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Company Profile
Hyundai Electronics is a renowned consumer electronics brand all over the world,
Started operations in India in September 2004 with the launch of premium category Flat
TVs.
The product basket boasts of Flat CTVs , Air Conditioners and DVDs.
Currently Hyundai Electronics uses the manufacturing facility of Videocon in India.
Future Plans:
Achieveing the target turnover of 750 crores in the next three years .
Manufacturing plant in Uttaranchal with a production capacity of 1.2 million units for
CTVs , 0.3 million for DVD players and 0.2 million units of Air Conditioners. The plant
would be used for exports to West Asia, South Africa and the SAARC region.
Expansion of dealer distributor base to 2500 from the present 1500 spread all over
India.
Reaching 350 cities from the present 250 cities.
Introducing new models and adding Refrigerators, Micowaves, Digital still cameras to
the product portfolio.
Company’s Vision
“To be one of the top three brands in Consumer Electronics and Home Appliances industry by
the year 2010”
Mission
“To bring happiness into every home by offering high quality , innovative products & services,
spreading the culture of convenience, entertainment and comfort.”
The core competencies built up by Hyundai Electronics are vital for our growth as World leading
digital products provide.
Innovation
Hyundai believes in extending the rewards of technical advancements to all its customers by
offering the products with new innovations and continuous improvement.
Quality
The ability to provide guaranteed product consistency through total quality process , from the
time an order is taken until it is delivered to customers through monitoring the manufacturing
and delivery process.
Technology
HEIL sources the technical know-how from Korea & then customizes the product range to suit
the Indian conditions.
Product Portfolio:-
LCD TVs
Flat TVs
Slim TVs
DVD Players
Air Conditioners
Window
Split
Tower
Industry Profile
The global electronics industry is growing rapidly from an estimated size of US $ 950 billion in
2005 to nearly US $ 2100 billion by 2010.
The industry is characterized by rapid innovation and speed to market, short product life cycle,
highly automated manufacturing high volume production and continuous improvement in
capabilities.
India is ranked 26th worldwide in terms of sales and 29th in terms of production.
India’s electronics industry has been growing at approximately 11% CAGR over the past 5 years
and was worth US$ 11 billion in 2004- 05.
Opportunities Threats
Already doing well among the Bad name building by dealers
recent brand launches. Competition among recent brand
Market for 29” + and plasma CTVs launches.
Retail chains such as Electronics
Bazaar.
Chapter 6
7 6
No. of Counters
6 5
5 4 4
4 3
3 2 2
2
1
0
on
ad
th
l
h
t
t
tra
es
as
t
ou
ga
ab
or
en
E
N
id
ur
C
G
Fa
Regions
Figure 1.1
Total 25 dealers selling Hyundai products among others were surveyed in Delhi and
NCR.
CTVs
14 12
No .Of Counters
12
10 8 No.1
8
No.2
6 4 4 4 4 4
3 3 3 No.3
4 2 2 2 2
2 1 1 1 1 1
0
ai
n
ng
a
i
y
LG
su
co
d
on
nd
su
ni
an
eo
S
yu
O
am
id
H
V
S
Brands
Figure 2.1
Hyundai TVs stood at 4th position after LG , Samsung and LG in terms of no. of retail
counters.
3
North
2 2
2 East
1 1 11 1 1 11 1 1 1 West
1 South
0 Central
Faridabad
a
i
on
ui
LG
ng
ny
da
d
ns
Gurgaon
So
ni
oc
su
un
Sa
de
m
Hy
Sa
Vi
Brands
Figure 2.2
No.2 Selling CTV
3
3
No. of Counters
2 2 2 2
2 North
East
1 11 1 1 1 1 1 1 1 1
1 West
South
0 Central
Faridabad
a
i
on
ui
LG
ng
ny
da
d
ns
So Gurgaon
ni
oc
su
un
Sa
de
m
Hy
Sa
Vi
Brands
Figure 2.3
N o . 3 S e llin g C T V
4
North
East
3
W est
No. Of Counters
2 South
2
C entral
11 1 1 11 1 11 11 1 1 F aridabad
1
G urgaon
0
LG S am sung S ony Hyundai S ansui Onida V ideoc on
Bra nds
Figure 2.4
LG in Central Delhi
Hyundai in South Delhi, Gurgaon.
Sansui in North, West, South, Central Delhi and Gurgaon.
Onida in East and Central Delhi and Gurgaon.
Videocon in North, South and central Delhi, Faridabad and Gurgaon.
