Hyundai Nishat

Submitted By:
Ahsan Pasha
Abdullah Ranjha
Talha Khan
Mohsin Ali
Aleezah Zahid

Submitted to:
Assistant Prof. Shama Razi
Table of Contents
Company Introduction:......................................................................................................3
Brand Analysis...................................................................................................................4
Layers of The Product.................................................................................................................4
Type of Consumer Product.........................................................................................................5
Product Line/Mix.......................................................................................................................7
Mission/Vision Statement..................................................................................................8
Vision Statement by Each Member.............................................................................................9
Product Life Cycle (PLC)....................................................................................................10
Boston Matrix..................................................................................................................11
Competitive Frame of Reference......................................................................................13
SWOT Analysis.................................................................................................................16
Differentiating and Positioning........................................................................................20
Perceptual Map and Form Results....................................................................................21
Google Form Results..................................................................................................................................22
Positioning Statement and Analysis..........................................................................................25
Hyundai Pricing Strategy..................................................................................................26
Changes to Strategy..................................................................................................................27
Conclusion........................................................................................................................28
 Hyundai Nishat
Company Introduction:
Hyundai Nishat is a joint venture between Hyundai and Nishat group
established in 2017 in accordance to the Automotive development Policy
(2016-21). Before this
Hyundai was previously
operational and was
manufacturing cars in
Pakistan but had pulled out
in 2004 when their partner
Dewan Farouque Motors
declared bankruptcy.
As of right now Hyundai
Nishat is currently selling
four locally produced
consumer vehicles namely,
Tucson, Sonata, Elantra and
Staria, two imported (CBU) consumer vehicles namely, I-oniq and Santa fe, and
one locally produced commercial vehicle named Porter.

Brand Analysis
Layers of The Product

Augmented product:
4 year or 100,000km
warranty, Free
registration

Actual Product:
Hyundai Vehicles

CoreProduct:
Core Product:
Comfort,
Comfort,
Reliability and
Reliabilty and
Quality
Quality

FIGURE 1

In figure 1 the layers of Hyundai products are illustrated.

The green circle is the core customer value, which states that in reality Hyundai is not selling
cars but is selling a comfortable, reliable and worry-free journey in the safest product
possible. The blue circle represents the Actual Product, which includes the various safety
and technological features e.g: Multiple Airbags, Cruise Control, Electric Adjustable
seats,etc. The orange circle represents the Augmented Product which refers to the after
sales services and warranty which Hyundai gives in the form of 100,000 kms or 4 years
whichever comes first.

Type of Consumer Product

Specialty goods are those in
which consumers are willing
Marketing Specialty to put special purchase
Considerations effort

Strong brand preference and loyalty; Hyundai cars fall into a

special purchase effort; little
comparison of brands; low price category of luxury goods in
Customer buying behavior
sensitivity which customers look for
brand image, luxury, reliable
as well as a comfortable
travelling experience which
Hyundai satisfies to a great
extent

Price High price Hyundai cars are

comparatively expensive
products and considered
luxury products which is why
a premium price is charged.
 Distribution Exclusive distribution in only one or a There are a total of 20
few outlets per market area
dealerships spread across 14
cities nationwide out of
which Lahore has the most
(5).

Promotion More carefully targeted promotion by Hyundai pursues a niche

both the producer and resellers
marketing strategy targeting
the upper middle and upper
class of Pakistan. Social
media, TV campaigns and
billboards are used to market
their products.
TABLE 1
Product Line/Mix
Product mix refers to the set of all product lines and items that a
particular seller offers for sale.

Hyundai Product Mix

Sedan SUV Van/Pickup

Elantra Sonata Ioniq Tucson Santafe Staria Porter

Gls 2.5 At ultimate 3.5 A/T Deck less

2000 cc 2500cc Awd Petrol 2600 D MT

Gl 2.0 Gls sport 2.2 M/T Flat deck

1600 cc 2000cc Fwd Diesel 2600 D MT
The figure above illustrates the product mix of Hyundai Nishat. It depicts
that Hyundai has three product lines which are Sedans, SUVs and
Vans/pickups. Furthermore, each product line is divided further. Sedans 2.2 A/T High deck
have a product line length of 3 and product line depth of 2. SUVs have Diesel 2600 D MT
product line length of 2 and product line depth of 2. Vans/Pickups have a
product line length of 2 and an average product line depth of 3.5. The
Product Width is 7. Every product line targets different customer groups
with respect to their demographics such as Sedans to bachelors and HGS
bachelorettes, SUVs to families and Vans/Pickups to industrial frameworks. Top Spec
3500 A/T

