hyundai santro
DESCRIPTION
this project most popular car in india company hundai santro model this car most sucessfull model in indiathis project only useful for marketing studentsTRANSCRIPT
HYUNDAI SANTRO
INTRODUCTION
INDIAN AUTOMOBILE INDUSTRY
A market is never saturated with a good product, but it is very quickly saturated with
a bad one. - Henry Ford
The automotive industry is one of the largest industries worldwide and in India as
well. The automotive sector is a vital sector for any developed economy. It drives
upstream industries like steel, iron, aluminium, rubber, plastics, glass and electronics,
and downstream industries like advertising and marketing, transport and insurance.
The automotive industry can be divided into five sectors:-
1) Passenger Cars
2) Multi- Utility Vehicles (MUVs)
3) Two- and Three- Vehicles
4) Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and
Heavy Commercial Vehicles (MHCVs)
5) Tractors
We will be looking at the Passenger car industry in India.
Despite a head start, the passenger car industry in India has not quite matched up to
the performance of its counterparts in other parts of the world. The primary reason has
been the all-pervasive regulatory atmosphere prevailing till the opening up of the
industry in the mid-1990s. The various layers of legislative Acts sheltered the industry
from external competition for a long time. Moreover, the industry was considered
low-priority as cars were thought of as ‘unaffordable luxury’.
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The following table presents a comparative view of the extent of motorization in India
vis-à-vis certain other countries in the world.
Country Passenger Cars in Use
per Thousand Persons
Two-Wheelers in Use
per Thousand Persons
Developed Countries
U.S.A 678 10
United Kingdom 473 12
Japan 495 115
Germany 608 36
Emerging Economies
China 100 48
Indonesia 114 262
Philippines 67 144
South Korea 267 159
India 347 7 27
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OBJECTIVES
Some of the Objectives which are focused upon in this report are:
A comprehensive analysis of Indian Automobile Industry.
To study the Marketing Strategies of HMIL wit focuses on Santro.
To focus on Marketing Mix of Hyundai Santro.
To study the consumer satisfaction level with focus to Hyundai santro.
Special emphasis on Promotional activities of Santro and how HMIL has been
able to reposition it in recent times.
Milestones achieved by HMIL.
Recommendations and observations regarding HMIL.
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Porter Five Forces Model in the Indian Automobile Industry
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Threat from New Players: Increasing Most of the major global players are present in
the Indian Market; a few more are expected to enter. Financial strength assumes importance as high
investments are required for building capacity. Access to distribution network is important.
Although important for all segments, having a distribution network in rural areas is vital for two-wheeler makers.
Lower tariffs in the post-World Trade Organization era may expose Indian companies to threat of imports (however, the threat may be mitigated by non-tariff barriers that may still exist).
Market Strength of Suppliers: Low
A large number of automotive component suppliers are present in the Indian automotive industry.
Automotive players are rationalizing their vendor base to achieve consistency in quality.
Rivalry within the Industry: High There is keen
competition in select segments (such as the Compact and Mid-size segments in passenger cars, and the motorcycle segment in two-wheelers).
New multinational players may enter the market.
Market Strength of Consumers: Increasing Increases awareness among
consumers has raised expectations. Thus, the ability to innovate (technology being the enabler) is critical.
Product Differentiation via new features, improved performance and after sales support is critical.
Increases competitive intensity has limited the pricing power of manufacturers.
Threat from Substitutes: Low-Medium With consumer preferences
changing, inter-product substitution is taking place (scooters are being replaced by motorcycles, and Mini cars by Compact Mid-size cars.
HYUNDAI SANTRO
HISTORY OF INDIAN AUTOMOBILE INDUSTRY
Initially, in the post-liberalization period, the automotive sector, especially the
passenger car segment, saw a boom, derived primarily from economic vibrancy,
changes in Government policies, increase in purchasing power, improvement in life
styles, and availability of car finance. The passenger car industry was finally
deregulated in 1993. However, the automobile industry, which contributed
substantially to the industrial growth in FY1996 failed to maintain the same
momentum between FY1997 and FY1999. The overall slowdown in the economy and
the resultant slowdown in industrial production, political uncertainty and inadequate
infrastructure development were some of the factors responsible for the slowdown
experienced. In FY2010, the sector experienced a turnaround and witnessed the
launch of many new models.
Two things that stunted growth of this industry in the past have been low demand and
lack of vision on the part of the original equipment manufacturers (QEMs). However,
the demand picked up after the liberalization of the regulatory environment, and
global QEMs- who enjoy scale economies both in terms of manufacturing and
research and development (R&D) - entered the Indian market. This has resulted in a
big shift in the way business is conducted by suppliers, assemblers and marketers.
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PASSENGER CAR INDUSTRY IN INDIA: HIGHLIGHTS
Passenger car sales are expected to increase at a compound annual growth rate
(CAGR) of 9% over the period FY2010-2011. The six broad segments in the car
market today are- Mini, Compact, Midrange, Executive, Premium and Luxury. In
the medium term, growth in the Indian passenger car industry is expected to be led
largely by the Compact and Mid-range Segments.
The critical success factor has changed from price to price value.
In terms of engine capacity, the Indian passenger car market is moving towards cars
of highest capacity.
With the launch of new models from FY2011 onwards, the market for MUVs has
been redefined in India, especially at the upper end. Currently, the higher-end
MUVs, commonly known as Sports Utility Vehicles (SUVs), occupy a niche in
the urban market. With the success of SUVs, the line of distinction between
passenger cars and MUVs in the Indian market is getting increasingly blurred.
Domestic car manufacturers are now venturing into areas such as car financing,
leasing, and fleet management, and used-car reconditioning /sales, to complement
their mainstay-business of selling new cars.
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Trends in the Indian Passenger Car Industry
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Indian Passenger Car
Industry
Manufacturing Technologies:Flexible Manufacturing Systems
Components:Tierisation;Tyres: Radials, Retreading
Regulatory framework:Deregulation;De licensing;Removal of QRs;Introduction of strict Emission norms
Auto finance:Better/ cheaper schemes
Distribution Systems:Changing relationship of manufacturers with dealers and suppliers
Materials: Low weight; Synthetic Composites
Entry of Foreign Manufacturers
Product technology:MPFI; CRDi; diesel system
Structure of demand:Change in industry segmentation
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KEY DEVELOPMENTS IN THE INDUSTRY
COMPANY NAME
DOMESTIC SALES MARKET SHARE
APR-AUG
2009
APR-AUG
2010 GROWTH
APR-AUG
2009
APR-AUG
2010
Daimler Chrysler India Pvt Ltd 633 662 4.6 0.2 0.2
Fiat India Automobiles Pvt Ltd 2907 635 -78.2 0.9 0.2
Ford India Ltd 8852 6944 -21.6 2.8 2.1
General Motors India Ltd 7179 4981 -30.6 2.3 1.5
Hindustan Motors Ltd 5610 5626 0.3 1.8 1.7
Honda Siel Cars India Ltd 13813 17560 27.1 4.4 5.3
Hyundai Motor India Ltd 48299 63140 30.7 15.3 19
Maruti Udyog Ltd 162011 169606 4.7 51.4 51.1
Skoda Auto India Ltd 3003 3439 14.5 1 1
Tata Motors Ltd 58548 55536 -5.1 18.6 16.7
Toyota Kirloskar Motor Ltd 4519 4030 -10.8 1.4 1.2
Total Passenger Car Sales 315370 332159 5.3 100 100
During April – August 2011, the passenger car sales in India at 332159 units, marked
a growth of 5.3%over the previous year. The growth in the domestic sales of
passenger cars was led by strong growth in volumes reported by compact and mid –
size segments. While the share of mini and executive segments declined in the period
under study, the share of other segments increased. For instance, the share of compact
segment in the domestic car sales increased from 59.7% in April – August 2010 to
64.9% in April – August 2011, mid – size segment from 20.5% to 22%, and the share
of Premium segment was stagnant at 0.7% in the same period.
New variants launches, easy availability of finance at relatively lower interest rate and
price discounts offered by the players have played an important role in driving the
sales growth in the domestic passenger car industry.
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Among the top three manufacturers, HYUNDAI reported a strong growth in sales of
its compact and mid – size car models and increased its market share in April –
August 2011 vis-a–vis corresponding previous. For Maruti Udyog Ltd, a marginal
growth in sales volumes allowed it to maintain its market share during the first five
months of FY2010 while the market share of Tata Motors declined in the same
period.
