General Management Project on

“A STUDY OF GENERAL MARKETING STRATEGIES OF

HYUNDAI INDIA PVT LTD ”

Submitted in partial fulfilment for award of the degree of

Masters of Management Studies (MMS)
(under University of Mumbai)

Submitted By
Ketan Vitthal Bhole
(Roll. No. 31581603)

Under the guidance of

Prof. Saumyabrata Nath

2016-2018
Pramod Ram Ujagar Tiwari
Saket Institute of Management

1
 CERTIFICATE
This is to certify that project titled “A Study of Initiative Taken by Government for
Entrepreneurship in India” is successfully completed by Mr. Ketan Vitthal Bhole during the
IV semester, in partial fulfilment of the Masters Degree in Management Studies recognised
by University of Mumbai for the Academic Year 2018-2019 through Pramod Ram Ujagar
Tiwari Saket Institute of Management.

This project is original and not submitted earlier for award of any degree, diploma or
associateship of any other university or institute.

Name: Prof. Saumyabrata Nath

Date: (Signature of the Guide)

2
 DECLARATION
I hereby declare that this Project Report submitted by me to Pramod Ram Ujagar Tiwari
Saket Institute of Management is a bonafide work undertaken by me and it is not submitted to
any other University or Institution for award of any degree, diploma/certificate or published
any time before.

Name: Ketan Vitthal Bhole

Roll. No. : 31581603 (Signature of the Student)

3
 Acknowledgements
The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not
forget to thank them.

I respect and thank Mr Saket Tiwari , for providing me an opportunity to do the project work
in Saket Gyanpeeth and giving me all support and guidance which made me complete the
project duly. I am extremely thankful to him for providing such a nice support and guidance,
although he had busy schedule managing the corporate affairs. I also thank Mrs. Shobha Nair
the C.E.O of Saket Gyanpeeth.

I owe my deep gratitude to my project guide Prof. Saumyabrata Nath, who took keen interest
on our project work and guided me all along, till the completion of our project work by
providing all the necessary information.
I am thankful to and fortunate enough to get constant encouragement, support and guidance
from all Teaching staff and Director Sanoj Kumar of Pramod Ram Ujagar Tiwari Saket
Institute of Management who helped me in successfully completing my project work.

4
 Table of Contents

Chapter Headings Page No.

Number
1 Introduction 9
2 Review of Literature 18
3 Methodology 19
4 Results 23
5 Discussion 25
6 Conclusion 28
7 Bibliography/References 30
8 Appendices _

5
 1. INTRODUCTION

In today’s competitive era the word ‘Strategy’ is very crucial for all business organizations.
Presently organizations started realizing that customer centric and aggressive marketing
strategies plays vital role to become successful leader. Though globalization has opened the
doors of opportunities for all, the market is still crowded with some unknown risks and lot of
competition. Because of this competition, a marketing strategy must aim at being unique,
differential-creating and advantage-creating.

To obtain unique and differential advantage, an organization has to be creative in its

marketing strategy. Today due to innovative marketing strategies Hyundai has become the
leading & largest seller of automobiles in India. Company has adopted various Brand
positioning, Advertising, Distribution strategies to capture the market. Hyundai few unique
promotional strategies include Teacher Plus Scheme, 2599 scheme, Change your life
campaign. The objective of this paper is to focus on various marketing strategies of Hyundai
India Ltd.

The Indian auto industry is one of the largest in the world. The 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 the 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 April-March 2016, overall automobile exports grew by 1.91 per cent. PV,
Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent,
16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015.*
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 2W and Four Wheeler (4W)
market in the world by 2020.

6
Market Size

The sales of PVs, CVs and 2Ws grew by 9.17 per cent, 3.03 per cent and 8.29 per cent
respectively, during the period April-January 2017.

Investments

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$ 15.79 billion during the period April
2000 to September 2016, 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:

 Electric car maker Tesla Inc. is likely to introduce its products in India sometime in
the summer of 2017.

