Hyundais Performance - Case Study Example

Running Head: Creating a Marketing Plan from a Case Study University Name: A structured way of establishing what Hyundai has to offer and what the market needs and demand dictates is essential. Such a plan will be very important for us in Hyundai, the vehicle manufacturers in re-organizing our business. Hyundai have come up with a marketing plan to guide the company in its operations since it’s future appears to be skeptical. The company’s marketing plan will take seven sections, which are discussed below Reviewing The Situation This will involve identifying the company’s strengths, weaknesses, opportunities and threats commonly known as the SWOT analysis. Hyundai’s strengths & weaknesses will relate to the internal audit while opportunities and threats will relate to the external audit. Hyundai strengths includes recorded improvements in its products quality, its 100,000 mile warranty that covers a period of ten years, reconfiguring prices and its established customer link through trading directly from the dealers. All these strengths have brought huge success in the company resulting to increased sales volume thus helping the company create stiff competition for its competitors i.e. Toyota and Honda. Weaknesses in the company include: - unfamiliar product where most people do not have full knowledge about the Hyundai brand, offering cheap prices for our products thus making the high income earners shy away from buying our models and lastly, our low quality – products vehicles that are generally boring to the consumers. Some of the opportunities the company is having are its organized clinics that involve launching new models and gathering information from the customer’s about our products. This is a great oppourtunity since it helps in creating awareness to the general public about our new models and at the same time gathering views from customers regarding our products thus helping us to better improve quality. Most of the threats that Hyundai is facing are coming from its competitors i.e. Honda and Toyota. The competitor’s products are of high quality, familiar and luxurious. They also have a wide scope of marketing thereby a large customer base that translates to increased profitability and realized business success. Assumptions That the targeted customers are people with different earnings i.e. some are low-income earners while others earn a lot of money. That there are no trade restrictions and barriers imposed to Hyundai meaning that there is no scope of limit and business can be carried out in the entire globe. That the entire plan will cost the company an estimated fifteen million dollars a figure that the company can afford. That the inflation late will keep on fluctuating and so will be the exchange rates among various countries. That the company has enough resources Objectives Widening the market scope i.e. establishing markets worldwide as well as organizing product clinics in every country so as to increase awareness to the customer. Tripling sales through aggressive marketing campaigns aimed at changing customer’s perception towards the company’s models. Increasing the units of production so as to meet the needs of the extended marketing scope and adapt to customers demand. To realize increased revenue as a result of higher sales thus competing favorably with the competitors. To be the market leaders ahead of Toyota and Honda through product’s acceptance as a result of improved quality and developed strong brand. Strategies To achieve effective marketing strategies Hyundai will define the nature and scope of its market place through segmenting its market into customer groups. The many Hyundai customers have varied needs and expectations from the products they buy. People will tend to buy a model because of their lifestyle, age, among other factors. The marketing plan will involve dividing markets into distinct groups of the buyers i.e. for those with high social economic status and those with low social economic status. This way the company will be able to set distinct prices for the various models produced. These will also give a close match between the customer needs and what Hyundai can offer. Hyundai will consider concentrating its resources on the areas of greater customer base i.e. regions with ready customers who have positive perception on the products from our company will get much concentration so as to help in boosting the sales volumes as well as strengthening the brand. This will be a key point in realizing profitability in the competitive markets. At the development stage, the company should carry out thorough research on new ideas aimed at availing the targeted developments associated with product life cycle. Most resources will be diverted to this stage so as to produce high quality models. At the introduction stage, Hyundai should introduce more models to the market to make sure they are available to the customers. More funds will be allocated to this stage so as to meet expected demand from the public. The products will be innovative to help in reducing competition. Acquired profits will be re-invested in the models improvement in order to capture more market share thus widening the market. The maturity stage last longer than any other. At this stage competition increases, sales stabilizes, growth peaks and markets become saturated. The company will increase promotional activities so as to maintain brands loyalty, pricing will be set according to the prevailing competition with more observation on the margins so as to avoid trading at a loss. Hyundai will spread its distribution in every corner of the globe thus improving sales. Products will be well managed so as to help the company in recording investments made in earlier stages. Business is very low at the decline stage. The company will only concentrate on those segments with continued demand, reduce resource allocation to the other segments and do away with old models to come with new ones as per customers demand and needs. The company will design a strategy aimed at quick response to the changes in customer tastes by developing new models as the vehicle market become increasingly fragmented. These will include Psychographic segmentation whereby lifestyles will be classified to know the various needs of the consumers, Demographic segmentation will also be applied to know the regions with dense population hence more customers, this will be important in establishing each and every population’s lifestyle thus effectively working towards it. lastly, geographical segmentation which will be carried out on the basis of localized different consumer needs. Programs The set programs will include installation of new machineries in the production department so as to help in meeting the increased production needs. The new equipment should be affordable and this will involve liaising with the accounting department so as to know the available funds and the possible budget. Hyundai will embark on a staff-training program. This will give the staff necessary knowledge and skills in merchandising the company’s products thus increasing its customer base. The company will target selected customer groups thereby offering special prices to special customers. A recruitment program will be started so as to acquire addition work force for the vehicle assembling and marketing clue a thing that will help in meeting the customers needs and demands. Marketers will be stationed in every proposed segment area and this will call for the construction of offices in those regions. This will involve marketing department devising an action plan to guides its marketing team. Hyundai will come up with a program of developing distinct models as per the different geographical distribution i.e. different models will be produced for the different social economic status of the targeted customer based on the customer behaviors in the various regions. The company will also design a program of deleting models in their decline stage and revitalizing them so that they can be re -launched as new products. This will help in cutting costs as well as in retaining the customers. Resources will not be wasted on unnecessary promotions at the decline stage since these will not bear fruits. The company will embark on promotional programs that will involve mailing to the prospective customers so as to know their taste and preferences. Hyundai will make maximum use of a well-established brand name by using it on all the products in the organization. These may imply using the company name on all products often with more descriptive individual products name, which will help it in increasing its market share in the vehicle industry. Alternatively the company may also use one brand name for all products or group of products that is different to the company name. The company will design a program to become a market leader aimed at leading ways into new products, enlarging the distribution coverage, price movement and promotional expenditure. The company will be a real challenger by attempting to improve its position through attacking market leaders or smaller competitors. We will also be “nichers” by targeting small segments where large firms have overlooked. Measurement The set objectives in Hyundai will be measurable and time specific this will help us in evaluating whether we have achieved the set objectives or not. To measure the value and quantities of model sold , the Company will launch a new model in the first one year with a low sales budget targeted at the local market afterwards in year three the company will launch the model country wide with a high sales budget. These will be sufficient in evaluating Hyundai’s performance. Review This stage will assess Hyundai’s performance in terms of achieving goals, the identification of assumptions made i.e. whether correct or incorrect in valuation of the plans outcomes, the effectiveness of the strategies designed plus the implementation levels achieved concerning the various adopted programs in Hyundai Reference Hyundai case study Read More