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Key Demand Drivers
Traditionally, disposable income was perceived as the key factor driving passenger
car demand. But over time, other factors that are known to have an impact on demand
have emerged. These include the need for greater mobility, non- availability of public
transport services, availability of cheap finance, development of the used-car market,
introduction of new technologically superior models, increasing levels of urbanization
and changing consumer profiles.
Segment Analysis
MINI COMPACT MID-SIZEEXECUTIV
EPREMIU
MLUXUR
Y
Vehicle Length<3400mm 3401-4000 4001-4500 4501-4700
4701-5000 >5000
Maruti Udyog Ltd
800 Alto EsteemOmni Zen Baleno
Wagon R AlturaVersa
Hyuindai Motor India Ltd Santro Accent Elantra Sonata
Hindustan Motors Ltd
Ambassador Contessa
MitsubishiLancer
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CAR DEMAND
There is a high degree of correlation between the demand for cars and ECONOMIC GROWTH.
Availability of NEW MODELS is likely to increase and change the structure of demand.
Competitive PRICING is crucial for gaining market share, especially in the small car segment.
AVAILABILITY OF CHEAP FINANCE is a key determinant of demand as most cars (around 60%) purchased in India are financed.
A mature USED CAR MARKET would, on one hand, encourage consumers to trade in their cars faster, and on the other, eat well into the share of new cars.
The Central Government’s AUTO POLICY on excise and customs is an important aspect affecting the demand and supply of cars.
High degree of correlation between PER CAPITA INCOME and demand for cars, increase in the number of people crossing the income threshold, and CHANGING CONSUMER PROFILE are likely to increase and change the structure of demand.
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Fiat India Automobile Ltd
Palio SienaUno adventure
Weekend
General Motors India Ltd
Corsa Sail Opel CorsaOpel
VectraOpel Astra
Opel Swing
Honda Siel India Ltd City AccordFord India Ltd Ikon MondeoTELCO Indica Indigo
DalmierChrysler India Ltd
Mercedes Benz C Class,M Class,SL
Mercedes Benz E Class
Mercedes Benz S Class
Skoda India Ltd OctaviaToyota Kirlosker Motor Ltd Corolla Camry
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The credit for growing the Indian Compact Segment, and in fact, the Indian Passenger
car industry goes partly to the Korean manufacturers (HMIL and the erstwhile
Daewoo) and the Indian player Tata Motors.
The HMIL Santro was launched in September 2006 and created a sensation on
account of its aggressive pricing at Rs.2, 99,000. The Santro became successful as
HMIL had got the price –value equation just right. While Daewoo’s Matiz picked up
only seven months after its launch, the Santro was selling more than 3000units a
month only 2 months after its launch. HMIL had infact, planned its entry into the
Indian market with the 1495cc Accent but later opted in favour of the smaller car. At
the time the Santro was launched, both the options available in the segment- Fiat Uno
and the Zen-had been around in the Indian Market for quite some time and lacked
novelty. Santro was not only cheaper but also incorporated a multi-point fuel injection
(MPFI) system that offered superior fuel economy to Zen’s carburetor system.
The Matiz was launched in November 2006. Its 800cc engine immediately
encouraged comparisons with Maruti 800. The initial launch price of Matiz at Rs. 3,
55,000 was significantly higher than the Santro’s Rs, 2, 99,000. Given that the Matiz
was smaller than the Zen and the Santro, the initial impact was not so strong. In May
2007, Daewoo launched stripped-down variants. The launch of the cheaper versions
saw the sales of Matiz reaching almost 2008 units in May 2010 and recording an
average monthly sale of 3123units in FY2010. However, the financial crisis faced by
the parent, Daewoo Motor Corporation affected the performance of the Indian
subsidiary (that was reporting net loss and had significant borrowings). Subsequently,
the Indian subsidiary halted production.
MUL now has 3 cars in the Compact Segment: the Zen, the Alto and the Wagon R. In
terms of market share, Zen steadily lost share in FY2009 to its competitors. Despite
this, there is no denying that the Zen is one of the bigger success stories in the Indian
car market. With 3 models, MUL is the market leader in the Compact segment.
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The Alto arrived in India when there was little room for man oeuvre in a crowded
compact segment. It was launched in 2 versions, the LX and the VX. The base version
is priced competitively with the deluxe version of the Maruti800, while the higher-end
version competes with the based versions of the Zen and the Wagon R.
The 1061cc Wagon R is available in four manual transmission variants (LX, LXi, VX
and VXi) and one automatic transmission variant (AX). Since its introduction in
February 2009, Wagon R has been selling in the 1500-3000units per month range as
against 5000-8000units per month range for the Santro. The presence of the already
well-established Matiz and the Santro meant that the novelty factor did not work too
well for Wagon R.
The other cars in the compact segment to have made an immediate dent in the market
with their launch are the Palio of Fiat India and the improved version Indica V2 of
Tata Motors. Indica was the third largest selling car in FY2010 in this segment, after
Santro and Zen. On the other hand, Palio was launched at the time when the passenger
car industry was witnessing a slump but the model cut across the barriers and was
able to create a market for itself. However, the success of this model was short-lived
and the sales declined thereafter. Nevertheless, launches of new variants (such as the
diesel version) helped sales recover marginally.
The size of the compact segment has increased as a result of the high growth rate
attained by the models in this segment. The changing price-value equation, coupled
with the declining interest rates and easy availability of finance, has prompted
consumers to move towards the compact car segment from the mini segment. The
high rate of growth achieved by the compact segment has attracted the attention of
other players also; including GM. GM has entered the compact segment with the
launch of its Opel Corsa Sail in May 2008.
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Hyundai Motors India Limited
An Overview
Hyundai Motor India Ltd. (HMIL) is a wholly owned subsidiary of the Hyundai
Motor Company (HMC), Korea, a part of the Hyundai Motor Group comprising
Hyundai Motor Company, Kia Motors, Hyundai Mobis and other affiliated
companies, with a combined turnover of over US$ 50 Billion. The Hyundai Motor
Group with a presence in over 185 countries and combined annual sales of over 3
million units is one of the fastest growing auto manufacturers in the world.
HMIL has emerged as the second largest and the fastest growing car manufacturer in
India. HMIL presently markets over 26 variants of passenger cars in six segments.
The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment,
the Elantra in the D segment, the Sonata in the E segment and the Tucson and
Terracan in the SUV segment.
The company recorded combined sales of 215,630 during calendar year 2010 with a
growth of 43% over year 2011. HMIL is India's fastest growing car company having
rolled-out over 700,000 cars in just over 70 months since its inception and is the
largest exporter of passenger cars with exports of over Rs. 1,700 crores. HMIL has
recorded a staggering growth of 149% in exports over the year 2011.
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts
some of the most advanced production, quality and testing capabilities in the country.
In continuation of its investment in providing the Indian customer global technology,
HMIL has announced plans for its second plant, which will produce 150,000 units per
annum, raising HMIL’s total production capacity to 700,000 per annum by 2011. The
plant will be built on a 2.1 million square meter site adjacent to the existing facility
with an investment of $450-$500 million on its new integrated facility. HMIL is
investing to expand capacity in line with its positioning as HMC’s global export hub
for compact cars. Apart from expansion of production capacity, HMIL plans to
expand its dealer network, which will be increased from 146 to 180 this year. And
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with the company’s greater focus on the quality of its after-sales service, HMIL’s
service network will be expanded to over 1,000 in 2011.
HMIL has many awards in its bouquet. It was declared “The Star Company” amongst
unlisted companies by Business Standard this year. Getz got the coveted “Car of the
Year 2007” award twice over. It was declared a winner by both Business Standard
Motoring and CNBC-TV18 Autocar Auto awards. Hyundai Elantra won the CNBC-
TV18 Autocar “Best Value for Money” Car Award.
HMIL was also the “Manufacturer of the Year” two years in a row in 2010 and 2011.
ICICI Overdrive Awards declared Hyundai as the “Car Maker of the Year” in 2010.
Hyundai products with state of the art technology have also been winning many
accolades over the years. Santro bagged top honours in JD Power Asia Pacific for
three years. Accent was ranked No. 1 in J D Power Asia Pacific APEAL for two years
and also got Business Standard Motoring Jury award for its CRDi model.
HMIL has also been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices.
The following table shows the HMIL’s cars and the various segments they belong to
as in the Indian market.
