIA has emerged into international market, it lacks innovation and
technology as compared to German and Japanese car makers.
- The market is very competitive and KIA has continuous threats from Ford Motor,
Honda Motor, Mazda Motor, PSA Peugeot Citroen, Toyota Motor, Volkswagen,
Daimler, Fiat Group Automobiles, SsangYang Motor, General Motor, SAIC Motor
and Suzuki Motor.
- With its Global operations, the company is always exposed to foreign currency
exchange risk with the high proportion of export sales. KIA has presence in 168
countries and any change in the demand, refinancing conditions, fluctuating in
currency rates can have major impact in company’s earnings.
 PESTLE Analysis
PESTLE analysis gives a product a better insight to launch in a new and existing
market, while taking into consideration the current environment of the market. I
am considering to launch Absolutica in few countries. I shall discuss the
PESTLE to launch in American market. Automotive industry is one of the largest
industry in the world and is responsible for half of the consumption of world oil.
Political
KIA has seen growth in the American market and with its launch of luxury cars, it
will be looking forward for all help and support possible from the elected
President to keep thriving the industry.

Economic
The economic factor of PESTLE plays an important role for Absolutica. It will
be cautious of economic factors of inflation rate, interest rate, exchange rate,
economic growth and foreign investments, government regulations towards car
industry, the demand for cars and the impact of export and import.

Social
Absolutica is created keeping in mind of the latest social trend and fashion. KIA
has developed car bearing in mind the budget related consumers.
Technological
After immense research and innovation, Absolutica is being created. It falls in
line with its competitors and will be one of the most sophisticated car in the
industry. Absolutica intends to mature in technology with time and will try and
be ahead in the design and innovation.

Legal
Absolutica will comply with all the current, national, international and future
legislations as laid down by the government. It will ensure employees are given
their rights and consumers rights are not affected. Due consideration will be
taken towards the taxation system of the country avoiding money laundering and
cars will be manufactured as per industry specific regulations.

Environment
Absolutica is very conscious of reducing carbon footprints. It will work parallel
with environment and ecological regulations and has plans to manufacture
electric cars in future. It will play an important role towards CSR and intends to
start a charity
‘Absolute Environment’ with the intention of planting 2000 trees from
first year onwards.
 Market Research
KIA has been targeting budget customers with its outstanding service and quality.
It felt the necessity of expanding its wings and through ad hoc research, retail
audits, consumer panel and website analysis by asking customers preferences and
intentions, it felt the need to expand into the luxury car market. This research
helped shape market strategy, understand the potential of the market by putting it
into action, understanding the outcome and utilizing the results.

Market Plan
Absolutica is at entry market stage and after careful marketing audit, for the
success of Absolutica, I suggest to read further the segmentation, brand
positioning, increasing brand equity, marketing mix and marketing
communication. The marketing audit was done by understanding the customer,
making the right product, recognize and deal with the competitors and adding
value to the product.
KIA Absolutica Market Segmentation:
Based on the research I would propose to divide the market into three segments.
- Behavioral: This segment would form the base of the Absolutica. The key is to
target customers who look out for innovative products and want to be the first ones
to get their hands on the product, in our case Absolutica car. We then have customers
who make purchases for the pleasure and comfort and to be able to show their hands
on the latest model. Apart from this, we can also segment to the customers who
already have KIA models and want to upgrade to the latest model.

- Psychographic: There are customers who prefer luxury cars and it is part of their
life. Although, KIA is new in the luxury car market, it can target and segment those
customers who have always sought high end cars.

- Profile: As it is luxury car, the demographic variable will be 40 plus age customers
ranging from managing directors to professionals of higher level. Geographically, I
would propose to launch the product where Kia already holds the market. This
would help ease of help with brand loyal customers.