Mission/Vision Statement

Hyundai Currently has no Mission statement in Pakistan. The proof is here as follows
 The vision statement which is written in their website is as follows
“Hyundai Motor Company is striving to provide freedom of movement to everyone by
investing in mobility services, by building close relationship with leading mobility service
providers and expanding our role beyond the automotive transportation sector. The
company will play a pivotal role in global society’s transition to clean energy by helping
make hydrogen an economically viable energy source.”

Vision Statement by Each Member

Ahsan Pasha Vision Statement:

Hyundai strives to serve its customers with the best comfort quality and luxuriousness. The
company strives to make more fuel efficient and hybrid cars that are environmentally
friendly and not contribute to harming the society In the upcoming future.
Talha Khan Vision Statement: Hyundai aims to be the market leader of Pakistan's
automobile industry by providing its consumers with a luxurious lifestyle, comfort, reliability
and trust. Adopting the new technological systems to integrate production and product
delivery enhancing productivity, efficiency and reducing delivery time to maximize customer
satisfaction.
Abdullah Ranjha Vision Statement: Providing customers with top notch reliability and
comfort without cutting on any corners of quality.
Mohsin Ali Vision Statement: Providing clients with excellent automobile value by expertly
balancing efficiency, quality, and safety. With the help of our diversified workforce, we will
manage our community and environment responsibly while ensuring stability and security
for the present and coming generations.
Aleezah Zahid Vision Statement: As global citizens, we ensure that customers are delivered
eco-friendly, dependable and highly efficient cars while keeping this process as simple as it
can be.
Product Life Cycle (PLC)

As Hyundai is a relatively new company which recently started its second Joint Venture with
Nishat Group in Pakistan, the company is now known as Hyundai Nishat completely
different from its first venture which was with Dewan Farooque motors. The second venture
is a new entity and is in its growth stage and is still in development, finding new ways on
how to penetrate the deeply rooted automobile market of Pakistan. The first few Hyundai
products seemed to be a big hit in the market with Hyundai Tucson being the cash cow and
Hyundai Sonata to be the star. The company has not fully explored its potential in Pakistan
and hopes to do so by launching more economic and hybrid vehicles in Pakistan.
 Boston Matrix

Relative market share

Cash Generation

High Low

Star Question mark

Sonata Elantra
Low

Market growth rate

Cash Usage

Cash Cow Dog

Tucson
High

NONE
According to the sales figure presented in PAMA report Sonata was launched in 2021 and
achieved the sales of almost 3000 units with a growth rate and crossed the number of units
sold in past year in comparison to its competitors i.e., Honda accord and Toyota Camry.
Thus, Sonata is Hyundai’s star product.
Elantra would fall into the category of the Question mark as it records a significantly low
market share as it sold only 3610 units in 2021 and its competitors such as Honda civic and
Honda city sold over 35000 units combined. Similarly, Toyota corolla and Yaris sold over
55000 units in 2021. But Elantra has a high market growth rate of almost 322.2% in one
year’s time.
Tucson being the cash cow of Hyundai was launched in 2020 and has a low market growth
rate of only 30% with a high market share reaching into the top 5 best-selling SUV’S in
Pakistan. As for the dog product Hyundai currently has no product with both low market
share and low market growth rate.
Competitive Frame of Reference

