Hyundai Automobile Manufacturing business is located in South Korea. It has auxiliaries in other markets around the world. For instance, Hyundai Motor India is reportedly the second largest and the fastest emerging automotive producer in this market. Currently, Hyundai markets a twenty variant passenger car that are produced locally, and are divided into six segments. Hyundai automobile India is among the fastest growing passenger car, and it registered a total of an estimated 250,000 vehicle sale in a calendar year of 2006, which is reported to have risen over 18% compared to sales achieved in 2005. The car sale in the domestic market is estimated to have improved, with sales making an estimated growth of 19.2% compared to sales made in 2005, with approximately 180,000 units, while the foreign markets sales growing by 17.4% with exports sales estimated to be over 100,000 units (Hyundai Motor Company, 2012).

Channels and logistics review

The firm enjoys full integration with other local manufacturing plants in boosting production, product quality and tests capabilities within the country. In order to supply the market with a globally accepted technology, the firm is setting up a second plant, with an estimated additional production of 250,000 plus units on an annual basis. This move perceives the goal to increase the Hyundai capacity to around 600,000 units, and realization of this objective was in progress since 2007. The firm has invested to expand its production capacity in line with its positioning as a worldwide expert in regard to compact automobile products. Apart from its concept of project expansion, Hyundai aims at expanding its dealer networks both on domestic and overseas markets. More emphasis, however, lies on the quality of the product and after sales service, with the business plans to expand its service network to over 1500 services stations across the globe. This will majorly involve inspections of used cars (Hyundai Motor Company, 2012).

Product differentiation remains Hyundai’s main product positioning strategy; its products are positioned as the most versatile, convenient, value added model vehicles for the target market. The auto mobile products, under the business, are promoted as the most economical products for the next generation. The business offers products with a three year warranty. Hyundai Pa’s will be introduced in show rooms on a price that reflects strategies that attract desirable channel partners. For instance, Hyundai automobile inspectors will position themselves as convenient, professional, alternative inspection as opposed to car inspections that take place during normal business hours. The firm relies heavily on the openness of the mechanics, for any critical information will truly boost the new marketing alternative (Parment, 2009).

The firm, therefore, leverages their competitive edge to achieve this positioning. Hyundai automaker’s inspectors’ competitive edge is firmly centered on its level of expertise and the thoroughness of the inspections. The business has partnered with diverse experienced skilled vehicle technicalities that have continuously boosted products promotion. The firm employs another competitive edge through the use of sophisticated test equipment. Hyundai automobile can offer the level of inspection completeness that is comparable to any other stationary inspection. The firm services ensures that no single aspect of the vehicle is left uninspected, as the firm provide its clientele with the necessary confidence to purchase both new and used cars.

The firm seeks to earn over 5% of the Indian market through unit sale of 150,000 in the first year. In the second year, the firm aims at earning 10% market share of the Indian market. More importantly it will be critical to develop a well established brand name, which has to be linked to a meaningful positioning. The firm strategies aim at investing in the marketing. This strategy develops as an ideal objective applied to product differentiation and as brand image foretelling to boost innovation quality and value the product, through informatory messages in the promotion process. It is, therefore, critical that the firm must measure awareness and response from the market so as to adjust marketing efforts where necessary. The company marketing strategy bases on different efforts, which include advertising, partnerships, strategy pyramids, among other, as outlined below.

Product Characteristics

The New ‘Hyundai Pa’ is created with a range of exciting new and fresh features. The Hyundai business offers prefect product that is a complement to the ever evolving tastes and lifestyle. The business believes it has the best offer to its customers driving pleasure, importantly to get them to a higher level. The new product is a generation of product that is distinguishable from other designs. It is built in a style with a clear look of stability; it has a sense that is believed to deliver a dynamic drive. The product has a solid look which is complemented by an equally rooted road presence and a class defining ride. When compared to the previous models, the new offer allows for front suspension lower arms, and also reduced noise, but rather a greater feeling of stability on roads.


The company pricing scheme is designed to cover expenses, while providing reasonable profits; this takes in to account the cost of substitutes available in the market. Hyundai has to take its competitors heads on with the pricing of their new model car. Immediately after the launch, the market largest automobile manufacturers are now targeting the premium segment. For instance, according to analysis, Hyundai target is predicted, that is the price of the premium cars at a highly competitive price.


The firm plans to stage road shows, in order to display vehicles in pavilions during collage festivals and exhibition. The car, as earlier mentioned, appeals more to the youngsters compared to the other target groups. Television advertising will be used in promoting and marketing Hyundai products as they will be displayed on leading television channels. Most of the sports channels will promote these products reaching out to the target audience, considering that they have more viewers than other medium. Radio is another medium that Hyundai business will use in marketing its products. Radio is believed to have the widest coverage, as the resent studies reveals, due to the levels of exposure within both urban and rural areas; whether the listeners own a set is out of questions as people listen to other peoples’ radios. There are other media of advertising, as well, which include print advertising, workshop seminars that may be helpful in promoting the Hyundai’s products.