 South Korea’s Kia Motors Corp is close to finalising a site for its first factory in India,
slated to attract US$1 billion (Rs 6,700 crore) of investment. It is deciding between
Andhra Pradesh and Maharashtra. The target for operationalising the factory is the
end of 2018 or early 2019.

 Several automobile manufacturers, from global majors such as Audi to Indian

companies such as Hyundai and Mahindra & Mahindra, are exploring the possibilities
of introducing driverless self-driven cars for India.

 BMW plans to manufacture a local version of below-500 CC motorcycle, the G310R,

in TVS Motor’s Hosur plant in Tamil Nadu, for Indian markets.

 Honda Motorcycle and Scooter India (HMSI) has inaugurated its 900th Honda
Authorised Exclusive Dealership in India, thereby taking its total dealership network
to 4,800 across the country and further plans to increase its network to 5,300 by end
of 2016-17.

 Hero MotoCorp Ltd seeks to enhance its participation in the Indian electric vehicle
(EV) space by pursuing its internal EV Programme in addition to investing Rs 205

7
 crore (US$ 30.75 million) to acquire around 26-30 per cent stake in Bengaluru-based
technology start-up Ather Energy Pvt Ltd.

 JustRide, a self-drive car rental firm, has raised US$ 3 million in a bridge round of
funding led by a group of global investors and a trio of Y Combinator partners, which
will be utilised to amplify JustRide’s car sharing platform JustConnect and Yabber, an
internet of things (IoT) device for cars that is based on the company’s smart vehicle
technology (SVT).

 Ford Motor Co. plans to invest Rs 1,300 crore (US$ 195 million) to build a global
technology and business centre in Chennai, which will be designed as a hub for
product development, mobility solutions and business services for India and other
markets.

 Cummins has plans to make India an export hub for the world, by investing in top
components and technologies in India.

 Suzuki Motor Corporation, the Japan-based automobile manufacturer, plans to invest

Rs 2,600 crore (US$ 390 million) for setting up its second assembly plant in India and
an engine and transmission unit in Mehsana, Gujarat.

 Mr Masayoshi Son, Chief Executive Officer, SoftBank Group, has stated that Ola
Cabs may introduce a fleet of one million electric cars in partnership with an electric
vehicle maker and the Government of India, which could help reduce pollution and
thereby transform the electric mobility sector in the country.

 China’s biggest automobile manufacturer, SAIC Motor, plans to invest US$ 1 billion
in India by 2018, and is exploring possibilities to set up manufacturing unit in one of
three states – Maharashtra, Andhra Pradesh and Tamil Nadu.

 Suzuki Motorcycle India Pvt Ltd has started exports of made-in-India flagship bike
Gixxer to its home country of Japan, which will be in addition to current exports to
countries in Latin America and surrounding countries.

 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.

8
  FIAT Chrysler Automobiles has recently invested US$280 million in its Ranjangaon
plant to locally manufacture Jeep Compass, its new compact SUV which will be
launched in India in August 2017.

Government Initiatives

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 plans to introduce a new Green Urban Transport Scheme
with a central assistance of about Rs 25,000 crore (US$ 3.75 billion), aimed at
boosting the growth of urban transport along low carbon path for substantial reduction
in pollution, and providing a framework for funding urban mobility projects at
National, State and City level with minimum recourse to budgetary support by
encouraging innovative financing of projects.

 Government of India aims to make automobiles manufacturing the main driver of

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

 The Government plans to promote eco-friendly cars in the country i.e. CNG based
vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 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 induction of reliable, affordable and efficient
electric and hybrid vehicles in the country.

Road Ahead

India’s automotive industry is one of the most competitive in the world. It does not cover 100
per cent of technology or components required to make a car but it is giving a good 97 per
cent, as highlighted by Mr VicentCobee, Corporate Vice-President, Nissan Motor’s Datsun.

9
Leading auto maker Hyundai expects Indian passenger car market to reach four million units
by 2020, up from 1.97 million units in 2014-15.

Mr Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a
key market for the company, not only in terms of volumes but also as a hub of small products
for exports to 92 countries.

