Strategic Marketing

Hyundai's Ioniq Electric Car Marketing Plan

Presented by:

 Fatma El Zahraa Ismail

 Heba Hamdy
 Moustafa Alaaeldin
 Radwa Mansour
 Rania Farouk

Supervisor:

Prof. Dr. Mohamed Abdelazim

Table of Contents
The Executive Summary .............................................................................................................. 3
Company and Product Description.............................................................................................. 4
Strategic Focus and Plan.............................................................................................................. 5
Hyundai Motor Group’s Mission and Vision: .......................................................................... 5
Hyundai's Five Core Values:..................................................................................................... 5
Situation Analysis ........................................................................................................................ 7
SWOT Analysis ......................................................................................................................... 7
Competitors Analysis ............................................................................................................... 8
Economic Analysis ................................................................................................................... 8
Governmental Analysis ............................................................................................................ 8
Customers Analysis.................................................................................................................. 9
Logistical Analysis .................................................................................................................... 9
Market-Product Focus ............................................................................................................... 10
Marketing and product objectives ........................................................................................ 10
Target markets ...................................................................................................................... 10
Positioning ............................................................................................................................. 11
Marketing Program ................................................................................................................... 13
Product Strategy .................................................................................................................... 13
Product Features: .................................................................................................................. 13
Pricing Strategy...................................................................................................................... 15
Place Strategy (Distribution Strategy) ................................................................................... 15
Promotion Strategy ............................................................................................................... 15
Implementation of Marketing Plan ........................................................................................... 17

2
The Executive Summary
Hyundai Motors, through the past 6 years or so, have been experiencing difficulties with their
significantly present decline market share (Egypt). Being a dominant player in the auto business
for over a century, Hyundai Motors have been reluctant to keep up with current trends and
evolving competitors from growing economies. Considering the company’s external and internal
opportunities, and directing their resources towards a more skillfully R& D (research and
development) department would be the first step to recovering this remarkable loss.

Applying this strategy to current trends and innovating vehicles leading us in the direction of
hybrid technology. Study represents this product is a competitive advantage over other
competitors’ as of its fuel efficiency and environmental friendly specifications. When evaluating
the strengths and weakness and applying them to the current opportunities while considering the
threats, we thought of creating a product responding to the growing environmental awareness
trends concerning cars, would hopefully regain success.

The report begins with an introduction that showcase the background and brief overview about
Hyundai and the market in which it operates is explained. Followed to intro; current situation
analysis is performed in the market.
The report begins with company outline including a background and mission statement. Followed
to intro; situation analysis which represents a wider understanding of company, its different
products, competitors and different environments in which it work. After focusing on internal and
external environment a SWOT Analysis, the strengths, weakness, opportunities and threats of the
marketing environment is conducted. A detailed profile of our target segment which through their
needs guidelines, in depth, the marketing strategies, implementing a combination of the
marketing mix components and alternative strategies.

After analysing the above mentioned factors we can identify some critical issues, and able to give
more light on marketing objectives and strategies of Hyundai Hybrid (Ioniq ) car. Finally, towards
the end a recommendation of change and implementation plan has been developed to improve
strength and capacity of the product.

3
Company and Product Description
HYUNDAI MOTOR COMPANY is a Korea-based company principally engaged in the manufacture
and distribution of automobiles and automobile parts. Along with its subsidiaries, the Company
operates its business through three segments. The Vehicle Segment manufactures automobiles
mainly under the brand names of Genesis, Tucson, Equus, Veloster, Azera, Sonata, Elantra,
Accent. This segment also produces commercial vehicles including trucks, buses, special vehicles
and others, as well as automobile components. Meanwhile, it also involves in providing
automobile maintenance services. The Financial Segment mainly provides financial services
including automobile retail loans and auto-leasing, and it also engaged in issuing and managing of
credit cards.

Revolta Egypt, a massive company with huge capital that decided to bring the electric car market
to Egypt. Revolta had a great influence with the launch of a number of electric charging stations
for electric vehicles. Their goal in the first phase is to launch 65 Charging Points to cover the main
areas of Egypt. Revolta Egypt are also the proud owners of the first electric vehicle showroom in
Egypt and North Africa.