Indirect Competition

Orange Metro
train Direct Bus
Competition

Honda Toyota

Hyundai

KIA MG
InDrive Careem

Traditionally, Pakistan had an Oligopolist type of market structure with reference to the
automobile market. It was controlled by top three companies: Toyota, Honda and Suzuki
where Toyota mostly sold the jeeps and other four-wheel drive vehicles, Honda had control
over the sedan category and Suzuki was responsible for selling small hatchback vehicles
along with other segment vehicles. These three companies colluded in pricing and allotted
quotas for the quantity of vehicles sold. Toyota is known for its good built quality, comfort
and fuel efficiency to some extent, similarly Honda is known for building aggressive and
sport looking cars with adding road grip mostly suiting customers who demand speed.
Suzuki on the other hand manufactures and sells vehicles who provide very high fuel
efficiency and cheap cars for lower income class of Pakistan.
Hyundai stepped into the Pakistan’s automotive market in 2017 and launched its first
vehicle called Hyundai Tucson it is a crossover SUV targeting the upper middle and elite
class of Pakistan’s market. As previously this segment of Pakistan’s market was buying
Suzuki Vitara or they were importing Honda Vezel. As Pakistan market lacked a good
crossover SUV in 2017 Hyundai adopted differentiation competitive strategy by launching a
new variant in Pakistan with additional features. Market niche strategy most suited Hyundai
at that time period targeting only a small segment and excelling in it.
Hyundai also faces indirect competition from every single mode of transport, this can
include busses, trains, Uber, InDrive, Careem, Orange Train, Metro Bus and more. these are
all indirect competitors of Hyundai as Hyundai only mainly focuses on the Middle- and high-
income group. These modes of transportations are used by Low-income group as they don’t
have enough money to buy a price premium product.
Later on, Hyundai introduced its new products such as Sonata, Elantra and Porter expanding
its product mix as well as its competitors.
Some of the major competitors of Hyundai Nishat are as follows:

HONDA ATLAS
Honda cars are one of the most preferred cars in Pakistan. It offers a wide product mix to its
customers targeting different consumer segments. Its total offerings in Pakistan include:
Honda Accord, Honda CR-V, Honda Civic (Three variant), Honda HR-V (Two variants),
Honda BR-V, and Honda City (Three variant).
“We aim to offer our customers the best driving experience, with premium-quality vehicles
supported by an outstanding after-sales service” (Ali, n.d.) this statement was delivered by
the general manager IT of Honda Pakistan this gives a clear idea that Honda aims to
maximize customer satisfaction through them after sales service and increase the quality of
their vehicles. After-sales services, which include maintenance, repairs, and vehicle
servicing, are delivered by Honda Pakistan’s dealerships to thousands of customers every
year (Ali, n.d.).
Two of the products that directly compete with Hyundai’s products are Honda civic and
Honda HRV as Hyundai provides Sonata and Tucson to the same consumer segment as these
two Honda products.
Core competency of Honda atlas is its good relation with suppliers while patronizing the
vendors for developing and manufacturing of local parts.

TOYOTA INDUS
Toyota is currently the market leader of the automotive industry with holding 26% of the
sales. Toyota offers a wide range of products to the market mainly consisting of sedans,
SUVS and jeeps. But its competition with Hyundai is low, as its product mix has no B
segment vehicle to compete with Hyundai Sonata. So, the only direct competition is between
Toyota corolla Grande and Hyundai Elantra.
The main aims of Toyota Indus motors are as shown in the figure below.
 Core Competencies Toyota’s core competency has been its ability to develop automobiles
that have superior quality. The competitive prices of the company’s products mean that it has
loyal customer base. (jonas, n.d.)

KIA MOTORS
Kia motors is the third major competitor of Hyundai, it only offers two of its products in
Pakistan which are Kia Sportage and Picanto. Picanto generally is no threat or a competition
for Hyundai as Hyundai offers no hatchback small cars but Sportage can be a major threat to
Hyundai as Tucson and Sportage are similar in every manner in terms of features, market
segment, price bracket and customer perception.
Kia is well known for its build quality and comfort also adding luxury to the consumer end.
Kia Motors’s strategic objective associated with market penetration strategy is to increase
sales by lowering the prices through cost leadership. A correlation between low cost and low-
price leadership is assumed in this case. Another way to achieve this growth objective is to
integrate the innovation for setting clear differentiation basis (butleer, n.d.)

