Hyundais Marketing Plan - Research Paper Example

Hyundai’s Marketing Plan This paper is going to deal with the Hyundai Motor Group. The overview of the company will be analyzed and its development and research the company undertakes. The paper will also bring out the Situation analysis, target markets, marketing objective, marketing mix and marketing tactics. SWOT analysis of the company will also be analyzed, and recommendations made on how the company can work to improve its current position. Business Overview of Hyundai Heavy Industry Co. Ltd Hyundai Motor Group is the second largest automaker company in Asia following Toyota and the fourth largest in the world. The company is a South Korea conglomerate company with its headquarters in Seoul. Chung Ju-Yung founded the group in 1998 after the purchase of the second largest car company; Kia Motors, Hyundei purchased 51% of the company thus leading to the growth in the company’s operations and its market share. The acquisition of stake in Kia Motors saw the company’s reestablishment, thus leading to its growth. Hyundei Company deals in production of cars, minivans, trucks, buses and other commercial vehicles. In 2000, the company establishes a fuel task force in Yongin, which acted as the company’s research and development center. In the same year, the Hyundei saw its success after disclosing its first prototype fuel cell vehicle (FCV), which was regarded as the Sante Fe Sports Utility Vehicle just a few months signing an agreement with International Fuel Cells with an effort of supplying fuel cell power plant. The sales made by the company have over the years increased significantly, for example, it made sales of over 3.6 million for its vehicles worldwide. The company is known for its operation of the world largest integrated automobile manufacturing facility, which is based in Ulsan, giving it an ability of annually producing up to 1.6 million units. Hyundai Company has been significant in the provision of employment opportunities; it has employed 75,000 persons worldwide. The company sells its vehicles to 193 countries; this is achieved by use of 6,000 dealerships and showrooms (Chung 22). The major achievement of the company was witnessed in 1986, when he sell its products in the internationally it began to sell cars to the United states, where its product Excel got nomination of being the best product this was because of its cheap prices hence affordability. This was a stepping-stone to the company and from then it began producing model using the available technology. The aggregate production of in 1990 was estimated to be over four million; the company has seen its success in development of gasoline engine and its own transmission. These developments have given the company an opportunity to become technologically independent. In 1998, the company in an effort of establishing the company as an excellent brand, management and leadership was transferred to Chung Mong Koo the son of Chung Ju-Yung. This marked the beginning of heavy investment, invention of various designs, manufacturing and effectiveness in research of the company’s vehicles. Hyundai motors have maintained its position in the region and the world its products are known for the profound performance it has portrayed; it has become the top most valuable brands worldwide (Chung). Situation Analysis The company has been ranked as the fastest growing car manufacturer in South Korea. Currently, the company is involved in marketing of 20 variants of passenger cars in six segments. The continued performance of the company of being the fastest and leading passenger car manufacturer has lead to the company registering high sales of up to 299, 513 vehicles in 2006, and these amounts to 18.5% increase from over the previous year. The company’s growth rate in the domestic market is an increase of 19.1% in 2006 compared to 17.4% in 2005. The company’s subsidiaries like Hyundai Motor India Limited contain a fully integrated state-of-the-art manufacturing plant has assists in boosting of quality capabilities, testing capabilities and advanced production in the country. The company with an effort of providing its customers global technology has participated in setting up a second plant. Its efforts of investing in the expansion of capacity in the global export provider for the compact cars have seen the company succeed in the local and international market. The company not only strives in expanding its production capacity, but also in expanding the company’s dealer network (Chung). Significant year, in the calendar of Hyundai, is 2006, the company has significantly achieved in various sectors of its operations, and the most significant is the 300,000th export car. Hyundai exports its products to over 65 countries worldwide. The company’s subsidiary in India, the HMIL was awarded the benchmark ISO 14001 certification for its sustainable environment management practices and its ability to manage its resources. The award marked a new beginning of the company’s image in the international market. Competitors The company face competition from other related company, they compete in the market. There are two significant competitors, which poses a threat to the company. These companies include; Maruti Udyog Limited and the Tata Motors Limited these companies have been seen to increase it income in the year 2006, there was an increase of 4.3% from the 2005 income. These companies usually sell their products at a price less than that of the Hyundai, thus forcing customers to shift to the company (Hennart 199). In the effort of curbing the competition, the company has diversified in its means and methods of production. The market share of Maruti Company is 20% of the total market while that of Tata Company is 25%. Hyundai Company takes the largest percentage in the market share of the two companies. The two competitors both have some advantages, which make them compete with the Hyundai besides being small scale companies. Maruti is located in a strategic position where customers will notice its presence. These competitors, however, have gotten weaknesses, which hinders then from competing effectively with its competitors in the market (Harmon 175). The demand and demand trends of Hyundai are, however, different from those of its competitors. Hyundai has managed to maintain its aggregate demand in the year 2006 despite the availability of related products from its customers. Hyundai’s products have high demand in the market, this is because of the fact that the company produces goods and offers services to its customers of high quality compared to the goods produced by its competitors. The company has managed to maintain this position and tops in the world as the leader in the sector this is because its products are accepted across all cultural and social settings. The society holds a positive few towards the products from Hyundai, most individuals and organizations are loyal to the company’s products they trust the producer that is the Hyundai Company. The