Segment Classification HMIL’s Car Price
(Ex Showroom in Delhi)
B Sub - Compact Santo Xing Rs. 278999
B+ Compact Getz Rs. 421000
C Mid Size Accent Rs. 529000
D Premium Elantra Rs. 853793
E Luxury Sonata Rs. 1399000
SUV Sports Utility
Vehicle
Tucson
Terracan
Rs. 1462999
Rs. 2059151
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NEW MILESTONES
The Indian passenger car market is a highly competitive market. Although its growth
has been hi in past several years, profitability has been impacted because of rising
costs, change in excise policies and intense price competition. With the developed
countries like USA and UK having 615 as an average no of cars per thousand persons
it is very low in India. So in future, the arena of competition is most likely to be
shifted to developing countries like India and that too in a highly competitive segment
like B-Segment.
With the opening of economy and relaxing norms by government, the market has
started witnessing the entry of new global players like Toyota, Honda and GM in the
Indian market, pointing to further intensification of competition in future. With the
consumer attaching higher value to the features and economy in case of car buying,
the players are likely to focus more o product development (to incorporate dvanced
features in their designs) and advertisements (to set up their own positions in a
consumer mind).
HMIL is emerging as a major player in Indian passenger car market. Its products are
Santro and Accent are success stories in themselves. But the buck does not stop here
only. Its parent company HMC is focusing upon HMIL as a base to integrate its
production and R & D facilities across Asia Pacific. For that HMIL is planning to
increase its present production capacity of 2.5 lakh cars per year to 4 lakh cars per
year by 2011.
Exports are also another front which is giving HMIL an intense opportunity to
expand. For the first six months of this fiscal HMIL has exported cars worth Rs. 1,325
crores and targeting an overall export of over Rs. 2,700 crores in this fiscal up from
Rs. 1,700 crores in 2010-11.
HMIL has sold a total of 236,878 vehicles in the Calendar Year 2011 so far, achieving
a growth of 21% over the January-November sales in 2011. While domestic sales in
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January-November, 2011, were 148,515 - a growth of 16.6% over the previous year,
overseas sales during the period stood at 88,363 units - a growth of 29%.
In November, 2011, HMI sold a total of 21,725 units - 14,010 vehicles in the
domestic market and 7,715 cars in the overseas market.
Over the years, HMIL has been focusing on effective brand building and consumer
strategy. This has contributed towards enhancing their bottom line. A significant
contribution in this success is of the advertisement strategy adopted by HMIL. It has
changed its advertisements time and again. Now HMIL has started a new initiative
under which they have started their own in house advertising agency known by the
name of Innocean which will handle its all promotions.
With the new initiatives, HMIL is all set to achieve its ambitious growth of 30% in
sales over last year. Thus, Hyundai motors India limited is all set to conquer the
Indian passenger car industry.
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AWARDS & RECOGNITIONS
As one of the fastest growing automobile compaies in India, Hyundai has many
accomplishments to its credit.
Business Standard - “Star Company” Award to Hyundai Motor India
JD Power Asia Pacific
Hyundai Santro has topped the JD Power Asia Pacific Initial Quality Study
(IQS) that measures product quality for three years in a row (Years 2007,
2008 and 2009)
Hyundai Santro has topped the JD Power Asia Pacific APEAL study that
measures customer satisfaction for three years in a row (Years 2007, 2008 and
2009)
Hyundai Accent has topped the JD Power Asia Pacific IQS for 2007 and the
APEAL study for 2008 and 2009.
Business Standard Motoring
Hyundai Getz is BS Motoring's 'Car of the Year' 2007
BS Motoring – BS 1000 – Company of the year 2007– Hyundai Motor India
Limited
Hyundai Santro is BS Motoring's 'Car of the Year' for 2006
CNBC
Hyundai Getz is the CNBC Autocar Car of the Year 2007
Hyundai Elantra – Best Value for Money Car of the Year 2007
Company – Awards – CNBC Autocar India – Hyundai has been the
manufacturer of the year for two years in row.
ICICI Bank
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Hyundai Motor India was adjudged the ‘Car Maker of the year’ at the ICICI
Bank – Overdrive awards
HMIL has also been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices.
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PRODUCT HYUNDAI SANTRO
The Santro was launched on September 23rd 1998 in the Indian market and the
company sold around 17000 units in first five months. The ‘Tall Boy’ concept was
well taken by the Indian Customer. Since its inception Santro’s sales has been
achieving an annual growth rate of about 20% on an average. An advertising
campaign starring Shah Rukh Khan and Preity Zinta was unleashed to further boost
the sales and this has certainly proven to be effective. As a result of which Santro has
now become a market leader in its own Segment (B-Segment) leaving earlier market
leader Maruti Zen and Tata Indica. Repositioned from being a family car to an
individual’s first car, within a short span of time the Santro has been able to capture
the hearts and minds of the consumers.
The following table gives the ex-showroom prices of all the variants of
Santro:
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Models
Santro XK Non AC (Solid)
Santro XK Non AC (Metallic)
Santro XK AC (Solid)
Santro XK AC (Metallic)
Santro XL (Solid)
Santro XL (Metallic)
Santro XO (Solid)
Santro XO (Metallic)
Santro Xing AT (Solid)
Santro Xing AT (Metallic)
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RESEARCH METHODOLOGY
As the purpose of study is analyze the marketing strategies of Hyundai motor India
ltd. with focus to Hyundai santro.
Data Collection
Data collection is the process through data is collected, it is basically done through 2
main sources i.e. primary source and secondary source. From these sources data s
compiled i.e. primary data and secondary data. In this project both primary data and
secondary data are used.
Primary Data
Primary data is the data which is collected through surveys and questionnaires.
Secondary Data
Secondary data is the data which is collected through internet, magazines,
newspapers, journals, broachers, television etc.
Sample Size
In this project questionnaire was prepared and multiple choices and the pattern of
questions was given to 100 respondents. With every question, multiple choices were
given.
Type of approach: The type of approach followed is descriptive approach. In
descriptive approach cross sectional design is used. Cross sectional design is used
because it is concerned with a sample of population of interest.
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MARKETING STRATEGY
Strategy and timing are the Himalayas of marketing. Everything else is the Catskills.
- Al Ries
HMIL has been successful in capturing the car market because of the excellent
product it has produced. The market research conducted by Hyundai showed that
Indian cars were overcrowded, with turbans and sarees to be accommodated. The idea
was to create a voluminous compact car. The “tall boy’ model was taken from the
Atoz and it was redesigned to meet Indian conditions. Thus, the Santro was born. The
Santro is available in a number of versions and has a number of new built-in
mechanisms---power windows, power steering, central locking, side impact beams,
frontal crumple zone, child safety locks, seat belts, multi-point fuel injection systems
and CFC-free air-conditioners. The Santro is available in nine new colours. The car
also gives high mileage. The engine delivers adequate torque i.e. the ability to pull
loads even at very low speeds---this proves to be very essential for slow and traffic-
heavy Indian conditions. The most important is the seating, which is, high and gives
“road command”.
Hyundai was competing with Maruti in the small car segment and it offered
technology that other car makers thought was too advanced for the slow growing
Indian market. Hyundai has now built up a reputation such that it is the first
preference of anybody who has driven or ridden in it.
The marketing strategy employed by Hyundai for the Santro can be studied with
insights into their STP analysis and Marketing Mix.
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PEST ANALYSIS
In order to understand the conditions under which the Santro was launched in the
Indian market, it’s necessary to analyze the factors that influenced its effectiveness.
Political Conditions
Hyundai entered India when liberalization was at its peak. As a result,
everyone was very open to the idea of foreign companies setting up base in
India.
The government insisted on the Companies using 70% local content in the
manufacture of the cars as they would have generated tremendous revenue for
India. Hyundai achieved this in a very short time.
Change in government policies in recent times like opening of FDI in various
segments has given a thrust to Hyundai initiatives in India like opening of its
R & D centre in Chennai.
A positive EXIM policy also has helped HMIL to boost its topline with
Exports of Santro to other countries.
Economic Conditions
The economic conditions during the launch of Hyundai were very relaxed and
liberal. Hyundai was launched when the country had just opened its doors to
liberalization. So there were no strict norms or bylaws that the company had to
adhere by.
The resources available in India were utilized by the multinationals, which
generated considerable revenue for the government.
A booming banking sector and a phenomenonal growth in Auto Loans market
has made Santro more affordable.
