MARKETING MANAGEMENTMARKETING MIX OF HYUNDAI MOTORS INDIA LIMITEDSTUDY OF MARKETING MIX OF HYUNDAI MOTORS INDIA LIMITEDMARKETING MIXThe success of any firm depends on marketing & the success of Marketing depends on Marketing Strategies. Marketing Strategies are concerned with elements of Marketing Mix. Therefore important of the study of Marketing Mix cannot be overemphasized.MEANING OF MARKETING MIXMarketing Mix means a set of policies pertaining to product, physical distribution, price & promotion which are under the control of management & influence the reactions of the consumers.A set of Marketing tools that the firm uses to pursue its marketing objectives in the target market. Kotler.ELEMENTS OF MARKETING MIX:According to Jerom Maccarthy, there are four elements of Marketing Mix. Product Price Place (Physical Distribution) PromotionThese are known as 4 Ps of Marketing Mix.

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.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 ANALYSISSTRENGTHS 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-of-the-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 vehicles. The company manages the exchange risk by using appropriate hedge instruments depending on the prevailing market conditions and the view on the currency.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.PRODUCTAccording 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.PRODUCT LEVELS

There are 5 product levels as shown in the diagram.I. CORE BENEFIT: Core benefit from HMIL products is that they are used for travelling purpose.II. 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 basic requirements.III. 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 mileage & best quality engines.IV. AUGMENTED PRODUCT: Hyundai cars are always exceeding its consumer expectations. It can be easily seen from its success in past decade. The success of i10, i20 & santro proves that HMIL products are above consumer expectations. HMIL provides all possible values to its consumer at best cost. We provide best after sales service with help of 620+ service stations spread across the country.V. POTENTIAL PRODUCT: Hyundai is well capable of delivering all augmentations it is well seen in SUV class TUSCON. There are many upcoming projects of HMIL which will increase consumer satisfaction.PRODUCT CLASSIFICATIONA 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.

PRODUCT LIFE CYCLE

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.

PACKAGING & LABELINGA. PACKAGEING: Packing is meant for protection & maintenance of the quality of the product. HMIL provides best maintenance of its Cars. We use best transportation service to transport our car to one place to another & thus it reaches damage free to our consumer. Hyundai Itself is a big Brand name & logo of the company is always there on its cars.B. LABELING: The label of the company gives following information very clearly:a) Brand nameb) Address of HMILc) Directions to used) Retail Pricee) Nature of product, etc.Thus by labeling we are easily able to communicate our brand name & Product information.PRODUCT LINEHMIL 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 MIXA 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.

