Final Project by:

Neha Ali

1615122

BSMS-5A

IMC Elective

Integrated Marketing Communication Plan

Topic: Kia Motors

Table of Content:
1- Intro to KIA Motors

2- Objectives

3- Absolutica and its 5Cs

4- SWOT & PESTLE Analysis

5- Market Research

6- Market Plan

7- Market Communication & Digital Marketing

8- Marketing Mix
9- Budget & References

Introduction to KIA Motors:

From its humble beginning in 1944 at Seoul, South Korea (kia.co.uk, 2016), KIA Motors

Corporation has grown into a leading motor vehicle manufacturing in Korea (Market Line, 2015)

and now has a place in the world market. It now ranks 74 in Interbrand (interbrand.com, 2016)

together with winning Best value in America Award for its electric/hybrid car. Previously, it was

named Kyungsung Precision Industry which was later changed to its current name Kia Motors. It

is ranked at the second position as the largest manufacturer of automobiles in South Korea. KIA

is derived from Chinese characters meaning ‘to come out of Asia’ (Ki meaning arise or come out

and a referring to Asia).

The brand has targeted upper-middle and an upper class section of society as its target customers.

Some of its rival companies in consumer market are as follows:

- Nissan Motors

- Honda

- Toyota

Mission Statement:

Kia Motors vision is to blend cultures to become the best and most innovative automotive

company in the world by ensuring customer first and mutual prosperity of people. They believe

they can achieve their vision by creating the best in everything they do every day.

Objectives:

KIA believes in corporate vision of ‘together for a better future’. It strives to maximize value

creation and maintain a balance by the growth of shares for its shareholders by believing in
respecting people and processing the environment management. The key value of KIA is

‘Building a new future and realizing humanity’s dreams by thinking creatively and tackling

challenges head on’ (kia.co.uk, 2016).

KIA sets quality and car safety as long term goals. Its objective is to enhance both the economic

values and sustainability at the same time. Its effort is to minimize the environment impact of its

production process from product development to the final phase of manufacturing.

Range of Motors:

KIA manufactures a whole range of cars to suit all age and budget groups. Its product portfolio

includes trucks, SUVs and passenger cars. It has also produced military vehicles along with

transportation equipment and several variants. Kia Motors is an easily recognized brand because

of its distinctive, vibrant and reliable range of vehicles. For example: KIA manufactures Picanto

with a starting price of £8,545 to New KIA Sorento at £28,795 (kia.co.uk, 2016). The car ranges

from Estates to SUV, sports and luxury models.

Absolutica:

My report is based on KIA’s new product ‘Absolutica’. I shall draw the situational analysis

(comprising of 5 C’s and SWOT analysis to launch Absolutica in the American market) and the

Marketing plan (detailing the market segmentation, positioning, marketing mix and competitive

advantage).

Situational Analysis

Situational Analysis (smallbusiness.chron.com, 2016) is the first step towards the marketing plan

and helps to understand the internal and external environment of the market, the political and

economic factors surrounding the market, the strengths, weakness, opportunities and threats
related to the product. It further provides a better understanding of the customer, their needs and

demands and helps to create a long term relationship and also ultimately shape your strategies,

plan and tactics.

The 5 C’s of Absolutica:

The knowledge of the company’s own capability, customer’s needs and demands, prices and

products laid by the competitors, the availability of supplies of goods (for example: mechanical

parts, body parts, software), market share, shall help to launch the product successfully. This

leads us to the 5 C’s of marketing; Company, Collaborators, Customers, Competitors and

Climate.

Company:

Product line: Absolutica will be KIA’s own manufacturing brand (Jobber & Chadwick, 2013).

Absolutica will be a high end product and will fall in luxury car (Businesstoday, 2016) range.

Image in the Market: With a best value award in hand, I shall consider Absolutica to be in a

leading position when launched in the American market.

Goals: The goal would be to create a market for Absolutica in leading cities of America, thereby

expanding nationally and global market.

Collaborators:

KIA has a manufacturing plant in Georgia, US. The market for Absolutica is USA and a national

plant will enable easy of delivery and access of parts and services as and when needed between

dealers and the company. Considering the success of KIA, I consider the dealers will be proud to

stock Absolutica.
Customers:

The target customers are Americans. Customers have benefited in the past from KIA motors and

now have the benefit to have a luxury car being manufactured from their favorite and award

winning company.

