hYUNDAI Project
hYUNDAI Project
hYUNDAI Project
1. INTRODUCTION---------------------------------------------------------------------------2
2.HISTROY OF HYUNDAI------------------------------------------------------------------2
3. SWOT ANALYSIS--------------------------------------------------------------------------3
3.1 STRENGTHS----------------------------------------------------------------------------------------------------3
3.2 WEAKNESSES------------------------------------------------------------------------------------------------3
3.3 OPPORTUNITIES----------------------------------------------------------------------------------------------4
3.4 THREATS------------------------------------------------------------------------------------------------------4
4. MARKETING STRATEGY---------------------------------------------------------------4
4.1 OBJECTIVES--------------------------------------------------------------------------------------------------4
4.2 TARGET MARKETS-------------------------------------------------------------------------------------------4
4.3 POSITIONING-------------------------------------------------------------------------------------------------4
4.4 STRATEGIES--------------------------------------------------------------------------------------------------5
Product----------------------------------------------------------------------------------------------------------5
Price-------------------------------------------------------------------------------------------------------------5
4.5 MARKETING COMMUNICATIONS---------------------------------------------------------------------------5
4.6 MARKETING MIX---------------------------------------------------------------------------------------------5
Product----------------------------------------------------------------------------------------------------------5
Price-------------------------------------------------------------------------------------------------------------6
Promotion------------------------------------------------------------------------------------------------------6
Place-------------------------------------------------------------------------------------------------------------6
5. PR STRATEGY OF HYUNDAI----------------------------------------------------------6
6. HYUNDAI SERVICES---------------------------------------------------------------------7
7. MANAHEMENT DETAILS----------------------------------------------------------------8
1. Introduction:
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-formoney product and will be available in varied colors suited to the Indian market.
The companys 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.
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, Getz Prime in the B+ segment, the Accent and Verna in
the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the
Tucson in the SUV segment.
Hyundai Motor India, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an
increase of 18.5 % over CY 2005. In the domestic market it clocked a growth of 19.1 % a
compared to 2005, with 186,174 units, while overseas sales grew by 17.4 %, with exports
of 113,339 units.
HMILs 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 HMILs total production capacity to 600,000 units per annum by end of 2007.
2. History of Hyundai
The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung
Chung established Hyundai Auto Service in Seoul, South Korea at the age of 31 years.
The name Hyundai was chosen for its meaning which in English translates to modern.
The Hyundai logo is symbolic of the company's desire to expand. The oval shape
represents the company's global expansion and the stylized "H" is symbolic of two people
(the company and customer) shaking hands.
Hyundai Motor Company was founded by Ju-Yung Chung and younger brother Se-Yung
Chung in December 1967. In 1968 the company entered into a contract with Ford motor
company to assemble the Ford Cortina and Granada for the South Korean market and
continued to produce them until 1976. Hyundai completed construction of the Ulsan
plant in six months and achieved the shortest groundbreaking to first commercial
production of any of Fords 118 plants. The eight year journey provided Hyundai with
assembly knowledge, blueprints, technical specifications, production manuals, and
trained Hyundai engineers.
3. SWOT ANALYSIS
3.1 Strengths
The Quality Advantage: Hyundai owners experience fewer problems with their
vehicles than any other car manufacturer in India (J.D. Power IQS Study). The
Santro was chosen the best in the premium compact car segment and the Getz in
the entry level mid - size car segment across several parameters. This study
measures owner in terms of design, content, layout and performance of vehicles
across several parameters.
A Buying Experience like No Other: Hyundai has a sales network of 250 stateof-the-art showrooms across 189 cities, with a workforce of over 6000 trained
sales personnel to guide our customers in finding the right car. Our high sales and
customer care standards led us to achieve higher nameplate in the J.D. Power SSI
Study.
Quality Service across 1036 Cities: In the J.D. Power CSI Study Hyundai
scored the highest across all 7 parameters: least problems experienced with
vehicle serviced, highest service quality, best in-service experience, best service
delivery, best service advisor experience, most user-friendly service and best
service initiation experience.
The 92% of Hyundai owners feel that work gets done right the first time during service.
The J.D. Power CSI study also reveals that 97% of Hyundai owners would probably
recommend the same make of vehicle, while 90% owners would probably repurchase the
same make of vehicle.
3.2 Weaknesses
Commodity Price Risks: Hyundai commodity price risks to higher costs due to
changes in prices of inputs such as steel, aluminum, plastics and rubber, which
go into the production of automobiles. In order to mitigate these risks, the
company continues to attempts to enter into long term contracts based on its
projections of prices. In a volatile commodity market, where your company gives
top priority to ensuring smooth availability of inputs, long term contracts are
helpful. They also help minimize the impact of growing input prices. Conversely,
long term contracts dilute the benefits, if any of a decline in input prices.