Segments/ Product line

BB+CDESUV

SantroeonGetz primeI10AccentVernaI20ElantraSonata EmberaTucsonTerracanSantafe

Thus HMIL serves various segments with its huge variety of cars. It serves to all class of people.PRICEPRICE is the element in the marketing mix that creates sales revenue, the other elements are costs.- Philip Kotler.OBJECTIVES OF PRICINGPricing 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 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 PRICEPrice 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.FACTORS AFFECTING PRICING DECISIONSGenerally there are two type of factors that affect the price of commodity.I. INTERNAL FACTORS: These are factors within the organization.i. ORGANIZATIONAL FACTORS: There are no such reports about price issue in Hyundai because of its management.ii. MARKETING MIX: The change in cost of any of other elements of marketing mix may affect the price of product on huge amount. Till now in India Hyundai is facing no problems regarding its labour cost & various other cost like Marketing cost.iii. PRODUCT DIFFERNTIATION: Hyundai is very well able to differentiate its price of products according to the quality they are providing.iv. COST OF PRODUCT: Cost & price of product are interdependent. If cost of anything related to product increases its price also increases.v. OBJECTIVES OF THE FIRM: There are certain goals of every organization in order to fulfill such goals sales is the basic revenue source, so it becomes very necessary for company to decide its price accordingly.II. EXTERNAL FACTORS: These are factors which are beyond the control of the organization.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 products.ii. 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 its competitors.iii. SUPPLIERS: Suppliers of raw material also affect the price of commodity. Hyundai buys its best quality of Raw- Material from best suppliers in the market.iv. ECONOMIC CONDITIONS: The inflationary & deflationary tendency affects the pricing. During recession period in India Price of cars came down dramatically. It affected all automotive companies including Hyundai.v. BUYERS: In India there is all kind of buyers. Hyundai provides goods according to need & ability of buyers. They may buy Santro Or may buy Tucson.vi. GOVERNMENT: Government Policies affect price of good on large scale. The current budget in India has hiked the prices of Cars.DISCRIMINATORY PRICINGCompanies 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.PRICE DISCOUNTS AND ALLOWANCESHyundai do provide its consumers price discounts and allowances. CASH DISCOUNT: Hyundai do give its consumer an cash discount which keep on changing according to the place & time. QUANTITY DISCOUNT: Hyundai Also gives quantity discount to its consumers. FUNCTIONAL DISCOUNT: Hyundai provides its consumers Functional Discount. SEASONAL DISCOUNT: Hyundai gives seasonal discount like festive season discount to consumers. ALLOWANCE: If any consumers do not want a feature then Hyundai Allows certain allowances to him.PLACEA 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.FUNCTIONS OF DISTRIBUTION CHANNELFollowing are the functions of distribution channel.I. RESEARCH: Hyundai have always gathered information about its consumers & delivered products according to their needs. Santro was designed for better mileage.II. PROMOTION: Hyundai is been promoting its product through various means like newspaper, TV, online promotion, etc.III. NAGOTIATION: After consumer makes a decision to buy a Hyundai car its an very simple and easy process of getting the ownership of the car.IV. ORDER PROCESSING: Order processing at HMIL is very fast due to huge capacity of 6 lakh units per annum.V. FINANCING: As Hyundai is an MNC it have never faced financial crisis.VI. RISK TAKING: Higher the risk, Higher the reward. Hyundai is always been taking risks but have always got huge rewards for it.VII. PHYSICAL DISTRIBUTION: Movement of product at HMIL is very rapid, due to the demand of its products.LEVELS OF DISTRIBUTION CHANNELEvery organization needs to follow an level of distribution channel. HMIL is following one-level distribution channel.One-level channel contains one intermediary.Hyundai sells its franchise to a local merchant who sell cars on behalf of Hyundai.There are 200+ Hyundai merchants in India, selling Hyundai cars on behalf of Hyundai.TYPES OF INTERMEDIARIESThere 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 product in its distribution channel.II. MERCHANT MIDDELMEN: In this case Hyundai have their Brokers & Agents who sell cars on behalf of Hyundai getting the commission according to the agreement between them. The merchants who buy the Franchise open the show room with the brand name of Hyundai which helps them to sell Hyundai cars.FACTORS AFFECTING CHOICE OF DISTRIBUTION CHANNELI. 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 product according to that.II. PRODUCT CONSIDERATION Per unit sale value of the product is high thus it directly affects the distribution channel. As weight & size of cars is more it is send through trucks or trains. It is not of perishable nature. It is of technical nature & requires service. The HMIL have narrow product line. It is made according to consumer demand & need. It is not an seasonal product, but its sales increases in festive season. It is an standard product & HML have its copy rights. It gives new product to market which are generally accepted by market. It generally have an stable price.III. COMPANY CONSIDERATION Financial strength of HMIL is sound. Reputation of HMIL is very high in market. It is 2nd best company in India in its field, thus have good market control.IV. MIDDELMEN CONSIDERSTION Hyundai have always found potential middlemen.V. CONSUMER CONSIDERATION Hyundai have designed its car according to consumers in India. Consumers in India are price conscious & mileage conscious thus it have designed its product accordingly.MARKETING STRATEGYThese 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 its product accordingly.II. PRODUCT ASSORTMENT: Hyundai have always designed its product according to consumer needs & wants. Santro one of the best selling cars in India was designed according to Indian Market.III. PROCUREMENT: It becomes necessary for any organization to procure resources required by it to do day today operation.IV. SERVICES: After sale service is also one of the most important thing. Hyundai is very well able to deal with it.V. STORE ATMOSPHERE: As Hyundai have large human force of over 10000+ employees who are well trained, the atmosphere of the store is always on positive side.VI. PRICES: The price of cars of Hyundai is almost similar at every place.VII. COMMUNICATIONS: There is constant communication between consumer & our company due to free services provided by us.VIII. LOCATION: Location is the most important element of distribution channel. Locations of Hyundai showrooms are perfect according to companys survey, which helps us to reach each & every consumer.PHYSICAL ACTIVITIES INVOLVED IN DISTRIBUTION CHANNELLogistics involve planning, implementing & controlling the physical flows of materials & final goods from point of origin to point of use to meet customer requirements at a profit. Kotler.It involves following steps:I. ORDER PROCESSING: Hyundai is trying to shorten the order-to-payment cycle, with its full efforts. It has so far succeeded in doing so.II. 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 demand in that area.III. INVENTORY MANAGEMENT: Hyundai showrooms have well managed its inventory. In each & every showroom there is no overstocking or no under stocking, that have helped HMIL to reduce many related costs. Every consumer gets his desired car when he wants it.IV. TRANSPORTATION: Transportation of cars from manufacturing unit to showroom is done through various means like trucks, trains, containers, etc. Transportation does not take a long time in case of Hyundai that helps Organization to increases consumer satisfaction.PROMOTIONMarketing communications are the means by which firms attempt to inform, persuade & remind consumers- directly or indirectly about the products & brands that they sell.ELEMENTS OF PROMOTION MIXI. ADVERTISING: Hyundai is spending lots of money on its advertisements. With help of these advertisements it is able to achieve incredible figures of sale. II. SALES PROMOTION: Hyundai is constantly encouraging people to buy its cars, by offering various skims & bringing new variety.III. EVENTS & EXPERIENCES: Hyundai is also sponsoring many other programs to improve its reputation in the market.IV. PUBLIC RELATIONS & PUBLICITY: Hyundai is trying to maintain public relations & is performing its corporate social responsibilities very well. V. DIRECT MARKETING: Hyundai is also doing direct marketing through mails, web-sites, social networks, etc.VI. PERSONAL SELLING: Hyundai is not doing personal selling till now but is willing to come to market through this way also.

