Marketing Strategy in India

Automobiles (Cars) Industry

Prepared By -Section : BRoll no : 2011114 - 2011122

HYUNDAI I20

Company Information

• Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea.

• It is the largest passenger car exporter and the second largest car manufacturer in India.

• HMIL presently markets 8 models of passenger cars across segments. • The A2 segment includes the EON, Santro, i10 and the i20.• The A3 segment includes the Accent and the Verna.• The A5 segment includes the Sonata Transform and the SUV segment

includes the Santa Fe.

Specifications

Transmission Type Automatic

Engine Description 1.4L 100PS GAMMA with VTVT technology

Engine Displacement(cc) 1396

Maximum Power 100PS at 5,500rpm

Maximum Torque 13.9 kgm at 4200 rpm

Mileage-City(kmpl) 11.5

Mileage-Highway(kmpl) 15.0

Fuel Type Petrol

Fuel Tank Capacity(litres) 45

Seating Capacity 5

Pricing

Hyundai i20 Price in India – Ex-showroom Prices• Hyundai i20 magna Price (base model) – 4,80,200/-• Hyundai i20 Asta Price – 5,60,201/-• Hyundai i20 Asta (O) top end model Price – 5,82,200/-These are Delhi Ex-showroom prices for Hyundai i20.

Pricing has been done in such a way to capture the hatchback segment. Rivals in this segment primarily include Volkswagen polo, Hyundai Verna, Fiat Punto, Toyota Etios, Maruti SX4, Chevrolet Aveo.

Communication & Distribution

• Tagline – ‘I got it All’• Promoted as a Uber Cool Car.

Catered to target the market share of Maruti SX4 and stop the inroads made by new entrants like Honda Jazz and Fiat Punto, Hyundai has thrown its weight behind the distribution channel to capture the hatchback segment. Even with huge demand waiting time has been cut short as much as possible. 1-2 months in worst cases.

Maruti SX4

Men are back…..!!!!

Target Segment

Maruti SX4 is priced in the range of 6-8 Lakhs and it is considered to be a mid-range luxurious car. It targets the middle income group and to people aged 25-40.

It has the seating capability of 4-5 people which is considered ideal for nuclear families. Thus it basically targets male managers, Entrepreneurs and professionals who have been working for 5-6 yrs and have incomes of more than approx. 40k per month.

Product Features

External: All the variants are approximately have dimensions of about 4490 mm x 1735 mm x 1550 mm.It has a ground clearance of about 170 mm and turning radius of about 5.3 m.

Engine: It has a 16 V DOHC, VVT engine with 4 cylinders. The engine has a maximum output of 104.68 ps at 5600 rpm.

Chassis: For the front wheels it has ventilated disc brakes and for the rear wheels it has drum brakes.Its seating capacity is 5 and has a 50 litres fuel tank.

Comfort: The Maruti SX4 has manual as well as automatic air-conditioners and heaters.

PricingThis premier sedan has 3 petrol variants:

SX4 Vxi (petrol) : The Sx4 VXi is Maruti's entry level model in the SX4 series with premium features and other high end features. New cars in this series have a showroom price ranging from around Rs. 6.2 lakhs to around Rs. 7.0 lakhs inclusive of all charges.

SX4 Zxi (petrol) : The Sx4 VXi is Maruti's upper scale level model in the SX4 series with other high end features. New cars in this series have a ex-showroom price ranging from around Rs. 6.9 lakhs to around Rs. 7.7 lakhs inclusive of all charges.

Contd.

Sx4 Zxi (leather option petrol) :The Sx4 ZXi is Maruti's upper scale level model in the SX4 series with top features and other high end features. Also included are leather furnishings and interior. This variant has a showroom price of around Rs. 7.25 lakhs and on-road price of around Rs. 8.10 lakhs, which is inclusive of all charges such as insurance, octroi, RTO, etc.  There is also 2 diesel variants for the car Maruti SX4 ZDi and VDi and is priced at about 8-9.5 lakhs.

Marketing strategies

The strategy taken up by Maruti SX4 is different from other cars in the same segment. For a change a sedan has been marketed on the basis of being masculine and manly. It is refreshing since most players in this segment are using classiness and quality as their USPs which is proving to be a marketing clutter.

Communication strategy

The main points that can be noted in the communication strategy are:

Clutter breaking: As told earlier, instead of the quality factor which is taken for granted in case of sedans it differentiates itself by using the ‘men are back’ campaign and projects itself as the men amongst the cars.

Role of ladies: The logic of using women for their campaign has been different from what other cars have done. They have bee shown accepting the fact that SX4 will always be a priority for them.

The campaign has been successful in the initial phase and there has been sufficient interest in the consumers about the product.

SWOT analysis

Strengths:•Design and styling•Comfort and safety features•Brand name •Value for money

Weaknesses:•Mileage comparatively lower

Opportunities:The growing segmentIncreased spending by consumersLack of close competitors other than honda

Threats:Counter competition – Honda city

ETIOS LIVA – FRESH LOOKS

Here it comes for......India First, World First

Target Segment

Theme of the car design, promotion keeping in mind the Indian market and pricing, clearly

suggests that

ETIOS is a Mid-Size HATCHBACKFor the YOUNG Generation.