Mr Joachim Drees, Global CEO, MAN Trucks & Bus AG, has stated that India has the
potential to be among the top five markets, outside of Europe, by 2020 for the company,
which is reflected in the appointment of its most experienced managers to India for increasing
volumes and exports out of India.

The Indian automotive aftermarket is estimated to grow at around 10-15 per cent to reach
US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate
up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and
contribute over 12 per cent to India’s Gross Domestic Product.

According to Mr Guillaume Sicard, president, Nissan India Operations, the income tax rate
cut from 10 per cent to 5 per cent for individual tax payers earning under Rs 5 lakh (US$
7,472) per annum will create a positive sentiment among likely first time buyers for entry
level and small cars.

The automobile manufacturing industry in India dates back to 1948. At that time there were
just three companies manufacturing passenger cars i.e. Premier Automobiles in Mumbai,
Hindustan Motors (HM) in Kolkata & Standard Motors Products India in Chennai. In early
years the Indian automobile Industry faced several challenges and road blocks to growth
because in those days automobile manufacturing was subject to restrictive tariff structure,
strict licensing and limited avenues for expansion.

Due to lack of competition initially the prices of cars were extremely high. And the customers
had to wait for a long period of time for car. Before Independence India was considered as a
market for imported vehicles. In the 1950s the arrival of Tata Motors, Mahindra & Mahindra

10
& Bajaj Auto led to steadily increasing vehicle production in India. In 1953 the government
of India and the private sector launched efforts to create an automotive component
manufacturing industry to supply to the automobile industry.

By the end of 1970s, significant changes in the automobile industry were witnessed. After
1970 the automobile industry started to grow, but that growth was mainly driven by scooters,
tractors and commercial vehicles.

In 1983, the government of India made a tie-up with Suzuki Motor Corporation of Japan to
manufacture low-cost cars in India. The Hyundai800 which is still known rolled out the
factory of MarutiUdyog Limited in December 1983 and changed not just India‘s automobile
industry but also the way people commuted and travelled. In 1990s through liberalization
initiatives India opened its gates for all the countries and in 1993, the government followed
up its liberalization measures with noteworthy reductions in the import duty on automobile
components.

Today the Indian automobile market has a mix of large domestic automobile players like Tata
Motors, Mahindra & Mahindra, Bajaj, Hero Motocorp, Ashok Leyland and major
international giants including Suzuki, Honda, BMW, Audi, DaimlerChrysler, Volvo,
Hyundai, Toyota, Nissan, General Motors and Ford etc.

In today’s competitive era the word‘Strategy’ is very crucial for all business organizations.
Presently organizations started realizing that customer centric and aggressive marketing
strategies plays vital role to become successful leader. Though globalization has opened the
doors of opportunities for all, the market is still crowded with some unknown risks and lot of
competition. Because of this competition, a marketing strategy must aim at being unique,
differential-creating and advantage-creating. To obtain unique and differential advantage, an
organization has to be creative in its marketing strategy. Today due to innovative marketing
strategies Hyundai has become the leading & largest seller of automobiles in India. Company
has adopted various Brand positioning, Advertising, Distribution strategies to capture the
market. Hyundai few unique promotional strategies include Teacher Plus Scheme, 2599
scheme, Change your life campaign. The objective of this paper is to focus on various
marketing strategies of Hyundai India Ltd.

11
PROFILE OF HYUNDAI INDIA LIMITED

Hyundai has been the leader of the car market for over two decades. Hyundai revolutionized
the industry and put a country on wheels. Since inception Hyundai is credited with having
catalyzed and led the modernization of the Indian passenger car industry. Over its 26 years of
journey. Hyundai transformed itself from a successful Public Sector Company (PSU) to a
vivacious and listed MultiNational Company (MNC), sustained its leadership position and
remained profitable despite tough competition. In October 2, 1982 the company signed the
license and joined venture agreement with In the year 1998 the company started their
productions and launchedIn the year the company forayed into the foreign market by
exporting . In the year 20015 company launched world strategic car model popularly known
as creta which hit the Indian car market. The core values of company include: Openness and
learning Innovation and Creativity Fast, Flexible and First mover Customer Obsession
Networking and Partnership Currently HYUNDAI offers many brands which include.
HYUNDAI has a market share of 12.3% of the Indian passenger car market as of March
2017. Today HYUNDAI has built a strong sales network of 2600 outlets spread over 240
towns and cities.