PROCESS OF EFFECTIVE COMMUNICATION

STEP 1: IDENTIFY THE TARGET AUDIENCEBefore preparing any advertisement it is necessary to select the audience which is our target. We have to learn about behavioral science and have to prepare add according to the target audience. HMIL target audience is Indians, so they have prepared there adds accordingly. Hyundai have very well understood the Indian audience.STEP 2: DETERMINETHE COMMUNICATIONS OBJECTIVESWe need to identify what are our objectives of making an add. Weather it is for new product or for brand awareness or for brand attitude or for brand purchase intention is needed to be determined 1st. Generally Hyundai ads are promoting new products or cars in market. As peoples attitude towards Hyundai brand is positive, there is no need to promote it more.STEP 3: DESIGN THE COMMUNICATIONFormulating the communications to achieve the desired response will require solving three problems: What to say? How to say? Who should say?What to say? (Message strategy)This gives us idea about what we want to convey to our consumer. In Hyundai ads we can see that there are generally talk about its comfort & class. In our ads we show the extra features that we provide to our consumers.How to say? (Creative strategy)This tells us how we represent what we want to say to our consumers. In Hyundai ads we will observe that there is lot of creativity.Who should say?Now we decide who will convey our message. In Hyundai ads we will find that Shahrukh Khan & many such actors who promote our cars.STEP 4: SELECT THE COMMUNICATION CHANNELNow we decide what communication channel we will use.Our company uses Non-personal communication channel. We give ads in newspapers, TV, website, etc. STEP 5: ESTABLISH THE TOTAL MARKETING COMMUNICATIONS BUDGETAutomobile companies typically budget a fixed percentage for promotion based activities. Hyundai uses Percentage of Sales method to decide its marketing expense. We give 7% of our total turnover to advertisement expense.STEP 6: DECIDE ON MEDIA MIXWe have allocated properly among our- advertising, sales promotion, public relations & publicity, events & experiences, sales force & direct marketing. To have successful marketing strategy every organization needs allocate resources in proper way in above mentioned items. STEP 7: MEASURE THE RESULTHere we need to measure the results of our efforts and expense. Hyundai have performed well in this field. The results of these efforts are positive.STEP 8: MANAGING INTEGRATED MARKETING COMMUNICATIONHere we take the corrective steps in our marketing process. Hyundai is also taking such steps to improve its marketing strategy.

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