Strategic management involves the formulation and implementation

of the major goals and initiatives taken by a company's top

management on behalf of owners, based on consideration
of resources and an assessment of the internal and external
environments in which the organization competes. Strategy is defined
as "the determination of the basic long-term goals of an enterprise,
and the adoption of courses of action and the allocation of resources
necessary for carrying out these goals.Strategies are established to
set direction, focus effort, define or clarify the organization, and
provide consistency or guidance in response to the environment.

Strategic management involves the related concepts of strategic

planning and strategic thinking. Strategic planning is analytical in
nature and refers to formalized procedures to produce the data and
analyses used as inputs for strategic thinking, which synthesizes the
data resulting in the strategy. Strategic planning may also refer to
control mechanisms used to implement the strategy once it is
determined. In other words, strategic planning happens around the
strategic thinking or strategy making activity.

Strategic management is often described as involving two major

processes: formulation and implementation of strategy. While
described sequentially below, in practice the two processes are
iterative and each provides input for the other.

Features of Strategy

1. Strategy is Significant because it is not possible to foresee

the future. Without a perfect foresight, the firms must be
ready to deal with the uncertain events which constitute the
business environment.
 2. Strategy deals with long term developments rather than
routine operations, i.e. it deals with probability of
innovations or new products, new methods of productions,
or new markets to be developed in future.

3. Strategy is created to take into account the probable

behavior of customers and competitors. Strategies dealing
with employees will predict the employee behavior.

Industry Profile

The automotive industry in India is one of the largest in the world

with an annual production of 23.37 million vehicles in FY 2014-15,
following a growth of 8.68 per cent over the last year. The automobile
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 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 FY 2014-15, automobile exports
grew by 15 per cent over the last year. 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 Two
Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.
Market size

The industry produced a total 14.25 million vehicles including

PVs, commercial vehicles (CVs), three wheelers (3W) and
2W in AprilOctober 2015, as against 13.83 in AprilOctober
2014, registering a marginal growth of 3.07 per cent, year-to-
year.

The sales of PVs grew by 8.51 per cent in AprilOctober

2015 over the same period in the previous year. The overall
CVs segment registered a growth of 8.02 per cent in April
October 2015 as compared to same period last year.
Medium & Heavy Commercial Vehicles (M&HCVs) registered
very strong growth of 32.3 per cent while sales of Light
Commercial Vehicles (LCVs) declined by 5.24 per cent
during AprilOctober 2015, year-to-year.

In AprilOctober 2015, overall automobile exports grew by

5.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of
6.34 per cent, 17.95 per cent, 18.59 per cent and 3.22 per
cent, respectively, in AprilOctober 2015 over AprilOctober
2014

Investment

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$13.48 billion during the period April 2000
to June 2015, 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:

Global auto maker Ford plans to manufacture in India two

families of engines by 2017, a 2.2 litre diesel engine code-named
Panther, and a 1.2 litre petrol engine code-named Dragon, which
are expected to power 270,000 Ford vehicles globally.

The worlds largest air bag suppliers Autoliv Inc, Takata Corp,
TRW Automotive Inc and Toyoda Gosei Co are setting up plants
and increasing capacity in India.

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.

US-based car maker Chrysler has planned to invest Rs 3,500

crore (US$525 million) in Maharashtra, to manufacture Jeep
Grand Cherokee model.

Mercedes Benz has decided to manufacture the GLA entry

SUV in India. The company has doubled its India assembly
capacity to 20,000 units per annum.

Germany-based luxury car maker Bayerische Motoren Werke

AGs (BMW) local unit has announced to procure components
from seven India-based auto parts makers.

Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent

shares in France-based Peugeot Motorcycles (PMTC).

Government Initiative
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 aims to make automobile

manufacturing the main driver of "Make in India" initiative, as it
expects the passenger vehicles market to triple to 9.4 million units
by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.

In the Union budget of 2015-16, the Government has

announced plans to provide credit of Rs 850,000 crore (US$127.5
billion) to farmers, which is expected to boost sales in the tractors
segment.