HONDA AS THE MAIN COMPETITOR OF HYUNDAI

If I were to choose a one specific Competitor it would be Honda atlas as Honda and Hyundai
provide its customers with segment cars such as: HRV and Tucson; Civic and Elantra;
Accord and Sonata. These products give direct competition to each other.
Honda atlas main objectives are to provide customers with high value through premium
quality and after sales service. Whereas Hyundai aims to shake the dominance of top three
car manufacturers in Pakistan which are Honda, Toyota and Suzuki by providing adequate
delivery timings, agile manufacturing and by adopting new technological methods of
production. Hyundai reduced their prices to gain market share in Pakistan’s industry adopting
price penetration strategy. Honda atlas strengths include its Qualified and well-trained staff,
biggest sale network, financially strong, People trusted products, Resale value best production
plant in the country, After sale services, Warranty period, Availability of spare parts (iqbal,
n.d.)
And its weaknesses are High prices of products, Low manufacturing ability of vendors, Slow
response or long lead time from the vendors, Difficult to high quality production at high
market demand. (iqbal, n.d.). Honda being the market challenger of the automotive industry
with second highest sales volume and with similar product mix as of Hyundai Nishat makes it
the perfect competition for Hyundai. Hyundai aims to use data practices to forecast sales and
manage end to end operations to increase their efficiency and delivery service which is lacked
by the Pakistan’s automotive industry. As a market niche targeting only a small niche in the
market which is currently covered by Honda atlas involving B and C segment cars would put
Honda in serious danger, so taking over this particular segment from Honda is the main aim
of Hyundai Nishat.

SWOT Analysis
SWOT analysis is a method to analyze the internal strength and weaknesses and external
opportunities and threats of a business.

Strengths
Global Presence:
Hyundai operates in over 190+ countries, has established a good reputation globally and is
well trusted by its customers.
Just In Time Inventory System:
Currently in Pakistan, Hyundai makes use of the Just in Time inventory system. Using
modern data forecasting techniques to ensure that inventory is available when required by
their customers. This in turn helps Hyundai deliver its cars much faster than its competition.
As of now Hyundai is promising 1 month delivery on all its cars after ordered. This also helps
keeping the cost down as no storage areas are needed to store parts or vehicles.
Highly qualified employees:
Hyundai only hires employees that have been properly trained with high qualifications and
ensures to build a strong team. The highly qualified employees make it a much more
enjoyable experience for customers as they are always up to date on the latest
development and new upcoming changes to their cars or inventory in general.
Digital Marketing:
Hyundai became the first company in Pakistan to use digital marketing when they unveiled
the Hyundai Tucson on social media. Currently Hyundai Nishat has 104,000 likes on
Facebook, 24,000 followers on Instagram 15,200 subscribers on YouTube. Digital marketing
is helpful to Hyundai as Potential customers can be updated with the latest development in
their products and also provide valuable information only the company can give.
Weaknesses
No Small Vehicles:
Hyundai only launched their price premium vehicles in the market of Pakistan namely
Sonata, Elantra and Tucson. All of these cars are focused towards the high-income group
and cannot be purchased by the low- or middle-income group. All of the above vehicles
have a base MSRP of over 5,000,000 which is not easily affordable as Pakistan is a relatively
poor country.
Number of Showrooms Present:
As of Now Hyundai only has 20 showrooms in operation throughout Pakistan. Major
competition such as Toyota has 51 Showrooms and Honda has 35 Showrooms throughout
Pakistan.
High Prices:
As the competition is fierce and the economic situation in Pakistan is very bad, Hyundai
charges high prices for its vehicles. The higher prices allow Hyundai to remain inside the
Pakistani market. The locally Produced MG HS costs 68,999,000 PKR whereas the locally
produced Hyundai Tucson costs 72,999,000 PKR. (Stats taken from Pakwheels.com)
Older Generation Vehicles:
Hyundai has followed the path of its competitors and launched the older generation
vehicles in Pakistan. For example, the Hyundai Elantra launched in Pakistan was the 6 th
Generation Elantra as compared to the 7th Generation Elantra which was already running in
the international market. Same is the case with Hyundai Tucson. The only car that was up
with the generation internationally was the Hyundai Sonata.
Low Product Mix
Hyundai only sells a total of 5 customer vehicles in Pakistan namely Tucson, Sonata, Elantra,
Porter and Staria. Hyundai should launch more of its products in the Pakistani market in
order to show its brand presence in the country. Introducing more vehicles would grab
them more customers as they look to target more segments of car categories.