Improved product mix drives topline beat

MSIL’s adjusted revenue, at INR17bn (up 8.5% YoY), was 2% above our INR16bn estimate
and reflects benefits of an improving product mix, which drove 4% YoY increase in average
vehicle realisations to ~INR438K. Adjusted EBITDA margin at 14.0% (flat QoQ) was below
our 14.8% estimate as impact of higher input costs and discounts was only partially offset by
better mix and cost reduction efforts. Adjusted PAT at INR7bn (up 14% YoY) was 5% below
our estimate due to higher tax rate.

Market share gains to sustain; better mix to lower discounts

The company remains well placed to gain market share given structured new launch pipeline,
expanding distribution and shift in consumer preference to petrol variants (~70% volumes for
MSIL). An improved product mix (higher share of I10 AND I 20-) is likely to support margin
by lowering average discounts. In our view, weakening competitive intensity and macro

12
recovery should help lower discounts for older models as well, which will drive margin
improvement.

Outlook and valuations: Dominance to sustain; maintain ‘BUY’

Long waiting periods for key products, a structured launch programme, superior franchise
and solid financials (10% FCF to sales, RoE of ~23% in FY19E) are likely to enable MSIL
sustain premium valuations. We maintain ‘BUY/SO’ and value the stock at 27x FY19E core
EPS and assign cash/share of INR1,348 to arrive at target price of INR8,705. At CMP, the
stock trades at FY19E PER of 22x.

Demand environment

• MSIL continued to gain market share with volume growth of 14.3% YoY versus industry’s
4.4%.

• Consumer preference continued to shift in favour of petrol cars. Share of petrol models was
71% and 62% for MSIL and industry, respectively.

• GST impact:
From July 1, MSIL passed on lower rates post GST regime.
During Q1FY18, margins were impacted on account of dealer compensation (~50bps) and
higher sales promotions to clear inventory prior to GST (~30bps). These are netted off from
revenue.

Retail volumes in June were high (pre-buying ahead of GST). Though volumes in initial part
of July were slow, things are gradually picking up.
GST impact varies from state to state and MSIL believes it is too early to assess the impact
on exchange buyers and used car sales.

• Fleet sales: Moderation in fleet sales during Q1FY18 (5% volumes).

• Customer profile: Share of first-time buyers jumped to 50% during Q1FY18 (from 44% in
Q4FY17).

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• Strong response for new models continues. CRETA , I20 have waiting periods of 4and 6
weeks, respectively.

Exports

• Maintained volume outlook of 85K units for FY18.

• Focus markets include Indonesia, South East Asia, Chile and Bolivia.

Margin

• Margin was impacted by higher commodity costs and higher sales promotions, offset by a
better product mix and ongoing cost reduction efforts.
• Commodity costs inched up marginally QoQ; but MSIL expects commodity prices to
remain largely steady going ahead.
• Royalty payout for the quarter was INR8,860mn (5% of revenue).
• Average discount for Q1FY18 was INR16,600 (3.7% ASP). In our view, discounts on older
models continue to remain high at 5.2% ASP (up 30bps YoY, 70bps QoQ).
• Import content: Share of direct and indirect imports at around 16-17%.
• Higher staff costs during the quarter include seasonal impact of wage revision.

Capacity

• FY18 capacity includes 1.5mn units (from Manesar and Gurgaon) and incremental 15K
units from Gujarat plant.
• In Q1FY18, 24,00 units were produced in Gujarat plant. Capacity is ramping up and should
be able to operate at full capacity towards FY18 end.
• Over the next 2-3 years, vendors will start moving in Gujarat and almost all models will be
made there. MSIL will also get benefit of higher localisation and economies of scale.

Others

• Targets FY18 capex of INR5bn (new products, R&D, maintenance capex ). Q1FY18 capex
was ~INR9bn.
• Other operating income was higher led by write-back of excess provision of ~INR850mn.

