A PROJECT REPORT ON

MARKETING STRATEGIES OF HYUNDAI MOTORS INDIA LIMITED WITH FOCUS ON HYUNDAI SANTRO

EXECUTIVE SUMMARY
Indian Economy has undergone a radical transformation in the last three decades. The discoveries and invention in various fields of life is perhaps being the reasons for this transformation. The marketing strategy in India which was practiced in the olden days has either been changed or been refined so as to adjust with this dynamic world. If we consider the early years of development of our economy, It is observed that the producers consumers as well as production and consumption is becoming more and more complex and specialized. The present emphasis is one matters of providing a complete comfort or status to the customers every walk of life. In the light of the present marketing scenario, through this project, How HYUNDAI MOTOR INDIA LTD. can increase its market share in automobile industry emphasis on marketing. Authentic marketing is not the art of selling what you make but knowing what to make. It is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profits to the producers and benefits for the stakeholders. - Philip Kotler

This Project report tries to take a look on various aspects on Marketing and study of Marketing strategies adopted by Hyundai Motors India Limited (HMIL) with a special focus on Hyundai Santro. We settled for HMIL because at the time of its entry in Indian Market back in 2007, it was taken as another foreign car maker entering Indian Passenger car market. But the way in which HMIL has achieved a constant growth rate of around 30% in past 8 years and the way Santro has emerged as the market leader in B-segment is all due to its fierce Marketing program. Hence a detailed study at the marketing strategies adopted by HMIL for Santro gives us an excellent opportunity to apply our classroom learning in analyzing real life situations.

TABLE OF CONTENTS
S.No. Chapter 1. Introduction Indian Automobile Industry Objectives Porters Five Force Model History of Indian Automobile Industry Trends In Indian Automobile Industry Key Developments in the Industry Key Demand Drivers

Topic
1-9

Chapter 2. Chapter 3. Chapter 4.

Objectives Segment Analysis Hyundai Motors India Limited

An Overview Of The Company New Milestones Awards And Recognition Product

10 11-13 14-20

Chapter 5.

Research Methodology
Data Collection Sample Size Statistical Tools

21

Chapter 6.

Analysis Of The Marketing Strategy With Focus To Hyundai Santro

STP Segmentation, Targeting, Positioning Porter 5 Force Model SWOT Analysis Ps Of Hyundai Motor India Ltd. With Focus On Hyundai

22-33

Santro

Chapter 7. Chapter 8. Chapter 9.

Findings And Analysis Recommendations Conclusion Questionnaire References Bibliography

34-42 75-76 77 78-79 80 81

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.

The following table presents a comparative view of the extent of motorization in India vis--vis certain other countries in the world. Country Developed Countries U.S.A United Kingdom Japan Germany Emerging Economies China Indonesia Philippines South Korea India Passenger Cars in Use per Thousand Persons 478 373 395 508 3 14 10 167 5 Two-Wheelers in Use per Thousand Persons 14 12 115 36 8 62 14 59 27

(which year is this table talking bout?)

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.

Porter Five Forces Model in the Indian Automobile Industry

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 twowheeler 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 twowheelers). New multinational players may enter the market. 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.

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.

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 FY2007, 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.

(uve already mentioned this in ur 1st prohject)

PASSENGER CAR INDUSTRY IN INDIA: HIGHLIGHTS

Passenger car sales are expected to increase at a compound annual growth rate

(CAGR) of 8% over the period FY2006-2007. 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 With the launch of new models from FY2007 onwards, the market for MUVs

towards cars of highest capacity. 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.

Trends in the Indian Passenger Car Industry

Distribution Systems: Changing relationship of manufacturers with dealers and suppliers

Product technology: MPFI; CRDi; diesel system

Entry of Foreign Manufacturers

Auto finance: Better/ cheaper schemes

Indian Passenger Car Industry

Manufacturing Technologies: Flexible Manufacturing Systems Components: Tierisation; Tyres: Radials, Retreading Materials: Low weight; Synthetic Composites

Regulatory framework: Deregulation; De licensing; Removal of QRs; Introduction of strict Emission norms