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Social Conditions
A rise in Middle class and concept of small nuclear families has propelled a
demand of B-Segment cars. Hyundai Santro provides an exact choice for this
demand leading to its high growth.
An average Indian was bored with the same Maruti 800 as his first car and
Santro’s positioning as one’s first car has led to Hyundai’s success.
TECHNOLOGICAL CONDITIONS
Hyundai is a fairly new company in India. As a result when it started out in
India it started out with the best of machinery. So, the quality of products was
several times better than what was available at that time. This resulted in the
acceptance of Hyundai as a technologically superior company in the minds of
the people.
Since Hyundai manufacturers everything from the smallest of screws to the
biggest of machines in its factory it is able to maintain the efficiency of the
machines. Hyundai therefore manufactures cars under best of conditions with
the best of machinery. As a result, the cars manufactured are of top quality.
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STP – SEGMENTATION, TARGETING,
POSITIONING
Marketing is not an event, but a process . . . It has a beginning, a middle, but never an
end, for it is a process. You improve it, perfect it, change it, even pause it. But you
never stop it completely.
- Jay Conrad Levinson
Segmentation
Segmentation is based upon considerable evidence that a single marketing approach
or formula will not work for all members of the community to be served.
Geographic
The region of interest of HMIL for Santro is whole India with special focus on Type
A and fast growing Type B cities across India.
Demographic
Age – Anybody of age between 20 – 40 yrs.
Income – Anybody with an income of over 4 lakh p.a.
Occupation – Millennials employed as professionals, managers and those want to buy
their first car.
Social Class – Middle class, Upper middle, Lower Upper and Upper uppers.
Psychographic
Personality – Dreamers, those who want to achieve big, ambitious, price conscious,
took their first step towards success and value driven.
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Behavioral
Benefits – Quality, Style, Price (economical)
User status – Potential users and first time users
Buyer – Readiness Stage – Those who are aware, informed, interested and intend to
buy
Targeting
In evaluating the market segments Hyundai has looked at two factors - The segments
overall attractiveness and the companies resources. As is very clearly seen Hyundai
has opted for a selective specialization kind of targeting. Hyundai has selected a
number of segments each objectively attractive and appropriate. There is minimal
synergy among the segments but each is a cash cow. This multi segment strategy has
had the effect of diversifying the firm’s risk.
Having Shah Rukh Khan to endorse the Santro paid off for Hyundai. Shah Rukh as a
brand ambassador targets two sections of the society. Firstly, his glamorous and
sophisticated image appealed to the elite effecting their purchase decisions. Secondly,
his adorable persona appealed to the middle class buyers who wanted a good car for
the ‘big’ investment they were making and for people who were graduating from the
Maruti and the second hand car.
Hyundai Santro was first launched in September 1998. At that time the cars which
were prevailing in B-Segment was lead by Maruti Zen. With a price tag of only Rs.
2.99 lakh Santro was targeted as the best available alternative for Zen and was
described as “The complete Family Car”.
The low price tag of Santro initiated a price war among all companies and forced Tata
Indica to pre-pone its launch. The initial low price tag and strengthened by a solid
marketing initiatives in form of print advertisements provided a solid foundation for
Santro in India which showed in its sales of 17000 units in just 5 months. With that
started a journey of Santro whose sales grew at an average of 30% every year to
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emerge as the No. 2 car in B- Segment giving the established leader Zen sleepless
nights.
Hyundai has identified its target market based on its pricing strategy. Santro aims to
be the price leader in B-Segment cars. It has always priced its base model lower than
Zen or Indica giving all the features which they give in their higher models. With a
constant change in its positioning strategy, Hyundai Santro has succeeded in
identifying its target market every time and emerging as the fastest selling car in its
own segment. With the invent of Santro Xing, Hyundai is looking towards entire new
segment of consumers and all set to target it to emerge as the market leader in B-
Segment cars.
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POSITIONING
Since its inception, Santro has undergone a lot of changes in terms of its positioning.
First it was Santro, then Santro Zip drive, then came Santro Zip Plus and finally
Santro Xing as the latest model.
When Santro was initially launched it was positioned as “The Complete Family Car”.
Since Santro was launched in B-Segment, it had Maruti Zen and Tata Indica as its
biggest competitors in that segment. The stylish ‘Tall Boy’ Design of Santro together
with its slogan helped it to position itself as one of the cars to look upon.
With a constant change in its positioning, Hyundai always tried to keep alive the buzz
associated with Santro. The Zip drive and Zip plus positioning of Santro helped to
portray its position as the car which changes with time and giving its owners
something extra.
With the invent of Santro Xing in 2007, which came with some design changes too,
Hyundai repositioned Santro as “Sunshine Car (smart car for young people)” from
earlier “complete family car”. This was done because the competitors were coming
out with similar products and then Hyundai started what they call as ‘Emotional
Positioning’. This repositioning of Santro also helped it to target the segment of first
time car buyers. Even the print ads at this time were designed in a way to project
Santro as the first car for the fastest growing consumer segment of India at that time,
The Young Professionals, of the service industry that combined with various loan
facilities were too eager to buy their first car. This led to a phenomenonal growth in
its sales and further strengthening its position as a brand in consumer mind. Thus the
repositioning of Santro gave it an edge over its competitors and also to emerge as a
tough rival to Maruti 800 as ‘The First Car’.
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6.3 PORTERS FIVE FORCES MODEL
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Barriers to EntryHigh capital investment requiredStrong distribution network of existing playersStrong Brands existingEconomies of Scale
Threat of SubstitutesSwitching Cost to substitute is very lowPrice – performance Trade off of substitutesBrand loyalty does not exist
Bargaining power of SuppliersNo substitute for critical InputsSwitching cost from one supplier to other is highSupplier integrating forward for higher prices and margins
Bargaining power of BuyersAvailability of many brandsPrice sensitivityBuyer InformationProduct differentiation
Rivalry among existing firmsExit barrierIndustry GrowthIndustry ConcentrationDiversity of rivalsPrice competitionProduct differences
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SWOT ANALYSIS
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Strengths
Brand NameLarge Distribution NetworkWide product offering at different price pointsCheapest Cars in corresponding segmentsEncouraging exportsAwarded many awardsEconomy with technology
Weakness
Lack of in house R & DNew model introduction limited to only cosmetic changesDominance mainly at lower level only (Santro)
Opportunity
Rise of Indian middle class and small citiesA booming economyRising exports
Threats
Many players fighting for the same cakeEntry of new playersCannibalism
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Strengths
1. Brand Name: ‘Santro’ has emerged as a strong brand name in recent times.
Backed with the parent company Hyundai this is recognized as a strong player in
worldwide automotive market, Santro has definitely a value associated with it any
individual will like associatd with.
2. Large Distribution Network: With a strong dealer network of around 300 dealers
al around the country, Hyundai has made its presence felt in each and every corner
of India.
3. Wide Product offerings at different price points: Hyundai has launched various
models in various segments and hence has a very good product mix of offerings as
different price points. Starting from Rs. 2,78,999/- for Xing XK Non AC to Rs.
4,28,298/- for Xing AT (M).
4. Cheapest cars in respective segments: Hyundai has always followed an aggressive
pricing policy. As a result it has its cars priced at lowest possible rates in
respective segments.
5. Encouraging Exports: Backed by a strong production and a global setup at
Chennai plant, Hyundai is exporting a lot. An export of worth Rs. 1,325 crores has
been achieved in last six months.
6. Awarded Many Awards: Hyundai has been awarded with many awards and
recognitions like “The Star Company” amongst unlisted companies by Business
Standard this year. Its various models like Getz and Elantra too has achieved
many awards, thereby increasing the brand vale of the company.
7. Economy with technology: Hyundai’s cars have always seen as a company
producing cars blending economy with technology. Santro’s initiative of putting a
16-bit microprocessor on board has proved as one of the major reasons for its
success and that too for the lowest price in its segment.
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Weaknesses
1. Lack of in house R & D: HMIL do not have a comprehensive R & D department
in India and all the major design changes are sent by its parent company HMC.
2. New model introduction to only cosmetic changes: There is no major design
changes incorporated in Santro since its inception. Only some cosmetic changes
have been made.
3. Dominance mainly at lower level: HMIL dominance in Indian market is only at its
lower level segments like Santro in B-Segment and Accent n C-Segment. It has to
focus on its upper segment models to strengthen its position in Indian car industry.
