Kia Motors

BY KEVAL GALA A-129

 Introduction
Kia Motors Corporation was founded in May 1944 and is Korea's oldest
manufacturer of motor vehicles. From humble origins making bicycles and
motorcycles, Kia has grown – as part of the dynamic, global Hyundai-
Kia Automotive Group – to become the world's fifth largest vehicle manufacturer.

Today, Kia produces more than 1.4 million vehicles a year at 14 manufacturing and assembly
operations in eight countries. These vehicles are sold and serviced through a network of more than
3,000 distributors and dealers covering 172 countries. The Corporation has more than 40,000
employees and annual revenues of more than US$17 billion.

In its ‘home‘ country of South Korea, Kia operates three major vehicle assembly plants – the
Hwasung, Sohari and Kwangju facilities – plus a world-class research and development centre
employing 8,000 technicians at Namyang and a dedicated environmental R&D centre. The Eco-
Technology Research Institute, near Seoul, is working on hydrogen fuel-cell vehicles for the future
as well as state-of-the-art end-of-life vehicle recycling technologies and processes. Kia spends 6%
of its annual revenues on R&D and also runs research centres in the USA, Japan and Germany.
 History
Kia was founded in December 1944 as Kyungsung Precision Industry, a manufacturer of steel
tubing and bicycle parts, eventually producing Korea's first domestic bicycle, the Samchully,
in 1951.[1] In 1952, Kyungsung Precision Industry changed its name to Kia Industries, [8] and
later built Honda-licensed small motorcycles (starting in 1957) and Mazda-licensed trucks
(1962) and cars (1974). The company opened its first integrated automotive assembly plant in
1973, the Shari Plant.[9] Kia built the small Brisa range of cars until 1981, when production
came to an end after the new military dictator Chun Doo-hwan enforced industry
consolidation. This forced Kia to give up passenger cars and focus entirely on light trucks. [10]
 Prior to the forced 1981 shutdown, Kia rounded out its passenger car lineup with two other
foreign models assembled under license: the Fiat 132[11][12] and the Peugeot 604.[13][14] Starting
in 1986 (when only 26 cars were manufactured, followed by over 95,000 the next year), [15] Kia
rejoined the automobile industry in partnership with Ford. Kia produced several Mazda-
derived vehicles for both domestic sales in South Korea and for export into other countries.
These models included the Kia Pride, based on the Mazda 121 and the Avella, which were sold
in North America and Australasia as the Ford Festiva and Ford Aspire. In 1992, Kia Motors
America was incorporated in the United States. The first Kia-branded vehicles in the United
States were sold from four dealerships in Portland, Oregon, in 1992.[16] Since then, Kia
methodically expanded one region at a time. Dealers in 1994 sold the Sephia and a few years
later the United States segment expanded their line with the Sportage. Over one hundred Kia
dealerships existed across thirty states by 1995, selling a record 24,740 automobile
 Vision and Mission
 Under the Group-level corporate vision are detailed vision statements for each key
business area. For the automobile business, the vision statement is 'Providing a new space
that makes life more convenient and enjoyable by realizing superlative mobility based on
innovative people-oriented, eco-friendly technologies and comprehensive services. Kia
Motors will offer products and services that befit this vision of turning cars from mere
modes of transport into new lifestyle spaces.
 Strength Weakness opportunity threat analysis

KIA SWOT analysis

Strengths Weaknesses
1.Excellence in vehicle safety and design 1.Poor brand portfolio, leading to fewer
proven by many awards sales
2.The 6th highest automotive brand 2.Low presence in the strongest U.S.
reputation in the world vehicle market and no presence in Japan’s
3.Effective research and development vehicle market
(R&D) spending resulting in new innovative 3.Declining quality of company’s
cars management
4.Low cost to drive and durable cars 4.Product recalls damaging brand
5.Strong presence in China’s market reputation
 Strength Weakness opportunity threat analysis
KIA SWOT analysis