Opportunities
Introduction of Hybrid Vehicles:
Hyundai has successfully launched many hybrid vehicles internationally that are liked and
bought by consumers, as there is an ever going increase in the demand of cheap Hybrid cars
as petrol is getting expensive, Hyundai should make good use of this growing opportunity
and launch its hybrid cars in the Pakistani car market.
Introduction of Hatchbacks:
Hyundai should bring hatchbacks in the growing automobile industry of Pakistan. Launching
a hatchback would improve their product mix and would also attract low-income group and
customers looking for smaller vehicles.
Threats
High Competition:
Hyundai faces immense competition from well-known automobile manufacturers such as
Honda and Toyota. These industries are well recognized throughout Pakistan and have
almost 50% of the entire market share of automobile industry. (Stats taken from
researchgate.net) The monopoly built by the 3 major leading manufacturers Toyota, Honda
and Suzuki has made it difficult for Hyundai to effectively sell vehicles in Pakistan.
Economic Instability:
There has been a lot of Economic Instability in Pakistan ever since the impact of SARS Covid
19. The dollar prices have increased almost 1.5 times and the inflation in the country keeps
on rising. The rising dollar rates make the cars much more expensive than they already are
and don’t attract the customer. With the increase of the dollar fuel prices have also doubled
in the last couple of years in Pakistan. Increase in fuel prices have shot up the demand for
electric/ hybrid vehicles.

Strategy for market expansion and the marketing mix.

Hyundai could adopt any of the four expansion strategies to increase their sales and attract
more customer, Ansoff’s matrix shows all these four strategies for expansion.
Ansoff’s matrix shows the four expansion strategies with respect to the types of market and
risk.
The strategy that would best suit Hyundai for expansion would be product developing as its
already operating in Pakistan but should introduce its new products in this market to gain
market share of Pakistan’s automotive industry.
Suzuki is the only seller in Pakistan who targets the middle and lower middle class of the
market with its hatchback cars. This particular segment is more than half of the total
Pakistan’s market so targeting this segment could bring in huge profits and customers for
Hyundai. The only competitor in this segment “Suzuki” is already facing issues with their
build quality and image of being low quality. Hyundai already has a great line up for their C
segment cars which they have introduced in other marketplaces and have gained huge
success.

Marketing mix is the combination 4p’s as shown in the figure above to.
But these must see through consumer’s lens to fulfill the needs more efficiently which are
customer value, cost, convenience and communication.
Adopting a strategic marketing mix is crucial for the success of the business.
Hyundai could accommodate its customers through fulfilling the 4c’s effectively.
For consumer value Hyundai should introduce its hatchback vehicles with various features to
satisfy the needs and adding value to the lives of their customers by making their journey
more comfortable and luxurious. For that customers would have the bear the cost by setting
right prices for their products this would become easier for them. Convenience includes the
places where the product is available for sale, Hyundai has already established 20 dealership
units to accommodate that. Finally, communication is the promotional techniques used to
create awareness for their new product.
Differentiating and Positioning
Hyundai has carefully planned and cultivated the values that its brand is associated with. It
focuses mainly on product-based positioning methods and value-based proposition in order
to uniquely distinguish itself in the eyes of its consumers and target audience.
The following are the various attributes that Hyundai characterizes itself by:

Positioning

Hyundai tailored its marketing messages through analyzing social data.

They first identified that their Pakistan’s consumer’s buying decisions are mainly influenced
by cost, performance and design, then they chose to advertise their campaigns in a way that
makes it seem that their product aligns with customer values.

Safety: Hyundai has carefully inculcated the idea of security and safety whenever the key
features of its automobiles are of debate. Its ads showcased in Pakistan usually show its cars
in, for example mountains, where it’s hard to travel to, and then emphasize the cars
features like HTRAC All-Wheel Drive-in order to ensure the strength of its build which
promotes ideas of security.

Design: When it comes to design, Hyundai chooses to

market the lifestyle associated with a certain
aesthetic of its cars. Tucson’s premium leather
upholstered dashboard with double stitching evokes a
premium feel. These designs gain more traction
when they are associated with lifestyle values. Their
cars spacious and distinctive interior appeals to the
Pakistani audience as it promotes ideas of comfort
through space-oriented designs.

Simplicity: Hyundai has set the upper middle- and upper-class families of Pakistan as its
target audience. Nowadays, minimalism is gaining traction amongst people as a lifestyle
trend. In order to cater to the upper-class audience, Hyundai chooses to highlight the simple
but elegant interior of its cars with plain color schemes. To target the upper-middle class,
Hyundai takes the same simplicity but used it as a relatability factor in order to appeal to
upper-middle class’s values.

National values: Hyundai arranged a campaign where it identified Hockey as Pakistan’s

national sport and associated it with the brand. This promoted the idea in its consumer’s
minds that although Hyundai is an international brand, it still is aware of the country’s
values and caters to them too.