The government plans to promote eco-friendly cars in the

countryi.e. CNG-based vehicles, hybrid vehicles, and electric
vehiclesand also to make mandatory 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 introduction of reliable, affordable, and efficient
electric and hybrid vehicles into the country.

The Automobile Mission Plan (AMP) for the period 20062016,

designed by the government is aimed at accelerating and
sustaining growth in this sector. Also, the well-established
Regulatory Framework under the Ministry of Shipping, Road
Transport and Highways, plays a part in providing a boost to this
sector
MARKET POSITION

MUMBAI: Maruti Suzuki BSE 1.98 % posted its highest market share in
more than a decade in July, when almost one in every two passenger
vehicles rolled out of the country's manufacturing plants had a Maruti
badge on it. Not only that, the maker of the Alto and WagonR in July
produced more vehicles than ever before in its history. The undisputed
leader of the Indian market manufactured 1.33 lakh cars in the past month,
as it aims for an output of 1.39 million to 1.44 million this fiscal years.

Its stellar sales performance in an otherwise weak Indian automobile market has
reflected in its share price as well. The stock rose 72% from a year earlier to hit a
new life high of Rs 4,530 on the BSE Tuesday. It closed at Rs 4,504.80, up 0.2%
compared with a 0.8% drop in the benchmark Sensex. Based on the stock price,
Maruti is now more valuable than parent Suzuki.

ENVIRONMENTAL SCANNING

He car major will bring down carbon footprint of its manufacturing

operations through improved operational efficiencies and constant
innovation. The power consumption per car for instance has come down by
nearly 30% in Gurgaon in the last decade and by about the same
percentage in Manesar in five years. In addition, the company is also
helping its vendor partners to quickly adopt these energy efficient
technologies.
Some recent examples:

- 100 % LED usage in Manesar Plant B plant

- Use of natural gasto generate power and minimise carbon emission.

- Installed steam-driven systemsfor power generation, which use steam

from the waste heat recovered from our gas turbines.

- Use solar powereffectively for street lighting and water heaters.

- More extensive use of solar poweras a clean energy source for its
operations.

The company has also pledged to invest in new, cost-effective

technologies that bring down greenhouse gas emissions of its facilities.
The Manesar B plant commissioned in September 2011 is the first car
plant in the country that is 100 % LED. With this innovation in place,
Manesar B Plant is significantly more energy efficient than any of the other
plants, including the Manesar A Plant which was commissioned in
February 2006.

As the company, introduces new models in the market it continues to bring

them on next generation engine technologies that assure high fuel
efficiencies with lower emissions. For instance, the new Swift and new
Swift DZire, the engineers have significantly reduced emissions by 4-5%
per kilometer and enhanced efficiencies by working on vehicle
aerodynamics besides adopting several innovative weight reduction
techniques.

HISTORY
Originally, 18.28percent of the company was owned by the Indian government, and
54.2percent by Suzuki of Japan. The BJP-led government held an initial public offering
of 25percent of the company in June 2003. As of May 200 [update], the government of India
sold its complete share to Indian financial institutions and no longer has any stake in
Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car
which at the time was the only modern car available in India, its only competitors - the
Hindustan Ambassador and Premier Padmini - were both around 25 years out of date at
that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti
Suzukis are sold in India and various several other

countries, depending upon export orders. Models similar to those made by Maruti in
India, albeit not assembled or fully manufactured in India or Japan are sold by Pak
Suzuki Motors in Pakistan.

The company exports more than 50,000 cars annually and has domestic
sales of 30,000 cars annually. Its manufacturing facilities are located at two
facilities Gurgaon and Manesar in Haryana, south of Delhi. Maruti Suzukis
Gurgaon facility has an installed capacity of 900,000 units per annum. The
Manesar facilities, launched in February 200 comprise a vehicle assembly
plant with a capacity of 550,000 units per year and a Diesel Engine plant
with an annual capacity of 100,000 engines and transmissions. Manesar
and Gurgaon facilities have a combined capability to produce over 14,
50,000 units annually.

