1.

0 INTRODUCTION
In today’s competitive era the word ‘Strategy’ is very crucial for all business organizations.
Presently organizations started realizing that customer centric and aggressive marketing
strategies plays vital role to become successful leader. Though globalization has opened the
doors of opportunities for all, the market is still crowded with some unknown risks and lot of
competition. Because of this competition, a marketing strategy must aim at being unique,
differential-creating and advantage-creating.

To obtain unique and differential advantage, an organization has to be creative in its marketing
strategy. Today due to innovative marketing strategies Hyundai has become the leading & largest
seller of automobiles in India. Company has adopted various Brand positioning, Advertising,
Distribution strategies to capture the market. Hyundai few unique promotional strategies include
Teacher Plus Scheme, 2599 scheme, Change your life campaign. The objective of this paper is to
focus on various marketing strategies of Hyundai India Ltd.

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent
of the country's Gross Domestic Product (GDP). The Two Wheelers segment with 81 per cent
market share is the leader of the Indian Automobile market owing to a growing middle class and
a young population. Moreover, the growing interest of the companies in exploring the rural
markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has
13 per cent market share.

India is also a prominent auto exporter and has strong export growth expectations for the near
future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV, Commercial
Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent, 16.97 per cent, and
0.97 per cent respectively in April-March 2016 over April-March 2015.* In addition, several
initiatives by the Government of India and the major automobile players in the Indian market are
expected to make India a leader in the 2W and Four Wheeler (4W) market in the world by 2020.

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Market Size

The sales of PVs, CVs and 2Ws grew by 9.17 per cent, 3.03 per cent and 8.29 per cent
respectively, during the period April-January 2017.

Investments

In order to keep up with the growing demand, several auto makers have started investing heavily
in various segments of the industry during the last few months. The industry has attracted
Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April 2000 to
September 2016, according to data released by Department of Industrial Policy and Promotion
(DIPP).

Some of the major investments and developments in the automobile sector in India are as
follows:

 Electric car maker Tesla Inc. is likely to introduce its products in India sometime in the
summer of 2017.
 South Korea’s Kia Motors Corp is close to finalising a site for its first factory in India,
slated to attract US$1 billion (Rs 6,700 crore) of investment. It is deciding between
Andhra Pradesh and Maharashtra. The target for operationalising the factory is the end of
2018 or early 2019.
 Several automobile manufacturers, from global majors such as Audi to Indian companies
such as Hyundai and Mahindra & Mahindra, are exploring the possibilities of introducing
driverless self-driven cars for India.
 BMW plans to manufacture a local version of below-500 CC motorcycle, the G310R, in
TVS Motor’s Hosur plant in Tamil Nadu, for Indian markets.
 Honda Motorcycle and Scooter India (HMSI) has inaugurated its 900th Honda
Authorised Exclusive Dealership in India, thereby taking its total dealership network to
4,800 across the country and further plans to increase its network to 5,300 by end of
2016-17.

 Hero MotoCorp Ltd seeks to enhance its participation in the Indian electric vehicle (EV)
space by pursuing its internal EV Programme in addition to investing Rs 205

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crore (US$ 30.75 million) to acquire around 26-30 per cent stake in Bengaluru-based technology
start-up Ather Energy Pvt Ltd.