Opportunities
1. Rise of Indian middle class and small cities: As a phenomenonal growth is
seen in recent times in Indian middle class and the purchasing power of
working class individuals. Also a rise in small cities across the country has
given a great opportunity to Hyundai for achieving a higher growth rate in
coming times.
2. A Booming Economy: Indian economy is growing at a rate of on an average
of 7% every year thereby giving an opportunity of larger sales in each and
every segment.
3. Rising exports: With a export of Rs. 1,325 crores in last six months, HMIL has
a great opportunity of achieving a export target of Rs. 2,700 crores in this
fiscal year.
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Threats
1. Many players fighting for the same cake: There a many major players in the
B-Segment and since the size of market is not expanding rapidly, HMIL has a
major threat in form of tough competition.
2. Entry of new players: with coming of Fiat Palio and other players planning to
come out with much more models in B-Segment, the competition is just
getting hotter.
3. Cannibalism: to some extent the Getz is affecting Santro because of its price.
Thus HMIL has to focus more on its positioning strategy of Getz and Santro.
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P’s of Hyundai Motor India Ltd. With focus to
Hyundai Santro
First ‘P’ - The Product
A New Shining Dawn
Here Comes the Sun Again
Ever since its launch in 1998 the Santro has proved to be the best compact car in
India, thanks to its excellent design and extensive testing for over 100,000 kilometers
in real Indian road and climate conditions. It is clever design that gives cars this touch
of practical beauty. Hyundai has come up with a vehicle that surprises with its ability
to utilize space extraordinarily well. The Hyundai Santro is probably the first of the
`big-small' cars that hit Indian roads. Set between the B and C segments in terms of
size and price, the Santro attempts to offer trim quality, interior space and build
quality on a par with the pricey sedans. First it was Santro. Then it got renamed as
Santro Zip Drive. After a while, Santro Zip Drive got replaced by Santro Zip Plus.
And then came its new ‘global' car, Santro Xing. Yes, Santro Xing is the new avatar
of the Santro Zip Plus. However, this time it is not just a change in the name; the new
avatar also looks different from its predecessor. The Santro Xing comes in five
versions, including automatic transmission, and has a new sporty exterior with safety
features which meet European standards. The Santro Xing is available in nine colours
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viz., Ebony Black, Noble White, Satin Grey, Fairy Leaf, Forest Dew, Husky Blue,
Mystic Lavender, Passion Red and Bright Silver. The colours present a varied choice
to consumers in picking a car that most closely defines their personality. Consumers
can have a feel of the color right from their homes by logging on to the website of
Santro Xing. Santro Xing comes with all new looking feel exterior and interior
styling. That, coupled with new advanced features, offers the best comfort & luxury in
the favourite compact car. New bigger & brighter clear headlamps, smiling radiator
grille, power operated rear windows with child lock and lots of other smart features
like the seat under tray are the hallmarks of your Sunshine Car. Santro is being
produced exclusively in India and the Indian Xing will now drives the World. The
idea was to create a constant hype around Santro to give it that competitive edge and
make it the truly “sunshine car”.
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CHIC AND CLEAN
Hyundai calls the Santro a Euro-styled, premium hatchback. If simple straight lines
and a practical, consistent design theme are indicative of pronounced European-
styling, then the Santro belongs to that class. European or not, the Santro is a good-
looking car that is also upfront about its focus on practicality, with marginal excesses
in design, a trait that could not be associated with Hyundai's first car for the Indian
market — the Santro.
It’s exterior styling gives it a sort of dual personality. The large format, clear lens-type
headlamp cluster dominate the car's frontal view. The short, sloping bonnet and the
single-slat grille seem to visually add some more measure to the Santro’s already
class-leading width. These features as well as the broad front bumper and the sharply
raked windscreen make it look very sedan-like, when viewed from the front. The
muscular shoulder flanks and the prominent, flaring wheel arches give ita well-
planted, aggressive profile.
However, viewed from the back, it seems to acquire a new, squat and wider
appearance. The short-hatch door, the raised position of the thickset bumper and the
relatively smaller combination lamps make the Santro’s rear seem more compact. The
wrap-around style tail-lamps are positioned mid-way, instead of lower and closer to
the bumpers as in older hatches or high up on the C-pillar as in the case of the newer
small cars such as the Tata Indica and the Suzuki Wagon-R. The overall design of the
tail-lamps and the circular reverse indicator integrated into it may remind the casual
observer of the Daewoo Matiz. The rear spoiler with the integrated high-mounted stop
lamp and the chunky, profiled external rear-view mirrors add a touch of exclusivity to
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the Santro. While visibility at the front is ample for the driver, thanks to the
panoramic windscreen and the large windowsfor the front doors, the thick, wrap
around body panels on the C-pillar limits thedriver's rear visibility, especially while
backing the car into a cramped parking slot.
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SIMPLE INTERIORS
The interiors of the Santro wear a fresh and simple look. The finish quality is good
and dimensional accuracy of dashboard and door panels rival those of a few C-
segment cars. The soft feel plastic used for the dashboard panels adds a touch of class,
but the dimpled finish may be a bit difficult to clean and maintain in Indian
conditions.
There are ample storage options, including the deep glove box, the removable ashtray
cup, bottle and cup holders at the front and rear, seat side pockets, coin storage on the
door handles, bag hook at the rear of the front passenger seat and the 60:40 split,
folding rear seats that go on to more than treble the boot storage space. The
instrument cluster is housed in a simple semicircular dashboard panel and features
two rounds, chrome-lipped gauges for the rpm meter and speedometer. The cluster
also features a digital clock and trip meter. Power and tilt-adjustable steering is
standard. The centre console features a brushed aluminum slap-on panel and houses
rotary type controls of the HVAC (air-conditioning) system and positive type controls
for the rear defogger, hazard lights and fog lamps. The dual adjusting air-conditioner
louvers look sophisticated and add to the Santro’s up market image. The dashboard
extends more than a foot into the cabin. While this gives the driver even more open
storage space on the flat faced top, at the bottom, after the dashboard tapers off, the
driver and co-passenger get loads of recessed leg space.
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ENGINE & TRANSMISSION
The Santro had been brought in with Hyundai's new 1,341cc, in-line, four-cylinder,
SOHC engine that develops a maximum power of 82.9PS at 5,500 rpm and a peak
torque of 11.8 kgm at 3,200 rpm. With the peak torque kicking at a low 3,200 rpm,
you will not have to rev the engine up to a grunt to get the best out of it. However, as
the Santro's engine is mapped for economy, there is a mild lag before the torque kicks
in the first three gears. The other side of this slightly slow, but steady rise in torque is
that this powerful 1.3-litre engine is surprisingly tolerant of lower speeds in every
gear slot. As a result, knocking is minimal obviating frequent shifts to a lower gear.
So, while the Santro delivers a lively performance in city traffic, the lull before peak
torque kicks in may be only a tad bothersome on the highway. But once you are past
3,000 rpm, it zips.
The five-speed manual transmission that the Santro comes with is one of the
smoothest in its class. The short throw, short-talked gearshift stick is a delight to use.
The suspension set-up features McPherson-type struts in the front and coupled torsion
beam axle and gas-filled shock absorbers at the rear. This configuration, coupled with
the rigid chassis, gives the car excellent handling dynamics.
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VALUE FOR MONEY
The Santro is the first of the large sub-compacts that made their way into the Indian
market. This cusp segment is likely to find more buyers as the market matures and as
the expectations of customers in the small-car segment increase. For Indian car buyers
looking for a good value for money proposition in the high-end B-segment category,
the Santro with its new and exciting variations is an attractive choice.
With a fuel economy of about 10 kmpl in city and about 15 kmpl on highway, it
attempts to keep running costs relatively low.
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KEY TECHNICAL SPECIFICATIONS AND FEATURES
Santro Xing
Dimension and Weight Overall Length (mm) 3565
Overall Width (mm) 1525
Overall Height (mm) 1590
Wheelbase (mm) 2380
Min. Turning Radius 4.4 m
Engine Number of cylinders 4
Number of valves 12
Engine Displacement(cc) 1086
Performance Maximum Output
(ps@rpm)
63@5500
Maximum Torque
(kgm@rpm)
9.1 / 4000
Tyres Size 155/70 R 13 Radial
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THE SECOND ‘P’ – THE PRICE
Using money as a magnet to attract customers kills loyalty, mangles margins and
encourages defections. But Unique Selling Price is undoubtedly one of the roads to
success in the intensely competitive automobile business. Ceteris Paribus, the
purchase decision of the first-time buyer is influenced by four factors---Price, Price,
Price and Price. The first is the price of acquisition. The second is the price of finance
or the rate of interest on the loan. The third is the price of maintenance, which
includes the cost of fuel, service and spare parts. And the fourth is the price of
disposal or the resale value of the car.
