hyundai new product development

7/29/2019 Hyundai new product development

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Group 5

Section B

Lokesh

Ankit

Sagar

Shivani

Meghna

Rahul D

new THINKING

new POSSIBILITIES


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INDIAN AUTOMOTIVE INDUSTRY Largest growing industry and seventh largest

in the world

Growth rate of 16-18%

Nearly 30,00,000 Cars are sold in the previous

year

In 2010, 28,14,548 Cars are sold


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INDIAN ECONOMY 4th largest in the world

It accounts for approx. 4% of the world's GDP

Expected to grow by 7.5% in 2011-12

India's tax revenue to GDP ratio is 10%

Tax free annual income limit has been raised toRs. 150,000*

*http://knowindia.net/


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Source: http://www.motorbeam.com/sales-figures/august-2012-sales-figures-analysis/


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OPPORTUNITY SCAN A car with a diesel engine in the range

of Rs 3.2 4 lacs targeting middleincome professionals and collegestudents

A 700 cc diesel engine which has amaximum output of 16 hp @ 3200rpm, with a peak torque of 37.5 Nm @2000 rpm can be used which iscurrently being used in Tata Ace

Indian Economy is expected to grow by7.5% in 2011-12

The domestic sales is increasing at anaverage rate of 19.1%


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Segmentation

Behavioural segmentation: To identify what keepsprospects away from buying and develop a strategythat makes customers to part with their hardearned money.

Geographic segmentation: The product should befirst launched in Metros and Tier I cities where

Hyundai has better distribution network. Over aperiod of time Hyundai should launch the productin Tier II and Tier III cities as Hyundai has thelargest network of showrooms and service stationnext to Maruti in India.

Demographic segmentation: College going

students in the age group of 18 24 years old.Young professionals in the age group of 23 27years old earning a salary in the range of Rs 5 7lacs .


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VALUE PROPOSITION

Easy to maintain

Driveability

Low cost, more mileage will make Hyundai- Novus deliver superior value tothe customers.

Value-for-money proposition As the price of the car is lower than its

competitors and no other car with diesel engine exists in this price range.

The car would be suitable for college students and middle income people.

First mover advantage of having a 700 cc diesel engine in a car.


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Market PenetrationStrategy

Low Price Policy

3 Year/100,000 kmswarranty

MARKET STRATEGY


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Marketing Mix Low cost car in diesel segment, with

great designPRODUCT

Smartly priced (3.2 4 lac), within reach

of the target consumerPRICE

Brand ambassador Irrfan Khan

Continuous brand buildingPROMOTION

Existing service network and distributionchannel, making the product easilyavailable

PLACEMENT


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PRODUCT CONCEPT DEVELOPMENT

VALUE PROPOSITION

Low cost diesel vehicle with a mileage of 16 kmpl

SELECTION OF TARGET SEGMENT

The middle income group

IDENTIFICATION OF OPPURTUNITY

Diesel car in the price range of Rs. 3.2 4 lacs


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Hyundai Product Line

PassengerCar

Segment B

Petrol Variant

EonSantro

XingI10

DieselVariant

I20

Segment C

C(1)

PetrolVariant

Accent

LPGVariant

Accent

C(2)

PetrolVariant

VernaFluidic

DieselVariant

VernaFluidic

Segment D

PetrolVariant

Elantra Sonata

DieselVariant

Elantra

L 1

Type

Line


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Contd.

UtilityVehicle

SUV

Santa Fe

CommercialVehicles

L 2

Line

Type


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PRODUCT LIFE CYCLE


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Product Developed andmarketed in stages

Low costSUV,

Novus,Traveler

HyndaiNOVUS

Diesel carin the

price of3.2 4 lac

Funnel Concept


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Existing Product New Product

Existing Market

Market Penetration Hyundai Nuvos

New Market

Hyundai Commercial

Vehicles

Hyundai Utility Vehicles

Diversification

ANSOFF MATRIX


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Research & development and innovationDetailed insights into customer needs (and how

they change)

Being first to marketWe are coming up with a new product which is

not part of our product portfolio . This is product

would be launched in Indian Market first. It is adiesel variant at a 700-850 cc range. This

basically meant for urban nuclear families.

