Strategic Marketing

1. Describe how the “company” is doing relative to its competition

Hyundai -

Genesis

-Turns a corner fast: striking and progressive design.

-High Performance: class leading and award-winning engine that provides lots of power

and efficiency. Something you can brag about!

-Style and premium comfort: more passenger and interior volume. High end audio,

advance navigation.

-High end technology: award winning engine to give you an adrenaline rush

-Active Safety: this car really looks after you and your family

Build and Price: Starting at 34,200 and up to 46,500.Hyundai Genesis , directly inspired by

the likes of the Infiniti M and Lexus GS, recast the brand from its economy-car roots in a

way its front-drive Azera never could. Since then it's brought out a sporty Genesis Coupe

and the flagship Equus sedan, but it's the Genesis that firmly convinced car reviewers and

buyers alike, that Hyundai could compete in the luxury arena, without apology..

Final notes: The Genesis is an overall interpretation of luxury that can be summed up

in its styling. A touch of Lexus here, a bit of Infiniti and Mercedes there. The 2012

Hyundai Genesis comes in, featuring numerous thoughtful updates that enhance its

already considerable appeal. Hyundai has generally fixed what was broken and

shaken off its poor brand image, known for generous warranties and low prices

Toyota

Lexus

Lexus' relative newcomer status as a marketing challenge for the brand, although some

have debated the requirement of a long history. European rivals have marketed their

decades of heritage and pedigree, whereas Lexus' reputation rests primarily upon its

perceived quality and shared history with parent company Toyota. Several analysts have

stated that Lexus will have to develop its own heritage over time by highlighting

technological innovations and producing substantial products.

Final notes: Toyota has been focused intensely on overtaking GM as the biggest

automobile producer in the world and has sacrificed the simple, yet vital basis for

their success – quality.

Nissan

Infinity

Infiniti is an upscale automaker from Japan. Though most of its products are related to

those sold by parent company Nissan, Infiniti looks to achieve a premium status by

infusing its cars and SUVs with spirited performance and additional luxury content. Nissan

announced the return of front-wheel drive to the Infiniti lineup on August 30, 2011 with

the release of the Infiniti JX. It will join Toyota's Lexus brand in terms of blending front-

wheel drive and rear-wheel drive vehicles again; since its inception in 1990 Lexus has had

front-wheel drive vehicles mainly for entry-level vehicles like the Lexus ES and Lexus

RX.As of 2011, the G lineup (consisting of the sedan, coupe, and convertible) accounts for

60% of sales. This has been attributed to their SUVs (including crossovers) which have

been seen as determinedly aimed at the narrowest of niches, a lost opportunity as SUVs are

popular in the U.S. market. In contrast, at archrival Lexus, SUVs contributed half of the

sales volumeFinal notes: In 2011, Infiniti sales fell, while other import luxury vehicles

were doing well.

Volkswagen

CCR Line

Padded surfaces abound. Top-quality materials create an attractive, comfortable, well-made

cabin. Sport's leatherette seats and faux-metal plastic trim are credible imitations and still

feel class-appropriate."

Reasons to buy the Volkswagen CCR-Line

Ok braking distance from 6comp0mph, Good range in the city, Good range on the highway

and average size back seats.

Final notes: Pros Fuel-efficient and energetic turbo four-cylinder; well-built and

stylish interior; ample features list; all-wheel drive on VR6 model.Cons: Only four

2

-

W

h

a

t

a

What are the target market segments (customers) in the space and what are the primary and

secondary target markets addressed by “company” and its two major competitors?

Demographic Are mostly baby boomers and High Tech Professionals, college-educated

and well paid. Their household incomes are more than twice the national

median. Live in new subdivision in the metropolitan sprawl. Commute to

white-collar jobs in health care, education and retail. Usually don’t have

children at home. Fill their driveways with midsize luxury cars

Social Status Upper-Middle Class commuter neighborhoods

Psychographics Self-assured, confident

Behavioral Enjoys doing lots of Social Activity. They describe themselves as

workaholics and multitaskers. Travel, keep fit and support the arts.

Hyundai -

Genesis

Baby Boomers and High Tech Professionals who likes to Travel – Two

major competitor are Toyota Lexus and Infinity

Toyota Lexus Professionals who enjoys lots for Social Activity. Two major competitors are

Hyundai Genesis and Nissan Infinity

Nissan Infinity Infinity targets affluent adults 25-54 who are self- assured and confident.

Two major competitors are Toyota Lexus and Audi

Volkswagen

CCR Line

Professional adults from 25-45 range. They travel a lot. Two major

competitors are Toyota Lexus and Hyundai Genesis

GM Baby boomers generation has been the main target market for just about

every product. The focus is starting to turn towards the baby boomers

children who are in their mid 20’s and 30’s who enjoys lots of social

activities.