With environmental concerns rising across the globe, the demand for electric and hybrid vehicles
is becoming increasingly popular. More and more automakers are bringing electric vehicles to the
forefront of their lineups, including Hyundai.

Egypt’s ongoing reduction of energy subsidies could play a key role in the success of electric cars.
Electricity and petrol prices have been increasing since reforms began in 2014. Electricity prices
jumped as much as 300 percent by 2017. This year, electricity prices have increased an average
of 26 percent. According to Electricity Minister Mohamed Shaker, it is the smallest rate increase
since the subsidy initiative began.

Hyundai Egypt being one of the innovative organization in automobile sector, leads the
automobile industry in environment friendly technology with the success of Hybrid technologies
such as Hybrid Ioniq

The Hyundai Ioniq, a small electric family sedan sold in Egypt, can travel approximately 10
kilometers per kilowatt hour. That translates to EGP 1.45 based on the highest electricity
consumption category. Alternatively, a Hyundai Elantra, a similarly sized car with a 1,600 cubic
centimeter engine, can officially manage 15 kilometers per liter, meaning it would cost EGP 4.5 of
92 octane fuel to travel the same 10 kilometers.

4
Strategic Focus and Plan
Hyundai Motor Group’s Mission and Vision:
Vision:
Lifetime partner in automobiles and beyond.
Our slogan is:
“Together for a better future”
Mission:
“To become a trusted lifetime partner of our customers, we will bring a new perspective to
automobiles through innovative mobility solutions based on human-centric, eco-friendly
technologies and services”

Hyundai's Five Core Values:

Hyundai Motor Group unveiled five core values that will help implement the company’s new
management philosophy; “Realize the dream of mankind by creating a new future through
ingenious thinking and continuously challenging new frontiers”
These core values are:

 Customer: We promote a customer driven corporate culture by providing the best

quality and impeccable service with all values centered on our customers.
 Challenge: We refuse to be complacent, embrace every opportunity for greater
challenge, and are confident in achieving our goals with unwavering passion and
ingenious thinking.
 Collaboration: We create synergy through a sense of “togetherness” that is
fostered by mutual communication and cooperation within the company and with our
business partners.
 People: We believe the future of our organization lies in the hearts and capabilities
of individual members, and will help them develop their potential by creating a
corporate culture that respects talent.
 Globality: We respect the diversity of cultures and customs, aspire to be the world’s
best at what we do, and strive to become a respected global corporate citizen.

Source:
https://www.hyundaimotorgroup.com/MediaCenter/News/Press-
Releases/Press-release-1268-2011-0331.hub#.XJTEcSgzZPa
https://www.hyundaimotorgroup.com/About-Us/Philosophy.hub

5
The goals of creating Ioniq Hybrid:
In the light of Hyundai's vision, the Ioniq Hybrid has been created so as to:
● be a lifetime partner. The Ioniq Hybrid offers an exclusive Lifetime Hybrid/Electric
Battery Warranty.
 It is a human-centric vehicle. It provides the luxurious comfort of an available
power driver seat with lumbar support, available heated front seats and available
leather seating surfaces. With zero emissions of carbon dioxide, the future of
humanity is reserved.
● Be an ecofriendly car with zero pollutant emissions helping in preserving the
environment and the future of humankind; the car offers a ‘green-zone
drive mode‘. As a result, the Hyundai Ioniq Electric has won The industry’s
cleanest model for the third year running, according to the ACEEE

6
Situation Analysis
SWOT Analysis
Strengths Weaknesses

 Impeccable good looks, better fuel  Cost can be an issue. Minimum cost is
efficiency, low emission, comfortable 775,000 EGP, the used versions are
driving. about 50 percent less expensive
 One of the first Hybrid vehicles in Egypt. (according to Revolta Egypt), but still
 Government Support & Backup. quite high for many people.
 Hyundai has an image of reliable  Maintenance Cost can be high during
trustworthy brand. initial stages.
 Hybrid Car is one of the future  The lack of a nationwide charging
technologies so demand will rise up. stations.
 Just in time strategy: assists to reduce
 Lack of promotion of its product.
cost and labor.