 JustRide, a self-drive car rental firm, has raised US$ 3 million in a bridge round of
funding led by a group of global investors and a trio of Y Combinator partners, which
will be utilised to amplify JustRide’s car sharing platform JustConnect and Yabber, an
internet of things (IoT) device for cars that is based on the company’s smart vehicle
technology (SVT).
 Ford Motor Co. plans to invest Rs 1,300 crore (US$ 195 million) to build a global
technology and business centre in Chennai, which will be designed as a hub for product
development, mobility solutions and business services for India and other markets.
 Cummins has plans to make India an export hub for the world, by investing in top
components and technologies in India.
 Motor Corporation, the Japan-based automobile manufacturer, plans to invest Rs 2,600
crore (US$ 390 million) for setting up its second assembly plant in India and an engine
and transmission unit in Mehsana, Gujarat.
 Mr Masayoshi Son, Chief Executive Officer, SoftBank Group, has stated that Ola Cabs
may introduce a fleet of one million electric cars in partnership with an electric vehicle
maker and the Government of India, which could help reduce pollution and thereby
transform the electric mobility sector in the country.
 China’s biggest automobile manufacturer, SAIC Motor, plans to invest US$ 1 billion in
India by 2018, and is exploring possibilities to set up manufacturing unit in one of three
states – Maharashtra, Andhra Pradesh and Tamil Nadu.
 Motorcycle India Pvt Ltd has started exports of made-in-India flagship bike Gixxer to its
home country of Japan, which will be in addition to current exports to countries in Latin
America and surrounding countries.

 General Motors plans to invest US$ 1 billion in India by 2020, mainly to increase the
capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by
2025.

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  FIAT Chrysler Automobiles has recently invested US$280 million in its Ranjangaon
plant to locally manufacture Jeep Compass, its new compact SUV which will be launched
in India in August 2017.

Government Initiatives

The Government of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route.

Some of the major initiatives taken by the Government of India are:

 The Government of India plans to introduce a new Green Urban Transport Scheme with a
central assistance of about Rs 25,000 crore (US$ 3.75 billion), aimed at boosting the
growth of urban transport along low carbon path for substantial reduction in pollution,
and providing a framework for funding urban mobility projects at National, State and
City level with minimum recourse to budgetary support by encouraging innovative
financing of projects.
 Government of India aims to make automobiles manufacturing the main driver of ‘Make
in India’ initiative, as it expects passenger vehicles market to triple to 9.4 million units by
2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
 The Government plans to promote eco-friendly cars in the country i.e. CNG based
vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5 per cent
ethanol blending in petrol.
 The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020
to encourage the progressive induction of reliable, affordable and efficient electric and
hybrid vehicles in the country.

Road Ahead

India’s automotive industry is one of the most competitive in the world. It does not cover 100 per
cent of technology or components required to make a car but it is giving a good 97 per cent, as
highlighted by Mr VicentCobee, Corporate Vice-President, Nissan Motor’s Datsun.

4
Leading auto maker Hyundai expects Indian passenger car market to reach four million units by
2020, up from 1.97 million units in 2014-15.

Mr Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a key
market for the company, not only in terms of volumes but also as a hub of small products for
exports to 92 countries.

Mr Joachim Drees, Global CEO, MAN Trucks & Bus AG, has stated that India has the potential
to be among the top five markets, outside of Europe, by 2020 for the company, which is reflected
in the appointment of its most experienced managers to India for increasing volumes and exports
out of India.

The Indian automotive aftermarket is estimated to grow at around 10-15 per cent to reach US$
16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to
US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute over
12 per cent to India’s Gross Domestic Product.

According to Mr Guillaume Sicard, president, Nissan India Operations, the income tax rate cut
from 10 per cent to 5 per cent for individual tax payers earning under Rs 5 lakh (US$ 7,472) per
annum will create a positive sentiment among likely first time buyers for entry level and small
cars.

The automobile manufacturing industry in India dates back to 1948. At that time there were just
three companies manufacturing passenger cars i.e. Premier Automobiles in Mumbai, Hindustan
Motors (HM) in Kolkata & Standard Motors Products India in Chennai. In early years the Indian
automobile Industry faced several challenges and road blocks to growth because in those days
automobile manufacturing was subject to restrictive tariff structure, strict licensing and limited
avenues for expansion.

5
Due to lack of competition initially the prices of cars were extremely high. And the customers
had to wait for a long period of time for car. Before Independence India was considered as a
market for imported vehicles. In the 1950s the arrival of Tata Motors, Mahindra & Mahindra.