High indigenization stood Hyundai in good stead when it came to its entry pricing.
Hyundai surprised its competitors with a under Rs.3 lakh (ex-factory) price, slightly
below the Maruti Zen (Rs.3.2 lakh). Competitors and analysts criticized Hyundai for
predatory pricing, but Hyundai maintained that the low price is a result of high
indigenization level and effective ancillarisation. This gave Hyundai a strong foot-
hold as its production costs were lower. Hyundai ensured cost competitiveness
through tie-up between Lumax (well known supplier of lighting systems) with
Hyundai’s Korean vendor Samlip, to form Lumax-Samlip Industries. This was
because they were operating on much better overhead absorption, being suppliers to
other manufacturers in India. Also, they already had a grasp of technology because
they had partnerships with Japanese, European or American companies.
Hyundai offers a comprehensive range of finance packages to suit all budgets,
including Hyundai Finance which as an affiliated finance company offers complete
financing packages tailored to individual requirements. Hyundai also has tie ups with
banks like ICICI, Bank of America, KPML etc to offer loans to buyers.
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The following table gives the ex-showroom prices of all the variants of
Santro:
Top of Form
Ex-Showroom Prices for SURAT
Model Ex-Showroom Prices (Rs.)
Santro NonA/C (Solid) 296,473
Santro NonA/C (Metallic) 300,143
Santro GL Plus (Solid) 366,359
Santro GL Plus (Metallic) 370,030
Santro GLS (Solid) 389,415
Santro GL Plus (Solid) - LPG 390,254
Santro GLS (Metallic) 393,086
Santro GL Plus (Metallic) - LPG 393,925
Santro GLS (Solid) - LPG 411,693
Santro GLS (Metallic) - LPG 415,364
CNG Santro available only in Delhi(NCR), Agra, Ahmedabad and Mumbai
Bottom of FormDisclaimerThe prices and features of the cars may change without prior notice. Please check the latest prices and variant specifications with your Hyundai dealer before booking the car.
70% of the cost of a car over its lifetime goes in maintenance. Accordingly, in
Hyundai, pre-delivery inspection takes place at three stages---one, after the car rolls
off the assembly line, the next when it is loaded into the auto compound and finally, at
the dealer’s premises before it is handed over to the customers. This increases the
time between services for Santro. For instance, Maruti recommends services after
every 5,000 kilometers; whereas Hyundai recommends it after every 10,000
kilometers. Similarly, the engine oil, filter assembly for the Santro is priced lower
than that for the Maruti Zen. This low-cost proposition for spares offers an added
advantage when a buyer compares running costs.
Hyundai realized the difficulty to compete in the car markets and decided to go for a
sharp differentiation strategy. In order to avoid the price game, it decided to reinforce
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the individualistic positioning of the brand and tried to match the customer’s
perception that the car is a commodity using other differentiators. Hyundai opted
against the drop in prices, one reason being the fact that, buyers are shopping for
brand associations and customers are unlikely to let their decisions be swayed by
savings of a few thousands.
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THE THIRD ‘P’ – THE PLACE
Hyundai has spent time studying dealer networks. It found that dealers were
inconveniently located, their behavior towards customers left much to be desired, and
there was a lack of transparency in dealer operations. So the Hyundai outlook towards
dealership is compact dealership instead of a mammoth network. The emphasis is on a
dealer-customer relationship where each customer is given time. The company insists
on a one-to-one relationship to build a long lasting association. To this end, the
company insists on ownership and operation of dealerships resting on one person,
thus reducing absenteeism and promoting immediate decisions.
HMIL has established a start-up network of 70 dealer workshops (now close to 150),
equipped with the latest technology machines and international quality press, body
and paint shops, across the country. These dealer workshops include company owned
outlets called ‘Hyundai Motor Plaza’, that provide a Hyundai customer a one-stop
shop for meeting all needs.
In place of large showrooms and workshops, Hyundai decided that the workshop
should be ideally 10,000 sq.feet, which could be worked in three shifts and the
showrooms it preferred were 1,600-1,800 sq.feet. Dealers who already had land
would have to invest Rs.1.5 crores for the rest. With this infrastructure dealers can
handle 200-250 cars a month, which gives them adequate time to establish rapport
with customers.
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The company has also cut expenses of its dealers by keeping inventories low.
Hyundai’s dealers are given limited stock. This does not mean that Santro’s spares
come late. On the contrary, the car’s parts are available within 24 hours.
The dealer network is established with the objectives of providing the customer the
very best through a 24 hour hotline system, round the clock workshop services,
roadside services with tow away facilities, round the clock helpline services, etc.
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HYUNDAI DEALER NETWORK IN INDIA
So the kind of marketing channel that Hyundai follows for its cars is simple one level
Marketing channel.
Manufacturer Retailer Consumer
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THE FOURTH ‘P’ – THE PROMOTION
If you're trying to persuade people to do something, or buy something, it seems to me
you should use their language, the language in which they think. - David Ogilvy
Strapped with the tagline ‘Smarter people drive Santro’ Hyundai Santro hit the Indian
roads nearly a decade back. Hyundai Santro being a much admired lifestyle brand was
launched in nine colors with a colorful and jazzy advertising campaign developed by
its advertising agency Saatchi and Saatchi. Hyundai set aside as high as Rs 5 crore for
advertising and promotions each month. Effective advertising can add immense value
to brands, even in the small car segment, where the typical customer is far more
informed and aware of the product behind the brand.
Hyundai Motor India Ltd (HMIL) realized Indian consumers' penchant for unique
designs soon after their entry into India. With the run away success of the Santro,
HMIL was right with its promotion strategy and came up with a winning campaign.
Hyundai Santro has come a long way from its original Santro version to Santro zip
drive moving on to Santro zip plus and now to the newer and refreshed Santro
Xing, employing a different tag-line and promotional approach each time.
The first version of Santro was launched with much vigour as India’s very first “big
small car” and India’s very own “family car”. Being the first of its kind in the small
car segment Hyundai positioned itself well in the eyes of the consumer encouraging
them to buy the car. The earlier platform of Zip Drive suggested Santro's USP of
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power steering. "The Zip Drive positioning was successful at a time when air
conditioners were seen as brand differentiators," Hyundai hoped that in a market
where power steering accounts for over three-fourth of B segment sales (Santro was
one of the early power steering campaigners), and air conditioning had more or less
become an integral part of car purchases, the focus on Zip Plus with a new brand
positioning of ‘More Power, More Fun' will be a critical differentiator. Hyundai
contended that the Zip Plus positioning aimed at suggesting that something critical
had been added to the brand's current avatar. Hyundai was very generous in
promoting its new Xing model, promoting it as the “sunshine car” and roping in
Bollywood actress as the brand ambassador. Intense competition in the B-category
from Fiat Palio, the Maruti trio of Zen, WagonR and Alto, and Tata Indica forced
Hyundai to keep the excitement about santro alive encouraging the fresh new
positioning and attitude with Santro Xing, promoting it as a “new age car” targeted at
stylish individuals.
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GROUND PROMOTIONS
To promote its new offering, Hyundai chalked out a strategy which included press
ads, television campaign, outdoor media and internet advertising. In addition, the
company is in the process of rolling out a slew of marketing initiatives to promote its
launch. In a bid to reach out to a wider target audience, Hyundai has recently
extended its dealership to 133 across the country. To support its mass media
advertising, the company is now focusing on ground promotions. It sponsored many
shows and musical events like the MTV Style Awards in order to increase visibility.
MTV Santro Xing Kitni Mast Hai Xing-dagi Contest
They are hosting dance competitions at discos and night clubs in major metros across
the country. As it’s a new age car, it has also launched a slew of internet ad
campaigns to promote the brand online.’ For this purpose, the company has tied up
with portals like Rediff and Yahoo! India Hyundai is giving its four-year old small car
Santro a new and fresh positioning, and has roped in young and vibrant Bollywood
actress Preity Zinta for promotions worth Rs 5 crore.
