KIA MOTORS

GROUP NO. 26

Samyak Jain (20021021475)

Gaurav Verma (20021021372)
Anshuman Dhama (20021021327)
Aishwarya Agarwal (20021021012)
 KIA MOTORS

INTRODUCTION
Corporation, commonly known as Kia formerly known as Kyungsung Precision
Industry and Kia Motors Corporation), is a South Korean multinational automotive
manufacturer headquartered in Seoul. It is South Korea's second-largest automobile
manufacturer after parent company Hyundai Motor Company, with sales of over 2.8 million
vehicles in 2019. As of December 2015, the Kia Corporation is minority owned by Hyundai,
which holds a 33.88% stake valued at just over US$6 billion. Kia in turn is a minority owner
of more than twenty Hyundai subsidiaries ranging from 4.9% up to 45.37%, totaling more
than US$8.3 billion.

HISTORY

Kia is South Korea’s oldest carmaker and was founded in 1944 as

Kyungsung Precision Industry – a maker of steel tubing and bicycle
parts. It also made Korea’s first indigenous bicycle – the Samchully in
1951. It began building Honda motorcycles under license in 1957 and
Mazda trucks – also under license in 1962. In 1974 the partnership with
Mazda extended to cars too. In the late1970s and early 80s Kia also
made Fiats and Peugeots under license. Its own- brand cars only took off
closer to 1990 when it made cars in partnership with Ford

VISION AND MISSION

The company strongly believes that success in any business can be realized only through
customer delight and we exercise utmost care to ensure that we provide a very high standard
of customer service with every single interaction with our valued customers. We are equally
dedicated to the task of creating a healthy working environment for our employees who have
been the engine of our success over the years.

Establishing a robust marketing culture that permeates every level of the organization and
within which the distinct needs of customers are identified and met will continue to be our
vision for the short, medium and long term.

MARKETING
The Chartered Institute of Marketing defines marketing as: ‘The management process
responsible for identifying, anticipating and satisfying customer requirements profitably.’ In
simple terms, it is the process where customer needs are identified and serviced through the
products and services that satisfy them.

This starts with a process of planning at the very top of an organisation. Senior managers
determine the long term aims of the organisation. An aim for Kia is to become a major player
in the UK car market. Planning is then
followed by a process of research
through which customer needs are
identified. A business then has to
establish processes that enable it to
satisfy these needs. Kia wants to bring a
fresh, fun and dynamic approach to the
UK car market. Its marketing strategy
supports its objectives with a focus on increasing brand awareness. It aims to emphasise the
great design and quality of Kia’s products, while still offering competitive prices.

The marketing mix

The marketing mix comprises of the 4Ps and is a useful way of summarising the marketing
strategy of an organisation. Every organisation will have a unique marketing mix.
Organisations need to create a unique mix of:

 the right product

 sold at the right price
 in the right place
 using the most suitable promotion .

For example, the marketing mix for Kia is based around:

1. product – good design and quality alongside a high level of

customer service, Kia’s unique selling point is its 7-year warranty
2. price – competitive prices provide an advantage over competitors
3. place – with 166 dealerships there is a large and expanding number of outlets
4. promotion – this includes a new sponsorship in cricket and long-term partnerships in
football and tennis.

PROMOTION
Promotion is about communicating with customers and potential customers. It has a
number of purposes, for example:
  to increase awareness – such as the range of vehicles Kia offers
 to raise brand recognition – this is important in an industry with over 30 major
players in the UK
 to increase demand – thereby helping to meet the objective of growth in the
UK
 to improve brand perception – promotion communicates the fun approach of
the Kia brand
 to highlight the superiority of the product – e.g. the high quality and great
design of Kia cars.

Sports marketing
To reach its promotional objectives, Kia uses conventional techniques alongside
extensive use of sports marketing such as sponsorship. Sponsorship involves a
business paying to be associated with another organisation, event or even television
programme. Sports marketing allows Kia to reach a large audience and create positive
associations. Sports sponsorship enables Kia to be linked with superiority in another
field.

For example, Kia was involved with the FIFA World Cup in Korea and Japan in 2002
through sponsorship. Since then it has become partners of the World Cup until 2022.
This enables Kia to link its activities with well-attended and well publicised football
matches that are enjoyed by large groups of people.

PARTNERSHIPS
Kia has created a variety of partnerships through different forms of sponsorship. The
sponsorship deals helped Kia raise its brand profile and create positive associations
with key sporting events and athletes. Associating the brand with high profile sporting
events demonstrates the fresh, fun and dynamic qualities of the brand. Kia has entered
into a series of long term investments that will allow it to engage with consumers for
the duration of the sponsorship deals. Kia already had a ton of market research data
from their parent company Hyundai before they entered the market.
• In 2005, Hyundai - Kia Motors signed a long-term agreement to continue the
partnership until year 2014 as one of the six top FIFA Partners.
• Kia Motors has been expanding its sports marketing partnerships to raise
awareness and consideration for the Kia brand. They partnered with the New York
Red Bulls and have expanded their presence with the game of soccer.
• Kia Motors Corporation and Total Lubricants, entered into a five-year
international cooperation agreement at a signing ceremony held on March 22, 2011 at
Kia Motors.
CONCLUSION
From the above report, it can be concluded that the motor manufacturing company of
KIA Motors Corporation, since its inception has made progress in various fields to
increase the visibility of their business, they had developed various innovations in
design, style and features to provide high quality services to their customers
worldwide. However, to compete with other competitors in the market, they needed to
create new marketing strategies to attract customers and thus made themselves
famous in the market. They also made sure that they capture the best features in their
car models and thus made sure that they were doing something different to meet
customer satisfaction. Its marketing is considered as one of the most crucial functions
that marketing manager carried out to sustain in the environment under which they
operated their function. However, the report has also measured different
environmental factors that mainly affect or influence the individual and businesses. It
has earned a coveted spot as one of the most trusted and preferred four-wheeler brand
among consumers.

EXTERNAL ENVIRONMENT ANALYSIS

The external environment analysis is needed for the Kia Motors Case Study to make
sure that it actively, and proactively responds to the macro-environment. The macro
environment or the external environment for the Kia Motors Case includes those
factors which are not in control of the business or the company directly. As a result:
• The Kia Motors cannot influence these factors in its favour, and in contrast,
these factors directly affect the operations and workings of the company.
• As a result, Kia Motors must make sure to continually assess and review the
external environment to make sure that it responds to external factors, and take them
into account, during strategic decisions, and strategy devising.
Businesses like Kia Motors make use of strategic model tools continually to make
sure that they are aware of the external environment.
• These include tools like the pestle analysis and Porter’s five force model, as
well as strategic group analysis and pentagonal analysis, to name a few.
The external analysis for the Kia Motors Case Study will assess and will apply the
strategic models and tools to review the business environment for the company
(PESTEL Analysis).