& Bajaj Auto led to steadily increasing vehicle production in India. In 1953 the government of
India and the private sector launched efforts to create an automotive component manufacturing
industry to supply to the automobile industry.

By the end of 1970s, significant changes in the automobile industry were witnessed. After 1970
the automobile industry started to grow, but that growth was mainly driven by scooters, tractors
and commercial vehicles.

In 1983, the government of India made a tie-up with Motor Corporation of Japan to manufacture
low-cost cars in India. The Hyundai800 which is still known rolled out the factory of
MarutiUdyog Limited in December 1983 and changed not just India‘s automobile industry but
also the way people commuted and travelled. In 1990s through liberalization initiatives India
opened its gates for all the countries and in 1993, the government followed up its liberalization
measures with noteworthy reductions in the import duty on automobile components.

Today the Indian automobile market has a mix of large domestic automobile players like Tata
Motors, Mahindra & Mahindra, Bajaj, Hero Motocorp, Ashok Leyland and major international
giants including , Honda, BMW, Audi, DaimlerChrysler, Volvo, Hyundai, Toyota, Nissan,
General Motors and Ford etc.

In today’s competitive era the word‘Strategy’ is very crucial for all business organizations.
Presently organizations started realizing that customer centric and aggressive marketing
strategies plays vital role to become successful leader. Though globalization has opened the
doors of opportunities for all, the market is still crowded with some unknown risks and lot of
competition. Because of this competition, a marketing strategy must aim at being unique,

Differential creating and advantage-creating. To obtain unique and differential advantage, an

organization has to be creative in its marketing strategy. Today due to innovative marketing
strategies Hyundai has become the leading & largest seller of automobiles in India. Company has
adopted various Brand positioning, Advertising, Distribution strategies to capture the market.

6
Hyundai few unique promotional strategies include Teacher Plus Scheme, 2599 scheme, Change
your life campaign. The objective of this paper is to focus on various marketing strategies of
Hyundai India Ltd.

7
 PROFILE OF HYUNDAI INDIA LIMITED

Hyundai Motor India Ltd

Type – Subsidiary

Industry - Automotive

Founded - 6 May 1996; 22 years ago

Headquarters - Chennai, Tamil Nadu, India

Key people - Mr. Seon Seob Kim (CEO)

Products - Automobiles

Parent - Hyundai Motor Company

8
Hyundai has been the leader of the car market for over two decades. Hyundai revolutionized the
industry and put a country on wheels. Since inception Hyundai is credited with having catalyzed
and led the modernization of the Indian passenger car industry. Over its 26 years of journey.
Hyundai transformed itself from a successful Public Sector Company (PSU) to a vivacious and
listed Multi National Company (MNC), sustained its leadership position and remained profitable
despite tough competition. In October 2, 1982 the company signed the license and joined venture
agreement with In the year 1998 the company started their productions and launchedIn the year
the company forayed into the foreign market by exporting . In the year 20015 company launched
world strategic car model popularly known as creta which hit the Indian car market. The core
values of company include: Openness and learning Innovation and Creativity Fast, Flexible and
First mover Customer Obsession Networking and Partnership Currently HYUNDAI offers many
brands which include. HYUNDAI has a market share of 12.3% of the Indian passenger car
market as of March 2017. Today HYUNDAI has built a strong sales network of 2600 outlets
spread over 240 towns and cities.

Improved product mix drives top line beat

MSIL’s adjusted revenue, at INR17bn (up 8.5% YoY), was 2% above our INR16bn estimate and
reflects benefits of an improving product mix, which drove 4% YoY increase in average vehicle
realisations to ~INR438K. Adjusted EBITDA margin at 14.0% (flat QoQ) was below our 14.8%
estimate as impact of higher input costs and discounts was only partially offset by better mix and
cost reduction efforts. Adjusted PAT at INR7bn (up 14% YoY) was 5% below our estimate due
to higher tax rate.