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PRINT PROMOTION
Hyundai Santro was the top Car brand on Print in 2009 accounting for nearly 10% of
the advertising spends. Hyundai Motor India unveiled a hard-hitting print campaign to
announce the emergence of Santro as the country’s No. 1 Small Car. Ingredients of
the campaign are comparative ratings, which points to Santro’s certain superiority
over other B class rivals. Shah-Rukh Khan being the brand ambassador was mainly
featured in the print ad’s. Its said that Shah Rukh Khan ad has been the ad with the
highest recall value with as high as seven people out of ten being able to remember
him and connecting him with Santro. Over time as Santro excitement fizzed out
Hyundai roped in actress Preity Zinta with Shah-Rukh Khan giving birth to the
‘sunshine’ giving a bubbly and youthful feel to the entire campaign to revive some
amount of brand fatigue. While sticking to the ‘complete family car' positioning,
‘Sunshine' created new interest for the brand in the consumer's .Since the buyer is
young Santro was then promoted as a car that can change the life of a young person
mind .Since the buyer is young Santro was then promoted as a car that can change the
life of a young person.
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Print Ads through the ages
Headline: "The other home my husband doesn't mind me living in!"
Bodycopy: That's what you too would say about the Santro zip Drive! A feather
touches power steering for home-comfort rides (even bindis won't feel out of place)!
No fatigue, no stress. Because you don't need muscles to zip! And you'll feel safer
because it's so responsive. Add to it 'tall-boy' leg room, tasteful upholstery, divan-like
seats and snug headrests. No wonder, your husband won't mind you relaxing in
this mobile home of yours!
Baseline: Don't drive. Just zip!
Headline: Presenting the New Look SANTRO ZIPDRIVE.
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HYUNDAI SANTRO
Bodycopy: New clear lens headlamps
new rear combination lamps
new clear lens fog lamps
new chrome-plated front grille
new rear spoiler with LED stop lamp
new interiors
new colours
Baseline: India's favourite family car.
Headline: India's best-loved family car is now also India's simplest car to drive.
Subhead: Hyundai introduces Santro Zip Plus Automatic.
No shifting gears, no clutch, no problems.
Bodycopy: Hyundai brings back the sheer joy of driving by introducing Santro Zip
Plus Automatic with the Anti-lock Braking System (ABS). The only car in its
segment to use a state-of-the-art 4 speed, electronically controlled gearbox. While the
light-weight automatic transmission allows you to ease your way through city traffic,
the Anit-lock Braking System, a first for a car under 1500cc, stops you instantly
without any trace of a skid. So, go ahead and pick up a Santro Zip Plus Automatic.
And make driving the way it should be - Simple.
Baseline: The Sunshine Car
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Headline: Heads I'll drive, tails you won't.
Bodycopy: With the new souped up 1.1 litre engine, the Santro ZipPlus is so full of
sunshine that you'll do anything to get your hands on the wheel.
Baseline: The simplest car to drive.
Headline: I drive, you drive, I drive, you drive, I drive, you drive, I drive, you
drive.Bodycopy: With the new souped up 1.1 litre engine, the Santro ZipPlus is so full
of sunshine that you'll do anything to get your hands on the wheel.
Baseline: The Sunshine Car
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HYUNDAI SANTRO
Headline: Ok fine, you drive first. I'll drive next.
Bodycopy: With the new souped up 1.1 litre engine, the Santro Zip-Plus is so full of sunshine that
you'll do anything to get your hands on the wheel.
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HYUNDAI SANTRO
Baseline: The Sunshine Car
Bodycopy: Hidden inside the woman is a little girl. Your little girl. You've watched
her grow from pigtails, to jeans, to sarees. She's made the last twenty one years seem
like twenty one weeks.
And now, another man is laying claim to her attention. You don't know whether
you're happy or jealous.
This is the time to reinforce your position as the best man in her life. Give her
something she'll treasure.
Baseline: The simplest car to drive.
Bodycopy: Your wife.there's something special about her.
In the way she looks at you. In the way she smiles
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In the way she squeezes your hand when you're feeling low. In the way she makes
your house feel like home.
There's something special in the way she says her father is the best man in her life,
with a twinkle that tells you he's not the only one.
There's something special in the way she just fits into your life.
You know she's special. Gift her something that'll make her feel so.
Santro Xing Promotions: Repositioning of Santro
Santro Automatic
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HYUNDAI SANTRO
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
The Five Seater Santro: A Consumer Awareness campaign
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HYUNDAI SANTRO
CELEBRITY ENDORSEMENTS
Hyundai Santro has greatly benefited from its TV ad campaigns. Thanks to their
brand ambassador Shah-Rukh Khan Santro ad’s have the distinction of having the
highest recall value. With Preity Zinta adding more “Xing” to the campaign the run-
away success speaks for itself. More than the ad’s it is the positioning strategy of the
Santro that needs to be complemented. They have positioned the car as the
consumer’s first choice while buying a car for the first time in his life as al the first
things in his life are special. The initial ad aired featured Shah-Rukh with a certain
Mr.Kim, who also became an instant hit with the masses. Of interest is the fact that by
the time (Shah Rukh) Khan came around and ‘agreed' to an endorsement contract, Mr
Kim had told Indian consumers a few things about Hyundai (the company) and the
Santro (the car). It might even be argued that it was the fictitious Mr Kim - and not
brand ambassador Shah Rukh Khan - who first appealed to the left-brain of Indian
consumers by selling brand Hyundai, which went some way in later establishing the
Santro as a standard in the ‘B' segment of the Indian passenger car market. That, of
course, was five years ago. Since then, Shah Rukh has been regularly endorsing the
Santro and its many variants, while Mr Kim dignifiedly withdrew into anonymity, his
job done.
Well, after a five-year interregnum, gentleman Kim is back in the Santro's
communication - though, at first glance, he doesn't come across as being particularly
gentlemanly any longer. Quite the opposite, he is rather curt - even boorish - in the
way he stops the cheerful Shah Rukh (driving a Santro) in the middle of nowhere and
tells him to hand over the car's keys, explaining that his contract for the Santro Zip
Plus is ‘over'. He virtually dumps Shah Rukh by driving away with the car, leaving
the nonplussed endorser stranded on the highway. (Incidentally, this ‘teaser' interlude
is part one of a two-part communication.) If Mr Kim's behaviour is at odds with his
earlier warm, gracious persona, everything is soon explained - in the second part of
the communication. As Shah Rukh walks down the lonely road, a car draws up to
him. And out steps Mr Kim. An understandably angry Shah Rukh demands an
explanation, and Mr Kim readily offers one: the new Santro Xing, from which he has
just exited. ‘Your contract for Santro Xing begins now,' he smiles genially at Shah
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
Rukh, handing him the keys of the new car. This was a smart move on Hyundai’s part
as the consumer could easily relate to the new and improved version of “Santro Xing”
the earlier Santro zip plus. It was during this time that Hyundai promoted it as the
“sunshine car” and came out with the print and TV campaign featuring Preity Zinta.
This promotional campaign was successful in imparting a youthful and bubbly feel to
the brand. She is the ‘physical embodiment' of the ‘sunshine' that Santro supposedly
brings to the lives of its customers. To keep the excitement alive, they have aired the
ad’s with a storyline which has been broken up into four parts.
The first ad was the teaser that introduced the concept of ‘sunshine’ (without actually
showing Preity Zinta). In the second part, we get a glimpse of Preity Zinta. It is only
in the third part that the love between Shah Rukh Khan and Preity Zinta blossoms.
The final ad in the series would delve into ‘the chemistry' between the two.It is
therefore, rightfully said that Hyundai has been very smart in perceiving the
consumers interest and thus coming out with a campaign which is both visually
pleasing and is successful in putting it’s point across.
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HYUNDAI SANTRO
SANTRO’S EMOTIONAL BONDING
Hyundai Santro also started a series of TV advertisements depicting the emotional
bonding between the Santro and its owners. One of the storyboards of such
Advertisement goes on like this.
Driving his car a guy sees a girl and falls for her. Super: First love. But is disappointed when he sees flowers in her hand for somebody else.
Next, a couple fight playfully on their bed. Super: First fight. Cut to a father trying to change nappy of his baby. Super: First born.
VO: The first things in life are always special. Make Santro your first car...
... Because your family deserves the best. Super: Hyundai. Drive your way.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
HYUNDAI ROAD SHOW "WORLD OF WHEELS"
Hyundai has by hosting and participating in auto car shows believes in increasing it’s
visibility all across. Hyundai Motor India's second road show, the "World of Wheels"
(WOW), began its four-month long journey across the country on December 2, 2007,
with a grand display of nine cars from the Hyundai stable.