Opportunities Threats
1.Improving U.S. economy 1.Increased competition
2.Timing and frequency of new model 2.Rising Korean Won exchange rates
releases 3.Increasing government regulations may
3.Low fuel prices opening new markets for raise the costs
KIA
 MARKETING STRATEGIES OF KIA MOTORS
• Target Markets
KIA marketing strategy is based on differentiated marketing. The primary consumer target is
consisting of middle to upper-income professionals, who wants value for their money and
comfortable ride in city conditions. The secondary consumer target group is college students
who always need style and speed. The primary business target is of midsized to large sized
corporates that always want to help their managers and employees by providing them a car
with ease of transport.
• Road shows
The company plans for the stage road shows and to display vehicles in the pavilions during
various college festivals and exhibition. This will bring appeal to youngsters more and attracts
them towards the cars of KIA.
• Television advertisements
Advertisement to promote and market the product and market the products will be shown on
the leading television channel. Major music and sports channel will promote and they will
reach out to the youth will be promoted through TELEVISION . as it has more viewers, to
promote a product like .
 Sales promotion techniques
• Radio
Radio is the medium with the widest coverage. Studies have recently shown high
levels of exposure to radio broadcasting both within urban and rural areas whether or
not listener actually own a set. So, radio announcements on various, play station like
FM will be made and advertisement will be announced on the radio about the products
features and price, qualities etc.
• Print Ads
Daily advertisement in leading newspaper and magazines will be used to promote the
products. Leaflets at the initial stage will be distributed at malls, college areas and
various other location. Product display was and is conducted in various shopping malls
which have highest football.
• Banners, neon signs
Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and
shops to promote the brand cars.
• Booklets and pamphlets
Booklets will be in car showrooms, retail outlets, etc. for the customer who wants to
read. These booklets will provide the perfect information about the company the
products offered which suits the customers need accordingly.
 Pros and cons of KIA’s branding strategy

 Impact of branding on new and emerging technologies and their applications is

evident in Kia’s project portfolio. Differentiation on image branding has
capability of taking very sharp and upper dimensions within the market. Use of
modern technology in integrated marketing communication mix has been
identified to include advances in product differentiation within the market based
on unique qualities. Such branding strategy through modern technology can be
attributed to increase in the number of customers capable of accessing
information from internet as well as new display technologies
 Strong car brand assist in creating significant value of Kia within the automotive
industry. This encourages consumers to pay required prices based on value
attached. Superiority of the brand used helped in extending kia’s fame across
every model of their cars. However, perceptions on brand name at times prove not
perfect since some brand reputations fall below standards of their own product
attributes.
Below are the top Kia Motors competitors:
1.Toyota
2. Honda
3. Nissan Motors
 Conclusion
 India’s largest car maker Maruti Suzuki India Ltd has an unlikely admirer — its fiercest
rival is kia Motor India Ltd. The continued dominance of Maruti, which controls 49.5% of
the Indian passenger vehicle market.
 Volume-wise, Maruti is definitely No. 1 because they have 1.7 million units and kia at 7
lakh (700,000). So, volume-wise and factory-wise, kia cannot compete and overtake.
 Maruti has focus on bringing down costs and weight with every new model that it
introduces. A 200kg weight reduction in every next-generation product is a tremendous job
for competing in market. kia needs to learn how to do that in order to maintain cost
efficiency will match the price structure of the market leader. “Design, quality, features in
kia cars are much advanced. That is kia’s strategy... But sales are a different strategy. They
cannot fight (there). Even Eon is more expensive than i20 is more expensive than Baleno.
Adding that the absence of models such as Alto, Wagon R, Ertiga and Celerio in Maruti’s
portfolio is another reason for kia not being in a position to take on Maruti.
 Kia is pretty much advance and optimise for rural and urban market point, his goal is
towards the maximum market share with export and including import
 Bibliography
 ncrdsims.edu.in
 www.managementparadise.com
 docshare04.docshare.tips
 www.scribd.com
 www.mbaskool.com
 www.kia.news

Thank you
BY-KEVAL GALA
DIVISION-A
ROLL NO- 129
SUBJECT- PRINCIPLES OF MARKETING
SEMESTER- 2
COURSE- FYBMS