Market share gains to sustain; better mix to lower discounts

The company remains well placed to gain market share given structured new launch pipeline,
expanding distribution and shift in consumer preference to petrol variants (~70% volumes for
MSIL). An improved product mix (higher share of I10 AND I 20-) is likely to support margin by
lowering average discounts. In our view, weakening competitive intensity and macro recovery
should help lower discounts for older models as well, which will drive margin improvement.

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Outlook and valuations: Dominance to sustain; maintain ‘BUY’

Long waiting periods for key products, a structured launch programme, superior franchise and
solid financials (10% FCF to sales, RoE of ~23% in FY19E) are likely to enable MSIL sustain
premium valuations. We maintain ‘BUY/SO’ and value the stock at 27x FY19E core EPS and
assign cash/share of INR1,348 to arrive at target price of INR8,705. At CMP, the stock trades at
FY19E PER of 22x.

Demand environment

 MSIL continued to gain market share with volume growth of 14.3% YoY versus
industry’s 4.4%.
 Consumer preference continued to shift in favour of petrol cars. Share of petrol models
was 71% and 62% for MSIL and industry, respectively.

 GST impact:
From July 1, MSIL passed on lower rates post GST regime.

During Q1FY18, margins were impacted on account of dealer compensation (~50bps) and
higher sales promotions to clear inventory prior to GST (~30bps). These are netted off from
revenue.

Retail volumes in June were high (pre-buying ahead of GST). Though volumes in initial part of
July were slow, things are gradually picking up.

GST impact varies from state to state and MSIL believes it is too early to assess the impact on
exchange buyers and used car sales.

 Fleet sales: Moderation in fleet sales during Q1FY18 (5% volumes).

 Customer profile: Share of first-time buyers jumped to 50% during Q1FY18 (from 44%
in Q4FY17).
 Strong response for new models continues. CRETA , I20 have waiting periods of 4and 6
weeks, respectively.

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Exports

 Maintained volume outlook of 85K units for FY18.

 Focus markets include Indonesia, South East Asia, Chile and Bolivia.

Margin

 Margin was impacted by higher commodity costs and higher sales promotions, offset by a
better product mix and ongoing cost reduction efforts.
 Commodity costs inched up marginally QoQ; but MSIL expects commodity prices to
remain largely steady going ahead.
 Royalty payout for the quarter was INR8,860mn (5% of revenue).
 Average discount for Q1FY18 was INR16,600 (3.7% ASP). In our view, discounts on
older models continue to remain high at 5.2% ASP (up 30bps YoY, 70bps QoQ).
 Import content: Share of direct and indirect imports at around 16-17%.
 Higher staff costs during the quarter include seasonal impact of wage revision.

Capacity

 FY18 capacity includes 1.5mn units (from Manesar and Gurgaon) and incremental 15K
units from Gujarat plant.
 In Q1FY18, 24,00 units were produced in Gujarat plant. Capacity is ramping up and
should be able to operate at full capacity towards FY18 end.
 Over the next 2-3 years, vendors will start moving in Gujarat and almost all models will
be made there. MSIL will also get benefit of higher localisation and economies of scale.
Others

 Targets FY18 capex of INR5bn (new products, R&D, maintenance capex ). Q1FY18
capex was ~INR9bn.
 Other operating income was higher led by write-back of excess provision of ~INR850mn.

11
  Tax rate for the quarter was higher due to creation of deferred tax liability given change
in inflation index. Expects sustainable tax rate of 27-28% going forward with lapse of
investment allowance and lower R&D benefits.
 High other income: Largely to do with interest rate reduction.

Company Description

HYUNDAI manufacturer with ~12.3% market share. The company is a key player in the mini
and compact cars segment with dominant market share and has enjoyed success in the executive
segment as well post launch of CRETA .Hyundai offers the widest product range in passenger
cars with special focus on compact car segment.

Investment Theme

Hyundai remains well placed to sustain market share gains given its robust new model launch
pipeline, relatively weak competitive intensity, expanding distribution and consumer shift to
petrol models (stronghold for Hyundai). Improved product mix (higher share of CRETA) should
help boost realizations and margins by lowering average discounts. We believe the long waiting
period for key models, superior franchise and robust free cash flow generations will help sustain
premium valuations.

