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INDIA LIMITED
Product
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
COMPANY PROFILE:
Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor
Company in India.
It is the 2nd largest automobile manufacturer in India.
Hyundai Motor India Limited was formed in 6 May 1996 by the Hyundai Motor Company
of South Korea.
When Hyundai Motor Company entered the Indian Automobile Market in 1996 the
Hyundai brand was almost unknown throughout India. HMIL's first car, the Hyundai
Santro was launched in 23 September 1998 and was a runaway success.
Within a few months of its inception HMIL became the second largest automobile
manufacturer and the largest automobile exporter in India.
HMILs manufacturing plant near Chennai claims to have the most advanced production,
quality and testing capabilities in the country.
To cater to rising demand, HMIL commissioned its second plant in February 2008, which
produces an additional 300,000 units per annum, raising HMILs total production capacity
to 600,000 units per annum.
HMIL has set up a research and development facility in the cyber city of Hyderabad.
HMCs global export hub for compact cars, HMIL is the first automotive company in India
to achieve the export of 10 lakh cars in just over a decade.
HMIL currently exports cars to more than 120 countries across EU, Africa, Middle East,
Latin America, Asia and Australia. It has been the number one exporter of passenger cars
of the country for the sixth year in a row.
To support its growth and expansion plans, HMIL currently has a 307 strong dealer
network and 627 strong service points across India.
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
HMIL presently markets 20 variants of passenger cars in six segments. The Santro in the B
segment, Getz Prime in the B+ segment, the Accent and Verna in the C segment, the
Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV
segment.
SWOT ANALYSIS
STRENGTHS
The Quality Advantage: Hyundai owners experience fewer problems with their
vehicles than any other car manufacturer in India. The Santro was chosen the best
in the premium compact car segment and the Getz in the entry level mid - size car
segment across several parameters.
A Buying Experience like No Other: Hyundai has a sales network of 300+ state-ofthe-art showrooms across 200+ cities, with a workforce of over 10000 trained sales
personnel to guide our customers in finding the right car.
Quality Service across 620+ Cities: Hyundai scored the highest across all 7
parameters:
least
problems
experienced
with
vehicle
serviced,
highest
service quality, best in-service experience, best service delivery, best service advisor
experience, most user-friendly service and best service initiation experience.
WEAKNESS
Commodity Price Risks: Hyundai commodity price risks to higher costs due to
changes in prices of inputs such as steel, aluminum, plastics and rubber, which go
into the production of automobiles. In order to mitigate these risks, the company
continues to attempts to enter into long term contracts based on its projections of
prices.
Exchange Rate Risk: The Company is exposed to the risks associated with
fluctuations in foreign exchange rates mainly of import of components & raw
materials and export
of
MARKETING MANAGEMENT
INDIA LIMITED
OPPORTUNITIES
Leading Growth: As the market leader, company led the growth in the passenger
car sector last year. Hyundai sales went up 30%.
Changing Life Style: As the life style of people in India is improving it offers an
opportunity to HMIL to increase its Growth on large scale.
THREATS
Risk Factors: In the course of its business, Hyundai is exposed to a variety of market
and other risks including the effects of demand dynamics, commodity prices,
currency exchange rates, interest rates, as well as risk associated with financial
issues, hazard events and specific assets risk.
Business Risks: The automotive industry is very capital intensive. Such investments
require a certain scale of operation to generate viable returns. These scales depend
on demand.
Competitors: Maruti Udyog Limited & Tata Motors Limited are great and potential
competitors of HMIL.
PRODUCT
According to Philip Kotler- A product means a set of attributes in the form of physical
product or services & ideas offered to the consumer for the satisfaction of his needs. It
includes physical product, services, ideas, personalities, places & organization.
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
PRODUCT LEVELS
Potential Product
Augmented Product
Expected Product
Basic
Product
Co
re
There are 5 product levels as shown in the diagram.
I.
CORE BENEFIT: Core benefit from HMIL products is that they are used for
II.
travelling purpose.
BASIC PRODUCT: Basic product for HMIL is cars. HMIL provides all the basic
things which a car requires. Brand & looks of Hyundai products is satisfying the
III.
basic requirements.
EXPECTED PRODUCT: Hyundai cars are just beyond consumers expectation.
HMIL is famous for delivering high value to its consumers. All consumer
expectation from HMIL is fully satisfied by our products. Hyundai cars have decent
IV.