Sustainable Management: Hyundai has advocated for continuous adaptation of eco-friendly

ways to build their automobiles. It establishes itself as a benchmark for other companies to
follow its example of taking the lead in energy conservation. It uses its strong emphasis on
sustainable production methods to distinguish itself from its competitors like Kia.
Differentiation

Fuel Efficiency: Due to Hyundai’s excellent hybrid technology, it has been able to deliver
automobiles that are best known in the industry for their exceptional fuel economy.
Furthermore, its Drive Mode Select allows an Eco option that saves even more on gas. Thus,
due to maximization of efficiency, Hyundai automobiles are best differentiated against their
competition.

Digital Technology: By adding features like Augmented Reality, Smart Blind Spot Detection
and Motion Recognition, Hyundai distinguishes itself as a forward-thinking brand that
strives to deliver the most innovative and futuristic automobiles.

Cost Leadership: By focusing on excellent supply-chain management and manufacturing

efficiency, Hyundai has been able to reduce its operating expenses, and thus is able to offer
high-end quality products while keeping its prices affordable in order to cater to a wide
range of groups belonging to the upper-middle and upper class.
Perceptual Map and Form Results

The 2 key elements we took for the Consumer Perception are Build Quality and Comfort. We
as a group believe that Build Quality matters more than the Fuel Average for the chosen
brand. Hyundai identifies itself as a premium brand as it charges high prices for its products.
The importance of fuel average is not included as if a consumer is willing enough to pay 40-
70 lacs for a car fuel average would not be much of an issue due to the high prices paid by
the consumer. The second element namely Comfort is something that is always expected
when paying such a huge amount. In Pakistan the roads are not built well enough and
sometimes there are a lot of unexpected bumps and holes in the road. Comfort is always the
first priority of the consumer and is something that cannot be overlooked.
As for the market share of the respective companies the data was taken from
“researchgate.net”.
The Perceptual Map suggests that Hyundai Sits right in the middle of the big companies
namely Toyota and Honda, it scores higher in Comfort than Toyota and lower in the build
quality, as for Honda, Hyundai scores higher in build quality and lower in comfort. In order
to overtake both of these companies Hyundai would need to work on both build quality and
comfort. If Hyundai somehow achieves better build quality and comfort it would make them
a better choice over Toyota and Honda. The sales would increase with the customer
satisfaction making it a more reliable choice than its bigger competitors.

Google Form Results

In total we managed to get 77 responses from our Perception form which was created using
online google forms.
The following images show the result of the Consumer Perception Survey
Positioning Statement and Analysis

“For individuals looking for the best quality and comfort for travelling (targeted Audience).
Hyundai Nishat (brand) is an automobile manufacturer (category) that provides a range of
fast, reliable and comfortable cars (point of difference) so that they can enhance their
driving experience (end benefit) because we at Hyundai Nishat believe that customer
satisfaction matters the most (reason to believe)"

The positioning statement here defines the class of Hyundai and the elements it is
previously known for. Luxury and Comfort have always been a strong point for Hyundai and
using it in the positioning statement defines Hyundai’s role in the market for automobiles.
Furthermore, it also explains Hyundai’s quest towards making excellent and enjoyable cars
and importance of its customers. The positioning statement also establishes it as a strong
competitor against the rival manufacturers and improves its customer perception.
Hyundai Pricing Strategy
Currently in Pakistan Hyundai faces very fierce competition from all sides, in the sedan
section Hyundai faces massive competition from the two biggest car brands namely Toyota
and Honda, The Elantra variants namely Elantra GLS and Elantra GL round up with
competitors such as Toyota Corolla Altis Variants namely Altis Grande 1.8X and Altis 1.6X
special edition. From Honda the competition lines up with Honda Civic Oriel, and Civic RS.
In the SUV section Hyundai Faces up with competition from Brands such as Morris Garage
and KIA Motors. The Hyundai Tucson goes head-to-head with the MG HS and KIA Sportage.