Competitors:

To survive in a competitive market, it is not only important to understand the customers but also

the competitors. Absolutica will strive to exceed the customer satisfaction as compared to its

competitors (Jobber & Chadwick Audi, 2013). Absolutica will face direct competition from

Chrysler, Ford, General Motors, Hyundai, Saab and Volkswagen.

Climate:

The Climate of 5 C’s cover the macro-environment factor. It takes into account the political,

economic, social and cultural part of the market. I have discussed briefly the macro-environment

for Absolutica in the PESTLE analysis

SWOT Analysis for Absolutica:

Jobber et al (2013) define SWOT analysis as a structured approach to understand the current

position of the business by analyzing its strengths, opportunities, weakness and threats. The

SWOT analysis for Absolutica is:

Strengths:

- KIA motors have presence over 150 countries and have strong hold in the US and South Korea

market.

- It now appears in top 100 Interbrand listed companies (interbrand.com).

- One of the biggest strength of KIA motors is the 7-year warranty.

- KIA fulfills CSR in three fronts – social contributions, sustainable operations and business

ethics, under the leadership of the enterprise-wide Social Responsibility council (pr.kia.com).

Weakness:

- KIA Motors went bankrupt in 1997 due to Asian financial crisis and has been bought over by

Hyundai Motor Company which is still fresh in customer’s mind.

- Constant Recall of car every year either due to exterior lighting, steering fault or other.

- KIA is more popular among middle class customers and has yet to meet the high end

customers.

Opportunities:

- KIA has reported increased sales in US with 14.9% in 2012 and increasing steadily since

(kiamedia.com). It has topped 6% market share overtaking Nissan (kia-world.net).

- With the crumbling car market in Russia, KIA has used the advantage of low prices to become

the third largest car maker in the country (Reuteurs.com). Hyundai is planning to share its new

plant with KIA in India, giving KIA the opportunity to enter the India market (business-

standard.com).

- KIA has come a long way from being bankrupt to top 100 in Interbrand and increased market

share, KIA has opportunities to tap into the luxury car market. KIA intends to introduce luxury

cars by 2017 (content.usatoday.com).

Threats:

- Although KIA has emerged into international market, it lacks innovation and technology as

compared to German and Japanese car makers.

- The market is very competitive and KIA has continuous threats from Ford Motor, Honda

Motor, Mazda Motor, PSA Peugeot Citroen, Toyota Motor, Volkswagen, Daimler, Fiat Group

Automobiles, SsangYang Motor, General Motor, SAIC Motor and Suzuki Motor (Kia Motor

Corporation SWOT Analysis).

- With its Global operations, the company is always exposed to foreign currency exchange risk

with the high proportion of export sales. KIA has presence in 168 countries and any change in

the demand, refinancing conditions, fluctuating in currency rates can have major impact in

company’s earnings (Kia Motor Corporation SWOT Analysis).

I feel the SWOT analysis for Absolutica, crosses the strength and threats cell. KIA has managed

to have a global operation, 168 countries; the strength is now a threat from fierce competition.

The after sales-service and low prices are the major strong points of KIA, but by doing so, it has

deterred the high end customers and can turn this into an opportunity as soon as possible.

PESTLE Analysis for Absolutica

PESTLE analysis gives a product a better insight to launch in a new and existing market, while

taking into consideration the current environment of the market. I am considering to launch

Absolutica in few countries. I shall discuss the PESTLE to launch in American market.
Automotive industry is one of the largest industry in the world and is responsible for half of the

consumption of world oil.

Political

KIA has seen growth in the American market and with its launch of luxury cars, it will be

looking forward for all help and support possible from the elected President to keep thriving the

industry.

Economic

The economic factor of PESTLE plays an important role for Absolutica. It will be cautious of

economic factors of inflation rate, interest rate, exchange rate, economic growth and foreign

investments, government regulations towards car industry, the demand for cars and the impact of

export and import.

Social

Absolutica is created keeping in mind of the latest social trend and fashion. KIA has developed

car bearing in mind the budget related consumers. Absolutica is a stepping stone towards luxury

cars and capping the high end market.