MARKETING STRATEGY OF MARUTI SUZUKI

Maruti Suzuki India Ltd. is a leading manufacturer of four-wheelers in India. Born in
1983 with the mission to motorise India, Maruti was a joint venture between Government
of India and Suzuki Motor Corporation, Japan. It quickly grew into the largest compact
car making company of India and remained so till 2004. The company started with
Suzuki holding the minor stakes of the company while Government of India holding the
major stakes. As of present, Government of India has disinvested its stakes in the
company completely, and handed over the management of company to Suzuki Motor
Corporation. Today, Maruti and its partners employ more than 5,000 employees. Its
manufacturing facilities are located at two locations, Gurgaon and Manesar, both south of
New Delhi.

PRODUCT STRATEGY

Product is anything that can satisfy human needs and wants. The product is a combination
of tangible and intangible aspects of the products offered by the manufacturer to the
customers. It can be defined as a bundle of satisfactions and dissatisfactions offered by
company to the customers at a point of time. The product strategy of Maruti is that its
focus is on catering the needs of almost all the segments. Maruti Suzuki offers 16 brands
consisting of Maruti 800, MarutiOmni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti
A Star, Maruti Wagon R, Maruti Zen Estilo, Maruti Swift, Maruti SX4, Maruti Kizashi,
Maruti Eeco, Maruti Ertiga, Maruti Grand Vitara and 150 variants spanning across all
segments. Thus company creates products that are unique and valued and it is attaining
advantage either through differentiation via new features, improved performance, after
sales service or through cost leadership.

PRICING STRATEGY

The price is the amount a customer pays for the product. It is fixed after considering
various factors such as market share, competition, material costs, product identity and the
customer's perceived value of the product. The business may increase or decrease the
price of product if other stores have the same product. The price decision is very sensitive
and for that special care is to be taken to get the competitive edge. There are various
factors to determine a price of a car, such as market condition, cost incurred to build a
car, profit by company, dealer profit. The companys pricing strategies are such that every
customer can own a car or upgrade to another one of his or her choice. The company
offered a different model at a price difference of around 10,000. It follows a price-point-
strategy wherein they have products available in almost all possible price points.

DISTRIBUTION STRATEGY
Distribution strategy of a firm is a plan created by the management of a manufacturing
business that specifies how the firm wishes to transfer its products to intermediaries,
retailers and end consumers. Maruti Suzuki has two manufacturing facilities in India.
Both manufacturing facilities have a combined production capacity of 14,50,000 vehicles
annually. Maruti has a strong dealer network. Infact it was one of the very first companies
in the country to understand the importance of after sales service in high involvement
products like cars. It has the largest distribution & Service network comprising of over
400 sales showrooms, over 600 dealer workshops, and 1900 Authorized Service Stations
spanning across over 1190 cities unparalleled in the country. It has 30 Express Service
Stations on 30 National Highways across 1,314 cities in India. Most of the service
stations are managed on franchise basis where Maruti trains the local staff. To increase
their reach to rural India, where setting up a complete dealership was very difficult, they
opened extension counters

which are operated by some dealer in the city thereby ensuring increased customer touch
points without risking the viability of the dealers.
PROMOTION STRATEGY
The promotion includes all communications a marketer used in the market for his
products and services to create awareness, to persuade the customers, to buy and retain in
future also. For improvement in the position of sales or progress of business this method
is used. The message is given to target group regarding the features and benefits of the
products or services. Without communication, the features, benefits and schemes would
not be known to the customers and objectives of launching of products or services and
increasing sales would not be completed. When communication creates awareness then
only the interest would be created and customers would take the decision for buying. For
promotion different methods of communication can be used. The promotional strategy of
Maruti Suzuki is very effective. The company emphasise on road safety and environment
friendly products. The company has launched road safety mission under which 5,00,000
people will be trained in the next three years. This will be done through two channels -
Institute of Driving Training and Research (IDTR) and the Maruti Driving Schools spread
across the country. Of the 5, 00,000 people to be trained, at least 1,00,000 will be people
from underprivileged section of society, who are keen to take driving as a profession. The
company has always promoted the concept of "Reduce, Reuse, Recycle" (3R's). The
company has taken help of all the promotional tools like radio, television, road shows,
print media, workshops and seminars to promote their cars
ROAD SHOWS:
The Company organizes road shows to display vehicles in the pavilions during various
college festivals and exhibition.
RADIO:
Radio is one of the biggest medium to communicate. The company goes for radio
announcements to convey about the product features, price, qualities, etc.
PRINT MEDIA:

