1. Hyundai
- A case study on its marketing
strategies in India
2. Background
1947
Only two players Ambassador (Hindustan Motors),
Fiat ( Premier Motors)
GOI decision to keep car industry tightly protected.
Poor technological improvement because of restriction
on foreign collaboration
1980
The need of an affordable small car was felt
GOI founded joint venture with Suzuki (26% equity
stake) and Maruti Udyog ltd (74% equity stake)
Maruti 800 launched in 1983
1993
Entry of domestic and foreign manufactures allowed
3. The Indian Car Industry
1947 1983 Late 1990’s
Ambassador Maruti 800 Ford Motors
(Hindustan < 85% market GM
Motors) share Toyota Motors
Fiat Daewoo Motors
(Premier Motors) Honda Motors
High price, low MUL’s market
quality share fell to 53%
4. Hyundai
South Korean company
Entered India through its subsidiary HMIL
Set up their manufacturing plant in Chennai
on May 26, 1996
Decided to enter India through new
product, Santro, a B segment car
5. Hyundai’s diversification to
India
Strengths Weakness Opportunities Threats
Proper Korean High demand MUL had a
market cars were of small cars dominating
Research ranked with only MUL market
Introduction below as a player in share
of new small Indian cars small car Making
car by industry people
Establishing customers believe in
own plant the new
brand
6. Santro
HMIL’s first car
Priced at Rs 2,89,000 against Maruti Zen at
3,45,000
75000 vehicles sold in a period of one year
( Apr,1999- Mar, 2000)
Made HMIL second largest company after
MUL
7. Marketing Strategies for Santro
Positioning and Targeting
Targeted the B segment
Small car with many additional features and low
prices
Marketing Mix
Pricing based on consumer perceptions
3 versions of product with additional features
Elaborated process to select dealers and place of
sale
Promotion done by Media Advertisements by
celebrities like SRK
8.
9. Repositioning Santro-2002
Required due to launch of Maruti Alto in
2000
Targeting and Positioning
Targeted the age group 25 to 30
Repositioned as sunshine car
Marketing Mix
Fresh commercials with Preity Zinta and SRK
New Variant- Santro Xing
Decided to tap the rural market – conducted
road shows
Signed agreement with PNB for financing its cars
10. Launch Of Accent
Strength Weakness Opportunity Threat
Priced below New entry in Leading the Tough
Mitsubishi C segment Market of C competition
Lancer with segment from Maruti
same quality cars Esteem and
and Ford Ikon
technology
11. Factors for success of Hyundai
Differentiation in Santro as compared to
other B class cars available in India
Lower cost
Proper market survey
Tapping the right market and the need
Closer to the customer
12. Getz
No, Getz will not affect the sale of santro
because it has a different target market
and moreover there is a difference of more
than 1.5 lacs in the prices
Hyundai’s strategy: Produce one car each
year is to maintain their cost leadership
strategy in each segment and to put their
car in each segment to compete with the
other brands
13. Present Scenario
Products- Santro, Getz Prime, Accent,
Verna,i-10, i-20, Tucson, Sonata
Hyundai in news
Hyundai Motor Company, which holds around 50 percent market share in
Korea, announced it has sold a total of 250.995 new vehicles at home
and abroad. The number represents a 23 percent increase from the
same month a year ago.