In South Delhi
Samsung, LG are the major players whereas Sony and Onida are the minor ones
In Gurgaon
Air Conditioners
12 11
No. Of Counters
10
8 No.1
6 5 No.2
4
4 3 3 3 No.3
2 2 22 2 2 2 2
2 1 1 1 11 1 1 1 1 1
0
ai
ue l
j
G r
'G tar
Ke a
hi r
C s
l
Vo i
Sa LG
ng
re
oo
ch
a
W rie
l ta
d
nd
er
St
od
ni
ns
su
ita
rlp
ar
en
yu
O
m
H
H
Bl
O
Brands
Figure 3.1
Hyundai A.Cs occupied 3rd position in terms of after LG and Samsung.
4
No. of Counters
33
3
North
2 2
2 East
1 1 1 1 1 11 1 1 1 West
1
South
0 Central
Faridabad
al
ai
ng
da
j
i
re
LG
ch
rie
er
ta
nd
su
od
ni
Gurgaon
it a
ar
en
ol
yu
O
am
G
V
C
H
'G
H
O
S
Brands
Figure 3.2
No.2 Selling A.C
4
No. of Counters North
3 East
2 2 West
2
South
1 1 1 111 1 1 1 1 11 1 1 1
1 Central
Faridabad
0 Gurgaon
ng
l
i
ai
oo
da
r
ch
LG
rie
ta
nd
su
rlp
ni
ita
ol
ar
yu
am
O
V
H
hi
C
H
W
S
Brands
Figure 3.3
No .3 Se llin g A .C
No rth
2 Ea s t
No. Of Counters
W es t
1 So u th
Ce n tra l
0
Fa rid a ba d
G urg a on
LG
ida
i
ej
er
i
ch
tar
s
ng
ar
ol
da
Ke ral
tor
l ta
dr
rri
lpo
On
St
ta
ns
su
un
ne
na
Go
Vo
Ca
Hi
h ir
ue
m
Ke
Hy
Ge
l vi
Sa
Bl
O'
Br an d s
Figure 3.4
LG in Central Delhi
Hyundai in Gurgaon
Hitachi in South and Central Delhi and Faridabad.
Voltas in East & Central Delhi and Faridbad.
Carrier in North, West , South & Central Delhi, Faridabad and Gurgaon.
Onida in North, South, Central Delhi , Faridabad and Gurgaon.
O’General in Delhi and Fardibad.
Godrej in North, East, Central Delhi, Faridabad & Gurgaon.
Kenstar in North , West ,South & Central Delhi, Faridadab & Gurgaon
Blue Star in Delhi and Faridabad
Whirlpool in North, South & Central Delhi & Faridabad.
Can make a strong presence in Faridabad market as most of the brands doesn’t occupy
postion in top 3 in this market.
Can lead in the top 3 selling A.Cs with effective promotional campaign and improving on
after sales service.
20
15
10 21
16
5 8
4
0 1
PRICE BRAND AFTER FEATURES. DISCOUNTS,
NAME SALES MODELS SCHEMES
SERVICE etc.
FACTORS
Figure 4.1
The most influencing factor came out to be Features and Models in the CTVs or A.Cs.
followed by Brand Name and After Sales Service.
20 18
No. of Customers
Figure 4.2
10 9
9
8
No. of Customers
Figure 4.3
Features , Models etc. was the most influencing factor in overall Delhi except in West
Delhi.
Brand Name was the most influencing factor in West Delhi.
25
NO. OF CUSTOMERS
20
20
delhi
15
9 gurgaon
10 6 7
4 faridabad
5 1 1 1 1
0
I
LG
NY
AI
G
SU
N
AK
SO
SU
N
SA
M
SA
BRANDS
Figure 5.1
Sony is the most preferred brand in Delhi and NCR followed by LG and Samsung.
Hyundai fails to make in the list of Most Preferred CTVs
Gurgaon and Faridabad Markets where LG and Samsung are not much preferred brands.
Also Hyudai CTVs can be in the list of most preferred brands with the help of effective
promotion and Brand visibility in the showrooms with a display of complete range of its
products with new features like FM in CTVs.
Ensuring better margins and satsiafacotry after sales service will make the dealer push the
brand ahead of Sansui and Akai.