prevailing political and regulatory climate is favorable to the company’s activities and operations. Political stability in the country has contributed to the success of the company. Marketing Objectives The objectives of the Hyundai Company are varied from the roles the organizations and increasing market share of the business. The first year objective of Hyundai was to aim at having 45% of the total market and making sales of up to 100,000 units. The objectives of the second year were to aim for 10% of the total market share. A significant objective of the company is establishing a well-regarded brand name, which has a direct link to a meaningful positioning (Biggadike 452). Creation of a memorable and unique brand image for the projection of innovation, value and quality, Measurement of awareness and responsiveness of the market is of significance in adjustment of marketing efforts. Target Markets The marketing strategy of Hyundai is for differentiated marketing. The company’s primary target consumers are the middle and upper class professionals having a true desire on the value of money and comfort in driving in the city. The secondary target consumers of the company are the college students; these students need style and speed. Our primary business target is corporate, both mid-sized and large-sized with the need of helping their managers and employees, this is done through the provision of car so that they can ease transport. The secondary business target for the company are both the entrepreneurs and owners of small businesses with the aim of providing discounts to the company’s managers during the purchase of the new car. The four marketing strategies suggest Hyundai’s differentiation given to the identified target market segments (Chung 87). The products of Hyundai are the most used vehicles in South Korea; over 500,000 people use the Hyundai’s cars. They purchase these vehicles for private or business use. Various brands of the products of Hyndai Company are distributed throughout the world; the company has open retail outlets in international cities and towns. People can, therefore. Purchase these products in those retails or purchase them in their headquarters, in South Korea. Marketing Mix Companies and businesses usually carry out production process with an intention of marketing the products to its customers in the market. Market forces of demand and supply determine the extent, to which the product is sold in the market. Brands of the same products at times are usually found competing for the same market. There is a need for producers to ensure that their products are unique and more satisfying this enables these products attract a good market share. Product The company deals with provision of cars, motor vehicles services like sell of spare parts, advertising motor vehicle products and provision of motor vehicle services, the products of the company are unique. The Hyundai Company has a variety of exciting new features; this provides a perfect match of its customer’s tastes and lifestyle. The new brands in the Hyundai consist of generation of varying designs from Getz and Santro design, this the products of the company will vary. The new Hyundai Pa represents a new generation where it is styled with a sense of muscularity. Its features represent stability an indication of its readiness in delivering dynamic drive. The Hyundai Company usually provides warranty for its products; this depends on the nature and complexity of the product and its quality. The company also provides after sales services to its customers in some products (Hennart 300). Promotion The company in its effort to promote the products, utilized various promotion methods these include road shows, television and advertisements, radio, print advertisements, workshops and seminars, banners and booklets. Each product has unique features, which needs different promotion methods. The company in marketing its products has used personal selling a promotion method, which involves the use of sale force in selling the products upon meeting with customers face-to-face. The sales people usually carry out the promotion process by involving their attitude, appearance and specialist product. Personal selling has been effective in the Hyundai since customers are persuaded to purchase the product. Publicity and public relations are significant in promoting the products; marketing is usually achieved when there is effective use of publicity procedure put in place. Place The Hyundai distributes its products within the country and outside, retail shops in various regions and countries. The product covers a wide range of market while marketing its products and services. Channels of distribution vary from one product to another the Hyundai sell its products directly to their customers, and no intermediaries’ customers can get the product using its retail outlets. The company has managed to minimize the cost used in distribution of its products this is made possible by using different retail shops, situated in different parts of the world. Prices Price of commodities is significant and thus needs attention and keenness in deciding the prices of goods and services. High prices of commodities will make the commodity not to sell in the market, consumers will shy away from purchasing the product, and if prices are too low cost of production will exceed the input thus the company will run at a loss. The company should set prices, which are convenient to both customers, and the company. Pricing of Hyundai’s upcoming product Hyundai Par car will be achieved by involving the company’s competitor Maruti to assist in pricing and its strategies. The analysts of the product had predicted pricing on the premium as many years following the launch of the product (Harmon 221). Summary Hyundai Company has maintained its position as the leading motor automaker company in the world. The company has maintained this position because of the adoption of diverse production by the company; the company produces diverse goods thus attracting a large number of customers. Success of the company is also because of the ability to produce unique products; its products are unique from those of its competitors. Competition from other motor companies has resulted to adoption of various means and ways by the company to curb the situation. Hyundai with an intention of prospering in the market, has adopted strategies to curb the issue, for example, the company have produce unique products that cannot imitated by the competitors. This has seen the company succeed in the world market. Works Cited: Biggadike, Richard. Entry Strategy and Performance. Boston, MA: Harvard University Press, 2009. Print. Chung, Myeong-Kee, “Internationalization Strategies of Korean Motor Vehicle Industries,” Actes. Harmon, Simon, Rational decision making in business organisations, 'American Economic Review.' Hennart, Johnson. Greenfield vs Acquisition: The Strategy of Korean Investors in the US, Management Science, 40(1): 2007. P.1717-1920. Read More