Industry- Automotive

Company - Hyundai Motors

The Hyundai Motor Company, commonly known as Hyundai Motorsis a South
Korean multinational automotive manufacturer headquartered in Seoul.

ANALYSIS:
For creating both the matrix, these observations were taken into considerations:

HYUNDAI Sales Figures MARUTI Sales Figures Relative Market

Share

I10 151113 Swift 175928 0.85

I20 136182 Baleno 190480 0.71

Creta 107136 S-Cross 31860 3.36

Verna 36082 Ciaz 46169 0.78

Xcent 41339 Swift Dzire 196990 0.21

 BCG MATRIX:

High
Xcent,
Creta
Verna
Market growth

Tucson,
i10,i20
Elantra

Low Market Share High

  ANSOFF MATRIX

EXISTING PRODUCT NEW PRODUCT

EXISTING MARKET Xcent, Elantra, Tucson, Santro, Creta SUVs,B class cars

NEW MARKET Tucson, Xcent Sports Cars, Mini SUV,

ADVERTISING TACTICS- HYUNDAI MOTOR INDIA LTD.

TARGET GROUP
Middle and upper middle class/ newlyweds and family / major coverage- 25 to 45 years

(During the first launch in India- Santro- repositioned as sunshine car)

BEHAVIORIAL – singles & young couples (style, Innovative & early adaptors)
DEMOGRAPHIC – 21 TO 35 YEARS
GEOGRAPHIC – no specific cities

CONSUMER BEHAVIOUR
Need fulfilment prophecy (physiological need, safety and security need, social need),
Ethnocentrism,
Consumer innovativeness.

BRAND AMBASSADOR – Shah Rukh Khan

For greater appeal, Hyundai also showcases its cars at World premiere of cars- Paris Motor
Show

IMC STRATEGY - The idea of communication by Hyundai is to showcase the stories that
are built around the real moments and evoke emotions. The overall impression revolves
around nostalgia and emotional connect.
ATL Advertising (TV, MOVIES, SPONSORSHIP)
Movies- around 67 Hyundai cars were used in ‘Don2’ including car Santa Fe.
Santro was excessively promoted on TV by manifesting its features and customers’
responses.
SPONSORING- BCCI had been major sponsor

BTL (Print ads, road shows) – in rural areas, Santro was promoted by organising road
shows and providing test drives. Accent, on the other hand was promoted through
print media, since it was priced more and aimed at attracting specific kind of audience
appealed by higher value products.

ONLINE ADVERTISING
-Promotes through Google Ads
-Recently captured consumer behaviour of ethnocentrism and developed an advertisement
paying tribute to the Indian army. Hyundai encouraged consumers to share their experiences
on social media using hashtag #BrilliantMoments

USE OF EVENTS- advertises on different events to establish an emotional connect such as

on grandparents day, Diwali etc. Uses taglines like- First car, First choice for honeymooners.

Maruti Suzuki India Limited

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a 56.21% owned subsidiary of the Japanese car and motorcycle
manufacturer Suzuki Motor Corporation. As of July 2018, it had a market share of 53% of the
Indian passenger car market.

ANALYSIS

 BCG MATRIX:

Market Share
High Low
High
Celerio
Stars Question marks
S-cross
Swift Dzire
Baleno
WagonR, Swift

Growth Rate

Low
 Alto, Cash cows Dogs
Omni

Ciaz

Gypsy

Ansoff matrix

Existing Product New Product

Alto, WAGONR, SWIFT Celerio X, Alto K10 , Gypsy

Existing Market

Eeco Sports vehicles ( Kizashi ), private bus

New Market

ADVERTISING TACTICS- MARUTI SUZUKI

TARGET GROUP
Middle and upper middle class/ newlyweds and family / major coverage- 25 to 45 years

BEHAVIORIAL – singles & young couples (style, Innovative & early adaptors)
DEMOGRAPHIC – 21 TO 35 YEARS
GEOGRAPHIC – no specific cities
CONSUMER BEHAVIOUR
Need fulfilment prophecy (physiological need, safety and security need, social need),
Consumer innovativeness.

BRAND AMBASSADOR – Varun Dhawan, Ranveer Singh

IMC STRATEGY - Maruti Suzuki carries out its promotional strategy in 2 ways:

Above the line (ATL)

 TV, Radio
 Newspaper print ads (advertisements in newspapers by local dealers)
 Advertisements in magazines

Below the line (BTL) Promotions includes:

 Corporate display activities

 Exchange fair or Melas
 Loan and Rural Fair,
 Rural fair

.
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.in rural areas

ONLINE ADVERTISING
-Promotes through Google Ads

HYUNDAI’s COMPETITIVE ADVANTAGE

Some of Hyundai’s key competitive advantages are:

1. excellent technology and good quality products
2. Hyundai is known for its extraordinary manufacturing capabilities and global
presence.
3. It has an extensive and strong supply chain and distribution network. Its Ulsan plant
in South Korea is the single largest automobile manufacturing plant in the world. It
also has manufacturing plants in US, Brazil, Russia, China and India. Hyundai has
 built manufacturing plants worldwide for producing cars locally and to reduce the
costs of manufacturing
4. The brand has a large and varied product portfolio which caters to the needs of a
diverse customer base including customers from various income groups and tastes.
Apart from the passenger cars, small family cars and SUVs, the brand also makes
MPVs, eco-friendly cars and the Genesis brand cars. Elantra, Sonata, Santa Fe,
Tucson and Creta to IONIQ, Hyundai sells a very large range of highly popular
vehicles. This product portfolio is meant to suit the needs and purchasing ability of a
very wide customer base from those who want small cars for family use to those who
like luxury cars and SUVs.
5. One of the competitive advantages of Hyundai is its R & D centres which are situated
in the key regions and is helping the company to understand different markets &
changing customer preferences.

SUGGESTIONS

1. Hyundai should develop more of eco-free products. This can be done by introducing
electric cars which they are yet to introduce in the Indian market. The Indian
consumers today are growing increasingly conscious for the environment and any
product which is eco-friendly is likely to attract more customers.
2. Hyundai should re-position itself as a premium car brand or lower the cost of some of
its cars. Some of Hyundai’s products are priced towards the higher end to attract
upper class people. However, at the similar price, cars of various premium brands are
also present. For example, Hyundai’s Tucson is priced at around 25.09 lakhs (ex-
showroom) for its basic model, also Audi’s Q3 is priced at around 30 lakhs too,
similar is the price for Mercedes A class. So any customer willing to spend that
amount of money would rather spend it on Audi or Mercedes rather than spending on
Hyundai. One way through which they can achieve it is opening up of exclusive
stores, a concept similar to Maruti Suzuki’s Nexa, to position itself as a premium
brand.
3. Apart from the regular SUV’s, sedans and hatchbacks, MUV’s are also gaining
popularity in the market. Honda has introduced BR-V, Maruti Suzuki introduced
VitarraBrezza etc. Hyundai currently serves only Sedans, hatchbacks and SUV. Even
though more and more people are living in a nuclear family nowadays, they still
prefer cars which are “Big” or sort of SUV’s, i.e. a car which is somewhat bigger than
a hatchback but smaller than a full size SUV. Hyundai should try and enter into such
segments.
4. Hyundai should establish its service centres in tier 3 and Tier 4 cities. Currently they
have very few or no service centres in this part of India which results in people
preferring other brands over Hyundai. It is a common behaviour of Indian customers
that they base their decisions on buying a car if the service centre is present in their
region or not. If it is not, they won’t purchase that brand’s car.