Structure of demand: Change in industry segmentation

KEY DEVELOPMENTS IN THE INDUSTRY

DOMESTIC SALES

MARKET SHARE

APR-AUG COMPANY NAME Daimler Chrysler India Pvt Ltd Fiat India Automobiles Pvt Ltd Ford India Ltd General Motors India Ltd Hindustan Motors Ltd Honda Siel Cars India Ltd Hyundai Motor India Ltd Maruti Udyog Ltd Skoda Auto India Ltd Tata Motors Ltd Toyota Kirloskar Motor Ltd Total Passenger Car Sales 2006 633 2907 8852 7179 5610 13813 48299 162007 3003 58548 4519 315370

APR-AUG 2007 662 635 6944 4981 5626 17560 63140 169606 3439 55536 4030 332159 GROWTH 4.6 -78.2 -21.6 -30.6 0.3 27.1 30.7 4.7 14.5 -5.1 -10.8 5.3

APR-AUG 2006 0.2 0.9 2.8 2.3 1.8 4.4 15.3 51.4 1 18.6 1.4 100

APR-AUG 2007 0.2 0.2 2.1 1.5 1.7 5.3 19 51.1 1 16.7 1.2 100

(u will have to say from where u got these figures)

During April August 2007, 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 2007 to 64.9% in April August 2007, 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.

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 2007 vis-avis 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 FY2006 while the market share of Tata Motors declined in the same period.

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.

There is a high degree of correlation between the demand for cars and ECONOMIC GROWTH.

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. The Central Governments AUTO POLICY on excise and customs is an important aspect affecting the demand and supply of cars.

Availability of NEW MODELS is likely to increase and change the structure of demand.
MINI

Segment Analysis CAR

DEMAND

COMPACT

MID-SIZE

<3400m 4701Competitive MARKET would, on one AVAILABILITY OF CHEAP Vehicle Length is crucial m 3401-4000 4001-4500 4501-4700 5000 consumers to >5000 PRICING hand, encourage FINANCE is a key determinant for gaining market 800 Alto Esteem trade in their cars faster, and of demand as most cars (around share, especially in Omni Zen in India are Baleno on the other, eat well into the 60%) purchased the small car Wagon R Altura share of new cars. financed. segment. Maruti Udyog Ltd Versa Hyuindai Motor India Ltd Santro Accent Elantra Sonata Ambassado r Contessa Mitsubishi Hindustan Motors Ltd Lancer Palio Siena Uno adventure Fiat India Automobile Ltd Weekend

EXECUTI PREMIU LUXUR VE M A mature USED CAR Y

Corsa Sail General Motors India Ltd Honda Siel India Ltd Ford India Ltd TELCO DalmierChrysler India Ltd Skoda India Ltd Toyota Kirlosker Motor Ltd

Indica

Opel Corsa Opel Astra Opel Swing City Ikon Indigo

Opel Vectra

Accord Mondeo Mercedes Benz C Class,M Class,SL Octavia Corolla Mercedes Mercede Benz E s Benz S Class Class Camry

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 Daewoos 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 Zens 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 Santros 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 2006 units in May 2007 and recording an average monthly sale of 3123units in FY2007. 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 FY2007 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.

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 2007, 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 FY2006 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 2007.

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 2006 with a growth of 43% over year 2007. 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 2007. HMILs 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 HMILs total production capacity to 400,000 per annum by 2007. 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 HMCs 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 with the companys greater focus on the quality of its after-sales service, HMILs service network will be expanded to over 1,000 in 2007.

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 CNBCTV18 Autocar Best Value for Money Car Award. HMIL was also the Manufacturer of the Year two years in a row in 2006 and 2007. ICICI Overdrive Awards declared Hyundai as the Car Maker of the Year in 2007. 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 HMILs cars and the various segments they belong to as in the Indian market.

Segment
B B+ C D E SUV

Classification
Sub - Compact Compact Mid Size Premium Luxury Sports Utility Vehicle

HMILs Car
Santo Xing Getz Accent Elantra Sonata Tucson Terracan

Price (Ex Showroom in Delhi)

Rs. 278999 Rs. 421000 Rs. 529000 Rs. 853793 Rs. 1399000 Rs. 1462999 Rs. 2059151

(u can use this info in the end to highlight the milestones)

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 350 as an average no of cars per thousand persons it is very low in India (5). 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 2007.

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 2006-07. HMIL has sold a total of 236,878 vehicles in the Calendar Year 2007 so far, achieving a growth of 21% over the January-November sales in 2007. While domestic sales in January-November, 2007, 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, 2007, 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.