Key Risks

Capacity constraints: Hyundai’s capacity addition program is fairly structured with ~250K
blocks. Currently, Hyundai is in a sweet spot due to waiting period for many of its existing
models and structured product cycle. This makes us believe that MSIL will face capacity
constraints in case of sharp demand recovery. Larger engine offerings: Hyundai’ has yet to
demonstrate its success with higher CC engines (upwards of 1.6 litres). With expansion of
executive segment, we believe it become imperative for Hyundai’ to address the product
portfolio gap.

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 2.0 REVIEW OF LITERATURE

Sumit Jain & Dr.R.K.Garg, in their research paper described about current scenario of
automobile industry and challenges facing by Industry. They pointed that, the companies have to
shorten product lifecycles in order to react to the expectations of individualize and fast changing
consumer demands with innovative products, and the integration of strategic partners with more
responsibility into the value chain should be intensified.

Initially, brand equity was conceptualized as consisting of consumers’ brand associations that
include brand awareness, knowledge and image (Keller, 1991, 1993). As stated earlier, brand
equity is regarded as consisting of two components – brand strength and brand value (Srivastava
and Shocker, 1991). Our interest is in brand strength, which constitutes the brand associations
held by the brand’s customers. Some researchers view brand equity as perceived brand quality of
both the brand’s tangible and intangible components (Kamakura and Russell, 1991).

Exim bank‘s occasional paper highlighted that the global financial meltdown of the year 2008
has created a precarious condition across various sectors, which has forced countries and
industries to take a fresh look at their future strategies. The paper also pointed out that the Indian
automotive industry holds significant scope for expansion, both in the domestic market, where
the vehicle penetration level is on the lower side as compared to world average and in the
international market, where India could position itself as a manufacturing hub.

According to the American Customer Satisfaction Index (ACSI) is a new type of market-based
performance measure for firms, industries, economic sectors, and national economies. The
authors find customer satisfaction to be greater for goods than for services and, in turn, greater
for services than for government agencies, as well as find cause for concern in the observation
that customer satisfaction in the United States is declining, primarily because of decreasing
satisfaction with services. The authors estimate the model for the seven major economic sectors
for which data are collected. Highlights of the findings include that (1) customization is more
important than reliability in determining customer satisfaction, (2) customer expectations play a
greater role in sectors in which variance in production and consumption is relatively low, and (3)
customer satisfaction is more quality-driven than value- or price-driven. The authors conclude
13
with a discussion of the implications of ACSI for public policymakers, managers, consumers,
and marketing in general.

Rajkumar Gautam & Sahil Raj, in their research paper depicted the scenario of automobile sector
of the world and India. In their paper they have investigated that the globalilzation process has
affected the sector in all the areas of manufacturing, sales, personal research & development and
financing. They also concluded that, in order to meet the challenges posed by globalization the
Indian automobile manufacturers need to ensure the technological advancement, appropriate
marketing strategies and adequate customer care feedback system in their organizations.

P Krishnaveni in her article focuses on the current details and some future plans of Hyundai. The
article also highlighted the various innovation of company like introduction of Electronic power
Steering (EPS), introduction of superior quality of 16*4 hypertech engines.

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 3.0 METHODOLOGY

Population

The population comprises of all passenger car manufacturer of Delhi –National capital region, all
chassis suspension system suppliers and their sub supplier. In Delhi-National capital region, we
have two car manufacturer named Hyundai’ and nissan .Hyundai has two plant in Delhi-National
capital region located at Gurgaon and Manesar. Car also has two plant in Delhi –National capital
region located at Noida and Tapukara . In Delhi-National capital region there are total four
chassis suspension system manufacturer named Gabrial, BWI automotive ,Technico,
Munjalshowa and their sub supplier called tier 2 supplier are in total termed as population.