Threats Opportunities

 Change in government or government  Egyptian government program focusing

policies against Hybrid cars could be a on ecofriendly auto products.
blow.  High Petrol Prices are driving consumers
to buy small and fuel efficient cars. It is
 New Technology like Electric Carsor or
the future in automobiles sector.
any other innovative technology can
 Global warming is a serious issue and
cause serious dent in Hybrid Hyundai
people are going for eco-friendly items.
market share.

7
Competitors Analysis

In Egypt, Revolta Egypt is the country’s first and only company that solely imports electric
passenger cars. It sells the Hyundai Ioniq, Nissan Leaf, and Kia Soul EV, as well as high-end
Tesla models.
Meanwhile, Egyptian Automotive, authorized dealer for Volkswagen, plans to introduce
the e-Caddy, which can seat seven people, and e-Crafer, which seats 11 to 24, next year.
Also, Bavaria Auto Group, official dealers of BMW, plans to launch an electric model within
a year, as reported by local media. No details were available.

Strengths:
● Customer loyalty.
Weaknesses:
● Other manufacturers providing high quality, fuel efficient, low cost automotive
vehicles.

Economic Analysis
Egypt’s ongoing reduction of energy subsidies could play a key role in the success of
electric cars. Electricity and petrol prices have been increasing since reforms began in
2014. Electricity prices jumped as much as 300 percent by 2017. This year, electricity
prices have increased an average of 26 percent. According to Electricity Minister it is the
smallest rate increase since the subsidy initiative began.

The Hyundai Ioniq, a small electric family sedan sold in Egypt, can travel approximately 10
kilometers per kilowatt hour, according to the car’s owners forum. That translates to EGP
1.45 based on the highest electricity consumption category, meaning it would cost EGP
4.5 of 92 octane fuel to travel the same 10 kilometers.

it is also noted that current electric cars can get through the day on a single charge
assuming the driver is not racing the car. “We found that, given how people are driving
across the U.S., 87 percent of cars on an average day could be replaced with a current-
generation, low-cost electric vehicle, with only once-daily charging,”.

Governmental Analysis
Shifting energy dependence from fossil fuels to green sources has been a favorite topic in
government corridors since 2015. It started with the recently canceled feed-in tariff,

8
followed by the $4 billion solar park in Benban village that will eventually be connected
to the national power grid with the potential to generate 1.8 gigawatts.

Now the Ministry of Trade and Industry (MTI) has begun promoting electric cars,
announcing in March that used electric passenger cars can be imported as a way of
providing a more affordable option, something that gasoline-powered vehicles don’t
have. “Our strategy is to reduce pollution and reduce national fuel consumption,” said
the ministry’s spokesperson, on a TV talk show in April. “These aims can be achieved when
Egyptians buy electric cars.”

Customers Analysis
Electric cars successfully penetrating the Egyptian market depends on their acceptance
by potential buyers. “It needs effort to educate everyone about what is unique about e-
cars and why we should switch to them. It is not another car with different options. It is
the whole concept of convincing customers why they should shift to electric,” says Harb,
pointing to government subsidies or other incentives as a way forward.

Logistical Analysis
a major obstacle facing daily use of electric cars in Egypt: the lack of a nationwide charging
stations.

Since February, Revolta Egypt has built 30 charging stations at Watanya petrol stations
(at time of reporting), including normal, fast, and ultra-fast charging. They are located in
Greater Cairo, throughout the Cairo-North Coast highway, the Red Sea coast, at Marina
Resort in Alamein city, Port Said, and Suez. By the end of the year, the company plans to
have 65 stations in seven governorates.

9
Market-Product Focus
Marketing and product objectives
Hyundai Motor Company’s marketing intend to:

● Increase Hyundai’s market share (brand equity) by at least 10 to 15 % at the

beginning and then maintaining that share and when there is rise in demand or need
for hybrid car then to have at most 4 or 5 times the above value.
● Hyundai Company’s revenue will increase from the increase in brand equity.

Expanding brand equity will come from:

○ Current markets. Hyundai Motor Company’s current markets will grow by

expanding the brand and diversifying its products. The new Ioniq car will have
new capabilities significantly different from Hyundai Motor Company’s other
trucks. The current markets will also grow by increasing the consumer
awareness of the product.