The target market of Absolutica will be countries with high Kia users. That would be
USA to start with followed by South Korea.
Targeting Strategies for Creating / Increasing Brand Equity:
Absolutica will be known as the car with outstanding luxury features.
Crisp metallic finish, heated leather seats, polish wooden interior, state of art
technology will be the main features which will make Absolutica an absolute
luxury car.
The slogan will also be changed from ‘Power to surprise” to “Drive with Comfort
and Luxury” to go with the brand and target the high end customers.
The brand Absolutica will stand out and differentiate with other brands. It shall
bear the 4-cs of successful positioning; clarity, consistent, credibility and
competitive.

- Clarity as in the brand will go with the slogan of Drive with Comfort and
Luxury. The target markets are currently countries with high Kia sales, USA and
South Korea.
- Absolutica will maintain its consistency. The quality and especially after sales
service will not be compromised. Kia has a 7-year warranty and will continue to
provide this to Absolutica brand.
- The brand will be competitive in terms of pricing. Absolutica has everything to
offer in terms of modern cars, yet with good price and 7-year warranty. This will
help Absolutica stand out.
- The credibility of the brand will grow over time as customers will realize it is
indeed a car for comfort and luxury.
Positioning of Absolutica
- One of the first steps to position strategy for Absolutica is to get the credibility and
make an impact on customer’s memory.
- It is important to know the competitors. Absolutica is priced at the range of $
25,000 to $35,000 and is ready to compete with the leading brands in USA including
Audi, Hyundai, Saab and Volkswagen and others like Chrysler, Ford and General
Motors.

Once we have managed to step in the market, I would propose Absolutica to stay in
limelight by regular advertisements in TV, social media, hoardings, auto shows.
Advertisements: Advertisements will highlight the importance of the car. How it
has been desined, how its going to be environmental friendly and the way the car is
manufactured to get the customers a feel of how there is manufactured and how it
impacts the environment.
Auto / Trade Shows or sales promotion: Special Guest passes will be sent to
current KIA customers, customers who express interest in Absolutica and other high
end users to get a look and test drive the car. This will help in increasing brand
loyalty too.
CSR: To ensure Absolutica gives back to the community, a charity will be
established, namely ‘Absolute Environment’. The aim of Absolute Environment will
be cleaner and greener environment, for smart cities and will plant 2000 trees a year
at different locations round the world.
Marketing Communication and Digital Marketing of Absolutica:
- Internal marketing, face-to-face, digital marketing and content marketing shall
be used.
- Exhibitions, trade shows, special invitations, expo day, opening days would give
Absolutica opportunities to meet potential customers face-to-face.

The promotional tools used to launch Absolutica:

- Search engines and advertising in the net.
- 360degree marketing giving customers to customise their cars online.
- Use of e-WOM (word of mouth).
- Mobile marketing and e-mails by sending regular updates and offers to
subscribed customers.
- Profile targeting customers through social media. For example: using sponsored
ad in Facebook to pass the information and creating a topic of conversation in
Twitter.
- Content marketing will be used extensively to give customers a chance to know
more about Absolutica. This will be done by giving options in printed magazines
and providing links while e-marketing and using social media.
 Marketing Mix
Product:
- At KIA we have created ‘Absolutica’ a high end luxury car for comfort and style.
- Absolutica will provide the superior, quality driving experience. It will be available
in both petrol and diesel fuel providing maximum mileage per gallon, starting from 2
litre to 4 litre engine size.
- Absolutica is an intelligent car that understands the adverse weather conditions and
adjusts itself with brakes, speed and balance. It will be extremely agile to sudden
road conditions of potholes and ramps to minimise the damage to suspension and
body.
- Leather seats, wood carved interior, glass holds, built in sat-nav and Bluetooth,
cruise control, auto door lock, sun-roof, spacious boot, arm rest, bose speakers,
Absolutica is designed for comfort and take away the tiredness.