Technological

After immense research and innovation, Absolutica is being created. It falls in line with its

competitors and will be one of the most sophisticated car in the industry. Absolutica intends to

mature in technology with time and will try and be ahead in the design and innovation.
Legal

Absolutica will comply with all the current, national, international and future legislations as laid

down by the government. It will ensure employees are given their rights and consumers rights

are not affected. Due consideration will be taken towards the taxation system of the country

avoiding money laundering and cars will be manufactured as per industry specific regulations.

Environment

Absolutica is very conscious of reducing carbon footprints. It will work parallel with

environment and ecological regulations and has plans to manufacture electric cars in future. It

will play an important role towards CSR and intends to start a charity

‘Absolute Environment’ with the intention of planting 2000 trees from

first year onwards.

Marketing Research:

Marketing research takes the immediate condition of the market and provides information of

customers likes and reaction to the product, price, distribution and promotion (Jobber &

Chadwick, 2013).

KIA has been targeting budget customers with its outstanding service and quality. It felt the

necessity of expanding its wings and through ad hoc research, retail audits, consumer panel and

website analysis by asking customers preferences and intentions, it felt the need to expand into
the luxury car market. This research helped shape market strategy, understand the potential of the

market by putting it into action, understanding the outcome and utilizing the results (Pettit,

2008).

Marketing Plan:

Marketing Planning is corporate strategy planning and takes into consideration all the aspects of

business functions (Jobber & Chadwick, 2013). At this stage, Absolutica is considering only one

market, i.e. one brand, one market. Although, there will be brand extensions based on models

and specifications.

Absolutica is at entry market stage and after careful marketing audit (Jacka, 2015), for the

success of Absolutica, I suggest to read further the segmentation, brand positioning, increasing

brand equity, marketing mix, marketing communication and competitive advantage. The

marketing audit was done by understanding the customer, making the right product, recognize

and deal with the competitors and adding value to the product (jacka, 2015).

STP

KIA Absolutica Market Segmentation

Based on the research I would propose to divide the market into three segments.

- Behavioral: This segment would form the base of the Absolutica. The key is to target
customers who look out for innovative products and want to be the first ones to get their hands
on the product, in our case Absolutica car. We then have customers who make purchases for the
pleasure and comfort and to be able to show their hands on the latest model. Apart from this, we
can also segment to the customers who already have KIA models and want to upgrade to the
latest model.

- Psychographic: There are customers who prefer luxury cars and it is part of their life.

Although, KIA is new in the luxury car market, it can target and segment those customers who

have always sought high end cars.

- Profile: As it is luxury car, the demographic variable will be 35 plus age customers ranging

from Head managers to directors. Geographically, I would propose to launch the product where

Kia already holds the market. This would help ease of help with brand loyal customers.

The target market of Absolutica will be countries with high Kia users. That would be USA to

start with followed by South Korea.

Targeting Strategies for Creating / Increasing Brand Equity

Absolutica will be known as the car with outstanding luxury features. Crisp metallic finish,

heated leather seats, polish wooden interior, state of art technology will be the main features

which will make Absolutica an absolute luxury car. The slogan will also be changed from ‘Power

to surprise” to “Drive with Comfort and Luxury” to target the upper middle and high end

customers.

The brand Absolutica will stand out and differentiate with other brands. It shall bear the 4-cs of

successful positioning; clarity, consistent, credibility and competitive (Jobber & Chadwick,

2013).

Clarity as in the brand will go with the slogan of Drive with Comfort and Luxury. The target

markets are currently countries with high Kia sales, USA and South Korea.
Absolutica will maintain its consistency. The quality and especially after sales service will not be

compromised. Kia has a 7-year warranty and will continue to provide this to Absolutica brand.

Although ‘The Power to Surprise’ slogan will be replaced by the current slogan to go with the

brand.

The brand will be competitive in terms of pricing. Absolutica has everything to offer in terms of

modern cars, yet with good price and 7-year warranty. This will help Absolutica stand out.

The credibility of the brand will grow over time as customers will realize it is indeed a car for

comfort and luxury.

Positioning of Absolutica

One of the first steps to position strategy for Absolutica is to get the credibility and make an

impact on customer’s memory. I would recommend to follow six stages;

- Know your competitors.

- Establish how the competitors are perceived and evaluated.