Upper-middle class families and Upper-class Youth

Etios LIVA – Product features

Exterior : Stylish and Sporty, aerodynamic roof and body, Based on the concept of... “Bold Simplicity”.

Interior : Spacious, driver's seat like a “Cockpit”,

Large cabin and boot space, Bottle and mobile holders.

Performance : 1.2L, 16V DOHC Engine, 18.3Kmpl

gives a comfortable driving experience.

Safety : ABS, Air Bags, Good ground clearance, anti-corrosion sheets in water prone parts.

Etios LIVA - Communication

MULTI-CHANNEL Communication At its Best● Toyota started the campaign and informed and

engaged the customers for over 10 months● Showcased in Delhi Auto Expo Jan, 2010.● TVC launched with Toyota assuring “Q-promise”.● “I” in the Etios – The Indian Stamp in promotion.● Tagline - “India first, World First”● Best use of Social networking sites and Internet

Etios LIVA – Distribution and Pricing

Priced in the range of 4 to 6 lacs, Etios LIVA was launched in 2011.

The distribution channel is also multifarious.

1. Launch: In 18 cities of India, including some emerging market-potential cities.

2. Availability:Orders can be delivered in 1 month- good manufacturing,logistics & marketing integration.

3. Distributors : TKM showrooms and franchise based distribution channel.

VOLKSWAGON POLO

Volkswagen, already top dog in Europe, China and South America,is ready for its big India push.

Volkswagen, already top dog in Europe, China and South America,is ready for its big India push.

VW’s Dominance

• 1. Toyota• 2. General

Motors• 3. Volkswagen

GLOBAL

• 1. Volkswagen• 2. PSA-Citroën• 3. Fiat

EUROPE

• 1. Volkswagen• 2. Fiat• 3. General

Motors

SOUTH AMERICA

• 1. Volkswagen• 2. General

Motors• 3. Hyundai

CHINA

• 1. Maruti• 2. Hyundai• 3. Tata Motors• 8. Volkswagen

INDIA

Ranks by Units Sold

The Three Stage India Entry

1

• With an assembly plant in Aurangabad, Skoda Auto set foot in India in 2001. A mid-market brand in Europe, it has an upper crust image here.

2

• In 2007, Volkswagen set up its own sales network and began making Audi A4 and A6 at Aurangabad. Competing with BMW and Mercedes, it sells 150 cars a month

3

• 3When Volkswagen got Jetta to India in 2008, it had 14 dealers. By end- 2010, it will have 60 outlets (150 for the group) to sell Beetle, Passat, Polo and Touareg.

Product

• Fuel Economy– Mileage Highway (km/liter) 13.5– Mileage City (km/liter) 9.2– Mileage Overall (km/liter) 10

• Capacities– Seating Capacity (person)5– Fuel Tank Capacity (liter) 45

• Engine– Engine Type/Model 3 - Cylinder – Displacement cc 1198– Power (PS@rpm) 75PS @5400rpm – Torque (Nm@rpm) 110Nm @3750rpm

Price

Version Avg Showroom Ex Price

Trendline 1.2L (P) Rs. 4,61,899

Comfortline 1.2L (P) Rs. 5,13,940

Trendline 1.2L (D) Rs. 5,64,970

Highline1.2L (P) Rs. 6,10,646

Comfortline 1.2L (D) Rs. 6,28,199

Highline 1.6L (P) Rs. 6,45,508

Highline1.2L (D) Rs. 7,22,459

Innovation based “Communication”

• Print ad • VW POLO R CUP INDIA

Innovation based “Communication”

TOI Roadblock Campaign

The world's first ''speaking newspaper‘

Segment

• C Segment Cars - Small family/compact cars refer to the hatchbacks and shortest saloons and estate cars with similar size.

• They are approximately 4250 mm long in case of hatchbacks and 4500 mm in the case of saloons and estate cars.

• Compact cars have room for five adults and usually have engines between 1.4 and 2.2 litres, but some have engines of up to 2.5 litres.

Comparison with old Verna

• Increase in engine Power• Automatic climate control• Better handling • Improved interiors

First in its Segment

• Improved safety with Six air bags• Parking Cameras and sensors• Engine start/stop button with smart key• Supervision cluster with Blue illumination • Clean air cluster Ionizer• Power folding outside mirrors with turn indicators • Three gear box options • Four different power plant

Comparison with Competition

Pricing

Model Engine CC Prices on road

Verna – Fluidic 1.4 1399, MPFI 8,12,000

Verna - Fluidic 1600, Gamma 8,90,000

Verna Fluidic SX 1600, Gamma 9,59,000

Verna Fluidic SX (O) 1600, Gamma 10,30,000

Verna Fluidic AT 1600, Gamma 11,11,000

Continued..

THANK YOU