○New markets. Hyundai Motor Company will reach new markets by including
the new Ioniq in its automotive line. This is an all-new product to the
company. Due to Hyundai Motor Company’s brand equity, the product will
attract potential consumers who are interested in this type of cars.
Additionally, the automotive industry’s growth rate is expected to exceed
5.5% per year (Automotive Industry Market Research and Statistics, n.d.). In
addition, Hyundai Motor Company states 60-70% of its growth in the next
decade will be due to expansion in the “US, Pacific and Africa”
● To create product & brand awareness among targeted audience (small size) using
media like newspapers, audience, word of mouth.
● To get consistent sales from targeted group of consumers by expanding in the
automobile market.
● Gradually increasing the quantity of the product if there is an increasing demand of
Hyundai’s Ioniq.

Target markets
Hyundai being a manufacturer that is offering a heterogeneous product means that their
retail deals with extensive problem solving shoppers. Because the Ioniq targets a market
where customers are inspecting for quality and innovative environmental solutions while still
attaining a social acceptance fitted for their lifestyle, the customers are going to do extensive

10
research before making a purchase making sure it meet all of their expectations. The Ioniq
gathers many qualities/ features to fulfill and go beyond the needs expected of their target
market.

Considering the price:

 Current Target Market:

Successful business executives and entrepreneurs who are also city dwellers that
are tech savvy and green friendly. These are wealthy and early adopters whose
income levels put them in the upper-middle class segment.

● New Target Market:

In order for Hyundai Motors’ Ioniq to keep growing now and into the future, it is
going to be important to expand their target market to reach more consumers of
the middle class working adults. We are going to segment the market for our new
targets in three categories; eco friendly consumers, tech savvy and young
professionals that are looking for an entry level luxury cars.

Positioning
Hyundai has positioned itself in the mind of its target customers as the perfect car for the young
entrepreneurs, and young family men, that wants to celebrate their life success, feel the sense of
comfort and modest luxury, driving safely while preserving the nature’s resources.
It has following positioning strategies:

• Enhancing people’s lifestyle consumers mind

• Following green friendly lifestyle.
• Appealing quality level and valuable products.
• Providing comfort and safety

The Hyundai Ioniq is marketed as an entry level luxury hybrid car that is able to compete with
other high level luxury cars performance. Most electric cars are viewed as "unattractive" to
younger buyers through lack of design and performance. By creating an entry level car, we can
use our design and technology to change that image.

While the price is not cheap, it is cheaper than many other hybrid cars that are on the market. By
having an entry level luxury car that also has the benefit of being electric, will attract more buyers
that are currently looking for electric cars or entry level luxury cars because of the added value of

11
zero emissions, and by having this added value, it will position our brand to save consumers more
money than the traditional entry level luxury cars.

Positioning Map:

12
Marketing Program
The strategy Hyundai will follow to achieve the above mentioned segment in order to
earn high revenue from Hybrid Ioniq. Hyundai needs to create a successful mix of (which
are known as marketing mix) to reach the targeted segment, by introducing

● The suitable Product

● Sold at the suitable Price

● In the suitable Place

● Using the most suitable Promotion

Product Strategy
Hyundai’s vision now is to take environmental issues into considerations by creating a
product that concerns the future.

Hyundai’s Ioniq continues to improve its product offering, with new and broader
applications of active safety features, enhanced voice-recognition features and standard
remote charge management for Plug-in and Electric models.

Hyundai’s approach for the Ioniq line delivers an uncompromising design and driving
experience coupled with the latest in safety and convenience technologies, making it an
appealing choice for a wide range of buyers.

Product Features:
● Driver Attention Alert and High Beam Assist safety features now available
● Enhanced, natural-language, server-based voice-recognition and POI-search
database
● Automatic Emergency Braking, Lane Keep Assist and Smart Cruise Control
● Standard remote charge management for Plug-in and Electric models
● The Ioniq Plug-in Hybrid powertrain combines the best of the Electric and Hybrid
powertrains without typical eco powertrain compromises

13
 ● Six-speed dual-clutch transmission
● Advanced Battery Technology
● Light weighting focus
● Driving performance – low- to zero-emission mobility without compromise

● Interior design: In keeping with its exterior, the interior of Ioniq captures the
model’s futuristic qualities. A smooth, elegant and clutter-free theme and efficient
use of interior space

○ Eco-focused materials create clean and sustainable interior ambience

○ Smart and efficient air conditioning
○ Infotainment System
○ Comfort and convenience