- Establish the position of competitors.

- Analyse the customers.

- Position – Select.

- Position – Monitor.

It is important to know the competitors. Absolutica is priced at the range of $ 25,000 to $35,000

and is ready to compete with the leading brands in USA including Audi, Hyundai, Saab and
Volkswagen and others such as Chrysler, Ford, General Motors. It will be important to

understand their approach to the market, their current positioning, analyse their customers to be

able to target our customers accordingly and then select and monitor Absolutica position.

Once we have managed to step in the market, I would propose Absolutica to stay in limelight by

regular advertisements in TV, social media, hoardings, auto shows.

Advertisements: Advertisements will highlight the importance of the car being environmental

friendly and the way the car is manufactured to get the customers a feel of how there is

manufactured and how it impacts the environment.

Auto / Trade Shows or sales promotion: Special Guest passes will be sent to current KIA

customers, customers who express interest in Absolutica and other high end users to get a look

and test drive the car. This will help in increasing brand loyalty too.

CSR: To ensure Absolutica gives back to the community, a charity will be established, namely

‘Absolute Environment’. The aim of Absolute Environment will be cleaner and greener

environment, for smart cities and will plant 2000 trees a year at different locations round the

world.

Customers will be able to link Absolutica as a Functional and Representative needs. Functional

in terms of the actual brand as being able to match with other luxury brands, yet competitive with

the price and able to provide the comfort. Representative in terms of able to understand the

impact to the environment and taking measures to work for the global environment. The

advertisements featuring the car being manufactured, the charity work of Absolute environment

will also make customers feel proud of the brand.

Marketing Communication and Digital Marketing of Absolutica

To market Absolutica, I shall recommend to use internal marketing, face-to-face, digital

marketing and content marketing.

Members of Staff, suppliers, dealers, stakeholders, regulators form part of internal marketing. A

special night can be organised or internal memo can be distributed to inform about Absolutica.

Exhibitions, trade shows, special invitations, expo day, opening days would give Absolutica

opportunities to meet potential customers face-to-face.

In the electronic age, Absolutica will not be left behind and will take advantage of digital

marketing and social media. It is believed that digital technology will surpass all areas of

marketing communications and traditional marketing (Jobber & Chadwick, 2013)

The promotional tools used to launch Absolutica:

- Search engines and advertising in the net.

- 360degree marketing giving customers to customise their cars online. For example: change the

colours of car or add a specification such as choice of fabric or leather of the interior of the car.

- Use of e-WOM (word of mouth) (LEVY & Gvili, 2015). For example: portraying Absolutica in

animation as more comfortable than the living room.

- Mobile marketing and e-mails by sending regular updates and offers to subscribed customers.

- Profile targeting customers through social media. For example: using sponsored ad in Facebook

to pass the information and creating a topic of conversation in Twitter.

Content marketing (Baltes, 2015) will be used extensively to give customers a chance to know

more about Absolutica. This will be done by giving options in printed magazines and providing

links while e-marketing and using social media.

Marketing Mix – Absolutica

Customers have become less responsive towards traditional marketing approach and with the

advent of social media, it is necessary and important to have a proper blend of marketing mix for

‘Absolutica’.

Product:

At KIA we have created ‘Absolutica’ a high end luxury car for comfort and style.

Absolutica will provide the superior, quality driving experience. It will be available in both

petrol and diesel fuel providing maximum mileage per gallon (60 miles’ / gallon city drive)

starting from 2 litre to 4 litre engine size.

Absolutica is an intelligent car that understands the adverse weather conditions and adjusts itself

with brakes, speed and balance. It will be extremely agile to sudden road conditions of potholes

and ramps to minimise the damage to suspension and body.

Leather seats, wood carved interior, glass holds, built in sat-nav and Bluetooth, cruise control,

auto door lock, sun-roof, spacious boot, arm rest, bose speakers, Absolutica is designed for

comfort and take away the tiredness.

Price:

Price is not set in isolation and needs to blend in with product, place and promotion, so as not to

overcharge or undercharge. Absolutica would be priced from $25000 to $35000.

I would consider market-oriented pricing for ‘Absolutica’. The factors, I would consider are;
Marketing Strategy, Value to the Customer, explicability, Competition, Effect on dealers and

cost.