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Product strategy


Hyundai Motor Company intends to use different dealers, placed in different locations, to create an easy access of customers to its products. The firm has partnered with both local and foreign dealers in distributing its product to their respective market place. The figure below lists some of its potential customer visit locations.


Hyundai Automobile makers have to develop strategic relationships with automobile associations, for instance, certified mechanic inspectors, AAA among other partners, to ensure large numbers of association members are referred to the Hyundai mobile auto inspection, dealers among other business partners.

Promotion strategy


Hyundai will advertise its automobile products by use of auto inspector to provide service to people, who are in need, but have never heard a chance of Hyundai mobile auto inspection. The advert is placed in the yellow pages telephone directory, as well as the auto section of the local news papers. Hyundai both management and marketing teams aims at integrating messages across all media by reinforcing the brand name, particularly points of product differentiation. In regard to media consumption, the pattern should serve as a boost in helping the business advertising agency in utilizing the appropriate media and timing, for this message to reach prospect consumers before and during introduction stages of this offer. Hyundai long term strategizes on advertising is aimed to maintain the brand awareness and communicate identifiable and measurable differentiation message. For this reason, the firm strives to attract increased market attention, through encouraging purchasing demand, whereby Hyundai offers limited time, registration and insurance. The firm indents to use guide associates for a push draw near; to fulfill this plan the business applies trade sales promotions and individual selling to its particular partner in order to retain and stimulate channel partners, for a sustainable and strong market presence.

Figure 1: Sales & M/S Trend

Source: Hyundai Motor Company


The firm has a website aimed at providing information in regard to Hyundai mobile auto inspection’s services to the public. The firm will involve experts, through the use of the internet and E-commerce consulting services; it will play a role in submitting the website to popular search engines to feature possibly at the top of the search list.

Hyundai Automakers Mission

Hyundai Auto Mobiles mission is to provide customers with convenient, thorough, affordable, luxury vehicles. We exist mainly to attract and maintain customers. When the business adheres to this maxim, everything else falls in to place; the company’s services are aimed at exceeding the expectations of its customers.

Market research

The firm carries out a market research. The research is done to establish some characteristics about the market.


  • The firm aims at reducing customer acquisition costs by 8% per year.
  • The firms marketing strategy is aimed at increasing repeat and referral of customers by 3% for every quarter.
  • The firm indents to generate brand equity, quantified by an increase in service requests, which is based solely on Hyundai Automobile products, auto inspector’s name.

Financial Objectives

  • A double digit expansion in the first few years.
  • Experience a decline in the variable expenses linked with every inspection by 3% per year.
  • Maintain a steady, positive, growth every month.

Results express these achievements in the last three years, as illustrated in figure 1 below..


Marketing mix comprises of the four elements as depicted in the picture below that is product, price, place, and promotion.

The single objective is to position inspectors of Hyundai Motor Company as a better substitute for used car assessment, in order to influence and attain market leading position. Hyundai mobile auto inspection will apply three methods to communicate the message that their services offerings are far superior to standard auto inspections (Sullivan, 1998). The first strategy will be to advertise through spread of the yellow pages telephone directory and the market potential dealer. The second option will be to secure proper positioning of a communication of Hyundai auto mobile inspector’s message through the website. This website will provide the user with adequate information in regard to Hyundai auto mobile inspection services offering. Lastly, there will be strategic alliances with other organizations for instance AAA. This coalition provides a rich source of customers, as companies affiliated with AAA succeed, considering their referrals by a large customer base. This alliance will form co-branding activities, promotional activities among other co-operative activities, which might mutually be beneficial for both organizations (Hyundai Motor Company, 2012).

Automobiles have turn out to be an essential part of humans’ way live, an addition value to human survival by providing faster, cheaper and more convenient mobility for every passing day; however, causing negative contributions to the environment. Over the years, improvement efforts of automakers have been directed at the technological research, in the industry. Customers demands on improved quality in terms of mobility has a direct impact on the research effort, as a requirement from either customers who like the features of the vehicle, or those that call for improved automobile products. In the recent years, Hyundai, as a player in the automobile industry, has significantly increased global sales, with over 16.3 % growth reported in 2009 selling over 3.6 million cars, despite the hard economic times that were experienced during early months of the year. In American market, for instance, the Sonata among other Hyundai’s products pushed the annual sales to above 500,000 units, a higher figure reached for the first time in years. In 2011, Hyundai motor Company set objectives towards reaching an internal competitiveness, which was aimed at reaching 3.9 million sales. Future years are predicted to be extremely successful in maximizing Hyundai band value, through increasing its market share, while expanding sales capacity in the emerging markets.

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