 Exterior design: In crafting the exterior appearance of Ioniq, Hyundai designers

concentrated on its future-focused character, fundamental to its appeal. A fluid
exterior shape and natural air flow channels emphasize aerodynamic body lines
and surface volumes. A sporty, hatchback-like profile is inspired by aerodynamic
efficiency, complementing the soft lines and surfaces that trace the car’s outline.
further design details creates their unique identities

Product Strategy deals with product development, product innovation, product’s

maintenance, and product after sale services. Some of the product strategy Hyundai could
implement:
● One-year free maintenance on Hybrid Ioniq car will help the automobile to attract
more customers.
● 24 hours free emergency unit just a call away. Just call the Hyundai mechanic at
any place, any time, in your zone.
● Using the Hybrid Synergy drive Technology in used Hyundai cars with little or no
modification depending on Mechanism of car and selling them. It with save time
from making a new car.
● Providing helpful friendly and genuine service.
● Providing many electric charging stations in many locations in the governorates
where the car will be sell.

14
Pricing Strategy
Although the electric car’s price might be higher than the 100% fuel car, but in comparison
with the competitor’s hybrid cars, Hyundai seeks offering quality products at reasonable
price.

● Hyundai offers good features like fuel efficient, low carbon emission, special
attention on safety, good interior and exterior design, putting in mind the quality
and the low cost.
● Used Hyundai cars can be used & fitted with this hybrid technology with little bit
of modification can reduce the price of the car.
● Changing the assembly locations to lower labor cost locations will reduce the cost,
while keeping assured of following Hyundai’s high quality standards.

Place Strategy (Distribution Strategy)

● The Car will be available in all Hyundai’s showrooms, and other big cars
distributors/ agencies
● The car will be available at the distributors in the big governorates first (like Cairo
and Alexandria), as the population there is more aware of the echo friendly
concept, then in the second phase, the car can be available in other governorates,
all over in the country.

Promotion Strategy
Promoting Hyundai Hybrid Ioniq will be by focusing on their strong and differentiated
characteristics and using these characteristics to create opportunity by stepping in the
market Hyundai applies an Integrated Marketing Communication (IMC) through the
following communication channels and promotions:

● Ads in different newspapers, focusing on money and economy newspapers, eco-

friendly consumers, new tech followers magazines.
● Ads in social media channels and websites of high tech followers and eco-friendly
subscribers.
● TV ads: Only very few ads on some selected TV channels.

15
● Attending events and gatherings of young entrepreneurs and green friendly
concerned. In those events and gatherings, we will be a displaying a showcase of
the new Hyundai Ioniq, and giving the attendees the chance to see the car from
outside and inside. (Public Relations Approach)
● Street Billboards in the main Egyptian governorates, especially in the middle high
neighborhoods.
● We can use a figure or two of the current social media influencers in our ads.
● Offering the chance of a “Test Drive” for the potential customers, letting them
drive the car for 15 minutes.
● Giving the loyal Hyundai customers the option of replacing their old Hyundai car
with a new electric one, and paying the difference.
● Hyundai’s website must have all the necessary information about the car, with
illustrative photos and videos, and it must be always updated, as well as the social
medial pages, that in addition to the above, it should be always interactive with
the social media users, and it should be ready to answer all their questions.

16
Implementation of Marketing Plan
Hyundai can ensure its correct marketing plan through:
● Collecting, analyzing and evaluating customer demographics.

● Develop customer attraction and retention strategies.

● Build out timeline and tasks.
● Conducting marketing research will be done on the targeted market region,
Hyundai’s budget for Hybrid Ioniq, government support and people’s opinion.
● Build a strong team that have believe in the product.
● Communicate the plan with all the parties concerned, from top management to
implementation team members.
● Start production to introduce the car to the market.

● Controlling procedures of top management and with proper guidance to all

departments of organization.
● Proper check and balance of company’s market share, profit, sales, budget and
continuous analysis of all departments of company so that marketing plan could
be implemented and could meet with targets, as well as ensuring our customer’s
satisfaction.
● Also through proper setting of milestones, budget and department selection to
work on objectives of marketing communication, channels and research so the
marketing plan would be executed in timely basis and with fewer errors.

17