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YUNDAI S MARKETINGTRATEGIES IN INDIA

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-HE INDIAN CAR INDUSTRY&EFORE AFTER Since independence two dominant players in the car market-

Ambassador(HM) & Fiat(PA)

GOI in the 1980s formed a joint venture with Suzuki to formMaruti Udyog Limited(MUL)

MUL launched Maruti 800 in 1983,priced at Rs.40,000

Economic liberalization led foreign and domesticmanufacturers to enter the Indian automobile market.

Ford Motors(US),GM(US),Toyota Motors(Japan),Daewoo

Motors(Korea),Honda Motors(Japan)

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YUNDAI S ENTRY IN INDIA

Thorough study of the Indian automobile market

Conducted market research

Selection of vendors Set up of wholly owned subsidiary

Introduction of a complete new car for Indian customers

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Ps of Marketing

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HE PRICE CUT Starting September 2003,MUL reduced the price of Alto

by Rs.58,000 in two price cuts

This resulted in Alto replacing Santro as the largestselling car in the B segment

In mid 2004,HMIL with its 4 models

Santro,Accent,Sonata and Elantra had 19% marketshare and was at the anvil to launch Getz in September2004

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RODUCT Santro: Technologically superior than competitors

Unique design with more head room

Drivers seat positioned higher

Child safety rear locks

Pair of ultra-high strength steel bars built in the doors

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PRICE Santro

Targeted the B segment

Pricing based on customer value perceptions

Prices were not too high (Rs. 2.89 L-Rs. 3.49 L)

Accent

Targeted the C segment

Prices lesser than the competitors

Base model priced at Rs. 5.35 L

Sonata

Targeted premium segment

Priced at Rs. 16 L

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( )LACE DISTRIBUTION Selected the dealers who could react fast to changing market

needs

Based on educational background, financial net worth and

market knowledge

Precautionary measures to avoid future conflicts

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PROMOTIONSantro

Advertising contract to Saatchi & Saatchi

Indian movie superstar SRK

Phase 1 - April to June 1998 Phase 2 - July to Sep. 1998

Early 1999 - Customer satisfaction campaign

Accent Mostly print media

Highlighted improved technology

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EST ANALYSIS

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OLITICAL SCENARIO Till 1980s - Tightly controlled car industry after

independence.

Only 2 models on offer. Ambassador and Fiat.

Restricted foreign entry.

Pricing regulations very tight.

Stricter trade regulations.

1991- Liberalization of Indian Economy.

Car Industry opened up.

Entry of foreign players.

Change in GOI policies.

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CONOMICAL SCENARIO Post 1991 Liberalisation. Move towards a market-based

system.

A revival of economic reforms and better economic policy in2000s .

More entry of FDI and foreign capitals.

Change in industry structure in major sectors.

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OCIAL SCENARIO Income level increases.

Change in the Job scenario.

More dispensable income in hand.

Change in consumer perception.

Small car released for the Indian Middle Class

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ECHNOLOGICAL SCENARIOPre 1980s - Slow improvement in technology

Inferior quality but high price

Restrictions in foreign collaborations

Less expenditure and focus on R&D

No innovation in models and performancePost Liberalization

Entry of foreign giants in Indian market

More emphasis on technology transfer

More JVs and FDI, new plants set up

More investment and focus on R&D

Intensifying competition in all segments

More emphasis on product and process innovation

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ARKETING OF SANTROq Comfortable &Technologically superior to any other B segment car.

q Santro LP , Santro LE, Santro GS.

q Pricing Based On Customer Value Perceptions

q Positioning - Family Car ( Age group 35 45 years).

q Stringent Dealership selection process

q Advertising Agency Satchi & Satchi.

q Brand Ambassador Shahrukh Khan.

q Customer Satisfaction Campaign.

q

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CCENT LAUNCH IN INDIAq Diversification to reduce risks

q Target Segment C segment.

q Lancer, Esteem , Ford Ikon already established market players

q Accent launched in 1999 & became largest seller in 2002

q Launched CRDi Technology(common rail direct injection).

q Ad campaign The Next Step & Stupid Diesel car.

q Launched SONATA for the premium D segment.

q Tag Line Dream about by everyone, Owned by a select few

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EPOSITIONING SANTROq

Increased Competition Zen , Wagon R , Alto.q Positioning changed from Family Car TO Sunshine Car.

q Focus on young couples i.e.25 30 years as target segment

qBrand Ambassadors Shahrukh Khan & Priety Zinta.

q Rural Marketing initiative with Santro UTSAV across 7 states

q 33% Santro sales from Rural market in 2003

qSigned a contract with PNB for financing Hyundai Cars.

q

q

q

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WOT ANALYSIS

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STRENGTHS

The Quality Advantage

A Buying Experience like no other

Level of satisfaction was high

Informative campaigns

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WEAKNESSES Price risks

Less number of models offered

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OPPORTUNITIES

HMC setup its wholly owned subsidiary

HMIL established its manufacturing unit

Leading growth

Low manufacturing costs and low labor costs

Retail financing

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THREATS

Too many players in the market leading to intense competition

Risk factor

Business Factor

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HALLENGES AHEAD ALTO emerging as the largest selling car

Price cuts of Zen, Wagon R and Alto

Production crunch at HMIL

Relaunch of Esteem in the C segment

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RECOMMENDATONS Price cuts in SANTRO

Launching new variant in the B segment

Launching new variant in the C segment

Increasing Production Capacity

Green Initiatives

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CONCLUSION New Approach to successful product launch

Innovative Marketing Strategy

Constant tracking and changing with changes in marketdynamics

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!hank you!hank you