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YUNDAI S MARKETINGTRATEGIES IN INDIA
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-HE INDIAN CAR INDUSTRY&EFORE AFTER Since independence two dominant players in the car market-
Ambassador(HM) & Fiat(PA)
GOI in the 1980s formed a joint venture with Suzuki to formMaruti Udyog Limited(MUL)
MUL launched Maruti 800 in 1983,priced at Rs.40,000
Economic liberalization led foreign and domesticmanufacturers to enter the Indian automobile market.
Ford Motors(US),GM(US),Toyota Motors(Japan),Daewoo
Motors(Korea),Honda Motors(Japan)
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YUNDAI S ENTRY IN INDIA
Thorough study of the Indian automobile market
Conducted market research
Selection of vendors Set up of wholly owned subsidiary
Introduction of a complete new car for Indian customers
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Ps of Marketing
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HE PRICE CUT Starting September 2003,MUL reduced the price of Alto
by Rs.58,000 in two price cuts
This resulted in Alto replacing Santro as the largestselling car in the B segment
In mid 2004,HMIL with its 4 models
Santro,Accent,Sonata and Elantra had 19% marketshare and was at the anvil to launch Getz in September2004
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RODUCT Santro: Technologically superior than competitors
Unique design with more head room
Drivers seat positioned higher
Child safety rear locks
Pair of ultra-high strength steel bars built in the doors
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PRICE Santro
Targeted the B segment
Pricing based on customer value perceptions
Prices were not too high (Rs. 2.89 L-Rs. 3.49 L)
Accent
Targeted the C segment
Prices lesser than the competitors
Base model priced at Rs. 5.35 L
Sonata
Targeted premium segment
Priced at Rs. 16 L
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( )LACE DISTRIBUTION Selected the dealers who could react fast to changing market
needs
Based on educational background, financial net worth and
market knowledge
Precautionary measures to avoid future conflicts
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PROMOTIONSantro
Advertising contract to Saatchi & Saatchi
Indian movie superstar SRK
Phase 1 - April to June 1998 Phase 2 - July to Sep. 1998
Early 1999 - Customer satisfaction campaign
Accent Mostly print media
Highlighted improved technology
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EST ANALYSIS
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OLITICAL SCENARIO Till 1980s - Tightly controlled car industry after
independence.
Only 2 models on offer. Ambassador and Fiat.
Restricted foreign entry.
Pricing regulations very tight.
Stricter trade regulations.
1991- Liberalization of Indian Economy.
Car Industry opened up.
Entry of foreign players.
Change in GOI policies.
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CONOMICAL SCENARIO Post 1991 Liberalisation. Move towards a market-based
system.
A revival of economic reforms and better economic policy in2000s .
More entry of FDI and foreign capitals.
Change in industry structure in major sectors.
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OCIAL SCENARIO Income level increases.
Change in the Job scenario.
More dispensable income in hand.
Change in consumer perception.
Small car released for the Indian Middle Class
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ECHNOLOGICAL SCENARIOPre 1980s - Slow improvement in technology
Inferior quality but high price
Restrictions in foreign collaborations
Less expenditure and focus on R&D
No innovation in models and performancePost Liberalization
Entry of foreign giants in Indian market
More emphasis on technology transfer
More JVs and FDI, new plants set up
More investment and focus on R&D
Intensifying competition in all segments
More emphasis on product and process innovation
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ARKETING OF SANTROq Comfortable &Technologically superior to any other B segment car.
q Santro LP , Santro LE, Santro GS.
q Pricing Based On Customer Value Perceptions
q Positioning - Family Car ( Age group 35 45 years).
q Stringent Dealership selection process
q Advertising Agency Satchi & Satchi.
q Brand Ambassador Shahrukh Khan.
q Customer Satisfaction Campaign.
q
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CCENT LAUNCH IN INDIAq Diversification to reduce risks
q Target Segment C segment.
q Lancer, Esteem , Ford Ikon already established market players
q Accent launched in 1999 & became largest seller in 2002
q Launched CRDi Technology(common rail direct injection).
q Ad campaign The Next Step & Stupid Diesel car.
q Launched SONATA for the premium D segment.
q Tag Line Dream about by everyone, Owned by a select few
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EPOSITIONING SANTROq
Increased Competition Zen , Wagon R , Alto.q Positioning changed from Family Car TO Sunshine Car.
q Focus on young couples i.e.25 30 years as target segment
qBrand Ambassadors Shahrukh Khan & Priety Zinta.
q Rural Marketing initiative with Santro UTSAV across 7 states
q 33% Santro sales from Rural market in 2003
qSigned a contract with PNB for financing Hyundai Cars.
q
q
q
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WOT ANALYSIS
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STRENGTHS
The Quality Advantage
A Buying Experience like no other
Level of satisfaction was high
Informative campaigns
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WEAKNESSES Price risks
Less number of models offered
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OPPORTUNITIES
HMC setup its wholly owned subsidiary
HMIL established its manufacturing unit
Leading growth
Low manufacturing costs and low labor costs
Retail financing
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THREATS
Too many players in the market leading to intense competition
Risk factor
Business Factor
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HALLENGES AHEAD ALTO emerging as the largest selling car
Price cuts of Zen, Wagon R and Alto
Production crunch at HMIL
Relaunch of Esteem in the C segment
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RECOMMENDATONS Price cuts in SANTRO
Launching new variant in the B segment
Launching new variant in the C segment
Increasing Production Capacity
Green Initiatives
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CONCLUSION New Approach to successful product launch
Innovative Marketing Strategy
Constant tracking and changing with changes in marketdynamics
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!hank you!hank you
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