Exchange Rate Risk: The company is exposed to the risks associated with fluctuations
in foreign exchange rates mainly of import of components & raw materials and export of
vehicles. The company has a well structured exchange risk management policy. The
company manages the exchange risk by using appropriate hedge instruments depending
on the prevailing market conditions and the view on the currency.
3.3 Opportunities
Leading Growth: As the market leader, company led the growth in the passenger car
sector last year. Hyundai sales went up 30% to 4, 72,000 units. This, as I said
earlier, is the highest annual sale since company began operations 20 years ago.
Hyundai also gained market share, mainly on account of its performance in the
competitive A2 segment where it increased its share from 40.3% in 2005-06 to
47.7% in 2006-07. The record sales performance was reflected in the financials.
Net Sales (excluding excise) grew by 31% to Rs 93,456 million. Operating Profit
Margin increased from 0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax
jumped 270% to Rs 5421 million.
3.4 Threats
Risk Factors: In the course of its business, Hyundai is exposed to a variety of market and
other risks including the effects of demand dynamics, commodity prices, currency
exchange rates, interest rates, as well as risk associated with financial issues, hazard
events and specific assets risk. Whenever possible, we use the instrument of
insurance to mitigate the risk.
4. Marketing Strategy
4.1 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.
4.3 Positioning
Using product differentiation we are positioning the Hyundai Pa as the most versatile,
convenient, value added car model for above target market used. The marketing strategy
will be focused on promoting the car as economic car for the next generation.
4.4 Strategies
Product
Hyundai pa is fully loaded and will be sold with 3 year warranty. We will also introduce a
diesel/CNG/LPG version of Hyundai Pa in the near future. Also the high end model will
have an option of GPS system.
Price
Hyundai Pas base model will be introduced at ex-showroom price of 3 lakhs. This price
reflects a strategy of
1) Attracting desirable channel partners
2) Taking market share from Maruti.
Distribution
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 wills 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.
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, Indias
second largest automobile manufacturer is now targeting the premium segment
with their latest model from the Hyundais stable. The analysts predict the pricing
of this premium hunchback to start from Rs. 3 lakh.
This price range would practically rip apart Marutis 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 customers 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
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 advertisement
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.
5. PR STRATEGY OF SENTRO
6. Hyundai services:
Authorized sales and services centers of Hyundai, India
Hyundai Service Website.
Hyundai Premium Assist.
Hyundai Warranty.
Privacy Policy Hyundai Motor Finance.
7.Management Details:
Ketan
Sales Manager
Rakesh
Advertising
Manager
Arpit
Promotion
Manager
Manoj
Advertising
Analyst
Anil Kumar
Promotion
Analyst
Deepak
Regional Sales
Manager
Jasvinder
Regional Sales
Manager
To quote KWAN 'JZU (3RD CENTURY BC), "When planning for a year, sow corn;
when planning for a decade, plant trees; when planning for life, train and educate men".
Once the vision statement has been conceptualised and indicates the direction the
organisation is heading for, and then we work towards the mission which basically
includes the performance parameter. This also encompasses quality, service orientation,
cost-effectiveness and such specific variables.
South Korea's leading carmaker, Hyundai Motor produces compact and luxury cars, SUVs, and
minivans, as well as trucks, buses, and other commercial vehicles. The company re-established
itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since
reduced to about 34%). Selling cars in the US since 1986, Hyundai started selling its heavy trucks
stateside in 1998. Hyundai's models for the North American market include the Accent and
Sonata; models sold elsewhere include the GRD and Equus. Through its Hyundai WIA subsidiary,
it also manufactures machine tools for metalworking applications, such as horizontal machining,
turning, and vertical machining
In recent years, Hyundai Corporation has further diversified its business portfolio
by expanding into new businesses. Notably, it has become a world-class player in
the shipbuilding industry by establishing Qingdao Hyundai Shipbuilding, a Chinese
subsidiary specializing in the construction of mid-sized commercial vessels.
Hyundai Corporation is also working with select partners to bring Hyundai-branded
electronics and other consumer products to households worldwide, and has seen
remarkable growth in the sale of mobile phones, digital cameras, and home
audio/video systems.
At the end of 2009, Hyundai Corporation became an affiliate of Hyundai Heavy
Industries, the worlds undisputed leader in shipbuilding, heavy equipment, and
emerging technologies such as solar and wind power. Hyundai Corporation is now
well-poised to become one of the worlds top solutions providers for any number of
commercial and industrial needs, with resources, sector and regional expertise, and
individual talents second to none.
In recent years, Hyundai Corporation has further diversified its business portfolio
by expanding into new businesses. Notably, it has become a world-class player in
the shipbuilding industry by establishing Qingdao Hyundai Shipbuilding, a Chinese
subsidiary specializing in the construction of mid-sized commercial vessels.