14
• Tax rate for the quarter was higher due to creation of deferred tax liability given change in
inflation index. Expects sustainable tax rate of 27-28% going forward with lapse of
investment allowance and lower R&D benefits.
• High other income: Largely to do with interest rate reduction.

Company Description

HYUNDAI manufacturer with ~12.3% market share. The company is a key player in the
mini and compact cars segment with dominant market share and has enjoyed success in the
executive segment as well post launch of CRETA.Hyundai offers the widest product range in
passenger cars with special focus on compact car segment.

Investment Theme

Hyundai remains well placed to sustain market share gains given its robust new model launch
pipeline, relatively weak competitive intensity, expanding distribution and consumer shift to
petrol models (stronghold for Hyundai). Improved product mix (higher share of CRETA)
should help boost realisations and margins by lowering average discounts. We believe the
long waiting period for key models, superior franchise and robust free cash flow generations
will help sustain premium valuations.

Key Risks

Capacity constraints: Hyundai’s capacity addition program is fairly structured with ~250K
blocks. Currently, Hyundai is in a sweet spot due to waiting period for many of its existing
models and structured product cycle. This makes us believe that MSIL will face capacity
constraints in case of sharp demand recovery. Larger engine offerings: Hyundai’ has yet to
demonstrate its success with higher CC engines (upwards of 1.6 litres). With expansion of
executive segment, we believe it become imperative for Hyundai’ to address the product
portfolio gap.

15
 2. REVIEW OF LITERATURE

Sumit Jain &Dr.R.K.Garg, in their research paper described about current scenario of
automobile industry and challenges facing by Industry. They pointed that, the companies
have to shorten product lifecycles in order to react to the expectations of individualize and
fast changing consumer demands with innovative products, and the integration of strategic
partners with more responsibility into the value chain should be intensified.

Exim bank‘s occasional paper highlighted that the global financial meltdown of the year 2008
has created a precarious condition across various sectors, which has forced countries and
industries to take a fresh look at their future strategies. The paper also pointed out that the
Indian automotive industry holds significant scope for expansion, both in the domestic

16
market, where the vehicle penetration level is on the lower side as compared to world average
and in the international market, where India could position itself as a manufacturing hub.

RajkumarGautam&Sahil Raj, in their research paper depicted the scenario of automobile

sector of the world and India. In their paper they have investigated that the globalilzation
process has affected the sector in all the areas of manufacturing, sales, personal research &
development and financing. They also concluded that, in order to meet the challenges posed
by globalization the Indian automobile manufacturers need to ensure the technological
advancement, appropriate marketing strategies and adequate customer care feedback system
in their organizations.
P Krishnaveni in her article focuses on the current details and some future plans of Hyundai.
The article also highlighted the various innovation of company like introduction of Electronic
power Steering (EPS), introduction of superior quality of 16*4 hypertech engines

METHODOLOGY

Population

The population comprises of all passenger car manufacturer of Delhi –National capital
region, all chassis suspension system suppliers and their sub supplier. In Delhi-National
capital region, we have two car manufacturer named Hyundai’ and nissan .Hyundai has two
plant in Delhi-National capital region located at Gurgaon and Manesar. Car also has two
plant in Delhi –National capital region located at Noida and Tapukara . In Delhi-National
capital region there are total four chassis suspension system manufacturer named Gabrial,

17
BWI automotive ,Technico, Munjalshowa and their sub supplier called tier 2 supplier are in
total termed as population

Sample Size
Hyundai car manufacturer in India having 12.3% of market share where as Honda car having
market share only 3.6% ( source report of Society of Indian automobile manufacturer).
Therefore we include only Hyundai in our sample . All four chaises suspension systems
supplier of Hyundai taken as sample and 70% of their sub supplier taken into consideration as
sample The sample set comprises inputs from employees working in supply chain
management at the level of executive, manager and Head of supply chain department,
similarly executive manger & head of automation department of original equipment
manufacturer and chassis suspension system supplier. Representative and plant heads of sub
supplier and also included in some consultants and academic expert of subject Total sample
size will be more 50 respondents.