The company also promotes with the help of print media .Advertisement is given in
leading newspapers as well as they distribute brochures and leaflets at public places to
reach the customers. At times they organize workshops and seminars to display their
models and they also offer test drive. The company also advertises through banners and
posters.

PRODUCT LIFE CYCLE

Product life cycle is a business analysis that attempts to identify a set of common
stages in the life of commercial products. In other words the 'Product Life cycle' PLC is
used to map the lifespan of the product such as the stages through which a product goes
during its lifespan.
5.1
Product life cycle

Introduction stage:
When the product is launched onto the market sales may start slow or increase relatively
quickly. Advertising may be vigorous at this stage also.
During this period of introduction, promotional expenses bear the highest proportion of
sales."The product's costs rise sharply as the heavy expense of advertising and marketing
any new product begins to take its toll.
For cars like Alto K10 and kizashi market share is slight but
marketing costs are high.
2. Growth stage:
If the product is popular with consumers, then sales will start to rise. It may be a rapid
growth or a slower one. Rapid growths than fall away just as quick are called 'Fads'.
Advertising is often still heavy at this point.
Swift desire, Zen Estillo and SX4 are characterized by rapid
growth in sales and profit.
3. Maturity stage:
Once the product is well established and consumers are satisfied, then the product is
widely accepted and growth slows down. Before long, however, a successful product in
this phase will come under pressure from competitors. The producer will have to start
spending again in order to defend the product's market position or introduce extension
strategies.
It may only be in the Maturity stage where companies will received a return on their
original expenditure and investment due to potentially high start up and development
costs.
In case of Alto Wagon r and Swift competition is and any
significant move is likely to be copied by competitors.
4. Decline stage:
Soonerorlatersalesfallduetochangesinconsumertastesornewchoicesavailablefrom
competitor'sproducts.
Again,extensionstrategiesmaybeopentothecompanytokeeptheproductalive.

Market for Baleno and Esteem is shrinking thus reducing the overall profit.

PRODUCT LINE
Aproductlinereferstoanumberofproductsthatarerelatedanddevelopedbythesame
manufacturer. Product lines are not to be confused withproduct bundling, which
combinesvariousitemsintoonetypeofproduct.Itemswithinaproductlinegenerally
share the same basic theme, and with the help of a successfulmarketing planthese
productscanbeentirelyeffective.
Frequently,aproductlineincludesdifferentproductsthatareofferedtothepublicat
varyingpricepoints.Thisway,amanufacturerorcompanycanensurethatallproducts
withinalinewillbepurchasedbyallkindsofpeople.Productlineextensionreferstoany
additionalproductsthatmaybeaddedtoacurrentproductline.

Mostofthetime,productextensionsareintroducedtothepublicinordertowardoff
competitors.Bycreatingproductsthatmatchother,competitiveproducts,manufacturers
areabletokeepcustomersinterestedinaproductthattheyarefamiliarwith.Sincemost
people purchase brands that they know, these same consumers are more likely to
purchaseanewproductfromabrandthattheyarecomfortablewithratherthanpurchase
aproductfromanunknownbrand.