The "World of Wheels" will drive into 34 non-metro cities, beginning with Ludhiana
in Punjab and then move to other cities in the Northern region. In each of the cities,
covering all the four regions, the road show would be a three-day event, with a special
press preview on the inaugural day. All the seven Hyundai brands currently sold in
India will be on display at the exhibitions. As a special attraction, Hyundai has
shipped from Korea two premium Hyundai cars which are yet to be launched in India
- the super-luxury sedan Azera and the sports coupe Tuscani. This is for the first time
that the two cars would be displayed all over India.
The World of Wheels will not only showcase the sophistication of Hyundai's
technological advancement and design capabilities, but also give the people an
opportunity to book their vehicles at the venues. The road show in each city promises
to be an exciting affair with special offers and a "WOW package" of goodies for
people who book their cars at the venue. The event will also have its share of fun and
entertainment - with game-shows, contests and exciting prizes.
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HYUNDAI SANTRO
The country wide road show is part of Hyundai Motor India's continuing effort to
connect with and reach out to the customer directly. The event will give our
customers in non-metro cities a first-hand experience of the entire range of Hyundai
cars in India and some which may enter India in the near future.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
FINDINGS AND ANALYSIS
Ques1
Total income
Below 1 lakh 10
1 lakh – 1.5 lakhs 20
1.5 lakhs – 3 lakhs 44
Above 3 lakhs 26
10%
20%
44%
26%
Below 1 lakh 1 lakh – 1.5 lakhs 1.5 lakhs – 3 lakhs Above 3 lakhs
This doughnut graph represents the income level of the respondents. Under this
category as we can see that a lion share of respondents i.e. 44% belongs to middle
group that is with income between 1.5 lakhs to 3 lakhs.
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HYUNDAI SANTRO
Ques 2
For how many years you are using Hyundai santro
1 year 10
2 year 30
3 year 40
More than 3 year 20
10%
30%
40%
20%
1 year 2 year 3 year more than 3 year
This pie graphs shows the experience of number of respondents who are using
Hyundai santro. As we can see that 40% respondents are using Hyundai santro from
last 3 years.
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HYUNDAI SANTRO
Ques 3
Do you like Hyundai Santro?
Yes 84
No 16
This bar graphs represents responds of respondents about their likings for Hyundai santro.
And as we can see that 84% of respondents like Hyundai santro, which is a very good
sign of consumer satisfaction.
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HYUNDAI SANTRO
Ques 4
What were the factors which influence you to buy Hyundai santro?
Brand name 26
Style 4
Fuel efficiency 30
Comfort 20
Performance 10
Any other 10
26%
4%
30%
20%
10%
10%
Brand name style Fuel efficiency
comfort Performance any other
This doughnut graphs represents the factors that influenced the respondents to buy
Hyundai santro. As we can see that 30 % of respondents buy their Hyundai santro for fuel
efficiency and 26% of respondents for brand name.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
Ques 5
Are you satisfied with your Hyundai santro?
Yes 78
No 24
This bar graph represents the consumer satisfaction for Hyundai santro. As we see
that 76% of respondents are satisfied with their Hyundai santro.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
Ques 6
What you don’t like about Hyundai santro
After sales services 40
Air conditioner 10
Comfort 16
Fuel efficiency 4
Performance 18
Any other 12
This bar graph represents disliking about their Hyundai santro. This shows that 40%
of respondents are not satisfied with after sales services.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
Ques7
What you like about Hyundai santro
After sales services 16
Air conditioner 24
Comfort 20
Fuel efficiency 30
Performance 10
Any other 0
This bar graph represents likings about their Hyundai santro. This shows that 30% of
respondents are satisfied with fuel efficiency of the car.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
Ques 8
Did advertisement influenced your Hyundai santro buying decision
Yes 88
No 22
This bar graph represents the advertisement influence in the buying decision of
Hyundai santro. This shows that advertisements influenced 78% of respondents for
buying Hyundai santro.
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HYUNDAI SANTRO
Ques 9
Hyundai santro to you
Just a car 10
More than a car 30
The sunshine car 20
The family car 40
10%
30%
20%
40%
Just a car more than a car
The sunshine car the family car
This doughnut graph represents the emotional bonding of the respondents with Hyundai
santro. This shows that for 40% of respondents, Hyundai santro is not just a car but a
Family Car.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
Observations & Recognitions
Today, in India there are only 5 cars among 1000 people so there is a huge market
to exploit.
According to Recent Sales Satisfaction survey Hyundai lies at the second last
position.
Thus Hyundai should train their technical staff to deal with customer who is in the
workshop to get their cars serviced/repaired. No doubt it is hard to manage and
handle such a big network but the company has to handle it properly to satisfy its
customers. We should always remember that loyal and satisfied customer gives a
chain of new customers.
Hyundai should emphasis on after sales services.
Hyundai should launch the CNG variant of its models used for public transport.
Hyundai dealer network is still small as compared to segment it is targeting. So it
has to expand its dealer network to keep up with its rising sales.
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HYUNDAI SANTRO
The comprehensive promotional campaign of Hyundai should continue giving it
more brand visibility.
Hyundai should take this fact into consideration that the demand for passenger
cars in the long run will be robust due to rising income levels and also due to rise
in Indian middle class.
HMIL can also focus on exports as this is one area which is having the largest
share in its Top line growth.
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
CONCLUSION
This project was conducted on marketing strategies of Hyundai motor India ltd. with
focus on Hyundai santro. In this project questionnaire was prepared to know the
consumer satisfaction level of respondents and the conclusion is based on the same.
Few years ago, on September 23rd 1998 the company launched Hyundai santro in the
Indian market. The company was new in the market but still the company sold around
17000 units in first five months. The company has already created their market share till
now and can be distincted from other brands.
From findings and analysis we can conclude that the consumers are very much satisfied
from their Hyundai santro. For them Hyundai santro is not just a car but for them it’s a
family car, that is the company has already created their emotional bindings with their
consumers. As Hyundai santro is a middle segment car so its main focus is to give more
fuel efficiency, and according to respondents, the company has given them what they
want, that is most of the respondents are satisfied from fuel efficiency of the car. But the
company also lies behind in some fields like few respondents were not happy when after
a sales service is taken into account.
“Success will largely be determined to the extent a company can differentiate itself in
terms of intangibles that go with a car”. Thus, success could well hinge on the best of
bundle of services that a carmaker can provide.
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HYUNDAI SANTRO
QUESTIONNAIRE
Name ____________________________________
Address ____________________________________
Age ____________________________________
Occupation ____________________________________
Ques1
Total income
A) Below 1 lakh B) 1 lakh – 1.5 lakhs
C) 1.5 lakhs – 3 lakhs D) above 3 lakhs
Ques 2
For how many years you are using Hyundai santro
A) 1 year B) 2 year
C) 3 year D) more than 3 year
Ques 3
Do you like Hyundai Santro?
A) Yes B) no
Ques 4
What were the factors which influence you to buy Hyundai santro?
A) Brand name B) style
C) Fuel efficiency D) comfort
E) Performance F) any other
Ques 5
Are you satisfied with your Hyundai santro?
A) Yes B) no
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
Ques 6
What you don’t like about Hyundai santro
A) After sales services B) air conditioner
C) Comfort D) fuel efficiency
E) Performance F) any other
Ques7
What you like about Hyundai santro
A) After sales services B) air conditioner
C) Comfort D) fuel efficiency
E) Performance F) any other
Ques 8
Did advertisement influenced your Hyundai santro buying decision
A) Yes B) no
Ques 9
Hyundai santro to you
A) Just a car B) more than a car
C) The sunshine car D) the family car
Shree S.V.Patel Collage Of Computer Science &Business Management
HYUNDAI SANTRO
BIBLIOGRAPHY
Marketing Management by Phillip Kotler
Brand positioning by Subroto sengupta
Positioning: The Battle for your mind by Al Ries & Jack Trout
Newspapers, Journals & Magazines
Business World
The Economist
Economic Times
Autocar India
Websites
www.hyundai.co.in
www.hyundai.com
www.google.com
www.agencyfaqs.com
www.brandchannel.com
www.superbrands.org
www.marketingprofs.com
www.netmba.com
www.economictimes.com
www.blonnet.com
www.ecnomist.com
www.bsmotoring.com
www.autoworld.com
Shree S.V.Patel Collage Of Computer Science &Business Management