Sample selection

Our sample size has respondents from original equipment manufacturer and then their
supplier as chassis suspension system manufacturer called tier 1 and their sub supplier called
tier 2. Since every sample has non zero probability of selection . Respondent categories based
on their designation . So sampling techniques will be used as probability stratified sampling.
For sub supplier we had taken 70% of total population and selection will be done randomly.
Therefore sampling technique for sub supplier will be probability random sampling

Sources and Methods of Data Collections

The primary data will be collected from Hyundai and its chassis suspension supplier’s
employee through questionnaire survey. This survey will take place on line (electronics),
delivery and collection of printed .somewhere specially for top management face to face
interview will take place . It include both close ended and open ended question as well as by
interviewing and cover the employees of supply chain and automation department of
passenger car manufacturer and their chassis suspension system supplier plants. For
consultant and academic expert and Plant heads , head of department unstructured and open

18
ended questionnaire will be part of data collection. Secondary data will be collected from
various books on supply chain management automation, research article in journals,
periodicals, topic on automation in magazines, report of committees, published research
reports of automobile industry and supply chain automation and websites, etc.

Validity and Reliability

Statistics has three methods to check reliability or repeatability of a survey named Test
Retest, equivalent form and internal consistency. In this research first piloted questionnaire of
small group of 30 respondents will be analyzed and we shall follow concept of test –Retest
for validity and reliability.

Role of Research in Decision Making

Decision-making is the process of selecting the best alternative from the availableSet of
alternatives. Management is chiefly concerned with decision-making and its implementation.
These decisions should be based on appropriate studies, evaluations and observations. This
research provides us with knowledge and skills need to solve the problems facing in
automation of supply chain management and to meet the challenges of a fast-paced Decision
Making environment. It will enable top management to take appropriate decision in short
span of time with data available at their desk thereby save time and energy.

19
RESULT

PERFORMANCE OF Hyundai

A. The Sales trend of Hyundai from year 98 to 16 is :

20
 Fig 1, Source: CMIE Prowess Database (97-2007)
(Rs.in Crore)

From the above pie chart it is observed that in the March 2016 Hyundai‘s sales was 21221
Crore which is 21.55 % more than March 2007

B. The Industrial Sales trend of HyundaiSuzuki from year 97 to 2016 is :

21
 Fig 2, Source: CMIE Prowess Database (97-2007)
(Rs.in Crore)

As observed in the above chart it is revealed that the Industrial sales grew for the period
Mar 04 to Mar 08. The Industrial sales of HyundaiSuzuki in the year March 2016 was
20070.9 Crore which is 23.26 % greater than previous year.

DISCUSSION

22
MARKETING STRATEGIES OF HYUNDAISUZUKI INDIA
LIMITED

In earlier days when the market was dominated by only few brands like Ambassador &
Premier Padmini, Hyundai India Limited entered the Indian market with different strategy.
The strategy of the company was to offer a compact, modern and fuel efficient car. Hyundai
released its first HyundAI car IN 1998 to fulfill the dreams of Indian customers and became
the market leader. Since 1998 till date Hyundai gradually offered several choices to the
consumer.

Due to aggressive competitors today Hyundai believes in Innovative Marketing Strategies.

With the changing needs, wants & requirements of customers and markets, Hyundai altering
their Brand Positioning, Advertising and Distribution strategy.

BRAND POSITIONING STRATEGYOF HYUNDAI INDIA LIMITED

23
Brand Positioning is the most vital concept in a brand‘s strategy. Brand Positioning is also
linked with managing a brand‘s meaning. Today several brand of cars are positioning
themselves on the features like Price, Comfort dimensions, Safety, Mileage etc. Currently
Hyundai followed a very effective multi-segmentation strategy to grab the different segments
of the market with different versions of its brands. About brand positioning Mayank Pareek
says that, Hyundai believe in research and before launching a product the Hyundai team does
an extensive research on the needs of the customer. Hyundai try to understand the customer‘s
demography and psychology to position a brand. Also the company follows the suggestions
made by existing customers.