PRODUCT DEVELOPMENT


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Secure dominance of growth markets

Restructure a mature market by driving outcompetitors; this would require a much moreaggressive promotional campaign, supported by apricing strategy designed to make the marketunattractive for competitors

Increase usage by existing customers for exampleby introducing loyalty schemes

As far as our product is concerned we would like to

also promote it as a commercial carrier/fleets.

MARKET PENETRATION


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This is an inherently more risk strategy because the business

is moving into markets in which it has little or no experience.

For a business to adopt a diversification strategy, therefore, it

must have a clear idea about what it expects to gain from the

strategy and an honest assessment of the risks. However, for

the right balance between risk and reward, a marketing

strategy of diversification can be highly rewarding.

As of now considering the Economic senario we would not like

to go for this strategy.

DIVERSIFICATION


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New geographical markets; for example exporting theproduct to a new country

New distribution channels (e.g. moving from selling viaretail to selling using e-commerce and mail order)

Different pricing policies to attract different customersor create new market segments.

As of now Hyundai Motors India limited does offer anyproduct apart from passenger cars . In future we

would like push our commercial vehicles which aredoing good in other markets into Indian market. Alsosegment E has no product as far as India is concerned.

MARKET DEVELOPMENT


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NEW PRODUCT TO BE LAUNCHED

IDENTIFIED From the PLC analysis the

following has be decided.

Initial Launch:

Basic version ofHyundai Novus

After Six months:New Variants inHyundai Novusare launched intothe market


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Analyzing the current portfolio of HMIL it is very clear that thereare certain segments which Hyundai does not cater to are segmentA, segment E ,diesel cars for segment B.

The need for the hour in the current scenario is a Diesel car forsegment B and if possible in A.

Main focus as of now is Hyundai Nuvos .This are also budgetconstraints as far as launch of new products is concerned.

We have other products to launched in some duration, first of

which would be SUV in the price range of 9-12 lakhs.

Next inline would be a Hyundai Traveller.

POST LAUNCH INITIATIVES


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Launching different variants

1. HyundaiNovus Basic (with A/C)

2. HyundaiNovus PW(with power

windows, A/C)3. HyundaiNovus XE (power brakes, power

windows, A/C)

4. HyundaiNovus ZE (power brakes, powerwindows, A/C, central locking, audiosystem)

POST LAUNCH INITIATIVES CONTD


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Multi channel marketing

Digital Marketing

Sports sponsorship



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Feedback

Sales force

Customer

Online feedback

Surveys



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Check market reaction

If positiveIf negative

Tweakfeatures

keeping core

value same

Retain the

features



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NEW

PRODUCTS

FOR LAUNCH


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HyundaiTraveller (Automatic Transmission)

Segment

Fleet/Taxi Segment (26 seater and 15 seater)

Opportunity

Tempo traveler which travels in the city to pick up peoplefrom various destinations during peak and non-peak hours.

The clutch is really heavy but needs a lot of effort to pressin it.

Value

Hyundai Traveler with AutomaticTransmission

Gearless travel, reduces lot of effort on part of the driver


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Hyundai - PotestasSegment

Upper middle class people, looking for an SUV

Opportunity

Existing SUV's which are in the price range of Rs. 7-10 lacs,

have very less rear seat space and very poor looks, poor

interiors and very less ground clearance

Market value for SUV segment grew at 58% in the first quarter

of 2012

Value

Large space enough to transport a family

Good ground clearance 220mm - capable to take on the

worst of Indian roads, boot Space - 675 liter capacity, twin

Tube Shocks of"Rancho, improved interiors


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hyundai new product development

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