The country's largest car maker Maruti Suzuki India (MSI) on Wednesday said that it will
launch an upgraded variant of the Swift by the end of next year. The 3rd generation
Suzuki Swift was unveiled earlier this year in Hungary. Pics: New Suzuki Swift during
launch in Hungary

Maruti said that it will reorient the production of 'Swift' and 'DZiRE' in its two facilities
at Gurgaon and Manesar to enhance output.
SwiftispositionedasSuzuki'slatestworldstrategicmodel.TheSwiftwasfirstunveiled
bySuzukiin2005withasportysubcompactdesign.
As per the plan, the company will shift the entire assembly of its sedan 'DZiRE' to the
Gurgaon plant by around July next year. It will also shift the production of hatchback
'Swift', which is currently being produced at both the plants, entirely to Manesar
sometime in future.
"Our plan is to fully shift DZiRE to Gurgaon and Swift to Manesar to enhance
productivity. The shifting of assembly of DZiRE will take place by July next year and
that of Swift will take place in future," Maruti Suzuki India Managing Executive Officer
(Production) M M Singh told PTI. He, however, declined to comment how much volume
will be increased post this reorientation exercise. Currently, the company manufactures
about 10,000 units of DZiRE and 12,000 units of Swift every month.
The company's hatchbacks, Swift and Ritz, have a 3-4 month and 1-2 month waiting
period, respectively, while customers are willing to wait for 4-5 months to own a DZiRE
sedan. MSI takes about 5 months to deliver multi-purpose vehicle Eeco to buyers.
The company is expecting up to 30 per cent sales jump in the domestic market during this
financial year.

"We are expecting the domestic sales growth of 28-30 per cent in this
fiscal. Last fiscal we sold about 8. lakh units.

SWOT

Strength

1. Maruti is the largest passenger car company in India, accounting for

around 45% market share
2. Over 6,000 people are employed with Maruti
3. Good advertising, product portfolio, self-competing brands
4. Largest distribution network of dealers and after sales service centres
5. Strong brand value and strong presence in the second hand car market
6. Having different revenue streams like Maruti finance, Maruti Insurance
and Maruti driving schools
7. Over 700,000 units sold in India annually including 50,000 exports

Weakness
1.Inability to penetrate into the international market
2.Employee management, strikes, worker wage problems.

Opportunity

1. Developing hybrid cars and fuel efficient cars for the future
2.Tapping emerging markets across the world and building a global brand
3.Fast growing automobile market and increased purchasing power

Threats
1. Government policies for the automobile sector across the world
2. Ever increasing fuel prices
3. Intense competition from global automobile brands and cheaper brands
4. Substitute modes of public transport like buses, metro trains etc

PESTLE

: Exalt the sector as a lever of industrial growth and employment and to

achieve a high degree of value addition in the country
Promote a globally competitive automotive industry and emerge as a global
source for auto components
Establish an international hub for manufacturing small, affordable passenger
cars and a key center for manufacturing Tractors and Two-wheelers in the world
Ensure a balanced transition to open trade at a minimal risk to the Indian
economy and local industry

Economic

Sales of Passenger car has been increased to 8.45% peryear.

Maruti now plans to tap the rural market, 60 per cent of which runs on cash
. Maruti has appointed 2,000 sales executives to target customers in the rural
areas.
The manufacturing sector has grown at 8 10 per cent per annum in the last
few years.
More than 70 per cent of the VEHICLES purchase is on credit.
Social

Welfare Camps
Medical support & welfare Education tounderprivileged
Road SafetyMaruti Driving Schools
Green Growth

Technology

Launched CNG kit for Alto, its highest selling small car.
The company as a proactive move is all set to make its entire fleet of cars
adhere to end of life vehicles (ELV).
The company is involved with the development of small and fuel-efficient car
engines.
In future, the company has high plans to increase the engine development
work in India along with other R&D operations

Environmental
3R- reduce, reuse, and recycle.
Continuous process of promoting 100% recyclable and reusable car parts.
Targets reducing fresh water consumption and implement rain water
harvesting. Physical infra structure such as roads and bridges affect the use of
automobiles. If there is good availability of roads or the roads are smooth With
the development or evolution of alternate fuels, hybrid cars have made entry into
the market