1. Hyundai SANTRO

Considering the middle class & small families the Hyundai SANTRO was launched. The car
was also targeted at the urban professionals. It was projected as a car with minimum
maintenance needs and with greater fuel efficiency. Later the company added some features
like MPFI (Multi Point Fuel Injection) technology & few changes in front grill, head light,
and rear light.

3. I10 :

Hyundai launched i10 with ‘. In the TVC of, a young married couple goes to different
destinations in their . By this TVC Hyundaipositioned Alto as a car for young people. Also
the car has highlighted as fuel efficient car.

4. Wagon R:

Hyundai launched the Grand I 10 brand in 2013 This is one of the successful brand from
Hyundai portfolio in the premium segment of compact cars. Grand I 10 was initially
positioned on the basis of the functionality platform. Earlier this car was promoted as a
family car with the baseline, ‗Feel at Home‘. Then as per the changing pattern of market ,

24
competition and customers Hyundai altered the positioning from Feel at Home to ‗Inspired
Engineering‘ to ―As Interesting as you are‖ and finally to ―For a Smarter Race‖.

5. EON:

While speaking about EON Mr says that the A-Star was the only car in the Indian market that
was targeted at the urban youth. ―It is about the new generation of Indians who are
confident‖. Also in the second campaign,

which was done around , the company‘s focus was to inform the consumers about theEON‘s
K-Series engine. The current campaign of EON focuses on self belief and confidence.
Considering the fact that self belief and confidence are the attributes of youths, Hyundai has
positioned EON very well. In the current ad campaign a focus has given to a young person
who goes for an Interview & with his confidence and self belief he impresses all.

PROMOTIONAL STRATEGY OF HYUNDAI INDIA LIMITED

Every company is it a big or small needs an innovative promotional strategy because

promotional campaigns tend to have a huge effect on the reception of the product. Hyundai
India Ltd has a formidable line-up of vehicles in its stable and has been quite aggressive
about promoting each of its automobile brands. With an intention to face with cutthroat
competition and due to declining market shares, in 2000 Hyundai cut the prices of few
models like SANTRO. because Hyundai knew very well that the Indian consumer is very
sensitive about price & this price cut will definitely beneficial for company. In Jan 2002 to
attract the customers, Hyundai decided that some of its corporate assets in Delhi including
Hyundai ‘s manufacturing plant and children‘s park should be promoted. With an intention to
promote road safety and efficient driving the company held ‗carnivals‘periodically at IDTR.

25
Rural India is a fast emerging as a focus area in the country‘s economy. Hyundai knew that
there is a great potential in rural markets & in rural markets, the endorsements of opinion
makers takes precedence over an covers the village Sarpanch, doctors and teachers in
government instititutions, rural bank officers where in an extra discount is given to make a
sell. As a part of customer engaging strategy and to attract the potential customers
Hyundaiorganized various melas wherein local flavor is added by organizing traditional
social activities like GraminMahotsava are conducted round the year. As a part of
promotional approach Hyundai promoted SANTRO & other brands through sponsoring
various live programmes (Dancing shows) like Dance India Dance.

ADVERTISING STRATEGY OF HYUNDAI INDIA LIMITED

Advertising is one aspect of brand building. Whenever Hyundai launched any brand, it
supported that brand with an ad campaign. Hyundai advertising campaigns included TVCs,
Radio and Print ads, Point of Sale, Mobile promotions, online marketing, Outdoor
promotions. Hyundai ‘s advertising strategy focused both on building up its corporate image
and promoting its cars. Hyundai ‘s campaigns emphasized different aspects of its cars,
including fuel efficiency, looks, space, etc.

In the late 2000s, Hyundai ‘s advertising campaigns were handled by Lowe India (later
known as Lowe Lintas & Partners, India) and Re diffusion DY&R. While advertising related
to SANTRO were handled by Lowe India and the ad campaign of handled by Re diffusion.
With an intention to promote the all brands effectively, in 2000 Hyundai decided to appoint
Capital Advertising. In 2003, Hyundai came up with an innovative advertising that became
popular for its simplicity and clear message. In this ad one child plays with his toy car.