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, 2006 and 2007)

Hyundai Santro has topped the JD Power Asia Pacific APEAL study that measures customer satisfaction for three years in a row (Years 2006, 2007 and 2008)

Hyundai Accent has topped the JD Power Asia Pacific IQS for 2007 and the APEAL study for 2006 and 2007.

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 1999

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

Hyundai Motor India was adjudged the Car Maker of the year at the ICICI Bank Overdrive awards 2006

HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

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 Santros 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 individuals 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:
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)

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 50 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.

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 trafficheavy 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.

PEST ANALYSIS
In order to understand the conditions under which the Santro was launched in the Indian market, its 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.

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 Santros positioning as ones first car has led to Hyundais 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.

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.

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 firms 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

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 BSegment cars.

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.

6.3 PORTERS FIVE FORCES MODEL

Barriers to Entry High capital investment required Strong distribution network of existing players Strong Brands existing Economies of Scale

Bargaining power of Suppliers No substitute for critical Inputs Switching cost from one supplier to other is high Supplier integrating forward for higher prices and margins

Rivalry among existing firms Exit barrier Industry Growth Industry Concentration Diversity of rivals Price competition Product differences

Bargaining power of Buyers Availability of many brands Price sensitivity Buyer Information
Product differentiation

Threat of Substitutes Switching Cost to substitute is very low Price performance Trade off of substitutes Brand loyalty does not exist

SWOT ANALYSIS

Strengths Brand Name Large Distribution Network Wide product offering at different price points Cheapest Cars in corresponding segments Encouraging exports Awarded many awards Economy with technology Weakness Lack of in house R & D New model introduction limited to only cosmetic changes Dominance mainly at lower level only (Santro)

Opportunity Rise of Indian middle class and small cities A booming economy Rising exports

Threats Many players fighting for the same cake Entry of new players Cannibalism

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: Hyundais cars have always seen as a company producing cars blending economy with technology. Santros 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.

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.

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 Fial 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.

Ps 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 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.

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 Europeanstyling, then the Santro belongs to that class. European or not, the Santro is a goodlooking 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.

Its 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 Santros 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 wellplanted, 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 Santros 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

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 the driver's rear visibility, especially while backing the car into a cramped parking slot.

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 Csegment 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 Santros 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.

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.

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.

KEY TECHNICAL SPECIFICATIONS AND FEATURES

Dimension and Weight

Engine Performance

Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheelbase (mm) Min. Turning Radius Number of cylinders Number of valves Engine Displacement(cc) Maximum Output (ps@rpm) Maximum Torque (kgm@rpm)

Santro Xing 3565 1525 1590 2380 4.4 m 4 12 1086 63@5500

9.1 / 4000

Tyres

Size

155/70 R 13 Radial

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 foothold as its production costs were lower. Hyundai ensured cost competitiveness through tie-up between Lumax (well known supplier of lighting systems) with Hyundais 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.

The following table gives the ex-showroom prices of all the variants of Santro:
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) Ex-Showroom Price (in Rs.) 2,78,999 2,82,973 3,32,999 3,36,972 3,55,999 3,59,972 3,81,999 3,85,975 4,24,324 4,24,298

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 dealers 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 the individualistic positioning of the brand and tried to match the customers 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.

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.

The company has also cut expenses of its dealers by keeping inventories low. Hyundais dealers are given limited stock. This does not mean that Santros spares come late. On the contrary, the cars 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.

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

(talk about goa more..otherwise the project becomes general)

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 Indias very first big small car and Indias 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 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 stylish individuals. the fresh new positioning and attitude with Santro Xing, promoting it as a new age car targeted at

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 its 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.

PRINT PROMOTION

Hyundai Santro was the top Car brand on Print in 2007 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 countrys No. 1 Small Car. Ingredients of the campaign are comparative ratings, which points to Santros certain superiority over other B class rivals. Shah-Rukh Khan being the brand ambassador was mainly featured in the print ads. 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.

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. 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

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

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.

(if u want to save soace dont mention details. Just say the old ads highlighted
specifications of the car ans targeted it to the women as an easy to drive car while the new ads of santro talk about the experience of driving the car..and show the new ads)

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 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

The Five Seater Santro: A Consumer Awareness campaign

CELEBRITY ENDORSEMENTS
Hyundai Santro has greatly benefited from its TV ad campaigns. Thanks to their brand ambassador Shah-Rukh Khan Santro ads have the distinction of having the highest recall value. With Preity Zinta adding more Xing to the campaign the runaway success speaks for itself. More than the ads it is the positioning strategy of the Santro that needs to be complemented. They have positioned the car as the consumers 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 Rukh, handing him the keys of the new car. This was a smart move on Hyundais 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 ads 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 its point across.