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
V.
PRODUCT CLASSIFICATION
A product may be classified on following basic criteria:
A. DURABILITY & TANGIBILITY: Hyundai Cars come under the category of
Tangible & Durable Goods.
B. CONSUMER-GOODS CLASSIFICATION: In this category it falls under Specialty
goods. Hyundai cars carry a brand value which is very much necessary to come in
this category. HMIL consumers find that they dont have to go too far to buy a
Hyundai car as its showrooms are available in almost each and every city.
C. INDUSTRIAL GOODS CLASSIFICATION: In this category it falls under the head
of Materials & Parts.
a) Raw Materials: The manufacturing process of HMIL cars require are
obtained from natural resources like iron, steel, coal, etc. this all products are
limited in supply and there are constant price changes in these goods.
b) Manufactured Materials & Parts: the component materials are iron, steel,
etc. while component parts like engine, tiers, etc. are directly bought from
other producers.
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
1) INTRODUCTION: Our Company HMIL has crossed its introduction stage. But
now if it brings an new product to the market then it have to go through
introduction stage for that particular product. During this stage company adopted
Rapid-Penetration Strategy.
2) GROWTH: HMIL has also crossed its growth stage as Company showed great
growth during late 2000s. During this stage company adopted the marketing
strategy of increasing the quality of the product & added new features to it. In order
to attract price sensitive consumers company introduced Santro & i10.
3) MATURITY: HMIL is currently going through its Maturity stage. But due to its
new product introduction & new offers it is between Maturity & Growth. Its
constantly making efforts to enter new markets & constantly trying to increase its
demand.
4) DECLINE: HMIL may go in its decline stage if does not introduce new potential
products to the market. Many Hyundai Product like Hyundai Santro have faced this
stage & company has adopted Divestment Strategy.
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
PRODUCT LINE
HMIL is just having one product line i.e. Cars. Our company produces cars of 6 different
segments as said above, satisfying almost each kind of consumer in the market. The reason
for close relation of our product is that it can be sold out through same distribution
channel.
PRODUCT MIX
A Product mix is the set of all products & items a seller particularly offers for sale. A
product mix consists of various product lines. HMIL have six product line shown in below
table.
The table given below shows the variety of cars sold by HMIL.
It also shows the segments in which it serves.
SUV
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MARKETING MANAGEMENT
INDIA LIMITED
Santro
Getz prime
Accent
I20
Sonata
Tucson
eon
I10
Verna
Elantra
Embera
Terracan
Santafe
Thus HMIL serves various segments with its huge variety of cars. It serves to all class of
people.
PRICE
PRICE is the element in the marketing mix that creates sales revenue, the other elements
are costs.- Philip Kotler.
OBJECTIVES OF PRICING
Pricing decisions are made keeping following things in mind.
1) EARNING OF REASONABLE RATE OF RETURN ON INVESTMENT: Hyundai
keeps its price according to best price provider view. But it also keeps it rate of
return in mind. Thus it is able to satisfy its stakeholder very easily. Company is
earning an stable rate of return.
2) MARKET PENETRATION: Company adopted this strategy by launching its
Santro & i10. Company was able to attract many consumers with help of market
penetration.
3) PRICE STABILITY: Price of a automotive company can never be stable due to
price of Raw-material required for its production, labor cost, Government policies,
etc. but then also Hyundai is almost able to maintain a stable price policy.
4) TO MAINTAIN OR IMPROVE THE MARKET SHARE: There is huge amount of
competition in the market. To survive in the market a company shall be best price
provider. Hyundai has many potential competitors to win market share over them it
needs to maintain its price very well.
5) TO COPE-UP WITH THE COMPETITION: As explained in above point we need
to maintain our price to survive in the competition.
6) MARKET SKIMMING: In market skimming there are certain consumers who are
prepared to pay higher price for one reason or another. Hyundai provides various
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
reasons to its buyers so that they are willing to buy Hyundai cars instead of any
other car available in market.
7) PROFIT MAXIMISATION OBJECTIVE: The main objectives of a company are
profit maximization but for Hyundai its not always been the same. Due to potential
competitors it is never been possible for Hyundai to adopt profit maximization
policy. But still its earning reasonable amount of profit.
IMPORTANCE OF PRICE
Price of a product influence the price paid for the factors of production like labour, land,
capital & entrepreneurship.
Price of commodity is matter of concern for a buyer & a seller.