Sample Size

Hyundai car manufacturer in India having 12.3% of market share where as Honda car having
market share only 3.6% ( source report of Society of Indian automobile manufacturer). Therefore
we include only Hyundai in our sample . All four chaises suspension systems supplier of
Hyundai taken as sample and 70% of their sub supplier taken into consideration as sample The
sample set comprises inputs from employees working in supply chain management at the level of
executive, manager and Head of supply chain department, similarly executive manger & head of
automation department of original equipment manufacturer and chassis suspension system
supplier. Representative and plant heads of sub supplier and also included in some consultants
and academic expert of subject Total sample size will be more 50 respondents.

Sample selection

Our sample size has respondents from original equipment manufacturer and then their supplier as
chassis suspension system manufacturer called tier 1 and their sub supplier called tier 2. Since
every sample has non zero probability of selection . Respondent categories based on their
designation . So sampling techniques will be used as probability stratified sampling. For sub
supplier we had taken 70% of total population and selection will be done randomly. Therefore
sampling technique for sub supplier will be probability random sampling.

15
Sources and Methods of Data Collections

The primary data will be collected from Hyundai and its chassis suspension supplier’s employee
through questionnaire survey. This survey will take place on line (electronics), delivery and
collection of printed .somewhere specially for top management face to face interview will take
place . It include both close ended and open ended question as well as by interviewing and cover
the employees of supply chain and automation department of passenger car manufacturer and
their chassis suspension system supplier plants. For consultant and academic expert and Plant
heads , head of department unstructured and open ended questionnaire will be part of data
collection. Secondary data will be collected from various books on supply chain management
automation, research article in journals, periodicals, topic on automation in magazines, report of
committees, published research reports of automobile industry and supply chain automation and
websites, etc.

Validity and Reliability

Statistics has three methods to check reliability or repeatability of a survey named Test Retest,
equivalent form and internal consistency. In this research first piloted questionnaire of small
group of 30 respondents will be analyzed and we shall follow concept of test –Retest for validity
and reliability.

Role of Research in Decision Making

Decision-making is the process of selecting the best alternative from the availableSet of
alternatives. Management is chiefly concerned with decision-making and its implementation.
These decisions should be based on appropriate studies, evaluations and observations. This
research provides us with knowledge and skills need to solve the problems facing in automation
of supply chain management and to meet the challenges of a fast-paced Decision Making
environment. It will enable top management to take appropriate decision in short span of time
with data available at their desk thereby save time and energy.

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OBJECTIVE OF THE STUDY

 To analyze the market conditions for Hyundai.

 To discern different promotional tools used by Hyundai.

 To know the customer satisfaction with usage of their cars (Hyundai).

 To detect various attributes of Hyundai cars that influences the customers to buy.

SCOPE OF THE STUDY

The main scope of the study is that, it helps the organization to understand the consumer
psychology on choosing the product or service so that easily the product can be positioned.

The study helps to know about the consumer’s perception towards Hyundai Cars among other
competing brands. It also facilitates to meet out their expectation in future in turn that will
increases the volume of sales.

The efficiency of dealer service provided to the consumers, so that it can create the root for
further improvements.

LIMITATIONS OF THE STUDY

 The study has been done in Thane only that the attitudes of the people dwelling on other
cities are ignored.
 The study has been confined to hundred samples only.
 The study has been made within the short period of time.

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 4.0 RESULT

PERFORMANCE OF HYUNDAI

A. The Sales trend of Hyundai from year 98 to 16 is:

Fig 1, Source: CMIE Prowess Database (97-2007) (Rs. in Crore)

From the above pie chart it is observed that in the March 2016 Hyundai‘s sales was 21221 Crore
which is 21.55 % more than March 2007

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 B. The Industrial Sales trend of Hyundai from year 97 to 2016 is:

Fig 2, Source: CMIE Prowess Database (97-2007) (Rs. in Crore)

As observed in the above chart it is revealed that the Industrial sales grew for the period Mar 04
to Mar 08. The Industrial sales of Hyundai in the year March 2016 was 20070.9 Crore which is
23.26 % greater than previous year.