DISTRIBUTION STRATEGY OF HYUNDAI INDIA LIMITED

Distribution is an important marketing mix. In earlier days the consumers used to book for a
car and wait for more than a year to actually buy it. Also the concept of Show rooms was

26
non-existent. Even worse thing was the state of the after sales service. With an objective to
change this scenario

And to offer better service to customers, Hyundai took initiative. To gain competitive
advantage, Hyundai developed a unique distribution network. Presently the company has a
sales network of 502 centres in 255 towns and cities, and provides service support to
customers at 1540 workshops in over 335 towns and cities.

The basic objective behind establishing the vast distribution network was to reach the
customers even in remote areas and deliver the products of the company. The company has
formed the Dealer territories and the concept of competition amongst these dealers has been
brought about. Periodically corporate image campaigns in all dealership are carried out. In
2003, to increase the competition the company implemented a strategy for its dealers to
increase their profitability levels. Special awards were sometimes given by company for sales
of special categories. HyundaiSuzuki had given an opportunity to dealers to make more
profits from various avenues like used car finance and insurance services.

In 2001, Hyundai started an initiative known as ‗Non Stop Hyunda iExpress Highway‘. As a
part of this initiative Hyundai developed 255 customer service outlets along with 21 highway
routes by 2001-02. Also with an intention to provide fast service in less time Hyundaihad
offered Express Service Facility. In the year 2008, Hyundai had near about 500 rural dealer
sales executives, among the total 5,000 dealer sales executives.

6. CONCLUSION

27
Automobile market today is very dynamic & competitive with a range of players and
products. There are many reasons for the impressive growth of the Indian passenger car
Industry. Some of these are easy availability of vehicle finance, attractive rate of interest and
convenient instalments. In today‘s cutthroat competition it is very difficult to survive.

Stiff competition has forced manufacturers to be innovative and responsive to customer

demands and needs. Hyundai India Limited is a leading company in Indian Automobile
sector which occupies prominent place due to its innovative strategic marketing, promotional,
Brand positioning, advertising strategies. In today‘s scenario the success of company lies in
structuring and restructuring the marketing strategies and continuous innovation of product
and services.

7. REFERENCES

https://en.wikipedia.org/wiki/Reliance_Industries

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Bhargava R.C, ―Assembling a Dream‖, The Hyundai Story,

Collins Business (HarperCollins Publishers), 13, 2010.

CMIE, Prowess database (Fig 1.1, 1.2), Prowess.cmie.com

Dr.Garg R.K & Jain Sumit, Business Competitiveness: Strategies for Automobile Industry,
Global Competition & Competitiveness of Indian Corporate, Kozhikode, Kerala, India, 2009,
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Dr.Lokhande M.A & Rana V.S, ―Scenario of Indian Automobile Industry‖, Vision
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Gautam R &Sahil Raj, Growth of Indian Automobile Sector in the Era of Globalization,
Indian Management Studies Journal, Volume 13 Number 1, April 2009.

GulyaniSumila, ―Introduction‖, Innovating with

Infrastructure, Palgrave publishers ltd, 22, 2001.

Importance of advertising in your business, retrieved from www.articlebase.com (article)

HyundaiSuzuki India Ltd, Annual Report 09-10, retrieved from www.marutisuzuki.com.

Nayyar Anita, ―Brands need to build sustainable power‖,

Nov 2010, Indiatelevision.com team (article)

Neelamegham S, ―‖, Marketing

In India, Vikas Publishing House Pvt Ltd, 9, Reprint 2010.

Neelamegham S, ‖, Marketing
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Pillai R.S.N&Bagavathi, ―Product Related Strategy‖,

Marketing Management, S.Chand& Company
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Ramesh Kumar S, ―Application of Product &
Brand Related Strategies‖, Marketing and
Branding,: the Ind
Scenario, Pearson education, 68, First impression ,
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officer (Hyundai India Ltd), ―How to make brands

meaningful & powerful‖, Exploding Marketing Power,

AIMA 2nd World Marketing Congress, New Delhi 02 &
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