SANTROS 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.

HYUNDAI ROAD SHOW "WORLD OF WHEELS"

Hyundai has by hosting and participating in auto car shows believes in increasing its 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, 2006, 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. 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. (See if something similar happened in goa.)

(how did u chose the respondents of the survey?)

Ques1 Total income

Below 1 lakh 1 lakh 1.5 lakhs 1.5 lakhs 3 lakhs Above 3 lakhs 5 10 22 13

10% 26% 20%

44%

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.

Ques 2 For how many years you are using Hyundai santro
1 year 2 year 3 year More than 3 year 5 15 20 10

20%

10%

30%

40%

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.

Ques 3 Do you like Hyundai Santro?

Yes No 42 8

5 0 4 0 3 0 2 0 1 0 0 1 N o Ys e N o Ys e

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.

Ques 4
What were the factors which influence you to buy Hyundai santro? Brand name Style Fuel efficiency Comfort Performance Any other
13 2 15 10 5 5

10 % 1% 0 26 %

2% 0

4%

30 %

B d na e ran m co fo m rt

style Pe rm n rfo a ce

Fu l efficie cy e n a o e ny th r

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.

Ques 5
Are you satisfied with your Hyundai santro? Yes No
38 12

40 30 20 10 0 1 no Yes no Yes

This bar graph represents the consumer satisfaction for Hyundai santro. As we see that 76% of respondents are satisfied with their Hyundai santro.

Ques 6 What you dont like about Hyundai santro

After sales services Air conditioner Comfort Fuel efficiency Performance Any other 20 5 8 2 9 6

25 20 15 10 5 0 1 After sales services fuel efficiency air conditioner Performance Comfort any other

This bar graph represents disliking about their Hyundai santro. This shows that 40% of respondents are not satisfied with after sales services.

Ques7
What you like about Hyundai santro After sales services Air conditioner Comfort Fuel efficiency Performance Any other
8 12 10 15 5 0

16 14 12 10 8 6 4 2 0 1 After sales services Fuel efficiency Air conditioner Performance Comfort Any other

This bar graph represents likings about their Hyundai santro. This shows that 30% of respondents are satisfied with fuel efficiency of the car.

Ques 8
Did advertisement influenced your Hyundai santro buying decision Yes No
39 11

4 0 3 0 2 0 1 0 0 1 N o Ys e N o Ys e

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.

Ques 9
Hyundai santro to you Just a car More than a car The sunshine car The family car
5 15 10 20

10% 40% 30%

20%

Just a car T sunshine car he

more than a 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.

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.

Indian Sales Satisfaction Index (SSI)

114 112 110 108 106 SSI Scores 104 102 100 98 96 114 114 110 109 105
HM/Mitsubishi Honda Siel Ford India M&M Dawood Motors Hyundai MUL

102 102

Companies

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.

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.

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 its 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.

QUESTIONNAIRE
Name Address Age Occupation Ques1 Total income A) Below 1 lakh C) 1.5 lakhs 3 lakhs Ques 2 For how many years you are using Hyundai santro A) 1 year C) 3 year Ques 3 Do you like Hyundai Santro? A) Yes Ques 4 What were the factors which influence you to buy Hyundai santro? A) Brand name C) Fuel efficiency E) Performance Ques 5 Are you satisfied with your Hyundai santro? A) Yes Ques 6 B) no B) style D) comfort F) any other B) no B) 2 year D) more than 3 year B) 1 lakh 1.5 lakhs D) above 3 lakhs ____________________________________ ____________________________________ ____________________________________ ____________________________________

What you dont like about Hyundai santro A) After sales services C) Comfort E) Performance Ques7 What you like about Hyundai santro A) After sales services C) Comfort E) Performance Ques 8 Did advertisement influenced your Hyundai santro buying decision A) Yes Ques 9 Hyundai santro to you A) Just a car C) The sunshine car B) more than a car D) the family car B) no B) air conditioner D) fuel efficiency F) any other B) air conditioner D) fuel efficiency F) any other

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