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 5.0 DISCUSSION

MARKETING STRATEGIES OF HYUNDAI INDIA LIMITED

In earlier days when the market was dominated by only few brands like Ambassador & Premier
Padmini, Hyundai India Limited entered the Indian market with different strategy. The strategy
of the company was to offer a compact, modern and fuel efficient car. Hyundai released its first
HyundAI car IN 1998 to fulfill the dreams of Indian customers and became the market leader.
Since 1998 till date Hyundai gradually offered several choices to the consumer.

Due to aggressive competitors today Hyundai believes in Innovative Marketing Strategies. With
the changing needs, wants & requirements of customers and markets, Hyundai altering their
Brand Positioning, Advertising and Distribution strategy.

BRAND POSITIONING STRATEGYOF HYUNDAI INDIA LIMITED

Brand Positioning is the most vital concept in a brand‘s strategy. Brand Positioning is also linked
with managing a brand‘s meaning. Today several brand of cars are positioning themselves on the
features like Price, Comfort dimensions, Safety, Mileage etc. Currently Hyundai followed a very
effective multi-segmentation strategy to grab the different segments of the market with different
versions of its brands. About brand positioning Mayank Pareek says that, Hyundai believe in
research and before launching a product the Hyundai team does an extensive research on the
needs of the customer. Hyundai try to understand the customer‘s demography and psychology to
position a brand. Also the company follows the suggestions made by existing customers.

 Hyundai SANTRO
Considering the middle class & small families the Hyundai SANTRO was launched. The car was
also targeted at the urban professionals. It was projected as a car with minimum maintenance
needs and with greater fuel efficiency. Later the company added some features like MPFI (Multi
Point Fuel Injection) technology & few changes in front grill, head light, and rear light.

20
  I10
Hyundai launched i10 with ‘. In the TVC of, a young married couple goes to different
destinations in their by this TVC Hyundai positioned Alto as a car for young people. Also the car
has highlighted as fuel efficient car.

 Wagon R:
Hyundai launched the Grand I 10 brand in 2013 This is one of the successful brand from
Hyundai portfolio in the premium segment of compact cars. Grand I 10 was initially positioned
on the basis of the functionality platform. Earlier this car was promoted as a family car with the
baseline, ‗Feel at Home‘. Then as per the changing pattern of market , competition and
customers Hyundai altered the positioning from Feel at Home to ‗Inspired Engineering‘ to ―As
Interesting as you are‖ and finally to ―For a Smarter Race.

 EON:
While speaking about EON Mr. says that the A-Star was the only car in the Indian market that
was targeted at the urban youth. ―It is about the new generation of Indians who are confident‖.
Also in the second campaign,

which was done around, the company‘s focus was to inform the consumers about the EON‘s K-
Series engine. The current campaign of EON focuses on self belief and confidence. Considering
the fact that self belief and confidence are the attributes of youths, Hyundai has positioned EON
very well. In the current ad campaign a focus has given to a young person who goes for an
Interview & with his confidence and self belief he impresses all.

PROMOTIONAL STRATEGY OF HYUNDAI INDIA LIMITED

Every company is it a big or small needs an innovative promotional strategy because

promotional campaigns tend to have a huge effect on the reception of the product. Hyundai India
Ltd has a formidable line-up of vehicles in its stable and has been quite aggressive about
promoting each of its automobile brands. With an intention to face with cutthroat competition
and due to declining market shares, in 2000 Hyundai cut the prices of few models like SANTRO.
Because Hyundai knew very well that the Indian consumer is very sensitive about price & this
price cut will definitely beneficial for company. In Jan 2002 to attract the customers, Hyundai

21
decided that some of its corporate assets in Delhi including Hyundai‘s manufacturing plant and
children‘s park should be promoted. With an intention to promote road safety and efficient
driving the company held ‗carnivals ‘periodically at IDTR.

