new product development process for hyundai

7/30/2019 New product development process for hyundai

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HYUNDAI INDIA

Shraddha Verma

Shubham Singh

Vishal Patel

Anand Yati

Hrishikesh Deshpande

Shivesh Ranjan

GROUP 8 SECTION C



Opportunity Scan

Affordable family car designed for familyoutings.

A car which provide comfort in medium – long distance travelling with a mix of on roadand off road driving.

A car which provides added safety features

for the children and family elders sitting onthe rear seats.

A car which does not cost much on yourpocket.



Market Potential

Current Market Size:

14% of Total PV Sales ~ 364000 VEHICLES [source:

http://www.livemint.com/Companies/5BJhcqGPwRS3EYSivEUeKI/Maruti-Suzuki-enters-utility-vehicle-segment-with-Ertiga.html?facet=print ]

In the next 5 Years, UV penetration may riseto 30% [source: http://newindianexpress.com/business/news/article1343905.ece]

Utility vehicles have demonstrated a CAGR of

20% over the last three years[Source:

http://sevensisterspost.com/maruti-suzuki-launches-ertiga-enters-muv-market/]

Passenger vehicles showed 30% growth in2011.

http://www.livemint.com/Companies/5BJhcqGPwRS3EYSivEUeKI/Maruti-Suzuki-enters-utility-vehicle-segment-with-Ertiga.html?facet=print


http://newindianexpress.com/business/news/article1343905.ece

http://sevensisterspost.com/maruti-suzuki-launches-ertiga-enters-muv-market/














http://newindianexpress.com/business/news/article1343905.ece


















Value Proposition

Affordability

Reliability

Safety Comfort



Hierarchy of customer value

Augmentation•ABS, Airbags,

Collision Avoidance

Expected Product

• Multi UtilityVehicle

Basic Product

• 7 Seater , Safe,Rugged Vehicle

Core Benefit

• AffordableFamily Car



Segmentation

Urban families in the income range of $16000- $18000 (annual)

Tier 1 and Tier 2 cities



Body Type MUV Engine Kappa 1.2-liter turbo GDI engine Displacement (cc) 1248 Fuel Type Diesel Transmission Manual No of Gears 5 Performance Peak Power(BHP@RPM) 90/4000 Peak Torque(Nm@RPM) 200/1750 Mileage (City/Highway in KMPL) 15/18 Dimensions Length (mm) 4265 Width (mm) 1695 Height (mm) 1685 Ground Clearance (mm) 185 Wheelbase (mm) 2740 Kerb Weight (kgs) 1845 Boot Space (L) 400 Turning Radius (m) 5.2 Key Features Air Conditioner Yes Climate control YEs Central locking Yes



CD player YES Power steering Yes Power windows yes Steering Adjustment (Rake/Reach) yes Electrically Adjustable Driver Seat yes Steering Mounted Controls yes Rear AC vent yes Remote Controlled Boot yes Rear wiper yes Leather seats yes Electrically Adjustable Mirrors yes Safety Features Anti-Lock Braking System(ABS) yes Side Airbags yes Parking Sensors yes Traction control yes Collision Avoidance system yes Child Lock in rear door yes Capacities Fuel Capacity (L) 45 Seating Capacity 7 Wheels and Tyres Tyre Specs Front 185/65 R15 Tyre Specs Rear 185/65 R15



Product Life Cycle (1998)