3-Analyze the impact of Industry Forces on “company” (under current market conditions, economy,

quality, environment)

Rivalry of competitors: The auto industry is considered to be an oligopoly, which helps to minimize the

effects of price-based competition. The automakers understand that price-based competition does not necessarily

lead to increases in the size of the marketplace but more recently the competition has intensified - rebates,

preferred financing and long-term warranties have helped to lure in customers, but they also put pressure on the

profit margins for vehicle sales.

The Hyundai Genesis has created a competitive category against its rivals, in which performance, power, luxury

and comfort exist in balance with incredible value in this slow economy and unstable market condition. In

addition, Hyundai is in alignment with Blue Drive philosophy which is to become the world leader in

sustainability. Simply put, no other car offers so much for so little; starting at a selling price of USD 34,000. On

seats; limited rear-seat headroom; smallish trunk. There are more reasons to buy a

WINNER A4 Premium rather than Runner-up CCR Line.

GM GM products focus primarily on its four core divisions – Chevrolet, Cadillac, Buick, and

GMC. The White]President Obama declared that the restructuring "will mark the end of an

old GM, and the beginning of a new GM; a new GM that can produce the high-quality,

safe, and fuel-efficient cars of tomorrow; that can lead America towards an energy

independent future; and that is once more a symbol of America's success.

Final Notes: The GM restructuring is a shift toward a new leaner, greener GM, which

will aim to break even with annual sales much lower than previously stated

the other hand, the brand name remains weak in the United Sates hence the need for a larger marketing campaign

in order to catch up with its well established rivalry of competitors such as Lexus and Infinity.

Bargain power of customers: The American consumer became disenchanted with many of the products being

offered by certain automakers and began looking for alternatives, namely foreign cars. On the other hand, while

consumers are very price sensitive, they don't have much buying power as they never purchase huge volumes of

cars.

The Hyundai Genesis was designed to offer a different luxury alternative to its consumers at a good Value Market

price. With handsome styling, generous luxury features and engine power to match, the Hyundai Genesis takes its

rightful place among well-established sedan rivals and it is selling. Its price in this slow economy and humble

lineage might make the 2012 Hyundai Genesis seem more of a competitor to the likes Toyota Avalon. But it's

actually more of a bargain-priced rival to premium striders like the Infiniti or even German midsize sedans.

Hyundai’s increase in both quality (named “Best Value Car Award Winner” and safety (received “Automotive

Excellence in Safety Award”) along with its low prices will allow it to continue to grab new market share.

Hyundai has aggressively collected automobile customer feedback over the last decade. By listening to what

customer wants and then delivering on those desires, the company is stronger, the public perception of the brand

has improved remarkably, and sales are through the roof.

Threat of New Entrants: The emergence of foreign competitors with the capital, required technologies and

management skills began to undermine the market share of North American companies.

The Hyundai Genesis (from Korea) was Introduced in March, 2007 as the "Concept Genesis", the sedan was

designed by Hyundai as a "progressive interpretation of the modern rear-wheel drive sports sedan". The body

design took three years and the total cost of the program was $500 million over a development period of 23

months. Reliability testing ran for 800,000 miles.

Hyundai markets the Genesis as offering "the performance of a BMW 5-Series and the interior packaging of a 7-

Series at the price of a 3-Series.”

Threat of Substitutes: in the car industry, we are not just talking about the threat of someone buying a

different car. You need to also look at the likelihood of people taking the bus, train or airplane to their destination.

The higher the cost of operating a vehicle, the more likely people will seek alternative transportation options. The

price of gasoline has a large effect on consumers' decisions to buy vehicles. Trucks and sport utility vehicles have

higher profit margins, but they also guzzle gas compared to smaller sedans and light trucks. When determining the

availability of substitutes you should also consider time, money, personal preference and convenience in the auto

travel industry. Then decide if one car maker poses a big threat as a substitute.

There cannot be a better example as of threat of substitutes than The Hyundai Genesis Business Model of “ not

paying the Premium for Premium”. The combined Hyundai/Kia trade-ins coming from 10 premium brands

(Acura, Audi, BMW, Cadillac, Infiniti, Jaguar, Lexus, Lincoln, Mercedes-Benz and Volvo) made up 6.48 percent

for 2011 models purchases. This is both an indication of premium buyers looking to save money in tough

economic times and at the same time the growing appeal of Hyundai/Kia products like the near-luxury Hyundai

Genesis sedan.

4 - Develop a Positioning Map for the firms in the industry by defining the X and Y axis to put

in a unique position relative to its rivals

5 - How is the ‘company” differentiating itself from its rivals?

This Korean Luxury car is getting sharper, distinctive and classy at a truly attractive base price of $38,000 (the V-

6 model starts at $34,200) that undercuts comparable luxury models by a significant sum.

Value

Classy/Distinctive

Quality

HIGH

Performance LOW HIGH HIGH

HIGH

VW CCR LIN

VW CCR LINE

VW CCR LINE

VW CCR LINE

NISSAN INFINITY

TOYOTA LEXUS

GM

GM

TOYOTA LEXUS

NISSAN INFINITY

GM

TOYOTA LEXUS

NISSAN INFINITY

GM

TOYOTA LEXUS

NISSAN INFINITY

GM

GM

VW CCR LIN

GM

6 - Can you suggest any improvements in their positioning?