Legal

Follows highest standards of Corporate Governance

Customer can contact the Secretarial & Legal Department for any
questions/clarifications.
Legal compliance reporting The board periodically reviews reports of
compliance with all laws applicable to the Company, as well as steps taken by
the Company to rectify instances of non-compliances.
The Company has developed comprehensive legal compliance scheduling and
management software by which specific compliance tasks are assigned to each
individual. The software enables in planning and monitoring all compliance
activities across the Company.
HYUNDAI
MARKETPOSITION

HyundaiMotorsIndiahassetitselfanewtarget.Sixteenyearsafterentering
India,theSouthKoreanautomotivegiantisrevampingitsstrategyinorder
tobecometheleaderinthecompactcarsegment,aspacethatisoccupiedat
presentbyMarutiSuzuki
India.HyundaiMotorsisonlyadistantsecond
withsalesatjustathirdofMarutiSuzukis.
TheSUV
segmentisimportantfortheSouthKoreancompanyifitisto
havearealisticshotatbecomingthemarketleader,andifitistokeepthe
salesgapwithMaruti,whichhas44percentofthemarket,fromwidening.
WithglobalproductsintheSUV andMPVsegments,Hyundai
believesit
hasthetechnologicaledgebutneedstocustomisetheproductforthe
country.IntheMPVsegment,thecompanyhasbeensellingtheSanta
FeSUV
inIndiaasacompletelybuiltunit.

Still,catchingupwithMarutiSuzuki
won'tbeeasy.Hyundai
sells30,000
36,000unitseverymonth,comparedtoMarutiSuzuki's85,00090,000units.
ThegapissettowidenasMarutipreparestolaunchatleastfournew
models.InSeptember,itreleasedthemidrangesedanCiaz.Itsaimisto
replicateacrossallsegmentsitssuccessinthesmallcarmarket.

HISTORY

HyundaiMotorIndiaLimited(HMIL)isawhollyownedsubsidiary
ofHyundaiMotorCompany,SouthKoreaandisthesecondlargestand
thefastestgrowingcarmanufacturerinIndia.HMILpresentlymarkets20
variantsofpassengercarsinsixsegments.TheSantroandPainthe
Bsegment,GetzPrimeintheB+segment,theAccentandVernaintheC
segment,theElantraintheDsegment,theSonataEmberaintheEsegment
andtheTucsonintheSUVsegment.
HyundaiMotorIndia,continuingitstraditionofbeingthefastestgrowingpa
ssengercarmanufacturer,registeredtotalsalesof299,513vehiclesin
calendaryear(CY)2006,anincreaseof18.5%overCY2005.Inthe
domesticmarketitclockedagrowthof19.1%acomparedto2005,
with186,174units,whileoverseassalesgrewby17.4%,withexportsof
113,339units.

MarketingStrategy

Objectives

FirstyearObjectives:Weareaimingfor5%marketshareoftheIndianmarketthrough
unitsalevolumeof100000.

SecondyearObjectives:Weareaimingfor10%marketshareoftheIndianmarket.

Animportantobjectivewillbetoestablishawellregardedbrandnamelinkedtoa
meaningfulpositioning.Wewillhavetoinvestheavilyinmarketingtocreatea
memorableanddistinctivebrandimageprojectinginnovation,qualityandvalue.Wealso
mustmeasureawarenessandresponsesowecanadjustourmarketingeffortsif
necessary.

TargetMarkets

HyundaiPasmarketingstrategyisdifferentiatedmarketing.Ourprimaryconsumer
targetismiddletoupperincomeprofessionalswhoneedtruevaluefortheirmoneyand
comfortablerideincityconditions.Oursecondaryconsumertargetiscollegestudents
whoneedstyleandspeed.

Ourprimarybusinesstargetismidsizedtolargesizedcorporatesthatwanttohelptheir
managersandemployeesbyprovidingthemacarforeaseoftransport.Oursecondary
businesstargetisentrepreneursandsmallbusinessownerswhowanttoprovidediscounts
tomanagersbuyinganewcar.

EachofthefourmarketingstrategiesconveysHyundaiPasdifferentiationtothetarget
marketingsegmentsidentifiedabove.