Hyundai Corporation is also working with select partners to bring Hyundai-branded
electronics and other consumer products to households worldwide, and has seen
remarkable growth in the sale of mobile phones, digital cameras, and home
audio/video systems.
At the end of 2009, Hyundai Corporation became an affiliate of Hyundai Heavy
Industries, the worlds undisputed leader in shipbuilding, heavy equipment, and
emerging technologies such as solar and wind power. Hyundai Corporation is now
well-poised to become one of the worlds top solutions providers for any number of
commercial and industrial needs, with resources, sector and regional expertise, and
individual talents second to none.
1) Headquarters
Sales Segment : 8 Divisions
(Electrical and Mechanical Systems, Automobile and Ship, Steel I, Steel ,
Chemical, Strategic Business, Green Energy, Global Works)
Support Segment : 3 Departments
(Finance and Accounting, Corporate Strategic Management , Corporate General
Administration)
2) Overseas Offices (Total : 36)
America: 7
Europe : 3
Middle-East and Africa : 7
Russia and the CIS : 4
Asia and Oceania : 18
3) Subsidiaries : 3
Qingdao Hyundai Shipbuilding (Qingdao, China)
POS-Hyundai Steel (Chennai, India)
PT. Inti Development (Bekasi, Indonesia)
(As of April, 2011)
Headquarters : 290
Overseas Offices : 62
Total : 352
2010
2009
2008
2007
2006
111.7
111.7
111.7
111.7
111.7
3.6
2.6
2.8
1.7
1.1
3.1
1.8
2.2
1.3
1.0
Autos, Ships, Plant & relevant materials, Electric & Electronic products,
Machines, Parts, Petrochemicals, Metal and Steel Products, other
commodities.
Petroleum, Coal, Steel, Aluminum, Nonferrous Metals, Electronic and
Auto Parts, Machines and Parts, other export-use raw materials and
facility materials.
Current Projects : Oman LNG, Ras Laffan LNG in Qatar,
Drayton coal mine (Australia), 11-2 Gas
Block in Vietnam, Yemen LNG
Bio Resources : Plantation in Primorye (Russia), Biofuel Production,
etc.
Green Energy : Photovoltaic System, Wind power generation,
etc.
Shipbuilding Business, overseas marketing support for domestic small
and medium companies, real estate development business
(i.e Industry Complex Development in Indonesia), Distribution and etc.
Organisaton structure
Hyundai CSR
Hyundai Corporate Social Responsibility
Corporate Social Responsibility(CSR) has become the key issue in company-society
relations. CSR has taken a position of the core pillars of Hyundai Motor as the company
strives to establish a new Sustainable Business Management System based on its five
primary business principles.
Hyundai Motor Company does not see itself as a mere profit-making entity. It is a
Contributing member of global society based on the responsible corporate citizenship. It
is one of the main purposes to make a better world in close cooperation with all people
and groups, including stake holders, employees, customers, shareholders, suppliers, and
local communities in the world.
Specifically in April of 2007, Hyundai Motor announced its socially responsible
management plan to fulfill its responsibility to global society.
History
Hyundai Santro Xing/Atos Prime is made only by Hyundai Motor India Limited.
Hyundai Motor India Limited was formed in 6 May 1996 by the
Hyundai Motor Company of South Korea. When Hyundai Motor
Company entered the Indian Automobile Market in 1996 the Hyundai
brand was almost unknown throughout India. During the entry of
Hyundai in 1996, there were only five major automobile manufacturers
in India, i.e. MUL, HM, PAL, TELCO and M&M. Daewoo had entered the
Indian automobile market with Cielo just three years back while Ford,
Opel and Honda had entered less than a year back.
For more than a decade till Hyundai arrived, Maruti Suzuki had a
complete dominance and monopoly over the Passenger Cars segment
because TELCO and M&M were solely Utility and Commercial Vehicle
Manufacturers.
HMIL's first car, the Hyundai Santro was launched in 23 September
1998 and was a runaway success. Within a few months of its inception
HMIL became the second largest automobile manufacturer and the
largest automobile exporter in India.Hyundai Motor India Limited
(HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC),
South Korea and is the largest passenger car exporter and the second
largest car manufacturer in India. HMIL presently markets 6 models of
passenger cars across segments. The A2 segment includes the Santro,
i10 and the i20, the A3 segment includes the Accent and the Verna, the
A5 segment includes the Sonata Transform and the SUV segment
includes the Santa Fe.
HMILs fully integrated state-of-the-art manufacturing plant near
Chennai boasts of the most advanced production, quality and testing
capabilities in the country. To cater to rising demand, HMIL
commissioned its second plant in February 2008, which produces an
additional 300,000 units per annum, raising HMILs total production
capacity to 600,000 units per annum.
In continuation with its commitment to providing Indian customers with
cutting-edge global technology, HMIL has set up a modern multi-million
dollar research and development facility in the cyber city of