A.Cs
MOST PREFERRED A.C
15
16
NO.OF CUSOTMERS
14
12
10 9 Delhi
7
8 Gurgaon
6 Faridabad
3 3 3 3
4 2 2
2 11 1 1 1 1 1 1 1 1
0
HI
VO A
R
SA L
EN S
AR
CA LG
HI G
S
FE YO
A
ID
IE
' G TA
ER
BL AC
N
ER
ST
SU
N
RR
DD
T
O
UE
M
SA
O BRANDS
Figure 5.2
Only 3 most preferred brands in Gurgaon namely LG, Hitachi and Voltas.
Effective promotional campaigns and more schemes during the peak seson will help take
the lead.
YES
NO
YES
76%
Figure 6.1
Although 76% of the respondents were aware of Hyundai Electronics, it was not a preferred
brand as there was no brand recall because of less frequency of advertisements and less brand
visibility in the showroom due to which customers were not able to recall the brand with the
advertisements seen or they dropped the idea of buying Hyundai products because of incomplete
range of models.
NO. OF CUSTOMERS 16
12
0
DEALERS WORD OF TV MAGAZINES NEWSPAPER
MOUTH
SOURCES
Figure 6.2
Word of mouth is the most effective source of information followed by Dealers and TV.
There is an urgent need to address the following issues to create goodwill of the brand in
the minds of customers:-
As word of mouth is the most effective source of information , so a great emphasis should be laid
on the satisfaction levels of the existing customers. The after sales service should be
unmatchable in the electronics segment resulting in more and more recommendations thereby
giving Hyundai products an edge over others.
Dealers came to be second effective source of information, issues like more schemes, margins
and brand visibility of the complete range in the showrooms should be addressed immediately to
increase the sales, good name building by the dealers and placing Hyundai in the top of Dealer’s
recommendation to customers list.
Chapter 3
Critical Review Of
Literature
Keeping the dealers concerns in mind, the company can place the brand well in the market. With
increased dealer network and assuring high satisfaction levels to the dealers in terms of benefits
attached with selling the brand, a brand can outperform other in a short span of time.
Dealer can make a customer switch over among the factors influencing his buying decision like
Features, Brand Name , Price , After Sales Services and Discounts.
If the brand is positioned in the minds of the customers using effective promotion, and promises
a distinct class in features, quality , price and services, it can do well in the market.
In the case of Hyundai Electronics, most of the dealers are playing only on margins and schemes
attached to selling Hyundai products and this keeps its products ahead of the minor players.
Decrease in margins and schemes would mean decrease in sales also if the dealer is not satisfied
with the company policies or with the kind of services offered, he starts building bad name for
the brand.
So, the problem identified at the dealer end was evaluating the significance of important
factors like margins , schemes and services offered to the dealers.
The brand “Hyundai Electronics” has a presence in the market but it has still to go a long way.
The brand awareness is there but it is not showing any sign in the list of preferred brand among
customers.
Data
Data collection
A semi structured questionnaire was prepared both for the dealers and the customers using the
nominal and ordinal scale.
Then the questionnaire was got filled up by the dealers who sells Hyundai products among
others. Care was taken to visit the dealers during the time so as not to disturb them in
customer rush hours.
The following objectives were associated with the questionnaire which was administered to
the dealers:-
After getting the dealers feedback, the customer questionnaire was prepared which got filled
up by the customers at the time of their exit from the showrooms so as not to offend the
dealers.
The following objectives were associated with the questionnaire which was administered to
the customers:-
Knowing the brand of CTV and A.C. currently used by them, the reasons that made them
purchase that brand and their satisfaction levels with that brand.
Their most preferred brand of CTV and A.C.
The factors influencing their buying decision
Their awareness level about Hyundai Electronics and sources of awareness.
Chapter 7
Recommendations
Recommendations
The no of dealers in Delhi and NCR are just 27, which when compared to other top selling
brands is quite less. Hyundai Electronics should work on expanding the dealer network so as to
have a great market presence.
How to go about:-
Coming up with exclusive Hyundai Showrooms as the most influencing factor is Features &
Models, so it should come up with a complete range of its products in those showrooms and also
in areas where Brand Name influenced the buying the decision of the customers.
The dealer always pushes the brands that offers more margins and schemes.
Hyundai Electronics should try to provide more margins at those retail counters where players
like Sansui and Akai sells more on the basis of margins.
It should come up with more schemes to the retailers as this has a direct impact on sales.
Focusing on Markets like South Delhi and Gurgaon where it doesn’t appear in the list of top
three selling CTVs.
How to go about:-
In South Delhi
In Gurgaon:-
Less brand awareness – there should be complete display of Hyundai Products in the
showrooms and also coming up with exclusive Hyundai showrooms.
Parameters Market leaders Hyundai