Rural India is a fast emerging as a focus area in the country‘s economy. Hyundai knew that there
is a great potential in rural markets & in rural markets, the endorsements of opinion makers takes
precedence over an covers the village Serpent, doctors and teachers in government instititutions,
rural bank officers where in an extra discount is given to make a sell. As a part of customer
engaging strategy and to attract the potential customers Hyundai organized various meals
wherein local flavor is added by organizing traditional social activities like Garmin Mahotsava
are conducted round the year. As a part of promotional approach Hyundai promoted SANTRO &
other brands through sponsoring various live programmers (Dancing shows) like Dance India
Dance.

ADVERTISING STRATEGY OF HYUNDAI INDIA LIMITED

Advertising is one aspect of brand building. Whenever Hyundai launched any brand, it supported
that brand with an ad campaign. Hyundai advertising campaigns included TVCs, Radio and Print
ads, Point of Sale, Mobile promotions, online marketing, Outdoor promotions. Hyundai ‘s
advertising strategy focused both on building up its corporate image and promoting its cars.
Hyundai‘s campaigns emphasized different aspects of its cars, including fuel efficiency, looks,
space, etc.

In the late 2000s, Hyundai‘s advertising campaigns were handled by Lowe India (later known as
Lowe Lint as & Partners, India) and Re diffusion DY&R. While advertising related to SANTRO
were handled by Lowe India and the ad campaign of handled by Re diffusion. With an intention
to promote the all brands effectively, in 2000 Hyundai decided to appoint Capital Advertising. In
2003, Hyundai came up with an innovative advertising that became popular for its simplicity and
clear message. In this ad one child plays with his toy car.

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DISTRIBUTION STRATEGY OF HYUNDAI INDIA LIMITED

Distribution is an important marketing mix. In earlier days the consumers used to book for a car
and wait for more than a year to actually buy it. Also the concept of Show rooms was non-
existent. Even worse thing was the state of the after sales service. With an objective to change
this scenario

And to offer better service to customers, Hyundai took initiative. To gain competitive advantage,
Hyundai developed a unique distribution network. Presently the company has a sales network of
502 centers in 255 towns and cities, and provides service support to customers at 1540
workshops in over 335 towns and cities.

The basic objective behind establishing the vast distribution network was to reach the customers
even in remote areas and deliver the products of the company. The company has formed the
Dealer territories and the concept of competition amongst these dealers has been brought about.
Periodically corporate image campaigns in all dealership are carried out. In 2003, to increase the
competition the company implemented a strategy for its dealers to increase their profitability
levels. Special awards were sometimes given by company for sales of special categories.
Hyundai had given an opportunity to dealers to make more profits from various avenues like
used car finance and insurance services.

In 2001, Hyundai started an initiative known as ‗Non Stop Hyundai Express Highway‘. As a
part of this initiative Hyundai developed 255 customer service outlets along with 21 highway
routes by 2001-02. Also with an intention to provide fast service in less time Hyundai had
offered Express Service Facility. In the year 2008, Hyundai had near about 500 rural dealer sales
executives, among the total 5,000 dealer sales executives.

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 6.0 CONCLUSION

Automobile market today is very dynamic & competitive with a range of players and products.
There are many reasons for the impressive growth of the Indian passenger car Industry. Some of
these are easy availability of vehicle finance, attractive rate of interest and convenient
installments. In today‘s cutthroat competition it is very difficult to survive.

Stiff competition has forced manufacturers to be innovative and responsive to customer demands
and needs. Hyundai India Limited is a leading company in Indian Automobile sector which
occupies prominent place due to its innovative strategic marketing, promotional, Brand
positioning, advertising strategies. In today‘s scenario the success of company lies in structuring
and restructuring the marketing strategies and continuous innovation of product and services.

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 7.0 BIBLIOGRAPHY

www.hyundai.co.in

www.jdpower.co.jp

www.asq.org

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