Positioning

UsingproductdifferentiationwearepositioningtheHyundaiPaasthemostversatile,
convenient,valueaddedcarmodelforabovetargetmarketused.Themarketingstrategy
willbefocusedonpromotingthecaraseconomiccarforthenextgeneration.

Strategies

Product

Hyundaipaisfullyloadedandwillbesoldwith3yearwarranty.Wewillalsointroduce
adiesel/CNG/LPGversionofHyundaiPainthenearfuture.Alsothehighendmodel
willhaveanoptionofGPSsystem.

Price

HyundaiPasbasemodelwillbeintroducedatexshowroompriceof3lakhs.Thisprice
reflectsastrategyof

1)attractingdesirablechannelpartners

2)TakingmarketsharefromMaruti.
Distribution

TheStockistwillrepresent3to4districtsinaState.

TheDealerwillrepresentadistrictormainCity.

TheSubDealershallrepresentaparticularareaortaluka.

Thebookingagentswillbeindividualsworkingonfreelancebasis.

MarketingCommunications

Byintegratingallmessagesinallmediawewillreinforcethebrandname&mainpoints
ofproductdifferentiation.Researchaboutmediaconsumption,patternwillhelpour
advertisingagencytochooseappropriatemediaandtimingtoreachprospectsbefore&
duringtheproductintroduction.Thereafter,advertisingwillappearedonapulsingbasis
tomaintainbrandawarenessandcommunicatevariousdifferentiationmessages.The
agencywillalsocoordinatepublicrelationeffortstobuildHyundaibrand&supportthe
differentiationmessage.Toattractmarketattention&encouragepurchasing,wewill
offeralimitedtime,registration&insurance.Toattract,retain&motivatechannel
partnersforapushstrategy,wewillusetradesalespromotionsandpersonalsellingto
channelpartner.

4.5MarketingMix

Product

Features:

TheallnewHyundaiPaisfullyloadedwitharangeofexcitingnewfeatures.It'sa
perfectcomplementtoyourevolvedtastesandlifestyle.Andthebestwaytotakeyour
drivingpleasuretoabrandnewhigh.EuropeanStyling.JapaneseEngineering.Dream
LikeHandling.

ThenewHyundaiPaisagenerationdifferentfromGetzandSantrodesign.Styledwitha
clearsenseofmuscularity,itsoneandahalfbox,aggressiveformmakesforalookof
stability,asensethatitispackedwithenergyandreadytodeliveradynamicdrive.

Itssolidlookiscomplementedbyanequallyrootedroadpresenceandclassdefiningride
quality.Newchassissystemsallowforthefrontsuspensionlowerarms,steering,and
gearboxandrearenginemountingtobeattachedtoasuspensionframe.Yougetlower
roadnoiseandagreaterfeelingofstabilityasyousailoverourroadswithfeathertouch
ease.

Price

HyundaiisexpectedtotakeMarutiheadsonwiththepricingoftheirupcomingHyundai
Pacar.Afterlaunchingcarsforthemassessincesomanyyears,Indiassecondlargest
automobilemanufacturerisnowtargetingthepremiumsegmentwiththeirlatestmodel
fromtheHyundaisstable.Theanalystspredictthepricingofthispremiumhunchbackto
startfromRs.3lakh.

ThispricerangewouldpracticallyripapartMarutisofferinginZenEstilo,whichis
pricedatahighertagofRs.3.5lakh.Boththecompaniesareknownfortheirvaluebased
offeringsandHyundaiwiththeirextensiveservicenetworkandbrandreputationfor
makingreliablecarsshouldgetthecustomersnodovertheircompetition.

Theofficialpricinghoweverisstillnotout.However,thecompanyissaidtobestudying
theprospectsoflaunchingthebasemodelatthe3lakhpricetag.

iftheyindeeddotakethechanceofpricingHyundaiataconsiderablelowerpricethan
ZenEstilo,theywouldquitelikelyforcethecompetitiontorethinktheirstrategy.