I would suggest Hyundai Legacy will need to be at a higher performance level for better positioning. Despite their

recent improvements, it is yet difficult to convince the average consumer that Hyundai is no longer purely about

economy but improved engineering if we compare with their Japanese peers Toyota and Nissan. Vehicle pricing

is likely to increase in the coming years as well.

7 - Describe the branding strategy of “company” and compare it to its leading competitor

The company is working diligently to shed its ‘economy’ class image. The company is introducing a concept

called ‘modern premium’ and the slogan “New Thinking, New Possibilities” as well as “The New Era of

Luxury”. The current ‘Drive Your Way’ slogan will also be replaced, with a campaign more focused on improved

customer service, more innovative marketing, and a better look and feel to the vehicles.

Hyundai has, in the past 10 years, been very successful in building an image for quality. Their direction for 2013

will be defined as new premium or modern premium.

Hyundai has seen US sales surge 23% through November, in a market only up 11%. The company will ride this

waive hard through a campaign that includes a heavy increase in marketing investments, a new dealer education

program, and improved showroom identity. All this will come at a price increase as well; more money for

premium value to the customers.

Lexus, one of the leading competitors, has been advertised to luxury consumers using specific marketing

strategies, with a consistent motif used for the marque's advertisements. Industry observers have attributed Lexus'

early marketing successes to higher levels of perceived quality and lower prices than competitors, which have

enabled the marque to attract customers upgrading from mass-market cars. A reputation for dependability,

bolstered by reliability surveys, also became a primary factor in attracting new customers from rival premium

makes.

Lexus ranked highest in customer satisfaction among luxury brands in the J.D. Power and Associates 2012

Customer Service Index for the fourth consecutive year. Lexus dealers continue to raise the bar in delivering on

the promise of industry-leading customer satisfaction.

8 - How effectively does “company” compete against rivals across products and market segments?

The 2012 Hyundai Genesis can compete with luxury sedans costing more than $50,000, but starts at $34,200,

making it a good choice for shoppers who put value before brand recognition.

The 2012 Hyundai Genesis is a good choice for shoppers who want luxury appointments, a powerful engine and a

smooth ride but don’t want to pay a premium for similar cars from more well-known luxury brands like Lexus.

The biggest obstacle for the Genesis is whether high end consumers can sacrifice brands like Lexus, Mercedes-

Benz, BMW or Audi. For this reason, Hyundai is still committed to offer premium quality and that will come at a

higher price for next year thus changing demographic, social , psychographics and behavioral consumers’

perception of the brand.

Hyundai was known more for its prices than its quality in the past. Now, Hyundai is known for its class-

competitive, affordable vehicles, like the Accent, Elantra, Sonata and Tucson. The automaker also has two luxury

vehicles, the Genesis and Equus, and the automotive press says Hyundai has done a good job of building well-

made vehicles at competitive prices.

Shoppers looking at the 2012 Genesis will also want to check out the Audi A6. The Audi A6 is a good alternative

for shoppers who frequently experience inclement weather because it offers optional Quattro all-wheel drive, and

the Genesis doesn’t have an all-wheel drive option.

The Lexus ES is comparable to the Genesis in terms of comfort, quality and interior features. They note that the

ES is more of a luxury cruiser than a performance-oriented luxury car, which reviewers also say about the

Genesis.

9 - Use Value Curve, SWOT, Create a value curve for “customer” and its key competitors by identifying as

many key elements as you can for the market and write a summary paragraph of no more than half a page

that you can give as an elevator pitch that will help you secure this lucrative consulting contract. If you like

you can also do this in two PowerPoint slides.

HIGH

5

4

3

2

LOW1

P rice Quality P erfo rmance Luxury C lassy F ast C o mfo rt

T echno lo gy

and

Inno vat io n

Safety

F eatures

and

Specif icat io ns

B lue Link

A wards

and

R eviews

Hyundai Genesis

Toyota Lexus

Nissan Infinity

Wolkswagen CCR Line

GM

Latin Marketing Strategies offers custom business to business (B2B) marketing services with the experience

to get results.

Founded in 1998 as the first “marketing services integrator” – a one-stop source for the full range of

integrated marketing services for business-to business companies. Until then, companies looking to

implement an integrated marketing effort using multiple marketing disciplines would have to hire a number

of specialty firms and then oversee all of these vendors.

The “marketing services integrator” concept behind LMS is simple: create a one-stop source for both

strategic and tactical marketing services.

Given that Hyundai has been the fastest growing category for the past five years, with year-over-year

growth rates of 12%, Latin Market Strategies can help you select the marketing services that will work best

for you.

We offer the following services:

- Market Summary

- Competitive Analysis

- Communication Strategies

- Launch Strategies

- Public Relations

- Advertising

- Other Promotion

- Pricing Strategies

- Vertical Markets/Segmentation

- International Penetration

- Success Metrics