Santro




Santro

Accent




Santro

Accent

Sonata




Santro

Accent

Sonata

Atos Prime

Terracan




Santro

Accent

Sonata

Atos Prime

Terracan

Elantra

Getz




Santro

Accent

Sonata

Atos Prime

Terracan

Elantra

Tucson

Amica

Getz




Santro

Accent

Sonata

Atos Prime

Terracan

Elantra

Tucson

Amica

Getz

Verna




Santro

Accent

Sonata

Atos Prime

Terracan

Elantra

Tucson

Amica

Getz

Vernai10




Santro

Accent

Sonata

Atos Prime

Elantra

TucsonGetz

Vernai10

i20




Santro

Accent

Sonata

Atos Prime

Elantra

Tucson

Getz

Verna

i10

i20




Santro

Accent

Sonata

Elantra

Tucson

Getz

Verna

i10

i20

Santa Fe




Santro

Accent

Sonata

Elantra

Verna

i10

i20

Santa Fe

EON




Santro

Accent

Sonata

Elantra

Verna

i10

i20

Santa Fe

EON

Hence a car in the cost segment of Accent can be launched



Ansoff Matrix

SantaFe

Eon

AccentExecutive

i10 Next Gen

New i20

New Sonata

FluidicElantra



Product Mix

A2

• Eon

• i10

• i20

• Santro

A3

• Accent

• Verna

A4

• Elantra

A5

• Sonata

SUV

• SantaFe

MUV

Product Mix WidthProduct

Line D

epth

d i l i



Product Line Analysis

85%

14%

1% <1% <1%

2012 Sales (Oct 2012)

A2 (Eon, i10, i20, Santro) A3 (Accent, Verna)

A4 (Elantra) A5 (Sonata)

SUV (Santa Fe)

A2 segment is most selling Hyundai has no products in the MUV

space and only one product SantaFe in the SUV category

UV segment is promising (sales jumped

by 62% in 2012)

A new product line in MUVs can belaunched

http://www.business-standard.com/india/news/suv-isbuzzword-in-motown/497438/

http://www.business-standard.com/india/news/suv-isbuzzword-in-motown/497438/



BCG

STAR ?

Cash Cows Dogs

Elantra, Eon,

Sonata

SantaFe

i10, Verna

Santro

Accent

i20 Magna



Suggested New Product

Options



Product 1

Luxury CarCost Bracket : Rs. 22 – 25 Lacs.

Reasons:

Hyundai has no existing product in luxury car segment and this segment ispoised to grow at a rate of 40-45% in year 2013.(Source – Kotak Crisil Report2012,Reuters 3rd Jan 2012, ToI 8th Dec. 2012, Deccan Herald 15th Feb. 2012)

The trend is shifting from SUV to luxury car(Source – Kotak Crisil Report 2012)

“There are around 1,93,000 millionaires (in USD) in India as of 2011, says PeterHonegg (CEO,Mercendez Benz) . Globally, people tend to switch cars in theluxury segment every three-four years, which means that the average marketsize in India ought to be close to 50,000 at present.” – Economic Times, 22ndJune, 2012

HNIs the target customers of luxury car have a shifting focus from Mercedes.

Customers are searching for a car which provides them uniqueness anddifferentiate them from any other luxury car owner. This brings in a uniqueopportunity of customizable luxury cars with advanced technological featureslike : Dual mode engine power, Customers having freedom to design andcustomize their own car, Auto updation of Maps and Intelligent transmissionsystem.



Product 2

SUV:

Cost Bracket : Rs. 14 - 18 Lacs.

Reasons:

Indian buyers are now considering adventure, off roading, and more space when it comes to theirchoice of vehicles

SUVs have been seen as the more favorable choicein the market

Growth rate of 32% in the last financial year There is a market gap in the SUV market in the

above cost bracket



Product 3

MUV:Cost Bracket : Rs. 6.5 – 8.5 Lacs.

Reasons:

Additional space: ‘people movers’

Strong rugged looks and design suitable forIndian road conditions

The diesel orientation. Existing Competition: Maruti Ertiga

Sales figure grew by 68.5% after launch of Ertiga

Hyundai does not have any other MUV in the above costbracket



Proposal Before the Manager

Launch of MUV Utility vehicles have demonstrated a CAGR of

20% over the last three years (68% recorded

from April to November 2012) The product will provide around 10% profit

margin

The product will achieve market leadership in itssegment as it will have an affordability catch



Next Step: Business Analysis:

Estimating total sales, costs and profits

Marketing Strategy: TV advertisements, You tube channel and social media buzz, Feature in

prominent magazines

Concept Car at Auto Expo

On-road Demo Cars

Product Development: Employ QFD to translate customer attributes to a working prototype and

testing

Commercialization:

Analyze odds for new facility/ rented facility/existing facility

Customer Adoption Process:

Awareness: Advertising

Interest: Website and Facebook page to disseminate information

Evaluation: Seek positive reviews from experts by allowing them test runs

Trial: Provide test drive to estimate the value of the product

Adoption: Consumer decides to make full or regular use of the innovation



THANK YOU!!!

new product development process for hyundai

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