Price:
- I would consider market-oriented pricing for ‘Absolutica’. The factors, I would
consider are; Marketing Strategy, Penetrate Pricing, Value to the Customer,
explicability, Competition, Effect on dealers and cost.
Marketing Strategy: As it is a new product, the first step would be to consider the
positioning strategies and use the new launch product strategy. I shall consider ‘Rapid
Penetration’ with a combination of low price, high promotion, product and place.
The conditions to use the low price strategy is to penetrate the market and mark the
dominance over time. KIA has built a reputation of more budget cars targeting middle-class
customers. Based on this fact, I would not suggest to charge high prices, as customers will
not favour the product and will compare Absolutica with its high end successful competitors.
Low prices will also increase the sales output, thereby gaining market confidence, lift the
barrier to entry the market and KIA can work with the idea of making money later.

Explicability: While selling Absolutica, the sales person can certainly bring out the best of
the product and convert it to the best prices as compared to competitors. With right training,
sales of Absolutica should not be hard.

Effect on dealers: This is very crucial part of the orientation. Absolutica will be sold mostly
through dealers and with its low price to penetrate the market, the dealers might have to
compromise with low margin profit. However, this can be dealt by maintaining good
relations with the dealers, and giving out higher margin on other models.
Promotion:
- Absolutica will implement a successful integrated marketing communication
with its customers by understanding the opportunities in the market and capturing
the market accordingly.
- Hence, the comfort and luxury of Absolutica will be analysed and based on the
product positioning, customers will be targeted with the message accordingly.
- For example: A campaign will be drawn to achieve the communication objective
by linking the comfort of bedroom to that of driving the car. This can be done
through creative agency and other similar providers. The agency will provide and
come out with simple, creative and effective message.

Tools: Tools used to promote Absolutica will be mass, direct and digital.
For example: Billboards, advertisements, sales promotions at launch are some
of the mass communications that will be used. Direct communication can be
done at exhibitions, sending invitations to current KIA customers, informing
customers about launch of Absolutica when passing through showroom. Digital
Communication is the newest and most effective way of communicating with
customers. Twitter chats, Facebook sponsored advertisement and pages, websites,
emails form part of digital communication.
Place:
- Absolutica will use the Manufacturer – Dealer – Consumer channel.
- This will help the customers to approach the dealer, test drive the car, get their
queries answered and make the purchase.
- The Channel strategy would be on market factors, exclusive distribution and
Franchising.
Market Factor: As Absolutica is a KIA brand, buyer will prefer to get the best
knowledge and information through their dealer. As the dealer will specialise
on KIA models and exclusively on Absolutica, spare parts and after sales
service will also be provided to the customers.
Franchising: Channel integration will take place through Franchising. KIA to
Dealers. All help and support including training, regular periodicals,
information and knowledge will be provided to the dealers as per the
manufacturer and dealer agreement and terms and conditions.
The Franchises will be managed by careful selection, training, motivation and
evaluation from time to time and conflicts resolved swiftly. The manufacturing
plant of KIA is in Georgia, USA, which gives the flexibility of distribution.
 Budget
Income statement of Kia Motors
Fiscal year is January to December: All values are in million.

Sales/Revenue:
2015: 49.52
2016: 52.71
2017: 53.54

Cost Revenue:
2015: 39.67
2016: 42.29
2017: 44.59

Net Income:
2015: 2.63
2016: 2.75
2017: 2.94

When compare to the budget of 2015, 2017 and 2017, it is forcasted that Kia sales
would increase in 2018 aswell.
 Conclusion
- Absolutica is made after careful research, customer requirement and in
competition with other brands.
- The slogan ‘Drive with comfort and luxury’ does go with the product. Care is
taken with the price to be able to penetrate the market and providing value to the
customers. - Different tools to reach the customer, including use of social media
and promotions are given utmost importance.
- It is also ensured that products are available on demand and customers are able
to test drive Absolutica before the purchase. The People involved with the
Absolutica, the showroom and interior, the whole experience of buying
‘Absolutica’ is designed to be exceptional.
- All this definitely creates effectiveness of the product. The success can be
measured through social media, enquiries for the product, purchase and demand
of the product. - - The critics and reviews will also form a good source to
measure the success of the product.

Thankyou!