Promotion

RoadShows

Thecompanyplanstostageroadshows,todisplayvehiclesinthepavilionsduring
variouscollegefestivalsandexhibition.Thiscarwillappealtoyoungstersmore.

Televisionadvertisements

Advertisementstopromoteandmarketourproductwillbeshownonleadingtelevision
channels.Majormusicandsportschannelswillpromoteandtheywillreachouttothe
youthwillbepromotedthroughStar,Zee,SonyandDoordarshanetcasithasmore
viewers.

PRODUCTLIFECYCLE

Introduction

As a new product much time will be spent by the organization to create

awareness of it presence amongst its target market. Profits are negative or
low because of this reason.

Growth
If consumer clearly feels that this product will benefit them in some ways
and they accept it, the organization will see a period of rapid sales growth.

Hyundai stands on Growth Stage. As the sales of Maruti Zen Estillo is high
as compare to Hyundai Getz then the consumer will buy Hyundai Pa by
providing them with great benefits in future and they will accept it.

Maturity

Rapid sales growth cannot last forever. Sales slow down as the product
sales reach peak as it has been accepted by most buyers.

Decline

Sales and profits start to decline, the organisation may try to change their
pricing strategy to stimulate growth, and however the product will either
have to be re-modified, or replaced within the market.

SWOT
1. The company employs about 75,000 persons around the world.
2. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships
and showrooms worldwide
3. Hyundai sells over 1.5 million vehicles per year
4. Hyundai has excellent branding and advertising by having celebrity brand
ambassadors
5. Hyundai motor company has over 75,000 employees globally

WEAKNESS

Hyundai lacks cars for the ultra-premium segment

OPPORTUNITY

1. Developing hybrid cars and fuel efficient cars for the future
2.Tapping emerging markets across the world and building a global brand
3.Fast growing automobile market.

THREATS

1. Government policies for the automobile sector across the world

2. Ever increasing fuel prices
3. Intense competition from global automobile brands
4. Substitute modes of public transport like buses, metro trains etc.

PESTLES

Political: With the Korean President announcing that from 2008, government will
use green growth plan which is designed to use 22 new engine technologies
(Kim, 2008), which includes Fuel Cell. Considering the high levels of automobile
pollution, the government aims to combat this by introducing more green
technology and especially by incentivising the building up of more hydrogen-
refuelling stations. With Hyundai also being a member of California Fuel Cell
Partnership programme, it gets even more incentive and technology to go the
fuel-cell way.

ECONOMICAL

Economic: Korean economy is 97% dependent of foreign imports for energy and
per capita energy consumption has already crossed that of Japan and Germany
(Lee, 2008). With prices of conventional fuels rocketing, the government is
looking for green plan to reduce the traditional technologies with new ones,
thereby also increasing jobs of about 150,000 by about 2018 and reducing 8% of
petroleum consumption by then (Kim, 2008). It is common knowledge that eco-
friendly transportation would be the driving force of the economy and thus
Hyundais plans to go that way. It started in 1991 with producing Sonata electric
cars, started hybrid production in 1995 and plans to mass produce hybrids by
2009, increasing production eventually to 3,000,000 by 2015 (Hyundai Company,
2007).<br />Social: The Korean society has a traditional patriarch way of
performing business expressed by obedience and personal loyalty (Biggary and
Guillen, 1999). Hyundai is owned by this family system and in a need to survive,
it must change and bring in elements of meritocracy and this change is being
reflected in its strive for greener cars.

Technology

The Ministry of Education, Science, and Technology (MEST) and the Ministry of
Knowledge Economy (MKE) are the key players involving in Koreas fuel cell
Research and Development (R&D) project since 2004 (Lee, 2008). After two
years, they launched two aggressive monitoring projects for fuel cell vehicles so
that they can promote the hydrogen infrastructure by validating and
demonstrating for fuel cell cars and hydrogen refuelling stations at the same
time. Accordingly, due to the technology supports by government, Hyundai will
have fuel cell cars road tests in 2009 which is earlier than many car companies,
like Ford and Toyota.