Price of goods is always been problem for every firm/company. Hyundai so far is able to
maintain its pricing policies.
iii.
iv.
v.
II.
MARKETING MANAGEMENT
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i.
DEMAND: Demand of the product affects its price on a huge scale. But
Hyundai is able to keep its demand high due to new features & Varity in its
ii.
products.
COMPETITION: Competitors price of similar kind of product also affect
the price of our product. Hyundai so far is able to give tough competition to
iii.
its competitors.
SUPPLIERS: Suppliers of raw material also affect the price of commodity.
Hyundai buys its best quality of Raw- Material from best suppliers in the
iv.
market.
ECONOMIC CONDITIONS: The inflationary & deflationary tendency
affects the pricing. During recession period in India Price of cars came down
v.
vi.
Tucson.
GOVERNMENT: Government Policies affect price of good on large scale.
The current budget in India has hiked the prices of Cars.
DISCRIMINATORY PRICING
Companies often adjust their basic price to accommodate differences in customers,
products, and so on. Price discrimination occurs when a company sells a product or service
at two prices that do not reflect a proportional difference in costs.
Hyundai is never been discriminatory in its pricing policy, so there is no point of discussion.
MARKETING MANAGEMENT
INDIA LIMITED
PLACE
A channel of distribution means a system consisting of different intermediaries through
which products or services are distributed from the place of manufacturer to the end
consumer. G.B.Gill.
RESEARCH: Hyundai have always gathered information about its consumers &
II.
delivered products according to their needs. Santro was designed for better mileage.
PROMOTION: Hyundai is been promoting its product through various means like
III.
IV.
very simple and easy process of getting the ownership of the car.
ORDER PROCESSING: Order processing at HMIL is very fast due to huge
V.
VI.
VII.
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INDIA LIMITED
TYPES OF INTERMEDIARIES
There are two type of Intermediaries.
I.
AGENT MIDDLEMEN: Broker of goods are persons who have no control over
the goods he just brings buyers and sellers together. Hyundai use brokers in its
distribution channel. Manufacturers agent are the agents of Manufacturer,
manufacturer hires them to sell his products. Hyundai also use Agents to sell its
II.
MARKET CONSIDERATION
Hyundai have well considered the Indian Market and selected the
distribution channel. Hyundai has 1st tried to understand the nature of
Indian market and then have established its product in India.
Hyundai have many potential consumers in India.
Geographic concentration of Indian Market is un-even which have made
easy for Hyundai to establish its product.
Consumers in India are more price conscious thus Hyundai have made its
II.
III.
MARKETING MANAGEMENT
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IV.
V.
MARKETING STRATEGY
These includes following things:
I.
TARGET MARKET: The target market for Hyundai is India & in India
consumers are of different kind so it becomes important for Hyundai to design
II.
III.
IV.
V.
VI.
VII.
side.
PRICES: The price of cars of Hyundai is almost similar at every place.
COMMUNICATIONS: There is constant communication between consumer &
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
II.
ORDER PROCESSING:
Hyundai is trying to shorten the order-to-payment cycle, with its full
efforts. It has so far succeeded in doing so.
WAREHOUSING:
Hyundai showrooms across all India have great warehousing facility.
Hyundai does not keep much of stock in ware house & produce goods
according to the need.
Every Hyundai Showroom have each & every car available according to
III.
IV.
PROMOTION
Marketing communications are the means by which firms attempt to inform, persuade &
remind consumers- directly or indirectly about the products & brands that they sell.
MARKETING MANAGEMENT
INDIA LIMITED
II.
III.
IV.
V.
VI.
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
IDENTIFY THE
TARGET
AUDIENCE
DETERMINE
THE
COMMUNICATIO
NS OBJECTIVES
DESIGN THE
COMMUNICATIO
N
SELECT THE
COMMUNICATIO
N CHANNEL
ESTABLISH THE
TOTAL
MARKETING
COMMUNICATIO
NS BUDGET
DECIDE ON
MEDIA MIX
MEASURE THE
RESULT
MANAGING
INTEGRATED
MARKETING
COMMUNICATIO
N
MARKETING MANAGEMENT
INDIA LIMITED
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NAVNIRMAN INSTITUTE OF MANAGEMENT
MARKETING MANAGEMENT
INDIA LIMITED
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NAVNIRMAN INSTITUTE OF MANAGEMENT