It is because of the fierce competition that Hyundai makes use of Competition based pricing
strategies. It involves setting prices based on the competitors’ strategies, costs, prices and
market offerings. Hyundai normally prices its vehicles either alongside the competition or
either a little below the competition. The Hyundai Elantra GLS is priced at 5,699,000 PKR as
compared to Toyota Grande 1.8X at 5,749,000 and Honda Civic RS priced at 7,549,000 PKR
(stats taken from AutoWheels.PK). The Hyundai Sonata 2.5 is priced at 8,900,000 PKR as
compared to Toyota Camry priced at 23,319,000 PKR and Honda Accord priced at
15,499,000 PKR (stats taken from autowheels.pk). The Hyundai Sonata has the edge over
Camry and Accord as Sonata is a CKD (Domestically Produced) and the other two are CBU
(Complete Built Units) which are imported into the country. The Hyundai Tucson AWD AT is
priced at 7,399,000, the MG HS is priced at 6,899,000 and the KIA Sportage AWD is priced at
7,299,000 PKR (stats taken from pakwheels.com). To make its pricing strategy successful
Hyundai also offers value added pricing. One great example of the value-added pricing is
Hyundai Providing its customers with a 4 year or 100000 Kilometers warranty alongside with
purchase of a new Hyundai Cars from its authorized dealers. Hyundai also recently launched
another offer aligning with its path of Value-Added pricing. Hyundai is now offering free
registrations with the purchase of the Tucson AWD Ultimate. In this case the cost of the
registration would be borne by Hyundai themselves, this also allows for additional money to
be saved by the purchaser and provide for better competitive pricing by Hyundai. Apart
from this Hyundai also uses competitive spare parts pricing strategies in order to keep the
maintenance of its cars low and also erasing the grey market which sells spare parts at a
relatively high price.
Overall Hyundai makes its cars the cheapest to own out of all the other major car brands by
providing value added services and using competitive spare parts strategies. Another
example of Hyundai being keen to provide their customers with the best price possible was
when it promised the delivery of Hyundai Elantra one month after a deal between customer
and dealership was made, this helped the customers get their cars quicker and also erased
the Pakistani concept of charging OWN (extra price charged for instant delivery by a dealer).
Hyundai lived up to their promise and saved loyal customers a lot of time to get the car
delivered and also saved a handsome amount of money by not paying OWN.

Changes to Strategy

In general, we agree with the selected pricing methods used by Hyundai Nishat. The car
industry in general faces a lot of competition from other car manufacturers and also faces
indirect competition with all available modes of transport. The use of competitive prices
keeps Hyundai Nishat alive in the race to achieve the highest market share and become the
market leader. The value-added pricing method used by Hyundai is a unique selling point
as no other car manufacturer currently provides 4 year or 100,000 Kilometer warranty. This
also shows the confidence of the brand knowing that their cars won’t break down or won’t
have any problems in the first 4 years of service. The competitive pricing of spare parts also
means that the overall cost of the maintenance of the car can be kept lower then rival
manufacturers. The selected strategies allow for Hyundai to keep better control on prices
and can act relatively quick to see how the competition changes its prices and lowers them.
However, Hyundai does have more room to spare and make for a better market share if it
uses the cost-plus pricing method. This method accounts for a fixed percentage charged on
top of cost charged for a particular item. This way Hyundai could keep its prices lower than
rivals such as Honda, Toyota and Kia. Adding more use of value-added pricing strategies
such as offering free checkups and engine tuning, offering free wheel alignment and a
complementary car wash inside the dealership. The low prices would allow for more
potential customers and customers looking for cheap alternatives. This strategy would also
break the monopoly of the market of charging high prices for everyday driven cars. If
Hyundai lowers its prices the competition would have to follow in their footsteps and also
decrease their prices in order to keep loyal customers. Healthy competition between the
brands would allow for car prices to drop significantly and the monopoly to be broken.

Conclusion
In conclusion, the strategy changes implemented by the group would help Hyundai to achieve
a bigger market share and break the deadlock ensured by its competitors Toyota and Honda
who have colluded with each other to set prices accordingly. The changes recommended
using the Ansoff matrix would include Hyundai Launching new cars in different Market
segments. The hatchback section for example is where Hyundai has no car in the Pakistani
market, introducing a car in this segment would attract low-income earners who cannot afford
price premium cars. Hyundai would have to make use of cost-plus pricing strategy to make
sure that its car prices fall way below the competition and attract new customers towards its
increasing customer satisfaction and loyalty. Making more use of the value-added pricing
method would also be of massive use to Hyundai as it will make the cars appear more
cheaper than they already are.