Marketing Strategy: As it is a new product, the first step would be to consider the positioning

strategies and use the new launch product strategy. I shall consider ‘Rapid Penetration’ with a

combination of low price, high promotion, product and place.

The conditions to use the low price strategy is to penetrate the market and mark the dominance

over time. KIA has built a reputation of more budget cars targeting middle-class customers.

Based on this fact, I would not suggest to charge high prices, as customers will not favour the

product and will compare Absolutica with its high end successful competitors. Low prices will

also increase the sales output, thereby gaining market confidence, lift the barrier to entry the

market and KIA can work with the idea of making money later.

Competition: Absolutica will keep a close a track of its competitors. It will compete positively

and comfortably with its outstanding product, sophistication, technology, knowledge, comfort,

luxury and value as compared with its immediate and linked competitors.

Effect on dealers: This is very crucial part of the orientation. Absolutica will be sold mostly

through dealers and with its low price to penetrate the market, the dealers might have to

compromise with low margin profit. However, this can be dealt by maintaining good relations

with the dealers, and giving out higher margin on other models.

Promotion:

Absolutica will implement a successful integrated marketing communication with its customers

by understanding the opportunities in the market and capturing the market accordingly. Hence,

the comfort and luxury of Absolutica will be analysed and based on the product positioning,
customers will be targeted with the message accordingly. For example: A campaign will be

drawn to achieve the communication objective by linking the comfort of bedroom to that of

driving the car. This can be done through creative agency and other similar providers. The

agency will provide and come out with simple, creative and effective message.

Tools: Tools used to promote Absolutica will be mass, direct and digital. For example:

Billboards, advertisements, sales promotions at launch are some of the mass communications

that will be used. Direct communication can be done at exhibitions, sending invitations to current

KIA customers, informing customers about launch of Absolutica when passing through

showroom. Digital Communication is the newest and most effective way of communicating with

customers. Twitter chats, Facebook sponsored advertisement and pages, websites, emails form

part of digital communication.

Place:

Ensuring the channel of distribution and reaching the customer, is the Place of Marketing Mix.

Absolutica will use the Manufacturer – Dealer – Consumer channel. This will help the customers

to approach the dealer, test drive the car, get their queries answered and make the purchase. The

Channel strategy would be on market factors, exclusive distribution and Franchising.

Market Factor: As Absolutica is a KIA brand, buyer will prefer to get the best knowledge and

information through their dealer. As the dealer will specialise on KIA models and exclusively on

Absolutica, spare parts and after sales service will also be provided to the customers.

Exclusive Distribution: One dealer will be established in a given city and town. This however

depends on the population on per square mile / kilometre and the demand for other models of

KIA. For example: New York city.

Franchising: Channel integration will take place through Franchising. KIA to Dealers. All help

and support including training, regular periodicals, information and knowledge will be provided

to the dealers as per the manufacturer and dealer agreement and terms and conditions.

The Franchises will be managed by careful selection, training, motivation and evaluation from

time to time and conflicts resolved swiftly. The manufacturing plant of KIA is in Georgia, USA,

which gives the flexibility of distribution.

Budget Plan:

Income statement of Kia Motors

Fiscal year is January to December: All values are in million.

Sales/Revenue:

2015: 49.52

2016: 52.71

2017: 53.54

Cost Revenue:

2015: 39.67

2016: 42.29

2017: 44.59

Net Income:
2015: 2.63

2016: 2.75

2017: 2.94

When compare to the budget of 2015, 2017 and 2017, it is forcasted that Kia sales would

increase in 2018 aswell.

Conclusion of Marketing Mix

Absolutica is made after careful research, customer requirement and in competition with other

brands. The slogan ‘Drive with comfort and luxury’ does go with the product. Care is taken with

the price to be able to penetrate the market and providing value to the customers. Different tools

to reach the customer, including use of social media and promotions are given utmost

importance. It is also ensured that products are available on demand and customers are able to

test drive Absolutica before the purchase. The People involved with the Absolutica, the

showroom and interior, the whole experience of buying ‘Absolutica’ is designed to be

exceptional. All this definitely creates effectiveness of the product. The success can be measured

through social media, enquiries for the product, purchase and demand of the product. The critics

and reviews will also form a good source to measure the success of the product.
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